<PAGE>
August, 1998
Dear Valued Trillium(R) Policyowner:
Enclosed for your review is the Trillium Semi-Annual Report for the period
ending June 30, 1998. We encourage you to review this information and refer to
it as needed throughout the year.
For your convenience, please use the "tear-off" below to make additional
payments to your Trillium policy. For other information, please contact your
registered representative.
Thank you for selecting Trillium.
Sincerely,
Ronald E. Beettam, President
Canada Life Insurance Company of New York
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POLICYOWNER(S): ______________________________ POLICY NUMBER: _______________
(PRINT NAME(S))
IF YOU ARE CHANGING YOUR ALLOCATION, PLEASE COMPLETE THE FOLLOWING:
_____ THIS PAYMENT ONLY
_____ THIS PAYMENT AND ALL FUTURE PAYMENTS
---
_____ RE-ALLOCATE ALL CURRENT ASSETS
<TABLE>
<S> <C> <C> <C>
(21) Cash Management ____% (22) INCOME ____%
(23) Bond ____% (24) COMMON STOCK ____%
(25) Capital ____% (26) INTERNATIONAL ____%
(27) Communication & Information ____% (28) GLOBAL GROWTH OPPORTUNITY ____%
(29) Global Smaller Companies ____% (41) FRONTIER ____%
(42) High Yield Bond ____% (43) GLOBAL TECHNOLOGY ____%
(44) Small-Cap Value ____% (45) LARGE-CAP VALUE ____%
(F2) Fixed Account (1 year) ____%
</TABLE>
TOTAL MUST EQUAL 100%. PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE
COMPANY OF NEW YORK.
DATE: _______________ POLICYOWNER'S SIGNATURE: ___________________________
Variable annuity policies issued by Canada Life Insurance Company of New
York. Offered by Canada Life of America Financial Services, Inc., Member, NASD
<PAGE>
The attached are incorprated by reference herein to the semi-annual reports
filed by and on behalf of the following:
Seligman Portfolios, Inc., filed August 28, 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; Seligman Henderson Global Growth
Opportunities; Seligman Large-Cap, Seligman Small-Cap
<PAGE>
[TRILLIUM LOGO APPEARS HERE]
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending June 30, 1998
Assuming Contract Continues
<TABLE>
<CAPTION>
Issued by Canada Life Insurance Company of New York Year- Since Inception
PORTFOLIOS to-Date* 1 Year 3 Year 5 Year 10 Year Inception Date
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<S> <C> <C> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 12.32% 26.39% 12.16% -- -- 21.11% 10/4/94
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SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 20.65 31.37 -- -- -- 19.10 5/1/96
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SELIGMAN FRONTIER PORTFOLIO 7.64 13.06 19.66 -- -- 21.55 10/4/94
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SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (8.72)* 5/1/98
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SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO 15.33 7.95 14.88 -- -- 13.97 10/4/94
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SELIGMAN CAPITAL PORTFOLIO 13.09 24.74 19.42 14.02% 13.26% -- 6/21/88
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SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO 18.45 16.42 -- -- -- 12.39 5/1/96
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SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (1.03)* 5/1/98
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SELIGMAN COMMON STOCK PORTFOLIO 12.32 18.58 20.60 15.73 13.88 -- 6/21/88
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SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 17.24 10.21 12.71 10.01 -- 9.82 5/3/93
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SELIGMAN INCOME PORTFOLIO 4.88 10.75 9.29 6.35 8.40 -- 6/21/88
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SELIGMAN HIGH-YIELD BOND PORTFOLIO 5.04 13.36 12.48 -- -- 11.84 5/1/95
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SELIGMAN BOND PORTFOLIO 3.24 8.87 5.20 4.34 5.32 -- 6/21/88
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SELIGMAN CASH MANAGEMENT PORTFOLIO 1.93 3.91 3.79 3.10 3.54 -- 6/21/88
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</TABLE>
* Not annualized.
SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the seven-day
period ending June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the
one-year Guarantee Period was 4.0?% as of June 30, 1998.
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.
There 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. A portfolio with fewer holdings may be subject to greater volatility
than a portfolio with a greater number of holdings. 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>
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending June 30, 1998
Assuming Contract Is Surrendered at End of Period
<TABLE>
<CAPTION>
Since Inception
PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 20.99% 10.95% -- -- 20.39% 10/4/94
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SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 25.97 -- -- -- 17.39 5/1/96
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SELIGMAN FRONTIER PORTFOLIO 7.66 18.60 -- -- 20.83 10/4/94
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SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (14.13)* 5/1/98
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SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES
PORTFOLIO 2.55 13.74 -- -- 13.12 10/4/94
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SELIGMAN CAPITAL PORTFOLIO 19.34 18.35 13.70% 13.26% -- 6/21/88
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SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES
PORTFOLIO 11.02 -- -- -- 10.55 5/1/96
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SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (6.45)* 5/1/98
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SELIGMAN COMMON STOCK PORTFOLIO 13.18 19.56 15.43 13.88 -- 6/21/88
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SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 4.81 11.51 9.81 -- 9.47 5/3/93
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SELIGMAN INCOME PORTFOLIO 5.35 8.02 5.92 8.40 -- 6/21/88
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SELIGMAN HIGH-YIELD BOND PORTFOLIO 7.96 11.28 -- -- 10.72 5/1/95
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SELIGMAN BOND PORTFOLIO 3.47 3.83 3.88 5.32 -- 6/21/88
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SELIGMAN CASH AMNAGEMENT PORTFOLIO (1.49) 2.37 2.62 3.54 -- 6/21/88
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</TABLE>
* Not annualized
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 June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the
one-year Guarantee Period was 4.50% as of June 30, 1998.
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 adjusted 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 charge. 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 (CINY) and provides a guarantee by
CINY against loss of principal, and guarantees payment of specified current
rate of interest. Please contact your financial advisor or call Seligman
Financial Service at 800-221-2763 for a prospectus containing full details
including information on fees and charges. Please read the prospectus carefully
before investing or sending money.
