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Dimensions
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Hartford Life and Annuity
Insurance Company
Separate Account Three
Hartford Life and Annuity
Insurance Company
Separate Account Five
Hartford Life
Insurance Company
Separate Account Three
Hartford Life
Insurance Company
Separate Account Five
Semi Annual Report
June 30, 1998
[Dean Witter Logo] Dean Witter
<PAGE>
Select Dimensions
[picture of a deer]
Hartford Life and Annuity
Insurance Company
Separate Account Three
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
---------------- --------------- ----------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Portfolio
Shares 83,798,012
Cost $83,798,012
Market Value ............................................................. $ 83,798,012 -- --
North American Government Securities Portfolio
Shares 548,399
Cost $5,536,823
Market Value ............................................................. -- $ 5,582,698 --
Balanced Growth Portfolio
Shares 5,178,822
Cost $68,494,212
Market Value ............................................................. -- -- $ 83,430,816
Utilities Portfolio
Shares 3,481,760
Cost $44,560,736
Market Value ............................................................. -- -- --
Dividend Growth Portfolio
Shares 27,439,035
Cost $450,986,995
Market Value ............................................................. -- -- --
Value-Added Market Portfolio
Shares 74,857
Cost $105,322,470
Market Value ............................................................. -- -- --
Growth Portfolio
Shares 2,522,920
Cost $35,262,191
Market Value ............................................................. -- -- --
American Value Portfolio
Shares 12,781,087
Cost $202,013,143
Market Value ............................................................. -- -- --
Global Equity Portfolio
Shares 7,434,915
Cost $89,575,178
Market Value ............................................................. -- -- --
Due from Hartford Life and Annuity Insurance Company ...................... -- 8,650 175,620
Receivable from fund shares sold .......................................... 95,306 -- --
----------- ---------- -----------
Total Assets .............................................................. 83,893,318 5,591,348 83,606,436
----------- ---------- -----------
Liabilities:
Due to Hartford Life and Annuity Insurance Company ........................ 94,954 -- --
Payable for fund shares purchased ......................................... -- 8,661 173,445
----------- ---------- -----------
Total Liabilities ......................................................... 94,954 8,661 173,445
----------- ---------- -----------
Net Assets (variable annuity contract liabilities) . ...................... $83,798,364 $5,582,687 $83,432,991
=========== ========== ===========
Deferred Annuity Contracts in the Accumulation Period:
Group Sub-Accounts
Units Owned by Contractholders ............................................ 7,263,325 482,795 4,788,062
Unit Price ................................................................ $ 11.519121 $11.496197 $ 17.420684
Annuity Contracts in the Annuity Period:
Group Sub-Accounts
Units Owned by Contractholders ............................................ 11,394 2,817 1,245
Unit Price ................................................................ $ 11.519121 $11.496197 $ 17.420684
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------2---------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value-Added American Global
Utilities Dividend Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------- ----------------- ----------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$ 60,269,258 -- -- -- -- --
-- $ 580,884,363 -- -- -- --
-- -- $ 143,202,084 -- -- --
-- -- -- $ 44,933,208 -- --
-- -- -- -- $ 274,793,379 --
-- -- -- -- -- $ 108,178,011
50,737 523,596 -- 64,271 147,829 83,289
-- -- 21,088 -- -- --
------------ ------------- ------------- ------------ ------------- -------------
60,319,995 581,407,959 143,223,172 44,997,479 274,941,208 108,261,300
------------ ------------- ------------- ------------ ------------- -------------
-- -- 21,091 -- -- --
51,109 525,191 -- 64,277 148,078 83,282
------------ ------------- ------------- ------------ ------------- -------------
51,109 525,191 21,091 64,277 148,078 83,282
------------ ------------- ------------- ------------ ------------- -------------
$ 60,268,886 $ 580,882,768 $ 143,202,081 $ 44,933,202 $ 274,793,130 $ 108,178,018
============ ============= ============= ============ ============= =============
3,204,712 24,396,718 7,231,260 2,464,081 11,551,622 7,302,004
18.803031 23.79514 19.798976 18.230887 23.786242 14.814524
563 15,106 1,542 593 986 156
18.803031 23.79514 19.798976 18.230887 23.786242 14.814524
</TABLE>
- ---------------------------------------3---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Assets & Liabilities--(continued)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging Diversified
Growth Markets Income
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
---------------- ---------------- ----------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Developing Growth Portfolio
Shares 3,874,310
Cost $61,883,946
Market Value ............................................................ $ 81,089,308 -- --
Emerging Markets Portfolio
Shares 1,753,618
Cost $89,575,178
Market Value ............................................................ -- $ 15,694,877 --
Diversified Income Portfolio
Shares 6,574,029
Cost $67,098,826
Market Value ............................................................ -- -- $ 66,989,354
Mid-Cap Growth Portfolio
Shares 2,002,838
Cost $21,724,855
Market Value ............................................................ -- -- --
Morgan Stanley High Yield Portfolio
Shares 343,756
Cost $3,778,051
Market Value ............................................................ -- -- --
Morgan Stanley MidCap Portfolio
Shares 145,922
Cost $2,138,544
Market Value ............................................................ -- -- --
Morgan Stanley Emerging Markets Debt Fund
Shares 12,613
Cost $123,548
Market Value ............................................................ -- -- --
Van Kempen Strategic Stock Fund
Shares 82,576
Cost $946,064
Market Value ............................................................ -- -- --
Van Kempen Enterprise Fund
Shares 44,012
Cost $906,520
Market Value ............................................................ -- -- --
Due from Hartford Life and Annuity Insurance Company ..................... 1,991 5,655 22,165
Receivable from fund shares sold ......................................... 835 -- --
------------ ------------ ------------
Total Assets ............................................................. 81,092,134 15,700,532 67,011,519
------------ ------------ ------------
Liabilities:
Due to Hartford Life Insurance Company ................................... -- -- --
Due to Hartford Life Insurance Company ...................................
Due to Hartford Life and Annuity Insurance Company ....................... -- -- --
Payable for fund shares purchased ........................................ -- 5,669 22,167
------------ ------------ ------------
Total Liabilities ........................................................ -- 5,669 22,167
------------ ------------ ------------
Net Assets (variable annuity contract liabilities) . ..................... $ 81,092,134 $ 15,694,863 $ 66,989,352
============ ============ ============
Deferred Annuity Contracts in the Accumulation Period:
Group Sub-Accounts
Units Owned by Contractholders ........................................... 3,946,899 1,734,062 5,346,334
Unit Price ............................................................... 20.542889 9.044886 12.525831
Annuity Contracts in the Annuity Period:
Group Sub-Accounts
Units Owned by Contractholders ........................................... 556 1,157 1,762
Unit Price ............................................................... 20.542889 9.044886 12.525831
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------4----------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley
Mid-Cap Morgan Stanley Morgan Stanley Emerging Van Kempen Van Kempen
Growth High Yield Mid-Cap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------- ---------------- ---------------- --------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$ 24,674,967 -- -- -- -- --
-- $ 3,784,758 -- -- -- --
-- -- $ 2,120,246 -- -- --
-- -- -- $ 117,304 -- --
-- -- -- -- $ 928,985 --
-- -- -- -- -- $ 927,327
111,483 309,267 13,710 -- 1,072 7,692
-- -- -- 4 -- --
------------ ----------- ----------- ---------- ---------- ----------
24,786,450 4,094,025 2,133,956 117,308 930,057 935,019
------------ ----------- ----------- ---------- ---------- ----------
40,997 -- -- -- -- --
-- -- -- 4 -- --
70,539 309,268 13,736 -- 1,070 7,683
------------ ----------- ----------- ---------- ---------- ----------
111,536 309,268 13,736 4 1,070 7,683
------------ ----------- ----------- ---------- ---------- ----------
$ 24,674,914 $ 3,784,757 $ 2,120,220 $ 117,304 $ 928,987 $ 927,336
============ =========== =========== ========== ========== ==========
1,985,682 379,095 221,251 12,847 95,125 91,860
12.42642 9.983667 9.582861 9.131023 9.765936 10.09509
-- -- -- -- -- --
-- -- -- -- -- --
</TABLE>
- ---------------------------------------5---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Balanced
Money Market Government Growth
Portfolio Securities Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- ---------------------- --------------
<S> <C> <C> <C>
Investment Income:
Dividends ................................................. 1,929,536 107,012 909,944
Expenses:
Mortality and expense undertakings ........................ (529,007) (35,613) (524,432)
---------- -------- ----------
Net investment income (loss) ............................. 1,400,529 71,399 385,512
---------- -------- ----------
Capital gains income -- -- 1,697,873
---------- -------- ----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... -- 646 721
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 6,218 4,808,257
---------- -------- ----------
Net gain (loss) on investments ........................... -- 6,864 4,808,978
---------- -------- ----------
Net increase (decrease) in net assets resulting from
operations .............................................. $1,400,529 $ 78,263 $6,892,363
========== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------6-------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value-Added American Global
Utilities Dividend Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ----------------- --------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
635,565 4,935,058 799,369 -- 497,037 862,026
(381,468) (3,714,248) (938,583) (291,044) (1,675,981) (695,986)
-------- ---------- -------- -------- ---------- --------
254,097 1,220,810 (139,214) (291,044) (1,178,944) 166,040
-------- ---------- -------- -------- ---------- --------
657,872 23,297,871 1,970,707 1,177,870 22,283,610 368,656
-------- ---------- --------- --------- ---------- --------
2,708 (10,932) 1,334 4,136 (24,093) 37,562
4,720,360 38,524,925 11,023,834 2,927,518 21,504,795 10,884,136
--------- ---------- ---------- --------- ---------- ----------
4,723,068 38,513,993 11,025,168 2,931,654 21,480,702 10,921,698
--------- ---------- ---------- --------- ---------- ----------
$5,635,037 $ 63,032,674 $12,856,661 $3,818,480 $ 42,585,368 $11,456,394
========== ============ =========== ========== ============ ===========
</TABLE>
- ---------------------------------------7---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Operations--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging Diversified
Growth Markets Income
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- --------------- --------------
<S> <C> <C> <C>
Investment Income:
Dividends ................................................. 51,723 124,625 2,314,558
Expenses:
Mortality and expense undertakings ........................ (549,879) (134,878) (425,835)
---------- ------------ ----------
Net investment income (loss) ............................. (498,156) (10,253) 1,888,723
---------- ------------ ----------
Capital gains income 110,206 44,837 85,594
---------- ------------ ----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... 74,404 (377,841) 1,625
Net unrealized appreciation (depreciation) of
investments during the period ............................ 6,874,911 (3,825,923) (598,612)
---------- ------------ ----------
Net gain (loss) on investments ........................... 6,949,315 (4,203,764) (596,987)
---------- ------------ ----------
Net increase (decrease) in net assets resulting from
operations .............................................. $6,561,365 $ (4,169,180) $1,377,330
========== ============ ==========
</TABLE>
*From inception, April 1, 1998 to June 30, 1998.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------8---------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanely*
Mid-Cap Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
Growth High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
73,877 -- -- -- -- --
(147,279) (6,738) (3,333) (222) (1,608) (1,332)
---------- -------- --------- -------- --------- --------
(73,402) (6,738) (3,333) (222) (1,608) (1,332)
---------- -------- --------- -------- --------- --------
198,842 -- -- -- -- --
---------- -------- --------- -------- --------- --------
6,047 -- 267 49 50 (29)
1,569,264 6,707 (18,298) (6,244) (17,079) 20,807
---------- -------- --------- -------- --------- --------
1,575,311 6,707 (18,031) (6,195) (17,029) 20,788
---------- -------- --------- -------- --------- --------
$1,700,751 $ (31) $ (21,364) $ (6,417) $ (18,637) $ 19,446
========== ======== ========= ======== ========= ========
</TABLE>
- ---------------------------------------9---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Balanced
Money Government Growth
Market Portfolio Securities Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------------ ---------------------- ---------------
<S> <C> <C> <C>
Net investment income (loss) .............................. $ 1,400,529 $ 71,399 $ 385,512
Capital gains income ...................................... -- -- 1,697,873
Net realized gain (loss) on security transactions ......... -- 646 721
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 6,218 4,808,257
------------ ---------- ------------
Net increase (decrease) in net assets resulting from
operations ............................................... $ 1,400,529 $ 78,263 $ 6,892,363
------------ ---------- ------------
Unit transactions:
Purchases ................................................. 13,630,489 747,776 6,024,577
Net transfers ............................................. 846,113 313,523 7,207,111
Surrenders ................................................ (7,126,619) (267,514) (1,992,912)
Net annuity transactions .................................. 129,491 31,867 (3,637)
------------ ---------- ------------
Net increase (decrease) in net assets resulting from
unit transactions ........................................ 7,479,474 825,652 11,235,139
------------ ---------- ------------
Total increase (decrease) in net assets . ................. 8,880,003 903,915 18,127,502
Net assets:
Beginning of period ....................................... 74,918,361 4,678,772 65,305,489
------------ ---------- ------------
End of period ............................................. $ 83,798,364 $5,582,687 $ 83,432,991
============ ========== ============
</TABLE>
- --------------------------------------------------------------------------------
Hartford Life and Annuity Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Money Government Balanced
Market Portfolio Securities Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------------ ---------------------- --------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) . .............................. $ 3,091,495 $ 145,013 $ 349,565
Capital gains income . ...................................... -- -- 153,577
Net realized gain (loss) on security transactions . ......... -- (263) (30,616)
Net unrealized appreciation (depreciation) of
investments during the period .............................. -- 38,369 6,868,859
------------- ---------- ------------
Net increase (decrease) in net assets resulting from
operations ................................................. 3,091,495 183,119 7,341,385
------------- ---------- ------------
Unit transactions:
Purchases ................................................... 64,717,334 1,138,836 18,839,623
Net transfers ............................................... (63,595,299) (44,078) 6,155,476
Surrenders .................................................. (10,838,772) (426,779) (3,322,915)
Net annuity transactions .................................... -- -- 8,967
------------- ---------- ------------
Net increase (decrease) in net assets resulting from
unit transactions .......................................... (9,716,737) 667,979 21,681,151
------------- ---------- ------------
Total increase (decrease) in net assets . ................... (6,625,242) 851,098 29,022,536
Net assets:
Beginning of period ......................................... 81,543,603 3,827,674 36,282,953
------------- ---------- ------------
End of period . ............................................. $ 74,918,361 $4,678,772 $ 65,305,489
============= ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------10---------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value-Added American Global
Utilities Dividend Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- ----------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 254,097 $ 1,220,810 $ (139,214) $ (291,044) $ (1,178,944) $ 66,040
657,872 23,297,871 1,970,707 1,177,870 22,283,610 368,656
2,708 (10,932) 1,334 4,136 (24,093) 37,562
4,720,360 38,524,925 11,023,834 2,927,518 21,504,795 10,884,136
------------ ------------- ------------ ------------ ------------ ------------
5,635,037 63,032,674 12,856,661 3,818,480 42,585,368 11,356,394
------------ ------------- ------------ ------------ ------------ ------------
5,040,193 38,935,313 7,968,944 3,890,152 17,446,132 5,406,875
3,304,048 28,716,415 4,912,993 1,797,456 12,808,520 4,792,932
(1,979,221) (14,426,144) (2,973,597) (1,204,280) (6,916,171) (3,056,804)
(1,450) 268,064 (5,613) (1,248) (4,502) (271)
------------ ------------- ------------ ------------ ------------ ------------
6,363,570 53,493,648 9,902,727 4,482,080 23,333,979 7,142,732
------------ ------------- ------------ ------------ ------------ ------------
11,998,607 116,526,322 22,759,388 8,300,560 65,919,347 18,499,126
48,270,279 464,356,446 120,442,693 36,632,642 208,873,783 89,578,892
------------ ------------- ------------ ------------ ------------ ------------
$ 60,268,886 $ 580,882,768 $143,202,081 $ 44,933,202 $274,793,130 $108,078,018
============ ============= ============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Utilities Dividend Growth Value-Added Growth American Global Equity
Portfolio Portfolio Market Portfolio Portfolio Value Portfolio Value Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- ----------------- ------------------ --------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
$ 567,984 $ 2,299,595 $ 28,854 $ (332,587) $ (1,697,234) $ (412,774)
134,400 12,570,055 189,721 117,643 3,034,595 115,160
7,972 (17,569) 30,754 (18,550) (68,035) 36,445
8,330,451 57,370,303 19,452,060 5,016,132 39,904,216 4,176,748
------------ ------------- ------------ ------------ ------------ ------------
9,040,807 72,222,384 19,701,389 4,782,638 41,173,542 3,915,579
------------ ------------- ------------ ------------ ------------ ------------
8,183,839 132,652,810 27,666,361 12,427,733 45,122,601 27,675,147
175,689 35,404,176 11,734,255 3,567,836 17,691,903 8,014,517
(3,224,364) (16,271,820) (3,984,638) (1,013,872) (6,922,611) (3,499,654)
9,844 3,406 1,734 6,199 (6,552) (252)
------------ ------------- ------------ ------------ ------------ ------------
5,145,008 151,788,572 35,417,712 14,987,896 55,885,341 32,189,758
------------ ------------- ------------ ------------ ------------ ------------
14,185,815 224,010,956 55,119,101 19,770,534 97,058,883 36,105,337
34,084,464 240,345,490 65,323,592 16,862,108 111,814,900 53,473,555
------------ ------------- ------------ ------------ ------------ ------------
$ 48,270,279 $ 464,356,446 $120,442,693 $ 36,632,642 $208,873,783 $ 89,578,892
============ ============= ============ ============ ============ ============
</TABLE>
- ---------------------------------------11--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging Diversified Mid-Cap
Growth Markets Income Growth
Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Net investment income (loss) . .............................. $ (498,156) $ (10,253) $ 1,888,723 $ (73,402)
Capital gains income . ...................................... 110,206 44,837 85,594 198,842
Net realized gain (loss) on security transactions . ......... 74,404 (377,841) 1,625 6,047
Net unrealized appreciation (depreciation) of
investments during the period .............................. 6,874,911 (3,825,923) (598,612) 1,569,264
------------ ------------ ------------ -----------
Net increase (decrease) in net assets resulting from
operations ................................................. 6,561,365 (4,169,180) 1,377,330 1,700,751
------------ ------------ ------------ -----------
Unit transactions:
Purchases ................................................... 3,250,336 592,932 5,258,376 3,645,279
Net transfers ............................................... (1,777,900) (1,854,241) 8,378,783 2,602,957
Surrenders .................................................. (2,588,267) (688,845) (3,142,670) (476,488)
Net annuity transactions .................................... (2,107) (2,061) 9,123 --
------------ ------------ ------------ -----------
Net increase (decrease) in net assets resulting from
unit transactions .......................................... (1,117,938) (1,952,215) 10,503,612 5,771,748
------------ ------------ ------------ -----------
Total increase (decrease) in net assets . ................... 5,443,427 (6,121,395) 11,880,942 7,472,499
Net assets:
Beginning of period ......................................... 75,648,707 21,816,258 55,108,410 17,202,415
------------ ------------ ------------ -----------
End of period . ............................................. $ 81,092,134 $ 15,694,863 $ 66,989,352 $24,674,914
============ ============ ============ ===========
</TABLE>
*From inception, April 1, 1998 to June 30, 1998.
- --------------------------------------------------------------------------------
Hartford Life and Annuity Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing
Growth Portfolio
Sub-Account
------------------
<S> <C>
Net investment income (loss) . .............................. $ (784,298)
Capital gains income . ...................................... --
Net realized gain (loss) on security transactions . ......... (5,287)
Net unrealized appreciation (depreciation) of
investments during the period .............................. 8,288,212
------------
Net increase (decrease) in net assets resulting from
operations ................................................. 7,498,627
------------
Unit transactions:
Purchases ................................................... 13,609,919
Net transfers ............................................... 1,398,815
Surrenders .................................................. (3,560,130)
Net annuity transactions .................................... (3,225)
------------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 11,445,379
------------
Total increase (decrease) in net assets . ................... 18,944,006
Net assets:
Beginning of period ......................................... 56,704,701
------------
End of period . ............................................. $ 75,648,707
============
<CAPTION>
Mid-Cap**
Emerging Diversified Growth
Markets Portfolio Income Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------------- ------------------ --------------
<S> <C> <C> <C>
Net investment income (loss) . .............................. $ (214,476) $ 2,714,644 $ 10,736
Capital gains income . ...................................... -- 85,168 --
Net realized gain (loss) on security transactions . ......... (289,528) (5,596) (7,656)
Net unrealized appreciation (depreciation) of
investments during the period .............................. (422,890) 109,953 1,380,848
------------ ------------ -----------
Net increase (decrease) in net assets resulting from
operations ................................................. (926,894) 2,904,169 1,383,928
------------ ------------ -----------
Unit transactions:
Purchases ................................................... 7,234,504 20,848,788 9,195,939
Net transfers ............................................... 665,359 4,855,360 6,858,060
Surrenders .................................................. (1,087,778) (3,059,195) (235,512)
Net annuity transactions .................................... 3,713 12,363 --
------------ ------------ -----------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 6,815,798 22,657,316 15,818,487
------------ ------------ -----------
Total increase (decrease) in net assets . ................... 5,888,904 25,561,485 17,202,415
Net assets:
Beginning of period ......................................... 15,927,354 29,546,925 --
------------ ------------ -----------
End of period . ............................................. $ 21,816,258 $ 55,108,410 $17,202,415
============ ============ ===========
</TABLE>
**From inception, January 21, 1997 to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------12---------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley* Morgan Stanley* Morgan Stanley* Van Kempen* Van Kempen*
High Yield MidCap Emerging Markets Strategic Stock Enterprise
Portfolio Portfolio Debt Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------- ----------------- ------------------ ----------------- -------------
<S> <C> <C> <C> <C>
$ (6,738) $ (3,333) $ (222) $ (1,608) $ (1,332)
-- -- -- -- --
-- 267 49 50 (29)
6,707 (18,298) (6,244) (17,079) 20,807
---------- ---------- -------- --------- --------
(31) (21,364) (6,417) (18,637) 19,446
---------- ---------- -------- --------- --------
1,051,190 1,221,591 57,519 662,054 517,775
2,744,768 925,595 66,279 368,701 391,919
(11,170) (5,602) (77) (83,131) (1,804)
-- -- -- -- --
---------- ---------- -------- --------- --------
3,784,788 2,141,584 123,721 947,624 907,890
---------- ---------- -------- --------- --------
3,784,757 2,120,220 117,304 928,987 927,336
-- -- -- -- --
---------- ---------- -------- --------- --------
$3,784,757 $2,120,220 $117,304 $ 928,987 $927,336
========== ========== ======== ========= ========
</TABLE>
- ---------------------------------------13--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life & Annuity Insurance Company
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account Three (the Account) is a separate investment account
within 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, 1998.
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.
- ---------------------------------------14--------------------------------------
<PAGE>
Select Dimensions
[picture of a deer]
Hartford Life and Annuity
Insurance Company
Separate Account Five
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ---------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Portfolio
Shares 1,221,572
Cost $1,221,572
Market Value ............................................................ $ 1,221,572 -- --
North American Government Securities Portfolio
Shares 105
Cost $1,052
Market Value ............................................................ -- $ 1,065 --
Balanced Growth Portfolio
Shares 11,858
Cost $175,835
Market Value ............................................................ -- -- $ 191,033
Utilities Portfolio
Shares 1,871
Cost $30,985
Market Value ............................................................ -- -- --
Dividend and Growth Portfolio
Shares 117,726
Cost $2,340,311
Market Value ............................................................ -- -- --
Value-Added Market Portfolio
Shares 11,856
Cost $209,533
Market Value ............................................................ -- -- --
Growth Portfolio
Shares 8,862
Cost $146,424
Market Value ............................................................ -- -- --
American Value Portfolio
Shares 41,689
Cost $813,251
Market Value ............................................................ -- -- --
Global Equity Value Portfolio
Shares 47,743
Cost $628,391
Market Value ............................................................ -- -- --
Developing Growth Portfolio
Shares 15,193
Cost $293,437
Market Value ............................................................ -- -- --
Due from Hartford Life and Annuity Insurance Company ..................... 190,308 -- --
Receivable from fund shares sold ......................................... -- -- --
----------- ----------- -----------
Total Assets ............................................................. 1,411,880 1,065 191,033
----------- ----------- -----------
Liabilities:
Due to Hartford Life and Annuity Insurance Company . ..................... -- -- --
Payable for fund shares purchased ........................................ 190,283 -- --
----------- ----------- -----------
Total Liabilities . ...................................................... 190,283 -- --
----------- ----------- -----------
Net Assets (variable annuity contract liabilities) ....................... $ 1,221,597 $ 1,065 $ 191,033
=========== =========== ===========
Deferred annuity contracts in the accumulation period:
Group Sub-Accounts:
Units Owned by Participants . ............................................ 1,153,736 100 15,387
Unit Values .............................................................. $ 1.058819 $ 10.654800 $ 12.415289
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------16--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- --------------- --------------- --------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
$ 32,383 -- -- -- -- -- --
-- $ 2,492,268 -- -- -- -- --
-- -- $ 226,813 -- -- -- --
-- -- -- $ 157,840 -- -- --
-- -- -- -- $ 896,314 -- --
-- -- -- -- -- $ 694,661 --
-- -- -- -- -- -- $ 317,998
-- 1 -- 1 -- -- --
-- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
32,383 2,492,269 226,813 157,841 896,314 694,661 317,998
----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- 2 -- 1 4 1
-- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- 2 -- 1 4 1
----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 32,383 $ 2,492,269 $ 226,811 $ 157,841 $ 896,313 $ 694,657 $ 317,997
=========== =========== =========== =========== =========== =========== ===========
2,350 196,123 17,622 12,427 59,118 61,173 24,129
$ 13.781544 $ 12.707670 $ 12.871221 $ 12.701200 $ 15.161493 $ 11.355579 $ 13.178795
</TABLE>
- ---------------------------------------17-------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- --------------- ---------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Emerging Market Portfolio
Shares 3,707
Cost $42,442
Market Value ......................................................... $ 33,180 -- --
Diversified Income Portfolio
Shares 48,680
Cost $500,666
Market Value ......................................................... -- $ 496,045 --
Mid-Cap Growth Portfolio
Shares 17,690
Cost $198,320
Market Value ......................................................... -- -- $ 217,937
Morgan Stanley High Yield Portfolio
Shares 91
Cost $1,000
Market Value . ....................................................... -- -- --
Morgan Stanley MidCap Portfolio
Shares 65
Cost $1,000
Market Value ......................................................... -- -- --
Morgan Stanley Emerging Markets Debt Fund
Shares 98
Cost $1,000
Market Value ......................................................... -- -- --
Van Kempen Strategic Stock Fund
Shares 87
Cost $1,000
Market Value ......................................................... -- -- --
Van Kempen Enterprise Fund
Shares 47
Cost $1,000
Market Value ......................................................... -- -- --
Due from Hartford Life and Annuity Insurance Company .................. -- -- --
Receivable from fund shares sold ...................................... -- -- --
---------- ----------- -----------
Total Assets .......................................................... 33,180 496,045 217,937
---------- ----------- -----------
Liabilities:
Due to Hartford Life and Annuity Insurance Company . .................. -- 1 --
Payable for fund shares purchased ..................................... -- -- --
---------- ----------- -----------
Total Liabilities . ................................................... -- 1 --
---------- ----------- -----------
Net Assets (variable annuity contract liabilities) .................... $ 33,180 $ 496,044 $ 217,937
========== =========== ===========
Deferred annuity contracts in the accumulation period:
Group Sub-Accounts:
Units Owned by Contractholders . ...................................... 4,477 45,251 16,813
Unit Values ........................................................... $ 7.412100 $ 10.962161 $ 12.962385
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ----------------------------------------18-------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley
Morgan Stanley Morgan Stanley Emerging Van Kempen Van Kempen
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------- ---------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C>
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
$ 997 -- -- -- --
-- $ 950 -- -- --
-- -- $ 911 -- --
-- -- -- $ 974 --
-- -- -- -- $ 997
-- -- -- -- --
-- -- -- -- --
---------- ---------- ---------- ---------- ----------
997 950 911 974 997
---------- ---------- ---------- ---------- ----------
-- -- -- -- --
-- -- -- -- --
---------- ---------- ---------- ---------- ----------
-- -- -- -- --
---------- ---------- ---------- ---------- ----------
$ 997 $ 950 $ 911 $ 974 $ 997
========== ========== ========== ========== ==========
100 100 100 100 100
$ 9.972900 $ 9.502900 $ 9.108686 $ 9.740300 $ 9.971600
</TABLE>
- ---------------------------------------19--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ................................................. $27,079 $22 $ 2,246
------- --- -------
Net investment income (loss) ............................. 27,079 22 2,246
------- --- -------
Capital gains income ....................................... -- -- 4,004
------- --- -------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... -- -- 59
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 1 12,626
------- --- -------
Net gain (loss) on investments ........................... -- 1 12,685
------- --- -------
Net increase (decrease) in net assets resulting from
operations .............................................. $27,079 $23 $18,935
======= === =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------20--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 228 $ 19,583 $ 1,111 $ -- $ 1,612 $ 5,297 $ 150
----- -------- ------- ---------- -------- ------- -------
228 19,583 1,111 -- 1,612 5,297 150
----- -------- ------- ---------- -------- ------- -------
337 100,866 3,121 4,218 72,714 2,380 428
----- -------- ------- ---------- -------- ------- -------
(1) 1,365 8 1 38 (29) (7)
970 135,119 14,515 9,976 67,922 62,336 22,588
----- -------- ------- ---------- -------- ------- -------
969 136,484 14,523 9,977 67,960 62,307 22,581
----- -------- ------- ---------- -------- ------- -------
$1,534 $256,933 $18,755 $14,195 $142,286 $69,984 $23,159
====== ======== ======= ========== ======== ======= =======
</TABLE>
- ---------------------------------------21--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Operations--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ................................................. $ 250 $ 18,316 $ 653
------- -------- -------
Net investment income (loss) ............................. 250 18,316 653
------- -------- -------
Capital gains income ....................................... 93 659 1,772
------- -------- -------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... (4) 6 --
Net unrealized appreciation (depreciation) of
investments during the period ............................ (8,348) (4,601) 15,147
-------- -------- -------
Net gain (loss) on investments ........................... (8,352) (4,595) 15,147
-------- -------- -------
Net increase (decrease) in net assets resulting from
operations .............................................. $(8,009) $ 14,380 $17,572
======== ======== =======
</TABLE>
* From inception, April 1, 1998 to June 30, 1998.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------22--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $--
----- ----- ----- ----- ----
-- -- -- -- --
----- ----- ----- ----- ----
-- -- -- -- --
----- ----- ----- ----- ----
-- -- -- -- --
(3) (50) (89) (26) (3)
----- ----- ----- ----- ----
(3) (50) (89) (26) (3)
----- ----- ----- ----- ----
$ (3) $ (50) $ (89) $ (26) $(3)
====== ===== ===== ===== ====
</TABLE>
- ---------------------------------------23--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 27,079 $ 22 $ 2,246
Capital gains income ...................................... -- -- 4,004
Net realized gain (loss) on security transactions ......... -- -- 59
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 1 12,626
------------ ------ --------
Net increase (decrease) in net assets resulting from
operations ............................................... 27,079 23 18,935
------------ ------ --------
Unit transactions:
Purchases ................................................. 2,501,830 -- --
Net transfers ............................................. (1,388,357) -- 9,844
Surrenders ................................................ (15,043) -- (1,582)
Loan withdrawals .......................................... (693,822) -- (1,138)
Cost of insurance ......................................... (6,527) -- (653)
------------ ------ --------
Net increase (decrease) in net assets resulting from
unit transactions ........................................ 398,081 -- 6,471
------------ ------ --------
Total increase (decrease) in net assets . ................. 425,160 23 25,406
Net assets:
Beginning of period ....................................... 796,437 1,042 165,627
------------ ------ --------
End of period ............................................. $ 1,221,597 $1,065 $191,033
============ ====== ========
</TABLE>
- --------------------------------------------------------------------------------
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets
For the Period from Inception, May 20, 1997 to December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government
Money Market Securities Balanced
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 12,586 $ 30 $ 238
Capital gains income ...................................... -- -- 3
Net realized gain (loss) on security transactions ......... -- -- 2
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 12 2,572
------------ ------ --------
Net increase (decrease) in net assets resulting from
operations ............................................... 12,586 42 2,815
------------ ------ --------
Unit transactions:
Purchases ................................................. 5,462,868 1,000 1,000
Net transfers ............................................. (3,978,866) -- 162,221
Surrenders ................................................ (4,968) -- (294)
Loan withdrawals .......................................... (691,140) -- --
Cost of insurance ......................................... (4,043) -- (115)
------------ ------ --------
Net increase (decrease) in net assets resulting from
unit transactions ........................................ 783,851 1,000 162,812
------------ ------ --------
Total increase (decrease) in net assets . ................. 796,437 1,042 165,627
Net assets:
Beginning of period . ..................................... -- -- --
------------ ------ --------
End of period ............................................. $ 796,437 $1,042 $165,627
============ ====== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------24--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 228 $ 19,583 $ 1,111 $ -- $ 1,612 $ 5,297 $ 150
337 100,866 3,121 4,218 72,714 2,380 428
(1) 1,365 8 1 38 (29) (7)
970 135,119 14,515 9,976 67,922 62,336 22,588
-------- ---------- -------- --------- --------- -------- -------
1,534 256,933 18,755 14,195 142,286 69,984 23,159
-------- ---------- -------- --------- --------- -------- -------
-- -- -- -- -- -- --
24,415 847,302 78,965 24,643 82,049 124,447 89,355
(176) (20,784) (1,564) (1,297) (6,884) (5,392) (2,392)
-- (165,105) -- (3) (6) (1,151) (5)
(77) (9,047) (682) (567) (2,863) (2,392) (1,086)
-------- ---------- -------- --------- --------- -------- --------
24,162 652,366 76,719 22,776 72,296 115,512 85,872
-------- ---------- -------- --------- --------- -------- --------
25,696 909,299 95,474 36,971 214,582 185,496 109,031
6,687 1,582,970 131,337 120,870 681,731 509,161 208,966
-------- ---------- -------- --------- --------- -------- --------
$32,383 $2,492,269 $226,811 $ 157,841 $ 896,313 $694,657 $317,997
======== ========== ======== ========= ========= ======== ========
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- --------------- -------------- ---------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
$ 21 $ 3,650 $ 185 $ 32 $ 318 $ 257 $ 10
4 37 2 5 22 2 --
-- 4 (1) (3) 5 5 160
427 16,838 2,765 1,440 15,141 3,933 1,973
----- --------- --------- --------- --------- --------- ---------
452 20,529 2,951 1,474 15,486 4,197 2,143
----- --------- --------- --------- --------- --------- ---------
1,000 1,000 1,000 1,000 1,000 1,000 1,000
5,243 1,566,768 127,593 118,955 667,750 506,969 206,516
(3) (3,663) (101) (397) (1,813) (2,610) (526)
-- (2) -- (1) (2) (1) (1)
(5) (1,662) (106) (161) (690) (394) (166)
------ --------- --------- --------- --------- --------- ---------
6,235 1,562,441 128,386 119,396 666,245 504,964 206,823
------ ---------- --------- --------- --------- --------- ---------
6,687 1,582,970 131,337 120,870 681,731 509,161 208,966
-- -- -- -- -- -- --
------ ---------- -------- --------- --------- --------- ---------
$6,687 $1,582,970 $131,337 $120,870 $681,731 $509,161 $208,966
====== ========== ======== ========= ========= ========= =========
</TABLE>
- ---------------------------------------25--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- --------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 250 $ 18,316 $ 653
Capital gains income ...................................... 93 659 1,772
Net realized gain (loss) on security transactions ......... (4) 6 --
Net unrealized appreciation (depreciation) of
investments during the period ............................ (8,348) (4,601) 15,147
------- -------- --------
Net increase (decrease) in net assets resulting from
operations ............................................... (8,009) 14,380 17,572
------- -------- --------
Unit transactions:
Purchases ................................................. -- -- --
Net transfers ............................................. 4,642 33,945 68,755
Surrenders ................................................ (325) (4,292) (1,635)
Loan withdrawals .......................................... -- (1,085) (3)
Cost of insurance ......................................... (141) (1,891) (783)
------- -------- --------
Net increase (decrease) in net assets resulting from
unit transactions ........................................ 4,176 26,677 66,334
------- -------- --------
Total increase (decrease) in net assets . ................. (3,833) 41,057 83,906
Net assets:
Beginning of period . ..................................... 37,013 454,987 134,031
------- -------- --------
End of period ............................................. $33,180 $496,044 $217,937
======= ======== ========
</TABLE>
* From inception, April 1, 1998 to June 30, 1998.
- --------------------------------------------------------------------------------
Hartford Life & Annuity Insurance Company
Statement of Changes in Net Assets
For the Period from Inception, May 20, 1997 to December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap*
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) .............................. $ 3 $ 4,938 $ 76
Capital gains income ...................................... -- 2 --
Net realized gain (loss) on security transactions ......... (1) 15 --
Net unrealized appreciation (depreciation) of
investments during the period ............................ (914) (20) 4,470
------ -------- --------
Net increase (decrease) in net assets resulting
from operations .......................................... (912) 4,935 4,546
------ -------- --------
Unit transactions:
Purchases ................................................. 1,000 1,000 1,000
Net transfers ............................................. 37,031 451,162 128,658
Surrenders ................................................ (76) (1,494) (123)
Loan withdrawals .......................................... -- -- --
Cost of insurance ......................................... (30) (616) (50)
------ -------- --------
Net increase (decrease) in net assets resulting from
unit transactions ........................................ 37,925 450,052 129,485
------- -------- --------
Total increase (decrease) in net assets . ................. 37,013 454,987 134,031
Net assets:
Beginning of period . ...................................... -- -- --
------- -------- --------
End of period .............................................. $37,013 $454,987 $134,031
======= ======== ========
</TABLE>
* From inception, January 21, 1997 to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
- ----------------------------------------26-------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ --
-- -- -- -- --
-- -- -- -- --
(3) (50) (89) (26) (3)
----- ------ ------ ------- ------
(3) (50) (89) (26) (3)
----- ------ ------ ------- ------
1,000 1,000 1,000 1,000 1,000
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
----- ------ ------ ------- ------
1,000 1,000 1,000 1,000 1,000
----- ------ ------ ------- ------
997 950 911 974 997
-- -- -- -- --
----- ------ ------ ------- ------
$ 997 $ 950 $ 911 $ 974 $ 997
====== ====== ====== ======= ======
</TABLE>
- ---------------------------------------27--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life & Annuity Insurance Company
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account Five (the Account) is a separate investment account
within 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 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 Series Mutual Funds are valued at the closing net asset
value per share as determined by the appropriate Fund as of June 30,
1998.
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.
- ---------------------------------------28--------------------------------------
<PAGE>
Select Dimensions
[picture of a deer]
Hartford Life
Insurance Company
Separate Account Three
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ---------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Portfolio
Shares 6,693,080
Cost $6,693,080
Market Value . ........................................................ $ 6,693,080 -- --
North American Government Securities Portfolio
Shares 56,671
Cost $572,094
Market Value . ........................................................ -- $ 576,913 --
Balanced Growth Portfolio
Shares 613,004
Cost $8,635,618
Market Value . ........................................................ -- -- $ 9,875,497
Utilities Portfolio
Shares 225,056
Cost $3,142,405
Market Value . ........................................................ -- -- --
Dividend and Growth Portfolio
Shares 3,257,145
Cost $57,379,334
Market Value . ........................................................ -- -- --
Value-Added Market Portfolio
Shares 1,330,752
Cost $20,216,254
Market Value . ........................................................ -- -- --
Growth Portfolio
Shares 254,424
Cost $3,687,645
Market Value . ........................................................ -- -- --
American Value Portfolio ...............................................
Shares 1,358,706
Cost $22,790,494
Market Value . ........................................................ -- -- --
Global Equity Value Portfolio ..........................................
Shares 1,036,396
Cost $12,899,533
Market Value . ........................................................ -- -- --
Due from Hartford Life Insurance Company ............................... -- -- 15,180
Receivable from fund shares sold . ..................................... 20,265 9,526 --
----------- ----------- -----------
Total Assets ........................................................... 6,713,345 586,439 9,890,677
----------- ----------- -----------
Liabilities:
Due to Hartford Life Insurance Company . ............................... 20,257 9,527 --
Payable for fund shares purchased ...................................... -- -- 15,175
----------- ----------- -----------
Total Liabilities . .................................................... 20,257 9,527 15,175
----------- ----------- -----------
Net Assets (variable annuity contract liabilities) ..................... $ 6,693,088 $ 576,912 $ 9,875,502
=========== =========== ===========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants . .......................................... 581,042 50,183 566,884
Unit Values ............................................................ $ 11.519121 $ 11.496197 $ 17.420684
Annuity contracts in the annuity period:
Individual Sub-Accounts:
Units Owned by Participants . .......................................... -- -- --
Unit Values ............................................................ -- -- --
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------30--------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Dividend Value-Added American Global
Utilities Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- ---------------- ---------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$ 3,895,715 -- -- -- -- --
-- $ 68,953,762 -- -- -- --
-- -- $ 25,457,290 -- -- --
-- -- -- $ 4,531,284 -- --
-- -- -- -- $ 29,212,181 --
-- -- -- -- -- $ 15,079,565
7,642 36,606 13,212 9,962 38,949 17,614
-- -- -- -- -- --
----------- ------------ ------------ ----------- ------------ ------------
3,903,357 68,990,368 25,470,502 4,541,246 29,251,130 15,097,179
----------- ------------ ------------ ----------- ------------ ------------
-- -- -- -- -- --
7,112 35,537 13,264 10,002 38,889 17,608
----------- ------------ ------------ ----------- ------------ ------------
7,112 35,537 13,264 10,002 38,889 17,608
----------- ------------ ------------ ----------- ------------ ------------
$ 3,896,245 $ 68,954,831 $ 25,457,238 $ 4,531,244 $ 29,212,241 $ 15,079,571
=========== ============ ============ =========== ============ ============
207,214 2,897,854 1,269,000 248,548 1,228,115 1,017,891
$ 18.803031 $ 23.795140 $ 19.798976 $ 18.230887 $ 23.786242 $ 14.814524
-- -- 16,786 -- -- --
-- -- 19.798976 -- -- --
</TABLE>
- ---------------------------------------31--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Assets & Liabilities--(continued)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging Diversified
Growth Markets Income
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
--------------- --------------- ----------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Developing Growth Portfolio
Shares 356,108
Cost $5,881,947
Market Value .......................................................... $ 7,453,331 -- --
Emerging Market Portfolio
Shares 147,677
Cost $1,605,137
Market Value .......................................................... -- $ 1,321,712 --
Diversified Income Portfolio
Shares 1,006,827
Cost $10,302,277
Market Value . ........................................................ -- -- $ 10,259,567
Mid-Cap Growth Portfolio
Shares 227,702
Cost $2,499,982
Market Value .......................................................... -- -- --
Morgan Stanley High Yield Portfolio
Shares 14,091
Cost $154,843
Market Value .......................................................... -- -- --
Morgan Stanley MidCap Portfolio
Shares 3,738
Cost $54,580
Market Value .......................................................... -- -- --
Morgan Stanley Emerging Market Debt Fund
Shares 5,418
Cost $53,907
Market Value .......................................................... -- -- --
Van Kempen Strategic Stock Fund
Shares 8,998
Cost $101,857
Market Value .......................................................... -- -- --
Van Kempen Enterprise Fund
Shares 479
Cost $9,966
Market Value .......................................................... -- -- --
Due from Hartford Life Insurance Company ............................... -- -- 10,118
Receivable from fund shares sold ....................................... 6,733 37,890 --
----------- ----------- ------------
Total Assets ........................................................... 7,460,064 1,359,602 10,269,685
----------- ----------- ------------
Liabilities:
Due to Hartford Life Insurance Company ................................. 6,522 37,888 --
Payable for fund shares purchased ...................................... -- -- 10,120
----------- ----------- ------------
Total Liabilities ...................................................... 6,522 37,888 10,120
----------- ----------- ------------
Net Assets (variable annuity contract liabilities) ..................... $ 7,453,542 $ 1,321,714 $ 10,259,565
=========== =========== ============
Deferred annuity contracts in the accumulation period:
Group Sub-Accounts:
Units Owned by Participants . .......................................... 362,828 146,128 819,073
Unit Values ............................................................ $ 20.542889 $ 9.044886 $ 12.525831
Annuity contracts in the annuity period:
Individual Sub-Accounts:
Units Owned by Participants ............................................ -- -- --
Unit Values ............................................................ -- -- --
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------32--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley
Mid-Cap Morgan Stanley Morgan Stanley Emerging Van Kempen Van Kempen
Growth High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- ---------------- ---------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$ 2,805,294 -- -- -- -- --
-- $ 155,146 -- -- -- --
-- -- $ 54,312 -- -- --
-- -- -- $ 50,386 -- --
-- -- -- -- $ 101,232 --
-- -- -- -- -- $ 10,094
-- -- 669 -- 9,996 --
807 6 -- 2 -- --
----------- ---------- ---------- ---------- ---------- -----------
2,806,101 155,152 54,981 50,388 111,228 10,094
----------- ---------- ---------- ---------- ---------- -----------
807 6 -- 2 -- --
-- -- 669 -- 9,996 --
----------- ---------- ---------- ---------- ---------- -----------
807 6 669 2 9,996 --
----------- ---------- ---------- ---------- ---------- -----------
$ 2,805,294 $ 155,146 $ 54,312 $ 50,386 $ 101,232 $ 10,094
=========== ========== ========== ========== ========== ===========
225,752 15,540 5,668 5,518 10,366 1,000
$ 12.426420 $ 9.983667 $ 9.582861 $ 9.131023 $ 9.765936 $ 10.095090
-- -- -- -- -- --
-- -- -- -- -- --
</TABLE>
- ---------------------------------------33--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ............................................................... 180,741 10,534 92,080
Expenses:
Mortality and expense undertakings ...................................... (49,517) (3,508) (53,403)
--------- -------- ---------
Net investment income (loss) ............................................ 131,224 7,026 38,677
--------- -------- ---------
Capital gains income ..................................................... -- -- 182,182
--------- -------- ---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ....................... -- (76) 5
Net unrealized appreciation (depreciation) of investments during the
period ................................................................. -- 603 459,195
--------- -------- ---------
Net gain (loss) on investments ......................................... -- 527 459,200
--------- -------- ---------
Net increase (decrease) in net assets resulting from operations ........ $ 131,224 $ 7,553 $ 680,059
========= ======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------34--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global
Utilities Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
35,188 569,297 138,862 -- 49,958 118,739
(21,422) (429,420) (163,539) (28,092) (171,648) (95,140)
--------- ---------- ---------- --------- ---------- ----------
13,766 139,877 (24,677) (28,092) (121,690) 23,599
--------- ---------- ---------- --------- ---------- ----------
40,060 2,757,300 348,777 117,693 2,346,274 51,144
--------- ---------- ---------- --------- ---------- ----------
218 42 3,484 687 294 1,342
254,917 4,287,062 1,883,950 271,355 2,125,528 1,458,804
--------- ---------- ---------- --------- ---------- ----------
255,135 4,287,104 1,887,434 272,042 2,125,822 1,460,146
--------- ---------- ---------- --------- ---------- ----------
$ 308,961 $7,184,281 $2,211,534 $ 361,643 $4,350,406 $1,534,889
========= ========== ========== ========= ========== ==========
</TABLE>
- ---------------------------------------35--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Operations--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging Diversified
Growth Markets Income
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ............................................................... 4,657 10,833 320,041
Expenses:
Mortality and expense undertakings ...................................... (49,405) (11,636) (59,920)
--------- ---------- ---------
Net investment income (loss) ............................................ (44,748) (803) 260,121
--------- ---------- ---------
Capital gains income ..................................................... 9,991 3,882 13,039
--------- ---------- ---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ....................... 5,463 (58,471) 104
Net unrealized appreciation (depreciation) of investments during the
period ................................................................. 609,496 (317,694) (86,233)
--------- ---------- ---------
Net gain (loss) on investments ......................................... 614,959 (376,165) (86,129)
--------- ---------- ---------
Net increase (decrease) in net assets resulting from operations ........ $ 580,202 $ (373,086) $ 187,031
========= ========== =========
</TABLE>
*From inception, April 1, 1998 to June 30, 1998.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------36--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Mid-Cap Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
Growth High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
7,933 -- -- -- -- --
(16,017) (221) (95) (92) (102) (35)
--------- ------ -------- ------- ------ -----
(8,084) (221) (95) (92) (102) (35)
--------- ------ -------- ------- ------ -----
22,379 -- -- -- -- --
--------- ------ -------- ------- ------ -----
241 -- (643) (1) -- --
175,650 303 (268) (3,521) (625) 129
--------- ------ -------- ------- ------ -----
175,891 303 (911) (3,522) (625) 129
--------- ------ -------- ------- ------ -----
$ 190,186 $ 82 $ (1,006) $(3,614) $ (727) $ 94
========= ====== ======== ======= ====== =====
</TABLE>
- ---------------------------------------37---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................................ $ 131,224 $ 7,026 $ 38,677
Capital gains income .................................................... -- -- 182,182
Net realized gain (loss) on security transactions ....................... -- (76) 5
Net unrealized appreciation (depreciation) of
investments during the period .......................................... -- 603 459,195
------------ -------- ----------
Net increase (decrease) in net assets resulting from operations ......... 131,224 7,553 680,059
------------ -------- ----------
Unit transactions:
Purchases ............................................................... 732,160 168,221 1,661,712
Net transfers ........................................................... (1,934,247) (7,648) 1,857,297
Surrenders .............................................................. (544,575) (2,265) (170,040)
Net annuity transactions ................................................ -- -- --
------------ -------- ----------
Net increase (decrease) in net assets resulting from
unit transactions ...................................................... (1,746,662) 158,308 3,348,969
------------ -------- ----------
Total increase (decrease) in net assets ................................. (1,615,438) 165,861 4,029,028
Net assets:
Beginning of period ..................................................... 8,308,526 411,051 5,846,474
------------ -------- ----------
End of period ........................................................... $ 6,693,088 $576,912 $9,875,502
============ ======== ==========
</TABLE>
- --------------------------------------------------------------------------------
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government
Money Market Securities Balanced
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................................ $ 311,465 $ 12,978 $ 27,082
Capital gains income .................................................... -- -- 11,255
Net realized gain (loss) on security transactions ....................... -- 134 1
Net unrealized appreciation (depreciation) of
investments during the period .......................................... -- 3,756 532,164
------------ --------- ----------
Net increase (decrease) in net assets resulting from operations ......... 311,465 16,868 570,502
------------ --------- ----------
Unit transactions:
Purchases ............................................................... 10,986,034 80,522 2,480,988
Net transfers ........................................................... (7,694,766) (501) 773,542
Surrenders .............................................................. (752,612) (27,777) (584,850)
Net annuity transactions ................................................ -- -- --
------------ --------- ----------
Net increase (decrease) in net assets resulting from
unit transactions ...................................................... 2,538,656 52,244 2,669,680
------------ --------- ----------
Total increase (decrease) in net assets ................................. 2,850,121 69,112 3,240,182
Net assets:
Beginning of period ..................................................... 5,458,405 341,939 2,606,292
------------ --------- ----------
End of period ........................................................... $ 8,308,526 $ 411,051 $5,846,474
============ ========= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ----------------------------------------38--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global
Utilities Growth Market Growth Value Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- --------------- --------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
$ 13,766 $ 139,877 $ (24,677) $ (28,092) $ (121,690) $ 23,599
40,060 2,757,300 348,777 117,693 2,346,274 51,144
218 42 3,484 687 294 1,342
254,917 4,287,062 1,883,950 271,355 2,125,528 1,458,804
---------- ------------ ----------- ---------- ----------- -----------
308,961 7,184,281 2,211,534 361,643 4,350,406 1,534,889
---------- ------------ ----------- ---------- ----------- -----------
760,570 6,083,698 1,767,559 350,931 3,129,291 1,067,551
429,742 4,640,769 1,101,202 328,828 1,861,847 621,862
(74,797) (1,209,216) (302,661) (67,390) (519,332) (237,565)
-- -- (41,472) -- -- --
---------- ------------ ----------- ---------- ----------- -----------
1,115,515 9,515,251 2,524,628 612,369 4,471,806 1,451,848
---------- ------------ ----------- ---------- ----------- -----------
1,424,476 16,699,532 4,736,162 974,012 8,822,212 2,986,737
2,471,769 52,255,299 20,721,076 3,557,232 20,390,029 12,092,834
---------- ------------ ----------- ---------- ----------- -----------
$3,896,245 $ 68,954,831 $25,457,238 $4,531,244 $29,212,241 $15,079,571
========== ============ =========== ========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global
Utilities Growth Market Growth Value Equity Value
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- --------------- --------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 25,725 $ 207,230 $ 1,105 $ (28,598) $ (147,030) $ (51,246)
5,598 1,118,280 25,010 9,815 253,252 13,138
(1,072) 1,187 (250) (35) 25,705 (626)
385,952 5,104,874 2,624,687 423,579 3,404,201 --
---------- ------------ ----------- ---------- ----------- -----------
416,203 6,431,571 2,650,552 404,761 3,536,128 339,530
---------- ------------ ----------- ---------- ----------- -----------
787,145 25,298,127 8,641,262 1,171,717 7,393,097 5,772,577
(218,038) 5,093,960 1,738,699 745,942 1,198,780 1,004,060
(112,067) (2,369,968) (827,826) (124,197) (804,164) (784,786)
-- -- 341,474 -- -- --
---------- ------------ ----------- ---------- ----------- -----------
457,040 28,022,119 9,893,609 1,793,462 7,787,713 5,991,851
---------- ------------ ----------- ---------- ----------- -----------
873,243 34,453,690 12,544,161 2,198,223 11,323,841 6,331,381
1,598,526 17,801,609 8,176,915 1,359,009 9,066,188 5,761,453
---------- ------------ ----------- ---------- ----------- -----------
$2,471,769 $ 52,255,299 $20,721,076 $3,557,232 $20,390,029 $12,092,834
========== ============ =========== ========== =========== ===========
</TABLE>
- ---------------------------------------39---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Statement of Changes in Net Assets--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging
Growth Markets
Portfolio Portfolio
Sub-Account Sub-Account
------------- -------------
<S> <C> <C>
Operations:
Net investment income (loss) ............................................... $ (44,748) $ (803)
Capital gains income ....................................................... 9,991 3,882
Net realized gain (loss) on security transactions .......................... 5,463 (58,471)
Net unrealized appreciation (depreciation) of
investments during the period ............................................. 609,496 (317,694)
---------- ----------
Net increase (decrease) in net assets resulting from operations ............ 580,202 (373,086)
---------- ----------
Unit transactions:
Purchases .................................................................. 192,614 29,139
Net transfers .............................................................. 37,160 (245,263)
Surrenders ................................................................. (175,111) (52,317)
Net annuity transactions ................................................... -- --
---------- ----------
Net increase (decrease) in net assets resulting from unit transactions ..... 54,663 (268,441)
---------- ----------
Total increase (decrease) in net assets .................................... 634,865 (641,527)
Net assets:
Beginning of period ........................................................ 6,818,677 1,963,241
---------- ----------
End of period .............................................................. $7,453,542 $1,321,714
========== ==========
<CAPTION>
Diversified Mid-Cap
Income Growth
Portfolio Portfolio
Sub-Account Sub-Account
--------------- --------------
<S> <C> <C>
Operations:
Net investment income (loss) ............................................... $ 260,121 $ (8,084)
Capital gains income ....................................................... 13,039 22,379
Net realized gain (loss) on security transactions .......................... 104 241
Net unrealized appreciation (depreciation) of
investments during the period ............................................. (86,233) 175,650
----------- ----------
Net increase (decrease) in net assets resulting from operations ............ 187,031 190,186
----------- ----------
Unit transactions:
Purchases .................................................................. 906,474 382,050
Net transfers .............................................................. 2,691,671 480,488
Surrenders ................................................................. (215,675) (23,582)
Net annuity transactions ................................................... -- --
----------- ----------
Net increase (decrease) in net assets resulting from unit transactions ..... 3,382,470 838,956
----------- ----------
Total increase (decrease) in net assets .................................... 3,569,501 1,029,142
Net assets:
Beginning of period ........................................................ 6,690,064 1,776,152
----------- ----------
End of period .............................................................. $10,259,565 $2,805,294
=========== ==========
</TABLE>
* From inception April 1, 1998 to June 30, 1998.
- --------------------------------------------------------------------------------
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Developing Emerging
Growth Markets
Portfolio Portfolio
Sub-Account Sub-Account
------------- -------------
<S> <C> <C>
Operations:
Net investment income (loss) ............................................... $ (65,434) $ (17,516)
Capital gains income ....................................................... -- --
Net realized gain (loss) on security transactions .......................... (5,860) (14,073)
Net unrealized appreciation (depreciation) of
investments during the period ............................................. 665,187 (42,909)
---------- ----------
Net increase (decrease) in net assets resulting from operations ............ 593,893 (74,498)
---------- ----------
Unit transactions:
Purchases .................................................................. 2,012,667 809,422
Net transfers .............................................................. 36,985 6,465
Surrenders ................................................................. (235,174) (120,404)
Net annuity transactions ................................................... -- --
---------- ----------
Net increase (decrease) in net assets resulting from unit transactions ..... 1,814,478 695,483
---------- ----------
Total increase (decrease) in net assets .................................... 2,408,371 620,985
Net assets:
Beginning of period ........................................................ 4,410,306 1,342,256
---------- ----------
End of period .............................................................. $6,818,677 $1,963,241
========== ==========
<CAPTION>
Diversified Mid-Cap*
Income Growth
Portfolio Portfolio
Sub-Account Sub-Account
------------- --------------
<S> <C> <C>
Operations:
Net investment income (loss) ............................................... $ 270,857 $ 1,157
Capital gains income ....................................................... 7,785 --
Net realized gain (loss) on security transactions .......................... 153 1,041
Net unrealized appreciation (depreciation) of
investments during the period ............................................. 12,589 129,661
---------- ----------
Net increase (decrease) in net assets resulting from operations ............ 291,384 131,859
---------- ----------
Unit transactions:
Purchases .................................................................. 2,936,575 1,190,000
Net transfers .............................................................. 1,246,736 495,122
Surrenders ................................................................. (347,647) (40,829)
Net annuity transactions ................................................... -- --
---------- ----------
Net increase (decrease) in net assets resulting from unit transactions ..... 3,835,664 1,644,293
---------- ----------
Total increase (decrease) in net assets .................................... 4,127,048 1,776,152
Net assets:
Beginning of period ........................................................ 2,563,016 --
---------- ----------
End of period .............................................................. $6,690,064 $1,776,152
========== ==========
</TABLE>
*From inception, January 21, 1997 to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------40--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C>
$ (221) $ (95) $ (92) $ (102) $ (35)
-- -- -- -- --
-- (643) (1) -- --
303 (268) (3,521) (625) 129
-------- -------- ------- -------- -------
82 (1,006) (3,614) (727) 94
-------- -------- ------- -------- -------
153,056 36,387 54,000 62,572 10,000
2,052 18,764 -- 39,387 --
(44) 167 -- -- --
-- -- -- -- --
-------- -------- ------- -------- -------
155,064 55,318 54,000 101,959 10,000
-------- -------- ------- -------- -------
155,146 54,312 50,386 101,232 10,094
-- -- -- -- --
-------- -------- ------- -------- -------
$155,146 $ 54,312 $50,386 $101,232 $10,094
======== ======== ======= ======== =======
</TABLE>
- ---------------------------------------41--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Three
Hartford Life Insurance Company
Notes to Financial Statements
June 30, 1998 (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 fund (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, 1998.
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.
- ---------------------------------------42--------------------------------------
<PAGE>
Select Dimensions
[picture of a deer]
Hartford Life
Insurance Company
Separate Account Five
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ---------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Money Market Portfolio
Shares 22,661
Cost $22,661
Market Value .................................................... $ 22,661 -- --
North American Government Securities Portfolio
Shares 105
Cost $1,052
Market Value .................................................... -- $ 1,065 --
Balanced Growth Portfolio
Shares 254
Cost $3,613
Market Value .................................................... -- -- $ 4,089
Utilities Portfolio
Shares 1,418
Cost $23,961
Market Value .................................................... -- -- --
Dividend and Growth Portfolio
Shares 4,992
Cost $97,618
Market Value .................................................... -- -- --
Value-Added Market Portfolio
Shares 1,244
Cost $23,982
Market Value .................................................... -- -- --
Growth Portfolio
Shares 71
Cost $1,040
Market Value .................................................... -- -- --
American Value Portfolio
Shares 738
Cost $13,088
Market Value .................................................... -- -- --
Global Equity Value Portfolio
Shares 1,901
Cost $25,693
Market Value .................................................... -- -- --
Developing Growth Portfolio
Shares 2,062
Cost $39,515
Market Value .................................................... -- -- --
Due from Hartford Life Insurance Company ......................... -- -- --
Receivable from fund shares sold ................................. -- -- --
---------- ----------- -----------
Total Assets ..................................................... 22,661 1,065 4,089
---------- ----------- -----------
Liabilities:
Due to Hartford Life Insurance Company . ......................... -- -- --
Payable for fund shares purchased ................................ -- -- --
---------- ----------- -----------
Total Liabilities . .............................................. -- -- --
---------- ----------- -----------
Net Assets (variable life contract liabilities) .................. $ 22,661 $ 1,065 $ 4,089
========== =========== ===========
Variable life contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ...................................... 21,403 100 329
Unit Values ...................................................... $ 1.058819 $ 10.654800 $ 12.415289
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------44---------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- --------------- --------------- --------------- --------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
$ 24,545 -- -- -- -- -- --
-- $ 105,684 -- -- -- -- --
-- -- $ 23,806 -- -- -- --
-- -- -- $ 1,271 -- -- --
-- -- -- -- $ 15,874 -- --
-- -- -- -- -- $ 27,659 --
-- -- -- -- -- -- $ 43,152
-- -- -- -- -- -- --
-- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
24,545 105,684 23,806 1,271 15,874 27,659 43,152
----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- -- --
-- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 24,545 $ 105,684 $ 23,806 $ 1,271 $ 15,874 $ 27,659 $ 43,152
=========== =========== =========== =========== =========== =========== ===========
1,781 8,316 1,850 100 1,047 2,436 3,274
$ 13.781544 $ 12.707670 $ 12.871221 $ 12.701200 $ 15.161493 $ 11.355579 $ 13.178795
</TABLE>
- ---------------------------------------45--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Assets & Liabilities--(continued)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- --------------- ---------------
<S> <C> <C> <C>
Assets:
Investments in Dean Witter Select Dimensions Investment Series:
Emerging Market Portfolio
Shares 83
Cost $1,011
Market Value .................................................. $ 741 -- --
Diversified Income Portfolio
Shares 3,111
Cost $31,774
Market Value . ................................................ -- $ 31,703 --
Mid-Cap Growth Portfolio
Shares 520
Cost $5,514
Market Value .................................................. -- -- $ 6,401
Morgan Stanley High Yield Portfolio
Shares 91
Cost $1,000
Market Value .................................................. -- -- --
Morgan Stanley MidCap Portfolio
Shares 65
Cost $1,000
Market Value .................................................. -- -- --
Morgan Stanley Emerging Markets Debt Fund
Shares 2,156
Cost $21,168
Market Value . ................................................ -- -- --
Van Kempen Strategic Stock Fund
Shares 87
Cost $1,000
Market Value .................................................. -- -- --
Van Kempen Enterprise Fund
Shares 47
Cost $1,000
Market Value .................................................. -- -- --
Due from Hartford Life Insurance Company ....................... -- -- --
Receivable from fund shares sold . ............................. -- -- --
---------- ----------- -----------
Total Assets ................................................... 741 31,703 6,401
---------- ----------- -----------
Liabilities:
Due to Hartford Life Insurance Company . ....................... -- -- --
Payable for fund shares purchased .............................. -- -- --
---------- ----------- -----------
Total Liabilities . ............................................. -- -- --
---------- ----------- -----------
Net Assets (variable life contract liabilities) ................. $ 741 $ 31,703 $ 6,401
========== =========== ===========
Variable life contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants . .................................. 100 2,892 494
Unit Values .................................................... $ 7.412100 $ 10.962161 $ 12.962385
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ----------------------------------------46--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley
Morgan Stanley Morgan Stanley Emerging Van Kempen Van Kempen
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------- ---------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C>
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
$ 997 -- -- -- --
-- $ 950 -- -- --
-- -- $ 20,050 -- --
-- -- -- $ 974 --
-- -- -- -- $ 997
-- -- -- -- --
-- -- -- -- --
--------- --------- --------- --------- ---------
997 950 20,050 974 997
--------- --------- --------- --------- ---------
-- -- -- -- --
-- -- -- -- --
--------- --------- --------- --------- ---------
-- -- -- -- --
--------- --------- --------- --------- ---------
$ 997 $ 950 $ 20,050 $ 974 $ 997
========= ========= ========= ========= =========
100 100 2,201 100 100
$9.972900 $9.502900 $9.108686 $9.740300 $9.971600
</TABLE>
- ---------------------------------------47--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Operations
or the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American Balanced
Money Market Gov't. Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- ------------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ................................................. $1,111 $22 $ 48
------ --- ----
Net investment income (loss) . ........................... 1,111 22 48
------ --- ----
Capital gains income ....................................... -- -- 86
------ --- ----
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... -- -- --
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 1 268
------ --- ----
Net gain (loss) on investments ........................... -- 1 268
------ --- ----
Net increase (decrease) in net assets resulting from
operations .............................................. $1,111 $23 $402
====== === ====
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------48--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 64 $ 962 $ 36 $ -- $ 79 $ 271 $ 14
---- ------- ------ ---- ------ ------ ------
64 962 36 -- 79 271 14
---- ------- ------ ---- ------ ------ ------
273 4,319 331 34 1,308 96 58
---- ------- ------ ---- ------ ------ ------
1 4,793 1 -- 5,360 5,139 12
375 4,346 (322) 88 104 2,179 2,091
---- ------- ------ ---- ------ ------ ------
376 9,139 (321) 88 5,464 7,318 2,103
---- ------- ------ ---- ------ ------ ------
$713 $14,420 $ 46 $122 $6,851 $7,685 $2,175
==== ======= ====== ==== ====== ====== ======
</TABLE>
- ---------------------------------------49--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Operations--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Investment income:
Dividends ................................................. $ 6 $ 482 $ 23
-------- ------ ----
Net investment income (loss) . ........................... 6 482 23
-------- ------ ----
Capital gains income 2 42 53
-------- ------ ----
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... (1,107) -- 4
Net unrealized appreciation (depreciation) of
investments during the period ............................ (195) (131) 476
-------- ------ ----
Net gain (loss) on investments ........................... (1,302) (131) 480
-------- ------ ----
Net increase (decrease) in net assets resulting from
operations .............................................. $ (1,294) $ 393 $556
======== ====== ====
</TABLE>
* From inception, April 1, 1998 to June 30, 1998.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------50--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C>
$-- $ -- $ -- $ -- $ --
---- ---- ------- ----- ---
-- -- -- -- --
---- ---- ------- ----- ---
-- -- -- -- --
---- ---- ------- ----- ---
-- -- -- -- --
(3) (50) (1,118) (26) (3)
---- ---- ------- ----- ---
(3) (50) (1,118) (26) (3)
---- ---- ------- ----- ---
$ (3) $(50) $(1,118) $ (26) $(3)
==== ==== ======= ===== ===
</TABLE>
- ---------------------------------------51--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ....................................... $ 1,111 $ 22 $ 48
Capital gains income ............................................... -- -- 86
Net realized gain (loss) on security transactions .................. -- -- --
Net unrealized appreciation (depreciation) of
investments during the period ..................................... -- 1 268
---------- ------ ------
Net increase (decrease) in net assets resulting from
operations ........................................................ 1,111 23 402
---------- ------ ------
Unit transactions:
Purchases .......................................................... 133,274 -- --
Net transfers ...................................................... (23,277) -- --
Surrenders ......................................................... (110,612) -- (27)
Loan withdrawals ................................................... -- -- --
Cost of insurance .................................................. (202) -- (9)
---------- ------ -----
Net increase (decrease) in net assets resulting from unit
transactions ...................................................... (817) -- (36)
---------- ------ ------
Total increase (decrease) in net assets . .......................... 294 23 366
Net assets:
Beginning of period . .............................................. 22,367 1,042 3,723
---------- ------ ------
End of period ...................................................... $ 22,661 $1,065 $4,089
========== ====== ======
</TABLE>
- --------------------------------------------------------------------------------
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Period from Inception, May 20, 1997 to December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Government Balanced
Money Market Securities Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
-------------- --------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................. $ 950 $ 30 $ 17
Capital gains income ..................................... -- -- 3
Net realized gain(loss) on security transactions ......... -- -- --
Net unrealized appreciation (depreciation) of
investments during the period ........................... -- 12 208
--------- ------ ------
Net increase (decrease) in net assets resulting from
operations .............................................. 950 42 228
--------- ------ ------
Unit transactions:
Purchases ................................................ 259,950 1,000 1,000
Net transfers ............................................ (237,803) -- 2,500
Surrenders ............................................... (491) -- (4)
Loan withdrawals ......................................... -- -- --
Cost of insurance ........................................ (239) -- (1)
--------- ------ ------
Net increase (decrease) in net assets resulting from
unit transactions ....................................... 21,417 1,000 3,495
--------- ------ ------
Total increase (decrease) in net assets . ................ 22,367 1,042 3,723
Net assets:
Beginning of period ...................................... -- -- --
--------- ------ ------
End of period ............................................ $ 22,367 $1,042 $3,723
========= ====== ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------52--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 64 $ 962 $ 36 $ -- $ 79 $ 271 $ 14
273 4,319 331 34 1,308 96 58
1 4,793 1 -- 5,360 5,139 12
375 4,346 (322) 88 104 2,179 2,091
------- --------- ------- ------ --------- --------- -------
713 14,420 46 122 6,851 7,685 2,175
------- --------- ------- ------ --------- --------- -------
-- -- -- -- -- -- --
22,644 (13,484) 22,646 -- (36,520) (37,286) 21,316
(32) (2,558) (32) -- (1,955) (2,083) (196)
-- 1,673 -- -- 1,673 1,723 --
(12) (325) (12) -- (100) (142) (75)
------- --------- ------- ------ --------- --------- -------
22,600 (14,694) 22,602 -- (36,902) (37,788) 21,045
------- --------- ------- ------ --------- --------- -------
23,313 (274) 22,648 122 (30,051) 30,103 23,220
1,232 105,958 1,158 1,149 45,925 57,762 19,932
------- --------- ------- ------ --------- --------- -------
$24,545 $ 105,684 $23,806 $1,271 $ 15,874 $ 27,659 $43,152
======= ========= ======= ====== ========= ========= =======
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Dividend Value-Added American Global Developing
Utilities and Growth Market Growth Value Equity Value Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------- ------------- ------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 18 $ 729 $ 10 $ 1 $ 33 $ 111 $ 7
4 37 2 5 22 2 --
-- 49 -- -- 64 58 8
210 3,719 146 143 2,682 (214) 1,546
------ -------- ------ ------ -------- -------- -------
232 4,534 158 149 2,801 (43) 1,561
------ -------- ------ ------ -------- -------- -------
1,000 1,000 1,000 1,000 1,000 1,000 1,000
-- 102,911 -- -- 43,968 58,859 17,580
-- (607) -- -- (138) (256) (151)
-- (1,647) -- -- (1,653) (1,700) --
-- (233) -- -- (53) (98) (58)
------ -------- ------ ------ -------- -------- -------
1,000 101,424 1,000 1,000 43,124 57,805 18,371
------ -------- ------ ------ -------- -------- -------
1,232 105,958 1,158 1,149 45,925 57,762 19,932
-- -- -- -- -- -- --
------ -------- ------ ------ -------- -------- -------
$1,232 $105,958 $1,158 $1,149 $ 45,925 $ 57,762 $19,932
====== ======== ====== ====== ======== ======== =======
</TABLE>
- ----------------------------------------53--------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Statement of Changes in Net Assets--(continued)
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................................... $ 6 $ 482 $ 23
Capital gains income ....................................................... 2 42 53
Net realized gain (loss) on security transactions .......................... (1,107) -- 4
Net unrealized appreciation (depreciation) of investments during the
period .................................................................... (195) (131) 476
-------- ------- ------
Net increase (decrease) in net assets resulting from operations ............ (1,294) 393 556
-------- ------- ------
Unit transactions:
Purchases .................................................................. -- -- --
Net transfers .............................................................. 1,107 22,648 --
Surrenders ................................................................. -- (107) (45)
Loan withdrawals ........................................................... -- -- --
Cost of insurance .......................................................... -- (38) (16)
-------- ------- ------
Net increase (decrease) in net assets resulting from unit transactions ..... 1,107 22,503 (61)
-------- ------- ------
Total increase (decrease) in net assets .................................... (187) 22,896 495
Net assets:
Beginning of period ........................................................ 928 8,807 5,906
-------- ------- ------
End of period .............................................................. $ 741 $31,703 $6,401
======== ======= ======
</TABLE>
*From inception, April 1, 1998 to June 30, 1998.
- --------------------------------------------------------------------------------
Hartford Life Insurance Company
Statement of Changes in Net Assets
For the Period from Inception, May 20, 1997 to December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Diversified Mid-Cap*
Markets Income Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
------------- ------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................................... $ 3 $ 348 $ 23
Capital gains income ....................................................... -- 2 --
Net realized gain (loss) on security transactions .......................... -- -- --
Net unrealized appreciation (depreciation) of investments during the
period .................................................................... (75) 59 411
------ ------ ------
Net increase (decrease) in net assets resulting from operations ............ (72) 409 434
------ ------ -----
Unit transactions:
Purchases .................................................................. 1,000 1,000 1,000
Net transfers .............................................................. -- 7,487 4,498
Surrenders ................................................................. -- -- --
Loan withdrawals ........................................................... -- (66) (19)
Cost of insurance .......................................................... -- (23) (7)
------ ------ ------
Net increase (decrease) in net assets resulting from unit transactions ..... 1,000 8,398 5,472
------ ------ ------
Total increase (decrease) in net assets . .................................. 928 8,807 5,906
Net assets:
Beginning of period . ...................................................... -- -- --
------ ------ ------
End of period .............................................................. $ 928 $8,807 $5,906
====== ====== ======
</TABLE>
*From inception, January, 21, 1997 to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
- ---------------------------------------54--------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Morgan Stanley*
Morgan Stanley* Morgan Stanley* Emerging Van Kempen* Van Kempen*
High Yield MidCap Markets Debt Strategic Stock Enterprise
Portfolio Portfolio Fund Fund Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ----------------- ----------------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ --
-- -- -- -- --
-- -- -- -- --
(3) (50) (1,118) (26) (3)
------ -------- ------- ------- --------
(3) (50) (1,118) (26) (3)
------ -------- ------- ------- --------
1,000 1,000 1,000 1,000 1,000
-- -- 20,208 -- --
-- -- (29) -- --
-- -- -- -- --
-- -- (11) -- --
------ -------- ------- ------- --------
1,000 1,000 21,168 1,000 1,000
------ -------- ------- ------- --------
997 950 20,050 974 997
-- -- -- -- --
------ -------- ------- ------- --------
$ 997 $ 950 $20,050 $ 974 $ 997
====== ======== ======= ======= ========
</TABLE>
- --------------------------------------------------------------------------------
- ---------------------------------------55---------------------------------------
<PAGE>
Dean Witter Select Dimensions Separate Account Five
Hartford Life Insurance Company
Notes to Financial Statements
June 30, 1998 (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, 1998.
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.
- ---------------------------------------56---------------------------------------
<PAGE>
<PAGE>
Hartford Life
P.O. Box 2999
Hartford, CT 06104-2999
Principal Underwriter for the Separate Accounts:
Hartford Equity Sales Company, Inc. (HESCO)
200 Hopmeadow Street
Simsbury, CT 06089
Hartford Securities Distribution Company, Inc. (HSD)
200 Hopmeadow Street
Simsbury, CT 06089
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BULK RATE
U.S. POSTAGE
PAID
PERMIT #20
HOLLISTON, MA
01746
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[LOGO DEAN WITTER]
[picture of a deer]
Hartford Life
Hartford Life and Annuity
Insurance Company
Individual Annuity Operations
P.O. Box 5085
Hartford, CT 05102-5085
