As filed with the Securities and Exchange File No. 33-80750
Commission on January 29, 1997 File No. 811-8582
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 7 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account I of Aetna Insurance Company of America
(Exact Name of Registrant)
Aetna Insurance Company of America
(Name of Depositor)
151 Farmington Avenue, RC4A, Hartford, Connecticut 06156
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (860) 273-7834
Susan E. Bryant, Counsel
Aetna Insurance Company of America
151 Farmington Avenue, RC4A, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
[X] immediately upon filing pursuant to paragraph (b) of Rule 485
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
registered an indefinite number of securities under the Securities Act of 1933.
Registrant expects to file a Rule 24f-2 Notice for fiscal year ended December
31, 1996 on or before February 28, 1997.
<PAGE>
VARIABLE ANNUITY ACCOUNT I
CROSS REFERENCE SHEET
Pursuant to Rule 481(a)
<TABLE>
<CAPTION>
FORM N-4 LOCATION - PROSPECTUS DATED MAY 1, 1996
ITEM NO. PART A (PROSPECTUS) AND AS AMENDED BY SUPPLEMENT DATED
JANUARY 29, 1997
<S> <C> <C>
1 Cover Page................................ Cover Page
2 Definitions............................... Definitions
3 Synopsis.................................. Prospectus Summary; Fee Table
4 Condensed Financial Information........... Condensed Financial Information
5 General Description of Registrant,
Depositor, and Portfolio Companies........ The Company; Variable Annuity Account I;
Investment Options - The Funds and
as amended
6 Deductions and Expenses................... Charges and Deductions; Miscellaneous -
Distribution
7 General Description of Variable
Annuity Contracts......................... Purchase; Transfers; Miscellaneous
8 Annuity Period............................ Annuity Period
9 Death Benefit............................. Death Benefit During Accumulation Period
10 Purchases and Contract Value.............. Purchase; Contract Valuation
11 Redemptions............................... Withdrawals; Purchase Right to Cancel;
Additional Withdrawal Options
12 Taxes..................................... Tax Status
13 Legal Proceedings......................... Miscellaneous - Legal Matters and
Proceedings
14 Table of Contents of the Statement
of Additional Information................. Contents of the Statement of Additional
Information
<PAGE>
FORM N-4 PART B LOCATION - STATEMENT OF ADDITIONAL
ITEM NO. (STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1996, AND AS
INFORMATION) AMENDED BY SUPPLEMENT DATED
JANUARY 29, 1997
<S> <C> <C>
15 Cover Page................................ Cover page
16 Table of Contents......................... Table of Contents
17 General Information and History........... General Information and History
18 Services.................................. General Information and History;
Independent Auditors
19 Purchase of Securities Being Offered...... Offering and Purchase of Contracts
20 Underwriters.............................. Offering and Purchase of Contracts
21 Calculation of Performance Data........... Performance Data and as amended
22 Annuity Payments.......................... Annuity Payments
23 Financial Statements...................... Financial Statements of the Separate
Account and as amended; Financial
Statements of the Company and as amended
</TABLE>
Part C (Other Information)
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
PART A AND PART B
The Prospectus and the Statement of Additional Information are incorporated into
Part A and Part B of this Post-Effective Amendment No. 7, respectively, by
reference to Post-Effective Amendment No. 6 to the Registration Statement on
Form N-4 (File No. 33-80750), as filed electronically on April 22, 1996.
<PAGE>
VARIABLE ANNUITY ACCOUNT I
Aetna Insurance Company of America
Supplement dated January 29, 1997 to the Prospectus dated May 1, 1996
Aetna Growth Plus - Group and Individual Deferred Variable Annuity Contracts
The information in this supplement updates and amends the information contained
in the Prospectus dated May 1, 1996 (the "Prospectus") and should be read with
that Prospectus.
As of the date of this supplement, subject to applicable regulatory
authorization, the Federated Equity Income Fund II is available as an investment
option under the variable annuity contract described in the Prospectus.
The description of the Federated Equity Income Fund II is as follows:
(bullet) Federated Equity Income Fund II seeks to provide above average income
and capital appreciation. The Fund attempts to achieve its objectives by
investing at least 65% of its assets in income-producing equity securities.
Equity securities include common stocks, preferred stocks, and securities
(including debt securities) that are convertible into common stocks. The
portion of the Fund's total assets invested in common stocks, preferred
stocks, and convertible securities will vary according to the Fund's
assessment of market and economic conditions and outlook.
Please refer to the fund prospectus for more comprehensive information about
the investment options.
FEE TABLE
The following information amends the "Annual Expenses of the Funds" and
"Hypothetical Illustrations" sections of the Fee Table to include information
for the new investment option. Please also refer to the table of Separate
Account Annual Expenses in the Fee Table in the Prospectus, which also applies
to the new investment option.
Annual Expenses of the Funds
Total Fund
Investment Other Expenses Annual Expenses
Advisory (After Expense (After Expense
Fees 12b-1 Fees Reimbursement) Reimbursement)
---- ---------- -------------- --------------
Federated Equity
Income Fund II 0.00%(1) 0.00%(2) 0.85%(3) 0.85%(3)
(1) The estimated investment advisory fee has been reduced to reflect the
anticipated voluntary waiver of the investment advisory fee. The adviser can
terminate this voluntary waiver at any time at it sole discretion. The maximum
investment advisory fee is 0.75%.
(2) The Fund has no present intention of paying or accruing the 12b-1 fee during
the fiscal year ending December 31, 1997. If the Fund were paying or accruing
the 12b-1 fee, Institutional Shares would be able to pay up to 0.25% of its
average daily net assets for the 12b-1 fee. "See Fund Information" in the Fund
prospectus.
(3) The other expenses and the total operating expenses are estimated to be
1.07% and 1.82% respectively absent the anticipated voluntary waiver of the
management fee and the anticipated voluntary reimbursement of certain other
operating expenses.
Total Fund operating expenses are estimated based on average expenses expected
to be incurred during the period ending December 31, 1997. During the course of
this period, expenses may be more or less than the average amount shown.
Form No: AICAGP-1
<PAGE>
Hypothetical Illustration
THIS EXAMPLE IS PURELY HYPOTHETICAL. IT SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR EXPECTED RETURN. ACTUAL EXPENSES
AND/OR RETURN MAY BE MORE OR LESS THAN THOSE SHOWN BELOW.
The following Examples illustrate the expenses that would have been paid
assuming a $1,000 investment in the Contract and a 5% return on assets. For the
purposes of these Examples, the maximum maintenance fee of $30.00 that can be
deducted under the Contract has been converted to a percentage of assets equal
to 0.016%.
EXAMPLE A EXAMPLE B
If you withdraw your entire If you do not withdraw your
Account Value at the end of Account Value, or if you
the periods shown, you would annuitize at the end of the
pay the following expenses, periods shown, you would pay
including any applicable the following expenses, (no
deferred sales charge: deferred sales charge is
reflected):
1 3 5 10 1 3 5 10
year years years years year years years years
---- ----- ----- ----- ---- ----- ----- -----
Federated Equity
Income Fund II $74 $104 $138 $260 $23 $71 $121 $260
Form No: AICAGP-1
<PAGE>
The following information amends the "Condensed Financial Information" section.
CONDENSED FINANCIAL INFORMATION
(Selected data for accumulation units outstanding throughout each period)
The condensed financial information presented below for the period ended
December 31, 1996 is derived from the financial statements of the Separate
Account.
Unaudited
1996
----------
FEDERATED AMERICAN LEADERS FUND II
Value at beginning of period $11.378
Value at end of period $13.639
Increase (decrease) in value of accumulation unit(1) 19.87%
Number of accumulation units outstanding at end of period 4,255,332.8
FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES II
Value at beginning of period $10.521
Value at end of period $10.809
Increase (decrease) in value of accumulation unit(1) 2.74%
Number of accumulation units outstanding at end of period 227,252.1
FEDERATED GROWTH STRATEGIES FUND II
Value at beginning of period $10.277
Value at end of period $12.596
Increase (decrease) in value of accumulation unit(1) 22.57%
Number of accumulation units outstanding at end of period 770,060.1
FEDERATED HIGH INCOME BOND FUND II
Value at beginning of period $10.576
Value at end of period $11.920
Increase (decrease) in value of accumulation unit(1) 12.71%
Number of accumulation units outstanding at end of period 972,453.6
FEDERATED INTERNATIONAL EQUITY FUND II
Value at beginning of period $10.229
Value at end of period $10.924
Increase (decrease) in value of accumulation unit(1) 6.80%
Number of accumulation units outstanding at end of period 1,037,619.3
FEDERATED PRIME MONEY FUND II
Value at beginning of period $10.180
Value at end of period $10.515
Increase (decrease) in value of accumulation unit(1) 3.29%
Number of accumulation units outstanding at end of period 333,599.8
FEDERATED UTILITY FUND II
Value at beginning of period $11.238
Value at end of period $12.361
Increase (decrease) in value of accumulation unit(1) 9.99%
Number of accumulation units outstanding at end of period 1,078,803.0
- --------------------------------------------------------------------------------
(1) The above figures are calculated by subtracting the beginning Accumulation
Unit Value from the ending Accumulation Unit Value during a calendar year,
and dividing the result by the beginning Accumulation Unit Value. These
figures do not reflect the deferred sales charge or the fixed dollar annual
maintenance fee, if any. Inclusion of these charges would reduce the
investment results shown.
Form No: XAICAGP-1
<PAGE>
VARIABLE ANNUITY ACCOUNT I
OF
AETNA INSURANCE COMPANY OF AMERICA
AICA Growth Plus
Supplement dated January 29, 1997 to Statement of Additional Information
dated May 1, 1996
The information in this supplement updates and amends the information contained
in the Statement of Additional Information dated May 1, 1996 (the "Statement")
and should be read with that Statement. Capitalized terms are defined in the
Statement or in the Prospectus.
The following infomation is added to the section entitled "Variable Annuity
Account I" on page 2 of the Statement:
Federated Equity Income Fund II
The following information amends the "Average Annual Total Return Quotations"
section on page 3 of the Statement:
AVERAGE ANNUAL TOTAL RETURN QUOTATIONS - Standardized and Non-Standardized
The table shown below reflects the average annual standardized and
non-standardized total return quotation figures for the periods ended December
31, 1996 for the Subaccounts available under the Contract. For those Subaccounts
where results are not available for the full calendar period indicated, the
percentage shown is an average annual return since inception (denoted with an
asterisk).
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
FUND
($30 MAINTENANCE FEE) STANDARDIZED NON-STANDARDIZED INCEPTION
DATE
- -----------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Federated American Leaders Fund II 12.66% 15.37% n/a 19.85% 16.38%* n/a n/a 02/10/94
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government
Securities II (3.44%) 2.69%* n/a 2.72% 4.11%* n/a n/a 03/28/94
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Growth Strategies Fund II 15.20% 17.85%* n/a 22.55% 21.91%* n/a n/a 11/01/95
- -----------------------------------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II 5.93% 7.71%* n/a 12.69% 8.94%* n/a n/a 03/01/94
- -----------------------------------------------------------------------------------------------------------------------------------
Federated International Equity Fund II 0.37% 2.47%* n/a 6.78% 5.27%* n/a n/a 04/04/95
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Prime Money Fund II (2.92%) 1.52%* n/a 3.28% 3.43%* n/a n/a 11/14/94
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Utility Fund II 3.38% 7.65%* n/a 9.98% 8.86%* n/a n/a 02/10/94
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the Tables for an explanation of the
charges included in the Standardized and Non-Standardized figures. These figures
represent historical performance and should not be considered a projection of
future performance.
Form No. XSAIAICAGP-1
<PAGE>
Variable Annuity Account I
Statement of Assets and Liabilities - December 31, 1996 (unaudited):
ASSETS:
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 118,220 shares (cost $3,972,310) ............. $3,829,309
Aetna Income Shares; 79,477 shares (cost $1,025,028) .............. 1,003,244
Aetna Variable Encore Fund; 635,111 shares (cost $8,317,770) ...... 8,379,376
Aetna Investment Advisers Fund, Inc.; 46,476 shares
(cost $686,701) ............................................... 702,615
Aetna Ascent Variable Portfolio; 92,327 shares (cost $1,108,682) .. 1,165,108
Aetna Crossroads Variable Portfolio; 6,406 shares (cost $77,022) .. 76,740
Aetna Legacy Variable Portfolio; 8,918 shares (cost $103,947) ..... 100,364
Aetna Variable Index Plus Portfolio; 2,964 shares (cost $33,107) .. 32,321
Alger American Funds:
Balanced Portfolio; 54,958 shares (cost $488,764) ............... 507,815
Growth Portfolio; 188,312 shares (cost $6,133,738) .............. 6,464,740
Income and Growth Portfolio; 76,873 shares (cost $604,086) ...... 647,270
Leveraged AllCap Portfolio; 103,955 shares (cost $1,958,838) .... 2,012,567
MidCap Portfolio; 192,140 shares (cost $3,929,732) .............. 4,102,199
Small Capitalization Portfolio; 171,234 shares
(cost $7,045,821) ............................................. 7,005,171
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio; 563,735 shares (cost $11,091,451) ...... 11,855,352
Growth Portfolio; 305,971 shares (cost $9,188,009) .............. 9,527,933
High Income Portfolio; 218,647 shares (cost $2,638,083) ......... 2,737,458
Overseas Portfolio; 70,166 shares (cost $1,255,226) ............. 1,321,928
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio; 71,870 shares (cost $1,159,980) ........ 1,216,766
Contrafund Portfolio; 395,008 shares (cost $6,102,472) .......... 6,541,331
Index 500 Portfolio; 54,852 shares (cost $4,513,469) ............ 4,888,997
Investment Grade Bond Portfolio; 36,653 shares (cost $438,309) .. 448,634
Federated Insurance Series:
American Leaders Fund II; 3,803,235 shares (cost $50,964,321).... 58,037,362
Growth Strategies Fund II; 765,678 shares (cost $8,910,410)...... 9,800,678
High Income Bond Fund II; 1,131,975 shares (cost $11,148,554).... 11,591,426
International Equity Fund II; 1,015,711 shares
(cost $10,735,477)............................................. 11,335,329
Prime Money Fund II; 3,507,665 shares (cost $3,507,665).......... 3,507,665
U.S. Government Securities II; 243,454 shares
(cost $2,456,653).............................................. 2,456,452
Utility Fund II; 1,129,147 shares (cost $12,228,743)............. 13,335,221
Janus Aspen Series:
Aggressive Growth Portfolio; 150,999 shares (cost $2,736,309).... 2,754,214
Balanced Portfolio; 134,540 shares (cost $1,940,432)............. 1,987,150
Flexible Income Portfolio; 34,999 shares (cost $387,419)......... 393,394
Growth Portfolio; 200,763 shares (cost $3,022,933)............... 3,113,839
Short-Term Bond Portfolio; 31,499 shares (cost $315,844)......... 314,045
Worldwide Growth Portfolio; 710,001 shares (cost $13,144,346).... 13,802,417
Lexington Emerging Markets Fund; 75,979 shares (cost $770,519)..... 765,870
Lexington Natural Resources Trust Fund; 93,062 shares
(cost $1,231,130)................................................. 1,329,850
MFS Funds:
Emerging Growth Series; 318,453 shares (cost $4,202,694)......... 4,216,322
Research Series; 189,599 shares (cost $2,423,276)................ 2,489,437
Total Return Series; 86,203 shares (cost $1,159,487)............. 1,181,849
Value Series; 4,208 shares (cost $44,704)........................ 44,861
World Government Series; 20,267 shares (cost $210,551)........... 214,428
TCI Portfolios, Inc.:
Balanced Fund; 49,532 shares (cost $363,463)..................... 373,473
Growth Fund; 44,936 shares (cost $471,345)....................... 460,141
International; 138,466 shares (cost $778,083).................... 825,259
------------
NET ASSETS (cost $205,026,903) .....................................$218,897,920
============
<PAGE>
Variable Annuity Account I
Statement of Assets and Liabilities - December 31, 1996
(unaudited and continued):
Reserves for annuity contracts in accumulation and payment period (Note 1):
Aetna Variable Fund:
Annuity contracts in accumulation ......................... $ 3,829,309
Aetna Income Shares:
Annuity contracts in accumulation ......................... 1,003,244
Aetna Variable Encore Fund:
Annuity contracts in accumulation ......................... 8,379,376
Aetna Investment Advisers Fund, Inc.:
Annuity contracts in accumulation ......................... 702,615
Aetna Ascent Variable Portfolio:
Annuity contracts in accumulation ......................... 1,165,108
Aetna Crossroads Variable Portfolio:
Annuity contracts in accumulation ......................... 76,740
Aetna Legacy Variable Portfolio:
Annuity contracts in accumulation ......................... 100,364
Aetna Variable Index Plus Portfolio:
Annuity contracts in accumulation ......................... 32,321
Alger American Funds:
Balanced Portfolio:
Annuity contracts in accumulation ......................... 507,815
Growth Portfolio:
Annuity contracts in accumulation ......................... 6,464,740
Income and Growth Portfolio:
Annuity contracts in accumulation ......................... 647,270
Leveraged AllCap Portfolio:
Annuity contracts in accumulation ......................... 2,012,567
MidCap Portfolio:
Annuity contracts in accumulation ......................... 4,102,199
Small Capitalization Portfolio:
Annuity contracts in accumulation ......................... 7,005,171
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation ......................... 11,855,352
Growth Portfolio:
Annuity contracts in accumulation ......................... 9,527,933
High Income Portfolio:
Annuity contracts in accumulation ......................... 2,737,458
Overseas Portfolio:
Annuity contracts in accumulation ......................... 1,321,928
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation ......................... 1,216,766
Contrafund Portfolio:
Annuity contracts in accumulation ......................... 6,541,331
Index 500 Portfolio:
Annuity contracts in accumulation ......................... 4,888,997
Investment Grade Bond Portfolio:
Annuity contracts in accumulation ......................... 448,634
Insurance Management Series:
American Leaders Fund II:
Annuity contracts in accumulation ......................... 58,037,362
Growth Strategies Fund II:
Annuity contracts in accumulation ......................... 9,800,678
High Income Bond Fund II:
Annuity contracts in accumulation ......................... 11,591,426
International Equity Fund II:
Annuity contracts in accumulation ......................... 11,335,329
Prime Money Fund II:
Annuity contracts in accumulation ......................... 3,507,665
<PAGE>
Variable Annuity Account I
Statement of Assets and Liabilities - December 31, 1996
(unaudited and continued):
U.S. Government Securities II:
Annuity contracts in accumulation ............................$ 2,456,452
Utility Fund II:
Annuity contracts in accumulation ............................ 13,335,221
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation ............................ 2,754,214
Balanced Portfolio:
Annuity contracts in accumulation ............................ 1,987,150
Flexible Income Portfolio:
Annuity contracts in accumulation ............................ 393,394
Growth Portfolio:
Annuity contracts in accumulation ............................ 3,113,839
Short-Term Bond Portfolio:
Annuity contracts in accumulation ............................ 314,045
Worldwide Growth Portfolio:
Annuity contracts in accumulation ............................ 13,802,417
Lexington Emerging Markets Fund:
Annuity contracts in accumulation ............................ 765,870
Lexington Natural Resources Trust Fund......................
Annuity contracts in accumulation ............................ 1,329,850
MFS Funds:
Emerging Growth Series:
Annuity contracts in accumulation ............................ 4,216,322
Research Series:
Annuity contracts in accumulation ............................ 2,489,437
Total Return Series:
Annuity contracts in accumulation ............................ 1,181,849
Value Series:
Annuity contracts in accumulation ............................ 44,861
World Government Series:
Annuity contracts in accumulation ............................ 214,428
TCI Portfolios, Inc.:
Balanced Fund:
Annuity contracts in accumulation ............................ 373,473
Growth Fund:
Annuity contracts in accumulation ............................ 460,141
International:
Annuity contracts in accumulation ............................ 825,259
------------
$218,897,920
============
See Notes to Financial Statements
<PAGE>
Variable Annuity Account I
Statements of Operations and Changes in Net Assets
Year Ended December 31,
(unaudited)
1996 1995
---- ----
INVESTMENT INCOME:
Income: (Notes 1 and 3)
Dividends ................................... $ 3,142,826 $ 344,085
Expenses: (Notes 2)
Valuation Period Deductions ................. (1,469,442) (129,615)
------------- ------------
Net investment income .......................... 1,673,384 214,470
------------- ------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments:
(Notes 1 and 4)
Proceeds from sales .......................... 30,774,009 1,768,297
Cost of investments sold ..................... 30,447,382 1,764,665
------------- ------------
Net realized gain .......................... 326,627 3,632
Net unrealized gain on investments:
Beginning of year ............................ 1,366,008 0
End of year .................................. 13,871,018 1,366,008
------------- ------------
Net unrealized gain ........................ 12,505,010 1,366,008
------------- ------------
Net realized and unrealized gain on investments 12,831,637 1,369,640
------------- ------------
Net increase in net assets resulting
from operations .............................. 14,505,021 1,584,110
------------- ------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments .... 151,305,122 29,988,730
Sales and administrative charges
deducted by the Company ...................... 0 (98,694)
------------- ------------
Net variable annuity contract
purchase payments ........................ 151,305,122 29,890,036.
Transfers from the Company's fixed
account options .............................. 21,839,958 2,369,036
Redemptions by contract holders ................ (2,630,806) (100,005)
Other .......................................... 121,009 14,439
------------- ------------
Net increase in net assets from
unit transactions ........................ 170,635,283 32,173,506
------------- ------------
Change in net assets ........................... 185,140,304 33,757,616
NET ASSETS:
Beginning of year .............................. 33,757,616 0
------------- ------------
End of year .................................... $ 218,897,920 $ 33,757,616
============= ============
See Notes to Financial Statements
<PAGE>
Variable Annuity Account I
Condensed Financial Information - December 31, 1996 (unaudited):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Increase
Value at Value at in Value of Reserves
Beginning End of Accumulation End
of Year Year Unit Units of Year
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Variable Fund:
AICA I $10.101 $12.769 26.41% (1) 299,882.4 $ 3,829,309
- -----------------------------------------------------------------------------------------------------------
Aetna Income Shares:
AICA I $10.260 $10.489 2.23% (1) 95,644.3 1,003,244
- -----------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund:
AICA I $10.151 $10.481 3.25% (2) 799,456.4 8,379,376
- -----------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc.:
AICA I $10.582 $11.781 11.33% (2) 59,639.3 702,615
- -----------------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio:
AICA I $11.003 $12.674 15.19% (7) 91,926.8 1,165,108
- -----------------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio:
AICA I $10.932 $12.123 10.89% (7) 6,330.1 76,740
- -----------------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio:
AICA I $10.601 $11.613 9.55% (5) 8,642.2 100,364
- -----------------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio:
AICA I $10.000 $10.919 9.19% (8) 2,960.1 32,321
- -----------------------------------------------------------------------------------------------------------
Alger American Funds:
Balanced Portfolio:
AICA I $10.393 $10.713 3.08% (4) 47,400.6 507,815
- -----------------------------------------------------------------------------------------------------------
Growth Portfolio:
AICA I $9.790 $10.940 11.75% 590,911.4 6,464,740
- -----------------------------------------------------------------------------------------------------------
Income and Growth Portfolio:
AICA I $10.048 $11.333 12.79% (3) 57,113.5 647,270
- -----------------------------------------------------------------------------------------------------------
Leveraged AllCap Portfolio:
AICA I $10.349 $11.188 8.11% (4) 179,879.2 2,012,567
- -----------------------------------------------------------------------------------------------------------
MidCap Portfolio:
AICA I $10.283 $10.667 3.73% (3) 384,586.3 4,102,199
- -----------------------------------------------------------------------------------------------------------
Small Capitalization Portfolio:
AICA I $9.541 $9.800 2.72% 714,815.6 7,005,171
- -----------------------------------------------------------------------------------------------------------
Fidelity Investments Variable
Insurance Products Fund:
Equity-Income Portfolio:
AICA I $10.301 $11.855 15.09% (1) 1,000,050.3 11,855,352
- -----------------------------------------------------------------------------------------------------------
Growth Portfolio:
AICA I $9.055 $10.940 20.82% (1) 870,922.1 9,527,933
- -----------------------------------------------------------------------------------------------------------
High Income Portfolio:
AICA I $10.493 $11.410 8.74% (3) 239,917.2 2,737,458
- -----------------------------------------------------------------------------------------------------------
Overseas Portfolio:
AICA I $10.304 $11.447 11.09% (3) 115,487.1 1,321,928
- -----------------------------------------------------------------------------------------------------------
Fidelity Investments
Variable Insurance Products Fund II:
Asset Manager Portfolio:
AICA I $10.539 $11.674 10.77% (4) 104,228.6 1,216,766
- -----------------------------------------------------------------------------------------------------------
Contrafund Portfolio:
AICA I $10.273 $12.093 17.72% (3) 540,935.6 6,541,331
- -----------------------------------------------------------------------------------------------------------
Index 500 Portfolio:
AICA I $10.828 $12.722 17.49% (3) 384,282.0 4,888,997
- -----------------------------------------------------------------------------------------------------------
Investment Grade Bond Portfolio:
AICA I $10.021 $10.455 4.33% (3) 42,911.9 448,634
- -----------------------------------------------------------------------------------------------------------
Federated Insurance Series:
American Leaders Fund II:
AICA I $11.378 $13.639 19.87% 4,255,332.8 58,037,362
- -----------------------------------------------------------------------------------------------------------
Growth Strategies Fund II:
AICA I $10.277 $12.596 22.57% 778,060.1 9,800,678
- -----------------------------------------------------------------------------------------------------------
High Income Bond Fund II:
AICA I $10.576 $11.920 12.71% 972,453.6 11,591,426
- -----------------------------------------------------------------------------------------------------------
International Equity Fund II:
AICA I $10.229 $10.924 6.80% 1,037,619.3 11,335,329
- -----------------------------------------------------------------------------------------------------------
Prime Money Fund II:
AICA I $10.180 $10.515 3.29% 333,599.8 3,507,665
- -----------------------------------------------------------------------------------------------------------
U.S. Government Securities II:
AICA I $10.521 $10.809 2.74% 227,252.1 2,456,452
- -----------------------------------------------------------------------------------------------------------
Utility Fund II:
AICA I $11.238 $12.361 9.99% 1,078,803.0 13,335,221
- -----------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
AICA I $10.988 $11.376 3.53% (3) 242,113.2 2,754,214
- -----------------------------------------------------------------------------------------------------------
Balanced Portfolio:
AICA I $10.836 $12.038 11.09% (3) 165,078.9 1,987,150
- -----------------------------------------------------------------------------------------------------------
Flexible Income Portfolio:
AICA I $10.173 $11.136 9.47% (4) 35,325.6 393,394
- -----------------------------------------------------------------------------------------------------------
<PAGE>
Variable Annuity Account I
Condensed Financial Information -
December 31, 1996 (unaudited and continued):
- -----------------------------------------------------------------------------------------------------------
Increase
Value at Value at in Value of Reserves
Beginning End of Accumulation End
of Year Year Unit Units of Year
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth Portfolio:
AICA I $11.002 $12.171 10.63% (3) 255,831.0 $3,113,839
- ------------------------------------------------------------------------------------------------------------
Short-Term Bond Portfolio:
AICA I $10.096 $10.417 3.18% (3) 30,148.1 314,045
- ------------------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
AICA I $10.536 $13.393 27.12% (1) 1,030,570.1 13,802,417
- ------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
AICA I $9.748 $10.328 5.95% 74,157.0 765,870
- ------------------------------------------------------------------------------------------------------------
Lexington Natural Resources
Trust Fund:
AICA I $11.444 $13.194 15.29% (4) 100,792.3 1,329,850
- ------------------------------------------------------------------------------------------------------------
MFS Funds:
Emerging Growth Series:
AICA I $10.000 $10.074 0.74% (6) 418,523.4 4,216,322
- ------------------------------------------------------------------------------------------------------------
Research Series:
AICA I $10.000 $10.970 9.70% (6) 226,923.2 2,489,437
- ------------------------------------------------------------------------------------------------------------
Total Return Series:
AICA I $10.000 $10.894 8.94% (6) 108,481.5 1,181,849
- ------------------------------------------------------------------------------------------------------------
Value Series:
AICA I $10.000 $10.334 3.34% (9) 4,340.9 44,861
- ------------------------------------------------------------------------------------------------------------
World Government Series:
AICA I $10.000 $10.471 4.71% (6) 20,479.1 214,428
- ------------------------------------------------------------------------------------------------------------
TCI Portfolios, Inc.:
Balanced Fund:
AICA I $10.239 $11.284 10.21% (5) 33,096.3 373,473
- ------------------------------------------------------------------------------------------------------------
Growth Fund:
AICA I $9.592 $9.183 (4.26%) (3) 50,110.4 460,141
- ------------------------------------------------------------------------------------------------------------
International:
AICA I $10.399 $11.574 11.30% (3) 71,305.4 825,259
- ------------------------------------------------------------------------------------------------------------
</TABLE>
AICA I - Certain individual and group contracts issued as non-qualified
deferred annuity contracts or Individual Retirement Annuity contracts
issued since June 28, 1995.
Notes to Condensed Financial Information
(1) - Reflects less than a full year of performance activity. Funds were first
received in this option during January 1996.
(2) - Reflects less than a full year of performance activity. Funds were first
received in this option during February 1996.
(3) - Reflects less than a full year of performance activity. Funds were first
received in this option during March 1996.
(4) - Reflects less than a full year of performance activity. Funds were first
received in this option during April 1996.
(5) - Reflects less than a full year of performance activity. Funds were first
received in this option during May 1996.
(6) - Reflects less than a full year of performance activity. The initial
Accumulation Unit Value was established at $10.000 during May 1996 when
the fund became available under the option.
(7) - Reflects less than a full year of performance activity. Funds were first
received in this option during July 1996.
(8) - Reflects less than a full year of performance activity. The initial
Accumulation Unit Value was established at $10.000 during September 1996
when the fund became available under the option.
(9) - Reflects less than a full year of performance activity. The initial
Accumulation Unit Value was established at $10.000 during October 1996
when the fund became available under the option.
<PAGE>
Variable Annuity Account I
Notes to Financial Statements - December 31, 1996 (unaudited):
1. Summary of Significant Accounting Policies
Variable Annuity Account I ("Account") is a separate account established by
Aetna Insurance Company of America ("Company") and is registered under the
Investment Company Act of 1940 as a unit investment trust. The Account is
sold exclusively for use with annuity contracts that may be entitled to
tax-deferred treatment under specific sections of the Internal Revenue Code
of 1986, as amended. The account commenced operations on June 28, 1995.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect amounts reported therein. Although actual results could differ
from these estimates, any such differences are expected to be immaterial to
the net assets of the Account.
a. Valuation of Investments
Investments in the following Funds are stated at the closing net asset value
per share as determined by each Fund on December 31, 1996:
Aetna Variable Fund Federated Insurance Series:
Aetna Income Shares [bullet] American Leaders Fund II
Aetna Variable Encore Fund [bullet] Growth Strategies Fund II
Aetna Investment Advisers Fund, Inc. [bullet] High Income Bond Fund II
Aetna Ascent Variable Portfolio [bullet] International Equity Fund II
Aetna Crossroads Variable Portfolio [bullet] Prime Money Fund II
Aetna Legacy Variable Portfolio [bullet] U.S. Government Securities II
Aetna Variable Index Plus Portfolio [bullet] Utility Fund II
Alger American Funds: Janus Aspen Series:
[bullet] Balanced Portfolio [bullet] Aggressive Growth Portfolio
[bullet] Growth Portfolio [bullet] Balanced Portfolio
[bullet] Income and Growth Portfolio [bullet] Flexible Income Portfolio
[bullet] Leveraged AllCap Portfolio [bullet] Growth Portfolio
[bullet] MidCap Growth Portfolio [bullet] Short-Term Bond Portfolio
[bullet] Small Capitalization [bullet] Worldwide Growth Portfolio
Portfolio Lexington Funds:
Fidelity Investments Variable [bullet] Emerging Markets Fund
Insurance Products Fund: [bullet] Natural Resources Trust Fund
[bullet] Equity-Income Portfolio MFS Funds:
[bullet] Growth Portfolio [bullet] Emerging Growth Series
[bullet] High Income Portfolio [bullet] Research Series
[bullet] Overseas Portfolio [bullet] Total Return Series
Fidelity Investments Variable [bullet] Value Series
Insurance Products Fund II: [bullet] World Government Series
[bullet] Asset Manager Portfolio TCI Portfolios, Inc.:
[bullet] Contrafund Portfolio [bullet] Balanced Fund
[bullet] Index 500 Portfolio [bullet] Growth Fund
[bullet] Investment Grade Bond [bullet] International
Portfolio
<PAGE>
Variable Annuity Account I
Notes to Financial Statements - December 31, 1996 (unaudited and continued):
b. Other
Investment transactions are accounted for on a trade date basis and dividend
income is recorded on the ex-dividend date. The cost of investments sold is
determined by specific identification.
c. Federal Income Taxes
The operations of the Account form a part of, and are taxed with, the total
operations of the Company which is taxed as a life insurance company under
the Internal Revenue Code of 1986, as amended.
d. Annuity Reserves
Annuity reserves held in the Separate Accounts are computed for currently
payable contracts according to the 83a and 83GAM tables using various assumed
interest rates. Mortality experience is monitored by the Company. Charges to
annuity reserves for mortality experience are reimbursed to the Company if
the reserves required are less than originally estimated. If additional
reserves are required, the Company reimburses the Account.
2. Valuation Period Deductions
Deductions by the Account for mortality and expense risk charges are made in
accordance with the terms of the contracts and are paid to the Company.
3. Dividend Income
On an annual basis, the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to the
Account are automatically reinvested in shares of the Funds. The Account's
proportionate share of each Fund's undistributed net investment income and
accumulated net realized gain on investments is included in net unrealized
gain in the Statement of Operations.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the years ended December 31, 1996 and December 31,
1995 aggregated $203,082,677 and $30,774,009; $34,156,273 and $1,768,297,
respectively.
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Statements of Income
(thousands)
<TABLE>
<CAPTION>
9 Months Ended September 30,
----------------------------
1996 1995
(unaudited)
----------- ----
<S> <C> <C>
Revenue:
Charges assessed against policyholders $ 757.6 $ 35.2
Net investment income 673.5 536.7
Net realized capital losses (17.1) -
-------- --------
Total revenue 1,414.0 571.9
Benefits and expenses:
Current and future benefits 714.8 -
Operating expenses 2,165.3 197.3
-------- --------
Total benefits and expenses 2,880.1 197.3
Income (loss) before income
taxes (benefits) (1,466.1) 374.6
Income taxes (benefits) (625.4) 131.3
-------- --------
Net income (loss) $ (840.7) $ 243.3
======== ========
</TABLE>
See Condensed Notes to Financial Statements.
(3)
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Balance Sheets
(thousands)
September 30, December 31,
Assets 1996 1995
(unaudited)
------------- -------------
Investments:
Debt securities, available for sale:
(amortized cost: $8,063.1 and $7,953.0) $ 8,140.3 $ 8,187.4
Cash and cash equivalents 35,716.6 4,044.2
Accrued investment income 182.3 112.6
Premiums due and other receivables 13.3 -
Deferred policy acquisition costs 15,724.0 2,066.4
Deferred tax asset 2,065.7 467.6
Income taxes receivable 713.0 -
Other assets 13.0 0.8
Separate Accounts assets 231,798.8 43,810.0
---------- ----------
Total assets $294,367.0 $ 58,689.0
========== ==========
Liabilities and Shareholder's Equity
Liabilities:
Policyholders' funds left with the company $ 43,734.9 $ -
Due to parent and affiliates - 174.6
Other liabilities 7,530.7 1,932.6
Income taxes payable 112.5 638.8
Separate Accounts liabilities 231,798.8 43,810.0
---------- ----------
Total liabilities 283,176.9 46,556.0
---------- ----------
Shareholder's equity:
Common capital stock, par value $2,000 (1,275
shares authorized, issued and outstanding) 2,550.0 2,550.0
Paid-in capital 7,550.0 7,550.0
Net unrealized capital gains 50.2 152.4
Retained earnings 1,039.9 1,880.6
---------- ----------
Total shareholder's equity 11,190.1 12,133.0
---------- ----------
Total liabilities and shareholder's equity $294,367.0 $58,689.0
========== ==========
See Condensed Notes to Financial Statements.
(4)
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Statements of Changes in Shareholder's Equity
(thousands)
9 Months Ended September 30,
----------------------------
1996 1995
(unaudited)
---------- ----
Shareholder's equity, beginning of period $ 12,133.0 $ 11,675.3
Net change in unrealized capital gains and losses (102.2) 138.8
Net income (loss) (840.7) 243.3
----------- -----------
Shareholder's equity, end of period $ 11,190.1 $ 12,057.4
=========== ===========
See Condensed Notes to Financial Statements.
(5)
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Statements of Cash Flows
(thousands)
<TABLE>
<CAPTION>
9 Months Ended September 30,
----------------------------
1996 1995
(unaudited)
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $ (840.7) $ 243.3
Adjustments to reconcile net income (loss) to net cash (used for)
provided by operating activities:
Increase in accrued investment income (69.7) (33.8)
Increase in premiums due and other receivables (13.3) -
Increase in deferred policy acquisition costs (13,657.6) (1,537.2)
Net change in amounts due to/from parent and affiliates (174.6) 117.7
Net increase in other assets and liabilities 5,568.8 1,327.7
Net (decrease) increase in income taxes (2,782.4) 101.2
Net amortization of (discount) premium on debt securities (61.3) 19.7
Net realized capital losses 17.1 -
---------- ----------
Net cash (used for) provided by operating activities (12,013.7) 238.6
---------- ----------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 2,410.0 3,000.0
Short-term investments - 500.0
Cost of investment purchases in:
Debt securities available for sale (2,458.8) (3,939.2)
Short-term investments - (492.1)
---------- ----------
Net cash used for investing activities (48.8) (931.3)
---------- ----------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts 43,734.9 -
---------- ----------
Net cash provided by financing activities 43,734.9 -
---------- ----------
Net increase (decrease) in cash and cash equivalents 31,672.4 (692.7)
Cash and cash equivalents, beginning of period 4,044.2 4,732.7
---------- ----------
Cash and cash equivalents, end of period $ 35,716.6 $ 4,040.0
========== ==========
Supplemental cash flow information:
Income taxes paid, net $ 2,232.0 $ 30.0
========== ==========
</TABLE>
See Condensed Notes to Financial Statements.
(6)
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Condensed Notes to Financial Statements (unaudited)
1. Basis of Presentation
---------------------
Aetna Insurance Company of America (the "Company") is a stock life
insurance company organized in 1990 under the insurance laws of Connecticut
and is a wholly-owned subsidiary of Aetna Life Insurance and Annuity
Company ("ALIAC"). ALIAC is a wholly-owned subsidiary of Aetna Retirement
Holdings, Inc. ("HOLDCO"). HOLDCO is a wholly-owned subsidiary of Aetna
Retirement Services, Inc., which is a wholly-owned subsidiary of Aetna
Services, Inc. ("Aetna") (formerly Aetna Life and Casualty Company). Aetna
is a wholly-owned subsidiary of Aetna Inc.
The financial statements have been prepared in accordance with generally
accepted accounting principles and are unaudited. These interim statements
necessarily rely heavily on estimates, including assumptions as to
annualized tax rates. In the opinion of management, all adjustments
necessary for a fair statement of results for the interim periods have been
made. All such adjustments are of a normal, recurring nature.
The accompanying condensed financial statements should be read in
conjunction with the financial statements and related notes as presented
in the Company's 1995 Annual Report on Form 10-K as filed with the
Securities and Exchange Commission on March 29, 1996. Certain financial
information that is normally included in annual financial statements
prepared in accordance with generally accepted accounting principles, but
that is not required for interim reporting purposes, has been condensed or
omitted.
2. Accounting Changes
------------------
Financial Accounting Standard ("FAS") No. 125, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities, was
issued in June 1996. This statement provides accounting and reporting
standards for transfers of financial assets and extinguishments of
liabilities. Transactions covered by this statement would include
securitizations, sales of partial interests in assets, repurchase
agreements and securities lending. This statement requires that after a
transfer of financial assets, an entity would recognize on the balance
sheet any assets it controls and liabilities it has incurred. Similarly,
an entity would remove assets or liabilities from its balance sheet when
control of the assets has been surrendered or the liabilities satisfied.
This statement is effective for 1997 financial statements and early
adoption or retroactive application of this statement is not permitted.
The Company does not expect the adoption of this statement will have a
material effect on its financial position or results of operations.
(7)
<PAGE>
AETNA INSURANCE COMPANY OF AMERICA
(A wholly-owned subsidiary of Aetna Life Insurance and Annuity Company)
Condensed Notes to Financial Statements (unaudited)
(Continued)
3. Related Party Transactions
--------------------------
Aeltus Investment Management, Inc. ("Aeltus"), a wholly owned subsidiary of
HOLDCO, was named the subadviser of all of ALIAC's affiliated mutual funds
and general account investments effective August 1, 1996 when ALIAC merged
its investment management operations into those of Aeltus.
The Company pays Aeltus a fee which, on an annual basis, is .06% of the
average daily net assets under management. The amount of such fees for
the three and nine months ended September 30, 1996 amounted to
$10.2 thousand for both periods.
4. Litigation
----------
The Company may be involved in lawsuits arising, for the most part, in
the ordinary course of its business operations. While the ultimate outcome
of litigation against the Company cannot be determined at this time, after
consideration of the defenses available to the Company and any related
reserves established, it is not expected to result in liability for amounts
material to the financial condition of the Company, although it may
adversely affect results of operations in future periods.
5. Subsequent Event
----------------
On October 23, 1996, the Company received a capital contribution of
$20.0 million from ALIAC.
(8)
<PAGE>
VARIABLE ANNUITY ACCOUNT I
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account I:
- Independent Auditors' Report
- Statement of Assets and Liabilities as of December 31,
1995
- Statement of Operations for the period June 28, 1995
to December 31, 1995
- Statement of Changes in Net Assets for the period June 28,
1995 to December 31, 1995
- Notes to Financial Statements
- Unaudited Statement of Assets and Liabilities as of
December 31, 1996
- Unaudited Statement of Operations for the year ended
December 31, 1996
- Unaudited Statement of Changes in net Assets for the years
ended December 31, 1996 and 1995
- Unaudited Notes to Financial Statements
Financial Statements of Depositor:
- Independent Auditors' Report
- Statements of Income for the years ended December 31,
1995, 1994 and 1993
- Balance Sheets for the years ended December 31, 1995 and
1994
- Statements of Changes in Shareholder's Equity for the
years ended December 31, 1995, 1994 and 1993
- Statements of Cash Flows for the years ended December 31,
1995, 1994 and 1993
- Notes to Financial Statements
- Unaudited Statements of Income for the nine-month periods
ended September 30, 1996 and 1995
- Unaudited Balance Sheets as of September 30, 1996
- Unaudited Statements of Changes in Shareholder's Equity
for the nine-month period ended September 30, 1996 and
1995
- Unaudited Statements of Cash Flows for the nine-month
period ended September 30, 1996 and 1995
- Unaudited Condensed Notes to Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Insurance
Company of America establishing Variable Annuity Account I(1)
(2) Not applicable
(3.1) Form of Selling Agreement(1)
(3.2) Form of Principal Underwriting Agreement(1)
(4) Form of Variable Annuity Contracts including endorsements:
(G-CDA-GP2, I-CDA-GP2, C-GP2QEND, GP2QEND, and GP2NHEND)(2)
<PAGE>
(5) Form of Application for Aetna Growth Plus Group Variable,
Fixed or Combination Annuity Contract (Nonparticipating)(3)
(6) Certification of Incorporation and By-Laws of Depositor(1)
(7) Form of Reinsurance Agreement(3)
(8) Form of Fund Participation Agreement between Insurance
Management Series, Federated Advisors and Aetna Insurance
Company of America(3)
(9) Opinion of Counsel(4)
(10.1) Consent of Independent Auditors
(10.2) Consent of Counsel
(11) Not applicable
(12) Not applicable
(13) Computation of Performance Data(5)
(14) Not applicable
(15.1) Powers of Attorney
(15.2) Authorization for Signatures(1)
(27) Financial Data Schedule
1. Incorporated by reference to Registration Statement on Form N-4
(File No. 33-59749), as filed electronically on June 1, 1995.
2. Incorporated by reference to Registration Statement on Form N-4
(File No. 33-80750), as filed on June 23, 1994.
3. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-80750), as filed electronically on
August 15, 1995.
4. Incorporated by reference to Registrant's 24f-2 Notice for fiscal year
ended December 31, 1995, as filed electronically on February 29, 1996.
5. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form N-4 (File No. 33-80750), as filed on April 27, 1995.
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ----------------- --------------------------------------
Daniel P. Kearney Director and President
Deborah Koltenuk Director, Vice President and Treasurer, Corporate
Controller
Laura R. Estes Director and Senior Vice President
James J. Mallozzi Director and Vice President
Maria F. McKeon Corporate Secretary and Counsel
Alastair G. Longley-Cook Vice President and Corporate Actuary
*The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor
or Registrant
Incorporated herein by references to Item 26 of Pre-Effective Amendment
No. 1 to the Registration Statement on Form N-4 (File No. 333-01107), as filed
electronically on
August 2, 1996.
Item 27. Number of Contract Owners
As of December 31, 1996, there were 7,121 individuals holding interests in
variable annuity contracts funded through Variable Annuity Account I.
Item 28. Indemnification
Reference is hereby made to Section 33-771(f) of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4)
regarding indemnification of officers, employees and agents of Connecticut
corporations incorporated prior to January 1, 1997. These statutes provide in
general that Connecticut corporations shall indemnify their officers, directors,
employees and agents against "liability" (defined as the obligation to pay a
judgment, settlement, penalty, fine, excise tax in the case of an employee
benefit plan or reasonable expenses incurred with respect to a proceeding). In
the case of a proceeding by or in the right of the corporation, indemnification
is limited to reasonable expenses incurred in connection with the proceeding
against the corporation to which the individual was named a party. The
corporation's obligation to provide such indemnification does not apply unless
(1) the individual has met the standard of conduct set forth in Section 33-771;
and (2) a determination is made (by majority vote of a quorum of the board of
directors who were not parties to the proceeding, or if a quorum cannot be
obtained, by a committee of the board selected as described in Section
33-775(b)(2); by special legal counsel selected by the board of directors or
members thereof as described in Section 33-775(b)(3); by shareholders) that the
individual met the standard set forth in Section 33-771; or (3) the court, upon
application by the individual, determines in view of all
<PAGE>
the circumstances that such person is reasonably entitled to be indemnified.
Also, unless limited by its Certificate of Incorporation, a corporation must
indemnify an individual who was wholly successful on the merits or otherwise
against reasonable expenses incurred by him in connection with a proceeding to
which he was a party because of his relationship as director, officer, employee
or agent of the corporation.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who is or was a director, officer, employer
or agent of the corporation. Consistent with the statute, Aetna Inc. has
procured insurance from Lloyd's of London and several major United States excess
insurers for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriters
(a) In addition to serving as the principal underwriter for the Registrant,
Aetna Life Insurance and Annuity Company (ALIAC) also acts as the
principal underwriter and investment adviser for Aetna Variable Encore
Fund, Aetna Variable Fund, Aetna Series Fund, Inc., Aetna Generation
Portfolios, Inc., Aetna Income Shares, Aetna Investment Advisers Fund,
Inc., Aetna GET Fund and Aetna Variable Portfolios, Inc (all registered
investment management companies under the 1940 Act). In addition, ALIAC
also acts as the principal underwriter and depositor for Variable Life
Account B and Variable Annuity Accounts B, C and G (separate accounts
of ALIAC registered as unit investment trusts under the 1940 Act).
(b) Directors and Officers of the Underwriter
Name and Principal
Business Address* Positions and Offices with Underwriter
- ----------------- --------------------------------------
Daniel P. Kearney Director and President
Timothy A. Holt Director, Senior Vice President and
Chief Financial Officer
Christopher J. Burns Director and Senior Vice President
Laura R. Estes Director and Senior Vice President
Gail P. Johnson Director and Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Vice President
Glen Salow Director and Vice President
Creed R. Terry Director and Vice President
Deborah Koltenuk Vice President and Treasurer, Corporate Controller
Frederick D. Kelsven Vice President and Chief Compliance Officer
<PAGE>
Name and Principal
Business Address* Positions and Offices with Underwriter
- ----------------- --------------------------------------
Kirk P. Wickman Vice President, General Counsel and Secretary
* The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
(c) Not applicable
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the Rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Insurance Company of America
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) The Company hereby represents that it will rely upon and comply with
the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 22, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See American
Counsel of Life Insurance, SEC No-Action Letter, [1989 Transfer Binder]
Fed. SEC. L. Rep. (CCH) 78,904 at 78,523 (November 22, 1988).
(e) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the
<PAGE>
foregoing provisions, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or
controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question of whether such indemnification
by it is against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.
(f) Aetna Insurance Company of America represents that the fees and charges
deducted under the contracts covered by this registration statement, in
the aggregate, are reasonable in relation to the services rendered, the
expenses expected to be incurred, and the risks assumed by the
insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant, Variable Annuity Account I of Aetna Insurance Company
of America, certifies that it meets the requirements of Securities Act Rule
485(b) for effectiveness of this Post-Effective Amendment No. 7 to its
Registration Statement on Form N-4 (File No. 33-80750) and has duly caused this
Post-Effective Amendment No. 7 to Registration Statement on Form N-4 (File No.
33-80750) to be signed on its behalf in the City of Hartford, and State of
Connecticut, on the 29th day of January, 1997.
VARIABLE ANNUITY ACCOUNT I OF AETNA INSURANCE COMPANY OF AMERICA
(Registrant)
By: AETNA INSURANCE COMPANY OF AMERICA
(Depositor)
By Daniel P. Kearney*
-----------------------------------
Daniel P. Kearney
President
As required by the Securities Act of 1933 this Post-Effective Amendment
No. 7 to Registration Statement on Form N-4 (File No. 33-80750) has been signed
by the following persons in the capacities and on the dates indicated.
Signature Title Date
Daniel P. Kearney* Director and President )
- ----------------------- )
Daniel P. Kearney (principal executive officer) )
)
Deborah Koltenuk* Director, Vice President and Treasurer, )
- ----------------------- )
Deborah Koltenuk Corporate Controller ) January
) 29, 1997
Laura R. Estes* Director )
- ----------------------- )
Laura R. Estes )
)
James J. Mallozzi* Director )
- ----------------------- )
James J. Mallozzi )
By: /s/Julie E. Rockmore
-------------------------------
*Julie E. Rockmore
Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT I
EXHIBIT INDEX
Exhibit Exhibit Page
No.
99-B.1 Resolution of the Board of Directors of Aetna Insurance *
Company of America establishing Variable Annuity
Account I
99-B.3.1 Form of Selling Agreement *
99-B.3.2 Form of Principal Underwriting Agreement *
99-B.4 Form of Variable Annuity Contracts including *
endorsements: (G-CDA-GP2, I-CDA-GP2-C-GP2QEND,
GP2QEND and GP2NHEND)
99-B.5 Form of Application for Aetna Growth *
Plus Group Variable, Fixed or Combination
Annuity Contract (Nonparticipating)
99-B.6 Certification of Incorporation and By-Laws of *
Depositor
99-B.7 Form of Reinsurance Agreement *
99-B.8 Form of Fund Participation Agreement between *
Insurance Management Series, Federated Advisors
and Aetna Insurance Company of America
99-B.9 Opinion of Counsel *
99-B.10.1 Consent of Independent Auditors
-----------
99-B.10.2 Consent of Counsel
-----------
99-B.13 Computation of Performance Data *
99-B.15.1 Powers of Attorney
-----------
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule
-----------
*Incorporated by reference
Consent of Independent Auditors
The Board of Directors of Aetna Insurance Company Of America
and Contract Owners of Variable Annuity Account I:
We consent to the use of our reports incorporated herein by reference.
/s/KPMG Peat Marwick LLP
------------------------------
KPMG Peat Marwick LLP
Hartford, Connecticut
January 29, 1997
[Aetna letterhead]
[Aetna 151 Farmington Avenue Susan E. Bryant
logo] Hartford, CT 06156 Counsel
Law Division
Investments & Financial Services, RC4A
(860) 273-7834
Fax: (860) 273-8340
January 29, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Filing Desk
Re: Variable Annuity Account I of Aetna Insurance Company of America
Post-Effective Amendment No. 7 to the Registration Statement on Form N-4
File Nos. 33-80750 and 811-8582
Gentlemen:
As Counsel of Aetna Insurance Company of America (the "Company"), I hereby
consent to the use of my opinion dated February 28, 1996 (incorporated herein by
reference to the 24f-2 Notice for the fiscal year ended December 31, 1995 filed
on behalf of Variable Annuity Account I of Aetna Insurance Company of America on
February 29, 1996) as an exhibit to this Post-Effective Amendment No. 7 to the
Registration Statement on Form N-4 (File No. 33-80750) and to my being named
under the caption "Legal Matters" therein.
Very truly yours,
/s/Susan E. Bryant
Susan E. Bryant
Counsel
Aetna Insurance Company of America
POWER OF ATTORNEY
We, the undersigned directors and officers of Aetna Insurance Company of America
hereby constitute and appoint Susan E. Bryant, Julie E. Rockmore and Kirk P.
Wickman and each of them individually, our true and lawful attorneys, with full
power to them and each of them to sign for us, and in our names and in the
capacities indicated below, any and all amendments, including but not limited to
Pre-Effective and Post-Effective Amendments, to the Registration Statements
listed below filed with the Securities and Exchange Commission under the
Securities Act of 1933 and/or the Investment Company Act of 1940:
Registration Statements filed under the Securities Act of 1933:
33-59749
33-62481
33-63611
33-63657
33-80750
Registration Statements filed under the Investment Company Act of 1940:
811-08582
hereby ratifying and confirming on this 16th day of January, 1997, our
signatures as they may be signed by our said attorneys to any such Registration
Statements and any and all amendments including but not limited to Pre-Effective
and Post-Effective Amendments thereto.
Signature/Title
/s/ Daniel P. Kearney
-------------------------------------------------------
Daniel P. Kearney
President and Director
(Principal Executive Officer)
/s/ Laura R. Estes
-------------------------------------------------------
Laura R. Estes, Director
Signature/Title
/s/ Deborah Koltenuk
-----------------------------------------------------
Deborah Koltenuk
Vice President, Treasurer, Corporate
Controller and Director
(Principal Financial and Accounting Officer)
/s/ James J. Mallozzi
-----------------------------------------------------
James J. Mallozzi, Director
AICAPOA.DOC 1/8/97 10:32AM
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<NAME> Aetna Variable Annuity Account I
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<PERIOD-START> JAN-01-1996
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