(2_FIDELITY_LOGOS)(registered trademark)
EMPIRE FIDELITY(REGISTERED TRADEMARK) INVESTMENTS
VARIABLE ANNUITY ACCOUNT A
ANNUAL REPORT
DECEMBER 31, 1999
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 ANNUITIES 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
ASSETS DECEMBER 31, 1999
Investments at current market
value:
Variable Insurance Products
Fund (VIP)
Money Market Portfolio - $ 73,675,888
73,675,888 shares (cost
$73,675,888)
High Income Portfolio - 21,011,435
1,857,775 shares (cost
$23,135,717)
Equity-Income Portfolio - 150,855,334
5,867,574 shares (cost
$120,343,187)
Growth Portfolio - 214,015,765
3,896,154 shares (cost
$141,276,984)
Overseas Portfolio - 35,103,688
1,279,289 shares (cost
$24,960,242)
Variable Insurance Products
Fund II (VIP II)
Investment Grade Bond 18,180,446
Portfolio - 1,495,102 shares
(cost $18,987,875)
Asset Manager Portfolio - 96,167,149
5,150,892 shares (cost
$81,423,921)
Index 500 Portfolio - 133,604,577
798,068 shares (cost
$95,383,210)
Asset Manager: Growth 34,851,182
Portfolio - 1,896,147 shares
(cost $28,952,843)
Contrafund Portfolio - 207,986,592
7,135,046 shares (cost
$127,154,236)
Variable Insurance Products
Fund III (VIP III)
Balanced Portfolio - 10,732,414
670,776 shares (cost
$10,420,411)
Growth & Income Portfolio - 66,659,614
3,853,157 shares (cost
$56,415,076)
Growth Opportunities 34,516,975
Portfolio - 1,491,014 shares
(cost $29,660,954)
Morgan Stanley Dean Witter
Universal Funds (MSDWUF)
Emerging Markets Equity 5,621,270
Portfolio - 404,117 shares
(cost $4,392,090)
Emerging Markets Debt 294,588
Portfolio - 42,632 shares
(cost $373,882)
Global Equity Portfolio - 1,719,496
133,501 shares (cost
$1,775,999)
International Magnum 1,140,269
Portfolio - 82,093 shares
(cost $1,025,884)
PBHG Insurance Series Funds
(PBHG)
Growth II Portfolio - 12,550,555
544,493 shares (cost
$9,705,856)
Small Cap Value Portfolio - 2,083,706
154,807 shares (cost
$1,872,958)
Large Cap Value Portfolio - 3,627,059
238,779 shares (cost
$3,557,541)
Technology & Communications 155,805,105
Portfolio - 3,386,331 shares
(cost $84,660,190)
Select 20 Portfolio - 71,540,974
2,187,797 shares (cost
$37,494,622)
Strong Variable Insurance
Funds (SVIF)
Discovery Fund II Portfolio 283,975
- - 24,954 shares (cost
$304,153)
Mid Cap Growth Fund II 22,331,219
Portfolio - 735,305 shares
(cost $16,850,066)
Opportunity Fund II 5,527,257
Portfolio - 212,669 shares
(cost $4,824,528)
Warburg Pincus Trust (WPT)
Small Company Growth 4,294,261
Portfolio - 163,903 shares
(cost $3,578,144)
International Equity 1,957,653
Portfolio - 117,225 shares
(cost $1,727,785)
Post-Venture Capital 899,556
Portfolio - 46,706 shares
(cost $663,121)
Total Assets $ 1,387,038,002
NET ASSETS COMPRISED OF:
Variable Annuity Contracts $ 1,323,139,333
Annuity Reserves 63,898,151
Retained in Variable Account 518
by Empire Fidelity
Investments Life Insurance
Company
NET ASSETS $ 1,387,038,002
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - MONEY MARKET VIP - HIGH INCOME
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 3,357,223 $ 2,645,742 $ 2,099,050 $ 1,889,480
EXPENSES:
Mortality risk, expense risk 539,298 403,367 184,513 217,487
and administrative charges
Net investment income (loss) 2,817,925 2,242,375 1,914,537 1,671,993
Realized gain (loss) on sale 0 0 25,945 357,137
of fund shares
Realized gain distributions 0 0 78,469 1,200,608
Unrealized appreciation 0 0 (358,076) (4,611,108)
(depreciation)
Net increase (decrease) in $ 2,817,925 $ 2,242,375 $ 1,660,875 $ (1,381,370)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
VIP - EQUITY-INCOME VIP - GROWTH VIP - OVERSEAS
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99
INCOME:
Dividends $ 2,502,500 $ 2,627,503 $ 247,409 $ 474,706 $ 374,181
EXPENSES:
Mortality risk, expense
risk 1,370,374 1,545,117 1,380,231 866,799 208,952
and administrative charges
Net investment income
(loss) 1,132,126 1,082,386 (1,132,822) (392,093) 165,229
Realized gain (loss) on
sale 18,298,450 13,591,971 8,907,460 5,631,524 1,095,549
of fund shares
Realized gain
distributions 5,531,843 9,350,819 15,555,825 12,417,303 603,518
Unrealized appreciation (16,419,983) (6,201,694) 31,480,768 17,537,413 7,830,754
(depreciation)
Net increase (decrease) in $ 8,542,436 $ 17,823,482 $ 54,811,231 $ 35,194,147 $ 9,695,050
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
12/31/98
INCOME:
Dividends $ 474,801
EXPENSES:
Mortality risk, expense risk 215,683
and administrative charges
Net investment income (loss) 259,118
Realized gain (loss) on sale 1,010,697
of fund shares
Realized gain distributions 1,399,412
Unrealized appreciation (181,229)
(depreciation)
Net increase (decrease) in $ 2,487,998
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INVESTMENT GRADE VIP II - ASSET MANAGER
BOND
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 912,986 $ 486,031 $ 3,153,859 $ 2,869,728
EXPENSES:
Mortality risk, expense risk 168,113 113,320 772,222 757,524
and administrative charges
Net investment income (loss) 744,873 372,711 2,381,637 2,112,204
Realized gain (loss) on sale (66,066) 246,114 2,706,295 2,157,446
of fund shares
Realized gain distributions 286,426 57,665 3,994,889 8,609,183
Unrealized appreciation (1,395,292) 349,622 63,475 (655,336)
(depreciation)
Net increase (decrease) in $ (430,059) $ 1,026,112 $ 9,146,296 $ 12,223,497
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INDEX 500 VIP II - ASSET MANAGER:
GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 1,093,942 $ 1,020,047 $ 786,181 $ 655,208
EXPENSES:
Mortality risk, expense risk 1,010,291 797,686 273,874 263,271
and administrative charges
Net investment income (loss) 83,651 222,361 512,307 391,937
Realized gain (loss) on sale 9,310,383 10,983,929 2,178,418 2,050,502
of fund shares
Realized gain distributions 742,318 2,362,610 1,303,909 3,064,065
Unrealized appreciation 12,109,896 9,112,387 515,712 (667,729)
(depreciation)
Net increase (decrease) in $ 22,246,248 $ 22,681,287 $ 4,510,346 $ 4,838,775
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
VIP II - CONTRAFUND
12/31/99 12/31/98
INCOME:
Dividends $ 840,467 $ 921,708
EXPENSES:
Mortality risk, expense risk 1,544,696 1,187,967
and administrative charges
Net investment income (loss) (704,229) (266,259)
Realized gain (loss) on sale 12,991,790 7,420,537
of fund shares
Realized gain distributions 6,163,422 6,781,142
Unrealized appreciation 21,310,986 23,314,910
(depreciation)
Net increase (decrease) in $ 39,761,969 $ 37,250,330
net assets from operations
</TABLE>
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP III - BALANCED VIP III - GROWTH &
INCOME
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 203,035 $ 118,737 $ 439,671 $ 0
EXPENSES:
Mortality risk, expense risk 87,047 53,635 609,954 378,860
and administrative charges
Net investment income (loss) 115,988 65,102 (170,283) (378,860)
Realized gain (loss) on 426,821 450,249 8,090,973 1,665,467
sale of fund shares
Realized gain distributions 235,959 181,404 879,341 176,254
Unrealized appreciation (430,871) 373,537 (3,185,603) 10,346,320
(depreciation)
Net increase (decrease) in $ 347,897 $ 1,070,292 $ 5,614,428 $ 11,809,181
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP III - GROWTH MSDWUF - EMERGING
OPPORTUNITIES MARKETS EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 439,197 $ 380,494 $ 1,184 $ 2,945
EXPENSES:
Mortality risk, expense risk 338,457 318,261 21,750 2,837
and administrative charges
Net investment income (loss) 100,740 62,233 (20,566) 108
Realized gain (loss) on 4,726,198 1,816,418 298,832 8,643
sale of fund shares
Realized gain distributions 821,107 1,322,669 0 0
Unrealized appreciation (4,333,559) 4,981,718 1,328,959 (98,190)
(depreciation)
Net increase (decrease) in $ 1,314,486 $ 8,183,038 $ 1,607,225 $ (89,439)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MSDWUF - EMERGING
MARKETS DEBT
12/31/99 12/31/98
INCOME:
Dividends $ 37,429 $ 28,061
EXPENSES:
Mortality risk, expense risk 2,247 1,787
and administrative charges
Net investment income (loss) 35,182 26,274
Realized gain (loss) on 1,909 (5,315)
sale of fund shares
Realized gain distributions 0 0
Unrealized appreciation 25,241 (92,451)
(depreciation)
Net increase (decrease) in $ 62,332 $ (71,492)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MSDWUF - GLOBAL MSDWUF -
EQUITY INTERNATIONAL MAGNUM
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 19,414 $ 13,192 $ 7,862 $ 5,184
EXPENSES:
Mortality risk, expense risk 15,017 10,698 6,650 6,541
and administrative charges
Net investment income (loss) 4,397 2,494 1,212 (1,357)
Realized gain (loss) on 45,162 61,905 (18,076) 48,096
sale of fund shares
Realized gain distributions 76,125 12,573 4,075 3,219
Unrealized appreciation (79,017) 25,498 209,399 (89,038)
(depreciation)
Net increase (decrease) in $ 46,667 $ 102,470 $ 196,610 $ (39,080)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PBHG - GROWTH II PBHG - SMALL CAP VALUE
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 0 $ 0 $ 523
EXPENSES:
Mortality risk, expense risk 21,104 1,850 18,810 17,910
and administrative charges
Net investment income (loss) (21,104) (1,850) (18,810) (17,387)
Realized gain (loss) on 508,570 18,137 114,494 100,408
sale of fund shares
Realized gain distributions 0 0 0 3,159
Unrealized appreciation 2,830,966 13,190 181,282 20,879
(depreciation)
Net increase (decrease) in $ 3,318,432 $ 29,477 $ 276,966 $ 107,059
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
PBHG - LARGE CAP VALUE
12/31/99 12/31/98
INCOME:
Dividends $ 116 $ 5,924
EXPENSES:
Mortality risk, expense risk 31,217 7,069
and administrative charges
Net investment income (loss) (31,101) (1,145)
Realized gain (loss) on 393,569 128,101
sale of fund shares
Realized gain distributions 99,112 12,521
Unrealized appreciation (165,273) 232,358
(depreciation)
Net increase (decrease) in $ 296,307 $ 371,835
net assets from operations
</TABLE>
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
PBHG - TECHNOLOGY & PBHG - SELECT 20
COMMUNICATIONS
INCOME:
12/31/99 12/31/98 12/31/99 12/31/98
Dividends $ 0 $ 180 $ 0 $ 280
EXPENSES:
Mortality risk, expense 299,125 9,793 323,793 77,525
risk and adminis- trative
charges
Net investment income (loss) (299,125) (9,613) (323,793) (77,245)
Realized gain (loss) on sale 2,304,654 60,345 4,619,284 837,116
of fund shares
Realized gain distributions 0 0 0 0
Unrealized appreciation 70,720,773 424,975 29,220,248 4,809,171
(depreciation)
Net increase (decrease) in $ 72,726,302 $ 475,707 $ 33,515,739 $ 5,569,042
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SVIF - DISCOVERY FUND II SVIF - MID CAP GROWTH
FUND II
INCOME:
12/31/99 12/31/98 12/31/99 12/31/98
Dividends $ 0 $ 0 $ 0 $ 3
EXPENSES:
Mortality risk, expense 1,954 1,778 49,188 4,437
risk and adminis- trative
charges
Net investment income (loss) (1,954) (1,778) (49,188) (4,434)
Realized gain (loss) on sale 1,681 2,413 523,446 21,237
of fund shares
Realized gain distributions 35,470 3,035 2,833 0
Unrealized appreciation (21,180) 2,341 5,370,251 112,638
(depreciation)
Net increase (decrease) in $ 14,017 $ 6,011 $ 5,847,342 $ 129,441
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SVIF - OPPORTUNITY FUND
II
INCOME:
12/31/99 12/31/98
Dividends $ 0 $ 7,009
EXPENSES:
Mortality risk, expense 34,153 17,954
risk and adminis- trative
charges
Net investment income (loss) (34,153) (10,945)
Realized gain (loss) on sale 130,265 (23,495)
of fund shares
Realized gain distributions 373,791 207,970
Unrealized appreciation 773,031 (72,627)
(depreciation)
Net increase (decrease) in $ 1,242,934 $ 100,903
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - SMALL COMPANY WPT - INTERNATIONAL
GROWTH EQUITY
INCOME: 12/31/99 12/31/98 12/31/99 12/31/98
Dividends $ 0 $ 0 $ 10,903 $ 1,849
EXPENSES:
Mortality risk, expense 10,500 6,748 3,259 2,742
risk and adminis- trative
charges
Net investment income (loss) (10,500) (6,748) 7,644 (893)
Realized gain (loss) on sale 164,299 24,269 25,821 21,892
of fund shares
Realized gain distributions 78,799 0 0 0
Unrealized appreciation 764,971 (56,918) 265,565 (33,271)
(depreciation)
Net increase (decrease) in $ 997,569 $ (39,397) $ 299,030 $ (12,272)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - POST-VENTURE TOTAL
CAPITAL
INCOME: 12/31/99 12/31/98 12/31/99 12/31/98
Dividends $ 0 $ 0 $ 16,526,609 $ 14,629,335
EXPENSES:
Mortality risk, expense 4,567 2,989 9,331,356 7,291,635
risk and adminis- trative
charges
Net investment income (loss) (4,567) (2,989) 7,195,253 7,337,700
Realized gain (loss) on sale 87,468 21,703 77,893,594 48,707,446
of fund shares
Realized gain distributions 0 0 36,867,231 47,165,611
Unrealized appreciation 259,899 (24,571) 158,873,322 58,872,795
(depreciation)
Net increase (decrease) in $ 342,800 $ (5,857) $ 280,829,400 $ 162,083,552
net assets from operations
</TABLE>
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - MONEY MARKET VIP - HIGH INCOME
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 2,817,925 $ 2,242,375 $ 1,914,537 $ 1,671,993
Net realized gain (loss) on 0 0 104,414 1,557,745
investments
Unrealized appreciation 0 0 (358,076) (4,611,108)
(depreciation)
Net increase (decrease) in 2,817,925 2,242,375 1,660,875 (1,381,370)
net assets from operations
Payments received from 37,167,034 24,824,193 1,489,749 3,641,195
contract owners
Transfers between (16,492,270) (2,346,439) (6,617,202) (2,096,518)
sub-accounts and the fixed
account, net
Transfers for contract (10,517,625) (4,418,522) (1,006,484) (945,611)
benefits and terminations
Other transfers (to) from (11,196) (7,606) 2,610 (24,287)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 10,145,943 18,051,626 (6,131,327) 574,779
net assets from contract
transactions
Retained in (returned from) (111,001) 5,829 (4,360) 6
Variable Annuity Account A,
net
Total increase (decrease) in 12,852,867 20,299,830 (4,474,812) (806,585)
net assets
Net assets at beginning of year 60,823,021 40,523,191 25,486,247 26,292,832
Net assets at end of year $ 73,675,888 $ 60,823,021 $ 21,011,435 $ 25,486,247
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
VIP - EQUITY-INCOME VIP - GROWTH VIP - OVERSEAS
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99
Net investment income
(loss) $ 1,132,126 $ 1,082,386 $ (1,132,822) $ (392,093) $ 165,229
Net realized gain (loss)
on 23,830,293 22,942,790 24,463,285 18,048,827 1,699,067
investments
Unrealized appreciation (16,419,983) (6,201,694) 31,480,768 17,537,413 7,830,754
(depreciation)
Net increase (decrease) in 8,542,436 17,823,482 54,811,231 35,194,147 9,695,050
net assets from operations
Payments received from 4,284,765 6,551,149 14,741,790 3,512,294 1,131,618
contract owners
Transfers between (32,793,233) (29,985,166) 21,083,332 (1,463,015) (519,781)
sub-accounts and the fixed
account, net
Transfers for contract (6,589,324) (6,382,415) (8,198,054) (2,742,013) (839,044)
benefits and terminations
Other transfers (to) from 35,179 (5,258) (7,105) (48,790) (616)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (35,062,613) (29,821,690) 27,619,963 (741,524) (227,823)
net assets from contract
transactions
Retained in (returned from) (6,709) 1,014 (8,646) 2,670 (5,413)
Variable Annuity Account A,
net
Total increase (decrease) in (26,526,886) (11,997,194) 82,422,548 34,455,293 9,461,814
net assets
Net assets at beginning of
year 177,382,220 189,379,414 131,593,217 97,137,924 25,641,874
Net assets at end of year $ 150,855,334 $ 177,382,220 $ 214,015,765 $ 131,593,217 $ 35,103,688
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
12/31/98
Net investment income (loss) $ 259,118
Net realized gain (loss) on 2,410,109
investments
Unrealized appreciation (181,229)
(depreciation)
Net increase (decrease) in 2,487,998
net assets from operations
Payments received from 830,995
contract owners
Transfers between (1,993,797)
sub-accounts and the fixed
account, net
Transfers for contract (755,511)
benefits and terminations
Other transfers (to) from (1,561)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (1,919,874)
net assets from contract
transactions
Retained in (returned from) 654
Variable Annuity Account A,
net
Total increase (decrease) in 568,778
net assets
Net assets at beginning of year 25,073,096
Net assets at end of year $ 25,641,874
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INVESTMENT GRADE VIP II - ASSET MANAGER
BOND
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 744,873 $ 372,711 $ 2,381,637 $ 2,112,204
Net realized gain (loss) on 220,360 303,779 6,701,184 10,766,629
investments
Unrealized appreciation (1,395,292) 349,622 63,475 (655,336)
(depreciation)
Net increase (decrease) in (430,059) 1,026,112 9,146,296 12,223,497
net assets from operations
Payments received from 3,417,334 1,731,754 2,424,950 2,477,177
contract owners
Transfers between (5,330,955) 10,776,490 (7,127,954) (4,677,225)
sub-accounts and the fixed
account, net
Transfers for contract (842,493) (693,541) (4,899,468) (5,190,564)
benefits and terminations
Other transfers (to) from 3,839 (1,488) 9,532 (34,874)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (2,752,275) 11,813,215 (9,592,940) (7,425,486)
net assets from contract
transactions
Retained in (returned from) (1,815) 213 (4,564) 746
Variable Annuity Account A,
net
Total increase (decrease) in (3,184,149) 12,839,540 (451,208) 4,798,757
net assets
Net assets at beginning of year 21,364,595 8,525,055 96,618,357 91,819,600
Net assets at end of year $ 18,180,446 $ 21,364,595 $ 96,167,149 $ 96,618,357
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INDEX 500 VIP II - ASSET MANAGER:
GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 83,651 $ 222,361 $ 512,307 $ 391,937
Net realized gain (loss) on 10,052,701 13,346,539 3,482,327 5,114,567
investments
Unrealized appreciation 12,109,896 9,112,387 515,712 (667,729)
(depreciation)
Net increase (decrease) in 22,246,248 22,681,287 4,510,346 4,838,775
net assets from operations
Payments received from 10,721,198 7,745,488 2,143,156 2,675,973
contract owners
Transfers between (3,895,693) 5,201,166 (3,750,421) (6,134,030)
sub-accounts and the fixed
account, net
Transfers for contract (2,991,968) (4,898,551) (994,680) (774,181)
benefits and terminations
Other transfers (to) from 17,133 (9,527) 2,093 (14,353)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 3,850,670 8,038,576 (2,599,852) (4,246,591)
net assets from contract
transactions
Retained in (returned from) (5,261) 1,138 (5,412) 932
Variable Annuity Account A,
net
Total increase (decrease) in 26,091,657 30,721,001 1,905,082 593,116
net assets
Net assets at beginning of year 107,512,920 76,791,919 32,946,100 32,352,984
Net assets at end of year $ 133,604,577 $ 107,512,920 $ 34,851,182 $ 32,946,100
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
VIP II - CONTRAFUND
12/31/99 12/31/98
Net investment income (loss) $ (704,229) $ (266,259)
Net realized gain (loss) on 19,155,212 14,201,679
investments
Unrealized appreciation 21,310,986 23,314,910
(depreciation)
Net increase (decrease) in 39,761,969 37,250,330
net assets from operations
Payments received from 13,344,538 9,773,186
contract owners
Transfers between (6,147,293) (9,126,283)
sub-accounts and the fixed
account, net
Transfers for contract (8,021,589) (3,689,396)
benefits and terminations
Other transfers (to) from (2,132) (11,441)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (826,476) (3,053,934)
net assets from contract
transactions
Retained in (returned from) (6,462) 1,591
Variable Annuity Account A,
net
Total increase (decrease) in 38,929,031 34,197,987
net assets
Net assets at beginning of year 169,057,561 134,859,574
Net assets at end of year $ 207,986,592 $ 169,057,561
</TABLE>
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP III - BALANCED VIP III - GROWTH &
INCOME
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 115,988 $ 65,102 $ (170,283) $ (378,860)
Net realized gain (loss) on 662,780 631,653 8,970,314 1,841,721
investments
Unrealized appreciation (430,871) 373,537 (3,185,603) 10,346,320
(depreciation)
Net increase (decrease) in 347,897 1,070,292 5,614,428 11,809,181
net assets from operations
Payments received from 2,277,880 1,191,176 9,622,662 14,567,299
contract owners
Transfers between (193,407) 1,883,200 (11,968,744) 15,868,621
sub-accounts and the fixed
account, net
Transfers for contract (299,146) (219,835) (5,722,591) (1,973,918)
benefits and terminations
Other transfers (to) from 2,358 (2,168) 9,469 (14,699)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 1,787,685 2,852,373 (8,059,204) 28,447,303
net assets from contract
transactions
Retained in (returned from) (4,517) 847 (6,968) 1,729
Variable Annuity Account A,
net
Total increase (decrease) in 2,131,065 3,923,512 (2,451,744) 40,258,213
net assets
Net assets at beginning of year 8,601,349 4,677,837 69,111,358 28,853,145
Net assets at end of year $ 10,732,414 $ 8,601,349 $ 66,659,614 $ 69,111,358
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP III - GROWTH MSDWUF - EMERGING
OPPORTUNITIES MARKETS EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 100,740 $ 62,233 $ (20,566) $ 108
Net realized gain (loss) on 5,547,305 3,139,087 298,832 8,643
investments
Unrealized appreciation (4,333,559) 4,981,718 1,328,959 (98,190)
(depreciation)
Net increase (decrease) in 1,314,486 8,183,038 1,607,225 (89,439)
net assets from operations
Payments received from 2,827,238 6,234,421 468,566 113,147
contract owners
Transfers between (12,777,805) (1,395,866) 3,019,428 314,261
sub-accounts and the fixed
account, net
Transfers for contract (1,146,235) (1,936,492) (21,269) (399)
benefits and terminations
Other transfers (to) from (5,432) (6,503) 559 (2)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (11,102,234) 2,895,560 3,467,284 427,007
net assets from contract
transactions
Retained in (returned from) (6,541) 1,458 19 (1)
Variable Annuity Account A,
net
Total increase (decrease) in (9,794,289) 11,080,056 5,074,528 337,567
net assets
Net assets at beginning of year 44,311,264 33,231,208 546,742 209,175
Net assets at end of year $ 34,516,975 $ 44,311,264 $ 5,621,270 $ 546,742
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MSDWUF - EMERGING
MARKETS DEBT
12/31/99 12/31/98
Net investment income (loss) $ 35,182 $ 26,274
Net realized gain (loss) on 1,909 (5,315)
investments
Unrealized appreciation 25,241 (92,451)
(depreciation)
Net increase (decrease) in 62,332 (71,492)
net assets from operations
Payments received from 80,428 87,141
contract owners
Transfers between (130,259) (69,071)
sub-accounts and the fixed
account, net
Transfers for contract (622) (606)
benefits and terminations
Other transfers (to) from 161 (28)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (50,292) 17,436
net assets from contract
transactions
Retained in (returned from) (2) 2
Variable Annuity Account A,
net
Total increase (decrease) in 12,038 (54,054)
net assets
Net assets at beginning of year 282,550 336,604
Net assets at end of year $ 294,588 $ 282,550
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MSDWUF - GLOBAL MSDWUF -
EQUITY INTERNATIONAL MAGNUM
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 4,397 $ 2,494 $ 1,212 $ (1,357)
Net realized gain (loss) on 121,287 74,478 (14,001) 51,315
investments
Unrealized appreciation (79,017) 25,498 209,399 (89,038)
(depreciation)
Net increase (decrease) in 46,667 102,470 196,610 (39,080)
net assets from operations
Payments received from 249,422 758,399 231,733 374,549
contract owners
Transfers between (542,965) 836,755 (181,280) 411,163
sub-accounts and the fixed
account, net
Transfers for contract (33,029) (5,584) (19,339) (2,657)
benefits and terminations
Other transfers (to) from 243 (195) 216 397
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (326,329) 1,589,375 31,330 783,452
net assets from contract
transactions
Retained in (returned from) (4) 1 (1) (1)
Variable Annuity Account A,
net
Total increase (decrease) in (279,666) 1,691,846 227,939 744,371
net assets
Net assets at beginning of year 1,999,162 307,316 912,330 167,959
Net assets at end of year $ 1,719,496 $ 1,999,162 $ 1,140,269 $ 912,330
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PBHG - GROWTH II PBHG - SMALL CAP VALUE
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (21,104) $ (1,850) $ (18,810) $ (17,387)
Net realized gain (loss) on 508,570 18,137 114,494 103,567
investments
Unrealized appreciation 2,830,966 13,190 181,282 20,879
(depreciation)
Net increase (decrease) in 3,318,432 29,477 276,966 107,059
net assets from operations
Payments received from 1,200,034 133,860 423,761 500,142
contract owners
Transfers between 7,620,854 141,208 (1,530,331) 1,799,420
sub-accounts and the fixed
account, net
Transfers for contract (20,296) (609) (25,055) (17,248)
benefits and terminations
Other transfers (to) from 449 27 979 201
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 8,801,041 274,486 (1,130,646) 2,282,515
net assets from contract
transactions
Retained in (returned from) 33 (2) (2) (5)
Variable Annuity Account A,
net
Total increase (decrease) in 12,119,506 303,961 (853,682) 2,389,569
net assets
Net assets at beginning of year 431,049 127,088 2,937,388 547,819
Net assets at end of year $ 12,550,555 $ 431,049 $ 2,083,706 $ 2,937,388
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
PBHG - LARGE CAP VALUE
12/31/99 12/31/98
Net investment income (loss) $ (31,101) $ (1,145)
Net realized gain (loss) on 492,681 140,622
investments
Unrealized appreciation (165,273) 232,358
(depreciation)
Net increase (decrease) in 296,307 371,835
net assets from operations
Payments received from 934,429 393,422
contract owners
Transfers between 113,025 1,491,596
sub-accounts and the fixed
account, net
Transfers for contract (63,941) (103,177)
benefits and terminations
Other transfers (to) from 86 (2,284)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 983,599 1,779,557
net assets from contract
transactions
Retained in (returned from) (117) 113
Variable Annuity Account A,
net
Total increase (decrease) in 1,279,789 2,151,505
net assets
Net assets at beginning of year 2,347,270 195,765
Net assets at end of year $ 3,627,059 $ 2,347,270
</TABLE>
EMPIRE FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT A
OF
EMPIRE FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
PBHG - TECHNOLOGY & PBHG - SELECT 20
COMMUNICATIONS
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (299,125) $ (9,613) $ (323,793) $ (77,245)
Net realized gain (loss) on 2,304,654 60,345 4,619,284 837,116
investments
Unrealized appreciation 70,720,773 424,975 29,220,248 4,809,171
(depreciation)
Net increase (decrease) in 72,726,302 475,707 33,515,739 5,569,042
net assets from operations
Payments received from 18,048,159 502,534 10,163,549 4,070,084
contract owners
Transfers between 62,532,330 1,593,447 90,503 19,258,341
sub-accounts and the fixed
account, net
Transfers for contract (428,500) (4,960) (1,333,503) (343,605)
benefits and terminations
Other transfers (to) from (5,427) 37 (13,046) (6,492)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 80,146,562 2,091,058 8,907,503 22,978,328
net assets from contract
transactions
Retained in (returned from) 146 (24) (147) 57
Variable Annuity Account A,
net
Total increase (decrease) in 152,873,010 2,566,741 42,423,095 28,547,427
net assets
Net assets at beginning of year 2,932,095 365,354 29,117,879 570,452
Net assets at end of year $ 155,805,105 $ 2,932,095 $ 71,540,974 $ 29,117,879
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SVIF - DISCOVERY FUND II SVIF - MID CAP GROWTH
FUND II
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (1,954) $ (1,778) $ (49,188) $ (4,434)
Net realized gain (loss) on 37,151 5,448 526,279 21,237
investments
Unrealized appreciation (21,180) 2,341 5,370,251 112,638
(depreciation)
Net increase (decrease) in 14,017 6,011 5,847,342 129,441
net assets from operations
Payments received from 19,122 151,061 3,919,852 402,146
contract owners
Transfers between (27,036) 33,076 11,692,323 224,617
sub-accounts and the fixed
account, net
Transfers for contract (1,271) (2,353) (43,764) (1,040)
benefits and terminations
Other transfers (to) from 100 (931) (344) 243
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in (9,085) 180,853 15,568,067 625,966
net assets from contract
transactions
Retained in (returned from) (3) (9) (14) 39
Variable Annuity Account A,
net
Total increase (decrease) in 4,929 186,855 21,415,395 755,446
net assets
Net assets at beginning of year 279,046 92,191 915,824 160,378
Net assets at end of year $ 283,975 $ 279,046 $ 22,331,219 $ 915,824
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SVIF - OPPORTUNITY FUND
II
12/31/99 12/31/98
Net investment income (loss) $ (34,153) $ (10,945)
Net realized gain (loss) on 504,056 184,475
investments
Unrealized appreciation 773,031 (72,627)
(depreciation)
Net increase (decrease) in 1,242,934 100,903
net assets from operations
Payments received from 627,295 1,769,024
contract owners
Transfers between 473,742 1,048,157
sub-accounts and the fixed
account, net
Transfers for contract (41,900) (19,037)
benefits and terminations
Other transfers (to) from 116 (696)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 1,059,253 2,797,448
net assets from contract
transactions
Retained in (returned from) 3 (32)
Variable Annuity Account A,
net
Total increase (decrease) in 2,302,190 2,898,319
net assets
Net assets at beginning of year 3,225,067 326,748
Net assets at end of year $ 5,527,257 $ ,3,225,067
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - SMALL COMPANY WPT - INTERNATIONAL
GROWTH EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (10,500) $ (6,748) $ 7,644 $ (893)
Net realized gain (loss) on 243,098 24,269 25,821 21,892
investments
Unrealized appreciation 764,971 (56,918) 265,565 (33,271)
(depreciation)
Net increase (decrease) in 997,569 (39,397) 299,030 (12,272)
net assets from operations
Payments received from 298,639 331,697 175,112 181,100
contract owners
Transfers between 2,052,484 353,786 1,181,913 103,508
sub-accounts and the fixed
account, net
Transfers for contract (6,955) (6,083) (69) (1,957)
benefits and terminations
Other transfers (to) from (734) 46 (328) 1,986
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 2,343,434 679,446 1,356,628 284,637
net assets from contract
transactions
Retained in (returned from) 1 16 (1) (2,058)
Variable Annuity Account A,
net
Total increase (decrease) in 3,341,004 640,065 1,655,657 270,307
net assets
Net assets at beginning of year 953,257 313,192 301,996 31,689
Net assets at end of year $ 4,294,261 $ 953,257 $ 1,957,653 $ 301,996
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - POST-VENTURE TOTAL
CAPITAL
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (4,567) $ (2,989) $ 7,195,253 $ 7,337,700
Net realized gain (loss) on 87,468 21,703 114,760,825 95,873,057
investments
Unrealized appreciation 259,899 (24,571) 158,873,322 58,872,795
(depreciation)
Net increase (decrease) in 342,800 (5,857) 280,829,400 162,083,552
net assets from operations
Payments received from 175,283 337,029 142,609,296 95,861,635
contract owners
Transfers between (114,835) 119,403 (281,530) 2,170,805
sub-accounts and the fixed
account, net
Transfers for contract 0 (21,038) (54,108,214) (35,150,903)
benefits and terminations
Other transfers (to) from (5) 3 38,757 (190,243)
Empire Fidelity Investments
Life Insurance Co., net
Net increase (decrease) in 60,443 435,397 88,258,309 62,691,294
net assets from contract
transactions
Retained in (returned from) 0 (5) (177,758) 16,918
Variable Annuity Account A,
net
Total increase (decrease) in 403,243 429,535 368,909,951 224,791,764
net assets
Net assets at beginning of year 496,313 66,778 1,018,128,051 793,336,287
Net assets at end of year $ 899,556 $ 496,313 $ 1,387,038,002 $ 1,018,128,051
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
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 State
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.
Under applicable insurance law, the assets and liabilities of the
Account are clearly identified and distinguished from other assets and
liabilities of EFILI. The Account cannot be charged with liabilities
arising out of any other business of EFILI.
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.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Account in preparation of the financial statements
in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Investments are made by the subaccounts in their corresponding mutual
fund portfolios and are valued at the reported net asset values of
such portfolios.
ACCOUNTING FOR INVESTMENTS
Investment 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.
ANNUITY RESERVES
Annuity reserves are computed for contracts in the payout 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 the State of New York. The mortality risk is
fully borne by EFILI and may result in additional amounts being
transferred into the Account by EFILI.
FEDERAL INCOME TAXES
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").
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.
ESTIMATES
The preparation of the statement of assets and liabilities and the
statements of operations and of changes in net assets in accordance
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the related amounts and
disclosures in the financial statements. Actual results could differ
from those estimates.
RECLASSIFICATIONS
Certain prior year balances have been reclassified to conform with the
current year presentation.
3. EXPENSES
EFILI deducts a daily charge from the net assets of the Account for
administrative expenses and for the assumption of mortality risk and
expense risk. The daily charge is equivalent to an annual effective
rate of 1% of net assets for Income Advantage contracts and is
equivalent to an annual effective rate of 0.8% of net assets for
Retirement Reserves contracts. EFILI also deducts an annual
maintenance charge of $30 from the Retirement Reserves contract value.
The maintenance charge is waived on certain contracts.
In 1999, EFILI began offering Retirement Reserves contractholders the
opportunity to elect a death benefit rider. If elected, EFILI deducts
a quarterly charge which will not exceed 0.10% of the Retirement
Reserves contract value on the date of the charge. There will be no
charges made once the annuitant reaches their 85th birthday.
4. AFFILIATED COMPANY TRANSACTIONS
The contracts are distributed through Fidelity Brokerage Services,
Inc. (FBSI), Fidelity Insurance Agency, Inc. (FIA), and Fidelity
Investments Institutional Services Company, Inc. (FIIS), all of which
are affiliated with FMR Corp. FBSI, FIA, and FIIS 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 the VIP, VIP II and VIP III portfolios. Fidelity
Investments Institutional Operations Company, Inc., an affiliate of
FMR Corp., is the transfer and shareholder servicing agent for the
VIP, VIP II and VIP III 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,
1999:
PURCHASES SALES
VIP - Money Market $ 77,848,145 $ 64,995,278
VIP - High Income 8,228,190 12,370,871
VIP - Equity-Income 19,858,230 48,263,583
VIP - Growth 61,163,470 19,129,150
VIP - Overseas 6,887,364 6,351,853
VIP II - Investment Grade Bond 10,059,624 11,782,415
VIP II - Asset Manager 13,434,750 16,655,728
VIP II - Index 500 27,497,084 22,825,706
VIP II - Asset Manager: Growth 8,649,815 9,438,863
VIP II - Contrafund 32,062,582 27,436,327
VIP III - Balanced 6,742,283 4,607,168
VIP III - Growth & Income 18,453,284 25,810,398
VIP III - Growth Opportunities 7,598,913 17,785,841
MSDWUF - Emerging Markets 8,923,362 5,476,625
Equity
MSDWUF - Emerging Markets Debt 404,868 419,980
MSDWUF - Global Equity 779,981 1,025,792
MSDWUF - International Magnum 972,289 935,673
PBHG - Growth II 10,813,154 2,033,184
PBHG - Small Cap Value 2,893,929 4,043,387
PBHG - Large Cap Value 4,526,144 3,474,651
PBHG - Technology & 88,739,222 8,891,639
Communications
PBHG - Select 20 25,440,638 16,857,075
SVIF - Discovery Fund II 175,028 150,600
SVIF - Mid Cap Growth Fund II 17,238,070 1,716,372
SVIF - Opportunity Fund II 2,864,593 1,465,699
WPT - Small Company Growth 4,181,447 1,769,713
WPT - International Equity 2,241,862 877,591
WPT - Post-Venture Capital 481,893 426,017
6. UNIT VALUES
A summary of changes in accumulation units and ending unit and
contract values for variable annuity contracts at December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
BEGINNING PAYMENTS TRANSFERS CONTRACT ENDING ENDING DOLLARS
BALANCE RECEIVED BETWEEN TERMINATIONS BALANCE BALANCE
UNITS FROM SUBACCOUNTS, UNITS UNIT
CONTRACT NET VALUE
OWNERS
JANUARY 1, 1999 TO DECEMBER
31, 1999
VIP - Money Market 3,614,051 1,443,826 (181,549) (739,917) 4,136,411 $ 17.441547 $ 72,145,408
VIP - High Income 854,157 52,504 (237,317) (30,459) 638,885 $ 29.532615 18,867,943
VIP - Equity-Income 3,922,539 97,514 (728,318) (184,463) 3,107,272 $ 46.009566 142,964,243
VIP - Growth 2,171,438 225,585 317,718 (155,456) 2,559,285 $ 80.674535 206,469,135
VIP - Overseas 967,204 37,532 (41,081) (30,662) 932,993 $ 37.223575 34,729,344
VIP II - Investment Grade Bond 986,932 175,271 (285,275) (22,685) 854,243 $ 19.870115 16,973,906
VIP II - Asset Manager 3,305,949 83,932 (233,114) (227,034) 2,929,733 $ 31.190611 91,380,167
VIP II - Index 500 3,273,507 326,979 (111,304) (114,832) 3,374,350 $ 37.781601 127,488,333
VIP II - Asset Manager: Growth 1,483,958 112,031 (173,159) (74,342) 1,348,488 $ 23.934865 32,275,889
VIP II - Contrafund 6,211,520 486,189 (235,173) (353,205) 6,109,331 $ 32.540456 198,800,411
VIP III - Balanced 537,166 162,759 (30,696) (51,090) 618,139 $ 14.501916 8,964,199
VIP III - Growth & Income 3,974,242 579,518 (736,631) (416,492) 3,400,637 $ 17.646534 60,009,454
VIP III - Growth Opportunities 2,691,359 186,624 (821,822) (111,171) 1,944,990 $ 16.153367 31,418,141
MSDWUF - Emerging Markets 71,567 41,964 268,729 (4,432) 377,828 $ 14.679023 5,546,140
Equity
MSDWUF - Emerging Markets Debt 36,909 9,917 (16,957) (6) 29,863 $ 9.552515 285,265
MSDWUF - Global Equity 152,473 21,706 (47,610) (1,463) 125,106 $ 11.916163 1,490,794
MSDWUF - International Magnum 75,635 19,878 (17,275) (2,126) 76,112 $ 13.230131 1,006,980
PBHG - Growth II 38,979 70,277 472,118 (7,817) 573,557 $ 21.422237 12,286,875
PBHG - Small Cap Value 248,781 47,089 (134,867) (12,309) 148,694 $ 13.200297 1,962,814
PBHG - Large Cap Value 154,968 72,840 6,464 (9,041) 225,231 $ 15.178062 3,418,584
PBHG - Technology & 221,015 781,886 2,591,232 (53,050) 3,541,083 $ 42.930574 152,020,736
Communications
PBHG - Select 20 1,691,752 558,820 (82,501) (108,610) 2,059,461 $ 33.424799 68,837,079
SVIF - Discovery Fund II 25,260 2,414 (987) (1,519) 25,168 $ 10.752497 270,623
SVIF - Mid Cap Growth Fund II 67,817 217,770 607,518 (25,790) 867,315 $ 24.646794 21,376,528
SVIF - Opportunity Fund II 267,972 49,443 35,067 (22,143) 330,339 $ 15.294116 5,052,236
WPT - Small Company Growth 93,472 29,094 136,208 (689) 258,085 $ 16.470689 4,250,849
WPT - International Equity 29,229 13,582 81,058 (15) 123,854 $ 15.725838 1,947,701
WPT - Post-Venture Capital 45,815 11,927 (5,604) (941) 51,197 $ 17.570342 899,556
$ 1,323,139,333
</TABLE>
6. UNIT VALUES - CONTINUED
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
BEGINNING PAYMENTS TRANSFERS CONTRACT ENDING ENDING DOLLARS
BALANCE RECEIVED BETWEEN TERMINATIONS BALANCE BALANCE
UNITS FROM SUBACCOUNTS, UNITS UNIT
CONTRACT NET VALUE
OWNERS
JANUARY 1, 1998 TO DECEMBER
31, 1998
VIP - Money Market 2,510,803 1,647,401 (220,944) (323,209) 3,614,051 $ 16.718422 $ 60,421,297
VIP - High Income 868,993 133,979 (69,329) (79,486) 854,157 $ 27.525979 23,511,486
VIP - Equity-Income 4,666,312 172,712 (732,658) (183,827) 3,922,539 $ 43.619607 171,099,633
VIP - Growth 2,229,721 79,040 (61,187) (76,136) 2,171,438 $ 59.172379 128,489,157
VIP - Overseas 1,059,560 32,658 (88,408) (36,606) 967,204 $ 26.308910 25,446,085
VIP II - Investment Grade Bond 442,121 96,445 553,565 (105,199) 986,932 $ 20.242828 19,978,293
VIP II - Asset Manager 3,604,315 100,308 (164,174) (234,500) 3,305,949 $ 28.302849 93,567,756
VIP II - Index 500 3,001,334 296,359 206,144 (230,330) 3,273,507 $ 31.604128 103,456,330
VIP II - Asset Manager: Growth 1,760,200 154,243 (337,931) (92,554) 1,483,958 $ 20.933935 31,065,071
VIP II - Contrafund 6,419,636 443,789 (451,601) (200,304) 6,211,520 $ 26.399736 163,982,487
VIP III - Balanced 371,377 100,999 145,380 (80,590) 537,166 $ 13.982944 7,511,155
VIP III - Growth & Income 2,163,555 1,107,895 1,071,230 (368,438) 3,974,242 $ 16.294958 64,760,113
VIP III - Growth 2,558,459 468,112 (96,266) (238,946) 2,691,359 $ 15.616534 42,029,696
Opportunities
MSDWUF - Emerging Markets 20,806 12,500 39,057 (796) 71,567 $ 7.561799 541,172
Equity
MSDWUF - Emerging Markets 32,130 9,702 (3,800) (1,123) 36,909 $ 7.443062 274,713
Debt
MSDWUF - Global Equity 29,979 70,359 75,573 (23,438) 152,473 $ 11.539332 1,759,437
MSDWUF - International Magnum 17,042 35,893 36,135 (13,435) 75,635 $ 10.652996 805,735
PBHG - Growth II 11,877 13,257 13,845 0 38,979 $ 10.895644 424,700
PBHG - Small Cap Value 51,781 45,359 159,664 (8,023) 248,781 $ 11.477768 2,855,455
PBHG - Large Cap Value 18,440 34,250 123,327 (21,049) 154,968 $ 14.051655 2,177,563
PBHG - Technology & 34,037 46,836 143,175 (3,033) 221,015 $ 12.942126 2,860,409
Communications
PBHG - Select 20 54,758 310,910 1,419,936 (93,852) 1,691,752 $ 16.795293 28,413,465
SVIF - Discovery Fund II 8,046 16,676 3,995 (3,457) 25,260 $ 10.314283 260,538
SVIF - Mid Cap Growth Fund II 15,649 36,533 18,029 (2,394) 67,817 $ 13.084892 887,378
SVIF - Opportunity Fund II 31,571 165,753 90,042 (19,394) 267,972 $ 11.428140 3,062,422
WPT - Small Company Growth 28,265 33,486 33,545 (1,824) 93,472 $ 9.819912 917,883
WPT - International Equity 3,206 16,976 9,236 (189) 29,229 $ 10.331959 301,996
WPT - Post-Venture Capital 6,514 30,180 11,079 (1,958) 45,815 $ 10.833075 496,310
$ 981,357,735
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contractholders of Empire Fidelity Investments Variable Annuity
Account A of
Empire Fidelity Investments Life Insurance Company:
In our opinion, the accompanying statement of assets and liabilities
and the related statements of operations and of changes in net assets
present fairly, in all material respects, the financial position of
each of the subaccounts constituting the Empire Fidelity Investments
Variable Annuity Account A of Empire Fidelity Investments Life
Insurance Company at December 31, 1999, and the results of each of
their operations and the changes in each of their net assets for each
of the two years in the period then ended December 31, 1999, in
conformity with accounting principles generally accepted in the United
States. These financial statements are the responsibility of Empire
Fidelity Investments Life Insurance Company's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these statements in
accordance with auditing standards generally accepted in the United
States, which 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, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of investments at December 31, 1999 by
correspondence with the funds, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 25, 2000
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, Fidelity
Insurance Agency, Inc., and Fidelity Investments Institutional
Services Company, Inc. are the distributors.
82 Devonshire Street, Boston, MA 02109
