CITICORP LIFE INSURANCE COMPANY LETTERHEAD
VIA EDGARLINK
December 10, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
RE: Citicorp Life Insurance Company
Citicorp Life Variable Annuity Separate Account
File No 33-81626
Dear Commissioners:
On behalf of Citicorp Life Insurance Company (the "Company") and Citicorp Life
Variable Annuity Separate Account (the "Account"), enclosed for filing
pursuant to Rule 497(c) under the Securities Act of 1993, please find a copy
of the supplements, dated August 16, 1997 to the Prospectus and Statement of
Additional Information dated May 1, 1997 for deferred variable annuity
contracts offered by the Company through the Account.
The Supplements are in the form as they are used.
If you have any questions regarding this matter, please contact the
undersigned at (302) 672-5311.
Sincerely,
/s/Catherine S. Mulholland
Catherine S. Mulholland
Senior Vice President and General Counsel
cc: Tom Bisset
SUPPLEMENT DATED AUGUST 16, 1997 TO PROSPECTUS DATED MAY 1, 1997
Citicorp Life Variable Annuity Separate Account
Citicorp Life Insurance Company
Individual Flexible Premium Deferred Variable Annuity Contracts
The individual flexible premium deferred variable annuity contracts
(the "Contracts") offered by this supplemented prospectus have been amended
to provide a guaranteed minimum income benefit option (the "Guaranteed
Minimum Income Benefit") and to lower the minimum initial and subsequent
purchase payment requirements to $150. (The minimum subsequent purchase
payment for Qualified Contracts is $100.) The Guaranteed Minimum Income
Benefit option guarantees Owners who elect the option a minimum amount
available for payment under the Contracts' fixed annuity payment options or a
lump sum distribution on the Annuity Income Date provided certain conditions
are met. This supplement describes the Guaranteed Minimum Income Benefit
option and the features associated with that option as they relate
to the Contracts described in the accompanying prospectus.
Once elected, purchase payments and Contract Values may be allocated under
the Guaranteed Minimum Income Benefit option, as designated by you, to
certain specified subaccounts of the Citicorp Life Variable Annuity Separate
Account (the "Separate Account"). The assets of each such subaccount will be
invested in a corresponding portfolio of the Variable Annuity Portfolios, the
Fidelity Variable Insurance Products Fund ("Fidelity VIP"), the Fidelity
Variable Insurance Products Fund II ("Fidelity VIP II"), the AIM Variable
Insurance Funds, Inc. or the MFS Variable Insurance Trust (the "Funds").
The portfolios of the Variable Annuity Portfolios available for investment
under the Guaranteed Minimum Income Benefit option include CitiSelect VIP
Folio 400, CitiSelect VIP Folio 500 and Landmark Small Cap Equity VIP Fund.
The Fidelity VIP Growth, Fidelity VIP Equity Income and Fidelity VIP Overseas
Portfolios of the Fidelity Variable Insurance Products Fund, the Fidelity VIP
II Contrafund and Fidelity VIP II Index 500 Portfolios of the Fidelity
Variable Insurance Products Fund II, the AIM V.I. Capital Appreciation Fund,
AIM V.I. Growth Fund, AIM V.I. International Equity Fund, AIM V.I. Value
Fund and AIM V.I. Growth and Income Fund of the AIM Variable Insurance Funds,
Inc. and the MFS Research Series and MFS Emerging Growth Series of the MFS
Variable Insurance Trust are also available for investment under the
Guaranteed Minimum Income Benefit option. The accompanying prospectuses for
the Funds describe the investment objectives of the available portfolios.
DEFINITIONS
The terms used in the accompanying prospectus shall have the same meaning in
this supplement. Additional terms are set forth below.
Annuity Income Option - An annuity payment option available under the Contract.
Guaranteed Minimum Benefits - For each fixed annuity payment option, the
minimum amount of fixed annuity payments available under the Guaranteed
Minimum Income Benefit option.
<PAGE>
Guaranteed Minimum Benefit Factor - For each fixed annuity payment option,
the Guaranteed Minimum Benefit payable for each $1,000 applied to that
option. If you elect a fixed annuity payment option with a life annuity
feature, we calculate the Guaranteed Minimum Benefit Factor using an
effective annual interest rate of 4.25%, credited daily. If you elect a
fixed annuity payment option without a life annuity feature, we use an
effective annual interest rate of 3%, credited daily.
Minimum Benefit Accumulation Amount - The sum of all purchase payments and
transfers allocated under the Guaranteed Minimum Income Benefit option, less
any withdrawals, credited daily with an effective annual interest rate of
4.25%. If you elect a fixed annuity payment option without a life annuity
feature or a lump sum distribution, we will credit daily an effective annual
interest rate of 3%.
Rider Value - The sum of the Accumulation Units in each subaccount purchased
under the Guaranteed Minimum Income Benefit option multiplied by the
Accumulation Unit value for that subaccount.
Stipulated Premium - The amount scheduled to be paid each Contract Year by
the Owner under the Guaranteed Minimum Income Benefit option.
THE GUARANTEED MINIMUM INCOME BENEFIT OPTION
Election of the Guaranteed Minimum Income Benefit Option. An Owner may elect
the Guaranteed Minimum Income Benefit option at the time of application. With
regard to current Owners, we will notify them that the Guaranteed Minimum
Income Benefit option has become available in their state of residence.
Current Owners will have two months from receipt of such notice to elect the
Guaranteed Minimum Income Benefit option by so specifying on a form we have
provided and returning the form to our administrative office.
Guaranteed Minimum Income Benefit. Owners who elect the Guaranteed Minimum
Income Benefit option will be guaranteed a minimum amount that may be applied
under the Contracts fixed annuity payment options or a lump sum distribution
on the Annuity Income Date, provided certain conditions are met. On the
Annuity Income Date, Owners who have elected a fixed annuity payment option
will also be guaranteed a minimum payment under that payment option.
The minimum payment under a fixed annuity payment option will be the greatest
of:
1. the Rider Value, less premium taxes, applied to the Guaranteed Minimum
Benefit Factor for that fixed annuity payment option; or
2. the Rider Value, less premium taxes, applied to the most favorable annuity
payment table in other annuity contracts issued by us on the Annuity Income
Date for that fixed annuity payment option; or
3. the Minimum Benefit Accumulation Amount applied to the Guaranteed Minimum
Benefit Factor for that fixed annuity payment option.
The Minimum Benefit Accumulation Amount will depend upon the payment option
you select. If you select a fixed annuity payment option with a life annuity
feature, the Minimum Benefit Accumulation Amount will equal the sum of all
purchase payments and transfers allocated to the Guaranteed Minimum
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<PAGE>
Income Benefit option, less any withdrawals, credited daily with an effective
annual interest rate of 4.25%. If you elect a fixed annuity payment option
without a life annuity feature, we instead use an effective annual interest
rate of 3% in determining the Minimum Benefit Accumulation Amount. Under the
Minimum Guaranteed Income Benefit option, an Owner may only elect a fixed
annuity payment option without a life annuity feature where the Annuity
Income Date is at least 20 years after the Contract Date.
Any lump sum distribution will be equal to the greater of: (1) the Rider
Value on the Annuity Income Date; or (2) the Minimum Benefit Accumulation
Amount on the Annuity Income Date based on an effective annual interest rate
of 3%, credited daily. Under the Minimum Guaranteed Income Benefit option,
an Owner may only elect a lump sum distribution where the Annuity Income Date
is at least 20 years after the Contract Date.
Purchase Payments. The minimum amount we will accept as an initial or
subsequent purchase payment under the Guaranteed Minimum Income Benefit
option or the Contract is $150. (The minimum subsequent purchase payment for
Qualified Contracts is $100.) The initial payment is due on the Contract
Date Current Owners who elect the Guaranteed Minimum Income Benefit option
may allocate any initial purchase payment or transfer of Contract value under
the Guaranteed Minimum Income Benefit option at the time they elect the
option. Subsequent purchase payments and transfers under the Guaranteed
Minimum Income Benefit Option may be made at any time during the Annuitant's
lifetime and before the Annuity Income Date.
We also reserve the right to limit an Owner's allocations to the Guaranteed
Minimum Income Benefit option during the first three Contract Years (the
first three years after the election of the Guaranteed Minimum Income Benefit
option for current Owners) to no more than the sum of the Stipulated Premium
payments for those Contract Years, plus $10,000. Thereafter, the sum of the
total allocations received in the current Contract Year and the preceding two
Contracts Years under the Guaranteed Minimum Income Benefit option may not be
greater than the sum of the Stipulated Premium for those Contract Years, plus
$10,000.
The amount of the Stipulated Premium and the allocation of the Stipulated
Premium among the subaccounts is determined by you at the time you elect the
Guaranteed Minimum Income Benefit option. We use the Stipulated Premium only
to determine the maximum amount of aggregate purchase payments and transfers
of Contract value that we will accept under the Guaranteed Minimum Income
Benefit option for a given Contract Year. An Owner may choose to allocate an
amount less than the Stipulated Premium to the Guaranteed Minimum Income
Benefit option in any Contract Year or not to allocate to the option.
We will monitor Owner allocations to the Guaranteed Minimum Income Benefit
option to ensure compliance with the above rules, if necessary. If Owner
allocations exceed those limits, we will contact the Owner and request
additional instructions for allocating such excess payments outside the
Guaranteed Minimum Income Benefit option. We will return the amount of the
excess allocation at the Owner's request or if the Owner fails to provide us
additional allocation instructions.
Allocation of Purchase Payments. At the time of application or election of
the Minimum Guaranteed Income Benefit option, as applicable, you must specify
the allocation of the initial purchase payment among the subaccounts
available under the option. We reserve the right to require each allocation
to a subaccount to be at least $100 and a whole percent of the purchase
payment. You may allocate purchase payments to the subaccounts of the
Separate Account that are not available under the Guaranteed
- -3-
<PAGE>
Minimum Income Benefit option as well as to the Fixed Account. You may also
allocate purchase payments outside the Guaranteed Minimum Income Benefit
option to those subaccounts that are available under the option.
Under the Guaranteed Minimum Income Benefit option, any subsequent purchase
payments will be allocated as of the end of the valuation period in which the
subsequent purchase payment is received by us and will be allocated in
accordance with the purchase payment allocation schedule in effect at the
time the purchase payment is received. The allocation schedule may be
changed by you at any time by written notice. Changing the purchase payment
allocation schedule will not change the allocation of Contract value among
the subaccounts and the Fixed Account.
Transfers. Before the Annuity Income Date and subject to the restrictions
set forth in the accompanying prospectus, you may transfer amounts under the
Guaranteed Minimum Income Benefit option from a subaccount to another
subaccount available under the option. You may transfer amounts from the
Guaranteed Minimum Income Benefit option to the subaccounts of the Separate
Account that are not available under the Guaranteed Minimum Income Benefit
option as well as to the Fixed Account. You may also transfer amounts from
the Guaranteed Minimum Income Benefit option to those subaccounts that are
available under the option. For purposes of determining the Minimum Benefit
Accumulation Amount, we will treat transfers of amounts from the Guaranteed
Minimum Income Benefit option as partial withdrawals from the option; we will
not assess a Surrender Charge in connection with those transfers.
Transfers will be made based upon your written instructions. The telephone
transfer privilege is not available for transfers involving amounts under the
Minimum Guaranteed Income Benefit option.
Partial Withdrawals and Surrenders. At any time before the Annuity Income
Date, you may make partial withdrawals of the surrender value attributable to
amounts under the Guaranteed Minimum Income Benefit option. In general, a
partial withdrawal will reduce the Minimum Benefit Accumulation Amount by the
amount withdrawn. However, if on the date the partial withdrawal is
requested, the Minimum Benefit Accumulation Amount exceeds the Rider Value
and the amount withdrawn exceeds 5% of the Minimum Benefit Accumulation
Amount calculated as of the first day of the then current Contract Year, the
Minimum Benefit Accumulation Amount will be reduced by an amount representing
the percentage that the partial withdrawal bears to the Rider Value. The
amount of the reduction will equal the amount withdrawn divided by the Rider
Value immediately prior to the partial withdrawal multiplied by the Minimum
Benefit Accumulation Amount.
At any time before the Annuity Income Date, you may surrender the Contract
for its surrender value. The Minimum Benefit Accumulation Amount is not
payable upon surrender prior to the Annuity Income Date selected in
accordance with the requirements under the Guaranteed Minimum Income Benefit
option.
Annuity Payments on the Annuity Income Date. Under the Guaranteed Minimum
Income Benefit option, the Annuity Income Date is elected by you at the time
of the application and must be at least 10 years after the Contract Date.
You may change the Annuity Income Date at any time provided you give us at
least 30 days prior written notice. If the Annuity Income Date is less than
20 years after the Contract Date, any change in the Annuity Income Date must
result in an Annuity Income Date that is at least 2 years from the date of
such change and at least 10 years after the Contract Date. Any change to the
Annuity
- -4-
<PAGE>
Income Date not in conformity with these requirements may cause the
termination of the Guaranteed Minimum Income Benefit option.
Any time prior to the Annuity Income Date, you may change the Annuitant(s) by
written notice to us. Changing the Annuity Income Date or the Annuitant(s)
may result in a change to the Guaranteed Minimum Benefits. We will notify
you in writing of any changes resulting from a change in the Annuity Income
Date or the Annuitant(s).
Election of Annuity Payment Options. Under the Minimum Guaranteed Income
Benefit option, you may only elect an annuity payment option providing fixed
annuity payments. If the Annuity Income Date is at least 10, but less than
20, years after the Contract Date, you may only elect annuity payment options
2, 3 and 4 as specified in the Contract or, if we agree, an alternate annuity
payment option made available by us with a life annuity feature. If the
Annuity Income Date is at least 20 years after the Contract Date, you may
elect any annuity payment option providing for fixed annuity payments or a
lump sum distribution. An annuity payment option is chosen by you at the
time you elect the Guaranteed Minimum Income Benefit option.
Any time prior to the Annuity Income Date, you may change the annuity payment
option upon 30 days prior written notice. Changing the annuity payment
option will result in a change to the Guaranteed Minimum Benefits. We will
notify you in writing of any change resulting from a change in the annuity
payment option.
FEES AND CHARGES
Guaranteed Minimum Income Benefit Charge. We will assess a daily charge
equal to .50% per annum of the average daily net assets of amounts under the
Guaranteed Minimum Income Benefit option for the costs associated with
administering the option.
Other Fees and Charges. Daily deductions from the subaccounts include a
1.25% per annum deduction for the mortality and expense risk charge and a
.15% per annum deduction for administrative expenses. A maximum surrender
charge equal to 7% of purchase payments withdrawn may be assessed in the case
of partial withdrawals and surrenders. An Annual Contract Fee may be assessed
under Contracts with Contract Values below $25,000. The table below supplements
the Expense Table on page six of the accompanying prospectus and sets forth the
various fees and charges associated with investment in the Contract if the
Guaranteed Minimum Income Benefit option is elected. The Table illustrates
the charges deducted at both the Contract and Fund levels.
EXPENSE TABLE
The following expense information supplements the expense information found
on pages 6 through 11 of the accompanying prospectus for the Contracts, which
should be read together with this information. This information assumes the
election of the Guaranteed Minimum Income Benefit option and that the entire
Contract Value is Variable Contract Value.
- -5-
<PAGE>
Separate Account Annual Expenses
(as a percentage of average net assets)
Mortality and Expense Risk Charge 1.25%
Administration Charge 0.15%
Guaranteed Minimum Income Benefit Charge 0.50%
Total Separate Account Expenses 1.90%
Examples
An owner would pay the following expenses on a $1,000 investment, assuming a
5% annual return on assets and the election of the Guaranteed Minimum Income
Benefit option.
1. If the Contract is surrendered or annuitized under a fixed annuity payment
option not providing a life annuity or a life annuity with a period certain of
at least five years at the end of the applicable time period:
Subaccount 1 Year 3 Years 5 Years 10 Years
CitiSelect VIP Folio 400 $100 $156 --- ---
CitiSelect VIP Folio 500 $100 $156 --- ---
Landmark Small Cap Equity VIP Fund $96 $146 --- ---
Fidelity VIP Growth Portfolio $94 $140 $187 $330
Fidelity VIP Equity Income Portfolio $93 $137 --- ---
Fidelity VIP Overseas Portfolio $97 $147 --- ---
Fidelity VIP II Contrafund Portfolio $95 $141 --- ---
Fidelity VIP II Index 500 Portfolio $90 $128 --- ---
AIM V.I. Capital Appreciation Fund $95 $141 $188 $334
AIM V.I. Growth Fund $95 $143 --- ---
AIM V.I. International Equity Fund $97 $148 --- ---
AIM V.I. Value Fund $95 $141 --- ---
AIM V.I. Growth and Income Fund $95 $143 --- ---
MFS Research Series $97 $149 --- ---
MFS Emerging Growth Series $97 $149 --- ---
2. If the Contract is annuitized under a fixed annuity payment option
providing either a life annuity or a life annuity with a period certain of
at least five years at the end of the applicable time period:
Subaccount 1 Year 3 Years 5 Years 10 Years
CitiSelect VIP Folio 400 $36 $109 --- ---
CitiSelect VIP Folio 500 $36 $109 --- ---
Landmark Small Cap Equity VIP Fund $32 $99 --- ---
Fidelity VIP Growth Portfolio $30 $92 $157 $330
Fidelity VIP Equity Income Portfolio $29 $89 --- ---
Fidelity VIP Overseas Portfolio $33 $99 --- ---
Fidelity VIP II Contrafund Portfolio $31 $94 --- ---
Fidelity VIP II Index 500 Portfolio $26 $80 --- ---
AIM V.I. Capital Appreciation Fund $31 $93 $159 $334
AIM V.I. Growth Fund $31 $95 --- ---
AIM V.I. International Equity Fund $33 $100 --- ---
AIM V.I. Value Fund $31 $93 --- ---
AIM V.I. Growth and Income Fund $31 $95 --- ---
MFS Research Series $33 $102 --- ---
MFS Emerging Growth Series $33 $102 --- ---
- -6-
<PAGE>
3. If the Contract is not surrendered or annuitized at the end of the
applicable time period:
Subaccount 1 Year 3 Years 5 Years 10 Years
CitiSelect VIP Folio 400 $36 $109 --- ---
CitiSelect VIP Folio 500 $36 $109 --- ---
Landmark Small Cap Equity VIP Fund $32 $99 --- ---
Fidelity VIP Growth Portfolio $30 $92 $157 $330
Fidelity VIP Equity Income Portfolio $29 $89 --- ---
Fidelity VIP Overseas Portfolio $33 $99 --- ---
Fidelity VIP II Contrafund Portfolio $31 $94 --- ---
Fidelity VIP II Index 500 Portfolio $26 $80 --- ---
AIM V.I. Capital Appreciation Fund $31 $93 $159 $334
AIM V.I. Growth Fund $31 $95 --- ---
AIM V.I. International Equity Fund $33 $100 --- ---
AIM V.I. Value Fund $31 $93 --- ---
AIM V.I. Growth and Income Fund $31 $95 --- ---
MFS Research Series $33 $102 --- ---
MFS Emerging Growth Series $33 $102 --- ---
_________________
The examples provided above assume that no transfer charges or premium taxes
have been assessed. The examples also assume that the Annual Contract Fee is
$30 and that the average Contract Value is $10,000, which translates the
Annual Contract Fee into an assumed .30% charge for the purposes of the
examples based on a $1,000 investment.
The examples should not be considered a representation of past or future
expenses. The assumed 5% annual rate of return is hypothetical and should
not be considered a representation of past or future annual returns, which
may be greater or less than this assumed rate.
CONDENSED FINANCIAL INFORMATION
Accumulation Unit information that reflects the election of the Guaranteed
Minimum Income Benefit option is not presented because, as of the date of
this supplement, the Guaranteed Minimum Income Benefit option had not yet
become available.
OTHER PROVISIONS RELATED TO THE OPTION
Modification. Upon notice to you, or the Annuitant, we may modify the rider
for the Guaranteed Minimum Income Benefit option if:
1. necessary to comply with any applicable law or regulation issued by a
government agency; or
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<PAGE>
2. necessary to add, delete or modify the subaccounts available under the
Guaranteed Minimum Income Benefit option; or
3. necessary to reflect a change in the operation of those subaccounts.
Termination. Once elected, the Guaranteed Minimum Income Benefit option
will remain in force until you terminate the option or surrender the Contract.
If, after you elect the Guaranteed Minimum Income Benefit option, the Rider
Value equals zero, the Guaranteed Minimum Income Benefit option will terminate
automatically. Once terminated, the Guaranteed Minimum Income Benefit option
can not be reinstated. The provisions of the Contract, however, will continue
to apply.
THIS PROSPECTUS SUPPLEMENT MUST BE ACCOMPANIED BY THE CURRENT
PROSPECTUSES FOR THE FUNDS. PLEASE READ THIS SUPPLEMENTED PROSPECTUS
AND THE PROSPECTUSES FOR THE FUNDS BEFORE YOU INVEST.
- -8-
SUPPLEMENT DATED AUGUST 16, 1997 TO
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997
Citicorp Life Variable Annuity Separate Account
Citicorp Life Insurance Company
Individual Flexible Premium Deferred Variable Annuity Contracts
Effective August 16, 1997, the section of the Statement of Additional
Information captioned Average Annual Total Returns is amended to include the
following:
From time to time we may quote average annual total returns and cumulative
total returns for subaccounts that reflect the election of the Guaranteed
Minimum Income Benefit option. Such performance information will be
calculated in exactly the same way as the standardized average annual
total returns and standardized cumulative total returns described in the
accompanying prospectus but for the inclusion of the Guaranteed Minimum
Income Benefit Charge.
Based on the method of calculation described in the accompanying prospectus
and the election of the Guaranteed Minimum Income Benefit option, the
Standardized Average Annual Total Returns for the subaccounts available under
the option for the period ending December 31, 1996 would have been:
Guaranteed Minimum Income Benefit Option
Subaccount Standardized
Average Annual Total Return Table
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Guaranteed Minimum Income Benefit Option For the For the For the
Subaccount one-year 5-year period
(date of inception of corresponding portfolio) period period from
ending ending inception to
12/31/96 12/31/96 12/31/96
VARIABLE ANNUITY PORTFOLIOS
CitiSelectSM VIP Folio 400 (11/25/96) N/A N/A N/A
CitiSelectSM VIP Folio 500 (11/25/96) N/A N/A N/A
Landmark Small Cap Equity VIP Fund (11/25/96) N/A N/A N/A
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund (5/05/93) 9.00% N/A 16.61%
Growth Fund (5/05/93) 9.47% N/A 12.48%
International Equity Fund (5/05/93) 11.29% N/A 11.18%
Value Fund (5/05/93) 6.62% N/A 15.16%
Growth and Income Fund (5/02/94) 11.19% N/A 15.12%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Growth Portfolio (10/9/86) 6.34% 12.85% 12.50%
Equity Income Portfolio (10/9/86) 5.94% 15.61% 11.14%
Overseas Fund (1/28/87) 4.89% 6.96% 5.71%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
Contrafund Portfolio (1/03/95) 12.37% N/A 24.07%
Index 500 Portfolio (8/27/92) 13.25% N/A 13.99%
MFS VARIABLE INSURANCE TRUST
Research Series (7/26/95) 13.40% N/A 16.39%
Emerging Growth Series (7/24/95) 8.48% N/A 17.55%
</TABLE>
<PAGE>
Based on the method of calculation described in the accompanying prospectus
and the election of the Guaranteed Minimum Income Benefit option, the
Cumulative Total Returns for the subaccounts available under the option for
the period ending December 31, 1996 would have been:
Guaranteed Minimum Income Benefit Option
Subaccount Standardized
Cumulative Total Return Table
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Guaranteed Minimum Income Benefit Option For the For the For the
Subaccount one-year 5-year period
(date of inception of corresponding portfolio) period period from
ending ending inception to
12/31/96 12/31/96 12/31/96
VARIABLE ANNUITY PORTFOLIOS
CitiSelectSM VIP Folio 400 (11/25/96) N/A N/A N/A
CitiSelectSM VIP Folio 500 (11/25/96) N/A N/A N/A
Landmark Small Cap Equity VIP Fund (11/25/96) N/A N/A N/A
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund (5/05/93) 9.00% N/A 74.97%
Growth Fund (5/05/93) 9.47% N/A 53.79%
International Equity Fund (5/05/93) 11.29% N/A 47.38%
Value Fund (5/05/93) 6.62% N/A 67.62%
Growth and Income Fund (5/02/94) 11.19% N/A 45.62%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Growth Portfolio (10/9/86) 6.34% 82.99% 233.97%
Equity Income Portfolio (10/9/86) 5.94% 106.52% 194.82%
Overseas Fund (1/28/87) 4.89% 39.97% 73.63%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
Contrafund Portfolio (1/03/95) 12.37% N/A 53.76%
Index 500 Portfolio (8/27/92) 13.25% N/A 76.70%
MFS VARIABLE INSURANCE TRUST
Research Series (7/26/95) 13.40% N/A 24.35%
Emerging Growth Series (7/24/95) 8.48% N/A 26.24%
</TABLE>
From time to time we may also quote average annual total returns and
cumulative total returns for subaccounts that reflect the election of the
Guaranteed Minimum Income Benefit option and do not reflect the surrender
charge or the Annual Contract Fee. Such performance information will be
calculated in exactly the same way as the Non-Standardized Average Annual
Total Returns and Non-Standardized Cumulative Total Returns described in the
accompanying prospectus but for the inclusion of the Guaranteed Minimum
Income Benefit Charge.
Based on the method of calculation described in the accompanying prospectus
and the election of the Guaranteed Minimum Income Benefit option, the
Non-Standardized Average Annual Total Returns for the subaccounts under the
option for the period ending December 31, 1996 would have been:
- -2-
<PAGE>
Guaranteed Minimum Income Benefit Option
Subaccount Non-Standardized
Average Annual Total Return Table
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Guaranteed Minimum Income Benefit Option For the For the For the
Subaccount one-year 5-year period
(date of inception of corresponding portfolio) period period from
ending ending inception to
12/31/96 12/31/96 12/31/96
VARIABLE ANNUITY PORTFOLIOS
CitiSelectSM VIP Folio 400 (11/25/96) N/A N/A N/A
CitiSelectSM VIP Folio 500 (11/25/96) N/A N/A N/A
Landmark Small Cap Equity VIP Fund (11/25/96) N/A N/A N/A
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund (5/05/93) 16.35% N/A 17.82%
Growth Fund (5/05/93) 15.85% N/A 13.74%
International Equity Fund (5/05/93) 17.77% N/A 12.42%
Value Fund (5/05/93) 12.83% N/A 16.44%
Growth and Income Fund (5/02/94) 17.67% N/A 17.26%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Growth Portfolio (10/9/86) 12.53% 12.97% 12.63%
Equity Income Portfolio (10/9/86) 12.11% 15.74% 11.27%
Overseas Fund (1/28/87) 11.00% 7.08% 5.83%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
Contrafund Portfolio (1/03/95) 18.92% N/A 27.72%
Index 500 Portfolio (8/27/92) 19.85% N/A 14.84%
MFS VARIABLE INSURANCE TRUST
Research Series (7/26/95) 20.01% N/A 21.11%
Emerging Growth Series (7/24/95) 14.80% N/A 22.30%
</TABLE>
- -3-
<PAGE>
Based on the method of calculation described in the accompanying prospectus
and the election of the Guaranteed Minimum Income Benefit option, the
Non-Standardized Cumulative Total Returns for the subaccounts under the
option for the period ending December 31, 1996 would have been:
Guaranteed Minimum Income Benefit Option
Subaccount Non-Standardized
Cumulative Total Return Table
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Guaranteed Minimum Income Benefit Option For the For the For the
Subaccount one-year 5-year period
(date of inception of corresponding portfolio) period period from
ending ending inception to
12/31/96 12/31/96 12/31/96
VARIABLE ANNUITY PORTFOLIOS
CitiSelectSM VIP Folio 400 (11/25/96) N/A N/A N/A
CitiSelectSM VIP Folio 500 (11/25/96) N/A N/A N/A
Landmark Small Cap Equity VIP Fund (11/25/96) N/A N/A N/A
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund (5/05/93) 15.35% N/A 82.24%
Growth Fund (5/05/93) 15.85% N/A 60.18%
International Equity Fund (5/05/93) 17.77% N/A 53.51%
Value Fund (5/05/93) 12.83% N/A 74.59%
Growth and Income Fund (5/02/94) 17.67% N/A 52.94%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Growth Portfolio (10/9/86) 12.53% 84.02% 237.80%
Equity Income Portfolio (10/9/86) 12.11% 107.68% 198.20%
Overseas Fund (1/28/87) 11.00% 40.75% 75.56%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
Contrafund Portfolio (1/03/95) 18.92% N/A 62.90%
Index 500 Portfolio (8/27/92) 19.85% N/A 82.48%
MFS VARIABLE INSURANCE TRUST
Research Series (7/26/95) 20.01% N/A 31.66%
Emerging Growth Series (7/24/95) 14.80% N/A 33.66%
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