[COVER]
Annual
Report
DECEMBER 31, 1995
CITICORP LIFE INSURANCE
COMPANY
LANDMARK((SM)) VIP FUNDS
MFS((R)) VARIABLE
INSURANCE TRUST((SM))
AIM VARIABLE INSURANCE
FUNDS, INC.
FIDELITY INVESTMENTS
Remember that Annuity products:
(bullet) Are NOT bank deposits or FDIC insured
(bullet) Are NOT obligations of or guaranteed by Citibank
or Citicorp Investment Services
(bullet) Are subject to investment risks, including possible
loss of the principal amount invested
<PAGE>
LETTER TO CONTRACT OWNERS
Dear Contract Owner:
We are pleased to provide you with the results of the funds in your Citicorp
Life variable annuity. Inside this booklet you'll find the annual performance
of the variable annuity funds as well as informative financial summaries.
The variable annuity you purchased was developed specifically to meet your
investment needs and help you reach your financial goals. Your satisfaction
with this product is important to us and we welcome any comments or suggestions
you may have regarding our product or service. Please feel free to call at
1-800-497-4855 from 8:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday.
We would like to thank you for the opportunity to be of service to you. We look
forward to continuing in that role as we work together to make your future the
best it can be.
Sincerely,
/S/ LARRY D. WILLIAMS
Larry D. Williams
Senior Vice President
CITICORP LIFE INSURANCE COMPANY
<PAGE>
TABLE OF CONTENTS
LANDMARK((SM)) VIP FUNDS ............................................... 1
PORTFOLIO OF OBJECTIVES ........................................... 2-3
PORTFOLIO OF INVESTMENTS .......................................... 4-9
FINANCIAL UPDATE .................................................. 10-16
MFS((R)) VARIABLE INSURANCE TRUST((SM)) ................................ 17
MFS((R)) MONEY MARKET SERIES ...................................... 18-30
MFS((R)) WORLD GOVERNMENT SERIES .................................. 31-50
AIM VARIABLE INSURANCE FUNDS, INC ...................................... 51
AIM V.I. CAPITAL APPRECIATION FUND ................................ 52-65
FIDELITY INVESTMENTS ................................................... 66
VARIABLE INSURANCE PRODUCTS FUND .................................. 67-117
STATEMENT OF NET ASSETS ................................................ 118
STATEMENT OF OPERATIONS ................................................ 119
STATEMENT OF CHANGES IN NET ASSETS ..................................... 120
NOTES TO FINANCIAL STATEMENTS ..........................................121-122
SCHEDULE OF INVESTMENTS ................................................ 123
INDEPENDENT AUDITORS REPORT ............................................ 124
This report may be distributed only to current contract owners or to persons
who have received a current prospectus of the Citicorp Life Insurance Company
Variable Annuity.
<PAGE>
The following documents have been previously filed in EDGAR and are herein
incorporated by reference; financial information can be obtained from the
following:
Landmark Institutional (VIP) Funds
CIK#: 0000878732
Form Type: N-30B-2
File Number: 811-06401
Filing Date: 03/01/96
Assession No.: 0000950156-96-000228
<PAGE>
MFS Variable Insurance Trust
CIK#: 0000918571
Filing Number (Money Market and World Govt. Series): 811-08326
Filing Date: 03/05/96 (Money Market) 03/08/96 (World Govt.)
Assession No.: 0000950156-96-000242 (Money Market)
0000950156-96-000268 (World Govt.)
<PAGE>
AIM Variable Insurance Funds
CIK#: 0000896435
Filing Number: 811-07452
Filing Date: 03/06/96
Assession No.: 0000899243-96-000158
<PAGE>
Fidelity Variable Insurance Products Fund
CIK#: 0000814066
Form Type: N-30D
Filing Number: 1.811-3329
Filing Date: 02/15/96
Re-filed as module: 02/26/96
Accession Number: 0000927384-96-000013
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF NET ASSETS
December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark Landmark Fidelity
Landmark Government International Balanced Growth
Equity Fund Securities Fund Equity Fund Fund Portfolio
----------- --------------- ------------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net Assets:
Investments at Market Value
(See Schedule of Investments) $1,147,521 $1,069,479 $4,122,919 $1,114,304 $5,974
Payable to Citicorp Life
Insurance Company -- -- -- 4 4
---------- ---------- ---------- ---------- ------
Total Net Assets $1,147,521 $1,069,479 $4,122,919 $1,114,300 $5,970
========== ========== ========== ========== ======
Total Net Assets Represented By:
Variable Annuity Cash Value
Invested in Separate Account -- -- -- $ 5,660 $5,970
Citicorp Life Insurance Co. Equity $1,147,521 $1,069,479 $4,122,919 1,108,640
---------- ---------- ---------- ---------- ------
Total Net Assets $1,147,521 $1,069,479 $4,122,919 $1,114,300 $5,970
========== ========== ========== ========== ======
Total Units Held -- -- -- 5,094 4,565
Net Unit Value -- -- -- $1.11 $ 1.31
Cost of Investments $1,012,229 $1,035,503 $4,050,938 $1,026,812 $5,103
========== ========== ========== ========== =======
</TABLE>
See Notes to Financial Statements.
118
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
For the Period from June 5, 1995 (Inception) to December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark Landmark Fidelity
Landmark Government International Balanced Growth
Equity Fund Securities Fund Equity Fund Fund Portfolio
----------- --------------- ------------- -------- ---------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 12,229 $35,503 $ 50,938 $ 21,708 --
Expenses:
Mortality & Expense Risk Fees -- -- -- 39 $ 45
Daily Administrative Charges -- -- -- 4 5
-------- ------- -------- -------- ----
Total Expenses -- -- -- 43 50
-------- ------- -------- -------- ----
Net Investment Income (Loss) 12,229 35,503 50,938 21,665 (50)
-------- ------- -------- -------- ----
Realized and Unrealized Gain
on Investments:
Realized Gain on Sale of Investments -- -- -- 2 8
Net Unrealized Gain on Investments 135,292 33,976 71,981 87,492 871
-------- ------- -------- -------- ----
Net Gain on Investments 135,292 33,976 71,981 87,494 879
-------- ------- -------- -------- ----
Increase in Net Assets Resulting
from Operations $147,521 $69,479 $122,919 $109,159 $829
======== ======= ======== ======== ====
</TABLE>
See Notes to Financial Statements.
119
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
For the Period from June 5, 1995 (Inception) to December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark Landmark Fidelity
Landmark Government International Balanced Growth
Equity Fund Securities Fund Equity Fund Fund Portfolio
----------- --------------- ------------- -------- ---------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) $ 12,229 $ 35,503 $ 50,938 $ 21,665 $ (50)
Realized Gain on Sale of Investments -- -- -- 2 8
Change in Unrealized Appreciation
of Investments 135,292 33,976 71,981 87,492 871
---------- ---------- ---------- ---------- ------
Increase in Net Assets Resulting
from Operations 147,521 69,479 122,919 109,159 829
---------- ---------- ---------- ---------- ------
Capital Transactions:
Contract Deposits -- -- -- 5,141 5,141
Seed Money from Citicorp
Life Insurance Company 1,000,000 1,000,000 4,000,000 1,000,000 --
---------- ---------- ---------- ---------- ------
Increase in Net Assets Resulting
from Capital Transactions 1,000,000 1,000,000 4,000,000 1,005,141 5,141
---------- ---------- ---------- ---------- ------
Increase in Net Assets 1,147,521 1,069,479 4,122,919 1,114,300 5,970
Net Assets, at Beginning of Period -- -- -- -- --
---------- ---------- ---------- ---------- ------
Net Assets, at End of Period $1,147,521 $1,069,479 $4,122,919 $1,114,300 $5,970
========== ========== ========== ========== ======
</TABLE>
See Notes to Financial Statements.
120
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. History
The Citicorp Life Insurance Company Variable Annuity Separate Account (the
Account) is a separate investment account maintained under the provisions of
Arizona Insurance Law by Citicorp Life Insurance Company (the Company), a
subsidiary of Citibank Delaware. The Account operates as a unit investment trust
registered under the Investment Company Act of 1940, as amended, and supports
the operations of the Companys individual flexible premium deferred variable
annuity contracts (the contracts). The Account invests in Portfolios of the
Landmark Variable Insurance Products Funds, the A.I.M. Variable Insurance Funds,
Inc., the Fidelity Investments Variable Insurance Products Fund and the M.F.S.
Variable Insurance Trust (the Funds). The available Portfolios of the Landmark
Variable Insurance Products Funds include the Landmark Equity Fund, the Landmark
U.S. Government Fund, the Landmark International Equity Fund and the Landmark
Balanced Fund. The A.I.M. V.I. Capital Appreciation Fund of the A.I.M. Variable
Insurance Funds, Inc., the Growth Portfolio of the Fidelity Investments Variable
Insurance Products Fund, the MFS Money Market Series and the MFS World
Governments Series of the M.F.S. Variable Insurance Trust are also available for
investment.
The Account had no assets or operations until June 5, 1995, when the initial
investment was made. On June 12, 1995, the Company transferred $7,000,000 from
its general funds to provide initial capital in the Landmark Variable Insurance
Products Funds.
The assets of the Account are the property of the Company. The portion of the
Accounts assets applicable to the contracts are not chargeable with liabilities
arising out of any other business conducted by the Company.
In addition to the Account, a contract owner may also allocate funds to the
General Account, which is part of the Companys general account. Amounts
allocated to the General Account are credited with a guaranteed rate for one
year. Because of exemptive and exclusionary provisions, interests in the
General Account have not been registered under the Securities Act of 1933 and
the General Account has not been registered as an investment company under the
Investment Company Act of 1940.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Account in preparation of the financial statements in conformity with generally
accepted accounting principles.
A. Investment Valuation The investments of the Portfolios within the Account
are stated at market value, which is the net asset value of each of the
respective series as determined at the close of business on the last working
day of the period.
B. Accounting for Investments Investment transactions are accounted for on the
trade date. Dividend income is recorded on the ex-dividend date.
C. Federal Income Taxes The Company is taxed under federal law as a life
insurance company. The Account is part of the Companys total operations and
is not taxed separately. Under current Federal income tax law, no taxes are
payable on investment income or realized capital gains of the Account
Contractholders.
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 and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and
decrease in net assets from operations during the period. Actual results
could differ from those estimates.
121
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
3. Contract Charges
Daily charges for mortality and expense risks assumed by the Company are
assessed through the daily unit value calculation and are equivalent on an
annual basis to 1.25% of the value of the contracts.
An annual contract fee of $30 is assessed against each contract on its
anniversary date by surrendering units. Daily charges for administrative
expenses are assessed through the daily unit value calculation and are
equivalent on an annual basis to 0.15% of the value of the contracts.
The contracts provide that in the event that a contract owner withdraws all or
a portion of the contract value within five contract years there will be
assessed a deferred sales charge. The deferred sales charge is based on a table
of charges of which the maximum charge is currently 7% of the contract value.
During each contract year, up to 10% of purchase payments less any prior
withdrawal of purchase payments may be withdrawn without a deferred sales
charge.
Premium taxes may be applicable, depending on the laws of various
jurisdictions. Various states and other government entities levy a premium tax
on annuity contracts issued by insurance companies.
Through the period ended December 31, 1995, the Landmark Equity Fund, Landmark
U.S. Government Securities Fund, and Landmark International Equity Fund
consisted of general funds contributed by the Company. As a result of the
nature of these deposits, there have been no contract charges assessed against
these deposits.
4. Purchases and Sales of Investments
For the period ended December 31, 1995, investment activity in the Account was
as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Shares of Purchases from Sales
- --------- --------- ----------
<S> <C> <C>
Landmark Variable Insurance Products Funds:
Landmark Equity Fund $1,012,229 --
Landmark U.S. Government Fund 1,035,503 --
Landmark International Equity Fund 4,050,938 --
Landmark Balanced Fund 1,026,849 $39
Fidelity Investments Variable Insurance Products Fund:
Growth Portfolio 5,141 46
</TABLE>
5. Net Increase in Accumulation Units
For the period ended December 31, 1995, transactions in accumulation units of
the Account were as follows:
<TABLE>
<CAPTION>
Landmark Fidelity
Balanced Growth
Fund Portfolio
-------- ---------
<S> <C> <C>
Units Purchased 5,094 4,565
Units Withdrawn -- --
Units Transferred Between Funds -- --
----- -----
Net Increase 5,094 4,565
Units, at Beginning of Period -- --
----- -----
Units, at End of Period 5,094 4,565
===== =====
</TABLE>
122
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
SCHEDULE of investments
December 31, 1995
<TABLE>
<CAPTION>
Number Market
of Shares Value Cost
--------- --------- ---------
<S> <C> <C> <C>
Landmark Variable Insurance Products Funds:
Landmark Equity Fund 99,698 $1,147,521 $1,012,229
Landmark U.S. Government Fund 102,050 1,069,479 1,035,503
Landmark International Equity Fund 399,895 4,122,919 4,050,938
Landmark Balanced Fund 101,116 1,114,304 1,026,812
Fidelity Variable Insurance Products Fund:
Growth Portfolio 205 5,974 5,103
</TABLE>
123
<PAGE>
[LOGO - KPMG Peat Marwick LLP]
Independent Auditors' Report
The Board of Directors
Citicorp Life Insurance Company and Policyholders
of Citicorp Life Insurance Company Variable
Annuity Separate Account:
We have audited the accompanying statements of net assets, including the
schedule of investments, of the Landmark Equity Fund, Landmark U.S. Government
Securities Fund, Landmark International Equity Fund, Landmark Balanced Fund,
and Fidelity Growth Portfolios of Citicorp Life Insurance Company Variable
Annuity Separate Account as of December 31, 1995, and related statements of
operations and changes in net assets for the period June 5, 1995 (Inception) to
December 31, 1995. These financial statements are the responsibility of
Citicorp Life Insurance Company Variable Annuity Separate Account's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments owned at December 31, 1995 by
correspondence with the Landmark Variable Insurance Products Fund and Fidelity
Variable Insurance Products Fund. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Landmark Equity Fund,
Landmark U.S. Government Securities Fund, Landmark International Equity Fund,
Landmark Balanced Fund, and Fidelity Growth Portfolios of Citicorp Life
Insurance Company Variable Annuity Separate Account as of December 31, 1995,
and the results of their operations and changes in their net assets for the
period June 5, 1995 (Inception) to December 31, 1995, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
February 16, 1996
124
