<PAGE>
The Blue Chip Company's-Registered Trademark-
VARIABLE
UNIVERSAL LIFE
ANNUAL REPORT
DECEMBER 31, 1995
[LOGO] CONNECTICUT
MUTUAL
The Blue Chip Company-Registered Trademark-
<PAGE>
CONNECTICUT MUTUAL VARIABLE LIFE SEPARATE ACCOUNT I OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
---------------------------
1995 ANNUAL REPORT
DEAR VUL CONTRACT HOLDER:
The stock and bond markets both turned in impressive performances last
year, making 1995 a banner year for investors. It was a year in which the Dow
Jones Industrial Average exceeded 5200 and the yield on the 30 year Treasury
bond dropped by almost 200 basis points.
What went right for the markets in 1995? Just about everything that
mattered.
We entered the year with a strong economy. The Central Bank, in a
tightening mode, had been increasing interest rates to head off inflation. The
November elections brought victory for the Republicans in Congress, signaling a
better political time for markets.
As expected, the increasing interest rates of 1994 and early 1995 put the
brakes on the economy slowing it sufficiently to avoid higher inflation, but not
enough to cause a recession. The Fed began to ease its grip on interest rates,
the dollar gathered strength, and inflation remained low -- setting a positive
tone for both the bond and stock markets.
At the same time, corporate earnings grew vigorously and the federal
government continued moving toward greater fiscal responsibility -- contributing
to a superlative year for the stock market.
Our portfolio managers were anticipating this type of environment and Blue
Chip Variable Universal Life (BCVUL) investors were able to capitalize on market
trends. All BCVUL Portfolios performed well in their respective categories.
We are certainly pleased with the performance of BCVUL throughout 1995, and
will continue to monitor economic and market conditions to help maintain BCVUL's
position as a top-performing universal life product.
You will likely find that the expertise of our investment professionals is
even more valuable as we grapple with the federal budget battle and anticipate
the presidential elections in the months ahead.
ECONOMIC FORECAST: FIRST AND SECOND QUARTERS 1996
A look ahead at 1996 shows a continuation of 1995, with low inflation, a
slow economy and continued reductions in interest rates by the Fed. This
scenario -- combined with a strong dollar and decreasing rates overseas --
provides a favorable backdrop for the bond market, although most of the rally
seems to be behind us.
A strong bond market and low interest rates should fuel more growth in the
stock market. That growth could, however, be dampened by lackluster corporate
earnings, which could introduce downward pressure on the market and create
volatility.
Our investment managers also are keeping a close eye on Washington.
Although the current battle over the federal budget appears to represent another
step in the march toward fiscal responsibility, it could also create short-term
volatility in the markets. The presidential election in November bears watching,
as well.
Overall, the fundamentals remain positive: a slowing (but still growing)
economy, little inflation, improving prospects of a balanced federal budget and
falling short-term interest rates. Until these dynamics change, we look forward
to another strong year in the financial markets.
SUMMARY
For most investors, the current bull market is a dream come true. But,
anyone who has watched the market over time knows that circumstances can change
quickly and double-digit returns can easily dwindle.
Successful investors anticipate those ups and downs and ride them out --
because they know that, in the long run, the stock market has provided financial
rewards. That's why we, too, stick to a tried and true investment discipline
designed to work in good times and in bad, over time.
<PAGE>
On the whole, we are pleased with the results of BCVUL for 1995 and we hope
you share our enthusiasm and optimism for the coming year. If you want to know
more about BCVUL and the options available to you, talk to your registered
representative.
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
THE BLUE CHIP COMPANY'S VARIABLE
UNIVERSAL LIFE INVESTMENT OPTIONS
GOVERNMENT SECURITIES PORTFOLIO
The Government Securities Portfolio of the CML Fund seeks to provide a high
level of current income with a high degree of safety of principal by investing
primarily in securities that are issued or guaranteed as to principal and
interest by the U.S. government, its agencies, authorities or
instrumentalities and by obligations that are fully collateralized or
otherwise fully backed by U.S. Government Securities.*
INCOME PORTFOLIO
The Income Portfolio of the CML Fund seeks to obtain a maximum level of income
consistent with prudent investment risk and preservation of capital by
investing primarily in fixed-income debt securities anticipated to have an
average maturity of eight to twelve years from the date of purchase.
TOTAL RETURN PORTFOLIO
The Total Return Portfolio of the CML Fund seeks to maximize over time the
return achieved from capital appreciation and income by varying the allocation
of the assets of the Portfolio among stocks, corporate bonds, and securities
issued by the U.S. Government and its instrumentalities, and money market
instruments of the type acquired respectively by the Growth Portfolio, the
Income Portfolio, and the Money Market Portfolio.
GROWTH PORTFOLIO
The Growth Portfolio of the CML Fund seeks to achieve long-term growth of
capital by investing primarily in common stocks with low price-earnings ratios
and better than anticipated earnings.
MONEY MARKET PORTFOLIO
The Money Market Portfolio of the Fidelity VIPF Fund seeks to invest in a
diversified portfolio of high-quality, short-term debt instruments with the
objective of obtaining maximum current income consistent with the preservation
of capital and liquidity.**
HIGH INCOME PORTFOLIO
The High Income Portfolio of the Fidelity VIPF Fund seeks to obtain a high
level of current income by investing primarily in high-yielding, lower-rated
fixed income securities (commonly referred to as "junk bonds"), while also
considering growth of capital. These securities are often considered to be
speculative and involve greater risk of default or price changes than
securities assigned a high quality rating. For more information about these
lower-rated securities, see "Risks of Lower-Rated Debt Securities" in the
Fidelity VIPF Fund prospectus.***
OVERSEAS PORTFOLIO
The Overseas Portfolio of Fidelity VIPF Fund seeks long-term growth of capital
primarily through investments in foreign securities and provides a means for
aggressive investors with a higher risk tolerance to diversify their own
portfolios by investing in companies and economies outside of the United
States.****
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ONLY FOUR OF THE PORTFOLIOS OF CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES
FUND I, INC. (THE GOVERNMENT SECURITIES PORTFOLIO, THE INCOME PORTFOLIO, THE
TOTAL RETURN PORTFOLIO AND THE GROWTH PORTFOLIO) ARE AVAILABLE UNDER THE
VARIABLE UNIVERSAL LIFE CONTRACT.
THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A
PROSPECTUS.
*THE GOVERNMENT BACKING APPLIES ONLY TO THE TIMELY PAYMENT OF PRINCIPAL AND
INTEREST AND DOES NOT APPLY TO THE SHARES OF THE FUND
**AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE
MONEY MARKET WILL MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
***THESE FINDS INVEST IN LOWER RATED SECURITIES THAT INVOLVE SPECIAL ADDITIONAL
RISKS DUE TO THE LOWER CREDIT QUALITY OF THE SECURITIES PORTFOLIO. YOU
SHOULD BE AWARE OF THE POSSIBLE HIGHER LEVEL OF VOLATILITY AND INCREASED
RISK OF DEFAULT INVOLVED IN THESE FUNDS.
****THERE ARE SPECIAL RISKS ASSOCIATED WITH INTERNATIONAL INVESTING SUCH AS
POLITICAL CHANGES AND CURRENCY FLUCTUATIONS.
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF NET ASSETS CONNECTICUT MUTUAL VARIABLE LIFE SEPARATE ACCOUNT I OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
<TABLE>
<S> <C>
ASSETS
Investments, at market:
Connecticut Mutual Financial Services Series Fund I,
Inc.
Government Securities Portfolio
32,522 shares (Cost $35,045) $ 34,744
Income Portfolio
92,493 shares (Cost $115,407) 113,951
Total Return Portfolio
744,184 shares (Cost $1,297,459) 1,305,092
Growth Portfolio
876,072 shares (Cost $2,144,499) 2,212,491
-----------
3,666,278
-----------
Fidelity Variable Insurance Products Fund
Money Market Portfolio
264,435 shares (Cost $264,435) 264,435
High Income Portfolio
12,186 shares (Cost $140,815) 146,842
Overseas Portfolio
17,290 shares (Cost $283,740) 294,791
-----------
706,068
-----------
Due from Affiliates 22,432
-----------
NET ASSETS (variable universal life policyholder
liabilities) $4,394,778
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE POLICYHOLDER LIABILITIES
At December 31, 1995, the variable universal life policyholder UNITS OWNED BY
liabilities of the Account consisted of the following: PARTICIPANTS UNIT VALUE
<S> <C> <C>
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I, INC.
Government Securities Sub-Account 29,497 1.176771
Income Sub-Account 100,706 1.168392
Total Return Sub-Account 1,060,363 1.240274
Growth Sub-Account 1,622,408 1.378981
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Money Market Sub-Account 220,415 1.051596
High Income Sub-Account 131,124 1.203890
Overseas Sub-Account 276,706 1.085435
<CAPTION>
VARIABLE UNIVERSAL LIFE POLICYHOLDER LIABILITIES
VARIABLE UNIVERSAL
LIFE
At December 31, 1995, the variable universal life policyholder POLICYHOLDER
liabilities of the Account consisted of the following: LIABILITIES
<S> <C>
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I, INC.
Government Securities Sub-Account $ 34,711
Income Sub-Account 117,664
Total Return Sub-Account 1,315,141
Growth Sub-Account 2,237,269
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Money Market Sub-Account 231,788
High Income Sub-Account 157,859
Overseas Sub-Account 300,346
-----------
$4,394,778
-----------
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 1
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS CONNECTICUT MUTUAL VARIABLE LIFE SEPARATE ACCOUNT I OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
For the year ended December 31, 1995
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I,
INC.
GOVERNMENT TOTAL
SECURITIES INCOME RETURN
<S> <C> <C> <C>
INVESTMENT INCOME (LOSS)
Income:
Dividends $1,827 $6,996 $90,186
Expenses:
Mortality and Expense Risk Fees 129 308 5,414
------ ------ -------
NET INVESTMENT INCOME (LOSS) 1,698 6,688 84,772
------ ------ -------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain from Fund Share Transactions 958 551 1,864
Unrealized (Depreciation) Appreciation (287) (1,434) 8,246
------ ------ -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 671 (883) 10,110
------ ------ -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,369 $5,805 $94,882
------ ------ -------
------ ------ -------
<CAPTION>
GROWTH
<S> <C>
INVESTMENT INCOME (LOSS)
Income:
Dividends $ 147,400
Expenses:
Mortality and Expense Risk Fees 9,114
---------------
NET INVESTMENT INCOME (LOSS) 138,286
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain from Fund Share Transactions 11,659
Unrealized (Depreciation) Appreciation 70,327
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 81,986
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 220,272
---------------
---------------
</TABLE>
2 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
MONEY HIGH
MARKET INCOME OVERSEAS
<S> <C> <C> <C>
INVESTMENT INCOME (LOSS)
Income:
Dividends $ 14,756 $ 484 $ 42
Expenses:
Mortality and Expense Risk Fees 1,258 588 1,421
------- ------ -------
NET INVESTMENT INCOME (LOSS) 13,498 (104) (1,379)
------- ------ -------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain from Fund Share Transactions -- 183 858
Unrealized (Depreciation) Appreciation -- 5,970 11,040
------- ------ -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- 6,153 11,898
------- ------ -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 13,498 $ 6,049 $ 10,519
------- ------ -------
------- ------ -------
</TABLE>
The accompanying notes are an integral part of these financial statements. 3
<PAGE>
<TABLE>
<S> <C>
STATEMENTS OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL VARIABLE LIFE SEPARATE ACCOUNT I OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
For the year ended December 31, 1995 and the period from
inception (October 3, 1994) to December 31, 1994
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I, INC.
GOVERNMENT SECURITIES INCOME TOTAL RETURN
<S> <C> <C> <C> <C> <C> <C>
1995 1994 1995 1994 1995 1994
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ 1,698 $ 16 $ 6,688 $ 21 $ 84,772 $ 699
Net Realized Gain from Fund
Share Transactions 958 -- 551 -- 1,864 --
Unrealized (Depreciation)
Appreciation (287) (14) (1,434) (22) 8,246 (613)
------------- ----- ----------- ----- ----------- -------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations 2,369 2 5,805 (1) 94,882 86
------------- ----- ----------- ----- ----------- -------------
FROM UNIT TRANSACTIONS:
Purchases by Policyholders 35,984 290 94,980 311 915,605 11,338
Withdrawals by Policyholders (5,722) (8) (12,803) (14) (162,228) (177)
Net Transfers from (to) other
Sub-Accounts 1,796 -- 29,386 -- 455,253 382
------------- ----- ----------- ----- ----------- -------------
Net Increase in Net Assets from
Unit Transactions 32,058 282 111,563 297 1,208,630 11,543
------------- ----- ----------- ----- ----------- -------------
INCREASE IN NET ASSETS 34,427 284 117,368 296 1,303,512 11,629
------------- ----- ----------- ----- ----------- -------------
NET ASSETS
Beginning of Period 284 -- 296 -- 11,629 --
------------- ----- ----------- ----- ----------- -------------
End of Period $ 34,711 $ 284 $ 117,664 $ 296 $1,315,141 $ 11,629
------------- ----- ----------- ----- ----------- -------------
------------- ----- ----------- ----- ----------- -------------
<CAPTION>
GROWTH
<S> <C> <C>
1995 1994
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ 138,286 $ 2,598
Net Realized Gain from Fund
Share Transactions 11,659 --
Unrealized (Depreciation)
Appreciation 70,327 (2,335)
----------- -------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations 220,272 263
----------- -------------
FROM UNIT TRANSACTIONS:
Purchases by Policyholders 1,755,304 31,325
Withdrawals by Policyholders (226,725) (588)
Net Transfers from (to) other
Sub-Accounts 422,885 34,533
----------- -------------
Net Increase in Net Assets from
Unit Transactions 1,951,464 65,270
----------- -------------
INCREASE IN NET ASSETS 2,171,736 65,533
----------- -------------
NET ASSETS
Beginning of Period 65,533 --
----------- -------------
End of Period $2,237,269 $ 65,533
----------- -------------
----------- -------------
</TABLE>
4 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
MONEY MARKET HIGH INCOME OVERSEAS
<S> <C> <C> <C> <C> <C> <C>
1995 1994 1995 1994 1995 1994
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ 13,498 $ 55 $ (104) $ (3) $ (1,379) $ 0
Net Realized Gain from Fund
Share Transactions -- -- 183 -- 858 --
Unrealized (Depreciation)
Appreciation -- -- 5,970 57 11,040 11
------------- -------- --------- ------- --------- -------
Net Increase (Decrease) in Net
Assets Resulting from
Operations 13,498 55 6,049 54 10,519 11
------------- -------- --------- ------- --------- -------
FROM UNIT TRANSACTIONS:
Purchases by Policyholders 1,322,346 45,173 118,646 5,627 234,603 575
Withdrawals by Policyholders (75,748) (8,952) (12,809) (82) (34,121) (56)
Net Transfers from (to) other
Sub-Accounts (1,028,864) (35,720) 40,374 -- 88,010 805
------------- -------- --------- ------- --------- -------
Net Increase in Net Assets from
Unit Transactions 217,734 501 146,211 5,545 288,492 1,324
------------- -------- --------- ------- --------- -------
INCREASE IN NET ASSETS 231,232 556 152,260 5,599 299,011 1,335
------------- -------- --------- ------- --------- -------
NET ASSETS
Beginning of Period 556 -- 5,599 -- 1,335 --
------------- -------- --------- ------- --------- -------
End of Period $231,788 $556 $157,859 $5,599 $300,346 $1,335
------------- -------- --------- ------- --------- -------
------------- -------- --------- ------- --------- -------
</TABLE>
The accompanying notes are an integral part of these financial statements. 5
<PAGE>
<TABLE>
<S> <C>
NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL VARIABLE LIFE SEPARATE ACCOUNT I OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
1. ORGANIZATION
Connecticut Mutual Variable Life Separate Account I (the Account) is a
separate account within Connecticut Mutual Life Insurance Company (Connecticut
Mutual). Although the Account is an integral part of Connecticut Mutual, it is
registered as a unit investment trust under the Investment Company Act of
1940, as amended (the 1940 Act). The assets attributable to policies
participating in the Account are held for the benefit of the participants and
are not chargeable with liabilities arising out of any other business that
Connecticut Mutual may conduct.
The Account currently offers seven sub-accounts. Each sub-account invests
exclusively in a corresponding investment portfolio of Connecticut Mutual
Financial Services Series Fund I, Inc. (Series Fund) managed by G.R. Phelps &
Co., Inc., a wholly-owned subsidiary of Connecticut Mutual, or of the Variable
Insurance Products Fund (VIPF) managed by Fidelity Management & Research
Company. Series Fund and VIPF are open-end diversified series management
investment companies registered under the 1940 Act.
A policyholder may allocate funds to a fixed interest account which is part of
Connecticut Mutual's general account, the results of which are not presented
herein. The fixed interest account has not been registered under the
Securities Act of 1933 and Connecticut Mutual's general account has not been
registered as an investment company under the 1940 Act. Accordingly, the
assets attributable to policies in the fixed interest account are chargeable
with liabilities arising out of business that Connecticut Mutual may conduct
and are not reflected in the accompanying financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)FUND SHARE TRANSACTIONS - Transactions in Series Fund and VIPF are recorded
on the trade date. The cost of shares sold is determined on the basis of
identified cost.
(b)VALUATION OF INVESTMENT SECURITIES - Investments in each fund are valued at
their closing net asset value per share on December 31, 1995. Valuation of
securities by Series Fund is discussed in Note 1 of Series Fund's Notes to
Financial Statements which are included elsewhere in this report. Refer to
the VIPF financial statements for policies regarding valuation of
investment securities held by VIPF.
(c)FEDERAL INCOME TAXES - The operations of the Account form a part of the
total operations of Connecticut Mutual and are not taxed separately.
Connecticut Mutual is taxed as a life insurance company under Subchapter L
of the Internal Revenue Code of 1986, as amended. The Account will not be
taxed as a regulated investment company under Subchapter M of the Internal
Revenue Code. Accordingly, no provision for income taxes has been required
in the accompanying financial statements.
(d)OTHER - Certain reclassifications have been made to prior year amounts to
conform with current year presentation.
3. CONTRACT CHARGES
A monthly charge is deducted from the policy value to compensate Connecticut
Mutual for the cost of insurance which is the anticipated cost of providing
death proceeds to beneficiaries of those insureds who die prior to the
maturity date. Because the cost of insurance depends on a number of variables,
it can vary from month to month.
A monthly charge of $5 is deducted from the policy value to compensate
Connecticut Mutual for actual expenses incurred in the administration and
underwriting of the policy. During the first ten policy years, Connecticut
Mutual assesses an additional daily charge of .00068% (.25% on an annual
basis) of the value of the Account's assets for costs involved with the
administration of the Account.
For assuming mortality and expense risks, Connecticut Mutual makes a daily
charge equal to .0024% (.90% on an annual basis) of the value of the Account's
assets. This charge may be increased or decreased by the Board of Directors of
Connecticut Mutual once each year, subject to compliance with applicable state
and federal requirements, but it may not exceed 1.275% on an annual basis. The
mortality risk is that insureds may live for a shorter time than anticipated,
and Connecticut Mutual will therefore pay an aggregate amount of death
proceeds which are greater than anticipated. The expense risk is that expenses
incurred in issuing and administering the policies will exceed the amounts
realized from the administrative charges discussed above.
6
<PAGE>
4. CHANGE IN UNIT VALUES
<TABLE>
<CAPTION>
DECEMBER DECEMBER PERCENT
31, 1994 31, 1995 CHANGE
UNIT UNIT PERCENT SINCE
SUB-ACCOUNTS VALUE VALUE CHANGE INCEPTION
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND I, INC.:
Government Securities 1.005848 1.176771 +16.99% +17.68%
Income 0.997037 1.168392 +17.19% +16.84%
Total Return 1.007377 1.240274 +23.12% +24.03%
Growth 1.013802 1.378981 +36.02% +37.90%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
Money Market 1.003588 1.051596 + 4.78% + 5.16%
High Income 1.009786 1.203890 +19.22% +20.39%
Overseas 1.001193 1.085435 + 8.41% + 8.54%
</TABLE>
5. SUBSEQUENT EVENT
On September 8, 1995, the Board of Directors of Connecticut Mutual approved
the merger of Connecticut Mutual and Massachusetts Mutual Life Insurance
Company. Thereafter, a definitive agreement was signed by both companies. On
January 27, 1996, Connecticut Mutual and its insurance subsidiary
policyholders and other insureds and annuitants approved the merger. The
merger was subsequently reviewed by the insurance regulatory authorities in
Connecticut and Massachusetts and approved. It is anticipated that the merger
will be effective on March 1, 1996.
7
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Connecticut Mutual Variable Life Separate Account I of
Connecticut Mutual Life Insurance Company
and to the Owners of Units of Interest Therein:
We have audited the accompanying statement of net assets of Connecticut
Mutual Variable Life Separate Account I of Connecticut Mutual Life
Insurance Company as of December 31, 1995, and the related statement of
operations for the year then ended, and the statements of changes in net
assets for the year then ended and for the period from inception, October
3, 1994, to December 31, 1994. 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 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. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Connecticut Mutual
Variable Life Separate Account I of Connecticut Mutual Life Insurance
Company as of December 31, 1995, the results of its operations for the
year then ended, and the changes in its net assets for the year then ended
and for the period from inception, October 3, 1994, to December 31, 1994,
in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 15, 1996
8
<PAGE>
CONNECTICUT MUTUAL
LIFE INSURANCE COMPANY
--------------------------------------
BOARD OF DIRECTORS AND OFFICERS
JAMES R. BIRLE, Director
President
Resolute Partners, Incorporated
ANDREW F. BRIMMER, PH.D., Director
President
Brimmer & Company, Inc.
FRANK C. CARLUCCI, III, Director
Chairman
The Carlyle Group
GENE CHAO, PH.D., Director
Chairman and Chief Executive Officer
Computer Projections, Inc.
PATRICIA D. DENNIS, Director
Senior Vice President and Assistant
General Counsel
SBC Communications Inc.
WILLIAM B. ELLIS, PH.D., Director
Retired Chairman
Northeast Utilities
ROBERT M. FUREK, Director
President and Chief Executive Officer
Heublein, Inc.
HOWARD GOLDFEDER, Director
Retired Chairman and Chief Executive
Officer
Federated Department Stores, Inc.
GEORGE B. HARVEY, Director
Chairman, President and Chief Executive
Officer
Pitney Bowes, Inc.
JOHN F. MAYPOLE, Director
Managing Partner
Peach State Real Estate Holding Company
DAVID E. SAMS, JR., Director
President and Chief Executive Officer
Connecticut Mutual Life Insurance Company
ANNE MELISSA DOWLING
Chief Product and Investment Officer
JOHN D. LOEWENBERG
Executive Vice President
ANN F. LOMELI
Corporate Secretary and Counsel
J. BRINKE MARCUCCILLI
Senior Vice President and
Chief Financial Officer
SCOTT C. PETERS
Vice President and Treasurer
KATHERINE MCG. SULLIVAN
Senior Vice President and
General Counsel
This report is prepared for the general information of contract owners and is
not an offer of contracts of The Blue Chip Company's Variable Universal Life. It
should not be used in connection with any offer except in conjunction with the
Prospectus which contains all pertinent information including the applicable
sales charges.
<PAGE>
CONNECTICUT MUTUAL FINANCIAL SERVICES
SERIES FUND I, INC.
A N N U A L
R E P O R T
DECEMBER 31, 1995
Money Market Portfolio
Government Securities Portfolio
Income Portfolio
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
<PAGE>
The audited annual financial statements of Connecticut Mutual Financial
Services Series Fund I, Inc. are incorporated by reference to Form N-30D
(Accession Number 0000912057-96-006041) filed with the SEC on April 5, 1996.
