<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Assets and Liabilities
June 30, 1995 (unaudited)
Real U.S.
Money Growth and Precious High Estate Government
Market Income Metals Income Securities Securities
Fund Fund Fund Fund Fund Fund
----------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Money Market Fund, 30,538,519 shares,
cost $30,538,519 $30,538,519 - - - - -
Growth and Income Fund, 3,815,440 shares,
cost $51,187,785 - 56,697,439 - - - -
Precious Metals Fund, 598,238 shares,
cost $8,114,433 - - 8,309,529 - - -
High Income Fund, 2,326,916 shares,
cost $29,282,084 - - - 30,087,022 - -
Real Estate Securities Fund, 888,102 shares,
cost $13,338,690 - - - - 13,703,408 -
U.S. Government Securities Fund, 6,064,046 shares,
cost $81,333,882 - - - - - 79,924,131
Utility Equity Fund, 6,770,180 shares,
cost $109,794,791 - - - - - -
----------- ---------- --------- ---------- ---------- ----------
Total assets 30,538,519 56,697,439 8,309,529 30,087,022 13,703,408 79,924,131
----------- ---------- --------- ---------- ---------- ----------
Liabilities:
Accrued mortality and expense risk charges 51,371 62,119 10,805 34,223 16,917 87,516
Accrued administrative charges 6,165 7,454 1,297 4,107 2,030 10,502
----------- ---------- --------- ---------- ---------- ----------
Total liabilities 57,536 69,573 12,102 38,330 18,947 98,018
----------- ---------- --------- ---------- ---------- ----------
Net Assets $30,480,983 56,627,866 8,297,427 30,048,692 13,684,461 79,826,113
=========== ========== ========= ========== ========== ==========
Utility
Equity
Fund
-----------
<S> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Money Market Fund, 30,538,519 shares,
cost $30,538,519 -
Growth and Income Fund, 3,815,440 shares,
cost $51,187,785 -
Precious Metals Fund, 598,238 shares,
cost $8,114,433 -
High Income Fund, 2,326,916 shares,
cost $29,282,084 -
Real Estate Securities Fund, 888,102 shares,
cost $13,338,690 -
U.S. Government Securities Fund, 6,064,046 shares,
cost $81,333,882 -
Utility Equity Fund, 6,770,180 shares,
cost $109,794,791 103,989,961
-----------
Total assets 103,989,961
-----------
Liabilities:
Accrued mortality and expense risk charges 113,062
Accrued administrative charges 13,567
-----------
Total liabilities 126,629
-----------
Net Assets 103,863,332
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Assets and Liabilities (Continued)
June 30, 1995 (unaudited)
Zero Zero Zero Zero Investment
Coupon Coupon Coupon Coupon Global Grade Income
Fund - Fund - Fund - Fund - Income Intermediate Securities
1995 2000 2005 2010 Fund Bond Fund Fund
---------- ---------- --------- --------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Zero Coupon Fund - 1995, 376,076 shares,
cost $4,682,433 $4,403,848 - - - - - -
Zero Coupon Fund - 2000, 1,594,817 shares,
cost $22,813,257 - 23,651,136 - - - - -
Zero Coupon Fund - 2005, 512,201 shares,
cost $7,500,292 - - 8,056,919 - - - -
Zero Coupon Fund - 2010, 402,057 shares,
cost $5,674,052 - - - 6,292,185 - - -
Global Income Fund, 1,804,665 shares,
cost $23,149,080 - - - - 22,883,147 - -
Investment Grade Intermediate Bond Fund,
1,149,257 shares, cost $15,323,377 - - - - - 15,537,950 -
Income Securities Fund, 5,351,500 shares,
cost $79,637,489 - - - - - - 80,700,618
---------- ---------- --------- --------- ---------- ------------ ----------
Total assets 4,403,848 23,651,136 8,056,919 6,292,185 22,883,147 15,537,950 80,700,618
---------- ---------- --------- --------- ---------- ------------ ----------
Liabilities:
Accrued mortality and expense risk charges 6,708 27,123 11,155 8,703 26,791 18,630 87,573
Accrued administrative charges 805 3,255 1,339 1,044 3,215 2,236 10,509
---------- ---------- --------- --------- ---------- ------------ ----------
Total liabilities 7,513 30,378 12,494 9,747 30,006 20,866 98,082
---------- ---------- --------- --------- ---------- ------------ ----------
Net Assets $4,396,335 23,620,758 8,044,425 6,282,438 22,853,141 15,517,084 80,602,536
========== ========== ========= ========= ========== ============ ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Assets and Liabilities (Continued)
June 30, 1995 (unaudited)
Templeton
Adjustable Templeton Templeton Developing Templeton
U.S. Pacific Rising International Markets Global
Government Growth Dividends Equity Equity Growth
Fund Fund Fund Fund Fund Fund
----------- ---------- ---------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Adjustable U.S. Government Fund,
1,549,548 shares, cost $16,891,444 $16,084,304 - - - - -
Templeton Pacific Growth Fund, 1,890,006 shares,
cost $25,286,398 - 24,929,175 - - - -
Rising Dividends Fund, 2,986,984 shares,
cost $31,477,984 - - 33,155,528 - - -
Templeton International Equity Fund, 4,056,521 shares,
cost $50,729,307 - - - 52,613,079 - -
Templeton Developing Markets Equity Fund,
678,019 shares, cost $6,802,072 - - - - 6,651,362 -
Templeton Global Growth Fund, 1,055,023 shares,
cost $11,126,874 - - - - - 11,784,606
----------- ---------- ---------- ------------- ---------- ----------
Total assets 16,084,304 24,929,175 33,155,528 52,613,079 6,651,362 11,784,606
----------- ---------- ---------- ------------- ---------- ----------
Liabilities:
Accrued mortality and expense risk charges 19,758 29,089 37,093 58,040 8,944 14,907
Accrued administrative charges 2,371 3,491 4,451 6,965 1,073 1,789
----------- ---------- ---------- ------------- ---------- ----------
Total liabilities 22,129 32,580 41,544 65,005 10,017 16,696
----------- ---------- ---------- ------------- ---------- ----------
Net Assets $16,062,175 24,896,595 33,113,984 52,548,074 6,641,345 11,767,910
=========== ========== ========== ============= ========== ==========
Total
All
Funds
-----------
<S> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Adjustable U.S. Government Fund,
1,549,548 shares, cost $16,891,444
Templeton Pacific Growth Fund, 1,890,006 shares,
cost $25,286,398
Rising Dividends Fund, 2,986,984 shares,
cost $31,477,984
Templeton International Equity Fund, 4,056,521 shares,
cost $50,729,307
Templeton Developing Markets Equity Fund,
678,019 shares, cost $6,802,072
Templeton Global Growth Fund, 1,055,023 shares,
cost $11,126,874
Total assets 629,993,866
-----------
Liabilities:
Accrued mortality and expense risk charges 730,527
Accrued administrative charges 87,665
-----------
Total liabilities 818,192
-----------
Net Assets 629,175,674
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Operations
For the period ended June 30, 1995 (unaudited)
Money Growth and Precious High Real Estate
Market Income Metals Income Securities
Fund Fund Fund Fund Fund
------------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends reinvested in fund shares $ 896,021 686,196 114,561 1,981,032 449,629
------------- ----------- ----------- ----------- ------------
Expenses:
Mortality and expense risk charges 196,847 319,866 52,425 173,221 83,344
Administrative charges 23,622 38,384 6,291 20,787 10,001
------------- ----------- ----------- ----------- ------------
Total expenses 220,469 358,250 58,716 194,008 93,345
------------- ----------- ----------- ----------- ------------
Investment income (loss), net 675,552 327,946 55,845 1,787,024 356,284
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 1,493,701 84,810 - -
------------- ----------- ----------- ----------- ------------
Realized gains (losses) on sales of investments:
Proceeds from sales 17,634,787 2,783,760 1,757,539 2,118,785 1,884,797
Cost of investments sold (17,634,787) (2,519,477) (1,741,791) (2,043,615) (1,858,930)
------------- ----------- ----------- ----------- ------------
Total realized gains (losses) on
sales of investments, net - 264,283 15,749 75,170 25,867
------------- ----------- ----------- ----------- ------------
Realized gains (losses) on investments, net - 1,757,984 100,559 75,170 25,867
Net change in unrealized appreciation
(depreciation) on investments - 4,663,027 (166,056) 1,350,198 49,336
------------- ----------- ----------- ----------- ------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net - 6,421,011 (65,498) 1,425,368 75,203
------------- ----------- ----------- ----------- ------------
Net increase (decrease) in net assets from operations $ 675,552 6,748,957 (9,653) 3,212,392 431,487
============= =========== =========== =========== ============
U.S.
Government Utility
Securities Equity
Fund Fund
----------- -----------
<S> <C> <C>
Investment Income:
Dividends reinvested in fund shares 5,443,054 5,790,676
----------- -----------
Expenses:
Mortality and expense risk charges 483,258 635,438
Administrative charges 57,991 76,253
----------- -----------
Total expenses 541,249 711,691
----------- -----------
Investment income (loss), net 4,901,805 5,078,985
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - -
----------- -----------
Realized gains (losses) on sales of investments:
Proceeds from sales 5,462,509 6,237,528
Cost of investments sold (5,507,623) (6,546,683)
----------- -----------
Total realized gains (losses) on
sales of investments, net (45,114) (309,155)
----------- -----------
Realized gains (losses) on investments, net (45,114) (309,155)
Net change in unrealized appreciation
(depreciation) on investments 3,580,898 6,541,878
----------- -----------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 3,535,784 6,232,723
----------- -----------
Net increase (decrease) in net assets from operations 8,437,589 11,311,708
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Operations (Continued)
For the period ended June 30, 1995 (unaudited)
Zero Zero Zero Zero Investment
Coupon Coupon Coupon Coupon Global Grade
Fund Fund Fund Fund Income Intermediate
1995 2000 2005 2010 Fund Bond Fund
---------- ---------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends reinvested in fund shares $ 305,200 1,020,445 335,762 190,626 848,947 625,846
---------- ---------- ---------- ---------- ----------- -------------
Expenses:
Mortality and expense risk charges 29,613 129,585 46,420 32,773 141,295 97,359
Administrative charges 3,554 15,550 5,570 3,933 16,955 11,683
---------- ---------- ---------- ---------- ----------- -------------
Total expenses 33,167 145,135 51,990 36,706 158,250 109,042
---------- ---------- ---------- ---------- ----------- -------------
Investment income (loss), net 272,033 875,310 283,772 153,920 690,697 516,804
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds 1,505 - - - - -
---------- ---------- ---------- ---------- ----------- -------------
Realized gains (losses) on sales of investments:
Proceeds from sales 850,556 839,754 707,186 475,218 2,574,673 1,216,708
Cost of investments sold (860,901) (821,116) (672,348) (452,467) (2,647,815) (1,180,335)
---------- ---------- ---------- ---------- ----------- -------------
Total realized gains (losses) on
sales of investments, net (10,345) 18,638 34,838 22,751 (73,142) 36,373
---------- ---------- ---------- ---------- ----------- -------------
Realized gains (losses) on investments, net (8,840) 18,638 34,838 22,751 (73,142) 36,373
Net change in unrealized appreciation
(depreciation) on investments (89,147) 1,596,683 922,520 894,585 954,292 219,083
---------- ---------- ---------- ---------- ----------- -------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net (97,987) 1,615,321 957,358 917,336 881,150 255,456
---------- ---------- ---------- ---------- ----------- -------------
Net increase (decrease) in net assets from operations $ 174,046 2,490,631 1,241,130 1,071,256 1,571,847 772,260
========== ========== ========== ========== =========== =============
Income
Securities
Fund
-----------
<S> <C>
Investment Income:
Dividends reinvested in fund shares 4,463,912
-----------
Expenses:
Mortality and expense risk charges 476,034
Administrative charges 57,124
-----------
Total expenses 533,158
-----------
Investment income (loss), net 3,930,754
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds 359,303
-----------
Realized gains (losses) on sales of investments:
Proceeds from sales 3,938,068
Cost of investments sold (3,935,195)
-----------
Total realized gains (losses) on
sales of investments, net 2,874
-----------
Realized gains (losses) on investments, net 362,177
Net change in unrealized appreciation
(depreciation) on investments 3,848,814
-----------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 4,210,991
-----------
Net increase (decrease) in net assets from operations 8,141,745
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Operations (Continued)
For the period ended June 30, 1995 (unaudited)
Templeton
Adjustable Templeton Templeton Developing
U.S. Pacific Rising International Markets
Government Growth Dividends Equity Equity
Fund Fund Fund Fund Fund
------------ ----------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends reinvested in fund shares $ 1,064,752 475,320 705,270 868,500 24,621
------------ ----------- ----------- -------------- -----------
Expenses:
Mortality and expense risk charges 110,205 158,407 194,518 311,607 36,757
Administrative charges 13,225 19,009 23,342 37,393 4,411
------------ ----------- ----------- -------------- -----------
Total expenses 123,430 177,416 217,860 349,000 41,168
------------ ----------- ----------- -------------- -----------
Investment income (loss), net 941,322 297,904 487,410 519,500 (16,547)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 197,651 - 1,076,084 5,785
------------ ----------- ----------- -------------- -----------
Realized gains (losses) on sales of investments:
Proceeds from sales 5,438,016 6,035,031 2,167,123 6,984,328 901,678
Cost of investments sold (5,504,423) (6,223,856) (2,105,547) (6,884,192) (968,509)
------------ ----------- ----------- -------------- -----------
Total realized gains (losses) on
sales of investments, net (66,407) (188,825) 61,576 100,136 (66,831)
------------ ----------- ----------- -------------- -----------
Realized gains (losses) on investments, net (66,407) 8,826 61,576 1,176,220 (61,046)
Net change in unrealized appreciation
(depreciation) on investments (43,041) 72,309 3,175,212 1,683,531 241,495
------------ ----------- ----------- -------------- -----------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net (109,448) 81,135 3,236,788 2,859,751 180,449
------------ ----------- ----------- -------------- -----------
Net increase (decrease) in net assets from operations $ 831,874 379,039 3,724,198 3,379,251 163,902
============ =========== =========== ============== ===========
Templeton
Global Total
Growth All
Fund Funds
---------- ------------
<S> <C> <C>
Investment Income:
Dividends reinvested in fund shares 62,358 26,352,728
---------- ------------
Expenses:
Mortality and expense risk charges 64,461 3,773,433
Administrative charges 7,735 452,813
---------- ------------
Total expenses 72,196 4,226,246
---------- ------------
Investment income (loss), net (9,838) 22,126,482
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 3,218,839
---------- ------------
Realized gains (losses) on sales of investments:
Proceeds from sales 750,083 70,758,127
Cost of investments sold (740,364) (70,849,973)
---------- ------------
Total realized gains (losses) on
sales of investments, net 9,719 (91,845)
---------- ------------
Realized gains (losses) on investments, net 9,719 3,126,994
Net change in unrealized appreciation
(depreciation) on investments 665,430 30,161,047
---------- ------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 675,149 33,288,041
---------- ------------
Net increase (decrease) in net assets from operations 665,311 55,414,523
========== ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets
For the periods ended June 30, 1995 and 1994 (unaudited)
Money Market Fund Growth and Income Fund Precious Metals Fund
-------------- ----------- ----------- ------------ ---------- ------------
1995 1994 1995 1994 1995 1994
-------------- ----------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 675,552 126,230 327,946 (6,231) 55,845 (2,473)
Realized gains (losses) on investments, net - - 1,757,984 796,070 100,559 76,263
Net change in unrealized appreciation
(depreciation) on investments - - 4,663,027 (3,082,973) (166,056) (621,966)
-------------- ----------- ----------- ------------ ---------- ------------
Net increase (decrease) in net assets
from operations 675,552 126,230 6,748,957 (2,293,134) (9,653) (548,176)
-------------- ----------- ----------- ------------ ---------- ------------
Contract transactions:
Purchase payments 4,339,190 10,516,928 3,459,423 8,309,589 339,046 1,995,947
Transfers between funds (873,605) 7,328,120 3,609,393 3,545,194 (394,884) 1,133,539
Surrenders and terminations (4,279,413) (1,760,621) (2,752,852) (662,635) (677,373) (677,297)
Rescissions (125,472) (437,714) (81,192) (134,856) (10,660) -
Other transactions (note 2) 15,039 6,683 28,000 (12,132) 876 (421)
-------------- ----------- ----------- ------------ ---------- ------------
Net increase (decrease) in net assets
resulting from contract transactions (924,261) 15,653,396 4,262,772 11,045,160 (742,995) 2,451,768
-------------- ----------- ----------- ------------ ---------- ------------
Increase (decrease) in net assets (248,709) 15,779,626 11,011,729 8,752,026 (752,648) 1,903,592
-------------- ----------- ----------- ------------ ---------- ------------
Net assets at beginning of period 30,729,692 7,565,717 45,616,137 32,856,662 9,050,074 5,655,841
-------------- ----------- ----------- ------------ ---------- ------------
Net assets at end of period $ 30,480,983 23,345,343 56,627,866 41,608,688 8,297,427 7,559,433
============== =========== =========== ============ ========== ============
High Income Fund
------------ -----------
1995 1994
------------ -----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net 1,787,024 868,442
Realized gains (losses) on investments, net 75,170 192,122
Net change in unrealized appreciation
(depreciation) on investments 1,350,198 (2,000,979)
------------ -----------
Net increase (decrease) in net assets
from operations 3,212,392 (940,415)
------------ -----------
Contract transactions:
Purchase payments 1,965,219 6,290,063
Transfers between funds 2,400,518 570,833
Surrenders and terminations (2,424,261) (686,646)
Rescissions (89,709) (63,094)
Other transactions (note 2) 991 (2,663)
------------ -----------
Net increase (decrease) in net assets
resulting from contract transactions 1,852,758 6,108,493
------------ -----------
Increase (decrease) in net assets 5,065,150 5,168,078
------------ -----------
Net assets at beginning of period 24,983,542 17,206,793
------------ -----------
Net assets at end of period 30,048,692 22,374,871
============ ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets (Continued)
For the periods ended June 30, 1995 and 1994 (unaudited)
Real Estate Securities Fund U.S. Government Securities Fund Utility
------------- ---------------- ---------------- ---------------- ------------
1995 1994 1995 1994 1995
------------- ---------------- ---------------- ---------------- ------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 356,284 64,078 4,901,805 3,564,651 5,078,985
Realized gains (losses) on investments, net 25,867 35,285 (45,114) 239,526 (309,155)
Net change in unrealized appreciation
(depreciation) on investments 49,336 (780) 3,580,898 (9,453,439) 6,541,878
------------- ---------------- ---------------- ---------------- ------------
Net increase (decrease) in net assets
from operations 431,487 98,583 8,437,589 (5,649,262) 11,311,708
------------- ---------------- ---------------- ---------------- ------------
Contract transactions:
Purchase payments 445,326 2,968,721 2,683,509 11,918,840 2,625,725
Transfers between funds (553,337) 3,300,688 594,015 (11,328,715) 506,081
Surrenders and terminations (663,368) (418,486) (5,690,252) (2,866,706) (5,946,484)
Rescissions (3,433) (9,811) (30,893) (729,638) (66,182)
Other transactions (note 2) (7,228) 43 84,714 (8,450) 17,843
------------- ---------------- ---------------- ---------------- ------------
Net increase (decrease) in net assets
resulting from contract transactions (782,040) 5,841,155 (2,358,907) (3,014,669) (2,863,017)
------------- ---------------- ---------------- ---------------- ------------
Increase (decrease) in net assets (350,553) 5,939,738 6,078,682 (8,663,931) 8,448,691
------------- ---------------- ---------------- ---------------- ------------
Net assets at beginning of period 14,035,014 6,711,766 73,747,431 89,773,675 95,414,641
------------- ---------------- ---------------- ---------------- ------------
Net assets at end of period $ 13,684,461 12,651,504 79,826,113 81,109,744 103,863,332
============= ================ ================ ================ ============
Equity Fund
------------
1994
------------
<S> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net 3,528,301
Realized gains (losses) on investments, net (21,892)
Net change in unrealized appreciation
(depreciation) on investments (24,336,542)
------------
Net increase (decrease) in net assets
from operations (20,830,133)
------------
Contract transactions:
Purchase payments 12,763,019
Transfers between funds (20,235,546)
Surrenders and terminations (3,122,059)
Rescissions (295,071)
Other transactions (note 2) (3,725)
------------
Net increase (decrease) in net assets
resulting from contract transactions (10,893,382)
------------
Increase (decrease) in net assets (31,723,515)
------------
Net assets at beginning of period 129,527,153
------------
Net assets at end of period 97,803,638
============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets (Continued)
For the periods ended June 30, 1995 and 1994 (unaudited)
Zero Coupon Fund -1995 Zero Coupon Fund - 2000 Zero Coupon Fund - 2005
------------- ----------- ------------ ------------ ------------ ------------
1995 1994 1995 1994 1995 1994
------------- ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 272,033 235,765 875,310 630,187 283,772 194,127
Realized gains (losses) on investments, net (8,840) 10,543 18,638 137,124 34,838 113,965
Net change in unrealized appreciation
(depreciation) on investments (89,147) (301,149) 1,596,683 (1,779,030) 922,520 (970,367)
------------- ----------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations 174,046 (54,841) 2,490,631 (1,011,719) 1,241,130 (662,275)
------------- ----------- ------------ ------------ ------------ ------------
Contract transactions:
Purchase payments 95,257 827,109 2,814,868 3,756,805 596,545 1,104,682
Transfers between funds (197,909) 113,850 1,447,388 574,281 61,337 (863,723)
Surrenders and terminations (616,963) (214,624) (856,995) (595,457) (289,066) (106,796)
Rescissions - (51,312) (72,152) (142,345) (48,915) (25,340)
Other transactions (note 2) - (669) - (3,488) - (1,805)
------------- ----------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contract transactions (719,615) 674,354 3,333,109 3,589,796 319,901 107,018
------------- ----------- ------------ ------------ ------------ ------------
Increase (decrease) in net assets (545,569) 619,513 5,823,740 2,578,077 1,561,031 (555,257)
------------- ----------- ------------ ------------ ------------ ------------
Net assets at beginning of period 4,941,904 3,906,143 17,797,018 13,297,231 6,483,394 6,158,582
------------- ----------- ------------ ------------ ------------ ------------
Net assets at end of period $ 4,396,335 4,525,656 23,620,758 15,875,308 8,044,425 5,603,325
============= =========== ============ ============ ============ ============
Zero Coupon Fund - 2010
------------ ------------
1995 1994
------------ ------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net 153,920 116,813
Realized gains (losses) on investments, net 22,751 74,297
Net change in unrealized appreciation
(depreciation) on investments 894,585 (662,470)
------------ ------------
Net increase (decrease) in net assets
from operations 1,071,256 (471,360)
------------ ------------
Contract transactions:
Purchase payments 583,886 850,930
Transfers between funds 793,274 (752,761)
Surrenders and terminations (136,864) (54,863)
Rescissions (37,383) (22,722)
Other transactions (note 2) - (967)
------------ ------------
Net increase (decrease) in net assets
resulting from contract transactions 1,202,913 19,617
------------ ------------
Increase (decrease) in net assets 2,274,169 (451,743)
------------ ------------
Net assets at beginning of period 4,008,269 3,501,948
------------ ------------
Net assets at end of period 6,282,438 3,050,205
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets (Continued)
For the periods ended June 30, 1995 and 1994 (unaudited)
Global Income Fund Investment Grade Intermediate Bond Fund Income
------------ ------------ ----------------- ----------------------- -----------
1995 1994 1995 1994 1995
------------ ------------ ----------------- ----------------------- -----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 690,697 436,400 516,804 309,530 3,930,754
Realized gains (losses) on investments, net (73,142) 231,192 36,373 80,607 362,177
Net change in unrealized appreciation
(depreciation) on investments 954,292 (2,442,739) 219,083 (622,044) 3,848,814
------------ ------------ ----------------- ----------------------- -----------
Net increase (decrease) in net assets
from operations 1,571,847 (1,775,147) 772,260 (231,907) 8,141,745
------------ ------------ ----------------- ----------------------- -----------
Contract transactions:
Purchase payments 957,761 6,074,653 520,107 3,222,886 3,526,602
Transfers between funds (1,177,023) 2,944,910 (201,069) (557,655) 1,093,424
Surrenders and terminations (1,350,856) (458,394) (1,057,021) (433,215) (4,439,731)
Rescissions (42,594) (129,175) (27,743) (49,747) (129,119)
Other transactions (note 2) 6,253 5,042 40,062 2,762 20,638
------------ ------------ ----------------- ----------------------- -----------
Net increase (decrease) in net assets
resulting from contract transactions (1,606,459) 8,437,036 (725,664) 2,185,031 71,814
------------ ------------ ----------------- ----------------------- -----------
Increase (decrease) in net assets (34,612) 6,661,889 46,596 1,953,124 8,213,559
------------ ------------ ----------------- ----------------------- -----------
Net assets at beginning of period 22,887,753 15,302,232 15,470,488 12,850,330 72,388,977
------------ ------------ ----------------- ----------------------- -----------
Net assets at end of period $22,853,141 21,964,121 15,517,084 14,803,454 80,602,536
============ ============ ================= ======================= ===========
Securities Fund
----------------
1994
----------------
<S> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net 1,525,761
Realized gains (losses) on investments, net 298,425
Net change in unrealized appreciation
(depreciation) on investments (5,853,867)
----------------
Net increase (decrease) in net assets
from operations (4,029,681)
----------------
Contract transactions:
Purchase payments 21,628,164
Transfers between funds 5,045,370
Surrenders and terminations (1,530,223)
Rescissions (472,872)
Other transactions (note 2) 1,770
----------------
Net increase (decrease) in net assets
resulting from contract transactions 24,672,209
----------------
Increase (decrease) in net assets 20,642,528
----------------
Net assets at beginning of period 46,706,650
----------------
Net assets at end of period 67,349,178
================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets (Continued)
For the periods ended June 30, 1995 and 1994 (unaudited)
Adjustable U.S. Templeton Pacific
Government Fund Growth Fund Rising Dividends Fund
------------ ----------- ----------- ----------- ----------- ---------------
1995 1994 1995 1994 1995 1994
------------ ----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 941,322 814,038 297,904 (82,637) 487,410 284,878
Realized gains (losses) on investments, net (66,407) (29,664) 8,826 226,963 61,576 (65,713)
Net change in unrealized appreciation
(depreciation) on investments (43,041) (966,528) 72,309 (1,438,367) 3,175,212 (1,921,735)
------------ ----------- ----------- ----------- ----------- ---------------
Net increase (decrease) in net assets
from operations 831,874 (182,154) 379,039 (1,294,041) 3,724,198 (1,702,570)
------------ ----------- ----------- ----------- ----------- ---------------
Contract transactions:
Purchase payments 1,235,817 6,870,255 1,434,868 7,620,724 1,273,420 3,868,331
Transfers between funds (4,304,093) (6,032,754) (2,673,384) 5,259,749 940,493 (1,896,536)
Surrenders and terminations (1,287,475) (467,286) (1,272,550) (877,825) (1,487,414) (524,202)
Rescissions - (77,529) (27,167) (53,549) (37,156) (55,722)
Other transactions (note 2) 14,761 (5,763) 18,713 (3,232) 15,805 (1,310)
------------ ----------- ----------- ----------- ----------- ---------------
Net increase (decrease) in net assets
resulting from contract transactions (4,340,990) 286,923 (2,519,520) 11,945,867 705,148 1,390,561
------------ ----------- ----------- ----------- ----------- ---------------
Increase (decrease) in net assets (3,509,116) 104,769 (2,140,481) 10,651,826 4,429,346 (312,009)
------------ ----------- ----------- ----------- ----------- ---------------
Net assets at beginning of period 19,571,291 22,178,644 27,037,076 13,023,202 28,684,638 28,622,815
------------ ----------- ----------- ----------- ----------- ---------------
Net assets at end of period $16,062,175 22,283,413 24,896,595 23,675,028 33,113,984 28,310,806
============ =========== =========== =========== =========== ===============
Templeton International
Equity Fund
----------- --------------
1995 1994
----------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net 519,500 (100,315)
Realized gains (losses) on investments, net 1,176,220 447,016
Net change in unrealized appreciation
(depreciation) on investments 1,683,531 (1,137,306)
----------- --------------
Net increase (decrease) in net assets
from operations 3,379,251 (790,605)
----------- --------------
Contract transactions:
Purchase payments 3,271,725 13,214,663
Transfers between funds (1,533,987) 10,373,860
Surrenders and terminations (2,102,411) (709,764)
Rescissions (100,132) (293,742)
Other transactions (note 2) 26,294 3,865
----------- --------------
Net increase (decrease) in net assets
resulting from contract transactions (438,511) 22,588,882
----------- --------------
Increase (decrease) in net assets 2,940,740 21,798,277
----------- --------------
Net assets at beginning of period 49,607,334 16,450,520
----------- --------------
Net assets at end of period 52,548,074 38,248,797
=========== ==============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Statements of Changes in Net Assets (Continued)
For the periods ended June 30, 1995 and 1994 (unaudited)
Developing Markets Templeton Global
Equity Fund Growth Fund Total All Funds
------------ ---------- ----------- ---------- ------------ ------------
1995 1994 1995 1994 1995 1994
------------ ---------- ----------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ (16,547) (1,188) (9,838) (1,917) 22,126,482 12,504,440
Realized gains (losses) on investments, net (61,046) - 9,719 - 3,126,994 2,842,129
Net change in unrealized appreciation
(depreciation) on investments 241,495 (5,153) 665,430 (9,516) 30,161,047 (57,606,950)
------------ ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
from operations 163,902 (6,341) 665,311 (11,433) 55,414,523 (42,260,381)
------------ ---------- ----------- ---------- ------------ ------------
Contract transactions:
Purchase payments 812,768 856,055 1,680,148 912,748 34,661,210 125,571,112
Transfers between funds 157,346 349,395 306,022 1,127,901 - -
Surrenders and terminations (96,426) - (291,989) - (37,719,764) (16,167,099)
Rescissions - - (7,629) - (937,531) (3,044,239)
Other transactions (note 2) 14,796 (15) 15,746 - 313,303 (24,475)
------------ ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from contract transactions 888,484 1,205,435 1,702,298 2,040,649 (3,682,782) 106,335,299
------------ ---------- ----------- ---------- ------------ ------------
Increase (decrease) in net assets 1,052,386 1,199,094 2,367,609 2,029,216 51,731,741 64,074,918
------------ ---------- ----------- ---------- ------------ ------------
Net assets at beginning of period 5,588,959 - 9,400,301 - 577,443,933 471,295,904
Net assets at end of period $ 6,641,345 1,199,094 11,767,910 2,029,216 629,175,674 535,370,822
============ ========== =========== ========== ============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PREFERRED LIFE VARIABLE ACCOUNT C
of
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Notes to Financial Statements
June 30, 1995 (unaudited)
1. ORGANIZATION
Preferred Life Variable Account C (Variable Account) is a segregated
investment account of Preferred Life Insurance Company of New York (Preferred
Life) and is registered with the Securities and Exchange Commission as a unit
investment trust pursuant to the provisions of the Investment Company Act of
1940 (as amended). The Variable Account was established by Preferred Life on
February 26, 1988 and commenced opera-tions September 6, 1991. Accordingly,
it is an accounting entity wherein all segregated account transac-tions are
reflected.
The Variable Account's assets are the property of Preferred Life and are held
for the benefit of the owners and other persons entitled to payments under
variable annuity contracts issued through the Variable Account and
underwritten by Preferred Life. The assets of the Variable Account, equal to
the reserves and other liabilities of the Variable Account, are not chargeable
with liabilities that arise from any other business which Preferred Life may
conduct.
The Variable Account's sub-accounts may invest, at net asset values, in one or
more of the funds of the Franklin Valuemark Funds (FVF), managed by Franklin
Advisers, Inc., in accordance with the selection made by the contract owner.
Certain officers and trustees of the FVF are also officers and/or directors of
Franklin Advisers, Inc. and/or Preferred Life.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
Investments of the Variable Account are valued daily at market value using net
asset values provided by Franklin Advisers, Inc.
Realized investment gains include gains on the sale of fund shares as
determined by the average cost method. Dividend distributions received from
the FVF are reinvested in additional shares of the FVF and are recorded as
income to the Variable Account on the ex-dividend date.
The Templeton Developing Markets Equity Fund and Templeton Global Growth Fund
were added as available investment options on April 25, 1994.
In April 1995, the Equity Growth Fund name was changed to Growth and Income
Fund.
<PAGE>
EXPENSES
ASSET BASED EXPENSES
A mortality and expense risk charge is deducted from the Variable Account on a
daily basis equal, on an annual basis, to 1.25% of the daily net assets of the
Variable Account.
An administrative charge is deducted from the Variable Account on a daily
basis equal, on an annual basis, to .15% of the daily net assets of the
Variable Account.
CONTRACT BASED EXPENSES
A contract maintenance charge is paid by the contract owner annually from each
contract by liquidating contract units at the end of the contract year and at
the time of full surrender. The amount of the charge is $30 each year.
Contract maintenance charges deducted during the periods ended June 30, 1995
and 1994 were $246,600 and $155,550, respectively. These contract charges are
reflected in the financial statements as other transactions.
A contingent deferred sales charge is deducted from the contract value at the
time of a surrender. This charge applies only to a surrender of purchase
payments received within five years of the date of surrender. For this
purpose, purchase payments are allocated on a first-in, first-out basis. The
amount of the contingent deferred sales charge is calculated by: (a)
allocating purchase payments to the amount surrendered; and (b) multiplying
each allocated purchase payment that has been held under the contract for the
period shown below by the charge shown below:
<TABLE>
<CAPTION>
<S> <C>
Years Since Payment Charge
- ------------------- -------
0-1 5%
1-2 5%
2-3 4%
3-4 3%
4-5 1.5%
5 + 0
</TABLE>
and (c) adding the products of each multiplication in (b) above.
<PAGE>
A contract owner may, not more frequently than once annually on a cumulative
basis, make a surrender each contract year of fifteen percent (15%) of
purchase payments paid less any prior surrenders without incurring a
contingent deferred sales charge.
For a partial surrender, the contingent deferred sales charge will be deducted
from the remaining contract value, if sufficient; otherwise it will be
deducted from the amount surrendered.
Total contingent deferred sales charges paid by the contract owners for the
periods ended June 30, 1995 and 1994 were $732,113 and $360,865, respectively.
Currently, twelve transfers are permitted each contract year. Thereafter, the
fee is $25 per transfer, or 2% of the amount transferred, if less. Currently,
transfers associated with the dollar cost averaging program are not counted.
Total transfer charges for the periods ended June 30, 1995 and 1994 were
$6,393 and $10,000, respectively.
Premium taxes or other taxes payable to a state or other governmental entity
will be charged against the contract values. Preferred Life may, at its sole
discretion, pay taxes when due and deduct that amount from the contract value
at a later date. Payment at an earlier date does not waive any right
Preferred Life may have to deduct such amounts at a later date.
On certain contracts, a systematic withdrawal plan is available which allows
an owner to withdraw annually up to 9% of purchase payments less prior
surrenders, paid quarterly, without incurring a contingent deferred sales
charge. The exercise of the systematic withdrawal plan in any contract year
replaces the 15% penalty free privilege for that year.
A rescission is defined as a contract that is returned to the company and
canceled within the free-look period, generally within 10 days.
<PAGE>
3. INVESTMENT TRANSACTIONS
The sub-account purchases of fund shares, including reinvestment of dividend
distributions, were as follows during the period ended June 30, 1995:
<TABLE>
<CAPTION>
<S> <C>
Money Market Fund $17,434,546
Growth and Income Fund 8,931,427
Precious Metals Fund 1,163,916
High Income Fund 5,792,575
Real Estate Securities Fund 1,474,386
U.S. Government Securities Fund 8,095,655
Utility Equity Fund 8,570,185
Zero Coupon Fund - 1995 408,645
Zero Coupon Fund - 2000 5,074,308
Zero Coupon Fund - 2005 1,320,850
Zero Coupon Fund - 2010 1,838,756
Global Income Fund 1,685,162
Investment Grade Intermediate Bond Fund 1,024,892
Income Securities Fund 8,390,098
Adjustable U.S. Government Fund 2,056,778
Templeton Pacific Growth Fund 4,039,483
Rising Dividends Fund 3,396,540
Templeton International Equity Fund 8,200,402
Templeton Developing Markets Equity Fund 1,786,570
Templeton Global Growth Fund 2,455,740
</TABLE>
4. FEDERAL INCOME TAXES
Operations of the Variable Account form a part of, and are taxed with,
operations of Preferred Life, which is taxed as a life insurance company under
the Internal Revenue Code.
Preferred Life does not expect to incur any federal income taxes in the
operation of the Variable Account. If in the future Preferred Life determines
that the Variable Account may incur federal income taxes, it may then assess a
charge against the Variable Account for such taxes.
<TABLE>
<CAPTION>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY
Transactions in units for each fund for the period ended June 30, 1995 and the year ended December 31, 1994 were as
follows:
Growth Real U.S.
Money and Precious High Estate Government
Market Income Metals Income Securities Securities
Fund Fund Fund Fund Fund Fund
------------- ----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1993 627,038 2,402,339 391,041 1,135,378 436,709 6,107,774
Contract transactions:
Purchase payments 1,661,743 923,189 255,888 600,639 314,797 1,080,502
Transfers between funds 742,599 305,438 80,754 107,167 208,412 (1,203,909)
Surrenders and terminations (502,247) (161,395) (78,581) (126,425) (59,351) (593,751)
Rescissions (50,318) (16,981) (1,666) (7,160) (1,532) (59,151)
Other transactions 8,617 (648) (21) 713 987 (934)
------------- ----------- ---------- ----------- ----------- -----------
Net increase (decrease) in accumulation
units resulting from contract transactions 1,860,394 1,049,603 256,374 574,934 463,313 (777,243)
------------- ----------- ---------- ----------- ----------- -----------
Units outstanding at December 31, 1994 2,487,432 3,451,942 647,415 1,710,312 900,022 5,330,531
============= =========== ========== =========== =========== ===========
Accumulation unit value per unit at
December 31, 1994 $ 12.354 13.215 13.979 14.608 15.594 13.835
============= =========== ========== =========== =========== ===========
Contract transactions:
Purchase payments 347,740.00 241,889 25,014 124,834 28,993 182,001
Transfers between funds (68,386.00) 251,000 (30,173) 153,698 (37,665) 38,488
Surrenders and terminations (343,138.00) (193,980) (49,494) (155,946) (42,764) (388,164)
Rescissions (9,986.00) (5,640) (826) (5,654) (216) (2,120)
Other transactions 1,209.00 1,946 70 62 (454) -
------------- ----------- ---------- ----------- ----------- -----------
Net increase (decrease) in accumulation
units resulting from contract transactions (72,561) 295,215 (55,409) 116,994 (52,106) (169,795)
------------- ----------- ---------- ----------- ----------- -----------
Units outstanding at June 30, 1995 2,414,871 3,747,157 592,006 1,827,306 847,916 5,160,736
============= =========== ========== =========== =========== ===========
Accumulation unit value per unit at
June 30, 1995 $ 12.622 15.112 14.016 16.444 16.139 15.451
============= =========== ========== =========== =========== ===========
Accumulation net assets at June 30, 1995 $ 30,480,983 56,627,866 8,297,427 30,048,692 13,684,461 79,826,113
============= =========== ========== =========== =========== ===========
Zero Zero Zero
Utility Coupon Coupon Coupon
Equity Fund - Fund - Fund -
Fund 1995 2000 2005
------------ ---------- ----------- ----------
<S> <C> <C> <C> <C>
Units outstanding at December 31, 1993 7,478,993 269,765 795,411 341,197
Contract transactions:
Purchase payments 1,051,921 70,708 414,919 125,015
Transfers between funds (1,696,778) 42,828 68,710 (40,577)
Surrenders and terminations (491,312) (35,886) (112,129) (21,155)
Rescissions (24,704) (3,621) (9,747) (1,457)
Other transactions (922) (118) 503 (227)
------------ ---------- ----------- ----------
Net increase (decrease) in accumulation
units resulting from contract transactions (1,161,795) 73,911 362,256 61,599
------------ ---------- ----------- ----------
Units outstanding at December 31, 1994 6,317,198 343,676 1,157,667 402,796
============ ========== =========== ==========
Accumulation unit value per unit at
December 31, 1994 15.104 14.380 15.373 16.096
============ ========== =========== ==========
Contract transactions:
Purchase payments 163,594 6,498 173,247 33,816
Transfers between funds 34,441 (13,467) 86,362 5,345
Surrenders and terminations (368,754) (41,954) (52,720) (17,135)
Rescissions (4,057) - (4,521) (2,781)
Other transactions 1,181 - - -
------------ ---------- ----------- ----------
Net increase (decrease) in accumulation
units resulting from contract transactions (173,595) (48,923) 202,368 19,245
------------ ---------- ----------- ----------
Units outstanding at June 30, 1995 6,143,603 294,753 1,360,035 422,041
============ ========== =========== ==========
Accumulation unit value per unit at
June 30, 1995 16.906 14.915 17.368 19.061
============ ========== =========== ==========
Accumulation net assets at June 30, 1995 103,863,332 4,396,335 23,620,758 8,044,425
============ ========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY (CONTINUED)
Zero Investment Adjustable Templeton
Coupon Global Grade Income U.S. Pacific Rising
Fund - Income Intermediate Securities Government Growth Dividends
2010 Fund Bond Fund Fund Fund Fund Fund
----------- ----------- ------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1993 193,003 1,044,532 893,048 2,633,679 1,970,803 914,981 2,771,594
Contract transactions:
Purchase payments 76,028 561,113 300,084 1,705,232 968,718 921,042 599,000
Transfers between funds (8,676) 180,054 (37,700) 374,341 (1,032,132) 440,484 (261,335)
Surrenders and terminations (7,322) (107,849) (66,963) (256,277) (130,996) (157,447) (161,474)
Rescissions (1,286) (11,608) (3,708) (40,792) (8,659) (8,240) (10,761)
Other transactions (127) 1,196 348 9 (819) 1,165 (653)
----------- ----------- ------------- ----------- ----------- ----------- -----------
Net increase (decrease) in
accumulation units resulting
from contract transactions 58,617 622,906 192,061 1,782,513 (203,888) 1,197,004 164,777
----------- ----------- ------------- ----------- ----------- ----------- -----------
Units outstanding at
December 31, 1994 251,620 1,667,438 1,085,109 4,416,192 1,766,915 2,111,985 2,936,371
=========== =========== ============= =========== =========== =========== ===========
Accumulation unit value per
unit at December 31, 1994 $ 15.930 13.726 14.257 16.392 11.077 12.802 9.769
=========== =========== ============= =========== =========== =========== ===========
Contract transactions:
Purchase payments 33,605 68,039 35,374 204,485 108,955 113,896 120,514
Transfers between funds 44,866 (84,779) (13,657) 63,482 (380,214) (211,631) 89,256
Surrenders and terminations (7,534) (96,221) (72,135) (259,400) (113,510) (100,724) (143,428)
Rescissions (1,958) (2,981) (1,902) (7,608) - (2,099) (3,495)
Other transactions - 458 2,764 1,254 1,327 1,430 1,583
----------- ----------- ------------- ----------- ----------- ----------- -----------
Net increase (decrease) in
accumulation units resulting
from contract transactions 68,979 (115,484) (49,556) 2,213 (383,442) (199,128) 64,430
----------- ----------- ------------- ----------- ----------- ----------- -----------
Units outstanding at
June 30, 1995 320,599 1,551,954 1,035,553 4,418,405 1,383,473 1,912,857 3,000,801
=========== =========== ============= =========== =========== =========== ===========
Accumulation unit value per
unit at June 30, 1995 $ 19.596 14.725 14.984 18.242 11.610 13.015 11.035
----------- ----------- ------------- ----------- ----------- ----------- -----------
Accumulation net assets at
June 30, 1995 $6,282,438 22,853,141 15,517,084 80,602,536 16,062,175 24,896,595 33,113,984
=========== =========== ============= =========== =========== =========== ===========
Templeton
Templeton Developing Templeton
International Markets Global Total
Equity Equity Growth All
Fund Fund Fund Funds
-------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Units outstanding at
December 31, 1993 1,345,574 - - 31,752,859
Contract transactions:
Purchase payments 1,712,426 358,401 482,780 14,184,145
Transfers between funds 1,226,646 242,892 455,573 194,791
Surrenders and terminations (175,010) (8,146) (13,427) (3,267,143)
Rescissions (32,139) (2,370) (3,306) (299,206)
Other transactions 1,611 381 (99) 10,962
-------------- ----------- ----------- ------------
Net increase (decrease) in
accumulation units resulting
from contract transactions 2,733,534 591,158 921,521 10,823,549
-------------- ----------- ----------- ------------
Units outstanding at
December 31, 1994 4,079,108 591,158 921,521 42,576,408
============== =========== =========== ============
Accumulation unit value per
unit at December 31, 1994 12.161 9.454 10.201
============== =========== ===========
Contract transactions:
Purchase payments 266,802 88,967 161,589 2,529,852
Transfers between funds (127,155) 15,123 28,410 (156,656)
Surrenders and terminations (172,077) (10,557) (28,151) (2,657,786)
Rescissions (8,085) - (722) (64,651)
Other transactions 2,119 1,509 1,478 17,936
-------------- ----------- ----------- ------------
Net increase (decrease) in
accumulation units resulting
from contract transactions (38,396) 95,042 162,604 (331,305)
-------------- ----------- ----------- ------------
Units outstanding at
June 30, 1995 4,040,712 686,200 1,084,125 42,245,103
============== =========== =========== ============
Accumulation unit value per
unit at June 30, 1995 13.005 9.678 10.855
-------------- ----------- -----------
Accumulation net assets at
June 30, 1995 52,548,074 6,641,345 11,767,910 629,175,674
============== =========== =========== ============
</TABLE>
<PAGE>
