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Previous: CENTRAL EQUITY TRUST UTILITY SERIES 11, 485BPOS, 1997-04-24 |
Next: CENTRAL EQUITY TRUST UTILITY SERIES 12, 485BPOS, 1997-04-24 |
(2_FIDELITY_LOGOS)EMPIRE FIDELITY INVESTMENTS
VARIABLE ANNUITY ACCOUNT A
ANNUAL REPORT
DECEMBER 31, 1996
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE
COMPANY VARIABLE ANNUITY OWNERS. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS. NEITHER EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE
COMPANY NOR FIDELITY BROKERAGE SERVICES, INC. IS A BANK, AND NEITHER THE
ANNUITY NOR MUTUAL FUND SHARES ARE BACKED OR GUARANTEED BY ANY BANK OR
INSURED BY THE FDIC.
STATEMENT OF ASSETS AND LIABILITIES
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C>
ASSETS DECEMBER 31, 1996
Investments at Current Market Value:
Variable Insurance Products Fund (VIP)
Money Market Portfolio - 48,675,092 shares (cost $48,675,092) $ 48,675,092
High Income Portfolio - 1,673,528 shares (cost $19,657,604) 20,952,574
Equity-Income Portfolio - 7,203,986 shares (cost $119,283,610) 151,499,819
Growth Portfolio - 2,856,346 shares (cost $74,838,138) 88,946,602
Overseas Portfolio - 1,309,265 shares (cost $21,866,193) 24,666,557
Variable Insurance Products Fund II (VIP II)
Investment Grade Bond Portfolio - 567,868 shares (cost $6,863,356) 6,950,703
Asset Manager Portfolio - 4,882,698 shares (cost $71,794,963) 82,664,084
Index 500 Portfolio - 413,235 shares (cost $31,573,421) 36,831,595
Asset Manager: Growth Portfolio - 1,312,416 shares (cost $16,229,806) 17,192,654
Contrafund Portfolio - 6,035,248 shares (cost $80,549,919) 99,943,702
Total Assets $ 578,323,382
LIABILITIES
Total Liabilities 0
NET ASSETS
Variable Annuity Contracts $ 566,276,569
Annuity Reserves 11,796,668
Retained in Variable Account by Empire Fidelity Investments Life Insurance Company 250,145
Total Net Assets $ 578,323,382
</TABLE>
STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
For the years ended December 31, 1996 and 1995
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - VIP -
MONEY MARKET HIGH INCOME
12/31/96 12/31/95 12/31/96 12/31/95
INCOME:
Dividends $ 1,786,77 $ 1,580,34 $ 1,344,29 $ 573,316
0 0 3
EXPENSES:
Mortality, expense risk
and administrative
charges 369,246 276,570 173,493 108,556
Net investment
income (loss) 1,417,524 1,303,770 1,170,800 464,760
Realized gain 0 0 234,379 311,021
Unrealized appreciation
(depreciation) during
the year 0 0 650,495 1,066,452
Net increase in net
assets 1,417,524 1,303,770 2,055,674 1,842,233
from operations
Payments received
from contract owners 27,250,68 20,298,08 4,106,021 3,421,140
1 8
Transfers between
subaccounts and the (9,795,25 (15,358,1 1,458,992 881,407
fixed account, net 3) 81)
Transfers for contract
benefits and
terminations (1,159,04 (980,351) (381,564) (145,903)
7)
Other transfers (to) from
Empire Fidelity
Investments Life
Insurance Co., net 6,590 (277,715) (4,989) 27,410
Net increase (decrease)
in net assets from
contract transactions 16,302,97 3,681,841 5,178,460 4,184,054
1
Retained in (returned
from) Variable Annuity
Account A, net (6,995) 793 (6,253) 4,568
Total increase 17,713,50 4,986,404 7,227,881 6,030,855
(decrease) 0
in net assets
Net assets at beginning
of period 30,961,59 25,975,18 13,724,69 7,693,838
2 8 3
Net assets at end
of period $48,675,0 $ 30,961,5 $ 20,952,5 $ 13,724,6
92 92 74 93
SUBACCOUNTS INVESTING IN:
VIP -
EQUITY-INCOME VIP - GROWTH
12/31/96 12/31/95 12/31/96 12/31/95
INCOME:
Dividends $ 5,937,08 $ 5,704,765 $ 4,634,81 $ 181,456
3 9
EXPENSES:
Mortality, expense risk
and administrative
charges 1,445,756 935,882 811,476 476,876
Net investment
income (loss) 4,491,327 4,768,883 3,823,343 (295,420)
Realized gain 4,329,089 980,837 3,059,832 1,347,836
Unrealized appreciation
(depreciation) during
the year 8,576,967 21,037,305 2,520,593 10,737,43
0
Net increase in net
assets 17,397,38 26,787,025 9,403,768 11,789,84
from operations 3 6
Payments received
from contract owners 21,584,75 18,539,810 16,074,27 11,525,14
9 9 4
Transfers between
subaccounts and the (9,221,15 15,778,134 2,515,925 6,180,796
fixed account, net 7)
Transfers for contract
benefits and
terminations (3,177,33 (1,432,870 (1,354,75 (701,855)
3) ) 0)
Other transfers (to) from
Empire Fidelity
Investments Life
Insurance Co., net (35,670) 75,515 (30,252) (23,291)
Net increase (decrease)
in net assets from
contract transactions 9,150,599 32,960,589 17,205,20 16,980,79
2 4
Retained in (returned
from) Variable Annuity
Account A, net (78,836) 45,421 (40,650) 24,882
Total increase 26,469,14 59,793,035 26,568,32 28,795,52
(decrease) 6 0 2
in net assets
Net assets at beginning
of period 125,030,6 65,237,638 62,378,28 33,582,76
73 2 0
Net assets at end
of period $ 151,499, $ 125,030,6 $ 88,946,6 $62,378,2
819 73 02 82
SUBACCOUNTS INVESTING IN:
VIP - OVERSEAS
12/31/96 12/31/95
INCOME:
Dividends $ 525,818 $ 186,371
EXPENSES:
Mortality, expense risk
and administrative
charges 231,350 199,920
Net investment
income (loss) 294,468 (13,549)
Realized gain 484,088 948,661
Unrealized appreciation
(depreciation) during
the year 1,781,995 483,715
Net increase in net
assets 2,560,551 1,418,827
from operations
Payments received
from contract owners 3,046,601 1,796,064
Transfers between
subaccounts and the 1,632,798 (10,927,72
fixed account, net 3)
Transfers for contract
benefits and
terminations (312,776) (412,022)
Other transfers (to) from
Empire Fidelity
Investments Life
Insurance Co., net (20,485) 5,414
Net increase (decrease)
in net assets from
contract transactions 4,346,138 (9,538,267
)
Retained in (returned
from) Variable Annuity
Account A, net (7,308) (10,255)
Total increase 6,899,381 (8,129,695
(decrease) )
in net assets
Net assets at beginning
of period 17,767,17 25,896,871
6
Net assets at end
of period $ 24,666,5 $ 17,767,17
57 6
VIP II - VIP II -
INVESTMENT ASSET MANAGER
GRADE BOND
12/31/96 12/31/95 12/31/96 12/31/95
INCOME:
Dividends $ 337,043 $ 143,740 $ 5,293,83 $ 2,010,35
5 7
EXPENSES
:
Mortality,
expense
risk and 68,068 48,624 815,364 875,116
administrat
ive
charges
Net
investment 268,975 95,116 4,478,471 1,135,241
income
(loss)
Realized 75,367 57,874 1,663,095 2,777,299
gain
Unrealized
appreciatio
n (227,009) 563,142 4,022,895 8,678,445
(depreciati
on) during
the year
Net
increase in 117,333 716,132 10,164,46 12,590,98
net assets 1 5
from
operations
Payments
received 1,204,243 663,948 3,467,114 2,478,825
from
contract
owners
Transfers
between 976,244 (11,063,5 (30,622,5
subaccoun (177,798) 77) 61)
ts and the
fixed
account,
net
Transfers
for
contract (443,215) (148,176) (2,267,35 (2,796,51
benefits 7) 9)
and
termination
s
Other
transfers
(to) from
Empire 1,167 (1,477) (18,904) 75,768
Fidelity
Investment
s Life
Insurance
Co., net
Net
increase
(decrease) 584,397 1,490,539 (9,882,72 (30,864,4
in net 4) 87)
assets
from
contract
transaction
s
Retained
in
(returned (4,101) (4,949) (59,436) (21,367)
from)
Variable
Annuity
Account A,
net
Total 2,201,722 222,301 (18,294,8
increase 697,629 69)
(decrease)
in net
assets
Net assets
at 6,253,074 4,051,352 82,441,78 100,736,6
beginning 3 52
of period
Net assets
at end of $ 6,950,70 $ 6,253,07 $82,664,0 $ 82,441,7
period 3 4 84 83
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
VIP II - VIP II -
INDEX 500 ASSET MANAGER:
GROWTH
12/31/96 12/31/95 12/31/96 12/31/95*
INCOME:
Dividends $ 620,782 $ 48,377 $ 862,945 $ 209,986
EXPENSES
:
Mortality,
expense
risk and 242,314 65,235 98,994 29,423
administrat
ive
charges
Net
investment 378,468 (16,858) 763,951 180,563
income
(loss)
Realized 702,643 399,595 239,532 178,391
gain
Unrealized
appreciatio
n 3,762,268 1,451,439 801,887 160,962
(depreciati
on) during
the year
Net
increase in 4,843,379 1,834,176 1,805,370 519,916
net assets
from
operations
Payments
received 9,153,239 3,472,817 5,577,602 2,910,699
from
contract
owners
Transfers
between 10,692,00 6,054,548 5,074,653 1,484,390
subaccoun 5
ts and the
fixed
account,
net
Transfers
for
contract (760,330) (919,227) (154,535) (9,486)
benefits
and
termination
s
Other
transfers
(to) from
Empire (4,432) (3,338) (3,396) (694)
Fidelity
Investment
s Life
Insurance
Co., net
Net
increase
(decrease) 19,080,48 8,604,800 10,494,32 4,384,909
in net 2 4
assets
from
contract
transaction
s
Retained
in
(returned (8,563) 5,281 (16,199) 4,334
from)
Variable
Annuity
Account A,
net
Total 23,915,29 10,444,25 12,283,49 4,909,159
increase 8 7 5
(decrease)
in net
assets
Net assets
at 12,916,29 2,472,040 4,909,159 0
beginning 7
of period
Net assets
at end of $ 36,831,5 $ 12,916,2 $ 17,192,6 $ 4,909,15
period 95 97 54 9
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
VIP II - TOTAL
CONTRAFUND
12/31/96 12/31/95* 12/31/96 12/31/95
INCOME:
Dividends $ 526,257 $ 666,687 $ 21,869,6 $ 11,305,39
45 5
EXPENSES
:
Mortality,
expense
risk and 786,431 277,494 5,042,492 3,293,696
administrat
ive
charges
Net
investment (260,174) 389,193 16,827,15 8,011,699
income 3
(loss)
Realized 1,823,791 369,981 12,611,81 7,371,495
gain 6
Unrealized
appreciatio
n 13,273,28 6,120,498 35,163,37 50,299,388
(depreciati 6 7
on) during
the year
Net
increase in 14,836,90 6,879,672 64,602,34 65,682,582
net assets 3 6
from
operations
Payments
received 25,690,73 20,852,56 117,155,2 85,959,095
from 5 0 74
contract
owners
Transfers
between 9,364,673 24,300,25 481,261 (1,252,696
subaccoun 0 )
ts and the
fixed
account,
net
Transfers
for
contract (1,779,16 (150,792) (11,790,0 (7,697,201
benefits 1) 68) )
and
termination
s
Other
transfers
(to) from
Empire (71,396) (2,577) (181,767) (124,985)
Fidelity
Investment
s Life
Insurance
Co., net
Net
increase
(decrease) 33,204,85 44,999,44 105,664,7 76,884,213
in net 1 1 00
assets
from
contract
transaction
s
Retained
in
(returned (24,192) 47,027 (252,533) 95,735
from)
Variable
Annuity
Account A,
net
Total 48,017,56 51,926,14 170,014,5 142,662,53
increase 2 0 13 0
(decrease)
in net
assets
Net assets
at 51,926,14 0 408,308,8 265,646,33
beginning 0 69 9
of period
Net assets
at end of $ 99,943,7 $ 51,926,1 $ 578,323, $ 408,308,8
period 02 40 382 69
</TABLE>
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1996 and 1995
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
1. ORGANIZATION.
Empire Fidelity Investments Variable Annuity Account A (the Account), a
unit investment trust registered under the Investment Company Act of 1940
as amended, was established by Empire Fidelity Investments Life Insurance
Company (EFILI) on July 15, 1991 and exists in accordance with the
regulations of the New York Insurance Department. The Account is a funding
vehicle for individual Retirement Reserves and Income Advantage variable
annuity contracts. EFILI is a wholly-owned subsidiary of Fidelity
Investments Life Insurance Company which is a wholly-owned subsidiary of
FMR Corp.
Beginning in 1995, EFILI added two new subaccounts to the Account; Asset
Manager: Growth and Contrafund.
2. SIGNIFICANT ACCOUNTING POLICIES.
Investments are made in the portfolios of the Variable Insurance Products
Fund and the Variable Insurance Products Fund II and are valued at the
reported net asset values of such portfolios. Transactions are recorded on
the trade date. Income from dividends is recorded on the ex-dividend date.
Realized gains and losses on the sales of investments are computed on the
basis of the identified cost of the investment sold.
In addition to the Account, a contractholder may also allocate funds to the
Fixed Account, which is part of EFILI's general account. Because of
exemptive and exclusionary provisions, interests in the Fixed Account have
not been registered under the Securities Act of 1933 and EFILI's general
account has not been registered as an investment company under the
Investment Company Act of 1940.
Annuity reserves are computed for contracts in the income stage according
to the 1983 Individual Annuitant Mortality Table. The assumed investment
return is 3.5% unless the annuitant elects otherwise, in which case the
rate may vary from 3.5% to 7%, as regulated by the laws of New York. The
mortality risk is fully borne by EFILI and may result in additional amounts
being transferred into the Account by EFILI.
The operations of the Account are included in the federal income tax return
of EFILI, which is taxed as a Life Insurance Company under the provisions
of the Internal Revenue Code (the Code).
The preparation of the statement of assets and liabilities and the
statements of operations and changes in net assets in accordance with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of liabilities
at the date of the financial statements and the reported amounts of income
and expense during the reporting period. Actual results could differ from
those estimates.
Certain amounts in the financial statements for 1995 have been reclassified
to correspond to the 1996 presentation.
3. EXPENSES.
EFILI deducts a daily charge from the net assets of the Account (equivalent
to an effective annual rate of 1% of net assets) for administrative
expenses and for the assumption of mortality and expense risks. EFILI also
deducts an annual maintenance charge of $30 from the Fidelity Retirement
Reserves contract value. The maintenance charge is waived on certain
contracts.
Under the current provisions of the Code, EFILI does not expect to incur
federal income taxes on the earnings of the Account to the extent the
earnings are credited under the contracts. EFILI incurs federal income
taxes on the difference between the financial statement carrying value of
reserves for contracts in the income stage and those reserves held for
federal income tax purposes. The tax effect of this temporary difference is
expected to be recovered by EFILI. As such, no charge is being made
currently to the Account for federal income taxes. EFILI will review
periodically the status of such decision based on changes in the tax law.
Such a charge may be made in future years for any federal income taxes that
would be attributable to the contracts.
4. AFFILIATED COMPANY TRANSACTIONS.
The contracts are distributed through Fidelity Brokerage Services, Inc.
(FBSI) and Fidelity Insurance Agency, Inc. (FIA), both of which are
affiliated with FMR Corp. FBSI and FIA are the distributors and FBSI is the
principal underwriter of the contracts. Fidelity Management & Research
Company, an affiliate of FMR Corp., acts as investment advisor to each
portfolio. Fidelity Investments Institutional Operations Co., an affiliate
of FMR Corp., is the transfer and shareholder servicing agent for the
portfolios.
5. PURCHASES AND SALES OF INVESTMENTS.
The following table shows aggregate cost of shares purchased and proceeds
from sales of each subaccount for the year ended December 31, 1996:
PURCHASES SALES
Money Market $ $
46,259,773 28,546,273
High Income 10,434,586 4,091,580
Equity-Income 28,080,139 14,517,049
Growth 30,543,657 9,555,762
Overseas 8,676,063 4,042,764
Investment Grade 4,085,263 3,235,991
Asset Manager 7,199,467 12,663,155
Index 500 21,687,531 2,237,145
Asset Manager: Growth 12,668,815 1,426,740
Contrafund 38,392,223 5,471,738
6. UNIT VALUES.
A summary of changes in accumulation units and accumulation units
outstanding for variable annuity contracts at December 31, 1996 and 1995
are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PAYMENTS
BEGINNING RECEIVED TRANSFERS
BALANCE FROM CONTRACT BETWEEN
OWNERS SUBACCOUNTS,
NET
UNITS
JANUARY 1, 1996 TO DECEMBER 31, 1996
Money Market Subaccount 2,086,339 1,396,811 (671,222)
High Income Subaccount 605,822 175,020 61,177
Equity-Income Subaccount 4,481,146 751,876 (315,456)
Growth Subaccount 2,004,576 487,213 73,706
Overseas Subaccount 930,291 154,412 85,133
Investment Grade Subaccount 358,773 71,690 (12,681)
Asset Manager Subaccount 4,435,615 181,581 (584,908)
Index 500 Subaccount 802,405 537,084 624,968
Asset Manager: Growth 396,158 419,484 378,254
Subaccount*
Contrafund Subaccount* 3,685,097 1,742,216 631,751
JANUARY 1, 1995 TO DECEMBER 31, 1995
Money Market Subaccount 1,840,618 1,212,366 (887,953)
High Income Subaccount 413,916 164,126 48,831
Equity-Income Subaccount 3,148,692 755,226 681,199
Growth Subaccount 1,448,467 395,023 194,334
Overseas Subaccount 1,472,775 100,194 (621,187)
Investment Grade Subaccount 270,642 41,606 58,920
Asset Manager Subaccount 6,284,783 146,335 (1,848,581)
Index 500 Subaccount 210,179 240,442 433,808
Asset Manager: Growth 0 264,392 138,263
Subaccount*
Contrafund Subaccount* 0 1,655,600 2,096,508
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONTRACT
TERMINATION ENDING BALANCE
S
UNITS UNIT VALUE DOLLARS
JANUARY 1, 1996 TO DECEMBER 31, 1996
Money Market Subaccount 332,385 3,144,313 $15.30 $ 48,101,350
High Income Subaccount (22,006) 820,013 $24.89 20,409,560
Equity-Income Subaccount (162,354) 4,755,212 $31.05 147,641,357
Growth Subaccount (62,104) 2,503,391 $34.97 87,540,085
Overseas Subaccount (18,195) 1,151,640 $21.29 24,519,804
Investment Grade Subaccount (34,981) 382,801 $17.36 6,644,585
Asset Manager Subaccount (131,774) 3,900,514 $20.75 80,953,438
Index 500 Subaccount (77,086) 1,887,371 $18.89 35,655,373
Asset Manager: Growth (30,890) 1,163,007 $14.49 16,853,490
Subaccount*
Contrafund Subaccount* (177,041) 5,882,023 $16.65 97,957,527
$ 566,276,569
JANUARY 1, 1995 TO DECEMBER 31, 1995
Money Market Subaccount (78,693) 2,086,339 $14.66 $ 30,587,979
High Income Subaccount (21,052) 605,822 $22.05 13,357,546
Equity-Income Subaccount (103,971) 4,481,146 $27.44 122,982,339
Growth Subaccount (33,248) 2,004,576 $30.80 61,732,843
Overseas Subaccount (21,490) 930,291 $19.00 17,672,782
Investment Grade Subaccount (12,394) 358,773 $16.99 6,096,643
Asset Manager Subaccount (146,921) 4,435,615 $18.29 81,145,514
Index 500 Subaccount (82,024) 802,405 $15.54 12,467,512
Asset Manager: Growth (6,497) 396,158 $12.21 4,835,356
Subaccount*
Contrafund Subaccount* (67,011) 3,685,097 $13.87 51,105,632
$ 401,984,146
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of Empire Fidelity Investments
Variable Annuity Account A:
We have audited the accompanying statement of assets and liabilities of
Empire Fidelity Investments Variable Annuity Account A (comprised of Money
Market Subaccount, High Income Subaccount, Equity-Income Subaccount, Growth
Subaccount, Overseas Subaccount, Investment Grade Bond Subaccount, Asset
Manager Subaccount, Index 500 Subaccount, Asset Manager: Growth Subaccount
and Contrafund Subaccount) of Empire Fidelity Investments Life Insurance
Company as of December 31, 1996, and the related statements of operations
and changes in net assets for each of the periods indicated therein. These
financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. 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 the aforementioned
subaccounts comprising Empire Fidelity Investments Variable Annuity Account
A of Empire Fidelity Investments Life Insurance Company as of December 31,
1996, and the results of their operations and the changes in their net
assets for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
January 29, 1997
(registered trademark)
America's largest privately-held investment management organization.
Retirement Reserves and Income Advantage are issued by Empire Fidelity
Investments Life Insurance Company. N.Y., N.Y.
Fidelity Brokerage Services, Inc., member NYSE, SIPC, and Fidelity
Insurance Agency, Inc. are the distributors.
82 Devonshire Street, Boston, MA 02109
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