<PAGE>
As filed with the Securities and Exchange Commission on January 29, 1996
Registration No. 33-45122
811-6530
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 5
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 4
PANORAMA PLUS SEPARATE ACCOUNT
(Exact Name of Registrant)
C.M. LIFE INSURANCE COMPANY
(Name of Depositor)
140 GARDEN STREET, HARTFORD, CT 06154
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (203) 987-6500
Michael A. Chong, Assistant General Counsel
C.M. Life Insurance Company
140 Garden Street
Hartford, CT 06154
(Name and Address of Agent for Service)
Approximate date of proposed public offering:
Continuous
It is proposed that this filing will become effective
/X/ immediately upon filing pursuant to paragraph (b) of Rule 485
<PAGE>
An indefinite amount of securities has been registered under the Securities
Act of 1933 pursuant to Rule 24f-2 under the Investment Company Act of 1940.
The Rule 24f-2 Notice for the fiscal year ending December 31, 1994 was filed
on February 21, 1995.
CROSS REFERENCE SHEET
Pursuant to Rule 495
Showing Location in Part A (Prospectus),
Part B (Statement of Additional Information) and Part C
OF REGISTRATION STATEMENT INFORMATION REQUIRED BY FORM N-4
PART A
<TABLE>
<CAPTION>
<S> <C>
ITEM OF FORM N-4 PROSPECTUS CAPTION
1. Cover Page Cover Page
2. Definitions Definitions
3. Synopsis Summary
4. Condensed Financial Information Not Applicable
5. General Description of Registrant, Depositor
and Portfolio Companies
(a) Depositor C.M. Life Insurance
Company; Additional
Information about C.M. Life
(b) Registrant Panorama Plus Investment
Accounts
(c) Portfolio Company Connecticut Mutual
Financial Services
Series Fund I, Inc.
(d) Fund Prospectus Connecticut Mutual
Financial Services
Series Fund I, Inc.
(e) Voting Rights Voting Rights
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
6. Deductions and Expenses
(a) General Charges and Deductions
(b) Sales Load % Surrender Charge
(c) Special Purchase Plan Not Applicable
(d) Commissions Distributor of the
Contracts
(e) Expenses - Registrant Other Expenses including
Investment Advisory Fees
(f) Fund Expenses Not Applicable
(g) Organizational Expenses Not Applicable
7. General Description of Variable
Annuity Contracts
(a) Persons with Rights The Panorama Plus Annuity
Contract; Distributions
Under The Contract;
Voting Rights
(b) (i) Allocation of Premium
Payments Purchase Payments
(ii) Transfers Transfers
(iii) Exchanges Not Applicable
(c) Changes Addition, Deletion or
Substitution of Investments
8. Annuity Period Annuity Options
9. Death Benefit Death Benefit
10. Purchase and Contract Value
(a) Purchases Contract Application and
Issuance of Contracts;
Purchase Payments
(b) Valuation Contract Balance
(c) Daily Calculation The Separate Account
Balance
(d) Underwriter Distributor of the
Contracts
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
11. Redemptions
(a) By Contract Owners Surrenders
By Annuitant Not Applicable
(b) Texas ORP Restrictions Under the
Retirement Program Texas ORP
Retirement Program
(c) Check Delay Surrenders
(d) Lapse Lapse
(e) Free Look Summary; Right to
Examine the Contract
12. Taxes Certain Federal Income
Tax Consequences
13. Legal Proceedings Legal Proceedings
14. Table of Contents for Table of Contents for
the Statement of the Statement of
Additional Information Additional Information
PART B
ITEM OF FORM N-4 INFORMATION CAPTION
15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information (Prospectus) C.M. Life
and History Insurance Company,
History and Additional
Information about C.M. Life
18. Services
(a) Fees and Expenses
of Registrant Not Applicable
(b) Management Contracts Not Applicable
(c) Custodian Records, Reports and
Services
Independent Auditors Financial Statements
(d) Assets of Registrant Not Applicable
(e) Affiliated Person Not Applicable
(f) Principal Underwriter Not Applicable
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
19. Purchase of Securities (Prospectus) The Panorama
Being Offered Plus Annuity Contract
Offering Sales Load (Prospectus) Surrender
Charge
20. Underwriters (Prospectus) Distributor
of the Contracts
21. Calculation of Performance Data (Prospectus) Performance
Data and Calculations
22. Annuity Payments (Prospectus) Annuity Income
Payments; Annuity Options
23. Financial Statements Financial Statements
PART C -- OTHER INFORMATION
ITEM OF FORM N-4 PART C CAPTION
24. Financial Statements Financial Statements
and Exhibits and Exhibits
(a) Financial Statements Financial Statements
(b) Exhibits Exhibits
25. Directors and Officers of Directors and Officers
of the Depositor of the Depositor
26. Persons Controlled By Persons Controlled By
or Under Common or Under Common
Control with the Control with the
Depositor or Registrant Depositor or Registrant
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
27. Number of Contract Owners Number of Contract Owners
28. Indemnification Indemnification
29. Principal Underwriters Principal Underwriters
30. Location of Accounts and Records Location of Accounts and Records
31. Management Services Management Services
32. Undertakings Undertakings
Signatures Signature Page
</TABLE>
<PAGE>
PART A
The Panorama Plus Annuity Issued by C.M. Life Insurance Company (Prospectus)*
Statement of Additional Information Table of Contents*
*INFORMATION IN RESPONSE TO ITEMS IN PART A IS INCORPORATED BY REFERENCE IN
ITS ENTIRETY TO PART A OF POST-EFFECTIVE AMENDMENT NO. 4 TO FORM N-4 FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 28, 1995, FILE NUMBER
33-45122.
<PAGE>
PART B
Statement of Additional Information
More Information About the Contract*
Determination of Sub-Account Accumulation Unit Values*
Annuity Period Transfer Formulas*
Records, Reports and Services*
Performance Data and Calculations*
Money Market Sub-Account Yield*
Sub-Account Total Return Calculations: Standardized*
Other Performance Data: Non-Standardized*
Federal Tax Matters*
Other Information*
* INFORMATION IN RESPONSE TO ALL ITEMS IN PART B, EXCEPT ITEM 23 - FINANCIAL
STATEMENTS, IS INCORPORATED BY REFERENCE IN ITS ENTIRETY TO PART B OF
POST-EFFECTIVE AMENDMENT NO. 4 TO FORM N-4 FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION ON APRIL 28, 1995, FILE NUMBER 33-45122.
<PAGE>
FINANCIAL STATEMENTS
The financial statements for C.M. Life and the related report of
independent public accountants are included herein. The Statement of
Additional Information contains financial statements for the Separate
Account. Arthur Andersen LLP, Hartford, Connecticut 06103, serves as
independent auditors for the Separate Account.
The financial statements for the period ended December 31, 1994
included herein for C.M. Life have been audited by Arthur Andersen LLP, as
indicated in their reports with respect thereto, and are included herein in
reliance upon the authority of said firm as experts in accounting and auditing
in giving said reports.
<PAGE>
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
C.M. Life Insurance Company
Balance Sheets
As of December 31, 1994 and 1993
C.M. Life Insurance Company
Statements of Operations
For the Years Ended December 31, 1994, 1993 and 1992
C.M. Life Insurance Company
Statements of Stockholder's Equity
For the Years Ended December 31, 1994, 1993 and 1992
C.M. Life Insurance Company
Statements of Cash Flows
For the Years Ended December 31, 1994, 1993 and 1992
C.M. Life Insurance Company
Notes to Financial Statements
December 31, 1994, 1993 and 1992
C.M. Life Insurance Company
Summary of Investments - Other than Investments in Related Parties
As of December 31, 1994 (Schedule I)
C.M. Life Insurance Company
Reinsurance
For the Years Ended December 31, 1994, 1993 and 1992 (Schedule VI)
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To C.M. Life Insurance Company:
We have audited the accompanying balance sheets of C.M. Life Insurance
Company (a Connecticut corporation and a wholly-owned subsidiary of
Connecticut Mutual Life Insurance Company) as of December 31, 1994 and 1993,
and the related statements of operations, stockholder's equity and cash flows
for each of the three years in the period ended December 31, 1994. These
financial statements and the schedules referred to below are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements and schedules 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 C.M. Life Insurance Company
as of December 31, 1994 and 1993, and the results of its operations and
its cash flows for each of the three years in the period ended December 31,
1994 in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. Schedules I and VI are presented
for purposes of complying with the Securities and Exchange Commission's rules
and are not part of the basic financial statements. These schedules have been
subjected to the auditing procedures applied in the audit of the basic financial
statements, and, in our opinion, fairly state in all material respects the
financial data required to be set forth therein in relation to the basic
financial statements taken as a whole.
Arthur Andersen LLP
Hartford, Connecticut
February 15, 1995
<PAGE>
C.M. LIFE INSURANCE COMPANY
BALANCE SHEETS
AS OF DECEMBER 31, 1994 AND 1993
($ IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
1994 1993
---- ----
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments:
Fixed maturities at cost (fair value;
$684,213 in 1994 and $647,980 in 1993) $717,291 $627,110
Equity securities at cost (fair value;
$2,065 in 1994 and $2,095 in 1993) 1,815 1,815
Mortgage loans on real estate at net
realizable value 42,038 65,788
Real estate at cost 1,897 5,362
Policy loans at outstanding balance 109,720 98,215
Cash and cash equivalents 3,025 5,589
------- -------
Total investments 875,786 803,879
------- -------
Accrued investment income 14,023 13,215
Accounts receivable 5,330 4,317
Amounts due from reinsurers 1,162 1,229
Other assets 2,318 1,709
Assets of Separate Account 309,672 145,661
---------- ---------
TOTAL ASSETS $1,208,291 $970,010
---------- --------
LIABILITIES AND STOCKHOLDER'S EQUITY:
Liabilities:
Future policy benefits $751,808 $698,779
Policy claims and benefits currently
payable 1,772 1,758
Indebtedness to related parties 6,965 11,485
Federal income tax payable 2,446 441
Asset valuation reserve 6,640 6,534
Other liabilities 7,906 8,582
Other deposits 31,690 15,992
Transfers due from Separate Account (14,445) (7,120)
Liabilities of Separate Account 309,672 145,661
--------- -------
TOTAL LIABILITIES 1,104,454 882,112
--------- -------
STOCKHOLDER'S EQUITY:
Common stock, $200 par value - 50,000
shares authorized, 12,500 shares
issued and outstanding 2,500 2,500
Additional paid-in capital 43,759 43,759
Retained earnings 57,578 41,639
---------- --------
TOTAL STOCKHOLDER'S EQUITY 103,837 87,898
---------- --------
TOTAL LIABILITIES AND $1,208,291 $970,010
STOCKHOLDER'S EQUITY ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
REVENUES:
Premiums and annuity considerations $111,238 $108,097 $117,785
Less: reinsurance ceded (54,032) (56,905) (60,830)
-------- -------- --------
Net premiums and annuity considerations 57,206 51,192 56,955
Net investment income 59,887 57,460 56,666
Net realized capital gains (losses) on
investments (2,533) 459 (380)
Other income 984 363 20
------- ------- -------
TOTAL REVENUES 115,544 109,474 113,261
BENEFITS, LOSSES AND EXPENSES:
Benefits, claims and settlement expenses 101,243 98,700 111,843
Acquisition and insurance expenses 24,630 25,436 31,736
Other expenses 4,199 3,004 3,633
Less: reinsurance benefits and expenses
ceded
(45,804) (50,001) (54,537)
-------- -------- --------
TOTAL BENEFITS, LOSSES AND EXPENSES 84,268 77,139 92,675
------ ------ ------
INCOME BEFORE FEDERAL INCOME TAX
EXPENSE 31,276 32,335 20,586
FEDERAL INCOME TAX EXPENSE 13,488 11,241 9,055
------ ------ -----
NET INCOME $17,788 $21,094 $11,531
======= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Common Stock $ 2,500 $ 2,500 $ 2,500
Additional Paid-in Capital 43,759 43,759 43,759
Retained Earnings
Balance, beginning of year 41,639 21,163 10,155
Net income 17,788 21,094 11,531
Change in asset valuation reserve (106) (1,313) 877
Change in nonadmitted assets (1,761) 675 (1,004)
Net unrealized capital gain (loss) 18 84 (1,514)
Other - (64) 1,118
------ ------ ------
Balance, end of year 57,578 41,639 21,163
------ ------ ------
TOTAL STOCKHOLDER'S EQUITY $103,837 $87,898 $67,422
======== ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
CASH PROVIDED:
Premiums and annuity considerations, net
of reinsurance $56,346 $49,530 $57,180
Other deposits 193,970 129,030 25,149
Net investment income 60,886 58,728 56,147
Commission and expense allowance and
reserve adjustment on reinsurance ceded 22,484 29,576 35,794
Other - 2,106 4,983
------- ------- -------
333,686 268,970 179,253
------- ------- -------
Benefits and interest to policyholders
and beneficiaries, net of reinsurance (43,808) (28,973) (38,391)
Acquisition and insurance expenses, net
of reinsurance (25,934) (28,619) (35,926)
Transfers to Separate Account (168,913) (114,917) (21,605)
Federal income taxes paid (10,076) (11,579) (12,290)
Other payments, net (15,132) (17,903) (5,284)
-------- -------- -------
(263,863) (201,991) (113,496)
--------- --------- ---------
Net cash provided by operations 69,823 66,979 65,757
Proceeds from the disposition of fixed
maturities and mortgage loans on real
estate 249,038 348,263 199,831
Other cash provided - 855 5,725
------- ------- -------
Total cash provided 318,861 416,097 271,313
------- ------- -------
CASH APPLIED:
Purchases of fixed maturities 320,272 408,017 274,590
Purchase of equity securities - 296 2,330
Other applications 1,153 3,974 1,601
----- ----- -----
Total cash applied 321,425 412,287 278,521
------- ------- -------
Net increase (decrease) in cash and cash
equivalents (2,564) 3,810 (7,208)
CASH AND CASH EQUIVALENTS:
Beginning of year 5,589 1,779 8,987
----- ----- -----
End of year $3,025 $5,589 $1,779
====== ====== ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
C.M. LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994, 1993 AND 1992
($ IN THOUSANDS)
1. ORGANIZATION:
C.M. Life Insurance Company (C.M. Life) is a wholly owned stock life insurance
subsidiary of Connecticut Mutual Life Insurance Company (Connecticut Mutual).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
C.M. Life's financial statements have been prepared in conformity with
accounting practices and procedures of the National Association of Insurance
Commissioners (NAIC) as prescribed or permitted by the Insurance Department of
the State of Connecticut, which are considered to be generally accepted
accounting principles for wholly owned stock life insurance subsidiaries of
mutual life insurance companies. (see Note 2.h.).
The principal accounting practices currently followed by C.M. Life are as
follows:
a. Assets - Assets are stated at amounts reported to state regulatory
authorities. Certain assets, such as prepaid agent commissions and
other prepaid expenses, are excluded from the balance sheet and amounted
to $2,684 and $923 as of December 31, 1994 and 1993.
b. Investments - Investments are valued in accordance with procedures
prescribed by the NAIC. Fixed maturities eligible for amortization are
reported at amortized cost. Equity securities of preferred stock are
reported at cost. Mortgage loans on real estate are reported at the
unpaid principal balance unless delinquent, at which time they are
reported at the lower of the unpaid balance or fair value. Investments
in real estate which have been identified for sale within the next
twelve months are reported at the lower of cost, less accumulated
depreciation of $187 and $124 at December 31, 1994 and 1993,
respectively, or market value. Investments for real estate which have
been identified as held for investment are reported at the lower of
cost, less accumulated depreciation of $0 and $466 at December 31, 1994
and 1993, respectively, or market value. The Company calculates
depreciation for its real estate investments using principally the
straight line method. Policy loans are reported at the aggregate amount
of the unpaid balances. Short-term investments are reported at
amortized cost, which approximates fair value.
The Company maintains an Interest Maintenance Reserve (IMR) for all
fixed income investments and establishes a liability/asset to defer all
interest rate related realized capital gains and losses, net of taxes,
as they occur. The deferral is subsequently amortized to net investment
income over the period remaining to maturity of the assets sold. All
other realized gains and losses are reported in the Statements of
Operations upon sale. Unrealized capital gains and losses are reported
as additions to or reductions from equity.
The Asset Valuation Reserve (AVR), prescribed by the NAIC, provides for
possible decline in the value of bonds, stocks, mortgage loans, real
estate and other invested assets. This reserve contains different
components, each designed to address specific asset risks. Changes in
the AVR are charged or credited directly to equity. The AVR increased
by $106 and $1,313 in 1994 and 1993, respectively.
Investments which exceeded 10% of total stockholder's equity are as
follows:
<TABLE>
<CAPTION>
<S> 1994 1993
---- ----
Mortgage loans on real estate: <C> <C>
J.L. Associates LTD PTR None $15,200
</TABLE>
<PAGE>
The Company uses derivative instruments (as defined in FAS No. 119)
which include options and futures, to hedge equity exposure and to
hedge reinvestment of proceeds from major anticipated transactions.
During 1994 interest rate futures were acquired to hedge the
reinvestment of anticipated proceeds from a bulk mortgage sale. The
actual gain of $95 was amortized over the expected term of the assets
acquired with the mortgage sale proceeds. During 1993 no futures and
options were utilized to hedge equity exposures.
There were no fixed maturities greater than 10% of stockholder's equity
as of December 31, 1994 and 1993.
C.M. Life has loans overdue more than 12 months as follows:
1994 1993
---- ----
Defaults on mortgages: (non-income
producing for 12 months) $2,774 None
c. Disclosure of the Fair Value of Financial Instruments - Fair value is
defined as "the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or
liquidation sale." (Fair value estimates, methods and significant
assumptions are disclosed in the relevant footnotes.)
d. Reserves for Payment of Future Benefits: Reserves for payment of future
benefits on life insurance, developed by accepted actuarial methods, are
established and maintained primarily on the Commissioners' Reserve
Valuation Method utilizing the 1980 Commissioners' Standard Ordinary
Mortality Table with interest rates of 4%-4 1/2%. Reserves for single
premium deferred annuities are calculated based on the Commissioners'
Annuity Reserve Valuation Method utilizing the change in fund method and
assuming interest on changes in funds of 7.0%, 7.5% and 8.25% in 1994,
1993, and 1992 respectively. Additional reserves are maintained for
contracts where the cash surrender value exceeds the actuarially
determined reserve.
e. Separate Accounts: Separate accounts include the assets and
liabilities of certain annuity contracts that must be segregated from
C.M. Life's general assets under the terms of the contracts. The assets
consist primarily of marketable securities reported at market value.
Reserves for these annuity contracts have been established using assumed
interest rates and valuation methods that will provide reserves at least
as great as those required by law and contract provisions. Transfers
due from Separate Account, a contra-liability, represents Separate
Account liabilities in excess of Separate Account reserves.
f. Premiums and Insurance Operating Expenses: Premiums are reported as
income when due. Commissions and other costs relating to the
solicitation, underwriting and issuance of new contracts are reported as
acquisition and insurance expenses in the year incurred.
g. Cash Equivalents: For purposes of the Statements of Cash Flows, C.M.
Life considers all highly liquid short-term investments with a maturity
of three months or less from the date of purchase to be cash
equivalents. The carrying amounts reported approximate those assets'
fair value.
h. New Accounting Pronouncements: The Financial Accounting Standards Board
(FASB) has issued an interpretation declaring that financial statements
of mutual life insurance companies, and their wholly owned subsidiaries,
which are prepared on the basis of statutory accounting principles, will
no longer be considered to be in conformity with GAAP. This
interpretation applies to financial statements issued for fiscal years
beginning after December 15, 1995. Certain accounting principles for
mutual life insurance companies, which will be required to be in
compliance with GAAP, were also issued by the FASB and the American
Institute of Certified Public Accountants in January 1995. The
financial statement impact of adopting these accounting principles has
not been determined by the Company. The effect of initially adopting
the FASB interpretation shall be reported retroactively through
restatement of all previously issued financial statements presented for
comparative purposes for fiscal years beginning after December 15, 1992.
<PAGE>
Financial Accounting Standard (FAS) No. 120, Accounting and Reporting by
Mutual Life Insurance Enterprises and by Insurance Enterprises for
Certain Long-Duration Participating Contracts, which was issued in
January 1995 extends the requirements of FASB statements Nos. 60
(Accounting and Reporting by Insurance Enterprises), 97 (Accounting and
Reporting by Insurance Enterprises for Certain Long-Duration Contracts
and For Realized Gains and Losses From the Sale of Investments) and 113
(Accounting and Reporting for Reinsurance of Short-Duration and Long-
Duration Contracts) to C.M. Life.
The impact of adopting these accounting standards on C.M. Life's
financial position or results of operations is not known or reasonably
estimable at this time.
i. Reclassifications: The 1993 and 1992 financial statements and Notes to
Financial Statements reflect certain reclassifications to conform with
the 1994 presentation.
3. FEDERAL INCOME TAXES:
C.M. Life is included in Connecticut Mutual's consolidated Federal income tax
return and, in accordance with a written tax-sharing agreement, makes a
provision for payment to Connecticut Mutual based on its income included in
Connecticut Mutual's consolidated taxable income. This provision is based on
income which is currently taxable.
4. STOCKHOLDER'S EQUITY:
The Board of Directors of Connecticut Mutual has authorized the contribution
of funds to C.M. Life sufficient to meet the capital requirements of all
states in which C.M. Life is licensed to do business. Substantially all of
the statutory stockholder's equity is subject to dividend restrictions
relating to various state regulations which limit the payment of dividends
without prior approval.
5. REINSURANCE:
C.M. Life reinsures (cedes) a portion of its life insurance business to
Connecticut Mutual and other insurers, in order to reduce insurance risk.
C.M. life's retention limit per individual insured is $4 million; the portion
of the risk exceeding the retention limit is reinsured with other insurers.
The reinsurance contract with Connecticut Mutual is a modified coinsurance
quota-share treaty. Under the treaty C.M. Life cedes 50% of the premiums on
universal life policies issued in 1985 and 75% of the premiums with issue
dates on or after January 1, 1986. In return Connecticut Mutual pays C.M.
Life a stipulated expense allowance, death and surrender benefits, and a
modified coinsurance adjustment. Reserves for payment of future benefits for
the ceded policies are retained by C.M. Life.
C.M. Life also has a stop-loss agreement with Connecticut Mutual under which
C.M. Life cedes claims which, in aggregate, exceed $18,348 in 1994, $16,431 in
1993 and $16,443 in 1992. In 1994, 1993, and 1992, the limit was not
exceeded. The agreement was amended and renewed in 1994 for a duration of
three years. The amended maximum coverage is $25,000. C.M. Life paid
approximately $435, $446 and $478 in premiums under the agreement in 1994,
1993 and 1992, respectively.
C.M. Life is contingently liable with respect to ceded reinsurance in the
event any reinsurer is unable to fulfill its contractual obligations.
<PAGE>
6. INVESTMENTS:
FIXED MATURITIES:
The carrying value and estimated fair value of investments in fixed maturities
as of December 31, 1994 and 1993 are as follows:
<TABLE>
<CAPTION>
1994 Gross Gross Estimated
Carrying Unrealized Unrealized Fair
Value Gains Losses Value
----- ----- ------ -----
<S> <C> <C> <C> <C>
U.S. Government $62,501 $ - $ 1,874 $60,627
Special Revenue and
Special Assessment
Obligations and all
Non-guaranteed Obli-
gations of Government
Agencies, Authorities,
and Subdivisions 4,373 - 375 3,998
Foreign Government,
Province & Municipal 16,175 117 904 15,388
Public Utility 38,773 227 1,605 37,395
Mortgage Backed
Obligations 167,641 533 12,184 155,990
Industrial and
Miscellaneous 427,828 967 17,980 410,815
--------- ----------------------- -----------
Total Fixed Maturities $717,291 $1,844 $34,922 $684,213
========= ======================= ==========
1993 Gross Gross Estimated
Carrying Unrealized Unrealized Fair
Value Gains Losses Value
----- ----- ------ -----
U.S. Government $ 24,015 $ 906 $ - $ 24,921
Special Revenue and
Special Assessment
Obligations and all
Non-guaranteed Obli-
gations of Government
Agencies, Authorities,
and Subdivisions 5,000 - - 5,000
Foreign Government,
Province & Municipal 23,511 620 529 23,602
Public Utility 34,162 1,577 99 35,640
Mortgage Backed
Obligations 135,309 3,505 706 138,107
Industrial and
Miscellaneous 405,113 16,477 881 420,710
--------- ----------------------- -----------
Total Fixed Maturities $627,110 $23,085 $2,215 $647,980
========= ======================= ==========
</TABLE>
<PAGE>
The carrying value and estimated fair value of C.M. Life's fixed maturities at
December 31, 1994, by contractual maturity, are shown below. Expected
maturities may differ from contractual maturities because borrowers may have
the right to prepay obligations with or without prepayment penalties.
<TABLE>
<CAPTION>
Estimated
Carrying Fair
Value Value
----- -----
<S> <C> <C>
Due in one year or less $ 26,429 $ 26,509
Due after one year through five years 339,561 328,984
Due after five years through ten years 176,968 166,335
Due after ten years 6,692 6,395
Mortgage-backed securities 167,641 155,990
----------- ---------
Total $717,291 $684,213
=========== =========
</TABLE>
Proceeds from sales of fixed maturities were $224,884, $334,801 and $182,572
for 1994, 1993 and 1992, respectively. Gross gains of $1,358, $5,931 and
$1,444 and gross losses of $4,439, $1,016 and $3,650 were realized on those
sales for 1994, 1993 and 1992, respectively.
The estimated fair value for the public bonds is based on the quoted market
price from various external bond pricing services. Private bonds are assigned
an internal quality rating which parallels independent rating agency criteria
and is consistent with NAIC ratings. The fair value of these bonds is
estimated by discounting the expected future cash flows using a current
discount rate based on the quality rating and maturity of the specific
instruments.
EQUITY SECURITIES:
Equity securities consist solely of preferred stock which is reported at cost,
the estimated fair value of which is $2,065 and $2,095 as of December 31, 1994
and 1993, respectively. The estimated fair value for the equity securities is
based on quoted market prices from national securities exchanges and over-the-
counter markets.
MORTGAGE LOANS ON REAL ESTATE:
The following table provides a breakdown of the carrying value of mortgage
loans on real estate by geographical location:
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
United States
Northeast $22,111 $ 23,425
South Atlantic 13,090 16,615
North Central - 18,784
South Central 3,462 3,498
West 3,375 3,466
------------ ------------
Total $42,038 $ 65,788
============ ============
</TABLE>
Outstanding mortgages whose terms have been modified aggregated $24,034 and
$26,196 which represents 57.2% and 39.8% of the total portfolio as of
December 31, 1994 and 1993, respectively. Income recognized during 1994,
1993 and 1992 on these restructured loans was $1,379, $1,495 and $1,018,
respectively. Income that would have been recognized during 1994, 1993 and
1992 on these loans, if such loans had been current in accordance with their
original terms and had been outstanding throughout the year, was $2,296,
$2,568 and $1,851, respectively.
C.M. Life has loans either overdue more than three months or in the process of
foreclosure of $2,774 and $43 at December 31, 1994 and 1993, respectively.
Additionally, C.M. Life has properties which it acquired in satisfaction of
debt of $1,897 and $5,362 at December 31, 1994 and 1993, respectively.
<PAGE>
The estimated fair value for mortgages was $40,241 and $64,528 at December 31,
1994 and 1993, respectively. The value for performing mortgages is determined
by discounting the expected future cash flows using the current interest rates
at which similar loans would be made to borrowers with similar credit ratings
and remaining maturities. The non-performing mortgages are valued based on a
discounted cash flow analysis on the underlying collateral using the current
market rate for similar collateral.
7. POLICY LOANS:
Policy loans are issued with either fixed or variable interest rates,
depending upon the terms of the policies. For those loans with fixed interest
rates, the interest rates range from 5% to 8%. Since policy loans do not have
defined maturities, management believes it is not practicable to estimate the
fair value of fixed policy loans. For loans with variable interest rates, the
rates are adjusted annually based upon changes in a corporate bond index and
are stated at fair value.
The carrying value of policy loans as of December 31, 1994 and 1993 is as
follows:
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Fixed $ 1,639 $ 1,603
Variable 108,081 96,612
------------- ------------
$ 109,720 $ 98,215
============= ============
</TABLE>
8. FAIR VALUE DISCLOSURE OF OTHER FINANCIAL INSTRUMENTS:
The Company has identified certain liabilities as financial instruments that
require fair value disclosure. The following methods and assumptions were
used to estimate the fair value of each class of these instruments for which
it is practicable to estimate the value.
Since supplementary contracts may be perceived as deposit liabilities with
defined maturities, the Company has determined fair value based on the
discounted value of amounts payable at maturity of the contract. Discount
rates used to determine fair value range from 6.5% to 7.9%. All other deposit
liabilities are not considered to have defined maturities. The Company has
determined fair value for these contracts to be equal to the cash surrender
value, which is that amount which is payable to policyholders on demand.
The estimated fair values for liabilities, which the Company has identified as
investment contracts and borrowed funds, are as follows:
<TABLE>
<CAPTION>
1994 1993
---- ----
Estimated Estimated
Carrying Fair Carrying Fair
Value Value Value Value
----- ----- ----- -----
FINANCIAL LIABILITIES
<S> <C> <C> <C> <C>
Future Policy Benefits
Annuity Reserves -
Accumulation Phase $30,239 $28,868 $21,140 $22,308
Other Deposits 31,690 29,484 15,992 15,884
Other Liabilities
Funds Deposited Under
Income Settlements
Supplementary
Contracts Without
Life Contingencies 270 260 262 262
Liabilities of
Separate Account 309,672 309,672 145,661 145,661
</TABLE>
<PAGE>
9. RELATED PARTY TRANSACTIONS:
Connecticut Mutual allocates certain expenses to C.M. Life for providing
operating facilities, human resources, computer software development and
managerial services. Total expenses allocated to C.M. Life were approximately
$16,412, $18,831 and $24,590 in 1994, 1993 and 1992, respectively.
10. NET INVESTMENT INCOME:
Net Investment Income is comprised of the following:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Fixed maturities $47,658 $43,983 $42,908
Mortgage loans on real estate 4,383 5,813 6,507
Policy loans 7,925 7,448 7,785
Amortization of IMR 309 251 (239)
Other 1,449 1,844 1,383
----- ----- -----
Total investment income 61,742 59,339 58,344
Less: Applicable investment
expenses 1,837 1,879 1,678
----- ----- -----
Net investment income $59,887 $ 57,460 $ 56,666
======= ======== ========
</TABLE>
Net investment income and realized gains and losses applicable to
the Separate Account are not included in C.M. Life's net investment
income and realized gains and losses reported in the Statement of Operations.
REALIZED AND UNREALIZED GAINS AND LOSSES:
The cost of investments sold is determined by the specific identification
method. Realized gains and losses and the change in the difference between
market value and cost for fixed maturities and equity securities are
summarized as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Realized Gains and Losses:
Fixed Maturities:
Realized gains $ 1,358 $ 5,931 $ 1,444
Realized losses (4,439) (1,016) (3,650)
---------- ------------ ------------
(3,081) 4,915 (2,206)
---------- ----------- ------------
Equity Securities:
Realized gains - 4 -
Realized losses - - -
--------- ----------- -----------
- 4
--------- ----------- ------------
Real Estate:
Realized gains - - -
Realized losses (2,158) - -
--------- ----------- -----------
(2,158) - -
--------- ----------- -----------
Mortgage Loans:
Realized gains - - -
Realized losses (2,093) (13) (25)
--------- ----------- -----------
(2,093) (13) (25)
--------- ----------- -----------
(Gains)/Losses
Transferred to IMR 4,799 (4,447) 1,851
Net Realized Capital
Gains/(Losses) $ (2,533) $ 459 $ (380)
========== =========== ===========
Unrealized Gains and Losses:
Fixed Maturities:
Net unrealized gains
(losses),end of year $ (33,077) $ 20,870 $ 16,497
Net unrealized gains,
beginning of year 20,870 16,497 20,035
--------- ----------- -----------
Change in unrealized
gains or losses on
fixed maturities $ (53,947) $ 4,373 $ (3,538)
========== =========== ===========
</TABLE>
The change in unrealized gains and (losses) for equity securities were
$(30), $50 and $105 as of December 31, 1994, 1993 and 1992, respectively.
12. CONTINGENCIES:
In the normal course of its business operations, C.M. Life is involved in
litigation from time to time with claimants, beneficiaries and others.
Several lawsuits were pending at December 31, 1994. In the opinion of
management, the ultimate liability, if any, arising from this litigation is
not expected to have a material adverse effect on the financial position of
C.M. Life.
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE I
C.M. LIFE INSURANCE COMPANY
SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES
AS OF DECEMBER 31, 1994
($ IN THOUSANDS)
Cost or Fair Balance
Other Value Sheet
TYPE OF INVESTMENT Basis (see note) Amount
- ------------------ ----- ---------- ------
<S> <C> <C> <C>
Fixed Maturities:
U.S. Government $62,501 $60,627 $62,501
Special Revenue and Special
Assessment Obligations and
all Non-guaranteed Obligations
of Government Agencies
Authorities,and Subdivisions 4,373 3,998 4,373
Foreign Government, Province and
Municipal 16,175 15,388 16,175
Public Utility 38,773 37,395 38,773
Mortgage Backed Obligations 167,641 155,990 167,641
Industrial and Miscellaneous 427,828 410,815 427,828
------- ------- -------
Total Fixed Maturities 717,291 684,213 717,291
------- ------- -------
Equity Securities:
Nonredeemable Preferred Stocks 1,815 2,065 1,815
----- ----- -----
Total Equity Securities 1,815 2,065 1,815
----- ----- -----
Total Fixed Maturities and
Equity Securities
719,106 $686,278 719,106
------- ======== -------
Other Investments:
Mortgage Loans on Real Estate 47,833 40,241 42,038
Real Estate 2,084 (see note) 1,897
Policy Loans 109,720 (see note) 109,720
Short-term Investments 3,025 3,025 3,025
----- -----
Total Other Investments 162,662 156,680
------- -------
Total Investments $881,768 $875,786
======== ========
</TABLE>
Note: Fair values for equity securities and fixed maturities approximate those
quotations published by applicable stock exchanges or are received from other
reliable sources. Fair values for real estate are not readily available.
Approximately 98% of policy loans are comprised of variable interest rate
loans whose carrying value approximate fair value.
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE VI
C.M. LIFE INSURANCE COMPANY
REINSURANCE
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
($ IN THOUSANDS)
Ceded
Gross To Other Net
Amount Companies Amount
------ --------- ------
December 31, 1994
- -----------------
<S> <C> <C> <C>
Life insurance in force $15,800,300 $7,310,290 $8,490,010
=========== ========== ==========
Premiums: Life Insurance $111,238 $54,032 $57,206
======== ======= =======
December 31, 1993
- -----------------
Life insurance in force $14,521,452 $7,382,223 $7,139,229
=========== ========== ==========
Premiums: Life insurance $108,097 $56,905 $51,192
======== ======= =======
December 31, 1992
- -----------------
Life insurance in force $14,985,254 $7,372,633 $7,612,621
=========== ========== ==========
Premiums: Life Insurance $177,785 $60,830 $56,955
======== ======= =======
</TABLE>
<PAGE>
C.M. LIFE INSURANCE COMPANY
INDEX
Financial Statements:
Balance Sheets
September 30, 1995 (unaudited) and December 31, 1994
(Derived from audited financial statements)
Statements of Operations
Three Months Ended
September 30, 1995 and 1994 (unaudited)
Statements of Operations
Nine Months Ended
September 30, 1995 and 1994 (unaudited)
Statements of Stockholder's Equity
Nine Months Ended
September 30, 1995 and 1994 (unaudited)
Statements of Cash Flows
Nine Months Ended
September 30, 1995 and 1994 (unaudited)
Notes to Financial Statements (unaudited)
<PAGE>
<TABLE>
<CAPTION>
C.M. LIFE INSURANCE COMPANY
BALANCE SHEETS
($ IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(see NOTE)
September 30, 1995 December 31, 1994
(unaudited)
------------------ -----------------
<S> <C> <C>
ASSETS:
Investments:
Fixed maturities at cost $723,581 $717,291
Equity securities at cost 70,252 1,815
Mortgage loans on real estate
at net realizable value 31,980 42,038
Real estate at cost 1,853 1,897
Policy loans at outstanding
balance 120,555 109,720
Cash and cash equivalents 1,466 3,025
------------------ -----------------
Total investments 949,687 875,786
------------------ -----------------
Accrued investment income 17,097 14,023
Accounts receivable 4,111 5,330
Federal income tax receivable 1,881 -
Amounts due from reinsurers 240 1,162
Other assets 2,805 2,318
Assets of Separate Account 464,454 309,672
------------------ -----------------
TOTAL ASSETS $1,440,275 $1,208,291
================== =================
LIABILITIES AND STOCKHOLDER'S
EQUITY:
Liabilities:
Future policy benefits $802,050 $751,808
Policy claims and benefits
currently payable 755 1,772
Indebtedness to related 12,316 6,965
parties
Federal income tax payable - 2,446
Asset valuation reserve 16,011 6,640
Other liabilities 8,892 7,906
Other deposits 47,687 31,690
Transfers due from Separate
Account (20,035) (14,445)
Liabilities of Separate
Account
464,454 309,672
----------------- -----------------
Total liabilities 1,332,130 1,104,454
------------------ ----------------
STOCKHOLDER'S EQUITY:
Common stock, $200 par value -
50,000 shares authorized,
12,500 shares issued and
oustanding 2,500 2,500
Additional paid-in capital 43,759 43,759
Retained earnings 61,886 57,578
------------------ -----------------
Total stockholder's equity 108,145 103,837
------- ---------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $1,440,275 $1,208,291
========== ==========
</TABLE>
NOTE: The Balance Sheet at December 31, 1994 has been taken from the audited
financial statements at that date.
The accompanying notes are an integral part of these unaudited financial
statements.
<PAGE>
<TABLE>
<CAPTION>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
($ IN THOUSANDS)
(UNAUDITED)
1995 1994
--------- --------
<S> <C> <C>
REVENUES:
Premiums and annuity considerations $28,457 $26,225
Less: reinsurance ceded (12,106) (12,755)
------- -------
Net premiums and annuity considerations 16,351 13,470
Net investment income 16,894 14,816
Net realized capital losses
on investments (870) (2,528)
Other income 419 280
----- ------
Total revenues 32,794 26,038
BENEFITS, LOSSES AND EXPENSES:
Benefits, claims and settlement expenses 27,701 25,368
Acquisition and insurance expenses 13,041 5,455
Other expenses 1,373 1,028
Less: reinsurance benefits and expenses (10,825) (9,140)
------- -------
Total benefits, losses and expenses 31,290 22,711
-------- -------
Income before income tax expense 1,504 3,327
FEDERAL INCOME TAX EXPENSE 87 1,689
-------- -------
NET INCOME $1,417 $1,638
======== =======
</TABLE>
The accompanying notes are an integral part of these unaudited
financial statements.
<PAGE>
<TABLE>
<CAPTION>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
($ IN THOUSANDS)
(UNAUDITED)
1995 1994
-------- --------
<S> <C> <C>
REVENUES:
Premiums and annuity considerations $97,491 $74,023
Less: reinsurance ceded (38,603) (41,000)
------- -------
Net premiums and annuity considerations 58,888 33,023
Net investment income 50,366 44,583
Net realized capital losses
on investments (1,243) (2,530)
Other income 1,166 667
------- ------
Total revenues 109,177 75,743
BENEFITS, LOSSES AND EXPENSES:
Benefits, claims and settlement expenses 100,817 67,617
Acquisition and insurance expenses 32,217 14,928
Other expenses 3,889 3,344
Less: reinsurance benefits and expenses (40,021) (31,044)
------- -------
Total benefits, losses and expenses 96,902 54,845
------- -------
Income before income tax expense 12,275 20,898
FEDERAL INCOME TAX EXPENSE 3,740 7,025
------- -------
NET INCOME $8,535 $13,873
======= =======
</TABLE>
The accompanying notes are an integral part of these unaudited
financial statements.
<PAGE>
<TABLE>
<CAPTION>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
($ IN THOUSANDS)
(UNAUDITED)
1995 1994
--------- ----------
<S> <C> <C>
Common Stock $2,500 $2,500
Additional Paid-in Capital 43,759 43,759
Retained Earnings
Balance, beginning of year 57,578 41,639
Net income 8,535 13,873
Change in asset valuation reserve (9,371) (1,044)
Change in nonadmitted assets (980) 587
Net unrealized capital gain 6,124 1,300
--------- ---------
Balance, end of period 61,886 56,355
--------- ---------
TOTAL STOCKHOLDER'S EQUITY $108,145 $102,614
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
<PAGE>
<TABLE>
<CAPTION>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
($ IN THOUSANDS)
(UNAUDITED)
1995 1994
-------- --------
<S> <C> <C>
CASH PROVIDED:
Premiums and annuity considerations,
net of reinsurance $59,267 $34,551
Other deposits 122,772 153,148
Net investment income 48,139 43,235
Commission and expense allowance and
reserve adjustment on reinsurance ceded 11,790 15,650
-------- --------
241,968 246,584
Benefits and interest to policyholders
and beneficiaries, net of reinsurance (34,544) (34,689)
Acquisition and insurance expenses,
net of reinsurance (36,108) (17,351)
Transfers to Separate Account (91,935) (136,976)
Federal income taxes paid (8,007) (8,393)
Other payments, net (11,956) (6,819)
Net cash provided by operations 59,418 42,356
-------- --------
Proceeds from the disposition of
fixed maturities and mortgage loans on
real estate 357,822 176,006
-------- --------
Total cash provided 417,240 218,362
-------- --------
CASH APPLIED:
Purchases of fixed maturities 349,073 215,240
Purchase of equity securities 69,720 -
Other applications 6 1,153
-------- --------
Total cash applied 418,799 216,393
-------- --------
Net increase (decrease) in cash and
cash equivalents (1,559) 1,969
CASH AND CASH EQUIVALENTS:
Beginning of year 3,025 5,589
-------- --------
End of period $1,466 $7,558
======== ========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
<PAGE>
C.M. LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 AND 1994
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
1. GENERAL:
C.M. Life Insurance Company (C.M. Life) is a wholly owned stock
life insurance subsidiary of Connecticut Mutual Life Insurance
Company (Connecticut Mutual). In the opinion of C.M. Life these
financial statements contain all adjustments, consisting of only
normal recurring adjustments, necessary to present fairly the
financial position as of September 30, 1995 and December 31, 1994,
the results of its operations for the three months and nine months
ended September 30, 1995 and 1994, and its cash flows for the nine
months ended September 30, 1995 and 1994.
C.M. Life's financial statements have been prepared in conformity
with accounting practices and procedures of the National
Association of Insurance Commissioners (NAIC) as prescribed or
permitted by the Insurance Department of the State of Connecticut,
which are considered to be generally accepted accounting
principles for wholly owned stock life insurance subsidiaries of
mutual life insurance companies.
The Financial Accounting Standards Board (FASB) has issued an
interpretation declaring that financial statements of mutual life
insurance companies, and their wholly owned subsidiaries, which
are prepared on the basis of statutory accounting principles, will
no longer be considered to be in conformity with GAAP. This
interpretation applies to financial statements issued for fiscal
years beginning after December 15, 1995. Certain accounting
principles for mutual life insurance companies, which will be
required to be in compliance with GAAP, were also issued by the
FASB and the American Institute of Certified Public Accountants in
January 1995. The financial statement impact of adopting these
accounting principles has not been determined by the Company. The
effect of initially adopting the FASB interpretation shall be
reported retroactively through restatement of all previously
issued financial statements presented for comparative purposes for
fiscal years beginning after December 15, 1992.
2. RELATED PARTY TRANSACTIONS:
The Parent, Connecticut Mutual, allocates certain expenses to C.M.
Life for providing operating facilities, human resources, computer
software development and managerial services. Total expenses
allocated to C.M. Life were approximately $10,302 and $24,786 for
the three and nine month periods ended September 30, 1995 and
$3,746 and $11,306 for the same periods in 1994.
3. NET INVESTMENT INCOME:
<TABLE>
<CAPTION>
Net investment income is comprised of the following:
Three Months Nine Months Ended
Ended
September 30, September 30,
------------------ --------------------
1995 1994 1995 1994
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Fixed Maturities $13,319 $11,958 $40,368 $35,291
Mortgage loans on 646 969 2,158 3,535
real estate
Policy loans 2,547 2,017 7,304 5,859
Amortization of IMR (22) (67) (170) 296
Other 489 332 1,393 1,155
------- ------- -------- --------
Total Investment
Income 16,979 15,209 51,053 46,136
Less: Applicable
investment expense 85 393 687 1,553
------- ------- -------- --------
Net Investment Income $16,894 $14,816 $50,366 $44,583
======= ======= ======== ========
</TABLE>
<PAGE>
FINANCIAL STATEMENTS
The financial statements of C.M. Life are included herein. The financial
statements of C.M. Life should be considered only as bearing on the ability of
C.M. Life to meet its obligations under the Contracts. They should not be
considered as bearing on the investment performance of the assets held in the
Separate Account. Nor do they necessarily bear on the Guaranteed Interest Rate
declared from time to time for the General Account.
The financial statements of the Panorama Plus Separate Account
included in this Statement of Additional Information have been audited by
Arthur Andersen LLP, independent public accountants, as indicated in their
reports with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in accounting and auditing in giving said
reports.
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, 1994, 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, 1994, 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.
/s/ ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 15, 1995
<PAGE>
Statement of Net Assets Panorama Plus Separate Account of
C.M. Life Insurance Company
December 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Assets
Investments, at market:
Connecticut Mutual Financial Services Series Fund I, Inc.
Money Market Portfolio
14,345,363 shares (Cost $14,345,363) 14,345,363
Government Securities Portfolio
13,784,766 shares (Cost $14,478,884) 13,139,708
Income Portfolio
16,582,077 shares (Cost $20,789,188) 18,381,183
Total Return Portfolio
115,365,145 shares (Cost $191,129,624) 174,754,659
Growth Portfolio
31,648,329 shares (Cost $66,406,052 62,449,400
International Equity Portfolio
23,596,676 shares (Cost $26,375,300) 25,670,800
___________
$308,741,113
Cash 930,553
___________
Total Assets $309,671,666
___________
Liabilities
Payable for Investment Purchased 894,794
Due to Affiliates 35,759
___________
Total Liabilities 930,553
___________
Net Assets (variable annuity contract liabilities) $308,741,113
____________
____________
Variable Annuity Contract Liabilities
- -------------------------------------------------------------------------------------------
</TABLE>
At December 31, 1994, the variable annuity contract liabilities of the
Account consisted of the following:
<TABLE>
<CAPTION>
Units Owned by Unit Value Variable Annuity
Participants Contract
Liabilities
--------------- ------------ -----------------
<S> <C> <C> <C>
Money Market Sub Account 13,603,045 1.054570 $ 14,345,363
Government Securities Sub-Account 11,994,574 1.095471 13,139,708
Income Sub-Account 16,488,930 1.114759 18,381,183
Total Return Sub-Account 147,324,713 1.186187 174,754,659
Growth Sub-Account 49,636,052 1.258146 62,449,400
International Equity Sub-Account 22,419,639 1.145014 25,670,800
____________
$308,741,113
------------
------------
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS Panorama Plus Separate Account of
C.M. LIFE INSURANCE COMPANY
For the year ended December 31, 1994
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
SUB-ACCOUNTS
----------------------------------------------------------------------------
MONEY GOVERNMENT TOTAL INTERNATIONAL
MARKET SECURITIES INCOME RETURN GROWTH EQUITY
---------- ---------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment Income
Income:
Dividends $356,329 $757,287 $1,368,897 $11,538,649 $2,918,102 $362,316
Expenses
Mortality and
Expense Risk Fees 99,415 136,164 192,749 1,544,075 509,740 194,714
--------- -------- ---------- ----------- ---------- --------
NET INVESTMENT
INCOME $256,914 $621,123 $1,176,148 $ 9,984,574 $2,408,362 $167,602
--------- -------- ---------- ----------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain
(Loss) from Fund
Share Transactions 1,227 (131,631) (414,663) (95,129) 189,722 238,892
Unrealized
Depreciation --- (1,110,222) (1,578,812) (13,080,114) (3,322,855) (846,587)
--------- -------- ---------- ----------- ---------- --------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS 1,227 (1,241,853) (1,993,475) (13,175,243) (3,133,133) (607,695)
--------- -------- ---------- ----------- ---------- --------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING FROM
OPERATIONS $258,141 $(620,730) $(817,327) $(3,190,669) $(724,771) $(440,093)
--------- -------- ---------- ----------- ---------- --------
--------- -------- ---------- ----------- ---------- --------
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Panorama Plus Separate Account of
C.M. LIFE INSURANCE COMPANY
For the years ended December 31, 1994
and 1993
<TABLE>
<CAPTION>
SUB-ACCOUNTS
--------------------------------------------------------
MONEY MARKET GOVERNMENT SECURITIES
------------------------ ----------------------------
1994 1993 1994 1993
----------- ---------- ---------- -----------
Increase (Decrease) in Net Assets
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 256,914 $ 21,568 $ 621,123 $ 464,455
Net Realized Gain (Loss) from
Fund Share Transactions 1,227 393 (131,631) 20,189
Unrealized Appreciation (Depreciation) --- --- (1,110,222) (137,697)
----------- ---------- ---------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 258,141 21,961 (620,730) 346,947
----------- ---------- ---------- -----------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 16,747,944 4,230,788 6,647,876 7,443,951
Withdrawals by Contract Holders (301,788) (5,275) (728,540) (99,068)
Net Transfers from (to) other Panorama
Plus Sub-Accounts (5,581,994) (1,714,160) (1,943,149) (193,575)
----------- ---------- ---------- -----------
Increase in Net Assets from Unit
Transactions 10,864,162 2,511,353 3,976,187 7,151,308
----------- ---------- ---------- -----------
INCREASE IN NET ASSETS 11,122,303 2,533,314 3,355,457 7,498,255
----------- ---------- ---------- -----------
NET ASSETS
Beginning of Period 3,223,060 689,746 9,784,251 2,285,996
----------- ---------- ---------- -----------
End of Period $14,345,363 $3,223,060 $13,139,708 $9,784,251
----------- ---------- ---------- -----------
----------- ---------- ---------- -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUB-ACCOUNTS
-----------------------------------------------------
INCOME TOTAL RETURN
------------------------- ----------------------------
1994 1993 1994 1993
------------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
FROM OPERATIONS:
Net Investment Income (Loss) $ 1,176,148 $ 1,079,960 $ 9,984,574 $ 7,116,658
Net Realized Gain (Loss) from
Fund Share Transactions (414,663) 42,313 (95,129) 257,827
Unrealized Appreciation (Depreciation) (1,578,812) (640,313) 13,080,114 (2,579,916)
----------- ----------- ----------- ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (817,327) 481,960 3,190,669 4,794,569
----------- ----------- ----------- ------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 9,384,403 11,768,875 91,565,680 68,116,059
Withdrawals by Contract Holders (731,934) (214,980) (5,429,841) (460,811)
Net Transfers from (to) other Panorama
Plus Sub-Accounts (3,875,075) (334,958) 5,153,362 1,163,699
----------- ----------- ----------- ------------
Increase in Net Assets from Unit
Transactions 4,777,394 11,218,937 91,289,201 68,818,947
----------- ----------- ----------- ------------
INCREASE IN NET ASSETS 3,960,067 11,700,897 88,098,532 73,613,516
----------- ----------- ----------- ------------
NET ASSETS
Beginning of Period 14,421,116 2,720,219 86,656,127 13,042,611
----------- ----------- ----------- ------------
End of Period $18,381,183 $14,421,116 $174,754,659 $86,656,127
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------- -------------------------
GROWTH INTERNATIONAL EQUITY
-------------------------- -------------------------
1994 1993 1994 1993
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
FROM OPERATIONS:
Net Investment Income (Loss) $ 2,408,362 $ 2,252,803 $ 167,602 $ 98,081
Net Realized Gain (Loss) from
Fund Share Transactions 189,722 148,896 238,892 55,572
Unrealized Appreciation (Depreciation) 3,322,855 (577,298) (846,587) 155,127
----------- ----------- ----------- ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (724,771) 1,824,401 (440,093) 308,780
----------- ----------- ----------- ------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 36,240,295 19,374,497 17,297,089 4,872,018
Withdrawals by Contract Holders (1,264,571) (59,718) (521,706) (49,325)
Net Transfers from (to) other Panorama
Plus Sub-Accounts 3,471,723 609,029 2,941,839 556,047
----------- ----------- ---------- ----------
Increase in Net Assets from Unit
Transactions 38,447,447 19,923,808 19,717,222 5,378,740
----------- ----------- ----------- ------------
INCREASE IN NET ASSETS 37,722,676 21,748,209 19,277,129 5,687,520
----------- ----------- ----------- ------------
NET ASSETS
Beginning of Period 24,726,724 2,978,515 6,393,671 706,151
----------- ----------- ----------- ------------
End of Period $62,449,400 $24,726,724 $25,670,800 $6,393,671
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS Panorama Plus Separate Account of
C.M. LIFE INSURANCE COMPANY
December 31, 1994
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 transfer 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,
1994.
(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 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. No
provision for income taxes has been required in the accompanying
financial statements.
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.
<PAGE>
<TABLE>
<CAPTION>
Panorama Plus Separate Account of
Statement of Net Assets C.M. Life Insurance Company
December 31, 1995
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
<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 Variable
liabilities of the Account consisted of the following: Participants Unit Value Contract Liabilities
----------------------------------------------------------------
<S> <C> <C> <C>
Money Market Sub-Account 16,949,501 1.100599 $18,654,604
Government Securities Sub-Account 13,726,057 1.281804 17,594,114
Income Sub-Account 20,617,764 1.306525 26,937,625
Total Return Sub-Account 194,679,349 1.460595 284,347,684
Growth Sub-Account 83,371,008 1.711382 142,679,643
International Equity Sub-Account 31,322,974 1.251930 39,214,171
--------------
$529,427,841
--------------
--------------
The accompanying notes are an integral part of these unaudited financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Panorama Plus Separate Account of
Statement of Operations C.M. Life Insurance Company
For the year ended December 31, 1995
(UNAUDITED)
SUB - ACCOUNTS
- ----------------------------------------------------------------------------------------------------------------------------------
Money Government Total International
Market Securities Income Return Growth Equity
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income
Income:
Dividends $862,338 $926,653 $1,665,826 $19,908,048 $9,744,030 $1,668,525
Expenses:
Mortality and Expense Risk Fees 184,172 178,149 248,880 2,537,691 1,000,941 352,022
----------- ----------- ----------- ----------- ----------- -----------
Net Investment Income 678,166 748,504 1,416,946 17,370,357 8,743,089 1,316,503
----------- ----------- ----------- ----------- ----------- -----------
Realized and Unrealized Gain
on Investments
Net Realized (Loss) Gain from
Fund Share Transactions - (181,580) (560,230) 412,341 1,077,287 80,004
Unrealized Appreciation - 1,740,443 2,626,301 28,716,298 19,468,392 1,659,806
----------- ----------- ----------- ----------- ----------- -----------
Net Realized and Unrealized Gain on
Investments - 1,558,863 2,066,071 29,128,639 20,545,679 1,739,810
----------- ----------- ----------- ----------- ----------- -----------
Net Increase in Net Assets Resulting
from Operations $678,166 $2,307,367 $3,483,017 $46,498,996 $29,288,768 $3,056,313
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
The accompanying notes are an integral part of these unaudited financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Panorama Plus Separate Account of
Statements of Changes in Net Assets C.M. Life Insurance Company
For the years ended December 31, 1995 and 1994
(UNAUDITED)
SUB - ACCOUNTS
--------------------------------------------------------------------------------
Money Market Government Securities Income
--------------------------------------------------------------------------------
Increase in Net Assets 1995 1994 1995 1994 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net Investment Income $678,166 $258,141 $748,504 $621,480 $1,416,946 $1,186,668
Net Realized (Loss) Gain from Fund Share
Transactions - - (181,580) (131,988) (560,230) (425,183)
Unrealized Appreciation (Depreciation) - - 1,740,443 (1,110,222) 2,626,301 (1,578,812)
------------ ------------ ------------ ----------- ----------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 678,166 258,141 2,307,367 (620,730) 3,483,017 (817,327)
------------ ------------ ------------ ----------- ----------- -------------
From Unit Transactions:
Purchases by
Contract Holders 16,303,757 16,747,944 4,239,086 6,647,876 7,327,265 9,384,403
Withdrawals by
Contract Holders (1,041,002) (301,788) (1,010,025) (728,540) (1,503,125) (731,934)
Net Transfers from (to) other
Panorama Plus Sub-Accounts (11,631,631) (5,581,994) (1,082,071) (1,943,149) (750,762) (3,875,075)
------------ ------------ ------------ ----------- ----------- -------------
Increase in Net Assets
From Unit Transactions 3,631,124 10,864,162 2,146,990 3,976,187 5,073,378 4,777,394
------------ ------------ ------------ ----------- ----------- -------------
Increase in Net Assets 4,309,290 11,122,303 4,454,357 3,355,457 8,556,395 3,960,067
------------ ------------ ------------ ----------- ----------- -------------
Net Assets
Beginning of Period 14,345,363 3,223,060 13,139,708 9,784,251 18,381,183 14,421,116
------------ ------------ ------------ ------------ ----------- ------------
End of Period $ 18,654,653 $ 14,345,363 $ 17,594,065 $ 13,139,708 $ 26,937,578 $ 18,381,183
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Total Return Growth International Equity
--------------------------------------------------------------------------------
Increase in Net Assets 1995 1994 1995 1994 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net Investment Income $17,370,357 $9,976,188 $8,743,089 $2,396,992 $1,316,503 $169,474
Net Realized (Loss) Gain from Fund Share
Transactions 412,341 (86,743) 1,077,287 201,092 80,004 237,020
Unrealized Appreciation (Depreciation) 28,716,298 (13,080,114 19,468,392 (3,322,855) 1,659,806 (846,587)
------------ ------------ ------------ ----------- ----------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 46,498,996 (3,190,669) 29,288,768 (724,771) 3,056,313 (440,093)
------------ ------------ ------------ ----------- ----------- -----------
From Unit Transactions:
Purchases by
Contract Holders 65,807,258 91,565,680 47,296,466 36,240,295 12,435,170 17,297,089
Withdrawals by
Contract Holders (9,098,100) (5,429,841) (4,558,600) (1,264,571) (1,236,355) (521,706)
Net Transfers from (to) other
Panorama Plus Sub-Accounts 6,375,872 5,153,362 8,203,928 3,471,723 (711,707) 2,941,839
------------ ------------ ------------ ----------- ----------- -----------
Increase in Net Assets
From Unit Transactions 63,085,030 91,289,201 50,941,794 38,447,447 10,487,108 19,717,222
------------ ------------ ------------ ----------- ----------- -----------
Increase in Net Assets 109,584,026 88,098,532 80,230,562 37,722,676 13,543,421 19,277,129
------------ ------------ ------------ ----------- ----------- -----------
Net Assets
Beginning of Period 174,754,659 86,656,127 62,449,400 24,726,724 25,670,800 6,393,671
------------ ------------ ------------ ----------- ----------- -----------
End of Period $284,338,685 $174,754,659 $142,679,962 $62,449,400 $39,214,221 $25,670,800
------------ ------------ ------------ ------------ ----------- -----------
------------ ------------ ------------ ------------ ----------- -----------
The accompanying notes are an integral part of these unaudited financial statements.
</TABLE>
<PAGE>
Panorama Plus Separate Account of
NOTES TO FINANCIAL STATEMENTS C.M. Life Insurance Company
December 31, 1995
(UNAUDITED)
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 transfer 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.
(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) 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.
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
The following financial statements for C.M. Life are included in
Part B hereof:
1. Report of Independent Public Accountants.
2. Balance Sheets as of December 31, 1994 and 1993.
3. Statements of Operations for the Years Ended December 31, 1994,
1993 and 1992.
4. Statements of Stockholder's Equity for the Years Ended
December 31, 1994, 1993 and 1992.
5. Statements of Cash Flows for the Years Ended December 31, 1994,
1993 and 1992.
6. Notes to Financial Statements--December 31, 1994, 1993 and 1992.
7. Schedules I and VI.
8. Balance Sheets as of September 30, 1995 (UNAUDITED) and
December 31, 1994.
9. Statements of Operations for the Three Months Ended September
30, 1995 and 1994 (UNAUDITED).
10. Statements of Operations for the Nine Months Ended September
30, 1995 and 1994 (UNAUDITED).
11. Statements of Stockholder's Equity for the Nine Months Ended
September 30, 1995 and 1994 (UNAUDITED).
12. Statements of Cash Flows for the Nine Months Ended September
30, 1995 and 1994 (UNAUDITED).
13. Notes to Financial Statements--September 30, 1995 and 1994
(UNAUDITED).
14. Financial Data Schedule - C.M. Life (for period ended 9/30/95)
(Provided as an Exhibit in response to Item 24(b)14)(UNAUDITED).
The following financial statements for Panorama Plus Separate
Account are included in Part B hereof:
1. Report of Independent Public Accountants
2. Statement of Net Assets as of December 31, 1994.
3. Statement of Operations for the Year ended December 31, 1994.
4. Statements of Changes in Net Assets for the Years Ended
December 31, 1994 and 1993.
5. Notes to Financial Statements - December 31, 1994.
6. Statement of Net Assets as of December 31, 1995 (UNAUDITED).
7. Statement of Operations for the Year ended December 31, 1995
(UNAUDITED).
8. Statement of Changes in Net Assets for the Years Ended
December 31, 1995 and 1994 (UNAUDITED).
9. Notes to Financial Statements--December 31, 1995 (UNAUDITED).
(b) Exhibits:
1. Resolution of Board of Directors of C.M. Life Insurance
Company authorizing the establishment of the Separate
Account.**
2. Not Applicable.
3. (i) Form of Distribution Agreement.*
(ii) Broker/Dealer Agreements.*
4. Individual Variable Deferred Annuity Contract.*
5. Application Form.*
6. (i) Copy of Articles of Incorporation of C.M. Life
Insurance Company.**
(ii) Copy of the Bylaws of C.M. Life Insurance Company.**
7. Not Applicable.
8. Form of Fund Participation Agreement.*
9. Opinion and Consent of Counsel.
10. Consent of Independent Accountants.
11. Not Applicable.
12. Not Applicable.
13. Not Applicable.
14. Financial Data Schedule - C.M. Life (for period ended
9/30/95) (UNAUDITED).
*Previously filed with Pre-Effective Amendment No. 1 to the Registration
Statement dated April 8, 1992 and filed April 13, 1992, File Number
33-45122, and incorporated by reference herein.
**Previously filed with the initial Registration Statement on January 16,
1992, File Number 33-45122, and incorporated by reference herein.
Item 25. Directors and Officers of the Depositor
Previously filed with Post-Effective Amendment No. 4 to the Registration
Statement on April 28, 1995, File Number 33-45122, and incorporated by
reference herein.
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant.
C.M. Life Insurance Company is 100% owned by Connecticut Mutual
Life Insurance Company.
The discussion that follows indicates those entities owned
directly or indriectly by Connecticut Mutual Life Insurance Company
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
SUBSIDIARIES
As of 06/27/95
CM ADVANTAGE, INC.
This is a Connecticut corporation incorporated February 27, 1984.
Its business is acting as general partner in real estate limited
partnerships.
DHC, Inc. owns all the outstanding stock.
CM ASSURANCE COMPANY
This is a Connecticut corporation incorporated July 23, 1986 (CM
Insurance Company) and renamed December 15, 1987. Type of
business - life insurance, endowments, annuities, accident,
disability and health insurance.
Connecticut Mutual owns all the stock.
CM BENEFIT INSURANCE COMPANY
This is a Connecticut corporation incorporated April 22, 1986 as
CM Pension Insurance Company and renamed CM Benefit Insurance
Company on December 15, 1987. Type of business - life insurance,
endowments, annuities, accident, disability and health insurance.
Connecticut Mutual owns all the stock.
CM INSURANCE SERVICES, INC.
A Connecticut corporation incorporated July 20, 1981 as
DIVERSIFIED INSURANCE SERVICES OF AMERICA, INC. and renamed as CM
Insurance Services, Inc. on June 23, 1992. Type of business - the
sale of, solicitation for, or procurement or making of insurance
or annuity contracts and any other type of contract sold by
insurance companies.
DHC, Inc. owns all the issued and outstanding stock.
<PAGE>
CM INSURANCE SERVICES, INC. (Arkansas)
An Arkansas corporation incorporated January 11, 1982 as
Diversified Insurance Services Agency of America and renamed CM
Insurance Services, Inc. on October 19, 1992. Type of business -
the sale of, solicitation for, or procurement or making of
insurance or annuity contracts and any other type of contract sold
by insurance companies.
CM Insurance Services, Inc. owns all of the issued and outstanding
common stock.
CM INSURANCE SERVICES, INC. (Texas)
A Texas corporation incorporated April 16, 1982 and renamed CM
Insurance Services, Inc. Type of business - the sale of,
solicitation for, or procurement or making of insurance or annuity
contracts and any other type of contract sold by insurance
companies. CM Insurance Services, Inc. controls 100 shares (100%)
of the issued and outstanding common stock through a voting trust.
CM INTERNATIONAL, INC.
A Delaware corporation incorporated July 25, 1985. Type of
business - holding a mortgage pool and issuance of collateralized
mortgage obligations.
DHC, Inc. owns all the outstanding stock.
CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
This is a Maryland corporation incorporated December 9, 1981 as
Connecticut Mutual Liquid Account, Inc.
It is a diversified open-end management investment company. As of
3/31/94, Connecticut Mutual and its various subsidiaries owned
approximately 30% of its shares; AND
<PAGE>
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I, INC.
This is a Maryland corporation organized August 17, 1981. It is a
diversified open-end management investment company. Shares of the
fund are sold only to Connecticut Mutual and its affiliates,
primarily CML's Panorama separate account.
CONNECTICUT MUTUAL FINANCIAL SERVICES, LLC
A Connecticut limited liability corporation formed November 10,
1994. It is a registered broker-dealer. Connecticut Mutual has a
99% ownership interest and CM Strategic Ventures, Inc. has a 1%
ownership interest.
C. M. LIFE INSURANCE COMPANY
A Connecticut corporation incorporated April 25, 1980. Its
business is the sale of life insurance, endowments, annuities,
accident, disability and accident and health insurance.
Connecticut Mutual owns all the common stock.
CM PROPERTY MANAGEMENT, INC.
A Connecticut corporation incorporated December 27, 1976 as URBCO,
Inc., and renamed CM Property Management, Inc. on October 7, 1991.
Type of business - Real estate holding company DHC, Inc. owns all
the stock.
CM STRATEGIC VENTURES, INC.
A Connecticut corporation incorporated October 26, 1987. It acts
as general partner in limited partnerships.
All outstanding stock is held by G.R. Phelps & Co., Inc.
<PAGE>
CM TRANSNATIONAL S.A.
A Luxembourg corporation incorporated July 8, 1987. Type of
business - life insurance endowments and annuity contracts.
Connecticut Mutual owns 99.7% and DHC, Inc. owns the remaining
0.3% of outstanding stock.
CML INVESTMENTS I CORP.
A Delaware corporation incorporated December 26, 1991. This
Company is organized to authorize, co-issue, sell and deliver
jointly with CML Investments I L.P. bonds, notes or other
obligations secured by primarily non-investment grade corporate
debt obligations and other collateral.
CML Investments I L.P. owns all of the outstanding stock (State
House I Corp. is the General Partner of CML Investments I L.P.).
DHC, INC.
A Connecticut corporation incorporated December 27, 1976. Type of
business - holding company.
Connecticut Mutual owns all the stock.
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA Ohio)
An Ohio corporation incorporated March 18, 1982. Type of business
- - the sale of, solicitation for, or procurement or making of
insurance or annuity contracts and any other type of contract sold
by insurance companies.
CM Insurance Services, Inc. holds 100 shares (100%) of the issued
and outstanding Class B (non-voting) common. In addition, it
controls 1 share (100%) of the issued and outstanding Class A
(voting) common through a voting trust.
<PAGE>
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA
Massachusetts)
A Massachusetts corporation incorporated March 18, 1982. Type of
business - the sale of, solicitation for, or procurement or making
of insurance or annuity contracts and any other type of contract
sold by insurance companies.
CM Insurance Services, Inc. owns all of the issued and outstanding
stock.
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA Alabama)
An Alabama corporation incorporated January 21, 1982. Type of
business - the sale of, solicitation for, or procurement or making
of insurance or annuity contracts and any other type of contract
sold by insurance companies.
CM Insurance Services, Inc. owns all of the issued and outstanding
stock.
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA New York)
A New York corporation incorporated January 20, 1982. Type of
business - the sale of, solicitation for, or procurement or making
of insurance or annuity contracts and any other type of contract
sold by insurance companies.
CM Insurance Services, Inc. owns all of the issued and outstanding
common stock.
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA Hawaii)
A Hawaii corporation incorporated January 13, 1982. Type of
business - the sale of, solicitation for, or procurement or making
of insurance or annuity contracts and any other type of contract
sold by insurance companies.
<PAGE>
DIVERSIFIED INSURANCE SERVICES AGENCY OF AMERICA, INC. (DISA Hawaii)
(continued)
CM Insurance Services, Inc. owns all of the issued and outstanding
common stock.
G. R. PHELPS & CO., INC.
A Connecticut corporation incorporated December 27, 1976 as AGCO,
Inc., renamed Connecticut Mutual Financial Services, Inc. on
February 10, 1981, renamed again to G. R. Phelps & Co. on May 31,
1989. Type of business - broker/dealer and investment adviser.
DHC, Inc. owns all the outstanding stock.
STATE HOUSE I CORPORATION
A Delaware corporation incorporated December 26, 1991. This
Company is organized to (a) act as a general partner of CML
Investments I L.P. which will authorize, issue, sell and deliver,
both by itself and jointly with CML Investments I Corp. bonds,
notes or other obligations secured by primarily non-investment
grade corporate debt obligations; (b) to act as general partner of
State House I L.P. which will hold a limited partnership interest
in CML Investments I L.P.
DHC, Inc. owns all of the outstanding stock.
SUNRIVER PROPERTIES, INC. - SHELL CORPORATION
This is an Oregon corporation incorporated February 8, 1965. It
is not actively engaged in any business. However, its name is a
valuable asset which is associated with a development project in
which CML has a substantial interest.
Connecticut Mutual owns all the outstanding stock.
URBAN PROPERTIES INC.
A Delaware corporation incorporated March 30, 1970. Type of
business - general partner in limited partnerships, real estate
holding and development company.
DHC, Inc. owns all the outstanding stock.
<PAGE>
Item 27. Number of Contract Owners.
As of January 25, 1996 there were 10,310 Owners of the Contracts of the
qualified plan and 7,040 Owners of the Contracts of the non-qualified plan.
Item 28. Indemnification.
Previously filed with Pre-Effective Amendment No. 1 to the Registration
Statement dated April 8, 1992 and filed April 13, 1992, File Number 33-45122,
and incorporated by reference herein.
Item 29. Principal Underwriter
(a) Not Applicable.
(b) Connecticut Mutual Financial Services, LLC is the distributor of
the Contracts. The following are the officers and directors of
the distributor.
Name and Principal Positions and Offices
Business Address* with Underwriter
- ------------------ ----------------
John D. Loewenberg Member Representative on behalf of Connecticut
Mutual Life Insurance Company and Chairman
Frank Dranginis Member Representative on behalf of Connecticut
Mutual Strategic Ventures, Inc.
Emelia Bruno Financial and Operations Principal
Theresa M. Squillacote Compliance Officer
Ann F. Lomeli Secretary
Ann Iseley Vice President
*The Principal Business Address for all personnel is 140 Garden Street,
Hartford, Connecticut.
(c) Not Applicable.
Item 30. Location of Accounts and Records.
The records required to be maintained by Section 31(a) of the Investment
Company Act of 1940 and Rules 31(a)-1 to 31(a)-3 promulgated thereunder, are
maintained by C.M. Life and Connecticut Mutual Financial Services, LLC,
140 Garden Street, Hartford, Connecticut 06154.
Item 31. Management Services.
None.
Item 32. Undertakings.
Previously filed with Pre-Effective Amendment No. 1 to the Registration
Statement dated April 8, 1992 and filed April 13, 1992, File Number 33-45122,
and incorporated by reference herein.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it has caused this Post-Effective
Amendment No. 5 to the Registration Statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Hartford and State
of Connecticut on this 29th day of January, 1996. The Registrant certifies
that it meets all of the requirements for effectiveness of this Post-Effective
Amendment No. 5 pursuant to paragraph (b) of Rule 485 under the Securities Act
of 1933.
PANORAMA PLUS SEPARATE ACCOUNT
C.M. LIFE INSURANCE COMPANY
Depositor
*BY: DAVID E. SAMS, JR.
DAVID E. SAMS, JR.
Director and President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 5 to the Registration Statement has been signed
by the following persons in the capacities and on the date indicated.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
<S> <C> <C>
* DAVID E. SAMS, JR. Director and President January 29, 1996
David E. Sams, Jr.
* DONALD H. POND, JR. Director and Vice President January 29, 1996
Donald H. Pond, Jr. (Principal Executive Officer)
* RODNEY O. MARTIN, JR. Director January 29, 1996
Rodney O. Martin, Jr.
* J. BRINKE MARCUCCILLI Chief Financial Officer January 29, 1996
J. Brinke Marcuccilli (Principal Financial Officer)
* EMELIA M. BRUNO Controller (Principal January 29, 1996
Emelia M. Bruno Accounting Officer)
</TABLE>
*By /s/ MICHAEL A. CHONG
Michael A. Chong
Attorney in Fact pursuant to the Power of Attorney dated
September 21, 1994, incorporated herein, and previously
filed with the Securities and Exchange Commission as part
of the Registrant's Pre-Effective Registration Statement.
<PAGE>
EXHIBITS
TO
FORM N-4
FOR
PANORAMA PLUS SEPARATE ACCOUNT
C.M. LIFE INSURANCE COMPANY
<PAGE>
EXHIBIT INDEX
9. Opinion and Consent of Counsel
10. Consent of Independent Accountants
14. Financial Data Schedule -- C.M. Life (for period ended 9/30/95)
<PAGE>
OPINION AND CONSENT OF COUNSEL
As Counsel to C.M. Life Insurance Company, the undersigned has reviewed
this Post-Effective Amendment No. 5 to the Registration Statement for Panorama
Plus Separate Account. The undersigned hereby certifies that this Amendment
does not contain disclosures that would render it ineligible to become
effective under paragraph 485(b) of the Securities Act of 1933, as amended.
/s/Michael A. Chong
Michael A. Chong
Counsel
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our reports
(and to all references to our Firm) included in or made a part of this
Registration Statement (Registration Statement File Nos. 33-45122 and 811-6530)
for the Panorama Plus Separate Account of C.M. Life Insurance Company.
/s/ ARTHUR ANDERSEN LLP
Hartford, Connecticut
January 26, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
C.M. LIFE'S SEPTEMBER 30, 1995 FINANCIAL STATEMENTS AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 723581<F1>
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 70252
<MORTGAGE> 31980
<REAL-ESTATE> 1853
<TOTAL-INVEST> 949687
<CASH> 1466
<RECOVER-REINSURE> 240
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 1440275
<POLICY-LOSSES> 802050
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 755
<POLICY-HOLDER-FUNDS> 464454
<NOTES-PAYABLE> 0
0
0
<COMMON> 2500
<OTHER-SE> 105645
<TOTAL-LIABILITY-AND-EQUITY> 1440275
58888<F2>
<INVESTMENT-INCOME> 50366
<INVESTMENT-GAINS> (1243)
<OTHER-INCOME> 1166
<BENEFITS> 100817
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 32217
<INCOME-PRETAX> 12275
<INCOME-TAX> 3740
<INCOME-CONTINUING> 8535
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8535
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1>C.M. LIFE'S FINANCIAL STATEMENTS HAVE BEEN PREPARED IN CONFORMITY WITH
ACCOUNTING PRACTICES AND PROCEDURES OF THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS AS PRESCRIBED OR PERMITTED BY THE INSURANCE
DEPARTMENT OF THE STATE OF CONNECTICUT. UNDER THESE ACCOUNTING
PRACTICES, FIXED MATURITIES ELIGIBLE FOR AMORTIZATION ARE REPORTED
AT AMORTIZED COST.
<F2>PREMIUMS ARE REPORTED NET OF $38603 IN REINSURANCE CEDED.
</FN>
</TABLE>
