March 5, 1998
Please direct all correspondence pertaining to this matter to:
Catherine S. Mulholland, General Counsel, Citicorp Insurance Group,
P.O. Box 7031, Dover DE 19903
Securities and Exchange Commission
450 Fifth St., N.W.
Judiciary Plaza
Washington, DC 29549
RE: First Citicorp Life Variable Annuity Separate Account
'33 Act File #: 33-83354
'40 Act File #: 811-8732
Commissioners:
Pursuant to Rule 30(b)2-1 of the Investment Company Act of 1940, as amended,
attached hereto is a copy of the Annual Report furnished Contract Holders of
variable annuities utilizing the above referenced Separate Account as a basis
for investment purposes. Contained by reference thereto, and furnished Contract
Holders with the Consolidated Report of Experience of the Separate Account will
be the detailed experience of each of the funds which serve as the basis for
funding the Separate Account.
If you have any questions regarding this matter, please contact the undersigned
at (302) 672-5311 or Eric S. Miller at (302) 672-5033.
Sincerely,
/s/ Catherine S. Mulholland
Catherine S. Mulholland
Sr. Vice President and General Counsel
<PAGE>
(FIRST CITICORP LIFE INSURANCE COMPANY LETTERHEAD)
Dear CitiVariable Annuity Contract holder:
We are pleased to present you with the Annual Report of the Separate Account of
First Citicorp Life Insurance Company (First Citicorp Life) for 1997. In this
booklet you will find the financial statements of the First Citicorp Life
separate account and statements of changes in net assets for each of
CitiVariable annuity's investment options, all audited by KPMG Peat Marwick LLP,
independent auditors.
Additionally, you will find individual annual reports for each investment
option, which show investment performance. You will note that those figures do
not reflect the separate account expense of 1.40% reflected in the CitiVariable
Annuity and CitiVariable Annuity Plus performance. Please read this information
carefully.
We are further pleased to be sending you, under separate cover, a letter
announcing a reduction in the separate account expense from 1.40% to 0.99%
annually - due to savings in costs of operations, - a 30% savings, starting
March 2, 1998.
We at First Citicorp Life Insurance Company believe that annuity investors
deserve access to solid investment management. As you know, over the past year,
the markets have been quite active. While many investments experienced
spectacular results, others were very volatile. It is important to remember that
equities are long-term investments and it is not unusual for them to experience
some volatility over the short term. With your annuity, you get solid investment
management with 24 investment choices managed by prominent fund managers - AIM,
Citibank, N.A., Fidelity Investments(R) and MFS(R). If you would like to review
your investment goals and the appropriateness of your investment choices, please
contact your Investment Consultant from Citicorp Investment Services who is also
a First Citicorp Life agent.
We value our relationship with you and are continuously working to provide you
with the kind of service you expect from a Citicorp company. If you have any
questions about the annual report, please call 1-800-497-4857, Monday through
Friday, 8 a.m. to 5 p.m., Eastern Time. First Citicorp Life has the experience
and resources to help you build a lifetime of security for you and your family.
We look forward to serving your retirement needs, now and in the future.
Sincerely,
/s/Alan Liebowitz
Alan Liebowitz
President
CitiVariable Annuity is issued by First Citicorp Life Insurance Company, a
subsidiary of Citibank Delaware, located in NY, NY. This annuity is not
available in all states. Consult your tax advisor for answers to your tax
questions. The designation (sm) indicates a service mark of Citicorp. Please
review the annuity contract for complete details. Policy Number Series:
63-1103(05-94). Calls may be monitored. All named entities above are affiliates
of Citicorp Investment Services, Citibank and Citicorp.
Fidelity Investments is a registered Trademark of FMR Corp.
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Financial Statements and Schedule
December 31, 1997
(With Independent Auditors' Report Thereon)
<PAGE>
Independent Auditors' Report
The Board of Directors
First Citicorp Life Insurance Company and
Policyholders of First Citicorp Life Insurance Company
Variable Annuity Separate Account:
We have audited the accompanying statement of net assets of the AIM V.I. Capital
Appreciation Fund, AIM V.I. Government Series Fund, AIM V.I. Growth Fund, AIM
V.I. Growth and Income Fund, AIM V.I. International Equity Fund, AIM V.I. Value
Fund, CitiSelect VIP Folio 200, CitiSelect VIP Folio 300, CitiSelect VIP Folio
400, CitiSelect VIP Folio 500, Fidelity VIP Equity Income Portfolio, Fidelity
VIP Growth Portfolio, Fidelity VIP High Income Portfolio, Fidelity VIP Overseas
Portfolio, Fidelity VIP II Contrafund Portfolio, Fidelity VIP II Index 500
Portfolio, Landmark Small Cap Equity VIP Fund, Landmark VIP Balanced Fund,
Landmark VIP Equity Fund, Landmark VIP International Equity Fund, Landmark VIP
U.S. Government Fund, MFS Bond Series, MFS Emerging Growth Series, MFS Money
Market Series, MFS Research Series, MFS Total Return Series, and MFS World
Governments Series Portfolios of First Citicorp Life Insurance Company Variable
Annuity Separate Account as of December 31, 1997, and the related statement of
operations for the year then ended and the related statements of changes in net
assets for each of the years in the two-year period ended December 31, 1997.
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, 1997, by correspondence with
the Landmark Variable Insurance Products Fund, A.I.M. Variable Insurance Funds,
Inc., CitiSelect Variable Insurance Products Fund, Fidelity Variable Insurance
Products Fund, and MFS 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 AIM V.I. Capital
Appreciation Fund, AIM V.I. Government Series Fund, AIM V.I. Growth Fund, AIM
V.I. Growth and Income Fund, AIM V.I. International Equity Fund, AIM V.I. Value
Fund, CitiSelect VIP Folio 200, CitiSelect VIP Folio 300, CitiSelect VIP Folio
400, CitiSelect VIP Folio 500, Fidelity VIP Equity Income Portfolio, Fidelity
VIP Growth Portfolio, Fidelity VIP High Income Portfolio, Fidelity VIP Overseas
Portfolio, Fidelity VIP II Contrafund Portfolio, Fidelity VIP II Index 500
Portfolio, Landmark Small Cap Equity VIP Fund, Landmark VIP Balanced Fund,
Landmark VIP Equity Fund, Landmark VIP International Equity Fund, Landmark VIP
U.S. Government Fund, MFS Bond Series, MFS Emerging Growth Series, MFS Money
Market Series,
1
<PAGE>
MFS Research Series, MFS Total Return Series, and MFS World Governments Series
Portfolios of First Citicorp Life Insurance Company Variable Annuity Separate
Account as of December 31, 1997, and the results of their operations for the
year then ended and changes in their net assets for each of the years in the
two-year period ended December 31, 1997, in conformity with generally accepted
accounting principles.
/s/ KPMG Peat Marwick LLP
January 21, 1998
2
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth and International V.I.
Appreciation Series Growth Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $15,704,490 2,742,768 1,947,837 6,175,981 8,423,865 7,148,759
Payable to First Citicorp Life
Insurance Company 9,105 1,619 1,111 3,522 5,053 4,108
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $15,695,385 2,741,149 1,946,726 6,172,459 8,418,812 7,144,651
====================================================================================================================================
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 15,695,385 2,741,149 1,946,726 6,172,459 8,418,812 7,144,651
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $15,695,385 2,741,149 1,946,726 6,172,459 8,418,812 7,144,651
====================================================================================================================================
Total units held by contractholders 9,405,192 2,587,138 1,609,176 5,216,176 8,040,029 6,012,919
Accumulated unit value $ 1.67 1.06 1.21 1.18 1.05 1.19
Cost of investments $14,398,646 2,625,047 1,882,076 5,754,413 8,526,302 6,970,683
====================================================================================================================================
Number of shares 722,046 257,054 98,227 327,291 491,761 343,195
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
3
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $5,524,708 10,730,168 8,228,961 2,552,624 14,319,602 11,685,575
Payable to First Citicorp Life
Insurance Company 3,228 6,355 4,916 1,516 8,383 6,939
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $5,521,480 10,723,813 8,224,045 2,551,108 14,311,219 11,678,636
====================================================================================================================================
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 5,521,480 10,723,813 8,224,045 2,551,108 14,311,219 11,678,636
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $5,521,480 10,723,813 8,224,045 2,551,108 14,311,219 11,678,636
====================================================================================================================================
Total units held by contractholders 5,186,850 9,994,557 7,624,470 2,332,285 11,769,502 6,485,960
Accumulated unit value $ 1.06 1.07 1.08 1.09 1.22 1.80
Cost of investments $5,591,480 10,765,809 8,337,141 2,571,875 12,923,878 10,036,760
====================================================================================================================================
Number of shares 538,996 1,033,735 800,483 243,571 589,769 314,975
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
4
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $5,326,406 4,830,426 8,687,834 21,646,707 898,927 --
Payable to First Citicorp Life
Insurance Company 3,188 2,874 5,000 12,848 528 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $5,323,218 4,827,552 8,682,834 21,633,859 898,399 --
====================================================================================================================================
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 5,323,218 4,827,552 8,682,834 21,633,859 898,399 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $5,323,218 4,827,552 8,682,834 21,633,859 898,399 --
====================================================================================================================================
Total units held by contractholders 4,679,724 4,444,906 7,182,541 17,510,630 811,490 --
Accumulated unit value $ 1.14 1.09 1.21 1.24 1.11 --
Cost of investments $4,961,790 4,847,283 7,928,225 19,421,443 826,481 --
====================================================================================================================================
Number of shares 392,224 251,585 435,699 189,236 80,190 --
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
5
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $ -- -- -- 1,642,900 9,065,128 4,985,377
Payable to First Citicorp Life
Insurance Company -- -- -- 972 5,190 3,135
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ -- -- -- 1,641,928 9,059,938 4,982,242
====================================================================================================================================
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders -- -- -- 1,641,928 9,059,938 4,982,242
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $ -- -- -- 1,641,928 9,059,938 4,982,242
====================================================================================================================================
Total units held by contractholders -- -- -- 1,523,046 7,769,779 4,552,838
Accumulated unit value $ -- -- -- 1.08 1.17 1.09
Cost of investments $ -- -- -- 1,550,537 8,388,361 4,985,377
====================================================================================================================================
Number of shares -- -- -- 148,276 561,656 4,985,377
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
6
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1997
================================================================================
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
Net assets:
Investments at market value $13,077,740 7,039,879 1,989,303
Payable to First Citicorp Life
Insurance Company 7,626 4,198 1,157
- --------------------------------------------------------------------------------
Total net assets $13,070,114 7,035,681 1,988,146
================================================================================
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 13,070,114 7,035,681 1,988,146
- --------------------------------------------------------------------------------
Total net assets represented $13,070,114 7,035,681 1,988,146
================================================================================
Total units held by contractholders 11,348,445 6,044,594 1,814,432
Accumulated unit value $ 1.15 1.16 1.10
Cost of investments $12,136,701 6,509,215 1,987,414
================================================================================
Number of shares 828,229 423,324 194,839
================================================================================
See accompanying notes to financial statements.
7
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth and International V.I.
Appreciation Series Growth Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ 14,490 1,221 7,869 2,954 37,003 58,248
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 132,194 16,269 10,072 32,517 56,181 35,770
Daily administrative charges 15,846 1,934 1,201 3,881 6,636 4,260
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 148,040 18,203 11,273 36,398 62,817 40,030
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (133,550) (16,982) (3,404) (33,444) (25,814) 18,218
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution 186,302 -- 59,371 4,431 130,215 178,829
Realized gain (loss) on sale
of investments 67,813 7,816 10,047 6,523 12,680 4,700
Change in unrealized gain
(loss) on investments 822,678 117,721 65,761 421,568 (102,437) 178,076
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 1,076,793 125,537 135,179 432,522 40,458 361,605
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 943,243 108,555 131,775 399,078 14,644 379,823
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
8
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ 250,133 453,313 464,381 129,349 -- 30,382
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 30,294 64,871 52,018 16,046 79,207 102,048
Daily administrative charges 3,606 7,715 6,166 1,905 9,388 12,136
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 33,900 72,586 58,184 17,951 88,595 114,184
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 216,233 380,727 406,197 111,398 (88,595) (83,802)
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- -- -- -- 135,997
Realized gain (loss) on sale of
investments 8,545 18,121 9,236 14,937 9,181 105,552
(loss) on investments (66,772) (35,641) (108,180) (19,251) 1,395,724 1,414,987
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (58,227) (17,520) (98,944) (4,314) 1,404,905 1,656,536
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 158,006 363,207 307,253 107,084 1,316,310 1,572,734
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
9
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 28,577 28,704 48,067 126,500 6,713 5,449
Daily administrative charges 3,382 3,414 5,699 15,009 797 652
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 31,959 32,118 53,766 141,509 7,510 6,101
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (31,959) (32,118) (53,766) (141,509) (7,510) (6,101)
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- -- -- -- --
Realized gain (loss) on sale of
investments 6,203 5,358 18,069 9,811 1,270 79,524
Change in unrealized gain
(loss) on investments 364,616 (16,857) 759,609 2,225,264 72,446 (45,262)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 370,819 (11,499) 777,678 2,235,075 73,716 34,262
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 338,860 (43,617) 723,912 2,093,566 66,206 28,161
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
10
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ -- -- -- -- -- 185,663
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 6,721 3,179 1,119 9,968 49,306 48,180
Daily administrative charges 800 381 134 1,180 5,892 5,222
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 7,521 3,560 1,253 11,148 55,198 53,402
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (7,521) (3,560) (1,253) (11,148) (55,198) 132,261
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- -- -- -- --
Realized gain (loss) on sale
of investments 189,896 (5,806) (5,558) 2,575 5,351 --
Change in unrealized gain
(loss) on investments (119,553) (11,159) 4,617 92,363 676,767 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 70,343 (16,965) (941) 94,938 682,118 --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 62,822 (20,525) (2,194) 83,790 626,920 132,261
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
11
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
================================================================================
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income - dividends $ -- -- 23,200
- --------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 81,333 39,165 16,290
Daily administrative charges 9,639 4,652 2,011
- --------------------------------------------------------------------------------
Total expenses 90,972 43,817 18,301
- --------------------------------------------------------------------------------
Net investment income (loss) (90,972) (43,817) 4,899
- --------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- --
Realized gain (loss) on sale
of investments 11,753 12,053 (10,296)
Change in unrealized gain
(loss) on investments 941,039 530,664 (1,434)
- --------------------------------------------------------------------------------
Net gain (loss) on investments 952,792 542,717 (11,730)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 861,820 498,900 (6,831)
================================================================================
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth and International V.I.
Appreciation Series Growth Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (133,550) (16,982) (3,404) (33,444) (25,814) 18,218
Realized gain distribution 186,302 -- 59,371 4,431 130,215 178,829
Realized gain (loss) on sale of
investments 67,813 7,816 10,047 6,523 12,680 4,700
Change in unrealized gain
(loss) on investments 822,678 117,721 65,761 421,568 (102,437) 178,076
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 943,243 108,555 131,775 399,078 14,644 379,823
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 9,940,304 2,260,748 1,802,907 5,581,476 7,370,451 6,488,264
Transfers between funds 216,801 346,176 27,448 203,838 1,110,605 333,647
Transfers to (from) First Citicorp
Life Insurance Company 114,768 42,891 (7,092) 63,080 51,049 25,141
Annual administrative charges (2,142) (58) (3) -- (269) --
Death benefits (11,556) -- -- -- -- (6,946)
Contract withdrawals (672,218) (17,163) (8,309) (75,013) (127,668) (75,278)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital transactions 9,585,957 2,632,594 1,814,951 5,773,381 8,404,168 6,764,828
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 10,529,200 2,741,149 1,946,726 6,172,459 8,418,812 7,144,651
Net assets at beginning of period 5,166,185 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $15,695,385 2,741,149 1,946,726 6,172,459 8,418,812 7,144,651
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
13
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ 216,233 380,727 406,197 111,398 (88,595) (83,802)
Realized gain distribution -- -- -- -- -- 135,997
investments 8,545 18,121 9,236 14,937 9,181 105,552
Change in unrealized gain
(loss) on investments (66,772) (35,641) (108,180) (19,251) 1,395,724 1,414,987
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 158,006 363,207 307,253 107,084 1,316,310 1,572,734
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 5,128,387 10,265,501 7,747,348 2,475,907 11,472,280 4,831,520
Transfers between funds 323,043 86,368 314,908 95,484 1,705,440 1,488,863
Transfers to (from) First Citicorp
Life Insurance Company 3,505 67,203 19,890 37,532 30,107 68,267
Annual administrative charges -- -- -- -- (386) (2,499)
Death benefits (11,719) -- -- -- (2,649) (15,402)
Contract withdrawals (79,742) (58,466) (165,354) (164,899) (209,883) (557,761)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital transactions 5,363,474 10,360,606 7,916,792 2,444,024 12,994,909 5,812,988
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 5,521,480 10,723,813 8,224,045 2,551,108 14,311,219 7,385,722
Net assets at beginning of period -- -- -- -- -- 4,292,914
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $5,521,480 10,723,813 8,224,045 2,551,108 14,311,219 11,678,636
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
14
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (31,959) (32,118) (53,766) (141,509) (7,510) (6,101)
Realized gain distribution -- -- -- -- -- --
Realized gain (loss) on sale of
investments 6,203 5,358 18,069 9,811 1,270 79,524
Change in unrealized gain
(loss) on investments 364,616 (16,857) 759,609 2,225,264 72,446 (45,262)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 338,860 (43,617) 723,912 2,093,566 66,206 28,161
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 4,948,945 4,813,053 7,590,086 19,168,900 725,265 159,121
Transfers between funds 68,933 95,129 369,720 446,614 120,304 (1,538,140)
Transfers to (from) First Citicorp
Life Insurance Company 31,649 1,201 43,801 183,713 (1,024) (2,851)
Annual administrative charges -- -- -- (4) -- (238)
Death benefits -- -- -- (2,705) -- --
Contract withdrawals (65,169) (38,214) (44,685) (256,225) (12,352) (50,141)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital transactions 4,984,358 4,871,169 7,958,922 19,540,293 832,193 (1,432,249)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 5,323,218 4,827,552 8,682,834 21,633,859 898,399 (1,404,088)
Net assets at beginning of period -- -- -- -- -- 1,404,088
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $5,323,218 4,827,552 8,682,834 21,633,859 898,399 --
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
15
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (7,521) (3,560) (1,253) (11,148) (55,198) 132,261
Realized gain distribution -- -- -- -- -- --
Realized gain (loss) on sale
of investments 189,896 (5,806) (5,558) 2,575 5,351 --
Change in unrealized gain
(loss) on investments (119,553) (11,159) 4,617 92,363 676,767 --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 62,822 (20,525) (2,194) 83,790 626,920 132,261
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 193,977 63,438 2,400 1,535,323 8,178,715 9,055,694
Transfers between funds (1,848,071) (842,171) (296,004) 24,948 269,433 (4,089,586)
Transfers to (from) Citicorp Life
Insurance Company 846 1,501 (153) 13,198 33,022 (462,915)
Annual administrative charges (145) (101) (3) -- (21) (61)
Death benefits -- -- -- -- -- --
Contract withdrawals (52,070) (66,980) (8,842) (15,331) (48,131) (173,095)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital transactions (1,705,463) (844,313) (302,602) 1,558,138 8,433,018 4,330,037
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,642,641) (864,838) (304,796) 1,641,928 9,059,938 4,462,298
Net assets at beginning of period 1,642,641 864,838 304,796 -- -- 519,944
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ -- -- -- 1,641,928 9,059,938 4,982,242
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
16
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
================================================================================
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (90,972) (43,817) 4,899
Realized gain distribution -- -- --
Realized gain (loss) on sale
of investments 11,753 12,053 (10,296)
Change in unrealized gain
(loss) on investments 941,039 530,664 (1,434)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 861,820 498,900 (6,831)
- --------------------------------------------------------------------------------
Capital transactions:
Contract deposits 11,637,450 6,235,456 1,528,236
Transfers between funds 569,597 337,130 59,542
Transfers to (from) Citicorp Life
Insurance Company 107,946 57,332 (4,080)
Annual administrative charges (7) -- (171)
Death benefits -- -- (3,395)
Contract withdrawals (106,692) (93,137) (110,238)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital transactions 12,208,294 6,536,781 1,469,894
- --------------------------------------------------------------------------------
Total increase (decrease) in net assets 13,070,114 7,035,681 1,463,063
Net assets at beginning of period -- -- 525,083
- --------------------------------------------------------------------------------
Net assets at end of period $13,070,114 7,035,681 1,988,146
================================================================================
17
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1996
<TABLE>
<CAPTION>
====================================================================================================================================
A.I.M. V.I. Fidelity Landmark Landmark Landmark
Capital VIP VIP VIP VIP
Appreciation Growth Balanced Equity International
Fund Portfolio Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (37,886) (34,923) 34,167 14,571 1,929
Realized gain distribution -- 123,383 19,244 26,066 14,556
Realized gain (loss) on sale
of investments 47,770 28,292 14,761 15,916 3,827
Change in unrealized gain
(loss) on investments 417,715 200,003 9,979 69,678 11,523
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 427,599 316,755 78,151 126,231 31,835
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 3,128,453 2,553,418 723,142 814,078 526,463
Transfers between funds 49,024 30,429 (19,445) 26,342 (23,480)
Transfers from First Citicorp
Life Insurance Company 170,820 66,088 7,959 16,494 11,431
Annual administrative charges (1,111) (951) (461) (437) (196)
Contract withdrawals (339,282) (291,647) (96,406) (86,467) (71,248)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting
from capital transactions 3,007,904 2,357,337 614,789 770,010 442,970
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 3,435,503 2,674,092 692,940 896,241 474,805
Net assets at beginning of period 1,730,682 1,618,822 711,148 746,400 390,033
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $5,166,185 4,292,914 1,404,088 1,642,641 864,838
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements. (Continued)
18
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statements of Changes in Net Assets
For the year ended December 31, 1997
================================================================================
Landmark MFS
VIP U.S. Money MFS World
Government Market Governments
Fund Series Series
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ 15,048 3,158 (4,355)
Realized gain distribution -- -- --
Realized gain (loss) on sale
of investments 472 -- (7,002)
Change in unrealized gain
(loss) on investments (12,125) -- 20,206
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 3,395 3,158 8,849
- --------------------------------------------------------------------------------
Capital transactions:
Contract deposits 110,373 479,146 340,827
Transfers between funds 3,789 (31,005) (35,654)
Transfers from First Citicorp
Life Insurance Company -- -- 907
Annual administrative charges (49) (27) (128)
Contract withdrawals (34,848) (50,186) (54,832)
- --------------------------------------------------------------------------------
Increase in net assets resulting
from capital transactions 79,265 397,928 251,120
- --------------------------------------------------------------------------------
Total increase in net assets 82,660 401,086 259,969
Net assets at beginning of period 222,136 118,858 265,114
- --------------------------------------------------------------------------------
Net assets at end of period $304,796 519,944 525,083
================================================================================
See accompanying notes to financial statements.
19
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
December 31, 1997
================================================================================
(1) History
First Citicorp Life Insurance Company Variable Annuity Separate Account
(the Account) is a separate investment 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
following funds:
o Variable Annuity Portfolios:
o CitiSelect VIP Folio 200*,
o CitiSelect VIP Folio 300*,
o CitiSelect VIP Folio 400*,
o CitiSelect VIP Folio 500, and
o Landmark Small Cap Equity VIP Fund.
o Landmark Variable Insurance Products (VIP) Funds:
o Landmark VIP Balanced Fund,
o Landmark VIP Equity Fund,
o Landmark VIP International Equity Fund, and
o Landmark VIP U.S. Government Fund.
o AIM Variable Insurance Funds, Inc.:
o AIM V.I. Capital Appreciation Fund,
o AIM V.I. Government Series Fund*,
o AIM V.I. Growth Fund*,
o AIM V.I. Growth and Income Fund*,
o AIM V.I. International Equity Fund*, and
o the AIM V.I. Value Fund*.
o Fidelity Variable Insurance Products Funds:
o Fidelity VIP Equity Income Portfolio*,
o Fidelity VIP Growth Portfolio,
o Fidelity VIP High Income Portfolio*,
o Fidelity VIP Overseas Portfolio*,
o Fidelity VIP II Contrafund Portfolio*, and
o Fidelity VIP II Index 500 Portfolio*.
o MFS Variable Insurance Trust:
O MFS Bond Series*,
o MFS Emerging Growth Series*,
o MFS Money Market Series,
o MFS Research Series*,
o MFS Total Return Series*, and
o MFS World Governments Series.
* Available to the Account beginning February 3, 1997.
As of April 30, 1997, several funds were no longer available to the
Account, including Landmark VIP Balanced Fund, Landmark VIP Equity Fund,
Landmark VIP International Equity Fund, and Landmark VIP U.S. Government
Fund.
(Continued)
20
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
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 of interest 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) Summary of 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.
Investment Valuation
The investment in the Fund is stated at market value, which is the net
asset value of each of the respective series as determined by the Fund at
the close of business on the last working day of the period.
Accounting for Investments
Investment transactions are accounted for on the trade date. Dividend
income is recorded on the ex-dividend date. The cost of investments sold
is generally determined on the specific identification method.
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 existing law, no taxes are payable on investment income
and realized capital gains of the Account.
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.
(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 net assets of the contracts.
An annual contract fee of $30 is assessed against each contract on its
anniversary date by surrendering units. Daily charges for
(Continued)
21
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
administrative expenses are assessed through the daily unit value
calculation, and are equivalent on an annual basis to 0.15% of the net
assets of the contracts.
(Continued)
22
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
The contracts provide that in the event that a contract owner withdraws
all or a portion of the contract value within five contract years, a
deferred sales charge will be assessed. The deferred sales charge is based
on a table of charges of which the maximum charge is currently 7% of the
purchase payments withdrawn. 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 governmental entities levy a
premium tax on annuity contracts issued by insurance companies.
(4) Purchase of Investments
For the twelve months ended December 31, 1997, investment activity in each
of the respective Funds was as follows:
================================================================================
Cost of Proceeds
Shares of purchases from sales
- --------------------------------------------------------------------------------
Variable Annuity Portfolios:
CitiSelect VIP Folio 200 $ 5,824,041 241,104
CitiSelect VIP Folio 300 11,039,939 292,252
CitiSelect VIP Folio 400 8,548,459 220,552
CitiSelect VIP Folio 500 2,718,883 161,945
Landmark Small Cap Equity VIP Fund 862,608 37,397
Landmark Variable Insurance Products Funds:
Landmark VIP Balanced Fund 160,232 1,599,344
Landmark VIP Equity Fund 204,312 1,918,183
Landmark VIP International Equity Fund 71,051 921,414
Landmark VIP U.S. Government Fund 2,250 308,275
AIM Variable Insurance Funds, Inc.:
AIM V.I. Capital Appreciation Fund 9,859,732 214,667
AIM V.I. Government Series Fund 2,846,115 228,884
AIM V.I. Growth Fund 1,937,974 65,945
AIM V.I. Growth and Income Fund 5,808,525 60,636
AIM V.I. International Equity Fund 8,646,399 132,776
AIM V.I. Value Fund 7,001,318 35,336
Fidelity Variable Insurance Products Funds:
Fidelity VIP Equity Income Portfolio 12,987,763 73,066
Fidelity VIP Growth Portfolio 6,467,033 597,210
Fidelity VIP High Income Portfolio 5,023,583 67,996
Fidelity VIP Overseas Portfolio 4,897,523 55,598
Fidelity VIP II Contrafund Portfolio 8,040,547 130,392
Fidelity VIP II Index 500 Portfolio 19,512,629 100,997
MFS Variable Insurance Trust:
MFS Bond Series 1,608,024 60,061
MFS Emerging Growth Series 8,424,463 41,454
MFS Money Market Series 9,518,532 5,053,381
MFS Research Series 12,236,722 111,775
MFS Total Return Series 6,629,641 132,479
MFS World Governments Series 1,643,605 169,953
================================================================================
(Continued)
23
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
====================================================================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in accumulation units of contractholders of the Account were as
follows:
====================================================================================================================================
1997
----------------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth and International V.I.
Appreciation Series Growth Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 6,180,079 2,216,154 1,594,864 5,032,658 7,001,263 5,767,184
Units withdrawn and
contract charges (420,971) (16,667) (7,139) (64,403) (117,303) (71,384)
Units transferred
between funds 181,318 387,651 21,451 247,921 1,156,069 317,119
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 5,940,426 2,587,138 1,609,176 5,216,176 8,040,029 6,012,919
Units at beginning
of period 3,464,766 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 9,405,192 2,587,138 1,609,176 5,216,176 8,040,029 6,012,919
====================================================================================================================================
</TABLE>
(Continued)
24
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
====================================================================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in accumulation units of contractholders of the Account were
as follows:
====================================================================================================================================
1997
---------------------------------------------------------------------------------------
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 4,956,251 9,892,094 7,456,293 2,358,949 10,258,941 2,891,445
Units withdrawn and
contract charges (86,149) (55,567) (153,382) (150,399) (180,920) (340,485)
Units transferred
between funds 316,748 158,030 321,559 123,735 1,691,481 1,032,064
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 5,186,850 9,994,557 7,624,470 2,332,285 11,769,502 3,583,024
Units at beginning
of period -- -- -- -- -- 2,902,936
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 5,186,850 9,994,557 7,624,470 2,332,285 11,769,502 6,485,960
====================================================================================================================================
</TABLE>
(Continued)
25
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
====================================================================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in accumulation units of contractholders of the Account were
as follows:
====================================================================================================================================
1997
-----------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 4,648,170 4,387,493 6,840,803 17,186,938 707,778 131,975
Units withdrawn and
contract charges (59,117) (33,932) (38,044) (221,987) (12,416) (41,456)
Units transferred
between funds 90,671 91,345 379,782 545,679 116,128 (1,268,215)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 4,679,724 4,444,906 7,182,541 17,510,630 811,490 (1,177,696)
Units at beginning
of period -- -- -- -- -- 1,177,696
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 4,679,724 4,444,906 7,182,541 17,510,630 811,490 --
====================================================================================================================================
</TABLE>
(Continued)
26
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
====================================================================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in accumulation units of contractholders of the Account were
as follows:
====================================================================================================================================
1997
- ------------------------------------------------------------------------------------------------------------------------------------
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 145,212 60,644 2,221 1,499,740 7,536,741 8,448,279
Units withdrawn and
contract charges (38,892) (63,754) (8,300) (14,707) (41,047) (159,934)
Units transferred
between funds (1,374,924) (798,247) (278,297) 38,013 274,085 (4,227,175)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (1,268,604) (801,357) (284,376) 1,523,046 7,769,779 4,061,170
Units at beginning
of period 1,268,604 801,357 284,376 -- -- 491,668
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period -- -- -- 1,523,046 7,769,779 4,552,838
====================================================================================================================================
</TABLE>
(Continued)
27
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
- --------------------------------------------------------------------------------
1997
-----------------------------------------
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
Units purchased 10,821,738 5,763,673 1,400,097
Units withdrawn and
contract charges (93,880) (85,739) (104,233)
Units transferred
between funds 620,587 366,660 51,410
- --------------------------------------------------------------------------------
Net increase 11,348,445 6,044,594 1,347,274
Units at beginning
of period -- -- 467,158
- --------------------------------------------------------------------------------
Units at end of period 11,348,445 6,044,594 1,814,432
================================================================================
(Continued)
28
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
====================================================================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in accumulation units of contractholders of the Account were
as follows:
====================================================================================================================================
1996
--------------------------------------------------------------------------------------
A.I.M. V.I. Fidelity Landmark Landmark Landmark
Capital VIP VIP VIP VIP
Appreciation Growth Balanced Equity International
Fund Portfolio Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Units purchased 2,203,112 1,799,603 629,962 654,041 502,007
Units withdrawn and
contract charge (235,872) (202,480) (82,376) (68,251) (67,205)
Units transferred
between funds 152,013 67,883 (9,936) 33,803 (11,390)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 2,119,253 1,665,006 537,650 619,593 423,412
Units at beginning of period 1,345,513 1,237,930 640,046 649,011 377,945
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 3,464,766 2,902,936 1,177,696 1,268,604 801,357
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
29
<PAGE>
FIRST CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
================================================================================
1996
----------------------------------------
Landmark MFS
VIP U.S. Money MFS World
Government Market Governments
Fund Series Series
- --------------------------------------------------------------------------------
Units purchased 106,935 454,216 307,532
Units withdrawn and
contract charge (33,452) (48,418) (49,947)
Units transferred
between funds 3,645 (30,038) (32,341)
- --------------------------------------------------------------------------------
Net increase 77,128 375,760 225,244
Units at beginning of period 207,248 115,908 241,914
- --------------------------------------------------------------------------------
Units at end of period 284,376 491,668 467,158
================================================================================
30
<PAGE>
EXHIBIT I
The following documents have been previously filed via EDGAR and are herein
incorporated by reference. Financial information may be obtained from the
following:
<TABLE>
<CAPTION>
DATE FORM 40 ACT
FUND NAME CIK # SUBMITTED TYPE FILE # ACCESSION #
--------- ----- --------- ---- ------ -----------
<S> <C> <C> <C> <C> <C>
Variable Annuity Portfolios
CitiSelect VIP Folio 200 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 300 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 400 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 500 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiFunds Small Cap Growth 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
VIP Portfolio
Fidelity Variable Insurance Products Fund
Growth Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000024
High Income Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000025
Equity Income Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000023
Overseas Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000028
Fidelity Variable Insurance Product Fund II
Contrafund Portfolio 0000831016 2/23/98 N-30D 811-05511 0000356494-98-000031
Index 500 Portfolio 0000831016 2/23/98 N-30D 811-05511 0000356494-98-000034
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Government Securities Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Growth Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. International Equity Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Value Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Growth and Income Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
MFS Variable Insurance Trust
MFS World Governments Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000244
MFS Money Market Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000246
MFS Bond Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000249
MFS Total Return Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000243
MFS Research Series 0000918571 3/05/98 N-30D 811-08326 0000950156-98-000210
MFS Emerging Growth Series 0000918571 3/05/98 N-30D 811-08326 0000950156-98-000209
</TABLE>
