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[GALAXY VIP FUND LOGO]
[PHOTO]
GALAXY VARIABLE ANNUITY REPORT
ANNUAL
REPORT
FOR THE YEAR ENDED
DECEMBER 31, 1995
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[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED DECEMBER
31, 1995 FINANCIAL STATEMENTS OF THE GALAXY VIP FUND FOLLOW AT THIS POINT. THE
FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE EDGAR FORMAT ON
MARCH 7, 1996; FORM TYPE N-30D; FILE # 811-06726. THE FINANCIAL STATEMENTS
INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS OF THE
ADVISORS SELECT ANNUITY, THE ADVISORS CHOICE ANNUITY NOR THE ADVISORS DESIGN
ANNUITY.]
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 1995
31
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[THIS PAGE INTENTIONALLY LEFT BLANK]
32
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INDEPENDENT AUDITORS' REPORT
- ---------------------------------------------
To the Contractowners of
American Skandia Life Assurance Corporation
Variable Account E and the
Board of Directors of
American Skandia Life Assurance Corporation
Shelton, Connecticut
We have audited the accompanying statement of assets and liabilities of American
Skandia Life Assurance Corporation Variable Account E as of December 31, 1995,
and the related statements of operations and of changes in net assets for the
periods presented. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995 with the managers of
the mutual funds. 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, such financial statements present fairly, in all material
respects, the financial position of American Skandia Life Assurance Corporation
Variable Account E as of December 31, 1995, the results of its operations and
the changes in its net assets for the periods presented in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
February 20, 1996
33
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in mutual funds at market value (Note 2):
Galaxy VIP Funds (GAL):
Money Market - shares 14,937,239 (cost $14,937,239)............... $14,937,239
Equity - shares 2,192,968 (cost $23,017,027)...................... 28,486,658
High Quality Bond - shares 963,892 (cost $9,560,343).............. 9,995,560
Asset Allocation - shares 1,205,058 (cost $12,712,672)............ 14,918,618
-----------
Total Invested Assets.................................. 68,338,075
-----------
Receivable from Galaxy VIP Fund........................................................ 12,345
-----------
Total Assets........................................... $68,350,420
-----------
LIABILITIES:
Payable to American Skandia Life....................................................... $ 12,345
-----------
Total Liabilities...................................... $ 12,345
-----------
</TABLE>
NET ASSETS:
<TABLE>
<CAPTION>
Galaxy Contractowners' Equity Units Unit Value
- ----------------------------------------------------------- ---------- ----------
<S> <C> <C> <C>
GAL - Money Market.............................. 1,350,072 $11.06 $14,937,239
GAL - Equity.................................... 2,119,810 13.44 28,486,658
GAL - High Quality Bond......................... 830,395 12.04 9,995,560
GAL - Asset Allocation.......................... 1,136,906 13.12 14,918,618
-----------
Total Net Assets........... $68,338,075
===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------------------
GAL - MONEY GAL GAL - HIGH GAL - ASSET
TOTAL MARKET EQUITY QUALITY BOND ALLOCATION
----------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends.................................. $ 1,941,170 $ 723,049 $ 376,203 $ 531,935 $ 309,983
Expenses
Mortality and Expense Risks Charges and
Administrative Fees (Note 4)............. (345,290) (80,301) (139,613) (51,591) (73,785)
--------- --------- --------- --------- ---------
NET INVESTMENT INCOME.............................. 1,595,880 642,748 236,590 480,344 236,198
--------- --------- --------- --------- ---------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................ 10,990,739 5,955,417 1,662,069 1,425,102 1,948,151
Cost of Securities Sold........................ 10,693,831 5,955,417 1,399,112 1,483,996 1,855,306
--------- --------- --------- --------- ---------
NET REALIZED GAIN (LOSS)........................... 296,908 0 262,957 (58,894) 92,845
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Year.............................. (902,660) 0 490,672 (908,576) (484,756)
End of Period.................................. 8,110,794 0 5,469,631 435,217 2,205,946
--------- --------- --------- --------- ---------
NET UNREALIZED GAIN................................ 9,013,454 0 4,978,959 1,343,793 2,690,702
--------- --------- --------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........................ $10,906,242 $ 642,748 $5,478,506 $1,765,243 $3,019,745
========= ========= ========= ========= =========
</TABLE>
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See Notes to Financial Statements.
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUB-ACCOUNTS INVESTING IN:
------------------------------------------------------------------------
GAL - MONEY MARKET
TOTAL --------------------------------
--------------------------------- YEAR ENDED
YEAR ENDED YEAR ENDED DEC. 31, YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net Investment Income.............................. $ 1,595,880 $ 1,447,657 $ 642,748 $ 410,100
Net Realized Gain (Loss)........................... 296,908 (261,712) 0 0
Net Unrealized Gain (Loss) on Investments.......... 9,013,454 (1,294,897) 0 0
---------- ---------- ---------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations........................ 10,906,242 (108,952) 642,748 410,100
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................. 16,081,747 18,419,920 8,504,285 13,131,303
Net Transfers between Sub-accounts................. 0 0 (2,037,994) (6,751,680)
Surrenders......................................... (9,897,843) (12,445,462) (5,447,752) (4,377,375)
---------- ---------- ---------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share Transactions........ 6,183,904 5,974,458 1,018,539 2,002,248
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS................ 17,090,146 5,865,506 1,661,287 2,412,348
NET ASSETS:
Beginning of Year.................................. 51,247,929 45,382,423 13,275,952 10,863,604
---------- ---------- ---------- ----------
End of Period...................................... $68,338,075 $ 51,247,929 $14,937,239 $13,275,952
========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------------------------
GAL - EQUITY GAL - HIGH QUALITY BOND GAL - ASSET ALLOCATION
------------------------------------ ------------------------------------ ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 236,590 $ 252,033 $ 480,344 $ 493,689 $ 236,198 $ 291,835
262,957 32,461 (58,894) (259,421) 92,845 (34,752)
4,978,959 190,762 1,343,793 (895,240) 2,690,702 (590,419)
---------- ---------- --------- ---------- ---------- ----------
5,478,506 475,256 1,765,243 (660,972) 3,019,745 (333,336)
---------- ---------- --------- ---------- ---------- ----------
4,018,927 2,849,176 1,167,745 757,438 2,390,790 1,682,003
869,636 4,648,563 521,490 596,054 646,868 1,507,063
(1,266,149) (1,499,452) (1,471,364) (2,484,901) (1,712,578) (4,083,734)
---------- ---------- --------- ---------- ---------- ----------
3,622,414 5,998,287 217,871 (1,131,409) 1,325,080 (894,668)
---------- ---------- --------- ---------- ---------- ----------
9,100,920 6,473,543 1,983,114 (1,792,381) 4,344,825 (1,228,004)
19,385,738 12,912,195 8,012,446 9,804,827 10,573,793 11,801,797
---------- ---------- --------- ---------- ---------- ----------
$28,486,658 $19,385,738 $ 9,995,560 $ 8,012,446 $14,918,618 $10,573,793
========== ========== ========= ========== ========== ==========
</TABLE>
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
American Skandia Life Assurance Corporation Variable Account E (the "Account")
is a separate investment account of American Skandia Life Assurance Corporation
("American Skandia"). The Account is registered with the SEC under the
Investment Company Act of 1940 as a unit investment trust. The account commenced
operations January 8, 1993.
As of December 31, 1995 the Account consisted of four sub-accounts, each of
which invests only in a single corresponding portfolio of The Galaxy VIP Fund
(the "Fund"). The investment advisor is paid a fee by the above mentioned Fund.
2. VALUATION OF INVESTMENTS
The market value of the investments in the sub-accounts is based on the net
asset values of the Fund Shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a first-in first-out basis.
3. INCOME TAXES
American Skandia does not expect to incur any Federal income tax liability on
earnings, or realized capital gains attributable to the Account, therefore, no
charges for Federal income taxes are currently deducted from the Account. If
American Skandia incurs income taxes attributable to the Account, or determines
that such taxes will be incurred, it may make a charge for such taxes against
the Account.
Under current laws, American Skandia may incur state and local income taxes (in
addition to premium tax) in several states. The Company does not anticipate that
these will be significant. However, American Skandia may make charges to the
Account in the event that the amount of these taxes change.
4. CONTRACT CHARGES
The following contract charges are paid to American Skandia:
Mortality and
Expense Risk
Charges -- Charged
daily against the
Account at an annual
rate of .40% of the
net assets.
Administration
Fee -- Charged daily
against the Account
at an annual rate of
.15% of the net
assets. A
Maintenance fee
equaling the smaller
of $30 or 2% of
contract value is
deducted at the end
of each contract
year and upon
surrender if
contract value at
the valuation period
such fee is payable
is less than
$50,000.
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (CON'T)
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5. CHANGES IN THE UNITS OUTSTANDING
<TABLE>
<CAPTION>
-----------------------------------------------------------
SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------
GAL - MONEY MARKET GAL - EQUITY
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Year................... 1,257,546 1,063,152 1,818,564 1,246,452
Units Purchased........................................... 786,775 1,273,081 332,502 273,424
Units Transferred Between Sub-accounts.................... (189,169) (654,346) 73,483 443,530
Units Surrendered......................................... (505,080) (424,341) (104,739) (144,842)
-------- -------- -------- --------
Units Outstanding End of the Year......................... 1,350,072 1,257,546 2,119,810 1,818,564
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
GAL - HIGH QUALITY BOND GAL - ASSET ALLOCATION
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Year................... 811,254 929,546 1,037,131 1,126,518
Units Purchased........................................... 105,311 74,133 202,360 162,294
Units Transferred Between Sub-accounts.................... 47,507 55,715 54,610 145,989
Units Surrendered......................................... (133,677) (248,139) (157,195) (397,670)
-------- -------- -------- --------
Units Outstanding End of the Year......................... 830,395 811,254 1,136,906 1,037,131
======== ======== ======== ========
</TABLE>
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[GALAXY VIP FUND LOGO]
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Box 5108
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