<PAGE>
ACCRU
VARIABLE ANNUITY
VARIABLE UNIVERSAL LIFE
ANNUAL REPORT
DECEMBER 31, 1995
CAPITAL STRATEGIES
FOR THE SAVVY INVESTOR
FROM CIGNA
<PAGE>
THOMAS C. JONES
President
CIGNA Individual Insurance
February 28, 1996
Dear Client:
This report reviews the performance of the ACCRU Variable Annuity and ACCRU
Variable Universal Life products from the date each sub-account was initially
funded through December 31, 1995. It is gratifying to report that during this
period, a majority of the active investment vehicles underlying the ACCRU
Variable Annuity and ACCRU Variable Universal Life products achieved solid
gains.
The past year was an essentially positive one for the U.S. economy, marked by
healthy corporate profits, mild inflation and moderate growth. Both the U.S.
bond market and the domestic equity market moved steadily upward. The world
economy felt the impact of the Mexican financial crisis and related shocks in
other emerging markets. Foreign equity markets, in general, did not perform as
vigorously as U.S. markets. On balance, the Mexican crisis and various other
factors caused attention to shift from higher risk investment opportunities,
particularly abroad, to safer, more traditional investments at home. The Federal
Reserve very gradually eased credit conditions from the peak of restraint
reached in February of 1995.
Bonds performed extremely well during 1995 because of low inflation, sharply
declining interest rates, and a renewed confidence in dollar investments.
Average bond yields dropped steadily throughout the year. Of particular
significance, the yield on the benchmark 30-year Treasury bond fell to 5.95% by
year end, from 7.88% at the close of 1994. Like the U.S. bond market, the
domestic equity market moved upward with hardly a pause and the Dow Jones
Industrial Average breached two milestones -- 4000 in February and 5000 in
November.
Although U.S. investment markets ended the year on a strong note, there was an
underlying discomfort with the economy, including concerns about the impact of
the budget conflict on the economy. Investment spending and exports remained the
growth leaders in the economy. A disappointing Christmas retail season was
expected to dampen domestic orders in early 1996, and, with operating gains
drifting lower, there were reasons to doubt the sustainability of the investment
spending boom. During 1996, one or more additional short term rate cuts can be
expected from the Federal Reserve unless there are unexpected economic
developments. When short rates are again reduced, the economy should be
stimulated by another flurry of consumer, business and municipal refinancing.
Most analysts and market watchers agree that 1995 will be a hard act to follow
although certain positive factors remain, including the potential for continued
corporate earnings growth. The term "cautious optimism" best describes the
economic and investment outlook as we move forward into 1996.
<PAGE>
Following is a summary of sub-account performances for the period from the date
each sub-account was initially funded through December 31, 1995. The
Accumulation Unit Value for each sub-account was or will be set initially at
$10.00. Please refer to the separate account financial statements for specific
sub-account inception dates.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
12/31/95 PRODUCT
ACCUMULATION INCEPTION %
VARIABLE ANNUITY UNIT VALUE* CHANGE
<S> <C> <C>
Alger American Growth Portfolio 12.385784 23.86
Alger American Leveraged AllCap Portfolio 13.895178 38.95
Alger American MidCap Growth Portfolio 13.106537 31.07
Alger American Small Capitalization Portfolio 13.092181 30.92
Fidelity VIP Equity -- Income Portfolio 12.128673 21.29
Fidelity VIP Money Market Portfolio 10.245402 2.45
Fidelity VIP II: Asset Manager Portfolio 11.280365 12.80
Fidelity VIP II: Investment Grade Bond Portfolio 10.541110 5.41
MFS Total Return Series 11.003903 10.04
MFS Utilities Series 11.365171 13.65
MFS World Government Series 10.277969 2.78
Neuberger & Berman AMT Balanced Portfolio 10.269633 2.70
Neuberger & Berman AMT Limited Maturity Bond Portfolio 10.547360 5.47
Neuberger & Berman AMT Partners Portfolio 12.122020 21.22
Quest for Value Global Equity Portfolio 11.758951 17.59
Quest for Value Managed Portfolio 11.143831 11.44
Quest for Value Small Cap Portfolio 10.855343 8.55
<CAPTION>
12/31/95 PRODUCT
ACCUMULATION INCEPTION %
VARIABLE UNIVERSAL LIFE UNIT VALUE CHANGE
<S> <C> <C>
Alger American Growth Portfolio 12.175146 21.75
Alger American Leveraged AllCap Portfolio 14.765068 47.65
Alger American MidCap Growth Portfolio 12.966604 29.67
Alger American Small Capitalization Portfolio 12.845183 28.45
Fidelity VIP Equity -- Income Portfolio 11.970125 19.70
Fidelity VIP II: Asset Manager Portfolio 10.493126 4.93
Fidelity VIP II: Investment Grade Bond Portfolio 10.215729 2.16
MFS Total Return Series 10.618988 6.19
MFS Utilities Series 10.070410 0.70
MFS World Government Series 10.417540 4.18
Neuberger & Berman AMT Balanced Portfolio 9.807578 -1.92
Neuberger & Berman AMT Limited Maturity Bond Portfolio ** **
Neuberger & Berman AMT Partners Portfolio 12.079554 20.80
Quest for Value Global Equity Portfolio 10.050817 0.51
Quest for Value Managed Portfolio 12.250674 22.51
Quest for Value Small Cap Portfolio 10.235194 2.35
</TABLE>
* Variable Annuity unit values reflect the Company's waiver of its mortality and
expense risk charges at a rate of 1.20% per year throughout the April 10
through May 31 period. Had these charges been imposed, ending accumulation
unit values would have been lower for those funds open during that period.
**As of 12/31/95, no Variable Life premium payments had yet been allocated to
this fund.
To review the performances and portfolios of mutual funds used in the ACCRU
Variable Annuity and ACCRU Variable Universal Life contracts, please refer to
the financial statements following the Table of Contents.
We will continue to do our utmost to assist in providing for your long-term
financial security.
Respectfully submitted,
[SIG]
Thomas C. Jones
President
<PAGE>
TABLE OF CONTENTS
CONNECTICUT GENERAL SEPARATE ACCOUNTS
FINANCIAL STATEMENTS
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
CG VARIABLE LIFE SEPARATE ACCOUNT I
THE ALGER AMERICAN FUND
ANNUAL REPORT
ALGER AMERICAN GROWTH PORTFOLIO
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO
FIDELITY INVESTMENTS
VARIABLE INSURANCE
PRODUCTS FUND ANNUAL REPORT*
MONEY MARKET PORTFOLIO
EQUITY-INCOME PORTFOLIO
VARIABLE INSURANCE
PRODUCTS FUND II
ANNUAL REPORT
INVESTMENT GRADE BOND PORTFOLIO
ASSET MANAGER PORTFOLIO
MFS VARIABLE INSURANCE TRUST
ANNUAL REPORT
MFS TOTAL RETURN SERIES
MFS UTILITIES SERIES
MFS WORLD GOVERNMENTS SERIES
NEUBERGER & BERMAN ADVISERS
MANAGEMENT TRUST ANNUAL REPORT
BALANCED PORTFOLIO
LIMITED MATURITY BOND PORTFOLIO
PARTNERS PORTFOLIO
QUEST FOR VALUE ACCUMULATION TRUST
ANNUAL REPORT
GLOBAL EQUITY PORTFOLIO
MANAGED PORTFOLIO
SMALL CAP PORTFOLIO
[LOGO]
* PLEASE NOTE THAT THE FIDELITY MONEY MARKET PORTFOLIO IS USED IN
CONNECTION WITH CONNECTICUT GENERAL LIFE'S VARIABLE ANNUITY
CONTRACT BUT NOT ITS VARIABLE LIFE INSURANCE CONTRACT. IN
ADDITION, THE FIDELITY MATERIALS CONTAINED IN THIS ANNUAL REPORT
DISCUSS FUNDS NOT AVAILABLE TO FUND CONNECTICUT GENERAL LIFE'S
CONTRACTS.
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
ALGER AMERICAN GROWTH PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Alger American
Fund-Alger American Growth
Portfolio at value............... $3,860,017
Receivable from Connecticut
General Life Insurance Company... 33,856
---------
Total assets.................... 3,893,873
---------
LIABILITIES:
Payable for fund shares
purchased........................ 33,856
---------
Net assets...................... $3,860,017
---------
---------
Accumulation units outstanding.... 311,649
Net asset value per accumulation
unit............................. $12.385784
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ 50
EXPENSES:
Mortality and expense risk and
administrative charges**......... 10,034
---------
Net investment loss............. (9,984)
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distribution from
portfolio sponsor................ 177
Realized gain on share
transactions..................... 800
---------
Net realized gain............... 977
Net unrealized loss............. (4,368)
---------
Net realized and unrealized
loss on investments.......... (3,391)
---------
DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ (13,375)
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (9,984)
Net realized gain............................................................... 977
Net unrealized loss............................................................. (4,368)
---------
Net decrease from operations.................................................. (13,375)
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 3,123,028
Participant transfers........................................................... 758,535
Participant withdrawals......................................................... (8,171)
---------
Net increase from participant transactions.................................... 3,873,392
---------
Total increase in net assets................................................ 3,860,017
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $3,860,017
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 251,529
Participant transfers........................................................... 60,779
Participant withdrawals......................................................... (659)
---------
Net increase in units from participant transactions........................... 311,649
---------
---------
</TABLE>
* Date deposits first received.
**Reduced by $27 due to the waiver of 1.20% mortality and expense risk charge
from April 12, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
1
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31,1995
ASSETS:
Investments in Alger American
Fund-Alger American Leveraged
AllCap Portfolio at value........ $1,209,214
Receivable from Connecticut
General Life Insurance Company... 2,457
---------
Total assets.................... 1,211,671
---------
LIABILITIES:
Payable for fund shares
purchased........................ 2,457
---------
Net assets...................... $1,209,214
---------
---------
Accumulation units outstanding.... 87,024
Net asset value per accumulation
unit............................. $13.895178
STATEMENT OF OPERATIONS
PERIOD FROM JUNE 2, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges........... 3,487
---------
Net investment loss............. (3,487)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 947
Net unrealized gain............... 33,801
---------
Net realized and unrealized gain
on investments................. 34,748
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 31,261
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JUNE 2, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (3,487)
Net realized gain............................................................... 947
Net unrealized gain............................................................. 33,801
---------
Net increase from operations.................................................. 31,261
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 1,060,357
Participant transfers........................................................... 120,303
Participant withdrawals......................................................... (2,707)
---------
Net increase from participant transactions.................................... 1,177,953
---------
Total increase in net assets................................................ 1,209,214
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $1,209,214
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 78,344
Participant transfers........................................................... 8,865
Participant withdrawals......................................................... (185)
---------
Net increase in units from participant transactions........................... 87,024
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
2
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Alger American
Fund-Alger American MidCap Growth
Portfolio at value............... $2,038,525
Receivable from Connecticut
General Life Insurance Company... 39,873
---------
Total assets.................... 2,078,398
---------
LIABILITIES:
Payable for fund shares
purchased........................ 39,873
---------
Net assets...................... $2,038,525
---------
---------
Accumulation units outstanding.... 155,535
Net asset value per accumulation
unit............................. $13.106537
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges**......... 5,589
---------
Net investment loss............. (5,589)
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain................. 1,696
Net unrealized loss............... (36,557)
---------
Net realized and unrealized loss
on investments................. (34,861)
---------
DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ (40,450)
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (5,589)
Net realized gain............................................................... 1,696
Net unrealized loss............................................................. (36,557)
---------
Net decrease from operations.................................................. (40,450)
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 1,501,932
Participant transfers........................................................... 580,520
Participant withdrawals......................................................... (3,477)
---------
Net increase from participant transactions.................................... 2,078,975
---------
Total increase in net assets................................................ 2,038,525
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $2,038,525
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 119,409
Participant transfers........................................................... 36,391
Participant withdrawals......................................................... (265)
---------
Net increase in units from participant transactions........................... 155,535
---------
---------
</TABLE>
* Date deposits first received.
**Reduced by $5 due to the waiver of 1.20% mortality and expense risk charge
from April 10, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
3
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31,1995
ASSETS:
Investment in Alger American
Fund-Alger American Small
Capitalization Portfolio at
value............................ $3,271,500
Receivable from Connecticut
General Life Insurance Company... 95,998
---------
Total assets.................... 3,367,498
---------
LIABILITIES:
Payable for fund shares
purchased........................ 95,998
---------
Net assets...................... $3,271,500
---------
---------
Accumulation units outstanding.... 249,882
Net asset value per accumulation
unit............................. $13.092181
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges**......... 8,458
---------
Net investment loss............. (8,458)
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain................. 1,901
Net unrealized loss............... (95,387)
---------
Net realized and unrealized loss
on investments................. (93,486)
---------
DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $(101,944)
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (8,458)
Net realized gain............................................................... 1,901
Net unrealized loss............................................................. (95,387)
---------
Net decrease from operations.................................................. (101,944)
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 2,657,000
Participant transfers........................................................... 720,359
Participant withdrawals......................................................... (3,915)
---------
Net increase from participant transactions.................................... 3,373,444
---------
Total increase in net assets................................................ 3,271,500
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $3,271,500
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 197,891
Participant transfers........................................................... 52,277
Participant withdrawals......................................................... (286)
---------
Net increase in units from participant transactions........................... 249,882
---------
---------
</TABLE>
* Date deposits first received.
**Reduced by $5 due to the waiver of 1.20% mortality and expense risk charge
from April 10, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
4
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
FIDELITY EQUITY-INCOME PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund-Equity-Income
Portfolio at value............... $6,546,342
Receivable from Connecticut
General Life Insurance Company... 26,900
---------
Total assets.................... 6,573,242
---------
LIABILITIES:
Payable for fund shares
purchased........................ 26,900
---------
Net assets...................... $6,546,342
---------
---------
Accumulation units outstanding.... 539,741
Net asset value per accumulation
unit............................. $12.128673
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ 35,697
EXPENSES:
Mortality and expense risk and
administrative charges**......... 13,509
---------
Net investment income........... 22,188
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 1,932
Net unrealized gain............... 268,841
---------
Net realized and unrealized gain
on investments................. 270,773
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 292,961
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 22,188
Net realized gain............................................................... 1,932
Net unrealized gain............................................................. 268,841
---------
Net increase from operations.................................................. 292,961
---------
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 4,631,355
Participant transfers........................................................... 1,625,177
Participant withdrawals......................................................... (3,151)
---------
Net increase from participant transactions.................................... 6,253,381
---------
Total increase in net assets................................................ 6,546,342
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $6,546,342
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 397,069
Participant transfers........................................................... 142,943
Participant withdrawals......................................................... (271)
---------
Net increase in units from participant transactions........................... 539,741
---------
---------
</TABLE>
* Date deposits first received.
**Reduced by $12 due to the waiver of 1.20% mortality and expense risk charge
from April 10, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
5
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
FIDELITY MONEY MARKET PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund-Money Market
Portfolio at value.............. $6,975,643
Receivable from Connecticut
General Life Insurance
Company......................... 65,479
----------
Total assets................... 7,041,122
----------
LIABILITIES:
Payable for fund shares
purchased....................... 65,479
----------
Total liabilities.............. 65,479
----------
Net assets..................... $6,975,643
----------
----------
Accumulation units outstanding... 680,856
Net asset value per accumulation
unit............................ $10.245402
STATEMENT OF OPERATIONS
PERIOD FROM JUNE 8, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends........................ $ 194,306
EXPENSES:
Mortality and expense risk and
administrative charges.......... 44,868
----------
Net investment income.......... 149,438
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................ --
Net unrealized gain.............. --
----------
Net realized and unrealized
gain on investments........... --
----------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................. 149,438
----------
----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JUNE 8, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 149,438
----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 18,278,638
Participant transfers........................................................... (11,136,841)
Participant withdrawals......................................................... (315,592)
----------
Net increase from participant transactions.................................... 6,826,205
----------
Total increase in net assets................................................ 6,975,643
----------
NET ASSETS:
Beginning of period............................................................. --
----------
End of period................................................................... $6,975,643
----------
----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 2,022,159
Participant transfers........................................................... (1,288,028)
Participant withdrawals......................................................... (53,275)
----------
Net increase in units from participant transactions........................... 680,856
----------
----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
6
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
FIDELITY ASSET MANAGER PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund II-Asset Manager
Portfolio at value............... $ 703,613
Receivable from Connecticut
General Life Insurance Company... 14,348
---------
Total assets.................... 717,961
---------
LIABILITIES:
Payable for fund shares
purchased........................ 14,348
---------
Net assets...................... $ 703,613
---------
---------
Accumulation units outstanding.... 62,375
Net asset value per accumulation
unit............................. $11.280365
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges**......... 1,848
---------
Net investment loss............. (1,848)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 9
Net unrealized gain............... 26,341
---------
Net realized and unrealized gain
on investments................. 26,350
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 24,502
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (1,848)
Net realized gain............................................................... 9
Net unrealized gain............................................................. 26,341
---------
Net increase from operations.................................................. 24,502
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 392,841
Participant transfers........................................................... 286,354
Participant withdrawals......................................................... (84)
---------
Net increase from participant transactions.................................... 679,111
---------
Total increase in net assets................................................ 703,613
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 703,613
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 37,964
Participant transfers........................................................... 24,419
Participant withdrawals......................................................... (8)
---------
Net increase in units from participant transactions........................... 62,375
---------
---------
</TABLE>
* Date deposits first received.
**Reduced by $17 due to the waiver of 1.20% mortality and expense risk charge
from April 12, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
7
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
FIDELITY INVESTMENT GRADE BOND PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31,1995
ASSETS:
Investment in Variable Insurance
Products Fund II-Investment Grade
Bond Portfolio at value.......... $1,521,578
Receivable from Connecticut
General Life Insurance Company... 9,886
---------
Total assets.................... 1,531,464
---------
LIABILITIES:
Payable for fund shares
purchased........................ 9,886
---------
Net assets...................... $1,521,578
---------
---------
Accumulation units outstanding.... 144,347
Net asset value per accumulation
unit............................. $10.541110
STATEMENT OF OPERATIONS
PERIOD FROM JULY 18, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges........... 1,661
---------
Net investment loss............. (1,661)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 195
Net unrealized gain............... 24,098
---------
Net realized and unrealized gain
on investments................. 24,293
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 22,632
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JULY 18, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (1,661)
Net realized gain............................................................... 195
Net unrealized gain............................................................. 24,098
---------
Net increase from operations.................................................. 22,632
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits............................................................ 532,583
Participant transfers........................................................... 971,815
Participant withdrawals......................................................... (5,452)
---------
Net increase from participant transactions.................................... 1,498,946
---------
Total increase in net assets................................................ 1,521,578
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $1,521,578
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 54,214
Participant transfers........................................................... 90,676
Participant withdrawals......................................................... (543)
---------
Net increase in units from participant transactions........................... 144,347
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
8
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
MFS TOTAL RETURN SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS Total
Return Series at value....... $ 1,639,416
Receivable from Connecticut
General Life Insurance
Company...................... 22,507
-----------
Total assets................ 1,661,923
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 22,507
-----------
Net assets.................. $ 1,639,416
-----------
-----------
Accumulation units
outstanding.................. 148,985
Net asset value per
accumulation unit............ $ 11.003903
STATEMENT OF OPERATIONS
PERIOD FROM JULY 7, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ 31,381
EXPENSES:
Mortality and expense risk
charges and administrative
charges...................... 4,664
-----------
Net investment income....... 26,717
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Capital distribution from
portfolio sponsor............ 29,450
Realized gain on share
transactions................. 2
-----------
Net realized gain........... 29,452
Net unrealized gain......... 33,974
-----------
Net realized and
unrealized gain on
investments.............. 63,426
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 90,143
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JULY 7, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income....................................... $ 26,717
Net realized gain........................................... 29,452
Net unrealized gain......................................... 33,974
-----------
Net increase from operations.............................. 90,143
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 934,440
Participant transfers....................................... 615,736
Participant withdrawals..................................... (903)
-----------
Net increase from participant transactions................ 1,549,273
-----------
Total increase in net assets............................ 1,639,416
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 1,639,416
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 89,900
Participant transfers....................................... 59,168
Participant withdrawals..................................... (83)
-----------
Net increase in units from participant transactions....... 148,985
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
9
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
MFS UTILITIES SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS Utilities
Series at value.............. $ 512,899
Receivable from Connecticut
General Life Insurance
Company...................... 17,411
-----------
Total assets................ 530,310
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 17,411
-----------
Net assets.................. $ 512,899
-----------
-----------
Accumulation units
outstanding.................. 45,129
Net asset value per
accumulation unit............ $ 11.365171
STATEMENT OF OPERATIONS
PERIOD FROM JULY 27, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ 8,337
EXPENSES:
Mortality and expense risk and
administrative charges....... 1,333
-----------
Net investment income....... 7,004
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Capital distribution from
portfolio sponsor............ 19,760
Realized gain on share
transactions................. 78
-----------
Net realized gain........... 19,838
Net unrealized gain......... 7,914
-----------
Net realized and
unrealized gain on
investments.............. 27,752
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 34,756
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JULY 27, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income....................................... $ 7,004
Net realized gain........................................... 19,838
Net unrealized gain......................................... 7,914
-----------
Net increase from operations.............................. 34,756
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 174,285
Participant transfers....................................... 303,858
-----------
Net increase from participant transactions................ 478,143
-----------
Total increase in net assets............................ 512,899
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 512,899
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 16,955
Participant transfers....................................... 28,174
-----------
Net increase in units from participant transactions....... 45,129
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
10
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
MFS WORLD GOVERNMENTS SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS World
Governments Series at value.. $ 342,709
Receivable for fund shares
sold......................... 12
-----------
Total assets................ 342,721
-----------
LIABILITIES:
Payable to Connecticut General
Life Insurance Company....... 12
-----------
Net assets.................. $ 342,709
-----------
-----------
Accumulation units
outstanding.................. 33,344
Net asset value per
accumulation unit............ $ 10.277969
STATEMENT OF OPERATIONS
PERIOD FROM JULY 7, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ 32,346
EXPENSES:
Mortality and expense risk and
administrative charges....... 1,067
-----------
Net investment income....... 31,279
-----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain............. --
Net unrealized loss........... (21,937)
-----------
Net realized and unrealized
loss on investments........ (21,937)
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 9,342
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JULY 7, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income....................................... $ 31,279
Net unrealized loss......................................... (21,937)
-----------
Net increase from operations.............................. 9,342
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 297,436
Participant transfers....................................... 36,136
Participant withdrawals..................................... (205)
-----------
Net increase from participant transactions................ 333,367
-----------
Total increase in net assets............................ 342,709
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 342,709
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 29,898
Participant transfers....................................... 3,466
Participant withdrawals..................................... (20)
-----------
Net increase in units from participant transactions....... 33,344
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
11
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
AMT BALANCED PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Neuberger &
Berman Advisers Management
Trust-Balanced Portfolio at
value........................ $ 877,817
Receivable for fund shares
sold......................... 31
-----------
Total assets................ 877,848
-----------
LIABILITIES:
Payable to Connecticut General
Life Insurance Company....... 31
-----------
Net assets.................. $ 877,817
-----------
-----------
Accumulation units
outstanding.................. 85,477
Net asset value per
accumulation unit............ $ 10.269633
STATEMENT OF OPERATIONS
PERIOD FROM JULY 18, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges....... 2,421
-----------
Net investment loss......... (2,421)
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain............. 1,133
Net unrealized gain........... 408
-----------
Net realized and unrealized
gain on investments........ 1,541
-----------
DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ (880)
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JULY 18, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (2,421)
Net realized gain........................................... 1,133
Net unrealized gain......................................... 408
-----------
Net decrease from operations.............................. (880)
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 716,989
Participant transfers....................................... 163,266
Participant withdrawals..................................... (1,558)
-----------
Net increase from participant transactions................ 878,697
-----------
Total increase in net assets............................ 877,817
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 877,817
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 71,670
Participant transfers....................................... 13,957
Participant withdrawals..................................... (150)
-----------
Net increase in units from participant transactions....... 85,477
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
12
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
AMT LIMITED MATURITY BOND PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Neuberger &
Berman Advisers Management
Trust-Limited Maturity Bond
Portfolio at value........... $ 1,126,880
Receivable for fund shares
sold......................... 40
-----------
Total assets................ 1,126,920
-----------
LIABILITIES:
Payable to Connecticut General
Life Insurance Company....... 40
-----------
Net assets.................. $ 1,126,880
-----------
-----------
Accumulation units
outstanding.................. 106,840
Net asset value per
accumulation unit............ $ 10.547360
STATEMENT OF OPERATIONS
PERIOD FROM MAY 3, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges**..... 3,879
-----------
Net investment loss......... (3,879)
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain............. 27
Net unrealized gain........... 28,898
-----------
Net realized and unrealized
gain on investments........ 28,925
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 25,046
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 3, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (3,879)
Net realized gain........................................... 27
Net unrealized gain......................................... 28,898
-----------
Net increase from operations.............................. 25,046
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 363,173
Participant transfers....................................... 742,806
Participant withdrawals..................................... (4,145)
-----------
Net increase from participant transactions................ 1,101,834
-----------
Total increase in net assets............................ 1,126,880
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 1,126,880
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 35,022
Participant transfers....................................... 72,221
Participant withdrawals..................................... (403)
-----------
Net increase in units from participant transactions....... 106,840
-----------
-----------
</TABLE>
* Date deposits first received.
**Reduced by $7 due to the waiver of 1.20% mortality and expense risk charge
from May 3, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
13
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
AMT PARTNERS PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Neuberger &
Berman Advisers Management
Trust-Partners Portfolio at
value........................ $ 1,523,665
Receivable from Connecticut
General Life Insurance
Company...................... 41,102
-----------
Total assets................ 1,564,767
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 41,102
-----------
Net assets.................. $ 1,523,665
-----------
-----------
Accumulation units
outstanding.................. 125,694
Net asset value per
accumulation unit............ $ 12.122020
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges**..... 3,539
-----------
Net investment loss......... (3,539)
-----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized loss............. (48)
Net unrealized gain........... 54,000
-----------
Net realized and unrealized
gain on investments........ 53,952
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 50,413
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 12, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (3,539)
Net realized loss........................................... (48)
Net unrealized gain......................................... 54,000
-----------
Net increase from operations.............................. 50,413
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 1,246,722
Participant transfers....................................... 229,996
Participant withdrawals..................................... (3,466)
-----------
Net increase from participant transactions................ 1,473,252
-----------
Total increase in net assets............................ 1,523,665
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 1,523,665
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 106,298
Participant transfers....................................... 19,681
Participant withdrawals..................................... (285)
-----------
Net increase in units from participant transactions....... 125,694
-----------
-----------
</TABLE>
* Date deposits first received.
**Reduced by $17 due to the waiver of 1.20% mortality and expense risk charge
from April 12, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
14
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
QUEST GLOBAL EQUITY PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31,1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Global
Equity Portfolio at value.... $ 1,637,869
Receivable from Connecticut
General Life Insurance
Company...................... 42,010
-----------
Total assets................ 1,679,879
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 42,010
-----------
Net assets.................. $ 1,637,869
-----------
-----------
Accumulation units
outstanding.................. 139,287
Net asset value per
accumulation unit............ $ 11.758951
STATEMENT OF OPERATIONS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ 4,543
EXPENSES:
Mortality and expense risk and
administrative charges**..... 3,344
-----------
Net investment income....... 1,199
-----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Capital distribution from
portfolio sponsor............ 31,763
Realized loss on share
transactions................. (2)
-----------
Net realized gain........... 31,761
Net unrealized loss......... (17,464)
-----------
Net realized and
unrealized gain on
investments.............. 14,297
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 15,496
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM APRIL 10, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income....................................... $ 1,199
Net realized loss........................................... 31,761
Net unrealized loss......................................... (17,464)
-----------
Net increase from operations.............................. 15,496
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 917,056
Participant transfers....................................... 705,765
Participant withdrawals..................................... (448)
-----------
Net increase from participant transactions................ 1,622,373
-----------
Total increase in net assets............................ 1,637,869
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 1,637,869
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 79,268
Participant transfers....................................... 60,048
Participant withdrawals..................................... (29)
-----------
Net increase in units from participant transactions....... 139,287
-----------
-----------
</TABLE>
* Date deposits first received.
**Reduced by $5 due to the waiver of 1.20% mortality and expense risk charge
from April 10, 1995 through May 31, 1995.
The Notes to Financial Statements are an integral part of these statements
15
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
QUEST MANAGED PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Managed
Portfolio at value........... $ 5,421,786
Receivable from Connecticut
General Life Insurance
Company...................... 20,502
-----------
Total assets................ 5,442,288
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 20,502
-----------
Net assets.................. $ 5,421,786
-----------
-----------
Accumulation units
outstanding.................. 486,528
Net asset value per
accumulation unit............ $ 11.143831
STATEMENT OF OPERATIONS
PERIOD FROM JUNE 19, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges....... 15,465
-----------
Net investment loss......... (15,465)
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain............. 663
Net unrealized gain........... 234,982
-----------
Net realized and unrealized
gain on investments........ 235,645
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 220,180
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JUNE 19, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (15,465)
Net realized gain........................................... 663
Net unrealized gain......................................... 234,982
-----------
Net increase from operations.............................. 220,180
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 3,661,487
Participant transfers....................................... 1,553,474
Participant withdrawals..................................... (13,355)
-----------
Net increase from participant transactions................ 5,201,606
-----------
Total increase in net assets............................ 5,421,786
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 5,421,786
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 344,364
Participant transfers....................................... 143,046
Participant withdrawals..................................... (882)
-----------
Net increase in units from participant transactions....... 486,528
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
16
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
QUEST SMALL CAP PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Small Cap
Portfolio at value........... $ 629,653
Receivable from Connecticut
General Life Insurance
Company...................... 22,630
-----------
Total assets................ 652,283
-----------
LIABILITIES:
Payable for fund shares
purchased.................... 22,630
-----------
Net assets.................. $ 629,653
-----------
-----------
Accumulation units
outstanding.................. 58,004
Net asset value per
accumulation unit............ $ 10.855343
STATEMENT OF OPERATIONS
PERIOD FROM JUNE 27, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends..................... $ --
EXPENSES:
Mortality and expense risk and
administrative charges....... 1,863
-----------
Net investment loss......... (1,863)
-----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain............. 3
Net unrealized gain........... 16,355
-----------
Net realized and unrealized
gain on investments........ 16,358
-----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $ 14,495
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM JUNE 27, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (1,863)
Net realized gain........................................... 3
Net unrealized gain......................................... 16,355
-----------
Net increase from operations.............................. 14,495
-----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits........................................ 263,145
Participant transfers....................................... 353,852
Participant withdrawals..................................... (1,839)
-----------
Net increase from participant transactions................ 615,158
-----------
Total increase in net assets............................ 629,653
-----------
NET ASSETS:
Beginning of period......................................... --
-----------
End of period............................................... $ 629,653
-----------
-----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 25,109
Participant transfers....................................... 33,069
Participant withdrawals..................................... (174)
-----------
Net increase in units from participant transactions....... 58,004
-----------
-----------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
17
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION
CG Variable Annuity Separate Account II (the Account) is registered as a
Unit Investment Trust under the Investment Company Act of 1940, as amended. The
operations of the Account are part of the operations of Connecticut General Life
Insurance Company (CG Life). The assets and liabilities of the Account are
clearly identified and distinguished from other assets and liabilities of CG
Life. The assets of the Account are not available to meet the general
obligations of CG Life and are held for the exclusive benefit of the
participants.
The assets of the Account are divided into variable sub-accounts each of
which is invested in shares of one of seventeen portfolios (mutual funds) of six
diversified open-end management investment companies, each portfolio with its
own investment objective. The variable sub-accounts are:
<TABLE>
<S> <C>
ALGER AMERICAN FUND: --
Alger American Growth Portfolio
Alger American Leveraged AllCap Portfolio
Alger American MidCap Growth Portfolio
Alger American Small Capitalization Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND: --
Equity-Income Portfolio
Money Market Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II: --
Asset Manager Portfolio
Investment Grade Bond Portfolio
MFS VARIABLE INSURANCE TRUST: --
MFS Total Return Series
MFS Utilities Series
MFS World Governments Series
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST: --
AMT Balanced Portfolio
AMT Limited Maturity Bond Portfolio
AMT Partners Portfolio
QUEST FOR VALUE ACCUMULATION TRUST: --
Quest Global Equity Portfolio
Quest Managed Portfolio
Quest Small Cap Portfolio
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in conformity with generally
accepted accounting principles. The following is a summary of significant
accounting policies consistently followed in the preparation of the Account's
financial statements.
A. INVESTMENT VALUATION: Investments held by the sub-accounts are valued at
their respective closing net asset value per share as determined by the mutual
funds as of December 29, 1995, the last business day of 1995. The change in the
difference between cost and value is reflected as unrealized gain (loss) in the
Statements of Operations.
B. INVESTMENT TRANSACTIONS: Investment transactions are recorded on the trade
date (date the order to buy or sell is executed). Realized gains and losses on
sales of investments are determined by the last-in, first-out cost basis of the
investment sold. Dividend and capital gain distributions are recorded on the
ex-dividend date. Investment transactions are settled through CG Life.
C. FEDERAL INCOME TAXES: The operations of the Account form a part of, and
are taxed with, the total operations of CG Life, which is taxed as a life
insurance company. Under existing federal income tax law, investment income
(dividends) and capital gains attributable to the Account are not taxed.
18
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
3. INVESTMENTS
Total shares held and cost of investments at December 31, 1995 were:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Cost Of
Sub-Account Shares Held Investments
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio.............................................. 123,877 $3,864,385
Alger American Leveraged AllCap Portfolio.................................... 69,375 1,175,413
Alger American MidCap Growth Portfolio....................................... 104,862 2,075,082
Alger American Small Capitalization Portfolio................................ 83,012 3,366,887
Fidelity Equity-Income Portfolio............................................. 339,717 6,277,501
Fidelity Money Market Portfolio.............................................. 6,975,643 6,975,643
Fidelity Asset Manager Portfolio............................................. 44,561 677,272
Fidelity Investment Grade Bond Portfolio..................................... 121,921 1,497,480
MFS Total Return Series...................................................... 133,830 1,605,442
MFS Utilities Series......................................................... 40,803 504,985
MFS World Governments Series................................................. 33,698 364,646
AMT Balanced Portfolio....................................................... 50,104 877,409
AMT Limited Maturity Bond Portfolio.......................................... 76,606 1,097,982
AMT Partners Portfolio....................................................... 115,167 1,469,665
Quest Global Equity Portfolio................................................ 141,074 1,655,333
Quest Managed Portfolio...................................................... 179,887 5,186,804
Quest Small Cap Portfolio.................................................... 31,625 613,298
- --------------------------------------------------------------------------------------------------------
</TABLE>
Total purchases and sales of shares of the mutual funds, for the periods
noted, amounted to:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Account Period Purchases Sales
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alger American Growth Portfolio.................................... April 12, 1995* to December 31, 1995 $ 4,051,329 $ 187,744
Alger American Leveraged AllCap Portfolio.......................... June 2, 1995* to December 31, 1995 1,271,637 97,171
Alger American MidCap Growth Portfolio............................. April 10, 1995* to December 31, 1995 2,220,104 146,718
Alger American Small Capitalization Portfolio...................... April 10, 1995* to December 31, 1995 3,497,358 132,372
Fidelity Equity-Income Portfolio................................... April 10, 1995* to December 31, 1995 6,420,228 144,659
Fidelity Money Market Portfolio.................................... June 8, 1995* to December 31, 1995 18,821,613 11,845,970
Fidelity Asset Manager Portfolio................................... April 12, 1995* to December 31, 1995 678,971 1,708
Fidelity Investment Grade Bond Portfolio........................... July 18, 1995* to December 31, 1995 1,567,761 70,476
MFS Total Return Series............................................ July 7, 1995* to December 31, 1995 1,610,945 5,505
MFS Utilities Series............................................... July 27, 1995* to December 31, 1995 536,559 31,652
MFS World Governments Series....................................... July 7, 1995* to December 31, 1995 365,186 540
AMT Balanced Portfolio............................................. July 18, 1995* to December 31, 1995 1,002,451 126,175
AMT Limited Maturity Bond Portfolio................................ May 3, 1995* to December 31, 1995 1,108,839 10,884
AMT Partners Portfolio............................................. April 12, 1995* to December 31, 1995 1,544,575 74,862
Quest Global Equity Portfolio...................................... April 10, 1995* to December 31, 1995 1,656,131 796
Quest Managed Portfolio............................................ June 19, 1995* to December 31, 1995 5,397,587 211,446
Quest Small Cap Portfolio.......................................... June 27, 1995* to December 31, 1995 650,196 36,901
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Date deposits first received.
4. CHARGES AND DEDUCTIONS
CG Life assumes the risk that annuitants as a class may live longer than
expected and also assumes a mortality risk in connection with the death benefits
of the contract. CG Life also assumes a risk that its actual administrative
expenses may be higher than amounts deducted for such expenses. CG Life charges
each variable sub-account the daily equivalent of 1.20% (approximately .70% for
mortality risks and approximately .50% for expense risks), on an annual basis,
of the current value of each sub-account's assets for the assumption of these
risks; that charge was waived from inception through May 31, 1995.
CG Life also deducts a daily administrative fee from the assets of each
variable sub-account as partial reimbursement for administrative expenses
relating to the issuance and maintenance of the contract and the participant's
annuity account. This charge is currently at an effective annual rate of .10%.
19
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS (CONTINUED)
As partial compensation for administrative services provided, CG Life
additionally receives a $35 annuity account fee per year from each contract.
This charge is deducted from the fixed or variable sub-account of the
participant or on a pro-rata basis from two or more fixed or variable
sub-accounts in relation to their values under the contract. For contracts that
are issued in the state of New York, the annuity account fee is $30 per year.
Fixed sub-accounts are part of the general account of CG Life and are not
included in these financial statements. The annuity account fee will be waived
for any contract year in which the annuity account value equals or exceeds
$100,000 as of the last valuation date of the contract year. Annuity account
fees, for the variable sub-accounts, amounting to $115 were deducted during the
periods covered by these financial statements.
For an additional charge (optional death benefit fee), an optional death
benefit may be selected by the participant. The optional death benefit fee will
be deducted from the participant's fixed or variable sub-account or on a
pro-rata basis from two or more fixed or variable sub-accounts in relation to
their values under the contract on the date of each contract anniversary. For
contracts that are issued in the state of New York, the optional death benefit
is not available. No optional death benefit fees were deducted during the
periods covered by these financial statements.
Under certain circumstances, CG Life reserves the right to charge a transfer
fee of up to $10 for transfers between sub-accounts. No transfer fees were
deducted during the periods covered by these financial statements.
The fees charged by CG Life for mortality and expense risks and
administrative fees, from variable sub-accounts, for the periods noted, amounted
to:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality
and Asset Based
Expense Risk Administrative
Sub-Account Period Fees Fees
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alger American Growth Portfolio............................... April 12, 1995* to December 31, 1995 $ 9,260** $ 774
Alger American Leveraged AllCap Portfolio..................... June 2, 1995* to December 31, 1995 3,218 269
Alger American MidCap Growth Portfolio........................ April 10, 1995* to December 31, 1995 5,159** 430
Alger American Small Capitalization Portfolio................. April 10, 1995* to December 31, 1995 7,807** 651
Fidelity Equity-Income Portfolio.............................. April 10, 1995* to December 31, 1995 12,469** 1,040
Fidelity Money Market Portfolio............................... June 8, 1995* to December 31, 1995 41,417 3,451
Fidelity Asset Manager Portfolio.............................. April 12, 1995* to December 31, 1995 1,705** 143
Fidelity Investment Grade Bond Portfolio...................... July 18, 1995* to December 31, 1995 1,533 128
MFS Total Return Series....................................... July 7, 1995* to December 31, 1995 4,305 359
MFS Utilities Series.......................................... July 27, 1995* to December 31, 1995 1,231 102
MFS World Governments Series.................................. July 7, 1995* to December 31, 1995 985 82
AMT Balanced Portfolio........................................ July 18, 1995* to December 31, 1995 2,235 186
AMT Limited Maturity Bond Portfolio........................... May 3, 1995* to December 31, 1995 3,580** 299
AMT Partners Portfolio........................................ April 12, 1995* to December 31, 1995 3,265** 274
Quest Global Equity Portfolio................................. April 10, 1995* to December 31, 1995 3,087** 257
Quest Managed Portfolio....................................... June 19, 1995* to December 31, 1995 14,275 1,190
Quest Small Cap Portfolio..................................... June 27, 1995* to December 31, 1995 1,720 143
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Date deposits first received.
**Mortality and expense risk charges waived, for the periods noted, amounted to:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and
Expense Risk
Sub-Account Period Fees Waived
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio................................................... April 12, 1995* to May 31, 1995 $27
Alger American MidCap Growth Portfolio............................................ April 10, 1995* to May 31, 1995 5
Alger American Small Capitalization Portfolio..................................... April 10, 1995* to May 31, 1995 5
Fidelity Equity-Income Portfolio.................................................. April 10, 1995* to May 31, 1995 12
Fidelity Asset Manager Portfolio.................................................. April 12, 1995* to May 31, 1995 17
AMT Limited Maturity Bond Portfolio............................................... May 3, 1995* to May 31, 1995 7
AMT Partners Portfolio............................................................ April 12, 1995* to May 31, 1995 17
Quest Global Equity Portfolio..................................................... April 10, 1995* to May 31, 1995 5
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
CG VARIABLE ANNUITY SEPARATE ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS (CONTINUED)
No deduction for sales charges is made from a premium payment. However, if a
cash withdrawal is made, a withdrawal charge (contingent deferred sales charge)
may be assessed by CG Life. The withdrawal charge, if assessed, varies from
0 - 7% depending upon the duration of each contract deposit. The withdrawal
charge is deducted from withdrawal proceeds for full withdrawals and reduces the
remaining account value for partial withdrawals. These charges are paid to CG
Life as reimbursement for services provided. These services include commissions
paid to sales personnel, the costs of preparation of sales literature and other
promotional costs and acquisition expenses. Withdrawal charges paid to CG Life
for the variable sub-accounts, for the periods ended December 31, 1995, amounted
to $2,872.
5. DISTRIBUTION OF NET INCOME
The Account does not expect to declare dividends to participants from
accumulated net income. The accumulated net income is distributed to
participants as part of surrenders, death benefits, transfers to other fixed or
variable sub-accounts or annuity payments in excess of net purchase payments.
6. DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code of 1986
(the Code), a variable annuity contract, other than a contract issued in
connection with certain types of employee benefit plans, will not be treated as
an annuity contract for federal tax purposes for any period for which the
investments of the segregated asset account, on which the contract is based, are
not adequately diversified. The Code provides that the "adequately diversified"
requirement may be met if the underlying investments satisfy either a statutory
safe harbor test or diversification requirements set forth in regulations issued
by the Secretary of the Treasury. CG Life believes, based on assurances from the
mutual funds, that the mutual funds satisfy the requirements of the regulations.
21
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Connecticut General
Life Insurance Company and Participants of the
CG Variable Annuity Separate Account II
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the sub-accounts, Alger
American Fund -- Alger American Growth Portfolio, Alger American Leveraged
AllCap Portfolio, Alger American MidCap Growth Portfolio, and Alger American
Small Capitalization Portfolio; Fidelity Variable Insurance Products Fund --
Fidelity Equity-Income Portfolio and Fidelity Money Market Portfolio; Fidelity
Variable Insurance Products Fund II -- Fidelity Asset Manager Portfolio and
Fidelity Investment Grade Bond Portfolio; MFS Variable Insurance Trust -- MFS
Total Return Series, MFS Utilities Series and MFS World Governments Series;
Neuberger & Berman Advisers Management Trust -- AMT Balanced Portfolio, AMT
Limited Maturity Bond Portfolio and AMT Partners Portfolio; Quest for Value
Accumulation Trust -- Quest Global Equity Portfolio, Quest Managed Portfolio and
Quest Small Cap Portfolio (constituting the CG Variable Annuity Separate Account
II, hereafter referred to as "the Account") at December 31, 1995, and the
results of each of their operations and the changes in each of their net assets
for the periods since inception (as indicated in the financial statements)
through December 31, 1995, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the Account's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
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, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1995 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Hartford, Connecticut
February 26, 1996
22
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
ALGER AMERICAN GROWTH PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Alger American
Fund-Alger American Growth
Portfolio at value............... $ 34,431
---------
Total assets.................... $ 34,431
---------
---------
Accumulation units outstanding.... 2,828
Net asset value per accumulation
unit............................. $12.175146
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 23
---------
Net investment loss............. (23)
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss................. (3)
Net unrealized gain............... 424
---------
Net realized and unrealized gain
on investments................. 421
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 398
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss......................................... $ (23)
Net realized loss........................................... (3)
Net unrealized gain......................................... 424
----------
Net increase from operations.............................. 398
----------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**.................. 3,930
Participant transfers....................................... 30,447
Participant withdrawals..................................... (344)
----------
Net increase from participant transactions................ 34,033
----------
Total increase in net assets............................ 34,431
----------
NET ASSETS:
Beginning of period......................................... --
----------
End of period............................................... $ 34,431
----------
----------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits........................................ 349
Participant transfers....................................... 2,508
Participant withdrawals..................................... (29)
----------
Net increase in units from participant transactions....... 2,828
----------
----------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
1
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments in Alger American
Fund-Alger American Leveraged
AllCap Portfolio at value........ $ 5,670
Receivable from Connecticut
General Life Insurance Company... 1,303
---------
Total assets.................... 6,973
---------
LIABILITIES:
Payable for fund shares
purchased........................ 1,303
---------
Net assets...................... $ 5,670
---------
---------
Accumulation units outstanding.... 384
Net asset value per accumulation
unit............................. $14.765068
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 8
---------
Net investment loss............. (8)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 12
Net unrealized gain............... 839
---------
Net realized and unrealized gain
on investments................. 851
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 843
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (8)
Net realized gain............................................................... 12
Net unrealized gain............................................................. 839
---------
Net increase from operations.................................................. 843
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 3,178
Participant transfers........................................................... 1,857
Participant withdrawals......................................................... (208)
---------
Net increase from participant transactions.................................... 4,827
---------
Total increase in net assets................................................ 5,670
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 5,670
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 268
Participant transfers........................................................... 131
Participant withdrawals......................................................... (15)
---------
Net increase in units from participant transactions........................... 384
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
2
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Alger American
Fund-Alger American MidCap Growth
Portfolio at value............... $ 12,863
---------
Total assets.................... $ 12,863
---------
---------
Accumulation units outstanding.... 992
Net asset value per accumulation
unit............................. $12.966604
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 13
---------
Net investment loss............. (13)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 1
Net unrealized gain............... 498
---------
Net realized and unrealized gain
on investments................. 499
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 486
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (13)
Net realized gain............................................................... 1
Net unrealized gain............................................................. 498
---------
Net increase from operations.................................................. 486
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 3,910
Participant transfers........................................................... 8,745
Participant withdrawals......................................................... (278)
---------
Net increase from participant transactions.................................... 12,377
---------
Total increase in net assets................................................ 12,863
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 12,863
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 336
Participant transfers........................................................... 678
Participant withdrawals......................................................... (22)
---------
Net increase in units from participant transactions........................... 992
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
3
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Alger American
Fund-Alger American Small
Capitalization Portfolio at
value............................ $ 59,242
Receivable from Connecticut
General Life Insurance Company... 1,084
---------
Total assets.................... 60,326
---------
LIABILITIES:
Payable for fund shares
purchased........................ 1,084
---------
Net assets...................... $ 59,242
---------
---------
Accumulation units outstanding.... 4,612
Net asset value per accumulation
unit............................. $12.845183
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 52
---------
Net investment loss............. (52)
---------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss................. (15)
Net unrealized loss............... (4,213)
---------
Net realized and unrealized loss
on investments................. (4,228)
---------
DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ (4,280)
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (52)
Net realized loss............................................................... (15)
Net unrealized loss............................................................. (4,213)
---------
Net decrease from operations.................................................. (4,280)
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 2,938
Participant transfers........................................................... 61,383
Participant withdrawals......................................................... (799)
---------
Net increase from participant transactions.................................... 63,522
---------
Total increase in net assets................................................ 59,242
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 59,242
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 266
Participant transfers........................................................... 4,408
Participant withdrawals......................................................... (62)
---------
Net increase in units from participant transactions........................... 4,612
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
4
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
FIDELITY EQUITY-INCOME PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund-Equity-Income
Portfolio at value............... $ 56,056
Receivable from Connecticut
General Life Insurance Company... 867
---------
Total assets.................... 56,923
---------
LIABILITIES:
Payable for fund shares
purchased........................ 867
---------
Net assets...................... $ 56,056
---------
---------
Accumulation units outstanding.... 4,683
Net asset value per accumulation
unit............................. $11.970125
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ 502
EXPENSES:
Mortality and expense risk
charges.......................... 63
---------
Net investment income........... 439
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss................. (2)
Net unrealized gain............... 2,857
---------
Net realized and unrealized gain
on investments................. 2,855
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 3,294
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 439
Net realized loss............................................................... (2)
Net unrealized gain............................................................. 2,857
---------
Net increase from operations.................................................. 3,294
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 2,731
Participant transfers........................................................... 50,773
Participant withdrawals......................................................... (742)
---------
Net increase from participant transactions.................................... 52,762
---------
Total increase in net assets................................................ 56,056
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 56,056
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 256
Participant transfers........................................................... 4,492
Participant withdrawals......................................................... (65)
---------
Net increase in units from participant transactions........................... 4,683
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
5
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
FIDELITY ASSET MANAGER PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund II-Asset Manager
Portfolio at value............... $ 24,659
---------
Total assets.................... $ 24,659
---------
---------
Accumulation units outstanding.... 2,350
Net asset value per accumulation
unit............................. $10.493126
STATEMENT OF OPERATIONS
PERIOD FROM NOVEMBER 16, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 9
---------
Net investment loss............. (9)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. --
Net unrealized gain............... 794
---------
Net realized and unrealized gain
on investments................. 794
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 785
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM NOVEMBER 16, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (9)
Net unrealized gain............................................................. 794
---------
Net increase from operations.................................................. 785
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 23,939
Participant withdrawals......................................................... (65)
---------
Net increase from participant transactions.................................... 23,874
---------
Total increase in net assets................................................ 24,659
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 24,659
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 2,356
Participant withdrawals......................................................... (6)
---------
Net increase in units from participant transactions........................... 2,350
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
6
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
FIDELITY INVESTMENT GRADE BOND PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Variable Insurance
Products Fund II-Investment Grade
Bond Portfolio at value.......... $ 37,461
---------
Total assets.................... $ 37,461
---------
---------
Accumulation units outstanding.... 3,667
Net asset value per accumulation
unit............................. $10.215729
STATEMENT OF OPERATIONS
PERIOD FROM NOVEMBER 16, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 14
---------
Net investment loss............. (14)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. --
Net unrealized gain............... 606
---------
Net realized and unrealized gain
on investments................. 606
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 592
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM NOVEMBER 16, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (14)
Net unrealized gain............................................................. 606
---------
Net increase from operations.................................................. 592
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 36,925
Participant withdrawals......................................................... (56)
---------
Net increase from participant transactions.................................... 36,869
---------
Total increase in net assets................................................ 37,461
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 37,461
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 3,672
Participant withdrawals......................................................... (5)
---------
Net increase in units from participant transactions........................... 3,667
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
7
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
MFS TOTAL RETURN SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS Total Return
Series at value.................. $ 8,506
---------
Total assets.................... $ 8,506
---------
---------
Accumulation units outstanding.... 801
Net asset value per accumulation
unit............................. $10.618988
STATEMENT OF OPERATIONS
PERIOD FROM OCTOBER 10, 1995* TO DECEMBER 31,
1995
INVESTMENT INCOME:
Dividends......................... $ 166
EXPENSES:
Mortality and expense risk
charges.......................... 7
---------
Net investment income........... 159
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Capital distribution from
portfolio sponsor................ 156
Realized gain on share
transactions..................... 1
---------
Net realized gain............... 157
Net unrealized gain............. 164
---------
Net realized and unrealized
gain on investments.......... 321
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 480
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM OCTOBER 10, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 159
Net realized gain............................................................... 157
Net unrealized gain............................................................. 164
---------
Increase from operations...................................................... 480
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load........................................ 2,123
Participant transfers........................................................... 5,933
Participant withdrawals......................................................... (30)
---------
Net increase from participant transactions.................................... 8,026
---------
Total increase in net assets................................................ 8,506
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 8,506
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 213
Participant transfers........................................................... 591
Participant withdrawals......................................................... (3)
---------
Net increase in units from participant transactions........................... 801
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
8
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
MFS UTILITIES SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS Utilities
Series at value.................. $ 1,400
---------
Total assets.................... $ 1,400
---------
---------
Accumulation units outstanding.... 139
Net asset value per accumulation
unit............................. $10.070410
STATEMENT OF OPERATIONS
PERIOD FROM DECEMBER 26, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ 25
EXPENSES:
Mortality and expense risk
charges.......................... --
---------
Net investment income........... 25
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distribution from
portfolio sponsor................ 61
Realized gain on share
transactions..................... --
---------
Net realized gain............... 61
Net unrealized loss............. (76)
---------
Net realized and unrealized
loss on investments.......... (15)
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 10
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM DECEMBER 26, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 25
Net realized gain............................................................... 61
Net unrealized loss............................................................. (76)
---------
Net increase from operations.................................................. 10
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 1,390
---------
Total increase in net assets................................................ 1,400
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 1,400
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 139
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
9
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
MFS WORLD GOVERNMENTS SERIES SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in MFS Variable
Insurance Trust-MFS World
Governments Series at value...... $ 20,460
---------
Total assets.................... $ 20,460
---------
---------
Accumulation units outstanding.... 1,964
Net asset value per accumulation
unit............................. $10.417540
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ 1,931
EXPENSES:
Mortality and expense risk
charges.......................... 12
---------
Net investment income........... 1,919
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain................. --
Net unrealized loss............... (1,668)
---------
Net realized and unrealized loss
on investments................. (1,668)
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 251
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 1,919
Net unrealized loss............................................................. (1,668)
---------
Net increase from operations.................................................. 251
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 1,861
Participant transfers........................................................... 18,466
Participant withdrawals......................................................... (118)
---------
Net increase from participant transactions.................................... 20,209
---------
Total increase in net assets................................................ 20,460
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 20,460
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 185
Participant transfers........................................................... 1,791
Participant withdrawals......................................................... (12)
---------
Net increase in units from participant transactions........................... 1,964
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
10
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
AMT BALANCED PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Neuberger & Berman
Advisers Management
Trust-Balanced Portfolio at
value............................ $ 48,410
---------
Total assets.................... $ 48,410
---------
---------
Accumulation units outstanding.... 4,936
Net asset value per accumulation
unit............................. $9.807578
STATEMENT OF OPERATIONS
PERIOD FROM SEPTEMBER 12, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 55
---------
Net investment loss............. (55)
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain................. --
Net unrealized loss............... (621)
---------
Net realized and unrealized loss
on investments................. (621)
---------
DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ (676)
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM SEPTEMBER 12, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (55)
Net unrealized loss............................................................. (621)
---------
Decrease from operations...................................................... (676)
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 49,657
Participant withdrawals......................................................... (571)
---------
Net increase from participant transactions.................................... 49,086
---------
Total increase in net assets................................................ 48,410
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 48,410
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 4,994
Participant withdrawals......................................................... (58)
---------
Net increase in units from participant transactions........................... 4,936
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
11
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
AMT PARTNERS PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Neuberger & Berman
Advisers Management
Trust-Partners Portfolio at
value............................ $ 23,241
Receivable from Connecticut
General Life Insurance Company... 1,085
---------
Total assets.................... 24,326
---------
LIABILITIES:
Payable for fund shares
purchased........................ 1,085
---------
Net assets...................... $ 23,241
---------
---------
Accumulation units outstanding.... 1,924
Net asset value per accumulation
unit............................. $12.079554
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 15
---------
Net investment loss............. (15)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 8
Net unrealized gain............... 857
---------
Net realized and unrealized gain
on investments................. 865
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 850
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (15)
Net realized gain............................................................... 8
Net unrealized gain............................................................. 857
---------
Net increase from operations.................................................. 850
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 2,943
Participant transfers........................................................... 19,642
Participant withdrawals......................................................... (194)
---------
Net increase from participant transactions.................................... 22,391
---------
Total increase in net assets................................................ 23,241
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 23,241
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 273
Participant transfers........................................................... 1,668
Participant withdrawals......................................................... (17)
---------
Net increase in units from participant transactions........................... 1,924
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
12
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
QUEST GLOBAL EQUITY PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Global Equity
Portfolio at value............... $ 62,285
---------
Total assets.................... $ 62,285
---------
---------
Accumulation units outstanding.... 6,197
Net asset value per accumulation
unit............................. $10.050817
STATEMENT OF OPERATIONS
PERIOD FROM SEPTEMBER 12, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ 181
EXPENSES:
Mortality and expense risk
charges.......................... 58
---------
Net investment income........... 123
---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distribution from
portfolio sponsor................ 1,262
Realized gain on share
transactions..................... --
---------
Net realized gain............... 1,262
Net unrealized loss............. (981)
---------
Net realized and unrealized
gain on investments.......... 281
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 404
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM SEPTEMBER 12, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment income........................................................... $ 123
Net realized gain............................................................... 1,262
Net unrealized loss............................................................. (981)
---------
Net increase from operations.................................................. 404
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 62,563
Participant withdrawals......................................................... (682)
---------
Net increase from participant transactions.................................... 61,881
---------
Total increase in net assets................................................ 62,285
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 62,285
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 6,245
Participant withdrawals......................................................... (48)
---------
Net increase in units from participant transactions........................... 6,197
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
13
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
QUEST MANAGED PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Managed
Portfolio at value............... $ 3,320
---------
Total assets.................... $ 3,320
---------
---------
Accumulation units outstanding.... 271
Net asset value per accumulation
unit............................. $12.250674
STATEMENT OF OPERATIONS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 7
---------
Net investment loss............. (7)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 3
Net unrealized gain............... 413
---------
Net realized and unrealized gain
on investments................. 416
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 409
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM MAY 5, 1995* TO DECEMBER 31, 1995
OPERATIONS:
Net investment loss............................................................. $ (7)
Net realized gain............................................................... 3
Net unrealized gain............................................................. 413
---------
Net increase from operations.................................................. 409
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits net of premium load**...................................... 1,867
Participant transfers........................................................... 1,268
Participant withdrawals......................................................... (224)
---------
Net increase from participant transactions.................................... 2,911
---------
Total increase in net assets................................................ 3,320
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 3,320
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant deposits............................................................ 182
Participant transfers........................................................... 108
Participant withdrawals......................................................... (19)
---------
Net increase in units from participant transactions........................... 271
---------
---------
</TABLE>
* Date deposits first received.
**Premium load reduced by $22 due to waiver of 1.15% of premium load from May 5,
1995 through August 1, 1995.
The Notes to Financial Statements are an integral part of these statements
14
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
QUEST SMALL CAP PORTFOLIO SUB-ACCOUNT
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investment in Quest for Value
Accumulation Trust-Small Cap
Portfolio at value............... $ 4,145
---------
Total assets.................... $ 4,145
---------
---------
Accumulation units outstanding.... 405
Net asset value per accumulation
unit............................. $10.235194
STATEMENT OF OPERATIONS
PERIOD FROM SEPTEMBER 26, 1995* TO DECEMBER
31, 1995
INVESTMENT INCOME:
Dividends......................... $ --
EXPENSES:
Mortality and expense risk
charges.......................... 3
---------
Net investment loss............. (3)
---------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain................. 1
Net unrealized gain............... 186
---------
Net realized and unrealized gain
on investments................. 187
---------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................. $ 184
---------
---------
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM SEPTEMBER 26, 1995* TO DECEMBER 31, 1995
OPERATIONS
Net investment loss............................................................. $ (3)
Net realized gain............................................................... 1
Net unrealized gain............................................................. 186
---------
Net increase from operations.................................................. 184
---------
ACCUMULATION UNIT TRANSACTIONS:
Participant transfers........................................................... 4,095
Participant withdrawals......................................................... (134)
---------
Net increase from participant transactions.................................... 3,961
---------
Total increase in net assets................................................ 4,145
---------
NET ASSETS:
Beginning of period............................................................. --
---------
End of period................................................................... $ 4,145
---------
---------
PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS):
Participant transfers........................................................... 419
Participant withdrawals......................................................... (14)
---------
Net increase in units from participant transactions........................... 405
---------
---------
</TABLE>
* Date deposits first received.
The Notes to Financial Statements are an integral part of these statements
15
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION
CG Variable Life Insurance Separate Account I (the Account) is registered as
a Unit Investment Trust under the Investment Company Act of 1940, as amended.
The operations of the Account are part of the operations of Connecticut General
Life Insurance Company (CG Life). The assets and liabilities of the Account are
clearly identified and distinguished from other assets and liabilities of CG
Life. The assets of the Account are not available to meet the general
obligations of CG Life and are held for the exclusive benefit of the
participants.
The assets of the Account are divided into variable sub-accounts each of
which is invested in shares of one of sixteen portfolios (mutual funds) of six
diversified open-end management investment companies, each portfolio with its
own investment objective. The variable sub-accounts are:
<TABLE>
<S> <C>
ALGER AMERICAN FUND: --
Alger American Growth Portfolio
Alger American Leveraged AllCap Portfolio
Alger American MidCap Growth Portfolio
Alger American Small Capitalization Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND: --
Equity-Income Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II: --
Asset Manager Portfolio
Investment Grade Bond Portfolio
MFS VARIABLE INSURANCE TRUST: --
MFS Total Return Series
MFS Utilities Series
MFS World Governments Series
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST: --
AMT Balanced Portfolio
AMT Limited Maturity Bond Portfolio*
AMT Partners Portfolio
QUEST FOR VALUE ACCUMULATION TRUST: --
Quest Global Equity Portfolio
Quest Managed Portfolio
Quest Small Cap Portfolio
</TABLE>
* Not active. As of December 31, 1995, deposits not received.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in conformity with generally
accepted accounting principles. The following is a summary of significant
accounting policies consistently followed in the preparation of the Account's
financial statements.
A. INVESTMENT VALUATION: Investments held by the sub-accounts are valued at
their respective closing net asset values per share as determined by the mutual
funds as of December 29, 1995, the last business day of 1995. The change in the
difference between cost and value is reflected as unrealized gain (loss) in the
Statements of Operations.
B. INVESTMENT TRANSACTIONS: Investment transactions are recorded on the trade
date (date the order to buy or sell is executed). Realized gains and losses on
sales of investments are determined by the last-in, first-out cost basis of the
investment sold. Dividend and capital gain distributions are recorded on the
ex-dividend date. Investment transactions are settled through CG Life.
C. FEDERAL INCOME TAXES: The operations of the Account form a part of, and
are taxed with, the total operations of CG Life, which is taxed as a life
insurance company. Under existing federal income tax law, investment income
(dividends) and capital gains attributable to the Account are not taxed.
16
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
3. INVESTMENTS
Total shares held and cost of investments at December 31, 1995 were:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Cost Of
Sub-Account Shares Held Investments
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio.............................................. 1,105 $ 34,007
Alger American Leveraged AllCap Portfolio.................................... 325 4,831
Alger American MidCap Growth Portfolio....................................... 662 12,365
Alger American Small Capitalization Portfolio................................ 1,503 63,455
Fidelity Equity-Income Portfolio............................................. 2,909 53,199
Fidelity Asset Manager Portfolio............................................. 1,562 23,865
Fidelity Investment Grade Bond Portfolio..................................... 3,002 36,855
MFS Total Return Series...................................................... 694 8,342
MFS Utilities Series......................................................... 111 1,476
MFS World Governments Series................................................. 2,012 22,128
AMT Balanced Portfolio....................................................... 2,763 49,031
AMT Partners Portfolio....................................................... 1,757 22,384
Quest Global Equity Portfolio................................................ 5,365 63,266
Quest Managed Portfolio...................................................... 110 2,907
Quest Small Cap Portfolio.................................................... 208 3,959
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Total purchases and sales of shares of each mutual fund, for the periods
noted, amounted to:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Sub-Account Period Purchases Sales
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alger American Growth Portfolio.......... May 5, 1995** to December 31, 1995 $ 34,242 $ 232
Alger American Leveraged AllCap
Portfolio............................... May 5, 1995** to December 31, 1995 6,237 1,418
Alger American MidCap Growth Portfolio... May 5, 1995** to December 31, 1995 12,557 193
Alger American Small Capitalization
Portfolio............................... May 5, 1995** to December 31, 1995 64,932 1,462
Fidelity Equity-Income Portfolio......... May 5, 1995** to December 31, 1995 54,496 1,295
November 16, 1995** to December 31,
Fidelity Asset Manager Portfolio......... 1995 23,886 21
Fidelity Investment Grade Bond November 16, 1995** to December 31,
Portfolio............................... 1995 36,878 23
MFS Total Return Series.................. October 10, 1995** to December 31, 1995 8,375 34
December 26, 1995** to December 31,
MFS Utilities Series..................... 1995 1,476 --
MFS World Governments Series............. May 5, 1995** to December 31, 1995 22,232 104
September 12, 1995** to December 31,
AMT Balanced Portfolio................... 1995 49,357 326
AMT Partners Portfolio................... May 5, 1995** to December 31, 1995 23,600 1,224
September 12, 1995** to December 31,
Quest Global Equity Portfolio............ 1995 63,665 399
Quest Managed Portfolio.................. May 5, 1995** to December 31, 1995 3,059 155
September 26, 1995** to December 31,
Quest Small Cap Portfolio................ 1995 4,083 125
- ----------------------------------------------------------------------------------------------------------
</TABLE>
**Date deposits first received.
4. CHARGES AND DEDUCTIONS
CG Life charges each variable sub-account, for mortality and expense risks,
a daily deduction, equivalent to .45% per year during the first ten policy years
and .25% per year thereafter. The mortality and expense risk charges, for each
sub-account, are reported on the Statements of Operations.
CG Life deducts a premium load of 3.5% of each premium payment to cover
state taxes and federal income tax liabilities. From inception through August 1,
1995, CG Life deducted only 2.35%, from each premium payment, as premium load.
CG Life charges a monthly administrative fee of $15 in the first policy year
and $5 in subsequent policy years. This charge is for items such as premium
billing and collection, policy value calculation, confirmations and periodic
reports.
CG Life charges a monthly deduction for the cost of insurance and any
charges for supplemental riders. The cost of insurance charge depends on the
attained age, risk classification, gender classification (in accordance with
state law) and the current net amount at risk. On a monthly basis, the
administrative fee and the cost of insurance charge are deducted proportionately
from the value of each variable sub-account and/or the fixed account funding
option. The fixed account is part of the general account of CG Life and is not
included in these financial statements.
17
<PAGE>
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS (CONTINUED)
The fees charged by CG Life for premium loads (deducted from premium
payments), administrative fees and the amount deducted for the cost of
insurance, both of which are included in participant withdrawals, for variable
sub-accounts for the periods noted, amounted to:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Cost of
Premium Administrative Insurance
Sub-Account Period Loads Fees Deduction
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alger American Growth
Portfolio................ May 5, 1995** to December 31, 1995 $119*** $54 $290
Alger American Leveraged
AllCap Portfolio......... May 5, 1995** to December 31, 1995 92*** 27 170
Alger American MidCap
Growth Portfolio......... May 5, 1995** to December 31, 1995 119*** 43 235
Alger American Small
Capitalization
Portfolio................ May 5, 1995** to December 31, 1995 84*** 55 744
Fidelity Equity-Income
Portfolio................ May 5, 1995** to December 31, 1995 76*** 47 695
Fidelity Asset Manager
Portfolio................ November 16, 1995** to December 31, 1995 9 55
Fidelity Investment Grade
Bond Portfolio........... November 16, 1995** to December 31, 1995 6 49
MFS Total Return Series... October 10, 1995** to December 31, 1995 77 15 15
MFS World Governments
Series................... May 5, 1995** to December 31, 1995 44*** 14 104
AMT Balanced Portfolio.... September 12, 1995** to December 31, 1995 26 545
AMT Partners Portfolio.... May 5, 1995** to December 31, 1995 84*** 26 168
Quest Global Equity
Portfolio................ September 12, 1995** to December 31, 1995 33 649
Quest Managed Portfolio... May 5, 1995** to December 31, 1995 44*** 27 197
Quest Small Cap
Portfolio................ September 26, 1995** to December 31, 1995 19 115
- -----------------------------------------------------------------------------------------------------------
</TABLE>
** Date deposits first received.
***Premium load charges of $22 for each variable sub-account totalling $176 were
waived, from May 5, 1995** to August 1, 1995.
CG Life, upon full surrender of a policy, may charge a surrender charge.
This charge is in part a deferred sales charge and in part a recovery of certain
first year administrative costs. The amount of the surrender charge, if any,
will depend on the amount of the death benefit, the amount of premium payments
made during the first two policy years and the age of the policy. In no event
will the surrender charge exceed the maximum allowed by state or federal law. No
surrender charge is imposed on a partial surrender, but an administrative fee of
$25 is imposed, allocated pro-rata among the variable sub-accounts (and, where
applicable, the fixed account) from which the partial surrender proceeds are
taken. No full surrender charges or partial surrender administrative charges
were paid to CG Life, attributable to the variable sub-accounts, for the periods
ended December 31, 1995.
5. DISTRIBUTION OF NET INCOME
The Account does not expect to declare dividends to participants from
accumulated net income. The accumulated net income is distributed to
participants as part of death benefits, surrenders, and transfers to other fixed
or variable sub-accounts.
6. DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code of 1986
(the Code), a variable life insurance policy will not be treated as life
insurance under Section 7702 of the Code for any period for which the
investments of the segregated asset account, on which the policy is based, are
not adequately diversified. The Code provides that the "adequately diversified"
requirement may be met if the underlying investments satisfy either a statutory
safe harbor test or diversification requirements set forth in regulations issued
by the Secretary of Treasury. CG Life believes, based on assurances from the
mutual funds, that the mutual funds satisfy the requirements of the regulations.
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Connecticut General
Life Insurance Company and Participants of the
CG Variable Life Insurance Separate Account I
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the sub-accounts, Alger
American Fund -- Alger American Growth Portfolio, Alger American Leveraged
AllCap Portfolio, Alger American MidCap Growth Portfolio, and Alger American
Small Capitalization Portfolio; Fidelity Variable Insurance Products Fund --
Fidelity Equity-Income Portfolio; Fidelity Variable Insurance Products Fund II
- -- Fidelity Asset Manager Portfolio and Fidelity Investment Grade Bond
Portfolio; MFS Variable Insurance Trust -- MFS Total Return Series, MFS
Utilities Series and MFS World Government Series; Neuberger & Berman Advisers
Management Trust -- AMT Balanced Portfolio and AMT Partners Portfolio; Quest for
Value Accumulation Trust -- Quest Global Equity Portfolio, Quest Managed
Portfolio and Quest Small Cap Portfolio (constituting the CG Variable Life
Insurance Separate Account I, hereafter referred to as "the Account") at
December 31, 1995, and the results of each of their operations and the changes
in each of their net assets for the periods since inception (as indicated in the
financial statements) through December 31, 1995, in conformity with generally
accepted accounting priniciples. These financial statements are the
responsibility of the Account's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which 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, assessing the
accounting priniciples used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
Hartford, Connecticut
February 26, 1996
19
<PAGE>
The mutual fund annual reports are incorporated herein by reference. Each of
them has been electronically filed with the Securities and Exchange
Commission in connection with the named entity's status as a registered
investment company under the Investment Company Act of 1940:
1. The Alger American Fund Annual Report, December 31, 1995, consisting of 30
partially numbered pages. Filed: February 29, 1996, Form Type N-30D,
Registration Statement 811-5550
2. Variable Insurance Products Fund Annual Report, December 31, 1995,
consisting of 51 partially numbered pages. Filed: February 15, 1996, Form
Type N-30D, Registration Statement 811-3329
and
Variable Insurance Products Fund II Annual Report, December 31,
1995, consisting of 55 partially numbered pages. Filed February 15, 1996,
Form Type N-30D, Registration Statement 811-05511
3. MFS - Registered Trademark - Variable Insurance Trust
3(a) MFS - Registered Trademark - Total Return Series Annual
Report, December 31, 1995, consisting of 19 partially numbered
pages
3(b) MFS - Registered Trademark - Utilities Series Annual
Report, December 31, 1995, consisting of 19 partially numbered
pages
3(c) MFS - Registered Trademark - World Governments Series Annual
Report, December 31, 1995, consisting of 19 partially numbered
pages
Filed March 8, 1996, Form Type N-30D, Registration Statement 811-8326
4. Neuberger&Berman Advisers Management Trust
4(a) Balanced Portfolio Annual Report, December 31, 1995,
consisting of 25 partially numbered pages
4(b) Maturity Bond Portfolio Annual Report, December 31, 1995,
consisting of 23 partially numbered pages
4(c) Partners Portfolio Annual Report, December 31, 1995,
consisting of 24 partially numbered pages
Filed February 28, 1996, Form Type N-30D, Registration Statement 811-04255
5. Quest for Value Accumulation Trust Annual Report, December 31, 1995,
consisting of 41 unnumbered pages. Filed February 27, 1996, Form Type N-30D,
Registration Statement 811-8512
<PAGE>
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