<PAGE> 1
The attached are incorporated by reference herein to the annual reports filed
by and on behalf of the following:
Seligman Portfolios, Inc., filed March 2, 1998
Portfolios which include: Seligman Capital; Seligman Cash Management;
Seligman Common Stock; Seligman Bond; Seligman Income; Seligman
Henderson International; Seligman Communications and Information;
Seligman Frontier; Seligman Henderson Global Smaller Companies;
Seligman High-Yield Bond; Seligman Henderson Global Technology; and
Seligman Henderson Global Growth Opportunities
<PAGE> 2
[CANADA LIFE LETTERHEAD]
February, 1998
Dear Trillium(R) Policyholder:
Enclosed for your review is the Trillium Annual Report for the period ending
December 31, 1997. We encourage you to review this information and refer to it
as needed throughout the year.
Also, we are pleased to provide you with the enclosed two supplements to the
Trillium Variable Annuity prospectus dated May 1, 1997. The first supplement
provides the information on amended tax laws that allow for the use of both
Simple IRAs and Roth IRAs. For more information on the new IRA plans, please
contract your registered representative. The second supplement announces a
manager change for the Seligman Capital portfolio.
For your convenience, the "tear-off" below can be used to make additional
payments to your Trillium policy.
Thank you for selecting Trillium.
Sincerely,
/s/ Sergio Benedetti
Sergio Benedetti
Marketing Actuary
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Policyowner(s): ________________________ Policy Number: _______________
If you are changing allocation, please complete the following:
__________ This payment only
__________ This payment and all future payments
__________ Re-allocate all current assets
__________% Cash Mgmt (21) __________% Comm & Info (27)
__________% Income (22) __________% Global Grwth Ops (28)
__________% Bond (23) __________% Global Smlr Cos (29)
__________% Common Stock (24) __________% Frontier (41)
__________% Capital (25) __________% High Yld Bond (42)
__________% International (26) __________% Global Tech (43)
__________% Fixed Account
Total must equal 100%. Please make checks payable to Canada Life Insurance
Company of New York.
- -------------------- ----------------------------------------
Date Policyowner's Signature
Canada Life Insurance Company of New York Home Office Harrison, NY
<PAGE> 3
<TABLE>
<CAPTION>
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
[TRILLIUM LOGO] Average Annual Total Returns for Periods Ending December 31, 1997
A VARIABLE ANNUITY Assuming Contract Continues
Issued by Canada Life Insurance Company of New York Since Inception
PORTFOLIOS 1 YEAR 3 YEAR 5 YEAR Inception Date
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<S> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 20.26% 20.55% -- 20.31% 10/4/94
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SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 17.61 -- -- 12.10 5/1/96
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SELIGMAN FRONTIER PORTFOLIO 14.47 22.30 -- 22.42 10/4/94
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SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO 1.76 11.06 -- 11.26 10/4/94
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SELIGMAN CAPITAL PORTFOLIO 19.36 18.90 11.37% 12.45 6/21/88
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SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO 10.76 -- -- 5.12 5/1/96
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SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 6.61 7.12 -- 7.19 5/3/93
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SELIGMAN COMMON STOCK PORTFOLIO 19.37 20.82 13.91 13.17 6/21/88
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SELIGMAN INCOME PORTFOLIO 12.19 10.90 6.85 8.25 6/21/88
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SELIGMAN HIGH-YIELD BOND PORTFOLIO 13.25 -- -- 12.10 5/1/95
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SELIGMAN BOND PORTFOLIO 7.23 7.35 4.65 5.20 6/21/88
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SELIGMAN CASH MANAGEMENT PORTFOLIO 3.84 3.70 2.81 3.48 6/21/88
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</TABLE>
* Not annualized.
SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the
seven-day period ending December 31, 1997, was 3.82% TRILLIUM FIXED ACCOUNT'S
rate for the one-year Guarantee Period was 4.75% as of December 31, 1997.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when
surrendered, may be worth more or less than their original cost. Performance
of the variable portfolios reflects the performance of Seligman Portfolios,
Inc., the underlying investment vehicle for the Trillium Variable Account
adjusted for the current fees and charges (excluding CDSC) associated with
Trillium. For performance figures with CDSC, please see reverse side. The
variable account was established on 2/25/93 and commenced operations on
3/1/96. The fixed account is held in the general account of Canada Life
Insurance Company of New York (CLNY) and provides a guarantee, by CLNY, against
loss of principal, and guarantees payment of a specified current rate of
interest Please contact your financial advisor or call Seligman Financial
Services at 800-221-2783 for a prospectus containing full details including
information on fees and charges. Please read the prospectus carefully before
investing or sending money.
These are specific risks associated with global technology investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and changes in political conditions. A portfolio that concentrates
its investments in one sector of the economy may be subject to greater share
price fluctuations than a more diversified portfolio. There are specific risks
associated with global investing such as currency fluctuations, foreign
taxation, differences in financial reporting practices, and changes in
political conditions. The securities in which the Seligman High-Yield Bond
Portfolio invests are subject to a greater risk of loss of principal and
interest than higher-rated investment grade bonds. Purchasers should carefully
assess the risks associated with an investment in the Portfolio.
<PAGE> 4
<TABLE>
<CAPTION>
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending December 31, 1997
Assuming Contract Is Surrendered at End of Period
SINCE INCEPTION
PORTFOLIOS 1 YEAR 3 YEAR 5 YEAR INCEPTION DATE
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<S> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 14.86% 19.51% -- 19.39% 10/4/94
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SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 12.21 -- -- 9.12 5/1/96
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SELIGMAN FRONTIER PORTFOLIO 9.07 21.29 -- 21.54 10/4/94
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SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO (3.64) 9.83 -- 10.16 10/4/94
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SELIGMAN CAPITAL PORTFOLIO 13.96 17.82 11.02% 12.45 6/21/88
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SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO 5.36 -- -- 1.97 5/1/96
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SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 1.21 5.79 -- 6.59 5/3/93
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SELIGMAN COMMON STOCK PORTFOLIO 13.97 19.78 13.59 13.17 6/21/88
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SELIGMAN INCOME PORTFOLIO 6.79 9.67 6.43 8.25 6/21/88
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SELIGMAN HIGH-YIELD BOND PORTFOLIO 7.85 -- -- 10.70 5/1/95
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SELIGMAN BOND PORTFOLIO 1.83 6.03 4.16 5.20 6/21/88
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SELIGMAN CASH MANAGEMENT PORTFOLIO (1.56) 2.28 2.32 3.48 6/21/88
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</TABLE>
Issued by: Canada Life Insurance Company of New York, 500 Mamaroneck Avenue,
Harrison, NY 10528
Distributed by: Seligman Financial Services, Inc., 100 Park Avenue, New York,
NY 10017 - (800) 221-2783
SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the
seven-day period ending December 31, 1997, was 3.82%. TRILLIUM FIXED ACCOUNT'S
rate for the one-year Guarantee Period was 4.75% as of December 31, 1997.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when
surrendered, may be worth more or less than their original cost. Performance
of the variable portfolios reflects the performance of Seligman Portfolios,
Inc., the underlying investment vehicle for the Trillium Variable Account, and
is adjust for Trillium's current fees and charges, including the maximum CDSC of
6%. Trillium's CDSC for current premiums (premiums paid during the current and
previous six policy years) starts at 6% and decreases in steps, depending on
the number of policy years since the premium was paid, as follows: less than
two years, 6% at least two, but less than four, 5% at least four, but less than
five, 4% at least five, but less than six, 3% at least six, but less than
seven, 2% at least seven no change. The variable account was established on
2/25/93 and commenced operations on 3/1/96. The fixed account is held in the
general account of Canada Life Insurance Company of New York (CLNY) and
provides a guarantee, by CLNY, against loss of principal, and guarantees
payment of a specified current rate of interest. Please contact your financial
advisor or call Seligman Financial Services at 800-221-2783 for a prospectus
containing full details including information on fees and charges. Please read
the prospectus carefully before investing or sending money.
