CITICORP [logo]
CitiVariable(R) Annuity
Annual Report 1998
from First Citicorp Life Insurance Company
CitiVariable(R) Annuity Annual Report 1998
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[CITICORP LOGO]
First Citicorp Life Insurance Company
Citicorp Plaza
P.O. Box 7031
Dover, Delaware 19903
February 26, 1999
Dear Contract Owner:
We are pleased to share with you the 1998 investment results of the investment
portfolios held in your CitiVariable(R) Annuity issued by First Citicorp Life
Insurance Company. In this report, you will find extensive information regarding
each fund's performance as well as other pertinent data. Please note that the
funds' performance as reflected in their annual reports do not reflect the
Separate Account mortality and expense risk charge, the contract administrative
charge, annual contract fee, premium taxes, or surrender charges, which may
apply. Such charges, taxes and fees will reduce the actual return of your
CitiVariable Annuity contract.
For your convenience, performance with the Separate Account charges has been
included after the table of contents.
The annuity you have purchased has been designed to help you reach your
long-term investment goals. We are continually exploring ways to improve our
product and welcome any suggestions or comments you may have regarding your
variable annuity or the service you receive from our committed staff. Please
feel free to call us at 1-800-497-4857 from 8:00 a.m. to 6:00 p.m. Eastern
Standard time, Monday through Friday.
We thank you for allowing us the opportunity to be of service to you. We look
forward to continuing to provide you with the highest level of satisfaction with
your variable annuity.
Sincerely,
/s/ Chad H. Masland
Chad H. Masland
Senior Vice President
First Citicorp Life Insurance Company is a subsidiary of Citibank Delaware and
is located in New York, NY.
Variable annuity transactions are through affiliated and various other members
of the NASD and sold through affiliated and other insurance agencies. CFBDS,
Inc. is the principal underwriter. Securities transactions are through Citicorp
Investment Services, member NASD, and an affiliate of Citibank.
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Annuities Are: o Not FDIC Insured o No Bank Guarantee o May Lose Value
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Table of Contents
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CitiVariable(R) Annuity Performance
Variable Annuity Portfolios
CitiSelect(R) VIP Folio 200
CitiSelect(R) VIP Folio 300
CitiSelect(R) VIP Folio 400
CitiSelect(R) VIP Folio 500
CitiFunds(SM) Small Cap Growth VIP Portfolio
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund
AIM V.I. Government Securities Fund
AIM V.I. Growth Fund
AIM V.I. Growth and Income Fund
AIM V.I. International Equity Fund
AIM V.I. Value Fund
Fidelity Variable Insurance Products Funds
Fidelity VIP* Growth Portfolio
Fidelity VIP High Income Portfolio
Fidelity VIP Equity-Income Portfolio
Fidelity VIP Overseas Portfolio
Fidelity VIP II Contrafund Portfolio
Fidelity VIP II Index 500 Portfolio
MFS(R) Variable Insurance Trust
MFS World Governments Series
MFS Money Market Series
MFS Bond Series
MFS Total Return Series
MFS Research Series
MFS Emerging Growth Series
*VIP and VIP II refer to Variable Insurance Products Fund and Variable Insurance
Products Fund II.
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CitiVariable(R) Annuity
Issued by First Citicorp Life Insurance Company
Performance as of December 31, 1998
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<CAPTION>
Year to 1 3 5 10 Since Inception
Date* Year Years Years Years Inception* Date
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<S> <C> <C> <C> <C> <C> <C> <C>
CitiSelect(R) Portfolios
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CitiSelect VIP Folio 200 6.20% 6.20% -- -- -- 7.17% 2/28/97
CitiSelect VIP Folio 300 5.97 5.97 -- -- -- 7.57 2/28/97
CitiSelect VIP Folio 400 2.33 2.33 -- -- -- 5.96 2/28/97
CitiSelect VIP Folio 500 0.52 0.52 -- -- -- 5.97 2/28/97
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International Funds
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AIM V.I. International Equity Fund 14.27% 14.27% 12.57% 9.85% -- 11.65% 5/31/93
Fidelity VIP** Overseas Portfolio 11.56 11.56 11.06 8.25 8.59% 7.12 1/30/87
MFS(R) World Governments Series 6.76 6.76 2.20 -- -- 4.18 6/30/94
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Aggressive Growth Funds
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AIM V.I. Capital Appreciation Fund 18.04% 18.04% 15.27% 15.68% -- 16.77% 5/31/93
CitiFunds(SM) Small Cap Growth VIP Portfolio -4.82 -4.82 -- -- -- 5.54 2/28/97
MFS Emerging Growth Series 32.75 32.75 22.57 -- -- 25.83 7/31/95
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Growth Funds
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AIM V.I. Growth Fund 32.71% 32.71% 24.57% 19.83% -- 18.99% 5/31/93
AIM V.I. Value Fund 31.01 31.01 21.92 20.09 -- 20.21 5/31/93
Fidelity VIP II** Contrafund Portfolio 28.61 28.61 23.49 -- -- 27.99 1/31/95
Fidelity VIP Growth Portfolio 38.02 38.02 23.86 20.12 17.79% 15.84 10/31/86
MFS Research Series 22.08 22.08 20.42 -- -- 21.01 7/31/95
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Index Funds
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Fidelity VIP II Index 500 Portfolio 26.97% 26.97% 26.25% 22.09% -- 19.55% 8/31/92
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Growth & Income Funds
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AIM V.I. Growth & Income Fund 26.34% 26.34% 22.81% -- -- 21.77% 5/31/94
Fidelity VIP Equity-Income Portfolio 10.45 10.45 16.28 17.20% 14.05% 12.83 10/31/86
MFS Total Return Series 11.15 11.15 13.63 -- -- 16.76 1/31/95
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Fixed Income Funds
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MFS Money Market Series 3.81% 3.81% 3.47% -- -- 3.36% 1/31/95
MFS Bond Series 5.66 5.66 4.93 -- -- 5.53 10/31/95
AIM V.I. Government Securities Fund 6.60 6.60 4.67 4.40% -- 4.45 5/31/93
Fidelity VIP High Income Portfolio -5.34 -5.34 7.29 7.35 9.57% 9.58 9/30/85
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</TABLE>
Past performance is no indication of future results.
* Year-to-date performance is unannualized. Inception data is as of month
end after commencement.
** VIP and VIP II refer to Variable Insurance Products Fund and Variable
Insurance Products Fund II.
You can use this update as a tool to help you evaluate the investment choices
before investing, or to track the performance of your current investment
choices. Please keep in mind, as you review performance, that your annuity
contract is designed as a long-term investment. Therefore, it is important for
you to keep a long-term point of view as you review short-term fluctuations.
Generally, the most successful retirement investors are those who create an
investment strategy based on their tolerance for risk and long-term goals and
then invest on a consistent basis.
Citibank, N.A. acts as an investment manager of CitiSelect VIP Portfolios and
investment advisor of CitiFunds Small Cap Growth VIP Portfolio. The remaining
individual investment choices are managed by AIM, Fidelity Investments(R) and
MFS(R).
Notes:
Investment return and principal will fluctuate, and the investor's units may be
worth more or less than the original cost when redeemed.
The table at left presents annualized rates of return for each CitiVariable
annuity investment choice. Performance results are based on the change in the
accumulation unit value for each investment choice. An investment choice's
annualized rate of return is the annual rate of growth that would be necessary
to achieve the ending value of a premium payment kept in the investment choice
for the period specified. Investment results are net of advisory fees, direct
operating expenses, the Separate Account mortality and expense risk charge, and
the asset-based administrative charge.
The Separate Account began investing in the Variable Annuity Portfolios, the
Fidelity Variable Insurance Products Fund, the Fidelity Variable Insurance
Products Fund II, the AIM Variable Insurance Funds, Inc. and the MFS Variable
Insurance Trust on February 3, 1997, except for the AIM V.I. Capital
Appreciation; Fidelity VIP Growth Portfolio; MFS World Governments Series and
MFS Money Market Series which commenced operations on February 21, 1995. The
investment results of all funds for periods prior to these dates are based on
actual investment results, adjusted for charges applicable under CitiVariable
Annuity. These charges include all fees normally reflected in the accumulation
unit value (as described above).
Rates of return do not reflect any premium taxes, annual contract fees, or
surrender fees which may apply. Such fees reduce the actual return of a specific
CitiVariable annuity contract. The MFS Money Market Series is neither guaranteed
nor insured by the U.S. Government. The charts presented do not represent the
actual experience of amounts invested by a particular investor.
o NOT FDIC INSURED
o NO BANK GUARANTEE
o MAY LOSE VALUE
ins 1323 (12/98)
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Annualized Rate of Return After Surrender
The annualized rates of return below show the growth rate for an initial $1,000
initial premium payment made to a contract which was surrendered at the end of
each period. These rates of return reflect all charges, including the annual
contract fee and the maximum surrender fee of 7%. As you can see, CitiVariable
Annuity is a long-term investment.
As of 12/31/98
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<CAPTION>
Since
1 Year 5 Years 10 Years Inception*
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<S> <C> <C> <C> <C>
CitiSelect Portfolios
CitiSelect VIP Folio 200 -0.10% -- -- 4.37%
CitiSelect VIP Folio 300 -0.33 -- -- 4.78
CitiSelect VIP Folio 400 -3.97 -- -- 3.13
CitiSelect VIP Folio 500 -5.78 -- -- 3.14
International Funds
AIM V.I. International Equity Fund 7.97% 9.48% -- 11.65%
Fidelity VIP Overseas Portfolio 5.26 7.85 8.59% 7.12
MFS World Governments Series 0.46 -- -- 3.65
Aggressive Growth Funds
AIM V.I. Capital Appreciation Fund 11.74% 15.37% -- 16.77%
CitiFunds(SM) Small Cap Growth VIP Portfolio -10.78 -- -- 2.70
MFS Emerging Growth Series 26.45 -- -- 25.22
Growth Funds
AIM V.I. Growth Fund 26.41% 19.56% -- 18.99%
AIM V.I. Value Fund 24.71 19.83 -- 20.21
Fidelity VIP II Contrafund Portfolio 22.31 -- -- 27.54
Fidelity VIP Growth Portfolio 31.72 19.86 17.79% 15.84
MFS Research Series 15.78 -- -- 20.34
Index Funds
Fidelity VIP II Index 500 Portfolio 20.67% 21.84% -- 19.55%
Growth & Income Funds
AIM V.I. Growth & Income Fund 20.04% -- -- 21.48%
Fidelity VIP Equity-Income Portfolio 4.45 17.20% 14.05% 12.83
MFS Total Return Series 4.85 -- -- 16.17
Fixed Income Funds
MFS Money Market Series -2.49% -- -- 2.52%
MFS Bond Series -0.64 -- -- 4.51
AIM V.I. Government Securities Fund 0.30 3.94% -- 4.45
Fidelity VIP High Income Portfolio -11.26 6.94 9.57% 9.58
</TABLE>
Past performance is no indication of future results.
Performance data provided by Morningstar 1-800-735-0700. Although data are
gathered from reliable sources, completeness and accuracy cannot be
guaranteed.
* Inception data is as of month-end after commencement.
This must be preceded or accompanied by a prospectus. If a prospectus is not
provided, please ask for one prior to completing an application for CitiVariable
Annuity; then please read it carefully before investing or sending money. It
contains more complete information, including charges, fees and expenses. Please
review the annuity contract for complete details.
Variable Annuity transactions are through various members of the NASD/SIPC and
offered by various insurance agencies. Variable Annuity transactions in Citibank
branches are through Citicorp Investment Services, member NASD/SIPC and offered
by Citicorp Investment Services and other affiliated insurance agencies. CFBDS,
Inc. is the Principal Underwriter. The benefits provided by annuities may be
limited by law or contractual provisions. For costs and complete details, please
contact your insurance agent.
The investment return and principal value of any investment will fluctuate; an
investor's shares, when redeemed, may be worth more or less than their original
purchase price.
Some performance figures may reflect waivers of certain expenses and/or expense
reimbursements. Without the waivers and/or expense reimbursements, the
performance of some subaccounts would have been lower. Waivers or expense
reimbursements may be terminated or revised at any time.
CitiVariable(R) Annuity is issued by First Citicorp Life Insurance Company,
located in New York, NY. First Citicorp Life is a subsidiary of Citibank
Delaware. Annuities are insurance contracts, are not bank deposits, and are not
FDIC insured. This annuity is not available in all states. Consult your tax
advisor for answers to your tax questions.
CitiSelect(R) and CitiFunds(SM) are made available by CFBDS, Inc. as
distributor.
CitiVariable(R) and CitiSelect(R) are service marks of Citicorp.
Fidelity Investments(R) is a registered trademark of FMR Corp.
All named entities above, except Fidelity Investments, FMR Corp., and CFBDS,
Inc. are affiliates of Citicorp Investment Services, Citibank and Citicorp.
Policy Number Series 63-1103(05-94).
(C)1998 First Citicorp Life Insurance Company, New York, NY
ins 1323 (12/98)
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