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EXPLANATORY NOTE: GOLDENSELECT DVA 100
PROSPECTUS SUPPLEMENT
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File Nos. 33-23351, 811-5626
Filed under Rule 497(c)
PROSPECTUS SUPPLEMENT
Dated May 1, 1999
Supplement to the Profiles and
Prospectuses dated May 1, 1999 for
DEFERRED VARIABLE ANNUITY CONTRACTS issued
by Golden American Life Insurance Company
(the "GoldenSelect DVA and DVA Series 100 Prospectuses")
__________
THIS SUPPLEMENT SHOULD BE RETAINED WITH YOUR PROFILE AND PROSPECTUS.
A new Fixed Interest Division option is now available through the group and
individual deferred variable annuity contracts offered by Golden American Life
Insurance Company. The Fixed Interest Division is part of the Golden American
General Account. Interests in the Fixed Interest Division have not been
registered under the Securities Act of 1933, and neither the Fixed Interest
Division nor the General Account are registered under the Investment Company
Act of 1940.
Interests in the Fixed Interest Division are offered through an Offering
Brochure, dated May 1, 1999. When reading through the GoldenSelect DVA
Prospectus, the Fixed Interest Division should be counted among the various
subaccounts available for the allocation of your premiums. The Fixed Interest
Division may not be available in some states. Some restrictions may apply.
More complete information relating to the Fixed Interest Division is found in
the Offering Brochure. Please read it carefully before you send money.
G3107 FID 5/99
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EXPLANATORY NOTE: GOLDENSELECT DVA
PROFILE AND ROSPECTUS
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GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
[begin shaded block]
PROFILE OF
GOLDENSELECT DVA
FIXED AND VARIABLE ANNUITY CONTRACT
MAY 1, 1999
[inset within shaded block]
This Profile is a summary of some of the more important points that
you should know and consider before purchasing the Contract. The
Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
[end within shaded block]
[end shaded block]
1.THE ANNUITY CONTRACT
The Contract offered in this prospectus is a deferred variable
annuity contract between you and Golden American Life Insurance
Company. The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 22 mutual fund investment portfolios
(listed on the next page) through our Separate Account B listed on
the next page. You may not make any money, and you can even lose the
money you invest.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The
accumulation phase is the period between the contract date and the
date on which you start receiving the annuity payments under your
Contract. The amounts you accumulate during the accumulation phase
will generally determine the amount of annuity payments you will
receive. The income phase begins when you start receiving regular
annuity payments from your Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2.YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving
on the annuity start date. You may choose one of the following
annuity payment options:
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[Table with Shaded Heading]
Annuity Options
|------------------------------------------------------------------------|
| Option 1 Income for a Payments are made for a specified |
| fixed period number of years to you |
| or your beneficiary. |
|------------------------------------------------------------------------|
| Option 2 Income for Payments are made for the rest of |
| life with a your life or longer for a specified |
| period certain period such as 10 or 20 years or |
| until the total amount used to buy |
| this option has been repaid. This |
| option comes with an added guarantee|
| that payments will continue to your |
| beneficiary for the remainder of |
| period if you should die during the |
| period. |
|------------------------------------------------------------------------|
| Option 3 Joint life income Payments are made for your life |
| and the life of another person |
| (usually your spouse). |
|------------------------------------------------------------------------|
| Option 4 Annuity plan Any other annuitization plan that we|
| choose to offer on the annuity |
| start date. |
|------------------------------------------------------------------------|
Annuity payments under Options 1, 2 and 3 are fixed. Annuity
payments under Option 4 may be fixed or variable. Once you elect an
annuity option and begin to receive payments, it cannot be changed.
3.PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
You may purchase the Contract with an initial payment of $10,000 or
more ($1,500 for a qualified Contract) up to and including age 85.
You may make additional payments of $500 or more ($250 for a
qualified Contract) at any time before you turn age 85. Under
certain circumstances, we may waive the minimum initial and
additional premium payment requirement. We may refuse a premium
payment if an initial premium or the sum of all premium payments is
more than $1,500,000.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this
Contract if you are looking for a short-term investment or if you
cannot risk getting back less money than you put in.
4.THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 22
mutual fund investment portfolios through our Separate Account B.
The investment portfolios are described in the prospectuses for the
GCG Trust and the PIMCO Variable Insurance Trust. But if you invest
in any of the following investment portfolios, depending on market
conditions, you may make or lose money:
<TABLE>
<S> <C> <C>
THE GCG TRUST
Liquid Asset Series Growth & Income Series Small Cap Series
Limited Maturity Bond Series Growth Series Real Estate Series
Global Fixed Income Series Value Equity Series Hard Assets Series
Total Return Series Research Series Managed Global Series
Equity Income Series Mid-Cap Growth Series Developing World Series
Fully Managed Series Strategic Equity Series Emerging Markets Series
Rising Dividends Series Capital Appreciation Series
THE PIMCO TRUST
PIMCO High Yield Bond Portfolio
PIMCO StocksPLUS Growth and Income Portfolio
</TABLE>
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5.EXPENSES
The Contract has insurance features and investment features, and
there are costs related to each. The Company deducts an annual
contract administrative charge of $40. We also collect a mortality
and expense risk charge and an asset-based administrative
charge.
These 2 charges are deducted daily directly from the amounts in the
investment portfolios. The annual rate of the mortality and expense
risk charge is 0.90%. The asset-based administrative charge is 0.10%
annually.
Mortality & Expense Risk Charge..............0.90%
Asset-Based Administrative Charge............0.10%
----
Total.....................................1.00%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.59% to 1.83% annually (see
following table) of the portfolio's average daily net asset balance.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
We deduct a distribution fee (annual sales load) in an annual amount
of 1.00% of each premium at the end of each contract year for a
period of 6 years from the date we receive and accept each premium
payment.
We deduct a withdrawal charge for each regular withdrawal after the
first in a contract year. The withdrawal charge is the lesser of $25
or 2% of each withdrawal.
We deduct a surrender charge if you surrender your Contract or
withdraw an amount exceeding the free withdrawal amount. The free
withdrawal amount in any year is 15% of your contract value on the
date of the withdrawal less any prior withdrawals during that
contract year. The following table shows the schedule of the
surrender charge that will apply. The surrender charge is a percent
of each premium payment.
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6+
SINCE PREMIUM PAYMENT | | | | | |
SURRENDER CHARGE 6%| 5%| 4%| 3%| 2%| 1%| 0%
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
mortality and expense risk charge, the asset-based administrative
charge, and reflects the annual contract administrative charge as
0.06% (based on an average contract value of $65,000). The "Total
Annual Investment Portfolio Charges" column reflects the portfolio
charges for each portfolio and are based on actual expenses during
1998, except for portfolios that commenced operations as of December
31, 1998 where the charges have been annualized. The column "Total
Annual Charges" reflects the sum of the previous two columns. The
columns under the heading "Examples" show you how much you would pay
under the Contract for a 1-year period and for a 10-year period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end
of Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
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[Table with shaded heading and shaded lines for readability]
TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
THE GCG TRUST
Liquid Asset 1.06% 0.59% 1.65% $86.79 $286.61
Limited Maturity Bond 1.06% 0.60% 1.66% $86.89 $287.65
Global Fixed Income 1.06% 1.60% 2.66% $96.93 $386.18
Total Return 1.06% 0.97% 2.03% $90.61 $325.36
Equity Income 1.06% 0.98% 2.04% $90.71 $326.36
Fully Managed 1.06% 0.98% 2.04% $90.71 $326.36
Rising Dividends 1.06% 0.98% 2.04% $90.71 $326.36
Growth & Income 1.06% 1.08% 2.14% $91.72 $336.29
Growth 1.06% 1.09% 2.15% $91.82 $337.27
Value Equity 1.06% 0.98% 2.04% $90.71 $326.36
Research 1.06% 0.94% 2.00% $90.31 $322.36
Strategic Equity 1.06% 0.99% 2.05% $90.81 $327.36
Capital Appreciation 1.06% 0.98% 2.04% $90.71 $326.36
Mid-Cap Growth 1.06% 0.95% 2.01% $90.41 $323.36
Small Cap 1.06% 0.99% 2.05% $90.81 $327.36
Real Estate 1.06% 0.99% 2.05% $90.81 $327.36
Hard Assets 1.06% 1.00% 2.06% $90.92 $328.36
Managed Global 1.06% 1.26% 2.32% $93.53 $353.88
Developing World 1.06% 1.83% 2.89% $99.22 $407.35
Emerging Markets 1.06% 1.83% 2.89% $99.22 $407.35
THE PIMCO TRUST
PIMCO High Yield Bond 1.06% 0.75% 1.81% $88.40 $303.12
PIMCO StocksPLUS
Growth and Income 1.06% 0.65% 1.71% $87.39 $292.83
For the newly formed portfolios, the charges have been estimated.
The "Total Annual Investment Portfolio Charges" reflect current
expense reimbursements for the Total Return and Global Fixed Income
portfolios. The Examples above include the 1.00% distribution fee
(annual sales load) and the Year 1 examples above include a 6%
surrender charge. For more detailed information, see the fee table
in the prospectus for the Contract.
6.TAXES
Under a qualified Contract, your premiums are generally pre-tax
contributions and accumulate on a tax-deferred basis. Premiums and
earnings are generally taxed as income when you make a withdrawal or
begin receiving annuity payments, presumably when you are in a lower
tax bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2
(or, in some cases, retire), you will be required by federal tax laws
to begin receiving payments from your annuity or risk paying a
penalty tax. In those cases, we can calculate and pay you the
minimum required distribution amounts. If you are younger than 59
1/2 when you take money out, in most cases, you will be charged a 10%
federal penalty tax on the amount withdrawn.
7.WITHDRAWALS
You can withdraw your money at any time during the accumulation
phase. You may elect in advance to take systematic withdrawals which
are described on page 7. Withdrawals above the free withdrawal
amount may be subject to a surrender charge. In addition, if you
take more than one withdrawal (other than a systematic withdrawal)
during a contract year, we impose a charge of the lesser of $25 and
2.0% of the amount
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withdrawn for each additional withdrawal. Income
taxes and a penalty tax may apply to amounts withdrawn.
8.PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart
shows average annual total return for each portfolio for the time
periods shown. These numbers reflect the deduction of the mortality
and expense risk charge, the asset-based administrative charge and
the annual contract fee, but do not reflect deductions for the
distribution fee (annual sales load) and any withdrawal charges. If
such charges were reflected, they would have the effect of reducing
performance. Please keep in mind that past performance is not a
guarantee of future results.
<TABLE>
CALENDAR YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT PORTFOLIO 1998 1997 1996 1995 1994 1993 1992 1991 1990
Managed by A I M Capital Management, Inc.
Capital Appreciation(1) 11.49% 27.60% 18.98% 28.80% (2.64)% 7.16% -- -- --
Strategic Equity(2) (0.23) 21.86 18.13 -- -- -- -- -- --
Managed by T. Rowe Price Associates, Inc.
Fully Managed 4.77 14.13 15.14 19.45 (8.26) 6.45 5.10 27.58 (4.21)
Equity Income(2) 7.12 16.20 7.61 17.69 (2.22) 9.96 0.79 18.76 3.62
Managed by Kayne Anderson Investment Management, LLC
Rising Dividends 12.93 28.46 19.37 29.70 (0.47) -- -- -- --
Managed by EII Realty Securities, Inc.
Real Estate (14.38) 21.50 33.87 15.36 5.22 16.03 12.67 32.66 (21.64)
Managed by Eagle Asset Management, Inc.
Value Equity 0.48 25.95 9.44 33.85
Managed by Fred Alger Management, Inc.
Small Cap 19.71 9.16 18.84 -- -- -- -- -- --
Managed by Putnam Investment Management, Inc.
Emerging Markets (24.91) (10.34) 6.14 (11.06) (16.08) -- -- -- --
Managed Global 27.96 10.99 11.12 6.19 (13.63) 5.03
Managed by ING Investment Management, LLC
Limited Maturity Bond 5.73 5.54 3.20 10.55 (2.24) 5.08 3.73 10.10 6.72
Liquid Asset 3.94 3.98 3.86 4.41 2.60 1.55 2.03 4.54 6.60
Managed by Pacific Investment Management Company
PIMCO High Yield Bond -- -- -- -- -- -- -- -- --
PIMCO StocksPLUS Growth and Income -- -- -- -- -- -- -- -- --
Managed by Alliance Capital Management L.P.
Growth & Income(2) 10.79 23.83 -- -- -- -- -- -- --
Managed by Janus Capital Corporation
Growth(2) 25.49 14.55
Managed by Massachusetts Financial Services Company
Mid-Cap Growth 21.52 18.40 19.40 28.10 -- -- -- -- --
Total Return 10.41 19.59 12.48 23.22 -- -- -- -- --
Research 21.76 18.86 22.03 35.15 -- -- -- -- --
Managed by Baring International Investment Limited
Global Fixed Income 10.67 (0.41) 3.88 4.75 -- -- -- -- --
Hard Assets(2) (30.35) 5.04 31.84 9.53 1.45 48.37 (10.78) 3.60 (14.77)
Developing World(2) -- -- -- -- -- -- -- -- --
- --------------------------
(1)Prior to April 1, 1999, a different firm managed the Portfolio.
(2)Prior to March 1, 1999, a different firm managed the Portfolio.
</TABLE>
5
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9.DEATH BENEFIT
If the contract owner or the annuitant dies before the annuity start
date, we will pay your beneficiary the death benefit proceeds under
the Contract unless the beneficiary is your surviving spouse and
elects to continue the Contract.
The death benefit may be subject to certain mandatory distribution
rules required by federal tax law.
If the contract owner or the annuitant is NOT MORE THAN 75 YEARS OLD
(80 years old for Contracts with a contract date before November 6,
1992) at the time of purchase, the death benefit is the greater of:
1)the contract value; and
2)the guaranteed death benefit, which we determine as follows: we
credit interest each business day at the 7% annual effective
rate to the guaranteed death benefit from the preceding day
(which would be the initial premium if the preceding day is
the contract date), then we add additional premiums paid since
the preceding day, then we subtract any withdrawals made since
the preceding day. The maximum guaranteed death benefit is 2
times all premium payments, less an amount to reflect total
withdrawals taken. The actual interest rate used for
calculating the death benefit for the Liquid Asset investment
portfolio will be the lesser of the 7% annual effective rate
or the net rate of return for the portfolio during the
applicable period.
If the contract owner or the annuitant is AGE 76 OR OLDER at the time
of purchase (age 81 or older for Contracts with a contract date
before November 6, 1992), the death benefit is the greater of:
1)the cash surrender value; and
2)the total premium payments made under the Contract after
subtracting any withdrawals.
If you purchased the Contract in North Carolina before November 6,
1992, the following death benefit applies: if the contract owner or
the annuitant are both age 80 or younger at the time of purchase, the
death benefit is the greater of: (1) the contract value; and (2) the
total premium payments made under the contract after subtracting any
withdrawals. If the contract owner or the annuitant is age 81 or
older at the time of purchase, the death benefit is the greater of:
(1) the cash surrender value; and (2) the total premium payments made
under the Contract after subtracting any withdrawals.
The death benefit value is calculated at the close of the business
day on which we receive due proof of death at our Customer Service
Center. If your beneficiary elects to delay receipt of the death
benefit until a date after the time of your death, the amount of the
benefit payable in the future may be affected. If you die after the
annuity start date and you are the annuitant, your beneficiary will
receive the death benefit you chose under the annuity option then in
effect.
10.OTHER INFORMATION
FREE LOOK. You may cancel the Contract within 10 days after you
receive it. If applicable state law requires a longer free look
period, or the return of the premium paid, the Company will comply.
If you exercise your right to cancel, we will return the greater of
(a) the premium payments made and (b) the contract value plus any
amounts deducted under the Contract or by the Trust for taxes,
charges or fees.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. You can make transfers
among your investment portfolios as frequently as you wish without
any current tax implications. The minimum amount for a transfer is
$100. Currently there is no charge for transfers, and we do not
limit the number of transfers allowed. The Company may, in the
future, charge a $25 fee for any transfer after the twelfth transfer
in a contract year or limit the number of transfers allowed.
NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
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ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over time
than a single one-time purchase. Dollar cost averaging requires
regular investments regardless of fluctuating price levels, and
does not guarantee profits or prevent losses in a declining
market. This option is currently available only if you have
$10,000 or more in the Limited Maturity Bond or the Liquid Asset
investment portfolios.
Systematic Withdrawals. During the accumulation phase, you can
arrange to have money sent to you at regular intervals throughout
the year. Within limits these withdrawals will not result in any
withdrawal charge. Of course, any applicable income and penalty
taxes will apply on amounts withdrawn.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
Customer Service Center
P.O. Box 2700
West Chester, Pennsylvania 19380
(800) 366-0066
or your registered representative.
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[begin shaded block]
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
MAY 1, 1999
DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY PROSPECTUS
GOLDENSELECT DVA
[end shaded block]
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This prospectus describes GoldenSelect DVA, a group and individual
deferred variable annuity contract (the "Contract") offered by Golden
American Life Insurance Company (the "Company," "we" or "our"). The
Contract is available in connection with certain retirement plans
that qualify for special federal income tax treatment ("qualified
Contracts") as well as those that do not qualify for such treatment
("non-qualified Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 22 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract and the portfolio managers are:
<TABLE>
<C> <C>
T. ROWE PRICE ASSOCIATES, INC. ALLIANCE CAPITAL MANAGEMENT L. P.
Fully Managed Series Growth & Income Series
Equity Income Series JANUS CAPITAL CORPORATION
A I M CAPITAL MANAGEMENT, INC. Growth Series
Capital Appreciation Series MASSACHUSETTS FINANCIAL SERVICES COMPANY
Strategic Equity Series Mid-Cap Growth Series
KAYNE ANDERSON INVESTMENT MANAGEMENT, LLC Total Return Series
Rising Dividends Series Research Series
EII REALTY SECURITIES, INC. ING INVESTMENT MANAGEMENT, LLC (AN AFFILIATE)
Real Estate Series Limited Maturity Bond Series
BARING INTERNATIONAL INVESTMENT LIMITED (AN AFFILIATE) Liquid Asset Series
Hard Assets Series PACIFIC INVESTMENT MANAGEMENT COMPANY
Developing World Series PIMCO High Yield Bond Portfolio
Global Fixed Income Series PIMCO StocksPLUS Growth and Income Portfolio
EAGLE ASSET MANAGEMENT, INC. PUTNAM INVESTMENT MANAGEMENT, INC.
Value Equity Series Emerging Markets Series
FRED ALGER MANAGEMENT, INC. Managed Global Series
Small Cap Series
</TABLE>
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account B. We refer to the
divisions as "subaccounts" in this prospectus.
You have a right to return a Contract within 10 days after you
receive it for a full refund of the contract value (which may be more
or less than the premium payments you paid), or if required by your
state, the original amount of your premium payment. Longer free look
periods apply in some states.
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999, has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
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THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AN INVESTMENT IN THE GCG TRUST OR THE PIMCO TRUST IS NOT A BANK
DEPOSIT AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST AND THE PIMCO TRUST.
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[Shaded Section Header]
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TABLE OF CONTENTS
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PAGE
Index of Special Terms.....................................1
Fees and Expenses..........................................2
Performance Information....................................5
Accumulation Unit.......................................5
Net Investment Factor...................................6
Condensed Financial Information.........................6
Financial Statements....................................6
Performance Information.................................6
Golden American Life Insurance Company.....................7
The Trusts.................................................7
Golden American Separate Account B.........................8
The Investment Portfolios..................................8
Investment Objectives...................................8
Investment Portfolio Management Fees...................10
The Annuity Contract......................................11
Contract Date and Contract Year........................11
Annuity Start Date.....................................11
Contract Owner.........................................11
Annuitant..............................................12
Beneficiary............................................12
Purchase and Availability of the Contract..............12
Crediting of Premium Payments..........................13
Contract Value.........................................13
Cash Surrender Value...................................14
Surrendering to Receive the Cash Surrender Value.......14
Addition, Deletion or Substitution of Subaccounts
and Other Changes .....................................14
Other Contracts........................................14
Other Important Provisions.............................14
Withdrawals...............................................15
Regular Withdrawals....................................15
Systematic Withdrawals.................................15
IRA Withdrawals........................................16
Transfers Among Your Investments..........................16
Dollar Cost Averaging..................................17
Death Benefit.............................................17
Death Benefit During the Accumulation Phase............17
Death Benefit During the Income Phase..................18
Charges and Fees..........................................18
Charge Deduction Subaccount............................18
Charges Deducted from the Contract Value...............18
Distribution Fee.....................................19
Surrender Charge.....................................19
Free Withdrawal Amount...............................19
Surrender Charge for Excess Withdrawals..............19
Premium Taxes........................................20
Administrative Charge................................20
Transfer Charge......................................20
Charges Deducted from the Subaccounts..................20
Mortality and Expense Risk Charge....................20
i
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[Shaded Section Header]
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TABLE OF CONTENTS (CONTINUED)
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PAGE
Asset-Based Administrative Charge....................20
Trust Expenses.........................................20
The Annuity Options.......................................21
Annuitization of Your Contract.........................21
Selecting the Annuity Start Date.......................21
Frequency of Annuity Payments..........................22
The Annuity Options....................................22
Income for a Fixed Period............................22
Income for Life with a Period Certain................22
Joint Life Income....................................22
Annuity Plan.........................................22
Payment When Named Person Dies.........................22
Other Contract Provisions.................................23
Reports to Contract Owners.............................23
Suspension of Payments.................................23
In Case of Errors in Your Application..................23
Assigning the Contract as Collateral...................23
Other Contract Changes.................................23
Contract Changes-Applicable Tax Law....................23
Free Look..............................................23
Group or Sponsored Arrangements........................24
Selling the Contract...................................24
Other Information.........................................24
Voting Rights..........................................24
Year 2000 Problem......................................24
State Regulation.......................................25
Legal Proceedings......................................25
Legal Matters..........................................25
Experts................................................25
Federal Tax Considerations................................25
Statement of Additional Information
Table of Contents......................................31
Appendix A
Condensed Financial Information........................A1
Appendix B
Surrender Charge for Excess Withdrawals Example........B1
ii
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[Shaded Section Header]
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INDEX OF SPECIAL TERMS
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The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 5
Annuitant 12
Annuity Start Date 11
Cash Surrender Value 14
Contract Date 11
Contract Owner 11
Contract Value 13
Contract Year 11
Free Withdrawal Amount 19
Net Investment Factor 6
Death Benefit 17
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERMS USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT
Accumulation Unit Value Index of Investment Experience
Annuity Start Date Annuity Commencement Date
Contract Owner Owner or Certificate Owner
Contract Value Accumulation Value
Transfer Charge Excess Allocation Charge
Free Look Period Right to Examine Period
Guaranteed Interest Period Guarantee Period
Subaccount(s) Division(s)
Net Investment Factor Experience Factor
Regular Withdrawals Conventional Partial Withdrawals
Withdrawals Partial Withdrawals
1
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[Shaded Section Header]
- -----------------------------------------------------------------------
FEES AND EXPENSES
- -----------------------------------------------------------------------
OWNER TRANSACTION EXPENSE (deducted from contract value)
Distribution Fee (annual sales load) as a percentage of the
initial and each additional premium, deducted at the end of each
contract year following receipt of each premium over a six year
period from the date we receive and accept each premium payment...1.00%*
* Contracts with a contract date prior to May 3, 1993 and the
prospectus delivered in connection with such contracts described the
sales load, which is equivalent to the combination of the
distribution fee described above and surrender charge described
below. Limited Edition contracts purchased through Golden American
Separate Account D and the prospectus delivered in connection with
such contracts also described the sales load as a deferred load.
CONTRACT OWNER TRANSACTION EXPENSES
Surrender Charge:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6+
SINCE PREMIUM PAYMENT | | | | | |
SURRENDER CHARGE 6%| 5%| 4%| 3%| 2%| 1%| 0%
Transfer Charge.........................................None**
**We may in the future charge $25 per transfer if you make more
than 12 transfers in a contract year.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge.....................................$40
(We waive this charge if premium payments paid in the first contract
year are $100,000 or more.)
WITHDRAWAL CHARGE (2% of the withdrawal for each
additional regular withdrawal after the first in a
contract year) not to exceed..............................$25
SEPARATE ACCOUNT ANNUAL CHARGES***
Mortality and Expense Risk Charge...........0.90%
Asset-Based Administrative Charge...........0.10%
----
Total Separate Account Charges..............1.00%
***As a percentage of average assets in each subaccount.
2
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THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average
daily net assets of the indicated groups of portfolios):
[Table with Shaded Heading and Shaded Lines for readability]
|-------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3)|
|-------------------------------------------------------------------------|
| Liquid Asset 0.59% 0.59% 0.59% |
| Limited Maturity Bond 0.60% 0.00% 0.60% |
| Global Fixed Income 1.60% 0.00% 1.60%(3) |
| Total Return 0.94% 0.03% 0.97%(3) |
| Equity Income 0.98% 0.00% 0.98% |
| Fully Managed 0.98% 0.00% 0.98% |
| Rising Dividends 0.98% 0.00% 0.98% |
| Growth & Income 1.08% 0.00% 1.08% |
| Growth 1.08% 0.01% 1.09% |
| Value Equity 0.98% 0.00% 0.98% |
| Research 0.94% 0.00% 0.94% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
| Strategic Equity 0.98% 0.01% 0.99% |
| Capital Appreciation 0.98% 0.00% 0.98% |
| Small Cap 0.98% 0.01% 0.99% |
| Real Estate 0.98% 0.01% 0.99% |
| Hard Assets 0.98% 0.02% 1.00% |
| Managed Global 1.25% 0.01% 1.26% |
| Developing World 1.75% 0.08% 1.83% |
| Emerging Markets 1.75% 0.08% 1.83% |
| All-Growth(4) 0.98% 0.01% 0.99% |
| Growth Opportunities(4) 1.10% 0.05% 1.15% |
|-------------------------------------------------------------------------|
(1)Fees decline as combined assets increase. See the prospectus for
the GCG Trust for more information.
(2)Other expenses generally consist of independent trustees fees and
certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the
year ended December 31, 1998, except for portfolios that
commenced operations in 1998 where the charges have been
annualized.
(3)Directed Services, Inc. is currently reimbursing expenses to
maintain total expenses at 0.97% for the Total Return portfolio
and 1.60% for the Global Fixed Income portfolio as shown.
Without this reimbursement, and based on current estimates, total
expenses would be 0.98% for the Total Return portfolio and 1.74%
for the Global Fixed Income portfolio. This reimbursement
agreement will remain in place through December 31, 1999.
(4)As of May 1, 1999, we no longer offer the All-Growth and Growth
Opportunities portfolios.
THE PIMCO TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of a portfolio):
[Table with Shaded Heading and Shaded Lines for readability]
|-------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(1)|
|-------------------------------------------------------------------------|
| |
| PIMCO High Yield Bond 0.50% 0.25%(2) 0.75% |
| PIMCO StocksPLUS Growth |
| and Income 0.40% 0.25% 0.65% |
|-------------------------------------------------------------------------|
(1)PIMCO has agreed to waive some or all of its other expenses,
subject to potential future reimbursement, to the extent that
total expenses for the PIMCO High Yield Bond portfolio and PIMCO
StocksPLUS Growth and Income portfolio would exceed 0.75% and
0.65%, respectively, due to payment by the portfolios of their
pro rata portion of Trustees' fees. Without this agreement, and
based on current estimates, total expenses would be 0.81% for the
PIMCO High Yield Bond portfolio and 0.72% for the PIMCO
StocksPLUS Growth and Income portfolio.
(2)Since the PIMCO High Yield Bond portfolio commenced operations on
April 30, 1998, other expenses as shown has been annualized for
the year ended December 31, 1998.
3
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The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and
indirectly. See the prospectuses of the GCG Trust and the PIMCO
Trust for additional information on portfolio expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the tables above or in
the examples below.
EXAMPLES:
In the following examples, surrender charges may apply if you choose
to annuitize within the first 7 contract years. The examples are
based on an assumed 5% annual return.
If you surrender your Contract at the end of the applicable time
period, you would pay the following expenses for each $1,000
invested:
- --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset.............$86.79 $131.51 $167.86 $286.61
Limited Maturity Bond....$86.89 $131.82 $168.37 $287.65
Global Fixed Income .....$96.93 $161.85 $218.24 $386.18
Total Return.............$90.61 $143.03 $187.13 $325.36
Equity Income............$90.71 $143.34 $187.63 $326.36
Fully Managed............$90.71 $143.34 $187.63 $326.36
Rising Dividends.........$90.71 $143.34 $187.63 $326.36
Growth & Income..........$91.72 $146.35 $192.63 $336.29
Growth...................$91.82 $146.65 $193.13 $337.27
Value Equity.............$90.71 $143.34 $187.63 $326.36
Research.................$90.31 $142.13 $185.62 $322.36
Mid-Cap Growth...........$90.41 $142.43 $186.12 $323.36
Strategic Equity.........$90.81 $143.64 $188.13 $327.36
Capital Appreciation.....$90.71 $143.34 $187.63 $326.36
Small Cap................$90.81 $143.64 $188.13 $327.36
Real Estate..............$90.81 $143.64 $188.13 $327.36
Hard Assets..............$90.92 $143.94 $188.63 $328.36
Managed Global...........$93.53 $151.74 $201.58 $353.88
Developing World.........$99.22 $168.63 $229.35 $407.35
Emerging Markets.........$99.22 $168.63 $229.35 $407.35
All-Growth(1)............$90.81 $143.64 $188.13 $327.36
Growth Opportunities(1)..$92.42 $148.45 $196.12 $343.47
THE PIMCO TRUST
PIMCO High Yield Bond....$88.40 $136.38 $176.02 $303.12
PIMCO StocksPLUS Growth
and Income..............$87.39 $133.34 $170.93 $292.83
--------------------
(1)As of May 1, 1999, we no longer offer the All-Growth or
Growth Opportunities portfolios.
4
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If you do not surrender your Contract or if you annuitize on the
annuity start date, you would pay the following expenses for each
$1,000 invested:
- --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset............$26.79 $81.51 $137.86 $286.61
Limited Maturity Bond...$26.89 $81.82 $138.37 $287.65
Global Fixed Income.....$36.93 $111.85 $188.24 $386.18
Total Return............$30.61 $93.03 $157.13 $325.36
Equity Income...........$30.71 $93.94 $157.63 $326.36
Fully Managed...........$30.71 $93.94 $157.63 $326.36
Rising Dividends........$30.71 $93.94 $157.63 $326.36
Growth & Income.........$31.72 $96.35 $162.63 $336.29
Growth..................$31.82 $96.65 $163.13 $337.27
Value Equity............$30.71 $93.94 $157.63 $326.36
Research................$30.31 $92.13 $155.62 $322.36
Mid-Cap Growth..........$30.41 $92.43 $156.12 $323.36
Strategic Equity........$30.81 $93.64 $158.13 $327.36
Capital Appreciation....$30.71 $93.94 $157.63 $326.36
Small Cap...............$30.81 $93.64 $158.13 $327.36
Real Estate.............$30.81 $93.64 $158.13 $327.36
Hard Assets.............$30.92 $93.94 $158.63 $328.36
Managed Global..........$33.53 $101.74 $171.58 $353.88
Developing World........$39.22 $118.63 $199.63 $407.35
Emerging Markets........$39.22 $118.63 $199.35 $407.35
All-Growth(1)...........$30.81 $93.64 $158.13 $327.36
Growth Opportunities(1).$32.42 $98.45 $166.12 $343.47
THE PIMCO TRUST
PIMCO High Yield Bond...$28.40 $86.38 $146.02 $303.12
PIMCO StocksPLUS Growth
and Income.............$27.39 $83.34 $140.93 $292.83
--------------------
(1)As of May 1, 1999, we no longer offer the All-Growth or
Growth Opportunities portfolios.
The examples above include the annual administrative charge as an
annual charge of 0.06% (based on an average contract value of
$65,000).
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
[Shaded Section Header]
- -----------------------------------------------------------------------
PERFORMANCE INFORMATION
- -----------------------------------------------------------------------
ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account B has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the investment portfolios are valued
at their net asset value.
THE NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
5
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(1)We take the net asset value of the subaccount at the end of
each business day.
(2)We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in
such subaccount. We subtract from that amount a charge for
our taxes, if any.
(3)We divide (2) by the net asset value of the subaccount at the
end of the preceding business day.
(4)We then subtract the applicable daily mortality and expense
risk charge and the daily asset based administrative charge
from each subaccount.
Calculations for the subaccounts are made on a per share basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Golden American Separate Account B offered in this
prospectus and (ii) the total investment value history of each such
subaccount are presented in Appendix A - Condensed Financial
Information.
FINANCIAL STATEMENTS
The audited financial statements of Separate Account B for the years
ended December 31, 1998 and 1997 and the audited consolidated
financial statements of Golden American for the years ended December
31, 1998, 1997 and 1996 are included in the Statement of Additional
Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate
Account B, including the average annual total return performance,
yields and other nonstandard measures of performance. Such
performance data will be computed, or accompanied by performance data
computed, in accordance with standards defined by the SEC.
Except for the Liquid Asset subaccount, quotations of yield for the
subaccounts will be based on all investment income per unit (contract
value divided by the accumulation unit) earned during a given 30-day
period, less expenses accrued during such period. Information on
standard total average annual return performance will include average
annual rates of total return for 1, 5 and 10 year periods, or lesser
periods depending on how long the subaccount has been in existence.
We may show other total returns for periods less than one year.
Total return figures will be based on the actual historic performance
of the subaccounts of Separate Account B, assuming an investment at
the beginning of the period, withdrawal of the investment at the end
of the period, and the deduction of all applicable portfolio and
contract charges. We may also show rates of total return on amounts
invested at the beginning of the period with no withdrawal at the end
of the period. Total return figures which assume no withdrawals at
the end of the period will reflect all recurring charges, but will
not reflect the surrender charge. Quotations of average annual
return for the Managed Global subaccount take into account the period
before September 3, 1996, during which it was maintained as a
subaccount of Golden American Separate Account D. In addition, we
may present historic performance data for the mutual fund investment
portfolios since their inception reduced by some or all of the fees
and charges under the Contract. Such adjusted historic performance
includes data that precedes the inception dates of the subaccounts.
This data is designed to show the performance that would have
resulted if the Contract had been in existence during that time.
Current yield for the Liquid Asset subaccount is based on income
received by hypothetical investment over a given 7-day period, less
expenses accrued, and then "annualized" (i.e., assuming that the 7-
day yield would be received for 52 weeks). We calculate "effective
yield" for the Liquid Asset subaccount in a manner similar to that
used to calculate yield, but when annualized, the income earned by
the investment is assumed to be reinvested. The "effective yield"
will thus be slightly higher than the "yield" because of the
compounding effect of earnings. We calculate quotations of yield for
the remaining subaccounts on all investment income per accumulation
unit earned during a given 30-day period, after subtracting fees and
expenses accrued during the period.
6
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We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or
other investment products tracked by Lipper Analytical Services (a
widely used independent research firm which ranks mutual funds and
other investment companies), or any other rating service, and (iii)
the Consumer Price Index (measure for inflation) to assess the real
rate of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
[Shaded Section Header]
- -----------------------------------------------------------------------
GOLDEN AMERICAN LIFE INSURANCE COMPANY
- -----------------------------------------------------------------------
Golden American Life Insurance Company is a Delaware stock life
insurance company, which was originally incorporated in Minnesota on
January 2, 1973. Golden American is a wholly owned subsidiary of
Equitable of Iowa Companies, Inc. ("Equitable of Iowa"). Equitable
of Iowa is a wholly owned subsidiary of ING Groep N.V. ("ING"), a
global financial services holding company with approximately $461.8
billion in assets as of December 31, 1998. Golden American is
authorized to sell insurance and annuities in all states, except New
York, and the District of Columbia. In May 1996, Golden American
established a subsidiary, First Golden American Life Insurance
Company of New York, which is authorized to sell annuities in New
York and Delaware. Golden American's consolidated financial
statements appear in the Statement of Additional Information.
Equitable of Iowa is the holding company for Golden American,
Directed Services, Inc., the investment manager of the GCG Trust and
the distributor of the Contracts, and other interests. Equitable of
Iowa and another ING affiliate own ING Investment Management, LLC, a
portfolio manager of the GCG Trust. ING also owns Baring
International Investment Limited, another portfolio manager of the
GCG Trust.
Our principal office is located at 1475 Dunwoody Drive, West Chester,
Pennsylvania 19380.
[Shaded Section Header]
- -----------------------------------------------------------------------
THE TRUSTS
- -----------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance
policies offered by Golden American. The GCG Trust also sells its
shares to separate accounts of other insurance companies, both
affiliated and not affiliated with Golden American. Pending
Securities and Exchange Commission approval, shares of the GCG Trust
may also be sold to certain qualified pension and retirement plans.
The PIMCO Trust is also a mutual fund whose shares are available to
separate accounts of insurance companies, including Golden American,
for both variable annuity contracts and variable life insurance
policies and by qualified pension and retirement plans. The
principal address of the PIMCO Trust is 840 Newport Center Drive,
Suite 300, Newport Beach, CA 92660.
7
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In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust and the PIMCO Trust, Directed Services, Inc., Pacific
Investment Management Company and any other insurance companies
participating in the Trusts will monitor events to identify and
resolve any material conflicts that may arise.
YOU WILL FIND COMPLETE INFORMATION ABOUT THE GCG TRUST AND THE PIMCO
TRUST IN THE ACCOMPANYING TRUSTS' PROSPECTUSES. YOU SHOULD READ THEM
CAREFULLY BEFORE INVESTING.
[Shaded Section Header]
- -----------------------------------------------------------------------
GOLDEN AMERICAN SEPARATE ACCOUNT B
- -----------------------------------------------------------------------
Golden American Separate Account B ("Account B") was established as a
separate account of the Company on July 14, 1988. It is registered
with the Securities and Exchange Commission as a unit investment
trust under the Investment Company Act of 1940. Account B is a
separate investment account used for our variable annuity contracts.
We own all the assets in Account B but such assets are kept separate
from our other accounts.
Account B is divided into subaccounts. Each subaccount invests
exclusively in shares of one investment portfolio of the GCG Trust
and the PIMCO Trust. Each investment portfolio has its own distinct
investment objectives and policies. Income, gains and losses,
realized or unrealized, of a portfolio are credited to or charged
against the corresponding subaccount of Account B without regard to
any other income, gains or losses of the Company. Assets equal to
the reserves and other contract liabilities with respect to each are
not chargeable with liabilities arising out of any other business of
the Company. They may, however, be subject to liabilities arising
from subaccounts whose assets we attribute to other variable annuity
contracts supported by Account B. If the assets in Account B exceed
the required reserves and other liabilities, we may transfer the
excess to our general account. We are obligated to pay all benefits
and make all payments provided under the Contracts.
We currently offer other variable annuity contracts that invest in
Account B but are not discussed in this prospectus. Account B may
also invest in other investment portfolios which are not available
under your Contract.
[Shaded Section Header]
- -----------------------------------------------------------------------
THE INVESTMENT PORTFOLIOS
- -----------------------------------------------------------------------
During the accumulation phase, you may allocate your premium payments
and contract value to any of the 24 investment portfolios listed
below. YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE
TO THE INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market
conditions. MORE DETAILED INFORMATION ABOUT THE INVESTMENT
PORTFOLIOS CAN BE FOUND IN THE PROSPECTUSES FOR THE GCG TRUST AND THE
PIMCO TRUST. YOU SHOULD READ THESE PROSPECTUSES BEFORE INVESTING.
8
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[Shaded Section Header]
- -----------------------------------------------------------------------
INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- -----------------------------------------------------------------------
Liquid Asset Seeks high level of current income consistent with
the preservation of capital and liquidity.
Invests primarily in obligations of the U.S.
Government and its agencies and
instrumentalities, bank obligations,
commercial paper and short-term corporate debt
securities. All securities will mature in
less than one year.
-------------------------------------------------------
Limited Maturity Seeks highest current income consistent with
low risk to principal and liquidity.
Bond Also seeks to enhance its total return through capital
appreciation when market factors, such as
falling interest rates and rising bond prices,
indicate that capital appreciation may be
available without significant risk to
principal.
Invests primarily in diversified limited maturity debt
securities with average maturity dates of five
years or shorter and in no cases more than
seven years.
-------------------------------------------------------
Global Fixed Seeks high total return.
Income Invests primarily in high-grade fixed income
securities, both foreign and domestic.
-------------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
-------------------------------------------------------
Equity Income Seeks substantial dividend income as well as long-
term growth of capital.
Invests primarily in common stocks of well-
established companies paying above-average
dividends.
-------------------------------------------------------
Fully Managed Seeks, over the long term, a high total investment
return consistent with the preservation of
capital and with prudent investment risk.
Invests primarily in the common stocks of
established companies believed by the
portfolio manager to have above-average
potential for capital growth.
-------------------------------------------------------
Rising Dividends Seeks capital appreciation. A secondary
objective is dividend income.
Invests in equity securities that meet the
following quality criteria: regular dividend
increases; 35% of earnings reinvested
annually; and a credit rating of "A" to "AAA".
-------------------------------------------------------
Growth & Income Seeks long-term total return.
Invests primarily in common stocks of
companies where the potential for change
(earnings acceleration) is significant.
-------------------------------------------------------
Growth Seeks capital appreciation.
Invests primarily in common stocks of growth companies
that have favorable relationships between price/earnings
ratios and growth rates in sectors offering the potential
for above-average returns.
-------------------------------------------------------
Value Equity Seeks capital appreciation. Dividend income is a
secondary objective.
Invests primarily in common stocks of domestic
and foreign issuers which meet quantitative
standards relating to financial soundness and
high intrinsic value relative to price.
-------------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
-------------------------------------------------------
Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
-------------------------------------------------------
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Strategic Equity Seeks capital appreciation.
Invests primarily in common stocks of medium-
and small-sized companies.
-------------------------------------------------------
Capital Seeks long-term capital growth.
Appreciation Invests primarily in equity securities
believed by the portfolio manager to be
undervalued.
-------------------------------------------------------
Small Cap Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies that have a total market
capitalization within the range of companies
in the Russell 2000 Growth Index or the
Standard & Poor's Small-Cap 600 Index.
-------------------------------------------------------
Real Estate Seeks capital appreciation. Current income is a
secondary objective.
Invests primarily in publicly-traded real
estate equity securities.
-------------------------------------------------------
Hard Assets Seeks long-term capital appreciation.
Invests primarily in hard asset securities.
Hard asset companies produce a commodity which
the portfolio manager is able to price on a
daily or weekly basis.
-------------------------------------------------------
Managed Global Seeks capital appreciation. Current income is
only an incidental consideration.
Invests primarily in common stocks traded in
securities markets throughout the world.
-------------------------------------------------------
Developing World Seeks capital appreciation.
Invests primarily in equity securities of
companies in developing or emerging countries.
-------------------------------------------------------
Emerging Markets Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies in at least six different emerging
market countries.
-------------------------------------------------------
PIMCO High Yield Seeks to maximize total return, consistent with
preservation of capital and
Bond prudent investment management.
Invests in at least 65% of its assets in a diversified
portfolio of junk bonds rated at least B by
Moody's Investor Services, Inc. or Standard &
Poor's or, if unrated, determined by the
portfolio manager to be of comparable quality.
-------------------------------------------------------
PIMCO StocksPLUS Seeks to achieve a total return which exceeds
Growth and Income the total return performance of the S&P 500.
Invests primarily in common stocks, options, futures,
options on futures and swaps.
-------------------------------------------------------
As of May 1, 1999, we no longer offer the following two portfolios:
All-Growth Seeks capital appreciation.
Invests primarily in growth securities of
middle-range capitalization companies.
-------------------------------------------------------
Growth Seeks capital appreciation.
Opportunities Invests primarily in equity securities of
domestic companies emphasizing companies with
market capitalizations of $1 billion or more.
-------------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust and PIMCO serves as the overall adviser to the PIMCO Trust.
Directed Services, Inc. and PIMCO provide or procure, at their own
expense, the services necessary for the operation of the portfolios.
See the cover page of this prospectus for the names
10
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of the corresponding portfolio managers. Directed Services, Inc. and PIMCO
do not bear the expense of brokerage fees and other transactional
expenses for securities, taxes (if any) paid by a portfolio, interest
on borrowing, fees and expenses of the independent trustees, and
extraordinary expenses, such as litigation or indemnification
expenses.
The GCG Trust pays Directed Services, Inc. for its services a monthly
fee based on the annual rates of the average daily net assets of the
investment portfolios. Directed Services, Inc. (and not the GCG
Trust) in turn pays each portfolio manager a monthly fee for managing
the assets of the portfolios.
The PIMCO Trust pays PIMCO a monthly advisory fee and a monthly
administrative fee of 0.25% based on the average daily net assets of
each of the investment portfolios for managing the assets of the
portfolios and for administering the PIMCO Trust.
More detailed information about each portfolio's management fees can
be found in the prospectuses for each Trust. You should read these
prospectuses before investing.
[Shaded Section Header]
- -----------------------------------------------------------------------
THE ANNUITY CONTRACT
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The Contract described in this prospectus is a deferred variable
annuity contract. The Contract provides a means for you to invest in
one or more of the available mutual fund portfolios of the GCG Trust
and the PIMCO Trust funded by Account B.
CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase
and the income phase. The accumulation phase is the period between
the contract date and the annuity start date. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless
another annuitant is named in the application. You have the rights
and options described in the Contract. One or more persons may own
the Contract. If there are multiple owners named, the age of the
oldest owner will determine the applicable death benefit if such
death benefit is available for multiple owners.
The death benefit becomes payable when you or the annuitant dies. In
the case of a sole contract owner who dies before the income phase
begins, we will pay the beneficiary the death benefit then due. The
sole contract owner's estate will be the beneficiary if no
beneficiary has been designated or the beneficiary has predeceased
the contract owner. In the case of a joint owner of the Contract
dying before the income phase begins, we will designate the surviving
contract owner as the beneficiary. This will override any previous
beneficiary designation.
JOINT OWNER. For non-qualified Contracts only, joint owners may
be named in a written request before the Contract is in effect.
Joint owners may independently exercise transfers and other
transactions allowed under the Contract. All other rights of
ownership must be exercised by both owners. Joint owners own equal
shares of any benefits accruing or payments made to them. All rights
of a joint owner end at death of that owner if the other joint owner
survives. The entire interest of the deceased joint owner in the
Contract will pass to the surviving joint owner. The age of the
older owner will determine the applicable death benefit.
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ANNUITANT
The annuitant is the person designated by you to be the measuring
life in determining annuity payments. The annuitant's age determines
when the income phase must begin and the amount of the annuity
payments to be paid. You are the annuitant unless you choose to name
another person. The annuitant may not be changed after the Contract
is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date. If the
annuitant dies before the annuity start date, and a contingent
annuitant has been named, the contingent annuitant becomes the
annuitant (unless the contract owner is not an individual, in which
case the death benefit becomes payable).
If there is no contingent annuitant when the annuitant dies before
the annuity start date and the contract owner is not an individual,
we will pay the designated beneficiary the death benefit then due.
If a beneficiary has not been designated, or if there is no
designated beneficiary living, the contract owner will be the
beneficiary. If the annuitant was the sole contract owner and there
is no beneficiary designation, the annuitant's estate will be the
beneficiary.
Regardless of whether a death benefit is payable, if the annuitant
dies and any contract owner is not an individual, distribution rules
under federal tax law will apply. You should consult your tax
advisor for more information if you are not an individual.
BENEFICIARY
The beneficiary is named by you in a written request. The
beneficiary is the person who receives any death benefit proceeds and
who becomes the successor contract owner if the contract owner or the
annuitant dies before the annuity start date. We pay death benefits
to the primary beneficiary (unless there are joint owners, in which
case death proceeds are payable to the surviving owner(s)).
If the beneficiary dies before the annuitant or the contract owner,
the death benefit proceeds are paid to the contingent beneficiary, if
any. If there is no surviving beneficiary, we pay the death benefit
proceeds to the contract owner's estate.
One or more persons may be a beneficiary or contingent beneficiary.
In the case of more than one beneficiary, we will assume any death
benefit proceeds are to be paid in equal shares to the surviving
beneficiaries.
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and
the guaranteed death benefit. You may also change the beneficiary.
All requests for changes must be in writing and submitted to our
Customer Service Center in good order. The change will be effective
as of the day you sign the request. The change will not affect any
payment made or action taken by us before recording the change.
PURCHASE AND AVAILABILITY OF THE CONTRACT
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
The initial premium payment must be $10,000 or more ($1,500 for
qualified Contracts). You may make additional payments of at least
$500 or more ($250 for qualified Contracts) at any time after the
free look period before you turn age 85. Under certain
circumstances, we may waive the minimum premium payment requirement.
We may refuse a premium payment if an initial premium or the sum of
all premium payments is more than $1,500,000.
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CREDITING OF PREMIUM PAYMENTS
We will allocate your initial premium within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. Subsequent premium payments
will be credited to a Contract within 1 business day if they are
received in good order. In certain states we also accept initial and
additional premium payments by wire order. Wire transmittals must be
accompanied by sufficient electronically transmitted data. We may
retain premium payments for up to 5 business days while attempting to
complete an incomplete application. If the application cannot be
completed within this period, we will inform you of the reasons for
the delay. We will also return the premium payment immediately
unless you direct us to hold the premium payment until the
application is completed. Once the completed application is
received, we will allocate the payment to the subaccount(s) and/or
Fixed Interest Allocation(s) specified by you within 2 business days.
We will make inquiry to discover any missing information related to
subsequent payments. For any subsequent premium payments, the
payment will be credited at the accumulation unit value next
determined after receipt of your premium payment.
Once we allocate your premium payment to the subaccount(s) selected
by you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held with respect to your Contract. The net investment results of
each subaccount vary with its investment performance.
If your premium payment was transmitted by wire order from your
broker-dealer, we will follow one of the following two procedures
after we receive and accept the wire order and investment
instructions. The procedure we follow depends on state availability
and the procedures of your broker-dealer.
(1)If either your state or broker-dealer do not permit us to
issue a Contract without an application, we reserve the right
to rescind the Contract if we do not receive and accept a
properly completed application or enrollment form within 15
days of the premium payment. If we do not receive the
application or form within 15 days of the premium payment, we
will refund the contract value plus any charges we deducted,
and the Contract will be voided. Some states require that we
return the premium paid, in which case we will comply.
(2)If your state and broker-dealer allow us to issue a Contract
without an application, we will issue and mail the Contract to
you, together with an Application Acknowledgement Statement
for your execution. Until our Customer Service Center
receives the executed Application Acknowledgement Statement,
neither you nor the broker-dealer may execute any financial
transactions on your Contract unless they are requested in
writing by you.
In some states, we may require that an initial premium designated for
a subaccount of Account B be allocated to a subaccount specially
designated by the Company (currently, the Liquid Asset subaccount)
during the free look period. After the free look period, we will
convert your contract value (your initial premium plus any earnings
less any expenses) into accumulation units of the subaccounts you
previously selected. The accumulation units will be allocated based
on the accumulation unit value next computed for each subaccount.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the
contract value in the subaccount in which you are invested is equal
to the initial premium paid and designated to be allocated to the
subaccount. On the contract date, we allocate your contract value to
each subaccount specified by you, unless the Contract is issued in a
state that requires the return of premium payments during the free
look period, in which case, the portion of your initial premium will
be allocated to a subaccount specially designated by the Company
during the free look period for this purpose (currently, the Liquid
Asset subaccount).
On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1)We take the contract value in the subaccount at the end of the
preceding business day.
(2)We multiply (1) by the subaccount's Net Investment Factor
since the preceding business day.
(3)We add (1) and (2).
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(4)We add to (3) any additional premium payments, and then add or
subtract transfers (and any associated charges) to or from
that subaccount.
(5)We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, and distribution fee
(annual sales load), and premium taxes.
CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
surrender charge, any charge for premium taxes, and any other charges
incurred but not yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt
of your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Liquid Asset
subaccount) prior to processing the surrender. This transfer will
have no effect on your cash surrender value. You may receive the
cash surrender value in a single sum payment or apply it under one or
more annuity options. We will usually pay the cash surrender value
within 7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the Securities and Exchange
Commission (and any other regulatory agency, if required) substitute
another portfolio for existing and future investments.
We also reserve the right to: (i) deregister Account B under the 1940
Act; (ii) operate Account B as a management company under the 1940
Act if it is operating as a unit investment trust; (iii) operate
Account B as a unit investment trust under the 1940 Act if it is
operating as a managed separate account; (iv) restrict or eliminate
any voting rights as to Account B; and (v) combine Account B with
other accounts.
We will, of course, provide you with written notice before any of
these changes are effected.
OTHER CONTRACTS
We offer other variable annuity contracts that also invest in the
same portfolios of the Trusts. These contracts have different
charges that could effect their performance, and may offer different
benefits more
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suitable to your needs. To obtain more information
about these other contracts, contact our Customer Service Center or
your registered representative.
OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death
Benefit," "Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
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Any time during the accumulation phase and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if you request a withdrawal for more than 90% of the cash
surrender value, we will treat it as a request to surrender the
Contract. If any single withdrawal or the sum of withdrawals exceeds
the Free Withdrawal Amount, you will incur a surrender charge. The
Free Withdrawal Amount in any contract year is 15% of your contract
value on the date of withdrawal less any withdrawals during that
contract year.
You need to submit to us a written request specifying the subaccounts
from which amounts are to be withdrawn, otherwise the withdrawal will
be made on a pro rata basis from all of the subaccounts in which you
are invested. We will determine the contract value as of the close
of business on the day we receive your withdrawal request at our
Customer Service Center. The contract value may be more or less than
the premium payments made.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Liquid Asset
subaccount) prior to processing the withdrawal. This transfer will
not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $1,000. If you take more than one
regular withdrawal in a contract year, we impose a charge of the
lesser of $25 and 2.0% of each additional amount withdrawn.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatic systematic withdrawals on a
monthly or quarterly basis from the contract value in the subaccounts
in which you are invested. You may elect payments to start as early
as 28 days after the contract date. You choose the date on which the
withdrawals will be made but this date cannot be later than the 28th
day of the month. If you do not choose a date, we will make the
withdrawals on the same calendar day of each month as the contract
date. Each withdrawal payment must be at least $100.
The amount of your withdrawal can either be a (i) fixed dollar
amount, or (ii) an amount based on a percentage of your contract
value from the subaccounts in which you are invested. Both options
are subject to the following maximums:
FREQUENCY MAXIMUM PERCENTAGE
Monthly 1.25%
Quarterly 3.75%
If you select a fixed dollar amount and the amount to be
systematically withdrawn would exceed the applicable maximum
percentage of your contract value on the withdrawal date, we will
reduce the amount
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withdrawn so that it equals such percentage. If
you select a percentage and the amount to be systematically withdrawn
based on that percentage would be less than the minimum of $100, we
will increase the amount to $100 provided it does not exceed the
maximum percentage. If it is below the maximum percentage we will
send the $100. If it is above the maximum percentage we will send
the amount, and then cancel the option.
You may change the amount or percentage of your systematic withdrawal
once each contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have
this option commence in a contract year where a regular withdrawal
has been taken, but you may not change the amount or percentage of
your withdrawals in any contract year during which you have
previously taken a regular withdrawal. You may not elect this if you
are taking IRA withdrawals.
IRA WITHDRAWALS
If you have a non-Roth IRA Contract, and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by Federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at
that time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do
not elect to take IRA withdrawals, and distributions are required by
Federal tax law, distributions adequate to satisfy the requirements
imposed by Federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw
is $100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is
less than $100, we will pay $100. At any time where the IRA
withdrawal amount is greater than the contract value, we will cancel
the Contract and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once
each contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISOR REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. Your are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
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TRANSFERS AMONG YOUR INVESTMENTS
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You may transfer your contract value among the subaccounts in which
you are invested at the end of the free look period until the annuity
start date. We currently do not charge you for transfers made during
a contract year, but reserve the right to charge $25 for each
transfer after the twelfth transfer in a contract year. We also
reserve the right to limit the number of transfers you may make and
may otherwise modify or terminate transfer privileges if required by
our business judgment or in accordance with applicable law.
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Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value held in a subaccount.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account B and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program if
you have at least $10,000 of contract value in the Limited Maturity
Bond subaccount or the Liquid Asset subaccount. These subaccounts
serve as the source accounts from which we will, on a monthly basis,
automatically transfer a set dollar amount of money to other
subaccounts selected by you.
The dollar cost averaging program is designed to lessen the impact of
market fluctuation on your investment. Since we transfer the same
dollar amount to other subaccounts each month, more units of a
subaccount are purchased if the value of its unit is low and less
units are purchased if the value of its unit is high. Therefore, a
lower than average value per unit may be achieved over the long term.
However, we cannot guarantee this. When you elect the dollar cost
averaging program, you are continuously investing in securities
regardless of fluctuating price levels. You should consider your
tolerance for investing through periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $250. If your source account
is the Limited Maturity Bond subaccount or the Liquid Asset
subaccount, the maximum amount that can be transferred each month is
your contract value in such source account divided by 12.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money
to the subaccounts in which you are invested on a proportional basis.
The transfer date is the same day each month as your contract date.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the dollar cost averaging program at any time by
sending satisfactory notice to our Customer Service Center at least 7
days before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, suspend or
terminate this program. Of course, such change will not affect any
dollar cost averaging programs in operation at the time.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PHASE
If the contract owner or the annuitant dies before the annuity start
date, we will pay your beneficiary the death benefit proceeds under
the Contract unless your beneficiary is the surviving spouse and
elects to continue the Contract.
If the contract owner or the annuitant is NOT MORE THAN 75 YEARS OLD
(80 years old for Contracts with a contract date before November 6,
1992) at the time of purchase, the death benefit is the greater of:
1)the contract value; and
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2)the guaranteed death benefit, which we determine as follows: we
credit interest each business day at the 7% annual effective
rate to the guaranteed death benefit from the preceding day
(which would be the initial premium if the preceding day is
the contract date), then we add additional premiums paid since
the preceding day, then we subtract any withdrawals made since
the preceding day. The maximum guaranteed death benefit is 2
times all premium payments, less an amount to reflect total
withdrawals taken. The actual interest rate used for
calculating the death benefit for the Liquid Asset subaccount
will be the lesser of the 7% annual effective rate or the net
rate of return for the subaccount during the applicable
period.
If the contract owner or the annuitant is AGE 76 OR OLDER at the time
of purchase (age 81 or older for Contracts with a contract date
before November 6, 1992), the death benefit is the greater of:
1)the cash surrender value; and
2)the total premium payments made under the Contract after
subtracting any withdrawals.
If you purchased the Contract in North Carolina before November 6,
1992, the following death benefit applies: if the contract owner or
the annuitant are both age 80 or younger at the time or purchase, the
death benefit is the greater of: (1) the contract value: and (2) the
total premium payments made under the contract after subtracting any
withdrawals. If the contract owner or the annuitant is age 81 or
older at the time of purchase, the death benefit is the greater of:
(1) the cash surrender value; and (2) the total premium payments made
under the contract subtracting any withdrawals.
The death benefit value is calculated at the close of the business
day on which we receive proof of death at our Customer Service
Center. If your beneficiary elects to delay receipt of the death
benefit until a date after the time of death, the amount of the
benefit payable in the future may be affected. The proceeds may be
received in a single sum or applied to any of the annuity options.
If we do not receive a request to apply the death benefit proceeds to
an annuity option, we will make a single sum distribution.
HOW TO CLAIM PAYMENTS TO BENEFICIARY
We must receive due proof of the death of the annuitant or owner
(such as an official death certificate) at our Customer Service
Center before we will make any payments to the beneficiary. We will
calculate the death benefit as of the date we receive due proof of
death. The beneficiary should contact our Customer Service Center
for instructions.
WHEN WE MAKE PAYMENTS
We will pay death benefit proceeds and cash surrender value within
seven days after our Customer Service Center receives all the
information needed to process the payment.
DEATH BENEFIT DURING THE INCOME PHASE
If the contract owner or the annuitant dies after the annuity start
date, the Company will pay the beneficiary any certain benefit
remaining under the annuity in effect at the time.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and
for bearing various risks associated with the Contracts. The amount
of a charge will not always correspond to the actual costs
associated. For example, the surrender charge collected may not
fully cover all of the distribution expenses incurred by us with the
service or benefits provided. In the event there are any profits
from fees and charges deducted under the Contract, we may use such
profits to finance the distribution of contracts.
CHARGE DEDUCTION SUBACCOUNT
You may elect to have all charges against your contract value
deducted directly from a single subaccount designated by the Company.
Currently we use the Liquid Asset subaccount for this purpose. If
you do not elect this option, or if the amount of the charges is
greater than the amount in the designated subaccount, the charges
will be deducted as discussed below. You may cancel this option at
any time by sending satisfactory notice to our Customer Service
Center.
CHARGES DEDUCTED FROM THE CONTRACT VALUE
We deduct the following charges from your contract value:
DISTRIBUTION FEE. We deduct a sales load in an annual amount of
1.00% of each premium at the end of each contract year for a period
of 6 years from the date we receive and accept each premium payment.
SURRENDER CHARGE. We will deduct a contingent deferred sales
charge (a "surrender charge") if you surrender your Contract or if
you take a withdrawal in excess of the Free Withdrawal Amount during
the 7-year period from the date we receive and accept a premium
payment. The surrender charge is based on a percentage of each
premium payment. This charge is intended to cover sales expenses
that we have incurred. We may in the future reduce or waive the
surrender charge in certain situations, and will never charge more
than the maximum surrender charges as designated in this prospectus.
The percentage of premium payments deducted at the time of surrender
or excess withdrawal depends on the number of complete years that
have elapsed since that premium payment was made. We determine the
surrender charge as a percentage of each premium payment as follows:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6+
SINCE PREMIUM PAYMENT | | | | | |
SURRENDER CHARGE 6%| 5%| 4%| 3%| 2%| 1%| 0%
We will waive the surrender charge in most states in the following
events: (i) you begin receiving qualified extended medical care on or
after the first contract anniversary for at least 45 days during a 60
day period and your request for the surrender or withdrawal, together
with all required documentation is received at our Customer Service
Center during the term of your care or within 90 days after the last
day of your care; or (ii) you are first diagnosed by a qualifying
medical professional, on or after the first contract anniversary, as
having a qualifying terminal illness. We have the right to require
an examination by a physician of our choice. If we require such an
examination, we will pay for it. You are required to send us
satisfactory written proof of illness. The waiver of surrender
charge may not be available in all states.
Contracts with a contract date prior to May 3, 1993 and the
prospectus delivered in connection with such contracts, described the
sales load as a deferred load, which is equivalent to the combination
of the distribution fee and surrender charge described above.
Limited Edition contracts purchased through Golden American Separate
Account D and the prospectus delivered in connection with such
contracts also described the sales load as a deferred load.
FREE WITHDRAWAL AMOUNT. The Free Withdrawal Amount in any
contract year is 15% of your contract value on the date of withdrawal
less any withdrawals during that contract year.
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SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a
surrender charge for excess withdrawals. We consider a withdrawal to
be an "excess withdrawal" when the amount you withdraw in any
contract year exceeds the Free Withdrawal Amount. Where you are
receiving systematic withdrawals, any combination of regular
withdrawals taken and any systematic withdrawals expected to be
received in a contract year will be included in determining the
amount of the excess withdrawal. Such a withdrawal will be
considered a partial surrender of the Contract and we will impose a
surrender charge and any associated premium tax. We will deduct such
charges from the contract value in proportion to the contract value
in each subaccount from which the excess withdrawal was taken. In
instances where the excess withdrawal equals the entire contract
value in such subaccounts, we will deduct charges proportionately
from all other subaccounts in which you are invested.
For the purpose of calculating the surrender charge for an excess
withdrawal: a) we treat premiums as being withdrawn on a first-in,
first-out basis; and b) amounts withdrawn which are not considered an
excess withdrawal are not considered a withdrawal of any premium
payments. Although we treat premium payments as being withdrawn
before earnings for purpose of calculating the surrender charge for
excess withdrawals, the federal tax law treats earnings as withdrawn
first.
PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of
when the annuity payments begin. In those states we may defer
collection of the premium taxes from your contract value and deduct
it on surrender of the Contract, on excess withdrawals or on the
annuity start date.
ADMINISTRATIVE CHARGE. We deduct an annual administrative charge
on each Contract anniversary, or if you surrender your Contract prior
to a Contract anniversary, at the time we determine the cash
surrender value payable to you. The amount deducted is $40 per
Contract. This charge is waived if you have a contract value
exceeding $100,000 at the end of a contract year or the sum of the
premiums paid equals or exceeds $100,000. We deduct the annual
administrative charge proportionately from all subaccounts in which
you are invested.
TRANSFER CHARGE. We deduct a $25 fee for each transfer after the
twelfth transfer in a contract year. We deduct the charge from the
subaccounts from which each such transfer is made in proportion to
the amount being transferred from each such subaccount, unless you
have chosen to have all charges deducted from a single subaccount.
The charge will not apply to any transfers due to the election of
dollar cost averaging and transfers we make to and from any
subaccount specially designated by the Company for such purpose.
REGULAR WITHDRAWAL CHARGE. If you take more than one regular
withdrawal during a contract year, we impose a charge of the lesser
of $25 and 2.0% of the amount withdrawn for each additional regular
withdrawal. The charge is deducted from the division(s) from which
each such regular withdrawal is made in proportion to the amount
being withdrawn from each division, unless you have chosen to use the
Charge Deduction Division.
CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. The daily charge is at the
rate of 0.002477% (equivalent to an annual rate of 0.90%) of the
assets you have in each subaccount.
ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of 0.000276% (equivalent to an annual rate of 0.10%) on the
assets in each subaccount.
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TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
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THE ANNUITY OPTIONS
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ANNUITIZATION OF YOUR CONTRACT
If the annuitant and contract owner are living on the annuity start
date, we will begin making payments to the contract owner under an
income plan. We will make these payments under the annuity option
chosen. You may change an annuity option by making a written request
to us at least 30 days before the annuity start date. The amount of
the payments will be determined by applying your contract value on
the annuity start date in accordance with the annuity option you
chose.
You may also elect an annuity option on surrender of the Contract for
its cash surrender value or you may choose one or more annuity
options for the payment of death benefit proceeds while it is in
effect and before the annuity start date. If, at the time of the
contract owner's death or the annuitant's death (if the contract
owner is not an individual), no option has been chosen for paying
death benefit proceeds, the beneficiary may choose an annuity option
within 60 days. In all events, payments of death benefit proceeds
must comply with the distribution requirements of applicable federal
tax law.
The minimum monthly annuity income payment that we will make is $20.
We may require that a single sum payment be made if the contract
value is less than $2,000 or if the calculated monthly annuity income
payment is less than $20.
For each annuity option we will issue a separate written agreement
putting the annuity option into effect. Before we pay any annuity
benefits, we require the return of your Contract. If your Contract
has been lost, we will require that you complete and return the
applicable lost Contract form. Various factors will affect the level
of annuity benefits, such as the annuity option chosen, the
applicable payment rate used and the investment performance of the
portfolios.
Our current annuity options provide only for fixed payments. Fixed
annuity payments are regular payments, the amount of which is fixed
and guaranteed by us. Some fixed annuity options provide fixed
payments either for a specified period of time or for the life of the
annuitant. The amount of life income payments will depend on the
form and duration of payments you chose, the age of the annuitant or
beneficiary (and gender, where appropriate) and the applicable
payment rate.
Our approval is needed for any option where:
(1)The person named to receive payment is other than the contract
owner or beneficiary;
(2)The person named is not a natural person, such as a
corporation; or
(3)Any income payment would be less than the minimum annuity
income payment allowed.
SELECTING THE ANNUITY START DATE
You select the date on which the annuity payments commence. The
annuity start date must be at least 3 years from the contract date,
but before the month immediately following the annuitant's 90th
birthday. If, on the annuity start date, a surrender charge remains,
the elected annuity option must include a period certain of at least
5 years.
For Contracts with contract dates before May 3, 1993, different
annuity commencement date limitations may apply.
If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday.
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If the annuity start date occurs when the annuitant is at an advanced
age, such as over age 85, it is possible that the Contract will not
be considered an annuity for federal tax purposes. See "Federal Tax
Considerations" and the Statement of Additional Information. For a
Contract purchased in connection with a qualified plan, other than a
Roth IRA, distributions must commence not later than April 1st of the
calendar year following the calendar year in which you attain age 70
1/2 or, in some cases, retire. Distributions may be made through
annuitization or withdrawals. Consult your tax advisor.
FREQUENCY OF ANNUITY PAYMENTS
You choose the frequency of the annuity payments. They may be
monthly, quarterly, semi-annually or annually. If we do not receive
written notice from you, we will make the payments monthly. There
may be certain restrictions on minimum payments that we will allow.
THE ANNUITY OPTIONS
We offer the 4 annuity options shown below. Payments under Options
1, 2 and 3 are fixed. Payments under Option 4 may be fixed or
variable. For a fixed annuity option, the contract value in the
subaccounts is transferred to the Company's general account.
OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make
monthly payments in equal installments for a fixed number of years
based on the contract value on the annuity start date. We guarantee
that each monthly payment will be at least the amount stated in your
Contract. If you prefer, you may request that payments be made in
annual, semi-annual or quarterly installments. We will provide you
with illustrations if you ask for them. If the cash surrender value
or contract value is applied under this option, a 10% penalty tax may
apply to the taxable portion of each income payment until the
contract owner reaches age 59 1/2.
OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Payment is made
for the life of the annuitant in equal monthly installments and
guaranteed for at least a period certain such as 10 or 20 years.
Other periods certain may be available to you on request. You may
choose a refund period instead. Under this arrangement, income is
guaranteed until payments equal the amount applied. If the person
named lives beyond the guaranteed period, payments continue until his
or her death. We guarantee that each payment will be at least the
amount specified in the Contract corresponding to the person's age on
his or her last birthday before the annuity start date. Amounts for
ages not shown in the Contract are available if you ask for them.
OPTION 3. JOINT LIFE INCOME. This option is available when there
are 2 persons named to determine annuity payments. At least one of
the persons named must be either the contract owner or beneficiary of
the Contract. We guarantee monthly payments will be made as long as
at least one of the named persons is living. There is no minimum
number of payments. Monthly payment amounts are available if you ask
for them.
OPTION 4. ANNUITY PLAN. The contract value can be applied to any
other annuitization plan that we choose to offer on the annuity start
date.
PAYMENT WHEN NAMED PERSON DIES
When the person named to receive payment dies, we will pay any
amounts still due as provided in the annuity agreement between you
and Golden American. The amounts we will pay are determined as
follows:
1) For Option 1, or any remaining guaranteed payments under Option
2, we will continue payments. Under Options 1 and 2, the
discounted values of the remaining guaranteed payments may be
paid in a single sum. This means we deduct the amount of the
interest each remaining guaranteed payment would have earned
had it not been paid out early. The discount interest rate is
never less than 3% for Option 1 and 3.50% for Option 2 per
year. We will, however, base the discount interest rate on
the interest rate used to calculate the payments for Options 1
and 2 if such payments were not based on the tables in the
Contract.
2) For Option 3, no amounts are payable after both named persons
have died.
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3) For Option 4, the annuity option agreement will state the
amount we will pay, if any.
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account B
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS
The Company reserves the right to suspend or postpone the date of any
payment or determination of values on any business day (1) when the
New York Stock Exchange is closed; (2) when trading on the New York
Stock Exchange is restricted; (3) when an emergency exists as
determined by the Securities and Exchange Commission so that the sale
of securities held in Account B may not reasonably occur or so that
the Company may not reasonably determine the value of Account B's net
assets; or (4) during any other period when the Securities and
Exchange Commission so permits for the protection of security
holders.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
OTHER CONTRACT CHANGES
You may change the contract to another annuity plan subject to our
rules at the time of the change.
FREE LOOK
You may cancel your Contract within your 10-day free look period. We
deem the free look period to expire 15 days after we mail the
Contract to you. Some states may require a longer free look period.
To cancel, you need to send your Contract to our Customer Service
Center or to the agent from whom you purchased it. We will refund
the contract value, including a refund of any charges deducted. The
Contract will be void as of the day we receive your Contract and your
request. Some states require that we return the premium paid rather
than the contract value. In these states, your premiums designated
for investment in the subaccounts will be allocated during the free
look period to a subaccount specially designated by the Company for
this purpose (currently, the Liquid Asset subaccount). If you
exercise your right to cancel, we will return the greater of (a) the
premium invested, and (b) the contract value plus any amounts
deducted under the Contract or by the Trust for taxes, charges or
fees. We may, in our discretion, require that premiums designated
for investment in the subaccounts from all other states be allocated
to the specially
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designated subaccount during the free look period.
If you keep your Contract after the free look period, we will put
your money in the subaccount(s) chosen by you, based on the
accumulation unit value next computed for each subaccount, chosen by
you.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
surrender, administration, and mortality and expense risk charges.
We may also change the minimum initial and additional premium
requirements, or offer an alternative or reduced death benefit.
SELLING THE CONTRACT
Directed Services, Inc. is principal underwriter and distributor of
the Contract as well as for other contracts issued through Account B
and other separate accounts of Golden American. We pay Directed
Services Inc. for acting as principal underwriter under a
distribution agreement which in turn pays the writing agent. The
principal address of Directed Services is 1475 Dunwoody Drive, West
Chester, Pennsylvania 19380.
Directed Services enters into sales agreements with broker-dealers to
sell the Contracts through registered representatives who are
licensed to sell securities and variable insurance products. These
broker-dealers are registered with the SEC and are members of the
National Association of Securities Dealers, Inc. DSI receives a
maximum of 6% commission, and passes through 100% of the commission
to the broker-dealer whose registered representative sold the
contract.
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Underwriter Compensation
|----------------------------------------------------------------------------|
| NAME OF PRINCIPAL | AMOUNT OF | OTHER |
| UNDERWRITER | COMMISSION TO BE PAID | COMPENSATION |
| | | |
| Directed Services, Inc. | Maximum of 6% | Reimbursement of any |
| | of any initial | covered expenses incurred|
| | or additional | by registered |
| | premium payments | representatives in |
| | except when combined | connection with |
| | with some annual | the distribution |
| | trail commissions. | of the Contracts. |
|----------------------------------------------------------------------------|
Certain sales agreements may provide for a combination of a certain
percentage of commission at the time of sale and an annual trail
commission (which when combined could exceed 6% of total premium
payments).
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OTHER INFORMATION
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VOTING RIGHTS
We will vote the shares of a Trust owned by Account B according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are
permitted to vote the shares of a Trust in our own right, we may
decide to do so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account B which are not attributable to
contract owners in the same proportion.
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YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Golden American and Account B could be adversely affected if the
computer systems doing the accounts processing or on which Golden
American and/or Account B relies do not properly process and
calculate date-related information related to the end of the year
1999. This is commonly known as the Year 2000 (or Y2K) Problem.
Golden American is taking steps that it believes are reasonably
designed to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain satisfactory assurances
that comparable steps are being taken by its and Account B's major
service providers. At this time, however, we cannot guarantee that
these steps will be sufficient to avoid any adverse impact on Golden
American and Account B.
STATE REGULATION
We are regulated by the Insurance Department of the State of
Delaware. We are also subject to the insurance laws and regulations
of all jurisdictions where we do business. The variable Contract
offered by this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
The Company, like other insurance companies, may be involved in
lawsuits, including class action lawsuits. In some class action and
other lawsuits involving insurers, substantial damages have been
sought and/or material settlement payments have been made. We
believe that currently there are no pending or threatened lawsuits
that are reasonably likely to have a material adverse impact on the
Company or Account B.
LEGAL MATTERS
The legal validity of the Contracts was passed on by Myles R.
Tashman, Esquire, Executive Vice President, General Counsel and
Secretary of Golden American. Sutherland Asbill & Brennan LLP of
Washington, D.C. has provided advice on certain matters relating to
federal securities laws.
EXPERTS
The audited financial statements of Golden American Life Insurance
Company and Account B appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in
the Statement of Additional Information and in the Registration
Statement and are included or incorporated by reference in reliance
upon such reports given upon the authority of such firm as experts in
accounting and auditing.
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FEDERAL TAX CONSIDERATIONS
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The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete
information. This discussion is based upon our understanding of the
present federal income tax laws. We do not make any representations
as to the likelihood of continuation of the present federal income
tax laws or as to how they may be interpreted by the IRS.
TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The
ultimate effect of federal
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income taxes on the amounts held under a
Contract, or annuity payments, depends on the type of retirement
plan, on the tax and employment status of the individual concerned,
and on our tax status. In addition, certain requirements must be
satisfied in purchasing a qualified Contract with proceeds from a tax-
qualified plan and receiving distributions from a qualified Contract
in order to continue receiving favorable tax treatment. Some
retirement plans are subject to distribution and other requirements
that are not incorporated into our Contract administration
procedures. Contract owners, participants and beneficiaries are
responsible for determining that contributions, distributions and
other transactions with respect to the Contract comply with
applicable law. Therefore, you should seek competent legal and tax
advice regarding the suitability of a Contract for your particular
situation. The following discussion assumes that qualified Contracts
are purchased with proceeds from and/or contributions under
retirement plans that qualify for the intended special federal income
tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in
order for the Contracts to be treated as annuity contracts for
federal income tax purposes. It is intended that Account B, through
the subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account B assets,
we reserve the right to modify the Contracts as necessary to prevent
a contract owner from being treated as the owner of the Account B
assets supporting the Contract.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until
a distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not
a natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
(generally, the premiums or other consideration paid for the
contract) during the taxable year. There are some exceptions to this
rule and a prospective contract owner that is not a natural person
may wish to discuss these with a tax adviser. The following
discussion generally applies to Contracts owned by natural persons.
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WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income
subject to tax up to an amount equal to the excess (if any) of the
contract value (unreduced by the amount of any surrender charge)
immediately before the distribution over the contract owner's
investment in the Contract at that time. The tax treatment of market
value adjustments is uncertain. You should consult a tax adviser if
you are considering taking a withdrawal from your Contract in
circumstances where a market value adjustment would apply.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
o made on or after the taxpayer reaches age 59 1/2;
o made on or after the death of a contract owner;
o attributable to the taxpayer's becoming disabled; or
o made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is
taxed as ordinary income. The non-taxable portion of an annuity
payment is generally determined in a manner that is designed to allow
you to recover your investment in the Contract ratably on a tax-free
basis over the expected stream of annuity payments, as determined
when annuity payments start. Once your investment in the Contract
has been fully recovered, however, the full amount of each annuity
payment is subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the
same manner as a surrender of the Contract, or (ii) if distributed
under a payment option, they are taxed in the same way as annuity
payments.
TRANSFERS, ASSIGNMENTS, EXCHANGES AND ANNUITY DATES OF A CONTRACT.
A transfer or assignment of ownership of a Contract, the designation
of an annuitant, the selection of certain dates for commencement of
the annuity phase, or the exchange of a Contract may result in
certain tax consequences to you that are not discussed herein. A
contract owner contemplating any such transfer, assignment or
exchange, should consult a tax advisor as to the tax consequences.
WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld
from distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one non-qualified deferred
annuity contract for purposes of determining the amount includible in
such contract owner's income when a taxable distribution occurs.
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment
may be available for certain types of contributions and
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distributions. Adverse tax consequences may result from:
contributions in excess of specified limits; distributions before age
59 1/2 (subject to certain exceptions); distributions that do not
conform to specified commencement and minimum distribution rules; and
in other specified circumstances. Therefore, no attempt is made to
provide more than general information about the use of the Contracts
with the various types of qualified retirement plans. Contract
owners, annuitants, and beneficiaries are cautioned that the rights
of any person to any benefits under these qualified retirement plans
may be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contract, but we shall
not be bound by the terms and conditions of such plans to the extent
such terms contradict the Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth
IRAs, distributions are generally not taxed, except as described
below.
For qualified plans under Section 401(a) and 403(b), the Code
requires that distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) (i) reaches age 70 1/2
or (ii) retires, and must be made in a specified form or manner. If
the plan participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income
tax liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld
from distributions. "Eligible rollover distributions" from section
401(a) plans and section 403(b) tax-sheltered annuities are subject
to a mandatory federal income tax withholding of 20%. An eligible
rollover distribution is the taxable portion of any distribution from
such a plan, except certain distributions that are required by the
Code or distributions in a specified annuity form. The 20%
withholding does not apply, however, if the contract owner chooses a
"direct rollover" from the plan to another tax-qualified plan or IRA.
Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract
as necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
If any owner of a non-qualified contract dies before the annuity
start date, the death benefit payable to the beneficiary will be
distributed as follows: (a) the death benefit must be completely
distributed within 5 years of the contract owner's date of death; or
(b) the beneficiary may elect, within the 1-year period after the
contract owner's date of death, to receive the death benefit in the
form of an annuity from us, provided that (i) such annuity is
distributed in substantially equal installments over the life of such
beneficiary or over a period not extending beyond the life expectancy
of such beneficiary; and (ii) such distributions begin not later than
1 year after the contract owner's date of death.
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such
spouse may elect to continue the Contract under the same terms as
before the contract owner's death. Upon receipt of such election
from the spouse at our Customer Service Center: (1) all rights of
the spouse as contract owner's beneficiary under the Contract in
effect prior to such election will cease; (2)
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the spouse will become
the owner of the Contract and will also be treated as the contingent
annuitant, if none has been named and only if the deceased owner was
the annuitant; and (3) all rights and privileges granted by the
Contract or allowed by Golden American will belong to the spouse as
contract owner of the Contract. This election will be deemed to have
been made by the spouse if such spouse makes a premium payment to the
Contract or fails to make a timely election as described in this
paragraph. If the owner's beneficiary is a nonspouse, the
distribution provisions described in subparagraphs (a) and (b) above,
will apply even if the annuitant and/or contingent annuitant are
alive at the time of the contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year
period starting on the owner's date of death. Such cash payment will
be in full settlement of all our liability under the Contract.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death
of the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and
their employees. These retirement plans may permit the purchase of
the Contracts to accumulate retirement savings under the plans.
Adverse tax or other legal consequences to the plan, to the
participant, or to both may result if this Contract is assigned or
transferred to any individual as a means to provide benefit payments,
unless the plan complies with all legal requirements applicable to
such benefits before transfer of the Contract. Employers intending
to use the Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-
deferred basis into an IRA. There are significant restrictions on
rollover or transfer contributions from Savings Incentive Match Plans
(SIMPLE), under which certain employers may provide contributions to
IRAs on behalf of their employees, subject to special restrictions.
Employers may establish Simplified Employee Pension (SEP) Plans to
provide IRA contributions on behalf of their employees. Sales of the
Contract for use with IRAs may be subject to special requirements of
the IRS.
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions
from a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their
gross income the premium payments made, within certain limits, on a
Contract that will 29
<PAGE>
<PAGE>
provide an annuity for the employee's retirement.
These premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59
1/2, separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special
rules are provided with respect to other tax situations not discussed
in this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the
law may change. Federal estate and state and local estate,
inheritance and other tax consequences of ownership or receipt of
distributions under a Contract depend on the individual circumstances
of each contract owner or recipient of the distribution. A competent
tax adviser should be consulted for further information.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of
the change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
30
<PAGE>
<PAGE>
[Shaded Section Header]
- -----------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- -----------------------------------------------------------------------
TABLE OF CONTENTS
ITEM PAGE
Introduction............................................1
Description of Golden American Life Insurance Company...1
Safekeeping of Assets...................................1
The Administrator.......................................1
Independent Auditors....................................1
Distribution of Contracts...............................1
Performance Information.................................2
IRA Withdrawal Option...................................6
Other Information.......................................6
Financial Statements of Separate Account B..............6
Appendix Description of Bond Ratings.................A-1
- --------------------------------------------------------------------------
PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER; THE
ADDRESS IS SHOWN ON THE PROSPECTUS COVER.
- --------------------------------------------------------------------------
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT B.
Please Print or Type:
--------------------------------------------------
NAME
--------------------------------------------------
SOCIAL SECURITY NUMBER
--------------------------------------------------
STREET ADDRESS
--------------------------------------------------
CITY, STATE, ZIP
(DVA 5/99 6%)
31
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<PAGE>
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32
<PAGE>
<PAGE>
APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"),
(2) the total number of accumulation units, and (3) the total
accumulation unit value for each subaccount of Golden American
Separate Account B available under the Contract for the indicated
periods. The commencement date of each subaccount and the starting
accumulation unit value is noted on the last row of each table. The
Managed Global subaccount commenced operations initially as a
subaccount of another separate account, the Managed Global Account of
Separate Account D of Golden American; however, at the time of
conversion the value of an accumulation unit did not change. As of
May 1, 1999, we no longer accept new allocations into the All-Growth
and Growth Opportunities subaccounts.
LIQUID ASSET
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.89 1,767,965 $26,328 |
| 1997 14.32 1,598,949 22,894 |
| 1996 13.76 1,707,724 23,502 |
| 1995 13.24 2,096,044 27,757 |
| 1994 12.68 2,794,493 35,422 |
| 1993 12.35 914,801 11,295 |
| 1992 12.15 499,686 6,072 |
| 1991 11.90 64,151 764 |
| 12/31/90 11.38 -- -- |
| |
|-------------------------------------------------------------|
LIMITED MATURITY BOND
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.42 2,087,318 $36,352 |
| 1997 16.46 2,370,299 39,020 |
| 1996 15.59 2,887,112 45,004 |
| 1995 15.10 4,103,020 61,935 |
| 1994 13.65 4,956,843 67,647 |
| 1993 13.95 4,541,627 63,358 |
| 1992 13.27 2,156,633 28,616 |
| 1991 12.78 327,992 4,193 |
| 12/31/90 11.61 -- -- |
|
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
GLOBAL FIXED INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $13.31 13,446 $ 179 |
| 5/1/89 12.28 -- -- |
|-------------------------------------------------------------|
TOTAL RETURN
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $18.02 431,678 $ 7,778 |
| 1997 16.31 206,943 3,375 |
| 1/20/97 13.93 -- -- |
|-------------------------------------------------------------|
EQUITY INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.80 7,799,102 $177,844 |
| 1997 21.28 9,651,400 205,341 |
| 1996 18.30 12,399,943 226,919 |
| 1995 17.00 16,134,381 274,218 |
| 1994 14.43 18,607,114 268,575 |
| 1993 14.75 15,891,397 234,442 |
| 1992 13.41 5,539,622 74,284 |
| 1991 13.30 1,341,835 17,841 |
| 12/31/90 11.19 -- -- |
|
|-------------------------------------------------------------|
A2
<PAGE>
<PAGE>
FULLY MANAGED
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.34 4,133,650 $ 88,227 |
| 1997 20.36 5,032,148 102,451 |
| 1996 17.83 6,069,822 108,215 |
| 1995 15.48 7,054,994 109,184 |
| 1994 12.95 7,157,931 92,695 |
| 1993 14.11 6,925,734 97,693 |
| 1992 13.24 2,028,812 26,869 |
| 1991 12.59 186,207 2,345 |
| 12/31/09 9.87 -- -- |
|
|-------------------------------------------------------------|
RISING DIVIDENDS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $23.06 4,465,604 $102,983 |
| 1997 20.41 4,885,378 99,708 |
| 1996 15.88 5,296,367 84,105 |
| 1995 13.30 5,536,766 73,617 |
| 10/4/93 10.00 -- -- |
|-------------------------------------------------------------|
GROWTH & INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.20 486,360 $ 8,365 |
| 1997 15.51 559,791 8,685 |
| 1996 12.52 389,432 4,877 |
| 9/3/96 10.97 -- -- |
|-------------------------------------------------------------|
A3
<PAGE>
<PAGE>
GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.47 299,829 $ 4,940 |
| 1997 13.12 230,798 3,028 |
| 1/20/97 12.05 -- -- |
|-------------------------------------------------------------|
VALUE EQUITY
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $18.58 1,052,008 $19,542 |
| 1997 18.48 1,369,251 25,301 |
| 1996 14.66 1,387,641 20,348 |
| 1995 13.39 1,676,442 22,449 |
| 1/1/95 10.00 -- -- |
|-------------------------------------------------------------|
RESEARCH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $23.27 488,822 $11,377 |
| 1997 19.11 310,066 5,924 |
| 1/20/97 16.31 -- -- |
|-------------------------------------------------------------|
STRATEGIC EQUITY
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.40 772,105 $11,117 |
| 1997 14.42 1,011,370 14,587 |
| 1996 11.83 830,804 9,828 |
| 1995 10.01 362,606 3,629 |
| 10/2/95 10.00 -- -- |
|-------------------------------------------------------------|
A4
<PAGE>
<PAGE>
CAPITAL APPRECIATION
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $25.13 4,689,939 $117,875 |
| 1997 22.53 5,724,823 128,989 |
| 1996 17.65 6,704,917 118,334 |
| 1995 14.83 7,627,317 113,076 |
| 1994 11.50 7,419,377 85,356 |
| 1993 11.81 6,989,513 82,535 |
| 1992 11.01 1,421,494 15,655 |
| 5/4/92 10.00 -- -- |
|-------------------------------------------------------------|
MID-CAP GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.84 315,603 $ 7,210 |
| 1997 18.79 239,052 4,492 |
| 1996 15.86 167,020 2,649 |
| 9/3/96 14.79 -- -- |
|-------------------------------------------------------------|
SMALL CAP
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.55 701,203 $10,908 |
| 1997 12.99 895,702 11,632 |
| 1996 11.89 922,560 10,970 |
| 1/2/96 10.00 -- -- |
|-------------------------------------------------------------|
A5
<PAGE>
<PAGE>
REAL ESTATE
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.60 1,158,462 $26,182 |
| 1997 26.38 1,522,527 40,160 |
| 1996 21.70 1,740,369 37,764 |
| 1995 16.20 1,965,015 31,835 |
| 1994 14.04 2,403,805 33,740 |
| 1993 13.33 1,879,946 25,064 |
| 1992 11.48 180,596 2,074 |
| 1991 10.19 15,424 157 |
| 12/31/90 7.68 -- -- |
|
|-------------------------------------------------------------|
HARD ASSETS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.85 752,885 $11,178 |
| 1997 21.30 1,137,136 24,217 |
| 1996 20.26 1,426,490 28,904 |
| 1995 15.36 1,433,795 22,026 |
| 1994 14.02 1,917,571 26,880 |
| 1993 13.81 1,081,745 14,939 |
| 1992 9.30 52,270 486 |
| 1991 10.42 14,155 148 |
| 12/31/9 10.05 -- -- |
| |
|-------------------------------------------------------------|
MANAGED GLOBAL
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.27 3,944,829 $ 60,230 |
| 1997 11.93 5,055,107 60,290 |
| 1996 10.74 6,082,208 65,322 |
| 1995 9.66 72,375 |
| 1994 9.09 9,146,015 83,148 |
| 1993 10.52 8,037,403 84,537 |
| 1992 10.01 3,869,327 38,724 |
| 10/21/92 10.00 -- -- |
|-------------------------------------------------------------|
A6
<PAGE>
<PAGE>
DEVELOPING WORLD
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 7.31 4,598 $ 34 |
| 5/1/89 10.43 -- -- |
|-------------------------------------------------------------|
EMERGING MARKETS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 6.64 1,548,999 $ 10,288 |
| 1997 8.84 2,213,928 19,566 |
| 1996 9.85 2,752,396 27,112 |
| 1995 9.27 3,533,661 32,775 |
| 1994 10.42 5,090,502 53,052 |
| 1993 12.41 2,094,301 25,990 |
| 10/4/93 10.00 -- -- |
|-------------------------------------------------------------|
PIMCO HIGH YIELD BOND
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $10.11 107,998 $ 1,092 |
| 5/1/98 10.00 -- -- |
|-------------------------------------------------------------|
PIMCO STOCKSPLUS
GROWTH AND INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $11.14 160,283 $ 1,786 |
| 5/1/98 10.00 -- -- |
|-------------------------------------------------------------|
A7
<PAGE>
<PAGE>
ALL-GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.03 2,394,552 $38,396 |
| 1997 14.79 3,158,455 46,708 |
| 1996 14.11 4,275,253 60,324 |
| 1995 14.34 5,828,945 83,560 |
| 1994 11.83 5,569,278 65,874 |
| 1993 13.39 3,755,633 50,290 |
| 1992 12.69 1,230,777 15,623 |
| 1991 13.16 225,266 2,965 |
| 12/31/90 9.74 |
| |
|-------------------------------------------------------------|
GROWTH OPPORTUNITIES
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 9.69 13,050 $ 126 |
| 5/1/89 10.79 -- -- |
|-------------------------------------------------------------|
A8
<PAGE>
<PAGE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
Golden American Life Insurance Company is a stock company domiciled
in Delaware
- --------------------------------------------------------------------------
G 3107 5/99
<PAGE>
<PAGE>
EXPLANATORY NOTE: GOLDENSELECT DVA
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
<PAGE>
Statement of Additional Information
GOLDENSELECT DVA
DEFERRED COMBINATION VARIABLE
AND FIXED ANNUITY CONTRACT
ISSUED BY
SEPARATE ACCOUNT B
("Account B")
OF
GOLDEN AMERICAN LIFE INSURANCE COMPANY
This Statement of Additional Information is not a prospectus. The
information contained herein should be read in conjunction with the
Prospectus for the Golden American Life Insurance Company Deferred
Variable Annuity Contract, which is referred to herein.
The Prospectus sets forth information that a prospective investor
ought to know before investing. For a copy of the Prospectus, send a
written request to Golden American Life Insurance Company, Customer
Service Center, P.O. Box 2700, West Chester, Pennsylvania 19380-1478
or telephone 1-800-366-0066.
DATE OF PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION:
MAY 1, 1999
<PAGE>
<PAGE>
TABLE OF CONTENTS
ITEM PAGE
Introduction 1
Description of Golden American Life Insurance Company 1
Safekeeping of Assets 1
The Administrator 1
Independent Auditors 1
Distribution of Contracts 1
Performance Information 2
IRA Partial Withdrawal Option 6
Other Information 6
Financial Statements of Account B 6
Appendix - Description of Bond Ratings A-1
i
<PAGE>
<PAGE>
INTRODUCTION
This Statement of Additional Information provides background
information regarding Account B.
DESCRIPTION OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
Golden American Life Insurance Company ("Golden American") is a stock
life insurance company organized under the laws of the State of
Delaware. On August 13, 1996, Equitable of Iowa Companies, Inc.
(formerly Equitable of Iowa Companies) ("Equitable of Iowa") acquired
all of the interest in Golden American and Directed Services, Inc.
On October 24, 1997, Equitable of Iowa and ING Groep N.V. ("ING")
completed a merger agreement, and Equitable of Iowa became a wholly
owned subsidiary of ING. ING, headquartered in The Netherlands, is a
global financial services holding company with over $461.8 billion in
assets as of December 31, 1998.
As of December 31, 1998, Golden American had approximately $353.9
million in stockholder's equity and approximately $4.8 billion in
total assets, including approximately $3.4 billion of separate
account assets. Golden American is authorized to do business in all
jurisdictions except New York. Golden American offers variable
annuities and variable life insurance. Golden American formed a
subsidiary, First Golden American Life Insurance Company of New York
("First Golden"), who is licensed to do variable annuity business in
the states of New York and Delaware.
SAFEKEEPING OF ASSETS
Golden American acts as its own custodian for Account B.
THE ADMINISTRATOR
Effective January 1, 1997, Equitable Life Insurance Company of Iowa
("Equitable Life") and Golden American became parties to a service
agreement pursuant to which Equitable Life agreed to provide certain
accounting, actuarial, tax, underwriting, sales, management and other
services to Golden American. Expenses incurred by Equitable Life in
relation to this service agreement were reimbursed by Golden American
on an allocated cost basis. No charges were billed to Golden
American by Equitable Life pursuant to the service agreement in 1997.
Equitable Life billed Golden American $892,903 pursuant to the
service agreement in 1998.
INDEPENDENT AUDITORS
Ernst & Young LLP, independent auditors, performs annual audits of
Golden American and Account B.
DISTRIBUTION OF CONTRACTS
The offering of contracts under the prospectus associated with this
Statement of Additional Information is continuous. Directed
Services, Inc., an affiliate of Golden American, acts as the
principal underwriter (as defined in the Securities Act of 1933 and
the Investment Company Act of 1940, as amended) of the variable
insurance products (the "variable insurance products") issued by
Golden American. The variable insurance products were sold primarly
through two broker/dealer institutions, during the year ended
December 31, 1996, through two broker/dealer institutions during the
year ended December 31, 1997 and through two broker/dealer
institutions during the year ended December 31, 1998. For the years
ended 1998, 1997 and 1996 commissions paid by Golden American to
Directed Services, Inc. aggregated $117,470,000, $36,350,000 and
$27,065,000, respectively. Directed Services, Inc. is located at 1475
Dunwoody Drive, West Chester, Pennsylvania 19380-1478.
Under a management services agreement, last amended in 1995, Golden
American provides to Directed Services, Inc. certain of its personnel
to perform management, administrative and clerical services and the
use of certain facilities. Golden American charges Directed
Services, Inc. for such expenses and all other general and
administrative costs, first on the basis of direct charges when
identifiable, and the remainder allocated based on the estimated
amount of time spent by Golden American's employees on behalf of
Directed Services, Inc. In the
1
<PAGE>
<PAGE>
opinion of management, this method
of cost allocation is reasonable. This fee, calculated as a
percentage of average assets in the variable separate accounts, was
$4,771,000, $2,770,000 and $2,267,000 for the years ended 1998, 1997
and 1996, respectively.
PERFORMANCE INFORMATION
Performance information for the subaccounts of Account B, including
yields, standard annual returns and other non-standard measures of
performance of all subaccounts, may appear in reports or promotional
literature to current or prospective owners. Such non-standard
measures of performance will be computed, or accompanied by
performance data computed, in accordance with criteria defined by the
SEC. Negative values are denoted by minus signs ("-"). Performance
information for measures other than total return do not reflect any
applicable premium tax that can range from 0% to 3.5%. As described
in the prospectus, three death benefit options are available. The
following performance values reflect the election at issue of the 7%
Solution Enhanced Death Benefit Option providing values reflecting
the highest aggregate contract charges. If one of the other death
benefit options had been elected, the historical performance values
would be higher than those represented in the examples.
SEC STANDARD MONEY MARKET SUBACCOUNT YIELDS
Current yield for the Liquid Asset Subaccount will be based on the
change in the value of a hypothetical investment (exclusive of
capital changes or income other than investment income) over a
particular 7-day period, less a pro rata share of subaccount expenses
accrued over that period (the "base period"), and stated as a
percentage of the investment at the start of the base period (the
"base period return"). The base period return is then annualized by
multiplying by 365/7, with the resulting yield figure carried to at
least the nearest hundredth of one percent. Calculation of
"effective yield" begins with the same "base period return" used in
the calculation of yield, which is then annualized to reflect weekly
compounding pursuant to the following formula:
Effective Yield = [(Base Period Return) +1)^365/7] - 1
The current yield and effective yield of the Liquid Asset Subaccount
for the 7-day period December 25, 1998 to December 31, 1998 were
3.65% and 3.71%, respectively.
SEC STANDARD 30-DAY YIELD FOR NON-MONEY MARKET SUBACCOUNTS
Quotations of yield for the remaining subaccounts will be based on
all investment income per subaccount earned during a particular 30-
day period, less expenses accrued during the period ("net investment
income"), and will be computed by dividing net investment income by
the value of an accumulation unit on the last day of the period,
according to the following formula:
Yield = 2 [ ( a - b +1)^(6) - 1]
------
cd
Where:
[a] equals the net investment income earned during the
period by the investment portfolio attributable to
shares owned by a subaccount
[b] equals the expenses accrued for the period (net of
reimbursements)
[c] equals the average daily number of units
outstanding during the period based on the accumulation
unit value
[d] equals the value (maximum offering price) per
accumulation unit value on the last day of the period
Yield on subaccounts of Account B is earned from the increase in net
asset value of shares of the portfolio in which the subaccount
invests and from dividends declared and paid by the portfolio, which
are automatically reinvested in shares of the portfolio.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of average annual total return for any subaccount will be
expressed in terms of the average annual compounded rate of return of
a hypothetical investment in a contract over a period of one, five
and 10 years (or, if less, up to the life of the subaccount),
calculated pursuant to the formula:
2
<PAGE>
<PAGE>
P(1+T)^(n)=ERV
Where:
(1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at the
beginning of the period (or fractional portion thereof)
All total return figures reflect the deduction of the maximum sales
load, the administrative charges, and the mortality and expense risk
charges. The Securities and Exchange Commission (the "SEC") requires
that an assumption be made that the contract owner surrenders the
entire contract at the end of the one, five and 10 year periods (or,
if less, up to the life of the security) for which performance is
required to be calculated. This assumption may not be consistent with
the typical contract owner's intentions in purchasing a contract and
may adversely affect returns. Quotations of total return may
simultaneously be shown for other periods, as well as quotations of
total return that do not take into account certain contractual
charges such as sales load.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality and
expense risk charge, administrative charge, contract charge and
surrender charge for the year ending December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
Average Annual Total Return for Periods Ending 12/31/98 - Standardized
- ----------------------------------------------------------------------
One Year Period Five Year Period Inception to Inception
Subaccount Ending 12/31/98 Ending 12/31/98 Ending 12/31/98 Date
- ---------- --------------- --------------- --------------- ----
<S> <C> <C> <C> <C>
Equity Income 1.12% 8.77% 8.62%* 1/25/89
Fully Managed -1.23% 8.01% 7.90%* 1/25/89
Capital Appreciation 5.49% 16.05% 14.72%* 5/4/92
Rising Dividends 6.93% 17.25% 17.05% 10/4/93
All-Growth 2.36% 3.26% 4.83%* 1/25/89
Real Estate -20.38% 10.82% 8.52%* 1/25/89
Hard Assets -36.35% 1.02% 4.02%* 1/25/89
Value Equity -5.53% n/a 16.11% 1/1/95
Strategic Equity -6.23% n/a 10.86% 10/2/95
Small Cap 13.71% n/a 14.59% 1/2/96
Emerging Markets -16.66% -12.52% -3.11% 10/4/93
Managed Global 21.96% 7.39%* 6.91%* 10/21/92
Growth Opportunities n/a n/a -9.19%# 2/19/98
Developing World n/a n/a -33.97%# 2/19/98
Mid-Cap Growth 15.52% n/a 21.13%* 10/7/94
Research 15.76% n/a 21.76%* 10/7/94
Total Return 4.41%* n/a 14.42%* 10/7/94
Growth & Income 4.79% n/a 20.52% 4/1/96
Growth 19.49% n/a 19.08%* 4/1/96
Global Fixed Income 4.67%* n/a 6.38%* 10/7/94
High Yield Bond n/a n/a -4.99%*# 5/1/98
StocksPLUS Growth and n/a n/a 5.35%*# 5/1/98
Income
Limited Maturity Bond -0.27% 4.14% 5.71%* 1/25/89
Liquid Asset -2.06% 3.42% 4.05%* 1/25/89
</TABLE>
- ----------------------
* Total return calculation reflects partial waiver of fees and
expenses.
# Non-annualized.
3
<PAGE>
<PAGE>
Non-Standard Average Annual Total Return for All Subaccounts
Quotations of non-standard average annual total return for any
subaccount will be expressed in terms of the average annual
compounded rate of return of a hypothetical investment in a contract
over a period of one, five and 10 years (or, if less, up to the life
of the subaccount), calculated pursuant to the formula:
P(1+T)^(n)]=ERV
Where:
(1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at the
beginning of the period (or fractional portion thereof)
assuming certain loading and charges are zero.
All total return figures reflect the deduction of the mortality and
expense risk charge and the administrative charges, but not the
deduction of the maximum sales load and the annual contract fee.
Average Annual Total Return for the subaccounts presented on a non-
standardized basis, which includes deductions for the mortality and
expense risk charge and the administrative charge for the year ending
December 31, 1998 were as follows:
<TABLE>
<CAPTION>
Average Annual Total Return for Periods Ending 12/31/98 - Non-Standardized
- --------------------------------------------------------------------------
One Year Period Five Year Period Inception to Inception
Subaccount Ending 12/31/98 Ending 12/31/98 Ending 12/31/98 Date
- ---------- --------------- --------------- --------------- ----
<S> <C> <C> <C> <C>
Equity Income 7.18% 9.09% 8.65%* 1/25/89
Fully Managed 4.84% 8.63% 7.93%* 1/25/89
Capital Appreciation 11.55% 16.30% 14.81%* 5/4/92
Rising Dividends 12.99% 17.51% 17.27% 10/4/93
All-Growth 8.43% 3.67% 4.87%* 1/25/89
Real Estate -14.32% 11.13% 8.55%* 1/25/89
Hard Assets -30.29% 1.46% 4.06%* 1/25/89
Value Equity 0.54% n/a 16.77% 1/1/95
Strategic Equity -0.17% n/a 11.87% 10/2/95
Small Cap 19.77% n/a 15.88% 1/2/96
Emerging Markets -10.60% -11.75% -2.61% 10/4/93
Managed Global 28.02% 7.73%* 7.07%* 10/21/92
Growth Opportunities n/a n/a -3.13%# 2/19/98
Developing World n/a n/a -26.91%# 2/19/98
Mid-Cap Growth 21.58% n/a 21.54%* 10/7/94
Research 21.82% n/a 22.07%* 10/7/94
Total Return 10.48%* n/a 14.91%* 10/7/94
Growth & Income 10.85% n/a 21.86% 4/1/96
Growth 25.56% n/a 19.92%* 4/1/96
Global Fixed Income 10.73%* n/a 7.00%* 10/7/94
High Yield Bond n/a n/a 10.70%*# 5/1/98
StocksPLUS Growth and n/a n/a 11.41%*# 5/1/98
Income
Limited Maturity Bond 5.79% 4.53% 5.74%* 1/25/89
Liquid Asset 4.00% 3.82% 4.09%* 1/25/89
</TABLE>
- ---------------------
* Total return calculation reflects partial waiver of fees and
expenses.
# Non-annualized.
Performance information for a subaccount may be compared, in reports
and promotional literature, to: (i) the Standard & Poor's 500 Stock
Index ("S&P 500"), Dow Jones Industrial Average ("DJIA"), Donoghue
Money Market Institutional Averages, or other indices that measure
performance of a pertinent group of securities so that investors may
compare a subaccount's results with those of a group of securities
widely regarded by investors as
4
<PAGE>
<PAGE>
representative of the securities
markets in general; (ii) other groups of variable annuity separate
accounts or other investment products tracked by Lipper Analytical
Services, a widely used independent research firm which ranks mutual
funds and other investment companies by overall performance,
investment objectives, and assets, or tracked by other services,
companies, publications, or persons who rank such investment
companies on overall performance or other criteria; and (iii) the
Consumer Price Index (measure for inflation) to assess the real rate
of return from an investment in the contract. Unmanaged indices may
assume the reinvestment of dividends but generally do not reflect
deductions for administrative and management costs and expenses.
Performance information for any subaccount reflects only the
performance of a hypothetical contract under which contract value is
allocated to a subaccount during a particular time period on which
the calculations are based. Performance information should be
considered in light of the investment objectives and policies,
characteristics and quality of the investment portfolio of the Trust
in which the Account B subaccounts invest, and the market conditions
during the given time period, and should not be considered as a
representation of what may be achieved in the future.
Reports and promotional literature may also contain other information
including the ranking of any subaccount derived from rankings of
variable annuity separate accounts or other investment products
tracked by Lipper Analytical Services or by other rating services,
companies, publications, or other persons who rank separate accounts
or other investment products on overall performance or other
criteria.
PUBLISHED RATINGS
From time to time, the rating of Golden American as an insurance
company by A.M. Best may be referred to in advertisements or in
reports to contract owners. Each year the A.M. Best Company reviews
the financial status of thousands of insurers, culminating in the
assignment of Best's Ratings. These ratings reflect their current
opinion of the relative financial strength and operating performance
of an insurance company in comparison to the norms of the life/health
insurance industry. Best's ratings range from A+ + to F. An A++ and
A+ ratings mean, in the opinion of A.M. Best, that the insurer has
demonstrated the strongest ability to meet its respective
policyholder and other contractual obligations.
ACCUMULATION UNIT VALUE
The calculation of the Accumulation Unit Value ("AUV") is discussed
in the prospectus for the Contracts under Performance Information.
Note that in your Contract, accumulation unit value is referred to as
the Index of Investment Experience. The following illustrations show
a calculation of a new AUV and the purchase of Units (using
hypothetical examples):
ILLUSTRATION OF CALCULATION OF AUV
EXAMPLE 1.
1. AUV, beginning of period $1.80000000
2. Value of securities, beginning of period $21.20
3. Change in value of securities $ .50
4. Gross investment return (3) divided by (2) 02358491
5. Less daily mortality and expense charge 00002477
6. Less asset based administrative charge 00000276
7. Net investment return (4) minus (5) minus (6) 02355738
8. Net investment factor (1.000000) plus (7) 1.02355738
9. AUV, end of period (1) multiplied by (8) $1.84240328
ILLUSTRATION OF PURCHASE OF UNITS (ASSUMING NO STATE PREMIUM TAX)
EXAMPLE 2.
1. Initial Premium Payment $100.00
2. AUV on effective date of purchase (see Example 1) $1.8000000
3. Number of Units purchased [(1) divided by (2)] 55.55556
4. AUV for valuation date following purchase (see Example 1) $1.84240328
5
<PAGE>
<PAGE>
5. Contract Value in account for valuation date
following purchase [(3) multiplied by (4)] $102.36
IRA PARTIAL WITHDRAWAL OPTION
If the contract owner has an IRA contract and will attain age 70 1/2 in
the current calendar year, distributions will be made in accordance
with the requirements of Federal tax law. This option is available
to assure that the required minimum distributions from qualified
plans under the Internal Revenue Code (the "Code") are made. Under
the Code, distributions must begin no later than April 1st of the
calendar year following the calendar year in which the contract owner
attains age 70 1/2. If the required minimum distribution is not
withdrawn, there may be a penalty tax in an amount equal to 50% of
the difference between the amount required to be withdrawn and the
amount actually withdrawn. Even if the IRA Partial Withdrawal Option
is not elected, distributions must nonetheless be made in accordance
with the requirements of Federal tax law.
Golden American notifies the contract owner of these regulations with
a letter mailed on January 1st of the calendar year in which the
contract owner reaches age 70 1/2 which explains the IRA Partial
Withdrawal Option and supplies an election form. If electing this
option, the owner specifies whether the withdrawal amount will be
based on a life expectancy calculated on a single life basis
(contract owner's life only) or, if the contract owner is married, on
a joint life basis (contract owner's and spouse's lives combined).
The contract owner selects the payment mode on a monthly, quarterly
or annual basis. If the payment mode selected on the election form
is more frequent than annually, the payments in the first calendar
year in which the option is in effect will be based on the amount of
payment modes remaining when Golden American receives the completed
election form. Golden American calculates the IRA Partial Withdrawal
amount each year based on the minimum distribution rules. We do this
by dividing the contract value by the life expectancy. In the first
year withdrawals begin, we use the contract value as of the date of
the first payment. Thereafter, we use the contract value on December
31st of each year. The life expectancy is recalculated each year.
Certain minimum distribution rules govern payouts if the designated
beneficiary is other than the contract owner's spouse and the
beneficiary is more than ten years younger than the contract owner.
OTHER INFORMATION
Registration statements have been filed with the SEC under the
Securities Act of 1933, as amended, with respect to the Contracts
discussed in this Statement of Additional Information. Not all of
the information set forth in the registration statements, amendments
and exhibits thereto has been included in this Statement of
Additional Information. Statements contained in this Statement of
Additional Information concerning the content of the Contracts and
other legal instruments are intended to be summaries. For a complete
statement of the terms of these documents, reference should be made
to the instruments filed with the SEC.
FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B
The audited financial statements of Separate Account B are listed
below and are included in this Statement of Additional Information:
Report of Independent Auditors
Audited Financial Statements
Statement of Assets and Liability as of December 31, 1998
Statement of Operations for the year ended December 31, 1998
Statements of Changes in Net Assets for the years ended
December 31, 1998 and 1997
Notes to Financial Statements
6
<PAGE>
<PAGE>
FINANCIAL STATEMENTS
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
YEARS ENDED DECEMBER 31, 1998 AND 1997
WITH REPORT OF INDEPENDENT AUDITORS
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
Report of Independent Auditors
Audited Financial Statements
Statement of Assets and Liability
Statement of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Auditors
The Board of Directors
Golden American Life Insurance Company
We have audited the accompanying statement of assets and liability of Golden
American Life Insurance Company Separate Account B as of December 31, 1998,
and the related statements of operations for the year then ended and the
changes in net assets for each of the two years in the period then ended.
These financial statements are the responsibility of the Account'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,
1998, by correspondence with the custodian. 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, the financial statements referred to above present fairly, in
all material respects, the financial position of Golden American Life
Insurance Company Separate Account B at December 31, 1998, and the results of
its operations for the year then ended and the changes in its net assets for
each of the two years in the period then ended in conformity with generally
accepted accounting principles.
/S/ Ernst & Young LLP
Des Moines, Iowa
February 25, 1999
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF ASSETS AND LIABILITY
DECEMBER 31, 1998
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
The GCG Trust:
Liquid Asset Series,
175,698,298 shares (cost - $175,698) $175,698
Limited Maturity Bond Series,
9,632,216 shares (cost - $103,588) 102,872
Hard Assets Series,
3,095,761 shares (cost - $44,073) 29,719
All-Growth Series,
5,460,140 shares (cost - $72,614) 81,847
Real Estate Series,
5,082,757 shares (cost - $77,307) 69,024
Fully Managed Series,
14,869,764 shares (cost - $216,245) 226,467
Multiple Allocation Series,
21,629,600 shares (cost - $268,930) 274,047
Capital Appreciation Series,
14,189,481 shares (cost - $221,707) 256,687
Rising Dividends Series,
22,754,116 shares (cost - $421,987) 500,818
Emerging Markets Series,
3,333,290 shares (cost - $31,776) 22,267
Market Manager Series,
414,851 shares (cost - $4,663) 8,068
Value Equity Series,
7,950,210 shares (cost - $122,857) 126,249
Strategic Equity Series,
5,567,699 shares (cost - $69,933) 71,377
Small Cap Series,
7,754,062 shares (cost - $103,129) 124,298
Managed Global Series,
9,213,401 shares (cost - $110,591) 130,738
Mid-Cap Growth Series,
6,458,180 shares (cost - $109,532) 116,893
Growth & Income Series,
11,461,829 shares (cost - $170,105) 179,033
Research Series,
13,965,668 shares (cost - $266,377) 283,643
Total Return Series,
14,425,794 shares (cost - $226,488) 227,928
Value + Growth Series,
9,163,078 shares (cost - $129,140) 143,127
Global Fixed Income Series,
853,224 shares (cost - $9,541) 9,531
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF ASSETS AND LIABILITY
DECEMBER 31, 1998
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS - CONTINUED
Investments at net asset value:
The GCG Trust:
Developing World Series,
612,452 shares (cost - $4,365) $4,514
Growth Opportunities Series,
425,552 shares (cost - $3,783) 4,132
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio,
4,770,792 shares (cost - $46,152) 46,134
PIMCO StocksPLUS Growth and Income Portfolio,
4,119,171 shares (cost - $47,564) 51,819
Greenwich Street Series Fund Inc.:
Appreciation Portfolio,
46,082 shares (cost - $932) 975
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio,
63,707 shares (cost - $870) 807
Smith Barney Large Cap Value Portfolio,
34,717 shares (cost - $692) 702
Smith Barney International Equity Portfolio,
23,707 shares (cost - $333) 326
Smith Barney Money Market Portfolio,
317,907 shares (cost - $318) 318
Warburg Pincus Trust:
International Equity Portfolio,
4,529,941 shares (cost - $48,231) 49,785
____________
TOTAL ASSETS (cost - $3,109,521) 3,319,843
LIABILITY
Payable to Golden American Life Insurance Company
for charges and fees 1,638
____________
TOTAL NET ASSETS $3,318,205
============
NET ASSETS
For variable annuity insurance contracts $3,309,202
Retained in Separate Account B by Golden American
Life Insurance Company 9,003
____________
TOTAL NET ASSETS $3,318,205
============
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Liquid Maturity Hard
Asset Bond Assets
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $5,783 $3,217 $1,662
Capital gains distributions -- -- 1,065
______________________________
TOTAL INVESTMENT INCOME 5,783 3,217 2,727
Expenses:
Mortality and expense risk and other charges 1,619 939 461
Annual administrative charges 62 41 13
Minimum death benefit guarantee charges 7 1 2
Contingent deferred sales charges 342 65 53
Other contract charges 9 3 2
Amortization of deferred charges related to:
Deferred sales load 615 389 164
Premium taxes 3 6 3
______________________________
TOTAL EXPENSES BEFORE WAIVER 2,657 1,444 698
Fees waived by Golden American Life
Insurance Company 5 9 4
______________________________
NET EXPENSES 2,652 1,435 694
______________________________
NET INVESTMENT INCOME (LOSS) 3,131 1,782 2,033
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments -- 872 (6,941)
Net unrealized appreciation
(depreciation) of investments -- 739 (8,620)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $3,131 $3,393 ($13,528)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All- Real Fully
Growth Estate Managed
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $3,321 $6,674
Capital gains distributions $470 6,244 12,408
______________________________
TOTAL INVESTMENT INCOME 470 9,565 19,082
Expenses:
Mortality and expense risk and other charges 879 964 2,417
Annual administrative charges 41 28 105
Minimum death benefit guarantee charges 1 1 2
Contingent deferred sales charges 46 38 64
Other contract charges 2 1 5
Amortization of deferred charges related to:
Deferred sales load 409 290 866
Premium taxes 7 5 16
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,385 1,327 3,475
Fees waived by Golden American Life
Insurance Company 10 6 19
______________________________
NET EXPENSES 1,375 1,321 3,456
______________________________
NET INVESTMENT INCOME (LOSS) (905) 8,244 15,626
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 330 3,708 1,704
Net unrealized appreciation
(depreciation) of investments 6,240 (24,689) (10,501)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,665 ($12,737) $6,829
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple Capital
Alloca- Apprecia- Rising
tion tion Dividends
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $13,875 $3,355 $2,240
Capital gains distributions 14,968 19,519 16,632
______________________________
TOTAL INVESTMENT INCOME 28,843 22,874 18,872
Expenses:
Mortality and expense risk and other charges 2,985 2,656 4,670
Annual administrative charges 144 110 212
Minimum death benefit guarantee charges 10 2 4
Contingent deferred sales charges 89 59 128
Other contract charges 9 9 13
Amortization of deferred charges related to:
Deferred sales load 1,784 1,083 934
Premium taxes 33 25 11
______________________________
TOTAL EXPENSES BEFORE WAIVER 5,054 3,944 5,972
Fees waived by Golden American Life
Insurance Company 26 26 20
______________________________
NET EXPENSES 5,028 3,918 5,952
______________________________
NET INVESTMENT INCOME (LOSS) 23,815 18,956 12,920
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,288 6,551 3,842
Net unrealized appreciation
(depreciation) of investments (10,125) (3,987) 17,344
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $15,978 $21,520 $34,106
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging Market Value
Markets Manager Equity
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $129 $2,766
Capital gains distributions -- 214 1,018
______________________________
TOTAL INVESTMENT INCOME -- 343 3,784
Expenses:
Mortality and expense risk and other charges $336 -- 1,442
Annual administrative charges 10 1 57
Minimum death benefit guarantee charges 1 -- 1
Contingent deferred sales charges 16 -- 57
Other contract charges 1 -- 2
Amortization of deferred charges related to:
Deferred sales load 160 43 231
Premium taxes 2 -- 3
______________________________
TOTAL EXPENSES BEFORE WAIVER 526 44 1,793
Fees waived by Golden American Life
Insurance Company 2 -- 3
______________________________
NET EXPENSES 524 44 1,790
______________________________
NET INVESTMENT INCOME (LOSS) (524) 299 1,994
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (3,524) 135 1,237
Net unrealized appreciation
(depreciation) of investments (4,266) 1,090 (4,208)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($8,314) $1,524 ($977)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic Small Managed
Equity Cap Global
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,941 -- $1,806
Capital gains distributions 2,711 -- 3,627
______________________________
TOTAL INVESTMENT INCOME 4,652 -- 5,433
Expenses:
Mortality and expense risk and other charges 851 $1,114 1,445
Annual administrative charges 29 55 59
Minimum death benefit guarantee charges 1 1 1
Contingent deferred sales charges 52 59 50
Other contract charges 1 3 4
Amortization of deferred charges related to:
Deferred sales load 135 112 579
Premium taxes 1 1 8
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,070 1,345 2,146
Fees waived by Golden American Life
Insurance Company 4 2 9
______________________________
NET EXPENSES 1,066 1,343 2,137
______________________________
NET INVESTMENT INCOME (LOSS) 3,586 (1,343) 3,296
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 1,365 2,148 7,634
Net unrealized appreciation
(depreciation) of investments (6,078) 15,952 16,611
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($1,127) $16,757 $27,541
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap Growth &
Growth Income Research
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $4,999 $4,745 $12,283
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 4,999 4,745 12,283
Expenses:
Mortality and expense risk and other charges 880 1,599 1,941
Annual administrative charges 51 88 120
Minimum death benefit guarantee charges 1 -- --
Contingent deferred sales charges 20 62 71
Other contract charges 2 1 4
Amortization of deferred charges related to:
Deferred sales load 55 92 79
Premium taxes -- 2 1
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,009 1,844 2,216
Fees waived by Golden American Life
Insurance Company 1 3 1
______________________________
NET EXPENSES 1,008 1,841 2,215
______________________________
NET INVESTMENT INCOME (LOSS) 3,991 2,904 10,068
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 899 911 972
Net unrealized appreciation
(depreciation) of investments 6,574 7,679 16,878
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $11,464 $11,494 $27,918
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Total Value + Fixed
Return Growth Income
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $11,048 $5,950 $237
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 11,048 5,950 237
Expenses:
Mortality and expense risk and other charges 1,714 1,099 57
Annual administrative charges 98 62 4
Minimum death benefit guarantee charges -- 1 --
Contingent deferred sales charges 62 42 2
Other contract charges 1 1 --
Amortization of deferred charges related to:
Deferred sales load 75 49 --
Premium taxes 1 1 --
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,951 1,255 63
Fees waived by Golden American Life
Insurance Company 2 2 --
______________________________
NET EXPENSES 1,949 1,253 63
______________________________
NET INVESTMENT INCOME (LOSS) 9,099 4,697 174
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 185 (807) 216
Net unrealized appreciation
(depreciation) of investments 1,028 15,417 --
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $10,312 $19,307 $390
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
Growth High
Developing Oppor- Yield
World tunities Bond
Division Division Division
(a) (a) (c)
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $2 $25 $1,050
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 2 25 1,050
Expenses:
Mortality and expense risk and other charges 22 31 197
Annual administrative charges 2 1 17
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges -- 1 15
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load -- -- 4
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 24 33 233
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 24 33 233
______________________________
NET INVESTMENT INCOME (LOSS) (22) (8) 817
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (266) (235) (318)
Net unrealized appreciation
(depreciation) of investments 149 349 (18)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($139) $106 $481
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS Smith
Growth Barney
and Appre- High
Income ciation Income
Division Division Division
(b)
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,005 $8 $37
Capital gains distributions -- 33 8
______________________________
TOTAL INVESTMENT INCOME 1,005 41 45
Expenses:
Mortality and expense risk and other charges 162 10 8
Annual administrative charges 18 1 1
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges 9 -- --
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load 2 -- --
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 191 11 9
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 191 11 9
______________________________
NET INVESTMENT INCOME (LOSS) 814 30 36
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (97) 3 8
Net unrealized appreciation
(depreciation) of investments 4,255 52 (66)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $4,972 $85 ($22)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Smith Barney Smith
Barney Inter- Barney
Large Cap national Money
Value Equity Market
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $6 -- $20
Capital gains distributions 16 -- --
______________________________
TOTAL INVESTMENT INCOME 22 -- 20
Expenses:
Mortality and expense risk and other charges 7 $3 6
Annual administrative charges 1 -- --
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges -- -- --
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load -- -- --
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 8 3 6
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 8 3 6
______________________________
NET INVESTMENT INCOME (LOSS) 14 (3) 14
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2 (1) --
Net unrealized appreciation
(depreciation) of investments 3 (2) --
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $19 ($6) $14
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division Combined
____________________
<S> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $251 $88,435
Capital gains distributions -- 78,933
____________________
TOTAL INVESTMENT INCOME 251 167,368
Expenses:
Mortality and expense risk and other charges 398 30,912
Annual administrative charges 20 1,451
Minimum death benefit guarantee charges -- 37
Contingent deferred sales charges 12 1,414
Other contract charges -- 73
Amortization of deferred charges related to:
Deferred sales load -- 8,150
Premium taxes -- 129
____________________
TOTAL EXPENSES BEFORE WAIVER 430 42,166
Fees waived by Golden American Life
Insurance Company -- 154
____________________
NET EXPENSES 430 42,012
____________________
NET INVESTMENT INCOME (LOSS) (179) 125,356
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (556) 22,265
Net unrealized appreciation
(depreciation) of investments 1,647 39,447
____________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $912 $187,068
====================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $37,476
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 970
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 970
Changes from principal transactions:
Purchase payments 29,455
Contract distributions and terminations (18,096)
Transfer payments from (to) Fixed Accounts and other Divisions 7,253
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 196
____________
Increase (decrease) in net assets derived from principal
transactions 18,808
____________
Total increase (decrease) 19,778
____________
NET ASSETS AT DECEMBER 31, 1997 57,254
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,131
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 3,131
Changes from principal transactions:
Purchase payments 227,924
Contract distributions and terminations (38,803)
Transfer payments from (to) Fixed Accounts and other Divisions (73,759)
Addition to assets retained in the Account
by Golden American Life Insurance Company 12
____________
Increase (decrease) in net assets derived from principal
transactions 115,374
____________
Total increase (decrease) 118,505
____________
NET ASSETS AT DECEMBER 31, 1998 $175,759
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $54,334
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 2,703
Net realized gain (loss) on investments 139
Net unrealized appreciation (depreciation) of investments (690)
____________
Net increase (decrease) in net assets resulting from operations 2,152
Changes from principal transactions:
Purchase payments 5,847
Contract distributions and terminations (8,648)
Transfer payments from (to) Fixed Accounts and other Divisions (1,150)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (68)
____________
Increase (decrease) in net assets derived from principal
transactions (4,019)
____________
Total increase (decrease) (1,867)
____________
NET ASSETS AT DECEMBER 31, 1997 52,467
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,782
Net realized gain (loss) on investments 872
Net unrealized appreciation (depreciation) of investments 739
____________
Net increase (decrease) in net assets resulting from operations 3,393
Changes from principal transactions:
Purchase payments 42,180
Contract distributions and terminations (9,265)
Transfer payments from (to) Fixed Accounts and other Divisions 14,051
Addition to assets retained in the Account
by Golden American Life Insurance Company 6
____________
Increase (decrease) in net assets derived from principal
transactions 46,972
____________
Total increase (decrease) 50,365
____________
NET ASSETS AT DECEMBER 31, 1998 $102,832
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $43,301
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 8,570
Net realized gain (loss) on investments 3,106
Net unrealized appreciation (depreciation) of investments (9,738)
____________
Net increase (decrease) in net assets resulting from operations 1,938
Changes from principal transactions:
Purchase payments 6,936
Contract distributions and terminations (5,699)
Transfer payments from (to) Fixed Accounts and other Divisions (886)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (87)
____________
Increase (decrease) in net assets derived from principal
transactions 264
____________
Total increase (decrease) 2,202
____________
NET ASSETS AT DECEMBER 31, 1997 45,503
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,033
Net realized gain (loss) on investments (6,941)
Net unrealized appreciation (depreciation) of investments (8,620)
____________
Net increase (decrease) in net assets resulting from operations (13,528)
Changes from principal transactions:
Purchase payments 7,508
Contract distributions and terminations (4,524)
Transfer payments from (to) Fixed Accounts and other Divisions (5,266)
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions (2,272)
____________
Total increase (decrease) (15,800)
____________
NET ASSETS AT DECEMBER 31, 1998 $29,703
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $76,842
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 490
Net realized gain (loss) on investments 556
Net unrealized appreciation (depreciation) of investments 1,550
____________
Net increase (decrease) in net assets resulting from operations 2,596
Changes from principal transactions:
Purchase payments 7,441
Contract distributions and terminations (10,832)
Transfer payments from (to) Fixed Accounts and other Divisions (4,053)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (256)
____________
Increase (decrease) in net assets derived from principal
transactions (7,700)
____________
Total increase (decrease) (5,104)
____________
NET ASSETS AT DECEMBER 31, 1997 71,738
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($905)
Net realized gain (loss) on investments 330
Net unrealized appreciation (depreciation) of investments 6,240
____________
Net increase (decrease) in net assets resulting from operations 5,665
Changes from principal transactions:
Purchase payments 15,762
Contract distributions and terminations (9,206)
Transfer payments from (to) Fixed Accounts and other Divisions (2,159)
Addition to assets retained in the Account
by Golden American Life Insurance Company 7
____________
Increase (decrease) in net assets derived from principal
transactions 4,404
____________
Total increase (decrease) 10,069
____________
NET ASSETS AT DECEMBER 31, 1998 $81,807
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $50,681
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 3,901
Net realized gain (loss) on investments 2,621
Net unrealized appreciation (depreciation) of investments 5,391
____________
Net increase (decrease) in net assets resulting from operations 11,913
Changes from principal transactions:
Purchase payments 14,095
Contract distributions and terminations (5,798)
Transfer payments from (to) Fixed Accounts and other Divisions 3,766
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 43
____________
Increase (decrease) in net assets derived from principal
transactions 12,106
____________
Total increase (decrease) 24,019
____________
NET ASSETS AT DECEMBER 31, 1997 74,700
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $8,244
Net realized gain (loss) on investments 3,708
Net unrealized appreciation (depreciation) of investments (24,689)
____________
Net increase (decrease) in net assets resulting from operations (12,737)
Changes from principal transactions:
Purchase payments 24,639
Contract distributions and terminations (6,988)
Transfer payments from (to) Fixed Accounts and other Divisions (10,631)
Addition to assets retained in the Account
by Golden American Life Insurance Company 12
____________
Increase (decrease) in net assets derived from principal
transactions 7,032
____________
Total increase (decrease) (5,705)
____________
NET ASSETS AT DECEMBER 31, 1998 $68,995
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $134,431
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 9,632
Net realized gain (loss) on investments 2,407
Net unrealized appreciation (depreciation) of investments 5,898
____________
Net increase (decrease) in net assets resulting from operations 17,937
Changes from principal transactions:
Purchase payments 19,633
Contract distributions and terminations (17,687)
Transfer payments from (to) Fixed Accounts and other Divisions 4,389
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (53)
____________
Increase (decrease) in net assets derived from principal
transactions 6,282
____________
Total increase (decrease) 24,219
____________
NET ASSETS AT DECEMBER 31, 1997 158,650
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $15,626
Net realized gain (loss) on investments 1,704
Net unrealized appreciation (depreciation) of investments (10,501)
____________
Net increase (decrease) in net assets resulting from operations 6,829
Changes from principal transactions:
Purchase payments 74,467
Contract distributions and terminations (19,367)
Transfer payments from (to) Fixed Accounts and other Divisions 5,756
Addition to assets retained in the Account
by Golden American Life Insurance Company 31
____________
Increase (decrease) in net assets derived from principal
transactions 60,887
____________
Total increase (decrease) 67,716
____________
NET ASSETS AT DECEMBER 31, 1998 $226,366
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $270,427
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 21,419
Net realized gain (loss) on investments 5,773
Net unrealized appreciation (depreciation) of investments 9,866
____________
Net increase (decrease) in net assets resulting from operations 37,058
Changes from principal transactions:
Purchase payments 9,404
Contract distributions and terminations (45,162)
Transfer payments from (to) Fixed Accounts and other Divisions (9,649)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (209)
____________
Increase (decrease) in net assets derived from principal
transactions (45,616)
____________
Total increase (decrease) (8,558)
____________
NET ASSETS AT DECEMBER 31, 1997 261,869
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $23,815
Net realized gain (loss) on investments 2,288
Net unrealized appreciation (depreciation) of investments (10,125)
____________
Net increase (decrease) in net assets resulting from operations 15,978
Changes from principal transactions:
Purchase payments 34,793
Contract distributions and terminations (39,339)
Transfer payments from (to) Fixed Accounts and other Divisions 581
Addition to assets retained in the Account
by Golden American Life Insurance Company 28
____________
Increase (decrease) in net assets derived from principal
transactions (3,937)
____________
Total increase (decrease) 12,041
____________
NET ASSETS AT DECEMBER 31, 1998 $273,910
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $145,989
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 13,819
Net realized gain (loss) on investments 8,242
Net unrealized appreciation (depreciation) of investments 16,323
____________
Net increase (decrease) in net assets resulting from operations 38,384
Changes from principal transactions:
Purchase payments 17,440
Contract distributions and terminations (20,143)
Transfer payments from (to) Fixed Accounts and other Divisions 5,915
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 232
____________
Increase (decrease) in net assets derived from principal
transactions 3,444
____________
Total increase (decrease) 41,828
____________
NET ASSETS AT DECEMBER 31, 1997 187,817
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $18,956
Net realized gain (loss) on investments 6,551
Net unrealized appreciation (depreciation) of investments (3,987)
____________
Net increase (decrease) in net assets resulting from operations 21,520
Changes from principal transactions:
Purchase payments 63,892
Contract distributions and terminations (26,711)
Transfer payments from (to) Fixed Accounts and other Divisions 10,035
Addition to assets retained in the Account
by Golden American Life Insurance Company 25
____________
Increase (decrease) in net assets derived from principal
transactions 47,241
____________
Total increase (decrease) 68,761
____________
NET ASSETS AT DECEMBER 31, 1998 $256,578
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $123,573
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 1,726
Net realized gain (loss) on investments 3,602
Net unrealized appreciation (depreciation) of investments 33,738
____________
Net increase (decrease) in net assets resulting from operations 39,066
Changes from principal transactions:
Purchase payments 45,995
Contract distributions and terminations (18,620)
Transfer payments from (to) Fixed Accounts and other Divisions 25,458
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 471
____________
Increase (decrease) in net assets derived from principal
transactions 53,304
____________
Total increase (decrease) 92,370
____________
NET ASSETS AT DECEMBER 31, 1997 215,943
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $12,920
Net realized gain (loss) on investments 3,842
Net unrealized appreciation (depreciation) of investments 17,344
____________
Net increase (decrease) in net assets resulting from operations 34,106
Changes from principal transactions:
Purchase payments 216,682
Contract distributions and terminations (26,449)
Transfer payments from (to) Fixed Accounts and other Divisions 60,274
Addition to assets retained in the Account
by Golden American Life Insurance Company 60
____________
Increase (decrease) in net assets derived from principal
transactions 250,567
____________
Total increase (decrease) 284,673
____________
NET ASSETS AT DECEMBER 31, 1998 $500,616
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging
Markets
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $37,153
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) (826)
Net realized gain (loss) on investments (1,134)
Net unrealized appreciation (depreciation) of investments (2,698)
____________
Net increase (decrease) in net assets resulting from operations (4,658)
Changes from principal transactions:
Purchase payments 5,427
Contract distributions and terminations (5,304)
Transfer payments from (to) Fixed Accounts and other Divisions 2,002
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (119)
____________
Increase (decrease) in net assets derived from principal
transactions 2,006
____________
Total increase (decrease) (2,652)
____________
NET ASSETS AT DECEMBER 31, 1997 34,501
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging
Markets
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($524)
Net realized gain (loss) on investments (3,524)
Net unrealized appreciation (depreciation) of investments (4,266)
____________
Net increase (decrease) in net assets resulting from operations (8,314)
Changes from principal transactions:
Purchase payments 2,520
Contract distributions and terminations (2,973)
Transfer payments from (to) Fixed Accounts and other Divisions (3,483)
Addition to assets retained in the Account
by Golden American Life Insurance Company 3
____________
Increase (decrease) in net assets derived from principal
transactions (3,933)
____________
Total increase (decrease) (12,247)
____________
NET ASSETS AT DECEMBER 31, 1998 $22,254
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Market
Manager
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $5,479
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 424
Net realized gain (loss) on investments 238
Net unrealized appreciation (depreciation) of investments 1,127
____________
Net increase (decrease) in net assets resulting from operations 1,789
Changes from principal transactions:
Purchase payments (59)
Contract distributions and terminations (189)
Transfer payments from (to) Fixed Accounts and other Divisions (303)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (1)
____________
Increase (decrease) in net assets derived from principal
transactions (552)
____________
Total increase (decrease) 1,237
____________
NET ASSETS AT DECEMBER 31, 1997 6,716
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Market
Manager
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $299
Net realized gain (loss) on investments 135
Net unrealized appreciation (depreciation) of investments 1,090
____________
Net increase (decrease) in net assets resulting from operations 1,524
Changes from principal transactions:
Purchase payments (36)
Contract distributions and terminations (188)
Transfer payments from (to) Fixed Accounts and other Divisions (309)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions (533)
____________
Total increase (decrease) 991
____________
NET ASSETS AT DECEMBER 31, 1998 $7,707
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $42,861
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 5,696
Net realized gain (loss) on investments 898
Net unrealized appreciation (depreciation) of investments 5,129
____________
Net increase (decrease) in net assets resulting from operations 11,723
Changes from principal transactions:
Purchase payments 16,881
Contract distributions and terminations (5,181)
Transfer payments from (to) Fixed Accounts and other Divisions 10,573
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 168
____________
Increase (decrease) in net assets derived from principal
transactions 22,441
____________
Total increase (decrease) 34,164
____________
NET ASSETS AT DECEMBER 31, 1997 77,025
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,994
Net realized gain (loss) on investments 1,237
Net unrealized appreciation (depreciation) of investments (4,208)
____________
Net increase (decrease) in net assets resulting from operations (977)
Changes from principal transactions:
Purchase payments 51,484
Contract distributions and terminations (7,869)
Transfer payments from (to) Fixed Accounts and other Divisions 6,521
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions 50,146
____________
Total increase (decrease) 49,169
____________
NET ASSETS AT DECEMBER 31, 1998 $126,194
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $29,858
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 1,752
Net realized gain (loss) on investments 1,180
Net unrealized appreciation (depreciation) of investments 4,847
____________
Net increase (decrease) in net assets resulting from operations 7,779
Changes from principal transactions:
Purchase payments 9,853
Contract distributions and terminations (4,107)
Transfer payments from (to) Fixed Accounts and other Divisions 6,920
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 134
____________
Increase (decrease) in net assets derived from principal
transactions 12,800
____________
Total increase (decrease) 20,579
____________
NET ASSETS AT DECEMBER 31, 1997 50,437
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,586
Net realized gain (loss) on investments 1,365
Net unrealized appreciation (depreciation) of investments (6,078)
____________
Net increase (decrease) in net assets resulting from operations (1,127)
Changes from principal transactions:
Purchase payments 25,972
Contract distributions and terminations (5,201)
Transfer payments from (to) Fixed Accounts and other Divisions 1,265
Addition to assets retained in the Account
by Golden American Life Insurance Company 2
____________
Increase (decrease) in net assets derived from principal
transactions 22,038
____________
Total increase (decrease) 20,911
____________
NET ASSETS AT DECEMBER 31, 1998 $71,348
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $33,056
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) (754)
Net realized gain (loss) on investments (174)
Net unrealized appreciation (depreciation) of investments 4,543
____________
Net increase (decrease) in net assets resulting from operations 3,615
Changes from principal transactions:
Purchase payments 13,691
Contract distributions and terminations (3,143)
Transfer payments from (to) Fixed Accounts and other Divisions 5,487
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 19
____________
Increase (decrease) in net assets derived from principal
transactions 16,054
____________
Total increase (decrease) 19,669
____________
NET ASSETS AT DECEMBER 31, 1997 52,725
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1,343)
Net realized gain (loss) on investments 2,148
Net unrealized appreciation (depreciation) of investments 15,952
____________
Net increase (decrease) in net assets resulting from operations 16,757
Changes from principal transactions:
Purchase payments 44,851
Contract distributions and terminations (6,104)
Transfer payments from (to) Fixed Accounts and other Divisions 16,010
Addition to assets retained in the Account
by Golden American Life Insurance Company 6
____________
Increase (decrease) in net assets derived from principal
transactions 54,763
____________
Total increase (decrease) 71,520
____________
NET ASSETS AT DECEMBER 31, 1998 $124,245
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Managed
Global
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $86,266
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 6,640
Net realized gain (loss) on investments 2,841
Net unrealized appreciation (depreciation) of investments (883)
____________
Net increase (decrease) in net assets resulting from operations 8,598
Changes from principal transactions:
Purchase payments 17,472
Contract distributions and terminations (12,081)
Transfer payments from (to) Fixed Accounts and other Divisions 4,438
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (12)
____________
Increase (decrease) in net assets derived from principal
transactions 9,817
____________
Total increase (decrease) 18,415
____________
NET ASSETS AT DECEMBER 31, 1997 104,681
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Managed
Global
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,296
Net realized gain (loss) on investments 7,634
Net unrealized appreciation (depreciation) of investments 16,611
____________
Net increase (decrease) in net assets resulting from operations 27,541
Changes from principal transactions:
Purchase payments 11,958
Contract distributions and terminations (13,329)
Transfer payments from (to) Fixed Accounts and other Divisions (176)
Addition to assets retained in the Account
by Golden American Life Insurance Company 9
____________
Increase (decrease) in net assets derived from principal
transactions (1,538)
____________
Total increase (decrease) 26,003
____________
NET ASSETS AT DECEMBER 31, 1998 $130,684
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $4,571
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 612
Net realized gain (loss) on investments 57
Net unrealized appreciation (depreciation) of investments 912
____________
Net increase (decrease) in net assets resulting from operations 1,581
Changes from principal transactions:
Purchase payments 8,980
Contract distributions and terminations (580)
Transfer payments from (to) Fixed Accounts and other Divisions 5,763
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 46
____________
Increase (decrease) in net assets derived from principal
transactions 14,209
____________
Total increase (decrease) 15,790
____________
NET ASSETS AT DECEMBER 31, 1997 20,361
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,991
Net realized gain (loss) on investments 899
Net unrealized appreciation (depreciation) of investments 6,574
____________
Net increase (decrease) in net assets resulting from operations 11,464
Changes from principal transactions:
Purchase payments 66,121
Contract distributions and terminations (3,065)
Transfer payments from (to) Fixed Accounts and other Divisions 21,962
Addition to assets retained in the Account
by Golden American Life Insurance Company 1
____________
Increase (decrease) in net assets derived from principal
transactions 85,019
____________
Total increase (decrease) 96,483
____________
NET ASSETS AT DECEMBER 31, 1998 $116,844
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,275
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 3,057
Net realized gain (loss) on investments 177
Net unrealized appreciation (depreciation) of investments 980
____________
Net increase (decrease) in net assets resulting from operations 4,214
Changes from principal transactions:
Purchase payments 22,706
Contract distributions and terminations (1,861)
Transfer payments from (to) Fixed Accounts and other Divisions 11,481
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 107
____________
Increase (decrease) in net assets derived from principal
transactions 32,433
____________
Total increase (decrease) 36,647
____________
NET ASSETS AT DECEMBER 31, 1997 44,922
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,904
Net realized gain (loss) on investments 911
Net unrealized appreciation (depreciation) of investments 7,679
____________
Net increase (decrease) in net assets resulting from operations 11,494
Changes from principal transactions:
Purchase payments 105,760
Contract distributions and terminations (7,503)
Transfer payments from (to) Fixed Accounts and other Divisions 24,270
Addition to assets retained in the Account
by Golden American Life Insurance Company 7
____________
Increase (decrease) in net assets derived from principal
transactions 122,534
____________
Total increase (decrease) 134,028
____________
NET ASSETS AT DECEMBER 31, 1998 $178,950
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Division
(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $801
Net realized gain (loss) on investments 19
Net unrealized appreciation (depreciation) of investments 388
____________
Net increase (decrease) in net assets resulting from operations 1,208
Changes from principal transactions:
Purchase payments 19,514
Contract distributions and terminations (534)
Transfer payments from (to) Fixed Accounts and other Divisions 14,044
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 170
____________
Increase (decrease) in net assets derived from principal
transactions 33,194
____________
Total increase (decrease) 34,402
____________
NET ASSETS AT DECEMBER 31, 1997 34,402
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Division
(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $10,068
Net realized gain (loss) on investments 972
Net unrealized appreciation (depreciation) of investments 16,878
____________
Net increase (decrease) in net assets resulting from operations 27,918
Changes from principal transactions:
Purchase payments 167,295
Contract distributions and terminations (6,740)
Transfer payments from (to) Fixed Accounts and other Divisions 60,643
Addition to assets retained in the Account
by Golden American Life Insurance Company 11
____________
Increase (decrease) in net assets derived from principal
transactions 221,209
____________
Total increase (decrease) 249,127
____________
NET ASSETS AT DECEMBER 31, 1998 $283,529
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Division
(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $687
Net realized gain (loss) on investments 18
Net unrealized appreciation (depreciation) of investments 412
____________
Net increase (decrease) in net assets resulting from operations 1,117
Changes from principal transactions:
Purchase payments 15,427
Contract distributions and terminations (602)
Transfer payments from (to) Fixed Accounts and other Divisions 10,193
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 96
____________
Increase (decrease) in net assets derived from principal
transactions 25,114
____________
Total increase (decrease) 26,231
____________
NET ASSETS AT DECEMBER 31, 1997 26,231
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Division
(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $9,099
Net realized gain (loss) on investments 185
Net unrealized appreciation (depreciation) of investments 1,028
____________
Net increase (decrease) in net assets resulting from operations 10,312
Changes from principal transactions:
Purchase payments 156,492
Contract distributions and terminations (7,889)
Transfer payments from (to) Fixed Accounts and other Divisions 42,666
Addition to assets retained in the Account
by Golden American Life Insurance Company 23
____________
Increase (decrease) in net assets derived from principal
transactions 191,292
____________
Total increase (decrease) 201,604
____________
NET ASSETS AT DECEMBER 31, 1998 $227,835
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Division
(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($137)
Net realized gain (loss) on investments 515
Net unrealized appreciation (depreciation) of investments (1,430)
____________
Net increase (decrease) in net assets resulting from operations (1,052)
Changes from principal transactions:
Purchase payments 15,158
Contract distributions and terminations (431)
Transfer payments from (to) Fixed Accounts and other Divisions 9,404
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 99
____________
Increase (decrease) in net assets derived from principal
transactions 24,230
____________
Total increase (decrease) 23,178
____________
NET ASSETS AT DECEMBER 31, 1997 23,178
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Division
(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $4,697
Net realized gain (loss) on investments (807)
Net unrealized appreciation (depreciation) of investments 15,417
____________
Net increase (decrease) in net assets resulting from operations 19,307
Changes from principal transactions:
Purchase payments 77,977
Contract distributions and terminations (3,834)
Transfer payments from (to) Fixed Accounts and other Divisions 26,430
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions 100,583
____________
Total increase (decrease) 119,890
____________
NET ASSETS AT DECEMBER 31, 1998 $143,068
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Division
(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $9
Net realized gain (loss) on investments (1)
Net unrealized appreciation (depreciation) of investments (10)
____________
Net increase (decrease) in net assets resulting from operations (2)
Changes from principal transactions:
Purchase payments 190
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 18
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 208
____________
Total increase (decrease) 206
____________
NET ASSETS AT DECEMBER 31, 1997 206
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Division
(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $174
Net realized gain (loss) on investments 216
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 390
Changes from principal transactions:
Purchase payments 5,820
Contract distributions and terminations (219)
Transfer payments from (to) Fixed Accounts and other Divisions 3,331
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 8,932
____________
Total increase (decrease) 9,322
____________
NET ASSETS AT DECEMBER 31, 1998 $9,528
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Develop-
ing
World
Division
(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Develop-
ing
World
Division
(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($22)
Net realized gain (loss) on investments (266)
Net unrealized appreciation (depreciation) of investments 149
____________
Net increase (decrease) in net assets resulting from operations (139)
Changes from principal transactions:
Purchase payments 2,757
Contract distributions and terminations (34)
Transfer payments from (to) Fixed Accounts and other Divisions 1,928
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 4,651
____________
Total increase (decrease) 4,512
____________
NET ASSETS AT DECEMBER 31, 1998 $4,512
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Oppor-
tunities
Division
(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Oppor-
tunities
Division
(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($8)
Net realized gain (loss) on investments (235)
Net unrealized appreciation (depreciation) of investments 349
____________
Net increase (decrease) in net assets resulting from operations 106
Changes from principal transactions:
Purchase payments 4,097
Contract distributions and terminations (45)
Transfer payments from (to) Fixed Accounts and other Divisions (27)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 4,025
____________
Total increase (decrease) 4,131
____________
NET ASSETS AT DECEMBER 31, 1998 $4,131
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield
Bond
Division
(j)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield
Bond
Division
(j)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $817
Net realized gain (loss) on investments (318)
Net unrealized appreciation (depreciation) of investments (18)
____________
Net increase (decrease) in net assets resulting from operations 481
Changes from principal transactions:
Purchase payments 32,399
Contract distributions and terminations (912)
Transfer payments from (to) Fixed Accounts and other Divisions 14,150
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 45,637
____________
Total increase (decrease) 46,118
____________
NET ASSETS AT DECEMBER 31, 1998 $46,118
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth
and
Income
Division
(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth
and
Income
Division
(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $814
Net realized gain (loss) on investments (97)
Net unrealized appreciation (depreciation) of investments 4,255
____________
Net increase (decrease) in net assets resulting from operations 4,972
Changes from principal transactions:
Purchase payments 29,368
Contract distributions and terminations (361)
Transfer payments from (to) Fixed Accounts and other Divisions 17,822
Addition to assets retained in the Account
by Golden American Life Insurance Company 1
____________
Increase (decrease) in net assets derived from principal
transactions 46,830
____________
Total increase (decrease) 51,802
____________
NET ASSETS AT DECEMBER 31, 1998 $51,802
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appre-
ciation
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $15
Net realized gain (loss) on investments 1
Net unrealized appreciation (depreciation) of investments (9)
____________
Net increase (decrease) in net assets resulting from operations 7
Changes from principal transactions:
Purchase payments 256
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 256
____________
Total increase (decrease) 263
____________
NET ASSETS AT DECEMBER 31, 1997 263
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appre-
ciation
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $30
Net realized gain (loss) on investments 3
Net unrealized appreciation (depreciation) of investments 52
____________
Net increase (decrease) in net assets resulting from operations 85
Changes from principal transactions:
Purchase payments 595
Contract distributions and terminations (21)
Transfer payments from (to) Fixed Accounts and other Divisions 52
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 626
____________
Total increase (decrease) 711
____________
NET ASSETS AT DECEMBER 31, 1998 $974
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
High
Income
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1)
Net realized gain (loss) on investments 1
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 3
Changes from principal transactions:
Purchase payments 206
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 206
____________
Total increase (decrease) 209
____________
NET ASSETS AT DECEMBER 31, 1997 209
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
High
Income
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $36
Net realized gain (loss) on investments 8
Net unrealized appreciation (depreciation) of investments (66)
____________
Net increase (decrease) in net assets resulting from operations (22)
Changes from principal transactions:
Purchase payments 530
Contract distributions and terminations (15)
Transfer payments from (to) Fixed Accounts and other Divisions 104
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 619
____________
Total increase (decrease) 597
____________
NET ASSETS AT DECEMBER 31, 1998 $806
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Large Cap
Value
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1)
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments 7
____________
Net increase (decrease) in net assets resulting from operations 6
Changes from principal transactions:
Purchase payments 204
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 5
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 209
____________
Total increase (decrease) 215
____________
NET ASSETS AT DECEMBER 31, 1997 215
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Large Cap
Value
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $14
Net realized gain (loss) on investments 2
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 19
Changes from principal transactions:
Purchase payments 429
Contract distributions and terminations (5)
Transfer payments from (to) Fixed Accounts and other Divisions 43
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 467
____________
Total increase (decrease) 486
____________
NET ASSETS AT DECEMBER 31, 1998 $701
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Inter-
national
Equity
Division
(d)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments ($5)
____________
Net increase (decrease) in net assets resulting from operations (5)
Changes from principal transactions:
Purchase payments 99
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 2
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 101
____________
Total increase (decrease) 96
____________
NET ASSETS AT DECEMBER 31, 1997 96
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Inter-
national
Equity
Division
(d)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($3)
Net realized gain (loss) on investments (1)
Net unrealized appreciation (depreciation) of investments (2)
____________
Net increase (decrease) in net assets resulting from operations (6)
Changes from principal transactions:
Purchase payments 178
Contract distributions and terminations (4)
Transfer payments from (to) Fixed Accounts and other Divisions 62
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 236
____________
Total increase (decrease) 230
____________
NET ASSETS AT DECEMBER 31, 1998 $326
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Money
Market
Division
(e)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments $183
Contract distributions and terminations (1)
Transfer payments from (to) Fixed Accounts and other Divisions (1)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 181
____________
Total increase (decrease) 181
____________
NET ASSETS AT DECEMBER 31, 1997 181
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Money
Market
Division
(e)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $14
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 14
Changes from principal transactions:
Purchase payments 565
Contract distributions and terminations (25)
Transfer payments from (to) Fixed Accounts and other Divisions (417)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 123
____________
Total increase (decrease) 137
____________
NET ASSETS AT DECEMBER 31, 1998 $318
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division
(f)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $81
Net realized gain (loss) on investments (12)
Net unrealized appreciation (depreciation) of investments (93)
____________
Net increase (decrease) in net assets resulting from operations (24)
Changes from principal transactions:
Purchase payments 1,825
Contract distributions and terminations (2)
Transfer payments from (to) Fixed Accounts and other Divisions 182
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 2,005
____________
Total increase (decrease) 1,981
____________
NET ASSETS AT DECEMBER 31, 1997 1,981
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division
(f)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($179)
Net realized gain (loss) on investments (556)
Net unrealized appreciation (depreciation) of investments 1,647
____________
Net increase (decrease) in net assets resulting from operations 912
Changes from principal transactions:
Purchase payments 41,775
Contract distributions and terminations (940)
Transfer payments from (to) Fixed Accounts and other Divisions 6,037
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 46,872
____________
Total increase (decrease) 47,784
____________
NET ASSETS AT DECEMBER 31, 1998 $49,765
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $1,184,573
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 81,285
Net realized gain (loss) on investments 31,070
Net unrealized appreciation (depreciation) of investments 75,558
____________
Net increase (decrease) in net assets resulting from operations 187,913
Changes from principal transactions:
Purchase payments 304,259
Contract distributions and terminations (184,701)
Transfer payments from (to) Fixed Accounts and other Divisions 111,251
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 976
____________
Increase (decrease) in net assets derived from principal
transactions 231,785
____________
Total increase (decrease) 419,698
____________
NET ASSETS AT DECEMBER 31, 1997 1,604,271
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $125,356
Net realized gain (loss) on investments 22,265
Net unrealized appreciation (depreciation) of investments 39,447
____________
Net increase (decrease) in net assets resulting from operations 187,068
Changes from principal transactions:
Purchase payments 1,536,754
Contract distributions and terminations (247,928)
Transfer payments from (to) Fixed Accounts and other Divisions 237,766
Addition to assets retained in the Account
by Golden American Life Insurance Company 274
____________
Increase (decrease) in net assets derived from principal
transactions 1,526,866
____________
Total increase (decrease) 1,713,934
____________
NET ASSETS AT DECEMBER 31, 1998 $3,318,205
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 1 - ORGANIZATION
Golden American Life Insurance Company Separate Account B (the "Account") was
established by Golden American Life Insurance Company ("Golden American") to
support the operations of variable annuity contracts ("Contracts"). Golden
American is primarily engaged in the issuance of variable insurance products
and is licensed as a life insurance company in the District of Columbia and
all states except New York. The Account is registered as a unit investment
trust with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended. Golden American provides for variable
accumulation and benefits under the Contracts by crediting annuity
considerations to one or more divisions within the Account or the Golden
American Guaranteed Interest Division, the Golden American Fixed Interest
Division and the Fixed Separate Account, which are not part of the Account,
as directed by the Contractowners. The portion of the Account's assets
applicable to Contracts will not be chargeable with liabilities arising out
of any other business Golden American may conduct, but obligations of the
Account, including the promise to make benefit payments, are obligations of
Golden American. The assets and liabilities of the Account are clearly
identified and distinguished from the other assets and liabilities of Golden
American.
During 1998, the Account had GoldenSelect Contracts and Granite PrimElite
Contracts. GoldenSelect Contracts sold by Golden American during 1998
include DVA 100, DVA Series 100, DVA PLUS, ACCESS, PREMIUM PLUS and ESII.
During 1998, the Account had GoldenSelect Contracts (DVA 80) which were no
longer being sold.
At December 31, 1998, the Account had, under GoldenSelect Contracts, twenty-
six investment divisions: Liquid Asset, Limited Maturity Bond, Hard Assets,
All-Growth, Real Estate, Fully Managed, Multiple Allocation, Capital
Appreciation, Rising Dividends, Emerging Markets, Market Manager, Value
Equity, Strategic Equity, Small Cap, Managed Global, Mid-Cap Growth (formerly
OTC), Growth & Income, Research, Total Return, Value + Growth, Global Fixed
Income, Developing World, Growth Opportunities, PIMCO High Yield Bond, PIMCO
StocksPLUS Growth and Income and International Equity Divisions
("Divisions"). The Account also had, under Granite PrimElite Contracts,
eight investment divisions: Mid-Cap Growth (formerly OTC), Research, Total
Return, Appreciation, Smith Barney High Income, Smith Barney Large Cap Value
(formerly Smith Barney Income and Growth), Smith Barney International Equity
and Smith Barney Money Market Divisions (collectively with the divisions
noted above, "Divisions"). The assets in each Division are invested in shares
of a designated series ("Series," which may also be referred to as
"Portfolio") of mutual funds, The GCG Trust, the Travelers Series Fund Inc.,
the Greenwich Street Series Fund Inc. (formerly the Smith Barney Series Fund
Inc.), the Warburg Pincus Trust or the PIMCO Variable Insurance Trust (the
"Trusts"). The Account also includes The Fund For Life Division, which is not
included in the accompanying financial statements, and which ceased to accept
new Contracts effective December 31, 1994.
Prior to August 14, 1998, the Account also had certain investment divisions
available from the Equi-Select Series Trust. In an effort to consolidate
operations, Golden American requested permission from the Securities and
Exchange Commission ("SEC") to substitute shares of each Portfolio of the
Equi-Select Series Trust with shares of a similar Series of The GCG Trust.
On August 14, 1998, after approval from the SEC, shares of each Portfolio of
the Equi-Select Series Trust were substituted with shares of a similar Series
of The GCG Trust. The consolidation resulted in the following Series being
substituted from The GCG Trust:
<TABLE>
<CAPTION>
Equi-Select Series Trust The GCG Trust
Investment Division Investment Division
___________________________ ___________________________
<S> <S>
International Fixed Income Global Fixed Income
OTC Mid-Cap Growth
Research Research
Total Return Total Return
Value + Growth Value + Growth
Growth & Income Growth & Income
</TABLE>
The Market Manager Division was open for investment for only a brief period
during 1994 and 1995. This Division is now closed and Contractowners are not
permitted to direct their investments into this Division.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the
Account:
USE OF ESTIMATES: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
INVESTMENTS: Investments are made in shares of a Series or Portfolio of the
Trusts and are valued at the net asset value per share of the respective
Series or Portfolio of the Trusts. Investment transactions in each Series or
Portfolio of the Trusts are recorded on the trade date. Distributions of net
investment income and capital gains from each Series or Portfolio of the
Trusts are recognized on the ex-distribution date. Realized gains and losses
on redemptions of the shares of the Series or Portfolio of the Trusts are
determined on the specific identification basis.
FEDERAL INCOME TAXES: Operations of the Account form a part of, and are
taxed with, the total operations of Golden American which is taxed as a life
insurance company under the Internal Revenue Code. Earnings and realized
capital gains of the Account attributable to the Contractowners are excluded
in the determination of the federal income tax liability of Golden American.
NOTE 3 - CHARGES AND FEES
The DVA PLUS, ACCESS and the PREMIUM PLUS each have three different death
benefit options referred to as Standard, Annual Ratchet and 7% Solution;
however, in the state of Washington, the 5.5% Solution is offered instead of
the 7% Solution. Granite PrimElite has two death benefit options referred to
as Standard and Annual Ratchet. Golden American discontinued external sales
of DVA 80 in May 1991. In December 1995, Golden American also discontinued
external sales of DVA 100, however, the DVA 100 contracts continue to be
available to Golden American employees and agents. Under the terms of the
Contracts, certain charges are allocated to the Contracts to cover Golden
American's expenses in connection with the issuance and administration of the
Contracts. Following is a summary of these charges:
MORTALITY AND EXPENSE RISK CHARGES: Golden American assumes mortality and
expense risks related to the operations of the Account and, in accordance
with the terms of the Contracts, deducts a daily charge from the assets of
the Account.
Daily charges deducted at annual rates to cover these risks are as
follows:
<TABLE>
<CAPTION>
Series Annual Rates
__________________________________ __________________
<S> <C>
DVA 80 0.80%
DVA 100 0.90
DVA Series 100 1.25
DVA PLUS - Standard 1.10
DVA PLUS - Annual Ratchet 1.25
DVA PLUS - 5.5% Solution 1.25
DVA PLUS - 7% Solution 1.40
ACCESS - Standard 1.25
ACCESS - Annual Ratchet 1.40
ACCESS - 5.5% Solution 1.40
ACCESS - 7% Solution 1.55
PREMIUM PLUS - Standard 1.25
PREMIUM PLUS - Annual Ratchet 1.40
PREMIUM PLUS - 5.5% Solution 1.40
PREMIUM PLUS - 7% Solution 1.55
ES II 1.25
Granite PrimElite - Standard 1.10
Granite PrimElite - Annual Ratchet 1.25
</TABLE>
ASSET BASED ADMINISTRATIVE CHARGES: A daily charge at an annual rate of .10%
is deducted from assets attributable to DVA 100 and DVA Series 100 Contracts.
A daily charge at an annual rate of .15% is deducted from the assets
attributable to the DVA PLUS, ACCESS, PREMIUM PLUS, ESII and Granite
PrimElite Contracts.
ADMINISTRATIVE CHARGES: An administrative charge is deducted from the
accumulation value of Deferred Annuity Contracts to cover ongoing
administrative expenses. The charge is $30 per Contract year for ES II
contracts. For all other Contracts the charge is $40. The charge is
incurred at the beginning of the Contract processing period and deducted at
the end of the Contract processing period. This charge has been waived for
certain offerings of the Contracts.
MINIMUM DEATH BENEFIT GUARANTEE CHARGES: For certain Contracts, a minimum
death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death
benefit per Contract year is deducted from the accumulation value of Deferred
Annuity Contracts on each Contract anniversary date.
CONTINGENT DEFERRED SALES CHARGES: Under DVA PLUS, PREMIUM PLUS, ES II and
Granite PrimElite Contracts, a contingent deferred sales charge ("Surrender
Charge") is imposed as a percentage of each premium payment if the Contract
is surrendered or an excess partial withdrawal is taken. The following table
reflects the surrender charge that is assessed, based upon the date a premium
payment is received.
<TABLE>
<CAPTION>
Complete Years Elapsed
Since Premium Payment Surrender Charge
_____________________ _______________________________________________________
PREMIUM Granite
DVA PLUS PLUS ES II PrimElite
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
0 7% 8% 8% 7%
1 7 8 7 7
2 6 8 6 6
3 5 8 5 5
4 4 7 4 4
5 3 6 3 3
6 1 5 2 1
7 -- 3 1 --
8 -- 1 -- --
9+ -- -- -- --
</TABLE>
OTHER CONTRACT CHARGES: Under DVA 80, DVA 100 and DVA Series 100 Contracts,
a charge is deducted from the accumulation value for Contracts taking more
than one conventional partial withdrawal during a Contract year. For DVA 80
and DVA 100 Contracts, annual distribution fees are deducted from the
Contract accumulation values.
DEFERRED SALES LOAD: Under Contracts offered prior to October 1995, a sales
load of up to 7.5% was assessed against each premium payment for sales-
related expenses as specified in the Contracts. For DVA Series 100, the
sales load is deducted in equal annual installments over the period the
Contract is in force, not to exceed 10 years. For DVA 80 and DVA 100
Contracts, although the sales load is chargeable to each premium when it is
received by Golden American, the amount of such charge is initially advanced
by Golden American to Contractowners and included in the accumulation value
and then deducted in equal installments on each Contract anniversary date
over a period of six years. Upon surrender of the Contract, the unamortized
deferred sales load is deducted from the accumulation value by Golden
American. In addition, when partial withdrawal limits are exceeded, a
portion of the unamortized deferred sales load is deducted.
PREMIUM TAXES: For certain Contracts, premium taxes are deducted, where
applicable, from the accumulation value of each Contract. The amount and
timing of the deduction depend on the annuitant's state of residence and
currently ranges up to 3.5% of premiums.
FEES WAIVED BY GOLDEN AMERICAN: Certain charges and fees for various types
of Contracts are currently waived by Golden American. Golden American
reserves the right to discontinue these waivers at its discretion or to
conform with changes in the law.
A summary of the net assets retained in the Account, representing the
unamortized deferred sales load and premium taxes advanced by Golden American
previously noted, follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
___________________________________
1998 1997
_______________ _________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Balance at beginning of year $17,009 $26,612
Sales load advanced 274 616
Premium tax advanced -- 7
Net transfer from Fixed Account
and other Divisions -- 353
Amortization of deferred sales load
and premium tax (8,280) (10,579)
_______________ _________________
Balance at end of year $9,003 $17,009
=============== =================
</TABLE>
NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were
as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1998
_________________________
PURCHASES SALES
_________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Liquid Asset Series $570,537 $452,115
Limited Maturity Bond Series 71,742 22,970
Hard Assets Series 17,730 17,975
All-Growth Series 16,647 13,146
Real Estate Series 29,007 13,733
Fully Managed Series 83,688 7,148
Multiple Allocation Series 52,037 32,159
Capital Appreciation Series 83,259 17,034
Rising Dividends Series 270,955 7,361
Emerging Markets Series 2,644 7,107
Market Manager Series 342 292
Value Equity Series 58,297 6,136
Strategic Equity Series 31,008 5,375
Small Cap Series 63,182 9,735
Managed Global Series 41,119 39,355
Mid-Cap Growth Series 97,494 8,444
Growth & Income Series 132,350 6,850
Research Series 237,915 6,540
Total Return Series 202,032 1,560
Value + Growth Series 119,241 13,912
Global Fixed Income Series 14,270 5,161
Developing World Series 7,293 2,662
Growth Opportunities Series 7,214 3,196
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio 52,726 6,256
PIMCO StocksPLUS Growth and Income Portfolio 49,898 2,237
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 739 82
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio 878 222
Smith Barney Large Cap Value Porfolio 513 32
Smith Barney International Equity Portfolio 245 12
Smith Barney Money Market Portfolio 630 494
Warburg Pincus Trust:
International Equity Portfolio 370,938 324,226
_________________________
COMBINED $2,686,570 $1,033,527
=========================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1997
_________________________
PURCHASES SALES
_________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Liquid Asset Series $94,848 $75,062
Limited Maturity Bond Series 12,572 13,891
Hard Assets Series 21,526 12,693
All-Growth Series 7,468 14,683
Real Estate Series 24,254 8,239
Fully Managed Series 27,691 11,768
Multiple Allocation Series 30,819 55,031
Capital Appreciation Series 41,409 24,135
Rising Dividends Series 63,949 8,887
Emerging Markets Series 8,023 6,846
Market Manager Series 467 623
Value Equity Series 32,557 4,409
Strategic Equity Series 19,475 4,918
Small Cap Series 25,870 10,563
Managed Global Series 37,985 21,524
Mid-Cap Growth Series 18,373 3,328
Growth & Income Series 37,291 1,763
Research Series 34,430 419
Total Return Series 26,167 354
Value + Growth Series 30,053 5,950
Global Fixed Income Series 224 7
Developing World Series -- --
Growth Opportunities Series -- --
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio -- --
PIMCO StocksPLUS Growth and Income Portfolio -- --
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 283 12
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio 216 11
Smith Barney Large Cap Value Porfolio 210 1
Smith Barney International Equity Portfolio 103 2
Smith Barney Money Market Portfolio 194 12
Warburg Pincus Trust:
International Equity Portfolio 2,146 59
_________________________
COMBINED $598,603 $285,190
=========================
</TABLE>
NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Contractowners' transactions shown in the following table reflect gross
inflows ("Purchases") and outflows ("Sales") in units for each Division. The
activity includes Contractowners electing to update a DVA 100 or DVA Series
100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted
in both a sale (surrender of the old Contract) and a purchase (acquisition of
the new Contract). All of the purchase transactions for the Market Manager
Division resulted from such updates.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1998
_________________________
PURCHASES SALES
_________________________
<S> <C> <C>
Liquid Asset Division 46,713,872 38,496,936
Limited Maturity Bond Division 5,263,273 2,390,944
Hard Assets Division 1,390,271 1,503,254
All-Growth Division 1,876,296 1,557,867
Real Estate Division 1,269,259 1,003,769
Fully Managed Division 4,432,536 1,393,191
Multiple Allocation Division 2,439,316 2,628,892
Capital Appreciation Division 3,704,327 1,712,022
Rising Dividends Division 13,285,423 1,798,264
Emerging Markets Division 737,697 1,279,884
Market Manager Division 16,579 26,443
Value Equity Division 3,639,566 936,377
Strategic Equity Division 2,329,825 828,876
Small Cap Division 5,737,867 1,727,666
Managed Global Division 3,637,963 3,808,355
Mid-Cap Growth Division 5,201,859 1,073,702
Growth & Income Division 8,700,243 1,061,928
Research Division 11,776,149 1,145,700
Total Return Division 11,841,572 542,519
Value + Growth Division 8,862,606 1,834,396
Global Fixed Income Division 1,199,981 486,199
Developing World Division 1,034,819 414,729
Growth Opportunities Division 801,993 373,469
PIMCO High Yield Bond Division 5,575,890 995,489
PIMCO StocksPLUS Growth and Income Division 5,235,676 567,893
Appreciation Division 45,518 5,062
Smith Barney High Income Division 59,777 15,706
Smith Barney Large Cap Value Division 25,818 1,496
Smith Barney International Equity Division 13,627 659
Smith Barney Money Market Division 55,074 43,687
International Equity Division 34,755,360 31,779,305
_________________________
COMBINED 191,660,032 101,434,679
=========================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1997
_________________________
PURCHASES SALES
_________________________
<S> <C> <C>
Liquid Asset Division 8,859,035 7,508,736
Limited Maturity Bond Division 814,102 1,099,923
Hard Assets Division 955,532 934,748
All-Growth Division 902,597 1,467,510
Real Estate Division 1,165,038 633,059
Fully Managed Division 1,588,523 1,271,492
Multiple Allocation Division 858,882 3,296,283
Capital Appreciation Division 1,899,517 1,801,059
Rising Dividends Division 4,263,972 1,391,248
Emerging Markets Division 1,231,916 1,082,071
Market Manager Division -- 31,196
Value Equity Division 1,792,574 522,420
Strategic Equity Division 1,539,555 551,638
Small Cap Division 3,022,647 1,720,403
Managed Global Division 3,674,935 2,873,007
Mid-Cap Growth Division 1,166,129 357,910
Growth & Income Division 2,623,649 368,883
Research Division 1,962,393 137,427
Total Return Division 1,683,989 52,603
Value + Growth Division 2,598,824 818,375
Global Fixed Income Division 18,902 1,482
Developing World Division -- --
Growth Opportunities Division -- --
PIMCO High Yield Bond Division -- --
PIMCO StocksPLUS Growth and Income Division -- --
Appreciation Division 19,581 822
Smith Barney High Income Division 15,972 739
Smith Barney Large Cap Value Division 12,176 39
Smith Barney International Equity Division 7,216 138
Smith Barney Money Market Division 17,685 1,114
International Equity Division 208,851 9,015
_________________________
COMBINED 42,904,192 27,933,340
=========================
</TABLE>
NOTE 6 - NET ASSETS
Investments at net asset value less the payable to Golden American Life
Insurance Company for charges and fees at December 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
Limited
Liquid Maturity Hard All-
Asset Bond Assets Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $166,620 $85,663 $27,056 $64,169
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 9,139 17,885 17,001 8,405
Net unrealized appreciation
(depreciation) of
investments -- (716) (14,354) 9,233
_____________________________________________________
$175,759 $102,832 $29,703 $81,807
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Real Fully Multiple Capital
Estate Managed Allocation Appreciation
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $51,262 $167,589 $134,591 $146,874
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26,016 48,555 134,202 74,724
Net unrealized appreciation
(depreciation) of
investments (8,283) 10,222 5,117 34,980
_____________________________________________________
$68,995 $226,366 $273,910 $256,578
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Rising Emerging Market Value
Dividends Markets Manager Equity
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $394,953 $46,675 $2,242 $109,242
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26,832 (14,912) 2,060 13,560
Net unrealized appreciation
(depreciation) of
investments 78,831 (9,509) 3,405 3,392
_____________________________________________________
$500,616 $22,254 $7,707 $126,194
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Small Managed Mid-Cap
Equity Cap Global Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $61,578 $103,543 $90,360 $103,719
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 8,326 (467) 20,177 5,764
Net unrealized appreciation
(depreciation) of
investments 1,444 21,169 20,147 7,361
_____________________________________________________
$71,348 $124,245 $130,684 $116,844
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Growth & Total Value +
Income Research Return Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $162,972 $254,403 $216,406 $124,813
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 7,050 11,860 9,989 4,268
Net unrealized appreciation
(depreciation) of
investments 8,928 17,266 1,440 13,987
_____________________________________________________
$178,950 $283,529 $227,835 $143,068
=====================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO
Global Growth High
Fixed Developing Oppor- Yield
Income World tunities Bond
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $9,140 $4,651 $4,025 $45,637
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 398 (288) (243) 499
Net unrealized appreciation
(depreciation) of
investments (10) 149 349 (18)
_____________________________________________________
$9,528 $4,512 $4,131 $46,118
=====================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO Smith Smith
StocksPLUS Barney Barney
Growth and Appre- High Large Cap
Income ciation Income Value
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $46,830 $882 $825 $676
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 717 49 44 15
Net unrealized appreciation
(depreciation) of
investments 4,255 43 (63) 10
_____________________________________________________
$51,802 $974 $806 $701
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Smith
Barney Smith
Inter- Barney Inter-
national Money national
Equity Market Equity
Division Division Division Combined
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $337 $304 $48,877 $2,676,914
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (4) 14 (666) 430,969
Net unrealized appreciation
(depreciation) of
investments (7) -- 1,554 210,322
_____________________________________________________
$326 $318 $49,765 $3,318,205
=====================================================
</TABLE>
NOTE 7 - UNIT VALUES
Accumulation unit value information (which is based on total assets) for
units outstanding by Contract type as of December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
LIQUID ASSET
Currently payable annuity products:
DVA 80 2,728 $15.19 $41
DVA 100 2,657 14.89 40
Contracts in accumulation period:
DVA 80 371,896 15.19 5,650
DVA 100 1,765,308 14.89 26,288
DVA Series 100 50,601 14.38 727
DVA PLUS - Standard 489,531 14.54 7,118
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,587,645 14.33 51,394
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,964,038 14.11 41,830
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,069,965 13.88 42,610
____________
175,698
LIMITED MATURITY BOND
Currently payable annuity products:
DVA 80 8,126 17.77 144
DVA 100 17,655 17.42 307
Contracts in accumulation period:
DVA 80 91,829 17.77 1,632
DVA 100 2,069,663 17.42 36,045
DVA Series 100 22,995 16.81 387
DVA PLUS - Standard 263,074 17.02 4,478
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,557,946 16.77 26,124
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,121,400 16.52 18,525
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 937,378 16.25 15,230
____________
102,872
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
HARD ASSETS
Currently payable annuity products:
DVA 80 365 $15.15 $6
DVA 100 8,649 14.85 128
Contracts in accumulation period:
DVA 80 58,984 15.15 893
DVA 100 744,236 14.85 11,050
DVA Series 100 23,997 14.33 344
DVA PLUS - Standard 146,678 14.50 2,126
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 258,034 14.28 3,685
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 609,087 14.07 8,570
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 210,821 13.84 2,917
____________
29,719
ALL-GROWTH
Currently payable annuity products:
DVA 80 474 16.36 8
DVA 100 11,790 16.03 189
Contracts in accumulation period:
DVA 80 72,780 16.36 1,191
DVA 100 2,382,762 16.03 38,207
DVA Series 100 23,147 15.48 358
DVA PLUS - Standard 208,260 15.66 3,261
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 645,591 15.43 9,958
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,471,156 15.20 22,355
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 422,889 14.95 6,320
____________
81,847
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
REAL ESTATE
Currently payable annuity products:
DVA 80 1,101 $23.06 $25
DVA 100 21,684 22.60 490
Contracts in accumulation period:
DVA 80 33,563 23.06 774
DVA 100 1,136,778 22.60 25,692
DVA Series 100 9,562 21.82 209
DVA PLUS - Standard 170,494 22.07 3,763
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 436,867 21.74 9,498
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 914,501 21.42 19,588
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 426,516 21.07 8,985
____________
69,024
FULLY MANAGED
Currently payable annuity products:
DVA 80 2,737 21.78 60
DVA 100 60,779 21.34 1,297
Contracts in accumulation period:
DVA 80 96,116 21.78 2,093
DVA 100 4,072,871 21.34 86,930
DVA Series 100 33,313 20.61 686
DVA PLUS - Standard 544,623 20.84 11,351
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,628,157 20.53 33,431
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,780,652 20.23 56,246
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,727,706 19.90 34,373
____________
226,467
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MULTIPLE ALLOCATION
Currently payable annuity products:
DVA 80 14,541 $23.26 $338
DVA 100 90,029 22.80 2,053
Contracts in accumulation period:
DVA 80 405,816 23.26 9,440
DVA 100 7,709,073 22.80 175,791
DVA Series 100 64,749 22.01 1,425
DVA PLUS - Standard 395,764 22.27 8,812
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 800,489 21.94 17,560
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,980,779 21.61 42,806
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 744,366 21.26 15,822
____________
274,047
CAPITAL APPRECIATION
Currently payable annuity products:
DVA 80 7,669 25.47 195
DVA 100 44,548 25.13 1,119
Contracts in accumulation period:
DVA 80 83,297 25.47 2,122
DVA 100 4,645,391 25.13 116,756
DVA Series 100 49,076 24.55 1,205
DVA PLUS - Standard 413,115 24.75 10,223
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,342,757 24.50 32,897
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,787,732 24.26 67,619
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,023,964 23.98 24,551
____________
256,687
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
RISING DIVIDENDS
Currently payable annuity products:
DVA 80 12,379 $23.31 $289
DVA 100 15,367 23.06 355
Contracts in accumulation period:
DVA 80 127,116 23.31 2,962
DVA 100 4,450,237 23.06 102,628
DVA Series 100 92,161 22.64 2,086
DVA PLUS - Standard 1,199,087 22.79 27,323
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 4,591,470 22.61 103,810
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 7,386,288 22.43 165,696
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 4,305,084 22.22 95,669
____________
500,818
EMERGING MARKETS
Currently payable annuity products:
DVA 80 304 6.71 2
DVA 100 9,591 6.64 64
Contracts in accumulation period:
DVA 80 68,213 6.71 458
DVA 100 1,539,408 6.64 10,224
DVA Series 100 23,813 6.52 155
DVA PLUS - Standard 266,800 6.56 1,751
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 271,025 6.51 1,765
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,177,915 6.46 7,610
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 37,134 6.40 238
____________
22,267
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MARKET MANAGER
Contracts in accumulation period:
DVA 100 332,519 $23.71 $7,884
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 7,958 23.14 184
____________
8,068
VALUE EQUITY
Currently payable annuity products:
DVA 80 409 18.73 8
DVA 100 2,145 18.58 40
Contracts in accumulation period:
DVA 80 29,033 18.73 544
DVA 100 1,049,863 18.58 19,502
DVA Series 100 20,539 18.32 376
DVA PLUS - Standard 454,942 18.41 8,377
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,415,540 18.31 25,913
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,736,310 18.20 49,797
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,201,314 18.06 21,692
____________
126,249
STRATEGIC EQUITY
Currently payable annuity products:
DVA 100 34,850 14.40 502
Contracts in accumulation period:
DVA 80 53,353 14.49 773
DVA 100 737,255 14.40 10,615
DVA Series 100 22,096 14.23 315
DVA PLUS - Standard 508,588 14.30 7,272
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,105,850 14.23 15,735
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,731,615 14.16 24,521
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 827,477 14.07 11,644
____________
71,377
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
SMALL CAP
Currently payable annuity products:
DVA 100 6,856 $15.55 $107
Contracts in accumulation period:
DVA 80 46,417 15.65 726
DVA 100 694,347 15.55 10,801
DVA Series 100 18,405 15.39 283
DVA PLUS - Standard 446,934 15.44 6,900
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 2,476,498 15.37 38,058
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,086,639 15.30 47,219
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,326,706 15.23 20,204
____________
124,298
MANAGED GLOBAL
Currently payable annuity products:
DVA 80 295 15.46 5
DVA 100 16,286 15.27 249
Contracts in accumulation period:
DVA 80 31,668 15.46 489
DVA 100 3,928,543 15.27 59,981
DVA Series 100 47,894 14.95 716
DVA PLUS - Standard 649,216 15.02 9,753
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 610,300 14.88 9,084
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,354,682 14.75 49,469
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 67,979 14.59 992
____________
130,738
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MID-CAP GROWTH
Contracts in accumulation period:
DVA 80 31,935 $23.04 $736
DVA 100 315,603 22.84 7,210
DVA Series 100 12,309 22.50 277
DVA PLUS - Standard 173,070 22.60 3,912
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,905,008 22.43 42,722
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,527,664 22.31 34,087
Granite PrimElite - Standard 981 22.60 22
Granite PrimElite - Annual Ratchet 23,659 22.43 531
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,235,724 22.17 27,396
____________
116,893
GROWTH & INCOME
Contracts in accumulation period:
DVA 80 9,045 17.29 156
DVA 100 486,360 17.20 8,365
DVA Series 100 9,399 17.03 160
DVA PLUS - Standard 537,480 17.08 9,180
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,297,314 17.01 56,089
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,474,459 16.94 58,850
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 2,741,015 16.87 46,233
____________
179,033
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
RESEARCH
Contracts in accumulation period:
DVA 80 14,054 $23.47 $330
DVA 100 488,822 23.27 11,377
DVA Series 100 20,718 22.93 475
DVA PLUS - Standard 437,189 23.03 10,068
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,902,974 22.89 89,339
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,875,695 22.73 88,107
Granite PrimElite - Standard 3,070 23.03 71
Granite PrimElite - Annual Ratchet 38,692 22.89 886
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,674,201 22.59 82,990
____________
283,643
TOTAL RETURN
Contracts in accumulation period:
DVA 80 2,035 18.17 37
DVA 100 431,678 18.02 7,778
DVA Series 100 6,695 17.75 119
DVA PLUS - Standard 616,433 17.83 10,989
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,982,960 17.72 70,569
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,973,034 17.60 69,922
Granite PrimElite - Standard 10,098 17.83 180
Granite PrimElite - Annual Ratchet 32,769 17.72 581
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,874,737 17.49 67,753
____________
227,928
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
VALUE + GROWTH
Contracts in accumulation period:
DVA 80 35,295 $16.57 $585
DVA 100 299,829 16.47 4,940
DVA Series 100 11,112 16.31 181
DVA PLUS - Standard 362,210 16.36 5,926
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,293,704 16.29 53,670
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,452,149 16.22 39,786
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 2,354,360 16.16 38,039
____________
143,127
GLOBAL FIXED INCOME
Contracts in accumulation period:
DVA 80 1,419 13.42 19
DVA 100 13,446 13.31 179
DVA PLUS - Standard 6,337 13.17 83
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 396,068 13.09 5,184
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 119,924 13.00 1,560
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 194,008 12.92 2,506
____________
9,531
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
DEVELOPING WORLD
Contracts in accumulation period:
DVA 80 3,368 $7.32 $25
DVA 100 4,598 7.31 34
DVA PLUS - Standard 617 7.29 5
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 417,221 7.28 3,039
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 82,414 7.27 599
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 111,872 7.26 812
____________
4,514
GROWTH OPPORTUNITIES
Contracts in accumulation period:
DVA 100 13,050 9.69 126
DVA PLUS - Standard 5,235 9.67 51
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 141,597 9.65 1,367
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 126,683 9.64 1,221
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 141,959 9.63 1,367
____________
4,132
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
PIMCO HIGH YIELD BOND
Contracts in accumulation period:
DVA 80 2,973 $10.12 $30
DVA 100 107,998 10.11 1,092
DVA PLUS - Standard 213,774 10.09 2,157
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,630,971 10.08 16,440
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,066,219 10.07 10,737
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,558,466 10.06 15,678
____________
46,134
PIMCO STOCKSPLUS GROWTH AND INCOME
Contracts in accumulation period:
DVA 80 13,664 11.16 152
DVA 100 160,283 11.14 1,786
DVA PLUS - Standard 112,706 11.12 1,253
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,527,697 11.11 16,975
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 942,738 11.10 10,465
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,910,695 11.09 21,188
____________
51,819
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
APPRECIATION
Contracts in accumulation period:
Granite PrimElite - Standard 1,108 $16.53 $18
Granite PrimElite - Annual Ratchet 58,107 16.47 957
____________
975
SMITH BARNEY HIGH INCOME
Contracts in accumulation period:
Granite PrimElite - Standard 12,711 13.66 174
Granite PrimElite - Annual Ratchet 46,593 13.58 633
____________
807
SMITH BARNEY LARGE CAP VALUE
Contracts in accumulation period:
Granite PrimElite - Standard 1,600 19.35 31
Granite PrimElite - Annual Ratchet 34,859 19.24 671
____________
702
SMITH BARNEY INTERNATIONAL EQUITY
Contracts in accumulation period:
Granite PrimElite - Standard 2,885 14.35 41
Granite PrimElite - Annual Ratchet 19,916 14.28 285
____________
326
SMITH BARNEY MONEY MARKET
Contracts in accumulation period:
Granite PrimElite - Standard 2,017 11.43 23
Granite PrimElite - Annual Ratchet 25,941 11.37 295
____________
318
INTERNATIONAL EQUITY
Contracts in accumulation period:
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 2,422,075 10.29 24,919
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 680,861 10.32 7,025
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,736,713 10.27 17,841
____________
49,785
_____________ ____________
COMBINED 183,098,947 $3,319,843
============= ============
</TABLE>
7
<PAGE>
<PAGE>
APPENDIX: DESCRIPTION OF BOND RATINGS
Excerpts from Moody's Investors Service, Inc. ("Moody's) description
of its bond ratings:
Aaa: Judged to be the best quality; they carry the smallest degree of
investment risk.
Aa: Judged to be of high quality by all standards; together with the
Aaa group, they comprise what are generally known as high grade
bonds.
A: Possess many favorable investment attributes and are to be
considered as "upper medium grade obligations."
Baa: Considered as medium grade obligations, i.e., they are neither
highly protected nor poorly secured; interest payments and
principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically
unreliable over any great length of time.
Ba: Judged to have speculative elements; their future cannot be
considered as well assured.
B: Generally lack characteristics of the desirable investment.
Caa: Are of poor standing; such issues may be in default or there may
be present elements of danger with respect to principal or
interest.
Ca Speculative in a high degree; often in default.
C: Lowest rate class of bonds; regarded as having extremely poor
prospects.
Moody's also applies numerical indicators 1, 2 and 3 to rating
categories. The modifier 1 indicates that the security is in the
higher end of its rating category; 2 indicates a mid-range ranking;
and 3 indicates a ranking toward the lower end of the category.
Excerpts from Standard & Poor's Rating Group ("Standard & Poor's")
description of its bond ratings:
AAA: Highest grade obligations; capacity to pay interest and repay
principal is extremely strong.
AA: Also qualify as high grade obligations; a very strong capacity
to pay interest and repay principal and differs from AAA issues
only in small degree.
A: Regarded as upper medium grade; they have a strong capacity to
pay interest and repay principal although it is somewhat more
susceptible to the adverse effects of changes in circumstances
and economic conditions than debt in higher rated categories.
BBB: Regarded as having an adequate capacity to pay interest and
repay principal; whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity
than in higher rated categories - this group is the lowest which
qualifies for commercial bank investment.
BB, B,
CCC,
CC: Predominantly speculative with respect to capacity to pay
interest and repay principal in accordance with terms of the
obligation: BB indicates the lowest degree of speculation and CC
the highest.
Standard & Poor's applies indicators "+," no character, and "-"
to its rating categories. The indicators show relative standing
within the major rating categories.
A-1
<PAGE>
<PAGE>
EXPLANATORY NOTE: GOLDENSELECT DVA SERIES 100
PROSPECTUS SUPPLEMENT
<PAGE>
<PAGE>
PROSPECTUS SUPPLEMENT
Dated May 1, 1999
Supplement to the Profiles and
Prospectuses dated May 1, 1999 for
DEFERRED VARIABLE ANNUITY CONTRACTS issued
by Golden American Life Insurance Company
(the "GoldenSelect DVA and DVA Series 100 Prospectuses")
__________
THIS SUPPLEMENT SHOULD BE RETAINED WITH YOUR PROFILE AND PROSPECTUS.
A new Fixed Interest Division option is now available through the group and
individual deferred variable annuity contracts offered by Golden American Life
Insurance Company. The Fixed Interest Division is part of the Golden American
General Account. Interests in the Fixed Interest Division have not been
registered under the Securities Act of 1933, and neither the Fixed Interest
Division nor the General Account are registered under the Investment Company
Act of 1940.
Interests in the Fixed Interest Division are offered through an Offering
Brochure, dated May 1, 1999. When reading through the GoldenSelect DVA
Prospectus, the Fixed Interest Division should be counted among the various
subaccounts available for the allocation of your premiums. The Fixed Interest
Division may not be available in some states. Some restrictions may apply.
More complete information relating to the Fixed Interest Division is found in
the Offering Brochure. Please read it carefully before you send money.
G3107 FID 5/99
<PAGE>
<PAGE>
EXPLANATORY NOTE: GOLDENSELECT DVA SERIES 100
PROFILE AND PROSPECTUS
<PAGE>
<PAGE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
[begin shaded block]
PROFILE OF
GOLDENSELECT DVA SERIES 100
FIXED AND VARIABLE ANNUITY CONTRACT
MAY 1, 1999
[inset within shaded block]
This Profile is a summary of some of the more important points that
you should know and consider before purchasing the Contract. The
Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
[end inset within shaded block]
[end shaded block]
1.THE ANNUITY CONTRACT
The Contract offered in this prospectus is a deferred variable
annuity contract between you and Golden American Life Insurance
Company. The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 22 mutual fund investment portfolios
(listed on the next page) through our Separate Account B listed on
the next page. You may not make any money, and you can even lose the
money you invest.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The
accumulation phase is the period between the contract date and the
date on which you start receiving the annuity payments under your
Contract. The amounts you accumulate during the accumulation phase
will generally determine the amount of annuity payments you will
receive. The income phase begins when you start receiving regular
annuity payments from your Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2.YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving
on the annuity start date. You may choose one of the following
annuity payment options:
<PAGE>
<PAGE>
[Table with Shaded Heading]
Annuity Options
|------------------------------------------------------------------------|
| Option 1 Income for a Payments are made for a specified |
| fixed period number of years to you |
| or your beneficiary. |
|------------------------------------------------------------------------|
| Option 2 Income for Payments are made for the rest of |
| life with a your life or longer for a specified |
| period certain period such as 10 or 20 years or |
| until the total amount used to buy |
| this option has been repaid. This |
| option comes with an added guarantee|
| that payments will continue to your |
| beneficiary for the remainder of |
| period if you should die during the |
| period. |
|------------------------------------------------------------------------|
| Option 3 Joint life income Payments are made for your life |
| and the life of another person |
| (usually your spouse). |
|------------------------------------------------------------------------|
| Option 4 Annuity plan Any other annuitization plan that we|
| choose to offer on the annuity |
| start date. |
|------------------------------------------------------------------------|
Annuity payments under Options 1, 2 and 3 are fixed. Annuity
payments under Option 4 may be fixed or variable. Once you elect an
annuity option and begin to receive payments, it cannot be changed.
3.PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
You may purchase the Contract with an initial payment of $25,000 or
more for qualified and non-qualified contracts up to and including
age 85. We will only accept a rollover contribution of $25,000 or
more for qualified plans. You may make additional payments of $500 or
more ($250 for a qualified Contract) at any time before you turn 85.
Under certain circumstances, we may waive the minimum initial and
additional premium payment requirement. We may refuse a premium
payment if an initial premium or the sum of all premium payments is
more than $1,500,000.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this
Contract if you are looking for a short-term investment or if you
cannot risk getting back less money than you put in.
4.THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 24
mutual fund investment portfolios through our Separate Account B.
The investment portfolios are described in the prospectuses for the
GCG Trust and the PIMCO Variable Insurance Trust. But if you invest
in any of the following investment portfolios, depending on market
conditions, you may make or lose money:
<TABLE>
<S> <C> <C>
THE GCG TRUST
Liquid Asset Series Growth & Income Series Small Cap Series
Limited Maturity Bond Series Growth Series Real Estate Series
Global Fixed Income Series Value Equity Series Hard Assets Series
Total Return Series Research Series Managed Global Series
Equity Income Series Mid-Cap Growth Series Developing World Series
Fully Managed Series Capital Appreciation Series Emerging Markets Series
Rising Dividends Series Strategic Equity Series
THE PIMCO TRUST
PIMCO High Yield Bond Portfolio
PIMCO StocksPLUS Growth and Income Portfolio
</TABLE>
2
<PAGE>
<PAGE>
5.EXPENSES
The Contract has insurance features and investment features, and
there are costs related to each. We also collect a mortality and
expense risk charge and an asset-based administrative charge. These
2 charges are deducted daily directly from the amounts in the
investment portfolios. The annual rate of the mortality and expense
risk charge is 1.25%. The asset-based administrative charge is 0.10%
annually.
Mortality & Expense Risk Charge.......1.25%
Asset-Based Administrative Charge.....0.10%
Total..............................1.35%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.59% to 1.83% annually (see
following table) of the portfolio's average daily net asset balance.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
We deduct a distribution fee (annual sales load) in an annual amount
of 0.65% of each premium at the end of each contract year for a
period of 10 years from the date we receive and accept each premium
payment.
We deduct a withdrawal charge for each regular withdrawal after the
first in a contract year. The withdrawal charge is the lesser of $25
or 2% of each withdrawal.
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
mortality and expense risk charge and the asset-based administrative
charge. The "Total Annual Investment Portfolio Charges" column
reflects the portfolio charges for each portfolio and are based on
actual expenses during 1998, except for portfolios that commenced
operations as of during 1998 where the charges have been annualized.
The column "Total Annual Charges" reflects the sum of the previous
two columns. The columns under the heading "Examples" show you how
much you would pay under the Contract for a 1-year period and for a
10-year period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end
of Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
3
<PAGE>
<PAGE>
[Table with shaded heading and shaded lines for readability]
TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
THE GCG TRUST
Liquid Asset 1.35% 0.59% 1.94% $26.20 $285.17
Limited Maturity Bond 1.35% 0.60% 1.95% $26.30 $286.19
Global Fixed Income 1.35% 1.60% 2.95% $36.30 $382.86
Total Return 1.35% 0.97% 2.32% $30.01 $323.20
Equity Income 1.35% 0.98% 2.33% $30.11 $324.17
Fully Managed 1.35% 0.98% 2.33% $30.11 $324.17
Rising Dividends 1.35% 0.98% 2.33% $30.11 $324.17
Growth & Income 1.35% 1.08% 2.43% $31.11 $333.91
Growth 1.35% 1.09% 2.44% $31.21 $334.88
Value Equity 1.35% 0.98% 2.33% $30.11 $324.17
Research 1.35% 0.94% 2.29% $29.71 $320.25
Mid-Cap Growth 1.35% 0.95% 2.30% $29.81 $321.23
Strategic Equity 1.35% 0.99% 2.34% $30.21 $325.15
Capital Appreciation 1.35% 0.98% 2.33% $30.11 $324.17
Small Cap 1.35% 0.99% 2.34% $30.21 $325.15
Real Estate 1.35% 0.99% 2.34% $30.21 $325.15
Hard Assets 1.35% 1.00% 2.35% $30.31 $326.13
Managed Global 1.35% 1.26% 2.61% $32.91 $351.17
Developing World 1.35% 1.83% 3.18% $38.59 $403.64
Emerging Markets 1.35% 1.83% 3.18% $38.59 $403.64
THE PIMCO TRUST
PIMCO High Yield Bond 1.35% 0.75% 2.10% $27.80 $301.37
PIMCO StocksPLUS
Growth and Income 1.35% 0.65% 2.00% $26.80 $291.28
The "Total Annual Investment Portfolio Charges" reflect current
expense reimbursements for the Total Return and Global Fixed Income
portfolios. The 1 Year and 10 Year Examples above include the 0.65%
distribution fee (annual sales load). For more detailed information,
see the fee table in the prospectus for the Contract.
6.TAXES
Under a qualified Contract, your premiums are generally pre-tax
contributions and accumulate on a tax-deferred basis. Premiums and
earnings are generally taxed as income when you make a withdrawal or
begin receiving annuity payments, presumably when you are in a lower
tax bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2
(or, in some cases, retire), you will be required by federal tax laws
to begin receiving payments from your annuity or risk paying a
penalty tax. In those cases, we can calculate and pay you the
minimum required distribution amounts. If you are younger than 59
1/2 when you take money out, in most cases, you will be charged a 10%
federal penalty tax on the amount withdrawn.
7.WITHDRAWALS
You can withdraw your money at any time during the accumulation
phase. You may elect in advance to take systematic withdrawals which
are described on page 7. If you take more than one withdrawal (other
than a systematic withdrawal) during a contract year, we impose a
charge of the lesser of $25 and 2.0% of the amount withdrawn for each
additional withdrawal. In no event may a withdrawal or a combination
of regular withdrawals and systematic withdrawals received or
expected to be received during the contract
4
<PAGE>
<PAGE>
year, exceed 25% of the accumulation value as of the date of the current
withdrawal. Income taxes and a penalty tax may apply to amounts withdrawn.
8.PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart
shows average annual total return for 1998. These numbers reflect
the deduction of the mortality and expense risk charge and the asset-
based administrative charge, but do not reflect deductions for the
distribution fee (annual sales load) and any withdrawal charges. If
withdrawal charges were reflected, they would have the effect of
reducing performance. Please keep in mind that past performance is
not a guarantee of future results.
<TABLE>
CALENDAR YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT PORTFOLIO 1998 1997 1996 1995 1994 1993 1992 1991 1990
Managed by A I M Capital Management, Inc.
Capital Appreciation(1) 11.55% 27.67% 19.05% 28.86% (2.57)% 7.22% -- -- --
Strategic Equity(2) (0.17) 21.92 18.19 -- -- -- -- -- --
Managed by T. Rowe Price Associates, Inc.
Fully Managed 4.84 14.20 15.20 19.51 (8.20) 6.51 5.16 27.64 (4.15)
Equity Income(2) 7.18 16.26 7.67 17.75 (2.16) 10.02 0.86 18.83 3.68
Managed by Kayne Anderson Investment Management, LLC
Rising Dividends 12.99 28.53 19.43 29.76 (0.41) -- -- -- --
Managed by EII Realty Securities, Inc.
Real Estate (14.32) 21.56 33.94 15.42 5.28 16.10 12.73 32.72 (21.58)
Managed by Eagle Asset Management, Inc.
Value Equity 0.54 26.01 9.51 33.91 -- -- -- -- --
Managed by Fred Alger Management, Inc.
Small Cap 19.77 9.22 18.91 -- -- -- -- -- --
Managed by Putnam Investment Management, Inc.
Emerging Markets (24.85) (10.28) 6.20 (11.00)(16.02) -- -- -- --
Managed Global 28.02 11.05 11.19 6.25 (13.57) 5.10 -- -- --
Managed by ING Investment Management, LLC
Limited Maturity Bond 5.79 5.60 3.27 10.61 (2.17) 5.14 3.79 10.16 6.79
Liquid Asset 4.00 4.04 3.92 4.47 2.66 1.61 2.09 4.60 6.67
Managed by Pacific Investment Management Company
PIMCO High Yield Bond -- -- -- -- -- -- -- -- --
PIMCO StocksPLUS Growth
and Income -- -- -- -- -- -- -- -- --
Managed by Alliance Capital Management L.P.
Growth & Income(2) 10.85 23.89 -- -- -- -- -- -- --
Managed by Janus Capital Corporation
Growth(2) 25.56 14.61 -- -- -- -- -- -- --
Managed by Massachusetts Financial Services Company
Mid-Cap Growth 21.58 18.46 19.46 28.16 -- -- -- -- --
Total Return 10.48 19.65 12.54 23.29 -- -- -- -- --
Research 21.82 18.92 22.10 35.21 -- -- -- -- --
Managed by Baring International Investment Limited
Global Fixed Income 10.73 (0.34) 3.94 4.81 -- -- -- -- --
Hard Assets(2) (30.29) 5.10 31.90 9.59 1.51 48.43 (10.71) 3.66 (14.70)
Developing World(2) -- -- -- -- -- -- -- -- --
__________________________
(1)Prior to April 1, 1999, a different firm managed the Portfolio.
(2)Prior to March 1, 1999, a different firm managed the Portfolio.
</TABLE>
5
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<PAGE>
9.DEATH BENEFIT
If the contract owner or the annuitant dies before the annuity start
date, we will pay your beneficiary the death benefit proceeds under
the Contract unless the beneficiary is your surviving spouse and
elects to continue the Contract.
The death benefit may be subject to certain mandatory distribution
rules required by federal tax law.
If the contract owner or the annuitant is NOT MORE THAN 75 YEARS OLD
(80 years old for Contracts with a contract date before November 6,
1992) at the time of purchase, the death benefit is the greater of:
1) the contract value; and
2) the guaranteed death benefit, which we determine as follows: we
credit interest each business day at the 7% annual effective
rate to the guaranteed death benefit from the preceding day
(which would be the initial premium if the preceding day is
the contract date), then we add additional premiums paid since
the preceding day, then we subtract any withdrawals made since
the preceding day. The maximum guaranteed death benefit is 2
times all premium payments, less an amount to reflect total
withdrawals taken. The actual interest rate used for
calculating the death benefit for the Liquid Asset investment
portfolio will be the lesser of the 7% annual effective rate
or the net rate of return for the portfolio during the
applicable period.
If the contract owner or the annuitant is AGE 76 OR OLDER at the time
of purchase (age 81 or older for Contracts with a contract date
before November 6, 1992), the death benefit is the greater of:
1) the cash surrender value; and
2) the total premium payments made under the Contract after
subtracting any withdrawals.
If you purchased the Contract in North Carolina before November 6,
1992, the following death benefit applies: if the contract owner or
the annuitant are both age 80 or younger at the time of purchase, the
death benefit is the greater of: (1) the contract value: and (2) the
total premium payments made under the contract after subtracting any
withdrawals. If the contract owner or the annuitant is age 81 or
older at the time of purchase, the death benefit is the greater of:
(1) the cash surrender value; and (2) the total premium payments made
under the contract after subtracting any withdrawals.
The death benefit value is calculated at the close of the business
day on which we receive due proof of death at our Customer Service
Center. If your beneficiary elects to delay receipt of the death
benefit until a date after the time of your death, the amount of the
benefit payable in the future may be affected. If you die after the
annuity start date and you are the annuitant, your beneficiary will
receive the death benefit you chose under the annuity option then in
effect.
10.OTHER INFORMATION
FREE LOOK. You may cancel the Contract within 10 days after you
receive it. If applicable state law requires a longer free look
period, or the return of the premium paid, the Company will comply.
If you exercise your right to cancel, we will return the greater of
(a) the premium payments made, and (b) the contract value plus any
amounts deducted under the Contract or by the Trust for taxes,
charges or fees.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. You can make transfers
among your investment as frequently as you wish without any current
tax implications. The minimum amount for a transfer is $100.
Currently there is no charge for transfers, and we do not limit the
number or transfers allowed. The Company may, in the future, charge
a $25 fee for any transfer after the twelfth transfer in a contract
year or limit the number of transfers allowed.
NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
6
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<PAGE>
ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over time
than a single one-time purchase. Dollar cost averaging requires
regular investments regardless of fluctuating price levels, and
does not guarantee profits or prevent losses in a declining
market. This option is currently available only if you have
$10,000 or more in the Limited Maturity Bond or the Liquid Asset
investment.
Systematic Withdrawals. During the accumulation phase, you can
arrange to have money sent to you at regular intervals throughout
the year. Within limits these withdrawals will not result in any
withdrawal charge. Of course, any applicable income and penalty
taxes will apply on amounts withdrawn.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
Customer Service Center
P.O. BOX 2700
WEST CHESTER, PENNSYLVANIA 19380
(800) 366-0066
or your registered representative.
7
<PAGE>
<PAGE>
[begin shaded block]
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
MAY 1, 1999
DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY PROSPECTUS
GOLDENSELECT DVA SERIES 100
[end shaded block]
- ------------------------------------------------------------------------
This prospectus describes GoldenSelect DVA Series 100, a group and
individual deferred variable annuity contract (the "Contract")
offered by Golden American Life Insurance Company (the "Company,"
"we" or "our"). The Contract is available in connection with certain
retirement plans that qualify for special federal income tax
treatment ("qualified Contracts") as well as those that do not
qualify for such treatment ("non-qualified Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 22 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract and the portfolio managers are:
<TABLE>
<C> <C>
T. ROWE PRICE ASSOCIATES, INC. ALLIANCE CAPITAL MANAGEMENT L. P.
Fully Managed Series Growth & Income Series
Equity Income Series JANUS CAPITAL CORPORATION
A I M CAPITAL MANAGEMENT, INC. Growth Series
Capital Appreciation Series MASSACHUSETTS FINANCIAL SERVICES COMPANY
Strategic Equity Series Mid-Cap Growth Series
KAYNE ANDERSON INVESTMENT MANAGEMENT, LLC Total Return Series
Rising Dividends Series Research Series
EII REALTY SECURITIES, INC. ING INVESTMENT MANAGEMENT, LLC (AN AFFILIATE)
Real Estate Series Limited Maturity Bond Series
BARING INTERNATIONAL INVESTMENT LIMITED (AN AFFILIATE) Liquid Asset Series
Hard Assets Series PACIFIC INVESTMENT MANAGEMENT COMPANY
Developing World Series PIMCO High Yield Bond Portfolio
Global Fixed Income Series PIMCO StocksPLUS Growth and Income Portfolio
EAGLE ASSET MANAGEMENT, INC. PUTNAM INVESTMENT MANAGEMENT, INC.
Value Equity Series Emerging Markets Series
FRED ALGER MANAGEMENT, INC. Managed Global Series
Small Cap Series
</TABLE>
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account B. We refer to the
divisions as "subaccounts" in this prospectus.
You have a right to return a Contract within 10 days after you
receive it for a full refund of the contract value (which may be more
or less than the premium payments you paid), or if required by your
state, the original amount of your premium payment. Longer free look
periods apply in some states.
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999 has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
- ------------------------------------------------------------------------
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AN INVESTMENT IN THE GCG TRUST OR THE PIMCO TRUST IS NOT A BANK
DEPOSIT AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST AND THE PIMCO TRUST.
<PAGE>
<PAGE>
- -----------------------------------------------------------------------
TABLE OF CONTENTS
- -----------------------------------------------------------------------
PAGE
Index of Special Terms.....................................1
Fees and Expenses..........................................2
Performance Information....................................4
Accumulation Unit.......................................4
Net Investment Factor...................................4
Condensed Financial Information.........................5
Financial Statements....................................5
Performance Information.................................5
Golden American Life Insurance Company.....................6
The Trusts.................................................6
Golden American Separate Account B.........................7
The Investment Portfolios..................................7
Investment Objectives...................................7
Investment Portfolio Management Fees....................9
The Annuity Contract......................................10
Contract Date and Contract Year........................10
Annuity Start Date.....................................10
Contract Owner.........................................10
Annuitant..............................................11
Beneficiary............................................11
Purchase and Availability of the Contract..............11
Crediting of Premium Payments..........................12
Contract Value.........................................12
Cash Surrender Value...................................13
Surrendering to Receive the Cash Surrender Value.......13
Addition, Deletion or Substitution of Subaccounts
and Other Changes......................................13
Other Contracts........................................13
Other Important Provisions.............................14
Withdrawals...............................................14
Regular Withdrawals....................................14
Systematic Withdrawals.................................14
IRA Withdrawals........................................15
Transfers Among Your Investments..........................16
Dollar Cost Averaging..................................16
Death Benefit.............................................17
Death Benefit During the Accumulation Phase............17
Death Benefit During the Income Phase..................18
Charges and Fees..........................................18
Charge Deduction Subaccount............................18
Charges Deducted from the Contract Value...............18
Distribution Fee.....................................18
Premium Taxes........................................18
Transfer Charge......................................18
Withdrawal Charge......................................18
Charges Deducted from the Subaccounts..................18
Mortality and Expense Risk Charge....................18
Asset-Based Administrative Charge....................19
Trust Expenses.........................................19
i
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<PAGE>
- -----------------------------------------------------------------------
TABLE OF CONTENTS (CONTINUED)
- -----------------------------------------------------------------------
PAGE
The Annuity Options.......................................19
Annuitization of Your Contract.........................19
Selecting the Annuity Start Date.......................19
Frequency of Annuity Payments..........................20
The Annuity Options....................................20
Income for a Fixed Period............................20
Income for Life with a Period Certain................20
Joint Life Income....................................20
Annuity Plan.........................................20
Payment When Named Person Dies.........................20
Other Contract Provisions.................................21
Reports to Contract Owners.............................21
Suspension of Payments.................................21
In Case of Errors in Your Application..................21
Assigning the Contract as Collateral...................21
Contract Changes-Applicable Tax Law....................21
Free Look..............................................21
Group or Sponsored Arrangements........................22
Selling the Contract...................................22
Other Information.........................................22
Voting Rights..........................................22
Year 2000 Problem......................................23
State Regulation.......................................23
Legal Proceedings......................................23
Legal Matters..........................................23
Experts................................................23
Federal Tax Considerations................................23
Statement of Additional Information
Table of Contents......................................29
Appendix A
Condensed Financial Information........................A1
ii
<PAGE>
<PAGE>
[Shaded Section Header]
- -----------------------------------------------------------------------
INDEX OF SPECIAL TERMS
- -----------------------------------------------------------------------
The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 4
Annuitant 11
Annuity Start Date 10
Cash Surrender Value 13
Contract Date 10
Contract Owner 10
Contract Value 12
Contract Year 10
Net Investment Factor 4
Death Benefit 17
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN
THE CONTRACT
Accumulation Unit Value Index of Investment Experience
Annuity Start Date Annuity Commencement Date
Contract Owner Owner or Certificate Owner
Contract Value Accumulation Value
Transfer Charge Excess Allocation Charge
Free Look Period Right to Examine Period
Subaccount(s) Division(s)
Net Investment Factor Experience Factor
Regular Withdrawals Conventional Partial Withdrawals
Withdrawals Partial Withdrawals
1
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[Shaded Section Header]
- -----------------------------------------------------------------------
FEES AND EXPENSES
- -----------------------------------------------------------------------
OWNER TRANSACTION EXPENSE
Distribution Fee (annual sales load) as a percentage of the
initial and each additional premium, deducted at the end of each
contract year following receipt of each premium over a 10 year period
from the date we receive and accept each premium payment.........0.65%
CONTRACT OWNER TRANSACTION EXPENSES
Transfer Charge...............................................None*
* We may in the future charge $25 per transfer if you make more
than 12 transfers in a contract year.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge............................................$0
WITHDRAWAL CHARGE (2% of the withdrawal for each additional regular
withdrawal after the first in a contract year) not to exceed.......$25
SEPARATE ACCOUNT ANNUAL CHARGES**
Mortality and Expense Risk Charge....................1.25%
Asset-Based Administrative Charge....................0.10%
Total Separate Account Charges.......................1.35%
** As a percentage of average assets in each subaccount.
THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average
daily net assets of the indicated groups of portfolios):
[Table with Shaded Heading and Shaded Lines for readability]
|-------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3)|
|-------------------------------------------------------------------------|
| Liquid Asset 0.59% 0.00% 0.59% |
| Limited Maturity Bond 0.60% 0.00% 0.60% |
| Global Fixed Income 1.60% 0.00% 1.60%(3) |
| Total Return 0.94% 0.03% 0.97%(3) |
| Equity Income 0.98% 0.00% 0.98% |
| Fully Managed 0.98% 0.00% 0.98% |
| Rising Dividends 0.98% 0.00% 0.98% |
| Growth & Income 1.08% 0.00% 1.08% |
| Growth 1.08% 0.01% 1.09% |
| Research 0.94% 0.00% 0.94% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
| All-Growth(4) 0.98% 0.01% 0.99% |
| Growth Opportunities(4) 1.10% 0.05% 1.15% |
| Strategic Equity 0.98% 0.01% 0.99% |
| Capital Appreciation 0.98% 0.00% 0.98% |
| Small Cap 0.98% 0.01% 0.99% |
| Real Estate 0.98% 0.01% 0.99% |
| Hard Assets 0.98% 0.02% 1.00% |
| Managed Global 1.25% 0.01% 1.26% |
| Developing World 1.75% 0.08% 1.83% |
| Emerging Markets 1.75% 0.08% 1.83% |
| |
|-------------------------------------------------------------------------|
(1)Fees decline as combined assets increase. See the prospectus for
the GCG Trust for more information.
Value Equity 0.98% 0.00% 0.98%
(2)Other expenses generally consist of independent trustees fees and
certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the
year ended December 31, 1998, except for portfolios that
commenced operations in 1998 where the charges have been
annualized.
2
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<PAGE>
(3)Directed Services, Inc. is currently reimbursing expenses to
maintain total expenses at 0.97% for the Total Return portfolio
and 1.60% for the Global Fixed Income portfolio as shown.
Without this reimbursement, and based on current estimates, total
expenses would be 0.98% for the Total Return portfolio and 1.74%
for the Global Fixed Income portfolio. This reimbursement
agreement will remain in place through December 31, 1999.
(4)As of May 1, 1999, we no longer offer the All-Growth and Growth
Opportunities portfolios.
THE PIMCO TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of a portfolio):
[Table with Shaded Heading and Shaded Lines for readability]
|-----------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT(1)REIMBURSEMENT(1)|
|-----------------------------------------------------------------------------|
| PIMCO High Yield Bond 0.50% 0.25%(2) 0.75% |
| PIMCO StocksPLUS Growth and Income 0.40% 0.25% 0.65% |
(1)PIMCO has agreed to waive some or all of its other expenses,
subject to potential future reimbursement, to the extent that
total expenses for the PIMCO High Yield Bond portfolio and PIMCO
StocksPLUS Growth and Income portfolio would exceed 0.75% and
0.65%, respectively, due to payment by the portfolios of their
pro rata portion of Trustees' fees. Without this agreement, and
based on current estimates, total expenses would be 0.81% for the
PIMCO High Yield Bond portfolio and 0.72% for the PIMCO
StocksPLUS Growth and Income portfolio.
(2)Since the PIMCO High Yield Bond portfolio commenced operations on
April 30, 1998, other expenses as shown has been annualized for
the year ended December 31, 1998.
The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and
indirectly. See the prospectuses of the GCG Trust and the PIMCO
Trust for additional information on portfolio expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the tables above or in
the examples below.
3
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<PAGE>
EXAMPLES:
Whether you surrender or do not surrender your contract at the end of
the applicable time period, you would pay the following expenses for
each $1,000 of initial premium, assuming a 5% annual return on
assets:
- ---------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset............$26.20 $80.03 $135.88 $285.17
Limited Maturity Bond...$26.30 $80.33 $136.39 $286.19
Global Fixed Income.....$36.30 $110.17 $185.77 $382.86
Total Return............$30.01 $91.48 $154.96 $323.20
Equity Income...........$30.11 $91.78 $155.45 $324.17
Fully Managed...........$30.11 $91.78 $155.45 $324.17
Rising Dividends........$30.11 $91.78 $155.45 $324.17
Growth & Income.........$31.11 $94.77 $160.41 $333.91
Growth..................$31.21 $95.07 $160.90 $334.88
Value Equity............$30.11 $91.78 $155.45 $324.17
Research................$29.71 $90.58 $153.46 $320.25
Mid-Cap Growth..........$29.81 $90.88 $153.96 $321.23
All-Growth(1)...........$30.21 $92.08 $155.95 $325.15
Growth Opportunities(1).$31.81 $96.85 $163.86 $340.67
Strategic Equity........$30.21 $92.08 $155.95 $325.15
Capital Appreciation....$30.11 $91.78 $155.45 $324.17
Small Cap...............$30.21 $92.08 $155.95 $325.15
Real Estate.............$30.21 $92.08 $155.95 $325.15
Hard Assets.............$30.31 $92.38 $156.45 $326.13
Managed Global..........$32.91 $100.13 $169.27 $351.17
Developing World........$38.59 $116.90 $196.77 $403.64
Emerging Markets........$38.59 $116.90 $196.77 $403.64
THE PIMCO TRUST
PIMCO High Yield Bond...$27.80 $84.87 $143.96 $301.37
PIMCO StocksPLUS Growth
and Income..............$26.80 $81.85 $138.92 $291.28
--------------------
(1)As of May 1, 1999, we no longer offer the All-Growth or
Growth Opportunities portfolios.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
[Shaded Section Header]
- -----------------------------------------------------------------------
PERFORMANCE INFORMATION
- -----------------------------------------------------------------------
ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account B has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the subaccounts are valued at their
net asset value.
THE NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
4
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<PAGE>
(1)We take the net asset value of the subaccount at the end of each
business day.
(2)We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in such
subaccount. We subtract from that amount a charge for our taxes,
if any.
(3)We divide (2) by the net asset value of the subaccount at the end
of the preceding business day.
(4)We then subtract the applicable daily mortality and expense risk
charge and the daily asset based administrative charge from each
subaccount.
Calculations for the subaccounts are made on a per share basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Golden American Separate Account B offered in this
prospectus and (ii) the total investment value history of each such
subaccount are presented in Appendix A - Condensed Financial
Information.
FINANCIAL STATEMENTS
The audited financial statements of Separate Account B for the years
ended December 31, 1998 and 1997 and the audited consolidated
financial statements of Golden American for the years ended December
31, 1998, 1997 and 1996 are included in the Statement of Additional
Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate
Account B, including the average annual total return performance,
yields and other nonstandard measures of performance. Such
performance data will be computed, or accompanied by performance data
computed, in accordance with standards defined by the SEC.
Except for the Liquid Asset subaccount, quotations of yield for the
subaccounts will be based on all investment income per unit (contract
value divided by the accumulation unit) earned during a given 30-day
period, less expenses accrued during such period. Information on
standard total average annual return performance will include average
annual rates of total return for 1, 5 and 10 year periods, or lesser
periods depending on how long the subaccount has been in existence.
We may show other total returns for periods less than one year.
Total return figures will be based on the actual historic performance
of the subaccounts of Separate Account B, assuming an investment at
the beginning of the period, withdrawal of the investment at the end
of the period, and the deduction of all applicable portfolio and
contract charges. We may also show rates of total return on amounts
invested at the beginning of the period with no withdrawal at the end
of the period. Total return figures which assume no withdrawals at
the end of the period will reflect all recurring charges, but will
not reflect the surrender charge. Quotations of average annual
return for the Managed Global subaccount take into account the period
before September 3, 1996, during which it was maintained as a
subaccount of Golden American Separate Account D. In addition, we
may present historic performance data for the mutual fund investment
portfolios since their inception reduced by some or all of the fees
and charges under the Contract. Such adjusted historic performance
includes data that precedes the inception dates of the subaccounts.
This data is designed to show the performance that would have
resulted if the Contract had been in existence during that time.
Current yield for the Liquid Asset subaccount is based on income
received by a hypothetical investment over a given 7-day period, less
expenses accrued, and then "annualized" (i.e., assuming that the 7-
day yield would be received for 52 weeks). We calculate "effective
yield" for the Liquid Asset subaccount in a manner similar to that
used to calculate yield, but when annualized, the income earned by
the investment is assumed to be reinvested. The "effective yield"
will thus be slightly higher than the "yield" because of the
compounding effect of earnings. We calculate quotations of yield for
the remaining subaccounts on all investment income per accumulation
unit earned during a given 30-day period, after subtracting fees and
expenses accrued during the period.
5
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We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or
other investment products tracked by Lipper Analytical Services (a
widely used independent research firm which ranks mutual funds and
other investment companies), or any other rating service, and (iii)
the Consumer Price Index (measure for inflation) to assess the real
rate of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
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GOLDEN AMERICAN LIFE INSURANCE COMPANY
- -----------------------------------------------------------------------
Golden American Life Insurance Company is a Delaware stock life
insurance company, which was originally incorporated in Minnesota on
January 2, 1973. Golden American is a wholly owned subsidiary of
Equitable of Iowa Companies, Inc. ("Equitable of Iowa"). Equitable
of Iowa is a wholly owned subsidiary of ING Groep N.V. ("ING"), a
global financial services holding company with approximately $461.8
billion in assets as of December 31, 1998. Golden American is
authorized to sell insurance and annuities in all states, except New
York, and the District of Columbia. In May 1996, Golden American
established a subsidiary, First Golden American Life Insurance
Company of New York, which is authorized to sell annuities in New
York and Delaware. Golden American's consolidated financial
statements appear in the Statement of Additional Information.
Equitable of Iowa is the holding company for Golden American,
Directed Services, Inc., the investment manager of the GCG Trust and
the distributor of the Contracts, and other interests. Equitable of
Iowa and another ING affiliate own ING Investment Management, LLC, a
portfolio manager of the GCG Trust. ING also owns Baring
International Investment Limited, another portfolio manager of the
GCG Trust.
Our principal office is located at 1475 Dunwoody Drive, West Chester,
Pennsylvania 19380.
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THE TRUSTS
- -----------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance
policies offered by Golden American. The GCG Trust also sells its
shares to separate accounts of other insurance companies, both
affiliated and not affiliated with Golden American. Pending
Securities and Exchange Commission approval, shares of the GCG Trust
may also be sold to certain qualified pension and retirement plans.
The PIMCO Trust is also a mutual fund whose shares are available to
separate accounts of insurance companies, including Golden American,
for both variable annuity contracts and variable life insurance
policies and by qualified pension and retirement plans. The
principal address of the PIMCO Trust is 840 Newport Center Drive,
Suite 300, Newport Beach, CA 92660.
In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust and the PIMCO Trust, Directed Services, Inc., Pacific
Investment Management Company and any other insurance companies
participating in the Trusts will monitor events to identify and
resolve any material conflicts that may arise.
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You will find complete information about the GCG Trust and the PIMCO
Trust in the accompanying Trusts' prospectuses. You should read them
carefully before investing.
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GOLDEN AMERICAN SEPARATE ACCOUNT B
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Golden American Separate Account B ("Account B") was established as a
separate account of the Company on July 14, 1988. It is registered
with the Securities and Exchange Commission as a unit investment
trust under the Investment Company Act of 1940. Account B is a
separate investment account used for our variable annuity contracts.
We own all the assets in Account B but such assets are kept separate
from our other accounts.
Account B is divided into subaccounts. Each subaccount invests
exclusively in shares of one investment portfolio of the GCG Trust
and the PIMCO Trust. Each investment portfolio has its own distinct
investment objectives and policies. Income, gains and losses,
realized or unrealized, of a portfolio are credited to or charged
against the corresponding subaccount of Account B without regard to
any other income, gains or losses of the Company. Assets equal to
the reserves and other contract liabilities with respect to each are
not chargeable with liabilities arising out of any other business of
the Company. They may, however, be subject to liabilities arising
from subaccounts whose assets we attribute to other variable annuity
contracts supported by Account B. If the assets in Account B exceed
the required reserves and other liabilities, we may transfer the
excess to our general account. We are obligated to pay all benefits
and make all payments provided under the Contracts.
We currently offer other variable annuity contracts that invest in
Account B but are not discussed in this prospectus. Account B may
also invest in other investment portfolios which are not available
under your Contract.
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THE INVESTMENT PORTFOLIOS
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During the accumulation phase, you may allocate your premium payments
and contract value to any of the 24 investment portfolios listed
below. YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE
TO THE INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market
conditions. MORE DETAILED INFORMATION ABOUT THE INVESTMENT
PORTFOLIOS CAN BE FOUND IN THE PROSPECTUSES FOR THE GCG TRUST AND THE
PIMCO TRUST. YOU SHOULD READ THESE PROSPECTUSES BEFORE INVESTING.
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INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- -----------------------------------------------------------------------
Liquid Asset Seeks high level of current income consistent with
the preservation of capital and liquidity.
Invests primarily in obligations of the U.S.
Government and its agencies and
instrumentalities, bank obligations,
commercial paper and short-term corporate debt
securities. All securities will mature in
less than one year.
-------------------------------------------------------
Limited Maturity Seeks highest current income consistent with
Bond low risk to principal and liquidity.
Also seeks to enhance its total return through capital
appreciation when market factors, such as
falling interest rates and rising bond prices,
indicate that capital appreciation may be
available without significant risk to
principal.
Invests primarily in diversified limited maturity debt
securities with average maturity dates of five
years or shorter and in no cases more than
seven years.
-------------------------------------------------------
Global Fixed Seeks high total return.
Income Invests primarily in high-grade fixed income
securities, both foreign and domestic.
-------------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
-------------------------------------------------------
Equity Income Seeks substantial dividend income as well as long-
term growth of capital.
Invests primarily in common stocks of well-
established companies paying above-average
dividends.
-------------------------------------------------------
Fully Managed Seeks, over the long term, a high total investment
return consistent with the preservation of
capital and with prudent investment risk.
Invests primarily in the common stocks of
established companies believed by the
portfolio manager to have above-average
potential for capital growth.
-------------------------------------------------------
Rising Dividends Seeks capital appreciation. A secondary
objective is dividend income.
Invests in equity securities that meet the
following quality criteria: regular dividend
increases; 35% of earnings reinvested
annually; and a credit rating of "A" to "AAA".
-------------------------------------------------------
Growth & Income Seeks long-term total return.
Invests primarily in common stocks of
companies where the potential for change
(earnings acceleration) is significant.
-------------------------------------------------------
Growth Seeks capital appreciation.
Invests primarily in common stocks of growth companies
that have favorable relationships between price/earnings
ratios and growth rates in sectors offering the
potential for above-average returns.
-------------------------------------------------------
Value Equity Seeks capital appreciation. Dividend income
is a secondary objective.
Invests primarily in common stocks of domestic
and foreign issuers which meet quantitative
standards relating to financial soundness and
high intrinsic value relative to price.
-------------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
-------------------------------------------------------
Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
-------------------------------------------------------
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Capital Seeks long-term capital growth.
Appreciation Invests primarily in equity securities
believed by the portfolio manager to be
undervalued.
-------------------------------------------------------
Small Cap Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies that have a total market
capitalization within the range of companies
in the Russell 2000 Growth Index or the
Standard & Poor's Small-Cap 600 Index.
-------------------------------------------------------
Real Estate Seeks capital appreciation. Current income is a
secondary objective.
Invests primarily in publicly-traded real
estate equity securities.
-------------------------------------------------------
Hard Assets Seeks long-term capital appreciation.
Invests primarily in hard asset securities.
Hard asset companies produce a commodity which
the portfolio manager is able to price on a
daily or weekly basis.
-------------------------------------------------------
Managed Global Seeks capital appreciation. Current income is
only an incidental consideration.
Invests primarily in common stocks traded in
securities markets throughout the world.
-------------------------------------------------------
Developing World Seeks capital appreciation.
Invests primarily in equity securities of
companies in developing or emerging countries.
-------------------------------------------------------
Emerging Markets Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies in at least six different emerging
market countries.
-------------------------------------------------------
PIMCO High Yield Seeks to maximize total return, consistent with
Bond preservation of capital and prudent investment
management.
Invests in at least 65% of its assets in a diversified
portfolio of junk bonds rated at least B by
Moody's Investor Services, Inc. or Standard &
Poor's or, if unrated, determined by the
portfolio manager to be of comparable quality.
-------------------------------------------------------
PIMCO StocksPLUS Seeks to achieve a total return which exceeds
Growth and Income the total return performance of the S&P 500.
Invests primarily in common stocks, options,
futures, options on futures and swaps.
-------------------------------------------------------
As of May 1, 1999, we no longer offer the following two portfolios:
All-Growth Seeks capital appreciation.
Invests primarily in growth securities of
middle-range capitalization companies.
-------------------------------------------------------
Growth Seeks capital appreciation.
Opportunities Invests primarily in equity securities of
domestic companies emphasizing companies with
market capitalizations of $1 billion or more.
-------------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust and PIMCO serves as the overall adviser to the PIMCO Trust.
Directed Services, Inc. and PIMCO provide or procure, at their own
expense, the services necessary for the operation of the portfolios.
See the cover page of this prospectus for the names
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of the corresponding portfolio managers. Directed Services, Inc. and PIMCO
do not bear the expense of brokerage fees and other transactional
expenses for securities, taxes (if any) paid by a portfolio, interest
on borrowing, fees and expenses of the independent trustees, and
extraordinary expenses, such as litigation or indemnification
expenses.
The GCG Trust pays Directed Services, Inc. for its services a monthly
fee based on the annual rates of the average daily net assets of the
investment portfolios. Directed Services, Inc. (and not the GCG
Trust) in turn pays each portfolio manager a monthly fee for managing
the assets of the portfolios.
The PIMCO Trust pays PIMCO a monthly advisory fee and a monthly
administrative fee of 0.25% based on the average daily net assets of
each of the investment portfolios for managing the assets of the
portfolios and for administering the PIMCO Trust.
MORE DETAILED INFORMATION ABOUT EACH PORTFOLIO'S MANAGEMENT FEES CAN
BE FOUND IN THE PROSPECTUSES FOR EACH TRUST. YOU SHOULD READ THESE
PROSPECTUSES BEFORE INVESTING.
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THE ANNUITY CONTRACT
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The Contract described in this prospectus is a deferred variable
annuity contract. The Contract provides a means for you to invest in
one or more of the available mutual fund portfolios of the GCG Trust
and the PIMCO Trust funded by Account B.
CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase
and the income phase. The accumulation phase is the period between
the contract date and the annuity start date. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless
another annuitant is named in the application. You have the rights
and options described in the Contract. One or more persons may own
the Contract. If there are multiple owners named, the age of the
oldest owner will determine the applicable death benefit if such
death benefit is available for multiple owners.
The death benefit becomes payable when you or the annuitant dies. In
the case of a sole contract owner who dies before the income phase
begins, we will pay the beneficiary the death benefit then due. The
sole contract owner's estate will be the beneficiary if no
beneficiary has been designated or the beneficiary has predeceased
the contract owner. In the case of a joint owner of the Contract
dying before the income phase begins, we will designate the surviving
contract owner as the beneficiary. This will override any previous
beneficiary designation.
JOINT OWNER. For non-qualified Contracts only, joint owners may
be named in a written request before the Contract is in effect.
Joint owners may independently exercise transfers and other
transactions allowed under the Contract. All other rights of
ownership must be exercised by both owners. Joint owners own equal
shares of any benefits accruing or payments made to them. All rights
of a joint owner end at death of that owner if the other joint owner
survives. The entire interest of the deceased joint owner in the
Contract will pass to the surviving joint owner. The age of the
older owner will determine the applicable death benefit.
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ANNUITANT
The annuitant is the person designated by you to be the measuring
life in determining annuity payments. The annuitant's age determines
when the income phase must begin and the amount of the annuity
payments to be paid. You are the annuitant unless you choose to name
another person. The annuitant may not be changed after the Contract
is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date. If the
annuitant dies before the annuity start date, and a contingent
annuitant has been named, the contingent annuitant becomes the
annuitant (unless the contract owner is not an individual, in which
case the death benefit becomes payable).
If there is no contingent annuitant when the annuitant dies before
the annuity start date and the contract owner is not an individual,
we will pay the designated beneficiary the death benefit then due.
If a beneficiary has not been designated, or if there is no
designated beneficiary living, the contract owner will be the
beneficiary. If the annuitant was the sole contract owner and there
is no beneficiary designation, the annuitant's estate will be the
beneficiary.
Regardless of whether a death benefit is payable, if the annuitant
dies and any contract owner is not an individual, distribution rules
under federal tax law will apply. You should consult your tax
advisor for more information if you are not an individual.
BENEFICIARY
The beneficiary is named by you in a written request. The
beneficiary is the person who receives any death benefit proceeds and
who becomes the successor contract owner if the contract owner or the
annuitant dies before the annuity start date. We pay death benefits
to the primary beneficiary (unless there are joint owners, in which
case death proceeds are payable to the surviving owner(s)).
If the beneficiary dies before the annuitant or the contract owner,
the death benefit proceeds are paid to the contingent beneficiary, if
any. If there is no surviving beneficiary, we pay the death benefit
proceeds to the contract owner's estate.
One or more persons may be a beneficiary or contingent beneficiary.
In the case of more than one beneficiary, we will assume any death
benefit proceeds are to be paid in equal shares to the surviving
beneficiaries.
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and
the guaranteed death benefit. You may also change the beneficiary.
All requests for changes must be in writing and submitted to our
Customer Service Center in good order. The change will be effective
as of the day you sign the request. The change will not affect any
payment made or action taken by us before recording the change.
PURCHASE AND AVAILABILITY OF THE CONTRACT
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
The initial premium payment must be $25,000 or more. You may make
additional payments of at least $500 or more ($250 for qualified
Contracts) at any time after the free look period before you turn age
85. We may refuse a premium payment if an initial premium or the sum
of all premium payments is more than $1,500,000.
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CREDITING OF PREMIUM PAYMENTS
We will allocate your initial premium within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. Subsequent premium payments
will be credited to a Contract within 1 business day if they are
received in good order. In certain states we also accept initial and
additional premium payments by wire order. Wire transmittals must be
accompanied by sufficient electronically transmitted data. We may
retain premium payments for up to 5 business days while attempting to
complete an incomplete application. If the application cannot be
completed within this period, we will inform you of the reasons for
the delay. We will also return the premium payment immediately
unless you direct us to hold the premium payment until the
application is completed. Once the completed application is
received, we will allocate the payment to the subaccount(s) and/or
Fixed Interest Allocation(s) specified by you within 2 business days.
We will make inquiry to discover any missing information related to
subsequent payments. For any subsequent premium payments, the
payment will be credited at the accumulation unit value next
determined after receipt of your premium payment.
Once we allocate your premium payment to the subaccounts selected by
you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held with respect to the Contract. The net investment results of
each subaccount vary with its investment performance.
If your premium payment was transmitted by wire order from your
broker-dealer, we will follow one of the following two procedures
after we receive and accept the wire order and investment
instructions. The procedure we follow depends on state availability
and the procedures of your broker-dealer.
(1)If either your state or broker-dealer do not permit us to
issue a Contract without an application, we reserve the right
to rescind the Contract if we do not receive and accept a
properly completed application or enrollment form within 15
days of the premium payment. If we do not receive the
application or form within 15 days of the premium payment, we
will refund the contract value plus any charges we deducted,
and the Contract will be voided. Some states require that we
return the premium paid, in which case we will comply.
(2)If your state and broker-dealer allow us to issue a Contract
without an application, we will issue and mail the Contract to
you, together with an Application Acknowledgement Statement
for your execution. Until our Customer Service Center
receives the executed Application Acknowledgement Statement,
neither you nor the broker-dealer may execute any financial
transactions on your Contract unless they are requested in
writing by you.
In some states, we may require that an initial premium designated for
a subaccount of Account B be allocated to a subaccount specially
designated by the Company (currently, the Liquid Asset subaccount)
during the free look period. After the free look period, we will
convert your contract value (your initial premium plus any earnings
less any expenses) into accumulation units of the subaccounts you
previously selected. The accumulation units will be allocated based
on the accumulation unit value next computed for each subaccount.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the
contract value in the subaccount in which you are invested is equal
to the initial premium paid and designated to be allocated to the
subaccount. On the contract date, we allocate your contract value to
each subaccount specified by you, unless the Contract is issued in a
state that requires the return of premium payments during the free
look period, in which case, the portion of your initial premium will
be allocated to a subaccount specially designated by the Company
during the free look period for this purpose (currently, the Liquid
Asset subaccount).
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On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1)We take the contract value in the subaccount at the end of the
preceding business day.
(2)We multiply (1) by the subaccount's Net Investment Factor
since the preceding business day.
(3)We add (1) and (2).
(4)We add to (3) any additional premium payments, and then add or
subtract transfers (and any related charges) to or from that
subaccount.
(5)We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, any distribution fee, and
any charge for premium taxes.
CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
incurred distribution fee (annual sales load), any charge for premium
taxes, and any other charges incurred but not yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt
of your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Liquid Asset
subaccount) prior to processing the surrender. This transfer will
have no effect on your cash surrender value. You may receive the
cash surrender value in a single sum payment or apply it under one or
more annuity options. We will usually pay the cash surrender value
within 7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the Securities and Exchange
Commission (and any other regulatory agency, if required) substitute
another portfolio for existing and future investments.
We also reserve the right to: (i) deregister Account B under the 1940
Act; (ii) operate Account B as a management company under the 1940
Act if it is operating as a unit investment trust; (iii) operate
Account B as a unit investment trust under the 1940 Act if it is
operating as a managed separate account; (iv) restrict or eliminate
any voting rights as to Account B; and (v) combine Account B with
other accounts.
We will, of course, provide you with written notice before any of
these changes are effected.
OTHER CONTRACTS
We offer other variable annuity contracts that also invest in the
same portfolios of the Trusts. These contracts have different
charges that could effect their performance, and may offer different
benefits more
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suitable to your needs. To obtain more information about these other
contracts, contact our Customer Service Center or your registered
representative.
OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death
Benefit," "Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
- --------------------------------------------------------------------------
Any time during the accumulation phase and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if you request a withdrawal for more than 90% of the cash
surrender value, we will treat it as a request to surrender the
Contract. If you take more than one regular withdrawal during a
contract year, we impose a withdrawal charge for each additional
withdrawal. See "Charges and Fees Withdrawal Charge."
You need to submit to us a written request specifying the subaccounts
from which amounts are to be withdrawn, otherwise the withdrawal will
be made on a pro rata basis from all of the subaccounts in which you
are invested. We will determine the contract value as of the close
of business on the day we receive your withdrawal request at our
Customer Service Center. The contract value may be more or less than
the premium payments made.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Liquid Asset
subaccount) prior to processing the withdrawal. This transfer will
not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $1,000. If you take more than one
regular withdrawal in a contract year, we impose a charge of the
lesser of $25 and 2.0% of each additional amount withdrawn. A
regular withdrawal or a combination of a regular withdrawal or a
combination of a regular withdrawal and systematic withdrawals
received or expected to be received during the contract year may not
exceed 25% of the contract value as of the date of the current
withdrawal. Also, any combination of a regular withdrawal and IRA
withdrawals received or expected to be received during a contract
year may not exceed 25% of the contract value as of the date of the
regular withdrawal.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatic systematic withdrawals on a
monthly or quarterly basis from the contract value in the subaccounts
in which you are invested. You may elect payments to start as early
as 28 days after the contract date. You choose the date on which the
withdrawals will be made but this date cannot be later than the 28th
day of the month. If you do not choose a date, we will make the
withdrawals on the same calendar day of each month as the contract
date. Each withdrawal payment must be at least $100.
The amount of your withdrawal can either be a (i) fixed dollar
amount, or (ii) an amount based on a percentage of the contract value
from the subaccounts in which you are invested. Both options are
subject to the following maximums:
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FREQUENCY MAXIMUM PERCENTAGE
--------- ------------------
Monthly 1.25%
Quarterly 3.75%
If you select a fixed dollar amount and the amount to be
systematically withdrawn would exceed the applicable maximum
percentage of your contract value on the withdrawal date, we will
reduce the amount withdrawn so that it equals such percentage. If
you select a percentage and the amount to be systematically withdrawn
based on that percentage would be less than the minimum of $100, we
will increase the amount to $100 provided it does not exceed the
maximum percentage. If it is below the maximum percentage we will
send the $100. If it is above the maximum percentage we will send
the amount, and then cancel the option.
You may change the amount or percentage of your systematic withdrawal
once each contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have
this option commence in a contract year where a regular withdrawal
has been taken, but you may not change the amount or percentage of
your withdrawals in any contract year during which you have
previously taken a regular withdrawal. You may not elect this if you
are taking IRA withdrawals.
In no event may a systematic partial withdrawal or a combination of a
regular withdrawal and systematic partial withdrawals received or
expected to be received during the contract year, exceed 25% of the
accumulation value as of the date of the current withdrawal.
IRA WITHDRAWALS
If you have a non-Roth IRA Contract, and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by Federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at
that time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do
not elect to take IRA withdrawals, and distributions are required by
Federal tax law, distributions adequate to satisfy the requirements
imposed by Federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw
is $100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is
less than $100, we will pay $100. At any time where the IRA
withdrawal amount is greater than the contract value, we will cancel
the Contract and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once
each contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISOR REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. You are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
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TRANSFERS AMONG YOUR INVESTMENTS
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You may transfer your contract value among the subaccounts in which
you are invested at the end of the free look period until the annuity
start date. We currently do not charge you for transfers made during
a contract year, but reserve the right to charge $25 for each
transfer after the twelfth transfer in a contract year. We also
reserve the right to limit the number of transfers you may make and
may otherwise modify or terminate transfer privileges if required by
our business judgment or in accordance with applicable law.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value held in a subaccount.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account B and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program if
you have at least $10,000 of contract value in the Limited Maturity
Bond subaccount or the Liquid Asset subaccount. These subaccounts
serve as the source accounts from which we will, on a monthly basis,
automatically transfer a set dollar amount of money to other
subaccounts selected by you.
The dollar cost averaging program is designed to lessen the impact of
market fluctuation on your investment. Since we transfer the same
dollar amount to other subaccounts each month, more units of a
subaccount are purchased if the value of its unit is low and less
units are purchased if the value of its unit is high. Therefore, a
lower than average value per unit may be achieved over the long term.
However, we cannot guarantee this. When you elect the dollar cost
averaging program, you are continuously investing in securities
regardless of fluctuating price levels. You should consider your
tolerance for investing through periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $250. If your source account
is the Limited Maturity Bond subaccount or the Liquid Asset
subaccount, the maximum amount that can be transferred each month is
your contract value in such source account divided by 12.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money
to the subaccounts in which you are invested on a proportional basis.
The transfer date is the same day each month as your contract date.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the dollar cost averaging program at any time by
sending satisfactory notice to our Customer Service Center at least 7
days before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, suspend or
terminate this program. Of course, such change will not affect any
dollar cost averaging programs in operation at the time.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PHASE
If the contract owner or the annuitant die before the annuity start
date, we will pay your beneficiary the death benefit proceeds under
the Contract unless the beneficiary is the surviving spouse and
elects to continue the Contract.
If the contract owner or the annuitant is NOT MORE THAN 75 YEARS OLD
(80 years old for Contracts with a contract date before November 6,
1992) at the time of purchase, the death benefit is the greater of:
1) the contract value; and
2) the guaranteed death benefit, which we determine as follows: we
credit interest each business day at the 7% annual effective
rate to the guaranteed death benefit from the preceding day
(which would be the initial premium if the preceding day is
the contract date), then we add additional premiums paid since
the preceding day, then we subtract any withdrawals made since
the preceding day. The maximum guaranteed death benefit is 2
times all premium payments, less an amount to reflect total
withdrawals taken. The actual interest rate for calculating
the death benefit for the Liquid Asset subaccount will be the
lesser of the 7% annual effective rate or the net rate of
return for the subaccount during the applicable period.
If the contract owner or the annuitant is AGE 76 OR OLDER at the time
of purchase (age 81 or older for Contracts with a contract date
before November 6, 1992), the death benefit is the greater of:
1) the cash surrender value; and
2) the total premium payments made under the Contract after
subtracting any withdrawals.
If you purchased the Contract in North Carolina before November 6,
1992, the following death benefit applies: if the contract owner or
the annuitant are both age 80 or younger at the time of purchase, the
death benefit is the greater of: (1) the contract value: and (2) the
total premium payments made under the contract after subtracting any
withdrawals. If the contract owner or the annuitant is age 81 or
older at the time of purchase, the death benefit is the greater of:
(1) the cash surrender value; and (2) the total premium payments made
under the contract subtracting any withdrawals.
The death benefit value is calculated at the close of the business
day on which we receive due proof of death at our Customer Service
Center. If your beneficiary elects to delay receipt of the death
benefit until a date after the time of your death, the amount of the
benefit payable in the future may be affected. The proceeds may be
received in a single sum or applied to any of the annuity options.
If we do not receive a request to apply the death benefit proceeds to
an annuity option, we will make a single sum distribution. We will
generally pay death proceeds within 7 days after our Customer Service
Center has received sufficient information to make the payment.
HOW TO CLAIM PAYMENTS TO BENEFICIARY
We must receive due proof of the death of the annuitant or owner
(such as an official death certificate) at our Customer Service
Center before we will make any payments to the beneficiary. We will
calculate the death benefit as of the date we receive due proof of
death. The beneficiary should contact our Customer Service Center
for instructions.
WHEN WE MAKE PAYMENTS
We will pay death benefit proceeds and cash surrender value within
seven days after our Customer Service Center receives all the
information needed to process the payment.
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DEATH BENEFIT DURING THE INCOME PHASE
If the contract owner or the annuitant dies after the annuity start
date, the Company will pay the beneficiary any certain benefit
remaining under the annuity in effect at the time.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and
for bearing various risks associated with the Contracts. The amount
of a charge will not always correspond to the actual costs
associated. For example, the surrender charge collected may not
fully cover all of the distribution expenses incurred by us with the
service or benefits provided. In the event there are any profits
from fees and charges deducted under the Contract, we may use such
profits to finance the distribution of contracts.
CHARGE DEDUCTION SUBACCOUNT
You may elect to have all charges against your contract value
deducted directly from a single subaccount designated by the Company.
Currently we use the Liquid Asset subaccount for this purpose. If
you do not elect this option, or if the amount of the charges is
greater than the amount in the designated subaccount, the charges
will be deducted as discussed below. You may cancel this option at
any time by sending satisfactory notice to our Customer Service
Center.
CHARGES DEDUCTED FROM THE CONTRACT VALUE
We deduct the following charges from your contract value:
DISTRIBUTION FEE. We deduct a sales load in an annual amount of
0.65% of each premium at the end of each contract year for a period
of 10 years from the date we receive and accept each premium payment.
PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of
when the annuity payments begin. In those states we may defer
collection of the premium taxes from your contract value and deduct
it on surrender of the Contract, on excess withdrawals or on the
annuity start date.
TRANSFER CHARGE. We currently do not deduct any charges for
transfers made during a contract year. We have the right, however,
to assess up to $25 fee for each transfer after the twelfth transfer
in a contract year. If such charge is assessed, we would deduct the
charge from the subaccounts from which each such transfer is made in
proportion to the amount being transferred from each such subaccount,
unless you have chosen to have all charges deducted from a single
subaccount. The charge will not apply to any transfers due to the
election of dollar cost averaging and confirm the automatic
rebalancing is not available transfers we make to and from any
subaccount specially designated by the Company for such purpose.
WITHDRAWAL CHARGE. If you take more than one regular withdrawal
during a contract year, we impose a charge of the lesser of $25 and
2.0% of the amount withdrawn for each additional regular withdrawal.
The charge is deducted from the subaccounts from which each such
regular withdrawal is made in proportion to the amount being
withdrawn from each subaccount, unless you have chosen to use the
Liquid Asset subaccount.
CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. The daily charge is at the
rate of 0.003446% (equivalent to an annual rate of 1.25%) of the
assets you have in each subaccount.
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ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of 0.000276% (equivalent to an annual rate of 0.10%) on the
assets in each subaccount.
TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
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THE ANNUITY OPTIONS
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ANNUITIZATION OF YOUR CONTRACT
If the annuitant and contract owner are living on the annuity start
date, we will begin making payments to the contract owner under an
income plan. We will make these payments under the annuity option
chosen. You may change an annuity option by making a written request
to us at least 30 days before the annuity start date. The amount of
the payments will be determined by applying your contract value on
the annuity start date in accordance with the annuity option you
chose.
You may also elect an annuity option on surrender of the Contract for
its cash surrender value or you may choose one or more annuity
options for the payment of death benefit proceeds while it is in
effect and before the annuity start date. If, at the time of the
contract owner's death or the annuitant's death (if the contract
owner is not an individual), no option has been chosen for paying
death benefit proceeds, the beneficiary may choose an annuity option
within 60 days. In all events, payments of death benefit proceeds
must comply with the distribution requirements of applicable federal
tax law.
The minimum monthly annuity income payment that we will make is $20.
We may require that a single sum payment be made if the contract
value is less than $2,000 or if the calculated monthly annuity income
payment is less than $20.
For each annuity option we will issue a separate written agreement
putting the annuity option into effect. Before we pay any annuity
benefits, we require the return of your Contract. If your Contract
has been lost, we will require that you complete and return the
applicable lost Contract form. Various factors will affect the level
of annuity benefits, such as the annuity option chosen, the
applicable payment rate used and the investment performance of the
portfolios.
Our current annuity options provide only for fixed payments. Fixed
annuity payments are regular payments, the amount of which is fixed
and guaranteed by us. Some fixed annuity options provide fixed
payments either for a specified period of time or for the life of the
annuitant. The amount of life income payments will depend on the
form and duration of payments you chose, the age of the annuitant or
beneficiary (and gender, where appropriate) and the applicable
payment rate.
Our approval is needed for any option where:
(1)The person named to receive payment is other than the contract
owner or beneficiary;
(2)The person named is not a natural person, such as a corporation;
or
(3)Any income payment would be less than the minimum annuity income
payment allowed.
SELECTING THE ANNUITY START DATE
You select the date on which the annuity payments commence. The
annuity start date must be at least 3 years from the contract date,
but before the month immediately following the annuitant's 90th
birthday. If, on the annuity start date, a surrender charge remains,
the elected annuity option must include a period certain of at least
5 years.
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If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday.
If the annuity start date occurs when the annuitant is at an advanced
age, such as over age 85, it is possible that the Contract will not
be considered an annuity for federal tax purposes. See "Federal Tax
Considerations" and the Statement of Additional Information. For a
Contract purchased in connection with a qualified plan, other than a
Roth IRA, distributions must commence not later than April 1st of the
calendar year following the calendar year in which you attain age 70
1/2 or, in some cases, retire. Distributions may be made through
annuitization or withdrawals. Consult your tax advisor.
FREQUENCY OF ANNUITY PAYMENTS
You choose the frequency of the annuity payments. They may be
monthly, quarterly, semi-annually or annually. If we do not receive
written notice from you, we will make the payments monthly. There
may be certain restrictions on minimum payments that we will allow.
THE ANNUITY OPTIONS
We offer the 4 annuity options shown below. Payments under Options
1, 2 and 3 are fixed. Payments under Option 4 may be fixed or
variable. For a fixed annuity option, the contract value in the
subaccounts is transferred to the Company's general account.
OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make
monthly payments in equal installments for a fixed number of years
based on the contract value on the annuity start date. We guarantee
that each monthly payment will be at least the amount stated in your
Contract. If you prefer, you may request that payments be made in
annual, semi-annual or quarterly installments. We will provide you
with illustrations if you ask for them. If the cash surrender value
or contract value is applied under this option, a 10% penalty tax may
apply to the taxable portion of each income payment until the
contract owner reaches age 59 1/2.
OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Payment is made
for the life of the annuitant in equal monthly installments and
guaranteed for at least a period certain such as 10 or 20 years.
Other periods certain may be available to you on request. You may
choose a refund period instead. Under this arrangement, income is
guaranteed until payments equal the amount applied. If the person
named lives beyond the guaranteed period, payments continue until his
or her death. We guarantee that each payment will be at least the
amount specified in the Contract corresponding to the person's age on
his or her last birthday before the annuity start date. Amounts for
ages not shown in the Contract are available if you ask for them.
OPTION 3. JOINT LIFE INCOME. This option is available when there
are 2 persons named to determine annuity payments. At least one of
the persons named must be either the contract owner or beneficiary of
the Contract. We guarantee monthly payments will be made as long as
at least one of the named persons is living. There is no minimum
number of payments. Monthly payment amounts are available if you ask
for them.
OPTION 4. ANNUITY PLAN. The contract value can be applied to any
other annuitization plan that we choose to offer on the annuity start
date.
PAYMENT WHEN NAMED PERSON DIES
When the person named to receive payment dies, we will pay any
amounts still due as provided in the annuity agreement between you
and Golden American. The amounts we will pay are determined as
follows:
(1)For Option 1, or any remaining guaranteed payments under Option
2, we will continue payments. Under Options 1 and 2, the
discounted values of the remaining guaranteed payments may be
paid in a single sum. This means we deduct the amount of the
interest each remaining guaranteed payment would have earned had
it not been paid out early. The discount interest rate is never
less than 3% for Option 1 and 3.50% for Option 2 per year. We
will, however, base the discount interest rate on the
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interest rate used to calculate the payments for Options 1 and 2 if such
payments were not based on the tables in the Contract.
(2)For Option 3, no amounts are payable after both named persons
have died.
(3)For Option 4, the annuity option agreement will state the amount
we will pay, if any.
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account B
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS
The Company reserves the right to suspend or postpone the date of any
payment or determination of values on any business day (1) when the
New York Stock Exchange is closed; (2) when trading on the New York
Stock Exchange is restricted; (3) when an emergency exists as
determined by the Securities and Exchange Commission so that the sale
of securities held in Account B may not reasonably occur or so that
the Company may not reasonably determine the value of Account B's net
assets; or (4) during any other period when the Securities and
Exchange Commission so permits for the protection of security
holders.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
OTHER CONTRACT CHANGES
You may change the contract to another annuity plan subject to our
rules at the time of the change.
FREE LOOK
You may cancel your Contract within your 10-day free look period. We
deem the free look period to expire 15 days after we mail the
Contract to you. Some states may require a longer free look period.
To cancel, you need to send your Contract to our Customer Service
Center or to the agent from whom you purchased it. We will refund
the contract value, including a refund of any charges deducted. The
Contract will be void as of the day we receive your Contract and your
request. Some states require that we return the premium paid rather
than the contract value. In these states, your premiums designated
for investment in the subaccounts will be allocated during the free
look period to a subaccount specially designated by the
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Company for this purpose (currently, the Liquid Asset subaccount). If you
exercise your right to cancel, we will return the greater of (a) the
premium invested and (b) the contract value plus any amounts deducted
under the Contract or by the Trust for taxes, charges or fees. We
may, in our discretion, require that premiums designated for
investment in the subaccounts from all other states be allocated to
the specially designated subaccount during the free look period. If
you keep your Contract after the free look period, we will put your
money in the subaccount(s) chosen by you, based on the accumulation
unit value next computed for each subaccount, chosen by you.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
administration, and mortality and expense risk charges. We may also
change the minimum initial and additional premium requirements, or
offer an alternative or reduced death benefit.
SELLING THE CONTRACT
Directed Services, Inc. ("DSI")is principal underwriter and distributor of
the Contract as well as for other contracts issued through Account B
and other separate accounts of Golden American. We pay DSI
for acting as principal underwriter under a distribution agreement
who in turn pays the writing agent. DSI enters into sales agreements
with broker-dealers to sell the Contracts through registered
representatives who are licensed to sell securities and variable
insurance products. These broker-dealers are registered with the SEC
and are members of the National Association of Securities Dealers, Inc.
DSI receives commissions of up to 0.75% of average annual contact assets
per year over the life of the contract, and passes through 100% of
the commission to the broker-dealer whose registered representative
sold the contract.
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Underwriter Compensation
|----------------------------------------------------------------------------|
| NAME OF PRINCIPAL | AMOUNT OF | OTHER |
| UNDERWRITER | COMMISSION TO BE PAID | COMPENSATION |
|-------------------------|-----------------------|--------------------------|
| Directed Services, Inc. | Maximum of 0.75% | Reimbursement of any |
| | of average annual | covered expenses incurred|
| | contract assets | by registered |
| | per year | representatives in |
| | over the life of the | connection with |
| | contract. | the distribution |
| | | of the Contracts. |
|----------------------------------------------------------------------------|
Certain sales agreements may provide for a combination of a certain
percentage of commission at the time of sale and an annual trail
commission (which when combined could exceed the above maximum).
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OTHER INFORMATION
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VOTING RIGHTS
We will vote the shares of a Trust owned by Account B according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are
permitted to vote the shares of a Trust in our own right, we may
decide to do so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
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instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account B which are not attributable to
contract owners in the same proportion.
YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Golden American and Account B could be adversely affected if the
computer systems doing the accounts processing or on which Golden
American and/or Account B relies do not properly process and
calculate date-related information related to the end of the year
1999. This is commonly known as the Year 2000 (or Y2K) Problem.
Golden American is taking steps that it believes are reasonably
designed to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain satisfactory assurances
that comparable steps are being taken by its and Account B's major
service providers. At this time, however, we cannot guarantee that
these steps will be sufficient to avoid any adverse impact on Golden
American and Account B.
STATE REGULATION
We are regulated by the Insurance Department of the State of
Delaware. We are also subject to the insurance laws and regulations
of all jurisdictions where we do business. The variable Contract
offered by this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
The Company, like other insurance companies, may be involved in
lawsuits, including class action lawsuits. In some class action and
other lawsuits involving insurers, substantial damages have been
sought and/or material settlement payments have been made. We
believe that currently there are no pending or threatened lawsuits
that are reasonably likely to have a material adverse impact on the
Company or Account B.
LEGAL MATTERS
The legal validity of the Contracts was passed on by Myles R.
Tashman, Esquire, Executive Vice President, General Counsel and
Secretary of Golden American. Sutherland Asbill & Brennan LLP of
Washington, D.C. has provided advice on certain matters relating to
federal securities laws.
EXPERTS
The audited financial statements of Golden American Life Insurance
Company and Account B appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in
the Statement of Additional Information and in the Registration
Statement and are included or incorporated by reference in reliance
upon such reports given upon the authority of such firm as experts in
accounting and auditing.
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FEDERAL TAX CONSIDERATIONS
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The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete
information. This discussion is based upon our understanding of the
present federal income tax laws. We do not make any representations
as to the likelihood of continuation of the present federal income
tax laws or as to how they may be interpreted by the IRS.
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TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The
ultimate effect of federal income taxes on the amounts held under a
Contract, or annuity payments, depends on the type of retirement
plan, on the tax and employment status of the individual concerned,
and on our tax status. In addition, certain requirements must be
satisfied in purchasing a qualified Contract with proceeds from a tax-
qualified plan and receiving distributions from a qualified Contract
in order to continue receiving favorable tax treatment. Some
retirement plans are subject to distribution and other requirements
that are not incorporated into our Contract administration
procedures. Contract owners, participants and beneficiaries are
responsible for determining that contributions, distributions and
other transactions with respect to the Contract comply with
applicable law. Therefore, you should seek competent legal and tax
advice regarding the suitability of a Contract for your particular
situation. The following discussion assumes that qualified Contracts
are purchased with proceeds from and/or contributions under
retirement plans that qualify for the intended special federal income
tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in
order for the Contracts to be treated as annuity contracts for
federal income tax purposes. It is intended that Account B, through
the subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account B assets,
we reserve the right to modify the Contracts as necessary to prevent
a contract owner from being treated as the owner of the Account B
assets supporting the Contract.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until
a distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not
a natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
24
<PAGE>
<PAGE>
(generally, the premiums or other consideration paid for the
contract) during the taxable year. There are some exceptions to this
rule and a prospective contract owner that is not a natural person
may wish to discuss these with a tax adviser. The following
discussion generally applies to Contracts owned by natural persons.
WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income
subject to tax up to an amount equal to the excess (if any) of the
contract value (unreduced by the amount of any surrender charge)
immediately before the distribution over the contract owner's
investment in the Contract at that time. The tax treatment of market
value adjustments is uncertain. You should consult a tax adviser if
you are considering taking a withdrawal from your Contract in
circumstances where a market value adjustment would apply.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
o made on or after the taxpayer reaches age 59 1/2;
o made on or after the death of a contract owner;
o attributable to the taxpayer's becoming disabled; or
o made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is
taxed as ordinary income. The non-taxable portion of an annuity
payment is generally determined in a manner that is designed to allow
you to recover your investment in the Contract ratably on a tax-free
basis over the expected stream of annuity payments, as determined
when annuity payments start. Once your investment in the Contract
has been fully recovered, however, the full amount of each annuity
payment is subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the
same manner as a surrender of the Contract, or (ii) if distributed
under a payment option, they are taxed in the same way as annuity
payments.
TRANSFERS, ASSIGNMENTS, EXCHANGES AND ANNUITY DATES OF A CONTRACT.
A transfer or assignment of ownership of a Contract, the designation
of an annuitant, the selection of certain dates for commencement of
the annuity phase, or the exchange of a Contract may result in
certain tax consequences to you that are not discussed herein. A
contract owner contemplating any such transfer, assignment or
exchange, should consult a tax advisor as to the tax consequences.
WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld
from distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one non-qualified deferred
annuity contract for purposes of determining the amount includible in
such contract owner's income when a taxable distribution occurs.
25
<PAGE>
<PAGE>
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment
may be available for certain types of contributions and
distributions. Adverse tax consequences may result from:
contributions in excess of specified limits; distributions before age
59 1/2 (subject to certain exceptions); distributions that do not
conform to specified commencement and minimum distribution rules; and
in other specified circumstances. Therefore, no attempt is made to
provide more than general information about the use of the Contracts
with the various types of qualified retirement plans. Contract
owners, annuitants, and beneficiaries are cautioned that the rights
of any person to any benefits under these qualified retirement plans
may be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contract, but we shall
not be bound by the terms and conditions of such plans to the extent
such terms contradict the Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth
IRAs, distributions are generally not taxed, except as described
below.
For qualified plans under Section 401(a) and 403(b), the Code
requires that distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) (i) reaches age 70 1/2
or (ii) retires, and must be made in a specified form or manner. If
the plan participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income
tax liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld
from distributions. "Eligible rollover distributions" from section
401(a) plans and section 403(b) tax-sheltered annuities are subject
to a mandatory federal income tax withholding of 20%. An eligible
rollover distribution is the taxable portion of any distribution from
such a plan, except certain distributions that are required by the
Code or distributions in a specified annuity form. The 20%
withholding does not apply, however, if the contract owner chooses a
"direct rollover" from the plan to another tax-qualified plan or IRA.
Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract
as necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
If any owner of a non-qualified Contract dies before the annuity
start date, the death benefit payable to the beneficiary will be
distributed as follows: (a) the death benefit must be completely
distributed within 5 years of the contract owner's date of death; or
(b) the beneficiary may elect, within the 1-year period after the
contract owner's date of death, to receive the death benefit in the
form of an annuity from us, provided that (i) such annuity is
distributed in substantially equal installments over the life of such
beneficiary or over a period not extending beyond the life expectancy
of such beneficiary; and (ii) such distributions begin not later than
1 year after the contract owner's date of death.
26
<PAGE>
<PAGE>
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such
spouse may elect to continue the Contract under the same terms as
before the contract owner's death. Upon receipt of such election
from the spouse at our Customer Service Center: (1) all rights of
the spouse as contract owner's beneficiary under the Contract in
effect prior to such election will cease; (2) the spouse will become
the owner of the Contract and will also be treated as the contingent
annuitant, if none has been named and only if the deceased owner was
the annuitant; and (3) all rights and privileges granted by the
Contract or allowed by Golden American will belong to the spouse as
contract owner of the Contract. This election will be deemed to have
been made by the spouse if such spouse makes a premium payment to the
Contract or fails to make a timely election as described in this
paragraph. If the owner's beneficiary is a nonspouse, the
distribution provisions described in subparagraphs (a) and (b) above,
will apply even if the annuitant and/or contingent annuitant are
alive at the time of the contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year
period starting on the owner's date of death. Such cash payment will
be in full settlement of all our liability under the Contract.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death
of the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and
their employees. These retirement plans may permit the purchase of
the Contracts to accumulate retirement savings under the plans.
Adverse tax or other legal consequences to the plan, to the
participant, or to both may result if this Contract is assigned or
transferred to any individual as a means to provide benefit payments,
unless the plan complies with all legal requirements applicable to
such benefits before transfer of the Contract. Employers intending
to use the Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-
deferred basis into an IRA. There are significant restrictions on
rollover or transfer contributions from Savings Incentive Match Plans
(SIMPLE), under which certain employers may provide contributions to
IRAs on behalf of their employees, subject to special restrictions.
Employers may establish Simplified Employee Pension (SEP) Plans to
provide IRA contributions on behalf of their employees. Sales of the
Contract for use with IRAs may be subject to special requirements of
the IRS.
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions
from a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
27
<PAGE>
<PAGE>
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their
gross income the premium payments made, within certain limits, on a
Contract that will provide an annuity for the employee's retirement.
These premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59
1/2, separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special
rules are provided with respect to other tax situations not discussed
in this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the
law may change. Federal estate and state and local estate,
inheritance and other tax consequences of ownership or receipt of
distributions under a Contract depend on the individual circumstances
of each contract owner or recipient of the distribution. A competent
tax adviser should be consulted for further information.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of
the change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
28
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<PAGE>
[Shaded Section Header]
- --------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------
TABLE OF CONTENTS
ITEM PAGE
Introduction..............................................1
Description of Golden American Life Insurance Company.....1
Safekeeping of Assets.....................................1
The Administrator.........................................1
Independent Auditors......................................1
Distribution of Contracts.................................1
Performance Information...................................2
IRA Withdrawal Option.....................................6
Other Information.........................................6
Financial Statements of Separate Account B................6
Appendix Description of Bond Ratings.................. A-1
- --------------------------------------------------------------------------
PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER; THE
ADDRESS IS SHOWN ON THE PROSPECTUS COVER.
- --------------------------------------------------------------------------
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT B.
Please Print or Type:
--------------------------------------------------
NAME
--------------------------------------------------
SOCIAL SECURITY NUMBER
--------------------------------------------------
STREET ADDRESS
--------------------------------------------------
CITY, STATE, ZIP
(6.0% 5/99 DVA100)
29
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This page intentionally left blank.
92
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<PAGE>
APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"),
(2) the total number of accumulation units, and (3) the total
accumulation unit value, for each subaccount of Golden American
Separate Account B available under the Contract for the indicated
periods. The date on which the subaccount became available to
investors and the starting accumulation unit value are indicated on
the last row of each table. The Managed Global subaccount commenced
operations initially as a subaccount of another separate account, the
Managed Global Account of Separate Account D of Golden American;
however, at the time of conversion the value of an accumulation unit
did not change). As of May 1, 1999, we no longer accept new
allocations into the All-Growth and Growth Opportunities subaccounts.
LIQUID ASSET
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 14.83 50,601 $ 727 |
| 1997 13.87 37,946 526 |
| 1996 13.38 19,543 262 |
| 1995 12.92 70,999 917 |
| 1994 12.41 71,013 881 |
| 1993 12.13 11,507 140 |
| 12/31/92 11.98 __ __ |
| |
|-------------------------------------------------------------|
LIMITED MATURITY BOND
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.81 22,995 $ 387 |
| 1997 15.95 22,582 360 |
| 1996 15.10 32,874 498 |
| 1995 14.13 14,356 212 |
| 1994 13.36 20,243 271 |
| 1993 13.71 55,281 758 |
| 12/31/92 13.09 __ __ |
| |
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
GLOBAL FIXED INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ -- $ |
| 5/1/98 12.08 -- -- |
|-------------------------------------------------------------|
TOTAL RETURN
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.75 6,695 $ 119 |
| 1997 16.12 4,909 79 |
| 1/20/97 13.82 -- -- |
|-------------------------------------------------------------|
EQUITY INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.01 64,749 $ 1,425 |
| 1997 20.61 86,050 1,773 |
| 1996 17.79 99,857 1,777 |
| 1995 16.58 140,336 2,327 |
| 1994 14.13 136,683 1,933 |
| 1993 14.50 36,280 527 |
| 12/31/92 13.22 -- -- |
| |
|-------------------------------------------------------------|
A2
<PAGE>
<PAGE>
FULLY MANAGED
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $20.61 33,313 $ 686 |
| 1997 19.72 36,340 717 |
| 1996 17.33 21,625 375 |
| 1995 15.10 29,312 443 |
| 1994 12.68 32,224 410 |
| 1993 13.86 38,509 534 |
| 12/31/92 13.06 -- -- |
| |
|-------------------------------------------------------------|
RISING DIVIDENDS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.64 92,161 $ 2,086 |
| 1997 20.11 85,890 1,727 |
| 1996 15.70 77,854 1,222 |
| 1995 13.19 50,637 668 |
| 1994 10.20 45,055 460 |
| 1993 10.28 11,960 123 |
| 10/4/93 10.00 -- -- |
|-------------------------------------------------------------|
GROWTH & INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.03 9,399 $ 160 |
| 1997 15.42 9,355 144 |
| 1996 12.49 2,225 28 |
| 9/3/96 10.95 -- -- |
|-------------------------------------------------------------|
A3
<PAGE>
<PAGE>
GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.31 11,112 $ 181 |
| 1997 13.04 2,137 28 |
| 1/20/97 12.01 -- -- |
|-------------------------------------------------------------|
VALUE EQUITY
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $18.32 20,539 $ 376 |
| 1997 18.28 24,986 457 |
| 1996 14.56 27,355 398 |
| 1995 13.34 10,226 136 |
| 1/3/95 10.00 -- -- |
|-------------------------------------------------------------|
RESEARCH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.93 20,718 $ 475 |
| 1997 18.89 10,225 193 |
| 1/20/97 16.51 -- -- |
|-------------------------------------------------------------|
STRATEGIC EQUITY
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.23 22,096 $ 315 |
| 1997 14.31 34,778 498 |
| 1996 11.78 35,219 415 |
| 1995 10.00 26,760 267 |
| 10/2/95 10.00 -- -- |
|-------------------------------------------------------------|
A4
<PAGE>
<PAGE>
CAPITAL APPRECIATION
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $24.55 49,076 $ 1,205 |
| 1997 22.08 46,932 1,036 |
| 1996 17.36 35,436 615 |
| 1995 14.63 26,783 392 |
| 1994 11.40 31,314 357 |
| 1993 11.74 48,394 568 |
| 12/31/92 10.99 -- -- |
| |
|-------------------------------------------------------------|
MID-CAP GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.50 12,309 $ 277 |
| 1997 18.57 5,670 193 |
| 1996 15.74 10,361 89 |
| 9/3/96 14.69 -- -- |
|-------------------------------------------------------------|
SMALL CAP
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.39 18,405 $ 283 |
| 1997 12.90 38,537 497 |
| 1996 11.85 40,332 478 |
| 1/2/96 10.00 -- -- |
|-------------------------------------------------------------|
A5
<PAGE>
<PAGE>
REAL ESTATE
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.82 9,562 $ 209 |
| 1997 25.55 22,395 572 |
| 1996 21.10 14,864 314 |
| 1995 15.80 14,556 230 |
| 1994 13.74 16,064 221 |
| 1993 13.10 7,264 95 |
| 12/31/92 11.32 -- -- |
| |
|-------------------------------------------------------------|
HARD ASSETS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.33 23,997 $ 344 |
| 1997 20.63 32,428 669 |
| 1996 19.70 36,118 712 |
| 1995 14.99 19,158 287 |
| 1994 13.73 22,343 307 |
| 1993 13.57 3,478 47 |
| 12/31/92 9.17 -- -- |
| |
|-------------------------------------------------------------|
MANAGED GLOBAL
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.95 47,894 $ 716 |
| 1997 11.72 76,803 900 |
| 1996 10.59 64,797 686 |
| 1995 9.56 72,375 |
| 1994 9.03 69,795 630 |
| 1993 10.48 63,254 663 |
| 1992 10.01 38,699 |
|10/21/92 10.00 -- -- |
|-------------------------------------------------------------|
A6
<PAGE>
<PAGE>
DEVELOPING WORLD
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ -- $ |
| 5/1/98 10.42 -- -- |
|-------------------------------------------------------------|
EMERGING MARKETS
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 6.52 23,813 $ 155 |
| 1997 8.71 34,350 299 |
| 1996 9.74 28,101 274 |
| 1995 9.20 30,591 281 |
| 1994 10.38 219,810 2,281 |
| 1993 12.40 52,093 646 |
| 10/4/93 10.00 -- -- |
|-------------------------------------------------------------|
PIMCO HIGH YIELD BOND
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ $ |
| 5/1/98 10.00 -- -- |
|-------------------------------------------------------------|
PIMCO STOCKSPLUS GROWTH AND INCOME
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ $ |
| 5/1/98 10.00 -- -- |
|-------------------------------------------------------------|
A7
<PAGE>
<PAGE>
ALL-GROWTH
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.48 23,147 $ 358 |
| 1997 14.33 26,286 377 |
| 1996 13.72 23,840 327 |
| 1995 13.98 46,215 647 |
| 1994 11.58 48,963 567 |
| 1993 13.16 10,867 143 |
| 12/31/92 12.52 -- -- |
| |
|-------------------------------------------------------------|
GROWTH OPPORTUNITIES
[Table with shaded headings]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ -- $ |
| 5/1/98 10.78 -- -- |
|-------------------------------------------------------------|
A8
<PAGE>
<PAGE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
Golden American Life Insurance Company is a stock company domiciled
in Delaware
- --------------------------------------------------------------------------
G3207 5/99
<PAGE>
<PAGE>
EXPLANATORY NOTE: GOLDENSELECT DVA SERIES 100
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
<PAGE>
Statement of Additional Information
GOLDENSELECT DVA100
DEFERRED COMBINATION VARIABLE
AND FIXED ANNUITY CONTRACT
ISSUED BY
SEPARATE ACCOUNT B
("Account B")
OF
GOLDEN AMERICAN LIFE INSURANCE COMPANY
This Statement of Additional Information is not a prospectus. The
information contained herein should be read in conjunction with the
Prospectus for the Golden American Life Insurance Company Deferred
Variable Annuity Contract, which is referred to herein.
The Prospectus sets forth information that a prospective investor
ought to know before investing. For a copy of the Prospectus, send a
written request to Golden American Life Insurance Company, Customer
Service Center, P.O. Box 2700, West Chester, Pennsylvania 19380-1478
or telephone 1-800-366-0066.
DATE OF PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION:
MAY 1, 1999
<PAGE>
<PAGE>
TABLE OF CONTENTS
ITEM PAGE
Introduction 1
Description of Golden American Life Insurance Company 1
Safekeeping of Assets 1
The Administrator 1
Independent Auditors 1
Distribution of Contracts 1
Performance Information 2
IRA Partial Withdrawal Option 6
Other Information 6
Financial Statements of Account B 6
Appendix - Description of Bond Ratings A-1
i
<PAGE>
<PAGE>
INTRODUCTION
This Statement of Additional Information provides background
information regarding Account B.
DESCRIPTION OF GOLDEN AMERICAN LIFE INSURANCE COMPANY
Golden American Life Insurance Company ("Golden American") is a
stock life insurance company organized under the laws of the
State of Delaware. On August 13, 1996, Equitable of Iowa
Companies, Inc. (formerly Equitable of Iowa Companies)
("Equitable of Iowa") acquired all of the interest in Golden
American and Directed Services, Inc. On October 24, 1997,
Equitable of Iowa and ING Groep N.V. ("ING") completed a merger
agreement, and Equitable of Iowa became a wholly owned subsidiary
of ING. ING, headquartered in The Netherlands, is a global
financial services holding company with over $461.8 billion in
assets as of December 31, 1998.
As of December 31, 1998, Golden American had approximately $353.9
million in stockholder's equity and approximately $4.8 billion in
total assets, including approximately $3.4 billion of separate
account assets. Golden American is authorized to do business in
all jurisdictions except New York. Golden American offers
variable annuities and variable life insurance. Golden American
formed a subsidiary, First Golden American Life Insurance Company
of New York ("First Golden"), who is licensed to do variable
annuity business in the states of New York and Delaware.
SAFEKEEPING OF ASSETS
Golden American acts as its own custodian for Account B.
THE ADMINISTRATOR
Effective January 1, 1997, Equitable Life Insurance Company of
Iowa ("Equitable Life") and Golden American became parties to a
service agreement pursuant to which Equitable Life agreed to
provide certain accounting, actuarial, tax, underwriting, sales,
management and other services to Golden American. Expenses
incurred by Equitable Life in relation to this service agreement
were reimbursed by Golden American on an allocated cost basis.
No charges were billed to Golden American by Equitable Life
pursuant to the service agreement in 1997. Equitable Life billed
Golden American $892,903 pursuant to the service agreement in
1998.
INDEPENDENT AUDITORS
Ernst & Young LLP, independent auditors, performs annual audits
of Golden American and Account B.
DISTRIBUTION OF CONTRACTS
The offering of contracts under the prospectus associated with
this Statement of Additional Information is continuous. Directed
Services, Inc., an affiliate of Golden American, acts as the
principal underwriter (as defined in the Securities Act of 1933
and the Investment Company Act of 1940, as amended) of the
variable insurance products (the "variable insurance products")
issued by Golden American. The variable insurance products were
sold primarily through two broker/dealer institutions, during the
year ended December 31, 1996, through two broker/dealer
institutions during the year ended December 31, 1997 and through
two broker/dealer institutions during the year ended December 31,
1998. For the years ended 1998, 1997 and 1996 commissions paid
by Golden American to Directed Services, Inc. aggregated
$117,470,000, $36,350,000 and $27,065,000, respectively. Directed
Services, Inc. is located at 1475 Dunwoody Drive, West Chester,
Pennsylvania 19380-1478.
Under a management services agreement, last amended in 1995,
Golden American provides to Directed Services, Inc. certain of
its personnel to perform management, administrative and clerical
services and the use of certain facilities. Golden American
charges Directed Services, Inc. for such expenses and all other
general and administrative costs, first on the basis of direct
charges when identifiable, and the remainder allocated based on
the estimated amount of time spent by Golden American's employees
on behalf of Directed Services, Inc. In the
1
<PAGE>
<PAGE>
opinion of
management, this method of cost allocation is reasonable. This
fee, calculated as a percentage of average assets in the variable
separate accounts, was $4,771,000, $2,770,000 and $2,267,000 for
the years ended 1998, 1997 and 1996, respectively.
PERFORMANCE INFORMATION
Performance information for the subaccounts of Account B,
including yields, standard annual returns and other non-standard
measures of performance of all subaccounts, may appear in reports
or promotional literature to current or prospective owners. Such
non-standard measures of performance will be computed, or
accompanied by performance data computed, in accordance with
criteria defined by the SEC. Negative values are denoted by minus
signs ("-"). Performance information for measures other than
total return do not reflect any applicable premium tax that can
range from 0% to 3.5%. As described in the prospectus, three
death benefit options are available. The following performance
values reflect the election at issue of the 7% Solution Enhanced
Death Benefit Option providing values reflecting the highest
aggregate contract charges. If one of the other death benefit
options had been elected, the historical performance values would
be higher than those represented in the examples.
SEC STANDARD MONEY MARKET SUBACCOUNT YIELDS
Current yield for the Liquid Asset Subaccount will be based on
the change in the value of a hypothetical investment (exclusive
of capital changes or income other than investment income) over a
particular 7-day period, less a pro rata share of subaccount
expenses accrued over that period (the "base period"), and stated
as a percentage of the investment at the start of the base period
(the "base period return"). The base period return is then
annualized by multiplying by 365/7, with the resulting yield
figure carried to at least the nearest hundredth of one percent.
Calculation of "effective yield" begins with the same "base
period return" used in the calculation of yield, which is then
annualized to reflect weekly compounding pursuant to the
following formula:
Effective Yield = [(Base Period Return) +1)^365/7] - 1
The current yield and effective yield of the Liquid Asset
Subaccount for the 7-day period December 25, 1998 to December 31,
1998 were 3.30% and 3.35%, respectively.
SEC Standard 30-Day Yield for Non-Money Market Subaccounts
Quotations of yield for the remaining subaccounts will be based
on all investment income per subaccount earned during a
particular 30-day period, less expenses accrued during the period
("net investment income"), and will be computed by dividing net
investment income by the value of an accumulation unit on the
last day of the period, according to the following formula:
Yield = 2 [ ( a - b +1)^(6) - 1]
-----
cd
Where:
[a] equals the net investment income earned during
the period by the investment portfolio attributable
to shares owned by a subaccount
[b] equals the expenses accrued for the period (net
of reimbursements)
[c] equals the average daily number of units
outstanding during the period based on the
accumulation unit value
[d] equals the value (maximum offering price) per
accumulation unit value on the last day of the period
Yield on subaccounts of Account B is earned from the increase in
net asset value of shares of the investmenr portfolio in which
the subaccount invests and from dividends declared and paid by
the investment portfolio, which are automatically reinvested in
shares of the investment portfolio.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of average annual total return for any subaccount will
be expressed in terms of the average annual compounded rate of
return of a hypothetical investment in a contract over a period
of one, five and 10 years (or, if less, up to the life of the
subaccount), calculated pursuant to the formula:
2
<PAGE>
<PAGE>
P(1+T)^(n)=ERV
Where:
(1) [P] equals a hypothetical initial premium
payment of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at
the beginning of the period (or fractional portion thereof)
All total return figures reflect the deduction of the maximum
sales load, the administrative charges, and the mortality and
expense risk charges. The Securities and Exchange Commission
(the "SEC") requires that an assumption be made that the contract
owner surrenders the entire contract at the end of the one, five
and 10 year periods (or, if less, up to the life of the security)
for which performance is required to be calculated. This
assumption may not be consistent with the typical contract
owner's intentions in purchasing a contract and may adversely
affect returns. Quotations of total return may simultaneously be
shown for other periods, as well as quotations of total return
that do not take into account certain contractual charges such as
sales load.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality
and expense risk charge, administrative charge, contract charge
and surrender charge for the year ending December 31, 1998 were
as follows:
<TABLE>
<CAPTION>
Average Annual Total Return for Periods Ending 12/31/98 - Standardized
- ----------------------------------------------------------------------
One Year Period Five Year Period Inception to Inception
Subaccount Ending 12/31/98 Ending 12/31/98 Ending 12/31/98 Date
- ---------- --------------- --------------- --------------- ----
<S> <C> <C> <C> <C>
Equity Income 6.77% 8.69% 8.25%* 1/25/89
Fully Managed 4.44% 8.23% 7.53%* 1/25/89
Capital Appreciation 11.13% 15.87% 14.40%* 5/4/92
Rising Dividends 12.57% 17.09% 16.85% 10/4/93
All-Growth 8.02% 3.28% 4.48%* 1/25/89
Real Estate -14.65% 10.18% 8.16%* 1/25/89
Hard Assets -30.56% 1.07% 3.67%* 1/25/89
Value Equity 0.16% n/a 16.35% 1/1/95
Strategic Equity -0.55% n/a 11.46% 10/2/95
Small Cap 19.32% n/a 15.46% 1/2/96
Emerging Markets -25.14% -12.06% -7.87% 10/4/93
Managed Global 27.54% 7.33%* 6.68%* 10/21/92
Growth Opportunities n/a n/a -3.45%# 2/19/98
Developing World n/a n/a -27.16%# 2/19/98
Mid-Cap Growth 21.13% n/a 21.09%* 10/7/94
Research 21.36% n/a 21.63%* 10/7/94
Total Return 10.06% n/a 14.49%* 10/7/94
Growth & Income 10.44% n/a 21.41% 4/1/96
Growth 25.09% n/a 19.52%* 4/1/96
Global Fixed Income 10.32% n/a 6.60%* 10/7/94
High Yield Bond n/a n/a 0.82%*# 5/1/98
Stocksplus Growth and n/a n/a 11.13%*# 5/1/98
Income
Limited Maturity Bond 5.39% 0.41% 5.35%* 1/25/89
Liquid Asset 3.60% 3.43% 3.70%* 1/25/89
</TABLE>
- ---------------------
* Total return calculation reflects partial waiver of fees and
expenses.
# Non-annualized.
3
<PAGE>
<PAGE>
NON-STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of non-standard average annual total return for any
subaccount will be expressed in terms of the average annual
compounded rate of return of a hypothetical investment in a
contract over a period of one, five and 10 years (or, if less, up
to the life of the subaccount), calculated pursuant to the
formula:
P(1+T)^(n)]=ERV
Where:
(1) [P] equals a hypothetical initial premium
payment of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at
the beginning of the period (or fractional portion
thereof) assuming certain loading and charges are zero.
All total return figures reflect the deduction of the mortality
and expense risk charge and the administrative charges, but not
the deduction of the maximum sales load and the annual contract
fee.
Average Annual Total Return for the subaccounts presented on a
non-standardized basis, which includes deductions for the
mortality and expense risk charge and the administrative charge
for the year ending December 31, 1998 were as follows:
<TABLE>
<CAPTION>
Average Annual Total Return for Periods Ending 12/31/98 - Non-Standardized
- --------------------------------------------------------------------------
One Year Period Five Year Period Inception to Inception
Subaccount Ending 12/31/98 Ending 12/31/98 Ending 12/31/98 Date
- ---------- --------------- ---------------- --------------- ----
<S> <C> <C> <C> <C>
Equity Income 6.80% 8.71% 8.26%* 1/25/89
Fully Managed 4.46% 8.25% 7.55%* 1/25/89
Capital Appreciation 11.16% 15.89% 14.41%* 5/4/92
Rising Dividends 12.60% 17.09% 16.86% 10/4/93
All-Growth 8.04% 3.30% 4.50%* 1/25/89
Real Estate -14.62% 10.73% 8.17%* 1/25/89
Hard Assets -30.53% 1.10% 3.69%* 1/25/89
Value Equity 0.18% n/a 16.36% 1/1/95
Strategic Equity -0.52% n/a 11.48% 10/2/95
Small Cap 19.35% n/a 15.47% 1/2/96
Emerging Markets -25.14% -12.06% 7.87% 10/4/93
Managed Global 27.57% 7.35%* 6.70%* 10/21/92
Growth Opportunities % n/a -3.42%# 2/18/98
Developing World % n/a -27.13%# 2/18/98
Mid-Cap Growth 21.15% n/a 21.11%* 10/7/94
Research 21.39% n/a 21.64%* 10/7/94
Total Return 10.08%* n/a 14.51%* 10/7/94
Growth & Income 10.46% n/a 21.42% 4/1/96
Growth 25.11% n/a 19.53%* 4/1/96
Global Fixed Income 10.34%* n/a 6.62%* 10/7/94
High Yield Bond % n/a 0.89%*# 5/1/98
Stocksplus Growth and % n/a 11.15%*# 5/1/98
Income
Limited Maturity Bond 5.42% 4.16% 5.37%* 1/25/89
Liquid Asset 3.63% 3.45% 3.72%* 1/25/89
</TABLE>
- ----------------------
* Total return calculation reflects partial waiver of fees and
expenses.
# Non-annualized.
Performance information for a subaccount may be compared, in
reports and promotional literature, to: (i) the Standard & Poor's
500 Stock Index ("S&P 500"), Dow Jones Industrial Average
("DJIA"), Donoghue Money Market Institutional Averages, or other
indices that measure performance of a pertinent group of
securities so that investors may compare a subaccount's results
with those of a group of securities widely regarded by investors
as
4
<PAGE>
<PAGE>
representative of the securities markets in general; (ii)
other groups of variable annuity separate accounts or other
investment products tracked by Lipper Analytical Services, a
widely used independent research firm which ranks mutual funds
and other investment companies by overall performance, investment
objectives, and assets, or tracked by other services, companies,
publications, or persons who rank such investment companies on
overall performance or other criteria; and (iii) the Consumer
Price Index (measure for inflation) to assess the real rate of
return from an investment in the contract. Unmanaged indices may
assume the reinvestment of dividends but generally do not reflect
deductions for administrative and management costs and expenses.
Performance information for any subaccount reflects only the
performance of a hypothetical contract under which contract value
is allocated to a subaccount during a particular time period on
which the calculations are based. Performance information should
be considered in light of the investment objectives and policies,
characteristics and quality of the investment portfolio of the
Trust in which the Account B subaccounts invest, and the market
conditions during the given time period, and should not be
considered as a representation of what may be achieved in the
future.
Reports and promotional literature may also contain other
information including the ranking of any subaccount derived from
rankings of variable annuity separate accounts or other
investment products tracked by Lipper Analytical Services or by
other rating services, companies, publications, or other persons
who rank separate accounts or other investment products on
overall performance or other criteria.
PUBLISHED RATINGS
From time to time, the rating of Golden American as an insurance
company by A.M. Best may be referred to in advertisements or in
reports to contract owners. Each year the A.M. Best Company
reviews the financial status of thousands of insurers,
culminating in the assignment of Best's Ratings. These ratings
reflect their current opinion of the relative financial strength
and operating performance of an insurance company in comparison
to the norms of the life/health insurance industry. Best's
ratings range from A+ + to F. An A++ and A+ ratings mean, in the
opinion of A.M. Best, that the insurer has demonstrated the
strongest ability to meet its respective policyholder and other
contractual obligations.
ACCUMULATION UNIT VALUE
The calculation of the Accumulation Unit Value ("AUV") is
discussed in the prospectus for the Contracts under Performance
Information. Note that in your Contract, accumulation unit value
is referred to as the Index of Investment Experience. The
following illustrations show a calculation of a new AUV and the
purchase of Units (using hypothetical examples):
ILLUSTRATION OF CALCULATION OF AUV
EXAMPLE 1.
1. AUV, beginning of period .................. $1.80000000
2. Value of securities, beginning of period ............ $21.20
3. Change in value of securities.................. $.50
4. Gross investment return (3) divided by (2).............. 02358491
5. Less daily mortality and expense charge............... 00003446
6. Less asset based administrative charge ............. 00000276
7. Net investment return (4) minus (5) minus (6)........... 02355738
8. Net investment factor (1.000000) plus (7)........... 1.02355738
9. AUV, end of period (1) multiplied by (8)............. $1.84240328
ILLUSTRATION OF PURCHASE OF UNITS (ASSUMING NO STATE PREMIUM TAX)
EXAMPLE 2.
1. Initial Premium Payment................. $100.00
2. AUV on effective date of purchase (see Example 1)....... $1.8000000
3. Number of Units purchased [(1) divided by (2)]......... 55.55556
4. AUV for valuation date following purchase
(see Example 1)... $1.84240328
5
<PAGE>
<PAGE>
5. Accumulation Value in account for valuation date
following purchase [(3) multiplied by (4)]........... $102.36
IRA PARTIAL WITHDRAWAL OPTION
If the contract owner has an IRA contract and will attain age 70 1/2
in the current calendar year, distributions will be made in
accordance with the requirements of Federal tax law. This option
is available to assure that the required minimum distributions
from qualified plans under the Internal Revenue Code (the "Code")
are made. Under the Code, distributions must begin no later than
April 1st of the calendar year following the calendar year in
which the contract owner attains age 70 1/2. If the required
minimum distribution is not withdrawn, there may be a penalty tax
in an amount equal to 50% of the difference between the amount
required to be withdrawn and the amount actually withdrawn. Even
if the IRA Partial Withdrawal Option is not elected,
distributions must nonetheless be made in accordance with the
requirements of Federal tax law.
Golden American notifies the contract owner of these regulations
with a letter mailed on January 1st of the calendar year in which
the contract owner reaches age 70 1/2 which explains the IRA Partial
Withdrawal Option and supplies an election form. If electing
this option, the owner specifies whether the withdrawal amount
will be based on a life expectancy calculated on a single life
basis (contract owner's life only) or, if the contract owner is
married, on a joint life basis (contract owner's and spouse's
lives combined). The contract owner selects the payment mode on
a monthly, quarterly or annual basis. If the payment mode
selected on the election form is more frequent than annually, the
payments in the first calendar year in which the option is in
effect will be based on the amount of payment modes remaining
when Golden American receives the completed election form. Golden
American calculates the IRA Partial Withdrawal amount each year
based on the minimum distribution rules. We do this by dividing
the contract value by the life expectancy. In the first year
withdrawals begin, we use the contract value as of the date of
the first payment. Thereafter, we use the contract value on
December 31st of each year. The life expectancy is recalculated
each year. Certain minimum distribution rules govern payouts if
the designated beneficiary is other than the contract owner's
spouse and the beneficiary is more than ten years younger than
the contract owner.
OTHER INFORMATION
Registration statements have been filed with the SEC under the
Securities Act of 1933, as amended, with respect to the Contracts
discussed in this Statement of Additional Information. Not all
of the information set forth in the registration statements,
amendments and exhibits thereto has been included in this
Statement of Additional Information. Statements contained in
this Statement of Additional Information concerning the content
of the Contracts and other legal instruments are intended to be
summaries. For a complete statement of the terms of these
documents, reference should be made to the instruments filed with
the SEC.
FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B
The audited financial statements of Separate Account B are listed
below and are included in this Statement of Additional
Information:
Report of Independent Auditors
Audited Financial Statements
Statement of Assets and Liability as of December 31, 1998
Statement of Operations for the year ended December 31, 1998
Statements of Changes in Net Assets for the years ended
December 31, 1998 and 1997
Notes to Financial Statements
6
<PAGE>
<PAGE>
FINANCIAL STATEMENTS
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
YEARS ENDED DECEMBER 31, 1998 AND 1997
WITH REPORT OF INDEPENDENT AUDITORS
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
Report of Independent Auditors
Audited Financial Statements
Statement of Assets and Liability
Statement of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Auditors
The Board of Directors
Golden American Life Insurance Company
We have audited the accompanying statement of assets and liability of Golden
American Life Insurance Company Separate Account B as of December 31, 1998,
and the related statements of operations for the year then ended and the
changes in net assets for each of the two years in the period then ended.
These financial statements are the responsibility of the Account'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,
1998, by correspondence with the custodian. 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, the financial statements referred to above present fairly, in
all material respects, the financial position of Golden American Life
Insurance Company Separate Account B at December 31, 1998, and the results of
its operations for the year then ended and the changes in its net assets for
each of the two years in the period then ended in conformity with generally
accepted accounting principles.
/S/ Ernst & Young LLP
Des Moines, Iowa
February 25, 1999
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF ASSETS AND LIABILITY
DECEMBER 31, 1998
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
The GCG Trust:
Liquid Asset Series,
175,698,298 shares (cost - $175,698) $175,698
Limited Maturity Bond Series,
9,632,216 shares (cost - $103,588) 102,872
Hard Assets Series,
3,095,761 shares (cost - $44,073) 29,719
All-Growth Series,
5,460,140 shares (cost - $72,614) 81,847
Real Estate Series,
5,082,757 shares (cost - $77,307) 69,024
Fully Managed Series,
14,869,764 shares (cost - $216,245) 226,467
Multiple Allocation Series,
21,629,600 shares (cost - $268,930) 274,047
Capital Appreciation Series,
14,189,481 shares (cost - $221,707) 256,687
Rising Dividends Series,
22,754,116 shares (cost - $421,987) 500,818
Emerging Markets Series,
3,333,290 shares (cost - $31,776) 22,267
Market Manager Series,
414,851 shares (cost - $4,663) 8,068
Value Equity Series,
7,950,210 shares (cost - $122,857) 126,249
Strategic Equity Series,
5,567,699 shares (cost - $69,933) 71,377
Small Cap Series,
7,754,062 shares (cost - $103,129) 124,298
Managed Global Series,
9,213,401 shares (cost - $110,591) 130,738
Mid-Cap Growth Series,
6,458,180 shares (cost - $109,532) 116,893
Growth & Income Series,
11,461,829 shares (cost - $170,105) 179,033
Research Series,
13,965,668 shares (cost - $266,377) 283,643
Total Return Series,
14,425,794 shares (cost - $226,488) 227,928
Value + Growth Series,
9,163,078 shares (cost - $129,140) 143,127
Global Fixed Income Series,
853,224 shares (cost - $9,541) 9,531
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF ASSETS AND LIABILITY
DECEMBER 31, 1998
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS - CONTINUED
Investments at net asset value:
The GCG Trust:
Developing World Series,
612,452 shares (cost - $4,365) $4,514
Growth Opportunities Series,
425,552 shares (cost - $3,783) 4,132
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio,
4,770,792 shares (cost - $46,152) 46,134
PIMCO StocksPLUS Growth and Income Portfolio,
4,119,171 shares (cost - $47,564) 51,819
Greenwich Street Series Fund Inc.:
Appreciation Portfolio,
46,082 shares (cost - $932) 975
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio,
63,707 shares (cost - $870) 807
Smith Barney Large Cap Value Portfolio,
34,717 shares (cost - $692) 702
Smith Barney International Equity Portfolio,
23,707 shares (cost - $333) 326
Smith Barney Money Market Portfolio,
317,907 shares (cost - $318) 318
Warburg Pincus Trust:
International Equity Portfolio,
4,529,941 shares (cost - $48,231) 49,785
____________
TOTAL ASSETS (cost - $3,109,521) 3,319,843
LIABILITY
Payable to Golden American Life Insurance Company
for charges and fees 1,638
____________
TOTAL NET ASSETS $3,318,205
============
NET ASSETS
For variable annuity insurance contracts $3,309,202
Retained in Separate Account B by Golden American
Life Insurance Company 9,003
____________
TOTAL NET ASSETS $3,318,205
============
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Liquid Maturity Hard
Asset Bond Assets
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $5,783 $3,217 $1,662
Capital gains distributions -- -- 1,065
______________________________
TOTAL INVESTMENT INCOME 5,783 3,217 2,727
Expenses:
Mortality and expense risk and other charges 1,619 939 461
Annual administrative charges 62 41 13
Minimum death benefit guarantee charges 7 1 2
Contingent deferred sales charges 342 65 53
Other contract charges 9 3 2
Amortization of deferred charges related to:
Deferred sales load 615 389 164
Premium taxes 3 6 3
______________________________
TOTAL EXPENSES BEFORE WAIVER 2,657 1,444 698
Fees waived by Golden American Life
Insurance Company 5 9 4
______________________________
NET EXPENSES 2,652 1,435 694
______________________________
NET INVESTMENT INCOME (LOSS) 3,131 1,782 2,033
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments -- 872 (6,941)
Net unrealized appreciation
(depreciation) of investments -- 739 (8,620)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $3,131 $3,393 ($13,528)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All- Real Fully
Growth Estate Managed
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $3,321 $6,674
Capital gains distributions $470 6,244 12,408
______________________________
TOTAL INVESTMENT INCOME 470 9,565 19,082
Expenses:
Mortality and expense risk and other charges 879 964 2,417
Annual administrative charges 41 28 105
Minimum death benefit guarantee charges 1 1 2
Contingent deferred sales charges 46 38 64
Other contract charges 2 1 5
Amortization of deferred charges related to:
Deferred sales load 409 290 866
Premium taxes 7 5 16
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,385 1,327 3,475
Fees waived by Golden American Life
Insurance Company 10 6 19
______________________________
NET EXPENSES 1,375 1,321 3,456
______________________________
NET INVESTMENT INCOME (LOSS) (905) 8,244 15,626
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 330 3,708 1,704
Net unrealized appreciation
(depreciation) of investments 6,240 (24,689) (10,501)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,665 ($12,737) $6,829
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple Capital
Alloca- Apprecia- Rising
tion tion Dividends
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $13,875 $3,355 $2,240
Capital gains distributions 14,968 19,519 16,632
______________________________
TOTAL INVESTMENT INCOME 28,843 22,874 18,872
Expenses:
Mortality and expense risk and other charges 2,985 2,656 4,670
Annual administrative charges 144 110 212
Minimum death benefit guarantee charges 10 2 4
Contingent deferred sales charges 89 59 128
Other contract charges 9 9 13
Amortization of deferred charges related to:
Deferred sales load 1,784 1,083 934
Premium taxes 33 25 11
______________________________
TOTAL EXPENSES BEFORE WAIVER 5,054 3,944 5,972
Fees waived by Golden American Life
Insurance Company 26 26 20
______________________________
NET EXPENSES 5,028 3,918 5,952
______________________________
NET INVESTMENT INCOME (LOSS) 23,815 18,956 12,920
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,288 6,551 3,842
Net unrealized appreciation
(depreciation) of investments (10,125) (3,987) 17,344
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $15,978 $21,520 $34,106
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging Market Value
Markets Manager Equity
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $129 $2,766
Capital gains distributions -- 214 1,018
______________________________
TOTAL INVESTMENT INCOME -- 343 3,784
Expenses:
Mortality and expense risk and other charges $336 -- 1,442
Annual administrative charges 10 1 57
Minimum death benefit guarantee charges 1 -- 1
Contingent deferred sales charges 16 -- 57
Other contract charges 1 -- 2
Amortization of deferred charges related to:
Deferred sales load 160 43 231
Premium taxes 2 -- 3
______________________________
TOTAL EXPENSES BEFORE WAIVER 526 44 1,793
Fees waived by Golden American Life
Insurance Company 2 -- 3
______________________________
NET EXPENSES 524 44 1,790
______________________________
NET INVESTMENT INCOME (LOSS) (524) 299 1,994
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (3,524) 135 1,237
Net unrealized appreciation
(depreciation) of investments (4,266) 1,090 (4,208)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($8,314) $1,524 ($977)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic Small Managed
Equity Cap Global
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,941 -- $1,806
Capital gains distributions 2,711 -- 3,627
______________________________
TOTAL INVESTMENT INCOME 4,652 -- 5,433
Expenses:
Mortality and expense risk and other charges 851 $1,114 1,445
Annual administrative charges 29 55 59
Minimum death benefit guarantee charges 1 1 1
Contingent deferred sales charges 52 59 50
Other contract charges 1 3 4
Amortization of deferred charges related to:
Deferred sales load 135 112 579
Premium taxes 1 1 8
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,070 1,345 2,146
Fees waived by Golden American Life
Insurance Company 4 2 9
______________________________
NET EXPENSES 1,066 1,343 2,137
______________________________
NET INVESTMENT INCOME (LOSS) 3,586 (1,343) 3,296
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 1,365 2,148 7,634
Net unrealized appreciation
(depreciation) of investments (6,078) 15,952 16,611
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($1,127) $16,757 $27,541
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap Growth &
Growth Income Research
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $4,999 $4,745 $12,283
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 4,999 4,745 12,283
Expenses:
Mortality and expense risk and other charges 880 1,599 1,941
Annual administrative charges 51 88 120
Minimum death benefit guarantee charges 1 -- --
Contingent deferred sales charges 20 62 71
Other contract charges 2 1 4
Amortization of deferred charges related to:
Deferred sales load 55 92 79
Premium taxes -- 2 1
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,009 1,844 2,216
Fees waived by Golden American Life
Insurance Company 1 3 1
______________________________
NET EXPENSES 1,008 1,841 2,215
______________________________
NET INVESTMENT INCOME (LOSS) 3,991 2,904 10,068
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 899 911 972
Net unrealized appreciation
(depreciation) of investments 6,574 7,679 16,878
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $11,464 $11,494 $27,918
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Total Value + Fixed
Return Growth Income
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $11,048 $5,950 $237
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 11,048 5,950 237
Expenses:
Mortality and expense risk and other charges 1,714 1,099 57
Annual administrative charges 98 62 4
Minimum death benefit guarantee charges -- 1 --
Contingent deferred sales charges 62 42 2
Other contract charges 1 1 --
Amortization of deferred charges related to:
Deferred sales load 75 49 --
Premium taxes 1 1 --
______________________________
TOTAL EXPENSES BEFORE WAIVER 1,951 1,255 63
Fees waived by Golden American Life
Insurance Company 2 2 --
______________________________
NET EXPENSES 1,949 1,253 63
______________________________
NET INVESTMENT INCOME (LOSS) 9,099 4,697 174
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 185 (807) 216
Net unrealized appreciation
(depreciation) of investments 1,028 15,417 --
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $10,312 $19,307 $390
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
Growth High
Developing Oppor- Yield
World tunities Bond
Division Division Division
(a) (a) (c)
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $2 $25 $1,050
Capital gains distributions -- -- --
______________________________
TOTAL INVESTMENT INCOME 2 25 1,050
Expenses:
Mortality and expense risk and other charges 22 31 197
Annual administrative charges 2 1 17
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges -- 1 15
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load -- -- 4
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 24 33 233
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 24 33 233
______________________________
NET INVESTMENT INCOME (LOSS) (22) (8) 817
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (266) (235) (318)
Net unrealized appreciation
(depreciation) of investments 149 349 (18)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($139) $106 $481
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS Smith
Growth Barney
and Appre- High
Income ciation Income
Division Division Division
(b)
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,005 $8 $37
Capital gains distributions -- 33 8
______________________________
TOTAL INVESTMENT INCOME 1,005 41 45
Expenses:
Mortality and expense risk and other charges 162 10 8
Annual administrative charges 18 1 1
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges 9 -- --
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load 2 -- --
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 191 11 9
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 191 11 9
______________________________
NET INVESTMENT INCOME (LOSS) 814 30 36
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (97) 3 8
Net unrealized appreciation
(depreciation) of investments 4,255 52 (66)
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $4,972 $85 ($22)
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Smith Barney Smith
Barney Inter- Barney
Large Cap national Money
Value Equity Market
Division Division Division
______________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $6 -- $20
Capital gains distributions 16 -- --
______________________________
TOTAL INVESTMENT INCOME 22 -- 20
Expenses:
Mortality and expense risk and other charges 7 $3 6
Annual administrative charges 1 -- --
Minimum death benefit guarantee charges -- -- --
Contingent deferred sales charges -- -- --
Other contract charges -- -- --
Amortization of deferred charges related to:
Deferred sales load -- -- --
Premium taxes -- -- --
______________________________
TOTAL EXPENSES BEFORE WAIVER 8 3 6
Fees waived by Golden American Life
Insurance Company -- -- --
______________________________
NET EXPENSES 8 3 6
______________________________
NET INVESTMENT INCOME (LOSS) 14 (3) 14
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2 (1) --
Net unrealized appreciation
(depreciation) of investments 3 (2) --
______________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $19 ($6) $14
==============================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division Combined
____________________
<S> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $251 $88,435
Capital gains distributions -- 78,933
____________________
TOTAL INVESTMENT INCOME 251 167,368
Expenses:
Mortality and expense risk and other charges 398 30,912
Annual administrative charges 20 1,451
Minimum death benefit guarantee charges -- 37
Contingent deferred sales charges 12 1,414
Other contract charges -- 73
Amortization of deferred charges related to:
Deferred sales load -- 8,150
Premium taxes -- 129
____________________
TOTAL EXPENSES BEFORE WAIVER 430 42,166
Fees waived by Golden American Life
Insurance Company -- 154
____________________
NET EXPENSES 430 42,012
____________________
NET INVESTMENT INCOME (LOSS) (179) 125,356
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (556) 22,265
Net unrealized appreciation
(depreciation) of investments 1,647 39,447
____________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $912 $187,068
====================
<FN>
(a) Commencement of operations, March 2, 1998
(b) Commencement of operations, May 8, 1998
(c) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $37,476
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 970
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 970
Changes from principal transactions:
Purchase payments 29,455
Contract distributions and terminations (18,096)
Transfer payments from (to) Fixed Accounts and other Divisions 7,253
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 196
____________
Increase (decrease) in net assets derived from principal
transactions 18,808
____________
Total increase (decrease) 19,778
____________
NET ASSETS AT DECEMBER 31, 1997 57,254
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,131
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 3,131
Changes from principal transactions:
Purchase payments 227,924
Contract distributions and terminations (38,803)
Transfer payments from (to) Fixed Accounts and other Divisions (73,759)
Addition to assets retained in the Account
by Golden American Life Insurance Company 12
____________
Increase (decrease) in net assets derived from principal
transactions 115,374
____________
Total increase (decrease) 118,505
____________
NET ASSETS AT DECEMBER 31, 1998 $175,759
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $54,334
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 2,703
Net realized gain (loss) on investments 139
Net unrealized appreciation (depreciation) of investments (690)
____________
Net increase (decrease) in net assets resulting from operations 2,152
Changes from principal transactions:
Purchase payments 5,847
Contract distributions and terminations (8,648)
Transfer payments from (to) Fixed Accounts and other Divisions (1,150)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (68)
____________
Increase (decrease) in net assets derived from principal
transactions (4,019)
____________
Total increase (decrease) (1,867)
____________
NET ASSETS AT DECEMBER 31, 1997 52,467
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,782
Net realized gain (loss) on investments 872
Net unrealized appreciation (depreciation) of investments 739
____________
Net increase (decrease) in net assets resulting from operations 3,393
Changes from principal transactions:
Purchase payments 42,180
Contract distributions and terminations (9,265)
Transfer payments from (to) Fixed Accounts and other Divisions 14,051
Addition to assets retained in the Account
by Golden American Life Insurance Company 6
____________
Increase (decrease) in net assets derived from principal
transactions 46,972
____________
Total increase (decrease) 50,365
____________
NET ASSETS AT DECEMBER 31, 1998 $102,832
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $43,301
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 8,570
Net realized gain (loss) on investments 3,106
Net unrealized appreciation (depreciation) of investments (9,738)
____________
Net increase (decrease) in net assets resulting from operations 1,938
Changes from principal transactions:
Purchase payments 6,936
Contract distributions and terminations (5,699)
Transfer payments from (to) Fixed Accounts and other Divisions (886)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (87)
____________
Increase (decrease) in net assets derived from principal
transactions 264
____________
Total increase (decrease) 2,202
____________
NET ASSETS AT DECEMBER 31, 1997 45,503
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,033
Net realized gain (loss) on investments (6,941)
Net unrealized appreciation (depreciation) of investments (8,620)
____________
Net increase (decrease) in net assets resulting from operations (13,528)
Changes from principal transactions:
Purchase payments 7,508
Contract distributions and terminations (4,524)
Transfer payments from (to) Fixed Accounts and other Divisions (5,266)
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions (2,272)
____________
Total increase (decrease) (15,800)
____________
NET ASSETS AT DECEMBER 31, 1998 $29,703
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $76,842
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 490
Net realized gain (loss) on investments 556
Net unrealized appreciation (depreciation) of investments 1,550
____________
Net increase (decrease) in net assets resulting from operations 2,596
Changes from principal transactions:
Purchase payments 7,441
Contract distributions and terminations (10,832)
Transfer payments from (to) Fixed Accounts and other Divisions (4,053)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (256)
____________
Increase (decrease) in net assets derived from principal
transactions (7,700)
____________
Total increase (decrease) (5,104)
____________
NET ASSETS AT DECEMBER 31, 1997 71,738
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($905)
Net realized gain (loss) on investments 330
Net unrealized appreciation (depreciation) of investments 6,240
____________
Net increase (decrease) in net assets resulting from operations 5,665
Changes from principal transactions:
Purchase payments 15,762
Contract distributions and terminations (9,206)
Transfer payments from (to) Fixed Accounts and other Divisions (2,159)
Addition to assets retained in the Account
by Golden American Life Insurance Company 7
____________
Increase (decrease) in net assets derived from principal
transactions 4,404
____________
Total increase (decrease) 10,069
____________
NET ASSETS AT DECEMBER 31, 1998 $81,807
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $50,681
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 3,901
Net realized gain (loss) on investments 2,621
Net unrealized appreciation (depreciation) of investments 5,391
____________
Net increase (decrease) in net assets resulting from operations 11,913
Changes from principal transactions:
Purchase payments 14,095
Contract distributions and terminations (5,798)
Transfer payments from (to) Fixed Accounts and other Divisions 3,766
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 43
____________
Increase (decrease) in net assets derived from principal
transactions 12,106
____________
Total increase (decrease) 24,019
____________
NET ASSETS AT DECEMBER 31, 1997 74,700
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $8,244
Net realized gain (loss) on investments 3,708
Net unrealized appreciation (depreciation) of investments (24,689)
____________
Net increase (decrease) in net assets resulting from operations (12,737)
Changes from principal transactions:
Purchase payments 24,639
Contract distributions and terminations (6,988)
Transfer payments from (to) Fixed Accounts and other Divisions (10,631)
Addition to assets retained in the Account
by Golden American Life Insurance Company 12
____________
Increase (decrease) in net assets derived from principal
transactions 7,032
____________
Total increase (decrease) (5,705)
____________
NET ASSETS AT DECEMBER 31, 1998 $68,995
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $134,431
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 9,632
Net realized gain (loss) on investments 2,407
Net unrealized appreciation (depreciation) of investments 5,898
____________
Net increase (decrease) in net assets resulting from operations 17,937
Changes from principal transactions:
Purchase payments 19,633
Contract distributions and terminations (17,687)
Transfer payments from (to) Fixed Accounts and other Divisions 4,389
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (53)
____________
Increase (decrease) in net assets derived from principal
transactions 6,282
____________
Total increase (decrease) 24,219
____________
NET ASSETS AT DECEMBER 31, 1997 158,650
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $15,626
Net realized gain (loss) on investments 1,704
Net unrealized appreciation (depreciation) of investments (10,501)
____________
Net increase (decrease) in net assets resulting from operations 6,829
Changes from principal transactions:
Purchase payments 74,467
Contract distributions and terminations (19,367)
Transfer payments from (to) Fixed Accounts and other Divisions 5,756
Addition to assets retained in the Account
by Golden American Life Insurance Company 31
____________
Increase (decrease) in net assets derived from principal
transactions 60,887
____________
Total increase (decrease) 67,716
____________
NET ASSETS AT DECEMBER 31, 1998 $226,366
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $270,427
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 21,419
Net realized gain (loss) on investments 5,773
Net unrealized appreciation (depreciation) of investments 9,866
____________
Net increase (decrease) in net assets resulting from operations 37,058
Changes from principal transactions:
Purchase payments 9,404
Contract distributions and terminations (45,162)
Transfer payments from (to) Fixed Accounts and other Divisions (9,649)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (209)
____________
Increase (decrease) in net assets derived from principal
transactions (45,616)
____________
Total increase (decrease) (8,558)
____________
NET ASSETS AT DECEMBER 31, 1997 261,869
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $23,815
Net realized gain (loss) on investments 2,288
Net unrealized appreciation (depreciation) of investments (10,125)
____________
Net increase (decrease) in net assets resulting from operations 15,978
Changes from principal transactions:
Purchase payments 34,793
Contract distributions and terminations (39,339)
Transfer payments from (to) Fixed Accounts and other Divisions 581
Addition to assets retained in the Account
by Golden American Life Insurance Company 28
____________
Increase (decrease) in net assets derived from principal
transactions (3,937)
____________
Total increase (decrease) 12,041
____________
NET ASSETS AT DECEMBER 31, 1998 $273,910
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $145,989
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 13,819
Net realized gain (loss) on investments 8,242
Net unrealized appreciation (depreciation) of investments 16,323
____________
Net increase (decrease) in net assets resulting from operations 38,384
Changes from principal transactions:
Purchase payments 17,440
Contract distributions and terminations (20,143)
Transfer payments from (to) Fixed Accounts and other Divisions 5,915
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 232
____________
Increase (decrease) in net assets derived from principal
transactions 3,444
____________
Total increase (decrease) 41,828
____________
NET ASSETS AT DECEMBER 31, 1997 187,817
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $18,956
Net realized gain (loss) on investments 6,551
Net unrealized appreciation (depreciation) of investments (3,987)
____________
Net increase (decrease) in net assets resulting from operations 21,520
Changes from principal transactions:
Purchase payments 63,892
Contract distributions and terminations (26,711)
Transfer payments from (to) Fixed Accounts and other Divisions 10,035
Addition to assets retained in the Account
by Golden American Life Insurance Company 25
____________
Increase (decrease) in net assets derived from principal
transactions 47,241
____________
Total increase (decrease) 68,761
____________
NET ASSETS AT DECEMBER 31, 1998 $256,578
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $123,573
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 1,726
Net realized gain (loss) on investments 3,602
Net unrealized appreciation (depreciation) of investments 33,738
____________
Net increase (decrease) in net assets resulting from operations 39,066
Changes from principal transactions:
Purchase payments 45,995
Contract distributions and terminations (18,620)
Transfer payments from (to) Fixed Accounts and other Divisions 25,458
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 471
____________
Increase (decrease) in net assets derived from principal
transactions 53,304
____________
Total increase (decrease) 92,370
____________
NET ASSETS AT DECEMBER 31, 1997 215,943
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $12,920
Net realized gain (loss) on investments 3,842
Net unrealized appreciation (depreciation) of investments 17,344
____________
Net increase (decrease) in net assets resulting from operations 34,106
Changes from principal transactions:
Purchase payments 216,682
Contract distributions and terminations (26,449)
Transfer payments from (to) Fixed Accounts and other Divisions 60,274
Addition to assets retained in the Account
by Golden American Life Insurance Company 60
____________
Increase (decrease) in net assets derived from principal
transactions 250,567
____________
Total increase (decrease) 284,673
____________
NET ASSETS AT DECEMBER 31, 1998 $500,616
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging
Markets
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $37,153
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) (826)
Net realized gain (loss) on investments (1,134)
Net unrealized appreciation (depreciation) of investments (2,698)
____________
Net increase (decrease) in net assets resulting from operations (4,658)
Changes from principal transactions:
Purchase payments 5,427
Contract distributions and terminations (5,304)
Transfer payments from (to) Fixed Accounts and other Divisions 2,002
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (119)
____________
Increase (decrease) in net assets derived from principal
transactions 2,006
____________
Total increase (decrease) (2,652)
____________
NET ASSETS AT DECEMBER 31, 1997 34,501
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Emerging
Markets
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($524)
Net realized gain (loss) on investments (3,524)
Net unrealized appreciation (depreciation) of investments (4,266)
____________
Net increase (decrease) in net assets resulting from operations (8,314)
Changes from principal transactions:
Purchase payments 2,520
Contract distributions and terminations (2,973)
Transfer payments from (to) Fixed Accounts and other Divisions (3,483)
Addition to assets retained in the Account
by Golden American Life Insurance Company 3
____________
Increase (decrease) in net assets derived from principal
transactions (3,933)
____________
Total increase (decrease) (12,247)
____________
NET ASSETS AT DECEMBER 31, 1998 $22,254
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Market
Manager
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $5,479
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 424
Net realized gain (loss) on investments 238
Net unrealized appreciation (depreciation) of investments 1,127
____________
Net increase (decrease) in net assets resulting from operations 1,789
Changes from principal transactions:
Purchase payments (59)
Contract distributions and terminations (189)
Transfer payments from (to) Fixed Accounts and other Divisions (303)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (1)
____________
Increase (decrease) in net assets derived from principal
transactions (552)
____________
Total increase (decrease) 1,237
____________
NET ASSETS AT DECEMBER 31, 1997 6,716
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Market
Manager
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $299
Net realized gain (loss) on investments 135
Net unrealized appreciation (depreciation) of investments 1,090
____________
Net increase (decrease) in net assets resulting from operations 1,524
Changes from principal transactions:
Purchase payments (36)
Contract distributions and terminations (188)
Transfer payments from (to) Fixed Accounts and other Divisions (309)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions (533)
____________
Total increase (decrease) 991
____________
NET ASSETS AT DECEMBER 31, 1998 $7,707
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $42,861
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 5,696
Net realized gain (loss) on investments 898
Net unrealized appreciation (depreciation) of investments 5,129
____________
Net increase (decrease) in net assets resulting from operations 11,723
Changes from principal transactions:
Purchase payments 16,881
Contract distributions and terminations (5,181)
Transfer payments from (to) Fixed Accounts and other Divisions 10,573
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 168
____________
Increase (decrease) in net assets derived from principal
transactions 22,441
____________
Total increase (decrease) 34,164
____________
NET ASSETS AT DECEMBER 31, 1997 77,025
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,994
Net realized gain (loss) on investments 1,237
Net unrealized appreciation (depreciation) of investments (4,208)
____________
Net increase (decrease) in net assets resulting from operations (977)
Changes from principal transactions:
Purchase payments 51,484
Contract distributions and terminations (7,869)
Transfer payments from (to) Fixed Accounts and other Divisions 6,521
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions 50,146
____________
Total increase (decrease) 49,169
____________
NET ASSETS AT DECEMBER 31, 1998 $126,194
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $29,858
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 1,752
Net realized gain (loss) on investments 1,180
Net unrealized appreciation (depreciation) of investments 4,847
____________
Net increase (decrease) in net assets resulting from operations 7,779
Changes from principal transactions:
Purchase payments 9,853
Contract distributions and terminations (4,107)
Transfer payments from (to) Fixed Accounts and other Divisions 6,920
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 134
____________
Increase (decrease) in net assets derived from principal
transactions 12,800
____________
Total increase (decrease) 20,579
____________
NET ASSETS AT DECEMBER 31, 1997 50,437
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,586
Net realized gain (loss) on investments 1,365
Net unrealized appreciation (depreciation) of investments (6,078)
____________
Net increase (decrease) in net assets resulting from operations (1,127)
Changes from principal transactions:
Purchase payments 25,972
Contract distributions and terminations (5,201)
Transfer payments from (to) Fixed Accounts and other Divisions 1,265
Addition to assets retained in the Account
by Golden American Life Insurance Company 2
____________
Increase (decrease) in net assets derived from principal
transactions 22,038
____________
Total increase (decrease) 20,911
____________
NET ASSETS AT DECEMBER 31, 1998 $71,348
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $33,056
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) (754)
Net realized gain (loss) on investments (174)
Net unrealized appreciation (depreciation) of investments 4,543
____________
Net increase (decrease) in net assets resulting from operations 3,615
Changes from principal transactions:
Purchase payments 13,691
Contract distributions and terminations (3,143)
Transfer payments from (to) Fixed Accounts and other Divisions 5,487
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 19
____________
Increase (decrease) in net assets derived from principal
transactions 16,054
____________
Total increase (decrease) 19,669
____________
NET ASSETS AT DECEMBER 31, 1997 52,725
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1,343)
Net realized gain (loss) on investments 2,148
Net unrealized appreciation (depreciation) of investments 15,952
____________
Net increase (decrease) in net assets resulting from operations 16,757
Changes from principal transactions:
Purchase payments 44,851
Contract distributions and terminations (6,104)
Transfer payments from (to) Fixed Accounts and other Divisions 16,010
Addition to assets retained in the Account
by Golden American Life Insurance Company 6
____________
Increase (decrease) in net assets derived from principal
transactions 54,763
____________
Total increase (decrease) 71,520
____________
NET ASSETS AT DECEMBER 31, 1998 $124,245
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Managed
Global
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $86,266
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 6,640
Net realized gain (loss) on investments 2,841
Net unrealized appreciation (depreciation) of investments (883)
____________
Net increase (decrease) in net assets resulting from operations 8,598
Changes from principal transactions:
Purchase payments 17,472
Contract distributions and terminations (12,081)
Transfer payments from (to) Fixed Accounts and other Divisions 4,438
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company (12)
____________
Increase (decrease) in net assets derived from principal
transactions 9,817
____________
Total increase (decrease) 18,415
____________
NET ASSETS AT DECEMBER 31, 1997 104,681
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Managed
Global
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,296
Net realized gain (loss) on investments 7,634
Net unrealized appreciation (depreciation) of investments 16,611
____________
Net increase (decrease) in net assets resulting from operations 27,541
Changes from principal transactions:
Purchase payments 11,958
Contract distributions and terminations (13,329)
Transfer payments from (to) Fixed Accounts and other Divisions (176)
Addition to assets retained in the Account
by Golden American Life Insurance Company 9
____________
Increase (decrease) in net assets derived from principal
transactions (1,538)
____________
Total increase (decrease) 26,003
____________
NET ASSETS AT DECEMBER 31, 1998 $130,684
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $4,571
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 612
Net realized gain (loss) on investments 57
Net unrealized appreciation (depreciation) of investments 912
____________
Net increase (decrease) in net assets resulting from operations 1,581
Changes from principal transactions:
Purchase payments 8,980
Contract distributions and terminations (580)
Transfer payments from (to) Fixed Accounts and other Divisions 5,763
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 46
____________
Increase (decrease) in net assets derived from principal
transactions 14,209
____________
Total increase (decrease) 15,790
____________
NET ASSETS AT DECEMBER 31, 1997 20,361
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,991
Net realized gain (loss) on investments 899
Net unrealized appreciation (depreciation) of investments 6,574
____________
Net increase (decrease) in net assets resulting from operations 11,464
Changes from principal transactions:
Purchase payments 66,121
Contract distributions and terminations (3,065)
Transfer payments from (to) Fixed Accounts and other Divisions 21,962
Addition to assets retained in the Account
by Golden American Life Insurance Company 1
____________
Increase (decrease) in net assets derived from principal
transactions 85,019
____________
Total increase (decrease) 96,483
____________
NET ASSETS AT DECEMBER 31, 1998 $116,844
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Division
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,275
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 3,057
Net realized gain (loss) on investments 177
Net unrealized appreciation (depreciation) of investments 980
____________
Net increase (decrease) in net assets resulting from operations 4,214
Changes from principal transactions:
Purchase payments 22,706
Contract distributions and terminations (1,861)
Transfer payments from (to) Fixed Accounts and other Divisions 11,481
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 107
____________
Increase (decrease) in net assets derived from principal
transactions 32,433
____________
Total increase (decrease) 36,647
____________
NET ASSETS AT DECEMBER 31, 1997 44,922
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Division
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,904
Net realized gain (loss) on investments 911
Net unrealized appreciation (depreciation) of investments 7,679
____________
Net increase (decrease) in net assets resulting from operations 11,494
Changes from principal transactions:
Purchase payments 105,760
Contract distributions and terminations (7,503)
Transfer payments from (to) Fixed Accounts and other Divisions 24,270
Addition to assets retained in the Account
by Golden American Life Insurance Company 7
____________
Increase (decrease) in net assets derived from principal
transactions 122,534
____________
Total increase (decrease) 134,028
____________
NET ASSETS AT DECEMBER 31, 1998 $178,950
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Division
(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $801
Net realized gain (loss) on investments 19
Net unrealized appreciation (depreciation) of investments 388
____________
Net increase (decrease) in net assets resulting from operations 1,208
Changes from principal transactions:
Purchase payments 19,514
Contract distributions and terminations (534)
Transfer payments from (to) Fixed Accounts and other Divisions 14,044
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 170
____________
Increase (decrease) in net assets derived from principal
transactions 33,194
____________
Total increase (decrease) 34,402
____________
NET ASSETS AT DECEMBER 31, 1997 34,402
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Division
(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $10,068
Net realized gain (loss) on investments 972
Net unrealized appreciation (depreciation) of investments 16,878
____________
Net increase (decrease) in net assets resulting from operations 27,918
Changes from principal transactions:
Purchase payments 167,295
Contract distributions and terminations (6,740)
Transfer payments from (to) Fixed Accounts and other Divisions 60,643
Addition to assets retained in the Account
by Golden American Life Insurance Company 11
____________
Increase (decrease) in net assets derived from principal
transactions 221,209
____________
Total increase (decrease) 249,127
____________
NET ASSETS AT DECEMBER 31, 1998 $283,529
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Division
(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $687
Net realized gain (loss) on investments 18
Net unrealized appreciation (depreciation) of investments 412
____________
Net increase (decrease) in net assets resulting from operations 1,117
Changes from principal transactions:
Purchase payments 15,427
Contract distributions and terminations (602)
Transfer payments from (to) Fixed Accounts and other Divisions 10,193
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 96
____________
Increase (decrease) in net assets derived from principal
transactions 25,114
____________
Total increase (decrease) 26,231
____________
NET ASSETS AT DECEMBER 31, 1997 26,231
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Division
(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $9,099
Net realized gain (loss) on investments 185
Net unrealized appreciation (depreciation) of investments 1,028
____________
Net increase (decrease) in net assets resulting from operations 10,312
Changes from principal transactions:
Purchase payments 156,492
Contract distributions and terminations (7,889)
Transfer payments from (to) Fixed Accounts and other Divisions 42,666
Addition to assets retained in the Account
by Golden American Life Insurance Company 23
____________
Increase (decrease) in net assets derived from principal
transactions 191,292
____________
Total increase (decrease) 201,604
____________
NET ASSETS AT DECEMBER 31, 1998 $227,835
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Division
(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($137)
Net realized gain (loss) on investments 515
Net unrealized appreciation (depreciation) of investments (1,430)
____________
Net increase (decrease) in net assets resulting from operations (1,052)
Changes from principal transactions:
Purchase payments 15,158
Contract distributions and terminations (431)
Transfer payments from (to) Fixed Accounts and other Divisions 9,404
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 99
____________
Increase (decrease) in net assets derived from principal
transactions 24,230
____________
Total increase (decrease) 23,178
____________
NET ASSETS AT DECEMBER 31, 1997 23,178
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Division
(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $4,697
Net realized gain (loss) on investments (807)
Net unrealized appreciation (depreciation) of investments 15,417
____________
Net increase (decrease) in net assets resulting from operations 19,307
Changes from principal transactions:
Purchase payments 77,977
Contract distributions and terminations (3,834)
Transfer payments from (to) Fixed Accounts and other Divisions 26,430
Addition to assets retained in the Account
by Golden American Life Insurance Company 10
____________
Increase (decrease) in net assets derived from principal
transactions 100,583
____________
Total increase (decrease) 119,890
____________
NET ASSETS AT DECEMBER 31, 1998 $143,068
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Division
(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $9
Net realized gain (loss) on investments (1)
Net unrealized appreciation (depreciation) of investments (10)
____________
Net increase (decrease) in net assets resulting from operations (2)
Changes from principal transactions:
Purchase payments 190
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 18
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 208
____________
Total increase (decrease) 206
____________
NET ASSETS AT DECEMBER 31, 1997 206
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Division
(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $174
Net realized gain (loss) on investments 216
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 390
Changes from principal transactions:
Purchase payments 5,820
Contract distributions and terminations (219)
Transfer payments from (to) Fixed Accounts and other Divisions 3,331
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 8,932
____________
Total increase (decrease) 9,322
____________
NET ASSETS AT DECEMBER 31, 1998 $9,528
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Develop-
ing
World
Division
(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Develop-
ing
World
Division
(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($22)
Net realized gain (loss) on investments (266)
Net unrealized appreciation (depreciation) of investments 149
____________
Net increase (decrease) in net assets resulting from operations (139)
Changes from principal transactions:
Purchase payments 2,757
Contract distributions and terminations (34)
Transfer payments from (to) Fixed Accounts and other Divisions 1,928
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 4,651
____________
Total increase (decrease) 4,512
____________
NET ASSETS AT DECEMBER 31, 1998 $4,512
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Oppor-
tunities
Division
(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Oppor-
tunities
Division
(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($8)
Net realized gain (loss) on investments (235)
Net unrealized appreciation (depreciation) of investments 349
____________
Net increase (decrease) in net assets resulting from operations 106
Changes from principal transactions:
Purchase payments 4,097
Contract distributions and terminations (45)
Transfer payments from (to) Fixed Accounts and other Divisions (27)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 4,025
____________
Total increase (decrease) 4,131
____________
NET ASSETS AT DECEMBER 31, 1998 $4,131
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield
Bond
Division
(j)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield
Bond
Division
(j)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $817
Net realized gain (loss) on investments (318)
Net unrealized appreciation (depreciation) of investments (18)
____________
Net increase (decrease) in net assets resulting from operations 481
Changes from principal transactions:
Purchase payments 32,399
Contract distributions and terminations (912)
Transfer payments from (to) Fixed Accounts and other Divisions 14,150
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 45,637
____________
Total increase (decrease) 46,118
____________
NET ASSETS AT DECEMBER 31, 1998 $46,118
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth
and
Income
Division
(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions --
____________
Total increase (decrease) --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth
and
Income
Division
(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $814
Net realized gain (loss) on investments (97)
Net unrealized appreciation (depreciation) of investments 4,255
____________
Net increase (decrease) in net assets resulting from operations 4,972
Changes from principal transactions:
Purchase payments 29,368
Contract distributions and terminations (361)
Transfer payments from (to) Fixed Accounts and other Divisions 17,822
Addition to assets retained in the Account
by Golden American Life Insurance Company 1
____________
Increase (decrease) in net assets derived from principal
transactions 46,830
____________
Total increase (decrease) 51,802
____________
NET ASSETS AT DECEMBER 31, 1998 $51,802
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appre-
ciation
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $15
Net realized gain (loss) on investments 1
Net unrealized appreciation (depreciation) of investments (9)
____________
Net increase (decrease) in net assets resulting from operations 7
Changes from principal transactions:
Purchase payments 256
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 256
____________
Total increase (decrease) 263
____________
NET ASSETS AT DECEMBER 31, 1997 263
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appre-
ciation
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $30
Net realized gain (loss) on investments 3
Net unrealized appreciation (depreciation) of investments 52
____________
Net increase (decrease) in net assets resulting from operations 85
Changes from principal transactions:
Purchase payments 595
Contract distributions and terminations (21)
Transfer payments from (to) Fixed Accounts and other Divisions 52
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 626
____________
Total increase (decrease) 711
____________
NET ASSETS AT DECEMBER 31, 1998 $974
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
High
Income
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1)
Net realized gain (loss) on investments 1
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 3
Changes from principal transactions:
Purchase payments 206
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions --
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 206
____________
Total increase (decrease) 209
____________
NET ASSETS AT DECEMBER 31, 1997 209
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
High
Income
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $36
Net realized gain (loss) on investments 8
Net unrealized appreciation (depreciation) of investments (66)
____________
Net increase (decrease) in net assets resulting from operations (22)
Changes from principal transactions:
Purchase payments 530
Contract distributions and terminations (15)
Transfer payments from (to) Fixed Accounts and other Divisions 104
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 619
____________
Total increase (decrease) 597
____________
NET ASSETS AT DECEMBER 31, 1998 $806
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Large Cap
Value
Division
(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($1)
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments 7
____________
Net increase (decrease) in net assets resulting from operations 6
Changes from principal transactions:
Purchase payments 204
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 5
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 209
____________
Total increase (decrease) 215
____________
NET ASSETS AT DECEMBER 31, 1997 215
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Large Cap
Value
Division
(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $14
Net realized gain (loss) on investments 2
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 19
Changes from principal transactions:
Purchase payments 429
Contract distributions and terminations (5)
Transfer payments from (to) Fixed Accounts and other Divisions 43
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 467
____________
Total increase (decrease) 486
____________
NET ASSETS AT DECEMBER 31, 1998 $701
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Inter-
national
Equity
Division
(d)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments ($5)
____________
Net increase (decrease) in net assets resulting from operations (5)
Changes from principal transactions:
Purchase payments 99
Contract distributions and terminations --
Transfer payments from (to) Fixed Accounts and other Divisions 2
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 101
____________
Total increase (decrease) 96
____________
NET ASSETS AT DECEMBER 31, 1997 96
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Inter-
national
Equity
Division
(d)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($3)
Net realized gain (loss) on investments (1)
Net unrealized appreciation (depreciation) of investments (2)
____________
Net increase (decrease) in net assets resulting from operations (6)
Changes from principal transactions:
Purchase payments 178
Contract distributions and terminations (4)
Transfer payments from (to) Fixed Accounts and other Divisions 62
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 236
____________
Total increase (decrease) 230
____________
NET ASSETS AT DECEMBER 31, 1998 $326
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Money
Market
Division
(e)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations --
Changes from principal transactions:
Purchase payments $183
Contract distributions and terminations (1)
Transfer payments from (to) Fixed Accounts and other Divisions (1)
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 181
____________
Total increase (decrease) 181
____________
NET ASSETS AT DECEMBER 31, 1997 181
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith
Barney
Money
Market
Division
(e)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $14
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 14
Changes from principal transactions:
Purchase payments 565
Contract distributions and terminations (25)
Transfer payments from (to) Fixed Accounts and other Divisions (417)
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 123
____________
Total increase (decrease) 137
____________
NET ASSETS AT DECEMBER 31, 1998 $318
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division
(f)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $81
Net realized gain (loss) on investments (12)
Net unrealized appreciation (depreciation) of investments (93)
____________
Net increase (decrease) in net assets resulting from operations (24)
Changes from principal transactions:
Purchase payments 1,825
Contract distributions and terminations (2)
Transfer payments from (to) Fixed Accounts and other Divisions 182
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 2,005
____________
Total increase (decrease) 1,981
____________
NET ASSETS AT DECEMBER 31, 1997 1,981
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Division
(f)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($179)
Net realized gain (loss) on investments (556)
Net unrealized appreciation (depreciation) of investments 1,647
____________
Net increase (decrease) in net assets resulting from operations 912
Changes from principal transactions:
Purchase payments 41,775
Contract distributions and terminations (940)
Transfer payments from (to) Fixed Accounts and other Divisions 6,037
Addition to assets retained in the Account
by Golden American Life Insurance Company --
____________
Increase (decrease) in net assets derived from principal
transactions 46,872
____________
Total increase (decrease) 47,784
____________
NET ASSETS AT DECEMBER 31, 1998 $49,765
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $1,184,573
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) 81,285
Net realized gain (loss) on investments 31,070
Net unrealized appreciation (depreciation) of investments 75,558
____________
Net increase (decrease) in net assets resulting from operations 187,913
Changes from principal transactions:
Purchase payments 304,259
Contract distributions and terminations (184,701)
Transfer payments from (to) Fixed Accounts and other Divisions 111,251
Addition to (reallocation from) assets retained in the Account
by Golden American Life Insurance Company 976
____________
Increase (decrease) in net assets derived from principal
transactions 231,785
____________
Total increase (decrease) 419,698
____________
NET ASSETS AT DECEMBER 31, 1997 1,604,271
</TABLE>
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $125,356
Net realized gain (loss) on investments 22,265
Net unrealized appreciation (depreciation) of investments 39,447
____________
Net increase (decrease) in net assets resulting from operations 187,068
Changes from principal transactions:
Purchase payments 1,536,754
Contract distributions and terminations (247,928)
Transfer payments from (to) Fixed Accounts and other Divisions 237,766
Addition to assets retained in the Account
by Golden American Life Insurance Company 274
____________
Increase (decrease) in net assets derived from principal
transactions 1,526,866
____________
Total increase (decrease) 1,713,934
____________
NET ASSETS AT DECEMBER 31, 1998 $3,318,205
============
<FN>
(a) Commencement of operations, February 3, 1997
(b) Commencement of operations, February 4, 1997
(c) Commencement of operations, August 26, 1997
(d) Commencement of operations, September 18, 1997
(e) Commencement of operations, September 24, 1997
(f) Commencement of operations, October 9, 1997
(g) Commencement of operations, October 24, 1997
(h) Commencement of operations, March 2, 1998
(i) Commencement of operations, May 8, 1998
(j) Commencement of operations, May 11, 1998
</TABLE>
See accompanying notes.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 1 - ORGANIZATION
Golden American Life Insurance Company Separate Account B (the "Account") was
established by Golden American Life Insurance Company ("Golden American") to
support the operations of variable annuity contracts ("Contracts"). Golden
American is primarily engaged in the issuance of variable insurance products
and is licensed as a life insurance company in the District of Columbia and
all states except New York. The Account is registered as a unit investment
trust with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended. Golden American provides for variable
accumulation and benefits under the Contracts by crediting annuity
considerations to one or more divisions within the Account or the Golden
American Guaranteed Interest Division, the Golden American Fixed Interest
Division and the Fixed Separate Account, which are not part of the Account,
as directed by the Contractowners. The portion of the Account's assets
applicable to Contracts will not be chargeable with liabilities arising out
of any other business Golden American may conduct, but obligations of the
Account, including the promise to make benefit payments, are obligations of
Golden American. The assets and liabilities of the Account are clearly
identified and distinguished from the other assets and liabilities of Golden
American.
During 1998, the Account had GoldenSelect Contracts and Granite PrimElite
Contracts. GoldenSelect Contracts sold by Golden American during 1998
include DVA 100, DVA Series 100, DVA PLUS, ACCESS, PREMIUM PLUS and ESII.
During 1998, the Account had GoldenSelect Contracts (DVA 80) which were no
longer being sold.
At December 31, 1998, the Account had, under GoldenSelect Contracts, twenty-
six investment divisions: Liquid Asset, Limited Maturity Bond, Hard Assets,
All-Growth, Real Estate, Fully Managed, Multiple Allocation, Capital
Appreciation, Rising Dividends, Emerging Markets, Market Manager, Value
Equity, Strategic Equity, Small Cap, Managed Global, Mid-Cap Growth (formerly
OTC), Growth & Income, Research, Total Return, Value + Growth, Global Fixed
Income, Developing World, Growth Opportunities, PIMCO High Yield Bond, PIMCO
StocksPLUS Growth and Income and International Equity Divisions
("Divisions"). The Account also had, under Granite PrimElite Contracts,
eight investment divisions: Mid-Cap Growth (formerly OTC), Research, Total
Return, Appreciation, Smith Barney High Income, Smith Barney Large Cap Value
(formerly Smith Barney Income and Growth), Smith Barney International Equity
and Smith Barney Money Market Divisions (collectively with the divisions
noted above, "Divisions"). The assets in each Division are invested in shares
of a designated series ("Series," which may also be referred to as
"Portfolio") of mutual funds, The GCG Trust, the Travelers Series Fund Inc.,
the Greenwich Street Series Fund Inc. (formerly the Smith Barney Series Fund
Inc.), the Warburg Pincus Trust or the PIMCO Variable Insurance Trust (the
"Trusts"). The Account also includes The Fund For Life Division, which is not
included in the accompanying financial statements, and which ceased to accept
new Contracts effective December 31, 1994.
Prior to August 14, 1998, the Account also had certain investment divisions
available from the Equi-Select Series Trust. In an effort to consolidate
operations, Golden American requested permission from the Securities and
Exchange Commission ("SEC") to substitute shares of each Portfolio of the
Equi-Select Series Trust with shares of a similar Series of The GCG Trust.
On August 14, 1998, after approval from the SEC, shares of each Portfolio of
the Equi-Select Series Trust were substituted with shares of a similar Series
of The GCG Trust. The consolidation resulted in the following Series being
substituted from The GCG Trust:
<TABLE>
<CAPTION>
Equi-Select Series Trust The GCG Trust
Investment Division Investment Division
___________________________ ___________________________
<S> <S>
International Fixed Income Global Fixed Income
OTC Mid-Cap Growth
Research Research
Total Return Total Return
Value + Growth Value + Growth
Growth & Income Growth & Income
</TABLE>
The Market Manager Division was open for investment for only a brief period
during 1994 and 1995. This Division is now closed and Contractowners are not
permitted to direct their investments into this Division.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the
Account:
USE OF ESTIMATES: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
INVESTMENTS: Investments are made in shares of a Series or Portfolio of the
Trusts and are valued at the net asset value per share of the respective
Series or Portfolio of the Trusts. Investment transactions in each Series or
Portfolio of the Trusts are recorded on the trade date. Distributions of net
investment income and capital gains from each Series or Portfolio of the
Trusts are recognized on the ex-distribution date. Realized gains and losses
on redemptions of the shares of the Series or Portfolio of the Trusts are
determined on the specific identification basis.
FEDERAL INCOME TAXES: Operations of the Account form a part of, and are
taxed with, the total operations of Golden American which is taxed as a life
insurance company under the Internal Revenue Code. Earnings and realized
capital gains of the Account attributable to the Contractowners are excluded
in the determination of the federal income tax liability of Golden American.
NOTE 3 - CHARGES AND FEES
The DVA PLUS, ACCESS and the PREMIUM PLUS each have three different death
benefit options referred to as Standard, Annual Ratchet and 7% Solution;
however, in the state of Washington, the 5.5% Solution is offered instead of
the 7% Solution. Granite PrimElite has two death benefit options referred to
as Standard and Annual Ratchet. Golden American discontinued external sales
of DVA 80 in May 1991. In December 1995, Golden American also discontinued
external sales of DVA 100, however, the DVA 100 contracts continue to be
available to Golden American employees and agents. Under the terms of the
Contracts, certain charges are allocated to the Contracts to cover Golden
American's expenses in connection with the issuance and administration of the
Contracts. Following is a summary of these charges:
MORTALITY AND EXPENSE RISK CHARGES: Golden American assumes mortality and
expense risks related to the operations of the Account and, in accordance
with the terms of the Contracts, deducts a daily charge from the assets of
the Account.
Daily charges deducted at annual rates to cover these risks are as
follows:
<TABLE>
<CAPTION>
Series Annual Rates
__________________________________ __________________
<S> <C>
DVA 80 0.80%
DVA 100 0.90
DVA Series 100 1.25
DVA PLUS - Standard 1.10
DVA PLUS - Annual Ratchet 1.25
DVA PLUS - 5.5% Solution 1.25
DVA PLUS - 7% Solution 1.40
ACCESS - Standard 1.25
ACCESS - Annual Ratchet 1.40
ACCESS - 5.5% Solution 1.40
ACCESS - 7% Solution 1.55
PREMIUM PLUS - Standard 1.25
PREMIUM PLUS - Annual Ratchet 1.40
PREMIUM PLUS - 5.5% Solution 1.40
PREMIUM PLUS - 7% Solution 1.55
ES II 1.25
Granite PrimElite - Standard 1.10
Granite PrimElite - Annual Ratchet 1.25
</TABLE>
ASSET BASED ADMINISTRATIVE CHARGES: A daily charge at an annual rate of .10%
is deducted from assets attributable to DVA 100 and DVA Series 100 Contracts.
A daily charge at an annual rate of .15% is deducted from the assets
attributable to the DVA PLUS, ACCESS, PREMIUM PLUS, ESII and Granite
PrimElite Contracts.
ADMINISTRATIVE CHARGES: An administrative charge is deducted from the
accumulation value of Deferred Annuity Contracts to cover ongoing
administrative expenses. The charge is $30 per Contract year for ES II
contracts. For all other Contracts the charge is $40. The charge is
incurred at the beginning of the Contract processing period and deducted at
the end of the Contract processing period. This charge has been waived for
certain offerings of the Contracts.
MINIMUM DEATH BENEFIT GUARANTEE CHARGES: For certain Contracts, a minimum
death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death
benefit per Contract year is deducted from the accumulation value of Deferred
Annuity Contracts on each Contract anniversary date.
CONTINGENT DEFERRED SALES CHARGES: Under DVA PLUS, PREMIUM PLUS, ES II and
Granite PrimElite Contracts, a contingent deferred sales charge ("Surrender
Charge") is imposed as a percentage of each premium payment if the Contract
is surrendered or an excess partial withdrawal is taken. The following table
reflects the surrender charge that is assessed, based upon the date a premium
payment is received.
<TABLE>
<CAPTION>
Complete Years Elapsed
Since Premium Payment Surrender Charge
_____________________ _______________________________________________________
PREMIUM Granite
DVA PLUS PLUS ES II PrimElite
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
0 7% 8% 8% 7%
1 7 8 7 7
2 6 8 6 6
3 5 8 5 5
4 4 7 4 4
5 3 6 3 3
6 1 5 2 1
7 -- 3 1 --
8 -- 1 -- --
9+ -- -- -- --
</TABLE>
OTHER CONTRACT CHARGES: Under DVA 80, DVA 100 and DVA Series 100 Contracts,
a charge is deducted from the accumulation value for Contracts taking more
than one conventional partial withdrawal during a Contract year. For DVA 80
and DVA 100 Contracts, annual distribution fees are deducted from the
Contract accumulation values.
DEFERRED SALES LOAD: Under Contracts offered prior to October 1995, a sales
load of up to 7.5% was assessed against each premium payment for sales-
related expenses as specified in the Contracts. For DVA Series 100, the
sales load is deducted in equal annual installments over the period the
Contract is in force, not to exceed 10 years. For DVA 80 and DVA 100
Contracts, although the sales load is chargeable to each premium when it is
received by Golden American, the amount of such charge is initially advanced
by Golden American to Contractowners and included in the accumulation value
and then deducted in equal installments on each Contract anniversary date
over a period of six years. Upon surrender of the Contract, the unamortized
deferred sales load is deducted from the accumulation value by Golden
American. In addition, when partial withdrawal limits are exceeded, a
portion of the unamortized deferred sales load is deducted.
PREMIUM TAXES: For certain Contracts, premium taxes are deducted, where
applicable, from the accumulation value of each Contract. The amount and
timing of the deduction depend on the annuitant's state of residence and
currently ranges up to 3.5% of premiums.
FEES WAIVED BY GOLDEN AMERICAN: Certain charges and fees for various types
of Contracts are currently waived by Golden American. Golden American
reserves the right to discontinue these waivers at its discretion or to
conform with changes in the law.
A summary of the net assets retained in the Account, representing the
unamortized deferred sales load and premium taxes advanced by Golden American
previously noted, follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
___________________________________
1998 1997
_______________ _________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Balance at beginning of year $17,009 $26,612
Sales load advanced 274 616
Premium tax advanced -- 7
Net transfer from Fixed Account
and other Divisions -- 353
Amortization of deferred sales load
and premium tax (8,280) (10,579)
_______________ _________________
Balance at end of year $9,003 $17,009
=============== =================
</TABLE>
NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were
as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1998
_________________________
PURCHASES SALES
_________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Liquid Asset Series $570,537 $452,115
Limited Maturity Bond Series 71,742 22,970
Hard Assets Series 17,730 17,975
All-Growth Series 16,647 13,146
Real Estate Series 29,007 13,733
Fully Managed Series 83,688 7,148
Multiple Allocation Series 52,037 32,159
Capital Appreciation Series 83,259 17,034
Rising Dividends Series 270,955 7,361
Emerging Markets Series 2,644 7,107
Market Manager Series 342 292
Value Equity Series 58,297 6,136
Strategic Equity Series 31,008 5,375
Small Cap Series 63,182 9,735
Managed Global Series 41,119 39,355
Mid-Cap Growth Series 97,494 8,444
Growth & Income Series 132,350 6,850
Research Series 237,915 6,540
Total Return Series 202,032 1,560
Value + Growth Series 119,241 13,912
Global Fixed Income Series 14,270 5,161
Developing World Series 7,293 2,662
Growth Opportunities Series 7,214 3,196
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio 52,726 6,256
PIMCO StocksPLUS Growth and Income Portfolio 49,898 2,237
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 739 82
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio 878 222
Smith Barney Large Cap Value Porfolio 513 32
Smith Barney International Equity Portfolio 245 12
Smith Barney Money Market Portfolio 630 494
Warburg Pincus Trust:
International Equity Portfolio 370,938 324,226
_________________________
COMBINED $2,686,570 $1,033,527
=========================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1997
_________________________
PURCHASES SALES
_________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Liquid Asset Series $94,848 $75,062
Limited Maturity Bond Series 12,572 13,891
Hard Assets Series 21,526 12,693
All-Growth Series 7,468 14,683
Real Estate Series 24,254 8,239
Fully Managed Series 27,691 11,768
Multiple Allocation Series 30,819 55,031
Capital Appreciation Series 41,409 24,135
Rising Dividends Series 63,949 8,887
Emerging Markets Series 8,023 6,846
Market Manager Series 467 623
Value Equity Series 32,557 4,409
Strategic Equity Series 19,475 4,918
Small Cap Series 25,870 10,563
Managed Global Series 37,985 21,524
Mid-Cap Growth Series 18,373 3,328
Growth & Income Series 37,291 1,763
Research Series 34,430 419
Total Return Series 26,167 354
Value + Growth Series 30,053 5,950
Global Fixed Income Series 224 7
Developing World Series -- --
Growth Opportunities Series -- --
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Portfolio -- --
PIMCO StocksPLUS Growth and Income Portfolio -- --
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 283 12
Travelers Series Fund Inc.:
Smith Barney High Income Portfolio 216 11
Smith Barney Large Cap Value Porfolio 210 1
Smith Barney International Equity Portfolio 103 2
Smith Barney Money Market Portfolio 194 12
Warburg Pincus Trust:
International Equity Portfolio 2,146 59
_________________________
COMBINED $598,603 $285,190
=========================
</TABLE>
NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Contractowners' transactions shown in the following table reflect gross
inflows ("Purchases") and outflows ("Sales") in units for each Division. The
activity includes Contractowners electing to update a DVA 100 or DVA Series
100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted
in both a sale (surrender of the old Contract) and a purchase (acquisition of
the new Contract). All of the purchase transactions for the Market Manager
Division resulted from such updates.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1998
_________________________
PURCHASES SALES
_________________________
<S> <C> <C>
Liquid Asset Division 46,713,872 38,496,936
Limited Maturity Bond Division 5,263,273 2,390,944
Hard Assets Division 1,390,271 1,503,254
All-Growth Division 1,876,296 1,557,867
Real Estate Division 1,269,259 1,003,769
Fully Managed Division 4,432,536 1,393,191
Multiple Allocation Division 2,439,316 2,628,892
Capital Appreciation Division 3,704,327 1,712,022
Rising Dividends Division 13,285,423 1,798,264
Emerging Markets Division 737,697 1,279,884
Market Manager Division 16,579 26,443
Value Equity Division 3,639,566 936,377
Strategic Equity Division 2,329,825 828,876
Small Cap Division 5,737,867 1,727,666
Managed Global Division 3,637,963 3,808,355
Mid-Cap Growth Division 5,201,859 1,073,702
Growth & Income Division 8,700,243 1,061,928
Research Division 11,776,149 1,145,700
Total Return Division 11,841,572 542,519
Value + Growth Division 8,862,606 1,834,396
Global Fixed Income Division 1,199,981 486,199
Developing World Division 1,034,819 414,729
Growth Opportunities Division 801,993 373,469
PIMCO High Yield Bond Division 5,575,890 995,489
PIMCO StocksPLUS Growth and Income Division 5,235,676 567,893
Appreciation Division 45,518 5,062
Smith Barney High Income Division 59,777 15,706
Smith Barney Large Cap Value Division 25,818 1,496
Smith Barney International Equity Division 13,627 659
Smith Barney Money Market Division 55,074 43,687
International Equity Division 34,755,360 31,779,305
_________________________
COMBINED 191,660,032 101,434,679
=========================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
_________________________
1997
_________________________
PURCHASES SALES
_________________________
<S> <C> <C>
Liquid Asset Division 8,859,035 7,508,736
Limited Maturity Bond Division 814,102 1,099,923
Hard Assets Division 955,532 934,748
All-Growth Division 902,597 1,467,510
Real Estate Division 1,165,038 633,059
Fully Managed Division 1,588,523 1,271,492
Multiple Allocation Division 858,882 3,296,283
Capital Appreciation Division 1,899,517 1,801,059
Rising Dividends Division 4,263,972 1,391,248
Emerging Markets Division 1,231,916 1,082,071
Market Manager Division -- 31,196
Value Equity Division 1,792,574 522,420
Strategic Equity Division 1,539,555 551,638
Small Cap Division 3,022,647 1,720,403
Managed Global Division 3,674,935 2,873,007
Mid-Cap Growth Division 1,166,129 357,910
Growth & Income Division 2,623,649 368,883
Research Division 1,962,393 137,427
Total Return Division 1,683,989 52,603
Value + Growth Division 2,598,824 818,375
Global Fixed Income Division 18,902 1,482
Developing World Division -- --
Growth Opportunities Division -- --
PIMCO High Yield Bond Division -- --
PIMCO StocksPLUS Growth and Income Division -- --
Appreciation Division 19,581 822
Smith Barney High Income Division 15,972 739
Smith Barney Large Cap Value Division 12,176 39
Smith Barney International Equity Division 7,216 138
Smith Barney Money Market Division 17,685 1,114
International Equity Division 208,851 9,015
_________________________
COMBINED 42,904,192 27,933,340
=========================
</TABLE>
NOTE 6 - NET ASSETS
Investments at net asset value less the payable to Golden American Life
Insurance Company for charges and fees at December 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
Limited
Liquid Maturity Hard All-
Asset Bond Assets Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $166,620 $85,663 $27,056 $64,169
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 9,139 17,885 17,001 8,405
Net unrealized appreciation
(depreciation) of
investments -- (716) (14,354) 9,233
_____________________________________________________
$175,759 $102,832 $29,703 $81,807
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Real Fully Multiple Capital
Estate Managed Allocation Appreciation
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $51,262 $167,589 $134,591 $146,874
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26,016 48,555 134,202 74,724
Net unrealized appreciation
(depreciation) of
investments (8,283) 10,222 5,117 34,980
_____________________________________________________
$68,995 $226,366 $273,910 $256,578
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Rising Emerging Market Value
Dividends Markets Manager Equity
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $394,953 $46,675 $2,242 $109,242
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26,832 (14,912) 2,060 13,560
Net unrealized appreciation
(depreciation) of
investments 78,831 (9,509) 3,405 3,392
_____________________________________________________
$500,616 $22,254 $7,707 $126,194
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Strategic Small Managed Mid-Cap
Equity Cap Global Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $61,578 $103,543 $90,360 $103,719
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 8,326 (467) 20,177 5,764
Net unrealized appreciation
(depreciation) of
investments 1,444 21,169 20,147 7,361
_____________________________________________________
$71,348 $124,245 $130,684 $116,844
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Growth & Total Value +
Income Research Return Growth
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $162,972 $254,403 $216,406 $124,813
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 7,050 11,860 9,989 4,268
Net unrealized appreciation
(depreciation) of
investments 8,928 17,266 1,440 13,987
_____________________________________________________
$178,950 $283,529 $227,835 $143,068
=====================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO
Global Growth High
Fixed Developing Oppor- Yield
Income World tunities Bond
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $9,140 $4,651 $4,025 $45,637
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 398 (288) (243) 499
Net unrealized appreciation
(depreciation) of
investments (10) 149 349 (18)
_____________________________________________________
$9,528 $4,512 $4,131 $46,118
=====================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO Smith Smith
StocksPLUS Barney Barney
Growth and Appre- High Large Cap
Income ciation Income Value
Division Division Division Division
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $46,830 $882 $825 $676
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 717 49 44 15
Net unrealized appreciation
(depreciation) of
investments 4,255 43 (63) 10
_____________________________________________________
$51,802 $974 $806 $701
=====================================================
</TABLE>
<TABLE>
<CAPTION>
Smith
Barney Smith
Inter- Barney Inter-
national Money national
Equity Market Equity
Division Division Division Combined
_____________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $337 $304 $48,877 $2,676,914
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (4) 14 (666) 430,969
Net unrealized appreciation
(depreciation) of
investments (7) -- 1,554 210,322
_____________________________________________________
$326 $318 $49,765 $3,318,205
=====================================================
</TABLE>
NOTE 7 - UNIT VALUES
Accumulation unit value information (which is based on total assets) for
units outstanding by Contract type as of December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
LIQUID ASSET
Currently payable annuity products:
DVA 80 2,728 $15.19 $41
DVA 100 2,657 14.89 40
Contracts in accumulation period:
DVA 80 371,896 15.19 5,650
DVA 100 1,765,308 14.89 26,288
DVA Series 100 50,601 14.38 727
DVA PLUS - Standard 489,531 14.54 7,118
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,587,645 14.33 51,394
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,964,038 14.11 41,830
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,069,965 13.88 42,610
____________
175,698
LIMITED MATURITY BOND
Currently payable annuity products:
DVA 80 8,126 17.77 144
DVA 100 17,655 17.42 307
Contracts in accumulation period:
DVA 80 91,829 17.77 1,632
DVA 100 2,069,663 17.42 36,045
DVA Series 100 22,995 16.81 387
DVA PLUS - Standard 263,074 17.02 4,478
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,557,946 16.77 26,124
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,121,400 16.52 18,525
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 937,378 16.25 15,230
____________
102,872
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
HARD ASSETS
Currently payable annuity products:
DVA 80 365 $15.15 $6
DVA 100 8,649 14.85 128
Contracts in accumulation period:
DVA 80 58,984 15.15 893
DVA 100 744,236 14.85 11,050
DVA Series 100 23,997 14.33 344
DVA PLUS - Standard 146,678 14.50 2,126
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 258,034 14.28 3,685
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 609,087 14.07 8,570
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 210,821 13.84 2,917
____________
29,719
ALL-GROWTH
Currently payable annuity products:
DVA 80 474 16.36 8
DVA 100 11,790 16.03 189
Contracts in accumulation period:
DVA 80 72,780 16.36 1,191
DVA 100 2,382,762 16.03 38,207
DVA Series 100 23,147 15.48 358
DVA PLUS - Standard 208,260 15.66 3,261
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 645,591 15.43 9,958
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,471,156 15.20 22,355
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 422,889 14.95 6,320
____________
81,847
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
REAL ESTATE
Currently payable annuity products:
DVA 80 1,101 $23.06 $25
DVA 100 21,684 22.60 490
Contracts in accumulation period:
DVA 80 33,563 23.06 774
DVA 100 1,136,778 22.60 25,692
DVA Series 100 9,562 21.82 209
DVA PLUS - Standard 170,494 22.07 3,763
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 436,867 21.74 9,498
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 914,501 21.42 19,588
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 426,516 21.07 8,985
____________
69,024
FULLY MANAGED
Currently payable annuity products:
DVA 80 2,737 21.78 60
DVA 100 60,779 21.34 1,297
Contracts in accumulation period:
DVA 80 96,116 21.78 2,093
DVA 100 4,072,871 21.34 86,930
DVA Series 100 33,313 20.61 686
DVA PLUS - Standard 544,623 20.84 11,351
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,628,157 20.53 33,431
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,780,652 20.23 56,246
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,727,706 19.90 34,373
____________
226,467
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MULTIPLE ALLOCATION
Currently payable annuity products:
DVA 80 14,541 $23.26 $338
DVA 100 90,029 22.80 2,053
Contracts in accumulation period:
DVA 80 405,816 23.26 9,440
DVA 100 7,709,073 22.80 175,791
DVA Series 100 64,749 22.01 1,425
DVA PLUS - Standard 395,764 22.27 8,812
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 800,489 21.94 17,560
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,980,779 21.61 42,806
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 744,366 21.26 15,822
____________
274,047
CAPITAL APPRECIATION
Currently payable annuity products:
DVA 80 7,669 25.47 195
DVA 100 44,548 25.13 1,119
Contracts in accumulation period:
DVA 80 83,297 25.47 2,122
DVA 100 4,645,391 25.13 116,756
DVA Series 100 49,076 24.55 1,205
DVA PLUS - Standard 413,115 24.75 10,223
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,342,757 24.50 32,897
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,787,732 24.26 67,619
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,023,964 23.98 24,551
____________
256,687
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
RISING DIVIDENDS
Currently payable annuity products:
DVA 80 12,379 $23.31 $289
DVA 100 15,367 23.06 355
Contracts in accumulation period:
DVA 80 127,116 23.31 2,962
DVA 100 4,450,237 23.06 102,628
DVA Series 100 92,161 22.64 2,086
DVA PLUS - Standard 1,199,087 22.79 27,323
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 4,591,470 22.61 103,810
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 7,386,288 22.43 165,696
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 4,305,084 22.22 95,669
____________
500,818
EMERGING MARKETS
Currently payable annuity products:
DVA 80 304 6.71 2
DVA 100 9,591 6.64 64
Contracts in accumulation period:
DVA 80 68,213 6.71 458
DVA 100 1,539,408 6.64 10,224
DVA Series 100 23,813 6.52 155
DVA PLUS - Standard 266,800 6.56 1,751
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 271,025 6.51 1,765
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,177,915 6.46 7,610
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 37,134 6.40 238
____________
22,267
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MARKET MANAGER
Contracts in accumulation period:
DVA 100 332,519 $23.71 $7,884
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 7,958 23.14 184
____________
8,068
VALUE EQUITY
Currently payable annuity products:
DVA 80 409 18.73 8
DVA 100 2,145 18.58 40
Contracts in accumulation period:
DVA 80 29,033 18.73 544
DVA 100 1,049,863 18.58 19,502
DVA Series 100 20,539 18.32 376
DVA PLUS - Standard 454,942 18.41 8,377
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,415,540 18.31 25,913
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,736,310 18.20 49,797
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,201,314 18.06 21,692
____________
126,249
STRATEGIC EQUITY
Currently payable annuity products:
DVA 100 34,850 14.40 502
Contracts in accumulation period:
DVA 80 53,353 14.49 773
DVA 100 737,255 14.40 10,615
DVA Series 100 22,096 14.23 315
DVA PLUS - Standard 508,588 14.30 7,272
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,105,850 14.23 15,735
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,731,615 14.16 24,521
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 827,477 14.07 11,644
____________
71,377
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
SMALL CAP
Currently payable annuity products:
DVA 100 6,856 $15.55 $107
Contracts in accumulation period:
DVA 80 46,417 15.65 726
DVA 100 694,347 15.55 10,801
DVA Series 100 18,405 15.39 283
DVA PLUS - Standard 446,934 15.44 6,900
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 2,476,498 15.37 38,058
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,086,639 15.30 47,219
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,326,706 15.23 20,204
____________
124,298
MANAGED GLOBAL
Currently payable annuity products:
DVA 80 295 15.46 5
DVA 100 16,286 15.27 249
Contracts in accumulation period:
DVA 80 31,668 15.46 489
DVA 100 3,928,543 15.27 59,981
DVA Series 100 47,894 14.95 716
DVA PLUS - Standard 649,216 15.02 9,753
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 610,300 14.88 9,084
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,354,682 14.75 49,469
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 67,979 14.59 992
____________
130,738
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
MID-CAP GROWTH
Contracts in accumulation period:
DVA 80 31,935 $23.04 $736
DVA 100 315,603 22.84 7,210
DVA Series 100 12,309 22.50 277
DVA PLUS - Standard 173,070 22.60 3,912
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,905,008 22.43 42,722
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,527,664 22.31 34,087
Granite PrimElite - Standard 981 22.60 22
Granite PrimElite - Annual Ratchet 23,659 22.43 531
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,235,724 22.17 27,396
____________
116,893
GROWTH & INCOME
Contracts in accumulation period:
DVA 80 9,045 17.29 156
DVA 100 486,360 17.20 8,365
DVA Series 100 9,399 17.03 160
DVA PLUS - Standard 537,480 17.08 9,180
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,297,314 17.01 56,089
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,474,459 16.94 58,850
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 2,741,015 16.87 46,233
____________
179,033
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
RESEARCH
Contracts in accumulation period:
DVA 80 14,054 $23.47 $330
DVA 100 488,822 23.27 11,377
DVA Series 100 20,718 22.93 475
DVA PLUS - Standard 437,189 23.03 10,068
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,902,974 22.89 89,339
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,875,695 22.73 88,107
Granite PrimElite - Standard 3,070 23.03 71
Granite PrimElite - Annual Ratchet 38,692 22.89 886
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,674,201 22.59 82,990
____________
283,643
TOTAL RETURN
Contracts in accumulation period:
DVA 80 2,035 18.17 37
DVA 100 431,678 18.02 7,778
DVA Series 100 6,695 17.75 119
DVA PLUS - Standard 616,433 17.83 10,989
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,982,960 17.72 70,569
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 3,973,034 17.60 69,922
Granite PrimElite - Standard 10,098 17.83 180
Granite PrimElite - Annual Ratchet 32,769 17.72 581
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 3,874,737 17.49 67,753
____________
227,928
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
VALUE + GROWTH
Contracts in accumulation period:
DVA 80 35,295 $16.57 $585
DVA 100 299,829 16.47 4,940
DVA Series 100 11,112 16.31 181
DVA PLUS - Standard 362,210 16.36 5,926
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 3,293,704 16.29 53,670
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 2,452,149 16.22 39,786
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 2,354,360 16.16 38,039
____________
143,127
GLOBAL FIXED INCOME
Contracts in accumulation period:
DVA 80 1,419 13.42 19
DVA 100 13,446 13.31 179
DVA PLUS - Standard 6,337 13.17 83
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 396,068 13.09 5,184
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 119,924 13.00 1,560
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 194,008 12.92 2,506
____________
9,531
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
DEVELOPING WORLD
Contracts in accumulation period:
DVA 80 3,368 $7.32 $25
DVA 100 4,598 7.31 34
DVA PLUS - Standard 617 7.29 5
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 417,221 7.28 3,039
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 82,414 7.27 599
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 111,872 7.26 812
____________
4,514
GROWTH OPPORTUNITIES
Contracts in accumulation period:
DVA 100 13,050 9.69 126
DVA PLUS - Standard 5,235 9.67 51
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 141,597 9.65 1,367
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 126,683 9.64 1,221
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 141,959 9.63 1,367
____________
4,132
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
PIMCO HIGH YIELD BOND
Contracts in accumulation period:
DVA 80 2,973 $10.12 $30
DVA 100 107,998 10.11 1,092
DVA PLUS - Standard 213,774 10.09 2,157
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,630,971 10.08 16,440
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 1,066,219 10.07 10,737
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,558,466 10.06 15,678
____________
46,134
PIMCO STOCKSPLUS GROWTH AND INCOME
Contracts in accumulation period:
DVA 80 13,664 11.16 152
DVA 100 160,283 11.14 1,786
DVA PLUS - Standard 112,706 11.12 1,253
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 1,527,697 11.11 16,975
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 942,738 11.10 10,465
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,910,695 11.09 21,188
____________
51,819
</TABLE>
<TABLE>
<CAPTION>
UNIT TOTAL UNIT
DIVISION/CONTRACT UNITS VALUE VALUE
______________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
APPRECIATION
Contracts in accumulation period:
Granite PrimElite - Standard 1,108 $16.53 $18
Granite PrimElite - Annual Ratchet 58,107 16.47 957
____________
975
SMITH BARNEY HIGH INCOME
Contracts in accumulation period:
Granite PrimElite - Standard 12,711 13.66 174
Granite PrimElite - Annual Ratchet 46,593 13.58 633
____________
807
SMITH BARNEY LARGE CAP VALUE
Contracts in accumulation period:
Granite PrimElite - Standard 1,600 19.35 31
Granite PrimElite - Annual Ratchet 34,859 19.24 671
____________
702
SMITH BARNEY INTERNATIONAL EQUITY
Contracts in accumulation period:
Granite PrimElite - Standard 2,885 14.35 41
Granite PrimElite - Annual Ratchet 19,916 14.28 285
____________
326
SMITH BARNEY MONEY MARKET
Contracts in accumulation period:
Granite PrimElite - Standard 2,017 11.43 23
Granite PrimElite - Annual Ratchet 25,941 11.37 295
____________
318
INTERNATIONAL EQUITY
Contracts in accumulation period:
DVA PLUS - Annual Ratchet & 5.5% Solution,
ACCESS - Standard, PREMIUM PLUS - Standard,
ES II 2,422,075 10.29 24,919
DVA PLUS - 7% Solution,
ACCESS - Annual Ratchet & 5.5% Solution,
PREMIUM PLUS - Annual Ratchet &
5.5% Solution 680,861 10.32 7,025
ACCESS - 7% Solution,
PREMIUM PLUS - 7% Solution 1,736,713 10.27 17,841
____________
49,785
_____________ ____________
COMBINED 183,098,947 $3,319,843
============= ============
</TABLE>
7
<PAGE>
<PAGE>
APPENDIX: DESCRIPTION OF BOND RATINGS
Excerpts from Moody's Investors Service, Inc. ("Moody's) description
of its bond ratings:
Aaa: Judged to be the best quality; they carry the smallest degree of
investment risk.
Aa: Judged to be of high quality by all standards; together with the
Aaa group, they comprise what are generally known as high grade
bonds.
A: Possess many favorable investment attributes and are to be
considered as "upper medium grade obligations."
Baa: Considered as medium grade obligations, i.e., they are neither
highly protected nor poorly secured; interest payments and
principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically
unreliable over any great length of time.
Ba: Judged to have speculative elements; their future cannot be
considered as well assured.
B: Generally lack characteristics of the desirable investment.
Caa: Are of poor standing; such issues may be in default or there may
be present elements of danger with respect to principal or
interest.
Ca Speculative in a high degree; often in default.
C: Lowest rate class of bonds; regarded as having extremely poor
prospects.
Moody's also applies numerical indicators 1, 2 and 3 to rating
categories. The modifier 1 indicates that the security is in the
higher end of its rating category; 2 indicates a mid-range ranking;
and 3 indicates a ranking toward the lower end of the category.
Excerpts from Standard & Poor's Rating Group ("Standard & Poor's")
description of its bond ratings:
AAA: Highest grade obligations; capacity to pay interest and repay
principal is extremely strong.
AA: Also qualify as high grade obligations; a very strong capacity
to pay interest and repay principal and differs from AAA issues
only in small degree.
A: Regarded as upper medium grade; they have a strong capacity to
pay interest and repay principal although it is somewhat more
susceptible to the adverse effects of changes in circumstances
and economic conditions than debt in higher rated categories.
BBB: Regarded as having an adequate capacity to pay interest and
repay principal; whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity
than in higher rated categories - this group is the lowest which
qualifies for commercial bank investment.
BB, B,
CCC,
CC: Predominantly speculative with respect to capacity to pay
interest and repay principal in accordance with terms of the
obligation: BB indicates the lowest degree of speculation and CC
the highest.
Standard & Poor's applies indicators "+," no character, and "-"
to its rating categories. The indicators show relative standing
within the major rating categories.
A-1
<PAGE>
<PAGE>
