GECA VARIABLE INVESTMENT ACCOUNT
Financial Statements
(Unaudited)
June 30, 1999
<PAGE>
GECA Variable Investment Account
Table of Contents
June 30, 1999
Page
Financial Statements:
(Unaudited)
Statements of Assets and Liabilities 1
Statements of Operations 2
Statements of Changes in Net Assets 3
Notes to Financial Statements (Unaudited) 4
<PAGE>
GECA VARIABLE INVESTMENT ACCOUNT
Statements of Assets and Liabilities
(Unaudited)
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
--------------------------------------------------------------------------
Premier
Growth Value International U.S. Money
Income Equity Equity Equity Equity Market
Assets Fund Fund Fund Fund Fund Fund
- ------ ------------- ----------- -------- ------------- ------- --------
<S> <C>
Investments in GE Investments Funds, Inc.,
at fair value:
Income Fund (1,707,882 shares,
cost $23,530,055) $20,682,451 -- -- -- -- --
Premier Growth Equity Fund (291,940 shares,
cost $18,564,112) -- 23,574,155 -- -- -- --
Value Equity Fund (977,975 shares,
cost $14,638,098) -- -- 16,322,403 -- -- --
International Equity Fund (816,463 shares,
cost $9,829,263) -- -- -- 10,287,434 -- --
U.S. Equity Fund (848,764 shares,
cost $27,240,761) -- -- -- -- 32,448,248 --
Money Market Fund (4,864,893 shares,
cost $4,864,893) -- -- -- -- -- 4,864,893
------------ ---------- ---------- ---------- ---------- ---------
Total assets $20,682,451 23,574,155 16,322,403 10,287,434 32,448,248 4,864,893
============ ========== ========== ========== ========== =========
Net assets:
Attributable to General Electric Capital
Assurance Company 16,445,680 11,165,245 6,299,404 8,352,325 17,657,675 3,204,497
For deferred variable annuity contractholders 4,236,771 12,408,910 10,022,999 1,935,109 14,790,573 1,660,396
----------- ---------- ---------- ---------- ---------- ---------
$20,682,451 23,574,155 16,322,403 10,287,434 32,448,248 4,864,893
=========== ========== ========== ========== ========== =========
Outstanding units held by contractholders 408,955 747,975 762,785 155,555 1,048,233 157,086
=========== ========== ========== ========== ========== =========
Net asset value per unit $ 10.36 16.59 13.14 12.44 14.11 10.57
=========== ========== ========== ========== ========== =========
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
GECA VARIABLE INVESTMENT ACCOUNT
Statements of Operations
(Unaudited)
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
------------------------------------------------------------------------------------
Premier
Growth Value International U. S. Money
Income Equity Equity Equity Equity Market
Fund Fund Fund Fund Fund Fund
------------ ------------- ------------ ------------- ------------ ------------
<S> <C>
Investment income:
Income - Dividends $ - - - - - 152,530
Expenses:
Mortality and expense risk charges
(note 3) 34,052 78,368 67,274 14,514 103,042 20,091
--------- --------- --------- ------- -------- -------
Net investment income (loss) (34,052) (78,368) (67,274) (14,514) (103,042) 132,439
--------- --------- --------- ------- -------- -------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (37,554) 2,134,555 1,182,337 445,311 2,040,626 -
Unrealized appreciation
(depreciation) on investments (358,214) 1,832,503 1,898,322 132,598 2,038,985 -
--------- --------- --------- ------- --------- -------
Net realized and unrealized gain
(loss) on investments (395,768) 3,967,058 3,080,659 577,909 4,079,611 -
--------- --------- --------- ------- --------- -------
Increase in net assets from
operations $(429,820) 3,888,690 3,013,385 563,395 3,976,569 132,439
========= ========= ========= ======= ========= =======
</TABLE>
2
<PAGE>
GECA VARIABLE INVESTMENT ACCOUNT
Statements of Changes in Net Assets
(Unaudited)
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Fund, Inc.
--------------------------------------------------------
Premier
Growth Value
Income Equity Equity
Fund Fund Fund
---------------- --------------- ----------------
<S> <C>
Increase in net assets
From operations:
Net investment income (loss) $ (34,052) (78,368) (67,274)
Net realized gain (loss) (37,554) 2,134,555 1,182,337
Unrealized appreciation
(depreciation) on investments (358,214) 1,832,503 1,898,322
----------- ---------- ----------
Increase in net assets from operations (429,820) 3,888,690 3,013,385
----------- ---------- ----------
From capital transactions:
Net effect of transactions by General Electric
Capital Assurance Company 34,050 292,372 140,799
Net contract purchase payments 1,741 84,213 12,046
Transfers to the general account of
General Electric Capital Assurance Company
Surrender Benefits (344,652) (635,089) (398,314)
Transfers from (to) the Fixed
Guarantee Period Account (note 1) (66,389) 1,183 (74,999)
Interfund transfers (14,792) 64,856 (50,917)
----------- ---------- ----------
Increase in net assets from capital
transactions (390,042) (192,465) (371,385)
----------- ---------- ----------
Increase in net assets (819,862) 3,696,225 2,642,000
Net assets at beginning of period 21,502,313 19,877,930 13,680,403
----------- ---------- ----------
Net assets at end of period $ 20,682,451 23,574,155 16,322,403
=========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
GE Investments Fund, Inc.
--------------------------------------------------
International U. S. Money
Equity Equity Market
Fund Fund Fund
-------------- ------------ ------------
<S> <C>
Increase in net assets
From operations:
Net investment income (loss) $ (14,514) (103,042) 132,439
Net realized gain (loss) 445,311 2,040,626 -
Unrealized appreciation
(depreciation) on investments 132,598 2,038,985 -
---------- ---------- ----------
Increase in net assets from operations 563,395 3,976,569 132,439
---------- ---------- ----------
From capital transactions:
Net effect of transactions by General Electric
Capital Assurance Company 119,129 363,065 (34,518)
Net contract purchase payments 9,227 53,979 3,656
Transfers to the general account of
General Electric Capital Assurance Company
Surrender Benefits (79,027) (758,973) (80,381)
Transfers from (to) the Fixed
Guarantee Period Account (note 1) 19,452 (162,036) 37,978
Interfund transfers (478) 87,705 (86,374)
---------- ---------- -----------
Increase in net assets from capital
transactions 68,303 (416,260) (159,639)
---------- ---------- ----------
Increase in net assets 631,698 3,560,309 (27,200)
Net assets at beginning of period 9,655,736 28,887,939 4,892,093
---------- ---------- ----------
Net assets at end of period $ 10,287,434 32,448,248 4,864,893
============ ========== ==========
</TABLE>
3
<PAGE>
GECA Variable Investment Account
Notes to Financial Statements
(Unaudited)
June 30, 1999
(1) Description of Entity
GECA Variable Investment Account (the Account) is a separate investment
account established in 1981 by General Electric Capital Assurance Company
(GECA) under laws of the State of Washington. The Account is registered
with the Securities and Exchange Commission under the Investment Company
Act of 1940, as amended, as a unit investment trust. Beginning in 1995,
the Account funds certain benefits for group deferred variable annuity
policies issued by GECA. GECA is an indirect wholly-owned subsidiary of
General Electric Capital Corporation and General Electric Company (GE
Company).
Participants may transfer amounts among the Account's portfolios and the
Fixed Guarantee Period Account that is part of the general account of
GECA. The net assets related to deferred variable annuity policies are
the property of GECA and cannot be used to settle liabilities arising out
of any other business of GECA.
(2) Summary of Significant Accounting Policies
(a) Investments
Investments in shares of the portfolios are recorded at their net
asset value. The net asset value is based upon the underlying
assets of the mutual funds as determined by quoted market prices.
Purchases and sales of investments are recorded on the trade date.
Realized gains and losses on investments are determined on a
first-in, first-out (FIFO) basis. Dividend income is recorded on
the ex-dividend date.
The aggregate cost of investments acquired and the aggregate
proceeds of investments sold, for the period ended June 30, 1999
were:
June 30, 1999
--------------------------
Cost of Proceeds
shares from shares
acquired sold
-------- -----------
GE Investments Funds, Inc.:
Income $ 160,883 $ 584,976
Premier Growth Equity 11,028,735 11,299,568
Value Equity 6,448,811 6,887,469
International Equity 8,367,388 8,313,599
U.S. Equity 16,856,428 17,375,731
Money Market 385,024 412,224
4
(Continued)
<PAGE>
GECA Variable Investment Account
Notes to Financial Statements
(Unaudited)
June 30, 1999
(b) Unit Activity
The increase (decrease) in outstanding units from capital
transactions for the period ended June 30, 1999 are as follows:
<TABLE>
<CAPTION>
GE Investment Funds, Inc.
-------------------------------------------------------------------------------
Premier International Money
Income Growth Value Equity U.S. Market
Fund Equity Equity Fund Equity Fund
----------- ---------- ---------- ----------- ----------- -----------
<S> <C>
Units outstanding,
beginning of year 449,277 779,880 806,602 159,738 1,105,479 169,213
Units purchased 12,190 43,887 37,422 18,158 25,719 25,373
Units redeemed (52,512) (75,792) (81,239) (22,341) (82,965) (37,500)
----------- ---------- ---------- ----------- ----------- -----------
Units outstanding, end of year 408,955 747,975 762,785 155,555 1,048,233 157,086
=========== ========== ========== =========== =========== ===========
</TABLE>
(c) Distributions
The net investment income (loss) and realized capital gains of the
Account are retained and reinvested within the Account.
(d) Federal Income Taxes
The operations of the Account are a part of, and are taxed with,
the operations of GECA. Therefore, the Account is not separately
taxed as a regulated investment company under Subchapter M of the
Internal Revenue Code. Under existing federal income tax laws,
investment income and capital gains of the Account are not taxed.
Accordingly, the Account paid no federal income taxes and no
federal income tax provision was required. GECA is taxed as a life
insurance company under the Internal Revenue Code.
(e) Use of Estimates
Financial statements prepared in conformity with generally
accepted accounting principles require management to make
estimates and assumptions that affect amounts and disclosures
reported therein. Actual results could differ from those
estimates.
5
(Continued)
<PAGE>
GECA Variable Investment Account
Notes to Financial Statements
(Unaudited)
June 30, 1999
(3) Related Party Transactions and Contract Charges
Net contract purchase payments transferred from GECA to the Account
represent gross purchase payments recorded by GECA on its group deferred
variable annuity products, less deductions for premium taxes in certain
states. A withdrawal charge (contingent deferred sales charge) may be
assessed against certain amounts withdrawn within five years of any
purchase payment. Subject to certain limitations, this charge equals 5%
(or less) of the purchase payment surrendered, depending on the time
between purchase payment and surrender.
Each year GECA will deduct a certificate maintenance charge of $40 plus
an administration charge at an annual rate of .15% of average daily net
assets as partial compensation for certain administrative services. GECA
will waive the certificate maintenance charge if at the time of the
assessment the account value is $40,000 or greater. In addition, GECA
charges the Account at an annual rate of 1.25% of average daily net
assets for the mortality and expense risk that GECA assumes.
Administrative expenses as well as mortality and risk charges are
deducted daily and reflect the effective annual rates.
Units are not assigned to purchases made by GECA and no contract charges
are assessed against GECA's net assets.
GE Investment Management Incorporated (Investment Advisor), a
wholly-owned subsidiary of GE Company, currently serves as investment
advisor to GE Investments Funds, Inc. As compensation for its services,
the Investment Advisor is paid an investment advisory fee by the Fund
based on average daily net assets at an effective rate of .50% for the
Money Market and Income Funds, .55% for the U.S. Equity Fund, .65% for
the Value Equity and Premier Growth Equity Funds, and 1.00% for the
International Equity Fund.
6
