<PAGE>
Annual Report
. Separate Account A of Pacific Life Insurance Company
[LOGO OF SEPARATE ACCOUNT A]
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Pacific Life Insurance Company
We have audited the accompanying statement of assets and liabilities of
Separate Account A (comprised of the Money Market, High Yield Bond, Managed
Bond, Government Securities, Aggressive Equity, Growth LT, Equity Income,
Multi-Strategy, Equity, Bond and Income, Equity Index, International and
Emerging Markets Variable Accounts) as of December 31, 1998 and the related
statement of operations for the year then ended and statement of changes in
net assets for each of the two years then ended. These financial statements
are the responsibility of the Separate Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. 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, such financial statements present fairly, in all material
respects, the financial position of each of the respective Variable Accounts
constituting Separate Account A as of December 31, 1998 and the results of
their operations for the year then ended and the changes in their net assets
for each of the two years then ended, in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
Costa Mesa, California
February 5, 1999
D-1
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity
Market Bond Bond Securities Equity LT Income
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific
Select Fund:
Money Market Portfolio
(16,460 shares; cost
$165,674).............. $165,495
High Yield Bond
Portfolio (9,470
shares; cost $91,840).. $88,418
Managed Bond Portfolio
(17,788 shares; cost
$198,866).............. $202,667
Government Securities
Portfolio (4,882
shares; cost $52,683).. $53,600
Aggressive Equity
Portfolio (5,596
shares; cost $63,560).. $70,833
Growth LT Portfolio
(8,302 shares; cost
$160,484).............. $217,531
Equity Income Portfolio
(9,940 shares; cost
$241,615).............. $267,300
Receivables:
Due from Pacific Life
Insurance Company...... 1,061 496 629 91 82
Fund shares redeemed... 821 424
------------------------------------------------------------------
Total Assets............ 166,556 88,914 203,296 53,691 70,915 218,352 267,724
------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 821 424
Fund shares purchased.. 1,061 496 629 91 82
Other Liabilities...... 8 5 12 3 4 12 14
------------------------------------------------------------------
Total Liabilities....... 1,069 501 641 94 86 833 438
------------------------------------------------------------------
NET ASSETS.............. $165,487 $88,413 $202,655 $53,597 $70,829 $217,519 $267,286
------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-2
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Multi- Bond and Equity Inter- Emerging
Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account
-----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific
Select Fund:
Multi-Strategy Portfolio
(7,069 shares; cost
$114,635)............... $122,450
Equity Portfolio (4,313
shares; cost $109,221).. $126,241
Bond and Income
Portfolio (4,301 shares;
cost $55,863)........... $57,204
Equity Index Portfolio
(9,534 shares; cost
$260,033)............... $308,481
International Portfolio
(12,672 shares; cost
$180,069)............... $200,241
Emerging Markets
Portfolio (3,889 shares;
cost $33,024)........... $26,630
Receivables:
Due from Pacific Life
Insurance Company....... 1,483 253 1,101
Fund shares redeemed.... 128 252 50
-----------------------------------------------------
Total Assets............. 123,933 126,369 57,457 308,733 201,342 26,680
-----------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company....... 128 252 50
Fund shares purchased... 1,483 253 1,101
Other Liabilities....... 7 6 3 16 15 2
-----------------------------------------------------
Total Liabilities........ 1,490 134 256 268 1,116 52
-----------------------------------------------------
NET ASSETS............... $122,443 $126,235 $57,201 $308,465 $200,226 $26,628
-----------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-3
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity
Market Bond Bond Securities Equity LT Income
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $3,905 $5,582 $7,633 $1,926 $18 $3,819 $14,030
EXPENSES
Mortality and expense
risk fee and
administrative fee..... 999 842 1,634 410 527 1,539 2,059
-------------------------------------------------------------------
Net Investment Income
(Loss).................. 2,906 4,740 5,999 1,516 (509) 2,280 11,971
-------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss from
security transactions.. (58) (494) (30) (110) (878) (779) (1,109)
Net unrealized
appreciation
(depreciation) on
investments............ (180) (3,466) 2,685 498 6,570 55,209 21,490
-------------------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss) on Investments... (238) (3,960) 2,655 388 5,692 54,430 20,381
-------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS......... $2,668 $780 $8,654 $1,904 $5,183 $56,710 $32,352
-------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-4
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Multi- Bond and Equity Inter- Emerging
Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account
---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............... $5,164 $3,358 $1,884 $3,409 $9,214 $296
EXPENSES
Mortality and expense
risk fee and
administrative fee...... 905 971 424 2,400 1,880 267
---------------------------------------------------------
Net Investment Income.... 4,259 2,387 1,460 1,009 7,334 29
---------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss from
security transactions.... (196) (797) (33) (574) (21,623) (511)
Net unrealized
appreciation
(depreciation) on
investments.............. 6,826 15,831 754 41,753 19,632 (5,677)
---------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss) on Investments.... 6,630 15,034 721 41,179 (1,991) (6,188)
---------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS.......... $10,889 $17,421 $2,181 $42,188 $5,343 $(6,159)
---------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-5
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity
Market Bond Bond Securities Equity LT Income
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss)................. $2,906 $4,740 $5,999 $1,516 $(509) $2,280 $11,971
Net realized loss from
security transactions.. (58) (494) (30) (110) (878) (779) (1,109)
Net unrealized
appreciation
(depreciation) on
investments............ (180) (3,466) 2,685 498 6,570 55,209 21,490
-------------------------------------------------------------------------
Net Increase in Net
Assets Resulting from
Operations.............. 2,668 780 8,654 1,904 5,183 56,710 32,352
-------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 351,065 39,962 87,821 21,303 27,495 73,268 105,957
Transfers--policy
charges and deductions. (1,089) (545) (815) (488) (66) (916) (508)
Transfers in (from
other variable
accounts).............. 835,702 46,475 89,179 36,728 36,664 87,236 109,598
Transfers out (to other
variable accounts)..... (1,039,166) (25,511) (25,326) (20,846) (15,288) (42,906) (34,858)
Transfers--other....... (16,394) (4,715) (6,242) (1,507) (1,850) (4,496) (7,186)
-------------------------------------------------------------------------
Net Increase in Net
Assets Derived from
Policy Transactions..... 130,118 55,666 144,617 35,190 46,955 112,186 173,003
-------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS.................. 132,786 56,446 153,271 37,094 52,138 168,896 205,355
-------------------------------------------------------------------------
NET ASSETS
Beginning of Year....... 32,701 31,967 49,384 16,503 18,691 48,623 61,931
-------------------------------------------------------------------------
End of Year............. $165,487 $88,413 $202,655 $53,597 $70,829 $217,519 $267,286
-------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-6
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Multi- Bond and Equity Inter- Emerging
Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account
----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income.. $4,259 $2,387 $1,460 $1,009 $7,334 $29
Net realized loss from
security transactions.. (196) (797) (33) (574) (21,623) (511)
Net unrealized
appreciation
(depreciation) on
investments............ 6,826 15,831 754 41,753 19,632 (5,677)
----------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 10,889 17,421 2,181 42,188 5,343 (6,159)
----------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 51,866 52,894 23,998 123,814 92,350 11,607
Transfers--policy
charges and deductions. (403) (205) (237) (884) (747) (69)
Transfers in (from
other variable
accounts).............. 51,532 50,510 29,038 126,137 777,506 14,814
Transfers out (to other
variable accounts)..... (11,701) (20,443) (7,359) (45,516) (735,908) (5,129)
Transfers--other....... (3,563) (3,056) (1,379) (7,270) (5,863) (893)
----------------------------------------------------------
Net Increase in Net
Assets Derived from
Policy Transactions..... 87,731 79,700 44,061 196,281 127,338 20,330
----------------------------------------------------------
NET INCREASE IN NET
ASSETS.................. 98,620 97,121 46,242 238,469 132,681 14,171
----------------------------------------------------------
NET ASSETS
Beginning of Year....... 23,823 29,114 10,959 69,996 67,545 12,457
----------------------------------------------------------
End of Year............. $122,443 $126,235 $57,201 $308,465 $200,226 $26,628
----------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-7
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity
Market Bond Bond Securities Equity LT Income
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss)................. $858 $1,160 $1,052 $403 $(145) $628 $878
Net realized loss from
security transactions.. (42) (11) (8) (26) (91) (70) (21)
Net unrealized
appreciation
(depreciation) on
investments............ (4) (100) 1,048 431 593 1,446 3,631
----------------------------------------------------------------------
Net Increase in Net As-
sets Resulting from
Operations.............. 812 1,049 2,092 808 357 2,004 4,488
----------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 115,302 18,682 26,477 7,751 10,620 24,708 34,531
Transfers--policy
charges and deductions. (22) (547) (78) (202) (16) (123) (86)
Transfers in (from
other variable
accounts).............. 23,430 12,337 16,805 6,324 7,486 19,932 20,296
Transfers out (to other
variable accounts)..... (117,217) (5,630) (2,569) (2,996) (3,496) (7,775) (4,907)
Transfers--other....... (4,919) (837) (968) (2,016) (401) (1,160) (1,054)
----------------------------------------------------------------------
Net Increase in Net As-
sets Derived from
Policy Transactions..... 16,574 24,005 39,667 8,861 14,193 35,582 48,780
----------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS.................... 17,386 25,054 41,759 9,669 14,550 37,586 53,268
----------------------------------------------------------------------
NET ASSETS
Beginning of Year....... 15,315 6,913 7,625 6,834 4,141 11,037 8,663
----------------------------------------------------------------------
End of Year............. $32,701 $31,967 $49,384 $16,503 $18,691 $48,623 $61,931
----------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-8
<PAGE>
SEPARATE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
Multi- Bond and Equity Inter- Emerging
Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account
----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss).................. $478 $234 $257 $796 $1,104 $(35)
Net realized gain (loss)
from security
transactions............ (6) (80) (20) (66) 46 (124)
Net unrealized
appreciation
(depreciation) on
investments............. 847 1,030 557 6,164 (505) (711)
----------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations.......... 1,319 1,184 794 6,894 645 (870)
----------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums................ 12,888 17,040 7,314 40,392 35,445 7,633
Transfers--policy
charges and deductions.. (58) (48) (11) (165) (261) (22)
Transfers in (from other
variable accounts)...... 7,912 10,022 2,387 23,572 28,054 5,556
Transfers out (to other
variable accounts)...... (825) (4,147) (891) (8,496) (7,011) (1,911)
Transfers--other........ (667) (645) (148) (1,264) (4,876) (233)
----------------------------------------------------------
Net Increase in Net
Assets Derived from
Policy Transactions...... 19,250 22,222 8,651 54,039 51,351 11,023
----------------------------------------------------------
NET INCREASE IN NET
ASSETS................... 20,569 23,406 9,445 60,933 51,996 10,153
----------------------------------------------------------
NET ASSETS
Beginning of Year........ 3,254 5,708 1,514 9,063 15,549 2,304
----------------------------------------------------------
End of Year.............. $23,823 $29,114 $10,959 $69,996 $67,545 $12,457
----------------------------------------------------------
</TABLE>
See Notes to Financial Statements
D-9
<PAGE>
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Separate Account A (the "Separate Account") is registered as a unit
investment trust under the Investment Company Act of 1940, as amended, and
during 1998 was comprised of thirteen subaccounts called Variable Accounts: the
Money Market Variable Account, the High Yield Bond Variable Account, the
Managed Bond Variable Account, the Government Securities Variable Account, the
Aggressive Equity Variable Account, the Growth LT Variable Account, the Equity
Income Variable Account, the Multi-Strategy Variable Account, the Equity
Variable Account, the Bond and Income Variable Account, the Equity Index
Variable Account, the International Variable Account, and the Emerging Markets
Variable Account. The assets in each Variable Account are invested in shares of
the corresponding portfolios of Pacific Select Fund (the "Fund"), each of which
pursues different investment objectives and policies. The financial statements
of the Fund, including the schedules of investments, are included in Section B
of this report and should be read in conjunction with the Separate Account's
financial statements.
The Separate Account was established by Pacific Life Insurance Company
(formerly named Pacific Mutual Life Insurance Company - see Note 1 to Financial
Statements of the Fund on B-58) on September 7, 1994 and commenced operations
on January 2, 1996. Under applicable insurance law, the assets and liabilities
of the Separate Account are clearly identified and distinguished from the other
assets and liabilities of Pacific Life. The assets of the Separate Account will
not be charged with any liabilities arising out of any other business conducted
by Pacific Life, but the obligations of the Separate Account, including
benefits related to variable annuities, are obligations of Pacific Life.
The Separate Account held by Pacific Life represents funds from individual
flexible premium variable accumulation deferred annuity contracts (the
"Contracts").
The preparation of the accompanying financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual results
could differ from those estimates.
A. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset values
of the respective portfolios. Valuation of securities held by the Fund is
discussed in the notes to its financial statements.
B. Security Transactions
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal income
tax return of Pacific Life, which is taxed as a life insurance company under
the provisions of the Tax Reform Act of 1986. Under current tax law, no Federal
income taxes are expected to be paid by Pacific Life with respect to the
operations of the Separate Account.
2. DIVIDENDS
During 1998, the Fund declared dividends for each portfolio. The amounts
accrued by the Separate Account for its share of the dividends were reinvested
in additional full and fractional shares of the related portfolio.
3. CHARGES AND EXPENSES
Pacific Life charges the Separate Account daily for mortality and expense
risks assumed and administrative costs incurred in operating the Separate
Account and issuing and administering the Contracts at an annual rate of 1.25%
and 0.15%, respectively, of the average daily net assets of each Variable
Account. Under the Contracts, Pacific Life makes certain deductions from the
net assets of each Variable Account for contract maintenance, any state premium
taxes, and any surrender charges. The operating expenses of the Separate
Account are paid by Pacific Life.
4. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc., a wholly-owned subsidiary of Pacific Life,
is the principal underwriter of variable annuity contracts funded by interests
in the Separate Account, and is compensated by Pacific Life.
D-10
<PAGE>
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
5. SELECTED ACCUMULATION UNIT**
INFORMATION
Selected accumulation unit information for the year ended December 31, 1998
were as follows:
<TABLE>
<CAPTION>
------------
Accumulation
Unit Value
------------
Number of
At Units
Commence- Begin- At Outstanding
Variable ment of ning of End of At End of
Accounts Operations Year Year Year
<C> <S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Money Market 1/02/96 $10.75 $11.16 14,823,792
- -----------------------------------------------------------------------------------------
High Yield
Bond 1/02/96 11.83 11.95 7,396,859
- -----------------------------------------------------------------------------------------
Managed Bond 1/02/96 11.14 11.99 16,897,325
- -----------------------------------------------------------------------------------------
Government
Securities 1/02/96 10.95 11.80 4,543,208
- -----------------------------------------------------------------------------------------
Aggressive
Equity 4/17/96 10.92 12.19 5,808,703
- -----------------------------------------------------------------------------------------
Growth LT 1/02/96 12.71 19.84 10,966,264
- -----------------------------------------------------------------------------------------
Equity Income 1/02/96 14.78 18.10 14,764,834
- -----------------------------------------------------------------------------------------
Multi-
Strategy 1/02/96 13.01 15.17 8,073,603
- -----------------------------------------------------------------------------------------
Equity 1/02/96 14.68 18.85 6,695,038
- -----------------------------------------------------------------------------------------
Bond and
Income 1/02/96 11.23 12.07 4,739,580
- -----------------------------------------------------------------------------------------
Equity
Index 1/02/96 15.69 19.88 15,518,412
- -----------------------------------------------------------------------------------------
International 1/02/96 12.76 13.29 15,066,242
- -----------------------------------------------------------------------------------------
Emerging
Markets 4/17/96 9.28 6.70 3,975,851
- -----------------------------------------------------------------------------------------
</TABLE>
** Accumulation Unit: unit of measure used to calculate the value of a Contract
Owner's interest in a Variable Account during the Accumulation Period.
D-11
<PAGE>
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
6. SEPARATE ACCOUNT'S COST OF INVESTMENTS IN THE FUND SHARES
The investment in the Fund shares are carried at identified cost, which
represents the amount available for investment (including reinvested
distributions of net investment income and realized gains) in such shares
after deduction of mortality and expense risk charges (M&E). The cost and
market value of total Separate Account's investments in the Fund as of
December 31, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
----------------------------------------------------
Govern-
Money High Yield Managed ment Aggressive
Market Bond Bond Securities Equity
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total cost of investments
at beginning of year $32,703 $31,924 $48,271 $16,085 $17,989
Add: Total net proceeds
from policy and
M&E transactions 840,948 62,470 145,734 43,579 52,764
Reinvested distributions
from the Fund:
(a) Net investment
income 3,905 5,109 6,449 1,519 18
(b) Net realized gain 473 1,184 407
----------------------------------------------------
Sub-Total 877,556 99,976 201,638 61,590 70,771
Less: Cost of investments
disposed during the year 711,882 8,136 2,772 8,907 7,211
----------------------------------------------------
Total cost of investments
at end of year 165,674 91,840 198,866 52,683 63,560
Add: Unrealized
appreciation
(depreciation) (179) (3,422) 3,801 917 7,273
----------------------------------------------------
Total market value of
investments at end of
year $165,495 $88,418 $202,667 $53,600 $70,833
----------------------------------------------------
<CAPTION>
Growth Equity Multi- Bond and
LT Income Strategy Equity Income
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total cost of investments
at beginning of year $46,787 $57,738 $22,835 $27,926 $10,371
Add: Total net proceeds
from policy and M&E
transactions 117,430 178,499 88,220 83,656 46,382
Reinvested distributions
from the Fund:
(a) Net investment
income 196 1,341 1,892 278 1,845
(b) Net realized gain 3,623 12,689 3,272 3,080 39
----------------------------------------------------
Sub-Total 168,036 250,267 116,219 114,940 58,637
Less: Cost of investments
disposed during the year 7,552 8,652 1,584 5,719 2,774
----------------------------------------------------
Total cost of investments
at end of year 160,484 241,615 114,635 109,221 55,863
Add: Unrealized
appreciation 57,047 25,685 7,815 17,020 1,341
----------------------------------------------------
Total market value of
investments at end of
year $217,531 $267,300 $122,450 $126,241 $57,204
----------------------------------------------------
<CAPTION>
Equity Inter- Emerging
Index national Markets
-------------------------------
<S> <C> <C> <C>
Total cost of investments
at beginning of year $63,305 $67,008 $13,176
Add: Total net proceeds
from policy and M&E
transactions 197,670 783,172 20,880
Reinvested distributions
from the Fund:
(a) Net investment
income 2,374 1,449 296
(b) Net realized gain 1,035 7,765
-------------------------------
Sub-Total 264,384 859,394 34,352
Less: Cost of investments
disposed during the year 4,351 679,325 1,328
-------------------------------
Total cost of investments
at end of year 260,033 180,069 33,024
Add: Unrealized
appreciation
(depreciation) 48,448 20,172 (6,394)
-------------------------------
Total market value of
investments at end of
year $308,481 $200,241 $26,630
-------------------------------
</TABLE>
D-12
