Dear Variable Annuity Owner:
The U.S. stock and bond markets were exceptionally good to investors in 1995.
Major international markets had good years as well, although most of them lagged
the US market. Results in the subaccounts of the MEMBERS(R) Variable Annuity
reflect these strong markets as shown below:
Percent increase
in Unit Value from
Subaccount 12/31/94 through 12/31/95
- -------------------------------------------------------------------------
Capital Appreciation Stock 29.0%
Growth and Income Stock 29.9%
Balanced 20.5%
Bond 14.9%
Money Market 3.8%
International Stock 9.7%
- -------------------------------------------------------------------------
World Governments 12.8%
- -------------------------------------------------------------------------
This booklet is divided into several sections. Each section contains the
semiannual report for a component of the MEMBERS(R) Variable Annuity. The first
section contains the following reports for the Century Variable Annuity Account:
Statement of Assets and Liabilities............................page 2
Statement of Operations........................................page 3
Statement of Changes in Net Assets.............................page 4
Notes to the Financial Statements..............................page 6
Independent Auditors' Report...................................page 10
The Century Variable Annuity Account invests in mutual funds. The results
reflect the deduction of the separate account level charges. Returns at the
subaccount level shown above are slightly lower than at the mutual fund level as
a result of these charges.
The remaining sections of this booklet cover the mutual funds and include
discussions of the fund results and the managers' outlook. The second section
contains the report for the Ultra Series Fund which includes the Capital
Appreciation Stock Fund, Growth and Income Stock Fund, Balanced Fund, Bond Fund,
Money Market Fund, and Treasury 2000 Fund. The third section is the report for
the T. Rowe Price International Stock Portfolio of the T. Rowe Price
International Series, Inc., and the last section has the financial information
and results for the MFS(R) World Government SeriesSM of the MFS(R) Variable
Insurance TrustSM.
The past year was a good one for the MEMBERS(R) Variable Annuity. The net assets
in the Century Variable Account increased from $24.6 million 12/31/94 to well
over $124 million on 12/31/95. We believe the MEMBERS(R) Variable Annuity is an
excellent vehicle to help you plan for your long term financial needs. We value
our relationship with you and we want to do all we can to help you meet your
financial objectives.
Sincerely,
/s/ Michael B. Kitchen
Michael B. Kitchen
President and Chief Executive Officer
Century Life of America
1
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
Statement of Assets and Liabilities
December 31, 1995
<TABLE>
<CAPTION>
Capital
Appreciation Growth and Money International World
Assets: Stock Income Stock Balanced Bond Market Stock Governments
Investments in Ultra Series Fund: Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ---------- ----------
(note 2)
<S> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Stock Fund,
2,086,907 shares at net asset
value of $12.51 per share
(cost $24,415,887) $26,110,628 $ -- $ -- $ -- $ -- $ -- $ --
Growth and Income Stock Fund,
1,968,681 shares at net asset
value of $18.20 per share
(cost $34,205,133) -- 35,835,999 -- -- -- -- --
Balanced Fund, 2,199,371 shares
at net asset value of $14.63
per share (cost $31,252,862) -- -- 32,175,887 -- -- -- --
Bond Fund, 595,013 shares at
net asset value of $10.63
per share (cost $6,145,356) -- -- -- 6,324,290 -- -- --
Money Market Fund, 6,730,748
shares at net asset value of
$1.00 per share
(cost $6,730,748) -- -- -- -- 6,730,748 -- --
Investments in T. Rowe Price
International Fund, Inc.:
International Stock Portfolio,
1,061,910 shares at net asset
value of $11.26 per share
(cost $11,182,572) -- -- -- -- -- 11,957,105 --
Investments in MFS(R) Variable
Insurance TrustSM:
World Governments Series,
561,893 shares at net asset
value of $10.17 per share
(cost $5,862,605) -- -- -- -- -- -- 5,714,455
---------- ---------- ---------- --------- --------- ---------- ---------
Total assets 26,110,628 35,835,999 32,175,887 6,324,290 6,730,748 11,957,105 5,714,455
---------- ---------- ---------- --------- --------- ---------- ---------
Liabilities:
Accrued adverse mortality and
expense charges 2,664 3,649 3,268 642 701 1,223 583
Other accrued expenses 320 438 392 77 84 147 70
---------- ---------- ---------- --------- --------- ---------- ---------
Total liabilities 2,984 4,087 3,660 719 785 1,370 653
---------- ---------- ---------- --------- --------- ---------- ---------
Net assets $26,107,644 $35,831,912 $32,172,227 $6,323,571 $6,729,963 $11,955,735 $5,713,802
========== ========== ========== ========= ========= ========== =========
Units outstanding (note 5) 2,024,589 2,807,876 2,698,049 556,749 637,911 1,090,681 505,990
========== ========== ========== ========= ========= ========== =========
Net asset value per unit $12.90 $12.76 $11.92 $11.36 $10.55 $10.96 $11.29
========== ========== ========== ========= ========= ========== =========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
Statement of Operations
December 31, 1995
<TABLE>
<CAPTION>
Capital
Appreciation Growth and Money International World
Stock Income Stock Balanced Bond Market Stock Governments
Investment income (loss): Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income $912,104 $2,685,202 $1,945,490 $238,857 $263,872 $19,336 $536,112
Adverse mortality and expense
charges (note 3) (145,906) (213,588) (203,400) (38,995) (63,592) (89,431) (44,506)
Administrative charges (17,509) (25,631) (24,408) (4,679) (7,631) (10,732) (5,341)
-------- -------- -------- ------- ------- ------- -------
Net investment income (loss) 748,689 2,445,983 1,717,682 195,183 192,649 (80,827) 486,265
-------- -------- -------- ------- ------- ------- -------
Realized and unrealized gain (loss)
on investments:
Realized gain (loss) on security
transactions:
Proceeds from sale of securities 23,890 94,892 105,902 96,061 9,541,079 78,789 206,445
Cost of securities sold (22,412) (87,944) (101,600) (92,912) (9,541,079) (75,665) (194,407)
-------- -------- -------- ------- -------- ------- --------
Net realized gain (loss) on
security transactions 1,478 6,948 4,302 3,149 0 3,124 12,038
Net change in unrealized
appreciation or depreciation
on investments 1,856,614 1,848,620 1,148,835 216,889 0 873,668 (114,274)
--------- --------- -------- ------- -------- ------- --------
Net gain (loss) on investments 1,858,092 1,855,568 1,153,137 220,038 0 876,792 (102,236)
--------- --------- -------- ------- -------- ------- --------
Net increase (decrease) in net
assets resulting from operations $2,606,781 $4,301,551 $2,870,819 $415,221 $192,649 $795,965 $384,029
========= ========= ========= ======= ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
Statement of Changes in Net Assets
For Seven Months Ended December 31, 1994 and the Year Ended December 31, 1995
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK SUBACCOUNT GROWTH AND INCOME STOCK SUBACCOUNT
Operations: 1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net investment income (loss) $748,689 $145,302 $2,445,983 $148,380
Net realized gain (loss) on
security transactions 1,478 (290) 6,948 (424)
Net change in unrealized appreciation
or depreciation on investments 1,856,614 (161,872) 1,848,620 (217,754)
-------- -------- -------- --------
Change in net assets from
operations 2,606,781 (16,860) 4,301,551 (69,798)
--------- --------- --------- --------
Capital unit transactions (note 5):
Proceeds from sales of units 26,775,941 3,693,101 34,898,103 6,494,288
Cost of units repurchased (6,523,112) (428,207) (9,194,950) (597,282)
--------- --------- --------- --------
Change in net assets from capital
unit transactions 20,252,829 3,264,894 25,703,153 5,897,006
--------- --------- --------- --------
Increase (decrease) in net assets 22,859,610 3,248,084 30,004,704 5,827,208
Net assets:
Beginning of period 3,248,034 0 5,827,208 0
--------- --------- --------- --------
End of period $26,107,644 $3,248,034 $35,831,912 $5,827,208
========= ========= ========= =========
<CAPTION>
BALANCED SUBACCOUNT BOND SUBACCOUNT
Operations: 1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net investment income (loss) $1,717,682 $187,116 $195,183 $28,852
Net realized gain (loss) on
security transactions 4,302 (387) 3,149 (189)
Net change in unrealized appreciation
or depreciation on investments 1,148,835 (225,809) 216,889 (37,955)
--------- -------- --------- --------
Change in net assets from
operations 2,870,819 (39,080) 415,221 (9,292)
--------- -------- --------- --------
Capital unit transactions (note 5):
Proceeds from sale of units 32,100,084 7,250,087 7,330,321 1,434,559
Cost of units repurchased (9,369,392) (640,293) (2,685,189) (162,049)
--------- -------- --------- --------
Change in net assets from capital
unit transactions 22,730,692 6,609,794 4,645,132 1,272,510
--------- -------- --------- --------
Increase (decrease) in net assets 25,601,511 6,570,716 5,060,353 1,263,218
Net assets:
Beginning of period 6,570,716 0 1,263,218 0
---------- --------- --------- ---------
End of period $32,172,227 $6,570,716 $6,323,571 $1,263,218
========== ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
Statement of Changes in Net Assets
For Seven Months Ended December 31, 1994 and the Year Ended December 31, 1995
<TABLE>
<CAPTION>
MONEY MARKET SUBACCOUNT INTERNATIONAL STOCK SUBACCOUNT
Operations: 1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net investment income (loss) $192,649 $28,183 ($80,827) ($11,114)
Net realized gain (loss) on
security transactions 0 0 3,124 652
Net change in unrealized appreciation
or depreciation on investments 0 0 873,668 (99,135)
-------- -------- --------- --------
Change in net assets from
operations 192,649 28,183 795,965 (109,597)
-------- -------- --------- --------
Capital unit transactions (note 5):
Proceeds from sales of units 26,622,937 10,832,302 13,898,714 3,864,444
Cost of units repurchased (22,701,986) (8,244,122) (6,004,541) (489,250)
--------- --------- --------- --------
Change in net assets from capital
unit transactions 3,920,951 2,588,180 7,894,173 3,375,194
--------- --------- --------- --------
Increase (decrease) in net assets 4,113,600 2,616,363 8,690,138 3,265,597
Net assets:
Beginning of period 2,616,363 0 3,265,597 0
--------- --------- ---------- --------
End of period $6,729,963 $2,616,363 $11,955,735 $3,265,597
========= ========= ========== =========
<CAPTION>
WORLD GOVERNMENTS SUBACCOUNT
Operations: 1995 1994
---- ----
<S> <C> <C>
Net investment income (loss) $486,265 $41,152
Net realized gain (loss) on
security transactions 12,038 (5)
Net change in unrealized appreciation
or depreciation on investments (114,274) (33,876)
--------- --------
Change in net assets from
operations 384,029 7,271
--------- --------
Capital unit transactions (note 5):
Proceeds from sale of units 7,213,831 2,215,210
Cost of units repurchased (3,747,086) (359,453)
--------- --------
Change in net assets from capital
unit transactions 3,466,745 1,855,757
--------- --------
Increase (decrease) in net assets 3,850,774 1,863,028
Net assets:
Beginning of period 1,863,028 --
--------- --------
End of period $5,713,802 $1,863,028
========= =========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
Notes to Financial Statements
(1) Organization
The Century Variable Annuity Account (the Variable Account) is a unit
investment trust registered under the Investment Company Act of 1940 with
the Securities and Exchange Commission. The Variable Account was
established as a separate investment account within Century Life of America
(the Company) to receive and invest net premiums paid under variable
annuity contracts (Contracts).
Although the assets in the Variable Account are the property of the
Company, the assets in the Variable Account attributable to the Contracts
are not chargeable with liabilities arising out of any other business which
the Company may conduct. The assets of the Variable Account are available
to cover the general liabilities of the Company only to the extent that the
Variable Account's assets exceed its liabilities arising under the
Contracts. The Company has the right to transfer to the general account any
assets of the Variable Account which are in excess of reserves and other
contract liabilities. All obligations arising under the Contracts are
general corporate obligations of the Company.
(2) Significant Accounting Policies
Investments
The Variable Account currently is divided into seven subaccounts but may,
in the future, include additional subaccounts. Each subaccount invests
exclusively in shares of a single underlying fund. (The term fund is used
to mean an investment portfolio sometimes called a fund, i.e., Ultra Series
Fund, T. Rowe Price International Fund, Inc., MFS(R) Variable Insurance
TrustSM, or any other open-end management investment company or unit
investment trust in which a subaccount invests.) The income, gains and
losses, realized or unrealized, from the assets allocated to each
subaccount are credited to or charged against that subaccount without
regard to income, gains or losses from any other subaccount.
The Variable Account invests in shares of Ultra Series Fund, T. Rowe Price
International Fund, Inc., and MFS(R) Variable Insurance TrustSM. Each is a
management investment company of the series type with one or more funds.
Each is registered with the SEC as an open-end, management investment
company. Such registration does not involve supervision of the management
or investment practices or policies of the companies or their funds by the
SEC.
Ultra Series Fund currently has five funds available as investment options
under the Contracts while T. Rowe Price International Fund, Inc. and MFS(R)
Variable Insurance TrustSM each have one fund available as an investment
option under the Contracts. Ultra Series Fund and MFS(R) Variable Insurance
TrustSM also have other funds that are not available under the Contracts.
All three companies may, in the future, create additional funds that may or
may not be available as investment options under the Contracts. Each fund
has its own investment objectives and the income, gains and losses for each
fund are determined separately for that fund.
Century Investment Management Co. (CIMCO) serves as the Investment Adviser
to the Ultra Series Fund and manages its assets in accordance with general
policies and guidelines established by the board of trustees of the Ultra
Series Fund. The Company owns one half of CIMCO's outstanding stock and one
half is owned indirectly by CUNA Mutual Insurance Society.
Rowe Price-Fleming International, Inc. (RPFI) serves as the Investment
Adviser to the International Stock Portfolio and manages its assets in
accordance with general policies and guidelines established by the board of
directors of T. Rowe Price International Fund, Inc. RPFI was founded in
1979 as a joint venture between T. Rowe Price Associates, Inc. and Robert
Fleming Holdings Limited.
Massachusetts Financial Services Company (MFS) serves as the Investment
Adviser to the MFS World Governments Series and manages its assets in
accordance with general policies and guidelines established by the board of
trustees of MFS(R) Variable Insurance TrustSM. MFS is a subsidiary of Sun
6
<PAGE>
Life Assurance Company of Canada (U.S.) which, in turn, is a subsidiary of
Sun Life Assurance Company of Canada.
The assets of each fund are held separate from the assets of the other
funds, and each fund is offered at a price equal to its respective net
asset value per share, without sales charge. Dividends and capital gain
distributions from each fund are reinvested in that fund. Investments in
shares of the Funds are stated at market value which is the net asset value
per share as determined by the Funds. Realized gains and losses from
security transactions are reported on an average cost basis.
Dividend income is recorded on the ex-dividend date.
Federal Income Taxes
Currently, no charge is made against the Variable Account for any federal,
state or local taxes (other than premium taxes) that the Company incurs or
that may be attributable to the Variable Account or the Contracts. The
Company may, however, make such a charge in the future from surrender
value, death benefits or annuity payments, as appropriate. Such taxes may
include taxes (levied by any government entity) which the Company
determines to have resulted from: (1) the establishment or maintenance of
the Variable Account, (2) receipt by the Company of purchase payments, (3)
issuance of the Contracts, or (4) the payment of annuity payments.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
(3) Fees and Charges
Organization Costs
Century Life of America absorbed all organization expenses of the Variable
Account.
Contract Charges
Surrender Charge (Contingent Deferred Sales Charge). No charge for sales
expenses is deducted from purchase payments at the time purchase payments
are paid. However, a surrender charge is deducted upon surrender or partial
withdrawal of purchase payments within 7 years of their being paid and, in
certain circumstances, upon payment of a death benefit or the election of
certain annuity payment options.
For purchase payments withdrawn or surrendered within one year of having
been paid, the charge is 7% of the amount of the payment withdrawn or
surrendered. For each purchase payment, the surrender charge decreases by
1% for each full year that has elapsed since the payment was made. No
surrender charge is assessed upon the withdrawal or surrender of the
contract value in excess of aggregate purchase payments or on purchase
payments made more than 7 years prior to the withdrawal or surrender.
Subject to certain restrictions. for the first partial withdrawal (or
surrender) in each contract year, an amount equal to 10% of aggregate
purchase payments subject to a surrender charge (as of the time of
withdrawal or surrender) may be surrendered without a surrender charge. The
surrender charge also may be waived in certain circumstances as provided in
the Contracts.
Annual Contract Fee. On each contract anniversary (or upon surrender of the
Contract) prior to the annuity date, the Company deducts an annual contract
fee of $30 from the variable contract value. After the annuity date, the
Company deducts this fee from variable annuity payments. A pro-rated
portion of the fee is deducted upon annuitization of a Contract except on a
contract anniversary.
7
<PAGE>
Transfer Fee. No charge is made for transfers, however, the Company
reserves the right to charge $10 for the 13th and each subsequent transfer
during a Contract year.
Premium Taxes. If state or other premium taxes are applicable to a
Contract, they will be deducted either: (a) from purchase payments as they
are received, (b) from contract value upon surrender or partial withdrawal,
(c) upon application of adjusted contract value to an annuity payment
option, or (d) upon payment of a death benefit. The Company, however,
reserves the right to deduct premium taxes at the time it pays such taxes.
Variable Account Charges
Mortality and Expense Risk Charge. The Company deducts a daily mortality
and expense risk charge to compensate it for assuming certain mortality and
expense risks. The charge is deducted from the assets of the Variable
Account at an annual rate of 1.25% (approximately 0.85% for mortality risk
and 0.40% for expense risks).
Asset-Based Administration Charge. The Company deducts a daily
administration charge to compensate it for certain expenses it incurs in
administration of the Contract. The charge is deducted from the assets of
the Variable Account at an annual rate of 0.15%.
(4) Investment Transactions
The cost of shares purchased, including reinvestment of dividend
distributions, during the year ended December 31, 1995, was as follows:
Capital Appreciation Stock Fund.............................. $21,029,252
Growth and Income Stock Fund................................. 28,249,882
Balanced Fund................................................ 24,558,931
Bond Fund.................................................... 4,937,973
Money Market Fund............................................ 13,764,819
International Stock Portfolio................................ 7,899,001
World Governments Series..................................... 4,159,434
-----------
$104,599,292
===========
(5) Unit Activity from Contract Transactions
Transactions in units of each subaccount of the Variable Account for the
years ended December 31, 1994 and 1995, were as follows:
<TABLE>
<CAPTION>
Capital
Appreciation Growth and Money International World
Stock Income Stock Balanced Bond Market Stock Governments
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at June 1, 1994 0 0 0 0 0 0 0
Units sold 367,724 654,214 729,365 144,031 1,074,936 374,996 222,086
Units repurchased (42,802) (60,615) (64,686) (16,365) (817,314) (48,043) (35,931)
-------- -------- -------- ------- -------- -------- -------
Units outstanding at December 31, 1994 324,922 593,599 664,679 127,666 257,622 326,923 186,155
-------- -------- -------- ------- -------- -------- -------
Units sold 2,250,573 2,997,868 2,868,364 676,502 2,565,795 1,336,544 663,603
Units repurchased (550,906) (783,591) (834,995) (247,419) (2,185,506) (572,787) (343,768)
-------- -------- -------- ------- -------- -------- -------
Units outstanding at December 31, 1995 2,024,589 2,807,876 2,698,049 556,749 637,911 1,090,681 505,990
======== ======== ======== ======= ======== ======== =======
</TABLE>
8
<PAGE>
(6) Annuitization
As of December 31, 1995, there were no annuitized contracts.
(7) Condensed Financial Information
The table below gives per unit information about the financial history of
each subaccount for each period.
<TABLE>
<CAPTION>
Capital Appreciation Growth and Income Balanced Bond
Stock Subaccount Stock Subaccount Subaccount Subaccount
Net asset value: 1995* 1994** 1995* 1994** 1995* 1994** 1995* 1994**
----- ------ ----- ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period $10.00 $10.00 $9.82 $10.00 $9.89 $10.00 $9.89 $10.00
End of period 12.90 10.00 12.76 9.82 11.92 9.89 11.36 9.89
Percentage increase in unit
value during period 29.0% (0.0)% 29.9% (1.8)% 20.5% (1.1)% 14.9% (1.1)%
Number of units outstanding
at end of period 2,024,589 324,922 2,807,876 593,599 2,698,049 664,679 556,749 127,666
<CAPTION>
Money Market International World Governments
Subaccount Stock Subaccount Subaccount
Net asset value: 1995* 1994** 1995* 1994** 1995* 1994**
----- ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $10.16 $10.00 $9.99 $10.00 $10.01 $10.00
End of period 10.55 10.16 10.96 9.99 11.29 10.01
Percentage increase in unit
value during period 3.8% 1.6% 9.7% (0.1)% 12.8% 0.1%
Number of units outstanding
at end of period 637,911 257,622 1,090,681 326,923 505,990 186,155
For the Money Market Subaccount, the "seven-day average yield" for the
seven days ended December 31, 1995, was 3.56% and the "effective yield" for
that period was 3.68%.
<FN>
* 1995 data is for the year ended December 31, 1995.
**1994 data is for the seven months ended December 31, 1994.
</FN>
</TABLE>
9
<PAGE>
CENTURY VARIABLE ANNUITY ACCOUNT
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Century Life of America and Contract Owners of Century Variable Annuity Account:
We have audited the statements of assets and liabilities of the Capital
Appreciation Stock Subaccount, Growth and Income Stock Subaccount, Balanced
Subaccount, Bond Subaccount, Money Market Subaccount, International Stock
Subaccount, and the World Governments Subaccount of the Century Variable Annuity
Account as of December 31, 1995, the related statements of operations for the
year then ended, changes in net assets, and the condensed financial information
for the year ended December 31, 1995 and the seven-month period ended December
31, 1994. These financial statements and condensed financial information are the
responsibility of the Account's management. Our responsibility is to express an
opinion on these financial statements and condensed financial information 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 and condensed
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Investments owned at December 31, 1995 were verified
by audit of the statements of assets and liabilities of the underlying funds of
Ultra Series Fund and confirmation with MFS Variable Insurance Trust and T. Rowe
Price. 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, the financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of the Capital Appreciation Stock Subaccount, Growth and Income Stock
Subaccount, Balanced Subaccount, Bond Subaccount, Money Market Subaccount,
International Stock Subaccount and the World Governments Subaccount of Century
Variable Annuity Account as of December 31, 1995, the results of their
operations for the year then ended, changes in their net assets, and the
condensed financial information for the year ended December 31, 1995 and the
seven-month period ended December 31, 1994, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
Des Moines, Iowa
February 16, 1996
10
<PAGE>
