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CONSECO VARIABLE INSURANCE COMPANY
ANNUAL REPORT
TO CONTRACT OWNERS
December 31, 1999
Conseco Variable Annuity Account E
<PAGE>
ANNUAL REPORT TO CONTRACT OWNERS
TABLE OF CONTENTS
DECEMBER 31, 1999
================================================================================
CONSECO VARIABLE ANNUITY ACCOUNT E PAGE
Statement of Assets and Liabilities as of December 31, 1999 ............. 2
Statements of Operations and Statements of
Changes in Net Assets for the Year Ended December 31, 1999 ............ 6
Statements of Operations and Statements of
Changes in Net Assets for the Year Ended December 31, 1998 ............ 12
Notes to Financial Statements ........................................... 18
Report of Independent Accountants ....................................... 20
1
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================================================
NET ASSET
SHARES COST VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments in portfolio shares, at net asset value (Note 2):
The Alger American Fund:
Growth Portfolio ................................................................. 212,369.9 $10,954,993 $ 13,672,372
Leveraged AllCap Portfolio ....................................................... 323,992.7 12,113,548 18,781,855
MidCap Growth Portfolio .......................................................... 103,913.7 2,696,745 3,349,138
Small Capitalization Portfolio ................................................... 212,283.9 9,024,458 11,707,458
American Century Variable Portfolios, Inc:
Income and Growth Fund ........................................................... 117,633.5 820,625 941,068
International Fund ............................................................... 208,641.0 1,626,572 2,608,013
Value Fund ....................................................................... 626,328.8 4,078,007 3,726,656
Berger Institutional Products Trust:
100 Fund ......................................................................... 148,333.7 1,893,245 2,850,973
Growth and Income Fund ........................................................... 287,825.4 4,885,343 7,612,981
Small Company Growth Fund ........................................................ 104,936.8 1,635,128 2,467,064
BIAM International Fund .......................................................... 204,789.4 2,063,392 2,996,069
Conseco Series Trust:
Balanced Portfolio ............................................................... 1,486,856.9 20,915,762 21,783,656
Equity Portfolio ................................................................. 1,765,906.2 38,863,968 40,934,975
Fixed Income Portfolio ........................................................... 763,707.6 7,575,032 7,167,777
Government Securities Portfolio .................................................. 435,108.5 4,980,560 4,769,239
Money Market Portfolio ........................................................... 14,709,626.8 14,709,627 14,709,627
Dreyfus Stock Index Fund ........................................................... 1,289,837.9 37,449,042 49,594,269
The Dreyfus Socially Responsible Growth Fund, Inc .................................. 248,528.3 7,649,170 9,710,001
Dreyfus Variable Investment Fund:
Disciplined Stock Portfolio ...................................................... 15,469.5 376,282 416,439
International Value Portfolio .................................................... 6,465.2 94,504 101,309
Federated Insurance Series:
High Income Bond Fund II ......................................................... 427,031.7 4,546,053 4,372,805
International Equity Fund II ..................................................... 62,764.5 1,034,358 1,734,811
Utility Fund II .................................................................. 197,791.4 2,836,065 2,838,306
Invesco Variable Investment Funds, Inc:
Equity Income Fund................................................................ 27,369.7 526,682 575,038
High Yield Fund................................................................... 422,498.5 5,021,340 4,862,957
Janus Aspen Series:
Aggressive Growth Portfolio ...................................................... 267,419.3 8,370,700 15,962,256
Growth Portfolio ................................................................. 941,137.1 22,225,389 31,669,262
Worldwide Growth Portfolio ....................................................... 993,430.2 27,081,865 47,436,293
Lazard Retirement Series, Inc:
Equity Portfolio ................................................................. 87,920.4 927,558 1,013,722
Small Cap Portfolio .............................................................. 19,451.4 188,351 191,013
Lord Abbett Series Fund, Inc
Growth and Income Portfolio ...................................................... 41,458.8 918,907 918,726
Mitchell Hutchins Series Trust:
Growth and Income Portfolio ...................................................... 4,739.2 70,390 77,438
Neuberger Berman Advisers Management Trust:
Limited Maturity Bond Portfolio .................................................. 97,047.3 1,306,863 1,284,906
Partners Portfolio ............................................................... 274,020.8 5,205,965 5,381,769
Strong Variable Insurance Funds, Inc:
Mid Cap Growth Fund II ........................................................... 144,973.8 3,256,292 4,402,854
Strong Opportunity Fund II, Inc .................................................... 69,503.1 1,474,480 1,806,384
Van Eck Worldwide Insurance Trust:
Worldwide Bond Fund .............................................................. 214,785.1 2,375,658 2,296,053
Worldwide Emerging Markets Fund .................................................. 164,529.1 1,540,950 2,346,184
Worldwide Hard Assets Fund (formerly Gold and Natural
Resources Fund) (Note 1) ....................................................... 128,733.9 1,526,857 1,410,924
Worldwide Real Estate Fund ....................................................... 7,204.5 69,783 65,921
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets ................................................................................................. 350,548,561
Liabilities:
Net amounts due to Conseco Variable Insurance Company ............................................................. 408,722
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets (Note 6) ............................................................................................. $350,139,839
===================================================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
2
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================================================
TOTAL VALUE
UNITS UNIT VALUE OF UNITS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets attributable to:
Contract owners' deferred annuity reserves:
The Alger American Fund:
Growth Portfolio ......................................................... 5,480,300.6 $ 2.491860 $ 13,656,143
Leveraged AllCap Portfolio ............................................... 3,739,665.2 5.016250 18,759,096
MidCap Growth Portfolio .................................................. 1,789,442.1 1.869335 3,345,066
Small Capitalization Portfolio ........................................... 5,276,834.2 2.215940 11,693,147
American Century Variable Portfolios, Inc.:
Income and Growth Fund ................................................... 746,541.0 1.259139 939,999
International Fund ....................................................... 1,258,065.8 2.070551 2,604,890
Value Fund ............................................................... 3,004,508.6 1.238881 3,722,229
Berger Institutional Products Trust:
100 Fund ................................................................. 1,462,280.5 1.947260 2,847,440
Growth and Income Fund ................................................... 2,890,714.8 2.630360 7,603,620
Small Company Growth Fund ................................................ 1,102,899.8 2.234216 2,464,116
BIAM International Fund .................................................. 2,081,810.5 1.439253 2,996,253
Conseco Series Trust:
Balanced Portfolio ....................................................... 7,850,427.1 2.771503 21,757,485
Equity Portfolio ......................................................... 10,049,304.8 4.068452 40,885,109
Fixed Income Portfolio ................................................... 5,323,180.1 1.344927 7,159,291
Government Securities Portfolio .......................................... 3,757,732.3 1.267688 4,763,633
Money Market Portfolio ................................................... 12,049,203.3 1.219157 14,689,873
Dreyfus Stock Index Fund ................................................... 17,965,037.4 2.757290 49,534,816
The Dreyfus Socially Responsible Growth Fund, Inc. ......................... 3,333,181.2 2.909651 9,698,393
Dreyfus Variable Investment Fund:
Disciplined Stock Portfolio .............................................. 332,230.6 1.252051 415,970
International Value Portfolio ............................................ 85,251.5 1.186966 101,191
Federated Insurance Series:
High Income Bond Fund II ................................................. 3,165,625.8 1.378642 4,364,264
International Equity Fund II ............................................. 645,820.6 2.683147 1,732,831
Utility Fund II .......................................................... 1,632,263.7 1.736793 2,834,904
Invesco Variable Investment Funds, Inc.:
Equity Income Fund ....................................................... 492,759.7 1.165618 574,369
High Yield Fund .......................................................... 4,745,256.4 1.023611 4,857,298
Janus Aspen Series:
Aggressive Growth Portfolio .............................................. 3,617,752.9 4.406952 15,943,265
Growth Portfolio ......................................................... 10,090,318.2 3.134816 31,631,290
Worldwide Growth Portfolio ............................................... 12,380,622.3 3.826970 47,380,277
Lazard Retirement Series, Inc.:
Equity Portfolio ......................................................... 899,537.0 1.125543 1,012,468
Small Cap Portfolio ...................................................... 215,217.6 0.886723 190,838
Lord Abbett Series Fund, Inc.:
Growth and Income Portfolio .............................................. 793,510.8 1.156495 917,691
Mitchell Hutchins Series Trust:
Growth and Income Portfolio .............................................. 71,828.8 1.076908 77,353
Neuberger Berman Advisers Management Trust:
Limited Maturity Bond Portfolio .......................................... 1,194,491.4 1.074523 1,283,509
Partners Portfolio ....................................................... 3,981,862.2 1.348993 5,371,504
Strong Variable Insurance Funds, Inc.:
Mid Cap Growth Fund II ................................................... 1,457,235.0 3.017741 4,397,558
Strong Opportunity Fund II , Inc. .......................................... 984,898.5 1.831885 1,804,221
Van Eck Worldwide Insurance Trust:
Worldwide Bond Fund ...................................................... 2,183,728.7 1.050195 2,293,341
Worldwide Emerging Markets Fund .......................................... 1,845,366.5 1.269899 2,343,429
Worldwide Hard Assets Fund
(formerly Gold and Natural Resources Fund) (Note 1) .................... 1,426,277.7 0.988034 1,409,211
Worldwide Hard Assets Fund (Note 1) ..................................... 65.5 1.378275 91
Worldwide Real Estate Fund ............................................... 80,034.5 0.822657 65,841
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ............................................................................................. $350,123,313
===================================================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
3
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
DECEMBER 31, 1999
===============================================================================
REPORTED VALUE
- -------------------------------------------------------------------------------
Net assets attributable to contract owners'
deferred annuity reserves (from page 3) ....................... $350,123,313
- -------------------------------------------------------------------------------
Contract owners' annuity payment reserves:
Conseco Series Trust:
Money Market Portfolio .................................. 5,534
Federated Insurance Series:
High Income Bond Fund II ................................ 5,388
Neuberger Berman Advisers Management Trust:
Partners Portfolio ...................................... 5,604
- -------------------------------------------------------------------------------
Net assets attributable to contract owners'
annuity payment reserves............................. 16,526
- --------------------------------------------------------------------------------
Net assets......................................... $350,139,839
================================================================================
The accompanying notes are an integral part of these financial statements.
4
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THIS PAGE INTENTIONALLY LEFT BLANK.
5
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
--------------------------------------------------------- ----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 776,884 $ 522,645 $ 343,247 $ 749,200 $ 96
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 115,958 124,584 30,871 92,307 7,684
Administrative fees.................................... 13,915 14,950 3,704 11,077 922
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 129,873 139,534 34,575 103,384 8,606
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)..................... 647,011 383,111 308,672 645,816 (8,510)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized
appreciation (depreciation) of investments:
Net realized gains (losses) on sales of
investments in portfolio shares ................... 102,656 872,252 78,297 80,293 18,320
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ................ 2,011,423 5,347,823 339,394 2,491,281 93,713
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares ........................... 2,114,079 6,220,075 417,691 2,571,574 112,033
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ............................. $ 2,761,090 $ 6,603,186 $ 726,363 $ 3,217,390 $ 103,523
===================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
===================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
--------------------------------------------------------- ----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) .......................... $ 647,011 $ 383,111 $ 308,672 $ 645,816 $ (8,510)
Net realized gains (losses) on sales of investments
in portfolio shares ................................. 102,656 872,252 78,297 80,293 18,320
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .................. 2,011,423 5,347,823 339,394 2,491,281 93,713
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ................................. 2,761,090 6,603,186 726,363 3,217,390 103,523
- -----------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ........................ 4,009,371 3,789,407 725,957 860,397 469, 755
Contract redemptions .................................. (385,154) (247,907) (83,518) (457,073) (8,847)
Net transfers ......................................... 2,263,279 3,593,047 (494,377) 2,156,624 143,774
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions ............ 5,887,496 7,134,547 148,062 2,559,948 604,682
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets ....... 8,648,586 13,737,733 874,425 5,777,338 708,205
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ............................ 5,007,557 5,021,363 2,470,641 5,915,809 231,794
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ............ $ 13,656,143 $ 18,759,096 $ 3,345,066 $ 11,693,147 $ 939,999
===================================================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ---------------------------- -------------------------------------------------------- ------------------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ -- $ 380,194 $ 450 $ -- $ -- $ 16,494 $ 3,987,902 $ 11,479,520 $ 411,110
- ------------------------------------------------------------------------------------------------------------------------------------
20,304 47,022 28,774 92,882 17,904 28,170 260,655 396,895 79,131
2,436 5,643 3,453 11,146 2,149 3,380 31,279 47,627 9,496
- ------------------------------------------------------------------------------------------------------------------------------------
22,740 52,665 32,227 104,028 20,053 31,550 291,934 444,522 88,627
- ------------------------------------------------------------------------------------------------------------------------------------
(22,740) 327,529 (31,777) (104,028) (20,053) (15,056) 3,695,968 11,034,998 322,483
- ------------------------------------------------------------------------------------------------------------------------------------
63,104 (77,104) 99,951 1,243,906 192,400 8,942 349,105 324,163 (80,270)
937,729 (302,377) 859,250 1,969,994 866,219 690,015 1,152,263 1,730,768 (347,279)
- ------------------------------------------------------------------------------------------------------------------------------------
1,000,833 (379,481) 959,201 3,213,900 1,058,619 698,957 1,501,368 2,054,931 (427,549)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 978,093 $ (51,952) $ 927,424 $ 3,109,872 $ 1,038,566 $ 683,901 $ 5,197,336 $ 13,089,929 $ (105,066)
====================================================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ---------------------------- -------------------------------------------------------- ------------------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
====================================================================================================================================
$ (22,740) $ 327,529 $ (31,777) $ (104,028) $ (20,053) $ (15,056) $ 3,695,968 $ 11,034,998 $ 322,483
63,104 (77,104) 99,951 1,243,906 192,400 8,942 349,105 324,163 (80,270)
937,729 (302,377) 859,250 1,969,994 866,219 690,015 1,152,263 1,730,768 (347,279)
- ------------------------------------------------------------------------------------------------------------------------------------
978,093 (51,952) 927,424 3,109,872 1,038,566 683,901 5,197,336 13,089,929 (105,066)
- ------------------------------------------------------------------------------------------------------------------------------------
203,602 505,927 352,778 1,430,861 286,430 22,843 2,692,288 4,249,667 906,132
(24,933) (153,412) (112,033) (793,457) (65,927) (1,166) (1,238,845) (1,658,283) (405,393)
33,834 13,458 (252,139) (2,685,701) 148,372 (14,553) (7,694,332) (5,608,028) 840,161
- ------------------------------------------------------------------------------------------------------------------------------------
212,503 365,973 (11,394) (2,048,297) 368,875 7,124 (6,240,889) (3,016,644) 1,340,900
- ------------------------------------------------------------------------------------------------------------------------------------
1,190,596 314,021 916,030 1,061,575 1,407,441 691,025 (1,043,553) 10,073,285 1,235,834
- ------------------------------------------------------------------------------------------------------------------------------------
1,414,294 3,408,208 1,931,410 6,542,045 1,056,675 2,305,228 22,801,038 30,811,824 5,923,457
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,604,890 $ 3,722,229 $ 2,847,440 $ 7,603,620 $ 2,464,116 $ 2,996,253 $21,757,485 $ 40,885,109 $ 7,159,291
====================================================================================================================================
</TABLE>
7
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
====================================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
--------------------------- ----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 208,403 $ 466,644 $ 323,807 $ 848,258 $ 3,882
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 35,599 120,813 100,043 514,342 3,126
Administrative fees.................................... 4,272 14,497 12,005 61,721 375
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 39,871 135,310 112,048 576,063 3,501
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ...................... 168,532 331,334 211,759 272,195 381
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares .............................. (53,419) -- 569,099 750,331 27,382
Net change in unrealized appreciation
(depreciation) of investments
in portfolio shares ...................... (216,869) -- 1,295,573 6,256,103 1,880
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares ................. (270,288) -- 1,864,672 7,006,434 29,262
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations ........ $ (101,756) $ 331,334 $ 2,076,431 $ 7,278,629 $ 29,643
====================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
====================================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
--------------------------- ----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
====================================================================================================================================
Changes from operations:
Net investment income (loss)........................... $ 168,532 $ 331,334 $ 211,759 $ 272,195 $ 381
Net realized gains (losses) on sales of investments
in portfolio shares ................................. (53,419) -- 569,099 750,331 27,382
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .................. (216,869) -- 1,295,573 6,256,103 1,880
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (101,756) 331,334 2,076,431 7,278,629 29,643
- ------------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments......................... 413,613 5,982,018 2,198,167 9,744,333 243,883
Contract redemptions................................... (152,438) (1,323,488) (331,772) (2,102,160) (1,559)
Net transfers ......................................... 2,570,373 2,668,928 (751,898) 2,613,043 (149,676)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from contract
owners' transactions .............................. 2,831,548 7,327,458 1,114,497 10,255,216 92,648
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets ........... 2,729,792 7,658,792 3,190,928 17,533,845 122,291
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ............................ 2,033,841 7,036,615 6,507,465 32,000,971 293,679
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ................ $ 4,763,633 $ 14,695,407 $ 9,698,393 $ 49,534,816 $ 415,970
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- ---------- ----------------------------------------- --------------------------- -------------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8,041 $ 595,613 $ 53,628 $ 268,51 $ 9,632 $ 325,343 $ 293,381 $ 133,950 $ 63,086
- ------------------------------------------------------------------------------------------------------------------------------------
879 76,596 22,860 41,951 5,554 20,963 106,419 238,216 434,997
105 9,192 2,743 5,034 667 2,515 12,770 28,586 52,200
- ------------------------------------------------------------------------------------------------------------------------------------
984 85,788 25,603 46,985 6,221 23,478 119,189 266,802 487,197
- ------------------------------------------------------------------------------------------------------------------------------------
7,057 509,825 28,025 221,533 3,411 301,865 174,192 (132,852) (424,111)
- ------------------------------------------------------------------------------------------------------------------------------------
91 (249,357) 146,565 102,468 7,321 1,541 1,414,594 334,162 2,571,165
10,335 (209,064) 767,800 (287,128) 43,945 (146,439) 6,256,473 7,430,621 15,961,067
- ------------------------------------------------------------------------------------------------------------------------------------
10,426 (458,421) 914,365 (184,660) 51,266 (144,898) 7,671,067 7,764,783 18,532,232
- ------------------------------------------------------------------------------------------------------------------------------------
$ 17,483 $ 51,404 $ 942,390 $ 36,873 $ 54,677 $ 156,967 $ 7,845,259 $ 7,631,931 $ 18,108,121
====================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- ---------- -------------------------------------------- ------------------------- ------------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
====================================================================================================================================
$ 7,057 $ 509,825 $ 28,025 $ 221,533 $ 3,411 $ 301,865 $ 174,192 $ (132,852) $ (424,111)
91 (249,357) 146,565 102,468 7,321 1,541 1,414,594 334,162 2,571,165
10,335 (209,064) 767,800 (287,128) 43,945 (146,439) 6,256,473 7,430,621 15,961,067
- ------------------------------------------------------------------------------------------------------------------------------------
17,483 51,404 942,390 36,873 54,677 156,967 7,845,259 7,631,931 18,108,121
- ------------------------------------------------------------------------------------------------------------------------------------
29,652 930,590 85,680 937,941 167,974 403,084 2,346,950 5,238,650 7,151,112
(120) (538,823) (188,919) (227,339) (17,639) (122,694) (355,291) (1,184,221) (1,878,924)
9,328 (2,847,499) (897,172) (1,299,462) 223,672 4,277,974 1,143,153 8,275,443 (3,618,581)
- ------------------------------------------------------------------------------------------------------------------------------------
38,860 (2,455,732) (1,000,411) (588,860) 374,007 4,558,364 3,134,812 12,329,872 1,653,607
- ------------------------------------------------------------------------------------------------------------------------------------
56,343 (2,404,328) (58,021) (551,987) 428,684 4,715,331 10,980,071 19,961,803 19,761,728
- ------------------------------------------------------------------------------------------------------------------------------------
44,848 6,773,980 1,790,852 3,386,891 145,685 141,967 4,963,194 11,669,487 27,618,549
- ------------------------------------------------------------------------------------------------------------------------------------
$ 101,191 $ 4,369,652 $ 1,732,831 $ 2,834,904 $ 574,369 $ 4,857,298 $ 15,943,265 $ 31,631,290 $ 47,380,277
====================================================================================================================================
</TABLE>
9
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
--------------------------- ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 36,196 $ 2,590 $ 70,646 $ 1 $ 51,597
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 14,642 1,461 7,538 940 13,084
Administrative fees.................................... 1,757 175 905 113 1,570
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 16,399 1,636 8,443 1,053 14,654
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)..................... 19,797 954 62,203 (1,052) 36,943
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ............................... 61,034 (1,200) 23,084 (136) 3,040
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ................ 1,467 (2,123) (7,310) (5,478) (38,552)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares .......................... 62,501 (3,323) 15,774 (5,614) (35,512)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ........................... $ 82,298 $ (2,369) $ 77,977 $ (6,666) $ 1,431
====================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
--------------------------- ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
====================================================================================================================================
Changes from operations:
Net investment income (loss) .......................... $ 19,797 $ 954 $ 62,203 $ (1,052) $ 36,943
Net realized gains (losses) on sales of investments
in portfolio shares ................................. 61,034 (1,200) 23,084 (136) 3,040
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares ... 1,467 (2,123) (7,310) (5,478) (38,552)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ................................ 82,298 (2,369) 77,977 (6,666) 1,431
- ------------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ........................ 75,768 94,818 341,535 34,644 228,919
Contract redemptions .................................. (17,879) (2,007) (15,618) (1,378) (23,338)
Net transfers ......................................... (316,901) (48,568) 199,363 (145,156) (79,322)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions .............. (259,012) 44,243 525,280 (111,890) 126,259
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets ........ (176,714) 41,874 603,257 (118,556) 127,690
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ............................ 1,189,182 148,964 314,434 195,909 1,155,819
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ............. $ 1,012,468 $ 190,838 $ 917,691 $ 77,353 $ 1,283,509
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- ----------- ---------------------------------------------------------------------
(NOTE 1)
STRONG OLD
MID CAP OPPORTUNITY EMERGING HARD REAL HARD COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE ASSETS TOTAL
================================================================================================================ ==============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 277,185 $ 1,822 $ 220,843 $ 182,453 $ -- $ 18,473 $ 742 $ -- $ 23,132,476
- -------------------------------------------------------------------------------------------------------------- --------------
95,726 27,334 25,173 31,551 18,701 17,441 579 -- 3,319,669
11,487 3,280 3,021 3,786 2,244 2,093 69 -- 398,359
- -------------------------------------------------------------------------------------------------------------- --------------
107,213 30,614 28,194 35,337 20,945 19,534 648 -- 3,718,028
- -------------------------------------------------------------------------------------------------------------- --------------
169,972 (28,792) 192,649 147,116 (20,945) (1,061) 94 -- 19,414,448
- -------------------------------------------------------------------------------------------------------------- --------------
(295,817) 603,446 23,921 46,471 (63,354) (218,833) 1,419 -- 9,081,033
481,873 1,017,981 319,256 (447,508) 1,204,979 447,348 (3,517) -- 57,972,929
- -------------------------------------------------------------------------------------------------------------- --------------
186,056 1,621,427 343,177 (401,037) 1,141,625 228,515 (2,098) -- 67,053,962
- -------------------------------------------------------------------------------------------------------------- --------------
$ 356,028 $ 1,592,635 $ 535,826 $ (253,921) $ 1,120,680 $ 227,454 $ (2,004) $ -- $ 86,468,410
================================================================================================================================
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- ----------- ---------------------------------------------------------------------
(NOTE 1)
STRONG OLD
MID CAP OPPORTUNITY EMERGING HARD REAL HARD COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE ASSETS TOTAL
================================================================================================================ ==================
$ 169,972 $ (28,792) $ 192,649 $ 147,116 $ (20,945) $ (1,061) $ 94 $ -- $ 19,414,448
(295,817) 603,446 23,921 46,471 (63,354) (218,833) 1,419 -- 9,081,033
481,873 1,017,981 319,256 (447,508) 1,204,979 447,348 (3,517) -- 57,972,929
- -------------------------------------------------------------------------------------------------------------- --------------
356,028 1,592,635 535,826 (253,921) 1,120,680 227,454 (2,004) -- 86,468,410
- -------------------------------------------------------------------------------------------------------------- --------------
1,134,268 655,531 476,339 121,658 282,332 94,334 7,278 (1,329) 59,925,157
(554,425) (67,689) (94,458) (198,760) (39,666) (111,836) (1,082) -- (15,189,471)
(3,673,565) 1,315,983 (854,529) (640,897) (131,603) (31,123) 26,384 -- 281,111
- -------------------------------------------------------------------------------------------------------------- --------------
(3,093,722) 1,903,825 (472,648) (717,999) 111,063 (48,625) 32,580 (1,329) 45,016,797
- -------------------------------------------------------------------------------------------------------------- --------------
(2,737,694) 3,496,460 63,178 (971,920) 1,231,743 178,829 30,576 (1,329) 131,485,207
- -------------------------------------------------------------------------------------------------------------- --------------
8,114,802 901,098 1,741,043 3,265,261 1,111,686 1,230,382 35,265 1,420 218,654,632
- -------------------------------------------------------------------------------------------------------------- --------------
$ 5,377,108 $ 4,397,558 $ 1,804,221 $ 2,293,341 $ 2,343,429 $ 1,409,211 $ 65,841 $ 91 $ 350,139,839
============================================================================================================== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
===================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
--------------------------------------------------------- ----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 374,254 $ 129,677 $ 129,887 $ 673,096 $ 1,070
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 33,919 40,525 19,951 68,876 922
Administrative fees.................................... 4,070 4,863 2,394 8,265 111
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 37,989 45,388 22,345 77,141 1,033
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .................... 336,265 84,289 107,542 595,955 37
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ............................... 8,941 374,595 (10,849) 363,207 (4,106)
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ................ 676,695 1,030,800 313,657 (112,117) 26,730
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares ........................... 685,636 1,405,395 302,808 251,090 22,624
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ............................. $ 1,021,901 $ 1,489,684 $ 410,350 $ 847,045 $ 22,661
===================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
===================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
--------------------------------------------------------- ----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
===================================================================================================================================
Changes from operations:
Net investment income (loss) .......................... $ 336,265 $ 84,289 $ 107,542 $ 595,955 $ 37
Net realized gains (losses) on sales of investments
in portfolio shares ................................. 8,941 374,595 (10,849) 363,207 (4,106)
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .................. 676,695 1,030,800 313,657 (112,117) 26,730
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ................................. 1,021,901 1,489,684 410,350 847,045 22,661
- -----------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ........................ 2,215,629 1,041,432 1,080,010 1,987,015 201,735
Contract redemptions .................................. (53,824) (105,224) (28,677) (175,370) (1,637)
Net transfers ......................................... 863,424 247,311 248,802 (2,228,408) 9,035
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions ................ 3,025,229 1,183,519 1,300,135 (416,763) 209,133
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ...................... 4,047,130 2,673,203 1,710,485 430,282 231,794
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ............................ 960,427 2,348,160 760,156 5,485,527 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year .......................... $ 5,007,557 $ 5,021,363 $ 2,470,641 $ 5,915,809 $ 231,794
===================================================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ---------------------------- -------------------------------------------------------- ------------------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 27,110 $ 92,413 $ 4,392 $ 43,198 $ 435 $ 32,039 $ 1,230,591 $ 1,912,300 $ 389,710
- -----------------------------------------------------------------------------------------------------------------------------------
11,080 27,348 18,963 54,118 8,690 27,185 226,010 316,150 71,545
1,330 3,282 2,276 6,494 1,043 3,262 27,121 37,938 8,585
- -----------------------------------------------------------------------------------------------------------------------------------
12,410 30,630 21,239 60,612 9,733 30,447 253,131 354,088 80,130
- -----------------------------------------------------------------------------------------------------------------------------------
14,700 61,783 (16,847) (17,414) (9,298) 1,592 977,460 1,558,212 309,580
- -----------------------------------------------------------------------------------------------------------------------------------
14,441 (10,313) 60,729 102,712 (33,023) 2,777 25,118 (42,192) 70,842
42,844 (53,898) 126,081 741,672 (46,639) 284,596 35,650 1,669,037 (125,689)
- -----------------------------------------------------------------------------------------------------------------------------------
57,285 (64,211) 186,810 844,384 (79,662) 287,373 60,768 1,626,845 (54,847)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 71,985 $ (2,428) $ 169,963 $ 826,970 $ (88,960) $ 288,965 $ 1,038,228 $ 3,185,057 $ 254,733
====================================================================================================================================
====================================================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ---------------------------- -------------------------------------------------------- ------------------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 14,700 $ 61,783 $ (16,847) $ (17,414) $ (9,298) $ 1,592 $ 977,460 $ 1,558,212 $ 309,580
14,441 (10,313) 60,729 102,712 (33,023) 2,777 25,118 (42,192) 70,842
42,844 (53,898) 126,081 741,672 (46,639) 284,596 35,650 1,669,037 (125,689)
- -----------------------------------------------------------------------------------------------------------------------------------
71,985 (2,428) 169,963 826,970 (88,960) 288,965 1,038,228 3,185,057 254,733
- -----------------------------------------------------------------------------------------------------------------------------------
812,918 1,994,912 909,579 1,791,325 793,463 61,604 7,357,525 10,463,939 3,411,455
(11,147) (31,566) (22,486) (258,723) (12,235) (908) (578,798) (741,888) (324,089)
361,982 937,413 150,316 3,090,981 143,546 (12,544) 3,656,283 (1,397,363) (2,737,088)
- -----------------------------------------------------------------------------------------------------------------------------------
1,163,753 2,900,759 1,037,409 4,623,583 924,774 48,152 10,435,010 8,324,688 350,278
- -----------------------------------------------------------------------------------------------------------------------------------
1,235,738 2,898,331 1,207,372 5,450,553 835,814 337,117 11,473,238 11,509,745 605,011
- -----------------------------------------------------------------------------------------------------------------------------------
178,556 509,877 724,038 1,091,492 220,861 1,968,111 11,327,800 19,302,079 5,318,446
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,414,294 $ 3,408,208 $ 1,931,410 $ 6,542,045 $1,056,675 $ 2,305,228 $ 22,801,038 $ 30,811,824 $ 5,923,457
====================================================================================================================================
</TABLE>
13
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
====================================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
--------------------------- ----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 78,409 $ 269,620 $ 244,730 $ 398,526 $ 2,600
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 16,251 66,728 51,873 306,045 1,229
Administrative fees.................................... 1,950 8,007 6,225 36,725 147
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 18,201 74,735 58,098 342,770 1,376
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)..................... 60,208 194,885 186,632 55,756 1,224
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ................................ 6,375 -- 185,607 962,916 36,116
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares.................. 1,874 -- 633,149 4,438,654 38,277
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares ........................... 8,249 -- 818,756 5,401,570 74,393
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ............................. $ 68,457 $ 194,885 $ 1,005,388 $ 5,457,326 $ 75,617
====================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
====================================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
--------------------------- ----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
====================================================================================================================================
Changes from operations:
Net investment income (loss) .......................... $ 60,208 $ 194,885 $ 186,632 $ 55,756 $ 1,224
Net realized gains (losses) on sales of investments
in portfolio shares ................................. 6,375 -- 185,607 962,916 36,116
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .................. 1,874 -- 633,149 4,438,654 38,277
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ................................. 68,457 194,885 1,005,388 5,457,326 75,617
- ------------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ........................ 1,230,619 5,610,327 2,915,040 11,843,387 78,723
Contract redemptions .................................. (20,365) (635,311) (68,419) (690,753) (4,197)
Net transfers ......................................... 312,083 (1,673,324) 529,759 (901,334) 143,536
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from contract owners'
transactions .................................... 1,522,337 3,301,692 3,376,380 10,251,300 218,062
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets .................... 1,590,794 3,496,577 4,381,768 15,708,626 293,679
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ............................ 443,047 3,540,038 2,125,697 16,292,345 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year ....................... $ 2,033,841 $ 7,036,615 $ 6,507,465 $ 32,000,971 $ 293,679
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- ---------- ----------------------------------------- --------------------------- -------------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 3,163 $ 112,989 $ 570 $ 78,210 $ 7,194 $ 14,716 $ -- $ 590,460 $ 848,719
- -----------------------------------------------------------------------------------------------------------------------------------
140 61,051 18,837 22,948 604 699 43,724 122,807 277,413
17 7,326 2,260 2,754 73 84 5,247 14,737 33,290
- -----------------------------------------------------------------------------------------------------------------------------------
157 68,377 21,097 25,702 677 783 48,971 137,544 310,703
- -----------------------------------------------------------------------------------------------------------------------------------
3,006 44,612 (20,527) 52,508 6,517 13,933 (48,971) 452,916 538,016
- -----------------------------------------------------------------------------------------------------------------------------------
(15) 83,981 66,748 78,346 25 (13,130) 69,888 1,278,856 1,098,639
(3,529) (117,533) (73,328) 125,778 4,411 (11,944) 1,055,063 1,296,335 3,129,436
- -----------------------------------------------------------------------------------------------------------------------------------
(3,544) (33,552) (6,580) 204,124 4,436 (25,074) 1,124,951 2,575,191 4,228,075
- -----------------------------------------------------------------------------------------------------------------------------------
$ (538) $ 11,060 $ (27,107) $ 256,632 $ 10,953 $ (11,141) $ 1,075,980 $ 3,028,107 $ 4,766,091
====================================================================================================================================
====================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- ---------- ----------------------------------------- --------------------------- -------------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
====================================================================================================================================
$ 3,006 $ 44,612 $ (20,527) $ 52,508 $ 6,517 $ 13,933 $ (48,971) $ 452,916 $ 538,016
(15) 83,981 66,748 78,346 25 (13,130) 69,888 1,278,856 1,098,639
(3,529) (117,533) (73,328) 125,778 4,411 (11,944) 1,055,063 1,296,335 3,129,436
- -----------------------------------------------------------------------------------------------------------------------------------
(538) 11,060 (27,107) 256,632 10,953 (11,141) 1,075,980 3,028,107 4,766,091
- -----------------------------------------------------------------------------------------------------------------------------------
45,401 2,790,736 436,482 1,356,794 118,885 214,857 1,160,560 4,424,471 10,235,818
(15) (315,350) (54,450) (41,667) (935) (460) (179,148) (305,746) (602,821)
-- 1,339,407 1,043,767 773,434 16,782 (61,289) 109,728 (3,994,752) (2,066,063)
- -----------------------------------------------------------------------------------------------------------------------------------
45,386 3,814,793 1,425,799 2,088,561 134,732 153,108 1,091,140 123,973 7,566,934
- -----------------------------------------------------------------------------------------------------------------------------------
44,848 3,825,853 1,398,692 2,345,193 145,685 141,967 2,167,120 3,152,080 12,333,025
- -----------------------------------------------------------------------------------------------------------------------------------
-- 2,948,127 392,160 1,041,698 -- -- 2,796,074 8,517,407 15,285,524
- -----------------------------------------------------------------------------------------------------------------------------------
$ 44,848 $ 6,773,980 $ 1,790,852 $ 3,386,891 $ 145,685 $ 141,967 $ 4,963,194 $ 11,669,487 $ 27,618,549
====================================================================================================================================
</TABLE>
15
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
--------------------------- ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares......... $ 4,020 $ 20 $ 19,184 $ 13,648 $ 2,889
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees........................ 2,407 332 1,171 939 6,711
Administrative fees.................................... 289 40 140 113 805
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses....................................... 2,696 372 1,311 1,052 7,516
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .................... 1,324 (352) 17,873 12,596 (4,627)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ................................ 30 (183) (1,465) 26,752 514
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ................. 84,696 4,785 7,130 12,525 16,409
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments
in portfolio shares ............................ 84,726 4,602 5,665 39,277 16,923
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ............................ $ 86,050 $ 4,250 $ 23,538 $ 51,873 $ 12,296
====================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
--------------------------- ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
====================================================================================================================================
Changes from operations:
Net investment income (loss) .......................... $ 1,324 $ (352) $ 17,873 $ 12,596 $ (4,627)
Net realized gains (losses) on sales of investments
in portfolio shares ................................. 30 (183) (1,465) 26,752 514
Net change in unrealized appreciation (depreciation) of
investments in portfolio shares ..................... 84,696 4,785 7,130 12,525 16,409
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ................................. 86,050 4,250 23,538 51,873 12,296
- -----------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments......................... 34,427 41,117 298,670 34,614 681,124
Contract redemptions................................... (712) (321) (1,230) (3,248) (14,874)
Net transfers.......................................... 1,069,417 103,918 (6,544) 112,670 451,102
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions .............. 1,103,132 144,714 290,896 144,036 1,117,352
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets.......... 1,189,182 148,964 314,434 195,909 1,129,648
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year............................. -- -- -- -- 26,171
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year........................ $ 1,189,182 $ 148,964 $ 314,434 $ 195,909 $ 1,155,819
====================================================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- ----------- ---------------------------------------------------------------------
(NOTE 1)
STRONG OLD
MID CAP OPPORTUNITY EMERGING HARD REAL HARD COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE ASSETS TOTAL
================================================================================================================ ==============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 227,138 $ 3 $ 61,848 $ 33,029 $ 31,237 $ 666,685 $ -- $ -- $ 8,749,779
- ---------------------------------------------------------------------------------------------------------------- -------------
74,561 6,683 16,228 42,545 17,529 34,829 233 -- 2,119,799
8,947 802 1,947 5,105 2,104 4,180 28 -- 254,376
- ---------------------------------------------------------------------------------------------------------------- -------------
83,508 7,485 18,175 47,650 19,633 39,009 261 -- 2,374,175
- ---------------------------------------------------------------------------------------------------------------- -------------
143,630 (7,482) 43,673 (14,621) 11,604 627,676 (261) -- 6,375,604
- ---------------------------------------------------------------------------------------------------------------- -------------
(245,137) 10,860 (66,197) 61,830 (528,657) (1,068,009) (3,058) -- 2,964,511
(324,545) 130,770 11,247 305,864 40,753 (567,677) (346) 17 14,847,690
- ---------------------------------------------------------------------------------------------------------------- -------------
(569,682) 141,630 (54,950) 367,694 (487,904) (1,635,686) (3,404) 17 17,812,201
- ---------------------------------------------------------------------------------------------------------------- -------------
$ (426,052) $ 134,148 $ (11,277) $ 353,073 $ (476,300) $ (1,008,010) $ (3,665) $ 17 $ 24,187,805
================================================================================================================ =============
====================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- ----------- ---------------------------------------------------------------------
(NOTE 1)
STRONG OLD
MID CAP OPPORTUNITY EMERGING HARD REAL HARD COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE ASSETS TOTAL
================================================================================================================ ==============
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 143,630 $ (7,482) $ 43,673 $ (14,621) $ 11,604 $ 627,676 $ (261) $ -- $ 6,375,604
(245,137) 10,860 (66,197) 61,830 (528,657) (1,068,009) (3,058) -- 2,964,511
(324,545) 130,770 11,247 305,864 40,753 (567,677) (346) 17 14,847,690
- ---------------------------------------------------------------------------------------------------------------- -------------
(426,052) 134,148 (11,277) 353,073 (476,300) (1,008,010) (3,665) 17 24,187,805
- ---------------------------------------------------------------------------------------------------------------- -------------
4,153,659 712,421 764,227 623,450 866,750 573,578 58,434 (23,550) 85,403,562
(149,179) (6,257) (22,064) (343,267) (62,766) (294,353) -- -- (6,164,480)
3,295,749 (40,591) 704,394 (830,498) (1,132,261) (2,574,019) (19,504) 24,730 63,987
- ---------------------------------------------------------------------------------------------------------------- -------------
7,300,229 665,573 1,446,557 (550,315) (328,277) (2,294,794) 38,930 1,180 79,303,069
- ---------------------------------------------------------------------------------------------------------------- -------------
6,874,177 799,721 1,435,280 (197,242) (804,577) (3,302,804) 35,265 1,197 103,490,874
- ---------------------------------------------------------------------------------------------------------------- -------------
1,240,625 101,377 305,763 3,462,503 1,916,263 4,533,186 -- 223 115,163,758
- ---------------------------------------------------------------------------------------------------------------- -------------
$ 8,114,802 $ 901,098 $ 1,741,043 $3,265,261 $ 1,111,686 $ 1,230,382 $ 35,265 $ 1,420 $ 218,654,632
================================================================================================================ ==============
</TABLE>
17
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
================================================================================
(1) GENERAL
Conseco Variable Annuity Account E ("Account E") is registered under the
Investment Company Act of 1940, as amended, as a unit investment trust. Account
E was established on November 12, 1993, and commenced operations on July 25,
1994, as a segregated investment account for individual and group variable
annuity contracts which are registered under the Securities Act of 1933. The
operations of Account E are included in the operations of Conseco Variable
Insurance Company (the "Company") pursuant to the provisions of the Texas
Insurance Code. The Company is an indirect wholly owned subsidiary of Conseco,
Inc., a publicly-held specialized financial services holding company listed on
the New York Stock Exchange.
Prior to June 1, 1995, Account E invested solely in shares of the portfolios
of the Conseco Series Trust. Currently, the following investment options are
available (effective date in parenthesis):
THE ALGER AMERICAN FUND
Growth Portfolio (June 1, 1996)
Leveraged AllCap
Portfolio (June 1, 1995)
MidCap Growth Portfolio (June 1, 1996)
Small Capitalization Portfolio (June 1, 1995)
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
Income and Growth Fund (May 1, 1998)
International Fund (May 1, 1997)
Value Fund (May 1, 1997)
BERGER INSTITUTIONAL PRODUCTS TRUST
100 Fund (June 1, 1996)
Growth and Income Fund (June 1, 1996)
Small Company Growth Fund (June 1, 1996)
BIAM International Fund (May 1, 1997)
CONSECO SERIES TRUST
Balanced Portfolio
Equity Portfolio
Fixed Income Portfolio
Government Securities Portfolio
Money Market Portfolio
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ~ (JUNE 1, 1995)
DREYFUS STOCK INDEX FUND (JUNE 1, 1995)
DREYFUS VARIABLE INVESTMENT FUND (MAY 1, 1998)
International Value Portfolio
Disciplined Stock Portfolio
FEDERATED INSURANCE SERIES (JUNE 1, 1995)
High Income Bond Fund II
International Equity Fund II
Utility Fund II
INVESCO VARIABLE INVESTMENT FUNDS, INC. (MAY 1, 1998)
Equity Income Fund
High Yield Fund
JANUS ASPEN SERIES (JUNE 1, 1995)
Aggressive Growth Portfolio
Growth Portfolio
Worldwide Growth Portfolio
LAZARD RETIREMENT SERIES, INC. (MAY 1, 1998)
Equity Portfolio
Small Cap Portfolio
LORD ABBETT SERIES FUND, INC. (MAY 1, 1998)
Growth and Income Portfolio
MITCHELL HUTCHINS SERIES TRUST (MAY 1, 1998)
Growth and Income Portfolio
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST (MAY 1, 1997)
Limited Maturity Bond Portfolio
Partners Portfolio
STRONG VARIABLE INSURANCE FUNDS, INC.
Mid Cap Growth Fund II (May 1, 1997)
STRONG OPPORTUNITY FUND II (MAY 1, 1997)
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (formerly Gold and Natural
Resources Fund) (June 1,1995)
Worldwide Bond Fund (June 1, 1995)
Worldwide Emerging Markets Fund (June 1, 1996)
Worldwide Real Estate Fund (May 1, 1998)
Van Eck Worldwide Insurance Trust terminated the Worldwide Hard Assets Fund
on May 1, 1997 and the Gold and Natural Resources Fund was renamed the Worldwide
Hard Assets Fund. The remaining units in the terminated fund are owned by a
contract owner who has not transferred the funds.
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 increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION, TRANSACTIONS AND INCOME
Investments in portfolio shares are valued using the net asset value of the
respective portfolios at the end of each New York Stock Exchange business day.
Investment share transactions are accounted for on a trade date basis (the date
the order to purchase or redeem shares is executed) and dividend income is
recorded on the ex-dividend date. The cost of investments in portfolio shares
sold is determined on a first-in first-out basis. Account E does not hold any
investments which are restricted as to resale.
Net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments are allocated to the contracts on
each valuation date based on each contract's pro rata share of the assets of
Account E as of the beginning of the valuation date.
FEDERAL INCOME TAXES
No provision for federal income taxes has been made in the accompanying
financial statements because the operations of Account E are included in the
total operations of the Company, which is treated as a life insurance company
for federal income tax purposes under the Internal Revenue Code. Net investment
income and realized gains (losses) are retained in Account E and are not taxable
until received by the contract owner or beneficiary in the form of annuity
payments or other distributions.
18
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999 AND 1998
================================================================================
ANNUITY RESERVES
Deferred annuity contract reserves are comprised of net contract purchase
payments less redemptions and benefits. These reserves are adjusted daily for
the net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments.
Annuity payment reserves for contracts under which contract owners are
receiving periodic retirement payments are computed according to the 1983 Group
Annuity Mortality Table. The assumed net investment rate is equal to the assumed
rate of accumulation. The annuity unit values for periodic retirement payments
are as follows:.
DECEMBER 31,
1999
- --------------------------------------------------------------------------------
Conseco Series Trust:
Money Market Portfolio................................ 1.000834
Federated Insurance Series:
High Income Bond Fund II.............................. 0.956791
Neuberger Berman Advisers Management Trust:
Partners Portfolio.................................... 1.013185
- --------------------------------------------------------------------------------
(3) PURCHASES AND SALES OF INVESTMENTS IN PORTFOLIO SHARES
The aggregate cost of purchases of investments in portfolio shares was
$139,192,174 and $137,408,045 for the years ended December 31, 1999 and 1998,
respectively. The aggregate proceeds from sales of investments in portfolio
shares were $74,610,705 and $51,611,210 for the years ended December 31, 1999
and 1998, respectively.
(4) DEDUCTIONS AND EXPENSES
Although periodic retirement payments to contract owners vary according to
the investment performance of the portfolios, such payments are not affected by
mortality or expense experience because the Company assumes the mortality and
expense risks under the contracts.
The mortality risk assumed by the Company results from the life annuity
payment option in the contracts in which the Company agrees to make annuity
payments regardless of how long a particular annuitant or other payee lives. The
annuity payments are determined in accordance with annuity purchase rate
provisions established at the time the contracts are issued. Based on the
actuarial determination of expected mortality, the Company is required to fund
any deficiency in the annuity payment reserves from its general account assets.
The expense risk assumed by the Company is the risk that the deductions for
sales and administrative expenses may prove insufficient to cover the actual
sales and administrative expenses. The Company deducts daily from Account E a
fee, which is equal on an annual basis to 1.25 percent of the daily value of the
total investments of Account E, for assuming the mortality and expense risks.
These fees were $3,319,669 and $2,119,799 for the years ended December 31, 1999
and 1998, respectively.
Pursuant to an agreement between Account E and the Company (which may be
terminated by the Company at any time), the Company provides sales and
administrative services to Account E, as well as a minimum death benefit prior
to retirement for the contracts. The Company may deduct a percentage of amounts
surrendered to cover sales expenses. The percentage varies up to 9.00 percent
based upon the number of years the contract has been held. In addition, the
Company deducts units from individual contracts annually and upon full surrender
to cover an administrative fee of $30 unless the value of the contract is
$25,000 or greater. This fee is recorded as a redemption in the accompanying
Statements of Changes in Net Assets. Sales and administrative charges were
$1,055,120 and $489,585 for the years ended December 31, 1999 and 1998,
respectively.
The Company also deducts daily from Account E a fee, which is equal on an
annual basis to 0.15 percent of the daily value of the total investments of
Account E, for administrative expenses. These expenses were $398,359 and
$254,376 for the years ended December 31, 1999 and 1998, respectively.
(5) OTHER TRANSACTIONS WITH AFFILIATES
Conseco Equity Sales, Inc., an affiliate of the Company, is the principal
underwriter and performs all variable annuity sales functions on behalf of the
Company through various retail broker/dealers including Conseco Securities, Inc.
(formerly Conseco Financial Services, Inc. prior to its name change in August
1999), an affiliate of the Company.
(6) NET ASSETS
Net assets consisted of the following at December 31, 1999:
- --------------------------------------------------------------------------------
Proceeds from the sales of units since organization,
less cost of units redeemed ................................ $227,818,892
Undistributed net investment income .......................... 34,190,128
Undistributed net realized gains on sales of investments...... 12,492,767
Net unrealized appreciation of investments ................... 75,638,052
- --------------------------------------------------------------------------------
Net assets ................................................. $350,139,839
================================================================================
19
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
TO THE BOARD OF DIRECTORS OF CONSECO VARIABLE
INSURANCE COMPANY AND CONTRACT OWNERS OF
CONSECO VARIABLE ANNUITY ACCOUNT E
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of the Conseco Variable Annuity
Account E (the Account) at December 31, 1999, and the results of its operations
and the changes for the two years in the period then ended, in conformity with
accounting principles generally accepted in the United States. These financial
statements are the responsibility of the Account's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States which 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, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of portfolio shares owned at December 31, 1999 by correspondence with the funds,
provide a reasonable basis for the opinion expressed above.
/s/ PricewaterhouseCoopers
- --------------------------
Indianapolis, Indiana
February 10, 2000
20
<PAGE>
================================================================================
CONSECO VARIABLE ANNUITY ACCOUNT E
SPONSOR
Conseco Variable Insurance Company - Carmel, Indiana.
DISTRIBUTOR
Conseco Equity Sales, Inc. - Carmel, Indiana.
INDEPENDENT PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP - Indianapolis, Indiana.
21
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT E IS ISSUED BY CONSECO VARIABLE INSURANCE
COMPANY. THE PRODUCT IS UNDERWRITTEN, AND THE SECURITIES WITHIN ARE OFFERED, BY
CONSECO~EQUITY SALES, INC., A BROKER-DEALER FOR CONSECO VARIABLE INSURANCE
COMPANY. BOTH COMPANIES ARE SUBSIDIARIES OF CONSECO, INC., A FINANCIAL SERVICES
ORGANIZATION~HEADQUARTERED IN CARMEL, INDIANA. CONSECO, THROUGH ITS SUBSIDIARY
COMPANIES, IS~ONE OF MIDDLE AMERICA'S LEADING SOURCES FOR INSURANCE, INVESTMENT
AND LENDING~PRODUCTS, HELPING 12 MILLION CUSTOMER STEP UP TO A BETTER, MORE
SECURE FUTURE.
CONSECO EQUITY SALES, INC., IS A MEMBER OF THE NASD.
CONSECO VARIABLE INSURANCE COMPANY
11815 North Pennsylvania Street
Carmel, Indiana 46032
CV-208 (2/00) 05962
(C)1999 Conseco Variable Insurance Company
WWW.CONSECO.COM
INSURANCE INVESTMENTS LENDING
- --------------------------------------------------------------------------------
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