Variable Annuity Account G
Statement of Assets and Liabilities - December 31, 1999
ASSETS:
Investments, at net asset value: (Note 1)
<TABLE>
<CAPTION>
Net
Shares Cost Assets
------ ---- ------
<S> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA: 637,599 $ 26,932,506 $ 52,480,754
Bond Fund/VA: 642,388 7,634,022 7,400,304
Capital Appreciation Fund/VA: 940,621 28,997,175 46,880,528
Global Securities Fund/VA: 1,080,654 21,359,950 36,104,664
High Income Fund/VA: 1,094,571 12,066,340 11,733,796
Money Fund/VA: 7,261,390 7,259,084 7,261,390
Multiple Strategies Fund/VA: 1,459,271 22,790,656 25,478,869
Strategic Bond Fund/VA: 1,606,728 8,191,312 7,985,436
------------ ------------
NET ASSETS $135,231,045 $195,325,741
============ ============
</TABLE>
Net assets represented by:
Reserves for annuity contracts in accumulation period: (Notes 1 and 6)
<TABLE>
<S> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA:
Annuity contracts in accumulation .................................. $ 52,480,754
Bond Fund/VA:
Annuity contracts in accumulation .................................. 7,400,304
Capital Appreciation Fund/VA:
Annuity contracts in accumulation .................................. 46,880,528
Global Securities Fund/VA:
Annuity contracts in accumulation .................................. 36,104,664
High Income Fund/VA:
Annuity contracts in accumulation .................................. 11,733,796
Money Fund/VA:
Annuity contracts in accumulation .................................. 7,261,390
Multiple Strategies Fund/VA:
Annuity contracts in accumulation .................................. 25,478,869
Strategic Bond Fund/VA:
Annuity contracts in accumulation .................................. 7,985,436
------------
$195,325,741
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Variable Annuity Account G
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Year Ended
December 31, 1999
-----------------
<S> <C>
INVESTMENT INCOME:
Income: (Notes 1, 3 and 5)
Dividends ................................................... $ 9,396,460
Expenses: (Notes 2 and 5)
Valuation period deductions ................................. (2,649,388)
------------
Net investment income ........................................ $ 6,747,072
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1, 4 and 5)
Proceeds from sales ......................................... $125,128,905
Cost of investments sold .................................... 101,271,790
------------
Net realized gain on investments ........................... 23,857,115
------------
Net unrealized gain on investments: (Note 5)
Beginning of year ........................................... 31,258,168
End of year ................................................. 60,094,696
------------
Net change in unrealized gain on investments ............... 28,836,528
------------
Net realized and unrealized gain on investments .............. 52,693,643
------------
Net increase in net assets resulting from operations ......... $ 59,440,715
============
</TABLE>
See Notes to Financial Statements
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
--------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income ................................................. $ 6,747,072 $ 14,441,131
Net realized gain on investments ...................................... 23,857,115 18,329,860
Net change in unrealized gain on investments .......................... 28,836,528 (8,603,889)
------------- -------------
Net increase in net assets resulting from operations .................. 59,440,715 24,167,102
------------- -------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments ........................... 557,392 675,807
Transfers from the Company's fixed account options .................... 4,474 0
Redemptions by contract holders ....................................... (1,683,454) (1,382,953)
Transfer from other variable annuity accounts ......................... (97,250,021) (87,122,422)
Other ................................................................. 123,288 39,729
------------- -------------
Net (decrease) in net assets from unit transactions (Note 6) ......... (98,248,321) (87,789,839)
------------- -------------
Change in net assets .................................................. (38,807,606) (63,622,737)
NET ASSETS:
Beginning of year ..................................................... 234,133,347 297,756,084
------------- -------------
End of year ........................................................... $ 195,325,741 $ 234,133,347
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Variable Annuity Account G
Condensed Financial Information - Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------------------------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA:
CLIAC I $ 37.962 $ 68.768 81.15% 763,158.0 $ 52,480,754
- ------------------------------------------------------------------------------------------------------------------------
Bond Fund/VA:
CLIAC I 17.014 16.531 (2.84%) 447,659.3 7,400,304
- ------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund/VA:
CLIAC I 38.044 53.169 39.76% 881,725.2 46,880,528
- ------------------------------------------------------------------------------------------------------------------------
Global Securities Fund/VA:
CLIAC I 24.087 37.663 56.36% 958,625.4 36,104,664
- ------------------------------------------------------------------------------------------------------------------------
High Income Fund/VA:
CLIAC I 24.187 24.886 2.89% 471,505.1 11,733,796
- ------------------------------------------------------------------------------------------------------------------------
Money Fund/VA:
CLIAC I 13.429 13.907 3.56% 522,143.4 7,261,390
- ------------------------------------------------------------------------------------------------------------------------
Multiple Strategies Fund/VA:
CLIAC I 23.159 25.544 10.30% 997,438.8 25,478,869
- ------------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA:
CLIAC I 13.436 13.630 1.44% 585,872.6 7,985,436
- ------------------------------------------------------------------------------------------------------------------------
Total $195,325,741
========================================================================================================================
</TABLE>
<TABLE>
<S> <C>
CLIAC I Certain Individual contracts issued as non-qualified deferred annuity contracts or Individual Retirement Annuity
contracts.
</TABLE>
See Notes to Financial Statements
<PAGE>
Variable Annuity Account G
Notes to Financial Statements - December 31, 1999
1. Summary of Significant Accounting Policies
Variable Annuity Account G (the "Account") is a separate account
established by Aetna Life Insurance and Annuity Company (the "Company") and
is registered under the Investment Company Act of 1940 as a unit investment
trust. The Account is sold exclusively for use with the individual deferred
variable annuity contracts originally issued by Confederation Life
Insurance and Annuity Company. The Contract allows tax-deferred capital
accumulation under specific sections of the Internal Revenue Code of 1986,
as amended. The account commenced operations on October 2, 1995.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect amounts reported therein. Actual results could
differ from these estimates.
a. Valuation of Investments
Investments in the following Funds are stated at the closing net asset
value per share as determined by each Fund on December 31, 1999:
Oppenheimer Funds:
o Aggressive Growth Fund/VA
o Bond Fund/VA
o Capital Appreciation Fund/VA
o Global Securities Fund/VA
o High Income Fund/VA
o Money Fund/VA
o Multiple Strategies Fund/VA
o Strategic Bond Fund/VA
b. Other
Investment transactions are accounted for on a trade date basis and
dividend income is recorded on the ex-dividend date. The cost of
investments sold is determined by specific identification.
c. Federal Income Taxes
The operations of the Account form a part of, and are taxed with, the total
operations of the Company which is taxed as a life insurance company under
the Internal Revenue Code of 1986, as amended.
d. Annuity Reserves
Annuity reserves held in the Account are computed for currently payable
contracts according to the Progressive Annuity, a49, 1971 Individual
Annuity Mortality, 1971 Group Annuity Mortality, 83a, and 1983 Group
Annuity Mortality tables using various assumed interest rates not to exceed
seven percent. Mortality experience is monitored by the Company. Charges to
annuity reserves for mortality experience are reimbursed to the Company if
the reserves required are less than originally estimated. If additional
reserves are required, the Company reimburses the Account.
2. Valuation Period Deductions
Deductions by the Account for mortality and expense risk charges are made
in accordance with the terms of the contracts and are paid to the Company.
3. Dividend Income
On an annual basis, the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to
the Account are automatically reinvested in shares of the Funds. The
Account's proportionate share of each Fund's undistributed net investment
income (distributions in excess of net investment income) and accumulated
net realized gain (loss) on investments is included in net unrealized gain
(loss) in the Statement of Operations.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the year ended December 31, 1999 aggregated
$33,627,656 and $125,128,905.
<PAGE>
Variable Annuity Account G
Notes to Financial Statements - December 31, 1999 (continued):
5. Supplemental Information to Statements of Operations
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Valuation Proceeds Cost of
Period from Investments
Dividends Deductions Sales Sold
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA: (1)
Annuity contracts in accumulation $ 0 ($ 578,402) $ 22,957,073 $ 16,274,773
- --------------------------------------------------------------------------------------------------
Bond Fund/VA: (2)
Annuity contracts in accumulation 508,922 (122,218) 5,120,823 4,959,801
- --------------------------------------------------------------------------------------------------
Capital Appreciation Fund/VA: (3)
Annuity contracts in accumulation 1,953,203 (618,065) 24,429,144 14,821,814
- --------------------------------------------------------------------------------------------------
Global Securities Fund/VA: (4)
Annuity contracts in accumulation 1,560,693 (436,331) 18,265,335 12,569,302
- --------------------------------------------------------------------------------------------------
High Income Fund/VA: (5)
Annuity contracts in accumulation 1,281,353 (219,710) 13,119,190 13,759,479
- --------------------------------------------------------------------------------------------------
Money Fund/VA: (6)
Annuity contracts in accumulation 417,306 (116,714) 17,778,597 17,767,964
- --------------------------------------------------------------------------------------------------
Multiple Strategies Fund/VA: (7)
Annuity contracts in accumulation 3,036,551 (421,973) 18,261,054 15,693,513
- --------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (8)
Annuity contracts in accumulation 638,432 (135,975) 5,197,689 5,425,144
- --------------------------------------------------------------------------------------------------
Total Variable Annuity Account G $9,396,460 ($ 2,649,388) $125,128,905 $101,271,790
==================================================================================================
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Net Unrealized
Gain (Loss) Net Net
Year Ended December 31, 1999 Net ------------------------------ Change in Increase (Decrease)
Realized Unrealized in Net Assets
Gain (Loss) Beginning End Gain (Loss) Resulting from
on Investments of Year of Year on Investments Operations
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA: (1)
Annuity contracts in accumulation $ 6,682,300 $ 5,370,139 $25,548,248 $ 20,178,109 $26,282,007
- -------------------------------------------------------------------------------------------------------------------------
Bond Fund/VA: (2)
Annuity contracts in accumulation 161,022 580,059 (233,718) (813,777) (266,051)
- -------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund/VA: (3)
Annuity contracts in accumulation 9,607,330 13,738,433 17,883,353 4,144,920 15,087,388
- -------------------------------------------------------------------------------------------------------------------------
Global Securities Fund/VA: (4)
Annuity contracts in accumulation 5,696,033 7,268,247 14,744,714 7,476,467 14,296,862
- -------------------------------------------------------------------------------------------------------------------------
High Income Fund/VA: (5)
Annuity contracts in accumulation (640,289) (496,308) (332,544) 163,764 585,118
- -------------------------------------------------------------------------------------------------------------------------
Money Fund/VA: (6)
Annuity contracts in accumulation 10,633 8,367 2,306 (6,061) 305,164
- -------------------------------------------------------------------------------------------------------------------------
Multiple Strategies Fund/VA: (7)
Annuity contracts in accumulation 2,567,541 4,829,304 2,688,213 (2,141,091) 3,041,028
- -------------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (8)
Annuity contracts in accumulation (227,455) (40,073) (205,876) (165,803) 109,199
- -------------------------------------------------------------------------------------------------------------------------
Total Variable Annuity Account G $23,857,115 $31,258,168 $60,094,696 $ 28,836,528 $59,440,715
=========================================================================================================================
</TABLE>
(1) - Effective May 1, 1999, Aggressive Growth Fund/OVAF's name changed to
Aggressive Growth Fund/VA.
(2) - Effective May 1, 1999, Bond Fund/OVAF's name changed to Bond Fund/VA.
(3) - Effective May 1, 1999, Growth Fund/OVAF's name changed to Capital
Appreciation Fund/VA.
(4) - Effective May 1, 1999, Global Securities Fund/OVAF's name changed to
Global Securities Fund/VA.
(5) - Effective May 1, 1999, High Income Fund/OVAF's name changed to High
Income Fund/VA.
(6) - Effective May 1, 1999, Money Fund/OVAF's name changed to Money Fund/VA.
(7) - Effective May 1, 1999, Multiple Strategies Fund/OVAF's name changed to
Multiple Strategies Fund/VA.
(8) - Effective May 1, 1999, Strategic Bond Fund/OVAF's name changed to
Strategic Bond Fund/VA.
<PAGE>
Variable Annuity Account G
Notes to Financial Statements - December 31, 1999 (continued):
6. Supplemental Information to Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA: (1)
Annuity contracts in accumulation ($ 578,402) $ 6,682,300 $ 20,178,109
- -------------------------------------------------------------------------------------
Bond Fund/VA: (2)
Annuity contracts in accumulation 386,704 161,022 (813,777)
- -------------------------------------------------------------------------------------
Capital Appreciation Fund/VA: (3)
Annuity contracts in accumulation 1,335,138 9,607,330 4,144,920
- -------------------------------------------------------------------------------------
Global Securities Fund/VA: (4)
Annuity contracts in accumulation 1,124,362 5,696,033 7,476,467
- -------------------------------------------------------------------------------------
High Income Fund/VA: (5)
Annuity contracts in accumulation 1,061,643 (640,289) 163,764
- -------------------------------------------------------------------------------------
Money Fund/VA: (6)
Annuity contracts in accumulation 300,592 10,633 (6,061)
- -------------------------------------------------------------------------------------
Multiple Strategies Fund/VA: (7)
Annuity contracts in accumulation 2,614,578 2,567,541 (2,141,091)
- -------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (8)
Annuity contracts in accumulation 502,457 (227,455) (165,803)
- -------------------------------------------------------------------------------------
Total Variable Annuity Account G $6,747,072 $23,857,115 $ 28,836,528
=====================================================================================
<CAPTION>
- ----------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Increase (Decrease) Net Assets
in Net Assets ------------------------------
from Unit Beginning End
Transactions of Year of Year
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund/VA: (1)
Annuity contracts in accumulation ($ 20,549,878) $ 46,748,625 $ 52,480,754
- ----------------------------------------------------------------------------------------
Bond Fund/VA: (2)
Annuity contracts in accumulation (4,320,633) 11,986,988 7,400,304
- ----------------------------------------------------------------------------------------
Capital Appreciation Fund/VA: (3)
Annuity contracts in accumulation (20,856,804) 52,649,944 46,880,528
- ----------------------------------------------------------------------------------------
Global Securities Fund/VA: (4)
Annuity contracts in accumulation (16,369,756) 38,177,558 36,104,664
- ----------------------------------------------------------------------------------------
High Income Fund/VA: (5)
Annuity contracts in accumulation (9,972,721) 21,121,399 11,733,796
- ----------------------------------------------------------------------------------------
Money Fund/VA: (6)
Annuity contracts in accumulation (4,159,413) 11,115,639 7,261,390
- ----------------------------------------------------------------------------------------
Multiple Strategies Fund/VA: (7)
Annuity contracts in accumulation (17,549,035) 39,986,876 25,478,869
- ----------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (8)
Annuity contracts in accumulation (4,470,081) 12,346,318 7,985,436
- ----------------------------------------------------------------------------------------
Total Variable Annuity Account G ($ 98,248,321) $234,133,347 $195,325,741
========================================================================================
</TABLE>
(1) - Effective May 1, 1999, Aggressive Growth Fund/OVAF's name changed to
Aggressive Growth Fund/VA.
(2) - Effective May 1, 1999, Bond Fund/OVAF's name changed to Bond Fund/VA.
(3) - Effective May 1, 1999, Growth Fund/OVAF's name changed to Capital
Appreciation Fund/VA.
(4) - Effective May 1, 1999, Global Securities Fund/OVAF's name changed to
Global Securities Fund/VA.
(5) - Effective May 1, 1999, High Income Fund/OVAF's name changed to High
Income Fund/VA.
(6) - Effective May 1, 1999, Money Fund/OVAF's name changed to Money Fund/VA.
(7) - Effective May 1, 1999, Multiple Strategies Fund/OVAF's name changed to
Multiple Strategies Fund/VA.
(8) - Effective May 1, 1999, Strategic Bond Fund/OVAF's name changed to
Strategic Bond Fund/VA.
<PAGE>
Variable Annuity Account G
Notes to Financial Statements - December 31, 1998 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund: (1)
Annuity contracts in accumulation $ 830,331 $ 2,804,174 $ 1,143,572
- -------------------------------------------------------------------------------------
Bond Fund:
Annuity contracts in accumulation 280,007 270,598 158,147
- -------------------------------------------------------------------------------------
Global Securities Fund:
Annuity contracts in accumulation 4,113,604 4,693,419 (3,820,014)
- -------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation 4,521,982 6,785,886 (685,096)
- -------------------------------------------------------------------------------------
High Income Fund:
Annuity contracts in accumulation 1,191,288 835,183 (2,048,286)
- -------------------------------------------------------------------------------------
Money Fund:
Annuity contracts in accumulation 499,323 (4,683) 7,780
- -------------------------------------------------------------------------------------
Multiple Strategies Fund:
Annuity contracts in accumulation 2,721,569 2,646,385 (3,014,019)
- -------------------------------------------------------------------------------------
Strategic Bond Fund:
Annuity contracts in accumulation 283,027 298,898 (345,973)
- -------------------------------------------------------------------------------------
Total Variable Annuity Account G $14,441,131 $18,329,860 ($ 8,603,889)
=====================================================================================
<CAPTION>
- ----------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Increase (Decrease) Net Assets
in Net Assets ------------------------------
from Unit Beginning End
Transactions of Year of Year
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Aggressive Growth Fund: (1)
Annuity contracts in accumulation ($ 16,005,524) $ 57,976,072 $ 46,748,625
- ----------------------------------------------------------------------------------------
Bond Fund:
Annuity contracts in accumulation (4,321,837) 15,600,073 11,986,988
- ----------------------------------------------------------------------------------------
Global Securities Fund:
Annuity contracts in accumulation (15,487,479) 48,678,028 38,177,558
- ----------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation (14,806,302) 56,833,474 52,649,944
- ----------------------------------------------------------------------------------------
High Income Fund:
Annuity contracts in accumulation (13,304,629) 34,447,843 21,121,399
- ----------------------------------------------------------------------------------------
Money Fund:
Annuity contracts in accumulation (1,483,645) 12,096,864 11,115,639
- ----------------------------------------------------------------------------------------
Multiple Strategies Fund:
Annuity contracts in accumulation (17,904,867) 55,537,808 39,986,876
- ----------------------------------------------------------------------------------------
Strategic Bond Fund:
Annuity contracts in accumulation (4,475,556) 16,585,922 12,346,318
- ----------------------------------------------------------------------------------------
Total Variable Annuity Account G ($ 87,789,839) $297,756,084 $234,133,347
========================================================================================
</TABLE>
(1) - Effective May 1, 1998, Capital Appreciation Fund's name changed to
Aggressive Growth Fund.
<PAGE>
Independent Auditors' Report
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contract Owners of Variable Annuity Account G:
We have audited the accompanying statement of assets and liabilities of Aetna
Life Insurance and Annuity Company Variable Annuity Account G (the "Account")
as of December 31, 1999, and the related statement of operations for the year
then ended, statements of changes in net assets for each of the years in the
two-year period then ended and condensed financial information for the year
ended December 31, 1999. These financial statements and condensed financial
information are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements and
condensed financial information 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 and condensed
financial information 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, 1999, 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 and condensed financial information
referred to above present fairly, in all material respects, the financial
position of Aetna Life Insurance and Annuity Company Variable Annuity Account G
as of December 31, 1999, the results of its operations for the year then ended,
changes in its net assets for each of the years in the two-year period then
ended and condensed financial information for the year ended December 31, 1999,
in conformity with generally accepted accounting principles.
/s/ KPMG LLP
Hartford, Connecticut
February 11, 2000
