T. Rowe Price
Variable Annuity Account
of First Security
Benefit Life Insurance
and Annuity Company
of New York
Financial Statements
Year ended December 31, 1996
Contents
Report of Independent Auditors. . . . . . . . . . . . . 2
Audited Financial Statements
Balance Sheet . . . . . . . . . . . . . 3
Statement of Operations and
Changes in Net Assets . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . 5
Report of Independent Auditors
The Contract Owners of T. Rowe Price Variable Annuity
Account of First Security Benefit Life Insurance and
Annuity Company of New York and The Board of
Directors of First Security Benefit Life Insurance and
Annuity Company of New York
We have audited the accompanying balance sheet of T. Rowe
Price Variable Annuity Account of First Security Benefit Life
Insurance and Annuity Company of New York (the Company) as of
December 31, 1996, and the related statement of operations and
changes in net assets for the year then ended. These financial
statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
investments owned as of December 31, 1996, by correspondence
with the custodian. 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 audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the financial
position of T. Rowe Price Variable Annuity Account of First
Security Benefit Life Insurance and Annuity Company of New
York at December 31, 1996, and the results of its operations
and changes in its net assets for the year then ended in
conformity with generally accepted accounting principles.
February 7, 1997
Balance Sheet
T. Rowe Price Variable Annuity Account
of First Security Benefit Life Insurance
and Annuity Company of New York
December 31, 1996
(Dollars in Thousands)
Assets
Investments:
T. Rowe Price Portfolios:
New America Growth Portfolio - 130,198
shares at net asset value of $17.67
per share (cost, $2,198) . . . . . . . . $2,301
International Stock Portfolio - 87,096
shares at net asset value of $12.64
per share (cost, $1,036) . . . . . . . . 1,101
Equity Income Portfolio - 174,577 shares
at net asset value of $15.26
per share (cost, $2,483) . . . . . . . . 2,664
Personal Strategy Balanced Portfolio -
39,911 shares at net asset value of $13.44
per share (cost, $512) . . . . . . . . . 536
Limited-Term Bond Portfolio - 73,958 shares
at net asset value of $4.93 per share
(cost, $366) . . . . . . . . . . . . . . 365
_________
Total assets. . . . . . . . . . . . . . . . . . $ 6,967
_________
_________
Net Assets
Net assets are represented by (Note 3):
Number of Unit
Units Value
_______ ______
New America Growth Subaccount:
Accumulation
units. . . . . . . . . . . 143,768 $ 16.00 $ 2,301
International Stock Subaccount:
Accumulation
units. . . . . . . . . . . 86,235 12.77 1,101
Equity Income Subaccount:
Accumulation
units. . . . . . . . . . . 181,250 14.70 2,664
Personal Strategy Balanced
Subaccount:
Accumulation
units. . . . . . . . . . . 39,697 13.51 536
Limited-Term Bond Subaccount:
Accumulation
units. . . . . . . . . . . 33,375 10.92 365
_______
Total net assets. . . . . . . . $ 6,967
_______
_______
See accompanying notes.
Statement of Operations and Changes in Net Assets
T. Rowe Price Variable Annuity Account
of First Security Benefit Life Insurance
and Annuity Company of New York
Year ended December 31, 1996
(Thousands)
New Inter- Personal Limited-
America nationalEquity Strategy Term
Growth Stock Income Balanced Bond
Subac- Subac- Subac- Subac- Subac-
count count count count count
______ _____ _____ _____ _____
Dividend
distributions. . . $ 2 $ 9 $ 45 $ 11 $ 14
Expenses (Note 2):
Mortality and expense
risk fee . . . . . (6) (3) (7)) (2) (1)
______. . . . . . . ______ ______ ______ ______
Net investment
income (loss). . . (4) 6 38 9 13
Capital gain
distributions. . . 15 5 11 9 -
Realized gain on
investments. . . . 24 7 15 4 -
Unrealized appreciation
(depreciation) on
investments. . . . 103 65 181 24 (1)
______ ______ ______ ______ ______
Net realized and unrealized gain
(loss) on
investments. . . . 142 77 207 37 (1)
______ ______ ______ ______ ______
Net increase in net
assets resulting
from
operations . . . . 138 83 245 46 12
Net assets at
beginning of
year . . . . . . . - - - - -
Variable annuity
deposits (Notes 2
and 3) . . . . . . 2,318 1,094 2,526 543 834
Terminations and
withdrawals (Notes 2
and 3). . . . . (155) (76 (107) (53) (481)
______ ______ ______ ______ ______
Net assets at end
of year. . . . . . $2,301 $1,101 $2,664 $ 536 $ 365
______ ______ ______ ______ ______
______ ______ ______ ______ ______
Notes to Financial Statements
T. Rowe Price Variable Annuity Account
of First Security Benefit Life Insurance
and Annuity Company of New York
December 31, 1996
See accompanying notes.
1. Organization and Significant Accounting Policies
Organization
T. Rowe Price Variable Annuity Account (the Account) is a
separate account of First Security Benefit Life Insurance and
Annuity Company of New York (FSBL). The Account is registered
as a unit investment trust under the Investment Company Act of
1940, as amended. The Account currently is divided into five
subaccounts. Each subaccount invests exclusively in shares of
a single corresponding mutual fund. Purchase payments received
by the Account are invested in one of the Portfolios of either
T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income
Series, Inc., or T. Rowe Price International Series, Inc.,
mutual funds not otherwise available to the public. As
directed by the Owners, purchase payments are invested in
shares of New America Growth Portfolio - emphasis on long-term
capital growth through investments in common stocks of
domestic companies, International Stock Portfolio - emphasis
on long-term capital growth through investments in common
stocks of established foreign companies, Equity Income
Portfolio - emphasis on substantial dividend income and
capital appreciation by investing primarily in dividend-paying
common stocks, Personal Strategy Balanced Portfolio - emphasis
on both capital appreciation and income, and Limited-Term Bond
Portfolio - emphasis on income with moderate price fluctuation
by investing in short- and intermediate-term investment grade
debt securities.
T. Rowe Price Associates, Inc. (T. Rowe Price) serves as
the investment advisor to each Portfolio except the
International Stock Portfolio, which is managed by Rowe
Price-Fleming International, Inc., an affiliate of T. Rowe
Price. The investment advisors are responsible for managing
the Portfolio's assets in accordance with the terms of the
investment advisory contracts.
Investment Valuation
Investments in mutual fund shares are carried in the balance
sheet at market value (net asset value of the underlying
mutual fund). The first-in, first-out cost method is used to
determine gains and losses. Security transactions are
accounted for on the trade date.
The cost of investments purchased and proceeds from
investments sold during 1996 were as follows:
1996
_________________________
Cost of Proceeds
Purchases From Sales
___________ ___________
(In Thousands)
New America
Growth Portfolio $2,498 $324
International Stock
Portfolio 1,151 122
Equity Income Portfolio 2,813 345
Personal Strategy
Balanced Portfolio 578 70
Limited-Term
Bond Portfolio 872 506
Notes to Financial Statements (cont.)
T. Rowe Price Variable Annuity Account
of First Security Benefit Life Insurance
and Annuity Company of New York
December 31, 1996
Annuity Reserves
As of December 31, 1996, annuity reserves have not been
established because there are no contracts that have matured
and are in the payout stage. Such reserves would be computed
on the basis of published mortality tables using assumed
interest rates that will provide reserves as prescribed by
law. In cases where the payout option selected is life
contingent, FSBL periodically recalculates the required
annuity reserves, and any resulting adjustment is either
charged or credited to FSBL and not to the Account.
Reinvestment of Dividends
Dividend and capital gains distributions paid by the mutual
fund to the Account are reinvested in additional shares of
each respective Portfolio. Dividend income and capital gains
distributions are recorded as income on the ex-dividend date.
Federal Income Taxes
Under current law, no federal income taxes are payable with
respect to the Account.
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 amounts
reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
2. Variable Annuity Contract Charges
Mortality and expense risks assumed by FSBL are compensated
for by a fee equivalent to an annual rate of .55% of the
average daily net assets of each account.
When applicable, an amount for state premium taxes is
deducted as provided by pertinent state law, either from the
purchase payments or from the amount applied to effect an
annuity at the time annuity payments commence.
3. Summary of Unit Transactions
Units
___________
1996
___________
(in Thousands)
___________
New America Growth Subaccount:
Variable annuity deposits 154
Terminations and withdrawals 11
International Stock Subaccount:
Variable annuity deposits 92
Terminations and withdrawals 6
Equity Income Subaccount:
Variable annuity deposits 189
Terminations and withdrawals 8
Personal Strategy Balanced Subaccount:
Variable annuity deposits 44
Terminations and withdrawals 4
Limited-Term Bond Subaccount:
Variable annuity deposits 7
Terminations and withdrawals 44
