<PAGE>
PANORAMA PLUS
SEPARATE ACCOUNT
CONNECTICUT MUTUAL FINANCIAL SERVICES
SERIES FUND I, INC.
A N N U A L
R E P O R T S
DECEMBER 31, 1995
Money Market Portfolio
Government Securities Portfolio
Income Portfolio
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
[LOGO] CM Life
A Connecticut Mutual Company
<PAGE>
PANORAMA PLUS ANNUAL REPORT
---------------------------
1995 ANNUAL REPORT
DEAR PANORAMA PLUS CONTRACT HOLDER:
The stock and bond markets both turned in impressive performances last
year, making 1995 a banner year for investors. It was a year in which the Dow
Jones Industrial Average exceeded 5200 and the yield on the 30 year Treasury
bond dropped by almost 200 basis points.
What went right for the markets in 1995? Just about everything that
mattered.
We entered the year with a strong economy. The Central Bank, in a
tightening mode, had been increasing interest rates to head off inflation. The
November elections brought victory for the Republicans in Congress, signaling a
better political time for markets.
As expected, the increasing interest rates of 1994 and early 1995 put
the brakes on the economy, slowing it sufficiently to avoid higher inflation,
but not enough to cause a recession. The Fed began to ease its grip on
interest rates, the dollar gathered strength, and inflation remained low
- --setting a positive tone for both the bond and stock markets.
At the same time, corporate earnings grew vigorously and the federal
government continued moving toward greater fiscal responsibility --
contributing to a superlative year for the stock market.
Because our portfolio managers were anticipating this type of
environment, Panorama Plus investors were able to capitalize on market
trends. All of the Panorama Plus Accounts performed admirably in their
respective categories.
The Panorama Plus Money Market Account, as with all money market funds,
responded to lower inflation and lower interest rates with modest returns.
The Panorama Plus Money Market Account was up 4.36 percent for the twelve
months ended December 31, 1995 -- in line with the category average of 4.34
percent, according to Morningstar.
The Panorama Plus Government Securities Account performed well, turning
in a gain of 17.01 percent, outperforming the category average of 15.83
percent for the twelve month period ended December 31, 1995, as reported by
Morningstar. The fund continued to de-emphasize mortgage-backed securities
and held bonds with maturities a little longer than the average.
The Panorama Plus Income Account was up 17.20 percent, compared with
the category average increase of 16.44 percent, for the twelve months ended
December 31, 1995, according to Morningstar. The Account was well-positioned
for a decreasing interest rate environment and held maturities that were a
little longer than the average bond fund.
The Panorama Plus Total Return Account, with a mix of stocks, bonds and
cash, ended the twelve months of 1995 with a 23.13 percent increase according
to Morningstar. The Fund's strict asset allocation discipline, along with its
good stock selection, helped it outperform the category average of 22.17
percent.
The Panorama Plus Growth Account boasted an impressive 36.02 percent
gain in the twelve months ended December 31, 1995, according to Morningstar,
compared with the category average increase of 31.10 percent.
The Panorama Plus International Equity Account gained 9.34 percent for
the twelve months ended December 31, 1995, according to Morningstar, compared
with the category average increase of 10.38 percent.
We are certainly pleased with the performance of Panorama Plus
throughout 1995, and will continue to monitor economic and market conditions
to help maintain Panorama Plus's position as a top-performing variable
annuity. You will likely find that the expertise of our investment
professionals is even more valuable as we grapple with the federal budget
battle and anticipate the Presidential elections in the months ahead.
ECONOMIC FORECAST: FIRST AND SECOND QUARTERS 1996
A look ahead at 1996 shows a continuation of 1995, with low inflation, a
slow economy and continued reductions in interest rates by the Fed. This
scenario -- combined with a strong dollar and decreasing rates overseas --
provides a favorable backdrop for the bond market, although most of the rally
seems to be behind us.
A strong bond market and low interest rates should fuel more growth in
the stock market. That growth could, however, be dampened by lackluster
corporate earnings, which could introduce downward pressure on the market and
create volatility.
Our investment managers also are keeping a close eye on Washington.
Although the current battle over the federal budget appears to represent
another step in the march toward fiscal responsibility, it could also create
short-term volatility in the markets. The presidential election in November
bears watching, as well.
Overall, the fundamentals remain positive: a slowing (but still
growing) economy, little inflation, improving prospects of a balanced
federal budget and falling short-term interest rates. Unless these dynamics
change, we look forward to another strong year in the financial markets.
SUMMARY
For most investors, the current bull market is a dream come true. But,
anyone who has watched the market over time knows that circumstances can
change quickly and double-digit returns can easily dwindle.
Successful investors anticipate those ups and downs and ride them out
- -- because they know that, in the long run, the stock market has provided
financial rewards. That's why we, too, stick to a tried and true investment
discipline designed to work in good times and in bad, over time.
On the whole we are pleased with the results of Panorama Plus for
1995 and we hope you share our enthusiasm and optimism for the
coming year. If you want to know more about Panorama Plus and the options
available to you, talk to your registered representative or call
1-800-234-5606, and press one, to find out more.
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
PANORAMA PLUS INVESTMENT OPTIONS
GENERAL ACCOUNT
The General Account provides for fixed accumulations and a specified interest
rate on Purchase Payments allocated to, and amounts transferred to, the
General Account. The interest rate will be reset periodically, generally
quarterly, at the sole discretion of C.M. Life. The General Account Balance
may be subject to an Interest Rate Factor Adjustment upon Surrender and on the
Annuity Income Date.
MONEY MARKET
This Portfolio is designed to achieve as high a level of current income as is
consistent with preservation of capital and maintenance of liquidity by
investing in money market instruments.
GOVERNMENT SECURITIES
The objective of this Portfolio is to provide a high level of current income
with a high degree of safety of principal by investing primarily in securities
that are issued or guaranteed as to principal and interest by the U.S.
government, its agencies, authorities or instrumentalities and by obligations
that are fully collateralized or otherwise fully backed by U.S. Government
Securities.*
INCOME
This Portfolio's objective is to obtain a maximum level of income consistent
with prudent investment risk and preservation of capital by investing
primarily in fixed-income debt securities anticipated to have an average
maturity of eight to twelve years from the date of purchase.
TOTAL RETURN
This Portfolio seeks to maximize over time the return achieved from capital
appreciation and income by varying the allocation of the assets of the
Portfolio among stocks, corporate bonds, securities issued by the U.S.
Government and its instrumentalities, and money market instruments of the type
acquired respectively by the Growth Portfolio, the Income Portfolio, the
Government Securities Portfolio and the Money Market Portfolio.
<PAGE>
GROWTH
The objective of this Portfolio is to achieve long-term growth of capital by
investing primarily in common stocks with low price-earnings ratios and better
than anticipated earnings.
INTERNATIONAL EQUITY
This Portfolio seeks to achieve long-term growth of capital by investing
primarily in equity securities (such as common stocks) of non-U.S. issuers
trading for the most part in non-U.S. markets.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
*THE GOVERNMENT BACKING APPLIES ONLY TO THE TIMELY PAYMENT OF PRINCIPAL AND
INTEREST AND DOES NOT APPLY TO THE SHARES OF THE FUND.
THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A
PROSPECTUS.
THE PERFORMANCE EVALUATED BY MORNINGSTAR, INC., WHICH TRACKS MORE THAN 190
ANNUITY CONTRACTS, IS ACTUAL PORTFOLIO PERFORMANCE (NON-STANDARD) AND INCLUDES
REINVESTED DIVIDENDS AND CAPITAL GAINS, AND REFLECTS ALL ON-GOING INVESTMENT,
MORTALITY, AND EXPENSE CHARGES.
<PAGE>
<TABLE>
<S> <C>
PERFORMANCE -- TOTAL RETURN1
</TABLE>
<TABLE>
<CAPTION> SYNTHETIC4
NON-STANDARD3
SYNTHETIC4 STANDARD2 AVERAGE ANNUAL AVERAGE ANNUAL
TOTAL RETURN AS OF 12/31/95 TOTAL RETURN AS OF 12/31/95
SINCE PORTFOLIO SINCE PORTFOLIO
PORTFOLIO FIVE YEAR TEN YEAR INCEPTION5 FIVE YEAR TEN YEAR INCEPTION5
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET7 2.95% 4.47% 5.49% 2.95% 4.47% 5.49%
GOVERNMENT SECURITIES N/A N/A N/A N/A N/A N/A
INCOME 8.75% 7.95% 9.88% 8.75% 7.95% 9.88%
TOTAL RETURN 13.73% 11.20% 12.44% 13.73% 11.20% 12.44%
GROWTH 19.31% 13.76% 16.25% 19.31% 13.76% 16.25%
INTERNATIONAL EQUITY8 N/A N/A N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
NON-STANDARD3
AVERAGE ANNUAL
STANDARD2 AVERAGE ANNUAL TOTAL RETURN AS
TOTAL RETURN AS OF 12/31/95 OF 12/31/95
UNIT VALUE
(DECEMBER 31, SINCE ACCOUNT SINCE ACCOUNT
SUB-ACCOUNT6 1995) ONE YEAR THREE YEAR INCEPTION6 ONE YEAR THREE YEAR INCEPTION6
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET7 1.100599 -0.50% 1.17% 1.34% 4.21% 2.74% 2.60%
SEVEN DAY YIELD: (12/24/95 -
12/31/95)
Annualized 4.22%
Effective 4.31%
GOVERNMENT SECURITIES 1.281804 11.52% 4.73% 5.55% 16.86% 6.38% 7.00%
INCOME 1.306525 11.70% 5.43% 6.11% 17.05% 7.09% 7.56%
TOTAL RETURN 1.460595 17.33% 9.49% 9.45% 22.98% 11.22% 10.91%
GROWTH 1.711382 29.58% 15.22% 14.33% 35.87% 17.06% 15.86%
INTERNATIONAL EQUITY8 1.251930 4.23% 7.82% 4.95% 9.19% 9.50% 6.31%
</TABLE>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION OF
FUTURE RETURNS.
THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT.
1. All returns take into consideration all ongoing investment, mortality and
expense charges pertaining to Panorama Plus Separate Account contracts as
well as the annual maintenance charge paid from each contract. Total return
figures include reinvestment of all dividends and capital gains.
2. The "standard" returns assume the contract is surrendered at the end of the
calculation period and incurs a 5% surrender charge depending on the length
of time invested. For the 5 year and 10 year calculations, the surrender
charge is 0%.
3. The "non-standard" returns assume the contract is still in force and
therefore do not take into consideration the surrender charge.
4. The "synthetic" returns are based on the actual performance of the Series
Fund I Portfolios before Panorama Plus Separate Account commenced operations,
and assume Panorama Plus Separate Account charges and Series Fund I net asset
values.
5. Inception was January 21, 1982 except for the Total Return Portfolio which
began on September 30, 1982.
6. These returns are based on the actual historical performance of Panorama Plus
Sub-Accounts invested in Series Fund I Portfolios. Inception for the Separate
Account was May 13, 1992.
7. Amounts allocated to the Money Market Sub-Account are invested in the Money
Market Portfolio of Series Fund I. AN INVESTMENT IN THE MONEY MARKET
PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE
CAN BE NO ASSURANCE THAT THE MONEY MARKET PORTFOLIO WILL BE ABLE TO MAINTAIN
A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
8. There are special risks associated with international investing such as
political changes and currency fluctuations.
<TABLE>
<S> <C>
UNIT VALUES, PERCENT CHANGES PANORAMA PLUS SEPARATE ACCOUNT OF
C.M. LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1994 1995
S U B - A C C O U N T S UNIT VALUE* UNIT VALUE* PERCENT CHANGE
<S> <C> <C> <C>
MONEY MARKET 1.054570 1.100599 + 4.36%
GOVERNMENT SECURITIES 1.095471 1.281804 +17.01%
INCOME 1.114759 1.306525 +17.20%
TOTAL RETURN 1.186187 1.460595 +23.13%
GROWTH 1.258146 1.711382 +36.02%
INTERNATIONAL EQUITY 1.145014 1.251930 + 9.34%
<CAPTION>
PERCENT CHANGE
S U B - A C C O U N T S SINCE INCEPTION**
<S> <C>
MONEY MARKET +10.06%
GOVERNMENT SECURITIES +28.18%
INCOME +30.65%
TOTAL RETURN +46.06%
GROWTH +71.14%
INTERNATIONAL EQUITY +25.19%
</TABLE>
* These unit values do not reflect the
annual $30 contract maintenance fee or
surrender charges.
** The inception date was May 13, 1992 for
all sub-accounts. All unit values were
$1.00 at inception.
1
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF NET ASSETS PANORAMA PLUS SEPARATE ACCOUNT OF
C.M. LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
<TABLE>
<S> <C>
ASSETS
Investments, at market:
Connecticut Mutual Financial Services Series Fund I,
Inc.
Money Market Portfolio
18,636,322 shares (Cost $18,636,322) $18,636,322
Government Securities Portfolio
16,447,447 shares (Cost $17,169,705) 17,570,971
Income Portfolio
21,864,513 shares (Cost $26,718,936) 26,937,233
Total Return Portfolio
162,051,113 shares (Cost $271,851,430) 284,192,764
Growth Portfolio
56,351,498 shares (Cost $126,802,053) 142,313,792
International Equity Portfolio
34,032,122 shares (Cost $38,206,750) 39,162,056
-------------
528,813,138
Cash 2,074,840
-------------
Total Assets 530,887,978
-------------
LIABILITIES
Payable for Investments Purchased 1,112,261
Due to Affiliates 347,876
-------------
Total Liabilities 1,460,137
-------------
NET ASSETS (variable annuity contract liabilities) $529,427,841
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY CONTRACT LIABILITIES
At December 31, 1995, the variable annuity contract UNITS OWNED BY
liabilities of the Account consisted of the following: PARTICIPANTS UNIT VALUES
<S> <C> <C>
MONEY MARKET SUB-ACCOUNT 16,949,501 1.100599
GOVERNMENT SECURITIES SUB-ACCOUNT 13,726,057 1.281804
INCOME SUB-ACCOUNT 20,617,764 1.306525
TOTAL RETURN SUB-ACCOUNT 194,679,349 1.460595
GROWTH SUB-ACCOUNT 83,371,008 1.711382
INTERNATIONAL EQUITY SUB-ACCOUNT 31,322,974 1.251930
<CAPTION>
VARIABLE ANNUITY CONTRACT LIABILITIES
At December 31, 1995, the variable annuity contract VARIABLE ANNUITY
liabilities of the Account consisted of the following: CONTRACT LIABILITIES
<S> <C>
MONEY MARKET SUB-ACCOUNT $18,654,604
GOVERNMENT SECURITIES SUB-ACCOUNT 17,594,114
INCOME SUB-ACCOUNT 26,937,625
TOTAL RETURN SUB-ACCOUNT 284,347,684
GROWTH SUB-ACCOUNT 142,679,643
INTERNATIONAL EQUITY SUB-ACCOUNT 39,214,171
---------------------
$529,427,841
---------------------
---------------------
</TABLE>
2 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS PANORAMA PLUS SEPARATE ACCOUNT OF
C.M. LIFE INSURANCE COMPANY
For the year ended December 31, 1995
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
GOVERNMENT TOTAL
MONEY MARKET SECURITIES INCOME RETURN GROWTH
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 862,338 $ 926,653 $1,665,826 $19,908,048 $9,744,030
Expenses:
Mortality and Expense Risk Fees 184,172 178,149 248,880 2,537,691 1,000,941
------------- ------------ ------------ ------------ ------------
NET INVESTMENT INCOME 678,166 748,504 1,416,946 17,370,357 8,743,089
------------- ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net Realized (Loss) Gain from Fund Share
Transactions -- (181,580) (560,230) 412,341 1,077,287
Unrealized Appreciation -- 1,740,443 2,626,301 28,716,298 19,468,392
------------- ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS -- 1,558,863 2,066,071 29,128,639 20,545,679
------------- ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 678,166 $2,307,367 $3,483,017 $46,498,996 $29,288,768
------------- ------------ ------------ ------------ ------------
------------- ------------ ------------ ------------ ------------
<CAPTION>
INTERNATIONAL
EQUITY
<S> <C>
INVESTMENT INCOME
Income:
Dividends $1,668,525
Expenses:
Mortality and Expense Risk Fees 352,022
------------
NET INVESTMENT INCOME 1,316,503
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net Realized (Loss) Gain from Fund Share
Transactions 80,004
Unrealized Appreciation 1,659,806
------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 1,739,810
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $3,056,313
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 3
<PAGE>
<TABLE>
<S> <C>
STATEMENTS OF CHANGES IN NET ASSETS PANORAMA PLUS SEPARATE ACCOUNT OF
C.M. LIFE INSURANCE COMPANY
For the years ended December 31, 1995 and 1994
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
MONEY MARKET GOVERNMENT SECURITIES
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income $ 678,166 $ 258,141 $ 748,504 $ 621,480
Net Realized (Loss) Gain from Fund Share Transactions -- -- (181,580) (131,988)
Unrealized Appreciation (Depreciation) -- -- 1,740,443 (1,110,222)
-------------- -------------- -------------- --------------
Net Increase in Net Assets Resulting from Operations 678,166 258,141 2,307,367 (620,730)
-------------- -------------- -------------- --------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 16,303,708 16,747,944 4,239,135 6,647,876
Withdrawals by Contract Holders (1,041,002) (301,788) (1,010,025) (728,540)
Net Transfers (to) from other Panorama Plus Sub-Accounts (11,631,631) (5,581,994) (1,082,071) (1,943,149)
-------------- -------------- -------------- --------------
Net Increase in Net Assets From Unit Transactions 3,631,075 10,864,162 2,147,039 3,976,187
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS 4,309,241 11,122,303 4,454,406 3,355,457
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of Period 14,345,363 3,223,060 13,139,708 9,784,251
-------------- -------------- -------------- --------------
End of Period $18,654,604 $ 14,345,363 $ 17,594,114 $ 13,139,708
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
4 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
INCOME TOTAL RETURN
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income $1,416,946 $1,186,668 $17,370,357 $9,976,188
Net Realized (Loss) Gain from Fund Share Transactions (560,230) (425,183) 412,341 (86,743)
Unrealized Appreciation (Depreciation) 2,626,301 (1,578,812) 28,716,298 (13,080,114)
-------------- -------------- -------------- --------------
Net Increase in Net Assets Resulting from Operations 3,483,017 (817,327) 46,498,996 (3,190,669)
-------------- -------------- -------------- --------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 7,327,312 9,384,403 65,816,257 91,565,680
Withdrawals by Contract Holders (1,503,125) (731,934) (9,098,100) (5,429,841)
Net Transfers (to) from other Panorama Plus Sub-Accounts (750,762) (3,875,075) 6,375,872 5,153,362
-------------- -------------- -------------- --------------
Net Increase in Net Assets From Unit Transactions 5,073,425 4,777,394 63,094,029 91,289,201
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS 8,556,442 3,960,067 109,593,025 88,098,532
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of Period 18,381,183 14,421,116 174,754,659 86,656,127
-------------- -------------- -------------- --------------
End of Period $26,937,625 $18,381,183 $284,347,684 $174,754,659
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
GROWTH INTERNATIONAL EQUITY
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income $8,743,089 $2,396,992 $1,316,503 $ 169,474
Net Realized (Loss) Gain from Fund Share Transactions 1,077,287 201,092 80,004 237,020
Unrealized Appreciation (Depreciation) 19,468,392 (3,322,855) 1,659,806 (846,587)
-------------- -------------- -------------- --------------
Net Increase in Net Assets Resulting from Operations 29,288,768 (724,771) 3,056,313 (440,093)
-------------- -------------- -------------- --------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 47,296,147 36,240,295 12,435,120 17,297,089
Withdrawals by Contract Holders (4,558,600) (1,264,571) (1,236,355) (521,706)
Net Transfers (to) from other Panorama Plus Sub-Accounts 8,203,928 3,471,723 (711,707) 2,941,839
-------------- -------------- -------------- --------------
Net Increase in Net Assets From Unit Transactions 50,941,475 38,447,447 10,487,058 19,717,222
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS 80,230,243 37,722,676 13,543,371 19,277,129
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of Period 62,449,400 24,726,724 25,670,800 6,393,671
-------------- -------------- -------------- --------------
End of Period $142,679,643 $62,449,400 $39,214,171 $25,670,800
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 5
<PAGE>
<TABLE>
<S> <C>
NOTES TO FINANCIAL STATEMENTS PANORAMA PLUS SEPARATE ACCOUNT OF
C.M. LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
1. ORGANIZATION
The Panorama Plus Separate Account (the Account) is a separate account
within C.M. Life Insurance Company (C.M. Life). C.M. Life is a wholly-owned
stock life insurance subsidiary of Connecticut Mutual Life Insurance Company
(Connecticut Mutual). Although the Account is an integral part of C.M. Life,
it is registered as a unit investment trust under the Investment Company Act
of 1940, as amended. The assets attributable to contracts participating in
the Account are held for the benefit of the participants and are not
chargeable with liabilities arising out of any other business that C.M. Life
or Connecticut Mutual may conduct. Each purchase payment is allocated to one
or more sub-accounts of the Account. The Account is invested exclusively in
portfolios of Connecticut Mutual Financial Services Series Fund I, Inc. (the
Fund). Net purchase payments and transfers between sub-accounts are applied
to purchase Fund shares in the appropriate portfolio at the net asset value
determined as of the end of the valuation period during which the payments
were received or the transfers made.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)FUND SHARE TRANSACTIONS - Fund share transactions are recorded on the trade
date. The cost of Fund shares sold is determined on the basis of identified
cost.
(b)VALUATION OF INVESTMENT SECURITIES - The investments in shares of the Fund
are valued at their closing net asset value per share as determined for the
appropriate portfolio of the Fund on December 31, 1995. Valuation of
securities by the Fund is discussed in Note 1 of the Fund's Notes to
Financial Statements which are included elsewhere in this report.
(c)FEDERAL INCOME TAXES - The operations of the Account form a part of the
total operations of C.M. Life and are not taxed separately. C.M. Life is
included in Connecticut Mutual's consolidated Federal income tax return.
Connecticut Mutual is taxed as a life insurance company under the life
insurance tax provisions of the Internal Revenue Code of 1986, as amended.
The Account will not be taxed as a regulated investment company under
Subchapter M of the Internal Revenue Code. Accordingly, no provision for
income taxes has been required in the accompanying financial statements.
(d)OTHER - Certain reclassifications have been made to prior year amounts to
conform with current year presentation.
3. CONTRACT CHARGES
For assuming mortality and expense risks and administrative expenses, C.M.
Life makes a daily charge equal to .00312% (1.14% on an annual basis) of the
value of the Account's assets. A deduction of $30 per contract is made
annually to cover the expense of administering the Account.
4. SUBSEQUENT EVENT
On September 8, 1995, the Board of Directors of Connecticut Mutual approved
the merger of Connecticut Mutual and Massachusetts Mutual Life Insurance
Company. Thereafter, a definitive agreement was signed by both companies. On
January 27, 1996, Connecticut Mutual and its insurance subsidiary
policyholders and other insureds and annuitants approved the merger. The
merger was subsequently reviewed by the insurance regulatory authorities in
Connecticut and Massachusetts and approved. It is anticipated that the merger
will be effective on March 1, 1996.
6
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Panorama Plus Separate Account of C.M. Life Insurance Company
and to the Owners of Units of Interest Therein:
We have audited the accompanying statement of net assets of Panorama Plus
Separate Account of C.M. Life Insurance Company as of December 31, 1995,
and the related statement of operations for the year then ended, and the
statements of changes in net assets for each of the two years in the
period then ended. These financial statements are the responsibility of
the Account's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. 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 Panorama Plus Separate
Account of C.M. Life Insurance Company as of December 31, 1995, the
results of its operations for the year then ended, and the changes in its
net assets for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 15, 1996
7
<PAGE>
C.M. LIFE INSURANCE COMPANY
--------------------------------------
BOARD OF DIRECTORS AND OFFICERS
DAVID E. SAMS, JR.
President and Director
JOHN D. LOEWENBERG
Executive Vice President and Director
J. BRINKE MARCUCCILLI
Chief Financial Officer and Director
ANNE MELISSA DOWLING
Vice President and Chief Investment Officer
MAUREEN FORD
Vice President
EMELIA BRUNO
Controller
ANN F. LOMELI
Secretary
JOHN A. HUBBARD, FSA
Actuary
SCOTT C. PETERS
Treasurer
This report is prepared for the general information of contract owners and is
not an offer of contracts of Panorama Plus Separate Account. It should not be
used in connection with any offer except in conjunction with the Prospectus
which contains all pertinent information including the applicable sales charges.
<PAGE>
CONNECTICUT MUTUAL FINANCIAL SERVICES
SERIES FUND I, INC.
A N N U A L
R E P O R T
DECEMBER 31, 1995
Money Market Portfolio
Government Securities Portfolio
Income Portfolio
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
<PAGE>
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
<S> <C>
The Panorama Plus Money Market Portfolio posted The Panorama Plus Government Securities
a 4.36 percent 12-month total return for the Portfolio finished 1995 with a 17.01 percent
period ending December 31, 1995, as reported by return, compared with a 15.83 percent category
Morningstar. The Portfolio performed better average, according to Morningstar.
than the category average of 4.34 percent. Over The excellent performance was a result of our
the three years ended December 31, 1995, the strategy of de-emphasizing mortgage-backed
Fund returned 8.76 percent compared with the securities, which tend to underperform in pe-
category average of 8.86 percent. riods of falling interest rates. We also main-
tained maturities a little longer than the
Returns on the money market funds are modest average in response to the interest rate
because of low interest rates and stagnant environment.
inflation. Money market returns are expected to We will continue to pursue these strategies as
remain low as long as interest rates stay down. we look for interest rates to remain low and
the bond market to stay healthy.
ANNUAL TOTAL RETURNS RELATE TO SERIES FUND I Since its inception three years ago, the Pano-
ONLY AND DO NOT TAKE INTO CONSIDERATION THE rama Plus Government Securities Portfolio has
EFFECT OF PANORAMA PLUS CONTRACT LEVEL CHARGES. returned 20.69 percent, compared with a three
STANDARD RETURNS TAKE INTO CONSIDERATION ALL year category average return of 19.54 percent
ONGOING MORTALITY AND EXPENSE CHARGES, ANNUAL as reported by Morningstar.
CONTRACT CHARGES AND ASSUME THE CONTRACT IS
SURRENDERED AT THE END OF THE CALCULATION FISCAL GOVERNMENT
PERIOD AND INCURS A 5% SURRENDER CHARGE. PERIOD SECURITIES CPI ML
------ ----------- -------- --------
PERFORMANCE RATINGS BY MORNINGSTAR, INC., A 5/13/92 $10,000 $10,000 $10,000
LEADING INDEPENDENT INVESTMENT ANALYSIS 12/31/92 10,661 10,179 10,649
COMPANY. FUNDS IN EXISTENCE LESS THAN THREE 12/31/93 11,832 10,457 11,780
YEARS WERE EXCLUDED. ONLY FUNDS WITH THREE 12/31/94 11,254 10,729 11,400
SUB-ACCOUNTS WERE INCLUDED IN THIS ANALYSIS. 12/31/95 13,382 11,008 13,487
THESE RANKINGS ARE BASED ON THE FUND'S TOTAL
RETURNS, WHICH ARE BASED ON THE PERCENTAGE OF Comparative performance of $10,000 invested in
CHANGE IN THE ACCUMULATION UNIT VALUES AND DO the Series Fund I Government Securities
NOT TAKE INTO CONSIDERATION THE EFFECT OF ANY Portfolio, the Merrill Lynch Government Master
SALES CHARGES, SURRENDER CHARGES OR ANNUAL Index, and the Consumer Price Index. The
CONTRACT FEES ASSOCIATED WITH THE CONTRACT. HAD Merrill Lynch Government Master Index
THESE CHARGES AND FEES BEEN INCLUDED IN THE represents a broad index of unmanaged
CALCULATION OF PERFORMANCE, THESE RANKINGS MAY government securities not adjusted for
HAVE BEEN LESS FAVORABLE. expenses. If portfolio operating expenses had
been applied to the index, its ending value
would have been lower. The Consumer Price Index
FISCAL MONEY is an unmanaged index and represents price
PERIOD MARKET CPI changes in a broad market basket of consumer
- ------ ----------- ----------- goods and is indicative of the rate of
12/31/85 $10,000 $10,000 inflation.
12/31/86 10,640 10,119
12/31/87 11,313 10,566 Past performance is not indicative of future
12/31/88 12,130 11,032 performance.
12/31/89 13,216 11,543
12/31/90 14,270 12,265
12/31/91 15,087 12,630
12/31/92 15,592 13,005
12/31/93 16,010 13,361
12/31/94 16,616 13,708
12/31/95 17,538 14,064
Comparative performance of $10,000 invested in
the Series Fund Money Market Portfolio and the
Consumer Price Index. The Consumer Price Index
is an unmanaged index and represents price
changes in a broad market basket of consumer
goods and is indicative of the rate of
inflation.
AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS
NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT AND THERE IS NO ASSURANCE THAT THE
MONEY MARKET INSTRUMENTS WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE.
Past performance is not indicative of future
performance.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INCOME TOTAL RETURN
PORTFOLIO PORTFOLIO
<S> <C>
The Panorama Plus Income Portfolio outper- The Panorama Plus Total Return Portfolio earned
formed the competition in 1995 -- posting a a healthy 23.13 percent for investors in 1995,
17.20 percent return, compared with the compared with a return of 22.17 percent for the
Morningstar category average of 16.44 percent. category average as reported by Morningstar.
This general bond fund was well-positioned for The Panorama Plus Total Return Portfolio
the declining interest rate environment that maintains a balance of stocks, bonds and cash
took hold during 1995. Our maturities were a and the weighting of each depends on market
little longer than the average general bond conditions. Our conservative approach and
fund and we continued to invest con- disciplined asset allocation kept this balance
servatively, looking for value in corporate, on target in 1995 and contributed to the fund's
mortgage and Treasury securities. impressive results.
With interest rates expected to remain low in Since its inception three years ago, the Pano-
1996, we look for the Panorama Plus Income rama Total Return Portfolio has posted a re-
Portfolio to continue to provide attractive turn of 37.19 percent, compared with the cate-
returns. gory average of 29.61 percent.
Over the past three years ended December 31,
1995, the Income Portfolio has returned 23.19 FISCAL TOTAL
percent to investors, compared with the cate- PERIOD RETURN CPI ML S&P
gory average of 21.85 percent, according to ------ ------ ------- -------- -------
Morningstar. 12/31/85 $10,000 $10,000 $10,000 $10,000
12/31/86 11,258 10,119 11,563 11,847
FISCAL 12/31/87 11,738 10,566 11,806 12,467
PERIOD INCOME CPI ML 12/31/88 13,104 11,032 12,717 14,562
------ -------- ------- ------- 12/31/89 16,115 11,543 14,514 19,148
12/31/85 $10,000 $10,000 $10,000 12/31/90 16,196 12,265 15,747 18,541
12/31/86 11,379 10,119 11,563 12/31/91 20,858 12,630 18,249 24,205
12/31/87 11,579 10,566 11,806 12/31/92 22,988 13,005 19,651 26,062
12/31/88 12,492 11,032 12,717 12/31/93 26,731 13,361 21,824 28,642
12/31/89 14,229 11,543 14,514 12/31/94 26,204 13,708 21,111 29,017
12/31/90 15,070 12,265 15,747 12/31/95 32,669 14,064 25,135 39,869
12/31/91 17,830 12,630 18,249
12/31/92 19,101 13,005 19,651 Comparative performance of $10,000 invested in
12/31/93 21,458 13,361 21,824 the Series Fund I Total Return Portfolio, the
12/31/94 20,582 13,708 21,111 Merrill Lynch Government Corporate Master
12/31/95 24,325 14,064 25,135 Index, the S&P 500 and the Consumer Price
Index. The Merrill Lynch Government Corporate
Comparative performance of $10,000 invested in Master Index represents an unmanaged group of
the Series Fund I Income Portfolio, the Merrill bonds not adjusted for operating expenses. The
Lynch Government Corporate Master Index and the S&P 500 represents a broad index of unmanaged
Consumer Price Index. The Merrill Lynch securities not adjusted for expenses. If
Government Corporate Master Index represents an portfolio operating expenses had been applied
unmanaged group of bonds which are not adjusted to these indices, their ending values would
for operating expenses. If portfolio operating have been lower. The Consumer Price Index is an
expenses had been applied to the index, its unmanaged index and represents price changes in
ending value would have been lower. The a broad market basket of consumer goods and is
Consumer Price Index is an unmanaged index and indicative of the rate of inflation.
represents price changes in a broad market
basket of consumer goods and is indicative of Past performance is not indicative of future
the rate of inflation. performance.
Past performance is not indicative of future
performance.
For each Portfolio, the investment return and
principal value of an investment will fluctuate
so that an investor's shares, when redeemed,
may be woth more or less than the original
investment.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO INTERNATIONAL
EQUITY
PORTFOLIO1
<S> <C>
The Panorama Plus Growth Portfolio finished the The Panorama Plus International Equity Port-
year ended December 31, 1995, with a total folio, managed by Scudder, Stevens and Clark,
return of 36.02 percent (standard return was returned 9.34 percent for the year ended De-
14.36%), compared with 31.1 percent for the cember 31, 1995, compared with a 10.38 percent
category average as reported by Morningstar. return for the Morningstar category average.
The Panorama Plus Growth Portfolio benefited In the final quarter of 1995, world markets
from our strict adherence to an investment reflected shifts in global economic trends and
discipline that stresses value and focuses on developments in the European Monetary Union.
stocks with low price-earnings ratios and posi- After an uncertain start to the year, the
tive earnings surprises. Because of this disci- Japanese market staged a recovery on the back
plined approach, the Fund didn't flock to the of lower interest rates and signs of a more
popular technology stocks in 1995 -- and didn't determined effort by the government to address
get hurt by their precipitous drop in the the underlying problems of the economy.
fourth quarter.
In 1996, we will continue to pursue our strate- Overall, most world markets had positive re-
gy of finding stocks that are undervalued but turns for the quarter, despite pockets of
are starting to show earnings momentum. As a uncertainty.
result, we expect the Panorama Plus Growth
Portfolio to continue to produce healthy re- As part of our portfolio strategy, we remain
turns for investors over time. modestly overweight on our European holdings,
believing that these markets remain at-
FISCAL tractively valued compared with their peers. We
PERIOD GROWTH CPI S&P have increased our Japanese weighting since
- ------ ------ ------- -------- Japan is one of the few markets set to benefit
12/31/85 $10,000 $10,000 $10,000 from the early stages of economic recovery and
12/31/86 11,158 10,119 11,847 upward revisions in corporate earnings. Our
12/31/87 11,186 10,566 12,467 approach to emerging markets remains selective.
12/31/88 12,803 11,032 14,562
12/31/89 17,388 11,543 19,148 FISCAL INTERNATIONAL
12/31/90 16,015 12,265 18,541 PERIOD EQUITY CPI MSCI
12/31/91 22,025 12,630 24,205 ------ ------------- ------- --------
12/31/92 24,747 13,005 26,062 5/13/92 $10,000 $10,000 $10,000
12/31/93 29,998 13,361 28,642 12/31/92 9,568 10,179 9,319
12/31/94 29,845 13,708 29,017 12/31/93 11,654 10,457 12,357
12/31/95 41,205 14,064 39,869 12/31/94 11,822 10,729 13,301
12/31/95 13,039 11,008 14,839
Comparative performance of $10,000 invested in
the Series Fund I Growth Portfolio, the S&P 500 Comparative performance of $10,000 invested in
and the Consumer Price Index. The S&P 500 the Series Fund I International Equity
represents a broad index of unmanaged portfolio, the Morgan Stanley Capital
securities not adjusted for expenses. If International Non-U.S. Equity Index, and the
portfolio operating expenses had been applied Consumer Price Index. The Morgan Stanley
to the index, its ending value would have been Capital International Index represents a broad
lower. The Consumer Price Index is an unmanaged index of unmanaged securities not adjusted for
index and represents price changes in a broad expenses. If portfolio expenses had been
market basket of consumer goods and is applied to the index, its ending value would
indicative of the rate of inflation. have been lower. The Consumer Price Index is an
unmanaged index and represents price changes in
Past performance is not indicative of future a broad market basket of consumer goods and is
performance. indicative of the rate of inflation.
1There are special risks associated with
international investing such as political
changes, currency fluctuation, foreign taxa-
tion, differences in auditing and other
financial standards.
</TABLE>
<PAGE>
The audited annual financial statements of Connecticut Mutual Financial
Services Series Fund I, Inc. are incorporated by reference to Form N-30D
(Accession Number 0000912057-96-006041) filed with the SEC on April 5, 1996.
