<PAGE>
STAG VARIABLE LIFE ARTISAN
SEPARATE ACCOUNT VL I
HARTFORD LIFE INSURANCE COMPANY
SUPPLEMENT DATED JANUARY 2, 2001 TO PROSPECTUS DATED MAY 1, 2000
Effective January 15, 2001 the following changes apply:
The following Sub-Accounts are added in alphabetical order to the cover page of
the prospectus:
- AMERICAN FUNDS GLOBAL GROWTH FUND SUB-ACCOUNT Class 2 of the Global Growth
Fund of American Funds Insurance Series
- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND SUB-ACCOUNT Class 2 of the
Global Small Capitalization Fund of American Funds Insurance Series
- AMERICAN FUNDS GROWTH FUND SUB-ACCOUNT Class 2 of the Growth Fund of American
Funds Insurance Series
- AMERICAN FUNDS GROWTH-INCOME FUND SUB-ACCOUNT Class 2 of the Growth-Income
Fund of American Funds Insurance Series
- HARTFORD GLOBAL LEADERS SUB-ACCOUNT Class IA of Hartford Global Leaders
HLS Fund of Hartford Series Fund, Inc.
- HARTFORD GLOBAL TECHNOLOGY SUB-ACCOUNT Class IA of Hartford Global Technology
HLS Fund of Hartford Series Fund, Inc.
Under the section entitled "Summary of Benefits and Risks", the paragraph
entitled "Investment Choices" is deleted and replaced with the following:
INVESTMENT CHOICES -- You may invest in up to 9 different investment choices
within your policy, from a choice of 42 investment options and a Fixed Account.
You may transfer money among your investment choices, subject to restrictions.
The table of Annual Fund Operating Expenses is deleted and replaced with the
following:
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR ANY
WAIVERS) WAIVERS) REIMBURSEMENTS) REIMBURSEMENTS)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
American Funds Global Growth Fund 0.68% 0.25% 0.03% 0.96%
---------------------------------------------------------------------------------------------------------------------------
American Funds Global Small Capitalization Fund 0.79% 0.25% 0.03% 1.07%
---------------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund 0.38% 0.25% 0.01% 0.64%
---------------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income Fund 0.34% 0.25% 0.01% 0.60%
---------------------------------------------------------------------------------------------------------------------------
Hartford Advisers HLS Fund 0.63% N/A 0.02% 0.65%
---------------------------------------------------------------------------------------------------------------------------
Hartford Bond HLS Fund 0.49% N/A 0.03% 0.52%
---------------------------------------------------------------------------------------------------------------------------
Hartford Capital Appreciation HLS Fund 0.64% N/A 0.02% 0.66%
---------------------------------------------------------------------------------------------------------------------------
Hartford Dividend and Growth HLS Fund 0.65% N/A 0.03% 0.68%
---------------------------------------------------------------------------------------------------------------------------
Hartford Global Leaders HLS Fund 0.74% N/A 0.12% 0.86%
---------------------------------------------------------------------------------------------------------------------------
Hartford Global Technology HLS Fund (1) 0.85% N/A 0.25% 1.10%
---------------------------------------------------------------------------------------------------------------------------
Hartford Growth and Income HLS Fund 0.78% N/A 0.04% 0.82%
---------------------------------------------------------------------------------------------------------------------------
Hartford Index HLS Fund 0.40% N/A 0.03% 0.43%
---------------------------------------------------------------------------------------------------------------------------
Hartford International Advisers HLS Fund 0.76% N/A 0.09% 0.85%
---------------------------------------------------------------------------------------------------------------------------
Hartford International Opportunities HLS Fund 0.69% N/A 0.09% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Hartford MidCap HLS Fund 0.76% N/A 0.03% 0.79%
---------------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.45% N/A 0.02% 0.47%
---------------------------------------------------------------------------------------------------------------------------
Hartford Mortgage Securities HLS Fund 0.45% N/A 0.03% 0.48%
---------------------------------------------------------------------------------------------------------------------------
Hartford Small Company HLS Fund 0.75% N/A 0.03% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Hartford Stock HLS Fund 0.46% N/A 0.02% 0.48%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
HV-2861
333-07465 1 of 6
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR ANY
WAIVERS) WAIVERS) REIMBURSEMENTS) REIMBURSEMENTS)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.80% N/A 0.33% 1.13%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.68% N/A 0.10% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Asset Allocation Fund 0.65% N/A 0.12% 0.77%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.61% N/A 0.12% 0.73%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.46% N/A 0.04% 0.50%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Health Sciences Fund 0.70% N/A 0.13% 0.83%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT High Yield Fund 0.65% N/A 0.07% 0.72%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Income Fund 0.60% N/A 0.07% 0.67%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth Fund 0.80% N/A 0.22% 1.02%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth and Income Fund 0.80% N/A 0.18% 0.98%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International New Opportunities Fund 1.08% N/A 0.33% 1.41%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Investors Fund 0.63% N/A 0.08% 0.71%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Money Market Fund 0.41% N/A 0.08% 0.49%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.54% N/A 0.05% 0.59%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT New Value Fund 0.70% N/A 0.10% 0.80%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund (2) 0.53% N/A 0.37% 0.90%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston 0.65% N/A 0.18% 0.83%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund 0.65% N/A 0.06% 0.71%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Vista Fund 0.65% N/A 0.10% 0.75%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Voyager Fund 0.53% N/A 0.04% 0.57%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio (3) 0.53% N/A 0.09% 0.62%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio (3) 0.48% N/A 0.08% 0.56%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio (3) 0.73% N/A 0.14% 0.87%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Hartford Global Technology HLS Fund is a new fund. Total Fund Operating
Expenses are based on annualized estimates of such expenses to be incurred
during the current fiscal year.
(2) Total Annual Fund Operating Expenses for Putnam VT OTC & Emerging Growth
Fund reflect voluntary reductions and reimbursements through at least
December 31, 2000. Absent voluntary reductions and reimbursements, Total
Annual Fund Operating Expenses would have been as follows:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund 0.70% 0.37% 1.07%
--------------------------------------------------------------------------------------------------------
</TABLE>
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds
of FMR on behalf of certain funds' custodian, credits realized as a result
of uninvested cash balances were used to reduce a portion of each applicable
fund's expenses. These reductions will continue through at least
December 31, 2000 pursuant to an agreement between the adviser and the
funds. Without these reductions, Total Fund Operating Expenses would have
been:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio 0.53% 0.10% 0.63%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 0.48% 0.09% 0.57%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 0.73% 0.18% 0.91%
--------------------------------------------------------------------------------------------------------
</TABLE>
HV-2861 2 of 6
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
--------------------------------------------------------------------------------
The following is added in the section entitled "About Us" immediately following
the Hartford Ratings table:
These ratings apply to Hartford's ability to meet its obligations under the
Contract. The ratings do not apply to the Separate Account or the underlying
Funds.
Under the section entitled "The Funds", the following language is added in
alphabetical order:
AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of
capital by investing primarily in equity securities of smaller companies located
around the world that typically have market capitalization of $50 million to
$1.5 billion.
AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing
primarily in common stocks which demonstrate the potential for appreciation.
AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by
investing primarily in common stocks or other securities which demonstrate the
potential for appreciation and/or dividends.
HARTFORD GLOBAL LEADERS HLS FUND -- Seeks growth of capital by investing
primarily in equity securities issued through high-quality growth companies
worldwide that, in the opinion of Wellington Management, are leaders within
their respective industries as indicated by established market presence and
strong competitive position on a global, regional or country basis. Sub-advised
by Wellington Management.
HARTFORD GLOBAL TECHNOLOGY HLS FUND -- Seeks long-term capital appreciation by
investing in equity securities of technology companies worldwide. Sub-advised by
Wellington Management.
Under the section entitled "The Funds", under the sub-section entitled
"Investment Advisers," the following paragraph is inserted as the first
paragraph of the section:
American Funds Global Growth Fund, American Funds Global Small Capitalization
Fund, American Funds Growth Fund and American Funds Growth-Income Fund are all
part of American Funds Insurance Series. American Funds Insurance Series is a
fully managed, diversified, open-end investment company organized as a
Massachusetts business trust in 1983. American Funds Insurance Series offers two
classes of fund shares: Class 1 shares and Class 2 shares. This policy invests
only in Class 2 shares of American Funds Insurance Series. The investment
adviser for each of the funds of American Funds Insurance Series is Capital
Research and Management Company located at 333 South Hope Street, Los Angeles,
California 90071. Capital Research and Management Company is a wholly owned
subsidiary of The Capital Growth Companies, Inc.
Under the section entitled "Investment Advisers", the second paragraph is
deleted and replaced with the following:
Each Hartford HLS Fund, except for Hartford Global Leaders HLS Fund, Hartford
Global Technology HLS Fund and Hartford Growth and Income HLS Fund is a separate
Maryland corporation registered with the Securities and Exchange Commission as
an open-end management investment company. Hartford Global Leaders HLS Fund and
Hartford Growth and Income HLS Fund are diversified series of Hartford Series
Fund, Inc., a Maryland corporation, also registered with the Securities and
Exchange Commission as an open-end management investment company. Hartford
Global Technology HLS Fund is a non-diversified series of Hartford Series Fund,
Inc. The shares of each Fund have been divided into Class IA and Class IB. Only
Class IA shares are available in this policy.
The fourth paragraph under the sub-section entitled "Illustration of Death
Benefits, Account Values and Cash Surrender Values" in the section entitled
"Statement of Additional Information" is deleted and replaced with the
following:
The amounts shown for the Death Benefit, Account Value and Cash Surrender Value
as of the end of each Policy Year take into account an average daily charge
equal to an annual charge of 0.75% of the average daily net assets of the Funds
for investment advisory and administrative service fees. The gross annual
investment return rates of 0%, 6% and 12% on the Fund's assets are equal to net
annual investment return rates (net of the 0.75% average daily charge) of
-0.75%, 5.25% and 11.25%, respectively.
The three "Illustration of Death Benefits, Account Values and Cash Surrender
Values" tables in the section entitled "Statement of Additional Information" are
replaced with the attached three tables.
The attached Financial Statements are added to the section entitled "Statement
of Additional Information."
THIS SUPPLEMENT SHOULD BE RETAINED WITH THE PROSPECTUS FOR FUTURE REFERENCE.
HV-2861 3 of 6
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$3,250 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
1 3,413 2,280 0 250,000 2,280 0 250,000
2 6,996 4,929 1,929 250,000 4,832 1,832 250,000
3 10,758 7,793 4,793 250,000 7,583 4,583 250,000
4 14,708 10,891 7,891 250,000 10,547 7,547 250,000
5 18,856 14,316 11,316 250,000 13,743 10,743 250,000
6 23,212 18,027 15,327 250,000 17,186 14,486 250,000
7 27,785 22,069 19,669 250,000 20,891 18,491 250,000
8 32,586 26,472 24,372 250,000 24,873 22,773 250,000
9 37,628 31,268 29,468 250,000 29,151 27,351 250,000
10 42,922 36,497 34,997 250,000 33,744 32,244 250,000
11 48,481 42,627 41,442 250,000 38,830 37,645 250,000
12 54,317 49,462 48,562 250,000 44,322 43,422 250,000
13 60,446 56,971 56,371 250,000 50,266 49,666 250,000
14 66,880 65,230 64,930 250,000 56,707 56,407 250,000
15 73,637 74,322 74,172 250,000 63,692 63,542 250,000
16 80,731 84,345 84,345 250,000 71,279 71,279 250,000
17 88,180 95,412 95,412 250,000 79,535 79,535 250,000
18 96,002 107,648 107,648 250,000 88,530 88,530 250,000
19 104,214 121,204 121,204 250,000 98,353 98,353 250,000
20 112,838 136,258 136,258 250,000 109,114 109,114 250,000
25 162,869 220,600 220,600 255,896 160,003 160,003 250,000
30 226,723 365,254 365,254 390,822 250,304 250,304 267,825
----------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 2% in years 1 through 10
and 0% thereafter, and Guaranteed Front-End Sales Loads of 2% in all years. The
surrender charge effective in any year can be determined by subtracting the cash
surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2861 4 of 6
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$3,250 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -----------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
1 3,413 2,130 0 250,000 2,130 0 250,000
2 6,996 4,481 1,481 250,000 4,388 1,388 250,000
3 10,758 6,878 3,878 250,000 6,679 3,679 250,000
4 14,708 9,316 6,316 250,000 9,000 6,000 250,000
5 18,856 11,865 8,865 250,000 11,346 8,346 250,000
6 23,212 14,454 11,754 250,000 13,707 11,007 250,000
7 27,785 17,099 14,699 250,000 16,073 13,673 250,000
8 32,586 19,795 17,695 250,000 18,428 16,328 250,000
9 37,628 22,537 20,737 250,000 20,757 18,957 250,000
10 42,922 25,320 23,820 250,000 23,045 21,545 250,000
11 48,481 28,485 27,300 250,000 25,384 24,199 250,000
12 54,317 31,819 30,919 250,000 27,662 26,762 250,000
13 60,446 35,211 34,611 250,000 29,868 29,268 250,000
14 66,880 38,655 38,355 250,000 31,980 31,680 250,000
15 73,637 42,139 41,989 250,000 33,968 33,818 250,000
16 80,731 45,654 45,654 250,000 35,804 35,804 250,000
17 88,180 49,190 49,190 250,000 37,449 37,449 250,000
18 96,002 52,725 52,725 250,000 38,853 38,853 250,000
19 104,214 56,239 56,239 250,000 39,959 39,959 250,000
20 112,838 59,714 59,714 250,000 40,707 40,707 250,000
25 162,869 57,704 57,704 250,000 17,199 17,199 250,000
30 226,723 41,060 41,060 250,000 0 0 0
---------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 2% in years 1 through 10
and 0% thereafter, and Guaranteed Front-End Sales Loads of 2% in all years. The
surrender charge effective in any year can be determined by subtracting the cash
surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2861 5 of 6
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$3,250 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
1 3,413 1,980 0 250,000 1,980 0 250,000
2 6,996 4,053 1,053 250,000 3,962 962 250,000
3 10,758 6,035 3,035 250,000 5,848 2,848 250,000
4 14,708 7,923 4,923 250,000 7,633 4,633 250,000
5 18,856 9,782 6,782 250,000 9,312 6,312 250,000
6 23,212 11,540 8,840 250,000 10,877 8,177 250,000
7 27,785 13,208 10,808 250,000 12,314 9,914 250,000
8 32,586 14,781 12,681 250,000 13,611 11,511 250,000
9 37,628 16,251 14,451 250,000 14,751 12,951 250,000
10 42,922 17,613 16,113 250,000 15,721 14,221 250,000
11 48,481 19,144 17,959 250,000 16,588 15,403 250,000
12 54,317 20,662 19,762 250,000 17,257 16,357 250,000
13 60,446 22,041 21,441 250,000 17,719 17,119 250,000
14 66,880 23,269 22,969 250,000 17,953 17,653 250,000
15 73,637 24,329 24,179 250,000 17,930 17,780 250,000
16 80,731 25,206 25,206 250,000 17,622 17,622 250,000
17 88,180 25,880 25,880 250,000 16,995 16,995 250,000
18 96,002 26,322 26,322 250,000 15,998 15,998 250,000
19 104,214 26,501 26,501 250,000 14,577 14,577 250,000
20 112,838 26,390 26,390 250,000 12,679 12,679 250,000
25 162,869 5,438 5,438 250,000 0 0 0
30 226,723 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 2% in years 1 through 10
and 0% thereafter, and Guaranteed Front-End Sales Loads of 2% in all years. The
surrender charge effective in any year can be determined by subtracting the cash
surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2861 6 of 6
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX FOR HARTFORD AND FIDELITY
SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-2
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-4
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-6
INDEX FOR PUTNAM SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-8
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-12
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-15
</TABLE>
SA-1
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets and Liabilities (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Bond Stock Money Advisers Capital Mortgage Index
Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 15,997,697
Cost $16,649,064
.........................................................................................................................
Market Value $17,011,056 $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 11,610,764
Cost $57,758,062
.........................................................................................................................
Market Value -- 72,170,268 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 24,706,506
Cost $24,706,506
.........................................................................................................................
Market Value -- -- 24,706,506 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,592,949
Cost $34,697,830
.........................................................................................................................
Market Value -- -- -- 39,592,817 -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC.
Shares 15,636,286
Cost $66,679,661
.........................................................................................................................
Market Value -- -- -- -- 98,736,998 -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 2,337,493
Cost $2,487,569
.........................................................................................................................
Market Value -- -- -- -- -- 2,566,551 --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 9,310,122
Cost $25,375,053
.........................................................................................................................
Market Value -- -- -- -- -- -- 37,957,515
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 13,814,530
Cost $18,614,832
.........................................................................................................................
Market Value -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- 56,595 6,149,129 -- 3,332 -- --
.........................................................................................................................
Receivable from fund shares sold 8,444 -- -- 9,521 -- 2 4,074
.........................................................................................................................
Total Assets 17,019,500 72,226,863 30,855,635 39,602,338 98,740,330 2,566,553 37,961,589
.........................................................................................................................
LIABILITIES:
Due to Hartford Life Insurance
Company 8,459 -- -- 9,390 -- 15 4,058
.........................................................................................................................
Payable for fund shares purchased -- 56,662 6,145,657 -- 3,539 -- --
.........................................................................................................................
TOTAL LIABILITIES 8,459 56,662 6,145,657 9,390 3,539 15 4,058
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $17,011,041 $72,170,201 $24,709,978 $39,592,948 $98,736,791 $2,566,538 $37,957,531
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 10,874,588 19,727,312 17,290,248 14,686,738 24,306,056 1,650,256 10,776,773
.........................................................................................................................
Unit Values $ 1.564293 $ 3.658390 $ 1.429128 $ 2.695830 $ 4.062230 $ 1.555236 $ 3.522161
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 International
Opportunities
Fund
Sub-Account
------------------------------------------------------------
ASSETS
Investments:
------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 15,997,697
Cost $16,649,064
................................
Market Value $ --
------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 11,610,764
Cost $57,758,062
................................
Market Value --
------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 24,706,506
Cost $24,706,506
................................
Market Value --
------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,592,949
Cost $34,697,830
................................
Market Value --
------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC.
Shares 15,636,286
Cost $66,679,661
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 2,337,493
Cost $2,487,569
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 9,310,122
Cost $25,375,053
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 13,814,530
Cost $18,614,832
................................
Market Value 20,130,409
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 628
................................
Receivable from fund shares sold --
................................
Total Assets 20,131,037
................................
LIABILITIES:
Due to Hartford Life Insurance
Company --
................................
Payable for fund shares purchased 702
................................
TOTAL LIABILITIES 702
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $20,130,335
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 9,640,148
................................
Unit Values $ 2.088177
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-2
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets and Liabilities (Unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Dividend Growth International Small MidCap Fidelity Fidelity Fidelity
and Growth and Income Advisers Company Fund VIP VIP VIP II
Fund Fund Fund Fund Sub-Account Equity-Income Overseas Asset
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Manager
Sub-Account Sub-Account Portfolio
Sub-Account
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH HLS
FUND, INC. -- CLASS IA
Shares 12,474,206
Cost $23,299,349
...............................................................................................................................
Market Value $25,614,623 $ -- $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME HLS
FUND -- CLASS IA
Shares 497,622
Cost $686,069
...............................................................................................................................
Market Value -- 715,902 -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL ADVISERS
HLS FUND, INC. -- CLASS IA
Shares 172,655
Cost $219,145
...............................................................................................................................
Market Value -- -- 212,297 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. -- CLASS IA
Shares 1,545,706
Cost $2,914,372
...............................................................................................................................
Market Value -- -- -- 2,947,629 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS
FUND, INC. -- CLASS IA
Shares 2,207,918
Cost $4,797,553
...............................................................................................................................
Market Value -- -- -- -- 5,796,261 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 686,211
Cost $14,987,396
...............................................................................................................................
Market Value -- -- -- -- -- 16,839,629 -- --
--------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS PORTFOLIO
Shares 263,622
Cost $5,322,280
...............................................................................................................................
Market Value -- -- -- -- -- -- 5,736,412 --
--------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 176,289
Cost $2,924,997
...............................................................................................................................
Market Value -- -- -- -- -- -- -- 2,933,452
--------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- -- -- 14,770 60,562 1,385 1,684 310
...............................................................................................................................
Receivable from fund shares sold 10,366 423 270 -- -- 639 -- --
...............................................................................................................................
Total Assets 25,624,989 716,325 212,567 2,962,399 5,856,823 16,841,653 5,738,096 2,933,762
...............................................................................................................................
LIABILITIES:
Due to Hartford Life Insurance
Company 10,357 -- 271 -- -- -- -- --
...............................................................................................................................
Payable for fund shares purchased -- 420 -- 14,780 60,565 -- 636 315
...............................................................................................................................
TOTAL LIABILITIES 10,357 420 271 14,780 60,565 -- 636 315
--------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $25,614,632 $715,905 $212,296 $2,947,619 $5,796,258 $16,841,653 $5,737,460 $2,933,447
--------------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 9,938,711 503,122 179,444 1,681,609 2,597,614 7,754,452 2,987,603 1,509,013
...............................................................................................................................
Unit Values $ 2.577259 $1.422924 $1.183079 $ 1.752856 $ 2.231378 $ 2.171869 $ 1.920422 $ 1.943951
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-3
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Operations (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 94,908 $ 18,630 $956,859 $ 84,825 $ 37,484 $ 17,585 $ 3,848
........................................................................................................................
Capital gains income -- 7,693,995 (592) 3,376,133 12,384,819 -- 361,020
........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
........................................................................................................................
Net realized gain (loss) on
security transactions 74,747 (98,793) -- (26,106) (17,867) (11,842) (39,529)
........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 1,210,737 (9,687,654) -- (3,304,200) 3,706,876 147,406 (1,033,931)
........................................................................................................................
Net gain (loss) on investments 1,285,484 (9,786,447) -- (3,330,306) 3,689,009 135,564 (1,073,460)
-------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,380,392 $(2,073,822) $956,267 $ 130,652 $16,111,312 $153,149 $ (708,592)
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 145,899
................................
Capital gains income 2,336,911
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 5,725
................................
Net unrealized appreciation
(depreciation) of investments
during the period (5,237,640)
................................
Net gain (loss) on investments (5,231,915)
---------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(2,749,105)
----------------------------------------------------------------------------------------
</TABLE>
SA-4
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Operations (Unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 19,870 $ 29 $ 2,444 $ -- $ -- $297,954 $ 86,020
..........................................................................................................................
Capital gains income 2,182,255 6,072 13,244 315,709 167,921 1,122,524 541,692
..........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
..........................................................................................................................
Net realized (loss) gain on
security transactions (67,352) (6,631) 939 14,608 39,599 (3,338) (14,456)
..........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period (963,058) 475 (26,270) (478,383) 730,167 (805,353) (1,389,503)
..........................................................................................................................
Net (loss) gain on investments (1,030,410) (6,156) (25,331) (463,775) 769,766 (808,691) (1,403,959)
---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,171,715 $ (55) $ (9,643) $(148,066) $937,687 $611,787 $ (776,247)
---------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 91,022
................................
Capital gains income 214,442
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized (loss) gain on
security transactions 6,263
................................
Net unrealized appreciation
(depreciation) of investments
during the period (315,109)
................................
Net (loss) gain on investments (308,846)
----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ (3,382)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-5
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Changes in Net Assets (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 94,908 $ 18,630 $ 956,859 $ 84,825 $ 37,484 $ 17,585 $ 3,848
.........................................................................................................................
Capital gains income -- 7,693,995 (592) 3,376,133 12,384,819 -- 361,020
.........................................................................................................................
Net realized (loss) gain on
security transactions 74,747 (98,793) -- (26,106) (17,867) (11,842) (39,529)
.........................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period 1,210,737 (9,687,654) -- (3,304,200) 3,706,876 147,406 (1,033,931)
.........................................................................................................................
Net (decrease) increase in net
assets resulting from
operations 1,380,392 (2,073,822) 956,267 130,652 16,111,312 153,149 (708,592)
.........................................................................................................................
UNIT TRANSACTIONS:
Purchases 2,071,360 5,652,080 14,683,870 3,522,494 6,303,411 96,357 2,680,821
.........................................................................................................................
Net transfers (3,517,329) 1,156,321 (11,340,438) (469,538) 2,308,184 (214,429) 105,290
.........................................................................................................................
Surrenders for benefit payments
and fees (435,435) (1,625,032) (1,136,894) (1,416,694) (2,589,167) (51,378) (621,793)
.........................................................................................................................
Net loan withdrawals (386,891) (1,351,545) (359,850) (580,483) (1,900,043) 5,850 (459,422)
.........................................................................................................................
Cost of insurance (586,156) (2,327,744) (942,216) (1,479,819) (2,705,825) (66,258) (1,180,844)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions (2,854,451) 1,504,080 904,472 (424,040) 1,416,560 (229,858) 524,052
.........................................................................................................................
Total increase (decrease) in net
assets (1,474,059) (569,742) 1,860,739 (293,388) 17,527,872 (76,709) (184,540)
.........................................................................................................................
NET ASSETS:
Beginning of period 18,485,100 72,739,943 22,849,239 39,886,336 81,208,919 2,643,247 38,142,071
--------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $17,011,041 $72,170,201 $24,709,978 $39,592,948 $98,736,791 $2,566,538 $37,957,531
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ 145,899
................................
Capital gains income 2,336,911
................................
Net realized (loss) gain on
security transactions 5,725
................................
Net unrealized (depreciation)
appreciation of investments
during the period (5,237,640)
................................
Net (decrease) increase in net
assets resulting from
operations (2,749,105)
................................
UNIT TRANSACTIONS:
Purchases 1,921,016
................................
Net transfers 157,544
................................
Surrenders for benefit payments
and fees (576,480)
................................
Net loan withdrawals (413,727)
................................
Cost of insurance (616,815)
................................
Net increase (decrease) in net
assets resulting from unit
transactions 471,538
................................
Total increase (decrease) in net
assets (2,277,567)
................................
NET ASSETS:
Beginning of period 22,407,902
---------------------------------------------------------------------------
END OF PERIOD $20,130,335
----------------------------------------------------------------------------------------
</TABLE>
SA-6
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Changes in Net Assets (Unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 19,870 $ 29 $ 2,444 $ -- $ -- $ 297,954 $ 86,020
.......................................................................................................................
Capital gains income 2,182,255 6,072 13,244 315,709 167,921 1,122,524 541,692
.......................................................................................................................
Net realized (loss) gain on
security transactions (67,352) (6,631) 939 14,608 39,599 (3,338) (14,456)
.......................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period (963,058) 475 (26,270) (478,383) 730,167 (805,353) (1,389,503)
.......................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,171,715 (55) (9,643) (148,066) 937,687 611,787 (776,247)
.......................................................................................................................
UNIT TRANSACTIONS:
Purchases 2,532,106 82,875 54,818 328,820 333,299 1,649,180 635,375
.......................................................................................................................
Net transfers (626,948) 389,163 41,573 1,112,504 3,493,473 (1,783,406) 133,118
.......................................................................................................................
Surrenders for benefit payments
and fees (879,695) (26,048) (3,587) (92,056) (65,290) (1,002,758) (206,572)
.......................................................................................................................
Net loan withdrawals (290,087) (37,887) (4,435) (78,042) (132,199) (167,326) (54,832)
.......................................................................................................................
Cost of insurance (833,291) (34,842) (13,687) (83,747) (133,455) (547,135) (228,668)
.......................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions (97,915) 373,261 74,682 1,187,479 3,495,828 (1,851,445) 278,421
.......................................................................................................................
Total increase (decrease) in net
assets 1,073,800 373,206 65,039 1,039,413 4,433,515 (1,239,658) (497,826)
.......................................................................................................................
NET ASSETS:
Beginning of period 24,540,832 342,699 147,257 1,908,206 1,362,743 18,081,311 6,235,286
------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $25,614,632 $715,905 $212,296 $2,947,619 $5,796,258 $16,841,653 $5,737,460
------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ 91,022
................................
Capital gains income 214,442
................................
Net realized (loss) gain on
security transactions 6,263
................................
Net unrealized appreciation
(depreciation) of investments
during the period (315,109)
................................
Net increase (decrease) in net
assets resulting from
operations (3,382)
................................
UNIT TRANSACTIONS:
Purchases 296,347
................................
Net transfers (144,635)
................................
Surrenders for benefit payments
and fees (31,481)
................................
Net loan withdrawals (34,340)
................................
Cost of insurance (100,038)
................................
Net increase (decrease) in net
assets resulting from unit
transactions (14,147)
................................
Total increase (decrease) in net
assets (17,529)
................................
NET ASSETS:
Beginning of period 2,950,976
-----------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,933,447
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-7
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Asia Diversified The George Global Global Growth Health
Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT ASIA PACIFIC GROWTH
FUND
Shares 35,675
Cost $495,789
.........................................................................................................................
Market Value: $ 400,629 $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 168,039
Cost $1,807,050
.........................................................................................................................
Market Value: -- 1,549,316 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT THE GEORGE PUTNAM FUND
OF BOSTON
Shares 23,633
Cost $242,759
.........................................................................................................................
Market Value: -- -- 246,492 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL ASSET ALLOCATION
FUND
Shares 768,152
Cost $12,614,310
.........................................................................................................................
Market Value: -- -- -- 13,204,540 -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL GROWTH FUND
Shares 1,912,156
Cost $35,453,821
.........................................................................................................................
Market Value: -- -- -- -- 41,704,128 -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GROWTH AND INCOME FUND
Shares 2,235,395
Cost $54,669,422
.........................................................................................................................
Market Value: -- -- -- -- -- 55,437,796 --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HEALTH SCIENCES FUND
Shares 82,112
Cost $981,212
.........................................................................................................................
Market Value: -- -- -- -- -- -- 1,209,516
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- 1,150 49 -- -- -- --
.........................................................................................................................
Receivable from fund shares sold 2,339,991 -- -- 12,882 21,030 557 --
.........................................................................................................................
Total Assets 2,740,620 1,550,466 246,541 13,217,422 41,725,158 55,438,353 1,209,516
.........................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company 2,340,483 -- -- 14,626 13,662 445 90
.........................................................................................................................
Payable for fund shares purchased -- 1,150 49 -- -- -- 49
.........................................................................................................................
TOTAL LIABILITIES 2,340,483 1,150 49 14,626 13,662 445 139
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $ 400,137 $1,549,316 $246,492 $13,202,796 $41,711,496 $55,437,908 $1,209,377
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-8
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 High Yield Income International International International Investors Money
Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 1,293,526
Cost $15,176,821
........................................................................................................................
Market Value: $12,391,980 $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 788,785
Cost $10,295,428
........................................................................................................................
Market Value: -- 9,654,733 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 76,105
Cost $1,385,453
........................................................................................................................
Market Value: -- -- 1,374,454 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 42,457
Cost $579,281
........................................................................................................................
Market Value: -- -- -- 541,326 -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 120,067
Cost $2,385,586
........................................................................................................................
Market Value: -- -- -- -- 2,023,129 -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 108,801
Cost $1,433,117
........................................................................................................................
Market Value: -- -- -- -- -- 1,580,884 --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT MONEY MARKET FUND
Shares 1,519,225
Cost $1,519,225
........................................................................................................................
Market Value: -- -- -- -- -- -- 1,519,225
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- 659 369 1 -- 1 341
........................................................................................................................
Receivable from fund shares sold 4,213 -- -- -- 228 --
........................................................................................................................
Total Assets 12,396,193 9,655,392 1,374,823 541,327 2,023,357 1,580,885 1,519,576
........................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company 4,237 -- -- -- 234 -- --
........................................................................................................................
Payable for fund shares purchased -- 444 421 -- -- -- --
........................................................................................................................
TOTAL LIABILITIES 4,237 444 421 -- 234 -- --
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $12,391,956 $9,654,948 $1,374,402 $ 541,327 $2,023,123 $1,580,885 $1,519,576
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-9
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 New New OTC & Utilities Vista Voyager
Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 1,375,702
Cost $30,790,050
............................................................................................................
Market Value: $57,738,219 $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW VALUE FUND
Shares 72,956
Cost $852,562
............................................................................................................
Market Value: -- 899,548 -- -- -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT OTC & EMERGING GROWTH
FUND
Shares 165,579
Cost $3,630,935
............................................................................................................
Market Value: -- -- 3,071,496 -- -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT UTILITIES GROWTH &
INCOME FUND
Shares 271,764
Cost $3,803,778
............................................................................................................
Market Value: -- -- -- 4,807,506 -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT VISTA FUND
Shares 70,963
Cost $1,610,830
............................................................................................................
Market Value: -- -- -- -- 1,759,171 --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT VOYAGER FUND
Shares 1,786,482
Cost $66,105,115
............................................................................................................
Market Value: -- -- -- -- -- 102,204,650
-------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- 51 -- 233 -- --
............................................................................................................
Receivable from fund shares sold 25,003 -- 3,607,883 -- -- 87,892
............................................................................................................
Total Assets 57,763,222 899,599 6,679,379 4,807,739 1,759,171 102,292,542
............................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company 27,106 -- 3,607,657 -- 379 96,089
............................................................................................................
Payable for fund shares purchased -- -- -- 167 -- --
............................................................................................................
TOTAL LIABILITIES 27,106 -- 3,607,657 167 379 96,089
-------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $57,736,116 $ 899,599 $3,071,722 $4,807,572 $1,758,792 $102,196,453
-------------------------------------------------------------------------------------------------------------
</TABLE>
SA-10
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Assets and Liabilities (unaudited) (continued)
<TABLE>
----------------------------------------------------------------------------------
September 30, 2000 Units Unit Contract
Owned by Price Liability
Participants
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
Variable life contracts:
Asia Pacific Growth Fund 26,791 $14.935338 $ 400,137
.................................................................................
Diversified Income Fund 118,148 13.113302 1,549,316
.................................................................................
George Putnam Fund of Boston 22,326 11.040569 246,492
.................................................................................
Global Asset Allocation Fund 578,689 22.815002 13,202,796
.................................................................................
Global Growth Fund 1,264,749 32.980056 41,711,496
.................................................................................
Growth and Income Fund 2,061,916 26.886600 55,437,908
.................................................................................
Health Sciences Fund 79,819 15.151502 1,209,377
.................................................................................
High Yield Fund 769,010 16.114172 12,391,956
.................................................................................
Income Fund 639,476 15.098227 9,654,948
.................................................................................
International Growth Fund 95,027 14.463235 1,374,402
.................................................................................
International Growth and Income Fund 45,710 11.842557 541,327
.................................................................................
International New Opportunities Fund 135,353 14.947040 2,023,123
.................................................................................
Investors Fund 113,325 13.949961 1,580,885
.................................................................................
Money Market Fund 1,071,545 1.418117 1,519,576
.................................................................................
New Opportunities Fund 1,444,485 39.970028 57,736,116
.................................................................................
New Value Fund 75,631 11.894540 899,599
.................................................................................
OTC & Emerging Markets Fund 153,250 20.043914 3,071,722
.................................................................................
Utilities Growth and Income Fund 194,917 24.664702 4,807,572
.................................................................................
Vista Fund 89,475 19.656868 1,758,792
.................................................................................
Voyager Fund 2,286,728 44.691134 102,196,453
.................................................................................
GRAND TOTAL: $313,313,993
----------------------------------------------------------------------------------
</TABLE>
SA-11
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Global Growth Health
September 30, 2000 Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 21,001 $125,850 $ -- $ 233,187 $ 310,765 $ 952,184 $ --
......................................................................................................................
Capital gains income -- -- -- 1,217,833 7,744,714 4,483,122 --
......................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
......................................................................................................................
Net realized gain (loss) on
security transactions 864,555 (1,420) (414) 492 (20,261) (78,212) (81,673)
......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (182,821) (113,996) 10,287 (1,704,620) (15,629,793) (3,295,466) 216,245
......................................................................................................................
Net gain (loss) on investments 681,734 (115,416) 9,873 (1,704,128) (15,650,054) (3,373,678) 134,572
-----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $702,735 $ 10,434 $9,873 $ (253,108) $(7,594,575) $2,061,628 $134,572
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-12
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Operations (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Fund Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $1,432,208 $602,537 $ 17,902 $ 11,927 $ 937 $ -- $ 100,517
..........................................................................................................................
Capital gains income -- -- 77,647 26,144 88,002 -- --
..........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
..........................................................................................................................
Net realized gain (loss) on
security transactions (1,732) 2,974 107,527 (5,194) (8,122) (3,038) --
..........................................................................................................................
Net unrealized (depreciation) of
investments during the period (1,724,656) (159,680) (206,746) (52,436) (654,516) (46,320) --
..........................................................................................................................
Net (loss) on investments (1,726,388) (156,706) (99,219) (57,630) (662,638) (49,358) --
---------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $ (294,180) $445,831 $ (3,670) $(19,559) $(573,699) $(49,358) $ 100,517
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-13
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Operations (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and
Sub-Account Income
Sub-Account
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 5,119 $ -- $137,464 $ -- $ 32,244
.......................................................................................................
Capital gains income 4,478,064 18,127 33,841 242,668 8,644 13,681,198
.......................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.......................................................................................................
Net realized (loss) gain on
security transactions (116,835) (159,629) 256,733 3,151 (9,127) (348,141)
.......................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (2,500,219) 50,435 (923,460) 224,295 96,671 (15,666,200)
.......................................................................................................
Net (loss) gain on investments (2,617,054) (109,194) (666,727) 227,446 87,544 (16,014,341)
--------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $1,861,010 $(85,948) $(632,886) $607,578 $96,188 $(2,300,899)
--------------------------------------------------------------------------------------------------------
</TABLE>
SA-14
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Asset Global Growth Health
September 30, 2000 Pacific Income Putnam Fund Allocation Growth and Income Sciences
Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account
Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 21,001 $ 125,850 $ -- $ 233,187 $ 310,765 $ 952,184 $ --
............................................................................................................................
Capital gains income -- -- -- 1,217,833 7,744,714 4,483,122 --
............................................................................................................................
Net realized gain (loss) on
security transactions 864,555 (1,420) (414) 492 (20,261) (78,212) (81,673)
............................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (182,821) (113,996) 10,287 (1,704,620) (15,629,793) (3,295,466) 216,245
............................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 702,735 10,434 9,873 (253,108) (7,594,575) 2,061,628 134,572
............................................................................................................................
UNIT TRANSACTIONS:
Purchases 110,999 208,600 37,395 822,030 3,017,223 4,855,678 112,956
............................................................................................................................
Net transfers (2,126,170) 65,947 53,322 (352,048) 600,369 3,271,020 741,022
............................................................................................................................
Surrenders for benefit payments
and fees (13,459) (15,544) (6,429) (162,943) (1,158,729) (1,911,249) (13,472)
............................................................................................................................
Net loan activity (19,678) (17,554) (5,199) (75,065) (958,539) (521,248) (9,273)
............................................................................................................................
Cost of insurance (19,530) (61,151) (10,309) (320,393) (1,225,155) (1,592,935) (27,900)
............................................................................................................................
Net (decrease) increase in net
assets resulting from unit
transactions (2,067,838) 180,298 68,780 (88,419) 275,169 4,101,266 803,333
............................................................................................................................
Total (decrease) increase in net
assets (1,365,103) 190,732 78,653 (341,527) (7,319,406) 6,162,894 937,905
............................................................................................................................
NET ASSETS:
Beginning of period 1,765,240 1,358,584 167,839 13,544,323 49,030,902 49,275,014 271,472
-----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 400,137 $1,549,316 $246,492 $13,202,796 $41,711,496 $55,437,908 $1,209,377
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-15
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Sub-Account Sub-Account Growth Growth New Sub-Account Market
Sub-Account and Income Opportunities Sub-Account
Sub-Account Sub-Account
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,432,208 $ 602,537 $ 17,902 $ 11,927 $ 937 $ -- $ 100,517
................................................................................................................................
Capital gains income -- -- 77,647 26,144 88,002 -- --
................................................................................................................................
Net realized (loss) gain on
security transactions (1,732) 2,974 107,527 (5,194) (8,122) (3,038) --
................................................................................................................................
Net unrealized (depreciation) of
investments during the period (1,724,656) (159,680) (206,746) (52,436) (654,516) (46,320) --
................................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (294,180) 445,831 (3,670) (19,559) (573,699) (49,358) 100,517
................................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,634,012 748,288 140,045 61,271 190,628 266,977 98,395
................................................................................................................................
Net transfers (282,836) (410,503) 683,015 388,727 1,495,447 484,757 (865,869)
................................................................................................................................
Surrenders for benefit payments
and fees (415,975) (128,216) (17,996) (3,162) (4,095) (19,323) (3,872)
................................................................................................................................
Net loan activity (205,890) (159,033) (3,661) (4,312) (21,385) (40,461) (103,205)
................................................................................................................................
Cost of insurance (426,694) (264,843) (37,659) (14,398) (59,190) (59,671) (77,566)
................................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 302,617 (214,307) 763,744 428,126 1,601,405 632,279 (952,117)
................................................................................................................................
Total increase (decrease) in net
assets 8,437 231,524 760,074 408,567 1,027,706 582,921 (851,600)
................................................................................................................................
NET ASSETS:
Beginning of period 12,383,519 9,423,424 614,328 132,760 995,417 997,964 2,371,176
---------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $12,391,956 $9,654,948 $1,374,402 $541,327 $2,023,123 $1,580,885 $ 1,519,576
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-16
<PAGE>
PUTNAM SEPARATE ACCOUNT VL I -- HARTFORD LIFE INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ -- $ 5,119 $ -- $ 137,464 $ -- $ 32,244
.................................................................................................................
Capital gains income 4,478,064 18,127 33,841 242,668 8,644 13,681,198
.................................................................................................................
Net realized (loss) gain on
security transactions (116,835) (159,629) 256,733 3,151 (9,127) (348,141)
.................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (2,500,219) 50,435 (923,460) 224,295 96,671 (15,666,200)
.................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,861,010 (85,948) (632,886) 607,578 96,188 (2,300,899)
UNIT TRANSACTIONS:
Purchases 3,593,808 70,585 242,909 310,095 82,277 5,607,226
.................................................................................................................
Net transfers 2,806,694 688,718 101,638 (175,346) 1,356,700 657,574
.................................................................................................................
Surrenders for benefit payments
and fees (1,768,320) 1,843 (91,128) (70,812) 315 (2,925,578)
.................................................................................................................
Net loan activity (828,704) (18,518) (65,412) (40,468) 11,372 (1,574,919)
.................................................................................................................
Cost of insurance (1,537,760) (19,986) (115,289) (125,900) (27,541) (2,746,273)
.................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 2,265,718 722,642 72,718 (102,431) 1,423,123 (981,970)
.................................................................................................................
Total increase (decrease) in net
assets 4,126,728 636,694 (560,168) 505,147 1,519,311 (3,282,869)
NET ASSETS:
Beginning of period 53,609,388 262,905 3,631,890 4,302,425 239,481 105,479,322
------------------------------------------------------------------------------------------------------------------
END OF PERIOD $57,736,116 $899,599 $3,071,722 $4,807,572 $1,758,792 $102,196,453
------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-17
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
-----------------------------------------------
2000 1999 2000 1999
-----------------------------------------------
(in millions) (Unaudited)
<S> <C> <C> <C> <C>
REVENUES
Premiums and other considerations $588 $513 $1,653 $1,517
Net investment income 338 333 979 1,019
Net realized capital gains (losses) (7) -- (44) 1
-----------------------------------------------
TOTAL REVENUES 919 846 2,588 2,537
-----------------------------------------------
BENEFITS, CLAIMS AND EXPENSES
Benefits, claims and claim adjustment expenses 372 379 1,086 1,195
Amortization of deferred policy acquisition costs 163 141 462 396
Dividends to policyholders 7 70 53 97
Other expenses 188 105 456 432
-----------------------------------------------
TOTAL BENEFITS, CLAIMS AND EXPENSES 730 695 2,057 2,120
-----------------------------------------------
Income before income tax expense 189 151 531 417
Income tax expense 60 51 144 144
-----------------------------------------------
NET INCOME $129 $100 $ 387 $ 273
-----------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-1
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------------------------------
(Unaudited)
(in millions, except for share data)
<S> <C> <C>
ASSETS
Investments
Fixed maturities, available for sale, at fair value
(amortized cost of $13,851 and $13,923) $ 13,599 $ 13,499
Equity securities, at fair value 51 56
Policy loans, at outstanding balance 3,561 4,187
Other investments 727 342
------------------------------------
TOTAL INVESTMENTS 17,938 18,084
------------------------------------
Cash 95 55
Premiums receivable and agents' balances 23 29
Reinsurance recoverables 1,267 1,274
Deferred policy acquisition costs 4,242 4,013
Deferred income tax 462 459
Other assets 555 654
Separate account assets 118,333 110,397
------------------------------------
TOTAL ASSETS $142,915 $134,965
------------------------------------
LIABILITIES
Future policy benefits $ 4,643 $ 4,332
Other policyholder funds 14,796 16,004
Other liabilities 2,223 1,613
Separate account liabilities 118,333 110,397
------------------------------------
TOTAL LIABILITIES 139,995 132,346
------------------------------------
STOCKHOLDER'S EQUITY
Common stock -- 1,000 shares authorized,
issued and outstanding, par value $5,690 6 6
Capital surplus 1,045 1,045
Accumulated other comprehensive loss
Net unrealized capital losses on securities, net of tax (156) (255)
------------------------------------
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS (156) (255)
------------------------------------
Retained earnings 2,025 1,823
------------------------------------
TOTAL STOCKHOLDER'S EQUITY 2,920 2,619
------------------------------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $142,915 $134,965
------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-2
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
Accumulated Other
Comprehensive
Income (Loss)
-----------------
Net Unrealized
Capital Gains
(Losses) on Total
Common Capital Securities, Retained Stockholder's
Stock Surplus Net of Tax Earnings Equity
---------------------------------------------------------------
(in millions) (Unaudited)
<S> <C> <C> <C> <C> <C>
NINE MONTHS ENDED SEPTEMBER 30, 2000
Balance, December 31, 1999 $6 $1,045 $(255) $1,823 $2,619
Comprehensive income (loss)
Net income 387 387
Other comprehensive income (loss), net of
tax
Net unrealized capital gains (losses) on
securities (1) 99 99
Total other comprehensive income (loss) 99
Total comprehensive income (loss) 486
Dividends paid to parent (185) (185)
---------------------------------------------------------------
BALANCE, SEPTEMBER 30, 2000 $6 $1,045 $(156) $2,025 $2,920
---------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, 1999
Balance, December 31, 1998 $6 $1,045 $ 184 $1,462 $2,697
Comprehensive income (loss)
Net income 273 273
Other comprehensive income (loss), net of
tax
Net unrealized capital gains (losses) on
securities (1) (353) (353)
Total other comprehensive income (loss) (353)
Total comprehensive income (loss) (80)
---------------------------------------------------------------
BALANCE, SEPTEMBER 30, 1999 $6 $1,045 $(169) $1,735 $2,617
---------------------------------------------------------------
</TABLE>
(1) Net unrealized capital gains (losses) on securities are reflected net of tax
provision (benefit) of $53 and $(190) for the nine months ended
September 30, 2000 and 1999, respectively. There were reclassification
adjustments for after-tax gains (losses) realized in net income of $(29) and
$1 for the nine months ended September 30, 2000 and 1999, respectively.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-3
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
--------------------------------
2000 1999
--------------------------------
(Unaudited) (in millions)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 387 $ 273
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation and amortization (20) (8)
Net realized capital losses (gains) 44 (1)
Decrease (increase) in premiums receivable and agents'
balances 6 (15)
Increase (decrease) in other liabilities 169 (97)
Change in receivables, payables and accruals 40 142
Increase (decrease) in accrued tax 262 (200)
(Increase) decrease in deferred income tax (56) 164
Increase in deferred policy acquisition costs (229) (258)
Increase in future policy benefits 311 438
Decrease (increase) in reinsurance recoverables 27 (162)
Other, net 79 (100)
--------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,020 176
--------------------------------
INVESTING ACTIVITIES
Purchases of investments (4,134) (5,132)
Sales of investments 3,458 6,434
Maturities and principal paydowns of fixed maturity
investments 1,117 1,338
Purchase of affiliates and other 2 --
--------------------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 443 2,640
--------------------------------
FINANCING ACTIVITIES
Dividends paid to parent (185) --
Net disbursements for investment and universal life-type
contracts charged against policyholder accounts (1,238) (2,798)
--------------------------------
Net cash used for financing activities (1,423) (2,798)
--------------------------------
Net increase in cash 40 18
Cash -- beginning of period 55 17
--------------------------------
Cash -- end of period $ 95 $ 35
--------------------------------
Supplemental Disclosure of Cash Flow Information
Net cash paid during the period for
Income taxes $ 34 $ 111
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLAR AMOUNTS IN MILLIONS, UNLESS OTHERWISE STATED)
(Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Hartford Life
Insurance Company and subsidiaries ("Hartford Life Insurance Company" or the
"Company"), a wholly-owned subsidiary of Hartford Life and Accident Insurance
Company (its parent), a wholly-owned subsidiary of Hartford Life, Inc., have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and note disclosures which are normally
included in financial statements prepared on the basis of accounting principles
generally accepted in the United States have been condensed or omitted pursuant
to those rules and regulations, although the Company believes that the
disclosures made are adequate to make the information presented not misleading.
In the opinion of management, these statements include all adjustments which
were normal recurring adjustments necessary to present fairly the financial
position, results of operations and cash flows for the periods presented. For a
description of significant accounting policies, see Note 2 of Notes to
Consolidated Financial Statements in Hartford Life Insurance Company's 1999 Form
10-K Annual Report.
Certain reclassifications have been made to prior year financial information to
conform to the current year classification of transactions and accounts.
(b) NEW ACCOUNTING STANDARDS
In October 2000, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities - a Replacement of SFAS No. 125". SFAS No. 140 carries forward most
of SFAS No. 125's provisions without amendment. However, it revises criteria for
accounting for certain transfers of financial assets and the reporting and
disclosure requirements for collateral arrangements. SFAS No. 140's disclosure
requirements must be applied for fiscal years ending after December 15, 2000.
The other provisions of SFAS No. 140 apply prospectively to transactions and
commitments occurring after March 31, 2001. Implementation of the accounting
provisions of SFAS No. 140 is not expected to have a material impact on the
Company's financial condition or results of operations.
In July 2000, the Emerging Issues Task Force (EITF) reached consensus on Issue
No. 99-20, "Recognition of Interest Income and Impairment on Certain
Investments". This pronouncement requires investors in certain asset-backed
securities to record changes in their estimated yield on a prospective basis and
to evaluate these securities for an other-than-temporary decline in value. This
consensus is effective for financial statements with fiscal quarters beginning
after December 15, 2000. While the Company is currently in the process of
quantifying the impact of EITF No. 99-20, the consensus provisions are not
expected to have a material impact on the Company's financial condition or
results of operations.
In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative
Instruments and Certain Hedging Activities", which amended SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities". SFAS No. 133
established accounting and reporting requirements for derivative instruments,
including certain derivative instruments embedded in other contracts. SFAS No.
133 requires, among other things, that all derivatives be carried on the balance
sheet at fair value. SFAS No. 133 also specifies hedge accounting criteria under
which a derivative can qualify for special accounting. SFAS No. 138 amended SFAS
No. 133 so that for interest rate hedges, a company may designate as the hedged
risk, the risk of changes only in a benchmark interest rate. Also, credit risk
is newly defined as the company-specific spread over the benchmark interest rate
and may be hedged separately from, or in combination with, the benchmark
interest rate. Initial application of SFAS No. 133, as amended, for Hartford
Life Insurance Company will begin January 1, 2001. Implementation of SFAS No.
133, as amended, is not expected to have a material impact on the Company's
financial condition or results of operations. However, the FASB's Derivative
Implementation Group continues to deliberate on multiple issues, the resolution
of which could have a significant impact on the Company's expectations.
Effective January 1, 2000, Hartford Life Insurance Company adopted Statement of
Position (SOP) No. 98-7, "Accounting for Insurance and Reinsurance Contracts
That Do Not Transfer Insurance Risk". This SOP provides guidance on the method
of accounting for insurance and reinsurance contracts that do not transfer
insurance risk, defined in the SOP as the deposit method. Adoption of this SOP
did not have a material impact on the Company's financial condition or results
of operations.
2. COMMITMENTS AND CONTINGENT LIABILITIES
(a) LITIGATION
Hartford Life Insurance Company is involved in pending and threatened litigation
in the normal course of its business in which claims for alleged economic and
punitive damages have been asserted. Although there can be no assurances, at the
present time the Company does not anticipate that the ultimate liability arising
from such pending or threatened litigation, after consideration of provisions
made for estimated losses and costs of defense, will have a material adverse
effect on the financial condition or operating results of the Company.
(b) TAX MATTERS
Hartford Life, Inc.'s federal income tax returns are routinely audited by the
Internal Revenue Service. Hartford Life, Inc.'s 1996-1997 federal income tax
returns are currently under audit by the Internal Revenue Service.
F-5
<PAGE>
Management believes that sufficient provision has been made in the financial
statements for issues that may result from tax examinations and other tax
related matters for all open years.
During the second quarter of 2000, Hartford Life, Inc. reached a settlement with
the Internal Revenue Service with respect to certain tax matters for the
1993-1995 years. This settlement resulted in a $24 tax benefit being recorded in
Hartford Life Insurance Company's second quarter results of operations.
3. SEGMENT INFORMATION
Hartford Life Insurance Company is organized into three reportable operating
segments which include Investment Products, Individual Life and Corporate Owned
Life Insurance (COLI). Investment Products offers individual fixed and variable
annuities, retirement plan services and other investment products. Individual
Life sells a variety of life insurance products, including variable life,
universal life, interest sensitive whole life and term life insurance. COLI
primarily offers variable products used by employers to fund non-qualified
benefits or other post-employment benefit obligations as well as leveraged COLI.
The Company includes in "Other" corporate items not directly allocable to any of
its reportable operating segments, as well as certain group benefit products
including group life and disability insurance that is directly written by the
Company and is substantially ceded to its parent.
The accounting policies of the reportable operating segments are the same as
those described in the summary of significant accounting policies in Note 2 of
Notes to Consolidated Financial Statements in Hartford Life Insurance Company's
1999 Form 10-K Annual Report. Hartford Life Insurance Company evaluates
performance of its segments based on revenues, net income and the segment's
return on allocated capital. The Company charges direct operating expenses to
the appropriate segment and allocates the majority of indirect expenses to the
segments based on an intercompany expense arrangement. Intersegment revenues are
not significant and primarily occur between corporate and the operating
segments. These amounts include interest income on allocated surplus and the
allocation of net realized capital gains and losses through net investment
income utilizing the duration of the segment's investment portfolios.
The following tables present summarized financial information concerning the
Company's segments.
<TABLE>
<CAPTION>
Investment Individual
SEPTEMBER 30, 2000 Products Life COLI Other Total
<S> <C> <C> <C> <C> <C>
------------------------------------------------
THIRD QUARTER ENDED
Total revenues $ 522 $141 $238 $ 18 $ 919
Net income 86 19 9 15 129
------------------------------------------------
NINE MONTHS ENDED
Total revenues $1,548 $405 $572 $ 63 $2,588
Net income 262 53 25 47 387
</TABLE>
<TABLE>
<CAPTION>
Investment Individual
SEPTEMBER 30, 1999 Products Life COLI Other Total
<S> <C> <C> <C> <C> <C>
------------------------------------------------
THIRD QUARTER ENDED
Total revenues $ 468 $148 $220 $ 10 $ 846
Net income 69 19 7 5 100
------------------------------------------------
NINE MONTHS ENDED
Total revenues $1,403 $421 $659 $ 54 $2,537
Net income (loss) 228 51 20 (26) 273
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(Dollar amounts in millions, unless otherwise stated)
Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) addresses the financial condition of Hartford Life Insurance
Company and subsidiaries ("Hartford Life Insurance Company" or the "Company") as
of September 30, 2000, compared with December 31, 1999, and its results of
operations for the third quarter and nine months ended September 30, 2000
compared with the equivalent periods in 1999. This discussion should be read in
conjunction with the MD&A included in the Company's 1999 Form 10-K Annual
Report.
Certain statements contained in this discussion, other than statements of
historical fact, are forward-looking statements. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and include estimates and assumptions related to economic,
competitive and legislative developments. These forward-looking statements are
subject to change and uncertainty which are, in many instances, beyond the
Company's control and have been made based upon management's expectations and
beliefs concerning future developments and their potential effect on the
F-6
<PAGE>
Company. There can be no assurance that future developments will be in
accordance with management's expectations or that the effect of future
developments on Hartford Life Insurance Company will be those anticipated by
management. Actual results could differ materially from those expected by the
Company, depending on the outcome of certain factors, including the possibility
of general economic, business and legislative conditions that are less favorable
than anticipated, changes in interest rates or the stock markets, stronger than
anticipated competitive activity and those described in the forward-looking
statements.
INDEX
<TABLE>
<S> <C> <C> <C>
Consolidated Results of Operations 9 Corporate Owned Life Insurance (COLI) 11
Investment Products 10 Regulatory Matters and Contingencies 11
Individual Life 10 Accounting Standards 12
</TABLE>
CONSOLIDATED RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
OPERATING SUMMARY SEPTEMBER 30, SEPTEMBER 30,
<S> <C> <C> <C> <C>
--------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------
Revenues $919 $846 $2,588 $2,537
Expenses 790 746 2,201 2,264
--------------------------------------------------
NET INCOME $129 $100 $ 387 $ 273
--------------------------------------------------
</TABLE>
Hartford Life Insurance Company has the following reportable segments:
Investment Products, Individual Life and Corporate Owned Life Insurance (COLI).
The Company reports in "Other" corporate items not directly allocable to any of
its segments, as well as certain group benefits business, including group life
and disability insurance that is directly written by the Company and is
substantially ceded to its parent, Hartford Life and Accident Insurance Company
(HLA).
Revenues increased $73, or 9%, and $51, or 2%, for the third quarter and nine
months ended September 30, 2000, respectively, as compared to the equivalent
1999 periods. The increases in revenues were primarily attributable to growth in
the Investment Products segment which was, for the most part, due to higher fee
income related to the individual annuity operation which is directly
attributable to increased assets under management. Additionally, for the third
quarter the COLI segment's revenues increased primarily due to fees generated
from strong sales. Partially offsetting the growth in the nine month period was
a decline in the COLI segment's revenues primarily due to the declining block of
leveraged COLI business.
Expenses increased $44, or 6%, for the third quarter, while expenses for the
nine month period decreased $63, or 3%, as compared to the equivalent prior year
periods due to the factors described above.
Net income increased $29, or 29%, and $114, or 42%, for the third quarter and
nine months ended September 30, 2000, respectively, as compared to the
equivalent 1999 periods primarily driven by increases in net income across each
of the Company's reportable segments for the nine months. The Company also
reported a benefit related to the settlement of certain federal tax matters of
$24 for the second quarter of 2000 (see Note 2(b) of Notes to Consolidated
Financial Statements). This benefit, along with an $8 benefit related to state
income taxes in the first quarter of 2000, resulted in $32 of tax benefits for
the nine months ended September 30, 2000. Partially offsetting the increase for
the nine month period, the Company realized $29 of net realized capital losses,
primarily as a result of portfolio re-balancing. Excluding the tax items and the
net realized capital losses, net income increased $111, or 41%, for the nine
months ended September 30, 2000.
SEGMENT RESULTS
Below is a summary of net income (loss) by segment.
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
<S> <C> <C> <C> <C>
--------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------
Investment Products $ 86 $ 69 $262 $228
Individual Life 19 19 53 51
Corporate Owned Life Insurance
(COLI) 9 7 25 20
Other 15 5 47 (26)
--------------------------------------------------
NET INCOME $129 $100 $387 $273
--------------------------------------------------
</TABLE>
The sections that follow analyze each segment's results.
F-7
<PAGE>
INVESTMENT PRODUCTS
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
<S> <C> <C> <C> <C>
--------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------
Revenues $522 $468 $1,548 $1,403
Expenses 436 399 1,286 1,175
--------------------------------------------------
NET INCOME $ 86 $ 69 $ 262 $ 228
--------------------------------------------------
</TABLE>
Revenues in the Investment Products segment increased $54, or 12%, and $145, or
10%, for the third quarter and nine months ended September 30, 2000,
respectively, as compared to the equivalent 1999 periods, primarily due to
higher fee income in the individual annuity operation. Fee income generated by
individual annuities increased $58, or 22%, and $149, or 19%, for the respective
third quarter and nine month periods, as related account values grew
$14.7 billion, or 19%, from September 30, 1999. This substantial growth was
mostly due to strong individual annuity sales (including $8.5 billion for the
first nine months of 2000) and equity market appreciation.
Due to the continued growth in this segment, particularly the individual annuity
operation, expenses increased $37, or 9%, or $111, or 9%, for the third quarter
and nine months ended September 30, 2000, respectively, as compared to the
equivalent 1999 periods. These increases were primarily driven by amortization
of deferred policy acquisition costs, which grew $24, or 23%, and $61, or 20%,
for the respective third quarter and nine month periods and other expenses which
increased $9, or 10%, and $43, or 17%, over the respective prior year levels.
The segment's operating expenses as a percentage of average assets under
management declined slightly for the third quarter and nine months ended versus
the respective prior year periods.
Net income increased $17, or 25%, and $34, or 15%, for the third quarter and
nine months ended September 30, 2000, respectively, as compared to the
equivalent 1999 periods, primarily due to the growth in revenues associated with
the increase in assets under management across the entire segment. Additionally,
the Investment Products segment continued to maintain its profit margins related
to its primary businesses thus contributing to the segment's earnings growth.
INDIVIDUAL LIFE
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
<S> <C> <C> <C> <C>
--------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------
Revenues $141 $148 $405 $421
Expenses 122 129 352 370
--------------------------------------------------
NET INCOME $ 19 $ 19 $ 53 $ 51
--------------------------------------------------
</TABLE>
The slight decrease in revenues and expenses in the Individual Life segment is
primarily due to HLA's December 1, 1999 recapture of an in force block of
individual life insurance previously ceded to the Company. (For a discussion of
the recapture, see Note 9 of Notes to Consolidated Financial Statements in
Hartford Life Insurance Company's 1999 Form 10-K Annual Report.)
Excluding the recapture described above, revenues in the Individual Life segment
increased $16, or 13%, and $53, or 15%, for the third quarter and nine months
ended September 30, 2000, respectively, as compared to the equivalent 1999
periods. This increase in revenues is attributable to higher fee income
associated with the growing block of variable life insurance. Fee income
increased $13, or 15%, and $53, or 22%, for the respective third quarter and
nine month periods, as variable life account values increased $918, or 44%, and
variable life insurance in force increased $9.7 billion, or 46%, from
September 30, 1999.
Excluding the recapture described above, expenses increased $14, or 13%, and
$47, or 15%, for the third quarter and nine months ended September 30, 2000,
respectively, as compared to the equivalent 1999 periods. The increases in
expenses were primarily due to a $4, or 9%, and $12, or 8%, increase in
benefits, claims and claim adjustment expenses for the respective third quarter
and nine month periods and other expenses which increased $7, or 40%, and $16,
or 29%, over the respective prior year levels. These increases were associated
with the growth in this segment as indicated above. Additionally, for the nine
month period, amortization of deferred policy acquisition costs increased $15,
or 19%, primarily associated with the growth in this segment's variable
business. Excluding the recapture described above, net income increased $2, or
12%, and $6, or 13%, for the respective periods, primarily due to the higher fee
income as year-to-date mortality was essentially in line with prior year.
F-8
<PAGE>
CORPORATE OWNED LIFE INSURANCE (COLI)
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
<S> <C> <C> <C> <C>
--------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------
Revenues $238 $220 $572 $659
Expenses 229 213 547 639
--------------------------------------------------
NET INCOME $ 9 $ 7 $ 25 $ 20
--------------------------------------------------
</TABLE>
COLI revenues increased $18, or 8%, for the third quarter ended September 30,
2000, from the respective prior year period, while for the nine month period,
revenues decreased $87, or 13%. The revenue increase in the third quarter was
primarily due to an increase in fee income of $22, or 19%, associated with
strong sales of $2.5 billion in the third quarter 2000.
For the nine month period, revenues decreased primarily due to a decline in net
investment income of $59, or 18%. This decline was primarily due to the
leveraged COLI block of business, as related account values decreased $786, or
14%, as a result of the downsizing caused by the Health Insurance Portability
and Accountability Act of 1996.
Expenses increased $16, or 8%, for the third quarter, while expenses for the
nine month period decreased $92, or 14%, respectively, as compared to the
equivalent prior year periods due to the factors described above.
Net income increased $2, or 29%, and $5, or 25%, for the third quarter and nine
months ended September 30, 2000, respectively, as compared to the equivalent
prior year periods. The increase was primarily attributable to the variable COLI
business where account values increased $3.5 billion, or 29%, as well as
increased earnings associated with a block of leveraged COLI business recaptured
in 1998. (For a discussion of the MBL Recapture, see the Capital Resources and
Liquidity section in Hartford Life Insurance Company's 1999 Form 10-K Annual
Report.)
REGULATORY MATTERS AND CONTINGENCIES
NAIC PROPOSALS
The NAIC adopted the Codification of Statutory Accounting Principles (SAP) in
March 1998. The effective date for the statutory accounting guidance is
January 1, 2001. Hartford Life Insurance Company and its subsidiaries'
domiciliary state has adopted the SAP and the Company will make the necessary
changes required for implementation. The Company has not yet determined the
impact that the SAP will have on the statutory financial statements of Hartford
Life Insurance Company and its subsidiaries.
DEPENDENCE ON CERTAIN THIRD PARTY RELATIONSHIPS
Hartford Life Insurance Company distributes its annuity and life insurance
products through a variety of distribution channels, including broker-dealers,
banks, wholesalers, its own internal sales force and other third party marketing
organizations. The Company periodically negotiates provisions and renewals of
these relationships and there can be no assurance that such terms will remain
acceptable to the Company or such service providers. An interruption in the
Company's continuing relationship with certain of these third parties could
materially affect the Company's ability to market its products.
ACCOUNTING STANDARDS
For a discussion of accounting standards, see Note 1 of Notes to Consolidated
Financial Statements.
F-9
