<PAGE>
AIM/CIGNA
Heritage
- ------------------
ANNUAL REPORT
December 31, 1995
A Lasting Investment
Structure for the
Retirement of Your Life
[LOGO APPEARS
HERE]
<PAGE>
<TABLE>
TABLE OF CONTENTS
<S> <C>
Letter To Our Clients.................................................... 1
CG Variable Annuity Separate Account
Financial Statements................................................... 2
Notes to Financial Statements.......................................... 11
Report of Independent Accountants...................................... 13
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund..................................... 14
AIM V.I. Diversified Income Fund....................................... 28
AIM V.I. Global Utilities Fund......................................... 40
AIM V.I. Government Securities Fund.................................... 52
AIM V.I. Growth Fund................................................... 60
AIM V.I. Growth and Income Fund........................................ 75
AIM V.I. International Equity Fund..................................... 89
AIM V.I. Money Market Fund............................................. 101
AIM V.I. Value Fund.................................................... 107
Directors and Officers of the Funds.................................... Inside
Back
Cover
</TABLE>
<PAGE>
Letter To Our Clients
Dear Client:
It is a pleasure to report on the strong performance of the AIM/CIGNA Heritage
Variable Annuity for the 11 months ended December 31, 1995. Please note that
the end of the fiscal year has been changed from January 31 to December 31. All
of the active investment vehicles underlying your annuity increased in value in
1995, including an increase in accumulation unit values of more than 35% for
the Capital Appreciation Fund and gains of more than 30% for the Value, Growth
and the Growth and Income Funds.
The last year was an essentially positive one for the U.S. economy, marked by
healthy corporate profits, mild inflation and moderate growth. Both the U.S.
bond market and the domestic equity market moved upward steadily. The Mexican
financial crisis and various other factors caused attention to shift from
higher risk investment opportunities, particularly abroad, to safer, more
traditional investments at home. The Federal Reserve very gradually eased
credit conditions from the peak of restraint reached in February of 1995.
The bond market experienced one of the strongest rallies on record, spurred by
sharply declining interest rates, mild inflation, and a renewed confidence in
dollar investments. Average bond yields dropped steadily throughout the year.
Of particular significance, the yield on the benchmark 30-year Treasury bond
fell to 5.95% by year end, from 7.88% at the close of 1994. Like the U.S. bond
market, the domestic equity market moved upward with hardly a pause and the Dow
Jones Industrial Average breached two milestones--4000 in February and 5000 in
November. Foreign equity markets, in general, moved ahead for the year, but not
as vigorously as U.S. markets.
Although U.S. investment markets ended the year on a strong note, there was
some discomfort with the economy, including concerns about the potential impact
of the budget conflict. Most analysts and market watchers agree that 1995 will
be a hard act to follow although certain positive factors remain, including the
potential for continued corporate earnings growth. The term "cautious optimism"
best describes the economic and investment outlook as we move forward into
1996.
The following is a summary of sub-account performance for the 11 months ended
December 31, 1995.
AIM/CIGNA HERITAGE 12/31/95
<TABLE>
<CAPTION>
1/31/95 12/31/95 ELEVEN PRODUCT
ACCUMULATION ACCUMULATION MONTH INCEPTION*
SUB-ACCOUNT UNIT VALUE UNIT VALUE % CHANGE % CHANGE
<S> <C> <C> <C> <C>
AIM V.I. Capital Appreciation 11.73552614 15.92378352 35.7% 59.2%
AIM V.I. Diversified Income 9.93099697 11.58511339 16.7% 15.9%
AIM V.I. Global Utilities** 10.23506635 12.50840432 22.2% 25.1%
AIM V.I. Government
Securities 9.77511075 10.99124674 12.4% 9.9%
AIM V.I. Growth 10.49090794 13.97787385 33.2% 39.8%
AIM V.I. Growth and Income** 10.21572537 13.38512650 31.0% 33.9%
AIM V.I. International Equity 10.73834133 13.15613040 22.5% 31.6%
AIM V.I. Money Market 10.37828057 10.77544248 3.8% 7.8%
AIM V.I. Value 11.52168559 15.50537319 34.6% 55.1%
* June 1, 1993 Initial Product Offering Date of the AIM/CIGNA Heritage Variable Annuity
** May 2, 1994 Inception Date
</TABLE>
To review the performances and portfolios of mutual funds in the AIM/CIGNA
Heritage Variable Annuity, please refer to the financial statements beginning
on page 2.
As always, we will continue to do our utmost in providing for your long-term
financial security.
Respectfully submitted,
Thomas C. Jones
President
CIGNA Individual Insurance
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. CAPITAL
APPRECIATION
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Capital
Appreciation portfolio at value.............................. $210,469,276
Receivable from Connecticut General Life Insurance Company.... 269,013
------------
Total assets................................................ 210,738,289
------------
LIABILITIES:
Payable for fund shares purchased............................. 269,013
------------
Net assets.................................................. $210,469,276
============
Accumulation units outstanding................................ 13,216,713
Net asset value per accumulation unit......................... $15.92378352
Accumulation net assets....................................... $210,460,077
Annuity reserves.............................................. 9,199
============
$210,469,276
============
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends...................................................... $ 45,004
EXPENSES:
Mortality and expense risk and administrative charges.......... 1,821,225
-----------
Net investment loss.......................................... (1,776,221)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss.............................................. (185,467)
Net unrealized gain............................................ 37,366,222
-----------
Net realized and unrealized gain on investments.............. 37,180,755
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $35,404,534
===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................ $ (1,776,221) $ (593,920)
Net realized loss.............................. (185,467) (66,662)
Net unrealized gain (loss)..................... 37,366,222 (1,528,246)
------------ -----------
Net increase (decrease) from operations...... 35,404,534 (2,188,828)
------------ -----------
ACCUMULATION AND ANNUITY UNIT TRANSACTIONS:
Participant deposits........................... 75,416,433 47,861,215
Participant transfers.......................... 16,533,461 10,713,993
Participant withdrawals and annuity payments... (5,071,327) (2,295,908)
------------ -----------
Net increase from participant transactions... 86,878,567 56,279,300
------------ -----------
Total increase in net assets............... 122,283,101 54,090,472
------------ -----------
NET ASSETS:
Beginning of period............................ 88,186,175 34,095,703
------------ -----------
End of period.................................. $210,469,276 $88,186,175
============ ===========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 5,006,509 4,063,706
Participant transfers.......................... 1,041,696 891,878
Participant withdrawals........................ (345,299) (195,780)
------------ -----------
Net increase in units from participant
transactions................................ 5,702,906 4,759,804
============ ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
2
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. DIVERSIFIED
INCOME
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. -
Diversified Income portfolio at value........................ $ 43,419,012
Receivable for fund shares sold............................... 17,298
------------
Total assets................................................ 43,436,310
------------
LIABILITIES:
Payable to Connecticut General Life Insurance Company ........ 17,298
------------
$ 43,419,012
============
Accumulation units outstanding................................ 3,747,828
Net asset value per accumulation unit......................... $11.58511339
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends........................................................ $2,795,670
EXPENSES:
Mortality and expense risk and administrative charges............ 420,074
----------
Net investment income.......................................... 2,375,596
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain................................................ 9,483
Net unrealized gain.............................................. 2,580,177
----------
Net realized and unrealized gain on investments................ 2,589,660
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $4,965,256
==========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income.......................... $ 2,375,596 $ 1,106,983
Net realized gain (loss)....................... 9,483 (6,208)
Net unrealized gain (loss)..................... 2,580,177 (2,270,380)
----------- -----------
Net increase (decrease) from operations...... 4,965,256 (1,169,605)
----------- -----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................... 10,812,192 12,974,053
Participant transfers.......................... 5,634,473 1,408,408
Participant withdrawals........................ (2,244,711) (1,327,049)
----------- -----------
Net increase from participant transactions... 14,201,954 13,055,412
----------- -----------
Total increase in net assets............... 19,167,210 11,885,807
----------- -----------
NET ASSETS:
Beginning of period............................ 24,251,802 12,365,995
----------- -----------
End of period.................................. $43,419,012 $24,251,802
=========== ===========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 986,223 1,279,685
Participant transfers.......................... 527,843 144,996
Participant withdrawals........................ (208,269) (133,101)
----------- -----------
Net increase in units from participant
transactions................................ 1,305,797 1,291,580
=========== ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
3
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. GLOBAL
UTILITIES
SUB-ACCOUNT*
FINANCIAL
STATEMENTS
<TABLE>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Global
Utilities portfolio at value................................. $ 7,146,302
Receivable from Connecticut General Life Insurance Company.... 31,966
------------
Total assets................................................ 7,178,268
------------
LIABILITIES:
Payable for fund shares purchased............................. 31,966
------------
Net assets.................................................. $ 7,146,302
============
Accumulation units outstanding................................ 571,320
Net asset value per accumulation unit......................... $12.50840432
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................................................... $153,565
EXPENSES:
Mortality and expense risk and administrative charges............. 50,920
--------
Net investment income........................................... 102,645
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Capital distribution from portfolio sponsor....................... 7,930
Realized gain on share transactions............................... 15,042
--------
Net realized gain................................................. 22,972
Net unrealized gain............................................... 776,711
--------
Net realized and unrealized gain on investments................. 799,683
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $902,328
========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM PERIOD FROM
FEBRUARY 1, 1995 MAY 11, 1994**
STATEMENT OF CHANGES IN NET ASSETS TO TO
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income.......................... $102,645 $ 21,588
Net realized gain (loss)....................... 22,972 (52)
Net unrealized gain (loss)..................... 776,711 (8,552)
---------- ----------
Net increase from operations................. 902,328 12,984
---------- ----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................... 3,456,984 1,473,651
Participant transfers.......................... 1,139,686 484,260
Participant withdrawals........................ (300,061) (23,530)
---------- ----------
Net increase from participant transactions... 4,296,609 1,934,381
---------- ----------
Total increase in net assets............... 5,198,937 1,947,365
---------- ----------
NET ASSETS:
Beginning of period............................ 1,947,365 --
---------- ----------
End of period.................................. $7,146,302 $1,947,365
========== ==========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 303,996 145,002
Participant transfers.......................... 104,156 47,601
Participant withdrawals........................ (27,096) (2,339)
---------- ----------
Net increase in units from participant
transactions................................ 381,056 190,264
========== ==========
</TABLE>
* Formerly AIM V.I. Utilities Sub-Account
** Date deposits first received
The Notes to Financial Statements are an integral part of these statements.
4
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. GOVERNMENT
SECURITIES
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc.- Government
Securities portfolio at value................................ $ 18,388,202
Receivable for fund shares sold............................... 8,670
------------
Total assets................................................ 18,396,872
------------
LIABILITIES:
Payable to Connecticut General Life Insurance Company......... 8,670
------------
Net assets.................................................. $ 18,388,202
============
Accumulation units outstanding................................ 1,672,986
Net asset value per accumulation unit......................... $10.99124674
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends........................................................ $ 797,759
EXPENSES:
Mortality and expense risk and administrative charges............ 178,350
----------
Net investment income.......................................... 619,409
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain................................................ 9,074
Net unrealized gain.............................................. 1,067,582
----------
Net realized and unrealized gain on investments................ 1,076,656
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $1,696,065
==========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income.......................... $ 619,409 $ 421,968
Net realized gain (loss)....................... 9,074 (9,420)
Net unrealized gain (loss)..................... 1,067,582 (848,124)
----------- -----------
Net increase (decrease) from operations...... 1,696,065 (435,576)
----------- -----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................... 4,464,331 5,389,472
Participant transfers.......................... 1,401,722 614,767
Participant withdrawals........................ (1,045,358) (2,248,900)
----------- -----------
Net increase from participant transactions... 4,820,695 3,755,339
----------- -----------
Total increase in net assets............... 6,516,760 3,319,763
----------- -----------
NET ASSETS:
Beginning of period............................ 11,871,442 8,551,679
----------- -----------
End of period.................................. $18,388,202 $11,871,442
=========== ===========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 423,722 550,168
Participant transfers.......................... 134,953 63,574
Participant withdrawals........................ (100,145) (232,804)
----------- -----------
Net increase in units from participant
transactions................................ 458,530 380,938
=========== ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
5
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. GROWTH
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Growth
portfolio at value........................................... $102,625,704
Receivable from Connecticut General Life Insurance Company.... 88,795
------------
Total assets................................................ 102,714,499
------------
LIABILITIES:
Payable for fund shares purchased............................. 88,795
------------
Net assets.................................................. $102,625,704
============
Accumulation units outstanding................................ 7,342,011
Net asset value per accumulation unit......................... $13.97787385
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends...................................................... $ 48,608
EXPENSES:
Mortality and expense risk and administrative charges.......... 900,822
-----------
Net investment loss.......................................... (852,214)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss.............................................. (8,433)
Net unrealized gain............................................ 18,487,083
-----------
Net realized and unrealized gain on investments.............. 18,478,650
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $17,626,436
===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................ $ (852,214) $ (258,370)
Net realized loss.............................. (8,433) (1,456)
Net unrealized gain (loss)..................... 18,487,083 (2,020,293)
------------ -----------
Net increase (decrease) from operations...... 17,626,436 (2,280,119)
------------ -----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................... 32,668,572 20,375,982
Participant transfers.......................... 9,479,797 5,252,277
Participant withdrawals........................ (2,651,893) (1,809,246)
------------ -----------
Net increase from participant transactions... 39,496,476 23,819,013
------------ -----------
Total increase in net assets............... 57,122,912 21,538,894
------------ -----------
NET ASSETS:
Beginning of period............................ 45,502,792 23,963,898
------------ -----------
End of period.................................. $102,625,704 $45,502,792
============ ===========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 2,484,497 1,915,861
Participant transfers.......................... 722,364 500,502
Participant withdrawals........................ (202,205) (172,245)
------------ -----------
Net increase in units from participant
transactions................................ 3,004,656 2,244,118
============ ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
6
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. GROWTH
AND INCOME
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Growth and
Income portfolio at value.................................... $ 37,208,135
Receivable from Connecticut General Life Insurance Company.... 126,847
------------
Total assets................................................ 37,334,982
------------
LIABILITIES:
Payable for fund shares purchased............................. 126,847
------------
Net assets.................................................. $ 37,208,135
============
Accumulation units outstanding................................ 2,779,812
Net asset value per accumulation unit......................... $13.38512650
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends....................................................... $ 311,799
EXPENSES:
Mortality and expense risk and administrative charges........... 220,231
----------
Net investment income......................................... 91,568
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Capital distribution from portfolio sponsor..................... 1,073,273
Realized gain on share transactions............................. 221
----------
Net realized gain............................................... 1,073,494
Net unrealized gain............................................. 2,522,533
----------
Net realized and unrealized gain on investments............... 3,596,027
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $3,687,595
==========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM PERIOD FROM
FEBRUARY 1, 1995 MAY 11, 1994*
STATEMENT OF CHANGES IN NET ASSETS TO TO
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income.......................... $ 91,568 $ 18,146
Net realized gain.............................. 1,073,494 898
Net unrealized gain (loss)..................... 2,522,533 (42,533)
----------- ----------
Net increase (decrease) from operations...... 3,687,595 (23,489)
----------- ----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................... 21,652,744 4,650,433
Participant transfers.......................... 6,032,618 1,973,321
Participant withdrawals........................ (524,244) (240,843)
----------- ----------
Net increase from participant transactions... 27,161,118 6,382,911
----------- ----------
Total increase in net assets............... 30,848,713 6,359,422
----------- ----------
NET ASSETS:
Beginning of period............................ 6,359,422 --
----------- ----------
End of period.................................. $37,208,135 $6,359,422
=========== ==========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 1,718,553 453,278
Participant transfers.......................... 480,720 192,739
Participant withdrawals........................ (41,974) (23,504)
----------- ----------
Net increase in units from participant
transactions................................ 2,157,299 622,513
=========== ==========
</TABLE>
*Date deposits first received
The Notes to Financial Statements are an integral part of these statements.
7
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. INTERNATIONAL
EQUITY
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. -
International Equity portfolio at value...................... $ 82,231,131
Receivable from Connecticut General Life Insurance Company.... 136,070
------------
Total assets................................................ 82,367,201
------------
LIABILITIES:
Payable for fund shares purchased............................. 136,070
------------
Net assets.................................................. $ 82,231,131
============
Accumulation units outstanding................................ 6,249,610
Net asset value per accumulation unit......................... $13.15613040
Accumulation net assets....................................... $ 82,220,684
Annuity reserves.............................................. 10,447
============
$ 82,231,131
============
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends...................................................... $ 123,270
EXPENSES:
Mortality and expense risk and administrative charges.......... 822,709
-----------
Net investment loss.......................................... (699,439)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain.............................................. 70,775
Net unrealized gain............................................ 13,573,062
-----------
Net realized and unrealized gain on investments.............. 13,643,837
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $12,944,398
===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................ $ (699,439) $ (449,995)
Net realized gain (loss)....................... 70,775 (5,996)
Net unrealized gain (loss)..................... 13,573,062 (5,586,224)
----------- -----------
Net increase (decrease) from operations...... 12,944,398 (6,042,215)
----------- -----------
ACCUMULATION AND ANNUITY UNIT TRANSACTIONS:
Participant deposits........................... 22,515,674 33,888,206
Participant transfers.......................... (4,928,544) 6,567,073
Participant withdrawals and annuity payments... (3,340,047) (1,662,700)
----------- -----------
Net increase from participant transactions... 14,247,083 38,792,579
----------- -----------
Total increase in net assets............... 27,191,481 32,750,364
----------- -----------
NET ASSETS:
Beginning of period............................ 55,039,650 22,289,286
----------- -----------
End of period.................................. $82,231,131 $55,039,650
=========== ===========
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 1,821,338 2,901,379
Participant transfers.......................... (418,823) 554,755
Participant withdrawals........................ (277,532) (144,171)
----------- -----------
Net increase in units from participant
transactions................................ 1,124,983 3,311,963
=========== ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
8
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. MONEY
MARKET
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Money
Market portfolio at value.................................... $ 65,466,418
Receivable from Connecticut General Life Insurance Company.... 347,290
------------
Total assets................................................ 65,813,708
------------
LIABILITIES:
Payable for fund shares purchased............................. 347,290
------------
Net assets.................................................. $ 65,466,418
============
Accumulation units outstanding................................ 6,071,486
Net asset value per accumulation unit......................... $10.77544248
Accumulation net assets....................................... $ 65,422,948
Annuity reserves.............................................. 43,470
============
$ 65,466,418
============
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends........................................................ $2,275,535
EXPENSES:
Mortality and expense risk and administrative charges............ 568,817
----------
Net investment income.......................................... 1,706,718
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $1,706,718
==========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income.......................... $ 1,706,718 $ 797,659
------------ ------------
ACCUMULATION AND ANNUITY UNIT TRANSACTIONS:
Participant deposits........................... 90,031,694 63,480,794
Participant transfers.......................... (53,839,727) (44,489,039)
Participant withdrawals and annuity payments... (3,395,341) (1,598,683)
------------ ------------
Net increase from participant transactions... 32,796,626 17,393,072
------------ ------------
Total increase in net assets............... 34,503,344 18,190,731
------------ ------------
NET ASSETS:
Beginning of period............................ 30,963,074 12,772,343
------------ ------------
End of period.................................. $ 65,466,418 $ 30,963,074
============ ============
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 8,480,343 6,221,992
Participant transfers.......................... (5,068,522) (4,353,875)
Participant withdrawals........................ (319,563) (155,530)
------------ ------------
Net increase in units from participant
transactions................................ 3,092,258 1,712,587
============ ============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
9
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
AIM V.I. VALUE
SUB-ACCOUNT
FINANCIAL
STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in AIM Variable Insurance Funds, Inc. - Value
portfolio at value........................................... $257,264,665
Receivable from Connecticut General Life Insurance Company.... 160,376
------------
Total assets................................................ 257,425,041
------------
LIABILITIES:
Payable for fund shares purchased............................. 160,376
------------
Net assets.................................................. $257,264,665
============
Accumulation units outstanding................................ 16,590,052
Net asset value per accumulation unit......................... $15.50537319
Accumulation net assets....................................... $257,234,948
Annuity reserves.............................................. 29,717
============
$257,264,665
============
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF OPERATIONS
PERIOD FROM FEBRUARY 1, 1995 TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends...................................................... $ 124,487
EXPENSES:
Mortality and expense risk and administrative charges.......... 2,234,613
-----------
Net investment loss.......................................... (2,110,126)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain.............................................. 2,326
Net unrealized gain............................................ 46,641,463
-----------
Net realized and unrealized gain on investments.............. 46,643,789
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $44,533,663
===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM
FEBRUARY 1, 1995
STATEMENT OF CHANGES IN NET ASSETS TO YEAR ENDED
DECEMBER 31, 1995 JANUARY 31, 1995
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................ $(2,110,126) $ (247,487)
Net realized gain (loss)....................... 2,326 (2,944)
Net unrealized gain (loss)..................... 46,641,463 (1,118,759)
------------ ------------
Net increase (decrease) from operations...... 44,533,663 (1,369,190)
------------ ------------
ACCUMULATION AND ANNUITY UNIT TRANSACTIONS:
Participant deposits........................... 93,272,878 62,651,212
Participant transfers.......................... 17,331,114 14,822,577
Participant withdrawals and annuity payments... (7,116,527) (3,886,817)
------------ ------------
Net increase from participant transactions... 103,487,465 73,586,972
------------ ------------
Total increase in net assets............... 148,021,128 72,217,782
------------ ------------
NET ASSETS:
Beginning of period............................ 109,243,537 37,025,755
------------ ------------
End of period.................................. $257,264,665 $109,243,537
============ ============
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN
UNITS):
Participant deposits........................... 6,429,791 5,430,406
Participant transfers.......................... 1,180,159 1,281,113
Participant withdrawals........................ (499,393) (337,807)
------------ ------------
Net increase in units from participant
transactions................................ 7,110,557 6,373,712
============ ============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
10
<PAGE>
CG VARIABLE ANNUITY
SEPARATE ACCOUNT
NOTES TO FINANCIAL
STATEMENTS
December 31, 1995
1. ORGANIZATION
CG Variable Annuity Separate Account (the Account) is registered as a Unit
Investment Trust under the Investment Company Act of 1940, as amended. The
operations of the Account are part of the operations of Connecticut General
Life Insurance Company (CG Life). The assets and liabilities of the Account are
clearly identified and distinguished from other assets and liabilities of CG
Life. The assets of the Account are not available to meet the general
obligations of CG Life and are held for the exclusive benefit of the
participants.
During 1995, the Account changed its fiscal year end from January 31 to
December 31, effective in the year beginning January 1, 1996. Accordingly, the
accompanying financial statements include the eleven month transition period
ended December 31, 1995.
The assets of the Account are divided into variable sub-accounts invested in
shares of a specific series of the AIM Variable Insurance Funds, Inc. (the
Fund), a mutual fund. Nine sub-accounts are currently available for investment
within the Account: AIM V.I. Capital Appreciation Fund; AIM V.I. Diversified
Income Fund; AIM V.I. Global Utilities Fund (formerly named AIM V.I. Utilities
Fund); AIM V.I. Government Securities Fund; AIM V.I. Growth Fund; AIM V.I.
Growth and Income Fund; AIM V.I. International Equity Fund; AIM V.I. Money
Market Fund; and AIM V.I. Value Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in conformity with generally
accepted accounting principles. The following is a summary of significant
accounting policies consistently followed in the preparation of the Account's
financial statements.
A. Investment Valuation:- Investments held by the sub-accounts are valued at
their respective closing net asset value per share as determined by the Fund
as of December 29, 1995, the last business day of 1995. The change in the
difference between cost and value is reflected as unrealized gain (loss) in
the Statements of Operations.
B. Investment Transactions:- Investment transactions are recorded on the trade
date (date the order to buy or sell is executed). Realized gains and losses
on sales of investments are determined by the last-in, first-out cost basis
of the investment sold. Dividend and capital gain distributions are recorded
on the ex-dividend date. Investment transactions are settled through CG
Life.
C. Federal Income Taxes:- The operations of the Account form a part of, and are
taxed with, the total operations of CG Life, which is taxed as a life
insurance company. Under existing federal income tax law, investment income
(dividends) and capital gains attributable to the Account are not taxed.
D. Annuity Reserves:- The amount of annuity reserves is determined by actuarial
assumptions which meet statutory requirements. Gains or losses resulting from
actual mortality experience, the responsibility for which is assumed by CG
Life, are offset by transfers to or from CG Life.
3. INVESTMENTS
Total shares held and cost of investments at December 31, 1995 were:
<TABLE>
<CAPTION>
Shares Cost Of
AIM V.I. Sub-Account Held Investments
- -------------------- ------ ------------
<S> <C> <C>
Capital Appreciation.................................... 12,717,177 $171,208,303
Diversified Income...................................... 4,341,901 42,998,616
Global Utilities........................................ 613,943 6,378,143
Government Securities................................... 1,808,083 18,132,154
Growth.................................................. 7,107,043 84,698,235
Growth and Income....................................... 2,934,395 34,728,135
International Equity.................................... 6,019,849 72,001,262
Money Market............................................ 65,466,418 65,466,418
Value................................................... 15,969,253 208,732,503
</TABLE>
Total purchases and sales of shares of the Fund, for the period February 1,
1995 to December 31, 1995, amounted to:
<TABLE>
<CAPTION>
AIM V.I. Sub-Account Purchases Sales
- -------------------- ----------- -----------
<S> <C> <C>
Capital Appreciation $94,966,376 $ 9,864,030
Diversified Income 20,694,829 4,117,279
Global Utilities 5,843,708 1,436,524
Government Securities 7,744,986 2,304,882
Growth 41,798,023 3,153,761
Growth and Income 28,573,966 248,007
International Equity 20,721,921 7,174,277
Money Market 82,392,403 47,889,059
Value 103,768,298 2,390,959
</TABLE>
11
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT NOTES TO FINANCIAL STATEMENTS
(continued)
December 31, 1995
4. CHARGES AND DEDUCTIONS:
CG Life assumes the risk that annuitants as a class may live longer than
expected and also assumes a mortality risk in connection with the death
benefits of the contract. CG Life also assumes a risk that its actual
administrative expenses may be higher than amounts deducted for such expenses.
CG Life charges each variable sub-account the daily equivalent of 1.25%
(approximately .75% for mortality risks and approximately .50% for expense
risks), on an annual basis, of the current value of each sub-account's assets
for the assumption of these risks.
CG Life also deducts a daily administrative fee from the assets of each
variable sub-account as partial reimbursement for administrative expenses
relating to the issuance and maintenance of the contract and the participant's
annuity account. This charge is currently at an effective annual rate of .10%.
As partial compensation for administrative services provided, CG Life
additionally receives a $35 annuity account fee per year from each contract.
This charge is deducted from the fixed or variable sub-account of the
participant or on a pro-rata basis from two or more fixed or variable sub-
accounts in relation to their values under the contract. Fixed sub-accounts are
part of the general account of CG Life and are not included in these financial
statements.
The fees charged by CG Life for mortality and expense risks, administrative
fees and the amount deducted for annuity account fees, (included in participant
withdrawals), from variable sub-accounts, for the period from February 1, 1995
to December 31, 1995, amounted to:
<TABLE>
<CAPTION>
Mortality Asset Based Annuity
and Expense Administrative Account
AIM V.I. Sub-Account Risk Fees Fees Fees
- -------------------- ----------- -------------- --------
<S> <C> <C> <C>
Capital Appreciation $1,686,319 $134,906 $101,006
Diversified Income 388,957 31,117 15,912
Global Utilities 47,148 3,772 2,064
Government Securities 165,139 13,211 6,711
Growth 834,094 66,728 47,673
Growth and Income 203,917 16,314 11,055
International Equity 761,768 60,941 42,019
Money Market 526,683 42,134 18,420
Value 2,069,087 165,526 119,935
</TABLE>
No deduction for sales charges is made from a premium payment. However, if a
cash withdrawal is made, a withdrawal charge (contingent deferred sales charge)
may be assessed by CG Life. The withdrawal charge, if assessed, varies from 0-
7% depending upon the duration of each contract deposit. The withdrawal charge
is deducted from withdrawal proceeds for full withdrawals and reduces the
remaining account value for partial withdrawals. These charges are paid to CG
Life as reimbursement for services provided. These services include commissions
paid to sales personnel, the costs of preparation of sales literature and other
promotional costs and acquisition expenses. Withdrawal charges paid to CG Life
for the variable sub-accounts, for the period from February 1, 1995 to December
31, 1995, amounted to $521,227.
5. DISTRIBUTION OF NET INCOME
The Account does not expect to declare dividends to participants from
accumulated net income. The accumulated net income is distributed to
participants as part of surrenders, death benefits, transfers to other fixed or
variable sub-accounts or annuity payments in excess of net purchase payments.
6. DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code of 1986
(the Code), a variable annuity contract, other than a contract issued in
connection with certain types of employee benefit plans, will not be treated as
an annuity contract for federal tax purposes for any period for which the
investments of the segregated asset account, on which the contract is based,
are not adequately diversified. The Code provides that the "adequately
diversified" requirement may be met if the underlying investments satisfy
either a statutory safe habor test or diversification requirements set forth in
regulations issued by the Secretary of the Treasury. CG Life believes, based on
assurances from the Fund, that the Fund satisfies the requirements of the
regulations.
12
<PAGE>
REPORT OF
INDEPENDENT
ACCOUNTANTS
To the Board of Directors of Connecticut General
Life Insurance Company and Participants of the
CG Variable Annuity Separate Account
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly,
in all material respects, the financial position of each of the sub-accounts
AIM V.I. Capital Appreciation, AIM V.I. Diversified Income, AIM V.I. Global
Utilities (formerly AIM V.I. Utilities), AIM V.I. Government Securities, AIM
V.I. Growth, AIM V.I. Growth and Income, AIM V.I. International Equity, AIM
V.I. Money Market, and AIM V.I. Value (constituting the CG Variable Annuity
Separate Account, hereafter referred to as "the Account") at December 31, 1995,
and the results of each of their operations and the changes in each of their
net assets for each of the periods indicated, in conformity with generally
accepted accounting principles. 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 of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
Hartford, Connecticut
February 26, 1996
13
<PAGE>
The mutual fund annual report is incorporated herein by reference. It has been
electronically filed with the Securities and Exchange Commission in connection
with the named entity's status as a registered investment company under the
Investment Company Act of 1940.
AIM/CIGNA Heritage Annual Report, December 31, 1995, consisting of pages
numbered 14-120. Filed: March 6, 1996, Form Type N-30D, Registration Statement
811-07452.
<PAGE>
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund
AIM V.I. Diversified Income Fund
AIM V.I. Global Utilities Fund*
AIM V.I. Government Securities Fund
AIM V.I. Growth Fund
AIM V.I. Growth and Income Fund
AIM V.I. International Equity Fund
AIM V.I. Money Market Fund
AIM V.I. Value Fund
*On May 1, 1995, AIM V.I. Utilities Fund broadened its investment strategy to
permit up to 80% of its total assets to be invested in foreign securities, and
was renamed AIM V.I. Global Utilities Fund. This report may be distributed only
to current shareholders or to persons who have received a current prospectus of
the Variable Annuity.
[AIM LOGO [CIGNA LOGO
APPEARS A I M Distributors, Inc. APPEARS
HERE] HERE]
