<PAGE>
As filed with the Securities and Exchange Commission on April 29, 1999
Registration No. 33- 83560
811-8750
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C 20549
- --------------------------------------------------------------------------------
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No.___
Post-Effective Amendment No. 8 X
--
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 9 X
--
AUSA ENDEAVOR VARIABLE ANNUITY ACCOUNT
--------------------------------------
(Exact Name of Registrant)
AUSA LIFE INSURANCE COMPANY, INC.
---------------------------------
(Name of Depositor)
666 Fifth Avenue, New York, New York 10103
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code
(212) 246-5234
Frank A. Camp, Esquire
AUSA Life Insurance Company, Inc.
4333 Edgewood Road, N.E.
Cedar Rapids, Iowa 52499
(Name and Address of Agent for Service)
Copy to:
Frederick R. Bellamy, Esquire
Sutherland, Asbill & Brennan L.L.P.
1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2404
1
<PAGE>
CROSS REFERENCE SHEET
Pursuant to Rule 495
Showing Location in Part A (Prospectus) and
Part B (Statement of Additional Information)
of Registration Statement of Information Required by Form N-4
-------------------------------------------------------------
PART A
------
<TABLE>
<CAPTION>
Item of Form N-4 Prospectus Caption
- ---------------- ------------------
<S> <C>
1. Cover Page ...................... Cover Page
2. Definitions ..................... Glossary of Terms
3. Synopsis ........................ Summary; Fee Table
4. Condensed Financial Information Financial Information
5. General
(a) Depositor ................... AUSA Life
............................. Insurance Company, Inc.
(b) Registrant .................. The Mutual Fund Account
(c) Portfolio Company ........... Underlying Funds
(d) Fund Prospectus ............. Underlying Funds
(e) Voting Rights ............... Voting Rights
6. Deductions and Expenses
(a) General ..................... Expenses
(b) Sales Load % ................ Contingent Deferred Sales Charge
(c) Special Purchase Plan ....... N/A
(d) Commissions ................. Distributor of the Policies
(e) Expenses - Registrant ....... N/A
(f) Fund Expenses ............... Portfolio Management Fees
(g) Organizational Expenses ..... N/A
7. Policies
(a) Persons with Rights ......... The Annuity Policy; Annuity
Payments Annuity Payment Option;
Ownership; Voting Rights
(b) (i) Allocation of Premium
Payments .............. Allocation of Premium Payments
(ii) Transfers ............. Transfers
(iii) Exchanges ............. N/A
(c) Changes ..................... Annuity Purchase Value; Allocation
of Premium Payments; Annuity Payment
Option
</TABLE>
3
<PAGE>
<TABLE>
<S> <C>
Beneficiary; Ownership of the
Policy
(d) Inquiries ................... Summary
8. Annuity Period .................. Annuity Payments
9. Death Benefit ................... Death Benefit
10. Purchase and Policy Values ......
(a) Purchases ................... Purchase
(b) Valuation ................... Policy Value
(c) Daily Calculation ........... The Mutual Fund Account Value
(d) Underwriter ................. Distributor of the Policies
11. Redemptions
(a) By Owners ................... Surrenders
By Annuitant ................ N/A
(b) Texas ORP ................... Restrictions Under the Texas
Optional Retirement Program
(c) Check Delay ................. Annuity Payments
(d) Lapse ....................... N/A
(e) Free Look ................... Summary
12. Taxes ........................... Taxes
13. Legal Proceedings ............... Legal Proceedings
14. Table of Contents for the
Statement of
Additional Information .......... Table of Contents of the
Statement of Additional
Information
<CAPTION>
PART B
------
Item of Form N-4 Statement of Additional
- ---------------- Information Caption
-------------------
<S> <C>
15. Cover Page ...................... Cover Page
16. Table of Contents ............... Table of Contents
17. General Information
and History ..................... (Prospectus) AUSA
Life Insurance Company, Inc.
18. Services ........................
(a) Fees and Expenses
of Registrant .............. N/A
(b) Management Policies ........ N/A
(c) Custodian .................. Custody of Assets
Independent
</TABLE>
4
<PAGE>
<TABLE>
<S> <C>
Auditors ................... Independent Auditors
(d) Assets of Registrant ....... Custody of Assets
(e) Affiliated Person .......... N/A
(f) Principal Underwriter ...... Distribution of the Policies
19. Purchase of Securities
Being Offered ................... Distribution of the Policies
Offering Sales Load ............. N/A
20. Underwriters .................... Distribution of the Policies;
(Prospectus) Distributor of the
Policies
21. Calculation of Performance
Data ............................ Historical Performance Data
22. Annuity Payments ................ (Prospectus) Election of Annuity
Option; (Prospectus)
Determination of Annuity Payments
23. Financial Statements ............ Financial Statements
</TABLE>
PART C -- OTHER INFORMATION
---------------------------
<TABLE>
<CAPTION>
Item of Form N-4 Part C Caption
- ---------------- --------------
<S> <C>
24. Financial Statements
and Exhibits .................... Financial Statements and Exhibits
(a) Financial Statements ....... Financial Statements
(b) Exhibits ................... Exhibits
25. Directors and Officers of ....... Directors and Officers of the
the Depositor Depositor
26. Persons Controlled By or Under .. Persons Controlled By or Under
Common Control with the Common Control with the
Depositor or Registrant Depositor or Registrant
27. Number of Policyowners .......... Number of Policyowners
28. Indemnification ................. Indemnification
29. Principal Underwriters .......... Principal Underwriters
30. Location of Accounts
and Records ..................... Location of Accounts and Records
31. Management Services ............. Management Services
32. Undertakings .................... Undertakings
Signature Page .................. Signatures
5
</TABLE>
<PAGE>
THE ENDEAVOR
VARIABLE ANNUITY
Issued Through
AUSA ENDEAVOR VARIABLE ANNUITY ACCOUNT
by
AUSA LIFE INSURANCE COMPANY, INC.
Prospectus
May 1, 1999
This prospectus and the mutual fund prospectuses give you important information
about the policies and the mutual funds. Please read them carefully before you
invest and keep them for future reference.
If you would like more information about The Endeavor Variable Annuity Policy,
you can obtain a free copy of the Statement of Additional Information (SAI)
dated May 1, 1999. Please call us at (800) 525-6205 or write us at: AUSA Life
Insurance Company, Inc., Financial Markets Division, Variable Annuity
Department, 4333 Edgewood Road N.E., Cedar Rapids, Iowa, 52499-0001. A
registration statement, including the SAI has been filed with the Securities
and Exchange Commission (SEC) and is incorporated herein by reference.
Information about the separate account can be reviewed and copied at the SEC's
Public Reference Room in Washington, D.C. You may obtain information about the
operation of the public reference room by calling the SEC at 1-800-SEC-0330.
The SEC also maintains a web site (http://www.sec.gov) that contains the
prospectus, the SAI, material incorporated by reference, and other information.
The table of contents of the SAI is included at the end of this prospectus.
The Securities and Exchange Commission has not approved or disapproved these
securities, or passed upon the adequacy of this prospectus. Any representation
to the contrary is a criminal offense.
The flexible premium deferred annuity policy has many investment choices. There
is a fixed account, which offers interest at rates that are guaranteed by AUSA
Life, and thirteen mutual fund portfolios offered by the underlying funds
listed below. You can choose any combination of these investment options. You
bear the entire investment risk for all amounts you put in the mutual fund
portfolios.
ENDEAVOR SERIES TRUST
Subadvised by Morgan Stanley
Asset Management Inc.
Endeavor Asset Allocation Portfolio
Endeavor Money Market Portfolio
Subadvised by T. Rowe Price Associates, Inc.
T. Rowe Price Equity Income Portfolio
T. Rowe Price Growth Stock Portfolio
Subadvised by Rowe Price-Fleming International, Inc.
T. Rowe Price International Stock Portfolio
Subadvised by OpCap Advisors
Endeavor Value Equity Portfolio
Endeavor Opportunity Value
Subadvised by J.P. Morgan Investment Management Inc.
Endeavor Enhanced Index Portfolio
Subadvised by The Dreyfus Corporation
Dreyfus U.S. Government Securities Portfolio
Dreyfus Small Cap Value Portfolio
Subadvised by Montgomery Asset Management, LLC
Endeavor Select 50 Portfolio
Subadvised by Massachusetts Financial Services Company
Endeavor High Yield Portfolio
Subadvised by Janus Capital Corporation
Endeavor Janus Growth Portfolio
Please note that the Policies and the mutual funds:
. are not bank deposits
. are not federally insured
. are not endorsed by any bank or government agency
. are not guaranteed to achieve their goal
. are subject to risks, including loss of premium
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS Page
<S> <C>
GLOSSARY OF TERMS........................................................... 3
SUMMARY..................................................................... 4
ANNUITY POLICY FEE TABLE.................................................... 7
EXAMPLES.................................................................... 10
1.THE ANNUITY POLICY........................................................ 12
2.ANNUITY PAYMENTS
(THE INCOME PHASE)........................................................ 12
Annuity Payment Options................................................... 12
3.PURCHASE.................................................................. 14
Policy Issue Requirements................................................. 14
Premium Payments.......................................................... 14
Initial Premium Requirements.............................................. 14
Additional Premium Payments............................................... 14
Maximum Total Premium Payments............................................ 14
Allocation of Premium Payments............................................ 14
Policy Value.............................................................. 14
4.INVESTMENT CHOICES........................................................ 15
The Separate Account...................................................... 15
The Fixed Account......................................................... 15
Transfers................................................................. 16
Dollar Cost Averaging Program............................................. 16
Asset Rebalancing......................................................... 17
5.EXPENSES.................................................................. 17
Surrender Charges......................................................... 17
Mortality and Expense Risk Fee............................................ 17
Administrative Charges.................................................... 18
Premium Taxes............................................................. 18
Federal, State and Local Taxes............................................ 18
Transfer Fee.............................................................. 18
Portfolio Management Fees................................................. 18
6.TAXES..................................................................... 18
Annuity Policies in General............................................... 18
Qualified and Nonqualified Policies....................................... 19
Withdrawals--Nonqualified Policies........................................ 19
Withdrawals--Qualified Policies........................................... 19
Withdrawals--403(b) Policies.............................................. 20
Diversification and Distribution Requirements............................. 20
Taxation of Death Benefit Proceeds........................................ 20
Annuity Payments.......................................................... 20
Transfers, Assignments or Exchanges of Policies........................... 21
Possible Tax Law Changes.................................................. 21
7.ACCESS TO YOUR MONEY...................................................... 21
Surrenders................................................................ 21
Delay of Payment and Transfers............................................ 21
Systematic Payout Option.................................................. 22
8.PERFORMANCE............................................................... 22
9.DEATH BENEFIT............................................................. 22
When We Pay A Death Benefit............................................... 22
When We Do Not Pay A Death Benefit........................................ 23
Amount of Death Benefit................................................... 23
Guaranteed Minimum Death Benefit.......................................... 23
Partial Withdrawal........................................................ 24
10.OTHER INFORMATION........................................................ 24
Ownership................................................................. 24
Assignment................................................................ 24
AUSA Life Insurance Company, Inc.......................................... 24
The Separate Account...................................................... 24
Mixed and Shared Funding.................................................. 25
Reinstatements............................................................ 25
Voting Rights............................................................. 25
Distributor of the Policies............................................... 26
Non-participating Policy.................................................. 26
Variations in Policy Provisions........................................... 26
Year 2000 Matters......................................................... 26
IMSA...................................................................... 26
Legal Proceedings......................................................... 26
Financial Statements...................................................... 27
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION................ 27
APPENDIX A
Condensed Financial Information............................................. 28
APPENDIX B
Historical Performance Data................................................. 31
</TABLE>
2
<PAGE>
GLOSSARY OF TERMS
Accumulation Unit--An accounting unit of measure used in calculating the policy
value in the separate account before the annuity commencement date.
Annuitant--The person entitled to receive annuity payments after the annuity
commencement date and during whose life any annuity payments involving life
contingencies will continue.
Annuity Commencement Date--The date upon which annuity payments are to
commence. This date may be any date at least thirty days after the policy date
and may not be later than the last day of the policy month starting after the
annuitant attains age 85, except as expressly allowed by AUSA Life. In no event
will this date be later than the last day of the policy month following
annuitant's 90th birthday.
Annuity Payment Option--A method of receiving a stream of annuity payments
selected by the owner.
Cash Value--The policy value less the surrender charge, if any.
Fixed Account--A part of the general account of AUSA Life. General account
assets consist of all of the assets of AUSA Life that are not in separate
accounts.
Guaranteed Period Option--The one year guaranteed interest rate period which
will be offered by AUSA Life into which premiums may be paid or amounts
transferred.
Owner or Owners--The person who may exercise all rights and privileges under
the policy. The owner during the lifetime of the annuitant and prior to the
annuity commencement date is the person designated as the owner or a successor
owner in the information that we require to issue a policy.
Policy Value--The value in the policy that may be used to purchase a stream of
annuity payments. On or before the annuity commencement date, this is an amount
equal to (a) the premiums paid; minus (b) partial withdrawals taken; plus (c)
interest credited in the fixed account; plus (d) accumulated gains or losses in
the separate account; minus (e) any applicable service charges, premium taxes,
and transfer fees. The policy form refers to this as annuity purchase value.
Separate Account--A separate account established and registered as a unit
investment trust under the Investment Company Act of 1940, as amended, (the
"1940 Act"), to which premium payments under the policies may be allocated and
which invests in designated portfolios of the Endeavor Series Trust and such
other mutual funds as AUSA Life may determine from time to time.
Subaccount--A subdivision within the separate account the assets of which are
invested in a specified portfolio of the Endeavor Series Trust.
(Note: The Statement of Additional
Information contains a more
extensive Glossary.)
3
<PAGE>
SUMMARY
The sections in this summary correspond to sections in this prospectus, which
discuss the topics in more detail. Words printed in italics in this prospectus
are defined in the Glossary.
1. THE ANNUITY POLICY
The Flexible Premium Variable Annuity Policy offered by AUSA Life Insurance
Company, Inc. (AUSA Life, we, us or our) is a policy between you, as the owner,
and AUSA Life, an insurance company. The policy provides a way to invest on a
tax-deferred basis in the following investment choices: subaccounts of the
separate account, and a fixed account of AUSA Life. The policy is intended to
accumulate money for retirement or other long-term investment purposes.
This policy offers thirteen subaccounts that are listed in Section 4. Each
subaccount invests exclusively in shares of one of the portfolios of the
Endeavor Series Trust. The policy value may depend on the investment experience
of the selected subaccounts. Therefore, you bear the entire investment risk
with respect to all policy value in any subaccount. You could lose the amount
that you invest.
The fixed account offers an interest rate that is guaranteed by AUSA Life. We
guarantee to return your investment with interest credited for all amounts
allocated to the fixed account.
You can transfer money from one subaccount to another in the separate account.
We reserve the right to impose a $10 fee for each transfer in excess of 12
transfers per policy year.
The policy, like all deferred annuity policies, has two phases: the
"accumulation phase" and the "income phase." During the accumulation phase,
earnings accumulate on a tax-deferred basis and are taxed as income when you
take them out of the policy. The income phase occurs when you
begin receiving regular payments from yourpolicy. The money you can accumulate
during the accumulation phase will largely determine the income payments you
receive during the income phase.
2. ANNUITY PAYMENTS (THE INCOME PHASE)
The policy allows you to receive income under one of five annuity payment
options. You may choose from fixed payment options, variable payment options,
or a combination of both. If you select a variable payment option, the dollar
amount of your payments may go up or down.
3. PURCHASE
You can buy a nonqualified policy with $5,000 or more, and a qualified policy
with $1,000 or more, under most circumstances. You may also buy a tax deferred
403(b) annuity policy with $50 or more. You can add as little as $50 at any
time during the accumulation phase.
4. INVESTMENT OPTIONS
You can allocate your premium payments to one or more of the following
portfolios described in the Endeavor Series Trust prospectus:
SUBADVISED BY MORGAN STANLEY
ASSET MANAGEMENT INC.
Endeavor Asset Allocation
Endeavor Money Market
SUBADVISED BY T. ROWE PRICE ASSOCIATES, INC.
T. Rowe Price Equity Income
T. Rowe Price Growth Stock
SUBADVISED BY ROWE PRICE-FLEMING
INTERNATIONAL, INC.
T. Rowe Price International Stock
SUBADVISED BY OPCAP ADVISORS
Endeavor Value Equity
Endeavor Opportunity Value
SUBADVISED BY J.P. MORGAN
INVESTMENT MANAGEMENT INC.
Endeavor Enhanced Index
4
<PAGE>
SUBADVISED BY THE DREYFUS CORPORATION
Dreyfus U.S. Government Securities
Dreyfus Small Cap Value
SUBADVISED BY MONTGOMERY ASSET MANAGEMENT, LLC
Endeavor Select 50
SUBADVISED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY
Endeavor High Yield
SUBADVISED BY JANUS CAPITAL CORPORATION
Endeavor Janus Growth
Depending upon their investment performance, you can make or lose money in any
of these subaccounts.
You can also allocate your premium payments to the fixed account.
5. EXPENSES
No deductions are made from premium payments at the time you buy the policy so
that the full amount of each premium payment is invested in one or more of your
investment choices.
We may deduct a surrender charge of up to 7% of premium payments withdrawn
within seven years after the premium is paid. To calculate surrender charges,
we consider the premium you paid to come out before any earnings.
We deduct daily mortality and expense risk fees and administrative charges each
year from the assets in each subaccount. The charges are the following annual
percentages of assets:
. 1.55% in the first seven policy years and 1.40% thereafter, for the Annual
Step-Up Death Benefit; and
. 1.40% in the first seven policy years and 1.25% thereafter, for the Return
of Premium Death Benefit.
During the accumulation phase, we deduct an annual service charge from the
separate account of no more than $35 from the policy value on each policy
anniversary. The charge is waived if the sum of all premium payments, minus all
partial withdrawals, is at least $50,000.
We will deduct state premium taxes, which currently range from 0% to 3.50%,
upon total surrender, payment of a death benefit, or when annuity payments
begin.
The value of the net assets of the subaccounts will reflect the investment
advisory fee and other expenses incurred by the underlying portfolios. Those
fees and expenses are detailed in the Endeavor Series Trust prospectus that is
attached to this prospectus.
6. TAXES
Your earnings, if any, are not taxed until you take them out. If you take money
out during the accumulation phase, earnings come out first for federal tax
purposes, and are taxed as income. If you are younger than 59 1/2 when you take
money out, you may be charged a 10% federal penalty tax on the earnings.
Payments during the income phase may be considered partly a return of your
original investment so that part of each payment would not be taxable as
income.
7. ACCESS TO YOUR MONEY
You can take out $500 or more anytime during the accumulation phase. After one
year, you may take out up to 10% of the policy value free of surrender charges
once each year. Amounts withdrawn in the first year are subject to a surrender
charge. You may also have to pay income tax and a tax penalty on any money you
take out.
8. PERFORMANCE
The value of the policy will vary up or down depending upon the investment
performance of the subaccounts you choose. We provide performance information
in Appendix B and in the Statement of Additional Information. This data is not
intended to indicate future performance.
5
<PAGE>
9. DEATH BENEFIT
If you are both the owner and the annuitant and you die before the income phase
begins, then your beneficiary will receive a death benefit.
Naming different persons as owner and annuitant can affect whether the death
benefit is payable and to whom amounts will be paid. Use care when naming
owners, annuitants, and beneficiaries, and consult your agent if you have
questions.
You generally may choose one of the following guaranteed minimum death
benefits:
. Annual Step-Up
. Return of Premium
10. OTHER INFORMATION
Right to Cancel Period. You may return your policy for a refund within 20 days
after you receive it. The amount of the refund will be the total of all premium
payments made and the accumulated gains or losses in the separate account, if
any. We will pay the refund within 7 days after we receive written notice of
cancellation and the returned policy. The policy will then be deemed void.
No Probate. Usually when you die, the person you choose as your beneficiary
will receive the death benefit under this policy without going through probate.
State laws vary on how the amount that may be paid is treated for estate tax
purposes.
Who should purchase the Policy? This policy is designed for people seeking
long-term tax-deferred accumulation of assets, generally for retirement or
other long-term purposes; and for persons who have maximized their use of other
retirement savings methods, such as 401(k) plans and individual retirement
accounts. The tax-deferred feature is most attractive to people in high federal
and state tax brackets. You should not buy this policy if you are looking for a
short-term investment or if you cannot take the risk of losing the money that
you put in.
Financial Statements. Financial Statements for AUSA Life and the subaccounts
are in the Statement of Additional Information.
Additional Features. This policy has additional features that might interest
you. These include the following:
. You can arrange to have money automatically sent to you monthly, quarterly,
semi-annually or annually while your policy is in the accumulation phase.
This feature is referred to as the "systematic payout option." Amounts you
receive may be included in your gross income, and in certain circumstances,
may be subject to penalty taxes.
. You can arrange to have a certain amount of money automatically transferred
from the fixed account, either monthly or quarterly, into your choice of
subaccounts. This feature is called "dollar cost averaging."
. We will, upon your request, automatically transfer amounts among the
subaccounts on a regular basis to maintain a desired allocation of the
policy value among the various subaccounts. This feature is called "asset
rebalancing."
These features may not be suitable for your particular situation.
Inquiries
If you need more information, please contact us at:
Service Office:
Financial Markets Division
Variable Annuity Department
AUSA Life Insurance Company
4333 Edgewood Road N.E.
P.O. Box 3183
Cedar Rapids, IA 52406-3183
Administrative Office:
AUSA Life Insurance Company, Inc.
666 Fifth Avenue, 25th Floor
New York, NY 10103
Home Office:
4 Manhattanville Road
Purchase, NY 10577
6
<PAGE>
ANNUITY POLICY FEE TABLE
Policy Owner Transaction Expenses
<TABLE>
- -------------------------------------
<S> <C>
Sales Load On Purchase
Payments...................... 0
Maximum Surrender Charge
(as a % of Premium
Withdrawal)(/1/)(/2/)......... 7%
Surrender Fees................. 0
Annual Service
Charge(/1/)........ $35 Per Policy
Transfer
Fee(/1/)......... Currently No Fee
Separate Account Annual Expenses
(as a percentage of average account
value)
Mortality and Expense
Risk Fee(/3/).................. 1.40%
Administrative Charge.......... 0.15%
- -----------------------------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES................. 1.55%
</TABLE>
- -------------------------------------------------------------------------------
Portfolio Annual Expenses(/4/)
(as a percentage of average net assets and after expense reimbursements)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total
Rule Portfolio
Management Other 12b-1 Annual
Fees Expenses Fees(/5/) Expenses(/6/)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation....... 0.75% 0.03% 0.02% 0.80%
Endeavor Money Market........... 0.50% 0.10% -- 0.60%
T. Rowe Price Equity Income..... 0.80% 0.05% -- 0.85%
T. Rowe Price Growth Stock...... 0.80% 0.07% -- 0.87%
T. Rowe Price International
Stock(/7/)..................... 0.90% 0.08% -- 0.98%
Endeavor Value Equity........... 0.80% 0.04% 0.01% 0.85%
Endeavor Opportunity
Value(/8/)..................... 0.80% 0.18% 0.01% 0.99%
Endeavor Enhanced Index......... 0.75% 0.35% -- 1.10%
Dreyfus U.S. Government
Securities(/9/)................ 0.60% 0.12% -- 0.72%
Dreyfus Small Cap Value......... 0.80% 0.06% 0.08% 0.94%
Endeavor Select 50(/10/)........ 1.10% 0.39% -- 1.49%
Endeavor High Yield(/11/)....... 0.775% 0.525% -- 1.30%
Endeavor Janus Growth(/12/)..... 0.775% 0.095% -- 0.87%
</TABLE>
7
<PAGE>
(/1/)The surrender charge and transfer fee, if any is imposed, apply to each
policy, regardless of how the policy value is allocated among the separate
account and the fixed account. The annual service charge, if any is
imposed, applies only to the separate account, and is assessed on a pro
rata basis relative to each account's policy value as a percentage of the
policy's total policy value. The service charge is deducted on each policy
anniversary. If applicable, a surrender charge will only be applied to
withdrawals that exceed the amount available under certain listed
exceptions. There is no transfer fee for the first 12 transfers per year.
For additional transfers, AUSA Life may charge a fee of $10 per transfer,
but currently does not charge for any transfers.
(/2/)The surrender charge is decreased based on the number of years since the
premium payment was made, from 7% during the first year after the premium
payment was made to 0% after the seventh year after the premium payment was
made.
(/3/)The mortality and expense risk fees shown are those for the Annual Step-Up
Death Benefit which apply during the first seven policy years. After the
seventh policy year this charge is 1.25%. The corresponding Fee for the
Return of Premium Death Benefit is 1.25% during the first seven policy
years and 1.10% thereafter. The administrative charge may be increased in
the future. In no event will the mortality and expense risk fee and
administrative charge exceed 1.40% on or after the annuity commencement
date, regardless of the death benefit that was in effect prior to
commencement of annuity payments.
(/4/)The fee table information relating to the Endeavor Series Trust was
provided to AUSA Life by Endeavor Management Co., and AUSA Life has not
independently verified such information. Actual future expenses of the
portfolios may be greater or less than those shown in the Table.
(/5/)The Board of Trustees of Endeavor Series Trust has authorized an
arrangement whereby, subject to best price and execution, executing brokers
will share commissions with the Trust's affiliated broker. Under
supervision of the Trustees, the affiliated broker will use the "recaptured
commission" to promote marketing of the Trust's shares. The staff of the
Securities and Exchange Commission believes that, through the use of these
recaptured commissions, the Trust is indirectly paying for distribution
expenses and such amounts must be shown as 12b-1 fees in the above table.
The use of recaptured commissions to promote the sale of the Trust's shares
involves no additional costs to the Trust or any Owner. Endeavor Series
Trust, based on advice of counsel, does not believe that recaptured
brokerage commissions should be treated as 12b-1 fees. For more information
on the Trust's Brokerage Enhancement Plan, see the Trust's prospectus
accompanying this Prospectus.
(/6/)Endeavor Management Co. has agreed, until further notice, to assume
expenses of the Portfolios that exceed the following rates: Endeavor Money
Market--0.99%; Endeavor Asset Allocation--1.25%; T. Rowe Price
International Stock--1.53%; Endeavor Value Equity--1.30%; Dreyfus Small Cap
Value--1.30%; Dreyfus U.S. Government Securities--1.00%; T. Rowe Price
Equity Income--1.30%; T. Rowe Price Growth Stock--1.30%; Endeavor
Opportunity Value--1.30%; Endeavor Enhanced Index--1.30%; Endeavor Select
50--1.50%; Endeavor High Yield--1.30%. Endeavor Management Co. has agreed
for a period of at least one year to assume the expenses of the Endeavor
Janus Growth Portfolio that exceed 0.87%. Expenses shown for the Endeavor
Janus Growth Portfolio are estimated for 1999. Expenses shown for the
Endeavor Select 50 and Endeavor High Yield Portfolios are annualized.
8
<PAGE>
(/7/)Total Portfolio Annual Expenses for the T. Rowe Price International Stock
Portfolio before credits allowed by the custodian for the period ended
December 31, 1998 were 1.10%.
(/8/)Total Portfolio Annual Expenses for the Endeavor Opportunity Value
Portfolio before waivers/reimbursement and credits allowed by the custodian
for the period ended December 31, 1998 were 1.00%.
(/9/)Total Portfolio Annual Expenses for the Dreyfus U.S. Government Securities
Portfolio before waiver/reimbursements and credits allowed by the custodian
for the period ended December 31, 1998 were 0.73%.
(/10/)Total Portfolio Annual Expenses for the Endeavor Select 50 Portfolio
before waivers/reimbursement and credit allowed by the custodian for the
period ended December 31, 1998 were 1.55% annualized.
(/11/)Total Portfolio Annual Expenses for the Endeavor High Yield Portfolio
before waivers/reimbursement and credits allowed to the custodian for the
period ended December 31, 1998 were 1.58% annualized.
(/12/)The Endeavor Janus Growth Portfolio is new, so the Total Portfolio Annual
Expenses before waivers/reimbursement for the period ending December 31,
1999 are estimated to be 0.895%.
9
<PAGE>
EXAMPLES
You would pay the following expenses on a $1,000 investment, assuming a
hypothetical 5% annual return on assets, and assuming the entire policy value
is in the applicable subaccount.
The expenses reflect different mortality and expense risk fees depending on
which death benefit you select:
A = Annual Step-Up Death Benefit (1.40% in the first seven policy years and
1.25% thereafter)
B = Return of Premium Death Benefit (1.25% in the first seven policy years and
1.10% thereafter)
<TABLE>
<CAPTION>
If the Policy is
annuitized at the end
of the applicable time
If the Policy is period or if the
surrendered at the end Policy is not
of the applicable time surrendered or
period. annuitized.
---------------------------------------------
1 3 5 10 1 3 5 10
Subaccounts Year Years Years Years Year Years Years Years
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Endeavor Asset
Allocation A $ 94 $120 $155 $269 $24 $75 $128 $269
------------------------------------------------
B $ 93 $115 $147 $253 $23 $70 $121 $253
- ----------------------------------------------------------------------------
Endeavor Money Market A $ 92 $113 $145 $248 $22 $69 $118 $248
------------------------------------------------
B $ 91 $109 $137 $233 $21 $64 $110 $233
- ----------------------------------------------------------------------------
T. Rowe Price Equity
Income A $ 95 $121 $157 $274 $25 $76 $131 $274
------------------------------------------------
B $ 93 $117 $150 $258 $23 $72 $123 $258
- ----------------------------------------------------------------------------
T. Rowe Price Growth
Stock A $ 95 $122 $158 $276 $25 $77 $132 $276
------------------------------------------------
B $ 94 $117 $151 $260 $24 $73 $124 $260
- ----------------------------------------------------------------------------
T. Rowe Price
International A $ 96 $125 $164 $286 $26 $80 $137 $286
------------------------------------------------
Stock B $ 95 $120 $156 $272 $25 $76 $130 $272
- ----------------------------------------------------------------------------
Endeavor Value Equity A $ 95 $121 $157 $274 $25 $76 $131 $274
------------------------------------------------
B $ 93 $117 $150 $258 $23 $72 $123 $258
- ----------------------------------------------------------------------------
Endeavor Opportunity
Value A $ 96 $125 $164 $287 $26 $81 $138 $287
------------------------------------------------
B $ 95 $121 $157 $273 $25 $76 $130 $273
- ----------------------------------------------------------------------------
Endeavor Enhanced Index A $ 97 $129 $170 $298 $27 $84 $143 $298
------------------------------------------------
B $ 96 $124 $162 $283 $26 $79 $136 $283
- ----------------------------------------------------------------------------
Dreyfus U.S. Government A $ 94 $117 $151 $260 $24 $73 $124 $260
------------------------------------------------
Securities B $ 92 $113 $143 $245 $22 $68 $117 $245
- ----------------------------------------------------------------------------
Dreyfus Small Cap Value A $ 96 $124 $162 $282 $26 $79 $135 $282
------------------------------------------------
B $ 94 $119 $154 $267 $24 $75 $128 $267
- ----------------------------------------------------------------------------
Endeavor Select 50 A $101 $140 $189 $335 $31 $95 $162 $335
------------------------------------------------
B $100 $136 $182 $321 $30 $91 $155 $321
- ----------------------------------------------------------------------------
Endeavor High Yield A $ 99 $135 $180 $317 $29 $90 $153 $317
------------------------------------------------
B $ 98 $130 $172 $303 $28 $54 $146 $303
- ----------------------------------------------------------------------------
Endeavor Janus Growth A $ 95 $122 $158 $276 $25 $77 $132 $276
------------------------------------------------
B $ 94 $117 $151 $260 $24 $73 $124 $260
</TABLE>
10
<PAGE>
The above tables will assist you in understanding the costs and expenses that
you will bear, directly or indirectly. These include the 1998 expenses of the
underlying portfolios, except for Endeavor Janus Growth (whose expenses listed
above are estimates for the first full year of operations.) In addition to the
expenses listed above, premium taxes, currently ranging from 0% to 3.50% of
premium payments may be applicable.
In these examples, the $35 annual service charge is reflected as a charge of
0.0522% based on an average policy value of $67,071. Normally, the $35 (but not
more than 2% of the policy value) service charge would be waived if the premium
payment, less partial withdrawals, is at least $50,000 on a policy anniversary.
However, $35 has been included in these examples for illustrative purposes.
These examples should not be considered a representation of past or future
expenses, and actual expenses may be greater or lesser than those shown. The
assumed 5% annual return is hypothetical and should not be considered a
representation of past or future annual returns, which could be greater or less
than the assumed rate.
Financial Information. Condensed financial information for the subaccounts are
in Appendix A to this prospectus.
11
<PAGE>
1. THE ANNUITY POLICY
This prospectus describes The Endeavor Variable Annuity Policy offered by AUSA
Life Insurance Company, Inc.
An annuity is a policy between you, the owner, and an insurance company (in
this case AUSA Life), where the insurance company promises to pay you an income
in the form of annuity payments. These payments begin on a designated date,
referred to as the annuity commencement date. Until the annuity commencement
date, your annuity is in the accumulation phase and the earnings are tax
deferred. Tax deferral means you generally are not taxed on your annuity until
you take money out of your annuity. After the annuity commencement date, your
annuity switches to the income phase.
The policy is a flexible premium variable annuity. You can use the policy to
accumulate funds for retirement or other long-term financial planning purposes.
It is a "flexible premium" policy because after you purchase it, you can
generally make additional investments of any amount of $50 or more, until the
annuity commencement date. But you are not required to make any additional
investments.
The policy is a "variable" annuity because the value of your investments can go
up or down based on the performance of your investment choices. If you select
the variable annuity portion of the policy, the amount of money you are able to
accumulate in your policy during the accumulation phase depends upon the
performance of your investment choices. The amount of annuity payments you
receive during the income phase from the variable annuity portion of your
policy also depends upon the investment performance of your investment choices
for the income phase.
The policy also contains a fixed account. The fixed account offers a one year
interest rate that is guaranteed by AUSA Life not to decrease during each one
year period.
2. ANNUITY PAYMENTS (THE INCOME PHASE)
You choose the annuity commencement date. You can change this date by giving us
30 days written notice before the current annuity commencement date. The new
annuity commencement date must be at least 30 days after we receive the change.
The latest annuity commencement date cannot be after the policy month following
the month in which the annuitant attains age 90.
Election of Annuity Payment Option. Before the annuity commencement date, if
the annuitant is alive, you may choose an annuity payment option or change your
election. If the annuitant dies before the annuity commencement date, the
beneficiary may elect to receive the death benefit in a lump sum or under one
of the annuity payment options.
Unless you specify otherwise, the annuitant will receive the annuity payments.
After the annuitant's death, the beneficiary will receive any remaining
guaranteed payments.
Annuity Payment Options
The policy provides five annuity payment options that are described below. You
may chose any combination of annuity payment options. We will use your policy
value to provide these annuity payments. If the policy value on the annuity
commencement date is less than $2,000, AUSA Life reserves the right to pay it
in one lump sum in lieu of applying it under an annuity payment option. You can
receive annuity payments monthly, quarterly, semi-annually, or annually.
Unless you choose to receive variable payments under annuity payment options 3
or 5, the amount of each payment will be set on the annuity commencement date
and will not change. You may, however, choose to receive variable payments
under payment options 3 and 5. The dollar amount of the first variable payment
will be determined in accordance with the annuity payment rates set forth in
the applicable
12
<PAGE>
table contained in the policy. The dollar amount of additional variable
payments will vary based on the investment performance of the subaccount(s).
The dollar amount of each variable payment after the first may increase,
decrease, or remain constant. If the actual investment performance exactly
matched the assumed investment return of 5% at all times, the amount of each
variable annuity payment would remain equal. If actual investment performance
exceeds the assumed investment return, the amount of the variable annuity
payments would increase. Conversely, if actual investment performance is lower
than the assumed investment return, the amount of the variable annuity payments
would decrease.
A charge for premium taxes may be made when annuity payments begin.
The annuity payment options are explained below. Options 1, 2, and 4 are fixed
only. Options 3 and 5 can be fixed or variable.
Payment Option 1--Interest Payments. We will pay the interest on the amount we
use to provide annuity payments in equal payments or this amount may be left to
accumulate for a period of time you and AUSA Life agree to. You and AUSA Life
will agree on withdrawal rights when you elect this option.
Payment Option 2--Income for a Specified Period. We will make level payments
only for the fixed period you choose. No funds will remain at the end.
Payment Option 3--Life Income. You may choose between:
Fixed Payments
. No Period Certain--We will make level payments only during the
annuitant's lifetime.
. 10 Years Certain--We will make level payments for the longer of the
annuitant's lifetime or ten years.
. Guaranteed Return of Policy Proceeds--We will make level payments for
the longer of the annuitant's lifetime or until the total dollar amount
of payments we made to you equals the amount applied to this option.
Variable Payments
. No Period Certain--Payments will be made only during the lifetime of the
annuitant.
. 10 Years Certain--Payments will be made for the longer of the
annuitant's lifetime or ten years.
Payment Option 4--Income of a Specified Amount. Payments are made for any
specified amount until the amount applied to this option, with interest, is
exhausted. This will be a series of level payments followed by a smaller final
payment.
Payment Option 5--Joint and Survivor Annuity. You may choose between:
Fixed Payments
. Payments are made during the joint lifetime of the payee and a joint
payee of your selection. Payments will be made as long as either person
is living.
Variable Payments
. Payments are made as long as either the payee or the joint payee is
living.
Other annuity payment options may be arranged by agreement with AUSA Life.
NOTE CAREFULLY:
IF:
. you choose Life Income with No Period Certain or a Joint and Survivor
Annuity; and
. the annuitant(s) dies before the due date of the second annuity payment;
THEN:
. we may make only one annuity payment.
IF:
. you choose Income for a Specified Period, Life Income with 10 years Certain,
Life Income with Guaranteed Return of Policy Proceeds, or Income of a
Specified Amount; and
. the person receiving payments dies prior to the end of the guaranteed
period;
13
<PAGE>
THEN:
. the remaining guaranteed payments will be continued to that person's
beneficiary, or their present value may be paid in a single sum.
We will not pay interest on amounts represented by uncashed annuity payment
checks if the postal or other delivery service is unable to deliver checks to
the payee's address of record. The payee is responsible to keep AUSA Life
informed of the payee's current address of record.
3. PURCHASE
Policy Issue Requirements
AUSA Life will issue a policy IF:
. AUSA Life receives all information needed to issue the policy;
. AUSA Life receives a minimum initial premium payment; and
. You (annuitant and any joint owner) are age 80 or younger.
. You meet our underwriting standards.
Premium Payments
You should make checks for premium payments payable only to AUSA Life Insurance
Company, Inc. and send them to the administrative and service office. Your
check must be honored in order for AUSA Life to pay any associated payments and
benefits due under the policy.
Initial Premium Requirements
The initial premium payment for nonqualified policies must be at least $5,000,
and at least $1,000 for qualified policies. The initial premium payment for
policies issued under section 403(b) of the Internal Revenue Code is $50. We
will credit your initial premium payment to your policy within two business
days after the day we receive it and your complete policy information. If we
are unable to credit your initial premium payment, we will contact you within
five business days and explain why. We will also return your initial premium
payment at that time unless you tell us to keep it and credit it as soon as
possible.
The date on which we credit your initial premium payment to your policy is the
policy date. The policy date is used to determine policy years, policy months
and policy anniversaries.
Additional Premium Payments
You are not required to make any additional premium payments. However, you can
make additional premium payments as often as you like during the lifetime of
the annuitant and during the accumulation phase. Additional premium payments
must be at least $50. We will credit additional premium payments to your policy
as of the business day we receive your premium and required information.
Maximum Total Premium Payments
We allow premium payments up to a total of $1,000,000 without prior approval.
Allocation of Premium Payments
When you purchase a policy, we will allocate your premium payment to the
investment choices you select. Your allocation must be in whole percentages and
must total 100%. We will allocate additional premium payments the same way,
unless you request a different allocation.
If you allocate premium payments to the "dollar cost averaging fixed account,"
directions regarding the subaccount(s) to which transfers are to be made must
be specified or your premium payment cannot be accepted.
You may change allocations for future additional premium payments by sending us
written instructions. The allocation change will apply to premium payments
received after the date we receive the change request.
Policy Value
You should expect your policy value to change from valuation period to
valuation period. A valuation period begins at the close of trading on the New
York Stock
14
<PAGE>
Exchange on each business day and ends at the close of trading on the next
succeeding business day. A business day is each day that the New York Stock
Exchange is open. The New York Stock Exchange generally closes at 4:00 p.m.
eastern time. Holidays are generally not business days.
4. INVESTMENT CHOICES
The Separate Account
The separate account currently consists of thirteen subaccounts.
The subaccounts invest in shares of the various portfolios of the Endeavor
Series Trust. The companies that provide investment advice and administrative
services for the underlying portfolios offered through this policy are listed
below. The following separate account investment choices are currently offered
through this policy:
Subadvised by Morgan Stanley
Asset Management Inc.
Endeavor Asset Allocation Portfolio
Endeavor Money Market Portfolio
Subadvised by T. Rowe Price Associates, Inc.
T. Rowe Price Equity Income Portfolio
T. Rowe Price Growth Stock Portfolio
Subadvised by Rowe Price-Fleming
International, Inc.
T. Rowe Price International Stock Portfolio
Subadvised by OpCap Advisors
Endeavor Value Equity Portfolio
Endeavor Opportunity Value
Subadvised by J.P. Morgan Investment Management Inc.
Endeavor Enhanced Index Portfolio
Subadvised by The Dreyfus Corporation
Dreyfus U.S. Government Securities Portfolio
Dreyfus Small Cap Value Portfolio
Subadvised by Montgomery Asset
Management, LLC
Endeavor Select 50 Portfolio
Subadvised by Massachusetts Financial
Services Company
Endeavor High Yield Portfolio
Subadvised by Janus Capital Corporation
Endeavor Janus Growth Portfolio
The general public may not purchase shares of these underlying portfolios. The
investment objectives and policies may be similar to other portfolios and
mutual funds managed by the same investment adviser or manager that are sold
directly to the public. You should not expect that the investment results of
the other portfolios and mutual funds will be comparable to those of the
underlying funds.
More detailed information, including an explanation of the portfolio's
investment objectives, may be found in the current prospectus for the Endeavor
Series Trust, which is attached to this prospectus. You should read the
prospectus for the Endeavor Series Trust carefully before you invest.
We may receive expense reimbursements or other revenues from the Endeavor
Series Trust or its manager. The amount of these reimbursements or revenues, if
any, may be based on the amount of assets that AUSA Life or the separate
account invests in the underlying portfolios.
The Fixed Account
Premium payments allocated and amounts transferred to the fixed account become
part of the general account of AUSA Life. Interests in the general account have
not been registered under the Securities Act of 1933 (the "1933 Act"), nor is
the general account registered as an investment company under the Investment
Company Act of 1940 (the "1940 Act"). Accordingly, neither the general account
nor any interests therein are generally subject to the provisions of the 1933
or 1940 Acts. AUSA Life has been advised that the staff of the SEC has not
reviewed the disclosures in this prospectus which relate to the fixed account.
We guarantee that the interest credited to the fixed account will not be less
than 3% per year. At the end of a guaranteed period option, the value in that
guaranteed period option will automatically be transferred into a new
guaranteed period option of the
15
<PAGE>
same length (or the next shorter period if the same period is no longer
offered) at the current interest rate for that period. You can transfer to
another investment choice by giving us notice within 30 days before the end of
the expiring guaranteed period.
If you select the fixed account, your money will be placed with the other
general assets of AUSA Life. The amount of money you are able to accumulate in
the fixed account during the accumulation phase depends upon the total interest
credited. The amount of annuity payments you receive during the income phase
from the fixed portion of your policy will remain level for the entire income
phase.
Transfers
During the accumulation phase, you may make transfers from any investment
choice as often as you wish within certain limitations. Transfers from the
guaranteed period option of the fixed account are limited to the following:
. At the end of a guaranteed period option, you must notify us within 30 days
prior to the end of the guaranteed period that you wish to transfer the
amount in the guaranteed period option to another investment choice.
. Transfers of amounts equal to interest credited in the one year guaranteed
period option to any subaccount prior to the end of the guaranteed period on
a monthly, quarterly, semi-annual or annual basis. This may affect your
overall interest-crediting rate, because transfers are deemed to come from
the oldest premium payment first.
. Transfers of amounts from the one year guaranteed period option prior to the
end of the guaranteed period option is 25% of the policy value in that
guaranteed period option, less any previous transfer during the current
policy year.
There are no transfers permitted out of the dollar cost averaging fixed account
option except through the dollar cost averaging program.
Each transfer must be at least $500, or the entire subaccount or guaranteed
period option policy value. If less than $500 remains, then we reserve the
right to either deny the transfer or include that amount in the transfer.
During the income phase of your policy, you may transfer values out of any
subaccount up to four times per year. However, you cannot transfer values out
of the fixed account in this phase. The minimum amount that can be transferred
during this phase is the lesser of $10 of monthly income, or the entire monthly
income of the annuity units in the subaccount from which the transfer is being
made.
Currently, there is no charge for transfers. However, the number of transfers
permitted may be limited in the future and charges per transfer may apply in
the future.
Dollar Cost Averaging Program
During the accumulation phase, you may instruct us to automatically transfer
money from the dollar cost averaging fixed account option, the Endeavor Money
Market Subaccount, or the Dreyfus U.S. Government Securities Subaccount, into
any other subaccount. You may specify the dollar amount to be transferred
either monthly or quarterly; however each transfer must be at least $500. A
minimum of 6 monthly or 4 quarterly transfers are required and a maximum of 24
months or 8 quarterly transfers are allowed. Transfers must begin within 30
days. We will make the transfers on the 28th day of the applicable month. There
is no charge for this program.
Dollar cost averaging buys more accumulation units when prices are low and
fewer accumulation units when prices are high. It does not guarantee profits or
assure that you will not experience a loss. You should consider your ability to
continue the dollar cost averaging program during all economic conditions.
16
<PAGE>
We may credit different interest rates for dollar cost averaging programs of
varying time periods. If you discontinue the dollar cost averaging program
before its completion, then the interest credited on amounts in the dollar cost
averaging fixed account may be adjusted downward, but not below the minimum
guaranteed effective annual interest rate of 3%.
Asset Rebalancing
During the accumulation phase you can instruct us to automatically rebalance
the amounts in your subaccounts to maintain your desired asset allocation. This
feature is called asset rebalancing and can be started and stopped at any time
free of charge. However, we will not rebalance if you are in the dollar cost
averaging program or if any other transfer is requested. Asset rebalancing
ignores amounts in the fixed account. You can choose to rebalance monthly,
quarterly, semi-annually, or annually.
5. EXPENSES
There are charges and expenses associated with your policy that reduce the
return on your investment in the policy.
Surrender Charges
During the accumulation phase, you can withdraw part or all of the cash value.
Cash value is the policy value decreased by any applicable surrender charge.
After the first year, you can withdraw up to 10% of your policy value once each
year free of surrender charges. This amount is referred to as the free
percentage and is determined at the time of the withdrawal. If you withdraw
money in excess of 10% of your policy value, you might have to pay a surrender
charge, which is a contingent deferred sales charge, on the excess amount. The
following schedule shows the surrender charges that apply during the seven
years following each premium payment:
<TABLE>
<CAPTION>
Surrender Charge
Number of Years (as a percentage of
Since Premium premium payment
Payment Date withdrawn)
- ------------------------------------------------------------------------------
<S> <C>
0 - 1 7%
- ------------------------------------------------------------------------------
1 - 2 6%
- ------------------------------------------------------------------------------
2 - 3 5%
- ------------------------------------------------------------------------------
3 - 4 4%
- ------------------------------------------------------------------------------
4 - 5 3%
- ------------------------------------------------------------------------------
5 - 6 2%
- ------------------------------------------------------------------------------
6 - 7 1%
- ------------------------------------------------------------------------------
7 or more 0%
</TABLE>
For example, assume your policy value is $100,000 at the beginning of policy
year 2 and you withdraw $30,000. Since that amount is more than your free
percentage, you would pay a surrender charge of $1,200 on the remaining $20,000
(6% of $30,000--$10,000).
You receive the full amount of a requested partial withdrawal because we deduct
any applicable surrender charge from your remaining policy value. You receive
your cash value upon full surrender.
For surrender charge purposes, the oldest premium is considered to be withdrawn
first.
Keep in mind that withdrawals may be taxable, and if made before age 59 1/2,
may be subject to a 10% federal penalty tax. For tax purposes, withdrawals are
considered to come from earnings first.
Mortality and Expense Risk Fee
We charge a fee as compensation for bearing certain mortality and expense risks
under the policy. Examples include a guarantee of annuity rates, the death
benefits, certain expenses of the policy, and assuming the risk that the
current charges will be insufficient in the future to cover costs of
administering the policy. For the Annual Step-Up Death Benefit, the mortality
and expense risk fee is at an annual rate of 1.40% of assets for the first
seven policy years and 1.25% of assets thereafter. For the Return of Premium
Death Benefit the mortality and expense risk fee is at an
17
<PAGE>
annual rate of 1.25% of assets for the first seven policy years and 1.10%
thereafter. This annual fee is assessed daily based on the net asset value of
each subaccount.
If this charge does not cover our actual costs, we absorb the loss. Conversely,
if the charge more than covers actual costs, the excess is added to our
surplus. We expect to profit from this charge. We may use any profit for any
proper purpose, including distribution expenses.
Administrative Charges
We deduct an administrative charge to cover the costs of administering the
policies. This charge is equal to 0.15% per year of the daily net asset value
of the separate account.
In addition, an annual service charge of the lesser of $35 or 2% of the policy
value is charged on each policy anniversary and at surrender. The service
charge is waived if your policy value or the sum of your premiums, less all
partial withdrawals, is at least $50,000.
Premium Taxes
Some states assess premium taxes on the premium payments you make. We currently
do not deduct for these taxes at the time you make a premium payment. However,
we will deduct the total amount of premium taxes, if any, from the policy value
when:
. you elect to begin receiving annuity payments;
. you surrender the policy; or
. you die and a death benefit is paid (you must also be the annuitant for the
death benefit to be paid).
Generally, premium taxes range from 0% to 3.50%, depending on the state.
Federal, State and Local Taxes
We may in the future deduct charges from the policy for any taxes we incur
because of the policy. However, no deductions are being made at the present
time.
Transfer Fee
You are allowed to make 12 free transfers per year before the annuity
commencement date. If you make more than 12 transfers per year, we reserve the
right to charge $10 for each transfer. Premium payments, asset rebalancing and
dollar cost averaging transfers are not considered transfers. All transfer
requests made at the same time are treated as a single request.
Portfolio Management Fees
The value of the assets in each subaccount will reflect the fees and expenses
paid by the underlying fund. A description of these expenses is found in the
underlying fund's prospectus.
6. TAXES
NOTE: AUSA Life has prepared the following information on federal income taxes
as a general discussion of the subject. It is not intended as tax advice to any
individual. You should consult your own tax adviser about your own
circumstances. AUSA Life has included an additional discussion regarding taxes
in the Statement of Additional Information.
Annuity Policies in General
Deferred annuity policies are a way of setting aside money for future needs
like retirement. Congress recognized how important saving for retirement is and
provided special rules in the Internal Revenue Code for annuities.
Simply stated, these rules provide that generally you will not be taxed on the
earnings, if any, on the money held in your annuity policy until you take the
money out. This is referred to as tax deferral. There are different rules as to
how you will be taxed depending on how you take the money out and the type of
policy--qualified or nonqualified (discussed below).
You will not be taxed on increases in the value of your policy until a
distribution occurs--either as a withdrawal or as
18
<PAGE>
annuity payments. When a non-natural person (e.g., corporation or certain other
entities other than tax-qualified trusts) owns a nonqualified policy, the
policy will generally not be treated as an annuity for tax purposes.
Qualified and Nonqualified Policies
If you purchase the policy under an individual retirement annuity, a pension
plan, or specially sponsored program, your policy is referred to as a qualified
policy.
Qualified policies are issued in connection with the following plans:
. Individual Retirement Annuity (IRA): A traditional IRA allows individuals to
make contributions, which may be deductible, to the Contract. A Roth IRA
also allows individuals to make contributions to the Contract, but it does
not allow a deduction for contributions, and distributions may be tax-free
if the owner meets certain rules.
. Tax-Sheltered Annuity (403(b) Plan): A 403(b) Plan may be made available to
employees of certain public school systems and tax-exempt organizations and
permits contributions to the Contract on a pre-tax basis.
. Corporate Pension and Profit-Sharing and H.R. 10 Plan: Employers and self-
employed individuals can establish pension or profit-sharing plans for their
employees or themselves and make contributions to the Contract on a pre-tax
basis.
. Deferred Compensation Plan (457 Plan): Certain governmental and tax-exempt
organizations can establish a plan to defer compensation on behalf of their
employees through contributions to the Contract.
If you purchase the policy as an individual and not under an individual
retirement annuity, 403(b) plan, 457 plan, or pension or profit sharing plan,
your policy is referred to as a nonqualified policy.
Withdrawals--Nonqualified Policies
If you make a withdrawal from your policy before the annuity commencement date,
the Internal Revenue Code treats that withdrawal as first coming from earnings
and then from your premium payments. When you make a withdrawal you are taxed
on the amount of the withdrawal that is earnings. Different rules apply for
annuity payments. See "Annuity Payments" below.
The Internal Revenue Code also provides that withdrawn earnings may be subject
to a penalty. The amount of the penalty is equal to 10% of the amount that is
includable in income. Some withdrawals will be exempt from the penalty. They
include any amounts:
. paid on or after the taxpayer reaches age 59 1/2;
. paid after the taxpayer dies;
. paid if the taxpayer becomes totally disabled (as that term is defined in
the Internal Revenue Code);
. paid in a series of substantially equal payments made annually (or more
frequently) under a lifetime annuity;
. paid under an immediate annuity; or
. which come from premium payments made prior to August 14, 1982.
All deferred non-qualified annuity policies that are issued by AUSA Life (or
its affiliates) to the same owner during any calendar year are treated as one
annuity for purposes of determining the amount includable in the owner's income
when a taxable distributions occurs.
Withdrawals--Qualified Policies
The above information describing the taxation of nonqualified policies does not
apply to qualified policies. There are special rules that govern with respect
to qualified policies. Generally, these rules restrict:
. the amount that can be contributed to the policy during any year; and
. the time when amounts can be paid from the policies.
In addition, a penalty tax may be assessed on amounts withdrawn from the policy
prior to the date you reach age 59 1/2, unless
19
<PAGE>
you meet one of the exceptions to this rule. You may also be required to begin
taking minimum distributions from the policy by a certain rule. The terms of
the plan may limit the rights otherwise available to you under the policies.
We have provided more information in the Statement of Additional Information.
You should consult your legal counsel or tax adviser if you are considering
purchasing a policy for use with any retirement plan.
Withdrawals--403(b) Policies
The Internal Revenue Code limits the withdrawal of premium payments from
certain 403(b) policies. Withdrawals can generally only be made when an owner:
. reaches age 59 1/2;
. leaves his/her job;
. dies;
. becomes disabled (as that term is defined in the Internal Revenue Code); or
. in the case of hardship. However, in the case of hardship, the owner can
only withdraw the premium payments and not any earnings.
Diversification and Distribution Requirements
The Internal Revenue Code provides that the underlying investments for a
variable annuity must satisfy certain diversification requirements in order to
be treated as an annuity policy. The policy must also meet certain distribution
requirements at the death of an owner in order to be treated as an annuity
policy. These diversification and distribution requirements are discussed in
the Statement of Additional Information. AUSA Life may modify the policy to
attempt to maintain favorable tax treatment.
Taxation of Death Benefit Proceeds
Amounts may be distributed from the policy because of the death of an owner or
the annuitant. Generally, such amounts are includable in the income of the
recipient:
. if distributed in a lump sum, these amounts are taxed in the same manner as
a full surrender; or
. if distributed under an annuity payment option, these amounts are taxed in
the same manner as annuity payments.
For these purposes, the "investment in the contract" is not affected by the
owner's or annuitant's death. That is, the "investment in the contract" remains
generally the total premium payments, less amounts received, which were not
includable in gross income.
Annuity Payments
Although the tax consequences may vary depending on the annuity payment option
you select, in general, for nonqualified and certain qualified policies, only a
portion of the annuity payments you receive will be includable in your gross
income.
In general, the excludable portion of each annuity payment you receive will be
determined as follows:
. Fixed payments--by dividing the "investment in the contract" on the annuity
commencement date by the total expected value of the annuity payments for
the term of the payments. This is the percentage of each annuity payment
that is excludable.
. Variable payments--by dividing the "investment in the contract" on the
annuity commencement date by the total number of expected periodic payments.
This is the amount of each annuity payment that is excludable.
The remainder of each annuity payment is includable in gross income. Once the
"investment in the contract" has been fully recovered, the full amount of any
additional annuity payments is includable in gross income.
If you select more than one annuity payment option, special rules govern the
allocation of the Policy's entire "investment in the contract" to each such
option, for purposes of determining the excludable amount of each payment
received under
20
<PAGE>
that option. We advise you to consult a competent tax adviser as to the
potential tax effects of allocating amounts to any particular annuity payment
option.
If, after the annuity commencement date, annuity payments stop because an
annuitant died, the excess (if any) of the "investment in the contract" as of
the annuity commencement date over the aggregate amount of annuity payments
received that was excluded from gross income is generally allowable as a
deduction for your last taxable year.
Transfers, Assignments or Exchanges of Policies
A transfer of ownership or assignment of a policy, the designation of an
annuitant or other beneficiary who is not also the owner, the selection of
certain annuity commencement dates, or a change of annuitant, may result in
certain income or gift tax consequences to the owner that are beyond the scope
of this discussion. An owner contemplating any such transfer, assignment,
selection, or change should contact a competent tax adviser in respect to the
potential tax effects of such a transaction.
Possible Tax Law Changes
Although the likelihood of legislative changes is uncertain, there is always
the possibility that the tax treatment of the policy could change by
legislation or otherwise. You should consult a tax adviser with respect to
legislative developments and their effect on the policy.
7. ACCESS TO YOUR MONEY
Surrenders
During the accumulation phase, you can have access to the money in your policy
in several ways:
. by making a withdrawal (either a complete or partial withdrawal); or
. by taking annuity payments.
If you want to make a complete withdrawal, you will receive the value of your
policy, minus:
. surrender charges;
. premium taxes; and
. service charges.
If you want to take a partial withdrawal, in most cases it must be for at least
$500. Unless you tell us otherwise, we will take the withdrawal from each of
the investment choices in proportion to the policy value.
Remember that any withdrawal you take will reduce the policy value, and might
reduce the amount of the death benefit. See Section 9, Death Benefit, for more
details. Withdrawals may be subject to a surrender charge.
Income taxes, federal tax penalties and certain restrictions may apply to any
withdrawals you make.
During the income phase, the annuity payment option you select will determine
your access to the money in your policy.
Delay of Payment and Transfers
Payment of any amount due from the separate account for a surrender, a death
benefit, or the death of the owner of a nonqualified policy, will generally
occur within seven business days from the date all required information is
received by AUSA Life. AUSA Life may be permitted to defer such payment from
the separate account if:
. the New York Stock Exchange is closed other than for usual weekends or
holidays or trading on the Exchange is otherwise restricted; or
. an emergency exists as defined by the SEC or the SEC requires that trading
be restricted; or
. the SEC permits a delay for the protection of owners.
In addition, transfers of amounts from the subaccounts may be deferred under
these circumstances.
Pursuant to the requirements of certain state laws, we reserve the right to
defer
21
<PAGE>
payment of the cash value from the fixed account for up to six months.
Systematic Payout Option
You can receive regular payments from your policy by using the systematic
payout option. Under this option, you can receive up to 10% (annually) of the
policy value free of surrender charges. Payments can be made monthly,
quarterly, semi-annually, or annually.
8. PERFORMANCE
AUSA Life periodically advertises performance of the various investment
portfolios. We may disclose at least four different kinds of performance.
First, we may calculate performance by determining the percentage change in the
value of an accumulation unit by dividing the increase (decrease) for that unit
by the value of the accumulation unit at the beginning of the period. This
performance number reflects the deduction of the mortality and expense risk
fees and administrative charges. It does not reflect the deduction of any
applicable premium taxes or surrender charges. The deduction of any applicable
premium taxes or surrender charges would reduce the percentage increase or make
greater any percentage decrease.
Second, any advertisement will also include total return figures, which reflect
the deduction of the mortality and expense risk fees, administrative charges
and surrender charges.
Third, for periods starting prior to the date the policies were first offered,
the performance will be based on the historical performance of the
corresponding investment portfolios for the periods commencing from the date on
which the particular investment portfolio was made available through the
separate account. Fourth, in addition, for certain investment portfolios,
performance may be shown for the period commencing from the inception date of
the investment portfolio. These figures should not be interpreted to reflect
actual historical performance of the separate account.
We also may, from time to time, include in our advertising and sales materials,
tax deferred compounding charts and other hypothetical illustrations, which may
include, comparisons of currently taxable and tax deferred investment programs,
based on selected tax brackets.
Appendix B contains performance information that you may find useful. It is
divided into various parts, depending upon the type of performance information
shown. Future performance will vary and future results will not be the same as
the results shown.
9. DEATH BENEFIT
We will pay a death benefit to your beneficiary, under certain circumstances,
if the annuitant dies before the accumulation phase and the annuitant was also
an owner. (If the annuitant was not an owner, a death benefit may or may not be
paid. See below). The beneficiary may choose an annuity payment option, or may
choose to receive a lump sum.
When We Pay A Death Benefit
Before the Annuity Commencement Date
We will pay a death benefit to your beneficiary IF:
. you are both the annuitant and an owner of the policy; and
. you die before the annuity commencement date.
If the only beneficiary is your surviving spouse, then he or she may elect to
continue the policy as the new annuitant and owner, instead of receiving the
death benefit.
We will also pay a death benefit to your beneficiary IF:
. you are not the annuitant; and
. the annuitant dies before the annuity commencement date; and
. you specifically requested that the death benefit be paid upon the
annuitant's death.
22
<PAGE>
Distribution requirements apply to the policy value upon the death of any
owner. These requirements are detailed in the Statement of Additional
Information.
After the Annuity Commencement Date
The death benefit payable, if any, on or after the annuity commencement date
depends on the annuity payment option selected.
IF:
. you are not the annuitant; and
. you die on or after the annuity commencement date; and
. the entire interest in the policy has not been paid to you;
THEN:
. the remaining portion of such interest in the policy will be distributed at
least as rapidly as under the method of distribution being used as of the
date of your death.
When We Do Not Pay A Death Benefit
No death benefit is paid in the following cases:
IF:
. you are not the annuitant; and
. the annuitant dies prior to the annuity commencement date; and
. you did not specifically request that the death benefit be paid upon the
annuitant's death;
THEN:
. you will become the new annuitant and the policy will continue.
IF:
. you are not the annuitant; and
. you die prior to the annuity commencement date;
THEN:
. the new owner must surrender the policy for the policy value within five
years of your death.
Note carefully. If the owner does not name a contingent owner, the owner's
estate will become the new owner. If no probate estate is opened (because, for
example, the owner has precluded the opening of a probate estate by means of a
trust or other instrument), and AUSA Life has not received written notice of
the trust as a successor owner signed prior to the owner's death, then that
trust may not exercise ownership rights to the policy. It may be necessary to
open a probate estate in order to exercise ownership rights to the policy if no
contingent owner is named in a written notice received by AUSA Life.
Amount of Death Benefit
The death benefit may be paid as a lump sum or as annuity payments. The amount
of the death benefit depends on the guaranteed minimum death benefit option you
chose when you bought the policy. The death benefit will be the greatest of:
. policy value on the date we receive the required information; or
. cash value on the date we receive the required information; or
. guaranteed minimum death benefit (discussed below), plus premium payments,
less partial withdrawals from the date of death to the date the death
benefit is paid.
Guaranteed Minimum Death Benefit
On the policy application, you generally may choose one of the following
guaranteed minimum death benefit options listed below.
After the policy is issued, you cannot make an election and the death benefit
cannot be changed.
Return of Premium Death Benefit
Total premium payments, less any partial withdrawals (discussed below) as of
the date of death.
The Return of Premium Death Benefit will be in effect if you do not choose one
of the options below on the policy application.
Annual Step-Up Death Benefit
Largest policy value on the date of issue or on any policy anniversary prior to
the earlier of the date of death or the owner's
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<PAGE>
81st birthday, plus premium payments less any partial withdrawals taken,
subsequent to the date of the policy anniversary with the largest policy value.
The Annual Step-Up Death Benefit is not available if the owner or annuitant is
81 or older on the policy date.
IF, under both death benefit options:
. the surviving spouse elects to continue the policy instead of receiving the
death benefit; and
. the guaranteed minimum death benefit is greater than the policy value;
THEN:
. we will increase the policy value to be equal to the guaranteed minimum
death benefit. This increase is made only at the time the surviving spouse
elects to continue the policy.
Partial Withdrawal
When you request a partial withdrawal, your guaranteed minimum death benefit
will be reduced by an amount called the partial withdrawal. Under certain
circumstances, the partial withdrawal may be more than the amount of your
withdrawal request. It is also possible that if a death benefit is paid after
you have made a partial withdrawal, then the total amount paid could be less
than the total premium payments. We have included a detailed explanation of
this adjustment in the Statement of Additional Information.
10. OTHER INFORMATION
Ownership
You, as owner of the policy, exercise all rights under the policy. You can
change the owner at any time by notifying us in writing. An ownership change
may be a taxable event.
Assignment
You can also assign the policy any time during your lifetime. AUSA Life will
not be bound by the assignment until we receive written notice of the
assignment. We will not be liable for any payment or other action we take in
accordance with the policy before we receive notice of the assignment. An
assignment may be a taxable event. There may be limitations on your ability to
assign the policy.
AUSA Life Insurance Company, Inc.
AUSA Life Insurance Company, Inc. was incorporated under the laws of the State
of New York on October 3, 1947. It is engaged in the sale of life and health
insurance and annuity policies. AUSA Life is a wholly-owned indirect subsidiary
of AEGON USA, Inc. which conducts most of its operations through subsidiary
companies engaged in the insurance business or in providing non-insurance
financial services. All of the stock of AEGON USA, Inc., is indirectly owned by
AEGON N.V. of The Netherlands, the securities of which are publicly traded.
AEGON N.V., a holding company, conducts its business through subsidiary
companies engaged primarily in the insurance business. AUSA Life is licensed in
the District of Columbia, and in all states except Hawaii.
All obligations arising under the policies, including the promise to make
annuity payments, are general corporate obligations of AUSA Life.
The Separate Account
AUSA Life established a separate account, called the AUSA Endeavor Variable
Annuity Account, under the laws of the State of New York on September 27, 1994.
The separate account receives and currently invests the premium payments under
the policies that are allocated to it for investment in shares of certain
management investment companies. You may allocate shares under the policy to
the designated portfolios of the Endeavor Series Trust.
The separate account is registered with the SEC as a unit investment trust
under the Investment Company Act of 1940. However, the SEC does not supervise
the management, the investment practices, or the policies of the separate
account or AUSA Life.
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<PAGE>
The assets of the separate account are held in AUSA Life's name on behalf of
the separate account and belong to AUSA Life. However, those assets that
underlie the policies are not chargeable with liabilities arising out of any
other business AUSA Life may conduct. The separate account includes other
subaccounts that are not available under these policies.
Information about the separate account can be reviewed and copied at the SEC's
Public Reference Room in Washington, D.C. You may obtain information about the
operation of the public reference room by calling the SEC at 1-800-SEC-0330. In
addition, the SEC maintains a web site (http://www.sec.gov) that contains other
information regarding the mutual fund account.
Mixed and Shared Funding
Before making a decision concerning the allocation of premium payments to a
particular mutual fund subaccount, please read the Endeavor Series Trust
prospectus. The Endeavor Series Trust is not limited to selling its shares to
this mutual fund account can accept investments from any separate account or
qualified retirement plan. Since the portfolios of the underlying funds are
available to registered mutual fund accounts offering variable annuity products
of AUSA Life, as well as variable annuity and variable life products of other
insurance companies, there is a possibility that a material conflict may arise
between the interests of this mutual fund account and one or more of the mutual
fund accounts of another participating insurance company. In the event of a
material conflict, the affected insurance companies, including AUSA Life, agree
to take any necessary steps to resolve the matter. This includes removing their
mutual fund accounts from the underlying funds. See the underlying funds'
prospectuses for more details. The separate account is registered with the SEC
as a unit investment trust under the Investment Company Act of 1940. However,
the SEC does not supervise the management, the investment practices, or the
policies of the separate account or AUSA Life.
The assets of the separate account are held in AUSA Life's name on behalf of
the separate account and belong to AUSA Life. However, those assets that
underlie the policies are not chargeable with liabilities arising out of any
other business AUSA Life may conduct.
Information about the separate account can be reviewed and copied at the SEC's
Public Reference Room in Washington, D.C. You may obtain information about the
operation of the public reference room by calling the Commission at 1-800-SEC-
0330. In addition, the SEC maintains a web site (http://www.sec.gov) that
contains other information regarding the separate account.
Reinstatements
You may surrender your policy and transfer your money directly to another life
insurance company (sometimes referred to as a 1035 Exchange or a trustee-to-
trustee transfer). You may also request us to reinstate your policy after such
a transfer by returning the same total dollar amount of funds to the applicable
investment choices. The dollar amount will be used to purchase new accumulation
units at the then-current price. Because of changes in market value, your new
accumulation units may be worth more or less than the units you previously
owned. We recommend that you consult a tax professional to explain the possible
tax consequences of exchanges and/or reinstatements.
Voting Rights
AUSA Life will vote all shares of the Endeavor Series Trust in accordance with
instructions we receive from you and other owners that have voting interests in
the portfolios. We will send you and other owners written requests for
instructions on how to vote those shares. When we receive those instructions,
we will vote all of the shares in proportion to those instructions. If,
however, we determine that we are permitted to vote the shares in our own
right, we may do so.
Each person having a voting interest will receive proxy material, reports, and
other
25
<PAGE>
materials relating to the appropriate portfolio.
Distributor of the Policies
AFSG Securities Corporation is the principal underwriter of the policies. Like
AUSA Life, it is an indirect wholly-owned subsidiary of AEGON USA, Inc. It is
located at 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001. AFSG
Securities Corporation is registered as a broker/dealer under the Securities
Exchange Act of 1934. It is a member of the National Association of Securities
Dealers, Inc. ("NASD").
Commissions of up to 6% of premium payments will be paid to broker/dealers who
sell the policies under agreements with AFSG Securities Corporation. These
commissions are not deducted from premium payments. In addition, certain
production, persistency and managerial bonuses may be paid. AUSA Life may also
pay compensation to financial institutions for their services in connection
with the sale and servicing of the policies.
Non-participating Policy
The policy does not participate or share in the profits or surplus earnings of
AUSA Life. No dividends are payable on the policy.
Variations in Policy Provisions
Certain provisions of the policies may vary from the descriptions in this
prospectus in order to comply with different state laws. See your policy for
variations since any such state variations will be included in your policy or
in riders or endorsements attached to your policy.
Year 2000 Matters
In May 1996, AUSA Life Insurance Company, Inc. (AUSA Life) adopted and
presently has in place a Year 2000 Project Plan (the "Plan") to review and
analyze existing hardware and software systems, as well as voice and data
communications systems, to determine if they are Year 2000 compliant. As of
March 1, 1999, substantially all of AUSA Life's mission-critical systems are
Year 2000 compliant. The Year 2000 Project Plan remains on track as AUSA Life
continues with the validation of its mission-critical and non-mission-critical
systems, including revalidation testing in 1999. In addition, AUSA Life has
undertaken aggressive initiatives to test all systems that interface with any
third parties and other business partners. All of these steps are aimed at
allowing current operations to remain unaffected by the year 2000 date change.
As of the date of this prospectus, AUSA Life has identified and made available
what it believes are the appropriate resources of hardware, people, and
dollars, including the engagement of outside third parties, to ensure that the
Plan will be completed.
The actions taken by management under The Year 2000 Project Plan are intended
to significantly reduce AUSA Life's risk of a material business interruption
based on the Year 2000 issues. It should be noted that the Year 2000 computer
problem, and its resolution, is complex and multifaceted, and any company's
success cannot be conclusively known until the Year 2000 is reached. In spite
of its efforts or results, AUSA Life's ability to function unaffected to and
through the Year 2000 may be adversely affected by actions, or failure to act,
of third parties beyond our knowledge or control.
This statement is a Year 2000 Readiness Disclosure pursuant to Section 3(9) of
the Year 2000 Information and Readiness Disclosure Act, 15 U.S.C. Section 1
(1998).
IMSA
AUSA Life is a member of the Insurance Marketplace Standards Association
(IMSA). IMSA members subscribe to a set of ethical standards involving the
sales and service of individually sold life insurance and annuities. As a
member, we may use the IMSA logo and language in advertisements.
Legal Proceedings
There are no legal proceedings to which the separate account is a party or to
which
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<PAGE>
the assets of the account are subject. AUSA Life, like other life insurance
companies, is involved in lawsuits. In some class action and other lawsuits
involving other insurers, substantial damages have been sought and/or material
settlement payments have been made. Although the outcome of any litigation
cannot be predicted with certainty, AUSA Life believes that at the present time
there are no pending or threatened lawsuits that are reasonably likely to have
a material adverse impact on the separate account or AUSA Life.
Financial Statements
The financial statements of AUSA Life and the separate account are included in
the Statement of Additional Information.
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<S> <C>
Glossary of Special Terms
The Policy--General Provisions
Certain Federal Income Tax Consequences
Investment Experience
Historical Performance Data
Published Ratings
State Regulation of AUSA Life
Administration
Records and Reports
Distribution of the Policies
Other Products
Custody of Assets
Legal Matters
Independent Auditors
Other Information
Financial Statements
</TABLE>
27
<PAGE>
APPENDIX A
CONDENSED FINANCIAL INFORMATION
The accumulation unit values and the number of accumulation units outstanding
for each subaccount from the date of inception are shown in the following
tables.
Annual Step-Up Death Benefit
(Total Mutual Fund Account Annual Expenses: 1.55%)
<TABLE>
<CAPTION>
Accumulation Accumulation Number of
Unit Value Unit Value Accumulation
at Beginning of at End of Units at End of
Year Year Year
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Endeavor Asset Allocation
Subaccount 1998(/6/).......... $ 2.168718 $ 2.529863 31,242.813
- ------------------------------------------------------------------------------
Endeavor Money Market
Subaccount 1998(/6/).......... $ 1.196982 $ 1.236621 52,322.018
- ------------------------------------------------------------------------------
T. Rowe Price Equity Income
Subaccount 1998(/6/).......... $ 1.885394 $ 2.060734 145,891.829
- ------------------------------------------------------------------------------
T. Rowe Price Growth Stock
Subaccount 1998(/6/).......... $ 2.011973 $ 2.586964 206,657.078
- ------------------------------------------------------------------------------
T. Rowe Price International
Stock Subaccount 1998(/6/).... $ 1.313338 $ 1.529380 39,361.912
- ------------------------------------------------------------------------------
Endeavor Value Equity
Subaccount 1998(/6/).......... $ 2.022644 $ 2.207657 106,211.103
- ------------------------------------------------------------------------------
Endeavor Opportunity Value
Subaccount 1998(/6/).......... $ 1.136598 $ 1.197263 70,958.668
- ------------------------------------------------------------------------------
Endeavor Enhanced Index
Subaccount 1998(/6/).......... $ 1.199020 $ 1.574026 202,995.681
- ------------------------------------------------------------------------------
Dreyfus U.S. Government
Securities Subaccount
1998(/6/)..................... $ 1.231625 $ 1.283673 38,151.310
- ------------------------------------------------------------------------------
Dreyfus Small Cap Value
Subaccount 1998(/6/).......... $ 1.780884 $ 1.781675 119,463.216
- ------------------------------------------------------------------------------
Endeavor Janus Growth
Subaccount 1998(/6/).......... $19.428802 $31.822714 18,019.791
</TABLE>
28
<PAGE>
Return of Premium Death Benefit
(Total Mutual Fund Account Annual Expenses: 1.40%)
<TABLE>
<CAPTION>
Accumulation Accumulation Number of
Unit Value Unit Value Accumulation
at Beginning at End Units at End
of Year of Year of Year
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Endeavor Asset Allocation Subaccount
1998............................... $2.171948 $2.535888 2,197,971.735
1997............................... $1.833135 $2.171948 1,871,808.286
1996............................... $1.577873 $1.833135 1,123,469.170
1995............................... $1.301669 $1.577873 607,869.454
- -------------------------------------------------------------------------------
Endeavor Money Market Subaccount
1998............................... $1.196418 $1.239556 1,017,991.339
1997............................... $1.154219 $1.196418 611,981.762
1996............................... $1.115718 $1.154219 665,174.123
1995............................... $1.072424 $1.115718 271,034.756
- -------------------------------------------------------------------------------
T. Rowe Price Equity Income
Subaccount
1998............................... $1.925022 $2.065623 3,702,824.740
1997............................... $1.521680 $1.925022 2,982,510.532
1996............................... $1.287240 $1.521680 1,387,607.312
1995(/2/).......................... $1.000000 $1.287240 293,619.530
- -------------------------------------------------------------------------------
T. Rowe Price Growth Stock
Subaccount
1998............................... $2.043480 $2.593121 2,640,487.984
1997............................... $1.611613 $2.043480 1,925,118.021
1996............................... $1.353339 $1.611613 964,658.085
1995(/3/).......................... $1.000000 $1.353339 189,613.999
- -------------------------------------------------------------------------------
T. Rowe Price International Stock
Subaccount
1998............................... $1.346560 $1.533035 4,958,037.992
1997............................... $1.330640 $1.346560 4,334,553.810
1996............................... $1.171039 $1.330640 2,084,832.841
1995............................... $1.073958 $1.171039 681,093.799
- -------------------------------------------------------------------------------
Endeavor Value Equity Subaccount
1998............................... $2.086130 $2.212928 3,668,656.747
1997............................... $1.694854 $2.086130 2,981,906.712
1996............................... $1.387903 $1.694854 1,565,599.143
1995............................... $1.045610 $1.387903 547,233.586
- -------------------------------------------------------------------------------
Endeavor Opportunity Value
Subaccount
1998............................... $1.156993 $1.200101 886,891.881
1997............................... $1.004355 $1.156993 869,832.105
1996(/4/).......................... $1.000000 $1.004355 178,913.412
- -------------------------------------------------------------------------------
Endeavor Enhanced Index Subaccount
1998............................... $1.217647 $1.577775 1,007,218.727
1997(/5/).......................... $1.000000 $1.217647 422,227.210
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
Accumulation Accumulation Number of
Unit Value Unit Value Accumulation
at Beginning at End Units at End
of Year of Year of Year
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Dreyfus U.S. Government Securities
Subaccount
1998.............................. $ 1.215033 $ 1.286733 1,728,824.679
1997.............................. $ 1.128769 $ 1.215033 1,093,934.793
1996.............................. $ 1.124292 $ 1.128769 589,779.900
1995(/1/)......................... $ 0.985803 $ 1.124292 204,813.593
- -----------------------------------------------------------------------------
Dreyfus Small Cap Value Subaccount
1998.............................. $ 1.851229 $ 1.785929 2,915,575.262
1997.............................. $ 1.496065 $ 1.851229 2,294,637.110
1996.............................. $ 1.206843 $ 1.496065 1,239,443.264
1995.............................. $ 1.072941 $ 1.206843 535,283.029
- -----------------------------------------------------------------------------
Endeavor Janus Growth Subaccount
1998.............................. $19.665157 $31.898334 636,917.148
1997.............................. $16.964068 $19.665157 557,897.978
1996.............................. $14.583843 $16.964068 306,855.075
1995.............................. $10.051117 $14.583843 97,436.321
</TABLE>
(/1/)Period from June 16, 1995 through December 31, 1995
(/2/)Period from June 28, 1995 through December 31, 1995
(/3/)Period from April 28, 1995 through December 31, 1995
(/4/)Period from December 13, 1996 through December 31, 1996.
(/5/)Period from May 1, 1997 through December 31, 1997.
(/6/)Period from January 14, 1998 through December 31, 1998.
The Endeavor Select 50 Subaccount and the Endeavor High Yield Subaccount had
not commenced operations as of December 31, 1998. Accordingly, no comparable
data is available for those Subaccounts.
30
<PAGE>
APPENDIX B
HISTORICAL PERFORMANCE DATA
Standardized Performance Data
AUSA Life may advertise historical yields and total returns for the subaccounts
of the separate account. In addition, AUSA Life may advertise the effective
yield of the subaccount investing in the Endeavor Money Market Portfolio (the
"Endeavor Money Market Subaccount"). These figures will be calculated according
to standardized methods prescribed by the SEC. They are based on historical
earnings and are not intended to indicate future performance.
Endeavor Money Market Subaccount. The yield of the Endeavor Money Market
Subaccount for a policy refers to the annualized income generated by an
investment under a policy in the subaccount over a specified seven-day period.
The yield is calculated by assuming that the income generated for that seven-
day period is generated each seven-day period over a 52-week period and is
shown as a percentage of the investment. The effective yield is calculated
similarly but, when annualized, the income earned by an investment under a
policy in the subaccount is assumed to be reinvested. The effective yield will
be slightly higher than the yield because of the compounding effect of this
assumed reinvestment.
Other Subaccounts. The yield of a subaccount of the separate account (other
than the Endeavor Money Market Subaccount) for a policy refers to the
annualized income generated by an investment under a policy in the subaccount
over a specified thirty-day period. The yield is calculated by assuming that
the income generated by the investment during that thirty-day period is
generated each thirty-day period over a 12-month period and is shown as a
percentage of the investment.
The total return of a subaccount of the separate account refers to return
quotations assuming an investment under a policy has been held in the
subaccount for various periods of time including a period measured from the
date the subaccount commenced operations. When a subaccount has been in
operation for one, five, and ten years, respectively, the total return for
these periods will be provided. The total return quotations for a subaccount
will represent the average annual compounded rates of return that equate an
initial investment of $1,000 in the subaccount to the redemption value of that
investment as of the last day of each of the periods for which total return
quotations are provided. In addition to the standard data discussed above,
similar performance data for other periods may also be shown.
The yield and total return calculations for a subaccount do not reflect the
effect of any premium taxes that may be applicable to a particular policy. The
yield calculations also do not reflect the effect of any surrender charge that
may be applicable to a particular policy. To the extent that a premium tax
and/or surrender charge is applicable to a particular policy, the yield and/or
total return of that policy will be reduced. For additional information
regarding yields and total returns calculated using the standard formats
briefly summarized above, please refer to the Statement of Additional
Information, a copy of which may be obtained from the service office of AUSA
Life upon request.
Based on the method of calculation described in the Statement of Additional
Information, the average annual total returns for periods from inception of the
subaccounts to December 31, 1998, and for the one and five year periods ended
December 31, 1998, are shown in Table 1 below. Total returns shown reflect
deductions for the mortality and expense risk fee and administrative charges.
Performance figures may reflect the 1.25% mortality and expense risk fee for
the 5% Annually Compounding and Double Enhanced Death Benefits, or the 1.10%
mortality and expense risk fee for the Return of Premium Death Benefit.
Standard total return calculations will reflect the effect of surrender charges
that may be applicable to a particular period.
31
<PAGE>
TABLE 1
Standard Average Annual Total Returns(/1/)
Annual Step-Up Death Benefit
(Total Separate Account Annual Expenses: 1.55%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Inception
1 Year 5 Year of the Subaccount
Ended Ended Subaccount to Inception
Subaccount 12/31/98 12/31/98 12/31/98 Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset
Allocation.............. 11.22% N/A 12.51% January 1, 1995
T. Rowe Price Equity
Income.................. 1.73% N/A 19.09% June 28, 1995
T. Rowe Price Growth
Stock................... 21.40% N/A 26.23% April 28, 1995
T. Rowe Price
International Stock..... 8.30% N/A 5.39% January 1, 1995
Endeavor Value Equity.... 0.50% N/A 14.86% January 1, 1995
Endeavor Opportunity
Value................... (1.86%) N/A 15.10% December 13, 1996
Endeavor Enhanced Index.. 24.09% N/A 52.22% May 1, 1997
Dreyfus U.S. Government
Securities.............. 0.32% N/A 4.92% June 16, 1995
Dreyfus Small Cap
Value(/2/).............. (9.14%) N/A 10.29% January 1, 1995
Endeavor Select 50(/3/).. N/A N/A N/A N/A
Endeavor High
Yield(/3/).............. N/A N/A N/A N/A
Endeavor Janus
Growth(/4/)............. 56.86% N/A 16.45% January 1, 1995
- -------------------------------------------------------------------------------
</TABLE>
Return of Premium Death Benefit
(Total Separate Account Annual Expenses: 1.40%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Inception
1 Year 5 Year of the Subaccount
Ended Ended Subaccount to Inception
Subaccount 12/31/98 12/31/98 12/31/98 Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset
Allocation.............. 11.40% N/A 17.70% January 1, 1995
T. Rowe Price Equity
Income.................. 1.89% N/A 18.48% June 28, 1995
T. Rowe Price Growth
Stock................... 21.59% N/A 24.32% April 28, 1995
T. Rowe Price
International
Stock(/1/).............. 8.47% N/A 8.75% January 1, 1995
Endeavor Value Equity.... 0.70% N/A 20.22% January 1, 1995
Endeavor Opportunity
Value................... (1.71%) N/A 7.33% December 13, 1996
Endeavor Enhanced Index.. 24.29% N/A 28.82% May 1, 1997
Dreyfus U.S. Government
Securities.............. 0.48% N/A 4.35% June 16, 1995
Dreyfus Small Cap
Value(/2/).............. (9.00%) N/A 13.09% January 1, 1995
Endeavor Select 50(/3/).. N/A N/A N/A N/A
Endeavor High
Yield(/3/).............. N/A N/A N/A N/A
Endeavor Janus
Growth(/4/)............. 57.14% N/A 33.17% January 1, 1995
</TABLE>
32
<PAGE>
(/1/)These calculations also assume the policy has been in effect for less than
eight years and that annuity payments have not commenced. Policies in
effect for more than seven years would experience lower mortality and
expense risk fees and therefore the yield and/or total return of such
policies would be increased. In no event will policies which have reached
the annuity commencement date reflect a return based on a mortality and
expense risk fee and administrative charge of more than 1.40%, regardless
of the death benefit option in effect just prior to the commencement of
annuity payments.
(/2/)Effective September 16, 1996, The Dreyfus Corporation became the adviser to
the Dreyfus Small Cap Value Portfolio, formerly known as Quest for Value
Small Cap Portfolio. The portfolio was previously advised by OpCap
Advisors.
(/3/)The Endeavor Select 50 Portfolio and the Endeavor High Portfolio had not
commenced operations as of December 31, 1998. Accordingly, comparable
information is not available.
(/4/)Effective April 30, 1999, shares of the WRL Growth Portfolio were removed
and replaced with shares of the Endeavor Janus Growth Portfolio.
Performance prior to May 1, 1999 reflects performance of the annuity
subaccount while it was invested in the WRL Growth Portfolio.
The figures for the "from inception" periods in the above tables reflect waiver
of advisory fees and reimbursement of other expenses for all portfolios except
the T. Rowe Price Equity Income Portfolio and the T. Rowe Price Growth Stock
Portfolio. In the absence of such waivers, the average annual total return
figures above for the inception periods would have been lower.
33
<PAGE>
Non-Standardized Performance Data
In addition to the standard data discussed above, similar performance data for
other periods may also be shown.
AUSA Life may present the total return data described above on a non-
standardized basis. This means that the data may not be reduced by all the fees
and charges under the policy and that the data may be presented for different
time periods and for different premium payment amounts. Non-standardized
performance data will only be disclosed if standardized performance data for
the required periods is also disclosed. Table 2 shows average annual total
returns of the subaccounts since their inception reduce by all fees and charges
under the policy except surrender charges:
TABLE 2
Average Annual Total Returns(/1/)
(Assuming No Surrender Charge)
Annual Step-Up Death Benefit
(Total Separate Account Annual Expenses: 1.55%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Inception
1 Year 5 Year of the Subaccount
Ended Ended Subaccount Inception
Subaccount 12/31/98 12/31/98 to 12/31/98 Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation.. 16.52% N/A 12.56% January 1, 1995
T. Rowe Price Equity
Income.................... 7.09% N/A 19.68% June 28, 1995
T. Rowe Price Growth
Stock..................... 26.64% N/A 26.69% April 28, 1995
T. Rowe Price International
Stock..................... 13.62% N/A 5.47% January 1, 1995
Endeavor Value Equity...... 5.87% N/A 15.01% January 1, 1995
Endeavor Opportunity
Value..................... 3.52% N/A 19.50% December 13, 1996
Endeavor Enhanced Index.... 29.32% N/A 57.27% May 1, 1997
Dreyfus U.S. Government
Securities................ 5.69% N/A 5.39% June 16, 1995
Dreyfus Small Cap
Value(/2/)................ (3.72%) N/A 10.56% January 1, 1995
Endeavor Select 50(/3/).... N/A N/A N/A N/A
Endeavor High Yield(/3/)... N/A N/A N/A N/A
Endeavor Janus
Growth(/4/)............... 61.89% N/A 16.45% January 1, 1995
- -------------------------------------------------------------------------------
</TABLE>
Return of Premium Death Benefit
(Total Separate Account Annual Expenses: 1.40%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Inception
1 Year 5 Year of the Subaccount
Ended Ended Subaccount Inception
Subaccount 12/31/98 12/31/98 to 12/31/98 Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation.. 16.70% N/A 18.07% January 1, 1995
T. Rowe Price Equity
Income.................... 7.25% N/A 19.08% June 28, 1995
T. Rowe Price Growth
Stock..................... 26.83% N/A 24.79% April 28, 1995
T. Rowe Price International
Stock..................... 13.79% N/A 9.24% January 1, 1995
Endeavor Value Equity...... 6.06% N/A 20.56% January 1, 1995
Endeavor Opportunity
Value..................... 3.67% N/A 9.30% December 13, 1996
Endeavor Enhanced Index.... 29.51% N/A 31.36% May 1, 1997
Dreyfus U.S. Government
Securities................ 5.85% N/A 5.23% June 16, 1995
Dreyfus Small Cap
Value(/2/)................ (3.58%) N/A 13.52% January 1, 1995
Endeavor Select 50(/3/).... N/A N/A N/A N/A
Endeavor High Yield(/3/)... N/A N/A N/A N/A
Endeavor Janus
Growth(/4/)............... 62.17% N/A 33.39% January 1, 1995
</TABLE>
34
<PAGE>
(/1/)These calculations also assume the policy has been in effect for less than
eight years and that annuity payments have not commenced. Policies in
effect for more than seven years would experience lower mortality and
expense risk fees and therefore the yield and/or total return of such
policies would be increased. In no event will policies which have reached
the annuity commencement date reflect a return based on a mortality and
expense risk fee and administrative charge of more than 1.40%, regardless
of the death benefit option in effect just prior to the commencement of
annuity payments.
(/2/)Effective September 16, 1996, The Dreyfus Corporation became the adviser to
the Dreyfus Small Cap Value Portfolio, formerly known as Quest for Value
Small Cap Portfolio. The portfolio was previously advised by OpCap
Advisors.
(/3/)The Endeavor Select 50 Portfolio and the Endeavor High Portfolio had not
commenced operations as of December 31, 1998. Accordingly, comparable
information is not available.
(/4/)Effective April 30, 1999, shares of the WRL Growth Portfolio were removed
and replaced with shares of the Endeavor Janus Growth Portfolio.
Performance prior to May 1, 1999 reflects performance of the annuity
subaccount while it was invested in the WRL Growth Portfolio.
The figures for the "from inception" periods in the above tables reflect waiver
of advisory fees and reimbursement of other expenses for all portfolios except
the T. Rowe Price Equity Income Portfolio and the T. Rowe Price Growth Stock
Portfolio. In the absence of such waivers, the average annual total return
figures above for the inception periods would have been lower.
Adjusted Historical Performance Data. AUSA Life may present historic
performance data for the underlying portfolios since their inception reduced by
some or all of the fees and charges under the policy. Such adjusted historic
performance includes data that precedes the inception dates of the subaccounts.
This data is designed to show the performance that would have resulted if the
policy had been in existence during that time.
For instance, as shown in Table 3 and Table 4 below, AUSA Life may disclose
average annual total returns for the portfolios reduced by all fees and charges
under the policy, as if the policy had been in existence since the inception of
the portfolio. Such fees and charges include the mortality and expense risk
fee, administrative charge and surrender charges. Table 3 assumes a complete
surrender of the policy at the end of the period; therefore the surrender
charge is deducted. Table 4 assumes that the policy is not surrendered, and
therefore the surrender charge is not deducted.
35
<PAGE>
The following information is based on the method of calculation described in
the Statement of Additional Information. The adjusted historical average annual
total returns for periods ended December 31, 1998, were as follows:
TABLE 3
Adjusted Historical Average Annual Total Returns(/1/)
Annual Step-Up Death Benefit
(Total Separate Account Annual Expenses: 1.55%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10 Year Corresponding
or Portfolio
Portfolio 1 Year 5 Year Inception Inception Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation..... 11.22% 12.29% 12.51% April 8, 1991
T. Rowe Price Equity Income... 1.73% N/A 19.09% January 3, 1995
T. Rowe Price Growth Stock.... 21.40% N/A 26.23% January 3, 1995
T. Rowe Price International
Stock(/2/)................... 8.30% 5.31% 5.39% April 8, 1991
Endeavor Value Equity......... 0.50% 16.38% 14.86% May 27, 1993
Endeavor Opportunity Value.... (1.86%) N/A 6.87% November 18, 1996
Endeavor Enhanced Index....... 24.09% N/A 28.63% May 1, 1997
Dreyfus U.S. Government
Securities................... 0.32% N/A 4.92% May 9, 1994
Dreyfus Small Cap Value(/3/).. (9.14%) 9.57% 10.29% May 4, 1993
Endeavor Select 50............ N/A N/A (1.93%) February 2, 1998
Endeavor High Yield........... N/A N/A (10.99%) June 2, 1998
Endeavor Janus Growth(/4/).... 56.86% 23.09% 20.63%+ October 2, 1986
- -------------------------------------------------------------------------------
</TABLE>
Return of Premium Death Benefit
(Total Separate Account Annual Expenses: 1.40%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10 Year Corresponding
or Portfolio
Portfolio 1 Year 5 Year Inception Inception Date
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation..... 11.40% 12.45% 12.68% April 8, 1991
T. Rowe Price Equity Income... 1.89% N/A 19.39% January 3, 1995
T. Rowe Price Growth Stock.... 21.59% N/A 26.51% January 3, 1995
T. Rowe Price International
Stock(/2/)................... 8.47% 5.46% 5.55% April 8, 1991
Endeavor Value Equity......... 0.70% 16.57% 15.07% May 27, 1993
Endeavor Opportunity Value.... (1.71%) N/A 7.03% November 18, 1996
Endeavor Enhanced Index....... 24.29% N/A 28.82% May 1, 1997
Dreyfus U.S. Government
Securities................... 0.48% N/A 5.08% May 9, 1994
Dreyfus Small Cap Value(/3/).. (9.00%) 9.74% 10.55% May 4, 1993
Endeavor Select 50............ N/A N/A (1.79%) February 2, 1998
Endeavor High Yield........... N/A N/A (10.91%) June 2, 1998
Endeavor Janus Growth(/4/).... 57.14% 23.28% 20.76%+ October 2, 1986
</TABLE>
+ Ten Year Date
36
<PAGE>
TABLE 4
Adjusted Historical Average Annual Total Returns(/1/)
(Assuming No Surrender Charge)
Annual Step-Up Death Benefit
(Total Separate Account Annual Expenses: 1.55%)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10 Year Corresponding
or Portfolio
Portfolio 1 Year 5 Year Inception Inception Date
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation...... 16.52% 12.49% 12.56% April 8, 1991
T. Rowe Price Equity Income.... 7.09% N/A 19.68% January 3, 1995
T. Rowe Price Growth Stock..... 26.64% N/A 26.69% January 3, 1995
T. Rowe Price International
Stock(/2/).................... 13.62% 5.59% 5.47% April 8, 1991
Endeavor Value Equity.......... 5.87% 16.55% 15.01% May 27, 1993
Endeavor Opportunity Value..... 3.52% N/A 8.78% November 18, 1996
Endeavor Enhanced Index........ 29.32% N/A 31.18% May 1, 1997
Dreyfus U.S. Government
Securities.................... 5.69% N/A 5.39% May 9, 1994
Dreyfus Small Cap Value(/3/)... (3.72%) 9.81% 10.56% May 4, 1993
Endeavor Select 50............. N/A N/A 5.07% February 2, 1998
Endeavor High Yield............ N/A N/A (3.99%) June 2, 1998
Endeavor Janus Growth(/4/)..... 61.89% 23.22% 20.63%+ October 2, 1986
- ------------------------------------------------------------------------------
</TABLE>
Return of Premium Death Benefit
(Total Separate Account Annual Expenses: 1.40%)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10 Year Corresponding
or Portfolio
Portfolio 1 Year 5 Year Inception Inception Date
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Endeavor Asset Allocation...... 16.70% 12.66% 12.72% April 8, 1991
T. Rowe Price Equity Income.... 7.25% N/A 19.85% January 3, 1995
T. Rowe Price Growth Stock..... 26.83% N/A 26.87% January 3, 1995
T. Rowe Price International
Stock(/2/).................... 13.79% 5.74% 5.62% April 8, 1991
Endeavor Value Equity.......... 6.06% 16.74% 15.22% May 27, 1993
Endeavor Opportunity Value..... 3.67% N/A 8.94% November 18, 1996
Endeavor Enhanced Index........ 29.51% N/A 31.36% May 1, 1997
Dreyfus U.S. Government
Securities.................... 5.85% N/A 5.55% May 9, 1994
Dreyfus Small Cap Value(/3/)... (3.58%) 9.97% 10.73% May 4, 1993
Endeavor Select 50............. N/A N/A 5.21% February 2, 1998
Endeavor High Yield............ N/A N/A (3.91%) June 2, 1998
Endeavor Janus Growth(/4/)..... 62.17% 23.40% 20.76%+ October 2, 1986
</TABLE>
+ Ten Year Date
(/1/The)calculation of total return performance for periods prior to inception
of the subaccounts reflects deductions for the mortality and expense risk
fee and administrative charge on a monthly basis, rather than a daily
basis. The monthly deduction is made at the beginning of each month and
generally approximates the performance that would have resulted if the
subaccounts had actually been in existence since the Inception of the
Portfolio.
(/2/Effective)January 1, 1995, Rowe-Price Fleming International, Inc. became
the Adviser to the T. Rowe Price International Stock Portfolio. The
Portfolio's name was changed from the Global Growth Portfolio and the
Portfolio's shareholders approved a change in investment objective from
investments in small capitalization companies on a global basis to
investments in a broad range of companies on an international basis (i.e.,
non-U.S. companies).
37
<PAGE>
(/3/Effective)September 16, 1996, The Dreyfus Corporation became the adviser to
the Dreyfus Small Cap Value Portfolio, formerly known as Quest for Value
Small Cap Portfolio. The portfolio was previously advised by OpCap
Advisors.
(/4/Effective)April 30, 1999, shares of the WRL Growth Portfolio were removed
and replaced with shares of the Endeavor Janus Growth Portfolio.
Performance prior to May 1, 1999 reflects performance of the annuity
subaccount while it was invested in the WRL Growth Portfolio.
The figures for the "five year" and "from inception" periods in the above
tables reflect waiver of advisory fees and reimbursement of other expenses for
all portfolios except the T. Rowe Price Equity Income Portfolio and the T. Rowe
Price Growth Stock Portfolio. In the absence of such waivers, the average
annual total return figures above from the five year and from inception periods
would have been lower.
38
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
THE ENDEAVOR VARIABLE ANNUITY
Issued through
AUSA ENDEAVOR VARIABLE
ANNUITY ACCOUNT
Offered by
AUSA LIFE INSURANCE COMPANY, INC.
666 Fifth Avenue
New York, New York 10103
This Statement of Additional information expands upon subjects discussed in the
current prospectus for the Endeavor Variable Annuity offered by AUSA Life
Insurance Company, Inc. ("AUSA Life"). You may obtain a copy of the prospectus
dated May 1, 1999, by calling 1-800-525-6205, or by writing to the Service
Office, Financial Markets Division--Variable Annuity Dept., 4333 Edgewood Road,
N.E., Cedar Rapids, Iowa 52499-0001. Terms used in the current prospectus for
the policy are incorporated in this Statement of Additional Information.
This Statement of Additional Information is not a prospectus and should be read
only in conjunction with the prospectuses for the policy and the Endeavor
Series Trust.
Dated: May 1, 1999
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
GLOSSARY OF TERMS........................................................... 3
THE POLICY--GENERAL PROVISIONS.............................................. 5
Owner..................................................................... 5
Entire Policy............................................................. 5
Misstatement of Age or Sex................................................ 5
Addition, Deletion, Substitution of Investments........................... 6
Reallocation of Policy Values After the Annuity Commencement Date......... 6
Annuity Payment Options................................................... 7
Death Benefit............................................................. 8
Death of Owner............................................................ 10
Assignment................................................................ 10
Evidence of Survival...................................................... 10
Non-Participating......................................................... 10
Amendments................................................................ 10
Employee and Agent Purchases.............................................. 10
CERTAIN FEDERAL INCOME TAX CONSEQUENCES..................................... 11
Tax Status of the Policy.................................................. 11
Taxation of AUSA Life..................................................... 14
INVESTMENT EXPERIENCE....................................................... 15
Accumulation Units........................................................ 15
Annuity Unit Value and Annuity Payment Rates.............................. 16
HISTORICAL PERFORMANCE DATA................................................. 18
Money Market Yields....................................................... 18
Other Subaccount Yields................................................... 19
Total Returns............................................................. 20
Other Performance Data.................................................... 20
Adjusted Historical Performance Data--The Separate Account................ 21
PUBLISHED RATINGS........................................................... 21
STATE REGULATION OF AUSA LIFE............................................... 21
RECORDS AND REPORTS......................................................... 21
DISTRIBUTION OF THE POLICIES................................................ 21
VOTING RIGHTS............................................................... 22
CUSTODY OF ASSETS........................................................... 22
LEGAL MATTERS............................................................... 23
INDEPENDENT AUDITORS........................................................ 23
OTHER INFORMATION........................................................... 23
FINANCIAL STATEMENTS........................................................ 23
</TABLE>
2
<PAGE>
GLOSSARY OF TERMS
Accumulation Unit--An accounting unit of measure used in calculating the policy
value in the separate account before the annuity commencement date.
Administrative Office--AUSA Life Insurance Company, Inc., 666 Fifth Avenue,
25th Floor, New York, NY, 10103.
Annuitant--The person entitled to receive annuity payments after the annuity
commencement date and during whose life any annuity payments involving life
contingencies will continue.
Annuity Commencement Date--The date upon which annuity payments are to
commence. This date may be any date at least thirty days after the policy date
and may not be later than the last day of the policy month starting after the
annuitant attains age 85, except as expressly allowed by AUSA Life. In no event
will this date be later than the last day of the policy month following
annuitant's 90th birthday.
Annuity Payment Option--A method of receiving a stream of annuity payments
selected by the owner.
Annuity Unit--An accounting unit of measure used in the calculation of the
amount of the second and each additional variable annuity payment.
Application--A written application, order form, or any other information
received electronically or otherwise upon which the policy is issued and/or is
reflected on the data or specifications page.
Beneficiary--The person who has the right to the death benefit set forth in the
policy.
Business Day--A day when the New York Stock Exchange is open for business.
Cash Value--The policy value less the surrender charge, if any.
Code--The Internal Revenue Code of 1986, as amended.
Due Proof of Death--A certified copy of a death certificate, a certified copy
of a decree of a court of competent jurisdiction as to the finding of death, a
written statement by the attending physician, or any other proof satisfactory
to AUSA Life will constitute due proof of death.
Excess Premium Withdrawals--The amount of a premium payment withdrawal which is
more than the amount that may be taken free from surrender charge.
Fixed Account--A part of the general account of AUSA Life. General account
assets consist of all of the assets of AUSA Life that are not in separate
accounts.
Guaranteed Period Option--The one year guaranteed interest rate period which
will be offered by AUSA Life into which premiums may be paid or amounts
transferred.
Investment Choices--The one year guaranteed period option of the fixed account,
and the dollar cost averaging fixed account option, and any of the subaccounts
of the separate account.
Nonqualified Policy--A policy other than a qualified policy.
Owner or Owners--The person who may exercise all rights and privileges under
the policy. The owner during the lifetime of the annuitant and prior to the
annuity commencement date is the person designated as the owner or a successor
owner in the application.
3
<PAGE>
Policy Value--The value in the policy that may be used to purchase a stream of
annuity payments. On or before the annuity commencement date, this is an amount
equal to (a) the premiums paid; minus (b) partial withdrawals taken; plus (c)
interest credited in the fixed account; plus (d) accumulated gains or losses in
the separate account; minus (e) any applicable service charges, premium taxes,
and transfer fees. The Policy form refers to this as annuity purchase value.
Policy Year--A policy year begins on the date of issue and on each policy
anniversary.
Premium Payment--An amount paid to AUSA Life by the owner or on the owner's
behalf as consideration for the benefits provided by the policy.
Qualified Policy--A policy issued in connection with retirement plans that
qualify for special federal income tax treatment.
Separate Account--A separate account established and registered as a unit
investment trust under the Investment Company Act of 1940, as amended, to which
premium payments under the policies may be allocated and which invests in
designated portfolios of the Endeavor Series Trust and such other mutual funds
as AUSA Life may determine from time to time.
Service Charge--An annual charge on each policy anniversary for policy
maintenance and related administrative expenses. This annual charge is the
lesser of 2% of the policy value or $35.
Service Office--Financial Markets Division--Variable Annuity Dept., 4333
Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.
Subaccount--A subdivision within the separate account the assets of which are
invested in a specified portfolio of the underlying funds.
Successor Owner--A person appointed by the owner to succeed to ownership of the
policy in the event of the death of the owner who is not the annuitant before
the annuity commencement date.
Surrender Charge--A percentage of each excess premium withdrawal, which is
deducted by AUSA Life upon surrender or partial withdrawal from the policy. The
surrender charge percentage ranges from 7% to 0% depending upon the length of
time from the date of each premium payment to the date of withdrawal.
Valuation Period--The period of time from one determination of accumulation
unit and annuity unit values to the next subsequent determination of values.
Such determination shall be made on each business day.
Variable Annuity Payments--Payments made pursuant to an annuity payment option
which fluctuate as to dollar amount or payment term in relation to the
investment performance of the specified subaccounts within the separate
account.
Written Notice or Written Request--Written notice, signed by the owner, that
gives AUSA Life the information it requires and is received at the service
office. For some transactions, AUSA Life may accept an electronic notice. Such
electronic notice must meet the requirements AUSA Life establishes for such
notices. Telephone instructions are not permitted.
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<PAGE>
In order to supplement the description in the prospectus, the following
provides additional information about AUSA Life and the policy, which may be of
interest to a prospective purchaser. Words printed in italics in this Statement
of Additional Information are defined in the Glossary of Terms, found on page
3.
THE POLICY--GENERAL PROVISIONS
Owner
The policy shall belong to the owner upon issuance of the policy after
completion of an application and delivery of the initial premium payment. While
the annuitant is living, the owner may: (1) assign the policy; (2) surrender
the policy; (3) amend or modify the policy with AUSA Life's consent; (4)
receive annuity payments or name a payee to receive the payments; and (5)
exercise, receive and enjoy every other right and benefit contained in the
policy. The exercise of these rights may be subject to the consent of any
assignee or irrevocable beneficiary.
A successor owner can be named in the application or in a written notice. The
successor owner will become the new owner upon the owner's death, if the owner
predeceases the annuitant. If no successor owner survives the owner and the
owner predeceases the annuitant, the owner's estate will become the owner.
Note carefully. If the owner does not name a contingent owner, the owner's
estate will become the new owner. If no probate estate is opened because the
owner has precluded the opening of a probate estate by means of a trust or
other instrument, unless AUSA Life has received written notice of the trust as
a successor owner signed prior to the owner's death, that trust may not
exercise ownership rights to the policy. It may be necessary to open a probate
estate in order to exercise ownership rights to the policy if no contingent
owner is named in a written notice received by AUSA Life.
The owner may change the ownership of the policy in a written notice. When this
change takes effect, all rights of ownership in the policy will pass to the new
owner. A change of ownership may have adverse tax consequences.
When there is a change of owner or successor owner, the change will take effect
as of the date the owner signs the written notice, subject to any payment AUSA
Life has made or action AUSA Life has taken before recording the change.
Changing the owner or naming a new successor owner cancels any prior choice of
successor owner, but does not change the designation of the beneficiary or the
annuitant.
If ownership is transferred (except to the owner's spouse) because the owner
dies before the annuitant, the cash value generally must be distributed to the
successor owner within five years of the owner's death, or payments must be
made for a period certain or for the successor owner's lifetime so long as any
period certain does not exceed that successor owner's life expectancy, if the
first payment begins within one year of the owner's death.
Entire Policy
The policy, any endorsements thereon, and the application constitute the entire
contract between AUSA Life and the owner. All statements in the application are
representations and not warranties. No statement will cause the policy to be
void or to be used in defense of a claim unless contained in the application.
Misstatement of Age or Sex
If the age or sex of the annuitant has been misstated, AUSA Life will change
the annuity benefit payable to that which the premium payments would have
purchased for the correct age or sex. The dollar
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amount of any underpayment made by AUSA Life shall be paid in full with the
next payment due such person or the beneficiary. The dollar amount of any
overpayment made by AUSA Life due to any misstatement shall be deducted from
payments subsequently accruing to such person or beneficiary. Any underpayment
or overpayment will include interest at 5% per year, from the date of the wrong
payment to the date of the adjustment. The age of the annuitant may be
established at any time by the submission of proof satisfactory to AUSA Life.
Addition, Deletion, or Substitution of Investments
AUSA Life cannot and does not guarantee that any of the subaccounts will always
be available for premium payments, allocations, or transfers. AUSA Life retains
the right, subject to any applicable law, to make certain changes in the
separate account and its investments. AUSA Life reserves the right to eliminate
the shares of any portfolio held by a subaccount and to substitute shares of
another portfolio of the underlying funds, or of another registered open-end
management investment company for the shares of any portfolio, if the shares of
the portfolio are no longer available for investment or if, in AUSA Life's
judgment, investment in any portfolio would be inappropriate in view of the
purposes of the separate account. To the extent required by the 1940 Act,
substitutions of shares attributable to your interest in a subaccount will not
be made without prior notice to you and the prior approval of the SEC. Nothing
contained herein shall prevent the separate account from purchasing other
securities for other series or classes of variable annuity policies, or from
effecting an exchange between series or classes of variable annuity policies on
the basis of your requests.
New subaccounts may be established when, in the sole discretion of AUSA Life,
marketing, tax, investment or other conditions warrant. Any new subaccounts may
be made available to existing owners on a basis to be determined by AUSA Life.
Each additional subaccount will purchase shares in a mutual fund portfolio,
other investment vehicle. AUSA Life may also eliminate one or more subaccounts
if, in its sole discretion, marketing, tax, investment or other conditions
warrant such change. In the event any subaccount is eliminated, AUSA Life will
notify you and request a reallocation of the amounts invested in the eliminated
subaccount. If no such reallocation is provided by you, AUSA Life will reinvest
the amounts in the subaccount that invests in the Endeavor Money Market
Portfolio (or in a similar portfolio of money market instruments), in another
subaccount, or in the fixed account, if appropriate.
In the event of any such substitution or change, AUSA Life may, by appropriate
endorsement, make such changes in the policies as may be necessary or
appropriate to reflect such substitution or change. Furthermore, if deemed to
be in the best interests of persons having voting rights under the policies,
the separate account may be (i) operated as a management company under the 1940
Act or any other form permitted by law, (ii) deregistered under the 1940 Act in
the event such registration is no longer required or (iii) combined with one or
more other separate accounts, may be (i) operated in any form permitted by law,
(ii) deregistered under the 1940 Act in the event such registration is no
longer required or (iii) combined with one or more other mutual fund accounts.
To the extent permitted by applicable law, AUSA Life also may transfer the
assets of the separate account associated with the policies to another account
or accounts.
Reallocation of Annuity Units After the Annuity Commencement Date
After the annuity commencement date, the owner may reallocate the value of a
designated number of annuity units of a subaccount of the separate account then
credited to a policy into an equal value of annuity units of one or more other
subaccounts of the separate account. The reallocation shall be based on the
relative value of the annuity units of the subaccount(s) at the end of the
business day on the next payment date. The minimum amount which may be
reallocated is the lesser of (1) $10 of monthly income or (2) the entire
monthly income of the annuity units in the subaccount from which the transfer
is being made. If the monthly income of the annuity units remaining in a
subaccount after
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a reallocation is less than $10, AUSA Life reserves the right to include the
value of those annuity units as part of the transfer. The request must be in
writing to AUSA Life's service office. There is no charge assessed in
connection with such reallocation. AUSA Life reserves the right to limit the
number of times a reallocation of annuity units may be made in any given policy
year.
Annuity Payment Options
During the lifetime of the annuitant and prior to the annuity commencement
date, the owner may choose an annuity payment option or change the election,
but written notice of any election or change of election must be received by
AUSA Life at its administrative and service office at least thirty (30) days
prior to the annuity commencement date. If no election is made prior to the
annuity commencement date, annuity payments will be made under (i) Payment
Option 3, life income with level payments for 10 years certain, using the
existing policy value of the fixed account, or (ii) under Payment Option 3,
life income with variable payments for 10 years certain using the existing
policy value of the separate account, or (iii) in a combination of (i) and
(ii).
The person who elects an annuity payment option can also name one or more
successor payees to receive any unpaid amount AUSA Life has at the death of a
payee. Naming these payees cancels any prior choice of a successor payee.
A payee who did not elect the annuity payment option does not have the right to
advance or assign payments, take the payments in one sum, or make any other
change. However, the payee may be given the right to do one or more of these
things if the person who elects the option tells AUSA Life in writing and AUSA
Life agrees.
Variable Payment Options. The dollar amount of the first variable annuity
payment will be determined in accordance with the annuity payment rates set
forth in the applicable table contained in the policy. The tables are based on
a 5% effective annual Assumed Investment Return and the "1983 Table a" (male,
female, and unisex if required by law) mortality table improved to the year
2000 with projection Scale G. ("The 1983 Table a" mortality rates are adjusted
based on improvements in mortality since 1983 to more appropriately reflect
increased longevity. This is accomplished using a set of improvement factors
referred to as projection scale G.) The dollar amount of additional variable
annuity payments will vary based on the investment performance of the
subaccount(s) of the separate account selected by the annuitant or beneficiary.
Determination of the First Variable Payment. The amount of the first variable
payment depends upon the sex (if consideration of sex is allowed under state
law) and adjusted age of the annuitant. The adjusted age is the annuitant's
actual age nearest birthday, on the annuity commencement date, adjusted as
follows:
<TABLE>
<CAPTION>
Annuity Commencement Date Adjusted Age
------------------------- ------------
<S> <C>
Before 2001 Actual Age
2001-2010 Actual Age minus 1
2011-2020 Actual Age minus 2
2021-2030 Actual Age minus 3
2031-2040 Actual Age minus 4
After 2040 As determined by AUSA Life
</TABLE>
This adjustment assumes an increase in life expectancy, and therefore it
results in lower payments than without such an adjustment.
Determination of Additional Variable Payments. All variable annuity payments
other than the first are calculated using annuity units and are credited to the
policy. The number of annuity units to be
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<PAGE>
credited in respect of a particular subaccount is determined by dividing that
portion of the first variable annuity payment attributable to that subaccount
by the annuity unit value of that subaccount on the annuity commencement date.
The number of annuity units of each particular subaccount credited to the
policy then remains fixed, assuming no transfers to or from that subaccount
occur. The dollar value of variable annuity units in the chosen subaccount will
increase or decrease reflecting the investment experience of the chosen
subaccount. The dollar amount of each variable annuity payment after the first
may increase, decrease or remain constant, and is equal to the sum of the
amounts determined by multiplying the number of annuity units of each
particular subaccount credited to the policy by the annuity unit value for the
particular subaccount on the date the payment is made.
Death Benefit
Partial Withdrawal. The amount of your guaranteed minimum death benefit is
reduced due to a partial withdrawal. The reduction amount depends on the
relationship between your guaranteed minimum death benefit and policy value.
The partial withdrawal in the guaranteed minimum death benefit is the sum of
(1) and (2), where:
(1) The surrender-charge-free withdrawal amount taken; and
(2) The amount that an excess partial withdrawal (the portion of a
withdrawal that can be subject to a surrender charge) reduces the policy
value times [(a) divided by (b)] where:
(a) is the amount of the death benefit prior to the excess partial
withdrawal; and
(b) is the policy value prior to the excess partial withdrawal.
The following examples describe the effect of a withdrawal on the guaranteed
minimum death benefit and policy value.
Example 1
(Assumed Facts for Example)
<TABLE>
- -----------------------------------------------------------------------------
<C> <S>
$75,000 current Guaranteed Minimum Death Benefit (GMDB) before withdrawal
- -----------------------------------------------------------------------------
$50,000 current policy value before withdrawal
- -----------------------------------------------------------------------------
$75,000 current death benefit (larger of policy value and GMDB)
- -----------------------------------------------------------------------------
6% current surrender charge percentage
- -----------------------------------------------------------------------------
$15,000 requested withdrawal
- -----------------------------------------------------------------------------
surrender charge-free amount (assumes 10% free percentage is
$ 5,000 available)
- -----------------------------------------------------------------------------
$10,000 excess partial withdrawal--EPW (amount subject to surrender charge)
- -----------------------------------------------------------------------------
$ 600 surrender charge on (EPW) = 0.06X10,000
- -----------------------------------------------------------------------------
reduction in policy value due to excess partial withdrawal =
$10,600 10,000+600
- -----------------------------------------------------------------------------
$20,000 partial withdrawal = $5,000 + $10,000 X (75,000/50,000)
- -----------------------------------------------------------------------------
$55,000 New GMDB (after withdrawal) = 75,000- 20,000
- -----------------------------------------------------------------------------
$34,400 New policy value (after withdrawal) = 50,000-5,000-10,600
</TABLE>
Summary:
Reduction in Guaranteed Minimum Death Benefit = $20,000
Reduction in policy value = $15,600
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<PAGE>
Note, Guaranteed Minimum Death Benefit is reduced more than the policy value
since the Guaranteed Minimum Death Benefit was greater than the policy value
just prior to the withdrawal.
Example 2
(Assumed Facts for Example)
<TABLE>
- -----------------------------------------------------------------------------
<C> <S>
$50,000 current Guaranteed Minimum Death Benefit (GMDB) before withdrawal
- -----------------------------------------------------------------------------
$75,000 current policy value before withdrawal
- -----------------------------------------------------------------------------
$75,000 current death benefit (larger of policy value and GMDB)
- -----------------------------------------------------------------------------
6% current surrender charge percentage
- -----------------------------------------------------------------------------
$15,000 requested withdrawal
- -----------------------------------------------------------------------------
surrender charge-free amount (assumes 10% free percentage is
$ 7,500 available)
- -----------------------------------------------------------------------------
$ 7,500 excess partial withdrawal--EPW (amount subject to surrender charge)
- -----------------------------------------------------------------------------
$ 450 surrender charge on (EPW) = 0.06X7,500
- -----------------------------------------------------------------------------
$ 7,950 reduction in policy value due to EPW = 7,500+450
- -----------------------------------------------------------------------------
$15,450 partial withdrawal = $7,500+$7,950X(75,000/75,000)
- -----------------------------------------------------------------------------
$34,550 New GMDB (after withdrawal) = 50,000-15,450
- -----------------------------------------------------------------------------
$59,550 New policy value (after withdrawal) = 75,000-7,500-7,950
</TABLE>
Summary:
Reduction in guaranteed minimum death benefit = $15,450
Reduction in policy value = $15,450
Note, the guaranteed minimum death benefit and policy value are reduced by the
same amount since the policy value was higher than the guaranteed minimum death
benefit just prior to the withdrawal.
Due proof of death of the annuitant is proof that the annuitant who is the
owner died prior to the commencement of annuity payments. Upon receipt of this
proof and an election of a method of settlement and return of the policy, the
death benefit generally will be paid within seven days, or as soon thereafter
as AUSA Life has sufficient information about the beneficiary to make the
payment. The beneficiary may receive the amount payable in a lump sum cash
benefit, or, subject to any limitation under any state or federal law, rule, or
regulation, under one of the annuity payment options described above, unless a
settlement agreement is effective at the death of the owner preventing such
election.
If the annuitant was the owner, and the beneficiary was not the annuitant's
spouse, the death benefit must (1) be distributed within five years of the date
of the deceased owner's death, or (2) payments under an annuity payment option
must begin no later than one year after the deceased owner's death and must be
made for the beneficiary's lifetime or for a period certain (so long as any
certain period does not exceed the beneficiary's life expectancy). Death
Proceeds which are not paid to or for the benefit of a natural person must be
distributed within five years of the date of the deceased owner's death. If the
sole beneficiary is the deceased owner's surviving spouse, such spouse may
elect to continue the policy as the new annuitant and owner instead of
receiving the death benefit.
If the annuitant is not the owner, and the owner dies prior to the annuity
commencement date, a successor owner may surrender the policy at any time for
the amount of the policy value. If the successor owner is not the deceased
owner's spouse, however, the policy value must be distributed: (1) within five
years after the date of the deceased owner's death, or (2) payments under an
annuity payment option must begin no later than one year after the deceased
owner's death and must be made for the successor owner's lifetime or for a
period certain (so long as any period certain does not exceed the successor
owner's life expectancy).
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<PAGE>
Beneficiary. The beneficiary designation in the application will remain in
effect until changed. The owner may change the designated beneficiary by
sending written notice to AUSA Life. The beneficiary's consent to such change
is not required unless the beneficiary was irrevocably designated or law
requires consent. (If an irrevocable beneficiary dies, the owner may then
designate a new beneficiary.) The change will take effect as of the date the
owner signs the written notice, whether or not the owner is living when the
notice is received by AUSA Life. AUSA Life will not be liable for any payment
made before the written notice is received. If more than one beneficiary is
designated, and the owner fails to specify their interests, they will share
equally.
Death of Owner
Federal tax law requires that if any owner (including any joint owner or any
successor owner who has become a current owner) dies before the annuity
commencement date, then the entire value of the policy must generally be
distributed within five years of the date of death of such owner. Certain rules
apply where 1) the spouse of the deceased owner is the sole beneficiary, 2) the
owner is not a natural person and the primary annuitant dies or is changed, or
3) any owner dies after the annuity commencement date. See "Certain Federal
Income Tax Consequences" for a detailed description of these rules. Other rules
may apply to qualified policies.
Assignment
During the lifetime of the annuitant the owner may assign any rights or
benefits provided by the policy. An assignment will not be binding on AUSA Life
until a copy has been filed at its service office. The rights and benefits of
the owner and beneficiary are subject to the rights of the assignee. AUSA Life
assumes no responsibility for the validity or effect of any assignment. Any
claim made under an assignment shall be subject to proof of interest and the
extent of the assignment. An assignment may have tax consequences.
Unless the owner so directs by filing written notice with AUSA Life, no
beneficiary may assign any payments under the policy before they are due. To
the extent permitted by law, no payments will be subject to the claims of any
beneficiary's creditors.
Ownership of qualified policies is restricted to comply with the Code.
Evidence of Survival
AUSA Life reserves the right to require satisfactory evidence that a person is
alive if a payment is based on that person being alive. No payment will be made
until AUSA Life receives such evidence.
Non-Participating
The policy will not share in AUSA Life's surplus earnings; no dividends will be
paid.
Amendments
No change in the policy is valid unless made in writing by AUSA Life and
approved by one of AUSA Life's officers. No registered representative has
authority to change or waive any provision of the policy.
AUSA Life reserves the right to amend the policies to meet the requirements of
the Code, regulations or published rulings. An owner can refuse such a change
by giving written notice, but a refusal may result in adverse tax consequences.
Employee and Agent Purchases
The policy may be acquired by an employee or registered representative of any
broker/dealer authorized to sell the policy or their spouse or minor children,
or by an officer, director, trustee or bona-fide full-time employee of AUSA
Life or its affiliated companies or their spouse or minor children. In such a
case, AUSA Life may credit an amount equal to a percentage of each premium
payment to the policy due to lower acquisition costs AUSA Life experiences on
those purchases. The credit will be reported to the
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<PAGE>
Internal Revenue Service as taxable income to the employee or registered
representative. AUSA Life may offer certain employer sponsored savings plans,
in its discretion, reduced fees and charges including, but not limited to, the
surrender charges, the mortality and expense risk fee and the administrative
charge for certain sales under circumstances which may result in savings of
certain costs and expenses. In addition, there may be other circumstances of
which AUSA Life is not presently aware which could result in reduced sales or
distribution expenses. Credits to the policy or reductions in these fees and
charges will not be unfairly discriminatory against any owner.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following summary does not constitute tax advice. It is a general
discussion of certain of the expected federal income tax consequences of
investment in and distributions with respect to a Policy, based on the Code, as
amended, proposed and final Treasury Regulations thereunder, judicial
authority, and current administrative rulings and practice. This summary
discusses only certain federal income tax consequences to "United States
Persons," and does not discuss state, local, or foreign tax consequences.
United States Persons means citizens or residents of the United States,
domestic corporations, domestic partnerships and trusts or estates that are
subject to United States federal income tax regardless of the source of their
income.
Tax Status of the Policy
The following discussion is based on the assumption that the policy qualifies
as an annuity contract for federal income tax purposes.
Diversification Requirements. Section 817(h) of the Code provides that in order
for a variable contract which is based on a segregated asset account to qualify
as an annuity contract under the Code, the investments made by such account
must be "adequately diversified" in accordance with Treasury regulations. The
Treasury regulations issued under Section 817(h) (Treas. Reg. (S)1.817-5) apply
a diversification requirement to each of the subaccounts. The separate account,
through its underlying funds and their portfolios, through its subaccounts,
intends to comply with the diversification requirements of the Treasury. AUSA
Life has entered into agreements regarding participation in the Endeavor Series
Trust which requires the portfolios to be operated in compliance with the
Treasury regulations.
Owner Control. In certain circumstances, owners of variable annuity contracts
may be considered the owners, for federal income tax purposes, of the assets of
the separate account used to support their contracts. In those circumstances,
income and gains from the separate account assets would be includable in the
variable annuity contract owner's gross income. Several years ago, the IRS
stated in published rulings that a variable annuity contract owner will be
considered the owner of separate account assets if the contract owner possesses
incidents of ownership in those assets, such as the ability to exercise
investment control over the assets. More recently, the Treasury Department
announced in connection with the issuance of regulations concerning investment
diversification, that those regulations "do not provide guidance concerning the
circumstances in which investor control of the investments of a segregated
asset account may cause the investor (i.e., you), rather than the insurance
company, to be treated as the owner of the assets in the account." This
announcement also stated that guidance would be issued by way of regulations or
rulings on the "extent to which policyholders may direct their investments to
particular subaccounts without being treated as owners of the underlying
assets."
The ownership rights under the contract are similar to, but different in
certain respects from those described by the IRS in rulings in which it was
determined that contract owners were not owners of separate account assets. For
example, you have the choice of one or more subaccounts in which to allocate
premiums and annuity purchase values, and may be able to transfer among these
accounts more frequently than in such rulings. These differences could result
in you being treated as the owner of the assets of the separate account. In
addition, AUSA Life does not know what standards will be set
11
<PAGE>
forth, if any, in the regulations or rulings that the Treasury Department has
stated it expects to issue. AUSA Life therefore reserves the right to modify
the policies as necessary to attempt to prevent you from being considered the
owner of a pro rata share of the assets of the separate account.
Distribution Requirements. The Code also requires that nonqualified policies
contain specific provisions for distribution of policy proceeds upon the death
of the owner. In order to be treated as an annuity contract for federal income
tax purposes, the Code requires that such policies provide that if any owner
dies on or after the annuity commencement date and before the entire interest
in the policy has been distributed, the remaining portion must be distributed
at least as rapidly as under the method in effect on such owner's death. If any
owner dies before the annuity commencement date, the entire interest in the
policy must generally be distributed within 5 years after such owner's date of
death or be applied to provide an immediate annuity under which payments will
begin within one year of such owner's death and will be made for the life of
the beneficiary or for a period not extending beyond the life expectancy of the
"designated beneficiary" as defined in Section 72(s) of the Code. However, if
upon such owner's death prior to the annuity commencement date, such owner's
surviving spouse becomes the sole new owner under the policy, then the policy
may be continued with the surviving spouse as the new owner. Under the policy,
the beneficiary is the designated beneficiary of an owner/annuitant and the
successor owner is the designated beneficiary of an owner who is not the
annuitant. If any owner is not a natural person, then for purposes of these
distribution requirements, the primary annuitant shall be treated as an owner,
and any death or change of such primary annuitant shall be treated as the death
of an owner. The nonqualified policies contain provisions intended to comply
with these requirements of the Code. No regulations interpreting these
requirements of the Code have yet been issued and thus no assurance can be
given that the provisions contained in the policies satisfy all such Code
requirements. The provisions contained in the policies will be reviewed and
modified if necessary to maintain their compliance with the Code requirements
when clarified by regulation or otherwise.
Withholding. The portion of any distribution under a policy that is includable
in gross income will be subject to federal income tax withholding unless the
recipient of such distribution elects not to have federal income tax withheld.
Election forms will be provided at the time distributions are requested or
made. For certain qualified policies, certain distributions are subject to
mandatory withholding. The withholding rate varies according to the type of
distribution and the owner's tax status. For qualified policies, "eligible
rollover distributions" from section 401(a) plans and section 403(b) tax-
sheltered annuities are subject to a mandatory federal income tax withholding
of 20%. An eligible rollover distribution is the taxable portion of any
distribution from such a plan, except certain distributions such as
distributions required by the Code or distributions in a specified annuity
form. The 20% withholding does not apply, however, if the owner chooses a
"direct rollover" from the plan to another tax-qualified plan or IRA.
Qualified Policies. The qualified policy is designed for use with several types
of tax-qualified retirement plans. The tax rules applicable to participants and
beneficiaries in tax-qualified retirement plans vary according to the type of
plan and the terms and conditions of the plan. Special favorable tax treatment
may be available for certain types of contributions and distributions. Adverse
tax consequences may result from contributions in excess of specified limits;
distributions prior to age 59 1/2 (subject to certain exceptions);
distributions that do not conform to specified commencement and minimum
distribution rules; and in other specified circumstances. Some retirement plans
are subject to distribution and other requirements that are not incorporated
into our policy administration procedures. Owners, participants and
beneficiaries are responsible for determining that contributions, distributions
and other transactions with respect to the policies comply with applicable law.
For qualified plans under section 401(a), 403(a), 403(b), and 457, the Code
requires that distributions generally must commence no later than the later of
April 1 of the calendar year following the calendar year in which the owner (or
plan participant) (i) reaches age 70 1/2 or (ii) retires, and must be made in a
specified form or manner. If the plan participant is a "5 percent owner" (as
defined in the Code),
12
<PAGE>
distributions generally must begin no later than April 1 of the calendar year
in which the owner (or plan participant) reaches age 70 1/2. Each owner is
responsible for requesting distributions under the policy that satisfy
applicable tax rules.
AUSA Life makes no attempt to provide more than general information about use
of the policy with the various types of retirement plans. Purchasers of
policies for use with any retirement plan should consult their legal counsel
and tax adviser regarding the suitability of the policy.
Individual Retirement Annuities. In order to qualify as a traditional
individual retirement annuity under Section 408(b) of the Code, a policy must
contain certain provisions: (i) the owner must be the annuitant; (ii) the
policy generally is not transferable by the owner, e.g., the owner may not
designate a new owner, designate a contingent owner or assign the policy as
collateral security; (iii) the total premium payments for any calendar year may
not exceed $2,000, except in the case of a rollover amount or contribution
under Section 402(c), 403(a)(4), 403(b)(8) or 408(d)(3) of the Code; (iv)
annuity payments or withdrawals must begin no later than April 1 of the
calendar year following the calendar year in which the annuitant attains age 70
1/2; (v) an annuity payment option with a period certain that will guarantee
annuity payments beyond the life expectancy of the annuitant and the
beneficiary may not be selected; and (vi) certain payments of death benefits
must be made in the event the annuitant dies prior to the distribution of the
policy value. Policies intended to qualify as a traditional individual
retirement annuities under Section 408(b) of the Code contain such provisions.
Amounts in the IRA (other than nondeductible contributions) are taxed when
distributed from the IRA. Distributions prior to age 59 1/2 (unless certain
exceptions apply) are subject to a 10% penalty tax.
Section 408 of the Code also indicates that no part of the funds for a
traditional individual retirement account or annuity should be invested in a
life insurance contract, but the regulations thereunder allow such funds to be
invested in an annuity contract that provides a death benefit that equals the
greater of the premiums paid or the cash value for the contract. The policy
provides an enhanced death benefit that could exceed the amount of such a
permissible death benefit, but it is unclear to what extent such an enhanced
death benefit could disqualify the policy under Section 408 of the Code. The
Internal Revenue Service has not reviewed the policy for qualification as an
IRA, and has not addressed in a ruling of general applicability whether an
enhanced death benefit provision, such as the provision in the policy, comports
with IRA qualification requirements.
Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section
408A of the Code, contains many of the same provisions as a traditional IRA.
However, there are some differences. First, the contributions are not
deductible and must be made in cash or as a rollover or transfer from another
Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA
may be subject to tax and other special rules may apply. You should consult a
tax adviser before combining any converted amounts with any other Roth IRA
contributions, including any other conversion amounts from other tax years. The
Roth IRA is available to individuals with earned income and whose adjusted
gross income is under $110,000 for single filers, $160,000 for married filing
jointly, and $10,000 for married filing separately. The amount per individual
that may be contributed to all IRAs (Roth and traditional) is $2,000. Secondly,
the distributions are taxed differently. The Roth IRA offers tax-free
distributions when made from assets which have been held in the account for 5
tax years and are made after attaining age 59 1/2, to pay for qualified first
time homebuyer expenses (lifetime maximum of $10,000) or due to death or
disability. All other distributions are subject to income tax when made from
earnings and may be subject to a premature withdrawal penalty tax unless an
exception applies. Unlike the traditional IRA, there are no minimum required
distributions during the owner's lifetime; however, required distributions at
death are the same.
Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public
school systems and certain tax exempt organizations to purchase policies for
their employees are excludable from the gross income of the employee, subject
to certain limitations. However, such payments may be subject to FICA (Social
Security) taxes. The policy includes a death benefit that in some cases may
exceed the greater of
13
<PAGE>
the premium payments or the policy value. The death benefit could be
characterized as an incidental benefit, the amount of which is limited in any
tax-sheltered annuity under section 403(b). Because the death benefit may
exceed this limitation, employers using the policy in connection with such
plans should consult their tax adviser. Additionally, in accordance with the
requirements of the Code, Section 403(b) annuities generally may not permit
distribution of (i) elective contributions made in years beginning after
December 31, 1988, and (ii) earnings on those contributions and (iii) earnings
on amounts attributed to elective contributions held as of the end of the last
year beginning before January 1, 1989. Distributions of such amounts will be
allowed only upon the death of the employee, on or after attainment of age 59
1/2, separation from service, disability, or financial hardship, except that
income attributable to elective contributions may not be distributed in the
case of hardship.
Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a)
and 403(a) of the Code permit corporate employers to establish various types of
retirement plans for employees and self-employed individuals to establish
qualified plans for themselves and their employees. Such retirement plans may
permit the purchase of the policies to accumulate retirement savings. Adverse
tax consequences to the plan, the participant or both may result if the policy
is assigned or transferred to any individual as a means to provide benefit
payments. The policy includes a death benefit that in some cases may exceed the
greater of the premium payments or the policy value. The death benefit could be
characterized as an incidental benefit, the amount of which is limited in an
pension or profit sharing plan. Because the death benefit may exceed this
limitation, employers using the policy in connection with such plans should
consult their tax adviser.
Deferred Compensation Plans. Section 457 of the Code, while not actually
providing for a qualified plan as that term is normally used, provides for
certain deferred compensation plans with respect to service for state
governments, local governments, political sub-divisions, agencies,
instrumentalities and certain affiliates of such entities, and tax exempt
organizations. The policies can be used with such plans. Under such plans a
participant may specify the form of investment in which his or her
participation will be made. For non-government Section 457 plans, all such
investments, however, are owned by, and are subject to, the claims of the
general creditors of the sponsoring employer. Depending on the terms of the
particular plan, a non-government employer may be entitled to draw on deferred
amounts for purposes unrelated to its Section 457 plan obligations. In general,
all amounts received under a Section 457 plan are taxable and are subject to
federal income tax withholding as wages.
Non-natural Persons. Pursuant to Section 72(u) of the Code, an annuity contract
held by a taxpayer other than a natural person generally will not be treated as
an annuity contract under the Code; accordingly, an owner who is not a natural
person will recognize as ordinary income for a taxable year the excess of (i)
the sum of the policy value as of the close of the taxable year and all
previous distributions under the policy over (ii) the sum of the premium
payments paid for the taxable year and any prior taxable year and the amounts
includable in gross income for any prior taxable year with respect to the
policy. Notwithstanding the preceding sentences in this paragraph, Section
72(u) of the Code does not apply to (i) a policy the nominal owner of which is
not a natural person but the beneficial owner of which is a natural person,
(ii) a policy acquired by the estate of a decedent by reason of such decedent's
death, (iii) a qualified policy (other than one qualified under Section 457) or
(iv) a single-payment annuity the annuity commencement date for which is no
later than one year from the date of the single premium payment; instead, such
policies are taxed as described above under the heading "Taxation of
Annuities."
Taxation of AUSA Life
AUSA Life at present is taxed as a life insurance company under part I of
Subchapter L of the Code. The separate account is treated as part of AUSA Life
and, accordingly, will not be taxed separately as a "regulated investment
company" under Subchapter M of the Code. AUSA Life does not expect to incur any
federal income tax liability with respect to investment income and net capital
gains arising from the activities of the separate account retained as part of
the reserves under the policy. Based on this expectation, it is anticipated
that no charges will be made against the separate account for federal income
taxes. If, in future years, any federal income taxes are incurred by AUSA Life
with respect to the separate account, AUSA Life may make a charge to the
separate account.
14
<PAGE>
INVESTMENT EXPERIENCE
An "investment experience factor" is used to determine the value of
accumulation units and annuity units, and to determine Annuity Payment rates.
Accumulation Units
Allocations of a premium payment directed to a subaccount are credited in the
form of accumulation units. Each subaccount has a distinct accumulation unit
value. The number of units credited is determined by dividing the premium
payment or amount transferred to the subaccount by the accumulation unit value
of the subaccount as of the end of the valuation period during which the
allocation is made. For each subaccount, the accumulation unit value for a
given business day is based on the net asset value of a share of the
corresponding portfolio of the underlying funds less any applicable charges or
fees.
Upon allocation to the selected subaccount of the separate account, premium
payments are converted into accumulation units of the subaccount. The number of
accumulation units to be credited is determined by dividing the dollar amount
allocated to each subaccount by the value of an accumulation unit for that
subaccount as next determined after the premium payment is received at the
service office or, in the case of the initial premium payment, when the
application is completed, whichever is later. The value of an accumulation unit
was arbitrarily established at $1 at the inception of each subaccount.
Thereafter, the value of an accumulation unit is determined as of the close of
trading on each day the New York Stock Exchange is open for business.
An index (the "investment experience factor") which measures the investment
performance of a subaccount during a valuation period is used to determine the
value of an accumulation unit for the next subsequent valuation period. The
investment experience factor may be greater or less than or equal to one;
therefore, the value of an accumulation unit may increase, decrease or remain
the same from one valuation period to the next. The owner bears this investment
risk. The Net Investment Performance of a subaccount and deduction of certain
charges affects the accumulation unit value.
The investment experience factor for any subaccount for any valuation period is
determined by dividing (a) by (b), and subtracting (c) from the result, where:
(a) is the net result of:
(1) the net asset value per share of the shares held in the subaccount
determined at the end of the current valuation period, plus
(2) The per share amount of any dividend or capital gain distribution
made with respect to the shares held in the subaccount if the ex-
dividend date occurs during the current valuation period, plus or minus
(3) a per share credit or charge for any taxes determined by AUSA Life
to have resulted from the investment operations of the subaccount and
for which it has created a reserve;
(b) is the net asset value per share of the shares held in the subaccount
determined as of the end of the immediately preceding valuation period; and
(c) is the charge for mortality and expense risk during the valuation
period equal on an annual basis to X percent of the daily net asset value
of the subaccount, where "X" depends on the Death Benefit Option and policy
year, plus the .15% annual administrative charge.
Illustration of Accumulation Unit Value Calculations
Formula and Illustration for Determining the Investment Experience Factor
(Assumes the Return of Premium Death Benefit is still in effect
and that the policy is within the first seven policy years.)
15
<PAGE>
Investment Experience Factor = (A + B-C)-E
D
<TABLE>
<C> <S>
Where: A = The net asset value of an underlying fund share as of the end of
the current valuation period.
Assume................................................. A = $11.57
B = The per share amount of any dividend or capital gains distribution
since the end of the immediately preceding valuation period.
Assume...................................................... B = 0
C = The per share charge or credit for any taxes reserved for at the
end of the current valuation period.
Assume...................................................... C = 0
D = The net asset value of an underlying fund share at the end of the
immediately preceding valuation period.
Assume................................................. D = $11.40
E = The daily deduction for mortality and expense risk fees and
administrative charges, which totals 1.40% on an annual basis.
On a daily basis = .0000380909
</TABLE>
Then, the investment experience factor = (11.57 + 0-0)-.0000380909 = Z =
1.0148741898
11.40
Formula and Illustration for Determining Accumulation Unit Value
Accumulation Unit Value = A * B
<TABLE>
<C> <S>
Where: A = The Accumulation Unit Value for the immediately preceding
valuation period.
Assume...................................................... = $ X
B = The Net Investment Factor for the current valuation period.
Assume........................................................ = Y
</TABLE>
Then, the Accumulation Unit Value = $X * Y = $Z
Annuity Unit Value And Annuity Payment Rates
The amount of variable annuity payments will vary with annuity unit values.
Annuity unit values rise if the net investment performance of the subaccount
exceeds the Assumed Investment Return of 5% annually. Conversely, annuity unit
values fall if the net investment performance of the subaccount is less than
the Assumed Investment Return. The value of a variable annuity unit in each
subaccount was established at $1.00 on the date operations began for that
subaccount. The value of a variable annuity unit on any subsequent business day
is equal to (a) multiplied by (b) multiplied by (c), where:
(a) is the variable annuity unit value on the immediately preceding
business day;
(b) is the net investment factor of the valuation period; and
(c) is the investment result adjustment factor for the valuation period.
The investment result adjustment factor for the valuation period is the product
of discount factors of .99986634 per day to recognize the 5% effective annual
Assumed Investment Return. The valuation period is the period from the close of
the immediately preceding business day to the close of the current business
day.
16
<PAGE>
The net investment factor for the policy used to calculate the value of a
variable annuity unit in each subaccount for the valuation period is determined
by dividing (i) by (ii), and subtracting (iii) from the result, where:
(i) is the result of:
(1) the net asset value of a fund share held in the separate account
for that subaccount determined at the end of the current valuation
period; plus
(2) the per share amount of any dividend or capital gain distributions
made by the fund for shares held in the separate account for that
subaccount if the ex-dividend date occurs during the valuation period.
(ii) is the net asset value of a fund share held in the separate account
for that subaccount determined as of the end of the immediately preceding
valuation period.
(iii) is a factor representing the mortality and expense risk fee and
administrative charge. Assume this factor is currently equal, on an annual
basis, to no more than 1.55% of the daily net asset value of a fund share
held in the separate account for that subaccount.
The dollar amount of subsequent variable annuity payments will depend upon
changes in applicable annuity unit values.
The annuity payment rates vary according to the Annuity Option elected and the
sex and adjusted age of the annuitant at the annuity commencement date. The
policy also contains a table for determining the adjusted age of the annuitant.
Illustration of Calculations for Annuity Unit Value
and Variable Annuity Payments
Formula and Illustration for Determining Annuity Unit Value
Annuity unit value = A * B * C
<TABLE>
<C> <S>
Where: A = Annuity unit value for the immediately preceding valuation period.
Assume...................................................... = $ X
B = Investment Experience Factor for the valuation period for which
the annuity unit value is being calculated.
Assume........................................................ = Y
C = A factor to neutralize the Assumed Investment Return of 5% built
into the Annuity Tables used.
Assume........................................................ = Z
</TABLE>
Then, the annuity unit value is:
$X * Y * Z = $Q
Formula and Illustration for Determining Amount of
First Monthly Variable Annuity Payment
First monthly variable annuity payment = A * B
$1,000
<TABLE>
<C> <S>
Where: A = The policy value as of the annuity commencement date.
Assume...................................................... = $ X
B = The Annuity purchase rate per $1,000 based upon the option
selected, the sex and adjusted age of the annuitant according to
the tables contained in the policy.
Assume...................................................... = $ Y
</TABLE>
17
<PAGE>
Then, the first monthly variable annuity payment = $X * $Y = $Z
1,000
Formula and Illustration for Determining the Number of Annuity Units
Represented by Each Monthly Variable Annuity Payment
Number of annuity units = A
B
<TABLE>
<C> <S>
Where: A = The dollar amount of the first monthly variable annuity payment.
Assume...................................................... = $ X
B = The annuity unit value for the valuation date on which the first
monthly payment is due.
Assume...................................................... = $ Y
</TABLE>
Then, the number of annuity units = $X = Z
$Y
HISTORICAL PERFORMANCE DATA
Money Market Yields
AUSA Life may from time to time disclose the current annualized yield of the
Endeavor Money Market Subaccount, which invests in the Endeavor Money Market
Portfolio, for a 7-day period in a manner which does not take into
consideration any realized or unrealized gains or losses on shares of the
Endeavor Money Market Portfolio or on its portfolio securities. This current
annualized yield is computed by determining the net change (exclusive of
realized gains and losses on the sale of securities and unrealized appreciation
and depreciation and income other than investment income) at the end of the 7-
day period in the value of a hypothetical account; having a balance of 1 unit
of the Endeavor Money Market Subaccount at the beginning of the 7-day period,
dividing such net change in account value by the value of the account at the
beginning of the period to determine the base period return, and annualizing
this quotient on a 365-day basis. The net change in account value reflects (i)
net income from the portfolio attributable to the hypothetical account; and
(ii) charges and deductions imposed under a policy that are attributable to the
hypothetical account. The charges and deductions include the per unit charges
for the hypothetical account for (i) the administrative charges; and (ii) the
Mortality and Expense Risk Charge. Current Yield will be calculated according
to the following formula:
Current Yield = ((NCS--ES)/UV) * (365/7)
Where:
<TABLE>
<C> <C> <S>
NCS = The net change in the value of the Portfolio (exclusive of realized
gains and losses on the sale of securities and unrealized appreciation
and depreciation and income other than investment income) for the 7-
day period attributable to a hypothetical account having a balance of
1 subaccount unit.
ES = Per unit expenses of the subaccount for the 7-day period.
UV = The unit value on the first day of the 7-day period.
</TABLE>
Because of the charges and deductions imposed under a policy, the yield for the
Endeavor Money Market Subaccount will be lower than the yield for the Endeavor
Money Market Portfolio. The yield calculations do not reflect the effect of any
premium taxes or surrender charges that may be applicable to a particular
policy. Surrender charges range from 7% to 0% of the amount of premium
withdrawn based on the policy year since payment of the premium.
18
<PAGE>
AUSA Life may also disclose the effective yield of the Endeavor Money Market
Subaccount for the same 7-day period, determined on a compounded basis. The
effective yield is calculated by compounding the base period return according
to the following formula:
Effective Yield = (1 + ((NCS--ES)/UV))/365///7/--1
Where:
<TABLE>
<C> <C> <S>
NCS = The net change in the value of the Portfolio (exclusive of realized
gains and losses on the sale of securities and unrealized appreciation
and depreciation and income other than investment income) for the 7-
day period attributable to a hypothetical account having a balance of
1 subaccount unit.
ES = Per unit expenses of the subaccount for the 7-day period.
UV = The unit value on the first day of the 7-day period.
</TABLE>
The yield on amounts held in the Endeavor Money Market Subaccount normally will
fluctuate on a daily basis. Therefore, the disclosed yield for any given past
period is not an indication or representation of future yields or rates of
return. The Endeavor Money Market Subaccount's actual yield is affected by
changes in interest rates on money market securities, average portfolio
maturity of the Endeavor Money Market Portfolio, the types and quality of
portfolio securities held by the Endeavor Money Market Portfolio and its
operating expenses. For the seven days ended December 31, 1998, the yield of
the Endeavor Money Market Subaccount was 3.066%, and the effective yield was
3.113% for the Annual Step-Up Death Benefit. For the seven days ended December
31, 1998, the yield of the Endeavor Money Market Subaccount was 3.219%, and the
effective yield was 3.271% for the Return of Premium Death Benefit.
Other Subaccount Yields
AUSA Life may from time to time advertise or disclose the current annualized
yield of one or more of the subaccounts of the separate account (except the
Endeavor Money Market Subaccount) for 30-day periods. The annualized yield of a
subaccount refers to income generated by the subaccount over a specific 30-day
period. Because the yield is annualized, the yield generated by a subaccount
during the 30-day period is assumed to be generated each 30-day period over a
12-month period. The yield is computed by: (i) dividing the net investment
income of the subaccount less subaccount expenses for the period, by (ii) the
maximum offering price per unit on the last day of the period times the daily
average number of units outstanding for the period, (iii) compounding that
yield for a 6-month period, and (iv) multiplying that result by 2. Expenses
attributable to the subaccount include (i) the administrative charge and (ii)
the Mortality and Expense Risk Charge. The 30-day yield is calculated according
to the following formula:
Yield = 2 * ((((NI--ES)/(U^UV)) + 1)/6/--1)
Where:
<TABLE>
<C> <C> <S>
NI = Net investment income of the subaccount for the 30-day period
attributable to the subaccount's unit.
ES = Expenses of the subaccount for the 30-day period.
U = The average number of units outstanding.
UV = The unit value at the close (highest) of the last day in the 30-day
period.
</TABLE>
Because of the charges and deductions imposed by the separate account, the
yield for a subaccount of the separate account will be lower than the yield for
its corresponding Portfolio. The yield calculations do not reflect the effect
of any premium taxes that may be applicable to a particular policy. Surrender
charges range from 7% to 0% of the amount of the excess premium withdrawal
based on the number of years since payment of the premium.
19
<PAGE>
The yield on amounts held in the subaccounts of the separate account normally
will fluctuate over time. Therefore, the disclosed yield for any given past
period is not an indication or representation of future yields or rates of
return. A subaccount's actual yield is affected by the types and quality of its
investments and its operating expenses.
Total Returns
AUSA Life may from time to time also advertise or disclose total returns for
one or more of the subaccounts of the separate account for various periods of
time. One of the periods of time will include the period measured from the date
the subaccount commenced operations. When a subaccount has been in operation
for 1, 5 and 10 years, respectively, the total return for these periods will be
provided. Total returns for other periods of time may from time to time also be
disclosed. Total returns represent the average annual compounded rates of
return that would equate an initial investment of $1,000 to the redemption
value of that investment as of the last day of each of the periods. The ending
date for each period for which total return quotations are provided will be for
the most recent month end practicable, considering the type and media of the
communication and will be stated in the communication.
Total returns will be calculated using subaccount unit values, which AUSA Life
calculates on each business day, based on the performance of the subaccount's
underlying portfolio, and the deductions for the mortality and expense risk fee
and the administrative charges. Total return calculations will reflect the
effect of surrender charges that may be applicable to a particular period. The
total return will then be calculated according to the following formula:
P(1 + T)N = ERV
Where:
<TABLE>
<C> <C> <S>
T = The average annual total return net of subaccount recurring charges.
ERV = The ending redeemable value of the hypothetical account at the end of
the period.
P = A hypothetical initial payment of $1,000.
N = The number of years in the period.
</TABLE>
Other Performance Data
AUSA Life may from time to time also disclose average annual total returns in a
non-standard format in conjunction with the standard format described above.
The non-standard format will be identical to the standard format except
assuming that the surrender charge percentage will be 0%.
AUSA Life may from time to time also disclose cumulative total returns in
conjunction with the standard format described above. The cumulative returns
will be calculated using the following formula assuming that the surrender
charge percentage will be 0%.
CTR = (ERV/P)--1
Where:
<TABLE>
<C> <C> <S>
CTR = The cumulative total return net of subaccount recurring charges for
the period.
ERV = The ending redeemable value of the hypothetical investment at the end
of the period.
P = A hypothetical initial payment of $1,000.
</TABLE>
All non-standard performance data will only be advertised if the standard
performance data for the same period, as well as for the required period, is
also disclosed.
20
<PAGE>
Adjusted Historical Performance Data--The Separate Account
From time to time, sales literature or advertisements may quote average annual
total returns for periods prior to the date a particular subaccount commenced
operations. Such performance information for the subaccounts will be calculated
based on the performance of the various portfolios and the assumption that the
subaccounts were in existence for the same periods as those indicated for the
portfolios, with the level of policy charges that are currently in effect.
PUBLISHED RATINGS
AUSA Life may from time to time publish in advertisements, sales literature and
reports to owners, the ratings and other information assigned to it by one or
more independent rating organizations such as A.M. Best Company, Standard &
Poor's Insurance Ratings Services, Moody's Investors Service and Duff & Phelps
Credit Rating Co. The purpose of the ratings is to reflect the financial
strength and/or claims-paying ability of AUSA Life. The ratings should not be
considered as bearing on the investment performance of assets held in the
separate account or of the safety or riskiness of an investment in the separate
account. Each year the A.M. Best Company reviews the financial status of
thousands of insurers, culminating in the assignment of Best's Ratings. These
ratings reflect their current opinion of the relative financial strength and
operating performance of an insurance company in comparison to the norms of the
life/health insurance industry. In addition, the claims-paying ability of AUSA
Life as measured by Standard & Poor's Insurance Ratings Services, Moody's
Investors Service or Duff & Phelps Credit Rating Co. may be referred to in
advertisements or sales literature or in reports to owners. These ratings are
opinions of an operating insurance company's financial capacity to meet the
obligations of its insurance policies in accordance with their terms. Claims-
paying ability ratings do not refer to an insurer's ability to meet non-policy
obligations (i.e., debt/commercial paper).
STATE REGULATION OF AUSA LIFE
AUSA Life is subject to the laws of New York governing insurance companies and
to regulation by the New York Department of Insurance. An annual statement in a
prescribed form is filed with the Department of Insurance each year covering
the operation of AUSA Life for the preceding year and its financial condition
as of the end of such year. Regulation by the Department of Insurance includes
periodic examination to determine AUSA Life's contract liabilities and reserves
so that the Department may determine the items are correct. AUSA Life's books
and accounts are subject to review by the Department of Insurance at all times
and a full examination of its operations is conducted periodically by the
National Association of Insurance Commissioners. In addition, AUSA Life is
subject to regulation under the insurance laws of other jurisdictions in which
it may operate.
RECORDS AND REPORTS
All records and accounts relating to the separate account will be maintained by
AUSA Life. As presently required by the Investment Company Act of 1940 and
regulations promulgated thereunder, AUSA Life will mail to all owners at their
last known address of record, at least annually, reports containing such
information as may be required under that Act or by any other applicable law or
regulation. owners will also receive confirmation of each financial transaction
and any other reports required by law or regulation.
DISTRIBUTION OF THE POLICIES
The policies are offered to the public through brokers licensed under the
federal securities laws and state insurance laws. The offering of the policies
is continuous and AUSA Life does not anticipate discontinuing the offering of
the policies. However, AUSA Life reserves the right to discontinue the offering
of the policies.
21
<PAGE>
AFSG Securities Corporation, is the principal underwriter of the policies. AFSG
Securities Corporation will enter into agreements with broker-dealers for the
distribution of the policies. Prior to May 1, 1998, AEGON USA Securities, Inc.
was the principal underwriter. During 1998, the amount paid to AEGON USA
Securities, Inc. and/or broker-dealers for their services was $412,538.27.
Amount paid for these services in 1997 and 1996 were $1,430,319.48 and
$1,115,508, respectively. During 1998 the amount paid to AFSG Securities
Corporation was $202,758.60.
VOTING RIGHTS
To the extent required by law, AUSA Life will vote the underlying funds' shares
held by the mutual fund account at regular and special shareholder meetings of
the underlying funds in accordance with instructions received from persons
having voting interests in the portfolios, although the Endeavor Series Trust
does not hold regular annual shareholder meetings. If, however, the 1940 Act or
any regulation thereunder should be amended or if the present interpretation
thereof should change, and as a result AUSA Life determines that it is
permitted to vote the Endeavor Series Trust shares in its own right, it may
elect to do so.
Before the annuity commencement date, you hold the voting interest in the
selected portfolios. The number of votes that you have the right to instruct
will be calculated separately for each subaccount. The number of votes that you
have the right to instruct for a particular subaccount will be determined by
dividing your policy value in the subaccount by the net asset value per share
of the corresponding portfolio in which the subaccount invests. Fractional
shares will be counted.
After the annuity commencement date, the person receiving annuity payments has
the voting interest, and the number of votes decreases as annuity payments are
made and as the reserves for the policy decrease. The person's number of votes
will be determined by dividing the reserve for the policy allocated to the
applicable subaccount by the net asset value per share of the corresponding
portfolio. Fractional shares will be counted.
The number of votes that you or the person receiving income payments has the
right to instruct will be determined as of the date established by the
underlying fund for determining shareholders eligible to vote at the meeting of
the underlying fund. AUSA Life will solicit voting instructions by sending you,
or other persons entitled to vote, written requests for instructions prior to
that meeting in accordance with procedures established by the underlying fund.
Portfolio shares as to which no timely instructions are received and shares
held by AUSA Life in which you, or other persons entitled to vote, have no
beneficial interest will be voted in proportion to the voting instructions that
are received with respect to all policies participating in the same subaccount.
Each person having a voting interest in a subaccount will receive proxy
material, reports, and other materials relating to the appropriate portfolio.
CUSTODY OF ASSETS
The assets of each of the subaccounts of the separate account are held by AUSA
Life. The assets of each of the subaccounts of the separate account are
segregated and held separate and apart from the assets of the other subaccounts
and from AUSA Life's general account assets. AUSA Life maintains records of all
purchases and redemptions of shares of the underlying funds held by each of the
subaccounts. Additional protection for the assets of the separate account is
afforded by AUSA Life's fidelity bond, presently in the amount of $5,000,000,
covering the acts of officers and employees of AUSA Life.
22
<PAGE>
LEGAL MATTERS
Legal advice relating to certain matters under the federal securities laws
applicable to the issue and sale of the policies has been provided to AUSA Life
by Sutherland Asbill & Brennan LLP, of Washington D.C.
INDEPENDENT AUDITORS
The statutory-basis financial statements of AUSA Life, at December 31, 1998 and
1997, and for each of the three years in the period ended December 31, 1998,
and the financial statements of the subaccounts of the AUSA Endeavor Variable
Annuity Account, which are available for investment by The Endeavor Variable
Annuity contract owners, as of December 31, 1998, and for each of the two years
in the period then ended, included in this Statement of Additional Information
have been audited by Ernst & Young LLP, Independent Auditors, 801 Grand Avenue,
Suite 3400, Des Moines, Iowa, 50309-2764.
OTHER INFORMATION
A Registration Statement has been filed with the Securities and Exchange
Commission, under the Securities Act of 1933 as amended, with respect to the
policies discussed in this Statement of Additional Information. Not all of the
information set forth in the Registration Statement, amendments and exhibits
thereto has been included in the Prospectus or this Statement of Additional
Information. Statements contained in the Prospectus and this Statement of
Additional Information concerning the content of the policies and other legal
instruments are intended to be summaries. For a complete statement of the terms
of these documents, reference should be made to the instruments filed with the
Securities and Exchange Commission.
FINANCIAL STATEMENTS
The values of the interest of owners in the separate account will be affected
solely by the investment results of the selected subaccount(s). Financial
statements for the AUSA Endeavor Variable Annuity Account are contained herein.
The financial statements of AUSA Life, which are included in this Statement of
Additional Information, should be considered only as bearing on the ability of
AUSA Life to meet its obligations under the policies. They should not be
considered as bearing on the investment performance of the assets held in the
separate account.
23
<PAGE>
Financial Statements - Statutory Basis
Ausa Life Insurance Company, Inc.
Years ended December 31, 1998, 1997 and 1996
with Report of Independent Auditors
<PAGE>
AUSA Life Insurance Company, Inc.
Financial Statements - Statutory Basis
Years ended December 31, 1998, 1997 and 1996
CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors...............................................1
Audited Financial Statements
Balance Sheets - Statutory Basis.............................................2
Statements of Operations - Statutory Basis...................................4
Statements of Changes in Capital and Surplus - Statutory Basis...............5
Statements of Cash Flows - Statutory Basis...................................6
Notes to Financial Statements - Statutory Basis..............................7
</TABLE>
<PAGE>
[LETTERHEAD OF ERNST & YOUNG LLP]
Report of Independent Auditors
The Board of Directors
AUSA Life Insurance Company, Inc.
We have audited the accompanying statutory-basis balance sheets of AUSA Life
Insurance Company, Inc. as of December 31, 1998 and 1997 and the related
statutory-basis statements of operations, changes in capital and surplus, and
cash flows for each of the three years in the period ended December 31, 1998.
These financial statements are the responsibility of the Company'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. 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.
As described in Note 1 to the financial statements, the Company presents its
financial statements in conformity with accounting practices prescribed or
permitted by the Department of Insurance of the State of New York, which
practices differ from generally accepted accounting principles. The variances
between such practices and generally accepted accounting principles also are
described in Note 1. The effects on the financial statements of these variances
are not reasonably determinable but are presumed to be material.
In our opinion, because of the effects of the matters described in the preceding
paragraph, the financial statements referred to above do not present fairly, in
conformity with generally accepted accounting principles, the financial position
of AUSA Life Insurance Company, Inc. at December 31, 1998 and 1997, or the
results of its operations or its cash flows for each of the three years in the
period ended December 31, 1998.
However, in our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of AUSA Life Insurance
Company, Inc. at December 31, 1998 and 1997, and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
1998 in conformity with accounting practices prescribed or permitted by the
Department of Insurance of the State of New York.
Ernst & Young LLP
Des Moines, Iowa
February 19, 1999
1
<PAGE>
AUSA Life Insurance Company, Inc.
Balance Sheets - Statutory Basis
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
----------------------------
<S> <C> <C>
ADMITTED ASSETS
Cash and invested assets:
Cash and short-term investments $ 61,065 $ 68,131
Bonds 4,151,780 3,988,635
Stocks:
Preferred 2,582 1,792
Common, at market (cost: $14 in 1998 and
$118 in 1997) 2 144
Mortgage loans on real estate 413,107 495,009
Real estate acquired in satisfaction of debt, at cost
less accumulated depreciation ($2,474 in 1998 and
$1,816 in 1997) 33,986 45,695
Policy loans 3,181 3,046
Other invested assets 30,795 22,414
----------------------------
Total cash and invested assets 4,696,498 4,624,866
Short-term note receivable from affiliate 10,400 8,800
Receivable from affiliates 14,731 794
Premiums deferred and uncollected 6,408 6,316
Accrued investment income 64,859 69,989
Federal income taxes recoverable 527 -
Other assets 12,567 7,609
Separate account assets 6,517,152 5,630,093
----------------------------
Total admitted assets $11,323,142 $10,348,467
============================
</TABLE>
See accompanying notes.
2
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
----------------------------
<S> <C> <C>
LIABILITIES AND CAPITAL AND SURPLUS
Liabilities:
Aggregate reserves for policies and contracts:
Life $ 109,132 $ 103,370
Annuity 868,294 911,075
Accident and health 16,416 16,547
Policy and contract claim reserves:
Life 4,927 5,456
Accident and health 10,302 11,125
Other policyholders' funds 3,267,417 3,181,719
Remittances and items not allocated 58,724 35,267
Asset valuation reserve 84,077 67,324
Interest maintenance reserve 37,253 25,882
Payable to affiliates - 2,247
Deferred income 5,230 13,421
Payable under assumption reinsurance agreement 52,837 56,952
Other liabilities 7,422 8,400
Federal income taxes payable - 1,010
Separate account liabilities 6,497,865 5,608,364
----------------------------
Total liabilities 11,019,896 10,048,159
Commitments and contingencies
Capital and surplus:
Common stock, $125 par value, 20,000 shares authorized,
issued and outstanding 2,500 2,500
Paid-in surplus 319,180 319,180
Special surplus funds 1,827 1,607
Unassigned surplus (deficit) (20,261) (22,979)
----------------------------
Total capital and surplus 303,246 300,308
----------------------------
Total liabilities and capital and surplus $11,323,142 $10,348,467
============================
</TABLE>
See accompanying notes.
3
<PAGE>
AUSA Life Insurance Company, Inc.
Statements of Operations - Statutory Basis
(Dollars in thousands)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997 1996
------------------------------------------------
<S> <C> <C> <C>
Revenues:
Premiums and other considerations, net of
reinsurance:
Life $ 22,664 $ 71,899 $ 21,120
Annuity 1,132,120 1,199,470 1,092,033
Accident and health 32,869 39,999 52,831
Net investment income 345,660 341,540 339,460
Amortization of interest maintenance reserve 6,116 3,392 2,326
Commissions and expense allowances on
reinsurance ceded 302 374 438
Other income - 17,240 10,739
------------------------------------------------
1,539,731 1,673,914 1,518,947
Benefits and expenses:
Benefits paid or provided for:
Life and accident and health benefits 32,464 39,045 50,647
Surrender benefits 1,117,653 1,175,051 864,643
Other benefits 20,886 14,316 11,699
Increase (decrease) in aggregate reserves for
policies and contracts:
Life 5,762 52,500 2,492
Annuity (42,781) 65,982 53,136
Accident and health (131) (1,357) (1,063)
Other (67) 580 609
Increase in liability for premium and other
deposit type funds 85,461 92,280 93,893
------------------------------------------------
1,219,247 1,438,397 1,076,056
Insurance expenses:
Commissions 69,009 79,099 87,938
General insurance expenses 95,169 92,613 83,885
Taxes, licenses and fees 1,466 3,717 3,335
Net transfers to separate accounts 130,910 42,490 255,672
Other expenses 978 181 145
------------------------------------------------
297,532 218,100 430,975
------------------------------------------------
1,516,779 1,656,497 1,507,031
------------------------------------------------
Gain from operations before federal income tax
expense and net realized capital gains 22,952 17,417 11,916
(losses) on investments
Federal income tax expense 4,021 5,247 5,719
------------------------------------------------
Gain from operations before net realized
capital gains (losses) on investments 18,931 12,170 6,197
Net realized capital gains (losses) on
investments (net of related federal income
taxes and amounts transferred to interest
maintenance reserve) 3,770 831 (12,107)
------------------------------------------------
Net income (loss) $ 22,701 $ 13,001 $ (5,910)
================================================
</TABLE>
See accompanying notes.
4
<PAGE>
AUSA Life Insurance Company, Inc.
Statements of Changes in Capital and
Surplus - Statutory Basis
(Dollars in thousands)
<TABLE>
<CAPTION>
SPECIAL UNASSIGNED TOTAL
COMMON PAID-IN SURPLUS SURPLUS CAPITAL AND
STOCK SURPLUS FUNDS (DEFICIT) SURPLUS
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1996 $2,500 $319,180 $1,357 $ 5,217 $328,254
Net loss - - - (5,910) (5,910)
Change in net unrealized capital gains - - - (460) (460)
(losses)
Change in non-admitted assets - - - 437 437
Change in special surplus funds - - 116 - 116
Change in liability for reinsurance in
unauthorized companies - - - (42) (42)
Change in asset valuation reserve - - - (6,217) (6,217)
Seed money contributed to separate
account, net of redemptions - - - (12,500) (12,500)
Change in surplus in separate account - - - 14,783 14,783
Prior year federal income tax adjustment - - - 446 446
----------------------------------------------------------------------
Balance at December 31, 1996 2,500 319,180 1,473 (4,246) 318,907
Net income - - - 13,001 13,001
Change in net unrealized capital gains - - - (2,710) (2,710)
(losses)
Change in non-admitted assets - - - (8,617) (8,617)
Change in special surplus funds - - 134 - 134
Change in liability for reinsurance in
unauthorized companies - - - 29 29
Change in asset valuation reserve - - - (20,446) (20,446)
Seed money withdrawn from separate
account, net of redemptions - - - 11,700 11,700
Change in surplus in separate account - - - (11,749) (11,749)
Prior year federal income tax adjustment - - - 59 59
----------------------------------------------------------------------
Balance at December 31, 1997 2,500 319,180 1,607 (22,979) 300,308
Net income - - - 22,701 22,701
Change in net unrealized capital gains - - - 4,439 4,439
(losses)
Change in non-admitted assets - - - (511) (511)
Change in special surplus funds - - 220 - 220
Change in liability for reinsurance in
unauthorized companies - - - 18 18
Change in asset valuation reserve - - - (16,753) (16,753)
Seed money withdrawn from separate
account, net of redemptions - - - 1,818 1,818
Change in surplus in separate account - - - (994) (994)
Dividend to stockholder - - - (8,000) (8,000)
Balance at December 31, 1998 $2,500 $319,180 $1,827 $(20,261) $303,246
======================================================================
</TABLE>
See accompanying notes.
5
<PAGE>
AUSA Life Insurance Company, Inc.
Statements of Cash Flows - Statutory Basis
(Dollars in thousands)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997 1996
--------------------------------------------------
<S> <C> <C> <C>
OPERATING ACTIVITIES
Premiums and other considerations, net of reinsurance $ 1,191,035 $ 1,340,757 $ 1,177,613
Net investment income 353,054 340,150 345,153
Life and accident and health claims (33,979) (40,151) (52,590)
Surrender benefits and other fund withdrawals (1,117,653) (1,175,051) (864,643)
Other benefits to policyholders (20,876) (14,290) (11,697)
Commissions, other expenses and other taxes (169,784) (184,457) (193,405)
Net transfers to separate account (130,976) (43,309) (257,467)
Federal income taxes paid (5,558) (4,704) (4,490)
Other, net (3,806) (3,744) (14,431)
--------------------------------------------------
Net cash provided by operating activities 61,457 215,201 124,043
INVESTING ACTIVITIES
Proceeds from investments sold, matured or repaid:
Bonds and preferred stocks 1,381,784 968,184 777,107
Common stocks 164 - 5,288
Mortgage loans on real estate 138,723 179,810 165,460
Real estate 22,067 25,104 -
Policy loans - 16 4
Other (21) - -
--------------------------------------------------
1,542,717 1,173,114 947,859
Cost of investments acquired:
Bonds and preferred stocks (1,554,838) (1,260,122) (1,101,918)
Common stocks - (103) (589)
Mortgage loans on real estate (51,862) (60,722) (42,118)
Real estate (561) - (521)
Policy loans (135) (146) (153)
Other 5,756 (17,805) (2,695)
--------------------------------------------------
(1,601,640) (1,338,898) (1,147,994)
--------------------------------------------------
Net cash used in investing activities (58,923) (165,784) (200,135)
FINANCING ACTIVITIES
Payment of intercompany notes, net (1,600) (9,400) (19,200)
Dividends to stockholders (8,000) - -
--------------------------------------------------
Net cash used in financing activities (9,600) (9,400) (19,200)
--------------------------------------------------
Increase (decrease) in cash and short-term investments (7,066) 40,017 (95,292)
Cash and short-term investments at beginning of year 68,131 28,114 123,406
--------------------------------------------------
Cash and short-term investments at end of year $ 61,065 $ 68,131 $ 28,114
==================================================
</TABLE>
See accompanying notes.
6
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis
(Dollars in thousands)
December 31, 1998
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
AUSA Life Insurance Company, Inc. ("the Company") is a stock life insurance
company and is 82 percent owned by First AUSA Life Insurance Company ("First
AUSA"), a wholly-owned subsidiary of AEGON USA, Inc. ("AEGON"), and 18 percent
owned by Veterans Life Insurance Company, an indirect wholly-owned subsidiary of
AEGON. AEGON is a wholly-owned subsidiary of AEGON N.V., a holding company
organized under the laws of The Netherlands. Effective September 24, 1993, First
AUSA purchased from The Dreyfus Corporation ("Dreyfus"), its entire interest in
Dreyfus Life Insurance Company and subsequently changed the name to AUSA Life
Insurance Company, Inc. On December 31, 1993, the Company entered into an
assumption reinsurance agreement with Mutual of New York ("MONY") to transfer
certain group pension business of MONY to the Company.
In July 1996, the Company completed a merger with International Life Investors
Insurance Company ("ILI"), a wholly-owned subsidiary of Life Investors Insurance
Company of America, another wholly-owned subsidiary of First AUSA, whereby ILI
was merged directly into the Company. The Company received assets of $688,233
and liabilities of $635,189. The difference between assets and liabilities was
transferred directly to capital and surplus. In accordance with National
Association of Insurance Commissioners ("NAIC") statutory accounting principles,
all prior period financial statements presented have been restated as if the
merger took place at the beginning of such periods. Historical book values
carried over from the separate companies to the combined entity.
On October 1, 1998, the Company completed a merger with First Providian Life and
Health Insurance Company ("FPLH"), an indirect wholly-owned subsidiary of
Commonwealth General Corporation which, in turn, is an indirect wholly-owned
subsidiary of AEGON, whereby FPLH was merged directly into the Company. The
accompanying financial statements give retroactive effect as if the merger had
occurred on January 1, 1996 in conformity with the practices of the NAIC and
accounting practices prescribed or permitted by the Department of Insurance of
the State of New York. This merger was accounted for under the pooling of
interests method of accounting and, accordingly, the historical book values
carried over from the separate companies to the Company.
7
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Summarized financial information for the Company and FPLH prior to the merger
are as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
SEPTEMBER 30 YEAR ENDED DECEMBER 31
--------------------------------
1998 1997 1996
------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C>
Revenues:
The Company $1,155,265 $1,585,260 $1,454,207
FPLH 75,929 88,654 64,740
------------------------------------------------
As restated $1,231,194 $1,673,914 $1,518,947
================================================
Net income (loss):
The Company $ 3,944 $ 3,503 $ (13,714)
FPLH 6,911 9,498 7,804
------------------------------------------------
As restated $ 10,855 $ 13,001 $ (5,910)
================================================
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30 DECEMBER 31
1998 1997
-----------------------------------
(UNAUDITED)
<S> <C> <C>
Assets:
The Company $10,411,596 $ 9,951,625
FPLH 445,873 396,842
-----------------------------------
As restated $10,857,469 $10,348,467
===================================
Liabilities:
The Company $10,208,203 $ 9,745,504
FPLH 352,184 302,655
-----------------------------------
As restated $10,560,387 $10,048,159
===================================
Capital and surplus:
The Company $ 203,393 $ 206,121
FPLH 93,689 94,187
-----------------------------------
As restated $ 297,082 $ 300,308
===================================
</TABLE>
NATURE OF BUSINESS
The Company primarily sells group fixed and variable annuities and group life
coverages. The Company is licensed in 49 states and the District of Columbia and
is actively in the process of becoming licensed in all 50 states. Sales of the
Company's products are primarily through brokers.
8
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION
The preparation of financial statements of insurance companies requires
management to make estimates and assumptions that affect amounts reported in the
financial statements and accompanying notes. Actual results could differ from
those estimates.
Significant estimates and assumptions are utilized in the calculation of
aggregate policy reserves, policy and contract reserves, guarantee fund
assessment accruals and valuation allowances on investments. It is reasonably
possible that actual experience could differ from the estimates and assumptions
utilized which could have a material impact on the financial statements.
The accompanying financial statements have been prepared on the basis of
accounting practices prescribed or permitted by the Department of Insurance of
the State of New York ("Insurance Department"), which practices differ in some
respects from generally accepted accounting principles. The more significant of
these differences are as follows: (a) bonds are generally reported at amortized
cost rather than segregating the portfolio into held-to-maturity (reported at
amortized cost), available-for-sale (reported at fair value), and trading
(reported at fair value) classifications; (b) acquisition costs of acquiring new
business are charged to current operations as incurred rather than deferred and
amortized over the life of the policies; (c) policy reserves on traditional life
products are based on statutory mortality rates and interest which may differ
from reserves based on reasonable assumptions of expected mortality, interest,
and withdrawals which include a provision for possible unfavorable deviation
from such assumptions; (d) policy reserves on certain investment products use
discounting methodologies utilizing statutory interest rates rather than full
account values; (e) reinsurance amounts are netted against the corresponding
asset or liability rather than shown as gross amounts on the balance sheet; (f)
deferred income taxes are not provided for the difference between the financial
statement and income tax bases of assets and liabilities; (g) net realized gains
or losses attributed to changes in the level of interest rates in the market are
deferred and amortized over the remaining life of the bond or mortgage loan,
rather than recognized as gains or losses in the statement of operations when
the sale is completed; (h) declines in the estimated realizable value of
investments are provided for through the establishment of a formula-determined
statutory investment reserve (reported as a liability), changes to which are
charged directly to surplus, rather than through recognition in the statement of
operations for declines in value, when such declines are judged to be other than
temporary; (i) certain assets designated as "non-admitted assets" have been
charged to surplus rather than being reported as assets; (j) revenues for
universal life and investment products consist of premiums received rather than
policy charges for the cost of insurance, policy administration charges,
amortization of policy initiation fees and surrender charges assessed; (k)
pension expense is recorded as amounts are paid; (l) stock options settled in
cash are recorded as an expense of the Company's indirect parent rather than
charged to current operations; (m) adjustments to federal income taxes of prior
years
9
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
are charged or credited directly to unassigned surplus, rather than reported as
a component of expense in the statement of operations; and (n) gains or losses
on dispositions of business are charged or credited directly to unassigned
surplus rather than being reported in the statement of operations. The effects
of these variances have not been determined by the Company.
In 1998, the National Association of Insurance Commissioners (NAIC) adopted
codified statutory accounting principles ("Codification"). Codification will
likely change, to some extent, prescribed statutory accounting practices and may
result in changes to the accounting practices that the Company uses to prepare
its statutory-basis financial statements. Codification will require adoption by
the various states before it becomes the prescribed statutory basis of
accounting for insurance companies domesticated within those states.
Accordingly, before Codification becomes effective for the Company, the State of
New York must adopt Codification as the prescribed basis of accounting on which
domestic insurers must report their statutory-basis results to the Insurance
Department. At this time, it is unclear whether the State of New York will adopt
Codification. However, based on current guidance, management believes that the
impact of Codification will not be material to the Company's statutory-basis
financial statements.
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Company considers all highly
liquid investments with remaining maturity of one year or less when purchased to
be cash equivalents.
INVESTMENTS
Investments in bonds (except those to which the Securities Valuation Office of
the NAIC has ascribed a value), mortgage loans on real estate and short-term
investments are reported at cost adjusted for amortization of premiums and
accrual of discounts. Amortized costs for bonds and mortgage loans on real
estate that were acquired through the reinsurance agreement described earlier
were initially recorded at market value, consistent with the aforementioned
agreement and as prescribed by the Department of Insurance of the State of New
York. Amortization is computed using methods which result in a level yield over
the expected life of the security. The Company reviews its prepayment
assumptions on mortgage and other asset-backed securities at regular intervals
and adjusts amortization rates retrospectively when such assumptions are changed
due to experience and/or expected future patterns. Investments in preferred
stocks in good standing are reported at cost. Investments in preferred stocks
not in good standing are reported at the lower of cost or market. Common stocks
are carried at market. Real estate is reported at cost less allowances for
depreciation. Depreciation is computed principally by the straight-line method.
Policy loans are reported at unpaid
10
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
principal. Other invested assets consist principally of investments in various
joint ventures and are recorded at equity in underlying net assets. Other
"admitted assets" are valued, principally at cost, as required or permitted by
New York Insurance Laws.
Realized capital gains and losses are determined on the basis of specific
identification and are recorded net of related federal income taxes. The Asset
Valuation Reserve (AVR) is established by the Company to provide for anticipated
losses in the event of default by issuers of certain invested assets. These
amounts are determined using a formula prescribed by the NAIC and are reported
as a liability. The formula for the AVR provides for a corresponding adjustment
for realized gains and losses. Under a formula prescribed by the NAIC, the
Company defers, in the Interest Maintenance Reserve (IMR), the portion of
realized gains and losses on sales of fixed income investments, principally
bonds and mortgage loans, attributable to changes in the general level of
interest rates and amortizes those deferrals over the remaining period to
maturity of the security.
Interest income is recognized on an accrual basis. The Company does not accrue
income on bonds in default, mortgage loans on real estate in default and/or
foreclosure or which are delinquent more than twelve months, or real estate
where rent is in arrears for more than three months. Further, income is not
accrued when collection is uncertain. At December 31, 1998, 1997 and 1996, the
Company excluded investment income due and accrued of $216, $473 and $469,
respectively, with respect to such practices.
The Company uses interest rate swaps as part of its overall interest rate risk
management strategy for certain life insurance and annuity products. The net
interest effect of such swap transactions is reported as an adjustment of
interest income from the hedged items as incurred.
Deferred income for unrealized gains and losses on the securities valued at
market at the time of the assumption reinsurance agreement (described in Note 4)
are returned to MONY at the time of realization pursuant to the agreement.
AGGREGATE POLICY RESERVES
Life, annuity and accident and health benefit reserves are developed by
actuarial methods and are determined based on published tables using statutorily
specified interest rates and valuation methods that will provide, in the
aggregate, reserves that are greater than or equal to the minimum required by
law.
The aggregate policy reserves for life insurance policies are based principally
upon the 1941, 1958 and 1980 Commissioners' Standard Ordinary Mortality Tables.
The reserves are calculated using interest rates ranging from 2.50 to 6.50
percent and are computed principally on the Net Level Premium Valuation and the
Commissioners' Reserve Valuation Method. Reserves for universal life policies
are based on account balances adjusted for the Commissioners' Reserve Valuation
Method.
11
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred annuity reserves are calculated according to the Commissioners' Annuity
Reserve Valuation Method including excess interest reserves to cover situations
where the future interest guarantees plus the decrease in surrender charges are
in excess of the maximum valuation rates of interest. Reserves for immediate
annuities and supplementary contracts with life contingencies are equal to the
present value of future payments assuming interest rates ranging from 3.00 to
8.50 percent and mortality rates, where appropriate, from a variety of tables.
Accident and health policy reserves are equal to the greater of the gross
unearned premiums or any required midterminal reserves plus net unearned
premiums and the present value of amounts not yet due on both reported and
unreported claims.
POLICY AND CONTRACT CLAIM RESERVES
Claim reserves represent the estimated accrued liability for claims reported to
the Company and claims incurred but not yet reported through the statement date.
These reserves are estimated using either individual case-basis valuations or
statistical analysis techniques. These estimates are subject to the effects of
trends in claim severity and frequency. The estimates are continually reviewed
and adjusted as necessary as experience develops or new information becomes
available.
SEPARATE ACCOUNTS
Assets held in trust for purchases of separate account contracts and the
Company's corresponding obligation to the contract owners are shown separately
in the balance sheets. Income and gains and losses with respect to these assets
accrue to the benefit of the policyholders and, accordingly, the operations of
the separate accounts are not included in the accompanying financial statements.
Certain separate account assets and liabilities reported in the accompanying
financial statements contain contractual guarantees. Guaranteed separate
accounts represent funds invested by the Company for the benefit of individual
contract holders who are guaranteed certain returns as specified in the
contracts. Separate account asset performance different than guaranteed
requirements is either transferred to or received from the general account and
reported in the statements of operations. Guaranteed separate account assets and
liabilities are reported at estimated fair value except for certain government
and fixed-rate separate accounts, which are carried at amortized cost. The
assets and liabilities of the nonguaranteed separate accounts are carried at
estimated fair value.
12
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
STOCK OPTION PLAN
AEGON N.V. sponsors a stock option plan for eligible employees of the Company.
Under this plan, certain employees have indicated a preference to immediately
sell shares received as a result of their exercise of the stock options; in
these situations, AEGON N.V. has settled such options in cash rather than
issuing stock to these employees. These cash settlements are paid by the
Company, and AEGON N.V. subsequently reimburses the Company for such payments.
Under statutory accounting principles, the Company does not record any expense
related to this plan, as the expense is recognized by AEGON N.V. However, the
Company is allowed to record a deduction in the consolidated tax return filed by
the Company and certain affiliates.
2. FAIR VALUES OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards (SFAS) No. 107, Disclosures about
Fair Value of Financial Instruments, requires disclosure of fair value
information about financial instruments, whether or not recognized in the
statutory-basis balance sheet, for which it is practicable to estimate that
value. SFAS No. 119, Disclosures About Derivative Financial Instruments and Fair
Value of Financial Instruments, requires additional disclosures about
derivatives. In cases where quoted market prices are not available, fair values
are based on estimates using present value or other valuation techniques. Those
techniques are significantly affected by the assumptions used, including the
discount rate and estimates of future cash flows. In that regard, the derived
fair value estimates cannot be substantiated by comparisons to independent
markets and, in many cases, could not be realized in immediate settlement of the
instrument. SFAS No. 107 and No. 119 exclude certain financial instruments and
all nonfinancial instruments from their disclosure requirements and allow
companies to forego the disclosures when those estimates can only be made at
excessive cost. Accordingly, the aggregate fair value amounts presented do not
represent the underlying value of the Company.
The following methods and assumptions were used by the Company in estimating its
fair value disclosures for financial instruments:
Cash and short-term investments: The carrying amounts reported in the
statutory-basis balance sheet for these instruments approximate their fair
values.
Investment securities: Fair values for fixed maturity securities (including
redeemable preferred stocks) are based on quoted market prices, where
available. For fixed maturity securities not actively traded, fair values are
estimated using values obtained
13
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
2. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)
from independent pricing services or, in the case of private placements, are
estimated by discounting expected future cash flows using a current market
rate applicable to the yield, credit quality, and maturity of the investments.
The fair values for equity securities are based on quoted market prices.
Mortgage loans and policy loans: The fair values for mortgage loans are
estimated utilizing discounted cash flow analyses, using interest rates
reflective of current market conditions and the risk characteristics of the
loans. The fair value of policy loans is assumed to equal its carrying value.
Investment contracts: Fair values for the Company's liabilities under
investment-type insurance contracts are estimated using discounted cash flow
calculations, based on interest rates currently being offered for similar
contracts with maturities consistent with those remaining for the contracts
being valued.
Interest rate swaps: Estimated fair value of interest rate swaps are based
upon the pricing differential for similar swap agreements.
Fair values for the Company's insurance contracts other than investment
contracts are not required to be disclosed. However, the fair values of
liabilities under all insurance contracts are taken into consideration in the
Company's overall management of interest rate risk, which minimizes exposure to
changing interest rates through the matching of investment maturities with
amounts due under insurance contracts.
The following sets forth a comparison of the fair values and carrying values of
the Company's financial instruments subject to the provisions of SFAS No. 107
and No. 119:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
------------------------------- ------------------------------
CARRYING CARRYING
VALUE FAIR VALUE VALUE FAIR VALUE
------------------------------- ------------------------------
<S> <C> <C> <C> <C>
ADMITTED ASSETS
Cash and short-term investments $ 61,065 $ 61,065 $ 68,131 $ 68,131
Bonds 4,151,780 4,246,901 3,988,635 4,083,280
Preferred stock 2,582 2,529 1,792 1,892
Common stock 2 2 144 144
Mortgage loans on real estate 413,107 429,716 495,009 504,947
Interest rate swap - - 391
Policy loans 3,181 3,181 3,046 3,046
Separate account assets 6,517,152 6,527,180 5,630,093 5,640,386
LIABILITIES
Investment contract liabilities 4,134,507 4,057,004 4,091,938 4,011,465
Separate account annuities 6,408,436 6,387,445 5,594,880 5,577,854
</TABLE>
14
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
3. INVESTMENTS
The carrying value and estimated fair value of investments in debt securities
were as follows:
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
CARRYING UNREALIZED UNREALIZED FAIR
VALUE GAINS LOSSES VALUE
--------------------------------------------------------
<S> <C> <C> <C> <C>
DECEMBER 31, 1998
Bonds:
United States Government and agencies $ 99,834 $ 1,776 $ 285 $ 101,325
State, municipal and other government 38,387 1,427 1,625 38,189
Public utilities 355,719 10,239 825 365,133
Industrial and miscellaneous 2,398,132 88,051 25,538 2,460,645
Mortgage-backed and asset-backed securities
1,259,708 27,387 5,486 1,281,609
--------------------------------------------------------
4,151,780 128,880 33,759 4,246,901
Preferred stocks 2,582 - 53 2,529
--------------------------------------------------------
$4,154,362 $128,880 $33,812 $4,249,430
========================================================
DECEMBER 31, 1997
Bonds:
United States Government and agencies $ 102,628 $ 943 $ 255 $ 103,316
State, municipal and other government 60,427 1,413 1,761 60,079
Public utilities 251,071 4,943 892 255,122
Industrial and miscellaneous 2,324,342 66,883 6,424 2,384,801
Mortgage-backed and asset-backed securities
1,250,167 32,779 2,984 1,279,962
--------------------------------------------------------
3,988,635 106,961 12,316 4,083,280
Preferred stocks 1,792 100 - 1,892
--------------------------------------------------------
$3,990,427 $107,061 $12,316 $4,085,172
========================================================
</TABLE>
The carrying value and estimated fair value of bonds at December 31, 1998, by
contractual maturity, are shown below. Expected maturities may differ from
contractual maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
15
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
CARRYING ESTIMATED
VALUE FAIR VALUE
--------------------------
<S> <C> <C>
Due in one year or less $ 262,288 $ 263,578
Due after one year through five years 1,553,746 1,582,380
Due after five years through ten years 825,886 849,510
Due after ten years 250,152 269,824
--------------------------
2,892,072 2,965,292
Mortgage-backed and asset-backed securities 1,259,708 1,281,609
--------------------------
$4,151,780 $4,246,901
==========================
</TABLE>
A detail of net investment income is presented below:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997 1996
-------------------------------------------
<S> <C> <C> <C>
Interest on bonds and notes $290,967 $285,730 $267,510
Mortgage loans 46,027 57,659 83,511
Real estate 12,741 13,976 7,225
Dividends on equity investments 254 223 220
Interest on policy loans 317 168 154
Derivative instruments (3,265) 100 -
Other investment gain (loss) 9,568 1,543 (5,482)
-------------------------------------------
Gross investment income 356,609 359,399 353,138
Investment expenses 10,949 17,859 13,678
-------------------------------------------
Net investment income $345,660 $341,540 $339,460
===========================================
</TABLE>
Proceeds from sales and maturities of debt securities and related gross realized
gains and losses were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997 1996
---------------------------------------------
<S> <C> <C> <C>
Proceeds $1,381,784 $968,184 $777,107
=============================================
Gross realized gains $ 19,871 $ 19,165 $ 9,697
Gross realized losses (5,974) (11,997) (12,291)
---------------------------------------------
Net realized gains (losses) $ 13,897 $ 7,168 $ (2,594)
=============================================
</TABLE>
16
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
3. INVESTMENTS (CONTINUED)
At December 31, 1998, investments with an aggregate carrying value of $4,378
were on deposit with regulatory authorities or were restrictively held in bank
custodial accounts for the benefit of such regulatory authorities as required by
statute.
Realized investment gains (losses) and changes in unrealized gains (losses) for
investments are summarized below:
<TABLE>
<CAPTION>
REALIZED
------------------------------------------
YEAR ENDED DECEMBER 31
1998 1997 1996
-------------------------------------------
<S> <C> <C> <C>
Debt securities $ 13,897 $ 7,168 $ (2,594)
Common stock 60 - 244
Preferred stock 170 (7) (44)
Short-term investments (41) (6) (115)
Mortgage loans on real estate 325 287 (12,415)
Real estate 3,967 4,059 -
Other invested assets 2,859 5,035 6,872
-------------------------------------------
21,237 16,536 (8,052)
Tax effect 20 (747) 87
Transfer to interest maintenance reserve (17,487) (14,958) (4,142)
-------------------------------------------
Total realized gains (losses) $ 3,770 $ 831 $(12,107)
===========================================
</TABLE>
<TABLE>
<CAPTION>
CHANGE IN UNREALIZED
-------------------------------------------
YEAR ENDED DECEMBER 31
1998 1997 1996
-------------------------------------------
<S> <C> <C> <C>
Debt securities $ 323 $56,129 $(87,888)
Equity securities (38) 21 (190)
------------------------------------------
Change in unrealized appreciation
(depreciation) $ 285 $56,150 $(88,078)
==========================================
</TABLE>
Gross unrealized gains and gross unrealized losses on equity securities at
December 31, 1998, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997 1996
-------------------------------------------
<S> <C> <C> <C>
Unrealized gains $ - $ 38 $ 16
Unrealized losses (12) (12) (11)
-------------------------------------------
Net unrealized gains (losses) $ (12) $ 26 $ 5
===========================================
</TABLE>
17
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
3. INVESTMENTS (CONTINUED)
During 1998, the Company issued mortgage loans with interest rates ranging from
6.55% to 8.49%. The maximum percentage of any one loan to the value of the
underlying real estate at origination was 79%. No mortgage loans were non-income
producing for the previous twelve months and, accordingly, no accrued interest
related to these mortgage loans was excluded from investment income. The Company
requires all mortgage loans to carry fire insurance equal to the value of the
underlying property.
During 1998, 1997 and 1996, there were $2,796, $4,427 and $28,929, respectively,
in foreclosed mortgage loans that were transferred to real estate. At December
31, 1998 and 1997, the Company held a mortgage loan loss reserve in the asset
valuation reserve of $34,083 and $20,191, respectively. The mortgage loan
portfolio is diversified by geographic region and specific collateral property
type as follows:
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION Property Type Distribution
- -------------------------------------------------- -------------------------------------------
DECEMBER 31 DECEMBER 31
1998 1997 1998 1997
------------------- -------------------
<S> <C> <C> <C> <C> <C>
South Atlantic 22% 20% Office 37% 30%
Mid-Atlantic 20 16 Industrial 29 13
E. North Central 20 16 Retail 24 19
Pacific 9 20 Apartment 4 23
W. South Central 9 2 Agricultural 2 -
New England 8 7 Other 4 15
Mountain 7 15
E. South Central 3 2
W. North Central 2 2
</TABLE>
At December 31, 1998, the Company had no investments, excluding U. S. Government
guaranteed or insured issues, which individually represented more than ten
percent of capital and surplus and the asset valuation reserve.
The Company utilized an interest rate swap agreement as part of its efforts to
hedge and manage fluctuations in the market value of its investment portfolio
attributable to changes in general interest rate levels and to manage duration
mismatch of assets and liabilities. The contract or notional amounts of those
instruments reflect the extent of involvement in the various types of financial
instruments.
18
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
3. INVESTMENTS (CONTINUED)
The Company's exposure to credit risk is the risk of loss from a counterparty
failing to perform according to the terms of the contract. That exposure
includes settlement risk (i.e., the risk that the counterparty defaults after
the Company has delivered funds or securities under terms of the contract) that
would result in an accounting loss and replacement cost risk (i.e., the cost to
replace the contract at current market rates should the counterparty default
prior to settlement date). Credit loss exposure resulting from nonperformance by
a counterparty for commitments to extend credit is represented by the
contractual amounts of the instruments.
At December 31, 1998, the Company held no derivative instruments. At December
31, 1998 and 1997, the Company's outstanding financial instruments with on and
off-balance sheet risks, shown in notional amounts, are summarized as follows:
<TABLE>
<CAPTION>
NOTIONAL AMOUNT
--------------------------
1998 1997
--------------------------
<S> <C> <C>
Derivative securities:
Interest rate swaps:
Receive fixed - pay floating $74,588 $50,800
</TABLE>
4. REINSURANCE
The Company reinsures portions of risk on certain insurance policies which
exceed its established limits, thereby providing a greater diversification of
risk and minimizing exposure on larger risks. The Company remains contingently
liable with respect to any insurance ceded, and this would become an actual
liability in the event that the assuming insurance company became unable to meet
its obligation under the reinsurance treaty.
Premiums earned reflect the following reinsurance assumed and ceded amounts for
the year ended December 31:
<TABLE>
<CAPTION>
1998 1997 1996
--------------------------------------------
<S> <C> <C> <C>
Direct premiums $1,183,777 $1,309,731 $1,185,163
Reinsurance assumed 6,415 6,905 9,962
Reinsurance ceded (2,539) (5,268) (29,141)
--------------------------------------------
Net premiums earned $1,187,653 $1,311,368 $1,165,984
============================================
</TABLE>
19
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
4. REINSURANCE (CONTINUED)
The Company received reinsurance recoveries in the amounts of $2,493, $1,992 and
$1,758 during 1998, 1997 and 1996, respectively.
The aggregate reserves for policies and contracts were reduced for reserve
credits for reinsurance ceded at December 31, 1998 and 1997 of $143,819 and
$153,092, respectively.
On December 31, 1993, the Company and MONY entered into an assumption
reinsurance agreement whereby all of the general account liabilities were
novated to the Company from MONY as state approvals were received.
In accordance with the agreement, MONY will receive payments relating to the
performance of the assets and liabilities that exist at the date of closing for
a period of nine years. These payments will be reduced for certain
administrative expenses as defined in the agreement. The Company will recognize
operating gains and losses on renewal premiums received after December 31, 1993
of the business in-force at December 31, 1993, and on all new business written
after that date. At the end of nine years from the date of closing, the Company
will purchase from MONY the remaining transferred business inforce based upon a
formula described in the agreement. At December 31, 1998 and 1997, the Company
owed MONY $52,837 and $56,952, respectively, which represents the amount earned
by MONY under the gain sharing calculation and certain fees for investment
management services for the respective years.
In connection with the transaction, MONY purchased $150,000 and $50,000 in
Series A and Series B notes, respectively, of AEGON. The proceeds were used to
enhance the surplus of the Company. Both the Series A and Series B notes bear a
market rate of interest and mature in nine years from the date of closing.
AEGON provides general and administrative services for the transferred business
under a related agreement with MONY. The agreement specifies prescribed rates
for expenses to administer the business up to certain levels. In addition, AEGON
also provides investment management services on the assets underlying the new
business written by the Company while MONY continues to provide investment
management services for assets supporting the remaining policy liabilities which
were transferred at December 31, 1993.
20
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
5. INCOME TAXES
For federal income tax purposes, the Company joins in a consolidated tax return
filing with certain affiliated companies. Under the terms of a tax-sharing
agreement between the Company and its affiliates, the Company computes federal
income tax expense as if it were filing a separate income tax return, except
that tax credits and net operating loss carryforwards are determined on the
basis of the consolidated group. Additionally, the alternative minimum tax is
computed for the consolidated group and the resulting tax, if any, is allocated
back to the separate companies on the basis of the separate companies'
alternative minimum taxable income.
Federal income tax expense differs from the amount computed by applying the
statutory federal income tax rate to gain from operations before federal income
tax expense and net realized capital gains (losses) on investments primarily due
to differences in the statutory and tax treatment of certain investments,
deferred policy acquisition costs, stock options exercised, dividends received
deduction, carryforward (utilization) of operating loss, IMR amortization, and
certain adjustments related to the agreement between MONY and the Company. These
adjustments caused the Company to calculate federal income tax expense using
alternative minimum tax requirements in 1998.
Federal income tax expense differs from the amount computed by applying the
statutory federal income tax rate to net realized capital gains (losses) on
investments due to the agreement between MONY and the Company, as discussed in
Note 4 to the financial statements. In accordance with this agreement, these
gains and losses are included in the net payments MONY will receive relating to
the performance of the assets that existed at the date of closing. Accordingly,
income taxes relating to gains and losses on such assets are not provided for on
the income tax return filed by the Company.
Prior to 1984, as provided for under the Life Insurance Company Tax Act of 1959,
a portion of statutory income was not subject to current taxation but was
accumulated for income tax purposes in a memorandum account referred to as the
policyholders' surplus account. No federal income taxes have been provided for
in the financial statements on income deferred in the policyholders' surplus
account ($2,427 at December 31, 1998). To the extent dividends are paid from the
amount accumulated in the policyholders' surplus account, net earnings would be
reduced by the amount of tax required to be paid. Should the entire amount in
the policyholders' surplus account become taxable, the tax thereon computed at
current rates would amount to approximately $849.
At December 31, 1998, the Company had net operating loss carryforwards of
approximately $8,514 which expire through 2011.
In 1998, the Company reached a final settlement with the Internal Revenue
Service for years 1993 through 1995 resulting in no tax due or refunded.
21
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
6. POLICY AND CONTRACT ATTRIBUTES
A portion of the Company's policy reserves and other policyholders' funds relate
to liabilities established on a variety of the Company's products that are not
subject to significant mortality or morbidity risk; however, there may be
certain restrictions placed upon the amount of funds that can be withdrawn
without penalty. The amount of reserves on these products, by withdrawal
characteristics, are summarized as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
---------------------------- ----------------------------
PERCENT OF PERCENT OF
AMOUNT TOTAL AMOUNT TOTAL
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
Subject to discretionary withdrawal with
market value adjustment $ 912,692 9% $ 910,528 9%
Subject to discretionary withdrawal at book
value less surrender charge 1,013,495 10 1,045,807 11
Subject to discretionary withdrawal at
market value 3,678,649 34 2,950,639 30
Subject to discretionary withdrawal at book
value (minimal or no charges or adjustments) 2,666,670 25 2,616,308 27
Not subject to discretionary withdrawal
provision 2,416,602 22 2,317,823 23
-------------------------- -------------------------
10,688,108 100% 9,841,105 100%
========= ========
Less reinsurance ceded 143,475 152,726
---------- ----------
Total policy reserves on annuities and
deposit fund liabilities $10,544,633 $9,688,379
=========== ==========
</TABLE>
Separate and variable account assets held by the Company represent contracts
where the benefit is determined by the performance of the investments held in
the separate account. Information regarding the separate accounts of the Company
as of and for the years ended December 31, 1998, 1997 and 1996 is as follows:
<TABLE>
<CAPTION>
GUARANTEED NON-GUARANTEED
SEPARATE SEPARATE
ACCOUNT ACCOUNT TOTAL
----------------------------------------------
<S> <C> <C> <C>
Premiums, deposits and other
considerations for the year ended
December 31, 1998 $ 84,150 $ 767,676 $ 851,826
==============================================
Reserves for separate accounts with
assets as of December 31, 1998 at:
Fair value $2,350,983 $3,461,715 $5,812,698
Amortized cost 595,738 - 595,738
----------------------------------------------
Total $2,946,721 $3,461,715 $6,408,436
==============================================
</TABLE>
22
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
6. POLICY AND CONTRACT ATTRIBUTES (CONTINUED)
<TABLE>
<CAPTION>
GUARANTEED NON-GUARANTEED
SEPARATE SEPARATE
ACCOUNT ACCOUNT TOTAL
----------------------------------------------
<S> <C> <C> <C>
Premiums, deposits and other
considerations for the year ended
December 31, 1997 $ 147,638 $ 648,056 $ 795,694
==============================================
Reserves for separate accounts with
assets as of December 31, 1997 at:
Fair value $2,204,931 $2,767,245 $4,972,176
Amortized cost 622,703 - 622,703
----------------------------------------------
Total $2,827,634 $2,767,245 $5,594,879
==============================================
Premiums, deposits and other
considerations for the year ended
December 31, 1996 $ - $ 747,506 $ 747,506
==============================================
Reserves for separate accounts with
assets as of December 31, 1996 at:
Fair value $2,022,843 $2,178,445 $4,201,288
Amortized cost 613,565 - 613,565
----------------------------------------------
Total $2,636,408 $2,178,445 $4,814,853
==============================================
</TABLE>
There may be certain restrictions placed upon the amount of funds that can be
withdrawn without penalty. The amount of separate account liabilities on these
products, by withdrawal characteristics, is summarized as follows:
<TABLE>
<CAPTION>
GUARANTEED NON-GUARANTEED
SEPARATE SEPARATE
ACCOUNT ACCOUNT TOTAL
----------------------------------------------
<S> <C> <C> <C>
DECEMBER 31, 1998
Subject to discretionary withdrawal
with market value adjustment $ 345,379 $ - $ 345,379
Subject to discretionary withdrawal at
book value less surrender charge 250,359 - 250,359
Subject to discretionary withdrawal at
market value 216,935 3,461,715 3,678,650
Not subject to discretionary withdrawal 2,134,048 - 2,134,048
----------------------------------------------
$2,946,721 $3,461,715 $6,408,436
==============================================
</TABLE>
23
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
6. POLICY AND CONTRACT ATTRIBUTES (CONTINUED)
<TABLE>
<CAPTION>
GUARANTEED NON-GUARANTEED
SEPARATE SEPARATE
ACCOUNT ACCOUNT TOTAL
-----------------------------------------------
<S> <C> <C> <C>
DECEMBER 31, 1997
Subject to discretionary withdrawal
with market value adjustment $ 358,061 $ - $ 358,061
Subject to discretionary withdrawal at
book value less surrender charge 264,642 - 264,642
Subject to discretionary withdrawal at
market value 180,802 2,767,245 2,948,047
Not subject to discretionary withdrawal 2,024,129 - 2,024,129
------------------------------------------------
$2,827,634 $2,767,245 $5,594,879
================================================
</TABLE>
A reconciliation of the amounts transferred to and from the separate accounts is
presented below:
<TABLE>
<CAPTION>
1998 1997 1996
--------------------------------------
<S> <C> <C> <C>
Transfers as reported in the summary of operations of
the separate accounts annual statement:
Transfers to separate accounts $851,826 $795,663 $747,677
Transfers from separate accounts 723,321 767,049 505,592
--------------------------------------
Net transfers to separate accounts 128,505 28,614 242,085
Reconciling adjustments - HUB level fees not paid to
AUSA general account 1,317 13,756 13,520
Fees paid to external fund manager - 120 67
Assumption of liabilities via merger of FPLH 1,088 - -
--------------------------------------
Net adjustments 2,405 13,876 13,587
--------------------------------------
Transfers as reported in the summary of operations of
the life, accident and health annual statement $130,910 $ 42,490 $255,672
======================================
</TABLE>
Reserves on the Company's traditional life products are computed using mean
reserving methodologies. These methodologies result in the establishment of
assets for the amount of the net valuation premiums that are anticipated to be
received between the policy's paid-through date to the policy's next anniversary
date. At December 31, 1998 and 1997, these assets (which are reported as
premiums deferred and uncollected) and the amounts of the related gross premiums
and loadings, are as follows:
24
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
6. POLICY AND CONTRACT ATTRIBUTES (CONTINUED)
<TABLE>
<CAPTION>
GROSS LOADING NET
--------------------------------
<S> <C> <C> <C>
DECEMBER 31, 1998
Ordinary direct first year business $ 351 $ 339 $ 12
Ordinary direct renewal business 6,760 1,087 5,673
Group life direct business 851 482 369
Credit life 37 - 37
Reinsurance ceded (6) - (6)
--------------------------------
7,993 1,908 6,085
Accident and health:
Direct 363 - 363
Reinsurance ceded (40) - (40)
--------------------------------
Total accident and health 323 - 323
--------------------------------
$8,316 $1,908 $6,408
================================
DECEMBER 31, 1997
Ordinary direct first year business $ 460 $ 336 $ 124
Ordinary direct renewal business 6,138 1,081 5,057
Group life direct business 1,267 433 834
Credit life 41 - 41
Reinsurance ceded (14) - (14)
--------------------------------
7,892 1,850 6,042
Accident and health:
Direct 325 - 325
Reinsurance ceded (51) - (51)
--------------------------------
Total accident and health 274 - 274
--------------------------------
$8,166 $1,850 $6,316
================================
</TABLE>
At December 31, 1998 and 1997, the Company had insurance in force aggregating
$474,471 and $597,855, respectively, in which the gross premiums are less than
the net premiums required by the valuation standards established by the
Department of Insurance of the State of New York. The Company established policy
reserves of $1,348 and $1,476 to cover these deficiencies at December 31, 1998
and 1997, respectively.
7. DIVIDEND RESTRICTIONS
The Company is subject to certain limitations relative to statutory surplus,
imposed by the State of New York, on the payment of dividends to its parent
company.
The Company paid dividends to its parent of $8,000 in 1998. The Company is not
entitled to pay out any dividends in 1999 without prior approval.
25
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
8. RETIREMENT AND COMPENSATION PLANS
The Company's employees participate in a qualified benefit pension plan
sponsored by AEGON. The Company has no legal obligation for the plan. The
Company recognizes pension expense equal to its allocation from AEGON. The
pension expense is allocated among the participating companies based on the FASB
87 expense as a percent of salaries. The benefits are based on years of service
and the employee's compensation during the highest five consecutive years of
employment. The Company was allocated $4, $0 and $13 of pension expense for the
years ended December 31, 1998, 1997 and 1996, respectively. The plan is subject
to the reporting and disclosure requirements of the Employee Retirement Income
Security Act of 1974.
The Company's employees also participate in a contributory defined contribution
plan sponsored by AEGON which is qualified under Section 401(k) of the Internal
Revenue Service Code. Employees of the Company who customarily work at least
1,000 hours during each calendar year and meet the other eligibility
requirements are participants of the plan. Participants may elect to contribute
up to fifteen percent of their salary to the plan. The Company will match an
amount up to three percent of the participant's salary. Participants may direct
all of their contributions and plan balances to be invested in a variety of
investment options. The plan is subject to the reporting and disclosure
requirements of the Employee Retirement Income Security Act of 1974. The Company
was allocated $9, $12 and $21 of expense for the years ended December 31, 1998,
1997 and 1996, respectively.
AEGON sponsors supplemental retirement plans to provide the Company's senior
management with benefits in excess of normal pension benefits. The plans are
noncontributory and benefits are based on years of service and the employee's
compensation level. The plans are unfunded and nonqualified under the Internal
Revenue Service Code. In addition, AEGON has established incentive deferred
compensation plans for certain key employees of the Company. AEGON also sponsors
an employee stock option plan for individuals employed at least three years and
a stock purchase plan for its producers, with the participating affiliated
companies establishing their own eligibility criteria, producer contribution
limits and company matching formula. These plans have been accrued or funded as
deemed appropriate by management of AEGON and the Company.
In addition to pension benefits, the Company participates in plans sponsored by
AEGON that provide postretirement medical, dental and life insurance benefits to
employees meeting certain eligibility requirements. Portions of the medical and
dental plans are contributory. The expenses of the postretirement plans
calculated on the pay-as-you-go basis are charged to affiliates in accordance
with an intercompany cost sharing arrangement. The Company expensed $4, $2 and
$2 for the years ended December 31, 1998, 1997 and 1996, respectively.
26
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
9. RELATED PARTY TRANSACTIONS
In accordance with an agreement between AEGON and the Company, AEGON will ensure
the maintenance of certain minimum tangible net worth, operating leverage and
liquidity levels of the Company, as defined in the agreement, through the
contribution of additional capital by the Company's parent as needed.
The Company shares certain officers, employees and general expenses with
affiliated companies.
The Company receives data processing, investment advisory and management,
marketing and administration services from certain affiliates. During 1998, 1997
and 1996, the Company paid $5,650, $7,330 and $5,739, respectively, for these
services, which approximates their costs to the affiliates.
Payable to affiliates and intercompany borrowings bear interest at the thirty-
day commercial paper rate of 4.95% at December 31, 1998. During 1998, 1997 and
1996, the Company paid net interest of $232, $142 and $29, respectively, to
affiliates.
10. COMMITMENTS AND CONTINGENCIES
The Company has issued Trust GIC contracts to plan sponsors totaling $153,146 at
December 31, 1998, pursuant to terms under which the plan sponsor retains
ownership of the assets related to these contracts. The Company guarantees
benefit responsiveness in the event that plan benefit requests and other
contractual commitments exceed plan cash flows. The plan sponsor agrees to
reimburse the Company for such benefit payments with interest, either at a fixed
or floating rate, from future plan and asset cash flows. In return for this
guarantee, the Company receives a premium which varies based on such elements as
benefit responsive exposure and contract size. The Company underwrites the plans
for the possibility of having to make benefit payments and also must agree to
the investment guidelines to ensure appropriate credit quality and cash flow
matching. The assets and liabilities relating to such contracts are not
recognized in the Company's statutory-basis financial statements.
The Company is a party to legal proceedings incidental to its business. Although
such litigation sometimes includes substantial demands for compensatory and
punitive damages, in addition to contract liability, it is management's opinion,
after consultation with counsel and a review of available facts, that damages
arising from such demands will not be material to the Company's financial
position.
27
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
10. COMMITMENTS AND CONTINGENCIES (CONTINUED)
The Company is subject to insurance guaranty laws in the states in which it
writes business. These laws provide for assessments against insurance companies
for the benefit of policyholders and claimants in the event of insolvency of
other insurance companies. In accordance with the purchase agreement,
assessments related to periods prior to the purchase of the Company will be paid
by Dreyfus and assessments attributable to business reinsured from MONY for
premiums received prior to the date of the transaction will be paid by MONY (see
Note 1). The Company will be responsible for assessments, if any, attributable
to premium income after the date of purchase. Assessments are charged to
operations when received by the Company except where right of offset against
other taxes paid is allowed by law; amounts available for future offsets are
recorded as an asset on the Company's balance sheet. Potential future
obligations for unknown insolvencies are not determinable by the Company. The
future obligation has been based on the most recent information available from
the National Organization of Life and Health Insurance Guaranty Associations.
The guaranty fund expense was $126, $586 and $246 for the years ended December
31, 1998, 1997 and 1996, respectively.
11. YEAR 2000 (UNAUDITED)
The term Year 2000 issue generally refers to the improper processing of dates
and incorrect date calculations that might occur in computer software and
hardware and embedded systems as the Year 2000 is approached. The use of
computer programs that rely on two-digit date fields to perform computations and
decision-making functions may cause systems to malfunction when processing
information involving dates after 1999. For example, any computer software that
has date-sensitive coding might recognize a code of 00 as the year 1900 rather
than the year 2000.
The Company has developed a Year 2000 Project Plan (the Plan) to address the
Year 2000 issue as it affects the Company's internal Information Technology
("IT") and non-IT systems, and to assess Year 2000 issues relating to third
parties with whom the Company has critical relationships.
The Plan for addressing internal systems generally includes an assessment of
internal IT and non-IT systems and equipment affected by the Year 2000 issue;
definition of strategies to address affected systems and equipment; remediation
of identified systems and equipment; internal testing and certification that
each internal system is Year 2000 compliant; and a review of existing and
revised business resumption and contingency plans to address potential Year 2000
issues. The Company has remediated and tested substantially all of its mission-
critical internal IT systems as of December 31, 1998. The Company continues to
remediate and test certain non-critical internal IT systems, internal non-IT
systems and will continue with a revalidation testing program throughout 1999.
28
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
11. YEAR 2000 (UNAUDITED) (CONTINUED)
The Company's Year 2000 issues are more complex because a number of its systems
interface with other systems not under the Company's control. The Company's most
significant interfaces and uses of third-party vendor systems are in the bank,
financial services and trust areas. The Company utilizes various banks to handle
numerous types of financial and sales transactions. Several of these banks also
provide trustee and custodial services for the Company's investment holdings and
transactions. These services are critical to a financial services company such
as the Company as its business centers around cash receipts and disbursements to
policyholders and the investment of policyholder funds. The Company has received
written confirmation from its vendor banks regarding their status on Year 2000.
The banks indicate their dedication to resolving any Year 2000 issues related to
their systems and services prior to December 31, 1999. The Company anticipates
that a considerable effort will be necessary to ensure that its corrected or new
systems can properly interface with those business partners with whom it
transmits and receives data and other information (external systems). The
Company has undertaken specific testing regimes with these third-party business
partners and expects to continue working with its business partners on any
interfacing of systems. However, the timing of external system compliance cannot
currently be predicted with accuracy because the implementation of Year 2000
readiness will vary from one company to another.
The Company does have some exposure to date-sensitive embedded technology such
as micro-controllers, but the Company views this exposure as minimal. Unlike
other industries that may be equipment intensive, like manufacturing, the
Company is a life insurance and financial services organization providing
insurance, annuities and pension products to its customers. As such, the primary
equipment and electronic devices in use are computers and telephone related
equipment. This type of hardware can have date-sensitive embedded technology
which could have Year 2000 problems. Because of this exposure, the Company has
reviewed its computer hardware and telephone systems, with assistance from the
applicable vendors, and has upgraded, or replaced, or is in the process of
replacing any equipment that will not properly process date-sensitive data in
the Year 2000 or beyond.
For the Company, a reasonably likely worst case scenario might include one or
more of the Company's significant policyholder systems being non-compliant. Such
an event could result in a material disruption of the Company's operations.
Specifically, a number of the Company's operations could experience an
interruption in the ability to collect and process premiums or deposits, process
claim payments, accurately maintain policyholder information, accurately
maintain accounting records, and/or perform adequate customer service. Should
the worst case scenario occur, it could, dependent upon its duration, have a
material impact on the Company's business and financial condition. Simple
failures can
29
<PAGE>
AUSA Life Insurance Company, Inc.
Notes to Financial Statements - Statutory Basis (continued)
(Dollars in thousands)
11. YEAR 2000 (UNAUDITED) (CONTINUED)
be repaired and returned to production within a matter of hours with no material
impact. Unanticipated failures with a longer service disruption period could
have a more serious impact. For this reason, the Company is placing significant
emphasis on risk management and Year 2000 business resumption contingency
planning in 1999 by modifying its existing business resumption and disaster
recovery plans to address potential Year 2000 issues.
The actions taken by management under the Year 2000 Project Plans are intended
to significantly reduce the Company's risk of a material business interruption
based on the Year 2000 issues. It should be noted that the Year 2000 computer
problem, and its resolution, is complex and multifaceted, and any company's
success cannot be conclusively known until the Year 2000 is reached. In spite of
its efforts or results, the Company's ability to function unaffected to and
through the Year 2000 may be adversely affected by actions (or failure to act)
of third parties beyond our knowledge or control. It is anticipated that there
may be problems that will have to be resolved in the ordinary course of business
on and after the Year 2000. However, the Company does not believe that the
problems will have a material adverse affect on the Company's operations or
financial condition.
30
<PAGE>
Financial Statements
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Year ended December 31, 1998
with Report of Independent Auditors
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Financial Statements
Year ended December 31, 1998
Contents
Report of Independent Auditors.................................................1
Financial Statements
Balance Sheet..................................................................2
Statement of Operations........................................................6
Statements of Changes in Contract Owners' Equity..............................10
Notes to Financial Statements.................................................14
<PAGE>
Report of Independent Auditors
The Board of Directors and Contract Owners
of The Endeavor Variable Annuity,
AUSA Life Insurance Company, Inc.
We have audited the accompanying balance sheet of the subaccounts of AUSA
Endeavor Variable Annuity Account, which are available for investment by The
Endeavor Variable Annuity contract owners, as of December 31, 1998, and the
related statements of operations for the year then ended and changes in contract
owners' equity for each of the two years in the period then ended. These
financial statements are the responsibility of the Variable 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 mutual fund shares owned as of December 31, 1998 by
correspondence with the mutual funds' transfer agent. 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 subaccounts of the AUSA
Endeavor Variable Annuity Account, which are available for investment by The
Endeavor Variable Annuity contract owners, at December 31, 1998, and the results
of its operations for the year then ended and changes in its contract owners'
equity for each of the two years in the period then ended in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Des Moines, Iowa
January 29, 1999
1
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Balance Sheet
December 31, 1998
Total
---------------
Assets
Investments in mutual funds, at current market value:
Endeavor Series Trust:
Endeavor Money Market Portfolio $ 1,326,568
Endeavor Asset Allocation Portfolio 5,652,912
T. Rowe Price International Stock Portfolio 7,661,121
Endeavor Value Equity Portfolio 8,353,188
Dreyfus Small Cap Value Portfolio 5,420,157
Dreyfus U. S. Government Securities Portfolio 2,273,520
T. Rowe Price Equity Income Portfolio 7,949,358
T. Rowe Price Growth Stock Portfolio 7,381,845
Endeavor Opportunity Value Portfolio 1,149,335
Endeavor Enhanced Index Portfolio 1,908,702
WRL Series Fund, Inc.:
Growth Portfolio 20,890,222
---------------
Total investments in mutual funds 69,966,928
---------------
Total assets $69,966,928
===============
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 1,118
---------------
Total liabilities 1,118
Contract owners' equity:
Deferred annuity contracts terminable by owners 69,965,810
---------------
Total liabilities and contract owners' equity $69,966,928
===============
See accompanying notes.
2
<PAGE>
<TABLE>
<CAPTION>
Endeavor Money Endeavor Asset T. Rowe Price
Market Allocation International
Subaccount Subaccount Stock Subaccount
<S> -------------------------------------------------------
Assets <C> <C> <C>
Investments in mutual funds, at current market value:
Endeavor Series Trust:
Endeavor Money Market Portfolio $1,326,568 $ - $ -
Endeavor Asset Allocation Portfolio - 5,652,912 -
T. Rowe Price International Stock Portfolio - - 7,661,121
Endeavor Value Equity Portfolio - - -
Dreyfus Small Cap Value Portfolio - - -
Dreyfus U. S. Government Securities Portfolio - - -
T. Rowe Price Equity Income Portfolio - - -
T. Rowe Price Growth Stock Portfolio - - -
Endeavor Opportunity Value Portfolio - - -
Endeavor Enhanced Index Portfolio - - -
WRL Series Fund, Inc.:
Growth Portfolio - - -
-------------------------------------------------------
Total investments in mutual funds 1,326,568 5,652,912 7,661,121
-------------------------------------------------------
Total assets $1,326,568 $5,652,912 $7,661,121
=======================================================
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 8 $ 62 $ 76
-------------------------------------------------------
Total liabilities 8 62 76
Contract owners' equity:
Deferred annuity contracts terminable by owners 1,326,560 5,652,850 7,661,045
=======================================================
Total liabilities and contract owners' equity $1,326,568 $5,652,912 $7,661,121
=======================================================
<CAPTION>
Endeavor Dreyfus Small
Value Equity Cap Value
Subaccount Subaccount
<S> ----------------------------------
Assets <C> <C>
Investments in mutual funds, at current market value:
Endeavor Series Trust:
Endeavor Money Market Portfolio $ - $ -
Endeavor Asset Allocation Portfolio - -
T. Rowe Price International Stock Portfolio - -
Endeavor Value Equity Portfolio 8,353,188 -
Dreyfus Small Cap Value Portfolio - 5,420,157
Dreyfus U. S. Government Securities Portfolio - -
T. Rowe Price Equity Income Portfolio - -
T. Rowe Price Growth Stock Portfolio - -
Endeavor Opportunity Value Portfolio - -
Endeavor Enhanced Index Portfolio - -
WRL Series Fund, Inc.:
Growth Portfolio - -
----------------------------------
Total investments in mutual funds 8,353,188 5,420,157
----------------------------------
Total assets $8,353,188 $5,420,157
==================================
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 237 $ 302
----------------------------------
Total liabilities 237 302
Contract owners' equity:
Deferred annuity contracts terminable by owners 8,352,951 5,419,855
==================================
Total liabilities and contract owners' equity $8,353,188 $5,420,157
==================================
</TABLE>
3
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Balance Sheet (continued)
Dreyfus U. S.
Government
Securities
Subaccount
--------------
Assets
Investments in mutual funds, at current market value:
Endeavor Series Trust:
Endeavor Money Market Portfolio $ -
Endeavor Asset Allocation Portfolio -
T. Rowe Price International Stock Portfolio -
Endeavor Value Equity Portfolio -
Dreyfus Small Cap Value Portfolio -
Dreyfus U. S. Government Securities Portfolio 2,273,520
T. Rowe Price Equity Income Portfolio -
T. Rowe Price Growth Stock Portfolio -
Endeavor Opportunity Value Portfolio -
Endeavor Enhanced Index Portfolio -
WRL Series Fund, Inc.:
Growth Portfolio -
--------------
Total investments in mutual funds 2,273,520
==============
Total assets $2,273,520
==============
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 10
--------------
Total liabilities 10
Contract owners' equity:
Deferred annuity contracts terminable by owners 2,273,510
==============
Total liabilities and contract owners' equity $2,273,520
==============
See accompanying notes.
4
<PAGE>
<TABLE>
<CAPTION>
T. Rowe Price T. Rowe Price Endeavor
Equity Income Growth Stock Opportunity Value
Subaccount Subaccount Subaccount
----------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in mutual funds, at current market value:
Endeavor Series Trust:
Endeavor Money Market Portfolio $ - $ - $ -
Endeavor Asset Allocation Portfolio - - -
T. Rowe Price International Stock Portfolio - - -
Endeavor Value Equity Portfolio - - -
Dreyfus Small Cap Value Portfolio - - -
Dreyfus U. S. Government Securities Portfolio - - -
T. Rowe Price Equity Income Portfolio 7,949,358 - -
T. Rowe Price Growth Stock Portfolio - 7,381,845 -
Endeavor Opportunity Value Portfolio - - 1,149,335
Endeavor Enhanced Index Portfolio - - -
WRL Series Fund, Inc.:
Growth Portfolio - - -
----------------------------------------------------------
Total investments in mutual funds 7,949,358 7,381,845 1,149,335
==========================================================
Total assets $7,949,358 $7,381,845 $1,149,335
==========================================================
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 74 $ 126 $ 19
----------------------------------------------------------
Total liabilities 74 126 19
Contract owners' equity:
Deferred annuity contracts terminable by owners 7,949,284 7,381,719 1,149,316
==========================================================
Total liabilities and contract owners' equity $7,949,358 $7,381,845 $1,149,335
==========================================================
<CAPTION>
Endeavor
Enhanced Index Growth
Subaccount Subaccount
-----------------------------------
<S> <C> <C>
Assets
Investments in mutual funds, at current market value:
Endeavor Series Trust: $ - $
Endeavor Money Market Portfolio - -
Endeavor Asset Allocation Portfolio - -
T. Rowe Price International Stock Portfolio - -
Endeavor Value Equity Portfolio - -
Dreyfus Small Cap Value Portfolio - -
Dreyfus U. S. Government Securities Portfolio - -
T. Rowe Price Equity Income Portfolio - -
T. Rowe Price Growth Stock Portfolio - -
Endeavor Opportunity Value Portfolio - -
Endeavor Enhanced Index Portfolio 1,908,702 -
WRL Series Fund, Inc.:
Growth Portfolio - 20,890,222
-----------------------------------
Total investments in mutual funds 1,908,702 20,890,222
===================================
Total assets $1,908,702 $20,890,222
===================================
Liabilities and contract owners' equity
Liabilities:
Contract terminations payable $ 17 $ 187
-----------------------------------
Total liabilities 17 187
Contract owners' equity:
Deferred annuity contracts terminable by owners 1,908,685 20,890,035
===================================
Total liabilities and contract owners' equity $1,908,702 $20,890,222
===================================
</TABLE>
5
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Statement of Operations
Year ended December 31, 1998
Total
-----------
Net investment income (loss)
Income:
Dividends $ 2,278,713
Expenses:
Administrative fee 29,892
Mortality and expense risk charge 787,827
-----------
Net investment income (loss) 1,460,994
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 8,259,766
Cost of investments sold 6,075,818
-----------
Net realized capital gain from sales of investments 2,183,948
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period 4,604,053
End of the period 12,505,236
-----------
Net change in unrealized appreciation (depreciation) of investments 7,901,183
-----------
Net realized and unrealized capital gain (loss) from investments 10,085,131
-----------
Increase (decrease) from operations $11,546,125
===========
See accompanying notes.
6
<PAGE>
<TABLE>
<CAPTION>
Endeavor Money Endeavor Asset T. Rowe Price
Market Allocation International
Subaccount Subaccount Stock Subaccount
-------------------------------------------------------
<S> <C> <C> <C>
Net investment income (loss)
Income:
Dividends $ 44,168 $481,730 $ 97,670
Expenses:
Administrative fee 372 2,644 3,505
Mortality and expense risk charge 12,567 67,293 95,343
-------------------------------------------------------
Net investment income (loss) 31,229 411,793 (1,178)
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 473,509 588,460 909,942
Cost of investments sold 473,509 369,236 722,979
-------------------------------------------------------
Net realized capital gain from sales of investments - 219,224 186,963
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period - 710,551 159,780
End of the period - 822,028 812,805
-------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments - 111,477 653,025
-------------------------------------------------------
Net realized and unrealized capital gain (loss) from investments - 330,701 839,988
-------------------------------------------------------
Increase (decrease) from operations $ 31,229 $742,494 $838,810
=======================================================
<CAPTION>
Endeavor Dreyfus Small
Value Equity Cap Value
Subaccount Subaccount
--------------------------------
<S> <C> <C>
Net investment income (loss)
Income:
Dividends $ 211,884 $ 646,835
Expenses:
Administrative fee 3,917 2,915
Mortality and expense risk charge 105,117 67,416
--------------------------------
Net investment income (loss) 102,850 576,504
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 997,731 550,950
Cost of investments sold 670,049 502,881
--------------------------------
Net realized capital gain from sales of investments 327,682 48,069
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period 1,057,390 504,537
End of the period 958,553 (325,370)
--------------------------------
Net change in unrealized appreciation (depreciation) of investments (98,837) (829,907)
--------------------------------
Net realized and unrealized capital gain (loss) from investments 228,845 (781,838)
--------------------------------
Increase (decrease) from operations $ 331,695 $(205,334)
================================
</TABLE>
7
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Statement of Operations (continued)
Dreyfus U. S.
Government
Securities
Subaccount
----------
Net investment income (loss)
Income:
Dividends $ 56,102
Expenses:
Administrative fee 890
Mortality and expense risk charge 24,291
----------
Net investment income (loss) 30,921
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 125,201
Cost of investments sold 118,550
----------
Net realized capital gain from sales of investments 6,651
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period 65,432
End of the period 126,060
----------
Net change in unrealized appreciation (depreciation) of investments 60,628
----------
Net realized and unrealized capital gain (loss) from investments 67,279
----------
Increase (decrease) from operations $ 98,200
==========
See accompanying notes.
8
<PAGE>
<TABLE>
<CAPTION>
T. Rowe Price T. Rowe Price Endeavor
Equity Income Growth Stock Opportunity Value
Subaccount Subaccount Subaccount
---------------------------------------------------------
<S> <C> <C> <C>
Net investment income (loss)
Income:
Dividends $ 324,655 $ 235,873 $ 10,421
Expenses:
Administrative fee 3,390 2,650 422
Mortality and expense risk charge 95,214 76,708 14,779
---------------------------------------------------------
Net investment income (loss) 226,051 156,515 (4,780)
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 830,323 807,578 583,296
Cost of investments sold 561,233 507,697 460,984
---------------------------------------------------------
Net realized capital gain from sales of investments 269,090 299,881 122,312
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period 1,045,433 762,948 80,372
End of the period 1,032,364 1,627,770 40,842
---------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments (13,069) 864,822 (39,530)
---------------------------------------------------------
Net realized and unrealized capital gain (loss) from investments 256,021 1,164,703 82,782
---------------------------------------------------------
Increase (decrease) from operations $ 482,072 $1,321,218 $ 78,002
=========================================================
<CAPTION>
Endeavor
Enhanced Index Growth
Subaccount Subaccount
---------------------------------
<S> <C> <C>
Net investment income (loss)
Income:
Dividends $ 4,701 $ 164,674
Expenses:
Administrative fee 385 8,802
Mortality and expense risk charge 18,116 210,983
--------------------------------
Net investment income (loss) (13,800) (55,111)
Net realized and unrealized capital gain (loss) from investments
Net realized capital gain from sales of investments:
Proceeds from sales 462,884 1,929,892
Cost of investments sold 380,349 1,308,351
--------------------------------
Net realized capital gain from sales of investments 82,535 621,541
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period 17,739 199,871
End of the period 266,268 7,143,916
--------------------------------
Net change in unrealized appreciation (depreciation) of investments 248,529 6,944,045
--------------------------------
Net realized and unrealized capital gain (loss) from investments 331,064 7,565,586
--------------------------------
Increase (decrease) from operations $317,264 $7,510,475
================================
</TABLE>
9
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Statements of Changes in Contract Owners' Equity
Years ended December 31, 1998 and 1997, except as noted
<TABLE>
<CAPTION>
Endeavor Money Market Endeavor Asset
Total Subaccount Allocation Subaccount
----------------------------- ----------------------------- ------------------------------
1998 1997 1998 1997 1998 1997
----------------------------- ----------------------------- ------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 1,460,994 $ 1,324,362 $ 31,229 $ 31,716 $ 411,793 $ (6,560)
Net realized capital gain 2,183,948 537,309 - - 219,224 103,940
Net change in unrealized
appreciation (depreciation)
of investments 7,901,183 2,841,460 - - 111,477 411,330
----------------------------- ----------------------------- ------------------------------
Increase (decrease) from operations 11,546,125 4,703,131 31,229 31,716 742,494 508,710
Contract transactions:
Net contract purchase payments 3,911,835 9,220,861 99,464 333,392 133,924 476,507
Transfer payments from (to)
other subaccounts or general
account 13,499,242 11,407,256 463,681 (400,679) 1,084,068 1,090,186
Contract terminations,
withdrawals and other
deductions (3,590,513) (558,344) - - (373,106) (69,404)
----------------------------- ----------------------------- ------------------------------
Increase (decrease) from contract
transactions 13,820,564 20,069,773 563,145 (67,287) 844,886 1,497,289
----------------------------- ----------------------------- ------------------------------
Net increase (decrease) in
contract owners' equity 25,366,689 24,772,904 594,374 (35,571) 1,587,380 2,005,999
Contract owners' equity:
Beginning of the period 44,599,121 19,826,217 732,186 767,757 4,065,470 2,059,471
----------------------------- ----------------------------- ------------------------------
End of the period $69,965,810 $44,599,121 $1,326,560 $732,186 $5,652,850 $4,065,470
============================= ============================= ==============================
</TABLE>
(1) Commencement of operations, May 1, 1997.
See accompanying notes.
10
<PAGE>
<TABLE>
<CAPTION>
T. Rowe Price International Endeavor Value Dreyfus Small Cap
Stock Subaccount Equity Subaccount Value Subaccount
-------------------------------- ------------------------------ -----------------------------
1998 1997 1998 1997 1998 1997
-------------------------------- ------------------------------ -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ (1,178) $ (36,623) $ 102,850 $ 80,572 $ 576,504 $ 242,637
Net realized capital gain 186,963 67,267 327,682 95,546 48,069 42,516
Net change in unrealized
appreciation (depreciation)
of investments 653,025 (76,798) (98,837) 708,617 (829,907) 225,752
-------------------------------- ------------------------------ -----------------------------
Increase (decrease) from operations 838,810 (46,154) 331,695 884,735 (205,334) 510,905
Contract transactions:
Net contract purchase payments 236,000 1,358,284 352,811 1,004,197 289,404 847,169
Transfer payments from (to)
other subaccounts or general
account 1,092,159 1,831,294 1,879,751 1,750,664 1,356,749 1,086,084
Contract terminations,
withdrawals and other
deductions (342,661) (80,849) (431,951) (72,413) (268,863) (50,547)
-------------------------------- ------------------------------ -----------------------------
Increase (decrease) from contract
transactions 985,498 3,108,729 1,800,611 2,682,448 1,377,290 1,882,706
-------------------------------- ------------------------------ -----------------------------
Net increase (decrease) in
contract owners' equity 1,824,308 3,062,575 2,132,306 3,567,183 1,171,956 2,393,611
Contract owners' equity:
Beginning of the period 5,836,737 2,774,162 6,220,645 2,653,462 4,247,899 1,854,288
-------------------------------- ------------------------------ -----------------------------
End of the period $7,661,045 $5,836,737 $8,352,951 $6,220,645 $5,419,855 $4,247,899
================================ ============================== =============================
</TABLE>
11
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Statements of Changes in Contract Owners' Equity (continued)
<TABLE>
<CAPTION>
Dreyfus U. S. Government T. Rowe Price Equity T. Rowe Price Growth
Securities Subaccount Income Subaccount Stock Subaccount
----------------------------- ------------------------------ -----------------------------
1998 1997 1998 1997 1998 1997
------------- --------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 30,921 $ 14,013 $ 226,051 $ 36,130 $ 156,515 $ (19,668)
Net realized capital gain 6,651 2,089 269,090 36,934 299,881 49,473
Net change in unrealized
appreciation (depreciation)
of investments 60,628 57,997 (13,069) 818,182 864,822 588,861
------------- --------------- -------------- --------------- -------------- --------------
Increase (decrease) from operations 98,200 74,099 482,072 891,246 1,321,218 618,666
Contract transactions:
Net contract purchase payments 58,235 189,291 653,419 1,328,455 511,952 799,864
Transfer payments from (to)
other subaccounts or general
account 852,781 415,951 1,474,782 1,479,634 1,984,283 980,121
Contract terminations,
withdrawals and other
deductions (64,873) (15,899) (402,387) (69,431) (369,688) (19,352)
------------- --------------- -------------- --------------- -------------- --------------
Increase (decrease) from contract
transactions 846,143 589,343 1,725,814 2,738,658 2,126,547 1,760,633
------------- --------------- -------------- --------------- -------------- --------------
Net increase (decrease) in
contract owners' equity 944,343 663,442 2,207,886 3,629,904 3,447,765 2,379,299
Contract owners' equity:
Beginning of the period 1,329,167 665,725 5,741,398 2,111,494 3,933,954 1,554,655
------------- --------------- -------------- --------------- -------------- --------------
End of the period $2,273,510 $1,329,167 $7,949,284 $5,741,398 $7,381,719 $3,933,954
============= =============== ============== =============== ============== ==============
</TABLE>
(1) Commencement of operations, May 1, 1997.
See accompanying notes.
12
<PAGE>
<TABLE>
<CAPTION>
Endeavor Opportunity Endeavor Enhanced
Value Subaccount Index Subaccount
------------------------------------ ---------------------------------
1998 1997 1998 1997 (1)
------------------------------------ ---------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ (4,780) $ (8,601) $ (13,800) $ (2,004)
Net realized capital gain 122,312 1,784 82,535 2,767
Net change in unrealized
appreciation (depreciation)
of investments (39,530) 80,478 248,529 17,739
------------------------------------ ---------------------------------
Increase (decrease) from operations 78,002 73,661 317,264 18,502
Contract transactions:
Net contract purchase payments 225,557 636,399 491,065 299,901
Transfer payments from (to)
other subaccounts or general
account (124,265) 127,025 915,841 197,261
Contract terminations,
withdrawals and other
deductions (36,368) (10,388) (329,609) (1,540)
------------------------------------ ---------------------------------
Increase (decrease) from contract
transactions 64,924 753,036 1,077,297 495,622
------------------------------------ ---------------------------------
Net increase (decrease) in
contract owners' equity 142,926 826,697 1,394,561 514,124
Contract owners' equity:
Beginning of the period 1,006,390 179,693 514,124 -
------------------------------------ ---------------------------------
End of the period $1,149,316 $1,006,390 $1,908,685 $514,124
==================================== =================================
<CAPTION>
Growth Subaccount
--------------------------------
1998 1997
--------------------------------
<S> <C> <C>
Operations:
Net investment income (loss) $ (55,111) $ 992,750
Net realized capital gain 621,541 134,993
Net change in unrealized
appreciation (depreciation)
of investments 6,944,045 9,302
--------------------------------
Increase (decrease) from operations 7,510,475 1,137,045
Contract transactions:
Net contract purchase payments 860,004 1,947,402
Transfer payments from (to)
other subaccounts or general
account 2,519,412 2,849,715
Contract terminations,
withdrawals and other
deductions (971,007) (168,521)
--------------------------------
Increase (decrease) from contract
transactions 2,408,409 4,628,596
--------------------------------
Net increase (decrease) in
contract owners' equity 9,918,884 5,765,641
Contract owners' equity:
Beginning of the period 10,971,151 5,205,510
--------------------------------
End of the period $20,890,035 $10,971,151
================================
</TABLE>
13
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements
December 31, 1998
1. Organization and Summary of Significant Accounting Policies
Organization
The AUSA Endeavor Variable Annuity Account (the "Mutual Fund Account") is a
segregated investment account of AUSA Life Insurance Company, Inc. ("AUSA"), an
indirect, wholly-owned subsidiary of AEGON N.V., a holding company organized
under the laws of The Netherlands.
The Mutual Fund Account is registered with the Securities and Exchange
Commission as a Unit Investment Trust pursuant to provisions of the Investment
Company Act of 1940. The Mutual Fund Account consists of eleven investment
subaccounts, ten of which are invested in specified portfolios of the Endeavor
Series Trust and one of which is invested in the WRL Series Fund, Inc. Activity
in these eleven investment subaccounts is available to contract owners of The
Endeavor Variable Annuity.
The Endeavor Enhanced Index Subaccount commenced operations on May 1, 1997.
Effective May 1, 1998, the names of the TCW Money Market, TCW Managed Asset
Allocation, Value Equity, Opportunity Value, and Enhanced Index portfolios and
subaccounts were changed to Endeavor Money Market, Endeavor Asset Allocation,
Endeavor Value Equity, Endeavor Opportunity Value, and Endeavor Enhanced Index
portfolios and subaccounts, respectively. The investment advisor of the Endeavor
Series Trust is Endeavor Management Co. The investment advisor for the WRL
Series Fund, Inc. is WRL Investment Management, Inc., an affiliate of AUSA.
Investments
Net purchase payments received by the Mutual Fund Account for The Endeavor
Variable Annuity are invested in the portfolios of the Endeavor Series Trust and
the Growth Portfolio of the WRL Series Fund, Inc. (collectively, the "Series
Funds"), as selected by the contract owner. Investments are stated at the
closing net asset values per share on December 31, 1998.
Realized capital gains and losses from the sale of shares in the Series Funds
are determined on the first-in, first-out basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date. Unrealized gains or losses
from the investments in the Series Funds are credited or charged to contract
owners' equity.
Dividend Income
Dividends received from the Series Funds' investments are reinvested to purchase
additional mutual fund shares.
14
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
2. Investments
A summary of the mutual fund investment at December 31, 1998 follows:
<TABLE>
<CAPTION>
Net Asset
Number of Value Per Market
Shares Held Share Value Cost
----------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Endeavor Series Trust:
Endeavor Money Market Portfolio 1,326,567.640 $ 1.00 $ 1,326,568 $ 1,326,568
Endeavor Asset Allocation Portfolio 236,622.517 23.89 5,652,912 4,830,884
T. Rowe Price International Stock
Portfolio 473,200.825 16.19 7,661,121 6,848,316
Endeavor Value Equity Portfolio 385,294.689 21.68 8,353,188 7,394,635
Dreyfus Small Cap Value Portfolio 383,320.898 14.14 5,420,157 5,745,527
Dreyfus U. S. Government Securities
Portfolio 184,538.932 12.32 2,273,520 2,147,460
T. Rowe Price Equity Income Portfolio
396,674.562 20.04 7,949,358 6,916,994
T. Rowe Price Growth Stock Portfolio 288,353.338 25.60 7,381,845 5,754,075
Endeavor Opportunity Value Portfolio 94,053.598 12.22 1,149,335 1,108,493
Endeavor Enhanced Index Portfolio 118,700.356 16.08 1,908,702 1,642,434
WRL Series Fund, Inc.:
Growth Portfolio 348,523.429 59.939219 20,890,222 13,746,306
--------------- ----------------
$69,966,928 $57,461,692
=============== ================
</TABLE>
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
Period ended December 31
1998 1997
----------------------------- ---------------------------
Purchases Sales Purchases Sales
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Endeavor Series Trust:
Endeavor Money Market Portfolio $ 1,067,902 $ 473,509 $ 478,323 $ 514,011
Endeavor Asset Allocation Portfolio 1,845,113 588,460 1,779,492 288,862
T. Rowe Price International Stock Portfolio 1,894,226 909,942 3,456,564 384,492
Endeavor Value Equity Portfolio 2,901,255 997,731 3,042,604 279,661
Dreyfus Small Cap Value Portfolio 2,504,908 550,950 2,254,509 128,984
Dreyfus U. S. Government Securities Portfolio 1,002,274 125,201 674,591 71,243
T. Rowe Price Equity Income Portfolio 2,782,124 830,323 2,894,969 120,095
T. Rowe Price Growth Stock Portfolio 3,090,633 807,578 1,892,220 151,150
Endeavor Opportunity Value Portfolio 643,438 583,296 759,976 15,519
Endeavor Enhanced Index Portfolio 1,526,385 462,884 538,368 44,737
WRL Series Fund, Inc.:
Growth Portfolio 4,282,983 1,929,892 6,020,425 399,047
-------------- -------------- ------------- -------------
$23,541,241 $8,259,766 $23,792,041 $2,397,801
============== ============== ============= =============
</TABLE>
15
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
3. Contract Owners' Equity
A summary of deferred annuity contracts terminable by owners at December 31,
1998 follows:
<TABLE>
<CAPTION>
Return of Premium Death Benefit
------------------------------------------------------------
Total
Accumulation Accumulation Contract
Subaccount Units Owned Unit Value Value
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Endeavor Money Market 1,017,991.339 $ 1.239556 $ 1,261,857
Endeavor Asset Allocation 2,197,971.735 2.535888 5,573,810
T. Rowe Price International Stock 4,958,037.992 1.533035 7,600,846
Endeavor Value Equity 3,668,656.747 2.212928 8,118,473
Dreyfus Small Cap Value 2,915,575.262 1.785929 5,207,010
Dreyfus U. S. Government Securities 1,728,824.679 1.286733 2,224,536
T. Rowe Price Equity Income 3,702,824.740 2.065623 7,648,640
T. Rowe Price Growth Stock 2,640,487.984 2.593121 6,847,105
Endeavor Opportunity Value 886,891.881 1.200101 1,064,360
Endeavor Enhanced Index 1,007,218.727 1.577775 1,589,165
Growth 636,917.148 31.898334 20,316,596
------------------
$67,452,398
==================
<CAPTION>
Annual Step-Up Death Benefit
------------------------------------------------------------
Total
Accumulation Accumulation Contract
Subaccount Units Owned Unit Value Value
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Endeavor Money Market 52,322.018 $1.236621 $ 64,703
Endeavor Asset Allocation 31,242.813 2.529863 79,040
T. Rowe Price International Stock 39,361.912 1.529380 60,199
Endeavor Value Equity 106,211.103 2.207657 234,478
Dreyfus Small Cap Value 119,463.216 1.781675 212,845
Dreyfus U. S. Government Securities 38,151.310 1.283673 48,974
T. Rowe Price Equity Income 145,891.829 2.060734 300,644
T. Rowe Price Growth Stock 206,657.078 2.586964 534,614
Endeavor Opportunity Value 70,958.668 1.197263 84,956
Endeavor Enhanced Index 202,995.681 1.574026 319,520
Growth 18,019.791 31.822714 573,439
------------------
$2,513,412
==================
</TABLE>
16
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
3. Contract Owners' Equity (continued)
At December 31, 1998 contract owners' equity was comprised of:
<TABLE>
<CAPTION>
Endeavor Endeavor T. Rowe Price
Money Asset International
Market Allocation Stock
Total Subaccount Subaccount Subaccount
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Unit transactions, accumulated net
investment income and realized capital gains $57,460,574 $1,326,560 $4,830,822 $6,848,240
Adjustment for appreciation (depreciation) to
market value 12,505,236 - 822,028 812,805
-----------------------------------------------------------------
Total contract owners' equity $69,965,810 $1,326,560 $5,652,850 $7,661,045
=================================================================
<CAPTION>
Endeavor Dreyfus Dreyfus U. S.
Value Small Cap Government T. Rowe Price
Equity Value Securities Equity Income
Subaccount Subaccount Subaccount Subaccount
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Unit transactions, accumulated net
investment income and realized capital gains $7,394,398 $5,745,225 $2,147,450 $6,916,920
Adjustment for appreciation (depreciation) to
market value 958,553 (325,370) 126,060 1,032,364
-----------------------------------------------------------------
Total contract owners' equity $8,352,951 $5,419,855 $2,273,510 $7,949,284
=================================================================
<CAPTION>
Endeavor Endeavor
T. Rowe Price Opportunity Enhanced
Growth Stock Value Index Growth
Subaccount Subaccount Subaccount Subaccount
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Unit transactions, accumulated net
investment income and realized capital gains $5,753,949 $1,108,474 $1,642,417 $13,746,119
Adjustment for appreciation (depreciation) to
market value 1,627,770 40,842 266,268 7,143,916
-----------------------------------------------------------------
Total contract owners' equity $7,381,719 $1,149,316 $1,908,685 $20,890,035
=================================================================
</TABLE>
17
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
3. Contract Owners' Equity (continued)
A summary of changes in contract owners' account units follows:
<TABLE>
<CAPTION>
Endeavor Endeavor T. Rowe Price
Money Asset International Endeavor
Market Allocation Stock Value Equity
Subaccount Subaccount Subaccount Subaccount
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Units outstanding at January 1, 1997 665,174 1,123,469 2,084,833 1,565,599
Units purchased 287,198 241,650 976,337 539,580
Units redeemed and transferred (340,390) 506,689 1,273,384 876,728
-----------------------------------------------------------------
Units outstanding at December 31, 1997 611,982 1,871,808 4,334,554 2,981,907
Units purchased 81,621 57,867 163,951 158,049
Units redeemed and transferred 376,710 299,540 498,895 634,912
-----------------------------------------------------------------
Units outstanding at December 31, 1998 1,070,313 2,229,215 4,997,400 3,774,868
=================================================================
<CAPTION>
T. Rowe
Dreyfus Dreyfus U. S. T. Rowe Price Price
Small Cap Government Equity Growth
Value Securities Income Stock
Subaccount Subaccount Subaccount Subaccount
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Units outstanding at January 1, 1997 1,239,443 589,780 1,387,607 964,658
Units purchased 478,443 160,483 780,799 442,620
Units redeemed and transferred 576,751 343,672 814,105 517,840
-----------------------------------------------------------------
Units outstanding at December 31, 1997 2,294,637 1,093,935 2,982,511 1,925,118
Units purchased 156,808 46,241 330,034 231,910
Units redeemed and transferred 583,593 626,800 536,173 690,117
-----------------------------------------------------------------
Units outstanding at December 31, 1998 3,035,038 1,766,976 3,848,718 2,847,145
=================================================================
<CAPTION>
Endeavor Endeavor
Opportunity Enhanced
Value Index Growth
Subaccount Subaccount Subaccount
------------------------------------------------
<S> <C> <C> <C>
Units outstanding at January 1, 1997 178,913 - 306,855
Units purchased 584,681 257,278 105,365
Units redeemed and transferred 106,238 164,949 145,678
------------------------------------------------
Units outstanding at December 31, 1997 869,832 422,227 557,898
Units purchased 195,802 362,815 35,902
Units redeemed and transferred (107,783) 425,172 61,137
------------------------------------------------
Units outstanding at December 31, 1998 957,851 1,210,214 654,937
================================================
</TABLE>
18
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
4. Administrative, Mortality and Expense Risk Charge
Administrative charges include an annual charge of the lesser of 2% of the
policy value or $35 per contract which will commence on the first policy
anniversary of each contract owner's account. For policies issued on or after
May 1, 1995, this charge is waived if the sum of the premium payments made less
the sum of all partial withdrawals equals or exceeds $50,000 on the policy
anniversary. Charges for administrative fees to the variable annuity contracts
are an expense of the Mutual Fund Account. AUSA also deducts a daily charge
equal to an annual rate of .15% of the contract owner's account for
administrative expenses.
AUSA deducts a daily charge for assuming certain mortality and expense risks.
For policies sold prior to December 1, 1998, this charge is equal to an
effective annual rate of 1.25% of the value of the contract owner's individual
account. For policies sold on or after December 1, 1998, this fee depends on the
death benefit option selected and the number of policy years that have elapsed
since the date of issue. For the Annual Step-Up Death Benefit, the fee is 1.40%
in the first seven policy years and 1.25% thereafter. For the Return of Premium
Death Benefit, the fee is 1.25% in the first seven years and 1.10% thereafter.
5. Taxes
Operations of the Mutual Fund Account form a part of AUSA, which is taxed as a
life insurance company under Subchapter L of the Internal Revenue Code of 1986,
as amended (the "Code"). The operations of the Mutual Fund Account are accounted
for separately from other operations of AUSA for purposes of federal income
taxation. The Mutual Fund Account is not separately taxable as a regulated
investment company under Subchapter M of the Code and is not otherwise taxable
as an entity separate from AUSA. Under existing federal income tax laws, the
income of the Mutual Fund Account, to the extent applied to increase reserves
under the variable annuity contracts, is not taxable to AUSA.
6. Year 2000 (Unaudited)
The term Year 2000 Issue generally refers to the improper processing of dates
and incorrect date calculations that might occur in computer software and
hardware and embedded systems as the Year 2000 is approached. The use of
computer programs that rely on two-digit date fields to perform computations and
decision-making functions may cause systems to malfunction when processing
information involving dates after 1999. For example, any computer software that
has date-sensitive coding might recognize a code of 00 as the year 1900 rather
than the year 2000.
19
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
6. Year 2000 (Unaudited) (continued)
AUSA has developed a Year 2000 Project Plan (the Plan) to address the Year 2000
issue as it affects AUSA's internal IT and non-IT systems, and to assess Year
2000 issues relating to third parties with whom AUSA has critical relationships.
The Plan for addressing internal systems generally includes an assessment of
internal IT and non-IT systems and equipment affected by the Year 2000 issue;
definition of strategies to address affected systems and equipment; remediation
of identified systems and equipment; internal testing and certification that
each internal system is Year 2000 compliant; and a review of existing and
revised business resumption and contingency plans to address potential Year 2000
issues. AUSA has remediated and tested substantially all of its mission-critical
internal IT systems as of December 31, 1998. AUSA continues to remediate and
test certain non-critical internal IT systems, internal non-IT systems and will
continue with a revalidation testing program throughout 1999.
AUSA's Year 2000 issues are more complex because a number of its systems
interface with other systems not under AUSA's control. AUSA's most significant
interfaces and uses of third-party vendor systems are in the bank, financial
services and trust areas. AUSA utilizes various banks to handle numerous types
of financial and sales transactions. Several of these banks also provide trustee
and custodial services for AUSA's investment holdings and transactions. These
services are critical to a financial services company such as AUSA as its
business centers around cash receipts and disbursements to policyholders and the
investment of policyholder funds. AUSA has received written confirmation from
its vendor banks regarding their status on Year 2000. The banks indicate their
dedication to resolving any Year 2000 issues related to their systems and
services prior to December 31, 1999. AUSA anticipates that a considerable effort
will be necessary to ensure that its corrected or new systems can properly
interface with those business partners with whom it transmits and receives data
and other information (external systems). AUSA has undertaken specific testing
regimes with these third-party business partners and expects to continue working
with its business partners on any interfacing of systems. However, the timing of
external system compliance cannot currently be predicted with accuracy because
the implementation of Year 2000 readiness will vary from one company to another.
AUSA does have some exposure to date sensitive embedded technology such as
micro-controllers, but AUSA views this exposure as minimal. Unlike other
industries that may be equipment intensive, like manufacturing, AUSA is a life
insurance, and financial services organization providing insurance, annuities
and pension products to its customers. As such, the primary equipment and
electronic devices in use are computers and telephone related equipment. This
type of hardware can have date sensitive embedded technology which could have
Year 2000 problems. Because of this exposure, AUSA has reviewed its computer
hardware and telephone systems, with assistance from
20
<PAGE>
AUSA Endeavor Variable Annuity Account -
The Endeavor Variable Annuity
Notes to Financial Statements (continued)
6. Year 2000 (Unaudited) (continued)
the applicable vendors, and has upgraded, or replaced, or is in the process of
replacing any equipment that will not properly process date sensitive data in
the Year 2000 or beyond. This undertaking has been substantially completed for
all operations.
For AUSA, a reasonably likely worst case scenario might include one or more of
AUSA's significant policyholder systems being non-compliant. Such an event could
result in a material disruption of AUSA's operations. Specifically, a number of
AUSA's operations could experience an interruption in the ability to collect and
process premiums or deposits, process claim payments, accurately maintain
policyholder information, accurately maintain accounting records, and or perform
adequate customer service. Should the worst case scenario occur, it could,
dependent upon its duration, have a material impact on AUSA's business and
financial condition. Simple failures can be repaired and returned to production
within a matter of hours with no material impact. Unanticipated failures with a
longer service disruption period could have a more serious impact. For this
reason, AUSA is placing significant emphasis on risk management and Year 2000
business resumption contingency planning in 1999 by modifying its existing
business resumption and disaster recovery plans to address potential Year 2000
issues.
The actions taken by management under the Year 2000 Project Plans are intended
to significantly reduce AUSA's risk of a material business interruption based on
the Year 2000 issues. It should be noted that the Year 2000 computer problem,
and its resolution, is complex and multifaceted, and any company's success
cannot be conclusively known until the Year 2000 is reached. In spite of its
efforts or results, AUSA's ability to function unaffected to and through the
Year 2000 may be adversely affected by actions (or failure to act) of third
parties beyond our knowledge or control. It is anticipated that there may be
problems that will have to be resolved in the ordinary course of business on and
after the Year 2000. However, AUSA does not believe that the problems will have
a material adverse affect on AUSA's operations or financial condition.
21
<PAGE>
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
All required financial statements are included in Part B
of this Registration Statement.
(b) Exhibits:
(1) (a) Resolution of the Board of Directors of
AUSA Life Insurance Company, Inc. authorizing
establishment of the Mutual Fund Account.
Note 2.
(2) Not Applicable.
(3) (a) Principal Underwriting Agreement by and between
AUSA Life Insurance Company, Inc. on its own
behalf and on the behalf of the Mutual Fund
Account, and AEGON USA Securities, Inc.
Note 1.
(3) (a) (1) Principal Underwriting Agreement by and between
AUSA Life Insurance Company, Inc. on its own
behalf and on the behalf of the Mutual Fund
Account, and AFSG Securities Corporation.
Note 7.
(b) Form of Broker/Dealer Supervision and Sales
Agreement by and between AFSG Securities
Corporation and the Broker/Dealer. Note 7.
(4) (a) Form of Policy for the Endeavor Variable
Annuity. Note 2.
(b) Form of Policy Endorsement. (Dollar Cost Averaging)
Note 4.
(c) Form of Policy Endorsement. (Annuity Commencement
Date, Service Charge) Note 4.
(d) Form of Policy for the Endeavor Variable Annuity.
Note 5.
(5) (a) Form of Application for the Endeavor Variable
Annuity. Note 2.
(b) Form of Application for the Endeavor Variable
Annuity. Note 4.
(c) Form of Application for the Endeavor Variable
Annuity. Note 5.
(6) (a) Articles of Incorporation of AUSA
Life Insurance Company, Inc. Note 1.
(b) ByLaws of AUSA Life
Insurance Company, Inc. Note 1.
(7) Not Applicable.
(8) (a) Participation Agreement by and between
AUSA Life Insurance Company, Inc.
and Endeavor Series Trust and Addendum thereto
Note 2.
(b) Participation Agreement with WRL Series Fund,
Inc. and Addendum thereto. Note 2.
(c) Amendment to Participation Agreement by and between
AUSA Life Insurance Company, Inc., and Endeavor
Series Trust. Note 4.
(d) Amendment to Participation Agreement by and between
AUSA Life Insurance Company, Inc., and Endeavor
Series Trust. Note 5.
(9) (a) Opinion and Consent of Counsel. Note 2.
1
<PAGE>
(b) Consent of Counsel. Note 2.
(10) (a) Consent of Independent Auditors. Note 8.
(b) Opinion and Consent of Actuary Note 7.
(11) Not Applicable.
(12) Not Applicable.
(13) Performance Data Calculations. Note 8.
(14) Powers of Attorney. Note 2. (C.H. Verhagen, L.G. Brown,
W.L. Busler, J.R. Dykhouse, S.E. Frushtick, C.T. Hanson,
B.L. Jenkins, V.F. Mihaic, P.P. Post, T.A. Schlossberg,
E.K. Warren, R.J. Kontz) Note 3. (William Brown, Jr.,
Colette Vargas), (Brenda K. Clancy) Note 4.
Note 1. Filed with the initial filing of this Form N-4 Registration
Statement (File No. 33-83560) on September 1, 1994.
Note 2. Filed with Pre-Effective Amendment No. 1 to Form N-4
Registration Statement (File No. 33-83560) on December 21,
1994.
Note 3. Filed with Post-Effective Amendment No.3 to Form N-4
Registration Statement (File No. 33-83560) on April 24,
1996.
Note 4. Filed with Post-Effective Amendment No. 4 to Form N-4
Registration Statement (File No. 33-83560) on April 30,
1997.
Note 5. Filed with Post-Effective Amendment No. 5
to Form N-4 Registration Statement (File No. 33-83560)
on September 26, 1997.
Note 6. Filed with Post-Effective Amendment No. 6 to Form N-4
Registration Statement (File No. 33-83560) on
November 24, 1997.
Note 7. Filed with Post-Effective Amendment No. 7 to Form N-4
Registration Statement (File No. 33-83560) on
April 29, 1998.
Note 8. Filed herewith.
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Principal
Positions
Name and and Offices with
Business Address Depositor
- ---------------- ---------
<S> <C>
Tom A. Schlossberg Director and President
4 Manhattanville Road
Purchase, NY 10577
Larry G. Brown Director and Chairman of the Board
201 Highland Avenue
Largo, FL 33770
William L. Busler Director and Vice President
4333 Edgewood Road NE
Cedar Rapids, IA 52499
Patrick S. Baird Vice President and Chief Operating Officer
4333 Edgewood Road NE
Cedar Rapids, IA 52499
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Craig D. Vermie Secretary
4333 Edgewood Road NE
Cedar Rapids, IA 52499
Colette Vargas Director and Chief Actuary
4 Manhattanville Road
Purchase, NY 10577
Brenda K. Clancy Treasurer
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
<TABLE>
<CAPTION>
Jurisdication of Percent of Voting
Name Incorporation Securities Owned Business
- ---- ------------- ---------------- --------
<S> <C> <C> <C>
AEGON N.V. Netherlands 53.63% of Vereniging Holding company
Corporation AEGON Netherlands
Membership Association
Groninger Financieringen B.V. Netherlands 100% of AEGON N.V. Holding company
Corporation Netherlands Corporation
AEGON Netherland N.V. Netherlands 100% of AEGON N.V. Holding company
Corporation Netherlands Corporation
AEGON Nevak Holding B.V. Netherlands 100% of AEGON N.V. Holding company
Corporation Netherlands Corporation
AEGON International N.V. Netherlands 100% of AEGON N.V. Holding company
Corporation Netherlands Corporation
Voting Trust Delaware Voting Trust
Trustees:
K.J. Storm
Donald J. Shepard
H.B. Van Wijk
Dennis Hersch
AEGON U.S. Holding Delaware 100% of Voting Trust Holding company
Corporation
Short Hills Management New Jersey 100% of AEGON U.S. Holding company
Company Holding Corporation
CORPA Reinsurance New York 100% of AEGON U.S. Holding company
Company Holding Corporation
AEGON Management Indiana 100% of AEGON U.S. Holding company
Company Holding Corporation
RCC North America Inc. Delaware 100% of AEGON U.S. Holding company
Holding Corporation
AEGON USA, Inc. Iowa 100% AEGON U.S. Holding company
Holding Corporation
AUSA Holding Company Maryland 100% AEGON USA, Inc. Holding company
Monumental General Insurance Maryland 100% AUSA Holding Co. Holding company
Group, Inc.
Trip Mate Insurance Agency, Inc. Kansas 100% Monumental General Sale/admin. of travel
Insurance Group, Inc. insurance
Monumental General Maryland 100% Monumental General Provides management srvcs.
Administrators, Inc. Insurance Group, Inc. to unaffiliated third party
administrator
Executive Management and Maryland 100% Monumental General Provides actuarial consulting
Consultant Services, Inc. Administrators, Inc. services
Monumental General Mass Maryland 100% Monumental General Marketing arm for sale of
Marketing, Inc. Insurance Group, Inc. mass marketed insurance
coverages
Diversified Investment Delaware 100% AUSA Holding Co. Registered investment advisor
Advisors, Inc.
Diversified Investors Securities Delaware 100% Diversified Investment Broker-Dealer
Corp. Advsiors, Inc.
AEGON USA Securities, Inc. Iowa 100% AUSA Holding Co. Broker-Dealer
Supplemental Ins. Division, Inc. Tennessee 100% AUSA Holding Co. Insurance
Creditor Resources, Inc. Michigan 100% AUSA Holding Co. Credit insurance
CRC Creditor Resources Canada 100% Creditor Resources, Inc. Insurance agency
Canadian Dealer Network Inc.
AEGON USA Investment Iowa 100% AUSA Holding Co. Investment advisor
Management, Inc.
AEGON USA Realty Iowa 100% AUSA Holding Co. Provides real estate
Advisors, Inc. administrative and real
estate investment services
Quantra Corporation Delaware 100% AEGON USA Realty Real estate and financial
Advisors, Inc. software production and sales
Quantra Software Corporation Delaware 100% Quantra Corporation Manufacture and sell
mortgage loan and security
management software
Landauer Realty Advisors, Inc. Iowa 100% AEGON USA Realty Real estate counseling
Advisors, Inc.
Landauer Associates, Inc. Delaware 100% AEGON USA Realty Real estate counseling
Advisors, Inc.
Realty Information Systems, Inc. Iowa 100% AEGON USA Realty Information Systems for
Advisors, Inc. real estate investment
management
AEGON USA Realty Iowa 100% AEGON USA Real estate management
Management, Inc Realty Advisors, Inc.
USP Real Estate Investment Trust Iowa 21.89% First AUSA Life Ins. Co. Real estate investment trust
13.11% PFL Life Ins. Co.
4.86% Bankers United Life
Assurance Co.
RCC Properties Limited Iowa AEGON USA Realty Advisors, Limited Partnership
Partnership Inc. is General Partner and 5%
owner.
AUSA Financial Markets, Inc. Iowa 100% AUSA Holding Co. Marketing
Endeavor Investment Advisors California 49.9% AUSA Financial General Partnership
Markets, Inc.
Universal Benefits Corporation Iowa 100% AUSA Holding Co. Third party administrator
Investors Warranty of Iowa 100% AUSA Holding Co. Provider of automobile
America, Inc. extended maintenance
contracts
Massachusetts Fidelity Trust Co. Iowa 100% AUSA Holding Co. Trust company
Money Services, Inc. Delaware 100% AUSA Holding Co. Provides financial counseling
for employees and agents of
affiliated companies
Zahorik Company, Inc. California 100% AUSA Holding Co. Broker-Dealer
ZCI, Inc. Alabama 100% Zahorik Company, Inc. Insurance agency
AEGON Asset Management Delaware 100% AUSA Holding Co. Registered investment advisor
Services, Inc.
Intersecurities, Inc. Delaware 100% AUSA Holding Co. Broker-Dealer
ISI Insurance Agency, Inc. California 100% Intersecurities, Inc. Insurance agency
ISI Insurance Agency Ohio 100% ISI Insurance Agency, Inc. Insurance agency
of Ohio, Inc.
ISI Insurance Agency Texas 100% ISI Insurance Agency, Inc. Insurance agency
of Texas, Inc.
ISI Insurance Agency Massachusetts 100% ISI Insurance Agency Inc. Insurance Agency
of Massachusetts, Inc.
Associated Mariner Financial Michigan 100% Intersecurities, Inc. Holding co./management
Group, Inc. services
Mariner Financial Services, Inc. Michigan 100% Associated Mariner Broker/Dealer
Financial Group, Inc.
Mariner Planning Corporation Michigan 100% Mariner Financial Financial planning
Services, Inc.
Associated Mariner Agency, Inc. Michigan 100% Associated Mariner Insurance agency
Financial Group, Inc.
Associated Mariner Agency Hawaii 100% Associated Mariner Insurance agency
of Hawaii, Inc. Agency, Inc.
Associated Mariner Ins. Agency Massachusetts 100% Associated Mariner Insurance agency
of Massachusetts, Inc. Agency, Inc.
Associated Mariner Agency Ohio 100% Associated Mariner Insurance agency
Ohio, Inc. Agency, Inc.
Associated Mariner Agency Texas 100% Associated Mariner Insurance agency
Texas, Inc. Agency, Inc.
Associated Mariner Agency New Mexico 100% Associated Mariner Insurance agency
New Mexico, Inc. Agency, Inc.
Mariner Mortgage Corp. Michigan 100% Associated Mariner Mortgage origination
Financial Group, Inc.
Idex Investor Services, Inc. Florida 100% AUSA Holding Co. Shareholder services
Idex Management, Inc. Delaware 50% AUSA Holding Co. Investment advisor
50% Janus Capital Corp.
IDEX II Series Fund Massachusetts Various Mutual fund
First AUSA Life Insurance Maryland 100% AEGON USA, Inc. Insurance holding company
Company
AUSA Life Insurance New York 100% First AUSA Life Insurance
Company, Inc. Insurance Company
Life Investors Insurance Iowa 100% First AUSA Life Ins. Co. Insurance
Company of America
AEGON Assignment Illinois 100% AEGON Financial Services Administrator of Structured
Corporation Group, Inc. Settlements
Bankers United Life Iowa 100% Life Investors Ins. Insurance
Assurance Company Company of America
Life Investors Agency Iowa 100% Life Investors Ins. Marketing
Group, Inc. Company of America
PFL Life Insurance Company Iowa 100% First AUSA Life Ins. Co. Insurance
AEGON Financial Services Minnesota 100% PFL Life Insurance Co. Marketing
Group, Inc.
AEGON Assignment Corporation Kentucky 100% AEGON Financial Administrator of structured
of Kentucky Services Group, Inc. settlements
Life Investors Alliance LLC Delaware 100% LIICA Purchase, own and hold the
equity interest of other
entities
Southwest Equity Life Ins. Co. Arizona 100% of Common Voting Stock Insurance
First AUSA Life Ins. Co.
Iowa Fidelity Life Insurance Co. Arizona 100% of Common Voting Stock Insurance
First AUSA Life Ins. Co.
Western Reserve Life Assurance Ohio 100% First AUSA Life Ins. Co. Insurance
Co. of Ohio
WRL Series Fund, Inc. Maryland Various Mutual fund
WRL Investment Services, Inc. Florida 100% Western Reserve Life Provides administration for
Assurance Co. of Ohio affiliated mutual fund
WRL Investment Florida 100% Western Reserve Life Registered investment advisor
Management, Inc. Assurance Co. of Ohio
AEGON Equity Group, Inc. Florida 100% Western Reserve Life Insurance Agency
Assurance Co. of Ohio
Monumental Life Insurance Co. Maryland 100% First AUSA Life Ins. Co. Insurance
AEGON Special Markets Maryland 100% Monumental Life Ins. Co. Marketing
Group, Inc.
Monumental General Casualty Co. Maryland 100% First AUSA Life Ins. Co. Insurance
United Financial Services, Inc. Maryland 100% First AUSA Life Ins. Co. General agency
Bankers Financial Life Ins. Co. Arizona 100% First AUSA Life Ins. Co. Insurance
The Whitestone Corporation Maryland 100% First AUSA Life Ins. Co. Insurance agency
Cadet Holding Corp. Iowa 100% First AUSA Life Holding company
Insurance Company
Commonwealth General Delaware 100% AEGON USA Holding company
Corporation ("CGC")
PB Series Trust Massachusetts N/A Mutual fund
Monumental Agency Group, Inc. Kentucky 100% CGC Provider of srvcs. to ins. cos.
Benefit Plans, Inc. Delaware 100% CGC TPA for Peoples Security Life
Insurance Company
Durco Agency, Inc. Virginia 100% Benefit Plans, Inc. General agent
Commonwealth General Kentucky 100% CGC Administrator of structured
Assignment Corporation settlements
AFSG Securities Corporation Pennsylvania 100% CGC Broker-Dealer
PB Investment Advisors, Inc. Delaware 100% CGC Registered investment advisor
Diversified Financial Products
Inc. Delaware 100% CGC Provider of investment,
marketing and admin.
services to ins. cos.
AEGON USA Real Estate Delaware 100% Diversified Financial Real estate and mortgage
Services, Inc. Products Inc. holding company
Capital Real Estate Delaware 100% CGC Furniture and equiment lessor
Development Corporation
Capital General Development Delaware 100% CGC Holding company
Corporation
Ammest Realty Corporation Texas 100% Peoples Security Life Special purpose subsidiary
Insurance Company
JMH Operating Company, Inc. Mississippi 100% Peoples Security Life Real estate holdings
Insurance Company
Independence Automobile Florida 100% Capital Security Automobile Club
Association, Inc. Life Insurance Company
Independence Automobile Georgia 100% Capital Security Automobile Club
Club, Inc. Life Insurance Company
Capital 200 Block Corporation Delaware 100% CGC Real estate holdings
Capital Broadway Corporation Kentucky 100% CGC Real estate holdings
Southlife, Inc. Tennessee 100% CGC Investment subsidiary
Ampac Insurance Agency, Inc. Pennsylvania 100% CGC Provider of management
(EIN 23-1720755) support services
National Home Life Corporation Pennsylvania 100% Ampac Insurance Special-purpose subsidiary
Agency, Inc.
Compass Rose Development Pennsylvania 100% Ampac Insurance Special-purpose subsidiary
Corporation Agency, Inc.
Frazer Association Consultants, Illinois 100% Ampac Insurance TPA license-holder
Inc. Agency, Inc.
Valley Forge Associates, Inc. Pennsylvania 100% Ampac Insurance Furniture & equipment lessor
Agency, Inc.
Veterans Benefits Plans, Inc. Pennsylvania 100% Ampac Insurance Administator of group
Agency, Inc. insurance programs
Veterans Insurance Services, Inc. Delaware 100% Ampac Insurance Special-purpose subsidiary
Agency, Inc.
Financial Planning Services, Inc. Dist. Columbia 100% Ampac Insurance Special-purpose subsidiary
Agency, Inc.
Academy Insurance Group, Inc. Delaware 100% CGC Holding company
Academy Life Insurance Co. Missouri 100% Academy Insurance Insurance company
Group, Inc.
Pension Life Insurance New Jersey 100% Academy Insurance Insurance company
Company of America Group, Inc.
Academy Services, Inc. Delaware 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
Ammest Development Corp. Inc. Kansas 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
Ammest Insurance Agency, Inc. California 100% Academy Insurance General agent
Group, Inc.
Ammest Massachusetts Massachusetts 100% Academy Insurance Special-purpose subsidiary
Insurance Agency, Inc. Group, Inc.
Ammest Realty, Inc. Pennsylvania 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
Ampac, Inc. Texas 100% Academy Insurance Managing general agent
Group, Inc.
Ampac Insurance Agency, Inc. Pennsylvania 100% Academy Insurance Special-purpose subsidiary
(EIN 23-2364438) Group, Inc.
Data/Mark Services, Inc. Delaware 100% Academy Insurance Provider of mgmt. services
Group, Inc.
Force Financial Group, Inc. Delaware 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
Force Financial Services, Inc. Massachusetts 100% Force Fin. Group, Inc. Special-purpose subsidiary
Military Associates, Inc. Pennsylvania 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
NCOA Motor Club, Inc. Georgia 100% Academy Insurance Automobile club
Group, Inc.
NCOAA Management Company Texas 100% Academy Insurance Special-purpose subsidiary
Group, Inc.
Unicom Administrative Pennsylvania 100% Academy Insurance Provider of admin. services
Services, Inc. Group, Inc.
Unicom Administrative Germany 100%Unicom Administrative Provider of admin. services
Services, GmbH Services, Inc.
Capital Liberty, L.P. Delaware 79.2% Commonwealth Life Holding Company
Insurance Company
19.8% Peoples Security Life
Insurance Company
1% CGC
Commonwealth General LLC Turks & 100% CGC Special-purpose subsidiary
Caicos Islands
Peoples Benefit Life Missouri 3.7% CGC Insurance company
Insurance Company 20% Capital Liberty, L.P.
76.3% Monumental Life
Ins. Co.
Veterans Life Insurance Co. Illinois 100% Providian Life and Insurance company
Health Insurance Company
Peoples Benefit Services, Inc. Pennsylvania 100% Veterans Life Ins. Co. Special-purpose subsidiary
</TABLE>
3
<PAGE>
Item 27. Number of Policyowners
As of December 31, 1998, there were 1,318 Owners of the
Policies.
Item 28. Indemnification
The New York Code (Sections 721 et. seq.) provides for permissive
--------
indemnification in certain situations, mandatory indemnification in other
situations, and prohibits indemnification in certain situations. The Code
also specifies procedures for determining when indemnification payments can
be made.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons
of the Depositor pursuant to the foregoing provisions, or otherwise, the
Depositor has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment
by the Depositor of expenses incurred or paid by a director, officer or
controlling person in connection with the securities being registered), the
Depositor will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
Item 29. Principal Underwriter
AFSG Securities Corporation
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52499-0001
The directors and officers of
AFSG Securities Corporation
are as follows:/5/
4
<PAGE>
Larry N. Norman Sarah J. Strange
Director and President Director and Vice President
Frank A. Camp Darin Smith
Director and Secretary Assistant Vice President and
Assistant Secretary
Lisa Wachendorf Linda Gilmer
Vice President and Chief Treasurer/Controller
Compliance Officer
Debra C. Cubero Robert Warner
Vice President Assistant Compliance Officer
Priscilla Hechler Emily Bates
Assistant Vice President and Assistant Treasurer
Assistant Secretary
Thomas Pierpan Clifton Flenniken
Assistant Vice President and Assistant Treasurer
Assistant Secretary
Anne Spaes
Vice President
_____________________
/5/ The principal business address of each person listed is AFSG Securities
Corporation, 4333 Edgewood Road, N.E., Cedar Rapids, IA 52499-0001.
Commissions and Other Compensation Received by Principal Underwriter.
- --------------------------------------------------------------------
AFSG Securities Corporation, the broker/dealer, received $202,758.60 from
the Registrant from May 1, 1998 through December 31, 1998, for its services in
distributing the Policies. AEGON USA Securities, Inc., its predecessor,
received $412,538.27 from the Registrant from January 1, 1998 through April 30,
1998, for its services in distributing the Policies. No other commission or
compensation was received by the principal underwriter, directly or indirectly,
from the Registrant during the fiscal year.
AFSG Securities Corporation serves as the principal underwriter for the PFL
Endeavor VA Separate Account, the PFL Retirement Builder Variable Annuity
Account, the PFL Life Variable Annuity Account A, the PFL Wright Variable
Annuity Account and the AUSA Endeavor Variable Annuity Account. These accounts
are separate accounts of PFL Life Insurance Company or AUSA Life Insurance
Company, Inc. AFSG Securities Corporation also serves as principal underwriter
for Separate Account I, Separate Account II, Separate Account IV and Separate
Account V of Peoples Benefit Life Insurance Company, and for Separate Account B
and Separate Account C of AUSA Life Insurance Company, Inc.
Item 30. Location of Accounts and Records
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder,
are maintained by AUSA Life Insurance Company,
5
<PAGE>
Inc. at 666 Fifth Avenue, New York, New York 10103, or its Service Office,
Financial Markets Division - Variable Annuity Dept., 4333 Edgewood Road N.E.,
Cedar Rapids, Iowa 52499.
Item 31. Management Services.
All management Policies are discussed in Part A or
Part B.
Item 32. Undertakings
(a) Registrant undertakes that it will file a post-effective
amendment to this registration statement as frequently as necessary to ensure
that the audited financial statements in the registration statement are never
more than 16 months old for so long as Premiums under the Policy may be
accepted.
(b) Registrant undertakes that it will include either (i) a
postcard or similar written communication affixed to or included in the
Prospectus that the applicant can remove to send for a Statement of Additional
Information or (ii) a space in the Policy application that an applicant can
check to request a Statement of Additional Information.
(c) Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request to AUSA at the address or phone
number listed in the Prospectus.
(d) AUSA Life Insurance Company hereby represents that the fees and
charges deduted under the policies, in the aggregate, are reasonable in relation
to the services rendered, the expenses expected to be incurred, and the risks
assumed by AUSA Life Insurance Company.
Section 403(b) Representations
- ------------------------------
AUSA represents that it is relying on a no-action letter dated
November 28, 1988, to the American Council of Life Insurance (Ref. No.
IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment
Company Act of 1940, in connection with redeemability restrictions on
Section 403(b) Policies, and that paragraphs numbered (1) through (4) of
that letter will be complied with.
6
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant hereby certifies that this Amendment to the Registration
Statement meets the requirements for effectiveness pursuant to paragraph (b) of
Rule 485 and has caused this Registration Statement to be signed on its behalf,
in the City of Cedar Rapids and State of Iowa, on this 27th day of April, 1999.
AUSA ENDEAVOR VARIABLE
ANNUITY ACCOUNT
AUSA LIFE INSURANCE
COMPANY, INC.
Depositor
/s/ Tom A. Schlossberg
---------------------------------
Tom A. Schlossberg
President
As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the duties indicated.
<TABLE>
<CAPTION>
Signatures Title Date
- ---------- ------ ------
<S> <C> <C>
/s/ William Brown Jr. Director April 27, 1999
- ------------------------------
William Brown, Jr.
/s/ Larry G. Brown Director April 27, 1999
- ------------------------------
Larry G. Brown
/s/ William L. Busler Director April 27, 1999
- ------------------------------
William L. Busler
/s/ Jack R. Dykhouse Director April 27, 1999
- ------------------------------
Jack R. Dykhouse
/s/ Steven E. Frushtick Director April 27, 1999
- ------------------------------
Steven E. Frushtick
/s/ Eric Goodman Director April 27, 1999
- ------------------------------
Eric Goodman
/s/ Thor Hanson Director April 27, 1999
- ------------------------------
Thor Hanson
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
/s/ Colette Vargas Director April 27, 1999
- ------------------------------
Colette Vargas
/s/ Vera F. Mihaic Director April 27, 1999
- ------------------------------
Vera F. Mihaic
/s/ Peter P. Post Director April 27, 1999
- ------------------------------
Peter P. Post
/s/ Tom A. Schlossberg Director April 27, 1999
- ------------------------------ (Principal
Tom A. Schlossberg Executive Officer)
/s/ Cor H. Verhagen Director April 27, 1999
- ------------------------------
Cor H. Verhagen
/s/ E. Kirby Warren Director April 27, 1999
- ------------------------------
E. Kirby Warren
/s/ Brenda K. Clancy Treasurer April 27, 1999
- ------------------------------
Brenda K. Clancy
</TABLE>
<PAGE>
Registration No.
33-83560
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
EXHIBITS
TO
FORM N-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
FOR
AUSA ENDEAVOR VARIABLE ANNUITY ACCOUNT
---------------
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description of Exhibit Page No.*
- ----------- ---------------------- ---------
(10) (a) Consent of Independent Auditors
(13) Performance Data Calculations.
- ---------------------------------
*Page numbers included only in manually executed original
<PAGE>
Exhibit (10)(a)
---------------
Consent of Independent Auditors
<PAGE>
Consent of Independent Auditors
We consent to the reference to our firm under the caption "Independent Auditors"
in the Statement of Additional Information and the use of our report dated
January 29, 1999 with respect to the financial statements of the subaccounts of
AUSA Endeavor Variable Annuity Account, which are available for investment by
The Endeavor Variable Annuity contract owners, and to the use of our report
dated February 19, 1999 with respect to the statutory-basis financial statements
of AUSA Life Insurance Company, Inc., included in Post-Effective Amendment No. 8
to the Registration Statement (Form N-4 No. 33-83560) and related Prospectus of
The Endeavor Variable Annuity.
Des Moines, Iowa
April 27, 1999
<PAGE>
Exhibit (13)
------------
Performance Data Calculations
<PAGE>
ENDEAVOR (AUSA) - MANAGED ASSET ALLOCATION SUBACCOUNT
PERFORMANCE CALCULATIONS SURRENDER PROVISIONS:
Year Rate
Initial investment $1,000 1 7.00%
AUV 1 2 6.00%
------------ 3 5.00%
Units purchased 1,000 4 4.00%
5 3.00%
6 2.00%
7 1.00%
Contract Charge Factor 0.000522
<TABLE>
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
04/08/91 1.000000 1000 1,000.00 1,000.00 2,525.76 1.00%
04/30/91 1.002047 1000 1,002.05 0.00003146 0.031463014 1,002.02
05/31/91 1.005855 1000 1,005.86 0.00004433 0.044423604 1,005.78
06/30/91 1.005782 1000 1,005.78 0.00004290 0.043152052 1,005.66
07/31/91 1.009500 1000 1,009.50 0.00004433 0.044585305 1,009.34
08/31/91 1.018292 1000 1,018.29 0.00004433 0.044748143 1,018.08
09/30/91 1.026027 1000 1,026.03 0.00004290 0.043679886 1,025.77
10/31/91 1.054581 1000 1,054.58 0.00004433 0.045476801 1,054.27
11/30/91 1.030625 1000 1,030.63 0.00004290 0.045232635 1,030.28
12/31/91 1.125386 1000 1,125.39 0.00004433 0.045676623 1,124.96
01/31/92 1.147786 1000 1,147.79 0.00004433 0.049874343 1,147.30
02/28/92 1.159400 1000 1,159.40 0.00004004 0.045942441 1,158.87
03/31/92 1.125438 1000 1,125.44 0.00004576 0.053034828 1,124.87
04/30/92 1.127107 1000 1,127.11 0.00004290 0.048261437 1,126.49
05/31/92 1.133736 1000 1,133.74 0.00004433 0.049941968 1,133.06 2,525.76 1.00%
06/30/92 1.105814 1000 1,105.81 0.00004290 0.048613049 1,105.11 2,525.76 1.00%
07/31/92 1.135926 1000 1,135.93 0.00004433 0.048994163 1,135.15 2,525.76 1.00%
08/31/92 1.118799 1000 1,118.80 0.00004433 0.050326132 1,117.99 2,525.76 1.00%
09/30/92 1.135264 1000 1,135.26 0.00004290 0.047966231 1,134.39 2,525.76 1.00%
10/31/92 1.152672 1000 1,152.67 0.00004433 0.050292412 1,151.74 2,525.76 1.00%
11/30/92 1.194573 1000 1,194.57 0.00004290 0.04941422 1,193.55 2,525.76 1.00%
12/31/92 1.209859 1000 1,209.86 0.00004433 0.052915311 1,208.77 2,525.76 1.00%
01/31/93 1.247765 1000 1,247.77 0.00004433 0.05359008 1,246.59 2,525.76 2.00%
02/28/93 1.252311 1000 1,252.31 0.00004004 0.049918338 1,251.08 2,525.76 2.00%
03/31/93 1.292821 1000 1,292.82 0.00004433 0.055465872 1,291.50 2,525.76 2.00%
04/30/93 1.277694 1000 1,277.69 0.00004290 0.055410613 1,276.33 2,525.76 2.00%
05/31/93 1.300898 1000 1,300.90 0.00004433 0.056585219 1,299.45 2,525.76 2.00%
06/30/93 1.313005 1000 1,313.01 0.00004290 0.055751947 1,311.49 2,525.76 2.00%
07/31/93 1.313466 1000 1,313.47 0.00004433 0.058144033 1,311.89 2,525.76 2.00%
08/31/93 1.357882 1000 1,357.88 0.00004433 0.05816187 1,356.20 2,525.76 2.00%
09/30/93 1.370998 1000 1,371.00 0.00004290 0.058186534 1,369.24 2,525.76 2.00%
10/31/93 1.379255 1000 1,379.26 0.00004433 0.060704273 1,377.43 2,525.76 2.00%
11/30/93 1.370744 1000 1,370.74 0.00004290 0.059097272 1,368.87 2,525.76 2.00%
12/31/93 1.393488 1000 1,393.49 0.00004433 0.060687732 1,391.52 2,525.76 2.00%
01/31/94 1.447326 1000 1,447.33 0.00004433 0.061692 1,445.22 2,525.76 3.00%
02/28/94 1.411752 1000 1,411.75 0.00004004 0.057872172 1,409.64 2,525.76 3.00%
03/31/94 1.346957 1000 1,346.96 0.00004433 0.062495343 1,344.88 2,525.76 3.00%
04/30/94 1.325580 1000 1,325.58 0.00004290 0.05770087 1,323.48 2,525.76 3.00%
05/31/94 1.353171 1000 1,353.17 0.00004433 0.058675402 1,350.97 2,525.76 3.00%
06/30/94 1.291335 1000 1,291.34 0.00004290 0.05796202 1,289.17 2,525.76 3.00%
07/31/94 1.321961 1000 1,321.96 0.00004433 0.057154531 1,319.69 2,525.76 3.00%
08/31/94 1.361044 1000 1,361.04 0.00004433 0.058507505 1,358.65 2,525.76 3.00%
09/30/94 1.321696 1000 1,321.70 0.00004290 0.058291598 1,319.31 2,525.76 3.00%
10/31/94 1.339490 1000 1,339.49 0.00004433 0.058490674 1,337.01 2,525.76 3.00%
11/30/94 1.307991 1000 1,307.99 0.00004290 0.057363426 1,305.52 2,525.76 3.00%
12/31/94 1.301669 1000 1,301.67 0.00004433 0.057879094 1,299.15 2,525.76 3.00%
01/31/95 1.296224 1000 1,296.22 0.00004433 0.057596777 1,293.66 2,525.76 4.00%
02/28/95 1.333379 1000 1,333.38 0.00004004 0.051802972 1,330.69 2,525.76 4.00%
03/31/95 1.352977 1000 1,352.98 0.00004433 0.05899497 1,350.19 2,525.76 4.00%
04/30/95 1.372683 1000 1,372.68 0.00004290 0.057928512 1,369.79 2,525.76 4.00%
05/31/95 1.431401 1000 1,431.40 0.00004433 0.060728743 1,428.33 2,525.76 4.00%
06/30/95 1.487351 1000 1,487.35 0.00004290 0.061281085 1,484.10 2,525.76 4.00%
07/31/95 1.536287 1000 1,536.29 0.00004433 0.065796245 1,532.86 2,525.76 4.00%
08/31/95 1.545186 1000 1,545.19 0.00004433 0.067958119 1,541.67 2,525.76 4.00%
09/30/95 1.575578 1000 1,575.58 0.00004290 0.066143958 1,571.93 2,525.76 4.00%
10/31/95 1.555198 1000 1,555.20 0.00004433 0.069690164 1,551.52 2,525.76 4.00%
11/30/95 1.586410 1000 1,586.41 0.00004290 0.066566745 1,582.60 2,525.76 4.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
04/08/91 10.00% 2,518.29 7.737 12.68% 12.72% 2,518.29 2,525.76 8
04/30/91 TOTAL RETURN 151.83% 152.58%
05/31/91
06/30/91
07/31/91
08/31/91
09/30/91
10/31/91
11/30/91
12/31/91
01/31/92
02/28/92
03/31/92
04/30/92
05/31/92 10.00% 2,516.96 6.59 12.88% 12.94% 2,221.37 2,229.15 7
06/30/92 10.00% 2,517.23 6.51 13.49% 13.55% 2,277.82 2,285.53 7
07/31/92 10.00% 2,516.93 6.42 13.20% 13.26% 2,217.27 2,225.04 7
08/31/92 10.00% 2,517.11 6.34 13.66% 13.72% 2,251.46 2,259.21 7
09/30/92 10.00% 2,516.94 6.25 13.59% 13.65% 2,218.76 2,226.54 7
10/31/92 10.00% 2,516.77 6.17 13.51% 13.57% 2,185.20 2,193.01 7
11/30/92 10.00% 2,516.35 6.09 13.03% 13.10% 2,108.28 2,116.17 7
12/31/92 10.00% 2,516.20 6.00 12.99% 13.06% 2,081.61 2,089.53 7
01/31/93 10.00% 2,505.88 5.92 12.52% 12.67% 2,010.18 2,026.13 6
02/28/93 10.00% 2,505.79 5.84 12.63% 12.78% 2,002.89 2,018.86 6
03/31/93 10.00% 2,504.98 5.76 12.20% 12.36% 1,939.59 1,955.68 6
04/30/93 10.00% 2,505.28 5.67 12.62% 12.78% 1,962.88 1,978.92 6
05/31/93 10.00% 2,504.82 5.59 12.46% 12.63% 1,927.60 1,943.71 6
06/30/93 10.00% 2,504.58 5.51 12.47% 12.64% 1,909.72 1,925.87 6
07/31/93 10.00% 2,504.57 5.42 12.67% 12.84% 1,909.13 1,925.28 6
08/31/93 10.00% 2,503.69 5.34 12.17% 12.36% 1,846.11 1,862.38 6
09/30/93 10.00% 2,503.43 5.25 12.17% 12.36% 1,828.33 1,844.64 6
10/31/93 10.00% 2,503.26 5.17 12.25% 12.44% 1,817.35 1,833.68 6
11/30/93 10.00% 2,503.43 5.09 12.60% 12.79% 1,828.84 1,845.15 6
12/31/93 10.00% 2,502.98 5.00 12.45% 12.66% 1,798.74 1,815.11 6
01/31/94 10.00% 2,489.98 4.92 11.70% 12.02% 1,722.91 1,747.67 5
02/28/94 10.00% 2,491.05 4.84 12.48% 12.80% 1,767.15 1,791.78 5
03/31/94 10.00% 2,492.99 4.76 13.86% 14.17% 1,853.69 1,878.06 5
04/30/94 10.00% 2,493.63 4.67 14.51% 14.83% 1,884.15 1,908.43 5
05/31/94 10.00% 2,492.81 4.59 14.28% 14.61% 1,845.20 1,869.60 5
06/30/94 10.00% 2,494.66 4.51 15.77% 16.09% 1,935.09 1,959.21 5
07/31/94 10.00% 2,493.75 4.42 15.48% 15.81% 1,889.64 1,913.91 5
08/31/94 10.00% 2,492.58 4.34 15.02% 15.37% 1,834.60 1,859.03 5
09/30/94 10.00% 2,493.76 4.25 16.14% 16.49% 1,890.20 1,914.46 5
10/31/94 10.00% 2,493.23 4.17 16.12% 16.48% 1,864.77 1,889.11 5
11/30/94 10.00% 2,494.17 4.09 17.16% 17.52% 1,910.49 1,934.69 5
12/31/94 10.00% 2,494.36 4.00 17.70% 18.07% 1,920.00 1,944.17 5
TOTAL RETURN 92.00% 94.42%
01/31/95 10.00% 2,484.12 3.92 18.12% 18.62% 1,920.23 1,952.42 4
02/28/95 10.00% 2,482.64 3.84 17.63% 18.16% 1,865.68 1,898.09 4
03/31/95 10.00% 2,481.86 3.76 17.59% 18.14% 1,838.16 1,870.68 4
04/30/95 10.00% 2,481.07 3.67 17.55% 18.12% 1,811.27 1,843.90 4
05/31/95 10.00% 2,478.73 3.59 16.60% 17.21% 1,735.41 1,768.34 4
06/30/95 10.00% 2,476.50 3.51 15.72% 16.37% 1,668.69 1,701.89 4
07/31/95 10.00% 2,474.55 3.42 15.02% 15.71% 1,614.34 1,647.75 4
08/31/95 10.00% 2,474.20 3.34 15.23% 15.94% 1,604.88 1,638.33 4
09/30/95 10.00% 2,472.99 3.25 14.94% 15.69% 1,573.22 1,606.80 4
10/31/95 10.00% 2,473.80 3.17 15.86% 16.62% 1,594.43 1,627.92 4
11/30/95 10.00% 2,472.56 3.09 15.55% 16.35% 1,562.34 1,595.96 4
</TABLE>
<PAGE>
ENDEAVOR (AUSA) - MANAGED ASSET ALLOCATION SUBACCOUNT
PERFORMANCE CALCULATIONS SURRENDER PROVISIONS:
Year Rate
Initial investment $1,000 1 7.00%
AUV 1 2 6.00%
------------
Units purchased 1,000 3 5.00%
4 4.00%
5 3.00%
6 2.00%
Contract Charge Factor 0.000522 7 1.00%
<TABLE>
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/95 1.577873 1000 1,577.87 0.00004433 0.070163177 1,574.01 2,525.76 4.00%
01/31/96 1.598155 1000 1,598.16 0.00004433 0.069782495 1,594.17 2,525.76 5.00%
02/29/96 1.618630 1000 1,618.63 0.00004147 0.066116619 1,614.53 2,525.76 5.00%
03/31/96 1.641961 1000 1,641.96 0.00004433 0.071578936 1,637.73 2,525.76 5.00%
04/30/96 1.683371 1000 1,683.37 0.00004290 0.070265327 1,678.96 2,525.76 5.00%
05/31/96 1.732391 1000 1,732.39 0.00004433 0.074435539 1,727.78 2,525.76 5.00%
06/30/96 1.703104 1000 1,703.10 0.00004290 0.07412885 1,698.50 2,525.76 5.00%
07/31/96 1.639296 1000 1,639.30 0.00004433 0.075301565 1,634.79 2,525.76 5.00%
08/31/96 1.674571 1000 1,674.57 0.00004433 0.072477 1,669.89 2,525.76 5.00%
09/30/96 1.753642 1000 1,753.64 0.00004290 0.071645201 1,748.67 2,525.76 5.00%
10/31/96 1.762299 1000 1,762.30 0.00004433 0.077525955 1,757.22 2,525.76 5.00%
11/30/96 1.869468 1000 1,869.47 0.00004290 0.075392159 1,864.01 2,525.76 5.00%
12/31/96 1.833135 1000 1,833.14 0.00004433 0.082639465 1,827.70 2,525.76 5.00%
01/31/97 1.912608 1000 1,912.61 0.00004433 0.081029708 1,906.86 2,525.76 6.00%
02/28/97 1.893097 1000 1,893.10 0.00004004 0.076357847 1,887.33 2,525.76 6.00%
03/31/97 1.795829 1000 1,795.83 0.00004433 0.083673256 1,790.27 2,525.76 6.00%
04/30/97 1.894514 1000 1,894.51 0.00004290 0.076810049 1,888.58 2,525.76 6.00%
05/31/97 2.001682 1000 2,001.68 0.00004433 0.083728567 1,995.32 2,525.76 6.00%
06/30/97 2.028611 1000 2,028.61 0.00004290 0.085607588 2,022.08 2,525.76 6.00%
07/31/97 2.202245 1000 2,202.25 0.00004433 0.089647463 2,195.07 2,525.76 6.00%
08/31/97 2.091380 1000 2,091.38 0.00004433 0.097316644 2,084.47 2,525.76 6.00%
09/30/97 2.151279 1000 2,151.28 0.00004290 0.089432162 2,144.08 2,525.76 6.00%
10/31/97 2.099031 1000 2,099.03 0.00004433 0.095056067 2,091.91 2,525.76 6.00%
11/30/97 2.163966 1000 2,163.97 0.00004290 0.089751514 2,156.53 2,525.76 6.00%
12/31/97 2.171948 1000 2,171.95 0.00004433 0.095608329 2,164.39 2,525.76 6.00%
01/31/98 2.221916 1000 2,221.92 0.00004433 0.095956751 2,214.09 2,525.76 7.00%
02/28/98 2.338875 1000 2,338.88 0.00004004 0.088660722 2,330.55 2,525.76 7.00%
03/31/98 2.395133 1000 2,395.13 0.00004433 0.103323184 2,386.50 2,525.76 7.00%
04/30/98 2.428203 1000 2,428.20 0.00004290 0.102390853 2,419.35 2,525.76 7.00%
05/31/98 2.386653 1000 2,386.65 0.00004433 0.107260194 2,377.85 2,525.76 7.00%
06/30/98 2.453229 1000 2,453.23 0.00004290 0.102019417 2,444.08 2,525.76 7.00%
07/31/98 2.408696 1000 2,408.70 0.00004433 0.108356248 2,399.60 2,525.76 7.00%
08/31/98 2.134964 1000 2,134.96 0.00004433 0.106384474 2,126.80 2,525.76 7.00%
09/30/98 2.210299 1000 2,210.30 0.00004290 0.091248273 2,201.75 2,525.76 7.00%
10/31/98 2.316308 1000 2,316.31 0.00004433 0.097612978 2,307.25 2,525.76 7.00%
11/30/98 2.411351 1000 2,411.35 0.00004290 0.098990617 2,401.83 2,525.76 7.00%
12/31/98 2.535888 1000 2,535.89 0.00004433 0.106483102 2,525.76 2,525.76 7.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
12/31/95 10.00% 2,472.90 3.00 16.24% 17.06% 1,571.09 1,604.67 4
01/31/96 10.00% 2,458.68 2.92 16.01% 17.08% 1,542.29 1,584.37 3
02/29/96 10.00% 2,457.66 2.84 15.95% 17.08% 1,522.22 1,564.40 3
03/31/96 10.00% 2,456.50 2.75 15.86% 17.04% 1,499.94 1,542.23 3
04/30/96 10.00% 2,454.44 2.67 15.28% 16.52% 1,461.88 1,504.36 3
05/31/96 10.00% 2,452.00 2.59 14.49% 15.81% 1,419.16 1,461.86 3
06/30/96 10.00% 2,453.46 2.50 15.82% 17.17% 1,444.49 1,487.06 3
07/31/96 10.00% 2,456.65 2.42 18.34% 19.70% 1,502.73 1,545.01 3
08/31/96 10.00% 2,454.89 2.33 17.95% 19.39% 1,470.09 1,512.53 3
09/30/96 10.00% 2,450.96 2.25 16.17% 17.74% 1,401.61 1,444.39 3
10/31/96 10.00% 2,450.53 2.17 16.59% 18.22% 1,394.54 1,437.36 3
11/30/96 10.00% 2,445.19 2.08 13.90% 15.69% 1,311.79 1,355.01 3
12/31/96 10.00% 2,447.00 2.00 15.71% 17.56% 1,338.84 1,381.93 3
01/31/97 10.00% 2,426.50 1.92 13.41% 15.81% 1,272.51 1,324.57 2
02/28/97 10.00% 2,427.67 1.84 14.68% 17.18% 1,286.30 1,338.27 2
03/31/97 10.00% 2,433.50 1.75 19.13% 21.69% 1,359.29 1,410.82 2
04/30/97 10.00% 2,427.60 1.67 16.21% 19.00% 1,285.41 1,337.39 2
05/31/97 10.00% 2,421.20 1.59 12.97% 16.02% 1,213.43 1,265.84 2
06/30/97 10.00% 2,419.59 1.50 12.67% 15.94% 1,196.58 1,249.09 2
07/31/97 10.00% 2,409.21 1.42 6.78% 10.39% 1,097.56 1,150.65 2
08/31/97 10.00% 2,415.85 1.33 11.69% 15.48% 1,158.98 1,211.71 2
09/30/97 10.00% 2,412.27 1.25 9.87% 13.98% 1,125.09 1,178.02 2
10/31/97 10.00% 2,415.40 1.17 13.11% 17.52% 1,154.64 1,207.39 2
11/30/97 10.00% 2,411.52 1.08 10.85% 15.68% 1,118.24 1,171.21 2
12/31/97 10.00% 2,411.05 1.00 11.40% 16.70% 1,113.96 1,166.96 2
01/31/98 10.00% 2,370.77 0.92 7.08% 14.08% 1,064.57 1,128.08 1
02/28/98 10.00% 2,362.62 0.84 1.38% 8.38% 1,011.52 1,069.76 1
03/31/98 10.00% 2,358.70 0.75 -1.16% 5.84% 991.21 1,043.65 1
04/30/98 10.00% 2,356.41 0.67 -2.60% 4.40% 982.46 1,029.31 1
05/31/98 10.00% 2,359.31 0.59 -0.78% 6.22% 995.42 1,036.01 1
06/30/98 10.00% 2,354.67 0.50 -3.66% 3.34% 981.39 1,016.71 1
07/31/98 10.00% 2,357.79 0.42 -1.74% 5.26% 992.66 1,021.71 1
08/31/98 10.00% 2,376.88 0.33 11.76% 18.76% 1,037.86 1,059.15 1
09/30/98 10.00% 2,371.64 0.25 7.72% 14.72% 1,018.91 1,035.21 1
10/31/98 10.00% 2,364.25 0.17 2.47% 9.47% 1,004.09 1,015.24 1
11/30/98 10.00% 2,357.63 0.08 -1.84% 5.16% 998.42 1,004.28 1
12/31/98 10.00% 2,348.96 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
ENDEAVOR (AUSA) - T. ROWE PRICE INTERNATIONAL STOCK SUBACCOUNT
PERFORMANCE CALCULATIONS
Surrender provisions:
Initial Investment $1,000 Year Rate
AUV 1 1 7.00%
--------------- 2 6.00%
Units purchased 1000 3 5.00%
4 4.00%
5 3.00%
6 2.00%
7 1.00%
Contract Charge Factor 0.000522
<TABLE>
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
04/08/91 1.000000 1000 1,000.00 1,000.00 1,526.88 1.00%
04/30/91 1.002047 1000 1,002.05 0.00003146 0.031463014 1,002.02
05/31/91 1.005857 1000 1,005.86 0.00004433 0.044423604 1,005.78
06/30/91 1.008776 1000 1,008.78 0.00004290 0.043152138 1,008.66
07/31/91 1.011492 1000 1,011.49 0.00004433 0.044718031 1,011.33
08/31/91 1.015303 1000 1,015.30 0.00004433 0.044836446 1,015.09
09/30/91 1.018076 1000 1,018.08 0.00004290 0.043551667 1,017.82
10/31/91 1.014887 1000 1,014.89 0.00004433 0.045124372 1,014.59
11/30/91 0.993945 1000 993.95 0.00004290 0.043530024 993.61
12/31/91 1.041235 1000 1,041.24 0.00004433 0.04405092 1,040.84
01/31/92 1.046928 1000 1,046.93 0.00004433 0.046144825 1,046.48
02/28/92 1.039888 1000 1,039.89 0.00004004 0.041905232 1,039.41
03/31/92 0.995220 1000 995.22 0.00004576 0.047567731 994.71
04/30/92 1.008861 1000 1,008.86 0.00004290 0.042677156 1,008.30
05/31/92 1.027434 1000 1,027.43 0.00004433 0.04470229 1,026.82 1,526.88 1.00%
06/30/92 0.990793 1000 990.79 0.00004290 0.044054779 990.16 1,526.88 1.00%
07/31/92 0.969988 1000 969.99 0.00004433 0.043897839 969.32 1,526.88 1.00%
08/31/92 0.969826 1000 969.83 0.00004433 0.042974111 969.12 1,526.88 1.00%
09/30/92 0.944181 1000 944.18 0.00004290 0.04157906 943.45 1,526.88 1.00%
10/31/92 0.945062 1000 945.06 0.00004433 0.041827066 944.29 1,526.88 1.00%
11/30/92 0.961574 1000 961.57 0.00004290 0.04051378 960.74 1,526.88 1.00%
12/31/92 0.989782 1000 989.78 0.00004433 0.04259389 988.89 1,526.88 1.00%
01/31/93 1.006274 1000 1,006.27 0.00004433 0.043841504 1,005.32 1,526.88 2.00%
02/28/93 1.017888 1000 1,017.89 0.00004004 0.040256827 1,016.88 1,526.88 2.00%
03/31/93 1.070220 1000 1,070.22 0.00004433 0.045082683 1,069.12 1,526.88 2.00%
04/30/93 1.078733 1000 1,078.73 0.00004290 0.045869506 1,077.58 1,526.88 2.00%
05/31/93 1.104813 1000 1,104.81 0.00004433 0.047773485 1,103.58 1,526.88 2.00%
06/30/93 1.078167 1000 1,078.17 0.00004290 0.047348093 1,076.92 1,526.88 2.00%
07/31/93 1.086638 1000 1,086.64 0.00004433 0.047744252 1,085.33 1,526.88 2.00%
08/31/93 1.133770 1000 1,133.77 0.00004433 0.048117255 1,132.36 1,526.88 2.00%
09/30/93 1.154739 1000 1,154.74 0.00004290 0.048582742 1,153.25 1,526.88 2.00%
10/31/93 1.156364 1000 1,156.36 0.00004433 0.051128499 1,154.82 1,526.88 2.00%
11/30/93 1.100872 1000 1,100.87 0.00004290 0.049546628 1,099.35 1,526.88 2.00%
12/31/93 1.156482 1000 1,156.48 0.00004433 0.04873907 1,154.84 1,526.88 2.00%
01/31/94 1.194618 1000 1,194.62 0.00004433 0.051198939 1,192.87 1,526.88 3.00%
02/28/94 1.188532 1000 1,188.53 0.00004004 0.047767095 1,186.75 1,526.88 3.00%
03/31/94 1.121762 1000 1,121.76 0.00004433 0.052613457 1,120.02 1,526.88 3.00%
04/30/94 1.139726 1000 1,139.73 0.00004290 0.048053591 1,137.91 1,526.88 3.00%
05/31/94 1.123951 1000 1,123.95 0.00004433 0.050448432 1,122.11 1,526.88 3.00%
06/30/94 1.105423 1000 1,105.42 0.00004290 0.048143165 1,103.56 1,526.88 3.00%
07/31/94 1.129079 1000 1,129.08 0.00004433 0.048925722 1,127.13 1,526.88 3.00%
08/31/94 1.168756 1000 1,168.76 0.00004433 0.049970561 1,166.69 1,526.88 3.00%
09/30/94 1.148328 1000 1,148.33 0.00004290 0.050055835 1,146.25 1,526.88 3.00%
10/31/94 1.165091 1000 1,165.09 0.00004433 0.050818084 1,162.93 1,526.88 3.00%
11/30/94 1.095187 1000 1,095.19 0.00004290 0.04989451 1,093.11 1,526.88 3.00%
12/31/94 1.073958 1000 1,073.96 0.00004433 0.048462053 1,071.87 1,526.88 3.00%
01/31/95 1.022291 1000 1,022.29 0.00004433 0.047520521 1,020.26 1,526.88 4.00%
02/28/95 1.033539 1000 1,033.54 0.00004004 0.040854937 1,031.44 1,526.88 4.00%
03/31/95 1.072135 1000 1,072.14 0.00004433 0.045728119 1,069.91 1,526.88 4.00%
04/30/95 1.074784 1000 1,074.78 0.00004290 0.045903621 1,072.51 1,526.88 4.00%
05/31/95 1.104019 1000 1,104.02 0.00004433 0.047548904 1,101.64 1,526.88 4.00%
06/30/95 1.096954 1000 1,096.95 0.00004290 0.047264676 1,094.54 1,526.88 4.00%
07/31/95 1.156533 1000 1,156.53 0.00004433 0.048525524 1,153.94 1,526.88 4.00%
08/31/95 1.128147 1000 1,128.15 0.00004433 0.051158946 1,125.56 1,526.88 4.00%
09/30/95 1.142326 1000 1,142.33 0.00004290 0.04829132 1,139.66 1,526.88 4.00%
10/31/95 1.123605 1000 1,123.61 0.00004433 0.050526065 1,120.93 1,526.88 4.00%
11/30/95 1.131939 1000 1,131.94 0.00004290 0.04809269 1,129.20 1,526.88 4.00%
12/31/95 1.171039 1000 1,171.04 0.00004433 0.05006225 1,168.16 1,526.88 4.00%
01/31/96 1.201232 1000 1,201.23 0.00004433 0.051789306 1,198.22 1,526.88 5.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C> <C> <C> <C>
4/8/91 10.00% 1,518.41 7.737 5.55% 5.62% 1,518.41 1,526.88 8
04/30/91 TOTAL RETURN 51.84% 52.69%
05/31/91
06/30/91
07/31/91
08/31/91
09/30/91
10/31/91
11/30/91
12/31/91
01/31/92
02/28/92
03/31/92
04/30/92
05/31/92 10.00% 1,518.14 6.59 6.11% 6.21% 1,478.49 1,487.00 7
06/30/92 10.00% 1,518.51 6.51 6.79% 6.88% 1,533.60 1,542.06 7
07/31/92 10.00% 1,518.71 6.42 7.24% 7.33% 1,566.78 1,575.21 7
08/31/92 10.00% 1,518.72 6.34 7.35% 7.44% 1,567.11 1,575.54 7
09/30/92 10.00% 1,518.97 6.25 7.91% 8.00% 1,610.02 1,618.40 7
10/31/92 10.00% 1,518.96 6.17 8.01% 8.10% 1,608.58 1,616.97 7
11/30/92 10.00% 1,518.80 6.09 7.81% 7.91% 1,580.86 1,589.27 7
12/31/92 10.00% 1,518.52 6.00 7.41% 7.51% 1,535.58 1,544.04 7
01/31/93 10.00% 1,509.83 5.92 7.11% 7.32% 1,501.84 1,518.80 6
02/28/93 10.00% 1,509.60 5.84 7.00% 7.21% 1,484.53 1,501.53 6
03/31/93 10.00% 1,508.55 5.76 6.16% 6.39% 1,411.03 1,428.17 6
04/30/93 10.00% 1,508.38 5.67 6.11% 6.33% 1,399.79 1,416.96 6
05/31/93 10.00% 1,507.86 5.59 5.74% 5.98% 1,366.34 1,383.57 6
06/30/93 10.00% 1,508.40 5.51 6.31% 6.55% 1,400.66 1,417.83 6
07/31/93 10.00% 1,508.23 5.42 6.26% 6.50% 1,389.65 1,406.84 6
08/31/93 10.00% 1,507.29 5.34 5.51% 5.76% 1,331.11 1,348.41 6
09/30/93 10.00% 1,506.87 5.25 5.22% 5.49% 1,306.63 1,323.98 6
10/31/93 10.00% 1,506.84 5.17 5.28% 5.55% 1,304.82 1,322.18 6
11/30/93 10.00% 1,507.95 5.09 6.41% 6.67% 1,371.67 1,388.89 6
12/31/93 10.00% 1,506.84 5.00 5.46% 5.74% 1,304.80 1,322.16 6
01/31/94 10.00% 1,495.67 4.92 4.71% 5.15% 1,253.85 1,280.01 5
02/28/94 10.00% 1,495.86 4.84 4.90% 5.34% 1,260.47 1,286.61 5
03/31/94 10.00% 1,497.86 4.76 6.30% 6.73% 1,337.35 1,363.26 5
04/30/94 10.00% 1,497.32 4.67 6.05% 6.49% 1,315.85 1,341.83 5
05/31/94 10.00% 1,497.80 4.59 6.50% 6.94% 1,334.80 1,360.72 5
06/30/94 10.00% 1,498.35 4.51 7.02% 7.47% 1,357.74 1,383.59 5
07/31/94 10.00% 1,497.65 4.42 6.64% 7.11% 1,328.72 1,354.66 5
08/31/94 10.00% 1,496.46 4.34 5.91% 6.40% 1,282.65 1,308.73 5
09/30/94 10.00% 1,497.07 4.25 6.48% 6.97% 1,306.06 1,332.07 5
10/31/94 10.00% 1,496.57 4.17 6.24% 6.75% 1,286.90 1,312.96 5
11/30/94 10.00% 1,498.67 4.09 8.03% 8.52% 1,371.02 1,396.83 5
12/31/94 10.00% 1,499.30 4.00 8.75% 9.24% 1,398.78 1,424.50 5
TOTAL RETURN 39.88% 42.45%
01/31/95 10.00% 1,492.18 3.92 10.19% 10.84% 1,462.55 1,496.57 4
02/28/95 10.00% 1,491.73 3.84 10.08% 10.75% 1,446.26 1,480.34 4
03/31/95 10.00% 1,490.19 3.76 9.22% 9.93% 1,392.82 1,427.11 4
04/30/95 10.00% 1,490.09 3.67 9.36% 10.09% 1,389.35 1,423.65 4
05/31/95 10.00% 1,488.92 3.59 8.76% 9.52% 1,351.56 1,386.01 4
06/30/95 10.00% 1,489.21 3.51 9.18% 9.96% 1,360.58 1,395.00 4
07/31/95 10.00% 1,486.83 3.42 7.69% 8.53% 1,288.48 1,323.19 4
08/31/95 10.00% 1,487.96 3.34 8.72% 9.57% 1,321.97 1,356.55 4
09/30/95 10.00% 1,487.40 3.25 8.53% 9.40% 1,305.12 1,339.77 4
10/31/95 10.00% 1,488.15 3.17 9.35% 10.24% 1,327.60 1,362.15 4
11/30/95 10.00% 1,487.82 3.09 9.34% 10.27% 1,317.59 1,352.18 4
12/31/95 10.00% 1,486.26 3.00 8.35% 9.33% 1,272.31 1,307.09 4
01/31/96 10.00% 1,474.60 2.92 7.37% 8.66% 1,230.66 1,274.29 3
</TABLE>
<PAGE>
ENDEAVOR (AUSA) - T. ROWE PRICE INTERNATIONAL STOCK SUBACCOUNT
PERFORMANCE CALCULATIONS
Surrender provisions:
Initial Investment $1,000 Year Rate
AUV 1 1 7.00%
---------------
Units purchased 1000 2 6.00%
3 5.00%
4 4.00%
5 3.00%
6 2.00%
7 1.00%
<TABLE>
<CAPTION>
Contract Charge Factor 0.000522
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
02/29/96 1.207573 1000 1,207.57 0.00004147 0.049695053 1,204.50 1,526.88 5.00%
03/31/96 1.228259 1000 1,228.26 0.00004433 0.053400514 1,225.08 1,526.88 5.00%
04/30/96 1.264057 1000 1,264.06 0.00004290 0.05256088 1,260.73 1,526.88 5.00%
05/31/96 1.258826 1000 1,258.83 0.00004433 0.055893547 1,255.46 1,526.88 5.00%
06/30/96 1.272856 1000 1,272.86 0.00004290 0.05386429 1,269.40 1,526.88 5.00%
07/31/96 1.229037 1000 1,229.04 0.00004433 0.056277723 1,225.64 1,526.88 5.00%
08/31/96 1.246802 1000 1,246.80 0.00004433 0.054337827 1,243.30 1,526.88 5.00%
09/30/96 1.273090 1000 1,273.09 0.00004290 0.053342747 1,269.46 1,526.88 5.00%
10/31/96 1.265850 1000 1,265.85 0.00004433 0.05628066 1,262.19 1,526.88 5.00%
11/30/96 1.321756 1000 1,321.76 0.00004290 0.054153 1,317.88 1,526.88 5.00%
12/31/96 1.330640 1000 1,330.64 0.00004433 0.058427077 1,326.68 1,526.88 5.00%
01/31/97 1.314776 1000 1,314.78 0.00004433 0.058817196 1,310.80 1,526.88 6.00%
02/28/97 1.331460 1000 1,331.46 0.00004004 0.052489491 1,327.38 1,526.88 6.00%
03/31/97 1.325135 1000 1,325.14 0.00004433 0.058848474 1,321.02 1,526.88 6.00%
04/30/97 1.331217 1000 1,331.22 0.00004290 0.056677074 1,327.02 1,526.88 6.00%
05/31/97 1.414110 1000 1,414.11 0.00004433 0.0588326 1,409.60 1,526.88 6.00%
06/30/97 1.473324 1000 1,473.32 0.00004290 0.060477498 1,468.56 1,526.88 6.00%
07/31/97 1.508732 1000 1,508.73 0.00004433 0.065107563 1,503.79 1,526.88 6.00%
08/31/97 1.370052 1000 1,370.05 0.00004433 0.066669389 1,365.50 1,526.88 6.00%
09/30/97 1.456766 1000 1,456.77 0.00004290 0.058585452 1,451.86 1,526.88 6.00%
10/31/97 1.342093 1000 1,342.09 0.00004433 0.064367322 1,337.51 1,526.88 6.00%
11/30/97 1.338769 1000 1,338.77 0.00004290 0.057384806 1,334.14 1,526.88 6.00%
12/31/97 1.346560 1000 1,346.56 0.00004433 0.059148225 1,341.85 1,526.88 6.00%
01/31/98 1.386641 1000 1,386.64 0.00004433 0.059489817 1,381.73 1,526.88 7.00%
02/28/98 1.468318 1000 1,468.32 0.00004004 0.055329736 1,463.06 1,526.88 7.00%
03/31/98 1.520325 1000 1,520.33 0.00004433 0.064863731 1,514.82 1,526.88 7.00%
04/30/98 1.532728 1000 1,532.73 0.00004290 0.064991895 1,527.11 1,526.88 7.00%
05/31/98 1.520868 1000 1,520.87 0.00004433 0.067703296 1,515.23 1,526.88 7.00%
06/30/98 1.519013 1000 1,519.01 0.00004290 0.065009436 1,513.31 1,526.88 7.00%
07/31/98 1.533415 1000 1,533.42 0.00004433 0.067091601 1,527.59 1,526.88 7.00%
08/31/98 1.336578 1000 1,336.58 0.00004433 0.067724732 1,331.44 1,526.88 7.00%
09/30/98 1.298947 1000 1,298.95 0.00004290 0.0571241 1,293.89 1,526.88 7.00%
10/31/98 1.414210 1000 1,414.21 0.00004433 0.057363779 1,408.65 1,526.88 7.00%
11/30/98 1.483650 1000 1,483.65 0.00004290 0.060436889 1,477.76 1,526.88 7.00%
12/31/98 1.533035 1000 1,533.04 0.00004433 0.06551524 1,526.88 1,526.88 7.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C> <C> <C> <C>
02/29/96 10.00% 1,474.29 2.84 7.38% 8.71% 1,223.99 1,267.65 3
03/31/96 10.00% 1,473.26 2.75 6.93% 8.33% 1,202.59 1,246.35 3
04/30/96 10.00% 1,471.48 2.67 5.96% 7.43% 1,167.16 1,211.11 3
05/31/96 10.00% 1,471.74 2.59 6.34% 7.86% 1,172.27 1,216.19 3
06/30/96 10.00% 1,471.04 2.50 6.06% 7.65% 1,158.85 1,202.84 3
07/31/96 10.00% 1,473.23 2.42 7.90% 9.51% 1,202.01 1,245.78 3
08/31/96 10.00% 1,472.35 2.33 7.51% 9.20% 1,184.23 1,228.08 3
09/30/96 10.00% 1,471.04 2.25 6.76% 8.54% 1,158.79 1,202.78 3
10/31/96 10.00% 1,471.41 2.17 7.33% 9.18% 1,165.76 1,209.71 3
11/30/96 10.00% 1,468.62 2.08 5.33% 7.32% 1,114.38 1,158.59 3
12/31/96 10.00% 1,468.18 2.00 5.20% 7.28% 1,106.66 1,150.91 3
01/31/97 10.00% 1,457.39 1.92 5.69% 8.29% 1,111.83 1,164.85 2
02/28/97 10.00% 1,456.40 1.84 5.18% 7.91% 1,097.20 1,150.29 2
03/31/97 10.00% 1,456.78 1.75 5.74% 8.61% 1,102.77 1,155.84 2
04/30/97 10.00% 1,456.42 1.67 5.73% 8.76% 1,097.51 1,150.60 2
05/31/97 10.00% 1,451.47 1.59 1.86% 5.17% 1,029.70 1,083.20 2
06/30/97 10.00% 1,447.93 1.50 -0.94% 2.62% 985.95 1,039.71 2
07/31/97 10.00% 1,445.81 1.42 -2.73% 1.08% 961.45 1,015.35 2
08/31/97 10.00% 1,454.11 1.33 4.83% 8.73% 1,064.90 1,118.19 2
09/30/97 10.00% 1,448.93 1.25 -0.16% 4.11% 997.98 1,051.67 2
10/31/97 10.00% 1,455.79 1.17 7.53% 12.01% 1,088.43 1,141.58 2
11/30/97 10.00% 1,455.99 1.08 8.39% 13.24% 1,091.33 1,144.47 2
12/31/97 10.00% 1,455.53 1.00 8.47% 13.79% 1,084.72 1,137.89 2
01/31/98 10.00% 1,430.16 0.92 3.51% 10.51% 1,032.03 1,095.71 1
02/28/98 10.00% 1,424.47 0.84 -2.64% 4.36% 977.84 1,036.44 1
03/31/98 10.00% 1,420.84 0.75 -6.20% 0.80% 952.89 1,005.99 1
04/30/98 10.00% 1,419.98 0.67 -7.02% -0.02% 952.35 999.90 1
05/31/98 10.00% 1,420.81 0.59 -6.23% 0.77% 962.98 1,004.50 1
06/30/98 10.00% 1,420.95 0.50 -6.10% 0.90% 968.75 1,004.51 1
07/31/98 10.00% 1,419.95 0.42 -7.05% -0.05% 969.83 999.80 1
08/31/98 10.00% 1,433.68 0.33 7.68% 14.68% 1,025.04 1,046.85 1
09/30/98 10.00% 1,436.31 0.25 11.01% 18.01% 1,026.67 1,042.62 1
10/31/98 10.00% 1,428.27 0.17 1.39% 8.39% 1,002.31 1,013.56 1
11/30/98 10.00% 1,423.44 0.08 -3.68% 3.32% 996.82 1,002.78 1
12/31/98 10.00% 1,420.00 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
31-Mar-99
ENDEAVOR (AUSA) - WRL SUBACCOUNT 11:17 AM
PERFORMANCE CALCULATIONS 163A
INITIAL INVESTMENT $1,000.00
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- -----------------------------------------------------------------------------------------------------------------------------------
FUND DISTRIBUTIONS:
REINVEST REINVEST
DIV PR/SH NAV SHARES SHARE BASE
($1000 @ $10.00 ON 10/02/86) 100.000000
12/86 0.00000000 0.000 0.000 100.000000
12/87 0.10828100 11.141 0.972 100.971924 SURRENDER PROVISIONS:
12/88 0.24573400 12.970 1.913 102.884985 Year Rate
12/89 1.21966700 17.851 7.030 109.914666 1 7.00%
12/90 0.33265900 17.479 2.092 112.006544 2 6.00%
12/91 1.66402600 26.086 7.145 119.151405 3 5.00%
12/92 0.00138300 24.616 0.007 119.158099 4 4.00%
12/92 1.04649900 25.930 4.809 123.967156 5 3.00%
6 2.00%
7 1.00%
8 0.00%
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
W/ Surr W/O Surr W/ Surr W/O Surr
- ---------------------------------------------------
<S> <C> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/2/86 10.000000 100.000 1,000.00 1,000.00 8,526.68 0.00% 10.00% 8,526.68 12.26
10/31/86 10.242480 100.000 1,024.25 1.15 1,023.09
11/30/86 10.178265 100.000 1,017.83 1.22 1,015.46
12/31/86 10.143918 100.000 1,014.39 1.25 1,010.78
1/31/87 11.099823 100.000 1,109.98 1.25 1,104.78
2/28/87 11.941933 100.000 1,194.19 1.23 1,187.37
3/31/87 12.253046 100.000 1,225.30 1.46 1,216.84
4/30/87 12.326861 100.000 1,232.69 1.45 1,222.72 TOTAL RETURN
5/31/87 12.584261 100.000 1,258.43 1.51 1,246.74 8,526.68 0.00% 10.00% 8,526.68 11.60
6/30/87 13.053930 100.000 1,305.39 1.49 1,291.78 8,526.68 0.00% 10.00% 8,526.68 11.51
7/31/87 13.768105 100.000 1,376.81 1.59 1,360.86 8,526.68 0.00% 10.00% 8,526.68 11.43
8/31/87 14.383761 100.000 1,438.38 1.68 1,420.04 8,526.68 0.00% 10.00% 8,526.68 11.34
9/30/87 14.382060 100.000 1,438.21 1.69 1,418.17 8,526.68 0.00% 10.00% 8,526.68 11.26
10/31/87 11.350889 100.000 1,135.09 1.75 1,117.53 8,526.68 0.00% 10.00% 8,526.68 11.18
11/30/87 10.884572 100.000 1,088.46 1.33 1,070.28 8,526.68 0.00% 10.00% 8,526.68 11.09
12/31/87 11.140893 100.972 1,124.92 1.32 1,104.82 8,526.68 0.00% 10.00% 8,526.68 11.01
1/31/88 11.262292 100.972 1,137.18 1.36 1,115.49 8,526.68 0.00% 10.00% 8,526.68 10.92
2/28/88 11.558128 100.972 1,167.05 1.24 1,143.55 8,526.68 0.00% 10.00% 8,526.68 10.85
3/31/88 11.539389 100.972 1,165.15 1.46 1,140.24 8,526.68 0.00% 10.00% 8,526.68 10.76
4/30/88 11.749717 100.972 1,186.39 1.36 1,159.66 8,526.68 0.00% 10.00% 8,526.68 10.68
5/31/88 11.798150 100.972 1,191.28 1.43 1,163.01 8,526.68 0.00% 10.00% 8,526.68 10.59
6/30/88 12.349026 100.972 1,246.90 1.39 1,215.93 8,526.68 0.00% 10.00% 8,526.68 10.51
7/31/88 12.293135 100.972 1,241.26 1.50 1,208.93 8,526.68 0.00% 10.00% 8,526.68 10.42
8/31/88 12.118060 100.972 1,223.58 1.49 1,190.22 8,526.68 0.00% 10.00% 8,526.68 10.34
9/30/88 12.924912 100.972 1,305.05 1.42 1,268.04 8,526.68 0.00% 10.00% 8,526.68 10.26
10/31/88 12.979238 100.972 1,310.54 1.56 1,271.81 8,526.68 0.00% 10.00% 8,526.68 10.17
11/30/88 12.742550 100.972 1,286.64 1.52 1,247.10 8,526.68 0.00% 10.00% 8,526.68 10.09
12/31/88 12.969913 102.885 1,334.41 1.54 1,291.86 8,526.68 0.00% 10.00% 8,526.68 10.01
1/31/89 13.797157 102.885 1,419.52 1.59 1,372.67 8,526.68 0.00% 10.00% 8,526.68 9.92
2/28/89 13.699227 102.885 1,409.44 1.53 1,361.39 8,526.68 0.00% 10.00% 8,526.68 9.84
3/31/89 14.507994 102.885 1,492.65 1.68 1,440.09 8,526.68 0.00% 10.00% 8,526.68 9.76
4/30/89 15.485756 102.885 1,593.25 1.72 1,535.42 8,526.68 0.00% 10.00% 8,526.68 9.68
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Yr W/ Surr W/O Surr W/ Surr W/O Surr
- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
10/2/86 19.11% 19.11% 8,526.68 8,526.68 13
10/31/86
11/30/86
12/31/86
1/31/87
2/28/87
3/31/87
4/30/87 560.03%
5/31/87 18.04% 18.04% 6,839.18 6,839.18 12
6/30/87 17.81% 17.81% 6,600.71 6,600.71 12
7/31/87 17.42% 17.42% 6,265.65 6,265.65 12
8/31/87 17.12% 17.12% 6,004.55 6,004.55 12
9/30/87 17.27% 17.27% 6,012.44 6,012.44 12
10/31/87 19.94% 19.94% 7,629.94 7,629.94 12
11/30/87 20.57% 20.57% 7,966.74 7,966.74 12
12/31/87 20.40% 20.40% 7,717.74 7,717.73 12
1/31/88 20.47% 20.47% 7,643.87 7,643.87 11
2/28/88 20.35% 20.35% 7,456.32 7,456.31 11
3/31/88 20.56% 20.56% 7,477.96 7,477.96 11
4/30/88 20.55% 20.55% 7,352.72 7,352.72 11
5/31/88 20.69% 20.69% 7,331.54 7,331.54 11
6/30/88 20.36% 20.36% 7,012.49 7,012.49 11
7/31/88 20.61% 20.61% 7,053.11 7,053.11 11
8/31/88 20.98% 20.98% 7,163.97 7,163.97 11
9/30/88 20.42% 20.42% 6,724.28 6,724.28 11
10/31/88 20.57% 20.57% 6,704.36 6,704.36 11
11/30/88 20.99% 20.99% 6,837.21 6,837.21 11
12/31/88 20.76% 20.76% 6,600.30 6,600.30 11
1/31/89 20.21% 20.21% 6,211.76 6,211.76 10
2/28/89 20.49% 20.49% 6,263.19 6,263.19 10
3/31/89 19.99% 19.99% 5,920.94 5,920.94 10
4/30/89 19.38% 19.38% 5,553.30 5,553.30 10
</TABLE>
<PAGE>
31-Mar-99
ENDEAVOR (AUSA) - WRL SUBACCOUNT 11:17 AM
PERFORMANCE CALCULATIONS 163A
INITIAL INVESTMENT $1,000.00
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FUND DISTRIBUTIONS:
REINVEST REINVEST
DIV PR/SH NAV SHARES SHARE BASE
($1000 @ $10.00 ON 10/02/86) 100.000000
12/86 0.00000000 0.000 0.000 100.000000
12/87 0.10828100 11.141 0.972 100.971924 SURRENDER PROVISIONS:
12/88 0.24573400 12.970 1.913 102.884985 Year Rate
12/89 1.21966700 17.851 7.030 109.914666 1 7.00%
12/90 0.33265900 17.479 2.092 112.006544 2 6.00%
12/91 1.66402600 26.086 7.145 119.151405 3 5.00%
12/92 0.00138300 24.616 0.007 119.158099 4 4.00%
12/92 1.04649900 25.930 4.809 123.967156 5 3.00%
6 2.00%
7 1.00%
8 0.00%
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
W/ Surr W/O Surr W/ Surr W/O Surr
- ----------------------------------------------
<S> <C> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/31/89 16.831921 102.885 1,731.75 1.89 1,667.00 8,526.68 0.00% 10.00% 8,526.68 9.59
6/30/89 16.418542 102.885 1,689.22 1.99 1,624.07 8,526.68 0.00% 10.00% 8,526.68 9.51
7/31/89 18.076256 102.885 1,859.78 2.00 1,786.05 8,526.68 0.00% 10.00% 8,526.68 9.42
8/31/89 19.196966 102.885 1,975.08 2.20 1,894.58 8,526.68 0.00% 10.00% 8,526.68 9.34
9/30/89 19.972520 102.885 2,054.87 2.26 1,968.86 8,526.68 0.00% 10.00% 8,526.68 9.26
10/31/89 19.066423 102.885 1,961.65 2.43 1,877.11 8,526.68 0.00% 10.00% 8,526.68 9.17
11/30/89 19.230784 102.885 1,978.56 2.24 1,891.05 8,526.68 0.00% 10.00% 8,526.68 9.09
12/31/89 17.850799 109.915 1,962.06 2.33 1,872.95 8,526.68 0.00% 10.00% 8,526.68 9.01
1/31/90 16.301313 109.915 1,791.75 2.31 1,708.06 8,526.68 0.00% 10.00% 8,526.68 8.92
2/28/90 16.717816 109.915 1,837.53 1.90 1,749.80 8,526.68 0.00% 10.00% 8,526.68 8.84
3/31/90 17.394768 109.915 1,911.94 2.16 1,818.50 8,526.68 0.00% 10.00% 8,526.68 8.76
4/30/90 17.552402 109.915 1,929.27 2.17 1,832.81 8,526.68 0.00% 10.00% 8,526.68 8.68
5/31/90 19.412925 109.915 2,133.77 2.26 2,024.82 8,526.68 0.00% 10.00% 8,526.68 8.59
6/30/90 19.881337 109.915 2,185.25 2.42 2,071.26 8,526.68 0.00% 10.00% 8,526.68 8.51
7/31/90 19.238628 109.915 2,114.61 2.55 2,001.75 8,526.68 0.00% 10.00% 8,526.68 8.42
8/31/90 17.312376 109.915 1,902.88 2.47 1,798.86 8,526.68 0.00% 10.00% 8,526.68 8.34
9/30/90 16.581488 109.915 1,822.55 2.15 1,720.77 8,526.68 0.00% 10.00% 8,526.68 8.26
10/31/90 16.144908 109.915 1,774.56 2.12 1,673.34 8,526.68 0.00% 10.00% 8,526.68 8.17
11/30/90 16.986867 109.915 1,867.11 2.00 1,758.60 8,526.68 0.00% 10.00% 8,526.68 8.09
12/31/90 17.479079 112.007 1,957.77 2.17 1,841.83 8,526.68 0.00% 10.00% 8,526.68 8.01
1/31/91 18.562905 112.007 2,079.17 2.27 1,953.77 8,526.68 0.00% 10.00% 8,526.68 7.92
2/28/91 20.096951 112.007 2,250.99 2.18 2,113.05 8,526.68 0.00% 10.00% 8,526.68 7.84
3/31/91 21.114275 112.007 2,364.94 2.61 2,217.41 8,526.68 0.00% 10.00% 8,526.68 7.76
4/30/91 21.195645 112.007 2,374.05 2.65 2,223.31 8,526.68 0.00% 10.00% 8,526.68 7.68
5/31/91 22.353555 112.007 2,503.74 2.74 2,342.02 8,526.68 0.00% 10.00% 8,526.68 7.59
6/30/91 21.233106 112.007 2,378.25 2.80 2,221.84 8,526.68 0.00% 10.00% 8,526.68 7.51
7/31/91 22.860955 112.007 2,560.58 2.74 2,389.44 8,526.68 0.00% 10.00% 8,526.68 7.42
8/31/91 24.093541 112.007 2,698.63 2.95 2,515.32 8,526.68 0.00% 10.00% 8,526.68 7.34
9/30/91 24.117922 112.007 2,701.37 3.00 2,514.86 8,526.68 0.00% 10.00% 8,526.68 7.26
10/31/91 25.230014 112.007 2,825.93 3.10 2,627.72 8,526.68 0.00% 10.00% 8,526.68 7.17
11/30/91 24.199800 112.007 2,710.54 3.14 2,517.29 8,526.68 0.00% 10.00% 8,526.68 7.09
12/31/91 26.255817 119.151 3,128.42 3.10 2,902.27 8,526.68 0.00% 10.00% 8,526.68 7.01
1/31/92 25.593236 119.151 3,049.47 3.58 2,825.45 8,526.68 1.00% 10.00% 8,506.95 6.92
2/29/92 25.397891 119.151 3,026.19 3.26 2,800.63 8,526.68 1.00% 10.00% 8,507.20 6.84
3/31/92 24.544017 119.151 2,924.45 3.45 2,703.02 8,526.68 1.00% 10.00% 8,508.18 6.76
4/30/92 24.400719 119.151 2,907.38 3.23 2,684.01 8,526.68 1.00% 10.00% 8,508.37 6.67
5/31/92 25.110607 119.151 2,991.96 3.31 2,758.78 8,526.68 1.00% 10.00% 8,507.62 6.59
6/30/92 24.436151 119.151 2,911.60 3.29 2,681.39 8,526.68 1.00% 10.00% 8,508.39 6.51
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Yr W/ Surr W/O Surr W/ Surr W/O Surr
- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/31/89 18.55% 18.55% 5,114.97 5,114.97 10
6/30/89 19.05% 19.05% 5,250.18 5,250.18 10
7/31/89 18.04% 18.04% 4,774.05 4,774.05 10
8/31/89 17.47% 17.47% 4,500.57 4,500.57 10
9/30/89 17.16% 17.16% 4,330.78 4,330.78 10
10/31/89 17.94% 17.94% 4,542.46 4,542.46 10
11/30/89 18.02% 18.02% 4,508.97 4,508.97 10
12/31/89 18.33% 18.33% 4,552.54 4,552.54 10
1/31/90 19.75% 19.75% 4,992.01 4,992.01 9
2/28/90 19.61% 19.61% 4,872.94 4,872.94 9
3/31/90 19.29% 19.29% 4,688.85 4,688.85 9
4/30/90 19.38% 19.38% 4,652.25 4,652.25 9
5/31/90 18.22% 18.22% 4,211.08 4,211.08 9
6/30/90 18.09% 18.09% 4,116.66 4,116.66 9
7/31/90 18.77% 18.77% 4,259.61 4,259.61 9
8/31/90 20.51% 20.51% 4,740.05 4,740.05 9
9/30/90 21.39% 21.39% 4,955.16 4,955.16 9
10/31/90 22.05% 22.05% 5,095.61 5,095.61 9
11/30/90 21.55% 21.55% 4,848.55 4,848.55 9
12/31/90 21.10% 21.10% 4,629.45 4,629.45 9
1/31/91 20.45% 20.45% 4,364.22 4,364.22 8
2/28/91 19.47% 19.47% 4,035.25 4,035.25 8
3/31/91 18.96% 18.96% 3,845.33 3,845.33 8
4/30/91 19.14% 19.14% 3,835.13 3,835.13 8
5/31/91 18.56% 18.56% 3,640.73 3,640.73 8
6/30/91 19.61% 19.61% 3,837.67 3,837.67 8
7/31/91 18.69% 18.69% 3,568.49 3,568.49 8
8/31/91 18.10% 18.10% 3,389.90 3,389.90 8
9/30/91 18.32% 18.32% 3,390.52 3,390.52 8
10/31/91 17.83% 17.83% 3,244.89 3,244.89 8
11/30/91 18.78% 18.78% 3,387.25 3,387.25 8
12/31/91 16.63% 16.63% 2,937.93 2,937.93 8
1/31/92 17.27% 17.30% 3,010.83 3,017.81 7
2/29/92 17.63% 17.67% 3,037.61 3,044.56 7
3/31/92 18.50% 18.54% 3,147.66 3,154.51 7
4/30/92 18.87% 18.91% 3,170.02 3,176.85 7
5/31/92 18.64% 18.68% 3,083.83 3,090.74 7
6/30/92 19.42% 19.46% 3,173.13 3,179.95 7
</TABLE>
<PAGE>
31-Mar-99
ENDEAVOR (AUSA) - WRL SUBACCOUNT 11:17 AM
PERFORMANCE CALCULATIONS 163A
INITIAL INVESTMENT $1,000.00
<TABLE>
<CAPTION>
Gross Admin/ Redeemable Surrender W/D ERV
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FUND DISTRIBUTIONS:
REINVEST REINVEST
DIV PR/SH NAV SHARES SHARE BASE
($1000 @ $10.00 ON 10/02/86) 100.000000
12/86 0.00000000 0.000 0.000 100.000000
12/87 0.10828100 11.141 0.972 100.971924 SURRENDER PROVISIONS:
12/88 0.24573400 12.970 1.913 102.884985 Year Rate
12/89 1.21966700 17.851 7.030 109.914666 1 7.00%
12/90 0.33265900 17.479 2.092 112.006544 2 6.00%
12/91 1.66402600 26.086 7.145 119.151405 3 5.00%
12/92 0.00138300 24.616 0.007 119.158099 4 4.00%
12/92 1.04649900 25.930 4.809 123.967156 5 3.00%
6 2.00%
7 1.00%
8 0.00%
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
W/ Surr W/O Surr W/ Surr W/O Surr
- -----------------------------------------------
<S> <C> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
$10.00
268.139 Shares
<CAPTION>
Contract
AUV Acct Value Charge Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/1/92 10.000000 2,681.39 8,526.68 1.00% 10.00% 8,508.39 6.50
7/31/92 10.090579 2,705.68 0.12 2,705.56 8,526.68 1.00% 10.00% 8,508.15 6.42
8/31/92 9.819286 2,632.93 0.12 2,632.70 8,526.68 1.00% 10.00% 8,508.88 6.34
9/30/92 9.889039 2,651.64 0.11 2,651.29 8,526.68 1.00% 10.00% 8,508.69 6.25
10/31/92 10.039500 2,691.98 0.12 2,691.51 8,526.68 1.00% 10.00% 8,508.29 6.17
11/30/92 10.621351 2,848.00 0.12 2,847.39 8,526.68 1.00% 10.00% 8,506.73 6.09
12/31/92 10.839753 2,906.56 0.13 2,905.81 8,526.68 1.00% 10.00% 8,506.15 6.00
1/31/93 10.999669 2,949.44 0.13 2,948.55 8,526.68 2.00% 10.00% 8,484.76 5.92
2/28/93 10.535633 2,825.01 0.12 2,824.04 8,526.68 2.00% 10.00% 8,487.25 5.84
3/31/93 10.794261 2,894.36 0.13 2,893.24 8,526.68 2.00% 10.00% 8,485.87 5.76
4/30/93 10.334927 2,771.20 0.12 2,770.00 8,526.68 2.00% 10.00% 8,488.33 5.67
5/31/93 10.681999 2,864.26 0.12 2,862.90 8,526.68 2.00% 10.00% 8,486.48 5.59
6/30/93 10.866888 2,913.84 0.12 2,912.33 8,526.68 2.00% 10.00% 8,485.49 5.51
7/31/93 10.825063 2,902.62 0.13 2,900.99 8,526.68 2.00% 10.00% 8,485.71 5.42
8/31/93 11.044325 2,961.41 0.13 2,959.62 8,526.68 2.00% 10.00% 8,484.54 5.34
9/30/93 11.255563 3,018.06 0.13 3,016.10 8,526.68 2.00% 10.00% 8,483.41 5.25
10/31/93 11.229805 3,011.15 0.13 3,009.07 8,526.68 2.00% 10.00% 8,483.55 5.17
11/30/93 10.876928 2,916.53 0.13 2,914.38 8,526.68 2.00% 10.00% 8,485.45 5.09
12/31/93 11.114865 2,980.33 0.13 2,978.01 8,526.68 2.00% 10.00% 8,484.17 5.00
1/31/94 11.627506 3,117.79 0.13 3,115.23 8,526.68 3.00% 10.00% 8,458.80 4.92
2/28/94 11.325864 3,036.91 0.12 3,034.29 8,526.68 3.00% 10.00% 8,461.23 4.84
3/31/94 10.540923 2,826.43 0.13 2,823.86
4/30/94 10.402986 2,789.45 0.12 2,786.79 8,526.68 3.00% 10.00% 8,468.66 4.67
5/31/94 10.278529 2,756.08 0.12 2,753.32 8,526.68 3.00% 10.00% 8,469.66 4.59
6/30/94 9.878571 2,648.83 0.12 2,646.07 8,526.68 3.00% 10.00% 8,472.88 4.51
7/31/94 10.147571 2,720.96 0.12 2,718.01 8,526.68 3.00% 10.00% 8,470.72 4.42
8/31/94 10.506138 2,817.11 0.12 2,813.93 8,526.68 3.00% 10.00% 8,467.84 4.34
9/30/94 10.189892 2,732.31 0.12 2,729.10 8,526.68 3.00% 10.00% 8,470.39 4.25
10/31/94 10.558856 2,831.24 0.12 2,827.80 8,526.68 3.00% 10.00% 8,467.43 4.17
11/30/94 10.100823 2,708.43 0.12 2,705.01 8,526.68 3.00% 10.00% 8,471.11 4.09
12/31/94 10.051117 2,695.10 0.12 2,691.58 8,526.68 3.00% 10.00% 8,471.51 4.00
TOTAL RETURN
1/31/95 10.097501 2,707.53 0.12 2,703.88 8,526.68 4.00% 10.00% 8,452.63 3.92
2/28/95 10.395779 2,787.51 0.11 2,783.65 8,526.68 4.00% 10.00% 8,449.44 3.84
3/31/95 10.667939 2,860.49 0.12 2,856.40 8,526.68 4.00% 10.00% 8,446.53 3.76
4/30/95 11.069355 2,968.13 0.12 2,963.76 8,526.68 4.00% 10.00% 8,442.24 3.67
5/31/95 11.526595 3,090.73 0.13 3,086.05 8,526.68 4.00% 10.00% 8,437.34 3.59
6/30/95 12.336729 3,307.96 0.13 3,302.82 8,526.68 4.00% 10.00% 8,428.67 3.51
7/31/95 13.303877 3,567.29 0.15 3,561.60 8,526.68 4.00% 10.00% 8,418.32 3.42
8/31/95 13.207702 3,541.50 0.16 3,535.69 8,526.68 4.00% 10.00% 8,419.36 3.34
9/30/95 13.934020 3,736.25 0.15 3,729.97 8,526.68 4.00% 10.00% 8,411.59 3.25
10/31/95 14.125630 3,787.63 0.17 3,781.10 8,526.68 4.00% 10.00% 8,409.54 3.17
11/30/95 14.629643 3,922.78 0.16 3,915.85 8,526.68 4.00% 10.00% 8,404.15 3.09
12/31/95 14.583843 3,910.50 0.17 3,903.42 8,526.68 4.00% 10.00% 8,404.65 3.00
1/31/96 14.897474 3,994.59 0.17 3,987.19 8,526.68 5.00% 10.00% 8,369.95 2.92
2/29/96 15.406433 4,131.07 0.17 4,123.24 8,526.68 5.00% 10.00% 8,363.15 2.84
3/31/96 15.249099 4,088.88 0.18 4,080.95 8,526.68 5.00% 10.00% 8,365.27 2.75
4/30/96 16.102638 4,317.75 0.18 4,309.20 8,526.68 5.00% 10.00% 8,353.85 2.67
5/31/96 16.885226 4,527.59 0.19 4,518.44 8,526.68 5.00% 10.00% 8,343.39 2.59
6/30/96 16.692266 4,475.85 0.19 4,466.61 8,526.68 5.00% 10.00% 8,345.98 2.50
7/31/96 15.279144 4,096.94 0.20 4,088.28 8,526.68 5.00% 10.00% 8,364.90 2.42
8/31/96 15.841578 4,247.75 0.18 4,238.59 8,526.68 5.00% 10.00% 8,357.38 2.33
9/30/96 16.916710 4,536.03 0.18 4,526.07 8,526.68 5.00% 10.00% 8,343.01 2.25
10/31/96 16.744430 4,489.84 0.20 4,479.78 8,526.68 5.00% 10.00% 8,345.32 2.17
11/30/96 17.614316 4,723.09 0.19 4,712.31 8,526.68 5.00% 10.00% 8,333.70 2.08
12/31/96 16.964068 4,548.73 0.21 4,538.14 8,526.68 5.00% 10.00% 8,342.41 2.00
1/31/97 17.791193 4,770.51 0.20 4,759.21 8,526.68 6.00% 10.00% 8,292.29 1.92
2/28/97 17.257241 4,627.34 0.19 4,616.19 8,526.68 6.00% 10.00% 8,300.87 1.84
3/31/97 16.180408 4,338.60 0.20 4,327.94 8,526.68 6.00% 10.00% 8,318.16 1.75
4/30/97 17.103217 4,586.04 0.19 4,574.58 8,526.68 6.00% 10.00% 8,303.36 1.67
5/31/97 18.047273 4,839.18 0.20 4,826.89 8,526.68 6.00% 10.00% 8,288.23 1.59
6/30/97 18.786424 5,037.37 0.21 5,024.37 8,526.68 6.00% 10.00% 8,276.38 1.50
7/31/97 20.680107 5,545.14 0.22 5,530.61 8,526.68 6.00% 10.00% 8,246.00 1.42
8/31/97 19.137840 5,131.60 0.25 5,117.91 8,526.68 6.00% 10.00% 8,270.77 1.33
9/30/97 20.501671 5,497.30 0.22 5,482.41 8,526.68 6.00% 10.00% 8,248.90 1.25
10/31/97 19.338168 5,185.32 0.24 5,171.03 8,526.68 6.00% 10.00% 8,267.58 1.17
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Yr W/ Surr W/O Surr W/ Surr W/O Surr
- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
7/1/92 19.43% 19.47% 3,173.13 3,179.95 7
7/31/92 19.53% 19.57% 3,144.69 3,151.54 7
8/31/92 20.34% 20.38% 3,231.99 3,238.76 7
9/30/92 20.49% 20.53% 3,209.26 3,216.05 7
10/31/92 20.51% 20.55% 3,161.16 3,167.99 7
11/30/92 19.70% 19.74% 2,987.56 2,994.56 7
12/31/92 19.59% 19.64% 2,927.29 2,934.36 7
1/31/93 19.56% 19.65% 2,877.60 2,891.82 6
2/28/93 20.73% 20.83% 3,005.35 3,019.32 6
3/31/93 20.55% 20.66% 2,933.00 2,947.10 6
4/30/93 21.82% 21.92% 3,064.38 3,078.22 6
5/31/93 21.46% 21.56% 2,964.29 2,978.34 6
6/30/93 21.43% 21.54% 2,913.64 2,927.79 6
7/31/93 21.89% 22.00% 2,925.11 2,939.23 6
8/31/93 21.82% 21.93% 2,866.76 2,881.00 6
9/30/93 21.75% 21.87% 2,812.71 2,827.05 6
10/31/93 22.20% 22.32% 2,819.33 2,833.66 6
11/30/93 23.37% 23.49% 2,911.57 2,925.72 6
12/31/93 23.28% 23.40% 2,848.94 2,863.22 6
1/31/94 22.52% 22.72% 2,715.31 2,737.10 5
2/28/94 23.59% 23.79% 2,788.54 2,810.11 5
3/31/94
4/30/94 26.85% 27.03% 3,038.86 3,059.68 5
5/31/94 27.74% 27.93% 3,076.16 3,096.87 5
6/30/94 29.46% 29.65% 3,202.06 3,222.40 5
7/31/94 29.31% 29.51% 3,116.52 3,137.11 5
8/31/94 28.92% 29.13% 3,009.26 3,030.17 5
9/30/94 30.50% 30.70% 3,103.73 3,124.35 5
10/31/94 30.08% 30.30% 2,994.35 3,015.31 5
11/30/94 32.22% 32.43% 3,131.64 3,152.18 5
12/31/94 33.17% 33.39% 3,147.41 3,167.91 5
214.74% 216.79%
1/31/95 33.77% 34.06% 3,126.11 3,153.50 4
2/28/95 33.52% 33.83% 3,035.39 3,063.13 4
3/31/95 33.46% 33.80% 2,957.06 2,985.12 4
4/30/95 32.97% 33.33% 2,848.49 2,876.98 4
5/31/95 32.34% 32.73% 2,734.03 2,762.98 4
6/30/95 30.62% 31.06% 2,551.97 2,581.64 4
7/31/95 28.58% 29.06% 2,363.64 2,394.06 4
8/31/95 29.69% 30.19% 2,381.25 2,411.60 4
9/30/95 28.38% 28.92% 2,255.13 2,285.99 4
10/31/95 28.68% 29.24% 2,224.10 2,255.08 4
11/30/95 28.06% 28.66% 2,146.19 2,177.48 4
12/31/95 29.10% 29.72% 2,153.15 2,184.41 4
1/31/96 28.94% 29.76% 2,099.21 2,138.52 3
2/29/96 28.29% 29.17% 2,028.29 2,067.95 3
3/31/96 29.78% 30.68% 2,049.83 2,089.38 3
4/30/96 28.12% 29.11% 1,938.61 1,978.71 3
5/31/96 26.76% 27.83% 1,846.52 1,887.09 3
6/30/96 28.36% 29.46% 1,868.53 1,908.98 3
7/31/96 34.44% 35.51% 2,046.07 2,085.64 3
8/31/96 33.76% 34.91% 1,971.74 2,011.68 3
9/30/96 31.20% 32.48% 1,843.32 1,883.90 3
10/31/96 33.25% 34.58% 1,862.89 1,903.37 3
11/30/96 31.45% 32.90% 1,768.49 1,809.45 3
12/31/96 35.58% 37.07% 1,838.29 1,878.89 3
1/31/97 33.63% 35.59% 1,742.37 1,791.62 2
2/28/97 37.60% 39.63% 1,798.21 1,847.13 2
3/31/97 45.15% 47.22% 1,921.97 1,970.15 2
4/30/97 42.86% 45.15% 1,815.11 1,863.92 2
5/31/97 40.61% 43.15% 1,717.10 1,766.50 2
6/30/97 39.35% 42.14% 1,647.25 1,697.06 2
7/31/97 32.51% 35.67% 1,490.98 1,541.73 2
8/31/97 43.30% 46.61% 1,616.04 1,666.05 2
9/30/97 38.58% 42.30% 1,504.61 1,555.28 2
10/31/97 49.49% 53.50% 1,598.83 1,648.93 2
</TABLE>
<PAGE>
31-Mar-99
ENDEAVOR (AUSA) - WRL SUBACCOUNT 11:17 AM
PERFORMANCE CALCULATIONS 163A
INITIAL INVESTMENT $1,000.00
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FUND DISTRIBUTIONS:
REINVEST REINVEST
DIV PR/SH NAV SHARES SHARE BASE
($1000 @ $10.00 ON 10/02/86) 100.000000
12/86 0.00000000 0.000 0.000 100.000000
12/87 0.10828100 11.141 0.972 100.971924 SURRENDER PROVISIONS:
12/88 0.24573400 12.970 1.913 102.884985 Year Rate
12/89 1.21966700 17.851 7.030 109.914666 1 7.00%
12/90 0.33265900 17.479 2.092 112.006544 2 6.00%
12/91 1.66402600 26.086 7.145 119.151405 3 5.00%
12/92 0.00138300 24.616 0.007 119.158099 4 4.00%
12/92 1.04649900 25.930 4.809 123.967156 5 3.00%
6 2.00%
7 1.00%
8 0.00%
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
W/ Surr W/O Surr W/ Surr W/O Surr
- ---------------------------------------------
<S> <C> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/97 19.607665 5,257.58 0.22 5,242.87 8,526.68 6.00% 10.00% 8,263.27 1.08
12/31/97 19.665157 5,273.00 0.23 5,258.01 8,526.68 6.00% 10.00% 8,262.36 1.00
1/31/98 20.442064 5,481.32 0.12 5,465.62 8,526.68 7.00% 10.00% 8,144.09 0.92
2/28/98 22.183264 5,948.20 0.12 5,931.05 8,526.68 7.00% 10.00% 8,111.51 0.84
3/31/98 23.457684 6,289.92 0.13 6,271.65 8,526.68 7.00% 10.00% 8,087.66 0.75
4/30/98 24.865625 6,667.45 0.14 6,647.94 8,526.68 7.00% 10.00% 8,061.32 0.67
5/31/98 24.107475 6,464.16 0.15 6,445.09 8,526.68 7.00% 10.00% 8,075.52 0.59
6/30/98 26.567708 7,123.84 0.14 7,102.69 8,526.68 7.00% 10.00% 8,029.49 0.50
7/31/98 27.287984 7,316.97 0.16 7,295.09 8,526.68 7.00% 10.00% 8,016.02 0.42
8/31/98 22.643440 6,071.59 0.16 6,053.27 8,526.68 7.00% 10.00% 8,102.95 0.33
9/30/98 24.866333 6,667.64 0.14 6,647.38 8,526.68 7.00% 10.00% 8,061.36 0.25
10/31/98 25.765464 6,908.73 0.15 6,887.59 8,526.68 7.00% 10.00% 8,044.55 0.17
11/30/98 27.424108 7,353.47 0.15 7,330.82 8,526.68 7.00% 10.00% 8,013.52 0.08
12/31/98 31.898334 8,553.19 0.16 8,526.68 8,526.68 7.00% 10.00% 7,929.81 0.00
12/31/98 8,526.68
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Yr W/ Surr W/O Surr W/ Surr W/O Surr
- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
11/30/97 52.10% 56.56% 1,576.10 1,626.34 2
12/31/97 57.14% 62.17% 1,571.39 1,621.66 2
1/31/98 49.01% 56.01% 1,440.43 1,502.23 1
2/28/98 36.76% 43.76% 1,300.14 1,355.71 1
3/31/98 28.96% 35.96% 1,211.18 1,260.39 1
4/30/98 21.26% 28.26% 1,138.14 1,181.83 1
5/31/98 25.30% 32.30% 1,141.36 1,178.33 1
6/30/98 13.05% 20.05% 1,063.78 1,096.49 1
7/31/98 9.88% 16.88% 1,040.29 1,067.58 1
8/31/98 33.86% 40.86% 1,102.39 1,121.33 1
9/30/98 21.27% 28.27% 1,049.81 1,064.77 1
10/31/98 16.80% 23.80% 1,026.29 1,036.32 1
11/30/98 9.31% 16.31% 1,007.59 1,012.92 1
12/31/98 -7.00% 0.00% 1,000.00 1,000.00 1
12/31/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - VALUE EQUITY SUBACCOUNT 11:17 AM
PERFORMANCE RETURNS Fund #164A
<S> <C> <C> <C> <C> <C>
Initial investment $1,000 Surrender provisions:
AUV 0.999050 1 7.00%
Units purchased 1,000.951 2 6.00%
3 5.00%
4 4.00%
5 3.00%
Contract Charge Factor 0.000522 6 2.00%
7 1.00%
</TABLE>
<TABLE>
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5/27/93 0.999050 1000.950903 1,000.00 1,000.00 2,210.56 2.00%
5/31/93 0.999050 1000.950903 1,000.00 0.00000572 0.005720548 999.99 2,210.56 2.00%
6/30/93 1.004782 1000.950903 1,005.74 0.00004290 0.042903864 1,005.69 2,210.56 2.00%
7/31/93 0.997653 1000.950903 998.60 0.00004433 0.044586455 998.51 2,210.56 2.00%
8/31/93 1.021325 1000.950903 1,022.30 0.00004433 0.044268134 1,022.16 2,210.56 2.00%
9/30/93 1.009223 1000.950903 1,010.18 0.00004290 0.043854728 1,010.00 2,210.56 2.00%
10/31/93 1.012084 1000.950903 1,013.05 0.00004433 0.044777638 1,012.82 2,210.56 2.00%
11/30/93 1.008866 1000.950903 1,009.83 0.00004290 0.04345412 1,009.56 2,210.56 2.00%
12/31/93 1.018576 1000.950903 1,019.54 0.00004433 0.044757893 1,019.23 2,210.56 2.00%
1/31/94 1.046074 1000.950903 1,047.07 0.00004433 0.045186688 1,046.70 2,210.56 3.00%
2/28/94 1.035073 1000.950903 1,036.06 0.00004004 0.041913803 1,035.65 2,210.56 3.00%
3/31/94 0.998303 1000.950903 999.25 0.00004433 0.045914698 998.81 2,210.56 3.00%
4/30/94 1.031724 1000.950903 1,032.71 0.00004290 0.042853147 1,032.21 2,210.56 3.00%
5/31/94 1.046247 1000.950903 1,047.24 0.00004433 0.045762136 1,046.69 2,210.56 3.00%
6/30/94 1.011559 1000.950903 1,012.52 0.00004290 0.044907363 1,011.94 2,210.56 3.00%
7/31/94 1.032087 1000.950903 1,033.07 0.00004433 0.044863765 1,032.43 2,210.56 3.00%
8/31/94 1.075994 1000.950903 1,077.02 0.00004433 0.045772216 1,076.31 2,210.56 3.00%
9/30/94 1.043354 1000.950903 1,044.35 0.00004290 0.046178154 1,043.61 2,210.56 3.00%
10/31/94 1.064670 1000.950903 1,065.68 0.00004433 0.046267883 1,064.89 2,210.56 3.00%
11/30/94 1.030159 1000.950903 1,031.14 0.00004290 0.045688158 1,030.33 2,210.56 3.00%
12/31/94 1.045610 1000.950903 1,046.60 0.00004433 0.045678736 1,045.73 2,210.56 3.00%
1/31/95 1.073646 1000.950903 1,074.67 0.00004433 0.04636183 1,073.73 2,210.56 4.00%
2/28/95 1.115441 1000.950903 1,116.50 0.00004004 0.042996147 1,115.48 2,210.56 4.00%
3/31/95 1.141416 1000.950903 1,142.50 0.00004433 0.049454061 1,141.41 2,210.56 4.00%
4/30/95 1.152859 1000.950903 1,153.96 0.00004290 0.048971122 1,152.80 2,210.56 4.00%
5/31/95 1.220199 1000.950903 1,221.36 0.00004433 0.051108635 1,220.09 2,210.56 4.00%
6/30/95 1.261038 1000.950903 1,262.24 0.00004290 0.052346798 1,260.87 2,210.56 4.00%
7/31/95 1.311545 1000.950903 1,312.79 0.00004433 0.055899772 1,311.32 2,210.56 4.00%
8/31/95 1.309995 1000.950903 1,311.24 0.00004433 0.058136188 1,309.71 2,210.56 4.00%
9/30/95 1.339871 1000.950903 1,341.15 0.00004290 0.056191843 1,339.52 2,210.56 4.00%
10/31/95 1.309888 1000.950903 1,311.13 0.00004433 0.059386652 1,309.49 2,210.56 4.00%
11/30/95 1.368933 1000.950903 1,370.23 0.00004290 0.056182348 1,368.46 2,210.56 4.00%
12/31/95 1.387903 1000.950903 1,389.22 0.00004433 0.060669515 1,387.36 2,210.56 4.00%
1/31/96 1.455329 1000.950903 1,456.71 0.00004433 0.061507554 1,454.70 2,210.56 5.00%
2/29/96 1.483885 1000.950903 1,485.30 0.00004147 0.060332103 1,483.18 2,210.56 5.00%
3/31/96 1.509467 1000.950903 1,510.90 0.00004433 0.065755723 1,508.69 2,210.56 5.00%
4/30/96 1.511511 1000.950903 1,512.95 0.00004290 0.064728802 1,510.66 2,210.56 5.00%
5/31/96 1.549864 1000.950903 1,551.34 0.00004433 0.066974131 1,548.93 2,210.56 5.00%
6/30/96 1.542260 1000.950903 1,543.73 0.00004290 0.066455381 1,541.26 2,210.56 5.00%
7/31/96 1.481871 1000.950903 1,483.28 0.00004433 0.0683307 1,480.84 2,210.56 5.00%
8/31/96 1.541527 1000.950903 1,542.99 0.00004433 0.065652102 1,540.39 2,210.56 5.00%
9/30/96 1.600985 1000.950903 1,602.51 0.00004290 0.066126484 1,599.88 2,210.56 5.00%
10/31/96 1.628709 1000.950903 1,630.26 0.00004433 0.065652102 1,627.51 2,210.56 5.00%
11/30/96 1.711712 1000.950903 1,713.34 0.00004290 0.066089189 1,710.39 2,210.56 5.00%
12/31/96 1.694854 1000.950903 1,696.47 0.00004433 0.070929612 1,693.62 2,210.56 5.00%
1/31/97 1.754824 1000.950903 1,756.49 0.00004433 0.072154631 1,753.46 2,210.56 6.00%
2/28/97 1.755903 1000.950903 1,757.57 0.00004004 0.068490443 1,754.47 2,210.56 6.00%
3/31/97 1.697885 1000.950903 1,699.50 0.00004433 0.075085215 1,696.57 2,210.56 6.00%
4/30/97 1.731240 1000.950903 1,732.89 0.00004290 0.075230851 1,729.82 2,210.56 6.00%
5/31/97 1.816418 1000.950903 1,818.15 0.00004433 0.077783326 1,814.86 2,210.56 6.00%
6/30/97 1.912022 1000.950903 1,913.84 0.00004290 0.072789837 1,910.47 2,210.56 6.00%
7/31/97 2.028368 1000.950903 2,030.30 0.00004433 0.076690441 2,026.63 2,210.56 6.00%
<CAPTION>
W/D ERV Avg Ann Avg Ann
DATE Available W/ Surr n W/ Surr W/O Surr
- -------------------------------------------------------------------------------------------
TOTAL RETURN 119.50% 121.06%
<S> <C> <C> <C> <C> <C> <C>
5/27/93 10.00% 2,194.98 5.60 15.07% 15.22% 6
5/31/93 10.00% 2,194.98 5.59 15.10% 15.25% 6
6/30/93 10.00% 2,194.87 5.51 15.23% 15.37% 6
7/31/93 10.00% 2,195.01 5.42 15.64% 15.79% 6
8/31/93 10.00% 2,194.54 5.34 15.39% 15.55% 6
9/30/93 10.00% 2,194.78 5.25 15.92% 16.07% 6
10/31/93 10.00% 2,194.72 5.17 16.13% 16.30% 6
11/30/93 10.00% 2,194.79 5.09 16.49% 16.65% 6
12/31/93 10.00% 2,194.60 5.00 16.57% 16.74% 6
1/31/94 10.00% 2,185.79 4.92 16.15% 16.42% 5
2/28/94 10.00% 2,186.12 4.84 16.69% 16.96% 5
3/31/94 10.00% 2,187.23 4.76 17.92% 18.18% 5
4/30/94 10.00% 2,186.23 4.67 17.42% 17.70% 5
5/31/94 10.00% 2,185.79 4.59 17.40% 17.69% 5
6/30/94 10.00% 2,186.83 4.51 18.65% 18.93% 5
7/31/94 10.00% 2,186.22 4.42 18.49% 18.79% 5
8/31/94 10.00% 2,184.90 4.34 17.73% 18.05% 5
9/30/94 10.00% 2,185.88 4.25 18.98% 19.29% 5
10/31/94 10.00% 2,185.24 4.17 18.81% 19.14% 5
11/30/94 10.00% 2,186.28 4.09 20.21% 20.53% 5
12/31/94 10.00% 2,185.82 4.00 20.22% 20.56% 5
TOTAL RETURN 109.02% 111.39%
1/31/95 10.00% 2,176.45 3.92 19.76% 20.24% 4
2/28/95 10.00% 2,174.78 3.84 18.98% 19.49% 4
3/31/95 10.00% 2,173.75 3.76 18.71% 19.24% 4
4/30/95 10.00% 2,173.29 3.67 18.84% 19.39% 4
5/31/95 10.00% 2,170.60 3.59 17.41% 18.01% 4
6/30/95 10.00% 2,168.97 3.51 16.73% 17.36% 4
7/31/95 10.00% 2,166.95 3.42 15.81% 16.49% 4
8/31/95 10.00% 2,167.01 3.34 16.29% 16.98% 4
9/30/95 10.00% 2,165.82 3.25 15.91% 16.64% 4
10/31/95 10.00% 2,167.02 3.17 17.22% 17.96% 4
11/30/95 10.00% 2,164.66 3.09 16.01% 16.80% 4
12/31/95 10.00% 2,163.91 3.00 15.96% 16.78% 4
1/31/96 10.00% 2,148.88 2.92 14.31% 15.42% 3
2/29/96 10.00% 2,147.45 2.84 13.93% 15.10% 3
3/31/96 10.00% 2,146.18 2.75 13.66% 14.88% 3
4/30/96 10.00% 2,146.08 2.67 14.05% 15.32% 3
5/31/96 10.00% 2,144.17 2.59 13.40% 14.74% 3
6/30/96 10.00% 2,144.55 2.50 14.10% 15.49% 3
7/31/96 10.00% 2,147.57 2.42 16.61% 18.01% 3
8/31/96 10.00% 2,144.59 2.33 15.23% 16.74% 3
9/30/96 10.00% 2,141.62 2.25 13.83% 15.44% 3
10/31/96 10.00% 2,140.24 2.17 13.47% 15.18% 3
11/30/96 10.00% 2,136.09 2.08 11.25% 13.09% 3
12/31/96 10.00% 2,136.93 2.00 12.33% 14.25% 3
1/31/97 10.00% 2,118.62 1.92 10.38% 12.86% 2
2/28/97 10.00% 2,118.55 1.84 10.80% 13.39% 2
3/31/97 10.00% 2,122.03 1.75 13.61% 16.29% 2
4/30/97 10.00% 2,120.03 1.67 12.94% 15.80% 2
5/31/97 10.00% 2,114.93 1.59 10.13% 13.24% 2
6/30/97 10.00% 2,109.20 1.50 6.80% 10.19% 2
7/31/97 10.00% 2,102.23 1.42 2.61% 6.31% 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - VALUE EQUITY SUBACCOUNT 11:17 AM
PERFORMANCE RETURNS Fund #164A
<S> <C> <C> <C> <C> <C>
Initial investment $1,000 Surrender provisions:
AUV 0.999050 1 7.00%
Units purchased 1,000.951 2 6.00%
3 5.00%
4 4.00%
5 3.00%
Contract Charge Factor 0.000522 6 2.00%
7 1.00%
</TABLE>
<TABLE>
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/97 1.975499 1000.950903 1,977.38 0.00004433 0.080460583 1,973.73 2,210.56 6.00%
9/30/97 2.048951 1000.950903 2,050.90 0.00004290 0.081966958 2,047.20 2,210.56 6.00%
10/31/97 2.008141 1000.950903 2,010.05 0.00004433 0.089849212 2,006.33 2,210.56 6.00%
11/30/97 2.045357 1000.950903 2,047.30 0.00004290 0.084681014 2,043.44 2,210.56 6.00%
12/31/97 2.086130 1000.950903 2,088.11 0.00004433 0.090761268 2,084.26 2,210.56 6.00%
1/31/98 2.058583 1000.950903 2,060.54 0.00004433 0.088949248 2,056.64 2,210.56 7.00%
2/28/98 2.197181 1000.950903 2,199.27 0.00004004 0.081827096 2,195.04 2,210.56 7.00%
3/31/98 2.301976 1000.950903 2,304.16 0.00004433 0.092404142 2,299.82 2,210.56 7.00%
4/30/98 2.317404 1000.950903 2,319.61 0.00004290 0.088238321 2,315.13 2,210.56 7.00%
5/31/98 2.275459 1000.950903 2,277.62 0.00004433 0.097315344 2,273.14 2,210.56 7.00%
6/30/98 2.301469 1000.950903 2,303.66 0.00004290 0.098671782 2,299.22 2,210.56 7.00%
7/31/98 2.215591 1000.950903 2,217.70 0.00004433 0.102639492 2,213.31 2,210.56 7.00%
8/31/98 1.878649 1000.950903 1,880.44 0.00004433 0.100778041 1,876.64 2,210.56 7.00%
9/30/98 1.932855 1000.950903 1,934.69 0.00004290 0.098645817 1,930.86 2,210.56 7.00%
10/31/98 2.128123 1000.950903 2,130.15 0.00004433 0.09812557 2,125.84 2,210.56 7.00%
11/30/98 2.206348 1000.950903 2,208.45 0.00004290 0.080515368 2,203.90 2,210.56 7.00%
12/31/98 2.212928 1000.950903 2,215.03 0.00004433 0.085603411 2,210.56 2,210.56 7.00%
12/31/98 2,210.56
<CAPTION>
W/D ERV Avg Ann Avg Ann
DATE Available W/ Surr n W/ Surr W/O Surr
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
8/31/97 10.00% 2,105.40 1.33 4.96% 8.86% 2
9/30/97 10.00% 2,100.99 1.25 2.09% 6.32% 2
10/31/97 10.00% 2,103.44 1.17 4.13% 8.66% 2
11/30/97 10.00% 2,101.22 1.08 2.60% 7.51% 2
12/31/97 10.00% 2,098.77 1.00 0.70% 6.06% 2
1/31/98 10.00% 2,066.60 0.92 0.48% 7.48% 1
2/28/98 10.00% 2,056.91 0.84 -6.29% 0.71% 1
3/31/98 10.00% 2,049.57 0.75 -10.88% -3.88% 1
4/30/98 10.00% 2,048.50 0.67 -11.52% -4.52% 1
5/31/98 10.00% 2,051.44 0.59 -9.75% -2.75% 1
6/30/98 10.00% 2,049.61 0.50 -10.86% -3.86% 1
7/31/98 10.00% 2,055.63 0.42 -7.12% -0.12% 1
8/31/98 10.00% 2,079.20 0.33 10.79% 17.79% 1
9/30/98 10.00% 2,075.40 0.25 7.49% 14.49% 1
10/31/98 10.00% 2,061.75 0.17 -3.01% 3.99% 1
11/30/98 10.00% 2,056.29 0.08 -6.70% 0.30% 1
12/31/98 10.00% 2,055.82 0.00 -7.00% 0.00% 1
12/31/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ENDEAVOR (AUSA) - VALUE SMALL CAP SUBACCOUNT
PERFORMANCE CALCULATIONS
Surrender provisions:
<S> <C> <C> <C>
Initial investment $1,000 Year Rate
AUV 0.999962 1 7.00%
-------------- 2 6.00%
Units purchased 1,000.038 3 5.00%
4 4.00%
5 3.00%
6 2.00%
Contract Charge Factor 0.000522 7 1.00%
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/4/93 0.999962 1000.038001 1,000.00 0 1,000.00 1,780.76 2.00%
5/31/93 0.999050 1000.038001 999.09 0.00003861 0.038613699 999.05 1,780.76 2.00%
6/30/93 1.000790 1000.038001 1,000.83 0.00004290 0.042863323 1,000.75 1,780.76 2.00%
7/31/93 1.034532 1000.038001 1,034.57 0.00004433 0.044367342 1,034.44 1,780.76 2.00%
8/30/93 1.065127 1000.038001 1,065.17 0.00004290 0.044381841 1,064.99 1,780.76 2.00%
9/30/93 1.093740 1000.038001 1,093.78 0.00004433 0.047215557 1,093.55 1,780.76 2.00%
10/31/93 1.091540 1000.038001 1,091.58 0.00004433 0.048481837 1,091.30 1,780.76 2.00%
11/30/93 1.064416 1000.038001 1,064.46 0.00004290 0.046821454 1,064.14 1,780.76 2.00%
12/31/93 1.107447 1000.038001 1,107.49 0.00004433 0.047177831 1,107.11 1,780.76 2.00%
1/31/94 1.134150 1000.038001 1,134.19 0.00004433 0.049082991 1,133.76 1,780.76 3.00%
2/28/94 1.129975 1000.038001 1,130.02 0.00004004 0.045400026 1,129.54 1,780.76 3.00%
3/31/94 1.063464 1000.038001 1,063.50 0.00004433 0.05007727 1,063.00 1,780.76 3.00%
4/30/94 1.062289 1000.038001 1,062.33 0.00004290 0.045607231 1,061.78 1,780.76 3.00%
5/31/94 1.047201 1000.038001 1,047.24 0.00004433 0.04707338 1,046.66 1,780.76 3.00%
6/30/94 1.021404 1000.038001 1,021.44 0.00004290 0.044905835 1,020.83 1,780.76 3.00%
7/31/94 1.040918 1000.038001 1,040.96 0.00004433 0.04525761 1,040.29 1,780.76 3.00%
8/31/94 1.083789 1000.038001 1,083.83 0.00004433 0.046120253 1,083.08 1,780.76 3.00%
9/30/94 1.091375 1000.038001 1,091.42 0.00004290 0.046468748 1,090.62 1,780.76 3.00%
10/31/94 1.060702 1000.038001 1,060.74 0.00004433 0.048351747 1,059.92 1,780.76 3.00%
11/30/94 1.045795 1000.038001 1,045.83 0.00004290 0.045474853 1,044.98 1,780.76 3.00%
12/31/94 1.072941 1000.038001 1,072.98 0.00004433 0.046328263 1,072.06 1,780.76 3.00%
1/31/95 1.036496 1000.038001 1,036.54 0.00004433 0.047528765 1,035.59 1,780.76 4.00%
2/28/95 1.049039 1000.038001 1,049.08 0.00004004 0.041469111 1,048.08 1,780.76 4.00%
3/31/95 1.050723 1000.038001 1,050.76 0.00004433 0.046465992 1,049.72 1,780.76 4.00%
4/30/95 1.056414 1000.038001 1,056.45 0.00004290 0.04503728 1,055.36 1,780.76 4.00%
5/31/95 1.103127 1000.038001 1,103.17 0.00004433 0.046788591 1,101.98 1,780.76 4.00%
6/30/95 1.130708 1000.038001 1,130.75 0.00004290 0.047279454 1,129.48 1,780.76 4.00%
7/31/95 1.167122 1000.038001 1,167.17 0.00004433 0.050074851 1,165.81 1,780.76 4.00%
8/31/95 1.192534 1000.038001 1,192.58 0.00004433 0.051685272 1,191.14 1,780.76 4.00%
9/30/95 1.197165 1000.038001 1,197.21 0.00004290 0.05110484 1,195.72 1,780.76 4.00%
10/31/95 1.159078 1000.038001 1,159.12 0.00004433 0.053011141 1,157.62 1,780.76 4.00%
11/30/95 1.172582 1000.038001 1,172.63 0.00004290 0.04966672 1,171.06 1,780.76 4.00%
12/31/95 1.206843 1000.038001 1,206.89 0.00004433 0.051918013 1,205.22 1,780.76 4.00%
1/31/96 1.188557 1000.038001 1,188.60 0.00004433 0.053432674 1,186.91 1,780.76 5.00%
2/29/96 1.213847 1000.038001 1,213.89 0.00004147 0.049225813 1,212.11 1,780.76 5.00%
3/31/96 1.249908 1000.038001 1,249.96 0.00004433 0.053738172 1,248.07 1,780.76 5.00%
4/30/96 1.296553 1000.038001 1,296.60 0.00004290 0.053547334 1,294.59 1,780.76 5.00%
5/31/96 1.349261 1000.038001 1,349.31 0.00004433 0.057394801 1,347.16 1,780.76 5.00%
6/30/96 1.303747 1000.038001 1,303.80 0.00004290 0.057798864 1,301.66 1,780.76 5.00%
7/31/96 1.255016 1000.038001 1,255.06 0.00004433 0.057708238 1,252.95 1,780.76 5.00%
8/31/96 1.308801 1000.038001 1,308.85 0.00004433 0.055548681 1,306.59 1,780.76 5.00%
9/30/96 1.336875 1000.038001 1,336.93 0.00004290 0.056058208 1,334.56 1,780.76 5.00%
10/31/96 1.348560 1000.038001 1,348.61 0.00004433 0.059166869 1,346.17 1,780.76 5.00%
11/30/96 1.471393 1000.038001 1,471.45 0.00004290 0.05775619 1,468.73 1,780.76 5.00%
12/31/96 1.496065 1000.038001 1,496.12 0.00004433 0.065114889 1,493.29 1,780.76 5.00%
1/31/97 1.566476 1000.038001 1,566.54 0.00004433 0.066203835 1,563.50 1,780.76 6.00%
2/28/97 1.565821 1000.038001 1,565.88 0.00004004 0.062608655 1,562.79 1,780.76 6.00%
3/31/97 1.519343 1000.038001 1,519.40 0.00004433 0.069284966 1,516.33 1,780.76 6.00%
4/30/97 1.519632 1000.038001 1,519.69 0.00004290 0.065056762 1,516.55 1,780.76 6.00%
5/31/97 1.660591 1000.038001 1,660.65 0.00004433 0.067235223 1,657.16 1,780.76 6.00%
6/30/97 1.757456 1000.038001 1,757.52 0.00004290 0.071098926 1,753.75 1,780.76 6.00%
7/31/97 1.850701 1000.038001 1,850.77 0.00004433 0.0777513 1,846.72 1,780.76 6.00%
8/31/97 1.894000 1000.038001 1,894.07 0.00004433 0.081873088 1,889.85 1,780.76 6.00%
9/30/97 1.968681 1000.038001 1,968.76 0.00004290 0.08108222 1,964.28 1,780.76 6.00%
10/31/97 1.873624 1000.038001 1,873.70 0.00004433 0.087085033 1,869.35 1,780.76 6.00%
11/30/97 1.865980 1000.038001 1,866.05 0.00004290 0.080202876 1,861.65 1,780.76 6.00%
12/31/97 1.851229 1000.038001 1,851.30 0.00004433 0.082534631 1,846.85 1,780.76 6.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 76.43% 78.08%
<S> <C> <C> <C> <C> <C> <C> <C>
5/4/93 10.00% 1,764.32 5.66 10.55% 10.73% 1,764.32 1,780.76 6
5/31/93 10.00% 1,764.34 5.59 10.71% 10.90% 1,766.02 1,782.46 6
6/30/93 10.00% 1,764.31 5.51 10.85% 11.03% 1,762.99 1,779.43 6
7/31/93 10.00% 1,763.63 5.42 10.34% 10.54% 1,704.91 1,721.47 6
8/30/93 10.00% 1,763.02 5.34 9.90% 10.11% 1,655.43 1,672.09 6
9/30/93 10.00% 1,762.45 5.25 9.51% 9.72% 1,611.67 1,628.42 6
10/31/93 10.00% 1,762.50 5.17 9.72% 9.93% 1,615.04 1,631.77 6
11/30/93 10.00% 1,763.04 5.09 10.43% 10.65% 1,656.77 1,673.43 6
12/31/93 10.00% 1,762.18 5.00 9.74% 9.97% 1,591.69 1,608.48 6
1/31/94 10.00% 1,752.09 4.92 9.25% 9.62% 1,545.38 1,570.67 5
2/28/94 10.00% 1,752.22 4.84 9.49% 9.86% 1,551.27 1,576.54 5
3/31/94 10.00% 1,754.21 4.76 11.11% 11.46% 1,650.24 1,675.22 5
4/30/94 10.00% 1,754.25 4.67 11.34% 11.70% 1,652.17 1,677.14 5
5/31/94 10.00% 1,754.70 4.59 11.92% 12.28% 1,676.48 1,701.38 5
6/30/94 10.00% 1,755.48 4.51 12.78% 13.14% 1,719.66 1,744.43 5
7/31/94 10.00% 1,754.89 4.42 12.55% 12.93% 1,686.94 1,711.80 5
8/31/94 10.00% 1,753.61 4.34 11.75% 12.15% 1,619.09 1,644.16 5
9/30/94 10.00% 1,753.38 4.25 11.81% 12.21% 1,607.70 1,632.80 5
10/31/94 10.00% 1,754.30 4.17 12.84% 13.25% 1,655.13 1,680.09 5
11/30/94 10.00% 1,754.75 4.09 13.52% 13.93% 1,679.23 1,704.12 5
12/31/94 10.00% 1,753.94 4.00 13.09% 13.52% 1,636.05 1,661.07 5
TOTAL RETURN 63.61% 66.11%
1/31/95 10.00% 1,746.46 3.92 14.27% 14.84% 1,686.43 1,719.56 4
2/28/95 10.00% 1,745.96 3.84 14.21% 14.80% 1,665.86 1,699.07 4
3/31/95 10.00% 1,745.89 3.76 14.50% 15.11% 1,663.20 1,696.42 4
4/30/95 10.00% 1,745.67 3.67 14.68% 15.30% 1,654.10 1,687.35 4
5/31/95 10.00% 1,743.80 3.59 13.64% 14.31% 1,582.43 1,615.97 4
6/30/95 10.00% 1,742.70 3.51 13.16% 13.86% 1,542.92 1,576.62 4
7/31/95 10.00% 1,741.25 3.42 12.44% 13.18% 1,493.60 1,527.49 4
8/31/95 10.00% 1,740.24 3.34 12.03% 12.81% 1,460.98 1,495.01 4
9/30/95 10.00% 1,740.05 3.25 12.22% 13.02% 1,455.24 1,489.29 4
10/31/95 10.00% 1,741.58 3.17 13.75% 14.55% 1,504.45 1,538.29 4
11/30/95 10.00% 1,741.04 3.09 13.71% 14.54% 1,486.72 1,520.64 4
12/31/95 10.00% 1,739.67 3.00 13.00% 13.88% 1,443.45 1,477.54 4
1/31/96 10.00% 1,730.32 2.92 13.79% 14.92% 1,457.84 1,500.34 3
2/29/96 10.00% 1,729.06 2.84 13.33% 14.51% 1,426.48 1,469.14 3
3/31/96 10.00% 1,727.26 2.75 12.53% 13.78% 1,383.95 1,426.81 3
4/30/96 10.00% 1,724.93 2.67 11.34% 12.68% 1,332.41 1,375.54 3
5/31/96 10.00% 1,722.31 2.59 9.96% 11.39% 1,278.47 1,321.86 3
6/30/96 10.00% 1,724.58 2.50 11.89% 13.33% 1,324.91 1,368.07 3
7/31/96 10.00% 1,727.02 2.42 14.18% 15.64% 1,378.36 1,421.25 3
8/31/96 10.00% 1,724.33 2.33 12.62% 14.18% 1,319.72 1,362.90 3
9/30/96 10.00% 1,722.94 2.25 12.01% 13.66% 1,291.01 1,334.34 3
10/31/96 10.00% 1,722.36 2.17 12.04% 13.78% 1,279.45 1,322.84 3
11/30/96 10.00% 1,716.23 2.08 7.76% 9.68% 1,168.51 1,212.45 3
12/31/96 10.00% 1,715.00 2.00 7.17% 9.20% 1,148.47 1,192.51 3
1/31/97 10.00% 1,697.63 1.92 4.39% 7.03% 1,085.79 1,138.96 2
2/28/97 10.00% 1,697.68 1.84 4.61% 7.36% 1,086.31 1,139.48 2
3/31/97 10.00% 1,700.46 1.75 6.75% 9.60% 1,121.43 1,174.39 2
4/30/97 10.00% 1,700.45 1.67 7.09% 10.09% 1,121.26 1,174.22 2
5/31/97 10.00% 1,692.02 1.59 1.32% 4.64% 1,021.03 1,074.59 2
6/30/97 10.00% 1,686.22 1.50 -2.58% 1.02% 961.49 1,015.40 2
7/31/97 10.00% 1,680.64 1.42 -6.42% -2.53% 910.07 964.28 2
8/31/97 10.00% 1,678.05 1.33 -8.52% -4.36% 887.93 942.28 2
9/30/97 10.00% 1,673.59 1.25 -12.01% -7.54% 852.01 906.57 2
10/31/97 10.00% 1,679.28 1.17 -8.78% -4.07% 898.32 952.61 2
11/30/97 10.00% 1,679.75 1.08 -9.04% -4.01% 902.29 956.55 2
12/31/97 10.00% 1,680.63 1.00 -9.00% -3.58% 910.00 964.22 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ENDEAVOR (AUSA) - VALUE SMALL CAP SUBACCOUNT
PERFORMANCE CALCULATIONS
Surrender provisions:
<S> <C> <C> <C>
Initial investment $1,000 Year Rate
AUV 0.999962 1 7.00%
--------------- 2 6.00%
Units purchased 1,000.038 3 5.00%
4 4.00%
5 3.00%
Contract Charge Factor 0.000522 6 2.00%
7 1.00%
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1/31/98 1.822072 1000.038001 1,822.14 0.00004433 0.081878517 1,817.68 1,780.76 7.00%
2/28/98 1.961967 1000.038001 1,962.04 0.00004004 0.072786717 1,957.16 1,780.76 7.00%
3/31/98 2.056263 1000.038001 2,056.34 0.00004433 0.086769242 2,051.14 1,780.76 7.00%
4/30/98 2.066263 1000.038001 2,066.34 0.00004290 0.088002287 2,061.03 1,780.76 7.00%
5/31/98 1.985344 1000.038001 1,985.42 0.00004433 0.091374033 1,980.22 1,780.76 7.00%
6/30/98 1.944761 1000.038001 1,944.83 0.00004290 0.084959604 1,939.66 1,780.76 7.00%
7/31/98 1.776036 1000.038001 1,776.10 0.00004433 0.085993251 1,771.29 1,780.76 7.00%
8/31/98 1.371670 1000.038001 1,371.72 0.00004433 0.078528773 1,367.93 1,780.76 7.00%
9/30/98 1.400531 1000.038001 1,400.58 0.00004290 0.058689623 1,396.65 1,780.76 7.00%
10/31/98 1.549596 1000.038001 1,549.65 0.00004433 0.061919379 1,545.24 1,780.76 7.00%
11/30/98 1.695726 1000.038001 1,695.79 0.00004290 0.066297097 1,690.89 1,780.76 7.00%
12/31/98 1.785929 1000.038001 1,786.00 0.00004433 0.074964408 1,780.76 1,780.76 7.00%
<CAPTION>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/31/98 10.00% 1,653.52 0.92 -9.03% -2.03% 917.03 981.40 1
2/28/98 10.00% 1,643.76 0.84 -16.01% -9.01% 863.90 923.87 1
3/31/98 10.00% 1,637.18 0.75 -20.18% -13.18% 843.80 898.97 1
4/30/98 10.00% 1,636.49 0.67 -20.60% -13.60% 856.57 906.55 1
5/31/98 10.00% 1,642.14 0.59 -17.07% -10.07% 896.05 939.65 1
6/30/98 10.00% 1,644.98 0.50 -15.19% -8.19% 920.29 957.83 1
7/31/98 10.00% 1,656.77 0.42 -6.47% 0.53% 972.37 1,002.24 1
8/31/98 10.00% 1,685.01 0.33 23.18% 30.18% 1,072.17 1,092.16 1
9/30/98 10.00% 1,682.99 0.25 20.50% 27.50% 1,048.13 1,063.15 1
10/31/98 10.00% 1,672.59 0.17 8.24% 15.24% 1,013.32 1,023.99 1
11/30/98 10.00% 1,662.40 0.08 -1.69% 5.31% 998.56 1,004.41 1
12/31/98 10.00% 1,656.11 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ENDEAVOR (AUSA) - DREYFUS US GOVERNMENT SECURITIES SUBACCOUNT
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 0.998670 2 6.00%
--------------- 3 5.00%
Units purchased 1,001.332 4 4.00%
5 3.00%
6 2.00%
7 1.00%
Contract Charge Factor 0.000522
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/9/94 0.998670 1001.331771 1,000.00 1,000.00 1,285.34 3.00% 10.00%
5/31/94 0.997834 1001.331771 999.16 0.00003146 0.031463014 999.13 1,285.34 3.00% 10.00%
6/30/94 0.991708 1001.331771 993.03 0.00004290 0.042866844 992.95 1,285.34 3.00% 10.00%
7/31/94 1.000569 1001.331771 1,001.90 0.00004433 0.044021894 1,001.78 1,285.34 3.00% 10.00%
8/31/94 0.999310 1001.331771 1,000.64 0.00004433 0.044413282 1,000.48 1,285.34 3.00% 10.00%
9/30/94 0.990223 1001.331771 991.54 0.00004290 0.042924608 991.34 1,285.34 3.00% 10.00%
10/31/94 0.988060 1001.331771 989.38 0.00004433 0.043950189 989.13 1,285.34 3.00% 10.00%
11/30/94 0.983957 1001.331771 985.27 0.00004290 0.042437649 984.98 1,285.34 3.00% 10.00%
12/31/94 0.985803 1001.331771 987.12 0.00004433 0.043668256 986.78 1,285.34 3.00% 10.00%
1/31/95 0.999429 1001.331771 1,000.76 0.00004433 0.043748246 1,000.38 1,285.34 4.00% 10.00%
2/28/95 1.016140 1001.331771 1,017.49 0.00004004 0.040058972 1,017.06 1,285.34 4.00% 10.00%
3/31/95 1.019871 1001.331771 1,021.23 0.00004433 0.045090802 1,020.75 1,285.34 4.00% 10.00%
4/30/95 1.018785 1001.331771 1,020.14 0.00004290 0.043794546 1,019.62 1,285.34 4.00% 10.00%
5/31/95 1.067728 1001.331771 1,069.15 0.00004433 0.045204234 1,068.56 1,285.34 4.00% 10.00%
6/16/95 1.072051 1001.331771 1,073.48 0.00002288 0.024451028 1,072.86 1,285.34 4.00% 10.00%
6/30/95 1.072474 1001.331771 1,073.90 0.00002002 0.02139465 1,073.27 1,285.34 4.00% 10.00%
7/31/95 1.067235 1001.331771 1,068.66 0.00004433 0.047582409 1,067.97 1,285.34 4.00% 10.00%
8/31/95 1.076884 1001.331771 1,078.32 0.00004433 0.047347861 1,077.58 1,285.34 4.00% 10.00%
9/30/95 1.084609 1001.331771 1,086.05 0.00004290 0.046232748 1,085.27 1,285.34 4.00% 10.00%
10/31/95 1.096150 1001.331771 1,097.61 0.00004433 0.048114494 1,096.77 1,285.34 4.00% 10.00%
11/30/95 1.110708 1001.331771 1,112.19 0.00004290 0.047055806 1,111.29 1,285.34 4.00% 10.00%
12/31/95 1.124292 1001.331771 1,125.79 0.00004433 0.049268028 1,124.83 1,285.34 4.00% 10.00%
1/31/96 1.128795 1001.331771 1,130.30 0.00004433 0.049868393 1,129.28 1,285.34 5.00% 10.00%
2/29/96 1.102929 1001.331771 1,104.40 0.00004147 0.046835856 1,103.36 1,285.34 5.00% 10.00%
3/31/96 1.090889 1001.331771 1,092.34 0.00004433 0.048916593 1,091.27 1,285.34 5.00% 10.00%
4/30/96 1.081701 1001.331771 1,083.14 0.00004290 0.046819772 1,082.03 1,285.34 5.00% 10.00%
5/31/96 1.078209 1001.331771 1,079.64 0.00004433 0.047970872 1,078.49 1,285.34 5.00% 10.00%
6/30/96 1.088194 1001.331771 1,089.64 0.00004290 0.0462715 1,088.43 1,285.34 5.00% 10.00%
7/31/96 1.088849 1001.331771 1,090.30 0.00004433 0.048254623 1,089.03 1,285.34 5.00% 10.00%
8/31/96 1.085586 1001.331771 1,087.03 0.00004433 0.048281529 1,085.72 1,285.34 5.00% 10.00%
9/30/96 1.102463 1001.331771 1,103.93 0.00004290 0.046581969 1,102.56 1,285.34 5.00% 10.00%
10/31/96 1.124337 1001.331771 1,125.83 0.00004433 0.04888096 1,124.38 1,285.34 5.00% 10.00%
11/30/96 1.142220 1001.331771 1,143.74 0.00004290 0.04824062 1,142.22 1,285.34 5.00% 10.00%
12/31/96 1.128769 1001.331771 1,130.27 0.00004433 0.050639364 1,128.72 1,285.34 5.00% 10.00%
1/31/97 1.129443 1001.331771 1,130.95 0.00004433 0.05004078 1,129.34 1,285.34 6.00% 10.00%
2/28/97 1.132254 1001.331771 1,133.76 0.00004004 0.045223108 1,132.11 1,285.34 6.00% 10.00%
3/31/97 1.117895 1001.331771 1,119.38 0.00004433 0.050191048 1,117.70 1,285.34 6.00% 10.00%
4/30/97 1.131627 1001.331771 1,133.13 0.00004290 0.04795385 1,131.38 1,285.34 6.00% 10.00%
5/31/97 1.140329 1001.331771 1,141.85 0.00004433 0.050158876 1,140.03 1,285.34 6.00% 10.00%
6/30/97 1.152450 1001.331771 1,153.98 0.00004290 0.048911966 1,152.10 1,285.34 6.00% 10.00%
7/31/97 1.180949 1001.331771 1,182.52 0.00004433 0.051077431 1,180.54 1,285.34 6.00% 10.00%
8/31/97 1.167302 1001.331771 1,168.86 0.00004433 0.052338263 1,166.84 1,285.34 6.00% 10.00%
9/30/97 1.184372 1001.331771 1,185.95 0.00004290 0.050062377 1,183.86 1,285.34 6.00% 10.00%
10/31/97 1.200419 1001.331771 1,202.02 0.00004433 0.052485392 1,199.84 1,285.34 6.00% 10.00%
11/30/97 1.204263 1001.331771 1,205.87 0.00004290 0.051478246 1,203.63 1,285.34 6.00% 10.00%
12/31/97 1.215033 1001.331771 1,216.65 0.00004433 0.053362244 1,214.35 1,285.34 6.00% 10.00%
1/31/98 1.230008 1001.331771 1,231.65 0.00004433 0.053837109 1,229.26 1,285.34 7.00% 10.00%
2/28/98 1.224611 1001.331771 1,226.24 0.00004004 0.049224228 1,223.82 1,285.34 7.00% 10.00%
3/31/98 1.226180 1001.331771 1,227.81 0.00004433 0.054256944 1,225.33 1,285.34 7.00% 10.00%
4/30/98 1.227833 1001.331771 1,229.47 0.00004290 0.052571665 1,226.93 1,285.34 7.00% 10.00%
5/31/98 1.241543 1001.331771 1,243.20 0.00004433 0.054394957 1,240.57 1,285.34 7.00% 10.00%
6/30/98 1.252652 1001.331771 1,254.32 0.00004290 0.053225729 1,251.62 1,285.34 7.00% 10.00%
7/31/98 1.252225 1001.331771 1,253.89 0.00004433 0.055489685 1,251.14 1,285.34 7.00% 10.00%
8/31/98 1.266488 1001.331771 1,268.17 0.00004433 0.05546831 1,265.33 1,285.34 7.00% 10.00%
9/30/98 1.291247 1001.331771 1,292.97 0.00004290 0.05428804 1,290.02 1,285.34 7.00% 10.00%
10/31/98 1.284540 1001.331771 1,286.25 0.00004433 0.057191907 1,283.26 1,285.34 7.00% 10.00%
11/30/98 1.284069 1001.331771 1,285.78 0.00004290 0.055057069 1,282.73 1,285.34 7.00% 10.00%
<CAPTION>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 25.92% 28.53%
5/9/94 1,259.20 4.65 5.08% 5.55% 1,259.20 1,285.34 5
5/31/94 1,259.22 4.59 5.17% 5.64% 1,260.32 1,286.46 5
6/30/94 1,259.41 4.51 5.42% 5.89% 1,268.34 1,294.46 5
7/31/94 1,259.14 4.42 5.31% 5.80% 1,256.90 1,283.05 5
8/31/94 1,259.18 4.34 5.45% 5.95% 1,258.58 1,284.73 5
9/30/94 1,259.46 4.26 5.79% 6.29% 1,270.46 1,296.57 5
10/31/94 1,259.52 4.17 5.97% 6.48% 1,273.37 1,299.47 5
11/30/94 1,259.65 4.09 6.20% 6.73% 1,278.86 1,304.94 5
12/31/94 1,259.59 4.00 6.29% 6.83% 1,276.46 1,302.56 5
1/31/95 1,250.47 3.92 5.86% 6.61% 1,249.99 1,284.85 4
2/28/95 1,249.80 3.84 5.51% 6.28% 1,228.83 1,263.77 4
3/31/95 1,249.65 3.76 5.53% 6.33% 1,224.24 1,259.21 4
4/30/95 1,249.70 3.67 5.69% 6.51% 1,225.65 1,260.60 4
5/31/95 1,247.74 3.59 4.41% 5.28% 1,167.68 1,202.87 4
6/16/95 1,247.57 3.55 4.35% 5.23% 1,162.84 1,198.05 4
TOTAL RETURN 16.28% 19.80%
6/30/95 1,247.55 3.51 4.38% 5.28% 1,162.39 1,197.60 4
7/31/95 1,247.76 3.42 4.65% 5.56% 1,168.34 1,203.53 4
8/31/95 1,247.38 3.34 4.48% 5.43% 1,157.57 1,192.80 4
9/30/95 1,247.07 3.26 4.36% 5.34% 1,149.09 1,184.35 4
10/31/95 1,246.61 3.17 4.12% 5.13% 1,136.62 1,171.94 4
11/30/95 1,246.03 3.09 3.78% 4.82% 1,121.25 1,156.62 4
12/31/95 1,245.49 3.00 3.45% 4.54% 1,107.27 1,142.70 4
1/31/96 1,235.30 2.92 3.12% 4.54% 1,093.88 1,138.19 3
2/29/96 1,236.60 2.84 4.10% 5.53% 1,120.76 1,164.93 3
3/31/96 1,237.20 2.75 4.66% 6.13% 1,133.73 1,177.84 3
4/30/96 1,237.67 2.67 5.16% 6.66% 1,143.84 1,187.90 3
5/31/96 1,237.84 2.59 5.47% 7.02% 1,147.76 1,191.80 3
6/30/96 1,237.35 2.50 5.25% 6.87% 1,136.82 1,180.91 3
7/31/96 1,237.31 2.42 5.42% 7.09% 1,136.16 1,180.26 3
8/31/96 1,237.48 2.33 5.76% 7.50% 1,139.78 1,183.86 3
9/30/96 1,236.64 2.25 5.23% 7.05% 1,121.61 1,165.78 3
10/31/96 1,235.55 2.17 4.45% 6.37% 1,098.87 1,143.15 3
11/30/96 1,234.66 2.08 3.80% 5.83% 1,080.93 1,125.30 3
12/31/96 1,235.33 2.00 4.62% 6.71% 1,094.46 1,138.76 3
1/31/97 1,225.29 1.92 4.35% 6.99% 1,084.96 1,138.13 2
2/28/97 1,225.13 1.84 4.39% 7.15% 1,082.17 1,135.35 2
3/31/97 1,225.99 1.75 5.42% 8.30% 1,096.89 1,149.99 2
4/30/97 1,225.17 1.67 4.88% 7.93% 1,082.90 1,136.08 2
5/31/97 1,224.65 1.59 4.62% 7.86% 1,074.23 1,127.46 2
6/30/97 1,223.93 1.50 4.10% 7.55% 1,062.34 1,115.65 2
7/31/97 1,222.22 1.42 2.48% 6.18% 1,035.31 1,088.77 2
8/31/97 1,223.04 1.33 3.59% 7.52% 1,048.16 1,101.55 2
9/30/97 1,222.02 1.25 2.57% 6.79% 1,032.24 1,085.72 2
10/31/97 1,221.06 1.17 1.51% 6.07% 1,017.68 1,071.26 2
11/30/97 1,220.83 1.08 1.32% 6.24% 1,014.29 1,067.88 2
12/31/97 1,220.19 1.00 0.48% 5.85% 1,004.81 1,058.46 2
1/31/98 1,199.29 0.92 -2.44% 4.56% 977.67 1,041.67 1
2/28/98 1,199.67 0.84 -1.97% 5.03% 983.43 1,041.98 1
3/31/98 1,199.57 0.75 -2.10% 4.90% 984.12 1,036.68 1
4/30/98 1,199.45 0.67 -2.24% 4.76% 984.91 1,031.71 1
5/31/98 1,198.50 0.59 -3.39% 3.61% 979.97 1,021.00 1
6/30/98 1,197.73 0.50 -4.31% 2.69% 978.06 1,013.49 1
7/31/98 1,197.76 0.42 -4.27% 2.73% 981.89 1,011.37 1
8/31/98 1,196.77 0.33 -5.42% 1.58% 981.55 1,005.26 1
9/30/98 1,195.04 0.25 -7.36% -0.36% 980.91 999.09 1
10/31/98 1,195.51 0.17 -6.84% 0.16% 988.23 1,000.27 1
11/30/98 1,195.55 0.08 -6.80% 0.20% 994.04 1,000.17 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - DREYFUS US GOVERNMENT SECURITIES SUBACCOUNT 11:17 AM
PERFORMANCE CALCULATIONS Fund #166A Surrender provisions:
Year Rate
<S> <C> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 0.998670 2 6.00%
--------------- 3 5.00%
Units purchased 1,001.332 4 4.00%
5 3.00%
6 2.00%
7 1.00%
Contract Charge Factor 0.000522
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/98 1.286733 1001.331771 1,288.45 0.00004433 0.056869003 1,285.34 1,285.34 7.00% 10.00%
12/31/98 1,285.34
<CAPTION>
ERV ERV of ERV of
W/ Surr Avg Ann Avg Ann $1,000 $1,000
Total Return n W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C> <C> <C> <C>
12/31/98 1,195.37 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - T ROWE PRICE EQUITY INCOME 11:17 AM
PERFORMANCE CALCULATIONS Fund #167A Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
--------------- 3 5.00%
Units purchased 1,000.000 4 4.00%
5 3.00%
6 2.00%
7 1.00%
Contract Charge Factor 0.000522
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/3/95 1.000000 1000 1,000.00 1,000.00 2,061.38 4.00% 10.00%
1/31/95 0.999935 1000 999.94 0.00004004 0.040043836 999.89 2,061.38 4.00% 10.00%
2/28/95 1.038787 1000 1,038.79 0.00004004 0.040039629 1,038.71 2,061.38 4.00% 10.00%
3/31/95 1.052511 1000 1,052.51 0.00004433 0.04605022 1,052.38 2,061.38 4.00% 10.00%
4/30/95 1.075282 1000 1,075.28 0.00004290 0.045151523 1,075.11 2,061.38 4.00% 10.00%
5/31/95 1.108737 1000 1,108.74 0.00004433 0.047663983 1,108.51 2,061.38 4.00% 10.00%
6/28/95 1.116497 1000 1,116.50 0.00004004 0.044388877 1,116.22 2,061.38 4.00% 10.00%
6/30/95 1.115419 1000 1,115.42 0.00000286 0.003170634 1,115.14 2,061.38 4.00% 10.00%
7/31/95 1.135928 1000 1,135.93 0.00004433 0.049438902 1,135.59 2,061.38 4.00% 10.00%
8/31/95 1.151435 1000 1,151.44 0.00004433 0.050345734 1,151.05 2,061.38 4.00% 10.00%
9/30/95 1.193717 1000 1,193.72 0.00004290 0.049384637 1,193.27 2,061.38 4.00% 10.00%
10/31/95 1.202148 1000 1,202.15 0.00004433 0.05290251 1,201.64 2,061.38 4.00% 10.00%
11/30/95 1.248176 1000 1,248.18 0.00004290 0.051555296 1,247.60 2,061.38 4.00% 10.00%
12/31/95 1.287240 1000 1,287.24 0.00004433 0.055311274 1,286.59 2,061.38 4.00% 10.00%
1/31/96 1.323061 1000 1,323.06 0.00004433 0.057039892 1,322.33 2,061.38 5.00% 10.00%
2/29/96 1.325533 1000 1,325.53 0.00004147 0.054842419 1,324.75 2,061.38 5.00% 10.00%
3/31/96 1.342750 1000 1,342.75 0.00004433 0.058731758 1,341.90 2,061.38 5.00% 10.00%
4/30/96 1.349950 1000 1,349.95 0.00004290 0.057572908 1,349.04 2,061.38 5.00% 10.00%
5/31/96 1.370709 1000 1,370.71 0.00004433 0.059808457 1,369.72 2,061.38 5.00% 10.00%
6/30/96 1.378153 1000 1,378.15 0.00004290 0.058766629 1,377.10 2,061.38 5.00% 10.00%
7/31/96 1.337880 1000 1,337.88 0.00004433 0.061052697 1,336.80 2,061.38 5.00% 10.00%
8/31/96 1.365965 1000 1,365.97 0.00004433 0.059265881 1,364.80 2,061.38 5.00% 10.00%
9/30/96 1.420548 1000 1,420.55 0.00004290 0.058555522 1,419.28 2,061.38 5.00% 10.00%
10/31/96 1.451366 1000 1,451.37 0.00004433 0.062922609 1,450.01 2,061.38 5.00% 10.00%
11/30/96 1.532388 1000 1,532.39 0.00004290 0.062211184 1,530.89 2,061.38 5.00% 10.00%
12/31/96 1.521680 1000 1,521.68 0.00004433 0.067870814 1,520.12 2,061.38 5.00% 10.00%
1/31/97 1.560117 1000 1,560.12 0.00004433 0.067393538 1,558.45 2,061.38 6.00% 10.00%
2/28/97 1.595705 1000 1,595.71 0.00004004 0.062406475 1,593.94 2,061.38 6.00% 10.00%
3/31/97 1.560536 1000 1,560.54 0.00004433 0.070666201 1,558.74 2,061.38 6.00% 10.00%
4/30/97 1.595918 1000 1,595.92 0.00004290 0.066876387 1,594.02 2,061.38 6.00% 10.00%
5/31/97 1.669314 1000 1,669.31 0.00004433 0.070669465 1,667.25 2,061.38 6.00% 10.00%
6/30/97 1.730058 1000 1,730.06 0.00004290 0.071532009 1,727.85 2,061.38 6.00% 10.00%
7/31/97 1.827135 1000 1,827.14 0.00004433 0.076602952 1,824.73 2,061.38 6.00% 10.00%
8/31/97 1.777115 1000 1,777.12 0.00004433 0.0808979 1,774.69 2,061.38 6.00% 10.00%
9/30/97 1.857860 1000 1,857.86 0.00004290 0.076141584 1,855.25 2,061.38 6.00% 10.00%
10/31/97 1.806777 1000 1,806.78 0.00004433 0.08225115 1,804.16 2,061.38 6.00% 10.00%
11/30/97 1.871627 1000 1,871.63 0.00004290 0.077405765 1,868.84 2,061.38 6.00% 10.00%
12/31/97 1.925022 1000 1,925.02 0.00004433 0.082853433 1,922.07 2,061.38 6.00% 10.00%
1/31/98 1.906920 1000 1,906.92 0.00004433 0.085213457 1,903.91 2,061.38 7.00% 10.00%
2/28/98 1.999245 1000 1,999.25 0.00004004 0.076239819 1,996.01 2,061.38 7.00% 10.00%
3/31/98 2.090058 1000 2,090.06 0.00004433 0.088491688 2,086.59 2,061.38 7.00% 10.00%
4/30/98 2.070824 1000 2,070.82 0.00004290 0.089523271 2,067.30 2,061.38 7.00% 10.00%
5/31/98 2.034882 1000 2,034.88 0.00004433 0.091652101 2,031.33 2,061.38 7.00% 10.00%
6/30/98 2.026172 1000 2,026.17 0.00004290 0.087152216 2,022.54 2,061.38 7.00% 10.00%
7/31/98 1.965718 1000 1,965.72 0.00004433 0.089667949 1,962.11 2,061.38 7.00% 10.00%
8/31/98 1.774917 1000 1,774.92 0.00004433 0.086988591 1,771.57 2,061.38 7.00% 10.00%
9/30/98 1.867029 1000 1,867.03 0.00004290 0.076007661 1,863.43 2,061.38 7.00% 10.00%
10/31/98 1.977517 1000 1,977.52 0.00004433 0.082613896 1,973.63 2,061.38 7.00% 10.00%
11/30/98 2.054647 1000 2,054.65 0.00004290 0.084676646 2,050.52 2,061.38 7.00% 10.00%
12/31/98 2.065623 1000 2,065.62 0.00004433 0.090908219 2,061.38 2,061.38 7.00% 10.00%
12/31/98 2,061.38
<CAPTION>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 102.96% 106.14%
1/3/95 2,029.63 4.00 19.39% 19.85% 2,029.63 2,061.38 4
1/31/95 2,029.63 3.92 19.80% 20.28% 2,029.84 2,061.60 4
2/28/95 2,028.08 3.84 19.03% 19.54% 1,952.50 1,984.57 4
3/31/95 2,027.53 3.76 19.08% 19.60% 1,926.61 1,958.77 4
4/30/95 2,026.62 3.67 18.83% 19.38% 1,885.04 1,917.37 4
5/31/95 2,025.29 3.59 18.29% 18.87% 1,827.04 1,859.60 4
6/28/95 2,024.98 3.51 18.48% 19.08% 1,814.14 1,846.75 4
TOTAL RETURN 81.41% 84.67%
6/30/95 2,025.02 3.51 18.54% 19.15% 1,815.93 1,848.54 4
7/31/95 2,024.20 3.42 18.40% 19.03% 1,782.50 1,815.24 4
8/31/95 2,023.58 3.34 18.42% 19.08% 1,758.04 1,790.87 4
9/30/95 2,021.89 3.26 17.59% 18.29% 1,694.42 1,727.51 4
10/31/95 2,021.56 3.17 17.83% 18.56% 1,682.33 1,715.47 4
11/30/95 2,019.72 3.09 16.88% 17.66% 1,618.89 1,652.28 4
12/31/95 2,018.16 3.00 16.17% 17.00% 1,568.62 1,602.21 4
1/31/96 2,005.57 2.92 15.34% 16.43% 1,516.69 1,558.90 3
2/29/96 2,005.45 2.84 15.73% 16.86% 1,513.83 1,556.05 3
3/31/96 2,004.59 2.75 15.70% 16.88% 1,493.85 1,536.17 3
4/30/96 2,004.24 2.67 15.98% 17.20% 1,485.68 1,528.04 3
5/31/96 2,003.20 2.59 15.84% 17.12% 1,462.49 1,504.96 3
6/30/96 2,002.83 2.50 16.14% 17.48% 1,454.38 1,496.90 3
7/31/96 2,004.85 2.42 18.24% 19.61% 1,499.74 1,542.03 3
8/31/96 2,003.45 2.33 17.88% 19.32% 1,467.94 1,510.39 3
9/30/96 2,000.72 2.25 16.47% 18.03% 1,409.68 1,452.41 3
10/31/96 1,999.19 2.17 15.98% 17.63% 1,378.74 1,421.64 3
11/30/96 1,995.14 2.09 13.55% 15.34% 1,303.26 1,346.52 3
12/31/96 1,995.68 2.00 14.58% 16.45% 1,312.84 1,356.06 3
1/31/97 1,980.24 1.92 13.32% 15.73% 1,270.64 1,322.71 2
2/28/97 1,978.11 1.84 12.47% 15.02% 1,241.02 1,293.26 2
3/31/97 1,980.22 1.75 14.63% 17.29% 1,270.40 1,322.46 2
4/30/97 1,978.11 1.67 13.79% 16.63% 1,240.96 1,293.20 2
5/31/97 1,973.71 1.59 11.23% 14.32% 1,183.81 1,236.39 2
6/30/97 1,970.08 1.50 9.11% 12.45% 1,140.19 1,193.03 2
7/31/97 1,964.26 1.42 5.33% 8.97% 1,076.47 1,129.69 2
8/31/97 1,967.27 1.33 8.03% 11.88% 1,108.51 1,161.54 2
9/30/97 1,962.43 1.25 4.59% 8.78% 1,057.77 1,111.11 2
10/31/97 1,965.50 1.17 7.62% 12.10% 1,089.43 1,142.57 2
11/30/97 1,961.62 1.09 4.57% 9.46% 1,049.65 1,103.03 2
12/31/97 1,958.42 1.00 1.89% 7.25% 1,018.91 1,072.48 2
1/31/98 1,928.11 0.92 1.27% 8.27% 1,011.62 1,075.42 1
2/28/98 1,921.66 0.84 -3.73% 3.27% 968.69 1,027.37 1
3/31/98 1,915.32 0.75 -8.21% -1.21% 937.54 990.89 1
4/30/98 1,916.67 0.67 -7.29% -0.29% 950.50 998.08 1
5/31/98 1,919.19 0.59 -5.52% 1.48% 967.27 1,008.64 1
6/30/98 1,919.80 0.50 -5.08% 1.92% 974.07 1,009.63 1
7/31/98 1,924.03 0.42 -1.94% 5.06% 991.82 1,020.90 1
8/31/98 1,937.37 0.33 9.36% 16.36% 1,030.33 1,051.91 1
9/30/98 1,930.94 0.25 3.62% 10.62% 1,009.01 1,025.77 1
10/31/98 1,923.23 0.17 -2.55% 4.45% 995.69 1,007.29 1
11/30/98 1,917.84 0.09 -6.47% 0.53% 994.33 1,000.45 1
12/31/98 1,917.08 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - T ROWE PRICE GROWTH STOCK 11:17 AM
PERFORMANCE CALCULATIONS Fund #168A Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
---------------
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
6 2.00%
Contract Charge Factor 0.000522 7 1.00%
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/3/95 1.000000 1000 1,000.00 1,000.00 2,587.82 4.00% 10.00%
1/31/95 0.999935 1000 999.94 0.00004004 0.040043836 999.89 2,587.82 4.00% 10.00%
2/28/95 1.065730 1000 1,065.73 0.00004004 0.040039629 1,065.65 2,587.82 4.00% 10.00%
3/31/95 1.134246 1000 1,134.25 0.00004433 0.047244669 1,134.11 2,587.82 4.00% 10.00%
4/28/95 1.145983 1000 1,145.98 0.00004004 0.045414143 1,145.80 2,587.82 4.00% 10.00%
4/30/95 1.145983 1000 1,145.98 0.00000286 0.003243867 1,145.80 2,587.82 4.00% 10.00%
5/31/95 1.169406 1000 1,169.41 0.00004433 0.050798076 1,169.17 2,587.82 4.00% 10.00%
6/30/95 1.212767 1000 1,212.77 0.00004290 0.050162029 1,212.47 2,587.82 4.00% 10.00%
7/31/95 1.253007 1000 1,253.01 0.00004433 0.053753856 1,252.64 2,587.82 4.00% 10.00%
8/31/95 1.256482 1000 1,256.48 0.00004433 0.055535043 1,256.06 2,587.82 4.00% 10.00%
9/30/95 1.294690 1000 1,294.69 0.00004290 0.053890256 1,294.20 2,587.82 4.00% 10.00%
10/31/95 1.290145 1000 1,290.15 0.00004433 0.057377567 1,289.60 2,587.82 4.00% 10.00%
11/30/95 1.329158 1000 1,329.16 0.00004290 0.05532929 1,328.54 2,587.82 4.00% 10.00%
12/31/95 1.353339 1000 1,353.34 0.00004433 0.058900032 1,352.66 2,587.82 4.00% 10.00%
1/31/96 1.387105 1000 1,387.11 0.00004433 0.059968973 1,386.34 2,587.82 5.00% 10.00%
2/29/96 1.403287 1000 1,403.29 0.00004147 0.057497223 1,402.46 2,587.82 5.00% 10.00%
3/31/96 1.406656 1000 1,406.66 0.00004433 0.062177023 1,405.77 2,587.82 5.00% 10.00%
4/30/96 1.443233 1000 1,443.23 0.00004290 0.060313104 1,442.26 2,587.82 5.00% 10.00%
5/31/96 1.457237 1000 1,457.24 0.00004433 0.063941453 1,456.19 2,587.82 5.00% 10.00%
6/30/96 1.450703 1000 1,450.70 0.00004290 0.062476506 1,449.60 2,587.82 5.00% 10.00%
7/31/96 1.384191 1000 1,384.19 0.00004433 0.064266815 1,383.07 2,587.82 5.00% 10.00%
8/31/96 1.437279 1000 1,437.28 0.00004433 0.061317453 1,436.06 2,587.82 5.00% 10.00%
9/30/96 1.513026 1000 1,513.03 0.00004290 0.061612692 1,511.68 2,587.82 5.00% 10.00%
10/31/96 1.525121 1000 1,525.12 0.00004433 0.067019045 1,523.69 2,587.82 5.00% 10.00%
11/30/96 1.622493 1000 1,622.49 0.00004290 0.065372727 1,620.91 2,587.82 5.00% 10.00%
12/31/96 1.611613 1000 1,611.61 0.00004433 0.071861794 1,609.97 2,587.82 5.00% 10.00%
1/31/97 1.667027 1000 1,667.03 0.00004433 0.071376723 1,665.25 2,587.82 6.00% 10.00%
2/28/97 1.669202 1000 1,669.20 0.00004004 0.066683164 1,667.36 2,587.82 6.00% 10.00%
3/31/97 1.603139 1000 1,603.14 0.00004433 0.073921157 1,601.30 2,587.82 6.00% 10.00%
4/30/97 1.667294 1000 1,667.29 0.00004290 0.068702185 1,665.31 2,587.82 6.00% 10.00%
5/31/97 1.784427 1000 1,784.43 0.00004433 0.073830206 1,782.23 2,587.82 6.00% 10.00%
6/30/97 1.869689 1000 1,869.69 0.00004290 0.076464922 1,867.31 2,587.82 6.00% 10.00%
7/31/97 1.992117 1000 1,992.12 0.00004433 0.082785732 1,989.50 2,587.82 6.00% 10.00%
8/31/97 1.888144 1000 1,888.14 0.00004433 0.088202905 1,885.57 2,587.82 6.00% 10.00%
9/30/97 1.990457 1000 1,990.46 0.00004290 0.080898861 1,987.67 2,587.82 6.00% 10.00%
10/31/97 1.932903 1000 1,932.90 0.00004433 0.088121698 1,930.11 2,587.82 6.00% 10.00%
11/30/97 1.999770 1000 1,999.77 0.00004290 0.08280944 1,996.79 2,587.82 6.00% 10.00%
12/31/97 2.043487 1000 2,043.49 0.00004433 0.088526291 2,040.36 2,587.82 6.00% 10.00%
1/31/98 2.079466 1000 2,079.47 0.00004433 0.09045764 2,076.19 2,587.82 7.00% 10.00%
2/28/98 2.247012 1000 2,247.01 0.00004004 0.083138583 2,243.39 2,587.82 7.00% 10.00%
3/31/98 2.356003 1000 2,356.00 0.00004433 0.099458923 2,352.10 2,587.82 7.00% 10.00%
4/30/98 2.367010 1000 2,367.01 0.00004290 0.100914924 2,362.99 2,587.82 7.00% 10.00%
5/31/98 2.304058 1000 2,304.06 0.00004433 0.10476146 2,300.04 2,587.82 7.00% 10.00%
6/30/98 2.381692 1000 2,381.69 0.00004290 0.098681249 2,377.44 2,587.82 7.00% 10.00%
7/31/98 2.360576 1000 2,360.58 0.00004433 0.105402094 2,356.26 2,587.82 7.00% 10.00%
8/31/98 1.996126 1000 1,996.13 0.00004433 0.10446293 1,992.37 2,587.82 7.00% 10.00%
9/30/98 2.109207 1000 2,109.21 0.00004290 0.085480875 2,105.15 2,587.82 7.00% 10.00%
10/31/98 2.282456 1000 2,282.46 0.00004433 0.093330376 2,277.98 2,587.82 7.00% 10.00%
11/30/98 2.418705 1000 2,418.71 0.00004290 0.097734522 2,413.86 2,587.82 7.00% 10.00%
12/31/98 2.593121 1000 2,593.12 0.00004433 0.107016646 2,587.82 2,587.82 7.00% 10.00%
12/31/98 2,587.82
<CAPTION>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 155.82% 158.78%
1/3/95 2,558.17 4.00 26.51% 26.87% 2,558.17 2,587.82 4
1/31/95 2,558.18 3.92 27.10% 27.47% 2,558.44 2,588.09 4
2/28/95 2,555.55 3.84 25.57% 25.98% 2,398.12 2,428.40 4
3/31/95 2,552.81 3.76 24.11% 24.56% 2,250.93 2,281.81 4
4/28/95 2,552.34 3.68 24.32% 24.79% 2,227.56 2,258.53 4
TOTAL RETURN 122.76% 125.85%
4/30/95 2,552.34 3.67 24.36% 24.83% 2,227.57 2,258.53 4
5/31/95 2,551.40 3.59 24.29% 24.78% 2,182.24 2,213.39 4
6/30/95 2,549.67 3.51 23.61% 24.13% 2,102.88 2,134.34 4
7/31/95 2,548.07 3.42 23.06% 23.62% 2,034.15 2,065.89 4
8/31/95 2,547.93 3.34 23.61% 24.19% 2,028.50 2,060.26 4
9/30/95 2,546.40 3.26 23.11% 23.72% 1,967.54 1,999.55 4
10/31/95 2,546.59 3.17 23.94% 24.57% 1,974.71 2,006.68 4
11/30/95 2,545.03 3.09 23.43% 24.10% 1,915.65 1,947.86 4
12/31/95 2,544.07 3.00 23.41% 24.11% 1,880.79 1,913.14 4
1/31/96 2,531.44 2.92 22.92% 23.85% 1,825.98 1,866.65 3
2/29/96 2,530.64 2.84 23.12% 24.09% 1,804.43 1,845.20 3
3/31/96 2,530.47 2.75 23.80% 24.81% 1,800.07 1,840.86 3
4/30/96 2,528.65 2.67 23.39% 24.47% 1,753.25 1,794.28 3
5/31/96 2,527.95 2.59 23.78% 24.90% 1,736.00 1,777.12 3
6/30/96 2,528.28 2.50 24.88% 26.04% 1,744.12 1,785.20 3
7/31/96 2,531.61 2.42 28.39% 29.56% 1,830.42 1,871.07 3
8/31/96 2,528.96 2.33 27.44% 28.70% 1,761.04 1,802.03 3
9/30/96 2,525.18 2.25 25.59% 26.96% 1,670.45 1,711.89 3
10/31/96 2,524.57 2.17 26.24% 27.69% 1,656.88 1,698.39 3
11/30/96 2,519.71 2.09 23.56% 25.15% 1,554.51 1,596.52 3
12/31/96 2,520.26 2.00 25.12% 26.78% 1,565.41 1,607.37 3
1/31/97 2,503.43 1.92 23.72% 25.89% 1,503.33 1,554.01 2
2/28/97 2,503.31 1.84 24.74% 27.02% 1,501.36 1,552.05 2
3/31/97 2,507.27 1.75 29.15% 31.50% 1,565.77 1,616.08 2
4/30/97 2,503.43 1.67 27.63% 30.19% 1,503.28 1,553.96 2
5/31/97 2,496.41 1.59 23.67% 26.51% 1,400.73 1,452.01 2
6/30/97 2,491.31 1.50 21.13% 24.23% 1,334.17 1,385.86 2
7/31/97 2,483.98 1.42 16.93% 20.36% 1,248.54 1,300.74 2
8/31/97 2,490.21 1.33 23.18% 26.78% 1,320.67 1,372.43 2
9/30/97 2,484.09 1.25 19.49% 23.46% 1,249.75 1,301.94 2
10/31/97 2,487.54 1.17 24.29% 28.57% 1,288.81 1,340.77 2
11/30/97 2,483.54 1.09 22.27% 26.99% 1,243.76 1,295.99 2
12/31/97 2,480.93 1.00 21.59% 26.83% 1,215.93 1,268.32 2
1/31/98 2,442.49 0.92 17.64% 24.64% 1,160.29 1,223.31 1
2/28/98 2,430.78 0.84 8.35% 15.35% 1,069.54 1,127.15 1
3/31/98 2,423.17 0.75 3.02% 10.02% 1,022.67 1,074.56 1
4/30/98 2,422.41 0.67 2.51% 9.51% 1,016.80 1,062.88 1
5/31/98 2,426.82 0.59 5.51% 12.51% 1,031.94 1,071.52 1
6/30/98 2,421.40 0.50 1.85% 8.85% 1,009.28 1,043.66 1
7/31/98 2,422.88 0.42 2.83% 9.83% 1,011.75 1,040.06 1
8/31/98 2,448.35 0.33 22.89% 29.89% 1,071.26 1,091.27 1
9/30/98 2,440.46 0.25 15.93% 22.93% 1,037.95 1,053.40 1
10/31/98 2,428.36 0.17 6.60% 13.60% 1,010.73 1,021.53 1
11/30/98 2,418.85 0.09 0.21% 7.21% 1,000.18 1,005.93 1
12/31/98 2,406.67 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) - OPPORTUNITY VALUE 11:17 AM
PERFORMANCE CALCULATIONS Fund #169A Surrender provisions:
Year Rate
<S> <C> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
6 2.00%
Contract Charge Factor 0.000522 7 1.00%
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/18/96 1.000000 1000 1,000.00 1,000.00 1,198.78 5.00% 10.00%
11/30/96 0.999582 1000 999.58 0.00001716 0.017161644 999.56 1,198.78 5.00% 10.00%
12/13/96 0.999050 1000 999.05 0.00001859 0.01858369 999.01 1,198.78 5.00% 10.00%
12/31/96 1.004355 1000 1,004.36 0.00002574 0.02571709 1,004.29 1,198.78 5.00% 10.00%
1/31/97 1.026105 1000 1,026.11 0.00004433 0.044524589 1,026.00 1,198.78 6.00% 10.00%
2/28/97 1.013058 1000 1,013.06 0.00004004 0.041084875 1,012.91 1,198.78 6.00% 10.00%
3/31/97 0.996937 1000 996.94 0.00004433 0.044906636 996.75 1,198.78 6.00% 10.00%
4/30/97 1.022633 1000 1,022.63 0.00004290 0.042764552 1,022.40 1,198.78 6.00% 10.00%
5/31/97 1.055216 1000 1,055.22 0.00004433 0.045327137 1,054.93 1,198.78 6.00% 10.00%
6/30/97 1.092742 1000 1,092.74 0.00004290 0.045260646 1,092.40 1,198.78 6.00% 10.00%
7/31/97 1.153850 1000 1,153.85 0.00004433 0.048430557 1,153.44 1,198.78 6.00% 10.00%
8/31/97 1.114981 1000 1,114.98 0.00004433 0.05113673 1,114.53 1,198.78 6.00% 10.00%
9/30/97 1.151177 1000 1,151.18 0.00004290 0.047817922 1,150.66 1,198.78 6.00% 10.00%
10/31/97 1.130074 1000 1,130.07 0.00004433 0.051013806 1,129.52 1,198.78 6.00% 10.00%
11/30/97 1.154504 1000 1,154.50 0.00004290 0.048461009 1,153.89 1,198.78 6.00% 10.00%
12/31/97 1.156993 1000 1,156.99 0.00004433 0.051156781 1,156.33 1,198.78 6.00% 10.00%
1/31/98 1.165510 1000 1,165.51 0.00004433 0.051264802 1,164.79 1,198.78 7.00% 10.00%
2/28/98 1.217327 1000 1,217.33 0.00004004 0.046642496 1,216.52 1,198.78 7.00% 10.00%
3/31/98 1.250190 1000 1,250.19 0.00004433 0.053933679 1,249.31 1,198.78 7.00% 10.00%
4/30/98 1.258562 1000 1,258.56 0.00004290 0.053600597 1,257.62 1,198.78 7.00% 10.00%
5/31/98 1.241701 1000 1,241.70 0.00004433 0.055755812 1,240.72 1,198.78 7.00% 10.00%
6/30/98 1.256999 1000 1,257.00 0.00004290 0.053231979 1,255.95 1,198.78 7.00% 10.00%
7/31/98 1.209087 1000 1,209.09 0.00004433 0.055681707 1,208.02 1,198.78 7.00% 10.00%
8/31/98 1.028080 1000 1,028.08 0.00004433 0.053556865 1,027.12 1,198.78 7.00% 10.00%
9/30/98 1.079148 1000 1,079.15 0.00004290 0.044067805 1,078.10 1,198.78 7.00% 10.00%
10/31/98 1.155687 1000 1,155.69 0.00004433 0.047796732 1,154.52 1,198.78 7.00% 10.00%
11/30/98 1.199552 1000 1,199.55 0.00004290 0.049533499 1,198.29 1,198.78 7.00% 10.00%
12/31/98 1.200101 1000 1,200.10 0.00004433 0.053125171 1,198.78 1,198.78 7.00% 10.00%
12/31/98 1,198.78
<CAPTION>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 15.48% 20.00%
11/18/96 1,154.78 2.12 7.03% 8.94% 1,154.78 1,198.78 3
11/30/96 1,154.80 2.08 7.17% 9.11% 1,155.30 1,199.30 3
12/13/96 1,154.83 2.05 7.33% 9.30% 1,155.97 1,199.97 3
TOTAL RETURN 15.60% 20.00%
12/31/96 1,154.56 2.00 7.22% 9.25% 1,149.63 1,193.66 3
1/31/97 1,144.42 1.92 5.87% 8.47% 1,115.42 1,168.41 2
2/28/97 1,145.20 1.84 6.91% 9.60% 1,130.60 1,183.50 2
3/31/97 1,146.17 1.75 8.29% 11.10% 1,149.91 1,202.69 2
4/30/97 1,144.63 1.67 6.99% 9.99% 1,119.56 1,172.52 2
5/31/97 1,142.68 1.59 5.17% 8.39% 1,083.19 1,136.37 2
6/30/97 1,140.43 1.50 2.90% 6.37% 1,043.97 1,097.39 2
7/31/97 1,136.77 1.42 -1.02% 2.75% 985.55 1,039.31 2
8/31/97 1,139.10 1.33 1.65% 5.61% 1,022.05 1,075.59 2
9/30/97 1,136.94 1.25 -0.95% 3.33% 988.07 1,041.82 2
10/31/97 1,138.20 1.17 0.66% 5.23% 1,007.69 1,061.32 2
11/30/97 1,136.74 1.08 -1.37% 3.58% 985.14 1,038.91 2
12/31/97 1,136.60 1.00 -1.71% 3.67% 982.94 1,036.72 2
1/31/98 1,117.25 0.92 -4.08% 2.92% 962.59 1,026.68 1
2/28/98 1,113.63 0.84 -8.46% -1.46% 928.59 987.76 1
3/31/98 1,111.33 0.75 -11.04% -4.04% 915.60 969.37 1
4/30/98 1,110.75 0.67 -11.68% -4.68% 920.02 968.35 1
5/31/98 1,111.93 0.59 -10.38% -3.38% 937.77 980.04 1
6/30/98 1,110.87 0.50 -11.55% -4.55% 939.99 976.79 1
7/31/98 1,114.22 0.42 -7.77% -0.77% 966.68 996.79 1
8/31/98 1,126.88 0.33 9.71% 16.71% 1,031.47 1,053.01 1
9/30/98 1,123.32 0.25 4.19% 11.19% 1,010.41 1,027.11 1
10/31/98 1,117.97 0.17 -3.17% 3.83% 994.64 1,006.31 1
11/30/98 1,114.90 0.08 -6.96% 0.04% 993.89 1,000.04 1
12/31/98 1,114.87 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31-Mar-99
ENDEAVOR (AUSA) -ENHANCED INDEX 11:17 AM
PERFORMANCE CALCULATIONS Fund #170A Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
6 2.00%
Contract Charge Factor 0.000522 7 1.00%
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/1/97 1.000000 1000 1,000.00 1,000.00 1,576.43 6.00% 10.00%
5/31/97 1.068823 1000 1,068.82 0.00004290 0.04290411 1,068.78 1,576.43 6.00% 10.00%
6/30/97 1.116452 1000 1,116.45 0.00004290 0.045855058 1,116.36 1,576.43 6.00% 10.00%
7/31/97 1.207815 1000 1,207.82 0.00004433 0.049493038 1,207.67 1,576.43 6.00% 10.00%
8/31/97 1.144762 1000 1,144.76 0.00004433 0.053541025 1,144.57 1,576.43 6.00% 10.00%
9/30/97 1.194079 1000 1,194.08 0.00004290 0.049106696 1,193.83 1,576.43 6.00% 10.00%
10/31/97 1.154926 1000 1,154.93 0.00004433 0.052927471 1,154.63 1,576.43 6.00% 10.00%
11/30/97 1.203301 1000 1,203.30 0.00004290 0.049538391 1,202.94 1,576.43 6.00% 10.00%
12/31/97 1.217647 1000 1,217.65 0.00004433 0.053331595 1,217.23 1,576.43 6.00% 10.00%
1/31/98 1.234075 1000 1,234.08 0.00004433 0.05396506 1,233.60 1,576.43 7.00% 10.00%
2/28/98 1.321738 1000 1,321.74 0.00004004 0.04939809 1,321.18 1,576.43 7.00% 10.00%
3/31/98 1.388259 1000 1,388.26 0.00004433 0.058573531 1,387.61 1,576.43 7.00% 10.00%
4/30/98 1.407386 1000 1,407.39 0.00004290 0.059534369 1,406.67 1,576.43 7.00% 10.00%
5/31/98 1.389969 1000 1,389.97 0.00004433 0.062363796 1,389.20 1,576.43 7.00% 10.00%
6/30/98 1.436694 1000 1,436.69 0.00004290 0.059602503 1,435.84 1,576.43 7.00% 10.00%
7/31/98 1.424144 1000 1,424.14 0.00004433 0.063656986 1,423.24 1,576.43 7.00% 10.00%
8/31/98 1.216425 1000 1,216.43 0.00004433 0.063098099 1,215.59 1,576.43 7.00% 10.00%
9/30/98 1.293817 1000 1,293.82 0.00004290 0.052153652 1,292.87 1,576.43 7.00% 10.00%
10/31/98 1.397581 1000 1,397.58 0.00004433 0.057318545 1,396.50 1,576.43 7.00% 10.00%
11/30/98 1.491224 1000 1,491.22 0.00004290 0.059915754 1,490.01 1,576.43 7.00% 10.00%
12/31/98 1.577775 1000 1,577.78 0.00004433 0.066058682 1,576.43 1,576.43 7.00% 10.00%
12/31/98 1,576.43
<CAPTION>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
TOTAL RETURN 52.59% 57.64%
<S> <C> <C> <C> <C> <C> <C> <C>
5/1/97 1,525.89 1.67 28.82% 31.36% 1,525.89 1,576.43 2
5/31/97 1,521.76 1.59 24.95% 27.76% 1,423.83 1,474.98 2
6/30/97 1,518.91 1.50 22.72% 25.79% 1,360.59 1,412.11 2
7/31/97 1,513.43 1.42 17.24% 20.65% 1,253.18 1,305.35 2
8/31/97 1,517.21 1.33 23.52% 27.12% 1,325.58 1,377.31 2
9/30/97 1,514.26 1.25 20.91% 24.86% 1,268.41 1,320.48 2
10/31/97 1,516.61 1.17 26.32% 30.58% 1,313.50 1,365.31 2
11/30/97 1,513.71 1.08 23.59% 28.30% 1,258.34 1,310.48 2
12/31/97 1,512.85 1.00 24.29% 29.51% 1,242.86 1,295.09 2
1/31/98 1,490.08 0.92 20.79% 27.79% 1,188.69 1,251.57 1
2/28/98 1,483.95 0.84 12.32% 19.32% 1,102.30 1,159.61 1
3/31/98 1,479.30 0.75 6.61% 13.61% 1,049.39 1,100.89 1
4/30/98 1,477.96 0.67 5.07% 12.07% 1,033.74 1,079.48 1
5/31/98 1,479.19 0.59 6.48% 13.48% 1,037.48 1,076.94 1
6/30/98 1,475.92 0.50 2.79% 9.79% 1,013.98 1,048.22 1
7/31/98 1,476.80 0.42 3.76% 10.76% 1,015.61 1,043.78 1
8/31/98 1,491.34 0.33 22.68% 29.68% 1,070.72 1,090.77 1
9/30/98 1,485.93 0.25 14.93% 21.93% 1,035.70 1,051.25 1
10/31/98 1,478.67 0.17 5.88% 12.88% 1,009.60 1,020.46 1
11/30/98 1,472.13 0.08 -1.20% 5.80% 998.97 1,004.80 1
12/31/98 1,466.08 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR-MANAGED ASSET ALLOCATION SUBACCOUNT
PERFORMANCE CALCULATIONS SURRENDER PROVISIONS:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000 3 5.00%
4 4.00%
Additional .15% M&E factor 0.001500 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
---------------- 7 1.00%
0.002022
================
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
04/08/91 1.000000 1000 1,000.00 1,000.00 2,497.21 1.00%
04/30/91 1.002047 1000 1,002.05 0.000121874 0.121873973 1,001.93
05/31/91 1.005855 1000 1,005.86 0.000171732 0.172062112 1,005.56
06/30/91 1.005782 1000 1,005.78 0.000166192 0.167115907 1,005.32
07/31/91 1.009500 1000 1,009.50 0.000171732 0.172645205 1,008.86
08/31/91 1.018292 1000 1,018.29 0.000171732 0.173253762 1,017.48
09/30/91 1.026027 1000 1,026.03 0.000166192 0.169096375 1,025.04
10/31/91 1.054581 1000 1,054.58 0.000171732 0.176031162 1,053.39
11/30/91 1.030625 1000 1,030.63 0.000166192 0.175064344 1,029.28
12/31/91 1.125386 1000 1,125.39 0.000171732 0.176760414 1,123.74
01/31/92 1.147786 1000 1,147.79 0.000171732 0.192982327 1,145.92
02/28/92 1.159400 1000 1,159.40 0.000155112 0.177746132 1,157.34
03/31/92 1.125438 1000 1,125.44 0.000177271 0.205162406 1,123.23
04/30/92 1.127107 1000 1,127.11 0.000166192 0.186671501 1,124.71 2,497.21 1.00%
05/31/92 1.133736 1000 1,133.74 0.000171732 0.193147885 1,131.13 2,497.21 1.00%
06/30/92 1.105814 1000 1,105.81 0.000166192 0.187984549 1,103.08 2,497.21 1.00%
07/31/92 1.135926 1000 1,135.93 0.000171732 0.189434352 1,132.93 2,497.21 1.00%
08/31/92 1.118799 1000 1,118.80 0.000171732 0.194560235 1,115.66 2,497.21 1.00%
09/30/92 1.135264 1000 1,135.26 0.000166192 0.185412898 1,131.89 2,497.21 1.00%
10/31/92 1.152672 1000 1,152.67 0.000171732 0.194381103 1,149.05 2,497.21 1.00%
11/30/92 1.194573 1000 1,194.57 0.000166192 0.190962907 1,190.63 2,497.21 1.00%
12/31/92 1.209859 1000 1,209.86 0.000171732 0.204468663 1,205.66 2,497.21 1.00%
01/31/93 1.247765 1000 1,247.77 0.000171732 0.207049973 1,243.23 2,497.21 2.00%
02/28/93 1.252311 1000 1,252.31 0.000155112 0.192840049 1,247.57 2,497.21 2.00%
03/31/93 1.292821 1000 1,292.82 0.000171732 0.214246219 1,287.71 2,497.21 2.00%
04/30/93 1.277694 1000 1,277.69 0.000166192 0.214006359 1,272.43 2,497.21 2.00%
05/31/93 1.300898 1000 1,300.90 0.000171732 0.218515646 1,295.32 2,497.21 2.00%
06/30/93 1.313005 1000 1,313.01 0.000166192 0.215270853 1,307.16 2,497.21 2.00%
07/31/93 1.313466 1000 1,313.47 0.000171732 0.224479811 1,307.39 2,497.21 2.00%
08/31/93 1.357882 1000 1,357.88 0.000171732 0.224520076 1,351.38 2,497.21 2.00%
09/30/93 1.370998 1000 1,371.00 0.000166192 0.224587608 1,364.20 2,497.21 2.00%
10/31/93 1.379255 1000 1,379.26 0.000171732 0.234276931 1,372.19 2,497.21 2.00%
11/30/93 1.370744 1000 1,370.74 0.000166192 0.228046122 1,363.49 2,497.21 2.00%
12/31/93 1.393488 1000 1,393.49 0.000171732 0.234154381 1,385.88 2,497.21 2.00%
01/31/94 1.447326 1000 1,447.33 0.000171732 0.237999363 1,439.19 2,497.21 3.00%
02/28/94 1.411752 1000 1,411.75 0.000155112 0.223235598 1,403.59 2,497.21 3.00%
03/31/94 1.346957 1000 1,346.96 0.000171732 0.241040541 1,338.93 2,497.21 3.00%
04/30/94 1.325580 1000 1,325.58 0.000166192 0.222518845 1,317.46 2,497.21 3.00%
05/31/94 1.353171 1000 1,353.17 0.000171732 0.226248705 1,344.65 2,497.21 3.00%
06/30/94 1.291335 1000 1,291.34 0.000166192 0.223470054 1,282.98 2,497.21 3.00%
07/31/94 1.321961 1000 1,321.96 0.000171732 0.220328346 1,313.19 2,497.21 3.00%
08/31/94 1.361044 1000 1,361.04 0.000171732 0.225515935 1,351.79 2,497.21 3.00%
09/30/94 1.321696 1000 1,321.70 0.000166192 0.224655922 1,312.48 2,497.21 3.00%
10/31/94 1.339490 1000 1,339.49 0.000171732 0.225394539 1,329.93 2,497.21 3.00%
11/30/94 1.307991 1000 1,307.99 0.000166192 0.22102289 1,298.43 2,497.21 3.00%
12/31/94 1.301669 1000 1,301.67 0.000171732 0.222981612 1,291.93 2,497.21 3.00%
01/31/95 1.296224 1000 1,296.22 0.000171732 0.221865567 1,286.31 2,497.21 4.00%
02/28/95 1.333379 1000 1,333.38 0.000155112 0.199522023 1,322.98 2,497.21 4.00%
03/31/95 1.352977 1000 1,352.98 0.000171732 0.227196984 1,342.20 2,497.21 4.00%
04/30/95 1.372683 1000 1,372.68 0.000166192 0.223061911 1,361.52 2,497.21 4.00%
05/31/95 1.431401 1000 1,431.40 0.000171732 0.233816175 1,419.53 2,497.21 4.00%
06/30/95 1.487351 1000 1,487.35 0.000166192 0.235913963 1,474.78 2,497.21 4.00%
07/31/95 1.536287 1000 1,536.29 0.000171732 0.25326593 1,523.05 2,497.21 4.00%
</TABLE>
ERV of ERV of
W/D ERV Avg Ann Avg Ann $1,000 $1,000
Date Available W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
04/08/91 10.00% 2,489.71 7.74 12.51% 12.56% 2,489.71 2,497.21 7
04/30/91 TOTAL RETURN 148.97% 149.72%
05/31/91
06/30/91
07/31/91
08/31/91
09/30/91
10/31/91
11/30/91
12/31/91
01/31/92
02/28/92
03/31/92
04/30/92 10.00% 2,488.46 6.67 12.64% 12.70% 2,212.54 2,220.32 7
05/31/92 10.00% 2,488.39 6.59 12.71% 12.77% 2,199.92 2,207.71 7
06/30/92 10.00% 2,488.67 6.51 13.32% 13.38% 2,256.10 2,263.84 7
07/31/92 10.00% 2,488.38 6.42 13.03% 13.10% 2,196.40 2,204.20 7
08/31/92 10.00% 2,488.55 6.34 13.50% 13.56% 2,230.57 2,238.33 7
09/30/92 10.00% 2,488.39 6.25 13.42% 13.49% 2,198.44 2,206.23 7
10/31/92 10.00% 2,488.21 6.17 13.34% 13.41% 2,165.45 2,173.28 7
11/30/92 10.00% 2,487.80 6.09 12.87% 12.94% 2,089.48 2,097.38 7
12/31/92 10.00% 2,487.65 6.00 12.82% 12.90% 2,063.31 2,071.24 7
01/31/93 10.00% 2,477.34 5.92 12.36% 12.51% 1,992.67 2,008.65 6
02/28/93 10.00% 2,477.25 5.84 12.46% 12.62% 1,985.67 2,001.67 6
03/31/93 10.00% 2,476.45 5.76 12.03% 12.19% 1,923.15 1,939.27 6
04/30/93 10.00% 2,476.75 5.67 12.45% 12.62% 1,946.48 1,962.56 6
05/31/93 10.00% 2,476.30 5.59 12.29% 12.46% 1,911.73 1,927.88 6
06/30/93 10.00% 2,476.06 5.51 12.30% 12.47% 1,894.23 1,910.41 6
07/31/93 10.00% 2,476.05 5.42 12.50% 12.68% 1,893.89 1,910.07 6
08/31/93 10.00% 2,475.17 5.34 12.01% 12.19% 1,831.60 1,847.90 6
09/30/93 10.00% 2,474.92 5.25 12.00% 12.19% 1,814.18 1,830.52 6
10/31/93 10.00% 2,474.76 5.17 12.08% 12.28% 1,803.51 1,819.87 6
11/30/93 10.00% 2,474.93 5.09 12.43% 12.63% 1,815.14 1,831.48 6
12/31/93 10.00% 2,474.48 5.00 12.29% 12.49% 1,785.50 1,801.89 6
01/31/94 10.00% 2,461.52 4.92 11.53% 11.86% 1,710.36 1,735.15 5
02/28/94 10.00% 2,462.59 4.84 12.31% 12.64% 1,754.50 1,779.16 5
03/31/94 10.00% 2,464.53 4.76 13.69% 14.00% 1,840.68 1,865.08 5
04/30/94 10.00% 2,465.18 4.67 14.35% 14.66% 1,871.16 1,895.48 5
05/31/94 10.00% 2,464.36 4.59 14.11% 14.44% 1,832.71 1,857.14 5
06/30/94 10.00% 2,466.21 4.51 15.60% 15.92% 1,922.25 1,946.41 5
07/31/94 10.00% 2,465.30 4.42 15.31% 15.64% 1,877.34 1,901.64 5
08/31/94 10.00% 2,464.15 4.34 14.85% 15.20% 1,822.88 1,847.34 5
09/30/94 10.00% 2,465.33 4.25 15.97% 16.32% 1,878.37 1,902.66 5
10/31/94 10.00% 2,464.80 4.17 15.95% 16.31% 1,853.34 1,877.70 5
11/30/94 10.00% 2,465.75 4.09 16.99% 17.35% 1,899.02 1,923.25 5
12/31/94 10.00% 2,465.94 4.00 17.53% 17.90% 1,908.72 1,932.92 5
01/31/95 10.00% 2,455.74 3.92 17.95% 18.45% 1,909.14 1,941.38 4
02/28/95 10.00% 2,454.28 3.84 17.45% 17.99% 1,855.12 1,887.57 4
03/31/95 10.00% 2,453.51 3.76 17.42% 17.97% 1,827.98 1,860.54 4
04/30/95 10.00% 2,452.74 3.67 17.38% 17.95% 1,801.47 1,834.13 4
05/31/95 10.00% 2,450.42 3.59 16.43% 17.04% 1,726.22 1,759.18 4
06/30/95 10.00% 2,448.21 3.51 15.55% 16.20% 1,660.05 1,693.28 4
07/31/95 10.00% 2,446.27 3.42 14.85% 15.55% 1,606.17 1,639.61 4
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR-MANAGED ASSET ALLOCATION SUBACCOUNT
PERFORMANCE CALCULATIONS SURRENDER PROVISIONS:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000 3 5.00%
4 4.00%
Additional .15% M&E factor 0.001500 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
================ 7 1.00%
0.002022
================
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender W/D
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/95 1.545186 1000 1,545.19 0.000171732 0.261555252 1,531.61 2,497.21 4.00%
09/30/95 1.575578 1000 1,575.58 0.000166192 0.254540713 1,561.48 2,497.21 4.00%
10/31/95 1.555198 1000 1,555.20 0.000171732 0.268155093 1,541.01 2,497.21 4.00%
11/30/95 1.586410 1000 1,586.41 0.000166192 0.256103684 1,571.68 2,497.21 4.00%
12/31/95 1.577873 1000 1,577.87 0.000171732 0.269907686 1,562.96 2,497.21 4.00%
01/31/96 1.598155 1000 1,598.16 0.000171732 0.268408871 1,582.78 2,497.21 5.00%
02/29/96 1.618630 1000 1,618.63 0.000160652 0.254276592 1,602.80 2,497.21 5.00%
03/31/96 1.641961 1000 1,641.96 0.000171732 0.275251612 1,625.63 2,497.21 5.00%
04/30/96 1.683371 1000 1,683.37 0.000166192 0.270166288 1,666.36 2,497.21 5.00%
05/31/96 1.732391 1000 1,732.39 0.000171732 0.286166105 1,714.60 2,497.21 5.00%
06/30/96 1.703104 1000 1,703.10 0.000166192 0.284951766 1,685.32 2,497.21 5.00%
07/31/96 1.639296 1000 1,639.30 0.000171732 0.289423385 1,621.89 2,497.21 5.00%
08/31/96 1.674571 1000 1,674.57 0.000171732 0.27853023 1,656.52 2,497.21 5.00% 10.00%
09/30/96 1.753642 1000 1,753.64 0.000166192 0.275299275 1,734.46 2,497.21 5.00% 10.00%
10/31/96 1.762299 1000 1,762.30 0.000171732 0.297861212 1,742.72 2,497.21 5.00% 10.00%
11/30/96 1.869468 1000 1,869.47 0.000166192 0.289626267 1,848.41 2,497.21 5.00% 10.00%
12/31/96 1.833135 1000 1,833.14 0.000171732 0.317430595 1,812.17 2,497.21 5.00% 10.00%
01/31/97 1.912608 1000 1,912.61 0.000171732 0.311206837 1,890.42 2,497.21 6.00% 10.00%
02/28/97 1.893097 1000 1,893.10 0.000155112 0.29322804 1,870.85 2,497.21 6.00% 10.00%
03/31/97 1.795829 1000 1,795.83 0.000171732 0.321283184 1,774.40 2,497.21 6.00% 10.00%
04/30/97 1.894514 1000 1,894.51 0.000166192 0.294890676 1,871.61 2,497.21 6.00% 10.00%
05/23/97 1.998344 1000 1,998.34 0.000127414 0.238469059 1,973.95 2,497.21 6.00% 10.00%
05/31/97 2.001625 1000 2,001.63 0.000011441 0.021413297 1,977.41 2,497.21 6.00% 10.00%
06/30/97 2.028296 1000 2,028.30 0.000042904 0.084838895 2,003.67 2,497.21 6.00% 10.00%
07/31/97 2.201626 1000 2,201.63 0.000044334 0.088831229 2,174.81 2,497.21 6.00% 10.00%
08/31/97 2.090547 1000 2,090.55 0.000044334 0.09641845 2,064.99 2,497.21 6.00% 10.00%
09/30/97 2.150147 1000 2,150.15 0.000042904 0.088596348 2,123.77 2,497.21 6.00% 10.00%
10/31/97 2.097661 1000 2,097.66 0.000044334 0.094155644 2,071.83 2,497.21 6.00% 10.00%
11/30/97 2.162310 1000 2,162.31 0.000042904 0.088890087 2,135.60 2,497.21 6.00% 10.00%
12/31/97 2.169995 1000 2,170.00 0.000044334 0.094680022 2,143.09 2,497.21 6.00% 10.00%
01/31/98 2.219647 1000 2,219.65 0.000044334 0.095012323 2,192.03 2,497.21 7.00% 10.00%
02/28/98 2.336224 1000 2,336.22 0.000040044 0.087777384 2,307.07 2,497.21 7.00% 10.00%
03/31/98 2.392105 1000 2,392.11 0.000044334 0.102282266 2,362.15 2,497.21 7.00% 10.00%
04/30/98 2.424838 1000 2,424.84 0.000042904 0.101346056 2,394.37 2,497.21 7.00% 10.00%
05/31/98 2.383065 1000 2,383.07 0.000044334 0.106152787 2,353.02 2,497.21 7.00% 10.00%
06/30/98 2.449225 1000 2,449.23 0.000042904 0.100954232 2,418.25 2,497.21 7.00% 10.00%
07/31/98 2.404461 1000 2,404.46 0.000044334 0.107211071 2,373.94 2,497.21 7.00% 10.00%
08/31/98 2.130942 1000 2,130.94 0.000044334 0.105246842 2,103.79 2,497.21 7.00% 10.00%
09/30/98 2.205870 1000 2,205.87 0.000042904 0.090261137 2,177.67 2,497.21 7.00% 10.00%
10/31/98 2.311386 1000 2,311.39 0.000044334 0.096545386 2,281.74 2,497.21 7.00% 10.00%
11/30/98 2.405924 1000 2,405.92 0.000042904 0.097896074 2,374.97 2,497.21 7.00% 10.00%
12/31/98 2.529863 1000 2,529.86 0.000044334 0.105292452 2,497.21 2,497.21 7.00% 10.00%
12/31/98 2,497.21
</TABLE>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
08/31/95 10.00% 2,445.93 3.34 15.06% 15.78% 1,596.97 1,630.45 4
09/30/95 10.00% 2,444.74 3.25 14.77% 15.52% 1,565.66 1,599.26 4
10/31/95 10.00% 2,445.56 3.17 15.68% 16.45% 1,586.98 1,620.50 4
11/30/95 10.00% 2,444.33 3.09 15.38% 16.18% 1,555.23 1,588.87 4
12/31/95 10.00% 2,444.68 3.00 16.06% 16.89% 1,564.14 1,597.75 4
01/31/96 10.00% 2,430.55 2.92 15.84% 16.92% 1,535.63 1,577.74 3
02/29/96 10.00% 2,429.55 2.84 15.78% 16.91% 1,515.82 1,558.03 3
03/31/96 10.00% 2,428.41 2.75 15.69% 16.87% 1,493.83 1,536.15 3
04/30/96 10.00% 2,426.38 2.67 15.10% 16.35% 1,456.10 1,498.60 3
05/31/96 10.00% 2,423.96 2.59 14.32% 15.65% 1,413.72 1,456.44 3
06/30/96 10.00% 2,425.43 2.50 15.65% 17.00% 1,439.15 1,481.74 3
07/31/96 10.00% 2,428.60 2.42 18.16% 19.53% 1,497.39 1,539.69 3
08/31/96 10.00% 2,426.87 2.33 17.77% 19.22% 1,465.04 1,507.51 3
09/30/96 10.00% 2,422.97 2.25 16.00% 17.57% 1,396.96 1,439.76 3
10/31/96 10.00% 2,422.56 2.17 16.41% 18.06% 1,390.10 1,432.93 3
11/30/96 10.00% 2,417.27 2.08 13.73% 15.52% 1,307.76 1,351.00 3
12/31/96 10.00% 2,419.09 2.00 15.54% 17.39% 1,334.91 1,378.02 3
01/31/97 10.00% 2,398.77 1.92 13.24% 15.65% 1,268.90 1,320.98 2
02/28/97 10.00% 2,399.94 1.84 14.51% 17.01% 1,282.81 1,334.80 2
03/31/97 10.00% 2,405.73 1.75 18.96% 21.52% 1,355.80 1,407.35 2
04/30/97 10.00% 2,399.89 1.67 16.04% 18.83% 1,282.26 1,334.25 2
05/23/97 10.00% 2,393.75 1.61 12.74% 15.74% 1,212.67 1,265.08 2
05/31/97 10.00% 2,393.55 1.59 12.79% 15.85% 1,210.45 1,262.87 2
06/30/97 10.00% 2,391.97 1.50 12.50% 15.77% 1,193.79 1,246.32 2
07/31/97 10.00% 2,381.70 1.42 6.61% 10.23% 1,095.13 1,148.24 2
08/31/97 10.00% 2,388.29 1.33 11.52% 15.31% 1,156.57 1,209.31 2
09/30/97 10.00% 2,384.77 1.25 9.70% 13.81% 1,122.89 1,175.84 2
10/31/97 10.00% 2,387.88 1.17 12.94% 17.35% 1,152.55 1,205.31 2
11/30/97 10.00% 2,384.06 1.08 10.68% 15.51% 1,116.34 1,169.33 2
12/31/97 10.00% 2,383.61 1.00 11.22% 16.52% 1,112.23 1,165.24 2
01/31/98 10.00% 2,343.77 0.92 6.92% 13.92% 1,063.16 1,126.68 1
02/28/98 10.00% 2,335.71 0.84 1.24% 8.24% 1,010.40 1,068.65 1
03/31/98 10.00% 2,331.86 0.75 -1.28% 5.72% 990.32 1,042.78 1
04/30/98 10.00% 2,329.60 0.67 -2.71% 4.29% 981.76 1,028.63 1
05/31/98 10.00% 2,332.50 0.59 -0.87% 6.13% 994.88 1,035.48 1
06/30/98 10.00% 2,327.93 0.50 -3.73% 3.27% 981.00 1,016.33 1
07/31/98 10.00% 2,331.03 0.42 -1.81% 5.19% 992.38 1,021.45 1
08/31/98 10.00% 2,349.94 0.33 11.70% 18.70% 1,037.68 1,058.97 1
09/30/98 10.00% 2,344.77 0.25 7.67% 14.67% 1,018.81 1,035.11 1
10/31/98 10.00% 2,337.49 0.17 2.44% 9.44% 1,004.04 1,015.19 1
11/30/98 10.00% 2,330.96 0.08 -1.85% 5.15% 998.41 1,004.27 1
12/31/98 10.00% 2,322.40 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - INTERNATIONAL STOCK
PERFORMANCE CALCULATIONS
Surrender provisions:
Year Rate
<S> <C> <C>
Initial Investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000 3 5.00%
4 4.00%
Additional .15% M&E factor 0.001500 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
------------- 7 1.00%
0.002022
=============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
04/08/91 1.000000 1000 1,000.00 1,000.00 1,509.54 1.00% 10.00%
04/30/91 1.002047 1000 1,002.05 0.000121874 0.121873973 1,001.93
05/31/91 1.005857 1000 1,005.86 0.000171732 0.172062112 1,005.56
06/30/91 1.008776 1000 1,008.78 0.000166192 0.167116239 1,008.31
07/31/91 1.011492 1000 1,011.49 0.000171732 0.173159219 1,010.86
08/31/91 1.015303 1000 1,015.30 0.000171732 0.173595691 1,014.49
09/30/91 1.018076 1000 1,018.08 0.000166192 0.168599938 1,017.09
10/31/91 1.014887 1000 1,014.89 0.000171732 0.174666812 1,013.73
11/30/91 0.993945 1000 993.95 0.000166192 0.168473897 992.65
12/31/91 1.041235 1000 1,041.24 0.000171732 0.170468454 1,039.70
01/31/92 1.046928 1000 1,046.93 0.000171732 0.178549742 1,045.21
02/28/92 1.039888 1000 1,039.89 0.000155112 0.162124794 1,038.02
03/31/92 0.995220 1000 995.22 0.000177271 0.184010799 993.25
04/30/92 1.008861 1000 1,008.86 0.000166192 0.165069435 1,006.70 1,509.54 1.00% 10.00%
05/31/92 1.027434 1000 1,027.43 0.000171732 0.172881347 1,025.06 1,509.54 1.00% 10.00%
06/30/92 0.990793 1000 990.79 0.000166192 0.170355852 988.33 1,509.54 1.00% 10.00%
07/31/92 0.969988 1000 969.99 0.000171732 0.169727276 967.41 1,509.54 1.00% 10.00%
08/31/92 0.969826 1000 969.83 0.000171732 0.166134139 967.08 1,509.54 1.00% 10.00%
09/30/92 0.944181 1000 944.18 0.000166192 0.160720511 941.35 1,509.54 1.00% 10.00%
10/31/92 0.945062 1000 945.06 0.000171732 0.161658683 942.06 1,509.54 1.00% 10.00%
11/30/92 0.961574 1000 961.57 0.000166192 0.156562995 958.37 1,509.54 1.00% 10.00%
12/31/92 0.989782 1000 989.78 0.000171732 0.164581505 986.31 1,509.54 1.00% 10.00%
01/31/93 1.006274 1000 1,006.27 0.000171732 0.169381278 1,002.58 1,509.54 2.00% 10.00%
02/28/93 1.017888 1000 1,017.89 0.000155112 0.155512419 1,014.00 1,509.54 2.00% 10.00%
03/31/93 1.070220 1000 1,070.22 0.000171732 0.174134925 1,065.95 1,509.54 2.00% 10.00%
04/30/93 1.078733 1000 1,078.73 0.000166192 0.177152616 1,074.25 1,509.54 2.00% 10.00%
05/31/93 1.104813 1000 1,104.81 0.000171732 0.184483402 1,100.04 1,509.54 2.00% 10.00%
06/30/93 1.078167 1000 1,078.17 0.000166192 0.182817954 1,073.33 1,509.54 2.00% 10.00%
07/31/93 1.086638 1000 1,086.64 0.000171732 0.184324293 1,081.58 1,509.54 2.00% 10.00%
08/31/93 1.133770 1000 1,133.77 0.000171732 0.185740847 1,128.30 1,509.54 2.00% 10.00%
09/30/93 1.154739 1000 1,154.74 0.000166192 0.187514808 1,148.98 1,509.54 2.00% 10.00%
10/31/93 1.156364 1000 1,156.36 0.000171732 0.197316775 1,150.40 1,509.54 2.00% 10.00%
11/30/93 1.100872 1000 1,100.87 0.000166192 0.191187641 1,095.01 1,509.54 2.00% 10.00%
12/31/93 1.156482 1000 1,156.48 0.000171732 0.188047124 1,150.13 1,509.54 2.00% 10.00%
01/31/94 1.194618 1000 1,194.62 0.000171732 0.197513937 1,187.86 1,509.54 3.00% 10.00%
02/28/94 1.188532 1000 1,188.53 0.000155112 0.184251933 1,181.63 1,509.54 3.00% 10.00%
03/31/94 1.121762 1000 1,121.76 0.000171732 0.202922323 1,115.04 1,509.54 3.00% 10.00%
04/30/94 1.139726 1000 1,139.73 0.000166192 0.185310575 1,132.71 1,509.54 3.00% 10.00%
05/31/94 1.123951 1000 1,123.95 0.000171732 0.19452227 1,116.84 1,509.54 3.00% 10.00%
06/30/94 1.105423 1000 1,105.42 0.000166192 0.18560949 1,098.24 1,509.54 3.00% 10.00%
07/31/94 1.129079 1000 1,129.08 0.000171732 0.18860289 1,121.56 1,509.54 3.00% 10.00%
08/31/94 1.168756 1000 1,168.76 0.000171732 0.192606594 1,160.78 1,509.54 3.00% 10.00%
09/30/94 1.148328 1000 1,148.33 0.000166192 0.192911527 1,140.30 1,509.54 3.00% 10.00%
10/31/94 1.165091 1000 1,165.09 0.000171732 0.195824602 1,156.75 1,509.54 3.00% 10.00%
11/30/94 1.095187 1000 1,095.19 0.000166192 0.19224152 1,087.15 1,509.54 3.00% 10.00%
12/31/94 1.073958 1000 1,073.96 0.000171732 0.186697832 1,065.89 1,509.54 3.00% 10.00%
01/31/95 1.022291 1000 1,022.29 0.000171732 0.183046837 1,014.43 1,509.54 4.00% 10.00%
02/28/95 1.033539 1000 1,033.54 0.000155112 0.157350254 1,025.43 1,509.54 4.00% 10.00%
03/31/95 1.072135 1000 1,072.14 0.000171732 0.176098966 1,063.55 1,509.54 4.00% 10.00%
04/30/95 1.074784 1000 1,074.78 0.000166192 0.176753111 1,066.00 1,509.54 4.00% 10.00%
05/31/95 1.104019 1000 1,104.02 0.000171732 0.183065801 1,094.81 1,509.54 4.00% 10.00%
06/30/95 1.096954 1000 1,096.95 0.000166192 0.181948937 1,087.63 1,509.54 4.00% 10.00%
07/31/95 1.156533 1000 1,156.53 0.000171732 0.18677949 1,146.51 1,509.54 4.00% 10.00%
08/31/95 1.128147 1000 1,128.15 0.000171732 0.196891991 1,118.17 1,509.54 4.00% 10.00%
09/30/95 1.142326 1000 1,142.33 0.000166192 0.185831277 1,132.04 1,509.54 4.00% 10.00%
10/31/95 1.123605 1000 1,123.61 0.000171732 0.194407194 1,113.29 1,509.54 4.00% 10.00%
11/30/95 1.131939 1000 1,131.94 0.000166192 0.18502042 1,121.37 1,509.54 4.00% 10.00%
12/31/95 1.171039 1000 1,171.04 0.000171732 0.192574071 1,159.91 1,509.54 4.00% 10.00%
01/31/96 1.201232 1000 1,201.23 0.000171732 0.19919299 1,189.62 1,509.54 5.00% 10.00%
02/29/96 1.207573 1000 1,207.57 0.000160652 0.191114296 1,195.70 1,509.54 5.00% 10.00%
03/31/96 1.228259 1000 1,228.26 0.000171732 0.205340191 1,215.98 1,509.54 5.00% 10.00%
04/30/96 1.264057 1000 1,264.06 0.000166192 0.202086244 1,251.22 1,509.54 5.00% 10.00%
05/31/96 1.258826 1000 1,258.83 0.000171732 0.214873944 1,245.83 1,509.54 5.00% 10.00%
</TABLE>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
04/08/91 1,501.05 7.74 5.39% 5.47% 1,501.05 1,509.54 7
04/30/91 TOTAL RETURN 50.10% 50.95%
05/31/91
06/30/91
07/31/91
08/31/91
09/30/91
10/31/91
11/30/91
12/31/91
01/31/92
02/28/92
03/31/92
04/30/92 1,500.98 6.67 6.17% 6.26% 1,491.00 1,499.50 7
05/31/92 1,500.80 6.59 5.96% 6.05% 1,464.11 1,472.64 7
06/30/92 1,501.16 6.51 6.63% 6.73% 1,518.89 1,527.36 7
07/31/92 1,501.37 6.42 7.08% 7.17% 1,551.96 1,560.40 7
08/31/92 1,501.38 6.34 7.19% 7.28% 1,552.49 1,560.93 7
09/30/92 1,501.63 6.25 7.75% 7.84% 1,595.20 1,603.60 7
10/31/92 1,501.63 6.17 7.85% 7.94% 1,593.98 1,602.38 7
11/30/92 1,501.46 6.09 7.65% 7.75% 1,566.69 1,575.12 7
12/31/92 1,501.18 6.00 7.25% 7.35% 1,522.01 1,530.48 7
01/31/93 1,492.51 5.92 6.95% 7.16% 1,488.67 1,505.65 6
02/28/93 1,492.28 5.84 6.84% 7.05% 1,471.68 1,488.70 6
03/31/93 1,491.24 5.76 6.01% 6.23% 1,398.97 1,416.14 6
04/30/93 1,491.07 5.67 5.95% 6.18% 1,388.01 1,405.20 6
05/31/93 1,490.56 5.59 5.59% 5.83% 1,355.00 1,372.26 6
06/30/93 1,491.09 5.51 6.15% 6.39% 1,389.22 1,406.41 6
07/31/93 1,490.93 5.42 6.10% 6.34% 1,378.47 1,395.68 6
08/31/93 1,489.99 5.34 5.35% 5.61% 1,320.56 1,337.88 6
09/30/93 1,489.58 5.25 5.06% 5.33% 1,296.43 1,313.80 6
10/31/93 1,489.55 5.17 5.12% 5.40% 1,294.81 1,312.18 6
11/30/93 1,490.66 5.09 6.25% 6.51% 1,361.32 1,378.57 6
12/31/93 1,489.55 5.00 5.31% 5.59% 1,295.12 1,312.49 6
01/31/94 1,478.43 4.92 4.55% 4.99% 1,244.62 1,270.80 5
02/28/94 1,478.62 4.84 4.74% 5.19% 1,251.34 1,277.51 5
03/31/94 1,480.62 4.76 6.14% 6.58% 1,327.86 1,353.80 5
04/30/94 1,480.09 4.67 5.89% 6.34% 1,306.67 1,332.68 5
05/31/94 1,480.56 4.59 6.34% 6.79% 1,325.67 1,351.62 5
06/30/94 1,481.12 4.51 6.86% 7.31% 1,348.63 1,374.50 5
07/31/94 1,480.42 4.42 6.48% 6.95% 1,319.97 1,345.93 5
08/31/94 1,479.24 4.34 5.75% 6.24% 1,274.36 1,300.46 5
09/30/94 1,479.86 4.25 6.32% 6.82% 1,297.79 1,323.81 5
10/31/94 1,479.36 4.17 6.08% 6.59% 1,278.90 1,304.99 5
11/30/94 1,481.45 4.09 7.86% 8.36% 1,362.69 1,388.53 5
12/31/94 1,482.09 4.00 8.58% 9.08% 1,390.47 1,416.22 5
01/31/95 1,475.00 3.92 10.03% 10.68% 1,454.02 1,488.07 4
02/28/95 1,474.56 3.84 9.92% 10.59% 1,437.99 1,472.10 4
03/31/95 1,473.03 3.76 9.06% 9.77% 1,385.02 1,419.34 4
04/30/95 1,472.94 3.67 9.20% 9.93% 1,381.74 1,416.08 4
05/31/95 1,471.78 3.59 8.59% 9.36% 1,344.32 1,378.81 4
06/30/95 1,472.07 3.51 9.01% 9.80% 1,353.47 1,387.92 4
07/31/95 1,469.72 3.42 7.53% 8.37% 1,281.90 1,316.64 4
08/31/95 1,470.85 3.34 8.56% 9.41% 1,315.40 1,350.00 4
09/30/95 1,470.29 3.25 8.36% 9.24% 1,298.80 1,333.47 4
10/31/95 1,471.04 3.17 9.19% 10.08% 1,321.34 1,355.92 4
11/30/95 1,470.72 3.09 9.18% 10.11% 1,311.54 1,346.16 4
12/31/95 1,469.18 3.00 8.19% 9.17% 1,266.63 1,301.43 4
01/31/96 1,457.61 2.92 7.21% 8.51% 1,225.27 1,268.93 3
02/29/96 1,457.30 2.84 7.22% 8.56% 1,218.78 1,262.47 3
03/31/96 1,456.29 2.75 6.77% 8.17% 1,197.62 1,241.41 3
04/30/96 1,454.53 2.67 5.80% 7.28% 1,162.49 1,206.45 3
05/31/96 1,454.79 2.59 6.18% 7.71% 1,167.73 1,211.68 3
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - INTERNATIONAL STOCK
PERFORMANCE CALCULATIONS
Surrender provisions:
Year Rate
<S> <C> <C>
Initial Investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000 3 5.00%
4 4.00%
Additional .15% M&E factor 0.001500 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
------------- 7 1.00%
0.002022
=============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/30/96 1.272856 1000 1,272.86 0.000166192 0.207046296 1,259.51 1,509.54 5.00% 10.00%
07/31/96 1.229037 1000 1,229.04 0.000171732 0.216296797 1,215.93 1,509.54 5.00% 10.00%
08/31/96 1.246802 1000 1,246.80 0.000171732 0.208813476 1,233.30 1,509.54 5.00% 10.00%
09/30/96 1.273090 1000 1,273.09 0.000166192 0.204963765 1,259.09 1,509.54 5.00% 10.00%
10/31/96 1.265850 1000 1,265.85 0.000171732 0.216226269 1,251.72 1,509.54 5.00% 10.00%
11/30/96 1.321756 1000 1,321.76 0.000166192 0.208025292 1,306.79 1,509.54 5.00% 10.00%
12/31/96 1.330640 1000 1,330.64 0.000171732 0.224417384 1,315.35 1,509.54 5.00% 10.00%
01/31/97 1.314776 1000 1,314.78 0.000171732 0.225887234 1,299.44 1,509.54 6.00% 10.00%
02/28/97 1.331460 1000 1,331.46 0.000155112 0.201559713 1,315.73 1,509.54 6.00% 10.00%
03/31/97 1.325135 1000 1,325.14 0.000171732 0.225952538 1,309.26 1,509.54 6.00% 10.00%
04/30/97 1.331217 1000 1,331.22 0.000166192 0.217587449 1,315.05 1,509.54 6.00% 10.00%
05/23/97 1.432514 1000 1,432.51 0.000127414 0.167554965 1,414.95 1,509.54 6.00% 10.00%
05/31/97 1.414071 1000 1,414.07 0.00001144 0.015045575 1,396.88 1,509.54 6.00% 10.00%
06/30/97 1.473097 1000 1,473.10 0.00004290 0.05993186 1,455.13 1,509.54 6.00% 10.00%
07/31/97 1.508311 1000 1,508.31 0.00004433 0.064511989 1,489.85 1,509.54 6.00% 10.00%
08/31/97 1.369505 1000 1,369.51 0.00004433 0.066051272 1,352.67 1,509.54 6.00% 10.00%
09/30/97 1.455993 1000 1,455.99 0.00004290 0.058035304 1,438.04 1,509.54 6.00% 10.00%
10/31/97 1.341210 1000 1,341.21 0.00004433 0.063754499 1,324.61 1,509.54 6.00% 10.00%
11/30/97 1.337735 1000 1,337.74 0.00004290 0.056831222 1,321.12 1,509.54 6.00% 10.00%
12/31/97 1.345339 1000 1,345.34 0.00004433 0.058570922 1,328.57 1,509.54 6.00% 10.00%
01/31/98 1.385214 1000 1,385.21 0.00004433 0.058901256 1,367.89 1,509.54 7.00% 10.00%
02/28/98 1.466641 1000 1,466.64 0.00004004 0.054775624 1,448.25 1,509.54 7.00% 10.00%
03/31/98 1.518391 1000 1,518.39 0.00004433 0.064206873 1,499.28 1,509.54 7.00% 10.00%
04/30/98 1.530593 1000 1,530.59 0.00004290 0.064325368 1,511.27 1,509.54 7.00% 10.00%
05/31/98 1.518569 1000 1,518.57 0.00004433 0.067000854 1,499.33 1,509.54 7.00% 10.00%
06/30/98 1.516518 1000 1,516.52 0.00004290 0.064327296 1,497.24 1,509.54 7.00% 10.00%
07/31/98 1.530702 1000 1,530.70 0.00004433 0.06637891 1,511.18 1,509.54 7.00% 10.00%
08/31/98 1.334044 1000 1,334.04 0.00004433 0.06699681 1,316.96 1,509.54 7.00% 10.00%
09/30/98 1.296328 1000 1,296.33 0.00004290 0.056502946 1,279.67 1,509.54 7.00% 10.00%
10/31/98 1.411192 1000 1,411.19 0.00004433 0.056733177 1,393.00 1,509.54 7.00% 10.00%
11/30/98 1.480296 1000 1,480.30 0.00004290 0.059765448 1,461.15 1,509.54 7.00% 10.00%
12/31/98 1.529380 1000 1,529.38 0.00004433 0.064779161 1,509.54 1,509.54 7.00% 10.00%
12/31/98 1,509.54
</TABLE>
ERV of ERV of
ERV Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr n W/ Surr W/O Surr W/ Surr W/O Surr
06/30/96 1,454.11 2.50 5.91% 7.50% 1,154.51 1,198.52 3
07/31/96 1,456.29 2.42 7.74% 9.35% 1,197.68 1,241.47 3
08/31/96 1,455.42 2.33 7.35% 9.04% 1,180.11 1,223.99 3
09/30/96 1,454.13 2.25 6.60% 8.39% 1,154.90 1,198.91 3
10/31/96 1,454.50 2.17 7.17% 9.03% 1,162.00 1,205.97 3
11/30/96 1,451.75 2.08 5.17% 7.16% 1,110.92 1,155.15 3
12/31/96 1,451.32 2.00 5.04% 7.13% 1,103.37 1,147.63 3
01/31/97 1,440.63 1.92 5.53% 8.14% 1,108.65 1,161.68 2
02/28/97 1,439.65 1.84 5.02% 7.76% 1,094.18 1,147.30 2
03/31/97 1,440.04 1.75 5.58% 8.46% 1,099.89 1,152.97 2
04/30/97 1,439.69 1.67 5.57% 8.60% 1,094.78 1,147.90 2
05/23/97 1,433.70 1.61 0.82% 4.11% 1,013.25 1,066.85 2
05/31/97 1,434.78 1.59 1.70% 5.01% 1,027.13 1,080.65 2
06/30/97 1,431.29 1.50 -1.09% 2.47% 983.62 1,037.39 2
07/31/97 1,429.20 1.42 -2.89% 0.93% 959.30 1,013.22 2
08/31/97 1,437.44 1.33 4.66% 8.57% 1,062.66 1,115.97 2
09/30/97 1,432.31 1.25 -0.32% 3.95% 996.02 1,049.72 2
10/31/97 1,439.12 1.17 7.36% 11.85% 1,086.45 1,139.61 2
11/30/97 1,439.33 1.08 8.22% 13.08% 1,089.47 1,142.62 2
12/31/97 1,438.88 1.00 8.30% 13.62% 1,083.03 1,136.21 2
01/31/98 1,413.79 0.92 3.36% 10.36% 1,030.66 1,094.35 1
02/28/98 1,408.16 0.84 -2.77% 4.23% 976.74 1,035.36 1
03/31/98 1,404.59 0.75 -6.32% 0.68% 952.03 1,005.15 1
04/30/98 1,403.75 0.67 -7.11% -0.11% 951.67 999.23 1
05/31/98 1,404.59 0.59 -6.32% 0.68% 962.45 1,003.99 1
06/30/98 1,404.73 0.50 -6.18% 0.82% 968.36 1,004.13 1
07/31/98 1,403.76 0.42 -7.11% -0.11% 969.56 999.55 1
08/31/98 1,417.35 0.33 7.62% 14.62% 1,024.86 1,046.67 1
09/30/98 1,419.96 0.25 10.96% 17.96% 1,026.57 1,042.52 1
10/31/98 1,412.03 0.17 1.37% 8.37% 1,002.27 1,013.52 1
11/30/98 1,407.26 0.08 -3.69% 3.31% 996.81 1,002.77 1
12/31/98 1,403.87 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
<PAGE>
<TABLE>
<S> <C> <C> <C>
AUSA ENDEAVOR - GROWTH 31-Mar-99 SURRENDER PROVISIONS:
PERFORMANCE CALCULATIONS 11:19 AM Year Rate
Fund #70A 1 7.00%
2 6.00%
INITIAL INVESTMENT $1,000.00 3 5.00%
4 4.00%
Additional .15% M&E factor 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
-------------- 7 1.00%
0.000522 8 8.00%
==============
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Month Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr
- ------- ------- ---------- ---------- ------------- ------------ ------- ------------ ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FUND DISTRIBUTIONS:
REINVEST REINVEST
DIV PR/SH NAV SHARES SHARE BASE
($1000 @ $10.00 ON 10/02/86) 100.000000
12/86 0.00000000 0.000 0.000 100.000000
12/87 0.10828100 11.141 0.972 100.971924
12/88 0.24573400 12.970 1.913 102.884985
12/89 1.21966700 17.851 7.030 109.914666
12/90 0.33265900 17.479 2.092 112.006544
12/91 1.66402600 26.086 7.145 119.151405
12/92 0.00138300 24.616 0.007 119.158099
12/92 1.04649900 25.930 4.809 123.967156
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
n W/ Surr W/O Surr W/ Surr W/O Surr
- ------------------------------------------------
<S> <C> <C> <C> <C>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Month Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------ --------- ------------ --------- ----------- ----------- ---------- ------------ ----------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/2/86 10.000000 100.000 1,000.00 1,000.00 8,436.20 0.00% 10.00% 8,436.20 12.25
10/31/86 10.242480 100.000 1,024.25 1.15 1,023.09 8,436.20 0.00% 10.00% 8,436.20 12.18
11/30/86 10.178265 100.000 1,017.83 1.22 1,015.46 8,436.20 0.00% 10.00% 8,436.20 12.09
12/31/86 10.143918 100.000 1,014.39 1.25 1,010.78 8,436.20 0.00% 10.00% 8,436.20 12.01
1/31/87 11.099823 100.000 1,109.98 1.25 1,104.78 8,436.20 0.00% 10.00% 8,436.20 11.92
2/28/87 11.941933 100.000 1,194.19 1.23 1,187.37 8,436.20 0.00% 10.00% 8,436.20 11.85
3/31/87 12.253046 100.000 1,225.30 1.46 1,216.84 8,436.20 0.00% 10.00% 8,436.20 11.76
4/30/87 12.326861 100.000 1,232.69 1.45 1,222.72 8,436.20 0.00% 10.00% 8,436.20 11.68
5/31/87 12.584261 100.000 1,258.43 1.51 1,246.74 8,436.20 0.00% 10.00% 8,436.20 11.59
6/30/87 13.053930 100.000 1,305.39 1.49 1,291.78 8,436.20 0.00% 10.00% 8,436.20 11.51
7/31/87 13.768105 100.000 1,376.81 1.59 1,360.86 8,436.20 0.00% 10.00% 8,436.20 11.43
8/31/87 14.383761 100.000 1,438.38 1.68 1,420.04 8,436.20 0.00% 10.00% 8,436.20 11.34
9/30/87 14.382060 100.000 1,438.21 1.69 1,418.17 8,436.20 0.00% 10.00% 8,436.20 11.26
10/31/87 11.350889 100.000 1,135.09 1.75 1,117.53 8,436.20 0.00% 10.00% 8,436.20 11.18
11/30/87 10.884572 100.000 1,088.46 1.47 1,070.15 8,436.20 TOTAL RETURN
12/31/87 11.140893 100.972 1,124.92 1.32 1,104.67 8,436.20 0.00% 10.00% 8,436.20 11.01
1/31/88 11.262292 100.972 1,137.18 1.36 1,115.35 8,436.20 0.00% 10.00% 8,436.20 10.92
2/28/88 11.558128 100.972 1,167.05 1.24 1,143.40 8,436.20 0.00% 10.00% 8,436.20 10.85
3/31/88 11.539389 100.972 1,165.15 1.46 1,140.09 8,436.20 0.00% 10.00% 8,436.20 10.76
4/30/88 11.749717 100.972 1,186.39 1.36 1,159.51 8,436.20 0.00% 10.00% 8,436.20 10.68
5/31/88 11.798150 100.972 1,191.28 1.43 1,162.86 8,436.20 0.00% 10.00% 8,436.20 10.59
6/30/88 12.349026 100.972 1,246.90 1.39 1,215.77 8,436.20 0.00% 10.00% 8,436.20 10.51
7/31/88 12.293135 100.972 1,241.26 1.50 1,208.77 8,436.20 0.00% 10.00% 8,436.20 10.42
8/31/88 12.118060 100.972 1,223.58 1.49 1,190.06 8,436.20 0.00% 10.00% 8,436.20 10.34
9/30/88 12.924912 100.972 1,305.05 1.42 1,267.88 8,436.20 0.00% 10.00% 8,436.20 10.26
10/31/88 12.979238 100.972 1,310.54 1.56 1,271.65 8,436.20 0.00% 10.00% 8,436.20 10.17
11/30/88 12.742550 100.972 1,286.64 1.52 1,246.94 8,436.20 0.00% 10.00% 8,436.20 10.09
12/31/88 12.969913 102.885 1,334.41 1.54 1,291.70 8,436.20 0.00% 10.00% 8,436.20 10.01
<CAPTION>
743.62% 724.58%
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Month Yr W/ Surr W/O Surr W/ Surr W/O Surr
- ------ ---------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
10/2/86 19.01% 19.01% 8,436.20 8,436.20 12
10/31/86 18.92% 18.92% 8,245.77 8,245.77 12
11/30/86 19.13% 19.13% 8,307.78 8,307.78 12
12/31/86 19.33% 19.33% 8,346.23 8,346.23 12
1/31/87 18.59% 18.59% 7,636.07 7,636.07 11
2/28/87 18.00% 18.00% 7,104.96 7,104.96 11
3/31/87 17.90% 17.90% 6,932.89 6,932.89 11
4/30/87 17.98% 17.98% 6,899.56 6,899.56 11
5/31/87 17.93% 17.93% 6,766.61 6,766.61 11
6/30/87 17.70% 17.70% 6,530.67 6,530.67 12
7/31/87 17.31% 17.31% 6,199.16 6,199.16 12
8/31/87 17.01% 17.01% 5,940.84 5,940.84 12
9/30/87 17.16% 17.16% 5,948.64 5,948.64 12
10/31/87 19.83% 19.83% 7,548.98 7,548.98 12
11/30/87 553.11% 553.11%
12/31/87 20.28% 20.28% 7,636.83 7,636.83 12
1/31/88 20.35% 20.35% 7,563.74 7,563.74 11
2/28/88 20.23% 20.23% 7,378.15 7,378.15 11
3/31/88 20.45% 20.45% 7,399.56 7,399.56 11
4/30/88 20.43% 20.43% 7,275.64 7,275.64 11
5/31/88 20.57% 20.57% 7,254.68 7,254.68 11
6/30/88 20.24% 20.24% 6,938.97 6,938.97 11
7/31/88 20.49% 20.49% 6,979.16 6,979.16 11
8/31/88 20.85% 20.85% 7,088.86 7,088.86 11
9/30/88 20.29% 20.29% 6,653.78 6,653.78 11
10/31/88 20.44% 20.44% 6,634.08 6,634.08 11
11/30/88 20.86% 20.86% 6,765.53 6,765.53 11
12/31/88 20.63% 20.63% 6,531.10 6,531.10 11
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
AUSA ENDEAVOR - GROWTH 31-Mar-99 SURRENDER PROVISIONS:
PERFORMANCE CALCULATIONS 11:19 AM Year Rate
Fund #70A 1 7.00%
2 6.00%
INITIAL INVESTMENT $1,000.00 3 5.00%
4 4.00%
Additional .15% M&E factor 5 3.00%
Contract Charge Factor 0.000522 6 2.00%
-------------- 7 1.00%
0.000522
==============
</TABLE>
<TABLE>
<CAPTION>
Ending Free
Gross Admin/ Redeemable Surrender W/D ERV
Month Yr Fund NAV Shares Value Mthly M/E ERV Value Charge Available W/ Surr n
- ------ --------- ------------ --------- ----------- ----------- ---------- ------------ ----------- ---------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/31/89 13.797157 102.885 1,419.52 1.59 1,372.49 8,436.20 0.00% 10.00% 8,436.20 9.92
2/28/89 13.699227 102.885 1,409.44 1.53 1,361.22 8,436.20 0.00% 10.00% 8,436.20 9.84
3/31/89 14.507994 102.885 1,492.65 1.68 1,439.90 8,436.20 0.00% 10.00% 8,436.20 9.76
4/30/89 15.485756 102.885 1,593.25 1.72 1,535.23 8,436.20 0.00% 10.00% 8,436.20 9.68
5/31/89 16.831921 102.885 1,731.75 1.89 1,666.79 8,436.20 0.00% 10.00% 8,436.20 9.59
6/30/89 16.418542 102.885 1,689.22 1.99 1,623.86 8,436.20 0.00% 10.00% 8,436.20 9.51
7/31/89 18.076256 102.885 1,859.78 2.00 1,785.82 8,436.20 0.00% 10.00% 8,436.20 9.42
8/31/89 19.196966 102.885 1,975.08 2.20 1,894.33 8,436.20 0.00% 10.00% 8,436.20 9.34
9/30/89 19.972520 102.885 2,054.87 2.26 1,968.60 8,436.20 0.00% 10.00% 8,436.20 9.26
10/31/89 19.066423 102.885 1,961.65 2.43 1,876.87 8,436.20 0.00% 10.00% 8,436.20 9.17
11/30/89 19.230784 102.885 1,978.56 2.24 1,890.80 8,436.20 0.00% 10.00% 8,436.20 9.09
12/31/89 17.850799 109.915 1,962.06 2.33 1,872.71 8,436.20 0.00% 10.00% 8,436.20 9.01
1/31/90 16.301313 109.915 1,791.75 2.31 1,707.84 8,436.20 0.00% 10.00% 8,436.20 8.92
2/28/90 16.717816 109.915 1,837.53 1.90 1,749.58 8,436.20 0.00% 10.00% 8,436.20 8.84
3/31/90 17.394768 109.915 1,911.94 2.16 1,818.27 8,436.20 0.00% 10.00% 8,436.20 8.76
4/30/90 17.552402 109.915 1,929.27 2.17 1,832.57 8,436.20 0.00% 10.00% 8,436.20 8.68
5/31/90 19.412925 109.915 2,133.77 2.26 2,024.56 8,436.20 0.00% 10.00% 8,436.20 8.59
6/30/90 19.881337 109.915 2,185.25 2.42 2,071.00 8,436.20 0.00% 10.00% 8,436.20 8.51
7/31/90 19.238628 109.915 2,114.61 2.55 2,001.49 8,436.20 0.00% 10.00% 8,436.20 8.42
8/31/90 17.312376 109.915 1,902.88 2.47 1,798.63 8,436.20 0.00% 10.00% 8,436.20 8.34
9/30/90 16.581488 109.915 1,822.55 2.15 1,720.54 8,436.20 0.00% 10.00% 8,436.20 8.26
10/31/90 16.144908 109.915 1,774.56 2.12 1,673.12 8,436.20 0.00% 10.00% 8,436.20 8.17
11/30/90 16.986867 109.915 1,867.11 2.00 1,758.38 8,436.20 0.00% 10.00% 8,436.20 8.09
12/31/90 17.479079 112.007 1,957.77 2.17 1,841.60 8,436.20 0.00% 10.00% 8,436.20 8.01
1/31/91 18.562905 112.007 2,079.17 2.27 1,953.52 8,436.20 0.00% 10.00% 8,436.20 7.92
2/28/91 20.096951 112.007 2,250.99 2.18 2,112.78 8,436.20 0.00% 10.00% 8,436.20 7.84
3/31/91 21.114275 112.007 2,364.94 2.61 2,217.12 8,436.20 0.00% 10.00% 8,436.20 7.76
4/30/91 21.195645 112.007 2,374.05 2.65 2,223.02 8,436.20 0.00% 10.00% 8,436.20 7.68
5/31/91 22.353555 112.007 2,503.74 2.74 2,341.72 8,436.20 0.00% 10.00% 8,436.20 7.59
6/30/91 21.233106 112.007 2,378.25 2.80 2,221.55 8,436.20 0.00% 10.00% 8,436.20 7.51
7/31/91 22.860955 112.007 2,560.58 2.74 2,389.13 8,436.20 0.00% 10.00% 8,436.20 7.42
8/31/91 24.093541 112.007 2,698.63 2.95 2,514.99 8,436.20 0.00% 10.00% 8,436.20 7.34
9/30/91 24.117922 112.007 2,701.37 3.00 2,514.54 8,436.20 0.00% 10.00% 8,436.20 7.26
10/31/91 25.230014 112.007 2,825.93 3.10 2,627.38 8,436.20 0.00% 10.00% 8,436.20 7.17
11/30/91 24.199800 112.007 2,710.54 3.14 2,516.96 8,436.20 0.00% 10.00% 8,436.20 7.09
12/31/91 26.255817 119.151 3,128.42 3.10 2,901.90 8,436.20 0.00% 10.00% 8,436.20 7.01
1/31/92 25.593236 119.151 3,049.47 3.95 2,824.72 8,436.20 1.00% 10.00% 8,416.39 6.92
2/29/92 25.397891 119.151 3,026.19 3.60 2,799.56 8,436.20 1.00% 10.00% 8,416.64 6.84
3/31/92 24.544017 119.151 2,924.45 3.81 2,701.63 8,436.20 1.00% 10.00% 8,417.62 6.76
4/30/92 24.400719 119.151 2,907.38 3.56 2,682.30 8,436.20 1.00% 10.00% 8,417.82 6.67
5/31/92 25.110607 119.151 2,991.96 3.65 2,756.69 8,436.20 1.00% 10.00% 8,417.07 6.59
6/30/92 24.436151 119.151 2,911.60 3.63 2,679.01 8,436.20 1.00% 10.00% 8,417.85 6.51
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Month Yr W/ Surr W/O Surr W/ Surr W/O Surr
- ------- ------- -------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
1/31/89 20.09% 20.09% 6,146.64 6,146.64 10
2/28/89 20.36% 20.36% 6,197.53 6,197.53 10
3/31/89 19.86% 19.86% 5,858.87 5,858.87 10
4/30/89 19.25% 19.25% 5,495.09 5,495.09 10
5/31/89 18.42% 18.42% 5,061.35 5,061.35 10
6/30/89 18.92% 18.92% 5,195.14 5,195.14 10
7/31/89 17.91% 17.91% 4,724.00 4,724.00 10
8/31/89 17.34% 17.34% 4,453.39 4,453.39 10
9/30/89 17.02% 17.02% 4,285.38 4,285.38 10
10/31/89 17.80% 17.80% 4,494.84 4,494.84 10
11/30/89 17.88% 17.88% 4,461.70 4,461.70 10
12/31/89 18.19% 18.19% 4,504.81 4,504.81 10
1/31/90 19.61% 19.61% 4,939.68 4,939.68 9
2/28/90 19.47% 19.47% 4,821.85 4,821.85 9
3/31/90 19.15% 19.15% 4,639.70 4,639.70 9
4/30/90 19.24% 19.24% 4,603.48 4,603.48 9
5/31/90 18.07% 18.07% 4,166.93 4,166.93 9
6/30/90 17.95% 17.95% 4,073.50 4,073.50 9
7/31/90 18.62% 18.62% 4,214.96 4,214.96 9
8/31/90 20.36% 20.36% 4,690.36 4,690.36 9
9/30/90 21.23% 21.23% 4,903.22 4,903.22 9
10/31/90 21.89% 21.89% 5,042.19 5,042.19 9
11/30/90 21.39% 21.39% 4,797.72 4,797.72 9
12/31/90 20.94% 20.94% 4,580.92 4,580.92 9
1/31/91 20.29% 20.29% 4,318.47 4,318.47 8
2/28/91 19.30% 19.30% 3,992.94 3,992.94 8
3/31/91 18.80% 18.80% 3,805.02 3,805.02 8
4/30/91 18.97% 18.97% 3,794.93 3,794.93 8
5/31/91 18.39% 18.39% 3,602.56 3,602.56 8
6/30/91 19.44% 19.44% 3,797.44 3,797.44 8
7/31/91 18.52% 18.52% 3,531.08 3,531.08 8
8/31/91 17.93% 17.93% 3,354.36 3,354.36 8
9/30/91 18.15% 18.15% 3,354.97 3,354.97 8
10/31/91 17.66% 17.66% 3,210.88 3,210.88 8
11/30/91 18.60% 18.60% 3,351.74 3,351.74 8
12/31/91 16.45% 16.45% 2,907.13 2,907.13 8
1/31/92 17.09% 17.13% 2,979.55 2,986.56 7
2/29/92 17.46% 17.50% 3,006.41 3,013.40 7
3/31/92 18.32% 18.36% 3,115.76 3,122.63 7
4/30/92 18.69% 18.73% 3,138.28 3,145.14 7
5/31/92 18.46% 18.50% 3,053.33 3,060.27 7
6/30/92 19.24% 19.28% 3,142.15 3,149.00 7
</TABLE>
Effective 7/1/92 Janus Growth began with
AUV = to $10.00
ERV @ 6/30/92 / $10.00 AUV 267.901 Shares
<TABLE>
<CAPTION>
Ending
Contract Redeemable
AUV Acct Value Charge Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/31/92 10.090579 2,703.28 0.46 2,702.82 8,436.20 1.00% 10.00% 8,417.61 6.42 19.35%
8/31/92 9.819286 2,630.60 0.46 2,629.69 8,436.20 1.00% 10.00% 8,418.34 6.34 20.15%
9/30/92 9.889039 2,649.29 0.44 2,647.93 8,436.20 1.00% 10.00% 8,418.16 6.25 20.31%
10/31/92 10.039500 2,689.60 0.45 2,687.77 8,436.20 1.00% 10.00% 8,417.76 6.17 20.33%
11/30/92 10.621351 2,845.47 0.45 2,843.09 8,436.20 1.00% 10.00% 8,416.21 6.09 19.52%
12/31/92 10.839753 2,903.98 0.49 2,901.06 8,436.20 1.00% 10.00% 8,415.63 6.00 19.41%
1/31/93 10.999669 2,946.83 0.50 2,943.36 8,436.20 2.00% 10.00% 8,394.21 5.92 19.37%
2/28/93 10.535633 2,822.51 0.46 2,818.74 8,436.20 2.00% 10.00% 8,396.70 5.84 20.55%
3/31/93 10.794261 2,891.80 0.48 2,887.45 8,436.20 2.00% 10.00% 8,395.33 5.76 20.37%
4/30/93 10.334927 2,768.74 0.48 2,764.10 8,436.20 2.00% 10.00% 8,397.79 5.67 21.63%
5/31/93 10.681999 2,861.72 0.47 2,856.45 8,436.20 2.00% 10.00% 8,395.95 5.59 21.28%
6/30/93 10.866888 2,911.25 0.47 2,905.41 8,436.20 2.00% 10.00% 8,394.97 5.51 21.25%
7/31/93 10.825063 2,900.05 0.50 2,893.73 8,436.20 2.00% 10.00% 8,395.20 5.42 21.71%
8/31/93 11.044325 2,958.79 0.50 2,951.85 8,436.20 2.00% 10.00% 8,394.04 5.34 21.63%
9/30/93 11.255563 3,015.38 0.49 3,007.82 8,436.20 2.00% 10.00% 8,392.92 5.25 21.57%
<CAPTION>
<S> <C> <C> <C> <C>
7/31/92 19.39% 3,114.38 3,121.26 7
8/31/92 20.20% 3,201.27 3,208.06 7
9/30/92 20.35% 3,179.15 3,185.96 7
10/31/92 20.37% 3,131.88 3,138.74 7
11/30/92 19.56% 2,960.23 2,967.26 7
12/31/92 19.46% 2,900.88 2,907.97 7
1/31/93 19.47% 2,851.91 2,866.18 6
2/28/93 20.64% 2,978.89 2,992.90 6
3/31/93 20.47% 2,907.52 2,921.68 6
4/30/93 21.73% 3,038.17 3,052.06 6
5/31/93 21.38% 2,939.30 2,953.39 6
6/30/93 21.36% 2,889.42 2,903.62 6
7/31/93 21.82% 2,901.17 2,915.34 6
8/31/93 21.75% 2,843.66 2,857.94 6
9/30/93 21.68% 2,790.37 2,804.76 6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ending
Contract Redeemable
AUV Acct Value Charge Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/93 11.229805 3,008.48 0.52 3,000.42 8,436.20 2.00% 10.00% 8,393.07 5.17 22.01%
11/30/93 10.876928 2,913.94 0.50 2,905.63 8,436.20 2.00% 10.00% 8,394.96 5.09 23.19%
12/31/93 11.114865 2,977.69 0.50 2,968.70 8,436.20 2.00% 10.00% 8,393.70 5.00 23.09%
1/31/94 11.627506 3,115.02 0.51 3,105.11 8,436.20 3.00% 10.00% 8,368.36 4.92 22.34%
2/28/94 11.325864 3,034.21 0.48 3,024.07 8,436.20 3.00% 10.00% 8,370.79 4.84 23.41%
3/31/94 10.540923 2,823.93 0.52 2,813.97 8,436.20 3.00% 10.00% 8,377.09 4.76 25.78%
4/30/94 10.402986 2,786.97 0.47 2,776.68 8,436.20 3.00% 10.00% 8,378.21 4.67 26.65%
5/31/94 10.278529 2,753.63 0.48 2,742.98 8,436.20 3.00% 10.00% 8,379.22 4.59 27.55%
6/30/94 9.878571 2,646.48 0.46 2,635.79 8,436.20 3.00% 10.00% 8,382.44 4.51 29.27%
7/31/94 10.147571 2,718.55 0.45 2,707.12 8,436.20 3.00% 10.00% 8,380.30 4.42 29.12%
8/31/94 10.506138 2,814.61 0.46 2,802.31 8,436.20 3.00% 10.00% 8,377.44 4.34 28.72%
9/30/94 10.189892 2,729.89 0.47 2,717.49 8,436.20 3.00% 10.00% 8,379.99 4.25 30.30%
10/31/94 10.558856 2,828.73 0.47 2,815.42 8,436.20 3.00% 10.00% 8,377.05 4.17 29.89%
11/30/94 10.100823 2,706.02 0.47 2,692.82 8,436.20 3.00% 10.00% 8,380.73 4.09 32.02%
12/31/94 10.051117 2,692.71 0.46 2,679.11 8,436.20 3.00% 10.00% 8,381.14 4.00 32.97%
1/31/95 10.097501 2,705.13 0.46 2,691.01 8,436.20 4.00% 10.00% 8,362.31 3.92 33.56%
2/28/95 10.395779 2,785.04 0.42 2,770.09 8,436.20 4.00% 10.00% 8,359.14 3.84 33.31%
3/31/95 10.667939 2,857.96 0.48 2,842.13 8,436.20 4.00% 10.00% 8,356.26 3.76 33.26%
4/30/95 11.069355 2,965.50 0.47 2,948.60 8,436.20 4.00% 10.00% 8,352.00 3.67 32.76%
5/31/95 11.526595 3,087.99 0.51 3,069.89 8,436.20 4.00% 10.00% 8,347.15 3.59 32.14%
6/30/95 12.336729 3,305.03 0.51 3,285.15 8,436.20 4.00% 10.00% 8,338.54 3.51 30.42%
7/31/95 13.303877 3,564.13 0.56 3,542.13 8,436.20 4.00% 10.00% 8,328.26 3.42 28.38%
8/31/95 13.207702 3,538.36 0.61 3,515.91 8,436.20 4.00% 10.00% 8,329.31 3.34 29.49%
9/30/95 13.934020 3,732.94 0.58 3,708.67 8,436.20 4.00% 10.00% 8,321.60 3.25 28.19%
10/31/95 14.125630 3,784.28 0.64 3,759.04 8,436.20 4.00% 10.00% 8,319.59 3.17 28.48%
11/30/95 14.629643 3,919.30 0.62 3,892.54 8,436.20 4.00% 10.00% 8,314.25 3.09 27.86%
12/31/95 14.583843 3,907.03 0.67 3,879.68 8,436.20 4.00% 10.00% 8,314.76 3.00 28.90%
1/31/96 14.897474 3,991.05 0.67 3,962.45 8,436.20 5.00% 10.00% 8,280.26 2.92 28.74%
2/29/96 15.406433 4,127.40 0.64 4,097.19 8,436.20 5.00% 10.00% 8,273.53 2.84 28.09%
3/31/96 15.249099 4,085.25 0.70 4,054.64 8,436.20 5.00% 10.00% 8,275.65 2.75 29.58%
4/30/96 16.102638 4,313.92 0.67 4,280.92 8,436.20 5.00% 10.00% 8,264.34 2.67 27.92%
5/31/96 16.885226 4,523.58 0.74 4,488.23 8,436.20 5.00% 10.00% 8,253.97 2.59 26.56%
6/30/96 16.692266 4,471.88 0.75 4,436.20 8,436.20 5.00% 10.00% 8,256.57 2.50 28.16%
7/31/96 15.279144 4,093.30 0.76 4,059.88 8,436.20 5.00% 10.00% 8,275.39 2.42 34.23%
8/31/96 15.841578 4,243.98 0.70 4,208.63 8,436.20 5.00% 10.00% 8,267.95 2.33 33.55%
9/30/96 16.916710 4,532.01 0.70 4,493.56 8,436.20 5.00% 10.00% 8,253.71 2.25 30.99%
10/31/96 16.744430 4,485.86 0.77 4,447.03 8,436.20 5.00% 10.00% 8,256.03 2.17 33.04%
11/30/96 17.614316 4,718.90 0.74 4,677.31 8,436.20 5.00% 10.00% 8,244.52 2.08 31.24%
12/31/96 16.964068 4,544.70 0.80 4,503.84 8,436.20 5.00% 10.00% 8,253.19 2.00 35.37%
1/31/97 17.791193 4,766.28 0.77 4,722.67 8,436.20 6.00% 10.00% 8,203.46 1.92 33.42%
2/28/97 17.257241 4,623.24 0.73 4,580.20 8,436.20 6.00% 10.00% 8,212.01 1.84 37.38%
3/31/97 16.180408 4,334.75 0.79 4,293.61 8,436.20 6.00% 10.00% 8,229.20 1.75 44.92%
4/30/97 17.103217 4,581.98 0.71 4,537.77 8,436.20 6.00% 10.00% 8,214.55 1.67 42.63%
5/23/97 17.103217 4,581.98 0.58 4,537.19 8,436.20 6.00% 10.00% 8,214.59 1.61 44.64%
5/31/97 18.046761 4,834.75 0.05 4,788.06 8,436.20 6.00% 10.00% 8,199.54 1.59 40.37%
6/30/97 18.783533 5,032.13 0.21 4,983.33 8,436.20 6.00% 10.00% 8,187.82 1.50 39.11%
7/31/97 20.674334 5,538.68 0.22 5,484.74 8,436.20 6.00% 10.00% 8,157.74 1.42 32.28%
8/31/97 19.130242 5,125.02 0.24 5,074.86 8,436.20 6.00% 10.00% 8,182.33 1.33 43.05%
9/30/97 20.490891 5,489.54 0.22 5,435.60 8,436.20 6.00% 10.00% 8,160.68 1.25 38.34%
10/31/97 19.325553 5,177.34 0.24 5,126.23 8,436.20 6.00% 10.00% 8,179.25 1.17 49.23%
11/30/97 19.592657 5,248.90 0.22 5,196.86 8,436.20 6.00% 10.00% 8,175.01 1.08 51.83%
12/31/97 19.647490 5,263.59 0.23 5,211.17 8,436.20 6.00% 10.00% 8,174.15 1.00 56.86%
1/31/98 20.421229 5,470.88 0.23 5,416.16 8,436.20 7.00% 10.00% 8,057.07 0.92 48.76%
2/28/98 22.158156 5,936.20 0.22 5,876.62 8,436.20 7.00% 10.00% 8,024.84 0.84 36.56%
3/31/98 23.428103 6,276.42 0.26 6,213.16 8,436.20 7.00% 10.00% 8,001.28 0.75 28.78%
4/30/98 24.831256 6,652.33 0.27 6,585.02 8,436.20 7.00% 10.00% 7,975.25 0.67 21.11%
5/31/98 24.071323 6,448.74 0.29 6,383.20 8,436.20 7.00% 10.00% 7,989.38 0.59 25.16%
6/30/98 26.524439 7,105.93 0.27 7,033.44 8,436.20 7.00% 10.00% 7,943.86 0.50 12.94%
7/31/98 27.240135 7,297.67 0.31 7,222.91 8,436.20 7.00% 10.00% 7,930.60 0.42 9.80%
8/31/98 22.600863 6,054.80 0.32 5,992.45 8,436.20 7.00% 10.00% 8,016.73 0.33 33.78%
9/30/98 24.816595 6,648.40 0.26 6,579.68 8,436.20 7.00% 10.00% 7,975.63 0.25 21.22%
10/31/98 25.710806 6,887.96 0.29 6,816.47 8,436.20 7.00% 10.00% 7,959.05 0.17 16.76%
11/30/98 27.362506 7,330.45 0.29 7,254.08 8,436.20 7.00% 10.00% 7,928.42 0.08 9.30%
12/31/98 31.822714 8,525.35 0.32 8,436.20 8,436.20 7.00% 10.00% 7,845.67 0.00 -7.00%
12/31/98 8,436.20
<CAPTION>
<S> <C> <C> <C> <C>
10/31/93 22.14% 2,797.30 2,811.68 6
11/30/93 23.31% 2,889.20 2,903.40 6
12/31/93 23.22% 2,827.40 2,841.72 6
1/31/94 22.54% 2,695.03 2,716.88 5
2/28/94 23.60% 2,768.05 2,789.68 5
3/31/94 25.97% 2,976.96 2,997.97 5
4/30/94 26.84% 3,017.35 3,038.23 5
5/31/94 27.74% 3,054.78 3,075.56 5
6/30/94 29.45% 3,180.23 3,200.63 5
7/31/94 29.31% 3,095.66 3,116.31 5
8/31/94 28.93% 2,989.48 3,010.45 5
9/30/94 30.51% 3,083.72 3,104.41 5
10/31/94 30.11% 2,975.42 2,996.43 5
11/30/94 32.23% 3,112.25 3,132.85 5
12/31/94 33.18% 3,128.33 3,148.89 5
1/31/95 33.86% 3,107.50 3,134.96 4
2/28/95 33.63% 3,017.65 3,045.47 4
3/31/95 33.60% 2,940.14 2,968.27 4
4/30/95 33.13% 2,832.53 2,861.09 4
5/31/95 32.53% 2,719.04 2,748.04 4
6/30/95 30.86% 2,538.26 2,567.98 4
7/31/95 28.87% 2,351.21 2,381.68 4
8/31/95 29.99% 2,369.03 2,399.44 4
9/30/95 28.72% 2,243.82 2,274.72 4
10/31/95 29.05% 2,213.22 2,244.25 4
11/30/95 28.47% 2,135.95 2,167.28 4
12/31/95 29.52% 2,143.16 2,174.46 4
1/31/96 29.56% 2,089.68 2,129.04 3
2/29/96 28.98% 2,019.32 2,059.02 3
3/31/96 30.49% 2,041.03 2,080.63 3
4/30/96 28.91% 1,930.51 1,970.65 3
5/31/96 27.64% 1,839.02 1,879.63 3
6/30/96 29.26% 1,861.18 1,901.67 3
7/31/96 35.30% 2,038.33 2,077.94 3
8/31/96 34.70% 1,964.52 2,004.50 3
9/30/96 32.27% 1,836.79 1,877.40 3
10/31/96 34.37% 1,856.53 1,897.04 3
11/30/96 32.70% 1,762.66 1,803.64 3
12/31/96 36.86% 1,832.48 1,873.11 3
1/31/97 35.38% 1,737.04 1,786.32 2
2/28/97 39.41% 1,792.94 1,841.89 2
3/31/97 46.99% 1,916.62 1,964.83 2
4/30/97 44.92% 1,810.26 1,859.11 2
5/23/97 47.06% 1,810.50 1,859.34 2
5/31/97 42.91% 1,712.50 1,761.93 2
6/30/97 41.91% 1,643.04 1,692.89 2
7/31/97 35.44% 1,487.35 1,538.12 2
8/31/97 46.36% 1,612.32 1,662.35 2
9/30/97 42.06% 1,501.34 1,552.03 2
10/31/97 53.24% 1,595.57 1,645.69 2
11/30/97 56.29% 1,573.07 1,623.33 2
12/31/97 61.89% 1,568.58 1,618.87 2
1/31/98 55.76% 1,438.26 1,500.06 1
2/28/98 43.56% 1,298.49 1,354.06 1
3/31/98 35.78% 1,209.93 1,259.16 1
4/30/98 28.11% 1,137.20 1,180.91 1
5/31/98 32.16% 1,140.64 1,177.62 1
6/30/98 19.94% 1,063.28 1,096.01 1
7/31/98 16.80% 1,039.96 1,067.25 1
8/31/98 40.78% 1,102.16 1,121.11 1
9/30/98 28.22% 1,049.69 1,064.65 1
10/31/98 23.76% 1,026.24 1,036.27 1
11/30/98 16.30% 1,007.58 1,012.90 1
12/31/98 0.00% 1,000.00 1,000.00 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - VALUE EQUITY
PERFORMANCE CALCULATIONS
<S> <C> <C>
Initial investment $1,000
AUV 1.000000 Surrender provisions:
Units purchased 1,000.000 Year Rate
1 7.00%
2 6.00%
Additional .15% M&E factor 0.001500 3 5.00%
Contract Charge Factor 0.000522 4 4.00%
------------ 5 3.00%
0.002022 6 2.00%
============ 7 1.00%
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05/27/93 1.000000 1000 1,000.00 1,000.00 2,188.56 2.00% 10.00% 2,172.94 5.60
05/31/93 0.999050 1000 999.05 0.00002216 0.022158904 999.03 2,188.56 2.00% 10.00% 2,172.96 5.59
06/30/93 1.004782 1000 1,004.78 0.00016619 0.166030216 1,004.59 2,188.56 2.00% 10.00% 2,172.85 5.51
07/31/93 0.997653 1000 997.65 0.00017173 0.172520387 997.29 2,188.56 2.00% 10.00% 2,172.99 5.42
08/31/93 1.021325 1000 1,021.33 0.00017173 0.171266715 1,020.79 2,188.56 2.00% 10.00% 2,172.52 5.34
09/30/93 1.009223 1000 1,009.22 0.00016619 0.169646194 1,008.52 2,188.56 2.00% 10.00% 2,172.77 5.25
10/31/93 1.012084 1000 1,012.08 0.00017173 0.173194736 1,011.21 2,188.56 2.00% 10.00% 2,172.72 5.17
11/30/93 1.008866 1000 1,008.87 0.00016619 0.168054169 1,007.82 2,188.56 2.00% 10.00% 2,172.78 5.09
12/31/93 1.018576 1000 1,018.58 0.00017173 0.173074962 1,017.35 2,188.56 2.00% 10.00% 2,172.59 5.00
01/31/94 1.046074 1000 1,046.07 0.00017173 0.174711028 1,044.64 2,188.56 3.00% 10.00% 2,163.79 4.92
02/28/94 1.035073 1000 1,035.07 0.00015511 0.162036554 1,033.49 2,188.56 3.00% 10.00% 2,164.12 4.84
03/31/94 0.998303 1000 998.30 0.00017173 0.177483158 996.60 2,188.56 3.00% 10.00% 2,165.23 4.76
04/30/94 1.031724 1000 1,031.72 0.00016619 0.16562686 1,029.80 2,188.56 3.00% 10.00% 2,164.23 4.67
05/31/94 1.046247 1000 1,046.25 0.00017173 0.176848965 1,044.12 2,188.56 3.00% 10.00% 2,163.80 4.59
06/30/94 1.011559 1000 1,011.56 0.00016619 0.173523869 1,009.33 2,188.56 3.00% 10.00% 2,164.85 4.51
07/31/94 1.032087 1000 1,032.09 0.00017173 0.173333296 1,029.64 2,188.56 3.00% 10.00% 2,164.24 4.42
08/31/94 1.075994 1000 1,075.99 0.00017173 0.176821056 1,073.26 2,188.56 3.00% 10.00% 2,162.93 4.34
09/30/94 1.043354 1000 1,043.35 0.00016619 0.178367423 1,040.53 2,188.56 3.00% 10.00% 2,163.91 4.25
10/31/94 1.064670 1000 1,064.67 0.00017173 0.178691286 1,061.61 2,188.56 3.00% 10.00% 2,163.28 4.17
11/30/94 1.030159 1000 1,030.16 0.00016619 0.176430299 1,027.02 2,188.56 3.00% 10.00% 2,164.32 4.09
12/31/94 1.045610 1000 1,045.61 0.00017173 0.176371437 1,042.25 2,188.56 3.00% 10.00% 2,163.86 4.00
01/31/95 1.073646 1000 1,073.65 0.00017173 0.178986483 1,070.01 2,188.56 4.00% 10.00% 2,154.52 3.92
02/28/95 1.115441 1000 1,115.44 0.00015511 0.165972186 1,111.50 2,188.56 4.00% 10.00% 2,152.86 3.84
03/31/95 1.141416 1000 1,141.42 0.00017173 0.190879647 1,137.19 2,188.56 4.00% 10.00% 2,151.83 3.76
04/30/95 1.152859 1000 1,152.86 0.00016619 0.188992098 1,148.40 2,188.56 4.00% 10.00% 2,151.38 3.67
05/31/95 1.220199 1000 1,220.20 0.00017173 0.197217232 1,215.29 2,188.56 4.00% 10.00% 2,148.71 3.59
06/30/95 1.261038 1000 1,261.04 0.00016619 0.201970722 1,255.76 2,188.56 4.00% 10.00% 2,147.09 3.51
07/31/95 1.311545 1000 1,311.55 0.00017173 0.215653505 1,305.84 2,188.56 4.00% 10.00% 2,145.08 3.42
08/31/95 1.309995 1000 1,310.00 0.00017173 0.224253809 1,304.07 2,188.56 4.00% 10.00% 2,145.15 3.34
09/30/95 1.339871 1000 1,339.87 0.00016619 0.216726069 1,333.60 2,188.56 4.00% 10.00% 2,143.97 3.25
10/31/95 1.309888 1000 1,309.89 0.00017173 0.229020506 1,303.52 2,188.56 4.00% 10.00% 2,145.18 3.17
11/30/95 1.368933 1000 1,368.93 0.00016619 0.216635094 1,362.07 2,188.56 4.00% 10.00% 2,142.83 3.09
12/31/95 1.387903 1000 1,387.90 0.00017173 0.233909689 1,380.71 2,188.56 4.00% 10.00% 2,142.09 3.00
01/31/96 1.455329 1000 1,455.33 0.00017173 0.237110925 1,447.55 2,188.56 5.00% 10.00% 2,127.13 2.92
02/29/96 1.483885 1000 1,483.89 0.00016065 0.232551318 1,475.72 2,188.56 5.00% 10.00% 2,125.72 2.84
03/31/96 1.509467 1000 1,509.47 0.00017173 0.253427144 1,500.90 2,188.56 5.00% 10.00% 2,124.46 2.75
04/30/96 1.511511 1000 1,511.51 0.00016619 0.249438073 1,502.69 2,188.56 5.00% 10.00% 2,124.37 2.67
05/31/96 1.549864 1000 1,549.86 0.00017173 0.258058868 1,540.56 2,188.56 5.00% 10.00% 2,122.48 2.59
06/30/96 1.542260 1000 1,542.26 0.00016619 0.256028248 1,532.74 2,188.56 5.00% 10.00% 2,122.87 2.50
07/31/96 1.481871 1000 1,481.87 0.00017173 0.263220548 1,472.47 2,188.56 5.00% 10.00% 2,125.88 2.42
08/31/96 1.541527 1000 1,541.53 0.00017173 0.252868636 1,531.49 2,188.56 5.00% 10.00% 2,122.93 2.33
09/30/96 1.600985 1000 1,600.99 0.00016619 0.254520965 1,590.31 2,188.56 5.00% 10.00% 2,119.99 2.25
10/31/96 1.628709 1000 1,628.71 0.00017173 0.273105613 1,617.57 2,188.56 5.00% 10.00% 2,118.63 2.17
11/30/96 1.711712 1000 1,711.71 0.00016619 0.268827134 1,699.74 2,188.56 5.00% 10.00% 2,114.52 2.08
12/31/96 1.694854 1000 1,694.85 0.00017173 0.291898631 1,682.71 2,188.56 5.00% 10.00% 2,115.37 2.00
01/31/97 1.754824 1000 1,754.82 0.00017173 0.288973704 1,741.96 2,188.56 6.00% 10.00% 2,097.18 1.92
02/28/97 1.755903 1000 1,755.90 0.00015511 0.270199099 1,742.76 2,188.56 6.00% 10.00% 2,097.13 1.84
</TABLE>
<TABLE>
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr W/O Surr W/ Surr W/O Surr
TOTAL RETURN 117.29% 118.86%
<S> <C> <C> <C> <C> <C>
05/27/93 14.86% 15.01% 2,172.94 2,188.56 6
05/31/93 14.92% 15.06% 2,175.07 2,190.69 6
06/30/93 15.04% 15.19% 2,162.91 2,178.55 6
07/31/93 15.45% 15.60% 2,178.89 2,194.50 6
08/31/93 15.20% 15.36% 2,128.29 2,144.00 6
09/30/93 15.73% 15.89% 2,154.41 2,170.07 6
10/31/93 15.94% 16.11% 2,148.64 2,164.31 6
11/30/93 16.30% 16.46% 2,155.92 2,171.57 6
12/31/93 16.38% 16.55% 2,135.54 2,151.24 9
01/31/94 15.96% 16.23% 2,071.32 2,095.04 5
02/28/94 16.49% 16.76% 2,093.99 2,117.64 5
03/31/94 17.72% 17.99% 2,172.62 2,196.03 5
04/30/94 17.22% 17.50% 2,101.61 2,125.23 5
05/31/94 17.21% 17.50% 2,072.38 2,096.09 5
06/30/94 18.45% 18.74% 2,144.84 2,168.34 5
07/31/94 18.29% 18.59% 2,101.94 2,125.57 5
08/31/94 17.54% 17.86% 2,015.29 2,039.17 5
09/30/94 18.78% 19.09% 2,079.63 2,103.32 5
10/31/94 18.61% 18.95% 2,037.74 2,061.56 5
11/30/94 20.01% 20.33% 2,107.38 2,130.99 5
12/31/94 20.02% 20.36% 2,076.15 2,099.85 5
01/31/95 19.56% 20.04% 2,013.54 2,045.36 4
02/28/95 18.78% 19.29% 1,936.89 1,969.02 4
03/31/95 18.51% 19.04% 1,892.23 1,924.53 4
04/30/95 18.63% 19.19% 1,873.36 1,905.74 4
05/31/95 17.21% 17.81% 1,768.06 1,800.86 4
06/30/95 16.53% 17.16% 1,709.79 1,742.82 4
07/31/95 15.61% 16.29% 1,642.69 1,675.98 4
08/31/95 16.08% 16.78% 1,644.97 1,678.25 4
09/30/95 15.70% 16.44% 1,607.66 1,641.10 4
10/31/95 17.02% 17.76% 1,645.67 1,678.96 4
11/30/95 15.81% 16.60% 1,573.22 1,606.80 4
12/31/95 15.75% 16.58% 1,551.44 1,585.10 4
01/31/96 14.10% 15.22% 1,469.47 1,511.91 3
02/29/96 13.72% 14.89% 1,440.47 1,483.05 3
03/31/96 13.45% 14.68% 1,415.45 1,458.16 3
04/30/96 13.84% 15.11% 1,413.71 1,456.43 3
05/31/96 13.19% 14.54% 1,377.73 1,420.63 3
06/30/96 13.89% 15.29% 1,385.01 1,427.87 3
07/31/96 16.39% 17.80% 1,443.76 1,486.33 3
08/31/96 15.02% 16.53% 1,386.19 1,429.04 3
09/30/96 13.62% 15.23% 1,333.07 1,376.19 3
10/31/96 13.26% 14.97% 1,309.76 1,352.99 3
11/30/96 11.04% 12.89% 1,244.03 1,287.59 3
12/31/96 12.12% 14.04% 1,257.12 1,300.62 3
01/31/97 10.18% 12.66% 1,203.92 1,256.38 2
02/28/97 10.59% 13.19% 1,203.34 1,255.80 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - VALUE EQUITY
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
============
0.002022
============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Availabl W/ Surr n
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03/31/97 1.697885 1000 1,697.89 0.00017173 0.29928654 1,684.88 2,188.56 6.00% 10.00% 2,100.60 1.75
04/30/97 1.731240 1000 1,731.24 0.00016619 0.280012462 1,717.69 2,188.56 6.00% 10.00% 2,098.63 1.67
05/23/97 1.804168 1000 1,804.17 0.00012741 0.218857864 1,789.83 2,188.56 6.00% 10.00% 2,094.30 1.61
05/31/97 1.816366 1000 1,816.37 0.00001144 0.019652312 1,802.14 2,188.56 6.00% 10.00% 2,093.57 1.59
06/30/97 1.911728 1000 1,911.73 0.00004290 0.077319009 1,896.67 2,188.56 6.00% 10.00% 2,087.89 1.50
07/31/97 2.027803 1000 2,027.80 0.00004433 0.08408756 2,011.75 2,188.56 6.00% 10.00% 2,080.99 1.42
08/31/97 1.974717 1000 1,974.72 0.00004433 0.089189403 1,958.99 2,188.56 6.00% 10.00% 2,084.15 1.33
09/30/97 2.047874 1000 2,047.87 0.00004290 0.084048922 2,031.49 2,188.56 6.00% 10.00% 2,079.80 1.25
10/31/97 2.006829 1000 2,006.83 0.00004433 0.090064364 1,990.68 2,188.56 6.00% 10.00% 2,082.25 1.17
11/30/97 2.043787 1000 2,043.79 0.00004290 0.085408292 2,027.25 2,188.56 6.00% 10.00% 2,080.06 1.08
12/31/97 2.084252 1000 2,084.25 0.00004433 0.089876767 2,067.30 2,188.56 6.00% 10.00% 2,077.66 1.00
01/31/98 2.056479 1000 2,056.48 0.00004433 0.091652255 2,039.66 2,188.56 7.00% 10.00% 2,045.79 0.92
02/28/98 2.194684 1000 2,194.68 0.00004004 0.081675919 2,176.66 2,188.56 7.00% 10.00% 2,036.20 0.84
03/31/98 2.299061 1000 2,299.06 0.00004433 0.096500401 2,280.08 2,188.56 7.00% 10.00% 2,028.96 0.75
04/30/98 2.314186 1000 2,314.19 0.00004290 0.097824761 2,294.98 2,188.56 7.00% 10.00% 2,027.91 0.67
05/31/98 2.272033 1000 2,272.03 0.00004433 0.101746268 2,253.08 2,188.56 7.00% 10.00% 2,030.85 0.59
06/30/98 2.297706 1000 2,297.71 0.00004290 0.096666237 2,278.44 2,188.56 7.00% 10.00% 2,029.07 0.50
07/31/98 2.211687 1000 2,211.69 0.00004433 0.101012856 2,193.04 2,188.56 7.00% 10.00% 2,035.05 0.42
08/31/98 1.875103 1000 1,875.10 0.00004433 0.097226769 1,859.20 2,188.56 7.00% 10.00% 2,058.42 0.33
09/30/98 1.928972 1000 1,928.97 0.00004290 0.079767167 1,912.53 2,188.56 7.00% 10.00% 2,054.69 0.25
10/31/98 2.123590 1000 2,123.59 0.00004433 0.084790518 2,105.40 2,188.56 7.00% 10.00% 2,041.18 0.17
11/30/98 2.201371 1000 2,201.37 0.00004290 0.090330436 2,182.43 2,188.56 7.00% 10.00% 2,035.79 0.08
12/31/98 2.207657 1000 2,207.66 0.00004433 0.096756275 2,188.56 2,188.56 7.00% 10.00% 2,035.36 0.00
12/31/98 2,188.56
</TABLE>
<TABLE>
<CAPTION>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C>
03/31/97 13.40% 16.09% 1,246.74 1,298.95 2
04/30/97 12.73% 15.60% 1,221.77 1,274.13 2
05/23/97 10.26% 13.32% 1,170.11 1,222.77 2
05/31/97 9.91% 13.03% 1,161.71 1,214.43 2
06/30/97 6.59% 9.98% 1,100.82 1,153.90 2
07/31/97 2.41% 6.12% 1,034.42 1,087.89 2
08/31/97 4.75% 8.66% 1,063.89 1,117.19 2
09/30/97 1.90% 6.13% 1,023.79 1,077.32 2
10/31/97 3.93% 8.46% 1,046.00 1,099.41 2
11/30/97 2.40% 7.31% 1,026.05 1,079.57 2
12/31/97 0.50% 5.87% 1,005.01 1,058.66 2
01/31/98 0.30% 7.30% 1,002.75 1,066.60 1
02/28/98 -6.45% 0.55% 945.61 1,004.58 1
03/31/98 -11.01% -4.01% 915.84 969.61 1
04/30/98 -11.64% -4.64% 920.31 968.63 1
05/31/98 -9.86% -2.86% 940.93 983.11 1
06/30/98 -10.94% -3.94% 943.24 979.92 1
07/31/98 -7.20% -0.20% 969.14 999.14 1
08/31/98 10.72% 17.72% 1,034.61 1,056.03 1
09/30/98 7.43% 14.43% 1,018.24 1,034.57 1
10/31/98 -3.05% 3.95% 994.84 1,006.50 1
11/30/98 -6.72% 0.28% 994.11 1,000.24 1
12/31/98 -7.00% 0.00% 1,000.00 1,000.00 1
12/31/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - VALUE SMALL CAP SUBACCOUNT
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
--------------
0.002022
==============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV Avg Ann
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n W/ Surr
TOTAL RETURN 74.13%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05/04/93 1.000000 1000 1,000.00 1,000.00 1,765.99 3.00% 10.00% 1,741.29 5.66 10.29%
05/31/93 0.999050 1000 999.05 0.000149573 0.14957 998.90 1,765.99 2.00% 10.00% 1,749.54 5.59 10.55%
06/30/93 1.000790 1000 1,000.79 0.000166192 0.16601 1,000.47 1,765.99 2.00% 10.00% 1,749.51 5.51 10.68%
07/31/93 1.034532 1000 1,034.53 0.000171732 0.17181 1,034.03 1,765.99 2.00% 10.00% 1,748.84 5.42 10.18%
08/31/93 1.065127 1000 1,065.13 0.000171732 0.17758 1,064.44 1,765.99 2.00% 10.00% 1,748.23 5.34 9.74%
09/30/93 1.093740 1000 1,093.74 0.000166192 0.1769 1,092.85 1,765.99 2.00% 10.00% 1,747.66 5.25 9.35%
10/31/93 1.091540 1000 1,091.54 0.000171732 0.18768 1,090.47 1,765.99 2.00% 10.00% 1,747.71 5.17 9.55%
11/30/93 1.064416 1000 1,064.42 0.000166192 0.18123 1,063.19 1,765.99 2.00% 10.00% 1,748.26 5.09 10.27%
12/31/93 1.107447 1000 1,107.45 0.000171732 0.18258 1,105.99 1,765.99 2.00% 10.00% 1,747.40 5.00 9.57%
01/31/94 1.134150 1000 1,134.15 0.000171732 0.18993 1,132.47 1,765.99 3.00% 10.00% 1,737.31 4.92 9.09%
02/28/94 1.129975 1000 1,129.98 0.000155112 0.17566 1,128.12 1,765.99 3.00% 10.00% 1,737.44 4.84 9.33%
03/31/94 1.063464 1000 1,063.46 0.000171732 0.19373 1,061.53 1,765.99 3.00% 10.00% 1,739.44 4.76 10.94%
04/30/94 1.062289 1000 1,062.29 0.000166192 0.17642 1,060.18 1,765.99 3.00% 10.00% 1,739.48 4.67 11.18%
05/31/94 1.047201 1000 1,047.20 0.000171732 0.18207 1,044.94 1,765.99 3.00% 10.00% 1,739.94 4.59 11.75%
06/30/94 1.021404 1000 1,021.40 0.000166192 0.17366 1,019.02 1,765.99 3.00% 10.00% 1,740.72 4.51 12.62%
07/31/94 1.040918 1000 1,040.92 0.000171732 0.175 1,038.32 1,765.99 3.00% 10.00% 1,740.14 4.42 12.39%
08/31/94 1.083789 1000 1,083.79 0.000171732 0.17831 1,080.90 1,765.99 3.00% 10.00% 1,738.86 4.34 11.59%
09/30/94 1.091375 1000 1,091.38 0.000166192 0.17964 1,088.29 1,765.99 3.00% 10.00% 1,738.64 4.25 11.64%
10/31/94 1.060702 1000 1,060.70 0.000171732 0.18689 1,057.51 1,765.99 3.00% 10.00% 1,739.56 4.17 12.68%
11/30/94 1.045795 1000 1,045.80 0.000166192 0.17575 1,042.48 1,765.99 3.00% 10.00% 1,740.01 4.09 13.35%
12/31/94 1.072941 1000 1,072.94 0.000171732 0.17903 1,069.36 1,765.99 3.00% 10.00% 1,739.21 4.00 12.92%
01/31/95 1.036496 1000 1,036.50 0.000171732 0.18364 1,032.85 1,765.99 4.00% 10.00% 1,731.74 3.92 14.10%
02/28/95 1.049039 1000 1,049.04 0.000155112 0.16021 1,045.19 1,765.99 4.00% 10.00% 1,731.24 3.84 14.04%
03/31/95 1.050723 1000 1,050.72 0.000171732 0.17949 1,046.69 1,765.99 4.00% 10.00% 1,731.18 3.76 14.33%
04/30/95 1.056414 1000 1,056.41 0.000166192 0.17395 1,052.18 1,765.99 4.00% 10.00% 1,730.97 3.67 14.51%
05/31/95 1.103127 1000 1,103.13 0.000171732 0.18069 1,098.53 1,765.99 4.00% 10.00% 1,729.11 3.59 13.47%
06/30/95 1.130708 1000 1,130.71 0.000166192 0.18257 1,125.81 1,765.99 4.00% 10.00% 1,728.02 3.51 13.00%
07/31/95 1.167122 1000 1,167.12 0.000171732 0.19334 1,161.87 1,765.99 4.00% 10.00% 1,726.58 3.42 12.27%
08/31/95 1.192534 1000 1,192.53 0.000171732 0.19953 1,186.97 1,765.99 4.00% 10.00% 1,725.57 3.34 11.87%
09/30/95 1.197165 1000 1,197.17 0.000166192 0.19726 1,191.38 1,765.99 4.00% 10.00% 1,725.40 3.25 12.05%
10/31/95 1.159078 1000 1,159.08 0.000171732 0.2046 1,153.28 1,765.99 4.00% 10.00% 1,726.92 3.17 13.58%
11/30/95 1.172582 1000 1,172.58 0.000166192 0.19167 1,166.52 1,765.99 4.00% 10.00% 1,726.39 3.09 13.54%
12/31/95 1.206843 1000 1,206.84 0.000171732 0.20033 1,200.40 1,765.99 4.00% 10.00% 1,725.04 3.00 12.83%
01/31/96 1.188557 1000 1,188.56 0.000171732 0.20615 1,182.01 1,765.99 5.00% 10.00% 1,715.72 2.92 13.62%
02/29/96 1.213847 1000 1,213.85 0.000160652 0.18989 1,206.97 1,765.99 5.00% 10.00% 1,714.47 2.84 13.16%
03/31/96 1.249908 1000 1,249.91 0.000171732 0.20727 1,242.62 1,765.99 5.00% 10.00% 1,712.69 2.75 12.36%
04/30/96 1.296553 1000 1,296.55 0.000166192 0.20651 1,288.79 1,765.99 5.00% 10.00% 1,710.38 2.67 11.18%
05/31/96 1.349261 1000 1,349.26 0.000171732 0.22133 1,340.96 1,765.99 5.00% 10.00% 1,707.77 2.59 9.80%
06/30/96 1.303747 1000 1,303.75 0.000166192 0.22286 1,295.50 1,765.99 5.00% 10.00% 1,710.04 2.50 11.72%
07/31/96 1.255016 1000 1,255.02 0.000171732 0.22248 1,246.86 1,765.99 5.00% 10.00% 1,712.48 2.42 14.02%
08/31/96 1.308801 1000 1,308.80 0.000171732 0.21412 1,300.08 1,765.99 5.00% 10.00% 1,709.81 2.33 12.45%
09/30/96 1.336875 1000 1,336.88 0.000166192 0.21606 1,327.75 1,765.99 5.00% 10.00% 1,708.43 2.25 11.84%
10/31/96 1.348560 1000 1,348.56 0.000171732 0.22802 1,339.12 1,765.99 5.00% 10.00% 1,707.86 2.17 11.88%
11/30/96 1.471393 1000 1,471.39 0.000166192 0.22255 1,460.88 1,765.99 5.00% 10.00% 1,701.77 2.08 7.60%
12/31/96 1.496065 1000 1,496.07 0.000171732 0.25088 1,485.12 1,765.99 5.00% 10.00% 1,700.56 2.00 7.01%
01/31/97 1.566476 1000 1,566.48 0.000171732 0.25504 1,554.76 1,765.99 6.00% 10.00% 1,683.30 1.92 4.24%
02/28/97 1.565821 1000 1,565.82 0.000155112 0.24116 1,553.87 1,765.99 6.00% 10.00% 1,683.35 1.84 4.45%
03/31/97 1.519343 1000 1,519.34 0.000171732 0.26685 1,507.48 1,765.99 6.00% 10.00% 1,686.14 1.75 6.60%
04/30/97 1.519632 1000 1,519.63 0.000166192 0.25053 1,507.52 1,765.99 6.00% 10.00% 1,686.13 1.67 6.93%
<CAPTION>
ERV of ERV of
Avg Ann $1,000 $1,000
Date W/O Surr W/ Surr W/O Surr
Total Return76.60%
<S> <C> <C> <C> <C>
05/04/93 10.56% 1,741.29 1,765.99 5
05/31/93 10.73% 1,751.47 1,767.93 6
06/30/93 10.87% 1,748.68 1,765.15 6
07/31/93 10.38% 1,691.28 1,707.86 6
08/31/93 9.95% 1,642.40 1,659.08 6
09/30/93 9.56% 1,599.17 1,615.94 6
10/31/93 9.77% 1,602.72 1,619.48 6
11/30/93 10.49% 1,644.35 1,661.03 6
12/31/93 9.81% 1,579.94 1,596.75 6
01/31/94 9.46% 1,534.10 1,559.42 5
02/28/94 9.70% 1,540.12 1,565.42 5
03/31/94 11.30% 1,638.62 1,663.63 5
04/30/94 11.54% 1,640.75 1,665.75 5
05/31/94 12.11% 1,665.11 1,690.04 5
06/30/94 12.98% 1,708.22 1,733.02 5
07/31/94 12.76% 1,675.92 1,700.82 5
08/31/94 11.98% 1,608.71 1,633.81 5
09/30/94 12.05% 1,597.59 1,622.72 5
10/31/94 13.09% 1,644.95 1,669.94 5
11/30/94 13.76% 1,669.11 1,694.03 5
12/31/94 13.35% 1,626.40 1,651.45 5
01/31/95 14.67% 1,676.66 1,709.82 4
02/28/95 14.63% 1,656.39 1,689.64 4
03/31/95 14.94% 1,653.97 1,687.22 4
04/30/95 15.14% 1,645.12 1,678.41 4
05/31/95 14.14% 1,574.03 1,607.60 4
06/30/95 13.70% 1,534.91 1,568.64 4
07/31/95 13.02% 1,486.03 1,519.95 4
08/31/95 12.64% 1,453.76 1,487.81 4
09/30/95 12.85% 1,448.23 1,482.30 4
10/31/95 14.39% 1,497.40 1,531.28 4
11/30/95 14.37% 1,479.95 1,513.89 4
12/31/95 13.72% 1,437.05 1,471.16 4
01/31/96 14.75% 1,451.53 1,494.06 3
02/29/96 14.35% 1,420.47 1,463.16 3
03/31/96 13.62% 1,378.29 1,421.18 3
04/30/96 12.52% 1,327.12 1,370.27 3
05/31/96 11.23% 1,273.55 1,316.96 3
06/30/96 13.17% 1,319.99 1,363.17 3
07/31/96 15.48% 1,373.44 1,416.35 3
08/31/96 14.02% 1,315.16 1,358.37 3
09/30/96 13.50% 1,286.71 1,330.06 3
10/31/96 13.62% 1,275.36 1,318.76 3
11/30/96 9.52% 1,164.90 1,208.86 3
12/31/96 9.05% 1,145.07 1,189.12 3
01/31/97 6.88% 1,082.67 1,135.86 2
02/28/97 7.21% 1,083.33 1,136.51 2
03/31/97 9.45% 1,118.51 1,171.48 2
04/30/97 9.93% 1,118.48 1,171.46 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - VALUE SMALL CAP SUBACCOUNT
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
--------------
0.002022
==============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV Avg Ann
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n W/ Surr
TOTAL RETURN 74.13%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05/23/97 1.635726 1000 1,635.73 0.000127414 0.19208 1,622.49 1,765.99 6.00% 10.00% 1,679.23 1.61 2.16%
05/31/97 1.660543 1000 1,660.54 0.000011441 0.01725 1,647.29 1,765.99 6.00% 10.00% 1,677.75 1.59 1.16%
06/30/97 1.757183 1000 1,757.18 0.000042904 0.07068 1,743.08 1,765.99 6.00% 10.00% 1,672.00 1.50 -2.73%
07/31/97 1.850180 1000 1,850.18 0.000044334 0.07728 1,835.26 1,765.99 6.00% 10.00% 1,666.47 1.42 -6.57%
08/31/97 1.893242 1000 1,893.24 0.000044334 0.08136 1,877.89 1,765.99 6.00% 10.00% 1,663.91 1.33 -8.67%
09/30/97 1.967638 1000 1,967.64 0.000042904 0.08057 1,951.60 1,765.99 6.00% 10.00% 1,659.49 1.25 -12.15%
10/31/97 1.872397 1000 1,872.40 0.000044334 0.08652 1,857.05 1,765.99 6.00% 10.00% 1,665.16 1.17 -8.92%
11/30/97 1.864547 1000 1,864.55 0.000042904 0.07968 1,849.19 1,765.99 6.00% 10.00% 1,665.63 1.08 -9.19%
12/31/97 1.849564 1000 1,849.56 0.000044334 0.08198 1,834.25 1,765.99 6.00% 10.00% 1,666.53 1.00 -9.14%
01/31/98 1.820210 1000 1,820.21 0.000044334 0.08132 1,805.05 1,765.99 7.00% 10.00% 1,639.63 0.92 -9.16%
02/28/98 1.959740 1000 1,959.74 0.000040044 0.07228 1,943.35 1,765.99 7.00% 10.00% 1,629.95 0.84 -16.13%
03/31/98 2.053668 1000 2,053.67 0.000044334 0.08616 2,036.41 1,765.99 7.00% 10.00% 1,623.44 0.75 -20.28%
04/30/98 2.063402 1000 2,063.40 0.000042904 0.08737 2,045.97 1,765.99 7.00% 10.00% 1,622.77 0.67 -20.68%
05/31/98 1.982360 1000 1,982.36 0.000044334 0.09071 1,965.52 1,765.99 7.00% 10.00% 1,628.40 0.59 -17.15%
06/30/98 1.941588 1000 1,941.59 0.000042904 0.08433 1,925.01 1,765.99 7.00% 10.00% 1,631.24 0.50 -15.26%
07/31/98 1.772914 1000 1,772.91 0.000044334 0.08534 1,757.69 1,765.99 7.00% 10.00% 1,642.95 0.42 -6.53%
08/31/98 1.369082 1000 1,369.08 0.000044334 0.07793 1,357.25 1,765.99 7.00% 10.00% 1,670.98 0.33 23.12%
09/30/98 1.397717 1000 1,397.72 0.000042904 0.05823 1,385.58 1,765.99 7.00% 10.00% 1,669.00 0.25 20.45%
10/31/98 1.546293 1000 1,546.29 0.000044334 0.06143 1,532.80 1,765.99 7.00% 10.00% 1,658.69 0.17 8.21%
11/30/98 1.691900 1000 1,691.90 0.000042904 0.06576 1,677.07 1,765.99 7.00% 10.00% 1,648.59 0.08 -1.70%
12/31/98 1.781675 1000 1,781.68 0.000044334 0.07435 1,765.99 1,765.99 7.00% 10.00% 1,642.37 0.00 -7.00%
12/31/98 1,765.99
</TABLE>
<TABLE>
<CAPTION>
ERV of ERV of
Avg Ann $1,000 $1,000
Date W/O Surr W/ Surr W/O Surr
<S> <C> <C> <C> <C>
05/23/97 5.41% 1,034.97 1,088.44
05/31/97 4.48% 1,018.49 1,072.06
06/30/97 0.87% 959.22 1,013.14
07/31/97 -2.67% 908.03 962.26
08/31/97 -4.50% 886.05 940.41
09/30/97 -7.67% 850.32 904.89
10/31/97 -4.22% 896.67 950.96
11/30/97 -4.15% 900.74 955.01
12/31/97 -3.72% 908.56 962.79
01/31/98 -2.16% 915.80 980.18
02/28/98 -9.13% 862.92 922.90
03/31/98 -13.28% 843.03 898.22
04/30/98 -13.68% 855.94 905.94
05/31/98 -10.15% 895.55 939.17
06/30/98 -8.26% 919.91 957.47
07/31/98 0.47% 972.10 1,001.98
08/31/98 30.12% 1,071.98 1,091.98
09/30/98 27.45% 1,048.03 1,063.05
10/31/98 15.21% 1,013.28 1,023.95
11/30/98 5.30% 998.55 1,004.40
12/31/98 0.00% 1,000.00 1,000.00
12/31/98
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR- DREYFUS US GOVERNMENT SECURITIES SUBACCOUNT
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 0.998670 2 6.00%
Units purchased 1,001.332 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
-----------------
0.002022
=================
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n
TOTAL RETURN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05/09/94 0.998670 1001 1,000.00 1,000.00 1,276.63 3.00% 10.00% 1,250.46 4.65
05/31/94 0.997834 1001 999.16 0.000121874 0.121873973 999.04 1,276.63 3.00% 10.00% 1,250.48 4.59
06/30/94 0.991708 1001 993.03 0.000166192 0.166032405 992.74 1,276.63 3.00% 10.00% 1,250.67 4.51
07/31/94 1.000569 1001 1,001.90 0.000171732 0.170485006 1,001.44 1,276.63 3.00% 10.00% 1,250.41 4.42
08/31/94 0.999310 1001 1,000.64 0.000171732 0.171979027 1,000.01 1,276.63 3.00% 10.00% 1,250.46 4.34
09/30/94 0.990223 1001 991.54 0.000166192 0.166193317 990.75 1,276.63 3.00% 10.00% 1,250.73 4.25
10/31/94 0.988060 1001 989.38 0.000171732 0.170142937 988.42 1,276.63 3.00% 10.00% 1,250.80 4.17
11/30/94 0.983957 1001 985.27 0.000166192 0.164266515 984.15 1,276.63 3.00% 10.00% 1,250.93 4.09
12/31/94 0.985803 1001 987.12 0.000171732 0.169008988 985.82 1,276.63 3.00% 10.00% 1,250.88 4.00
01/31/95 0.999429 1001 1,000.76 0.000171732 0.169297041 999.28 1,276.63 4.00% 10.00% 1,241.76 3.92
02/28/95 1.016140 1001 1,017.49 0.000155112 0.155000802 1,015.83 1,276.63 4.00% 10.00% 1,241.10 3.84
03/31/95 1.019871 1001 1,021.23 0.000171732 0.174450793 1,019.39 1,276.63 4.00% 10.00% 1,240.96 3.76
04/30/95 1.018785 1001 1,020.14 0.000166192 0.169414231 1,018.14 1,276.63 4.00% 10.00% 1,241.01 3.67
05/31/95 1.067728 1001 1,069.15 0.000171732 0.174845866 1,066.87 1,276.63 4.00% 10.00% 1,239.06 3.59
06/16/95 1.072051 1001 1,073.48 0.000088636 0.094562855 1,071.10 1,276.63 4.00% 10.00% 1,238.89 3.55
06/30/95 1.072474 1001 1,073.90 0.000166192 0.177305354 1,071.44 1,276.63 4.00% 10.00% 1,238.87 3.51
07/31/95 1.067235 1001 1,068.66 0.000171732 0.183999467 1,066.02 1,276.63 4.00% 10.00% 1,239.09 3.42
08/31/95 1.076884 1001 1,078.32 0.000171732 0.183069038 1,075.47 1,276.63 4.00% 10.00% 1,238.71 3.34
09/30/95 1.084609 1001 1,086.05 0.000166192 0.178734918 1,083.01 1,276.63 4.00% 10.00% 1,238.41 3.25
10/31/95 1.096150 1001 1,097.61 0.000171732 0.185986942 1,094.35 1,276.63 4.00% 10.00% 1,237.96 3.17
11/30/95 1.110708 1001 1,112.19 0.000166192 0.181871646 1,108.70 1,276.63 4.00% 10.00% 1,237.38 3.09
12/31/95 1.124292 1001 1,125.79 0.000171732 0.190398758 1,122.07 1,276.63 4.00% 10.00% 1,236.85 3.00
01/31/96 1.128795 1001 1,130.30 0.000171732 0.192694645 1,126.37 1,276.63 5.00% 10.00% 1,226.69 2.92
02/29/96 1.102929 1001 1,104.40 0.000160652 0.180953761 1,100.38 1,276.63 5.00% 10.00% 1,227.99 2.84
03/31/96 1.090889 1001 1,092.34 0.000171732 0.188969789 1,088.18 1,276.63 5.00% 10.00% 1,228.60 2.75
04/30/96 1.081701 1001 1,083.14 0.000166192 0.180846261 1,078.83 1,276.63 5.00% 10.00% 1,229.07 2.67
05/31/96 1.078209 1001 1,079.64 0.000171732 0.185269464 1,075.16 1,276.63 5.00% 10.00% 1,229.25 2.59
06/30/96 1.088194 1001 1,089.64 0.000166192 0.178683437 1,084.94 1,276.63 5.00% 10.00% 1,228.76 2.50
07/31/96 1.088849 1001 1,090.30 0.000171732 0.186318763 1,085.41 1,276.63 5.00% 10.00% 1,228.74 2.42
08/31/96 1.085586 1001 1,087.03 0.000171732 0.186398914 1,081.97 1,276.63 5.00% 10.00% 1,228.91 2.33
09/30/96 1.102463 1001 1,103.93 0.000166192 0.179814497 1,098.61 1,276.63 5.00% 10.00% 1,228.08 2.25
10/31/96 1.124337 1001 1,125.83 0.000171732 0.188666092 1,120.22 1,276.63 5.00% 10.00% 1,227.00 2.17
11/30/96 1.142220 1001 1,143.74 0.000166192 0.186171311 1,137.85 1,276.63 5.00% 10.00% 1,226.12 2.08
12/31/96 1.128769 1001 1,130.27 0.000171732 0.195404879 1,124.26 1,276.63 5.00% 10.00% 1,226.80 2.00
01/31/97 1.129443 1001 1,130.95 0.000171732 0.193070196 1,124.73 1,276.63 6.00% 10.00% 1,216.80 1.92
02/28/97 1.132254 1001 1,133.76 0.000155112 0.174460164 1,127.36 1,276.63 6.00% 10.00% 1,216.64 1.84
03/31/97 1.117895 1001 1,119.38 0.000171732 0.193603089 1,112.87 1,276.63 6.00% 10.00% 1,217.51 1.75
04/30/97 1.131627 1001 1,133.13 0.000166192 0.184949621 1,126.35 1,276.63 6.00% 10.00% 1,216.70 1.67
05/23/97 1.136634 1001 1,138.15 0.000127414 0.143512923 1,131.19 1,276.63 6.00% 10.00% 1,216.41 1.61
05/31/97 1.140296 1001 1,141.81 0.000011441 0.012886724 1,134.97 1,276.63 6.00% 10.00% 1,216.19 1.59
06/30/97 1.152274 1001 1,153.81 0.000042904 0.048694863 1,146.84 1,276.63 6.00% 10.00% 1,215.48 1.50
07/31/97 1.180622 1001 1,182.19 0.000044334 0.050844421 1,175.01 1,276.63 6.00% 10.00% 1,213.79 1.42
08/31/97 1.166844 1001 1,168.40 0.000044334 0.052093031 1,161.24 1,276.63 6.00% 10.00% 1,214.61 1.33
09/30/97 1.183751 1001 1,185.33 0.000042904 0.049822054 1,178.02 1,276.63 6.00% 10.00% 1,213.60 1.25
10/31/97 1.199638 1001 1,201.24 0.000044334 0.052226541 1,193.78 1,276.63 6.00% 10.00% 1,212.66 1.17
11/30/97 1.203344 1001 1,204.95 0.000042904 0.05121789 1,197.41 1,276.63 6.00% 10.00% 1,212.44 1.08
12/31/97 1.213942 1001 1,215.56 0.000044334 0.053086382 1,207.91 1,276.63 6.00% 10.00% 1,211.81 1.00
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr W/O Surr W/ Surr W/O Surr
25.05% 27.66%
05/09/94 4.92% 5.39% 1,250.46 1,276.63 5
05/31/94 5.01% 5.49% 1,251.68 1,277.85 5
06/30/94 5.26% 5.74% 1,259.82 1,285.96 5
07/31/94 5.15% 5.64% 1,248.61 1,274.79 5
08/31/94 5.29% 5.79% 1,250.44 1,276.61 5
09/30/94 5.63% 6.14% 1,262.41 1,288.55 5
10/31/94 5.81% 6.33% 1,265.46 1,291.59 5
11/30/94 6.04% 6.57% 1,271.08 1,297.19 5
12/31/94 6.13% 6.67% 1,268.87 1,294.98 5
01/31/95 5.70% 6.45% 1,242.65 1,277.54 4
02/28/95 5.35% 6.13% 1,221.75 1,256.73 4
03/31/95 5.38% 6.17% 1,217.35 1,252.34 4
04/30/95 5.54% 6.35% 1,218.90 1,253.89 4
05/31/95 4.26% 5.13% 1,161.39 1,196.61 4
06/16/95 4.19% 5.08% 1,156.65 1,191.89 4
06/30/95 4.23% 5.12% 1,156.27 1,191.51 4
07/31/95 4.49% 5.41% 1,162.35 1,197.56 4
08/31/95 4.33% 5.27% 1,151.78 1,187.04 4
09/30/95 4.21% 5.18% 1,143.49 1,178.78 4
10/31/95 3.97% 4.98% 1,131.23 1,166.56 4
11/30/95 3.62% 4.67% 1,116.07 1,151.46 4
12/31/95 3.30% 4.39% 1,102.29 1,137.74 4
01/31/96 2.97% 4.38% 1,089.06 1,133.40 3
02/29/96 3.94% 5.37% 1,115.97 1,160.17 3
03/31/96 4.51% 5.97% 1,129.04 1,173.18 3
04/30/96 5.00% 6.50% 1,139.26 1,183.34 3
05/31/96 5.31% 6.87% 1,143.31 1,187.38 3
06/30/96 5.10% 6.71% 1,132.56 1,176.68 3
07/31/96 5.26% 6.94% 1,132.05 1,176.17 3
08/31/96 5.61% 7.34% 1,135.81 1,179.91 3
09/30/96 5.07% 6.90% 1,117.85 1,162.04 3
10/31/96 4.29% 6.22% 1,095.32 1,139.62 3
11/30/96 3.65% 5.67% 1,077.57 1,121.96 3
12/31/96 4.46% 6.56% 1,091.21 1,135.53 3
01/31/97 4.19% 6.84% 1,081.86 1,135.05 2
02/28/97 4.23% 7.00% 1,079.20 1,132.40 2
03/31/97 5.26% 8.14% 1,094.03 1,147.15 2
04/30/97 4.73% 7.78% 1,080.22 1,133.41 2
05/23/97 4.62% 7.81% 1,075.34 1,128.56 2
05/31/97 4.45% 7.70% 1,071.56 1,124.81 2
06/30/97 3.94% 7.39% 1,059.84 1,113.17 2
07/31/97 2.31% 6.02% 1,033.00 1,086.48 2
08/31/97 3.43% 7.36% 1,045.96 1,099.36 2
09/30/97 2.41% 6.63% 1,030.21 1,083.71 2
10/31/97 1.35% 5.92% 1,015.82 1,069.40 2
11/30/97 1.16% 6.08% 1,012.55 1,066.15 2
12/31/97 0.32% 5.69% 1,003.23 1,056.89 2
<PAGE>
<TABLE>
<CAPTION>
Contract Ending
Actual Acct Value Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01/31/98 1.228753 1001 1,230.39 0.000044334 0.053551567 1,222.59 1,276.63 7.00% 10.00% 1,191.04
02/28/98 1.223221 1001 1,224.85 0.000040044 0.048957152 1,217.04 1,276.63 7.00% 10.00% 1,191.43
03/31/98 1.224630 1001 1,226.26 0.000044334 0.053956364 1,218.38 1,276.63 7.00% 10.00% 1,191.34
04/30/98 1.226133 1001 1,227.77 0.000042904 0.052273668 1,219.83 1,276.63 7.00% 10.00% 1,191.24
05/31/98 1.239676 1001 1,241.33 0.000044334 0.0540801 1,233.25 1,276.63 7.00% 10.00% 1,190.30
06/30/98 1.250606 1001 1,252.27 0.000042904 0.052911323 1,244.07 1,276.63 7.00% 10.00% 1,189.54
07/31/98 1.250021 1001 1,251.69 0.000044334 0.055154748 1,243.43 1,276.63 7.00% 10.00% 1,189.59
08/31/98 1.264100 1001 1,265.78 0.000044334 0.055126502 1,257.38 1,276.63 7.00% 10.00% 1,188.61
09/30/98 1.288656 1001 1,290.37 0.000042904 0.053946725 1,281.75 1,276.63 7.00% 10.00% 1,186.90
10/31/98 1.281807 1001 1,283.51 0.000044334 0.056825441 1,274.88 1,276.63 7.00% 10.00% 1,187.38
11/30/98 1.281177 1001 1,282.88 0.000042904 0.054697648 1,274.20 1,276.63 7.00% 10.00% 1,187.43
12/31/98 1.283673 1001 1,285.38 0.000044334 0.056490698 1,276.63 1,276.63 7.00% 10.00% 1,187.26
12/31/98 1,276.63
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date n W/ Surr W/O Surr W/ Surr W/O Surr
01/31/98 0.92 -2.58% 4.42% 976.36 1,040.37 1
02/28/98 0.84 -2.10% 4.90% 982.33 1,040.89 1
03/31/98 0.75 -2.22% 4.78% 983.23 1,035.81 1
04/30/98 0.67 -2.34% 4.66% 984.21 1,031.02 1
05/31/98 0.59 -3.48% 3.52% 979.43 1,020.48 1
06/30/98 0.50 -4.38% 2.62% 977.66 1,013.11 1
07/31/98 0.42 -4.33% 2.67% 981.61 1,011.11 1
08/31/98 0.33 -5.47% 1.53% 981.38 1,005.09 1
09/30/98 0.25 -7.40% -0.40% 980.81 998.99 1
10/31/98 0.17 -6.86% 0.14% 988.19 1,000.23 1
11/30/98 0.08 -6.81% 0.19% 994.03 1,000.16 1
12/31/98 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - T ROWE PRICE EQUITY INCOME
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
---------------
0.002022
===============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01/03/95 1.000000 1000 1,000.00 1,000.00 2,049.53 5.00% 10.00% 2,009.78 3.99
01/31/95 0.999935 1000 999.94 0.000155112 0.15511233 999.78 TOTAL RETURN
02/28/95 1.038787 1000 1,038.79 0.000155112 0.15507819 1,038.47 2,049.53 4.00% 10.00% 2,016.19 3.84
03/31/95 1.052511 1000 1,052.51 0.000171732 0.17833815 1,052.01 2,049.53 4.00% 10.00% 2,015.65 3.76
04/30/95 1.075282 1000 1,075.28 0.000166192 0.17483579 1,074.60 2,049.53 4.00% 10.00% 2,014.74 3.67
05/31/95 1.108737 1000 1,108.74 0.000171732 0.18454227 1,107.85 2,049.53 4.00% 10.00% 2,013.41 3.59
06/28/95 1.116497 1000 1,116.50 0.000155112 0.1718407 1,115.43 2,049.53 4.00% 10.00% 2,013.11 3.51
06/30/95 1.115419 1000 1,115.42 0.000166192 0.18411503 1,114.34 2,049.53 4.00% 10.00% 2,013.15 3.51
07/31/95 1.135928 1000 1,135.93 0.000171732 0.19136717 1,134.64 2,049.53 4.00% 10.00% 2,012.34 3.42
08/31/95 1.151435 1000 1,151.44 0.000171732 0.19485294 1,149.93 2,049.53 4.00% 10.00% 2,011.73 3.34
09/30/95 1.193717 1000 1,193.72 0.000166192 0.19110919 1,191.97 2,049.53 4.00% 10.00% 2,010.05 3.25
10/31/95 1.202148 1000 1,202.15 0.000171732 0.20469834 1,200.18 2,049.53 4.00% 10.00% 2,009.72 3.17
11/30/95 1.248176 1000 1,248.18 0.000166192 0.19946026 1,245.93 2,049.53 4.00% 10.00% 2,007.89 3.09
12/31/95 1.287240 1000 1,287.24 0.000171732 0.21396621 1,284.71 2,049.53 4.00% 10.00% 2,006.34 3.00
01/31/96 1.323061 1000 1,323.06 0.000171732 0.22062594 1,320.24 2,049.53 5.00% 10.00% 1,993.76 2.92
02/29/96 1.325533 1000 1,325.53 0.000160652 0.21209999 1,322.50 2,049.53 5.00% 10.00% 1,993.65 2.84
03/31/96 1.342750 1000 1,342.75 0.000171732 0.22711476 1,339.45 2,049.53 5.00% 10.00% 1,992.80 2.75
04/30/96 1.349950 1000 1,349.95 0.000166192 0.22260551 1,346.41 2,049.53 5.00% 10.00% 1,992.46 2.67
05/31/96 1.370709 1000 1,370.71 0.000171732 0.2312209 1,366.88 2,049.53 5.00% 10.00% 1,991.43 2.59
06/30/96 1.378153 1000 1,378.15 0.000166192 0.22716466 1,374.08 2,049.53 5.00% 10.00% 1,991.07 2.50
07/31/96 1.337880 1000 1,337.88 0.000171732 0.2359726 1,333.69 2,049.53 5.00% 10.00% 1,993.09 2.42
08/31/96 1.365965 1000 1,365.97 0.000171732 0.22903638 1,361.46 2,049.53 5.00% 10.00% 1,991.70 2.33
09/30/96 1.420548 1000 1,420.55 0.000166192 0.22626292 1,415.63 2,049.53 5.00% 10.00% 1,988.99 2.25
10/31/96 1.451366 1000 1,451.37 0.000171732 0.24310885 1,446.10 2,049.53 5.00% 10.00% 1,987.47 2.17
11/30/96 1.532388 1000 1,532.39 0.000166192 0.2403302 1,526.59 2,049.53 5.00% 10.00% 1,983.45 2.08
12/31/96 1.521680 1000 1,521.68 0.000171732 0.2621635 1,515.66 2,049.53 5.00% 10.00% 1,983.99 2.00
01/31/97 1.560117 1000 1,560.12 0.000171732 0.26028653 1,553.68 2,049.53 6.00% 10.00% 1,968.60 1.92
02/28/97 1.595705 1000 1,595.71 0.000155112 0.2409956 1,588.88 2,049.53 6.00% 10.00% 1,966.49 1.84
03/31/97 1.560536 1000 1,560.54 0.000171732 0.27286156 1,553.59 2,049.53 6.00% 10.00% 1,968.61 1.75
04/30/97 1.595918 1000 1,595.92 0.000166192 0.25819441 1,588.56 2,049.53 6.00% 10.00% 1,966.51 1.67
05/23/97 1.663897 1000 1,663.90 0.000127414 0.20240424 1,656.02 2,049.53 6.00% 10.00% 1,962.46 1.61
05/31/97 1.669266 1000 1,669.27 0.000011441 0.01817486 1,661.55 2,049.53 6.00% 10.00% 1,962.13 1.59
06/30/97 1.729794 1000 1,729.79 0.000042904 0.07128737 1,721.73 2,049.53 6.00% 10.00% 1,958.52 1.50
07/31/97 1.826628 1000 1,826.63 0.000044334 0.07633152 1,818.03 2,049.53 6.00% 10.00% 1,952.74 1.42
08/31/97 1.776415 1000 1,776.42 0.000044334 0.08060118 1,767.98 2,049.53 6.00% 10.00% 1,955.75 1.33
09/30/97 1.856890 1000 1,856.89 0.000042904 0.07585347 1,847.99 2,049.53 6.00% 10.00% 1,950.95 1.25
10/31/97 1.805604 1000 1,805.60 0.000044334 0.08192941 1,796.87 2,049.53 6.00% 10.00% 1,954.01 1.17
11/30/97 1.870203 1000 1,870.20 0.000042904 0.07709317 1,861.08 2,049.53 6.00% 10.00% 1,950.16 1.08
12/31/97 1.923303 1000 1,923.30 0.000044334 0.08250963 1,913.84 2,049.53 6.00% 10.00% 1,947.00 1.00
01/31/98 1.904983 1000 1,904.98 0.000044334 0.08484863 1,895.52 2,049.53 7.00% 10.00% 1,916.84 0.92
02/28/98 1.996987 1000 1,996.99 0.000040044 0.07590408 1,987.00 2,049.53 7.00% 10.00% 1,910.44 0.84
03/31/98 2.087428 1000 2,087.43 0.000044334 0.08809198 2,076.90 2,049.53 7.00% 10.00% 1,904.15 0.75
04/30/98 2.067966 1000 2,067.97 0.000042904 0.0891074 2,057.44 2,049.53 7.00% 10.00% 1,905.51 0.67
05/31/98 2.031836 1000 2,031.84 0.000044334 0.09121521 2,021.41 2,049.53 7.00% 10.00% 1,908.03 0.59
06/30/98 2.022877 1000 2,022.88 0.000042904 0.08672664 2,012.41 2,049.53 7.00% 10.00% 1,908.66 0.50
07/31/98 1.962275 1000 1,962.28 0.000044334 0.08921853 1,952.03 2,049.53 7.00% 10.00% 1,912.89 0.42
08/31/98 1.771585 1000 1,771.59 0.000044334 0.08654173 1,762.25 2,049.53 7.00% 10.00% 1,926.17 0.33
09/30/98 1.863300 1000 1,863.30 0.000042904 0.07560769 1,853.40 2,049.53 7.00% 10.00% 1,919.79 0.25
10/31/98 1.973332 1000 1,973.33 0.000044334 0.08216928 1,962.77 2,049.53 7.00% 10.00% 1,912.13 0.17
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr W/O Surr W/ Surr W/O Surr
01/03/95 19.09% 19.68% 2,009.78 2,049.53 3
01/31/95 100.98% 104.95%
02/28/95 18.85% 19.36% 1,941.50 1,973.60 4
03/31/95 18.90% 19.43% 1,915.99 1,948.20 4
04/30/95 18.66% 19.21% 1,874.88 1,907.25 4
05/31/95 18.11% 18.70% 1,817.41 1,850.01 4
06/28/95 18.31% 18.91% 1,804.79 1,837.44 4
06/30/95 18.37% 18.98% 1,806.59 1,839.23 4
07/31/95 18.23% 18.86% 1,773.56 1,806.33 4
08/31/95 18.25% 18.91% 1,749.43 1,782.30 4
09/30/95 17.42% 18.12% 1,686.33 1,719.45 4
10/31/95 17.66% 18.39% 1,674.51 1,707.68 4
11/30/95 16.71% 17.49% 1,611.55 1,644.97 4
12/31/95 16.00% 16.83% 1,561.70 1,595.32 4
01/31/96 15.17% 16.27% 1,510.15 1,552.39 3
02/29/96 15.56% 16.69% 1,507.49 1,549.74 3
03/31/96 15.52% 16.71% 1,487.78 1,530.13 3
04/30/96 15.80% 17.03% 1,479.83 1,522.22 3
05/31/96 15.66% 16.96% 1,456.92 1,499.42 3
06/30/96 15.96% 17.31% 1,449.02 1,491.57 3
07/31/96 18.06% 19.44% 1,494.42 1,536.74 3
08/31/96 17.70% 19.15% 1,462.92 1,505.39 3
09/30/96 16.30% 17.86% 1,405.02 1,447.78 3
10/31/96 15.80% 17.46% 1,374.36 1,417.28 3
11/30/96 13.38% 15.18% 1,299.27 1,342.55 3
12/31/96 14.41% 16.29% 1,309.00 1,352.24 3
01/31/97 13.16% 15.56% 1,267.06 1,319.14 2
02/28/97 12.30% 14.85% 1,237.66 1,289.92 2
03/31/97 14.46% 17.12% 1,267.13 1,319.22 2
04/30/97 13.62% 16.47% 1,237.92 1,290.18 2
05/23/97 11.13% 14.18% 1,185.05 1,237.62 2
05/31/97 11.05% 14.14% 1,180.90 1,233.50 2
06/30/97 8.95% 12.29% 1,137.53 1,190.39 2
07/31/97 5.17% 8.81% 1,074.10 1,127.33 2
08/31/97 7.86% 11.71% 1,106.21 1,159.25 2
09/30/97 4.43% 8.62% 1,055.71 1,109.06 2
10/31/97 7.45% 11.93% 1,087.45 1,140.61 2
11/30/97 4.40% 9.30% 1,047.86 1,101.26 2
12/31/97 1.73% 7.09% 1,017.32 1,070.90 2
01/31/98 1.12% 8.12% 1,010.29 1,074.10 1
02/28/98 -3.85% 3.15% 967.60 1,026.32 1
03/31/98 -8.32% -1.32% 936.67 990.06 1
04/30/98 -7.38% -0.38% 949.81 997.42 1
05/31/98 -5.61% 1.39% 966.72 1,008.13 1
06/30/98 -5.16% 1.84% 973.67 1,009.26 1
07/31/98 -2.01% 4.99% 991.55 1,020.64 1
08/31/98 9.30% 16.30% 1,030.18 1,051.77 1
09/30/98 3.58% 10.58% 1,008.91 1,025.68 1
10/31/98 -2.58% 4.42% 995.64 1,007.25 1
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - T ROWE PRICE EQUITY INCOME
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
---------------
0.002022
===============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
Date AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/98 2.050041 1000 2,050.04 0.000042904 0.08421088 2,038.98 2,049.53 7.00% 10.00% 1,906.80 0.08
12/31/98 2.060734 1000 2,060.73 0.000044334 0.09039681 2,049.53 2,049.53 7.00% 10.00% 1,906.06 0.00
12/31/98 2,049.53
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
Date W/ Surr W/O Surr W/ Surr W/O Surr
11/30/98 -6.48% 0.52% 994.32 1,000.44 1
12/31/98 -7.00% 0.00% 1,000.00 1,000.00 1
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - T ROWE PRICE GROWTH STOCK
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
-------------
0.002022
=============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr
TOTAL RETURN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01/03/95 1.000000 1000 1,000.00 1,000.00 2,572.93 5.00% 10.00% 2,535.79
01/31/95 0.999935 1000 999.94 0.00015511 0.15511 999.78 2,572.93 5.00% 10.00% 2,535.80
02/28/95 1.065730 1000 1,065.73 0.00015511 0.15508 1,065.41 2,572.93 5.00% 10.00% 2,532.52
03/31/95 1.134246 1000 1,134.25 0.00017173 0.18296 1,133.72 2,572.93 5.00% 10.00% 2,529.11
04/28/95 1.145983 1000 1,145.98 0.00015511 0.17585 1,145.28 2,572.93 5.00% 10.00% 2,528.53
04/30/95 1.145983 1000 1,145.98 0.00016619 0.18842 1,145.27 2,572.93 5.00% 10.00% 2,528.53
05/31/95 1.169406 1000 1,169.41 0.00017173 0.19668 1,168.48 2,572.93 5.00% 10.00% 2,527.37
06/30/95 1.212767 1000 1,212.77 0.00016619 0.19419 1,211.61 2,572.93 5.00% 10.00% 2,525.21
07/31/95 1.253007 1000 1,253.01 0.00017173 0.20807 1,251.60 2,572.93 5.00% 10.00% 2,523.21
08/31/95 1.256482 1000 1,256.48 0.00017173 0.21494 1,254.86 2,572.93 5.00% 10.00% 2,523.05
09/30/95 1.294690 1000 1,294.69 0.00016619 0.20855 1,292.81 2,572.93 5.00% 10.00% 2,521.15
10/31/95 1.290145 1000 1,290.15 0.00017173 0.22202 1,288.05 2,572.93 5.00% 10.00% 2,521.39
11/30/95 1.329158 1000 1,329.16 0.00016619 0.21406 1,326.78 2,572.93 5.00% 10.00% 2,519.45
12/31/95 1.353339 1000 1,353.34 0.00017173 0.22785 1,350.69 2,572.93 5.00% 10.00% 2,518.26
01/31/96 1.387105 1000 1,387.11 0.00017173 0.23196 1,384.16 2,572.93 6.00% 10.00% 2,505.32
02/29/96 1.403287 1000 1,403.29 0.00016065 0.22237 1,400.09 2,572.93 6.00% 10.00% 2,504.36
03/31/96 1.406656 1000 1,406.66 0.00017173 0.24044 1,403.21 2,572.93 6.00% 10.00% 2,504.17
04/30/96 1.443233 1000 1,443.23 0.00016619 0.23320 1,439.46 2,572.93 5.00% 10.00% 2,513.82
05/31/96 1.457237 1000 1,457.24 0.00017173 0.24720 1,453.18 2,572.93 5.00% 10.00% 2,513.13
06/30/96 1.450703 1000 1,450.70 0.00016619 0.24151 1,446.43 2,572.93 5.00% 10.00% 2,513.47
07/31/96 1.384191 1000 1,384.19 0.00017173 0.24840 1,379.86 2,572.93 5.00% 10.00% 2,516.80
08/31/96 1.437279 1000 1,437.28 0.00017173 0.23697 1,432.55 2,572.93 5.00% 10.00% 2,514.17
09/30/96 1.513026 1000 1,513.03 0.00016619 0.23808 1,507.81 2,572.93 5.00% 10.00% 2,510.40
10/31/96 1.525121 1000 1,525.12 0.00017173 0.25894 1,519.60 2,572.93 5.00% 10.00% 2,509.81
11/30/96 1.622493 1000 1,622.49 0.00016619 0.25255 1,616.37 2,572.93 5.00% 10.00% 2,504.97
12/31/96 1.611613 1000 1,611.61 0.00017173 0.27758 1,605.25 2,572.93 5.00% 10.00% 2,505.53
01/31/97 1.667027 1000 1,667.03 0.00017173 0.27567 1,660.17 2,572.93 6.00% 10.00% 2,488.76
02/28/97 1.699202 1000 1,699.20 0.00015511 0.25751 1,691.95 2,572.93 6.00% 10.00% 2,486.85
03/31/97 1.603139 1000 1,603.14 0.00017173 0.29056 1,596.01 2,572.93 6.00% 10.00% 2,492.60
04/30/97 1.667294 1000 1,667.29 0.00016619 0.26524 1,659.62 2,572.93 6.00% 10.00% 2,488.79
05/23/97 1.774078 1000 1,774.08 0.00012741 0.21146 1,765.70 2,572.93 6.00% 10.00% 2,482.42
05/31/97 1.784376 1000 1,784.38 0.00001144 0.01899 1,776.14 2,572.93 6.00% 10.00% 2,481.80
06/30/97 1.869400 1000 1,869.40 0.00004290 0.07620 1,860.69 2,572.93 6.00% 10.00% 2,476.72
07/31/97 1.991559 1000 1,991.56 0.00004433 0.08249 1,982.20 2,572.93 6.00% 10.00% 2,469.43
08/31/97 1.887395 1000 1,887.40 0.00004433 0.08788 1,878.44 2,572.93 6.00% 10.00% 2,475.66
09/30/97 1.989414 1000 1,989.41 0.00004290 0.08059 1,979.89 2,572.93 6.00% 10.00% 2,469.57
10/31/97 1.931644 1000 1,931.64 0.00004433 0.08778 1,922.31 2,572.93 6.00% 10.00% 2,473.03
11/30/97 1.998242 1000 1,998.24 0.00004290 0.08248 1,988.51 2,572.93 6.00% 10.00% 2,469.05
12/31/97 2.041653 1000 2,041.65 0.00004433 0.08816 2,031.62 2,572.93 6.00% 10.00% 2,466.47
01/31/98 2.077348 1000 2,077.35 0.00004433 0.09007 2,067.05 2,572.93 7.00% 10.00% 2,428.23
02/28/98 2.244469 1000 2,244.47 0.00004004 0.08277 2,233.26 2,572.93 7.00% 10.00% 2,416.60
03/31/98 2.353033 1000 2,353.03 0.00004433 0.09901 2,341.18 2,572.93 7.00% 10.00% 2,409.05
04/30/98 2.363742 1000 2,363.74 0.00004290 0.10045 2,351.73 2,572.93 7.00% 10.00% 2,408.31
05/31/98 2.300606 1000 2,300.61 0.00004433 0.10426 2,288.81 2,572.93 7.00% 10.00% 2,412.71
06/30/98 2.377816 1000 2,377.82 0.00004290 0.09820 2,365.53 2,572.93 7.00% 10.00% 2,407.34
07/31/98 2.356436 1000 2,356.44 0.00004433 0.10487 2,344.16 2,572.93 7.00% 10.00% 2,408.84
08/31/98 1.992370 1000 1,992.37 0.00004433 0.10393 1,981.88 2,572.93 7.00% 10.00% 2,434.20
09/30/98 2.104984 1000 2,104.98 0.00004290 0.08503 2,093.82 2,572.93 7.00% 10.00% 2,426.36
10/31/98 2.277609 1000 2,277.61 0.00004433 0.09283 2,265.44 2,572.93 7.00% 10.00% 2,414.35
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
n W/ Surr W/O Surr W/ Surr W/O Surr
153.58% 157.29%
01/03/95 3.99 26.23% 26.69% 2,535.79 2,572.93 3
01/31/95 3.92 26.82% 27.29% 2,536.36 2,573.49 3
02/28/95 3.84 25.28% 25.80% 2,377.04 2,414.97 3 0.00005508
03/31/95 3.76 23.81% 24.38% 2,230.80 2,269.45 3 0.00005508
04/28/95 3.68 24.02% 24.60% 2,207.79 2,246.55 3 0.00005508
04/30/95 3.67 24.06% 24.65% 2,207.81 2,246.58 3 0.00005508
05/31/95 3.59 23.98% 24.60% 2,162.96 2,201.95 3 0.00005508
06/30/95 3.51 23.30% 23.96% 2,084.18 2,123.56 3 0.00005508
07/31/95 3.42 22.74% 23.44% 2,015.99 2,055.71 3 0.00005508
08/31/95 3.34 23.28% 24.01% 2,010.62 2,050.37 3 0.00005508
09/30/95 3.25 22.78% 23.55% 1,950.13 1,990.18 3 0.00005508
10/31/95 3.17 23.60% 24.39% 1,957.53 1,997.54 3 0.00005508
11/30/95 3.09 23.08% 23.92% 1,898.92 1,939.22 3 0.00005508
12/31/95 3.00 23.05% 23.94% 1,864.42 1,904.89 3 0.00005508
01/31/96 2.92 22.55% 23.67% 1,809.99 1,858.83 2 0.00005508
02/29/96 2.84 22.74% 23.91% 1,788.72 1,837.69 2 0.00005508
03/31/96 2.75 23.41% 24.63% 1,784.61 1,833.60 2 0.00005508
04/30/96 2.67 23.21% 24.29% 1,746.36 1,787.42 3 0.00005508
05/31/96 2.59 23.59% 24.72% 1,729.40 1,770.55 3 0.00005508
06/30/96 2.50 24.69% 25.86% 1,737.71 1,778.82 3 0.00005508
07/31/96 2.42 28.20% 29.38% 1,823.95 1,864.63 3 0.00005508
08/31/96 2.33 27.25% 28.51% 1,755.03 1,796.05 3 0.00005508
09/30/96 2.25 25.40% 26.78% 1,664.94 1,706.41 3 0.00005508
10/31/96 2.17 26.05% 27.51% 1,651.63 1,693.16 3 0.00005508
11/30/96 2.08 23.38% 24.98% 1,549.76 1,591.80 3 0.00005508
12/31/96 2.00 24.93% 26.60% 1,560.83 1,602.82 3 0.00005508
01/31/97 1.92 23.54% 25.71% 1,499.10 1,549.80 2 0.00005508
02/28/97 1.84 23.31% 25.61% 1,469.81 1,520.68 2 0.00005508
03/31/97 1.75 28.95% 31.30% 1,561.77 1,612.10 2 0.00005508
04/30/97 1.67 27.44% 30.00% 1,499.62 1,550.32 2 0.00005508
05/23/97 1.61 23.60% 26.38% 1,405.92 1,457.17 2 0.00005508
05/31/97 1.59 23.48% 26.32% 1,397.30 1,448.61 2 0.00005508
06/30/97 1.50 20.94% 24.04% 1,331.07 1,382.78 2 0.00005508
07/31/97 1.42 16.75% 20.18% 1,245.80 1,298.01 2 0.00005508
08/31/97 1.33 22.99% 26.59% 1,317.93 1,369.72 2 0.00005508
09/30/97 1.25 19.30% 23.28% 1,247.33 1,299.53 2 0.00005508
10/31/97 1.17 24.09% 28.37% 1,286.48 1,338.45 2 0.00005508
11/30/97 1.08 22.08% 26.81% 1,241.66 1,293.90 2 0.00005508
12/31/97 1.00 21.40% 26.64% 1,214.04 1,266.44 2 0.00005508
01/31/98 0.92 17.47% 24.47% 1,158.78 1,221.81 1 0.00005508
02/28/98 0.84 8.21% 15.21% 1,068.38 1,126.03 1 0.00005508
03/31/98 0.75 2.90% 9.90% 1,021.76 1,073.71 1 0.00005508
04/30/98 0.67 2.41% 9.41% 1,016.08 1,062.20 1 0.00005508
05/31/98 0.59 5.41% 12.41% 1,031.39 1,071.01 1 0.00005508
06/30/98 0.50 1.77% 8.77% 1,008.87 1,043.28 1 0.00005508
07/31/98 0.42 2.76% 9.76% 1,011.47 1,039.81 1 0.00005508
08/31/98 0.33 22.82% 29.82% 1,071.13 1,091.16 1 0.00005508
09/30/98 0.25 15.88% 22.88% 1,037.85 1,053.31 1 0.00005508
10/31/98 0.17 6.57% 13.57% 1,010.70 1,021.50 1 0.00005508
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR - T ROWE PRICE GROWTH STOCK
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
-------------
0.002022
=============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/98 2.413266 1000 2,413.27 0.00004290 0.09720 2,400.27 2,572.93 7.00% 10.00% 2,404.91
12/31/98 2.586964 1000 2,586.96 0.00004433 0.10641 2,572.93 2,572.93 7.00% 10.00% 2,392.82
12/31/98 2,572.93
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
n W/ Surr W/O Surr W/ Surr W/O Surr
11/30/98 0.08 0.19% 7.19% 1,000.16 1,005.92 1 0.00005508
12/31/98 0.00 -7.00% 0.00% 1,000.00 1,000.00 1 0.00005508
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR- OPPORTUNITY VALUE
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
--------------
0.002022
==============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr n
TOTAL RETURN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/18/96 1.000000 1000 1,000.00 1,000.00 1,195.04 5.00% 10.00% 1,151.02 2.12
11/30/96 0.999582 1000 999.58 0.00006648 0.07 999.52 1,195.04 5.00% 10.00% 1,151.04 2.08
12/13/96 0.999050 1000 999.05 0.00007202 0.07 998.91 1,195.04 5.00% 10.00% 1,151.07 2.05
12/31/96 1.004355 1000 1,004.36 0.00017173 0.17 1,004.12 1,195.04 5.00% 10.00% 1,150.81 2.00
01/31/97 1.026105 1000 1,026.11 0.00017173 0.17 1,025.69 1,195.04 6.00% 10.00% 1,140.67 1.92
02/28/97 1.013058 1000 1,013.06 0.00015511 0.16 1,012.49 1,195.04 6.00% 10.00% 1,141.46 1.84
03/31/97 0.996937 1000 996.94 0.00017173 0.17 996.20 1,195.04 6.00% 10.00% 1,142.44 1.75
04/30/97 1.022633 1000 1,022.63 0.00016619 0.17 1,021.71 1,195.04 6.00% 10.00% 1,140.91 1.67
05/23/97 1.049539 1000 1,049.54 0.00012741 0.13 1,048.47 1,195.04 6.00% 10.00% 1,139.30 1.61
05/31/97 1.055186 1000 1,055.19 0.00001144 0.01 1,054.10 1,195.04 6.00% 10.00% 1,138.96 1.59
06/30/97 1.092575 1000 1,092.58 0.00004290 0.05 1,091.40 1,195.04 6.00% 10.00% 1,136.73 1.50
07/31/97 1.153530 1000 1,153.53 0.00004433 0.05 1,152.24 1,195.04 6.00% 10.00% 1,133.08 1.42
08/31/97 1.114540 1000 1,114.54 0.00004433 0.05 1,113.24 1,195.04 6.00% 10.00% 1,135.42 1.33
09/30/97 1.150572 1000 1,150.57 0.00004290 0.05 1,149.19 1,195.04 6.00% 10.00% 1,133.26 1.25
10/31/97 1.129340 1000 1,129.34 0.00004433 0.05 1,127.93 1,195.04 6.00% 10.00% 1,134.53 1.17
11/30/97 1.153625 1000 1,153.63 0.00004290 0.05 1,152.13 1,195.04 6.00% 10.00% 1,133.08 1.08
12/31/97 1.155963 1000 1,155.96 0.00004433 0.05 1,154.42 1,195.04 6.00% 10.00% 1,132.95 1.00
01/31/98 1.164327 1000 1,164.33 0.00004433 0.05 1,162.72 1,195.04 7.00% 10.00% 1,113.65 0.92
02/28/98 1.215955 1000 1,215.96 0.00004004 0.05 1,214.23 1,195.04 7.00% 10.00% 1,110.04 0.84
03/31/98 1.248621 1000 1,248.62 0.00004433 0.05 1,246.80 1,195.04 7.00% 10.00% 1,107.76 0.75
04/30/98 1.256831 1000 1,256.83 0.00004290 0.05 1,254.94 1,195.04 7.00% 10.00% 1,107.19 0.67
05/31/98 1.239847 1000 1,239.85 0.00004433 0.06 1,237.93 1,195.04 7.00% 10.00% 1,108.39 0.59
06/30/98 1.254961 1000 1,254.96 0.00004290 0.05 1,252.96 1,195.04 7.00% 10.00% 1,107.33 0.50
07/31/98 1.206977 1000 1,206.98 0.00004433 0.06 1,205.00 1,195.04 7.00% 10.00% 1,110.69 0.42
08/31/98 1.026154 1000 1,026.15 0.00004433 0.05 1,024.42 1,195.04 7.00% 10.00% 1,123.33 0.33
09/30/98 1.076996 1000 1,077.00 0.00004290 0.04 1,075.13 1,195.04 7.00% 10.00% 1,119.78 0.25
10/31/98 1.153241 1000 1,153.24 0.00004433 0.05 1,151.20 1,195.04 7.00% 10.00% 1,114.46 0.17
11/30/98 1.196865 1000 1,196.87 0.00004290 0.05 1,194.70 1,195.04 7.00% 10.00% 1,111.41 0.08
12/31/98 1.197263 1000 1,197.26 0.00004433 0.05 1,195.04 1,195.04 7.00% 10.00% 1,111.39 0.00
12/31/98 1,195.04
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
W/ Surr W/O Surr W/ Surr W/O Surr
15.10% 19.50%
11/18/96 6.87% 8.78% 1,151.02 1,195.04 3
11/30/96 7.00% 8.95% 1,151.60 1,195.62 3
12/13/96 7.16% 9.14% 1,152.32 1,196.34 3
12/31/96 7.06% 9.09% 1,146.09 1,190.14 3
01/31/97 5.70% 8.31% 1,112.10 1,165.11 2
02/28/97 6.74% 9.44% 1,127.38 1,180.30 2
03/31/97 8.12% 10.94% 1,146.79 1,199.60 2
04/30/97 6.83% 9.83% 1,116.66 1,169.64 2
05/23/97 5.30% 8.48% 1,086.64 1,139.80 2
05/31/97 5.00% 8.23% 1,080.51 1,133.71 2
06/30/97 2.74% 6.22% 1,041.53 1,094.96 2
07/31/97 -1.17% 2.60% 983.37 1,037.14 2
08/31/97 1.49% 5.46% 1,019.92 1,073.48 2
09/30/97 -1.11% 3.17% 986.14 1,039.90 2
10/31/97 0.50% 5.08% 1,005.86 1,059.50 2
11/30/97 -1.53% 3.43% 983.46 1,037.24 2
12/31/97 -1.86% 3.52% 981.40 1,035.19 2
01/31/98 -4.22% 2.78% 961.31 1,025.41 1
02/28/98 -8.58% -1.58% 927.55 986.73 1
03/31/98 -11.15% -4.15% 914.77 968.56 1
04/30/98 -11.77% -4.77% 919.36 967.70 1
05/31/98 -10.46% -3.46% 937.25 979.54 1
06/30/98 -11.62% -4.62% 939.61 976.42 1
07/31/98 -7.83% -0.83% 966.41 996.53 1
08/31/98 9.66% 16.66% 1,031.29 1,052.84 1
09/30/98 4.15% 11.15% 1,010.31 1,027.01 1
10/31/98 -3.19% 3.81% 994.59 1,006.27 1
11/30/98 -6.97% 0.03% 993.88 1,000.02 1
12/31/98 -7.00% 0.00% 1,000.00 1,000.00 1
<PAGE>
<TABLE>
<CAPTION>
AUSA ENDEAVOR -ENHANCED IDEX
PERFORMANCE CALCULATIONS Surrender provisions:
Year Rate
<S> <C> <C> <C>
Initial investment $1,000 1 7.00%
AUV 1.000000 2 6.00%
Units purchased 1,000.000 3 5.00%
4 4.00%
5 3.00%
Additional .15% M&E factor 0.001500 6 2.00%
Contract Charge Factor 0.000522 7 1.00%
--------------
0.002022
==============
<CAPTION>
Contract Contract Ending
Actual Acct Value Charge Charge Adjusted Redeemable Surrender W/D ERV
AUV # Units Before Chrge Factor Deduction Acct Value Value Charge Available W/ Surr
TOTAL RETURN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05/01/97 1.000000 1000 1,000.00 1,000.00 1,572.73 6.00% 10.00% 1,522.17
05/23/97 1.061110 1000 1,061.11 0.00012187 1,061.11 1,572.73 6.00% 10.00% 1,518.50
05/31/97 1.068794 1000 1,068.79 0.00001144 0.011441 1,068.78 1,572.73 6.00% 10.00% 1,518.04
06/30/97 1.116281 1000 1,116.28 0.00004290 0.045855 1,116.22 1,572.73 6.00% 10.00% 1,515.19
07/31/97 1.207479 1000 1,207.48 0.00004433 0.049487 1,207.37 1,572.73 6.00% 10.00% 1,509.72
08/31/97 1.144311 1000 1,144.31 0.00004433 0.053528 1,144.15 1,572.73 6.00% 10.00% 1,513.52
09/30/97 1.193454 1000 1,193.45 0.00004290 0.049089 1,193.23 1,572.73 6.00% 10.00% 1,510.57
10/31/97 1.154179 1000 1,154.18 0.00004433 0.052901 1,153.92 1,572.73 6.00% 10.00% 1,512.93
11/30/97 1.202381 1000 1,202.38 0.00004290 0.049508 1,202.06 1,572.73 6.00% 10.00% 1,510.04
12/31/97 1.216554 1000 1,216.55 0.00004433 0.053292 1,216.17 1,572.73 6.00% 10.00% 1,509.20
01/31/98 1.232817 1000 1,232.82 0.00004433 0.053918 1,232.38 1,572.73 7.00% 10.00% 1,486.46
02/28/98 1.320241 1000 1,320.24 0.00004004 0.049349 1,319.72 1,572.73 7.00% 10.00% 1,480.35
03/31/98 1.386507 1000 1,386.51 0.00004433 0.058509 1,385.91 1,572.73 7.00% 10.00% 1,475.72
04/30/98 1.405436 1000 1,405.44 0.00004290 0.059461 1,404.77 1,572.73 7.00% 10.00% 1,474.40
05/31/98 1.387877 1000 1,387.88 0.00004433 0.062279 1,387.16 1,572.73 7.00% 10.00% 1,475.63
06/30/98 1.434343 1000 1,434.34 0.00004290 0.059515 1,433.53 1,572.73 7.00% 10.00% 1,472.38
07/31/98 1.421634 1000 1,421.63 0.00004433 0.063555 1,420.77 1,572.73 7.00% 10.00% 1,473.28
08/31/98 1.214128 1000 1,214.13 0.00004433 0.062989 1,213.33 1,572.73 7.00% 10.00% 1,487.80
09/30/98 1.291221 1000 1,291.22 0.00004290 0.052057 1,290.32 1,572.73 7.00% 10.00% 1,482.41
10/31/98 1.394606 1000 1,394.61 0.00004433 0.057205 1,393.58 1,572.73 7.00% 10.00% 1,475.18
11/30/98 1.487865 1000 1,487.87 0.00004290 0.05979 1,486.71 1,572.73 7.00% 10.00% 1,468.66
12/31/98 1.574026 1000 1,574.03 0.00004433 0.065912 1,572.73 1,572.73 7.00% 10.00% 1,462.64
12/31/98 1,572.73
</TABLE>
ERV of ERV of
Avg Ann Avg Ann $1,000 $1,000
n W/ Surr W/O Surr W/ Surr W/O Surr
52.22% 57.27%
05/01/97 1.67 28.63% 31.18% 1,522.17 1,572.73 2
05/23/97 1.61 24.96% 27.72% 1,431.05 1,482.16 2
05/31/97 1.59 24.76% 27.57% 1,420.35 1,471.52 2
06/30/97 1.50 22.53% 25.60% 1,357.43 1,408.98 2
07/31/97 1.42 17.06% 20.48% 1,250.43 1,302.61 2
08/31/97 1.33 23.33% 26.93% 1,322.83 1,374.58 2
09/30/97 1.25 20.73% 24.68% 1,265.95 1,318.04 2
10/31/97 1.17 26.12% 30.38% 1,311.12 1,362.95 2
11/30/97 1.08 23.40% 28.11% 1,256.21 1,308.36 2
12/31/97 1.00 24.09% 29.32% 1,240.94 1,293.18 2
01/31/98 0.92 20.62% 27.62% 1,187.12 1,250.01 1
02/28/98 0.84 12.17% 19.17% 1,101.08 1,158.40 1
03/31/98 0.75 6.48% 13.48% 1,048.44 1,099.96 1
04/30/98 0.67 4.96% 11.96% 1,033.00 1,078.76 1
05/31/98 0.59 6.38% 13.38% 1,036.92 1,076.39 1
06/30/98 0.50 2.71% 9.71% 1,013.57 1,047.83 1
07/31/98 0.42 3.70% 10.70% 1,015.33 1,043.52 1
08/31/98 0.33 22.62% 29.62% 1,070.54 1,090.59 1
09/30/98 0.25 14.89% 21.89% 1,035.60 1,051.15 1
10/31/98 0.17 5.86% 12.86% 1,009.56 1,020.42 1
11/30/98 0.08 -1.21% 5.79% 998.96 1,004.79 1
12/31/98 0.00 -7.00% 0.00% 1,000.00 1,000.00 1
