Select Dimensions
ITT Hartford Life and Annuity
Insurance Company
Separate Account Three
Hartford Life [screen of large buck standing in grass]
Insurance Company
Separate Account Three
Hartford Life
Insurance Company
Separate Account Five
Semi Annual Report
June 30, 1997
[Dean Witter logo]
<PAGE>
blank
<PAGE>
Select Dimensions
---------------------------------------
ITT Hartford Life and Annuity
Insurance Company
Separate Account Three
<PAGE>
Separate Account Three
ITT Hartford Life & Annuity Insurance Company
Statement of Assets & Liabilities
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
-------------- -----------------
<S> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 93,662,940
Cost $93,662,940
Market Value ................................................ $93,662,940 --
North American Government Securities Fund
Shares 419,902
Cost $4,231,341
Market Value ................................................ -- $4,245,211
Balanced Fund
Shares 3,592,991
Cost $44,017,070
Market Value ................................................ -- --
Utilities Fund
Shares 2,769,960
Cost $33,191,463
Market Value ................................................ -- --
Dividend Growth Fund
Shares 20,009,989
Cost $301,514,129
Market Value ................................................ -- --
Value-Added Market Fund
Shares 5,880,233
Cost $76,809,940
Market Value ................................................ -- --
Core Equity Fund
Shares 1,752,054
Cost $22,341,561
Market Value ................................................ -- --
American Value Fund
Shares 9,127,814
Cost $129,624,098
Market Value ................................................ -- --
Global Equity Fund
Shares 5,897,559
Cost $68,226,378
Market Value ................................................ -- --
Developing Growth Fund
Shares 3,646,194
Cost $57,453,339
Market Value ................................................ -- --
Emerging Markets Fund
Shares 1,888,057
Cost $20,633,490
Market Value ................................................ -- --
Diversified Income Fund
Shares 4,144,404
Cost $42,203,485
Market Value ................................................ -- --
Mid Cap Fund
Shares 712,997
Cost $6,971,481
Market Value ................................................ -- --
Due from ITT Hartford Life and Annuity Insurance Company ... -- 40,208
Receivable from fund shares sold ........................... 279,430 --
------------ -----------
Total Assets ................................................ 93,942,370 4,285,419
------------ -----------
Liabilities:
Due to ITT Hartford Life and Annuity Insurance Company ...... 279,079 --
Payable for fund shares purchased ........................... -- 40,219
------------ -----------
Total Liabilities .......................................... 279,079 40,219
------------ -----------
Net Assets (variable annuity contract liabilities) ......... $93,663,291 $4,245,200
============ ===========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts
Units Owned by Participants ................................. 8,439,971 384,324
Unit Price ................................................... $ 11.097585 $11.045893
Annuity contracts in the annuity period:
Individual Sub-Accounts
Units Owned by Participants ................................. -- --
Unit Price ................................................... -- --
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
------------- ------------- -------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 93,662,940
Cost $93,662,940
Market Value ................................................ -- -- --
North American Government Securities Fund
Shares 419,902
Cost $4,231,341
Market Value ................................................ -- -- --
Balanced Fund
Shares 3,592,991
Cost $44,017,070
Market Value ................................................ $50,840,816 -- --
Utilities Fund
Shares 2,769,960
Cost $33,191,463
Market Value ................................................ -- $37,782,249 --
Dividend Growth Fund
Shares 20,009,989
Cost $301,514,129
Market Value ................................................ -- -- $371,185,290
Value-Added Market Fund
Shares 5,880,233
Cost $76,809,940
Market Value ................................................ -- -- --
Core Equity Fund
Shares 1,752,054
Cost $22,341,561
Market Value ................................................ -- -- --
American Value Fund
Shares 9,127,814
Cost $129,624,098
Market Value ................................................ -- -- --
Global Equity Fund
Shares 5,897,559
Cost $68,226,378
Market Value ................................................ -- -- --
Developing Growth Fund
Shares 3,646,194
Cost $57,453,339
Market Value ................................................ -- -- --
Emerging Markets Fund
Shares 1,888,057
Cost $20,633,490
Market Value ................................................ -- -- --
Diversified Income Fund
Shares 4,144,404
Cost $42,203,485
Market Value ................................................ -- -- --
Mid Cap Fund
Shares 712,997
Cost $6,971,481
Market Value ................................................ -- -- --
Due from ITT Hartford Life and Annuity Insurance Company ... 46,143 1,039,110
Receivable from fund shares sold ........................... -- 87,646 --
------------ ------------ -------------
Total Assets ................................................ 50,886,959 37,869,895 372,224,400
------------ ------------ -------------
Liabilities:
Due to ITT Hartford Life and Annuity Insurance Company ...... -- 88,026 --
Payable for fund shares purchased ........................... 44,825 -- 1,038,757
------------ ------------ -------------
Total Liabilities .......................................... 44,825 88,026 1,038,757
------------ ------------ -------------
Net Assets (variable annuity contract liabilities) ......... $50,842,134 $37,781,869 $371,185,643
============ ============ =============
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts
Units Owned by Participants ................................. 3,422,541 2,608,263 18,657,704
Unit Price ................................................... $ 14.851667 $ 14.485451 $ 19.891494
Annuity contracts in the annuity period:
Individual Sub-Accounts
Units Owned by Participants ................................. 788 -- 2,817
Unit Price ................................................... $ 14.851667 -- $ 19.891494
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 2 -------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- -------------- --------------- ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
$94,789,355 -- -- -- -- -- -- --
-- $26,788,913 -- -- -- -- -- --
-- -- $153,438,557 -- -- -- -- --
-- -- -- $79,793,971 -- -- -- --
-- -- -- -- $63,225,003 -- -- --
-- -- -- -- -- $25,885,267 -- --
-- -- -- -- -- -- $42,397,248 --
-- -- -- -- -- -- -- $7,329,614
231,717 67,609 174,481 66,232 9,450 14,543 -- 87,359
-- -- -- -- -- -- 20,247 --
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
95,021,072 26,856,522 153,613,038 79,860,203 63,234,453 25,899,810 42,417,495 7,416,973
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
-- -- -- -- -- -- 20,247 --
231,726 67,615 174,720 66,220 6,609 14,557 -- 87,355
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
231,726 67,615 174,720 66,220 6,609 14,557 20,247 87,355
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
$94,789,346 $26,788,907 $153,438,318 $79,793,983 $63,227,844 $25,885,253 $42,397,248 $7,329,618
============ ============ ============= ============ ============ ============ ============ ===========
5,754,997 1,736,159 8,953,098 5,800,169 3,672,166 1,859,690 3,599,957 711,780
$ 16.466062 $ 15.423718 $ 17.135346 $ 13.756735 $ 17.214560 $ 13.907737 $ 11.777154 $10.297583
1,652 706 1,394 188 762 1,522 -- --
$ 16.466062 $ 15.423718 $ 17.135346 $ 13.756735 $ 17.214560 $ 13.907737 -- --
</TABLE>
- -------------------------------------- 3 --------------------------------------
<PAGE>
Separate Account Three
ITT Hartford Life & Annuity Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
-------------- -----------------
<S> <C> <C>
Investment Income:
Dividends .......................................... $2,099,701 $ 90,614
Expenses:
Mortality and expense undertakings .................. (586,865) (28,040)
---------- ----------
Net investment income (loss) ........................ 1,512,836 62,574
Capital gains income ................................. -- --
Net realized and unrealized gain (loss) on investments
Net realized gain (loss) on security transactions ... -- (455)
Net unrealized appreciation (depreciation) of
investments during the period ..................... -- 12,582
---------- ----------
Net gain (losses) on investments .................. -- 12,127
---------- ----------
Net increase (decrease) in net assets resulting from
operations ....................................... $1,512,836 $ 74,701
========== ==========
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
------------- ------------- ---------------
<S> <C> <C> <C>
Investment Income:
Dividends .......................................... $ 462,633 $ 560,590 $ 3,209,199
Expenses:
Mortality and expense undertakings .................. (304,160) (245,367) (2,074,819)
---------- ---------- -------------
Net investment income (loss) ........................ 158,473 315,223 1,134,380
Capital gains income ................................. 153,577 134,400 12,570,055
Net realized and unrealized gain (loss) on investments
Net realized gain (loss) on security transactions ... (18,936) 12,059 (21,713)
Net unrealized appreciation (depreciation) of
investments during the period ..................... 3,564,258 1,933,074 35,669,022
---------- ---------- -------------
Net gain (losses) on investments .................. 3,545,322 1,945,133 35,647,309
---------- ---------- -------------
Net increase (decrease) in net assets resulting from
operations ....................................... $3,857,372 $2,394,756 $ 49,351,744
========== ========== =============
</TABLE>
*From inception January 21, 1997 to June 30, 1997
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 4 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account*
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 592,731 $ 33,708 $ 336,138 $ 345,803 $ 104,365 $ 76,176 $1,432,865 $ 33,786
(547,219) (151,114) (913,987) (452,328) (403,859) (144,006) (247,145) (26,036)
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
45,512 (117,406) (577,849) (106,525) (299,494) (67,830) 1,185,720 7,750
189,721 117,643 3,034,595 115,160 -- -- 85,168 --
40,534 (36,891) (46,078) 25,695 (4,046) 11,229 (8,050) (5,552)
10,575,695 2,719,984 12,443,234 8,025,644 1,729,425 4,217,235 (185,424) 358,133
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
10,616,229 2,683,093 12,397,156 8,051,339 1,725,379 4,228,464 (193,474) 352,581
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
$10,851,462 $2,683,330 $14,853,902 $8,059,974 $1,425,885 $4,160,634 $1,077,414 $ 360,331
=========== ========== =========== ========== ========== ========== ========== =========
</TABLE>
- -------------------------------------- 5 --------------------------------------
<PAGE>
Separate Account Three
ITT Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
---------------- -----------------
<S> <C> <C>
Operations:
Net investment income (loss) ........................... $ 1,512,836 $ 62,574
Capital gains income .................................... -- --
Net realized gain (loss) on security transactions ...... -- (455)
Net unrealized appreciation (depreciation) of
investments during the period ........................ -- 12,582
-------------- ----------
Net increase (decrease) in net assets resulting from
operations ............................................. 1,512,836 74,701
-------------- ----------
Unit transactions:
Purchases ............................................. 44,887,407 601,785
Net transfers .......................................... (27,850,484) (27,534)
Surrenders ............................................. (6,430,071) (231,426)
Net annuity transactions .............................. -- --
-------------- ----------
Total increase (decrease) in net assets resulting from
unit transactions .................................... 10,606,852 342,825
-------------- ----------
Total increase (decrease) in net assets ............... 12,119,688 417,526
Net Assets:
Beginning of period .................................... 81,543,603 3,827,674
-------------- ----------
End of period .......................................... $ 93,663,291 $4,245,200
============== ==========
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
--------------- --------------- ---------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 158,473 $ 315,223 $ 1,134,380
Capital gains income .................................... 153,577 134,400 12,570,055
Net realized gain (loss) on security transactions ...... (18,936) 12,059 (21,713)
Net unrealized appreciation (depreciation) of
investments during the period ........................ 3,564,258 1,933,074 35,669,022
------------- ------------- ------------
Net increase (decrease) in net assets resulting from
operations ............................................. 3,857,372 2,394,756 49,351,744
------------- ------------- ------------
Unit transactions:
Purchases ............................................. 9,983,449 4,457,172 74,184,319
Net transfers .......................................... 2,690,387 (1,512,626) 13,559,888
Surrenders ............................................. (1,970,669) (1,641,897) (6,259,315)
Net annuity transactions .............................. (1,358) -- 3,517
------------- ------------- ------------
Total increase (decrease) in net assets resulting from
unit transactions .................................... 10,701,809 1,302,649 81,488,409
------------- ------------- ------------
Total increase (decrease) in net assets ............... 14,559,181 3,697,405 130,840,153
Net Assets:
Beginning of period .................................... 36,282,953 34,084,464 240,345,490
------------- ------------- ------------
End of period .......................................... $ 50,842,134 $ 37,781,869 $371,185,643
============= ============= ============
</TABLE>
*From inception January 21, 1997 to June 30, 1997
- --------------------------------------------------------------------------------
ITT Hartford Life and Annuity Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Government Balanced
Market Fund Securities Fund Fund Utilities Fund
Sub-Account Sub-Account Sub-Account Sub-Account
---------------- ----------------- -------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 2,015,660 $ 91,770 $ 291,816 $ 516,486
Capital gains income ....................................... -- -- 133,324 19,659
Net realized gain (loss) on security transactions ......... -- 146 (2,137) (9,700)
Net unrealized appreciation (depreciation) of
investments during the period ........................... -- (7,752) 2,434,571 1,346,860
------------- ---------- ----------- -----------
Net increase in net assets resulting from operations ...... 2,015,660 84,164 2,857,574 1,873,305
------------- ---------- ----------- -----------
Unit transactions:
Purchases ................................................ 87,509,584 2,449,165 16,974,073 16,024,407
Net transfers ............................................. (44,621,372) 203,409 2,397,686 (75,687)
Surrenders ................................................ (4,023,173) (41,335) (792,598) (938,935)
Net annuity transactions ................................. -- -- 11,286 --
------------- ---------- ----------- -----------
Total increase in net assets resulting from unit
transactions ............................................. 38,865,039 2,611,239 18,590,447 15,009,785
------------- ---------- ----------- -----------
Total increase in net assets .............................. 40,880,699 2,695,403 21,448,021 16,883,090
Net Assets:
Beginning of period ....................................... 40,662,904 1,132,271 14,834,932 17,201,374
------------- ---------- ----------- -----------
End of period ............................................. $ 81,543,603 $3,827,674 $36,282,953 $34,084,464
============= ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 6 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account*
- -------------- ------------- -------------- --------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 45,512 $ (117,406) $ (577,849) $ (106,525) $ (299,494) $ (67,830) $ 1,185,720 $ 7,750
189,721 117,643 3,034,595 115,160 -- -- 85,168 --
40,534 (36,891) (46,078) 25,695 (4,046) 11,229 (8,050) (5,552)
10,575,695 2,719,984 12,443,234 8,025,644 1,729,425 4,217,235 (185,424) 358,133
- ------------ ----------- ------------ ------------ ------------ ----------- ------------ ----------
10,851,462 2,683,330 14,853,902 8,059,974 1,425,885 4,160,634 1,077,414 360,331
- ------------ ----------- ------------ ------------ ------------ ----------- ------------ ----------
15,533,280 6,745,527 23,554,695 15,784,321 8,206,658 4,705,526 12,929,561 4,546,921
4,670,480 783,281 5,580,759 3,749,125 (1,429,060) 1,499,893 444,815 2,514,327
(1,588,148) (292,232) (2,363,208) (1,272,924) (1,678,998) (413,971) (1,601,467) (91,961)
(1,320) 6,893 (2,730) (68) (1,342) 5,817 -- --
- ------------ ----------- ------------ ------------ ------------ ----------- ------------ ----------
18,614,292 7,243,469 26,769,516 18,260,454 5,097,258 5,797,265 11,772,909 6,969,287
- ------------ ----------- ------------ ------------ ------------ ----------- ------------ ----------
29,465,754 9,926,799 41,623,418 26,320,428 6,523,143 9,957,899 12,850,323 7,329,618
65,323,592 16,862,108 111,814,900 53,473,555 56,704,701 15,927,354 29,546,925 --
- ------------ ----------- ------------ ------------ ------------ ----------- ------------ ----------
$94,789,346 $26,788,907 $153,438,318 $ 79,793,983 $63,227,844 $25,885,253 $42,397,248 $7,329,618
============ =========== ============ ============ ============ =========== ============ ==========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value Added Core Equity American Value Global Developing Emerging Diversified
Growth Fund Market Fund Fund Fund Equity Fund Growth Fund Markets Fund Income Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- -------------- -------------- ---------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,329,294 $ 107,879 $ (68,420) $ (592,660) $ (46,532) $ (465,111) $ (10,378) $ 1,113,077
171,162 22,962 23,882 343,751 38,052 39,359 -- 19,526
(18,644) (9,711) (19,763) (18,375) 3,232 (2,418) 2,901 (14,054)
27,743,616 6,274,483 1,628,841 8,398,356 2,977,064 2,663,616 1,086,487 258,517
------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------
29,225,428 6,395,613 1,564,540 8,131,072 2,971,816 2,235,446 1,079,010 1,377,066
------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------
125,692,963 29,831,198 10,134,999 61,308,203 30,438,241 34,425,443 9,543,061 16,710,309
16,517,648 8,058,083 1,785,696 8,928,691 5,422,580 5,020,629 1,898,163 4,393,264
(5,468,368) (1,128,293) (166,416) (2,457,975) (1,262,709) (1,291,832) (429,144) (1,150,693)
39,927 23,528 1,831 23,364 2,008 16,307 11,920 --
------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------
136,782,170 36,784,516 11,756,110 67,802,283 34,600,120 38,170,547 11,024,000 19,952,880
------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------
166,007,598 43,180,129 13,320,650 75,933,355 37,571,936 40,405,993 12,103,010 21,329,946
74,337,892 22,143,463 3,541,458 35,881,545 15,901,619 16,298,708 3,824,344 8,216,979
------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------
$240,345,490 $65,323,592 $16,862,108 $111,814,900 $53,473,555 $56,704,701 $15,927,354 $ 29,546,925
============ ============ =========== ============ ============ ============ =========== ============
</TABLE>
- -------------------------------------- 7 --------------------------------------
<PAGE>
Separate Account Three
ITT Hartford Life & Annuity Insurance Company
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account Three (the Account) is a separate investment account
within ITT Hartford Life & Annuity Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended.
Both the Company and the Account are subject to supervision and regulation
by the Department of Insurance of the State of Connecticut and the SEC.
The Account invests deposits by variable annuity contractholders of the
Company in various mutual funds (the Funds) as directed by the
contractholders.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) Security Transactions--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains
income represents dividends from the Funds which are characterized as
capital gains under tax regulations.
b) Security Valuation--The investment in shares of the Dean Witter Select
Dimensions Investment Series Mutual Funds are valued at the closing net
asset value per share as determined by the appropriate Fund as of June
30, 1997.
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
an insurance company under the Internal Revenue Code. Under current law,
no federal income taxes are payable with respect to the operations of
the Account.
d) Use of Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and
the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from
management's estimates.
3. Administration of the Account and Related Charges:
a) Mortality and Expense Undertakings--The Company, as issuer of variable
annuity contracts, provides the mortality and expense undertakings and,
with respect to the Account, receives a maximum annual fee of up to
1.25% of the Account's average daily net assets. The Company also
provides administrative services and receives an annual fee of 0.15% of
the Account's average daily net assets.
b) Deduction of Annual Maintenance Fee--Annual maintenance fees are
deducted through termination of units of interest from applicable
contract owners' accounts, in accordance with the terms of the
contracts.
- -------------------------------------- 8 --------------------------------------
<PAGE>
Select Dimensions
-----------------
Hartford Life
Insurance Company
Separate Account Three
<PAGE>
Separate Account Three
Hartford Life Insurance Company
Statement of Assets & Liabilities
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
-------------- -----------------
<S> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 9,046,105
Cost $9,046,105
Market Value ................................................ $9,046,105 --
North American Government Securities Fund
Shares 39,667
Cost $399,045
Market Value ................................................ -- $ 401,038
Balanced Fund
Shares 294,267
Cost $3,658,749
Market Value ................................................ -- --
Utilities Fund
Shares 120,559
Cost $1,451,457
Market Value ................................................ -- --
Dividend Growth Fund
Shares 1,877,327
Cost $29,753,090
Market Value ................................................ -- --
Value-Added Market Fund
Shares 799,490
Cost $10,788,349
Market Value ................................................ -- --
Core Equity Fund
Shares 148,970
Cost $1,907,239
Market Value ................................................ -- --
American Value Fund
Shares 755,541
Cost $10,783,684
Market Value ................................................ -- --
Global Equity Fund
Shares 692,432
Cost $8,133,293
Market Value ................................................ -- --
Developing Growth Fund
Shares 293,043
Cost $4,637,306
Market Value ................................................ -- --
Emerging Markets Fund
Shares 150,526
Cost $1,643,020
Market Value ................................................ -- --
Diversified Income Fund
Shares 399,744
Cost $4,071,324
Market Value ................................................ -- --
Mid Cap Fund
Shares 67,386
Cost $661,063
Market Value ................................................ -- --
Due From Hartford Life Insurance Company ..................... -- --
Receivable from fund shares sold ........................... 18,202 46
----------- -----------
Total Assets ................................................ 9,064,307 401,084
----------- -----------
Liabilities:
Due to Hartford Life Insurance Company ........................ 18,192 47
Payable for fund shares purchased ........................... -- --
----------- -----------
Total Liabilities ............................................. 18,192 47
----------- -----------
Net Assets (variable annuity contract liabilities) ............ $9,046,115 $ 401,037
=========== ===========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ................................. 815,143 36,306
Unit Price ................................................... $11.097585 $11.045893
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 9,046,105
Cost $9,046,105
Market Value ................................................ -- -- --
North American Government Securities Fund
Shares 39,667
Cost $399,045
Market Value ................................................ -- -- --
Balanced Fund
Shares 294,267
Cost $3,658,749
Market Value ................................................ $4,163,873 -- --
Utilities Fund
Shares 120,559
Cost $1,451,457
Market Value ................................................ -- $1,644,422 --
Dividend Growth Fund
Shares 1,877,327
Cost $29,753,090
Market Value ................................................ -- -- $34,824,413
Value-Added Market Fund
Shares 799,490
Cost $10,788,349
Market Value ................................................ -- -- --
Core Equity Fund
Shares 148,970
Cost $1,907,239
Market Value ................................................ -- -- --
American Value Fund
Shares 755,541
Cost $10,783,684
Market Value ................................................ -- -- --
Global Equity Fund
Shares 692,432
Cost $8,133,293
Market Value ................................................ -- -- --
Developing Growth Fund
Shares 293,043
Cost $4,637,306
Market Value ................................................ -- -- --
Emerging Markets Fund
Shares 150,526
Cost $1,643,020
Market Value ................................................ -- -- --
Diversified Income Fund
Shares 399,744
Cost $4,071,324
Market Value ................................................ -- -- --
Mid Cap Fund
Shares 67,386
Cost $661,063
Market Value ................................................ -- -- --
Due From Hartford Life Insurance Company ..................... 26,810 -- 323,111
Receivable from fund shares sold ........................... -- 581 --
----------- ----------- ------------
Total Assets ................................................ 4,190,683 1,645,003 35,147,524
----------- ----------- ------------
Liabilities:
Due to Hartford Life Insurance Company ........................ -- 176 --
Payable for fund shares purchased ........................... 26,781 -- 322,196
----------- ----------- ------------
Total Liabilities ............................................. 26,781 176 322,196
----------- ----------- ------------
Net Assets (variable annuity contract liabilities) ............ $4,163,902 $1,644,827 $34,825,328
=========== =========== ============
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ................................. 280,366 113,550 1,750,765
Unit Price ................................................... $14.851667 $14.485454 $ 19.891494
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 10 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
$12,887,777 -- -- -- -- -- -- --
-- $2,277,749 -- -- -- -- -- --
-- -- $12,700,647 -- -- -- -- --
-- -- -- $9,368,604 -- -- -- --
-- -- -- -- $5,081,371 -- -- --
-- -- -- -- -- $2,063,713 -- --
-- -- -- -- -- -- $4,089,385 --
-- -- -- -- -- -- -- $ 692,731
36,023 17,282 58,534 50,998 9,896 574 23,570 7,148
-- -- -- -- -- -- -- --
------------ ----------- ------------ ----------- ----------- ----------- ----------- -----------
12,923,800 2,295,031 12,759,181 9,419,602 5,091,267 2,064,287 4,112,955 699,879
------------ ----------- ------------ ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- -- -- --
36,061 17,305 58,529 50,988 9,688 570 23,572 7,148
------------ ----------- ------------ ----------- ----------- ----------- ----------- -----------
36,061 17,305 58,529 50,988 9,688 570 23,572 7,148
------------ ----------- ------------ ----------- ----------- ----------- ----------- -----------
$12,887,739 $2,277,726 $12,700,652 $9,368,614 $5,081,579 $2,063,717 $4,089,383 $ 692,731
============ =========== ============ =========== =========== =========== =========== ===========
782,685 147,677 741,196 681,020 295,191 148,386 347,230 67,271
$ 16.466062 $15.423718 $ 17.135346 $13.756735 $17.214560 $13.907737 $11.777154 $10.297583
</TABLE>
- -------------------------------------- 11 --------------------------------------
<PAGE>
Separate Account Three
Hartford Life Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Dividend
Money Market Government Balanced Utilities and Growth
Fund Securities Fund Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------- ----------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends .......................................... $ 184,895 $ 8,079 $ 33,433 $ 25,072 $ 260,628
Expenses:
Mortality and expense undertakings .................. (51,614) (2,526) (22,286) (11,032) (171,409)
---------- --------- ---------- ---------- ----------
Net investment income (loss) ........................ 133,281 5,553 11,147 14,040 89,219
Capital gains income ................................. -- -- 11,255 5,598 1,118,280
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ... -- (32) (1,841) (2,051) (623)
Net unrealized appreciation (depreciation) of
investments during the period ..................... -- 1,533 256,604 80,524 2,888,831
---------- --------- ---------- ---------- ----------
Net gain (losses) on investments .................. -- 1,501 254,763 78,473 2,888,208
---------- --------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting from
operations ....................................... $ 133,281 $ 7,054 $ 277,165 $ 98,111 $4,095,707
========== ========= ========== ========== ==========
</TABLE>
*From inception, January 21, 1997 to June 30, 1997
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 12 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account*
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 77,795 $ 2,751 $ 27,936 $ 38,146 $ 8,274 $ 6,121 $ 128,282 $ 3,900
(72,461) (12,377) (75,020) (49,928) (32,001) (11,565) (22,481) (2,929)
---------- --------- ---------- --------- --------- --------- --------- --------
5,334 (9,626) (47,084) (11,782) (23,727) (5,444) 105,801 971
25,010 9,815 253,252 13,138 -- -- 7,785 --
186 50 25,659 (1,892) (7,963) (22) (13) 1,205
1,367,028 221,805 1,025,005 892,347 147,364 343,516 (12,874) 31,668
---------- --------- ---------- --------- --------- --------- --------- --------
1,367,214 221,855 1,050,664 890,455 139,401 343,494 (12,887) 32,873
---------- --------- ---------- --------- --------- --------- --------- --------
$1,397,558 $ 222,044 $1,256,832 $ 891,811 $ 115,674 $ 338,050 $ 100,699 $ 33,844
========== ========= ========== ========= ========= ========= ========= ========
</TABLE>
- -------------------------------------- 13 --------------------------------------
<PAGE>
Separate Account Three
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
--------------- -----------------
<S> <C> <C>
Operations:
Net investment income (loss) ........................ $ 133,281 $ 5,553
Capital gains income ................................. -- --
Net realized gain (loss) on security transactions ... -- (32)
Net unrealized appreciation (depreciation) of investment
during the period .................................... -- 1,533
------------- ----------
Net increase (decrease) in net assets resulting from
operations .......................................... 133,281 7,054
------------- ----------
Unit transactions:
Purchases ............................................. 6,084,950 60,542
Net transfers ....................................... (2,104,621) 2,400
Surrenders .......................................... (525,900) (10,898)
------------- ----------
Total increase (decrease) in net assets resulting from
unit transactions .................................... 3,454,429 52,044
------------- ----------
Total increase (decrease) in net assets ............... 3,587,710 59,098
Net Assets:
Beginning of period ................................. 5,458,405 341,939
------------- ----------
End of period ....................................... $ 9,046,115 $ 401,037
============= ==========
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
------------- ------------- -------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................ $ 11,147 $ 14,040 $ 89,219
Capital gains income ................................. 11,255 5,598 1,118,280
Net realized gain (loss) on security transactions ... (1,841) (2,051) (623)
Net unrealized appreciation (depreciation) of investment
during the period .................................... 256,604 80,524 2,888,831
---------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations .......................................... 277,165 98,111 4,095,707
---------- ---------- -----------
Unit transactions:
Purchases ............................................. 1,446,693 263,249 12,008,068
Net transfers ....................................... 15,952 (269,113) 1,732,516
Surrenders .......................................... (182,200) (45,946) (812,572)
---------- ---------- -----------
Total increase (decrease) in net assets resulting from
unit transactions .................................... 1,280,445 (51,810) 12,928,012
---------- ---------- -----------
Total increase (decrease) in net assets ............... 1,557,610 46,301 17,023,719
Net Assets:
Beginning of period ................................. 2,606,292 1,598,526 17,801,609
---------- ---------- -----------
End of period ....................................... $4,163,902 $1,644,827 $34,825,328
========== ========== ===========
</TABLE>
*From inception, January 21, 1997 to June 30, 1997
- --------------------------------------------------------------------------------
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Government Balanced
Market Fund Securities Fund Fund Utilities Fund
Sub-Account Sub-Account Sub-Account Sub-Account
-------------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 99,617 $ 8,511 $ 20,892 $ 21,954
Capital gains income ....................................... -- -- 8,328 894
Net realized gain (loss) on security transactions ......... -- 335 6,424 (1,428)
Net unrealized appreciation of investments during
the period ................................................ -- 60 165,616 59,442
------------ --------- ---------- ----------
Net increase in net assets resulting from operations ...... 99,617 8,906 201,260 80,862
------------ --------- ---------- ----------
Unit transactions:
Purchases ................................................ 6,948,541 205,518 1,550,548 896,723
Net transfers ............................................. (2,722,056) 173,663 (295,995) 128,215
Surrenders ................................................ (186,897) (93,829) (203,150) (137,390)
------------ --------- ---------- ----------
Net increase in net assets resulting from unit
transactions ............................................. 4,039,588 285,352 1,051,403 887,548
------------ --------- ---------- ----------
Total increase in net assets .............................. 4,139,205 294,258 1,252,663 968,410
Net Assets:
Beginning of period ....................................... 1,319,200 47,681 1,353,629 630,116
------------ --------- ---------- ----------
End of period ............................................. $ 5,458,405 $ 341,939 $2,606,292 $1,598,526
============ ========= ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 14 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account*
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,334 $ (9,626) $ (47,084) $ (11,782) $ (23,727) $ (5,444) $ 105,801 $ 971
25,010 9,815 253,252 13,138 -- -- 7,785 --
186 50 25,659 (1,892) (7,963) (22) (13) 1,205
1,367,028 221,805 1,025,005 892,347 147,364 343,516 (12,874) 31,668
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
1,397,558 222,044 1,256,832 891,811 115,674 338,050 100,699 33,844
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
3,137,629 549,161 3,164,949 2,878,522 963,038 327,504 1,260,000 628,717
376,463 180,759 (354,876) 316,521 (286,690) 84,321 353,376 54,558
(200,826) (33,247) (432,441) (479,693) (120,749) (28,414) (187,708) (24,388)
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
3,313,266 696,673 2,377,632 2,715,350 555,599 383,411 1,425,668 658,887
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
4,710,824 918,717 3,634,464 3,607,161 671,273 721,461 1,526,367 692,731
8,176,915 1,359,009 9,066,188 5,761,453 4,410,306 1,342,256 2,563,016 --
- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ---------
$12,887,739 $2,277,726 $12,700,652 $9,368,614 $5,081,579 $2,063,717 $4,089,383 $ 692,731
=========== ========== =========== ========== ========== ========== ========== =========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value Added Core Equity American Global Developing Emerging Diversified
Growth Fund Market Fund Fund Value Fund Equity Fund Growth Fund Markets Fund Income Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- -------------- ------------- ------------- ------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 82,889 $ 7,612 $ (5,790) $ (45,165) $ (5,756) $ (33,989) $ (1,247) $ 83,793
10,163 1,620 1,743 23,844 3,905 2,707 -- 1,078
(1,335) 3,162 519 179 932 3,963 (27) 101
1,770,825 638,574 144,463 660,479 304,832 196,773 77,164 21,655
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1,862,542 650,968 140,935 639,337 303,913 169,454 75,890 106,627
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
11,219,771 5,771,510 819,995 5,876,271 3,658,651 3,157,803 932,707 1,616,132
1,189,188 118,782 109,486 669,473 948,105 274,161 206,356 235,033
(665,008) (62,463) (12,084) (319,324) (211,305) (148,442) (38,428) (38,500)
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
11,743,951 5,827,829 917,397 6,226,420 4,395,451 3,283,522 1,100,635 1,812,665
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
13,606,493 6,478,797 1,058,332 6,865,757 4,699,364 3,452,976 1,176,525 1,919,292
4,195,116 1,698,118 300,677 2,200,431 1,062,089 957,330 165,731 643,724
----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$17,801,609 $8,176,915 $1,359,009 $9,066,188 $5,761,453 $4,410,306 $1,342,256 $2,563,016
=========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
- -------------------------------------- 15 --------------------------------------
<PAGE>
Separate Account Three
Hartford Life Insurance Company
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account Three (the Account) is a separate investment account
within Hartford Life Insurance Company (the Company) and is registered
with the Securities and Exchange Commission (SEC) as a unit investment
trust under the Investment Company Act of 1940, as amended. Both the
Company and the Account are subject to supervision and regulation by the
Department of Insurance of the State of Connecticut and the SEC. The
Account invests deposits by variable annuity contractholders of the
Company in various mutual funds (the Funds) as directed by the
contractholders.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) Security Transactions--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains
income represents dividends from the Funds which are characterized as
capital gains under tax regulations.
b) Security Valuation--The investment in shares of the Dean Witter Select
Dimensions Investment Series Mutual Funds are valued at the closing net
asset value per share as determined by the appropriate Fund as of June
30, 1997.
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
an insurance company under the Internal Revenue Code. Under current law,
no federal income taxes are payable with respect to the operations of
the Account.
d) Use of Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and
the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from
management's estimates.
3. Administration of the Account and Related Charges:
a) Mortality and Expense Undertakings--The Company, as issuer of variable
annuity contracts, provides the mortality and expense undertakings and,
with respect to the Account, receives a maximum annual fee of up to
1.25% of the Account's average daily net assets. The Company also
provides administrative services and receives an annual fee of 0.15% of
the Account's average daily net assets.
b) Deduction of Annual Maintenance Fee--Annual maintenance fees are
deducted through termination of units of interest from applicable
contract owners' accounts, in accordance with the terms of the
contracts.
- -------------------------------------- 16 --------------------------------------
<PAGE>
Select Dimensions
-----------------
Hartford Life
Insurance Company
Separate Account Five
Separate Account Five
Hartford Life Insurance Company
Statement of Assets & Liabilities
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Market Government
Fund Securities Fund
Sub-Account Sub-Account
-------------- -----------------
<S> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 56,906
Cost $56,906
Market Value ................................................ $ 56,906 --
North American Gov't Securities Fund
Shares 100
Cost $1,004
Market Value ................................................ -- $ 1,010
Balanced Fund
Shares 74
Cost $1,005
Market Value ................................................ -- --
Utilities Fund
Shares 77
Cost $1,007
Market Value ................................................ -- --
Dividend Growth Fund
Shares 1,888
Cost $35,007
Market Value ................................................ -- --
Value-Added Market Fund
Shares 65
Cost $1,004
Market Value ................................................ -- --
Core Equity Fund
Shares 69
Cost $1,005
Market Value ................................................ -- --
American Value Fund
Shares 361
Cost $6,014
Market Value ................................................ -- --
Global Equity Fund
Shares 1,915
Cost $25,876
Market Value ................................................ -- --
Developing Growth Fund
Shares 731
Cost $12,591
Market Value ................................................ -- --
Emerging Markets Fund
Shares 82
Cost $1,002
Market Value ................................................ -- --
Diversified Income Fund
Shares 831
Cost $8,496
Market Value ................................................ -- --
Mid Cap Fund
Shares 103
Cost $1,002
Market Value ................................................ -- --
Due From Hartford Life Insurance Company ..................... -- --
Receivable from fund shares sold .............................. 52,999 --
---------- -----------
Total Assets ................................................ 109,905 1,010
---------- -----------
Liabilities:
Due to Hartford Life Insurance Company ..................... 52,928 --
Payable for fund shares purchased ........................... -- --
---------- -----------
Total Liabilities ............................................. 52,928 --
---------- -----------
Net Assets (variable life contract liabilities) ............... $ 56,977 $ 1,010
========== ===========
Variable life contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ................................. 56,643 100
Unit Price ................................................... $1.005896 $10.095000
<CAPTION>
Dividend
Balanced Utilities and Growth
Fund Fund Fund
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Fund
Shares 56,906
Cost $56,906
Market Value ................................................ -- -- --
North American Gov't Securities Fund
Shares 100
Cost $1,004
Market Value ................................................ -- -- --
Balanced Fund
Shares 74
Cost $1,005
Market Value ................................................ $ 1,044 -- --
Utilities Fund
Shares 77
Cost $1,007
Market Value ................................................ -- $ 1,047 --
Dividend Growth Fund
Shares 1,888
Cost $35,007
Market Value ................................................ -- -- $ 35,015
Value-Added Market Fund
Shares 65
Cost $1,004
Market Value ................................................ -- -- --
Core Equity Fund
Shares 69
Cost $1,005
Market Value ................................................ -- -- --
American Value Fund
Shares 361
Cost $6,014
Market Value ................................................ -- -- --
Global Equity Fund
Shares 1,915
Cost $25,876
Market Value ................................................ -- -- --
Developing Growth Fund
Shares 731
Cost $12,591
Market Value ................................................ -- -- --
Emerging Markets Fund
Shares 82
Cost $1,002
Market Value ................................................ -- -- --
Diversified Income Fund
Shares 831
Cost $8,496
Market Value ................................................ -- -- --
Mid Cap Fund
Shares 103
Cost $1,002
Market Value ................................................ -- -- --
Due From Hartford Life Insurance Company ..................... -- -- 33,967
Receivable from fund shares sold .............................. -- -- --
----------- ----------- -----------
Total Assets ................................................ 1,044 1,047 68,982
----------- ----------- -----------
Liabilities:
Due to Hartford Life Insurance Company ..................... -- -- --
Payable for fund shares purchased ........................... -- -- 33,967
----------- ----------- -----------
Total Liabilities ............................................. -- -- 33,967
----------- ----------- -----------
Net Assets (variable life contract liabilities) ............... $ 1,044 $ 1,047 $ 35,015
=========== =========== ===========
Variable life contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ................................. 100 100 3,343
Unit Price ................................................... $10.437500 $10.469700 $10.475400
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 18 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
$ 1,056 -- -- -- -- -- -- --
-- $ 1,060 -- -- -- -- -- --
-- -- $ 6,069 -- -- -- -- --
-- -- -- $ 25,913 -- -- -- --
-- -- -- -- $ 12,680 -- -- --
-- -- -- -- -- $ 1,124 -- --
-- -- -- -- -- -- $ 8,504 --
-- -- -- -- -- -- -- $ 1,060
-- -- 4,992 24,873 11,590 -- 7,488 --
-- -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
1,056 1,060 11,061 50,786 24,270 1,124 15,992 1,060
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- -- -- --
-- -- 4,992 24,873 11,590 -- 7,488 --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- 4,992 24,873 11,590 -- 7,488 --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,056 $ 1,060 $ 6,069 $ 25,913 $ 12,680 $ 1,124 $ 8,504 $ 1,060
=========== =========== =========== =========== =========== =========== =========== ===========
100 100 563 2,492 1,164 100 837 100
$10.556000 $10.596100 $10.770500 $10.398200 $10.890000 $11.238200 $10.163700 $10.592500
</TABLE>
- -------------------------------------- 19 --------------------------------------
<PAGE>
Separate Account Five
Hartford Life Insurance Company
Statement of Operations
For the Period, May 1, 1997 to June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Dividend
Money Market Government Balanced Utilities and Growth
Fund Securities Fund Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------- ----------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends .......................................... $209 $ 4 $ 1 $ 3 $ 3
Expenses:
Mortality and expense undertakings .................. -- -- -- -- --
----- ---- ---- ---- ----
Net investment income (loss) ........................ 209 4 1 3 3
Capital gains income ................................. -- -- 4 4 37
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ... -- -- -- -- --
Net unrealized appreciation (depreciation) of
investments during the period ..................... -- 6 39 40 8
----- ---- ---- ---- ----
Net gain (loss) on investments ..................... -- 6 39 40 8
----- ---- ---- ---- ----
Net increase (decrease) in net assets resulting from
operations ....................................... $209 $10 $44 $47 $48
===== ==== ==== ==== ====
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 20 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2 $ -- $ 1 $ 1 $ -- $ 2 $ 6 $ 2
-- -- -- -- -- -- -- --
----- ---- ---- ---- ---- ----- ---- ----
2 -- 1 1 -- 2 6 2
2 5 22 2 -- -- 2 --
-- -- -- -- -- -- -- --
52 55 55 37 89 122 8 58
----- ---- ---- ---- ---- ----- ---- ----
52 55 55 37 89 122 8 58
----- ---- ---- ---- ---- ----- ---- ----
$ 56 $60 $78 $40 $89 $124 $16 $60
===== ==== ==== ==== ==== ===== ==== ====
</TABLE>
- -------------------------------------- 21 --------------------------------------
<PAGE>
Separate Account Five
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Period, May 1, 1997 to June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Dividend
Money Market Government Balanced Utilities and Growth
Fund Securities Fund Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------- ----------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................ $ 209 $ 4 $ 1 $ 3 $ 3
Capital gains income ................................. -- -- 4 4 37
Net unrealized appreciation (depreciation) of
investments during the period ..................... -- 6 39 40 8
---------- ------- ------- ------- --------
Net increase (decrease) in net assets resulting from
operations .......................................... 209 10 44 47 48
---------- ------- ------- ------- --------
Unit transactions:
Purchases .......................................... 139,950 1,000 1,000 1,000 1,000
Net transfers ....................................... (82,910) -- -- -- 33,967
Surrenders .......................................... (197) -- -- -- --
Cost of Insurance .................................... (75) -- -- -- --
---------- ------- ------- ------- --------
Total increase (decrease) in net assets resulting from
unit transactions ................................. 56,768 1,000 1,000 1,000 34,967
---------- ------- ------- ------- --------
Total increase (decrease) in net assets ............ 56,977 1,010 1,044 1,047 35,015
Net Assets:
Beginning of period ................................. -- -- -- -- --
---------- ------- ------- ------- --------
End of period ....................................... $ 56,977 $1,010 $1,044 $1,047 $35,015
========== ======= ======= ======= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 22 --------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Added Core Equity American Global Equity Developing Emerging Diversified Mid Cap
Market Fund Fund Value Fund Value Fund Growth Fund Markets Fund Income Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- --------------- ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2 $ -- $ 1 $ 1 $ -- $ 2 $ 6 $ 2
2 5 22 2 -- -- 2 --
52 55 55 37 89 122 8 58
------- ------- ------- -------- -------- ------- ------- -------
56 60 78 40 89 124 16 60
------- ------- ------- -------- -------- ------- ------- -------
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
-- -- 4,991 24,873 11,591 -- 7,488 --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- ------- -------- -------- ------- ------- -------
1,000 1,000 5,991 25,873 12,591 1,000 8,488 1,000
------- ------- ------- -------- -------- ------- ------- -------
1,056 1,060 6,069 25,913 12,680 1,124 8,504 1,060
-- -- -- -- -- -- -- --
------- ------- ------- -------- -------- ------- ------- -------
$1,056 $1,060 $6,069 $25,913 $12,680 $1,124 $8,504 $1,060
======= ======= ======= ======== ======== ======= ======= =======
</TABLE>
- -------------------------------------- 23 --------------------------------------
<PAGE>
Separate Account Five
Hartford Life Insurance Company
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account Five (the Account) is a separate investment account with
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the
Account are subject to supervision and regulation by the Department of
Insurance of the State of Connecticut and the SEC. The Account invests
deposits by variable life contractholders of the Company in various mutual
funds (The Funds) as directed by the contractholders.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) Security Transactions--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains
income represents dividends from the Funds which are characterized as
capital gains under tax regulations.
b) Security Valuation--The investment in shares of the Dean Witter Select
Dimensions Mutual Funds are valued at the closing net asset value per
share as determined by the appropriate Fund as of June 30, 1997.
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
an insurance company under the Internal Revenue Code. Under current law,
no federal income taxes are payable with respect to the operations of
the Account.
d) Use of Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and
the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from
management's estimates.
3. Administration of the Account and Related Charges:
In accordance with the terms of the contracts, the Company makes
deductions for mortality and expense undertakings, cost of insurance,
administrative fees, and state premium taxes. These charges are deducted
through termination of units of interest from applicable contract owners'
accounts.
- -------------------------------------- 24 --------------------------------------
<PAGE>
[blank page]
<PAGE>
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Hartford Life BULK RATE
P.O. Box 2999 U.S. POSTAGE
Hartford, CT 06104-2999 PAID
PERMIT NO. 1
HARTFORD, CT
-------------
[DEAN WITTER logo]
Principal Underwriter for the Separate Accounts:
Hartford Equity Sales Company, Inc. (HESCO)
Hartford Plaza
Hartford, CT 06115
Hartford Securities Distribution Company, Inc. (HSD)
Hartford Plaza
Hartford, CT 06115
[Hartford Life logo]
Hartford Life
ITT Hartford Life and Annuity
Insurance Company
Individual Annuity Operations
P.O. Box 5085
Hartford, CT 05102-5085
