<PAGE> 1
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
- ------------------------------------------------------
VARIABLE ACCOUNT B
CLASS 2
FINANCIAL STATEMENTS
FOR THE PERIODS ENDED
DECEMBER 31, 1995
This report has been prepared to provide information to owners of American
Skandia Life Assurance Corporation's Advisors Select(SM), Advisors Choice(SM)
and Advisors Design(SM) Annuities. If it is used for any other purpose, it must
be accompanied or preceded by a current Advisors Select(SM) Annuity prospectus,
Advisors Choice(SM) Annuity prospectus or Advisors Design(SM) Annuity
prospectus, as applicable, which discloses any charges and other important
information about the Account, together with the current applicable prospectus
for the Neuberger & Berman Advisers Management Trust, The Alger American Fund,
the American Skandia Trust.
<PAGE> 2
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
PRESIDENT'S LETTER
FEBRUARY, 1996
Dear Contractholder:
What a year it was! The New York Stock Exchange hit a record high on 69 days, a
record number of record highs! The performance of the Variable Account B
sub-accounts also reflects these outstanding investment returns. Please read the
attached sub-account managers' reports carefully, for a better appreciation of
how your mutual fund investment options performed in 1995, and their respective
outlooks for 1996.
As we look ahead, we do not expect to repeat the stellar results of 1995. But
neither do we anticipate a dramatic sell off or cause for a collapse of those
prior gains. Instead we anticipate a "normal" investment climate, with "normal"
levels of returns, and "normal" volatility in returns. As before, our conviction
is that a winning strategy must include a long term view, and a diversified
approach to asset classes and investment markets. Our commitment is to offer a
choice of excellent managers and excellent funds in a wide range of asset
classes.
In the years past we have focused on adding asset class and investment style
choices to your retirement annuity. In 1995 we added the following four new
selections:
<TABLE>
<CAPTION>
SUB-ACCOUNT ASSET CLASS/INVESTMENT STYLE
--------------------------------------- ---------------------------------------
<S> <C>
International Equities (small
Seligman-Henderson Small Cap capitalization)
T. Rowe Price Natural Resources "Hard Assets"
PIMCO Limited Bond Intermediate Bonds
Neuberger & Berman Partners Value Style Equities
</TABLE>
These new selections have proven to be very popular, and the new portfolios
raised over $120 million of new assets in 1995.
From time to time, it also makes good sense to cease offering a fund. In 1995
American Skandia closed and consolidated assets from certain fund options to
other sub-accounts with similar investment objectives. We anticipate that the
substitutions will tend to result in cost savings to contractholders through
economies of scale, reduced expenses, and more effective management.
As we look ahead to 1996, we are committed to continuing to enhance the wide
range of choice in excellent investment options, among diversified asset
classes.
Gordon C. Boronow
<PAGE> 3
<TABLE>
<S> <C>
CONTENTS
I. American Skandia Life Assurance Corporation
II. The Alger American Fund
III. Neuberger & Berman Advisors Management Trust
IV. American Skandia Trust
V. Alliance Variable Product Series Fund, Inc.
VI. Scudder Variable Life Investment Fund
VII. Janus Aspen Series
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
- -------------------------------------
To the Contractowners of
American Skandia Life Assurance Corporation
Variable Account B -- Class 2 and the
Board of Directors of
American Skandia Life Assurance Corporation
Shelton, Connecticut
We have audited the accompanying statement of assets and liabilities of American
Skandia Life Assurance Corporation Variable Account B -- Class 2 as of December
31, 1995, and the related statements of operations and of changes in net assets
for the periods presented. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995 with the managers of
the mutual funds. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of American Skandia Life Assurance Corporation
Variable Account B -- Class 2 as of December 31, 1995, the results of its
operations and the changes in its net assets for the periods presented in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
February 20, 1996
<PAGE> 5
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in mutual funds at market value (Note 2):
Neuberger & Berman Advisers Management Trust (NBAMT):
Partners Portfolio - 210,166 shares (cost $2,734,336).................................................. $ 2,780,494
The Alger American Fund (AAF):
Small Capitalization Portfolio - 115,943 shares (cost $4,538,396)...................................... 4,569,296
Growth Portfolio - 225,342 shares (cost $6,757,729).................................................... 7,021,672
MidCap Growth Portfolio - 155,737 shares (cost $3,020,442)............................................. 3,027,525
American Skandia Trust (AST):
Seligman Henderson International Equity Portfolio - 280,782 shares (cost $4,948,597)................... 5,110,226
Seligman Henderson International Small Cap Portfolio - 137,176 shares (cost $1,420,535)................ 1,417,025
Lord Abbett Growth & Income Portfolio - 433,559 shares (cost $6,018,950)............................... 6,494,711
JanCap Growth Portfolio - 325,786 shares (cost $4,503,294)............................................. 5,017,104
Money Market Portfolio - 10,367,753 shares (cost $10,367,753).......................................... 10,367,753
Federated Utility Income Portfolio - 160,127 shares (cost $1,768,237).................................. 1,911,912
Federated High Yield Portfolio - 305,062 shares (cost $3,148,429)...................................... 3,398,385
Phoenix Balanced Asset Portfolio - 230,339 shares (cost $2,715,306).................................... 2,886,154
T. Rowe Price Asset Allocation Portfolio - 89,593 shares (cost $958,906)............................... 1,076,010
T. Rowe Price International Equity Portfolio - 599,044 shares (cost $6,205,552)........................ 6,379,815
T. Rowe Price Natural Resources Portfolio - 27,224 shares (cost $293,877).............................. 302,455
Founders Capital Appreciation Portfolio - 218,617 shares (cost $3,042,639)............................. 3,115,296
INVESCO Equity Income Portfolio - 290,858 shares (cost $3,297,215)..................................... 3,635,719
PIMCO Total Return Bond Portfolio - 844,753 shares (cost $8,952,120)................................... 9,579,495
PIMCO Limited Maturity Bond Portfolio - 396,782 shares (cost $4,121,689)............................... 4,154,305
Scudder International Bond Portfolio - 127,101 shares (cost $1,300,684)................................ 1,347,267
Berger Capital Growth Portfolio - 88,556 shares (cost $997,511)........................................ 1,098,096
-----------
Total Invested Assets.......................................................................... 84,690,715
Receivable from American Skandia Life Assurance Corp........................................................... 350,875
Receivable from Neuberger & Berman Advisers Management Trust................................................... 3,373,549
Receivable from Alliance Variable Products Series Fund......................................................... 2,385,497
Receivable from Scudder Variable Life Investment Fund.......................................................... 1,965,212
Receivable from Janus Aspen Series............................................................................. 2,234,781
-----------
Total Assets................................................................................... $95,000,629
===========
</TABLE>
- --------------------------------------------------------------------------------
2
<PAGE> 6
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF ASSETS AND LIABILITIES (CONCLUDED)
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
LIABILITIES
Payable to American Skandia Trust.............................................................................. $ 8,656,699
Payable to The Alger American Fund............................................................................. 1,653,587
-----------
Total Liabilities.............................................................................. $10,310,286
-----------
</TABLE>
NET ASSETS
<TABLE>
<CAPTION>
UNIT
CONTRACTOWNERS' EQUITY UNITS VALUE
- ----------------------------------------------------------------------------------------- ------- ------
<S> <C> <C> <C>
NBAMT - Partners..................................................................... 230,034 $12.09 $ 2,780,494
AAF - Small Capitalization........................................................... 321,334 14.22 4,569,297
AAF - Growth......................................................................... 506,542 13.86 7,021,671
AAF - MidCap Growth.................................................................. 204,227 14.82 3,027,525
AST - Seligman Henderson International Equity........................................ 452,589 11.29 5,110,226
AST - Seligman Henderson International Small Cap..................................... 137,991 10.27 1,416,925
AST - Lord Abbett Growth & Income.................................................... 498,080 13.04 6,494,711
AST - JanCap Growth.................................................................. 384,701 13.04 5,017,104
AST - Money Market................................................................... 968,666 10.70 10,367,752
AST - Federated Utility Income....................................................... 164,976 11.59 1,911,912
AST - Federated High Yield........................................................... 300,107 11.32 3,398,385
AST - Phoenix Balanced Asset......................................................... 239,737 12.04 2,886,154
AST - T. Rowe Price Asset Allocation................................................. 89,787 11.98 1,076,010
AST - T. Rowe Price International Equity............................................. 610,851 10.44 6,379,815
AST - T. Rowe Price Natural Resources................................................ 27,379 11.04 302,358
AST - Founders Capital Appreciation.................................................. 221,840 14.04 3,115,296
AST - INVESCO Equity Income.......................................................... 293,340 12.39 3,635,719
AST - PIMCO Total Return Bond........................................................ 846,356 11.32 9,579,495
AST - PIMCO Limited Maturity Bond.................................................... 399,158 10.41 4,154,212
AST - Scudder International Bond..................................................... 127,373 10.58 1,347,267
AST - Berger Capital Growth.......................................................... 89,474 12.27 1,098,015
-----------
Total Net Assets......................................................... $84,690,343
===========
</TABLE>
- --------------------------------------------------------------------------------
3
<PAGE> 7
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------
NBAMT
TOTAL GROWTH
------------ ----------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends............................................................................. $ 1,089,939 $ 1,795
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4).................. (534,682) (11,019)
------------ ---------
NET INVESTMENT INCOME (LOSS).............................................................. 555,257 (9,224)
------------ ---------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales..................................................................... 144,968,443 3,436,240
Cost of Securities Sold................................................................. 139,311,956 3,142,037
------------ ---------
Net Gain (Loss)....................................................................... 5,656,487 294,203
Capital Gain Distributions Received..................................................... 234,353 24,053
------------ ---------
NET REALIZED GAIN (LOSS).................................................................. 5,890,840 318,256
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period..................................................................... 81,078 8,784
End of Period........................................................................... 3,578,518 0
------------ ---------
NET UNREALIZED GAIN (LOSS)................................................................ 3,497,440 (8,784)
------------ ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 9,943,537 $ 300,248
============ =========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
4
<PAGE> 8
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------
NBAMT
PARTNERS
NBAMT - LIMITED NBAMT (JUN. 12* THRU AAF - SMALL AAF
MATURITY BOND BALANCED DEC. 31, 1995) CAPITALIZATION GROWTH
--------------- ---------- --------------- --------------- ----------
<S> <C> <C> <C> <C>
$ 120,964 $ 20,615 $ 0 $ 0 $ 5,417
(20,337) (11,902) (3,299) (27,252) (25,676)
--------- --------- --------- ---------- ---------
100,627 8,713 (3,299) (27,252) (20,259)
--------- --------- --------- ---------- ---------
4,460,417 1,765,291 436,860 23,631,682 1,816,625
4,340,159 1,537,905 424,757 22,616,602 1,432,949
--------- --------- --------- ---------- ---------
120,258 227,386 12,103 1,015,080 383,676
0 6,626 0 0 19,191
--------- --------- --------- ---------- ---------
120,258 234,012 12,103 1,015,080 402,867
13,949 (8,253) 0 96,549 78,117
0 0 46,158 30,900 263,943
--------- --------- --------- ---------- ---------
(13,949) 8,253 46,158 (65,649) 185,826
--------- --------- --------- ---------- ---------
$ 206,936 $ 250,978 $ 54,962 $ 922,179 $ 568,434
========= ========= ========= ========== =========
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE> 9
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------------
AST - SELIGMAN
HENDERSON
AAF - MIDCAP INTERNATIONAL
GROWTH EQUITY
------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends...................................................................... $ 104 $ 0
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)........... (13,124) (19,083)
-------- ---------
NET INVESTMENT INCOME (LOSS)....................................................... (13,020) (19,083)
-------- ---------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales.............................................................. 5,424,602 1,992,257
Cost of Securities Sold.......................................................... 5,065,144 2,157,181
-------- ---------
Net Gain (Loss)................................................................ 359,458 (164,924)
Capital Gain Distributions Received.............................................. 0 114,477
-------- ---------
NET REALIZED GAIN (LOSS)........................................................... 359,458 (50,447)
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period.............................................................. 29,711 (62,376)
End of Period.................................................................... 7,083 161,629
-------- ---------
NET UNREALIZED GAIN (LOSS)......................................................... (22,628) 224,005
-------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 323,810 $ 154,475
======== =========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
6
<PAGE> 10
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------------
AST - SELIGMAN
HENDERSON
INTL. SMALL CAP AST - LORD
(MAY 1* THRU ABBETT GROWTH AST - JANCAP AST - MONEY AST - FEDERATED
DEC. 31, 1995) & INCOME GROWTH MARKET UTILITY INCOME
----------------- -------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
$ 0 $ 41,130 $ 9,382 $ 486,456 $ 46,689
(3,035) (34,712) (22,929) (83,416) (11,394)
-------- ---------- --------- ----------- ----------
(3,035) 6,418 (13,547) 403,040 35,295
-------- ---------- --------- ----------- ----------
776,404 2,729,437 1,135,088 51,189,940 1,443,571
771,903 2,349,517 950,343 51,189,940 1,356,574
-------- ---------- --------- ----------- ----------
4,501 379,920 184,745 0 86,997
0 41,109 0 0 0
-------- ---------- --------- ----------- ----------
4,501 421,029 184,745 0 86,997
0 23,390 1,483 0 (11,262)
(3,510) 475,761 513,810 0 143,675
-------- ---------- --------- ----------- ----------
(3,510) 452,371 512,327 0 154,937
-------- ---------- --------- ----------- ----------
$ (2,044) $ 879,818 $ 683,525 $ 403,040 $ 277,229
======== ========== ========= =========== ==========
</TABLE>
- --------------------------------------------------------------------------------
7
<PAGE> 11
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------
AST - FEDERATED AST - PHOENIX
HIGH YIELD BALANCED ASSET
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends..................................................................... $ 58,902 $ 28,949
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4).......... (22,127) (10,520)
---------- --------
NET INVESTMENT INCOME (LOSS)...................................................... 36,775 18,429
---------- --------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................................................. 1,516,395 675,522
Cost of Securities Sold......................................................... 1,421,910 635,829
---------- --------
Net Gain (Loss)............................................................... 94,485 39,693
Capital Gain Distributions Received............................................. 0 0
---------- --------
NET REALIZED GAIN (LOSS).......................................................... 94,485 39,693
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................................. (3,175) 8,569
End of Period................................................................... 249,956 170,848
---------- --------
NET UNREALIZED GAIN (LOSS)........................................................ 253,131 162,279
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ 384,391 $ 220,401
========== ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
8
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------------------------------------------------------------------------
AST - T. ROWE
PRICE NATURAL
AST - T. ROWE AST - T. ROWE RESOURCES AST - FOUNDERS
AST - PHOENIX PRICE ASSET PRICE INTERNATIONAL (MAY 19* THRU CAPITAL
CAPITAL GROWTH ALLOCATION EQUITY DEC. 31, 1995) APPRECIATION
-------------- ------------- -------------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 1,517 $ 12,254 $ 3,019 $ 0 $ 10,765
(2,132) (7,269) (34,379) (408) (17,810)
-------- -------- --------- ---- --------
(615) 4,985 (31,360) (408) (7,045)
-------- -------- --------- ---- --------
449,996 413,316 8,054,975 24,162 9,426,265
393,243 377,378 7,871,437 23,539 8,884,606
-------- -------- --------- ---- --------
56,753 35,938 183,538 623 541,659
0 0 6,221 0 0
-------- -------- --------- ---- --------
56,753 35,938 189,759 623 541,659
(4,589) 9,104 (71,869) 0 54,117
0 117,104 174,263 8,578 72,657
-------- -------- --------- ---- --------
4,589 108,000 246,132 8,578 18,540
-------- -------- --------- ---- --------
$ 60,727 $ 148,923 $ 404,531 $ 8,793 $ 553,154
======== ======== ========= ==== ========
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE> 13
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------
AST - PIMCO
TOTAL
AST - INVESCO RETURN
EQUITY INCOME BOND
------------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends..................................................................... $ 19,150 $ 61,741
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4).......... (17,745) (42,943)
---------- ----------
NET INVESTMENT INCOME (LOSS)...................................................... 1,405 18,798
---------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................................................. 1,046,356 1,617,960
Cost of Securities Sold......................................................... 918,977 1,538,878
---------- ----------
Net Gain (Loss)............................................................... 127,379 79,082
Capital Gain Distributions Received............................................. 0 0
---------- ----------
NET REALIZED GAIN (LOSS).......................................................... 127,379 79,082
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................................. (11,342) (11,821)
End of Period................................................................... 338,504 627,375
---------- ----------
NET UNREALIZED GAIN (LOSS)........................................................ 349,846 639,196
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ 478,630 $ 737,076
========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
10
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------
AST - PIMCO
LIMITED MATURITY
BOND AST - SCUDDER
(MAY 8* THRU INTERNATIONAL AST - EAGLE AST - BERGER AVP - ST
DEC. 31, 1995) BOND GROWTH EQUITY CAPITAL GROWTH MULTI-MKT
---------------- ------------- ------------- -------------- ---------
<S> <C> <C> <C> <C>
$ 0 $ 4,730 $ 45 $ 38 $ 0
(3,646) (5,006) (673) (5,327) (2,555)
-------- -------- -------- -------- --------
(3,646) (276) (628) (5,289) (2,555)
-------- -------- -------- -------- --------
321,611 291,425 380,431 307,577 632,355
319,439 285,754 363,463 267,774 636,019
-------- -------- -------- -------- --------
2,172 5,671 16,968 39,803 (3,664)
0 0 0 0 0
-------- -------- -------- -------- --------
2,172 5,671 16,968 39,803 (3,664)
0 (2,877) 571 31 (20,879)
32,616 46,583 0 100,585 0
-------- -------- -------- -------- --------
32,616 49,460 (571) 100,554 20,879
-------- -------- -------- -------- --------
$ 31,142 $ 54,855 $ 15,769 $135,068 $ 14,660
======== ======== ======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE> 15
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
--------------------------------------
AVP - PREMIER AVP - GROWTH
GROWTH & INCOME
------------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends....................................................................... $ 1,489 $ 7,545
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)............ (7,406) (6,379)
---------- ----------
NET INVESTMENT INCOME (LOSS)........................................................ (5,917) 1,166
---------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................................................... 2,673,860 1,612,792
Cost of Securities Sold........................................................... 2,391,527 1,416,162
---------- ----------
Net Gain (Loss)................................................................. 282,333 196,630
Capital Gain Distributions Received............................................... 4,181 7,830
---------- ----------
NET REALIZED GAIN (LOSS)............................................................ 286,514 204,460
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................................... (3,688) (5,287)
End of Period..................................................................... 0 0
---------- ----------
NET UNREALIZED GAIN (LOSS).......................................................... 3,688 5,287
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................... $ 284,285 $ 210,913
========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
12
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------------------
AVP - U.S. GOV'T/ AVP - TOTAL AVP SVL SVL - CAPITAL SVL
HIGH GRADE RETURN INTERNATIONAL BOND GROWTH BALANCED
----------------- ----------- ------------- ---------- ------------- --------
<S> <C> <C> <C> <C> <C>
$ 12,089 $ 849 $ 542 $ 42,985 $ 811 $ 1,514
(5,825) (1,277) (2,210) (6,100) (1,052) (491)
---------- -------- -------- ---------- -------- --------
6,264 (428) (1,668) 36,885 (241) 1,023
---------- -------- -------- ---------- -------- --------
1,676,631 237,179 592,704 1,142,672 188,033 106,279
1,557,011 210,146 587,572 1,093,356 161,961 95,506
---------- -------- -------- ---------- -------- --------
119,620 27,033 5,132 49,316 26,072 10,773
0 0 674 0 4,342 353
---------- -------- -------- ---------- -------- --------
119,620 27,033 5,806 49,316 30,414 11,126
(1,643) (2,375) (11,504) (14,556) 601 569
0 0 0 0 0 0
---------- -------- -------- ---------- -------- --------
1,643 2,375 11,504 14,556 (601) (569)
---------- -------- -------- ---------- -------- --------
$ 127,527 $ 28,980 $ 15,642 $ 100,757 $ 29,572 $11,580
========== ======== ======== ========== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE> 17
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENT OF OPERATIONS (CONCLUDED)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
------------------------------------
SVL JAS
INTERNATIONAL GROWTH
------------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends............................................................................ $ 1,815 $ 14,909
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)................. (16,024) (6,150)
---------- ----------
NET INVESTMENT INCOME (LOSS)............................................................. (14,209) 8,759
---------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales.................................................................... 3,407,422 1,215,440
Cost of Securities Sold................................................................ 3,224,294 1,050,357
---------- ----------
Net Gain (Loss)...................................................................... 183,128 165,083
Capital Gain Distributions Received.................................................... 5,165 0
---------- ----------
NET REALIZED GAIN (LOSS)................................................................. 188,293 165,083
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period.................................................................... (37,761) 1,295
End of Period.......................................................................... 0 0
---------- ----------
NET UNREALIZED GAIN (LOSS)............................................................... 37,761 (1,295)
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.......................... $ 211,845 $ 172,547
========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
14
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------------------------------------
JAS - AGGRESSIVE JAS - WORLDWIDE JAS JAS - FLEXIBLE JAS - SHORT-TERM
GROWTH GROWTH BALANCED INCOME BOND
---------------- --------------- -------- -------------- ----------------
<S> <C> <C> <C> <C>
$ 13,606 $ 2,257 $ 2,889 $ 20,693 $ 32,284
(8,052) (3,991) (1,661) (3,790) (4,556)
---------- ---------- -------- -------- ----------
5,554 (1,734) 1,228 16,903 27,728
---------- ---------- -------- -------- ----------
2,396,695 1,053,405 307,063 677,281 2,284,227
2,124,243 943,812 275,076 632,554 2,275,122
---------- ---------- -------- -------- ----------
272,452 109,593 31,987 44,727 9,105
64 67 0 0 0
---------- ---------- -------- -------- ----------
272,516 109,660 31,987 44,727 9,105
72,580 (1,996) (6,245) (18,592) (6,252)
0 0 0 0 0
---------- ---------- -------- -------- ----------
(72,580) 1,996 6,245 18,592 6,252
---------- ---------- -------- -------- ----------
$ 205,490 $ 109,922 $39,460 $ 80,222 $ 43,085
========== ========== ======== ======== ==========
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE> 19
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------
NBAMT
TOTAL GROWTH
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................. $ 555,257 $ 20,451 $ (9,224) $ (3,605)
Net Realized Gain (Loss)..................... 5,890,840 (208,356) 318,256 (7,234)
Net Unrealized Gain (Loss) On Investments.... 3,497,440 74,877 (8,784) 8,600
------------ ------------ ----------- --------
Net Increase (Decrease) In Net Assets
Resulting from Operations.................. 9,943,537 (113,028) 300,248 (2,239)
------------ ------------ ----------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits........... 41,366,505 53,560,270 249,123 359,442
Net Transfers Between Sub-accounts........... 0 0 (1,107,325) 386,477
Surrenders................................... (10,154,466) (11,179,436) (172,730) (58,308)
------------ ------------ ----------- --------
Net Increase (Decrease) In Net Assets
Resulting From Capital Share
Transactions............................... 31,212,039 42,380,834 (1,030,932) 687,611
------------ ------------ ----------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS..................................... 41,155,576 42,267,806 (730,684) 685,372
NET ASSETS:
Beginning of Period.......................... 43,534,767 1,266,961 730,684 45,312
------------ ------------ ----------- --------
End of Period................................ $ 84,690,343 $ 43,534,767 $ 0 $ 730,684
============ ============ =========== ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
16
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ---------------------------------------------------------------------------------------
NBAMT-LIMITED NBAMT
MATURITY BOND BALANCED NBAMT
------------------------------ ------------------------------ PARTNERS
YEAR ENDED YEAR ENDED -------------
DEC. 31, JAN. 20* THRU DEC. 31, JAN. 4* THRU JUN. 12* THRU
1995 DEC. 31, 1994 1995 DEC. 31, 1994 DEC. 31, 1995
------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
$ 100,627 $ (12,808) $ 8,713 $ (3,771) $ (3,299)
120,258 (3,549) 234,012 (6,628) 12,103
(13,949) 13,949 8,253 (8,253) 46,158
----------- ---------- ----------- -------- ----------
206,936 (2,408) 250,978 (18,652) 54,962
----------- ---------- ----------- -------- ----------
1,140,483 3,541,332 284,133 981,291 425,638
(3,293,409) (548,125) (1,369,431) 29,127 2,305,986
(336,036) (708,773) (105,668) (51,778) (6,092)
----------- ---------- ----------- -------- ----------
(2,488,962) 2,284,434 (1,190,966) 958,640 2,725,532
----------- ---------- ----------- -------- ----------
(2,282,026) 2,282,026 (939,988) 939,988 2,780,494
2,282,026 0 939,988 0 0
----------- ---------- ----------- -------- ----------
$ 0 $ 2,282,026 $ 0 $ 939,988 $ 2,780,494
=========== ========== =========== ======== ==========
</TABLE>
- --------------------------------------------------------------------------------
17
<PAGE> 21
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------
AAF AAF
SMALL CAPITALIZATION GROWTH
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)...................... $ (27,252) $ (13,011) $ (20,259) $ (9,474)
Net Realized Gain (Loss).......................... 1,015,080 (51,309) 402,867 (16,829)
Net Unrealized Gain (Loss) On Investments......... (65,649) 92,257 185,826 77,643
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets Resulting
From Operations................................. 922,179 27,937 568,434 51,340
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................ 1,553,855 1,642,052 1,852,564 1,155,761
Net Transfers Between Sub-accounts................ 607,263 436,497 3,091,666 828,667
Surrenders........................................ (377,209) (425,334) (314,980) (258,833)
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions................. 1,783,909 1,653,215 4,629,250 1,725,595
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.......................................... 2,706,088 1,681,152 5,197,684 1,776,935
NET ASSETS:
Beginning of Period............................... 1,863,209 182,057 1,823,987 47,052
---------- ---------- ---------- ----------
End of Period..................................... $ 4,569,297 $ 1,863,209 $ 7,021,671 $ 1,823,987
========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
18
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------------------------------
AST - SELIGMAN AST - SELIGMAN
AAF - MIDCAP HENDERSON HENDERSON
GROWTH INTERNATIONAL EQUITY INTL SMALL CAP
------------------------------- ------------------------------- ---------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MAY 1* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
$ (13,020) $ (4,115) $ (19,083) $ (16,752) $ (3,035)
359,458 2,520 (50,447) 30,239 4,501
(22,628) 29,711 224,005 (62,399) (3,510)
---------- -------- ---------- ----------- ----------
323,810 28,116 154,475 (48,912) (2,044)
---------- -------- ---------- ----------- ----------
1,602,947 472,855 502,827 2,070,903 735,596
658,117 159,097 2,930,457 982,813 686,043
(190,122) (62,011) (541,960) (1,068,514) (2,670)
---------- -------- ---------- ----------- ----------
2,070,942 569,941 2,891,324 1,985,202 1,418,969
---------- -------- ---------- ----------- ----------
2,394,752 598,057 3,045,799 1,936,290 1,416,925
632,773 34,716 2,064,427 128,137 0
---------- -------- ---------- ----------- ----------
$ 3,027,525 $ 632,773 $ 5,110,226 $ 2,064,427 $ 1,416,925
========== ======== ========== =========== ==========
</TABLE>
- --------------------------------------------------------------------------------
19
<PAGE> 23
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------
AST AST
LORD ABBETT GROWTH & INCOME JANCAP GROWTH
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)...................... $ 6,418 $ (8,786) $ (13,547) $ (13,589)
Net Realized Gain (Loss).......................... 421,029 (6,088) 184,745 (53,045)
Net Unrealized Gain (Loss) On Investments......... 452,371 22,685 512,327 1,921
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets Resulting
From Operations................................. 879,818 7,811 683,525 (64,713)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................ 1,668,658 1,634,907 1,244,816 1,644,051
Net Transfers Between Sub-accounts................ 1,893,405 1,067,560 1,692,035 568,663
Surrenders........................................ (377,686) (378,934) (395,583) (537,584)
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions................. 3,184,377 2,323,533 2,541,268 1,675,130
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.......................................... 4,064,195 2,331,344 3,224,793 1,610,417
NET ASSETS:
Beginning of Period............................... 2,430,516 99,172 1,792,311 181,894
---------- ---------- ---------- ----------
End of Period..................................... $ 6,494,711 $ 2,430,516 $ 5,017,104 $ 1,792,311
========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
20
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------------------------
AST AST - FEDERATED AST - FEDERATED
MONEY MARKET UTILITY INCOME HIGH YIELD
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED JAN. 17* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 403,040 $ 142,930 $ 35,295 $ (3,368) $ 36,775 $ (7,781)
0 137 86,997 (25,279) 94,485 (8,632)
0 0 154,937 (11,262) 253,131 (3,175)
------------ ------------ ---------- ---------- ---------- ----------
403,040 143,067 277,229 (39,909) 384,391 (19,588)
------------ ------------ ---------- ---------- ---------- ----------
17,791,010 20,561,899 319,742 1,064,461 1,084,243 1,045,785
(14,985,879) (9,404,298) 795,403 118,585 1,503,618 403,588
(1,856,209) (2,645,914) (282,918) (345,397) (744,530) (259,122)
------------ ------------ ---------- ---------- ---------- ----------
948,922 8,511,687 832,227 837,649 1,843,331 1,190,251
------------ ------------ ---------- ---------- ---------- ----------
1,351,962 8,654,754 1,109,456 797,740 2,227,722 1,170,663
9,015,790 361,036 802,456 4,716 1,170,663 0
------------ ------------ ---------- ---------- ---------- ----------
$ 10,367,752 $ 9,015,790 $ 1,911,912 $ 802,456 $ 3,398,385 $ 1,170,663
============ ============ ========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE> 25
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------------------
AST - PHOENIX AST - PHOENIX
BALANCED ASSET CAPITAL GROWTH
-------------------------------- --------------------------------
YEAR ENDED YEAR ENDED
DEC. 31, YEAR ENDED DEC. 31, JAN. 11* THRU
1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)....................... $ 18,429 $ (9,076) $ (615) $ (1,788)
Net Realized Gain (Loss)........................... 39,693 (7,044) 56,753 (6,905)
Net Unrealized Gain (Loss) On Investments.......... 162,279 8,709 4,589 (4,589)
---------- ---------- --------- --------
Net Increase (Decrease) In Net Assets
Resulting From Operations........................ 220,401 (7,411) 60,727 (13,282)
---------- ---------- --------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................. 145,633 1,671,380 60,791 242,064
Net Transfers Between Sub-accounts................. 1,766,825 163,736 (261,192) 78,148
Surrenders......................................... (385,500) (751,000) (74,041) (93,215)
---------- ---------- --------- --------
Net Increase (Decrease) In Net Assets
Resulting From Capital Share Transactions........ 1,526,958 1,084,116 (274,442) 226,997
---------- ---------- --------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS........................................... 1,747,359 1,076,705 (213,715) 213,715
NET ASSETS:
Beginning of Period................................ 1,138,795 62,090 213,715 0
---------- ---------- --------- --------
End of Period...................................... $2,886,154 $ 1,138,795 $ 0 $ 213,715
========== ========== ========= ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
22
<PAGE> 26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------------------------------
AST - T. ROWE PRICE AST - T. ROWE PRICE AST - T. ROWE
ASSET ALLOCATION INTERNATIONAL EQUITY PRICE NATURAL
------------------------------ ------------------------------ RESOURCES
YEAR ENDED YEAR ENDED -------------
DEC. 31, JAN. 4* THRU DEC. 31, JAN. 4* THRU MAY 19* THRU
1995 DEC. 31, 1994 1995 DEC. 31, 1994 DEC. 31, 1995
------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
$ 4,985 $ (8,353) $ (31,360) $ (20,516) $ (408)
35,938 (6,772) 189,759 (6,516) 623
108,000 9,104 246,132 (71,869) 8,578
---------- --------- ---------- ---------- --------
148,923 (6,021) 404,531 (98,901) 8,793
---------- --------- ---------- ---------- --------
172,468 980,530 1,831,025 2,584,608 25,830
229,988 85,064 1,815,568 1,175,638 268,840
(201,312) (333,630) (530,840) (801,814) (1,105)
---------- --------- ---------- ---------- --------
201,144 731,964 3,115,753 2,958,432 293,565
---------- --------- ---------- ---------- --------
350,067 725,943 3,520,284 2,859,531 302,358
725,943 0 2,859,531 0 0
---------- --------- ---------- ---------- --------
$1,076,010 $ 725,943 $6,379,815 $ 2,859,531 $ 302,358
========== ========= ========== ========== ========
</TABLE>
- --------------------------------------------------------------------------------
23
<PAGE> 27
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------------
AST - FOUNDERS AST - INVESCO
CAPITAL APPRECIATION EQUITY INCOME
--------------------------------- -------------------------------
YEAR ENDED JAN. 10* THRU YEAR ENDED JAN. 4* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................. $ (7,045) $ (4,937) $ 1,405 $ (12,916)
Net Realized Gain (Loss)..................... 541,659 26,811 127,379 (18,005)
Net Unrealized Gain (Loss) On Investments.... 18,540 54,117 349,846 (11,342)
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets
Resulting From Operations.................. 553,154 75,991 478,630 (42,263)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits........... 746,112 788,882 927,382 1,625,871
Net Transfers Between Sub-accounts........... 984,142 286,927 1,068,051 358,856
Surrenders................................... (197,318) (122,594) (287,508) (493,300)
---------- ---------- ---------- ----------
Net Increase (Decrease) In Net Assets
Resulting From Capital Share
Transactions............................... 1,532,936 953,215 1,707,925 1,491,427
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS..................................... 2,086,090 1,029,206 2,186,555 1,449,164
NET ASSETS:
Beginning of Period.......................... 1,029,206 0 1,449,164 0
---------- ---------- ---------- ----------
End of Period................................ $ 3,115,296 $ 1,029,206 $ 3,635,719 $ 1,449,164
========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
24
<PAGE> 28
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------------
AST - PIMCO
LIMITED
MATURITY AST - SCUDDER
AST - PIMCO BOND INTERNATIONAL BOND
TOTAL RETURN BOND ----------- ------------------------------
------------------------------- MAY 8* THRU MAY 18* THRU
YEAR ENDED JAN. 6* THRU DEC. 31, YEAR ENDED DEC. 31,
DEC. 31, 1995 DEC. 31, 1994 1995 DEC. 31, 1995 1994
------------- ------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
$ 18,798 $ (18,563) $ (3,646) $ (276) $ (731)
79,082 (17,517) 2,172 5,671 (85)
639,196 (11,821) 32,616 49,460 (2,877)
---------- ---------- ---------- ---------- --------
737,076 (47,901) 31,142 54,855 (3,693)
---------- ---------- ---------- ---------- --------
2,886,195 2,260,277 297,651 507,501 142,551
4,398,745 765,338 3,834,604 582,592 144,045
(913,097) (507,138) (9,185) (39,481) (41,103)
---------- ---------- ---------- ---------- --------
6,371,843 2,518,477 4,123,070 1,050,612 245,493
---------- ---------- ---------- ---------- --------
7,108,919 2,470,576 4,154,212 1,105,467 241,800
2,470,576 0 0 241,800 0
---------- ---------- ---------- ---------- --------
$ 9,579,495 $ 2,470,576 $4,154,212 $ 1,347,267 $241,800
========== ========== ========== ========== ========
</TABLE>
- --------------------------------------------------------------------------------
25
<PAGE> 29
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------------
AST-EAGLE
GROWTH EQUITY
---------------------------------------
YEAR ENDED JUL. 5* THRU
DEC. 31, 1995 DEC. 31, 1994
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)....................................................... $ (628) $ (89)
Net Realized Gain (Loss)........................................................... 16,968 881
Net Unrealized Gain (Loss) On Investments.......................................... (571) 571
--------- --------
Net Increase (Decrease) In Net Assets Resulting
from Operations.................................................................. 15,769 1,363
--------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................................................. 22,262 29,250
Net Transfers Between Sub-accounts................................................. (45,656) (1,565)
Surrenders......................................................................... (8,511) (12,912)
--------- --------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions.................................................. (31,905) 14,773
--------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS........................................................................ (16,136) 16,136
NET ASSETS:
Beginning of Period................................................................ 16,136 0
--------- --------
End of Period...................................................................... $ 0 $ 16,136
========= ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
26
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------------------------
AVP
AST - BERGER AVP AVP GROWTH &
CAPITAL GROWTH ST MULTI-MKT PREMIER GROWTH INCOME
------------------------------- ------------------------------- ------------------------------- -------------
YEAR ENDED NOV. 23* THRU YEAR ENDED JAN. 23* THRU YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (5,289) $ (4) $ (2,555) $ 5,745 $ (5,917) $ (3,114) $ 1,166
39,803 0 (3,664) (5,466) 286,514 (147) 204,460
100,554 31 20,879 (20,879) 3,688 (3,563) 5,287
-------- -------- --------- ---- --------
135,068 27 14,660 (20,600) 284,285 (6,824) 210,913
-------- -------- --------- ---- --------
337,296 1,127 31,165 379,028 207,367 448,844 126,547
627,438 32,874 (283,372) (19,980) (997,887) 317,165 (926,998)
(35,815) 0 (41,818) (59,083) (224,679) (73,311) (72,002)
-------- -------- --------- ---- --------
928,919 34,001 (294,025) 299,965 (1,015,199) 692,698 (872,453)
-------- -------- --------- ---- --------
1,063,987 34,028 (279,365) 279,365 (730,914) 685,874 (661,540)
34,028 0 279,365 0 730,914 45,040 661,540
-------- -------- --------- ---- -------- --------- ---------
$ 1,098,015 $34,028 $ 0 $ 279,365 $ 0 $ 730,914 $ 0
======== ======== ========= ==== ======== ========= =========
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AVP
GROWTH &
INCOME
-------------
YEAR ENDED
DEC. 31, 1994
-------------
<S> <C>
$ 3,911
(2,671)
(5,389)
(4,149)
360,030
341,456
(40,389)
661,097
656,948
4,592
---------
$ 661,540
=========
</TABLE>
- --------------------------------------------------------------------------------
27
<PAGE> 31
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
------------------------------------------------------------------
AVP
AVP - U.S. GOV'T TOTAL RETURN
HIGH GRADE SECURITIES ------------------------------
------------------------------- YEAR ENDED
YEAR ENDED JAN. 10* THRU DEC. 31, FEB. 17* THRU
DEC. 31, 1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................. $ 6,264 $ 13,156 $ (428) $ (316)
Net Realized Gain (Loss)..................... 119,620 (26,858) 27,033 (259)
Net Unrealized Gain (Loss) On Investments.... 1,643 (1,643) 2,375 (2,375)
--------- --------- --------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Operations............................ 127,527 (15,345) 28,980 (2,950)
--------- --------- --------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits........... 66,402 496,927 15,460 75,384
Net Transfers Between Sub-accounts........... (830,445) 481,516 (166,251) 90,311
Surrenders................................... (173,603) (152,979) (35,161) (5,773)
--------- --------- --------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Capital Share Transactions............ (937,646) 825,464 (185,952) 159,922
--------- --------- --------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS..................................... (810,119) 810,119 (156,972) 156,972
NET ASSETS:
Beginning of Period.......................... 810,119 0 156,972 0
--------- --------- --------- --------
End of Period................................ $ 0 $ 810,119 $ 0 $ 156,972
========= ========= ========= ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
28
<PAGE> 32
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ------------------------------------------------------------------------------------
AVP SVL
INTERNATIONAL BOND
----------------------------------- -----------------------------------
YEAR ENDED JAN. 24* THRU YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
$ (1,668) $ (1,206) $ 36,885 $ 21,533
5,806 14,916 49,316 (19,614)
11,504 (11,504) 14,556 (14,556)
--------- -------- --------- ---------
15,642 2,206 100,757 (12,637)
--------- -------- --------- ---------
3,176 372,251 81,738 655,147
(320,600) 19,060 (731,953) 241,053
(56,218) (35,517) (163,053) (177,113)
--------- -------- --------- ---------
(373,642) 355,794 (813,268) 719,087
--------- -------- --------- ---------
(358,000) 358,000 (712,511) 706,450
358,000 0 712,511 6,061
--------- -------- --------- ---------
$ 0 $ 358,000 $ 0 $ 712,511
========= ======== ========= =========
</TABLE>
- --------------------------------------------------------------------------------
29
<PAGE> 33
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------------
SVL - CAPITAL SVL
GROWTH BALANCED
--------------------------------- -------------------------------
YEAR ENDED JAN. 21* THRU YEAR ENDED FEB. 4* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................. $ (241) $ (718) $ 1,023 $ 850
Net Realized Gain (Loss)..................... 30,414 (2,035) 11,126 (1,628)
Net Unrealized Gain (Loss) On Investments.... (601) 601 (569) 569
--------- -------- -------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Operations............................ 29,572 (2,152) 11,580 (209)
--------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits........... 2,999 153,772 20,059 96,871
Net Transfers Between Sub-accounts........... (123,277) 1,344 (62,709) 4,832
Surrenders................................... (42,330) (19,928) (32,817) (37,607)
--------- -------- -------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Capital Share Transactions............ (162,608) 135,188 (75,467) 64,096
--------- -------- -------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS..................................... (133,036) 133,036 (63,887) 63,887
NET ASSETS:
Beginning of Period.......................... 133,036 0 63,887 0
--------- -------- -------- --------
End of Period................................ $ 0 $ 133,036 $ 0 $ 63,887
========= ======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
30
<PAGE> 34
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------------------------------------------------------------
SVL JAS
INTERNATIONAL GROWTH
------------------------------------- -------------------------------------
YEAR ENDED JAN. 5* THRU YEAR ENDED JAN. 10* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
$ (14,209) $ (8,010) $ 8,759 $ (1,457)
188,293 3,955 165,083 (2,092)
37,761 (37,761) (1,295) 1,295
----------- ---------- --------- --------
211,845 (41,816) 172,547 (2,254)
----------- ---------- --------- --------
449,850 1,137,770 201,988 359,108
(1,691,446) 394,584 (648,651) 72,716
(269,216) (191,571) (88,402) (67,052)
----------- ---------- --------- --------
(1,510,812) 1,340,783 (535,065) 364,772
----------- ---------- --------- --------
(1,298,967) 1,298,967 (362,518) 362,518
1,298,967 0 362,518 0
----------- ---------- --------- --------
$ 0 $ 1,298,967 $ 0 $ 362,518
=========== ========== ========= ========
</TABLE>
- --------------------------------------------------------------------------------
31
<PAGE> 35
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------------
JAS - AGGRESSIVE JAS - WORLDWIDE
GROWTH GROWTH
------------------------------ ------------------------------
YEAR ENDED YEAR ENDED
DEC. 31, YEAR ENDED DEC. 31, JAN. 5* THRU
1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................. $ 5,554 $ 1,689 $ (1,734) $ (2,599)
Net Realized Gain (Loss)..................... 272,516 21,165 109,660 (351)
Net Unrealized Gain (Loss) On Investments.... (72,580) 71,191 1,996 (1,996)
---------- -------- -------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Operations............................ 205,490 94,045 109,922 (4,946)
---------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits........... 190,963 501,246 166,350 280,655
Net Transfers Between Sub-accounts........... (1,134,726) 313,628 (464,669) 60,543
Surrenders................................... (104,507) (97,676) (78,076) (69,779)
---------- -------- -------- --------
Net Increase (Decrease) In Net Assets
Resulting
From Capital Share Transactions............ (1,048,270) 717,198 (376,395) 271,419
---------- -------- -------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS..................................... (842,780) 811,243 (266,473) 266,473
NET ASSETS:
Beginning of Period.......................... 842,780 31,537 266,473 0
---------- -------- -------- --------
End of Period................................ $ 0 $ 842,780 $ 0 $ 266,473
========== ======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
32
<PAGE> 36
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------
JAS JAS - FLEXIBLE JAS - SHORT-TERM
BALANCED INCOME BOND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED JAN. 25* THRU YEAR ENDED YEAR ENDED YEAR ENDED JAN. 26* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,228 $ 239 $ 16,903 $ 13,725 $ 27,728 $ 8,126
31,987 81 44,727 (6,726) 9,105 223
6,245 (6,245) 18,592 (18,327) 6,252 (6,252)
--------- -------- --------- --------- ----------- ---------
39,460 (5,925) 80,222 (11,328) 43,085 2,097
--------- -------- --------- --------- ----------- ---------
2,195 264,388 20,194 578,188 1,364,271 899,382
(106,274) (10,505) (480,612) 36,510 (1,708,024) (461,945)
(182,758) (581) (66,925) (189,798) (134,795) (4,071)
--------- -------- --------- --------- ----------- ---------
(286,837) 253,302 (527,343) 424,900 (478,548) 433,366
--------- -------- --------- --------- ----------- ---------
(247,377) 247,377 (447,121) 413,572 (435,463) 435,463
247,377 0 447,121 33,549 435,463 0
--------- -------- --------- --------- ----------- ---------
$ 0 $ 247,377 $ 0 $ 447,121 $ 0 $ 435,463
========= ======== ========= ========= =========== =========
</TABLE>
- --------------------------------------------------------------------------------
33
<PAGE> 37
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
NOTES TO
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION
American Skandia Life Assurance Corporation Variable Account B -- Class 2 (the
"Account") is a separate investment account of American Skandia Life Assurance
Corporation ("American Skandia"). The Account is registered with the SEC under
the Investment Company Act of 1940 as a unit investment trust. The Account
commenced operations December 16, 1993.
As of December 31, 1995 the Account consisted of twenty-one sub-accounts, each
of which invests only in a single corresponding portfolio of either the
Neuberger and Berman Advisers Management Trust, The Alger American Fund or the
American Skandia Trust (the "Trusts"). Neuberger and Berman Management, Inc. is
the advisor for the Neuberger and Berman Advisers Management Trust. Fred Alger
Management, Inc. is the advisor for The Alger American Fund. American Skandia
Investment Services Incorporated is the investment manager for the American
Skandia Trust, while Seligman Henderson Co., Inc., Lord Abbett & Co., Janus
Capital Corporation, Federated Investment Counseling, Phoenix Investment
Counsel, Inc., J. P. Morgan Investment Management Incorporated, T. Rowe Price
Associates Inc., Rowe Price-Fleming International, Inc., Founders Asset
Management, Inc., INVESCO Trust Company, Pacific Investment Management Company,
Scudder, Stevens & Clark, Inc. and Berger Associates, Inc. are the sub-advisors.
The investment advisors are paid fees for their services by the respective
Trusts.
The following four Class 2 sub-accounts have commenced operations in 1995: the
NBAMT-Partners on June 12, 1995; the AST-Seligman Henderson International Small
Cap on May 1, 1995; the AST- T. Rowe Price Natural Resources on May 19, 1995;
and the AST-PIMCO Limited Maturity Bond on May 8, 1995.
Effective May 1, 1995 the AST-Seligman Henderson International Equity
sub-account changed its name from Henderson International Growth.
The following twenty-one sub-accounts ceased operations on December 29, 1995;
NBAMT-Growth; the NBAMT-Limited Maturity Bond; the NBAMT-Balanced; the
AST-Phoenix Capital Growth; the AST-Eagle Growth Equity; the AVP-Short-Term
Multi-Market; the AVP-Premier Growth; the AVP-Growth & Income; the AVP-U.S.
Government/High Grade Securities; the AVP-Total Return; the AVP-International;
the SVL-Bond; the SVL-Capital Growth; the SVL-Balanced; the SVL-International;
the JAS-Growth; the JAS-Aggressive Growth; the JAS-Worldwide Growth; the
JAS-Balanced; the JAS-Flexible Income and the JAS-Short-Term Bond.
2. VALUATION OF INVESTMENTS
The market value of the investments in the sub-accounts is based on the net
asset values of the Trust shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a first-in first-out basis.
3. INCOME TAXES
American Skandia does not expect to incur any Federal income tax liability on
earnings, or realized capital gains attributable to the Account, therefore, no
charges for Federal income taxes are currently deducted from the Account. If
American Skandia incurs income taxes attributable to the Account, or determines
that such taxes will be incurred, it may make a charge for such taxes against
the Account.
34
<PAGE> 38
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
NOTES TO
FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
Under current laws, American Skandia may incur state and local income taxes (in
addition to premium tax) in several states. The company does not anticipate that
these will be significant. However, American Skandia may make charges to the
Account in the event that the amount of these taxes change.
4. CONTRACT CHARGES
The following contract charges are paid to American Skandia:
Mortality and Expense Risk Charges -- Charged daily against the Account at
an annual rate of .65% of the net assets.
Administrative Fees -- Charged daily against the Account at an annual rate of
.25% of the net assets.
Maintenance Fee -- A maintenance fee equaling the lesser of $35 or 2% may be
assessed against: (a) the initial Purchase Payment; and (b) each Annuity Year
after the first, the Account Value. It applies to the initial Purchase
Payment only if less than $50,000. It is assessed as of the first Valuation
Period of each Annuity Year after the first only if, at that time, the
Account Value of the Annuity is less than $50,000.
35
<PAGE> 39
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
NOTES TO
FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
5. CHANGES IN THE UNITS OUTSTANDING
<TABLE>
<CAPTION>
-------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------
NBAMT - LIMITED
NBAMT - GROWTH MATURITY BOND
----------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 20* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 76,158 4,425 231,497 0
Units Purchased.......................................... 21,029 36,682 109,675 359,217
Units Transferred Between Sub-accounts................... (83,108) 41,144 (308,596) (55,815)
Units Surrendered........................................ (14,079) (6,093) (32,576) (71,905)
------- ------- ------- --------
Units Outstanding End of the Period...................... 0 76,158 0 231,497
======= ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------
AAF AST - SELIGMAN HENDERSON
MIDCAP GROWTH INTERNATIONAL EQUITY
----------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 61,104 3,255 199,313 12,521
Units Purchased.......................................... 111,398 47,595 46,746 197,417
Units Transferred Between Sub-accounts................... 45,805 16,888 259,303 91,134
Units Surrendered........................................ (14,080) (6,634) (52,773) (101,759)
------- ------- ------- --------
Units Outstanding End of the Period...................... 204,227 61,104 452,589 199,313
======= ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------
AST - FEDERATED AST - FEDERATED
UTILITY INCOME HIGH YIELD
----------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 17* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 86,555 467 122,508 0
Units Purchased.......................................... 31,714 110,844 102,869 107,541
Units Transferred Between Sub-accounts................... 74,384 12,204 145,895 41,664
Units Surrendered........................................ (27,677) (36,960) (71,165) (26,697)
------- ------- ------- --------
Units Outstanding End of the Period...................... 164,976 86,555 300,107 122,508
======= ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------
AST - T. ROWE PRICE AST - T. ROWE PRICE
INTERNATIONAL EQUITY NATURAL RESOURCES
----------------------------- -------------------
YEAR ENDED JAN. 4* THRU MAY 19* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- -------------------
<S> <C> <C> <C>
Units Outstanding Beginning of the Period................ 301,423 0 0
Units Purchased.......................................... 182,552 264,699 2,488
Units Transferred Between Sub-accounts................... 182,488 120,989 25,033
Units Surrendered........................................ (55,612) (84,265) (142)
------- ------- -------
Units Outstanding End of the Period...................... 610,851 301,423 27,379
======= ======= =======
</TABLE>
- --------------------------------------------------------------------------------
* Date Operations Commenced.
36
<PAGE> 40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
NBAMT AAF - SMALL
NBAMT - BALANCED PARTNERS CAPITALIZATION AAF - GROWTH
-------------------------------------- ------------- ------------------------------- -------------
YEAR ENDED JAN. 4* THRU JUN. 12* THRU YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
-------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
97,266 0 0 187,387 17,264 177,825
26,464 99,729 36,516 113,725 169,945 135,786
(114,178) 3,025 193,958 55,814 47,423 219,573
(9,552) (5,488) (440) (35,592) (47,245) (26,642)
-------- ------ ------- ------- ------- -------
0 97,266 230,034 321,334 187,387 506,542
======== ====== ======= ======= ======= =======
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AAF - GROWTH
-------------
YEAR ENDED
DEC. 31, 1994
----------------
<S> <C>
4,589
117,603
82,538
(26,905)
-------
177,825
=======
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - SELIGMAN HEND. AST - LORD ABBETT AST - MONEY
INTL SMALL CAP GROWTH & INCOME AST - JANCAP GROWTH MARKET
-------------------- ------------------------------- ------------------------------- -------------
MAY 1* THRU YEAR ENDED DEC. 21* THRU YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
-------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0 238,128 9,793 187,924 17,956 880,903
72,430 138,629 161,906 99,388 166,950 1,692,225
66,470 153,819 104,811 133,317 59,974 (1,426,490)
(909) (32,496) (38,382) (35,928) (56,956) (177,972)
------- ------- ------- ------- ------- -------
137,991 498,080 238,128 384,701 187,924 968,666
======= ======= ======= ======= ======= =======
<CAPTION>
CLASS 2 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AST - MONEY
MARKET
------------
YEAR ENDED
DEC. 31, 1994
----------------
<S> <C>
36,093
2,038,930
(931,463)
(262,657)
-------
880,903
=======
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - PHOENIX AST - PHOENIX AST - T. ROWE PRICE
BALANCED ASSET CAPITAL GROWTH ASSET ALLOCATION
-------------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 11* THRU YEAR ENDED JAN. 4* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
-------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
114,927 6,185 23,203 0 74,058 0
14,069 168,492 5,700 24,865 15,761 99,783
147,198 16,570 (22,408) 8,251 19,141 8,434
(36,457) (76,320) (6,495) (9,913) (19,173) (34,159)
------- ------- ------- ------ ------- -------
239,737 114,927 0 23,203 89,787 74,058
======= ======= ======= ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - FOUNDERS AST - INVESCO AST - PIMCO TOTAL
CAP. APPRECIATION EQUITY INCOME RETURN BOND
-------------------------------------- ------------------------------- -------------------------------
YEAR ENDED JAN. 10* THRU YEAR ENDED JAN. 4* THRU YEAR ENDED JAN. 6* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
-------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
96,278 0 150,719 0 256,950 0
58,187 79,701 78,361 165,131 268,109 231,757
83,179 29,469 89,676 36,322 409,444 77,945
(15,804) (12,892) (25,416) (50,734) (88,147) (52,752)
------- ------- ------- ------- ------- --------
221,840 96,278 293,340 150,719 846,356 256,950
======= ======= ======= ======= ======= ========
<CAPTION>
----------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------
AST - SCUDDER
AST - PIMCO LTD. INTERNATIONAL BOND
MATURITY BOND ------------------------------
---------------- MAY 18* THRU
MAY 8* THRU YEAR ENDED DEC. 31,
DEC. 31, 1995 DEC. 31, 1995 1994
---------------- ------------- ------------
<S> <C> <C> <C>
0 25,171 0
29,331 49,331 14,630
370,820 56,647 14,871
(993) (3,776) (4,330)
--------- ------ -------
399,158 127,373 25,171
========= ====== =======
</TABLE>
- --------------------------------------------------------------------------------
37
<PAGE> 41
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 2
NOTES TO
FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
AST - EAGLE AST - BERGER
GROWTH EQUITY CAPITAL GROWTH
----------------------------- -----------------------------
YEAR ENDED JUL. 5* THRU YEAR ENDED NOV. 23* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 1,634 0 3,419 0
Units Purchased............................................. 1,853 2,931 29,846 117
Units Transferred Between Sub-accounts...................... (2,684) 0 59,519 3,302
Units Surrendered........................................... (803) (1,297) (3,310) 0
------ ------ ------- ------
Units Outstanding End of the Period......................... 0 1,634 89,474 3,419
====== ====== ======= ======
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
AVP - TOTAL RETURN AVP - INTERNATIONAL
----------------------------- -----------------------------
YEAR ENDED FEB. 17* THRU YEAR ENDED JAN. 24* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 16,344 0 33,633 0
Units Purchased............................................. 1,465 7,662 290 34,799
Units Transferred Between Sub-accounts...................... (14,355) 9,258 (28,561) 2,055
Units Surrendered........................................... (3,454) (576) (5,362) (3,221)
------ ------ ------- ------
Units Outstanding End of the Period......................... 0 16,344 0 33,633
====== ====== ======= ======
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
JAS - GROWTH JAS - AGGRESSIVE GROWTH
----------------------------- -----------------------------
YEAR ENDED JAN. 10* THRU YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 34,594 0 62,288 2,674
Units Purchased............................................. 17,766 34,196 13,717 42,847
Units Transferred Between Sub-accounts...................... (44,966) 6,714 (68,934) 24,792
Units Surrendered........................................... (7,394) (6,316) (7,071) (8,025)
------ ------ ------- ------
Units Outstanding End of the Period......................... 0 34,594 0 62,288
====== ====== ======= ======
</TABLE>
- --------------------------------------------------------------------------------
* Date Operations Commenced.
38
<PAGE> 42
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------------------------------
AVP - ST AVP - GROWTH
MULTI-MKT AVP - PREMIER GROWTH & INCOME
------------------------------ ------------------------------ ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, JAN. 23* THRU DEC. 31, YEAR ENDED DEC. 31, YEAR ENDED
1995 DEC. 31, 1994 1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
30,330 0 75,250 4,437 65,886 449
3,360 38,258 16,214 45,774 10,154 35,995
(29,048) (2,001) (70,502) 32,488 (69,773) 33,535
(4,642) (5,927) (20,962) (7,449) (6,267) (4,093)
------ ------- ------- ------ ------ -------
0 30,330 0 75,250 0 65,886
====== ======= ======= ====== ====== =======
<CAPTION>
----------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------
AVP - U.S. GOV'T
HIGH GRADE SECS.
---------------------------------
YEAR ENDED
DEC. 31, JAN. 10* THRU
1995 DEC. 31, 1994
------------ -------------
<S> <C>
85,679 0
6,617 51,331
(75,458) 50,457
(16,838) (16,109)
-------- -------
0 85,679
======== =======
<CAPTION>
----------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------------------------------
SVL - BOND GROWTH SVL - BALANCED
------------------------------ ------------------------------ ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, YEAR ENDED DEC. 31, JAN. 21* THRU DEC. 31, FEB. 4* THRU
1995 DEC. 31, 1994 1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
75,644 604 9,998 0 6,471 0
7,937 68,497 108 11,338 1,745 9,808
(67,415) 25,324 (7,486) 95 (5,086) 544
(16,166) (18,781) (2,620) (1,435) (3,130) (3,881)
------ ------- ------- ------ ------ -------
0 75,644 0 9,998 0 6,471
====== ======= ======= ====== ====== =======
<CAPTION>
---------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------
SYL
INTERNATIONAL
---------------------------------
YEAR ENDED
DEC. 31, JAN. 5* THRU
1995 DEC. 31, 1994
--------- -------------
<S> <C>
122,549 0
41,598 104,506
(140,158) 35,725
(23,989) (17,682)
-------- -------
0 122,549
======== =======
<CAPTION>
-----------------------------------------------------------------------------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------------------------------------------------------------------
JAS - WORLDWIDE JAS - FLEXIBLE
GROWTH JAS - BALANCED INCOME
------------------------------ ------------------------------ ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, JAN. 5* THRU DEC. 31, JAN. 25* THRU DEC. 31, YEAR ENDED
1995 DEC. 31, 1994 1995 DEC. 31, 1994 1995 DEC. 31, 1994
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
22,365 0 23,225 0 45,477 3,334
12,733 23,302 197 24,241 1,880 57,696
(28,908) 4,869 (8,428) (963) (41,119) 3,546
(6,190) (5,806) (14,994) (53) (6,238) (19,099)
------ ------- ------- ------ ------ -------
0 22,365 0 23,225 0 45,477
====== ======= ======= ====== ====== =======
<CAPTION>
---------------------------------
CLASS 2 SUB-ACCOUNTS INVESTING IN:
---------------------------------
JAS - SHORT-TERM
BOND
---------------------------------
YEAR ENDED
DEC. 31, JAN. 26* THRU
1995 DEC. 31, 1994
------------ -------------
<S> <C>
43,662 0
133,413 90,465
(164,153) (46,404)
(12,922) (399)
-------- -------
0 43,662
======== =======
</TABLE>
- -------------------------------------------------------------
39
<PAGE> 43
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE ALGER AMERICAN FUND FOLLOW AT THIS
POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE EDGAR
FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30D; FILE # 811-5550. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN
ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR THE ALLIANCE CAPITAL
NAVIGATOR ANNUITIES.]
<PAGE> 44
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE NEUBERGER & BERMAN ADVISORS
MANAGEMENT TRUST FOLLOW AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH
THE COMMISSION VIA THE EDGAR FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30D; FILE
#811-04255. THE FINANCIAL STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE
NOT AVAILABLE TO OWNERS OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN
SKANDIA ADVISORS PLAN ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR
THE ALLIANCE CAPITAL NAVIGATOR ANNUITIES.]
<PAGE> 45
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE AMERICAN SKANDIA TRUST FUND FOLLOW
AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE
EDGAR FORMAT ON MARCH 7, 1996; FORM TYPE N-30D; FILE # 811-05186. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN
ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR THE ALLIANCE CAPITAL
NAVIGATOR ANNUITIES.]
<PAGE> 46
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED DECEMBER
31, 1995 FINANCIAL STATEMENTS OF THE ALLIANCE VARIABLE PRODUCTS SERIES FUND,
INC. FOLLOW AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE
COMMISSION VIA THE EDGAR FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30B-2; FILE
# 811-5398. THE FINANCIAL STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE
NOT AVAILABLE TO OWNERS OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN
SKANDIA ADVISORS PLAN ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR
THE ALLIANCE CAPITAL NAVIGATOR ANNUITIES.]
<PAGE> 47
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED DECEMBER
31, 1995 FINANCIAL STATEMENTS OF THE SCUDDER VARIABLE LIFE INVESTMENT FUND
FOLLOW AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION
VIA THE EDGAR FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30D; FILE # 811-4257. THE
FINANCIAL STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE
TO OWNERS OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN SKANDIA ADVISORS
PLAN ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR THE ALLIANCE
CAPITAL NAVIGATOR ANNUITIES.]
<PAGE> 48
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE JANUS ASPEN SERIES FOLLOW AT THIS
POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE EDGAR
FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30D; FILE #811-07736. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE ADVISORS SELECT ANNUITY, THE ADVISORS CHOICE ANNUITY NOR THE ADVISORS
DESIGN ANNUITY.]
<PAGE> 49
American Skandia Life
Assurance Corporation
Tower One Corporate Drive
Shelton, CT 06484
----------------------
BULK RATE
U. S. POSTAGE
PAID
NEW YORK, NY
PERMIT NO. 8048
----------------------
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