[COVER]
Annual
Report
DECEMBER 31, 1995
FIRST CITICORP
LIFE INSURANCE COMPANY
LANDMARK((SM)) VIP FUNDS
MFS((R)) VARIABLE
INSURANCE TRUST((SM))
AIM VARIABLE INSURANCE
FUNDS, INC.
FIDELITY INVESTMENTS
Remember that Annuity products:
(bullet) Are NOT bank deposits or FDIC insured
(bullet) Are NOT obligations of or guaranteed by Citibank or Citicorp
Investment Services
(bullet) Are subject to investment risks, including possible loss of the
principal amount invested
<PAGE>
LETTER TO CONTRACT OWNERS
Dear Contract Owner:
We are pleased to provide you with the results of the funds in your First
Citicorp Life variable annuity. Inside this booklet you'll find the annual
performance of the variable annuity funds as well as informative financial
summaries.
The variable annuity you purchased was developed specifically to meet your
investment needs and help you reach your financial goals. Your satisfaction with
this product is important to us and we welcome any comments or suggestions you
may have regarding our product or service. Please feel free to call at
1-800-497-4855 from 8:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday.
We would like to thank you for the opportunity to be of service to you. We look
forward to continuing in that role as we work together to make your future the
best it can be.
Sincerely,
/S/ LARRY D. WILLIAMS
Larry D. Williams
Senior Vice President
FIRST CITICORP LIFE INSURANCE COMPANY
-------------------------------------
<PAGE>
===============================================================================
TABLE OF CONTENTS
LANDMARK((SM)) VIP FUNDS ............................................... 1
PORTFOLIO OF OBJECTIVES ........................................... 2-3
PORTFOLIO OF INVESTMENTS .......................................... 4-9
FINANCIAL UPDATE .................................................. 10-16
MFS((R)) VARIABLE INSURANCE TRUST((SM)) ................................ 17
MFS((R)) MONEY MARKET SERIES ...................................... 18-30
MFS((R)) WORLD GOVERNMENTS SERIES ................................. 31-50
AIM VARIABLE INSURANCE FUNDS, INC ...................................... 51
AIM V.I. CAPITAL APPRECIATION FUND ................................ 52-65
FIDELITY INVESTMENTS ................................................... 66
VARIABLE INSUANCE PRODUCTS FUND ................................... 67-117
STATEMENT OF NET ASSETS ................................................ 118
STATEMENT OF OPERATIONS ................................................ 119
STATEMENT OF CHANGES IN NET ASSETS ..................................... 120
NOTES TO FINANCIAL STATEMENTS ..........................................121-122
SCHEDULE OF INVESTMENTS ................................................ 123
INDEPENDENT AUDITORS REPORT ............................................ 124
This report may be distributed only to current contract owners or to persons
who have received a current prospectus of the Citicorp Life Insurance Company
Variable Annuity.
<PAGE>
The following documents have been previously filed in EDGAR and are herein
incorporated by reference; financial information can be obtained from the
following:
Landmark Institutional (VIP) Funds
CIK#: 0000878732
Form Type: N-30B-2
File Number: 811-06401
Filing Date: 03/01/96
Assession No.: 0000950156-96-000228
<PAGE>
MFS Variable Insurance Trust
CIK#: 0000918571
Filing Number (Money Market and World Govt. Series): 811-08326
Filing Date: 03/05/96 (Money Market) 03/08/96 (World Govt.)
Assession No.: 0000950156-96-000242 (Money Market)
0000950156-96-000268 (World Govt.)
<PAGE>
AIM Variable Insurance Funds
CIK#: 0000896435
Filing Number: 811-07452
Filing Date: 03/06/96
Assession No.: 0000899243-96-000158
<PAGE>
Fidelity Variable Insurance Products Fund
CIK#: 0000814066
Form Type: N-30D
Filing Number: 1.811-3329
Filing Date: 02/15/96
Re-filed as module: 02/26/96
Accession Number: 0000927384-96-000013
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark A.I.M. V.I. MFS MFS
Landmark Government International Landmark Capital Fidelity Money World
Equity Securities Equity Balanced Appreciation Growth Market Governments
Fund Fund Fund Fund Fund Portfolio Series Series
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at Market Value
(See Schedule of Investments) $746,885 $222,279 $390,287 $711,616 $1,731,795 $1,619,874 $118,935 $265,283
Payable to First Citicorp Life
Insurance Company 485 143 254 468 1,113 1,052 77 169
-------- -------- -------- -------- ---------- ---------- -------- --------
Total Net Assets $746,400 $222,136 $390,033 $711,148 $1,730,682 $1,618,822 $118,858 $265,114
======== ======== ======== ======== ========== ========== ======== ========
Total Net Assets Represented By:
Variable Annuity Cash Value
Invested in Separate
Account 746,400 222,136 390,033 711,148 1,730,682 1,618,822 118,858 265,114
-------- -------- -------- -------- ---------- ---------- -------- --------
Total Net Assets $746,400 $222,136 $390,033 $711,148 $1,730,682 $1,618,822 $118,858 $265,114
======== ======== ======== ======== ========== ========== ======== ========
Total Units Held 649,011 207,248 377,945 640,046 1,345,513 1,237,930 115,908 241,914
Net Unit Value $1.15 $1.07 $1.03 $1.11 $1.29 $1.31 $1.03 $1.10
Cost of Investments $697,010 $214,771 $390,651 $676,333 $1,666,344 $1,586,049 $118,935 $282,166
======== ======== ======== ======== ========== ========== ======== ========
</TABLE>
See Notes to Financial Statements.
118
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
For the Period from March 6, 1995 (Inception) to December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark A.I.M. V.I. MFS MFS
Landmark Government International Landmark Capital Fidelity Money World
Equity Securities Equity Balanced Appreciation Growth Market Governments
Fund Fund Fund Fund Fund Portfolio Series Series
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $7,954 $7,213 $4,819 $13,858 $365 -- $2,873 $24,564
Expenses:
Mortality & Expense Risk Fees 2,782 1,097 1,812 3,140 8,518 $7,953 781 1,291
Daily Administrative Charges 328 130 218 371 989 925 92 154
------- ------- ------ ------- ------- ------- ------ -------
Total Expenses 3,110 1,227 2,030 3,511 9,507 8,878 873 1,445
------- ------- ------ ------- ------- ------- ------ -------
Net Investment
Income (Loss) 4,844 5,986 2,789 10,347 (9,142) (8,878) 2,000 23,119
------- ------- -------- ------- ------- ------- ------ -------
Realized and Unrealized Gain
(Loss) on Investments:
Realized Gain on Sale of
Investments 399 82 373 1,230 15,496 6,321 -- 488
Net Unrealized Gain (Loss)
on Investments 49,875 7,508 (364) 35,283 65,451 33,825 -- (16,883)
------- ------- ------ ------- ------- ------- ------ -------
Net Gain (Loss) on Investments 50,274 7,590 9 36,513 80,947 40,146 -- (16,395)
------- ------- ------ ------- ------- ------- ------ -------
Increase in Net Assets
Resulting from Operations $55,118 $13,576 $2,798 $46,860 $71,805 $31,268 $2,000 $6,724
======= ======= ====== ======= ======= ======= ====== =======
</TABLE>
See Notes to Financial Statements.
119
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
For the Period from March 6, 1995 (Inception) to December 31, 1995
<TABLE>
<CAPTION>
Landmark U.S. Landmark A.I.M. V.I. MFS MFS
Landmark Government International Landmark Capital Fidelity Money World
Equity Securities Equity Balanced Appreciation Growth Market Governments
Fund Fund Fund Fund Fund Portfolio Series Series
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) $4,844 $5,986 $2,789 $10,347 $(9,142) $(8,878) $2,000 $23,119
Realized Gain on Sale of
Investments 399 82 373 1,230 15,496 6,321 -- 488
Change in Unrealized
Appreciation
(Depreciation) of
Investments 49,875 7,508 (364) 35,283 65,451 33,825 -- (16,883)
-------- -------- -------- -------- ---------- ---------- -------- --------
Increase in Net Assets
Resulting from
Operations 55,118 13,576 2,798 46,860 71,805 31,268 2,000 6,724
-------- -------- -------- -------- ---------- ---------- -------- --------
Capital Transactions:
Contract Deposits 687,397 211,010 398,496 661,835 1,733,060 1,567,401 175,629 266,180
Transfers Between Funds 1,553 (1,393) (1,565) 8,693 22,034 31,479 (58,771) (2,030)
Transfers from First Citicorp
Life Insurance Company 3,103 -- 1,000 2,801 9,603 17,277 -- --
Contract Withdrawals (771) (1,057) (10,696) (9,041) (105,820) (28,603) -- (5,760)
-------- -------- -------- -------- ---------- ---------- -------- --------
Increase in Net Assets
Resulting from Capital
Transactions 691,282 208,560 387,235 664,288 1,658,877 1,587,554 116,858 258,390
-------- -------- -------- -------- ---------- ---------- -------- --------
Total Increase in Net Assets 746,400 222,136 390,033 711,148 1,730,682 1,618,822 118,858 265,114
Net Assets, at Beginning of Period -- -- -- -- -- -- -- --
-------- -------- -------- -------- ---------- ---------- -------- --------
Net Assets, at End of Period $746,400 $222,136 $390,033 $711,148 $1,730,682 $1,618,822 $118,858 $265,114
======== ======== ======== ======== ========== ========== ======== ========
</TABLE>
See Notes to Financial Statements.
120
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. History
The First Citicorp Life Insurance Company Variable Annuity Separate Account
(the "Account") is a separate account maintained under the provisions of New
York Insurance Law by First Citicorp Life Insurance Company (the "Company"), a
subsidiary of Citicorp Life Insurance Company. The Account operates as a unit
investment trust registered under the Investment Company Act of 1940, as
amended, and supports the operations of the Company's individual flexible
premium deferred variable annuity contracts (the "contracts"). The Account
invests in Portfolios of the Landmark Variable Insurance Products Funds, the
A.I.M. Variable Insurance Funds, Inc., the Fidelity Variable Insurance Products
Fund, and the M.F.S. Variable Insurance Trust (the "Funds"). The available
Portfolios of the Landmark Variable Insurance Products Funds include the
Landmark Equity Fund, the Landmark U.S. Government Fund, the Landmark
International Equity Fund and the Landmark Balanced Fund. The A.I.M. V.I.
Capital Appreciation Fund of the A.I.M. Variable Insurance Funds, Inc., the
Growth Portfolio of the Fidelity Investments Variable Insurance Products Fund,
the MFS Money Market Series and the MFS World Governments Series of the M.F.S.
Variable Insurance Trust are also available for investment.
The Account had no assets or operations until March 6, 1995, when the initial
investment was made.
The assets of the Account are the property of the Company. The portion of the
Account's assets applicable to the contracts are not chargeable with
liabilities arising out of any other business conducted by the Company.
In addition to the Account, a contract owner may also allocate funds to the
General Account, which is part of the Company's general account. Amounts
allocated to the General Account are credited with a guaranteed rate for one
year. Because of exemptive and exclusionary provisions, interests in the
General Account have not been registered under the Securities Act of 1933 and
the General Account has not been registered as an investment company under the
Investment Company Act of 1940.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Account in preparation of the financial statements in conformity with generally
accepted accounting principles.
A. Investment Valuation -- The investments of the Portfolios within the Account
are stated at market value, which is the net asset value of each of the
respective series as determined at the close of business on the last working
day of the period.
B. Accounting for Investments -- Investment transactions are accounted for on
the trade date. Dividend income is recorded on the ex-dividend date.
C. Federal Income Taxes -- The Company is taxed under federal law as a life
insurance company. The Account is part of the Company's total operations and
is not taxed separately. Under current Federal income tax law, no taxes are
payable on investment income or realized capital gains of the Account
Contractholders.
D. Use of Estimates -- The preparation of financial statements in conformity
with Generally Accepted Accounting Principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and
decrease in net assets from operations during the period. Actual results
could differ from those estimates.
121
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
3. Contract Charges
Daily charges for mortality and expense risks assumed by the Company are
assessed through the daily unit value calculation and are equivalent on an
annual basis to 1.25% of the value of the contracts.
An annual contract fee of $30 is assessed against each contract on its
anniversary date by surrendering units. Daily charges for administrative
expenses are assessed through the daily unit value calculation and are
equivalent on an annual basis to 0.15% of the value of the contracts.
The contracts provide that in the event that a contract owner withdraws all or
a portion of the contract value within five contract years there will be
assessed a deferred sales charge. The deferred sales charge is based on a table
of charges of which the maximum charge is currently 7% of the contract value.
During each contract year, up to 10% of purchase payments less any prior
withdrawal of purchase payments may be withdrawn without a deferred sales
charge.
Premium taxes may be applicable, depending on the laws of various
jurisdictions. Various states and other government entities levy a premium tax
on annuity contracts issued by insurance companies.
4. Purchases and Sales of Investments
For the period ended December 31, 1995, investment activity in the Account was
as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Shares of Purchases from Sales
- --------- --------- ----------
<S> <C> <C>
Landmark Variable Insurance Products Funds:
Landmark Equity Fund $703,333 $6,722
Landmark U.S. Government Fund 219,741 5,052
Landmark International Equity Fund 404,330 14,052
Landmark Balanced Fund 693,896 18,793
A.I.M. Variable Insurance Funds, Inc.:
A.I.M. V.I. Capital Appreciation Fund 1,745,083 94,235
Fidelity Investments Variable Insurance Products Fund:
Growth Portfolio 1,610,347 30,619
M.F.S. Variable Insurance Trust:
MFS Money Market Series 191,969 73,034
MFS World Governments Series 294,749 13,071
</TABLE>
5. Net Increase in Accumulation Units
For the period ended December 31, 1995, transactions in accumulation units of
the Account were as follows:
<TABLE>
<CAPTION>
Landmark U.S. Landmark A.I.M. V.I. MFS MFS
Landmark Government International Landmark Capital Fidelity Money World
Equity Securities Equity Balanced Appreciation Growth Market Governments
Fund Fund Fund Fund Fund Portfolio Series Series
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Purchased 645,474 209,726 388,739 637,592 1,407,226 1,223,339 173,434 249,273
Units Withdrawn (737) (1,009) (10,290) (8,504) (85,419) (21,324) -- (5,455)
Units Transferred Between Funds 4,274 (1,469) (504) 10,958 23,706 35,915 (57,526) (1,904)
------- ------- ------- ------- --------- --------- ------- -------
Net Increase 649,011 207,248 377,945 640,046 1,345,513 1,237,930 115,908 241,914
Units, at Beginning of Period -- -- -- -- -- -- -- --
------- ------- ------- ------- --------- --------- ------- -------
Units, at End of Period 649,011 207,248 377,945 640,046 1,345,513 1,237,930 115,908 241,914
======= ======= ======= ======= ========= ========= ======= =======
</TABLE>
122
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
SCHEDULE OF INVESTMENTS
December 31, 1995
<TABLE>
<CAPTION>
Number Market
of Shares Value Cost
--------- ---------- ----------
<S> <C> <C> <C>
Landmark Variable Insurance Products Funds:
Landmark Equity Fund 64,890 $746,885 $697,010
Landmark U.S. Government Fund 21,210 222,279 214,771
Landmark International Equity Fund 37,855 390,287 390,651
Landmark Balanced Fund 64,575 711,616 676,333
A.I.M Variable Insurance Funds, Inc.:
AI.M. V.I. Capital Appreciation Fund 104,640 1,731,795 1,666,344
Fidelity Variable Products Fund:
Growth Portfolio 55,475 1,619,874 1,586,049
M.F.S. Variable Insurance Trust:
MFS Money Market Series 118,935 118,935 118,935
MFS World Governments Series 26,085 265,283 282,166
</TABLE>
123
<PAGE>
[LOGO - KPMG Peat Marwick LLP]
Independent Auditors' Report
----------------------------
The Board of Directors
Citicorp Life Insurance Company and Policyholders
of Citicorp Life Insurance Company Variable
Annuity Separate Account:
We have audited the accompanying statements of net assets, including the
schedule of investments, of the Landmark Equity Fund, Landmark U.S. Government
Securities Fund, Landmark International Equity Fund, Landmark Balanced Fund,
A.I.M. V.I. Capital Appreciation Fund, Fidelity Growth Portfolio, M.F.S. Money
Market Series, and M.F.s. World Government Series Portfolios of First Citicorp
Life Insurance Company Variable Annuity Separate Account as of December 31,
1995, and related statements of operations and changes in net assets for the
period March 6, 1995 (Inception) to December 31, 1995. These financial
statements are the responsibility of First Citicorp Life Insurance Company
Variable Annuity Separate Account's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments owned at December 31, 1995 by
correspondence with the Landmark Variable Insurance Products Fund, Fidelity
Variable Insurance Products Fund, A.I.M. Variable Insurance Funds, Inc., and
M.F.S. Variable Insurance Trust. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Landmark Equity Fund,
Landmark U.S. Government Securities Fund, Landmark International Equity Fund,
Landmark Balanced Fund, A.I.M. V.I. Capital Appreciation Fund, Fidelity Growth
Portfolio, M.F.S. Money Market Series, and M.F.S. World Government Series
Portfolios of First Citicorp Life Insurance Company Variable Annuity Separate
Account as of December 31, 1995, and the results of their operations and
changes in their net assets for the period March 6, 1995 (Inception) to
December 31, 1995, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
February 16, 1996
124
