<PAGE> 1
VINTAGE UNIVERSAL LIFE
ANNUAL REPORT
THE TRAVELERS VARIABLE LIFE INSURANCE SEPARATE ACCOUNT ONE
DECEMBER 31, 1995
[LOGO]
THE TRAVELERS LIFE AND ANNUITY COMPANY
ONE TOWER SQUARE
HARTFORD, CONNECTICUT 06183
<PAGE> 2
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in eligible funds at market value:
Smith Barney/Travelers Series Fund Inc.:
Alliance Growth Portfolio, 7,249 shares (cost $97,826).................. $ 97,577
American Capital Enterprise Portfolio, 4,013 shares (cost $52,308)...... 51,762
Smith Barney High Income Portfolio, 442 shares (cost $4,972)............ 4,897
Smith Barney International Equity Portfolio, 4,626 shares (cost $48,290) 49,408
Smith Barney Income and Growth Portfolio, 2,861 shares (cost $37,140)... 36,787
Smith Barney Money Market Portfolio, 1,468,093 shares (cost $1,468,093). 1,468,093
MFS Total Return Portfolio, 2,443 shares (cost $29,533)................. 29,067
AIM Capital Appreciation Portfolio, 5,854 shares (cost $55,188)......... 56,198
Smith Barney Series Fund:
Total Return Portfolio, 1,757 shares (cost $21,874)..................... 22,379
----------
Total Investments (cost $1,815,224).................................... 1,816,168
----------
Dividends receivable...................................................... 7,708
----------
Total Assets............................................................ 1,823,876
----------
LIABILITIES:
Accrued liabilities....................................................... 333
----------
Total Liabilities....................................................... 333
----------
NET ASSETS................................................................. $1,823,543
==========
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE PERIOD OCTOBER 10, 1995 (DATE OPERATIONS COMMENCED)
TO DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends........................................... $11,018
EXPENSES:
Insurance charges................................... $1,018
Administrative fees................................. 453
-------
Total expenses..................................... 1,471
-------
Net investment income............................. 9,547
-------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN ON
INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold..................... 151,311
Cost of investments sold........................... 151,309
-------
Net realized gain................................. 2
Unrealized gain on investments:
December 31, 1995.................................. 944
-------
Net realized gain and change in unrealized gain... 946
-------
Net increase in net assets resulting from operations $10,493
=======
</TABLE>
See Notes to Financial Statements
-2-
<PAGE> 4
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 10, 1995 (DATE OPERATIONS COMMENCED)
TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
1995
----
<S> <C>
OPERATIONS:
Net investment income....................................... $ 9,547
Net realized gain from investment transactions.............. 2
Net change in unrealized gain on investments................ 944
----------
Net increase in net assets resulting from operations....... 10,493
----------
UNIT TRANSACTIONS:
Participant premium payments
(applicable to 1,807,237 units)............................ 1,818,712
Participant transfers from other Travelers accounts
(applicable to 348,619 units).............................. 349,129
Contract surrenders
(applicable to 5,623 units)................................ (5,661)
Participant transfers to other Travelers accounts
(applicable to 346,689 units).............................. (349,130)
----------
Net increase in net assets resulting from unit transactions 1,813,050
----------
Net increase in net assets................................ 1,823,543
NET ASSETS:
Beginning of period......................................... -
----------
End of period............................................... $1,823,543
==========
</TABLE>
See Notes to Financial Statements
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<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Travelers Variable Life Insurance Separate Account One ("Separate Account
One") is a separate account of The Travelers Life and Annuity Company
("Travelers Life"), which is a wholly owned subsidiary of The Travelers
Insurance Company, an indirect wholly owned subsidiary of Travelers Group Inc.,
and is available for funding certain variable life insurance contracts issued
by Travelers Life. Separate Account One is registered under the Investment
Company Act of 1940, as amended, as a unit investment trust.
Participant premium payments applied to Separate Account One are invested in
one or more eligible funds in accordance with the selection made by the
contract owner. As of December 31, 1995, the eligible funds available under
Separate Account One are: Zero Coupon Bond Fund Portfolio Series 1998, Zero
Coupon Bond Fund Portfolio Series 2000 and Zero Coupon Bond Fund Portfolio
Series 2005 of The Travelers Series Trust; Alliance Growth Portfolio, American
Capital Enterprise Portfolio, TBC Managed Income Portfolio, Smith Barney High
Income Portfolio, Smith Barney International Equity Portfolio, Smith Barney
Income and Growth Portfolio, Smith Barney Money Market Portfolio, Putnam
Diversified Income Portfolio, MFS Total Return Portfolio and AIM Capital
Appreciation Portfolio of Smith Barney/Travelers Series Fund Inc.; and Total
Return Portfolio of Smith Barney Series Fund. All the funds are Massachusetts
business trusts except for Smith Barney/Travelers Series Fund Inc. which is
incorporated under Maryland law. Smith Barney/Travelers Series Fund Inc. and
Smith Barney Series Fund are managed by Smith Barney Mutual Funds Management
Inc., an indirect wholly owned subsidiary of Travelers Group Inc. Not all
funds are available in all states.
The following is a summary of significant accounting policies consistently
followed by Separate Account One in the preparation of its financial
statements.
SECURITY VALUATION. Investments are valued daily at the net asset values per
share of the underlying funds.
FEDERAL INCOME TAXES. The operations of Separate Account One form a part of
the total operations of Travelers Life and are not taxed separately. Travelers
Life is taxed as a life insurance company under the Internal Revenue Code of
1986, as amended (the "Code"). Under existing federal income tax law, no taxes
are payable on the investment income of Separate Account One. Separate Account
One is not taxed as a "regulated investment company" under Subchapter M of the
Code.
OTHER. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Security transactions are accounted for on the trade date. Dividend income is
recorded on the ex-dividend date.
2. INVESTMENTS
Purchases and sales of investments aggregated $1,966,533 and $151,311,
respectively, for the period ended December 31, 1995. Realized gains and
losses from investment transactions are reported on an identified-cost basis.
The cost of investments in eligible funds was $1,815,224 at December 31, 1995.
Gross unrealized appreciation for all investments at December 31, 1995 was
$2,633. Gross unrealized depreciation for all investments at December 31, 1995
was $1,689.
3. CONTRACT CHARGES
Insurance charges are paid to Travelers Life for the mortality and expense
risks assumed by Travelers Life. These charges are equivalent to 0.90% of the
average net assets of Separate Account One on an annual basis. This charge
will be reduced to 0.75% for any calendar year that follows a calendar year in
which the average participant's net fund growth rate (as described in the
prospectus) is 6.5% or greater.
Administrative fees are paid to Travelers Life for administrative expenses
incurred by Travelers Life. This charge is equivalent to 0.40% of the average
net assets of Separate Account One on an annual basis.
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<PAGE> 6
NOTES TO FINANCIAL STATEMENTS - CONTINUED
4. NET CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
DECEMBER 31, 1995
------------------------------
UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
Smith Barney/Travelers Series Fund Inc.:
Alliance Growth Portfolio.................... 97,238 $1.033 $ 100,444
American Capital Enterprise Portfolio........ 52,649 1.014 53,373
Smith Barney High Income Portfolio........... 4,983 1.027 5,116
Smith Barney International Equity Portfolio.. 48,081 1.029 49,454
Smith Barney Income and Growth Portfolio..... 37,525 0.997 37,400
Smith Barney Money Market Portfolio.......... 1,456,818 1.009 1,469,195
MFS Total Return Portfolio................... 29,676 1.007 29,891
AIM Capital Appreciation Portfolio........... 55,096 1.021 56,242
Smith Barney Series Fund:
Total Return Portfolio....................... 21,478 1.044 22,428
----------
Net Contract Owners' Equity....................................... $1,823,543
==========
</TABLE>
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<PAGE> 7
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF SEPARATE ACCOUNT ONE OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 10, 1995 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1995
<TABLE>
<CAPTION>
SMITH SMITH SMITH
AMERICAN BARNEY BARNEY BARNEY
ALLIANCE CAPITAL HIGH INTERNATIONAL INCOME
GROWTH ENTERPRISE INCOME EQUITY AND GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................................. $ 2,884 $ 1,621 $ 220 $ 55 $ 632
--------- ---------- --------- ------------- ----------
EXPENSES:
Insurance charges..................................... 42 15 8 14 15
Administrative fees................................... 19 7 4 6 7
--------- ---------- --------- ------------- ----------
Net investment income................................ 2,823 1,599 208 35 610
--------- ---------- --------- ------------- ----------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold....................... 60 - 23 - 21
Cost of investments sold............................. 59 - 23 - 21
--------- ---------- --------- ------------- ----------
Net realized gain................................... 1 - - - -
--------- ---------- --------- ------------- ----------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period........... - - - - -
Unrealized gain (loss) end of period................. (249) (546) (75) 1,118 (353)
--------- ---------- --------- ------------- ----------
Net change in unrealized gain (loss) for the period. (249) (546) (75) 1,118 (353)
--------- ---------- --------- ------------- ----------
Net increase in net assets resulting from operations 2,575 1,053 133 1,153 257
--------- ---------- --------- ------------- ----------
UNIT TRANSACTIONS:
Participant premium payments......................... - - - - -
Participant transfers from other Travelers accounts... 97,916 52,343 4,995 48,301 37,186
Contract surrenders................................... (47) (23) (12) - (43)
Participant transfers to other Travelers accounts..... - - - - -
--------- ---------- --------- ------------- ----------
Net increase in net assets resulting from
unit transactions.................................... 97,869 52,320 4,983 48,301 37,143
--------- ---------- --------- ------------- ----------
Net increase in net assets......................... 100,444 53,373 5,116 49,454 37,400
NET ASSETS:
Beginning of period.................................. - - - - -
--------- ---------- --------- ------------- ----------
End of period........................................ $ 100,444 $ 53,373 $ 5,116 $ 49,454 $ 37,400
========= ========== ========= ============= ==========
</TABLE>
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<PAGE> 8
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
SMITH
BARNEY
MONEY MFS AIM CAPITAL
MARKET TOTAL RETURN APPRECIATION TOTAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO COMBINED
- ---------- ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
$ 4,637 $ 838 $ 54 $ 77 $ 11,018
- ---------- ------------ ------------ ------------ ----------
878 11 16 19 1,018
390 5 7 8 453
- ---------- ------------ ------------ ------------ ----------
3,369 822 31 50 9,547
- ---------- ------------ ------------ ------------ ----------
151,146 21 - 40 151,311
151,146 21 - 39 151,309
- ---------- ------------ ------------ ------------ ----------
- - - 1 2
- ---------- ------------ ------------ ------------ ----------
- - - - -
- (466) 1,010 505 944
- ---------- ------------ ------------ ------------ ----------
- (466) 1,010 505 944
- ---------- ------------ ------------ ------------ ----------
3,369 356 1,041 556 10,493
- ---------- ------------ ------------ ------------ ----------
1,818,712 - - - 1,818,712
1,711 29,556 55,224 21,897 349,129
(5,467) (21) (23) (25) (5,661)
(349,130) - - - (349,130)
- ---------- ------------ ------------ ------------ ----------
1,465,826 29,535 55,201 21,872 1,813,050
- ---------- ------------ ------------ ------------ ----------
1,469,195 29,891 56,242 22,428 1,823,543
- - - - -
- ---------- ------------ ------------ ------------ ----------
$1,469,195 $ 29,891 $ 56,242 $ 22,428 $1,823,543
========== ============ ============ ============ ==========
</TABLE>
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<PAGE> 9
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF UNITS FOR SEPARATE ACCOUNT ONE
FOR THE PERIOD OCTOBER 10, 1995 (DATE OPERATIONS COMMENCED) TO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SMITH
AMERICAN SMITH BARNEY
ALLIANCE CAPITAL BARNEY INTERNATIONAL
GROWTH ENTERPRISE HIGH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ------------ -------------
<S> <C> <C> <C> <C>
Units beginning of period................. - - - -
Units purchased and
transferred from other Travelers accounts 97,284 52,672 4,995 48,081
Units redeemed and
transferred to other Travelers accounts.. (46) (23) (12) -
------------ ---------- ------------ -------------
Units end of period....................... 97,238 52,649 4,983 48,081
============ ========== ============ =============
<CAPTION>
SMITH SMITH
BARNEY BARNEY
INCOME MONEY MFS AIM CAPITAL
AND GROWTH MARKET TOTAL RETURN APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ------------ -------------
<S> <C> <C> <C> <C>
Units beginning of period................. - - - -
Units purchased and
transferred from other Travelers accounts 37,568 1,808,939 29,697 55,118
Units redeemed and
transferred to other Travelers accounts.. (43) (352,121) (21) (22)
------------ ---------- ------------ -------------
Units end of period....................... 37,525 1,456,818 29,676 55,096
============ ========== ============ =============
<CAPTION>
TOTAL RETURN
PORTFOLIO
------------
<S> <C>
Units beginning of period................. -
Units purchased and
transferred from other Travelers accounts 21,502
Units redeemed and
transferred to other Travelers accounts.. (24)
------------
Units end of period....................... 21,478
============
</TABLE>
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<PAGE> 10
REPORT OF INDEPENDENT ACCOUNTANTS
To the Owners of Variable Life Insurance Contracts of
The Travelers Variable Life Insurance Separate Account One:
We have audited the accompanying statement of assets and liabilities of The
Travelers Variable Life Insurance Separate Account One as of December 31, 1995,
and the related statements of operations and changes in net assets for the
period October 10, 1995 (date operations commenced) to December 31, 1995.
These financial statements are the responsibility of management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit 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 shares owned as of December 31, 1995, by
correspondence with underlying funds. 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 audit provides 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 Travelers Variable Life
Insurance Separate Account One as of December 31, 1995, the results of its
operations and the changes in its net assets for the period October 10, 1995
(date operations commenced) to December 31, 1995, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
February 20, 1996
-9-
<PAGE> 11
Independent Accountants
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
This report is prepared for the general information of contract owners and is
not an offer of shares of The Travelers Variable Life Insurance Separate
Account One or Separate Account One's underlying funds. It should not be used
in connection with any offer except in conjunction with the Prospectuses for
the Variable Universal Life Insurance products offered by The Travelers Life
and Annuity Company and the Prospectuses for the underlying funds, which
collectively contain all pertinent information, including the applicable sales
commissions.
