<PAGE> 1
VINTAGE UNIVERSAL LIFE
ANNUAL REPORT
DECEMBER 31, 1996
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
[TRAVELERSLIFE LOGO]
The Travelers Insurance Company
The Travelers Life and Annuity Company
One Tower Square
Hartford, CT 06183
<PAGE> 2
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<S> <C> <C>
ASSETS:
Investments in eligible funds at market value:
The Travelers Series Trust:
Zero Coupon Bond Fund Portfolio Series 1998, 20,609 shares (cost $209,330)......... $ 205,883
Zero Coupon Bond Fund Portfolio Series 2000, 43,293 shares (cost $435,847)......... 431,199
Zero Coupon Bond Fund Portfolio Series 2005, 45,275 shares (cost $449,168)......... 451,392
Travelers Series Fund Inc.:
Alliance Growth Portfolio, 161,749 shares (cost $2,425,243)........................ 2,714,156
Van Kampen American Capital Enterprise Portfolio, 106,235 shares (cost $1,510,783). 1,679,583
TBC Managed Income Portfolio, 28,763 shares (cost $306,389)........................ 307,767
Smith Barney High Income Portfolio, 139,118 shares (cost $1,601,265)............... 1,647,158
Smith Barney International Equity Portfolio, 142,956 shares (cost $1,674,173)...... 1,795,532
Smith Barney Income and Growth Portfolio, 85,294 shares (cost $1,190,319).......... 1,284,531
Smith Barney Money Market Portfolio, 3,510,513 shares (cost $3,510,513)............ 3,510,513
Putnam Diversified Income Portfolio, 57,305 shares (cost $656,616)................. 663,022
MFS Total Return Portfolio, 147,888 shares (cost $1,851,396)....................... 1,947,679
AIM Capital Appreciation Portfolio, 212,176 shares (cost $2,193,621)............... 2,340,306
Smith Barney Series Fund:
Total Return Portfolio, 169,813 shares (cost $2,372,554)........................... 2,671,156
-----------
Total Investments (cost $20,387,217)............................................. $ 21,649,877
Receivables:
Dividends............................................................................ 60,296
Premium payments and transfers from other Travelers accounts......................... 27,964
Other assets........................................................................... 77
-------------
Total Assets..................................................................... 21,738,214
-------------
LIABILITIES:
Payable for contract surrenders and transfers to other Travelers accounts.............. 37,817
Accrued liabilities.................................................................... 3,068
-------------
Total Liabilities................................................................ 40,885
-------------
NET ASSETS: $ 21,697,329
=============
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS VARIABLE LIFE INSURANCE
SEPARATE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................ $ 594,038
EXPENSES:
Insurance charges........................................ $ 123,962
Administrative fees...................................... 55,266
-----------
Total expenses......................................... 179,228
------------
Net investment income................................ 414,810
------------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN ON
INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold......................... 14,137,048
Cost of investments sold............................... 14,032,333
-----------
Net realized gain.................................... 104,715
Change in unrealized gain on investments:
Unrealized gain at December 31, 1995................... 944
Unrealized gain at December 31, 1996................... 1,262,660
-----------
Net change in unrealized gain for the year........... 1,261,716
------------
Net realized gain and change in unrealized gain.... 1,366,431
------------
Net increase in net assets resulting from operations..... $ 1,781,241
============
</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 YEAR ENDED DECEMBER 31, 1996 AND
THE PERIOD OCTOBER 10, 1995 (DATE OPERATIONS COMMENCED)
TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income.................................................. $ 414,810 $ 9,547
Net realized gain from investment transactions......................... 104,715 2
Net change in unrealized gain on investments........................... 1,261,716 944
---------------- --------------
Net increase in net assets resulting from operations................. 1,781,241 10,493
---------------- --------------
UNIT TRANSACTIONS:
Participant premium payments
(applicable to 20,300,668 and 1,807,237 units, respectively)........ 20,747,433 1,818,712
Participant transfers from other Travelers accounts
(applicable to 16,483,710 and 348,619 units, respectively).......... 17,805,104 349,129
Contract surrenders
(applicable to 289,255 and 5,623 units, respectively)............... (314,374) (5,661)
Participant transfers to other Travelers accounts
(applicable to 19,639,934 and 346,689 units, respectively).......... (20,145,618) (349,130)
---------------- --------------
Net increase in net assets resulting from unit transactions....... 18,092,545 1,813,050
---------------- --------------
Net increase in net assets...................................... 19,873,786 1,823,543
NET ASSETS:
Beginning of period.................................................... 1,823,543 -
---------------- --------------
End of period.......................................................... $ 21,697,329 $ 1,823,543
================ ==============
</TABLE>
See Notes to Financial Statements
-3-
<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 ("The Travelers"), 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, 1996, 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, Van
Kampen American Capital Enterprise Portfolio (formerly 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 Travelers Series Fund Inc. (formerly Smith Barney/Travelers Series
Fund Inc.); and Total Return Portfolio of Smith Barney Series Fund. All
eligible funds are managed by affiliates of The Travelers. The Travelers
Series Trust and Smith Barney Series Fund are registered as Massachusetts
business trusts. Travelers Series Fund Inc. is incorporated under Maryland
law.
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 $32,604,326 and $14,137,048,
respectively, for the year ended December 31, 1996. Realized gains and losses
from investment transactions are reported on an identified cost basis. The
cost of investments in eligible funds was $20,387,217 at December 31, 1996.
Gross unrealized appreciation for all investments at December 31, 1996 was
$1,270,755. Gross unrealized depreciation for all investments at December 31,
1996 was $8,095.
-4-
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS - CONTINUED
3. CONTRACT CHARGES
Insurance charges are paid 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. (Contracts in this category
are identified as Price I in Note 4.) For any contract year that follows a
contract year in which the participant's average net fund growth rate (as
described in the prospectus) is 6.5% or greater, these charges will be reduced
to 0.75%. (Contracts in this category are identified as Price II in Note 4.)
Administrative fees are paid 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.
Travelers Life receives contingent surrender charges on full or partial
contract surrenders. Such charges are computed by applying various percentages
to premiums and/or stated contract amounts (as descibed in the prospectus).
Travelers Life received no contingent surrender charges for the year ended
December 31, 1996 and the period October 10, 1995 (date operations commenced)
to December 31, 1995.
-5-
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS - CONTINUED
4. NET CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-------------------------------------------
UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
The Travelers Series Trust
Zero Coupon Bond Fund Portfolio Series 1998
Price I.......................................... 182,100 $ 1.025 $ 186,682
Price II......................................... 29,510 1.027 30,299
Zero Coupon Bond Fund Portfolio Series 2000
Price I.......................................... 417,629 1.013 423,261
Price II......................................... 29,511 1.015 29,953
Zero Coupon Bond Fund Portfolio Series 2005
Price I.......................................... 409,861 0.994 407,485
Price II......................................... 65,630 0.996 65,346
Travelers Series Fund Inc.
Alliance Growth Portfolio
Price I.......................................... 1,745,451 1.318 2,300,857
Price II......................................... 317,986 1.321 419,908
Van Kampen American Capital Enterprise Portfolio
Price I.......................................... 1,138,904 1.229 1,399,652
Price II......................................... 227,229 1.231 279,693
TBC Managed Income Portfolio
Price I.......................................... 304,658 1.010 307,723
Smith Barney High Income Portfolio
Price I.......................................... 1,218,684 1.148 1,398,475
Price II......................................... 216,132 1.150 248,453
Smith Barney International Equity Portfolio
Price I.......................................... 1,387,928 1.195 1,658,706
Price II......................................... 119,947 1.197 143,570
Smith Barney Income and Growth Portfolio
Price I.......................................... 915,908 1.179 1,079,437
Price II......................................... 173,648 1.180 204,980
Smith Barney Money Market Portfolio
Price I.......................................... 3,284,747 1.045 3,431,746
Price II......................................... 43,976 1.047 46,029
Putnam Diversified Income Portfolio
Price I.......................................... 514,322 1.066 548,433
Price II......................................... 107,216 1.068 114,497
MFS Total Return Portfolio
Price I.......................................... 1,596,213 1.138 1,817,181
Price II......................................... 120,333 1.140 137,211
AIM Capital Appreciation Portfolio
Price I.......................................... 1,687,160 1.158 1,953,242
Price II......................................... 333,531 1.160 386,739
Smith Barney Series Fund
Total Return Portfolio
Price I.......................................... 1,780,183 1.293 2,301,717
Price II......................................... 290,336 1.295 376,054
------------
Net Contract Owners' Equity.................................................. $ 21,697,329
============
</TABLE>
-6-
<PAGE> 8
This page intentionally left blank.
-7-
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF SEPARATE ACCOUNT ONE OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD OCTOBER 10, 1995
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
ZERO COUPON BOND ZERO COUPON BOND
FUND PORTFOLIO FUND PORTFOLIO
SERIES 1998 SERIES 2000
----------------------------- -----------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 11,484 $ - $ 22,438 $ -
---------- --------- ---------- ---------
EXPENSES:
Insurance charges......................................... 1,122 - 2,555 -
Administrative fees....................................... 501 - 1,138 -
---------- --------- ---------- ---------
Net investment income (loss)........................ 9,861 - 18,745 -
---------- --------- ---------- ---------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ 3,588 - 11,330 -
Cost of investments sold.............................. 3,569 - 11,396 -
---------- --------- ---------- ---------
Net realized gain (loss)............................ 19 - (66) -
---------- --------- ---------- ---------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period............ - - - -
Unrealized gain (loss) end of period.................. (3,447) - (4,648) -
---------- --------- ---------- ---------
Net change in unrealized gain (loss) for the period. (3,447) - (4,648) -
---------- --------- ---------- ---------
Net increase in net assets
resulting from operations........................... 6,433 - 14,031 -
---------- --------- ---------- ---------
UNIT TRANSACTIONS:
Participant premium payments.............................. - - - -
Participant transfers from other Travelers accounts....... 212,787 - 447,366 -
Contract surrenders....................................... (2,239) - (5,340) -
Participant transfers to other Travelers accounts......... - - (2,843) -
---------- --------- ---------- ---------
Net increase in net assets resulting
from unit transactions.............................. 210,548 - 439,183 -
---------- --------- ---------- ---------
Net increase in net assets.......................... 216,981 - 453,214 -
NET ASSETS:
Beginning of period................................... - - - -
---------- --------- ---------- ---------
End of period......................................... $ 216,981 $ - $ 453,214 $ -
========== ========= ========== =========
<CAPTION>
ZERO COUPON BOND
FUND PORTFOLIO
SERIES 2005
-----------------------------
1996 1995
---- ----
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 21,875 $ -
----------- ----------
EXPENSES:
Insurance charges......................................... 2,369 -
Administrative fees....................................... 1,058 -
----------- ----------
Net investment income (loss)........................ 18,448 -
----------- ----------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ 6,922 -
Cost of investments sold.............................. 7,212 -
----------- ----------
Net realized gain (loss)............................ (290) -
----------- ----------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period............ - -
Unrealized gain (loss) end of period.................. 2,224 -
----------- ----------
Net change in unrealized gain (loss) for the period. 2,224 -
----------- ----------
Net increase in net assets
resulting from operations........................... 20,382 -
----------- ----------
UNIT TRANSACTIONS:
Participant premium payments.............................. - -
Participant transfers from other Travelers accounts....... 457,424 -
Contract surrenders....................................... (4,975) -
Participant transfers to other Travelers accounts......... - -
----------- ----------
Net increase in net assets resulting
from unit transactions.............................. 452,449 -
----------- ----------
Net increase in net assets.......................... 472,831 -
NET ASSETS:
Beginning of period................................... - -
----------- ----------
End of period......................................... $ 472,831 $ -
=========== ==========
</TABLE>
-8-
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
VAN KAMPEN
AMERICAN CAPITAL TBC MANAGED SMITH BARNEY
ALLIANCE GROWTH PORTFOLIO ENTERPRISE PORTFOLIO INCOME PORTFOLIO HIGH INCOME PORTFOLIO
- --------------------------- --------------------------- --------------------------- ----------------------------
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 99,350 $ 2,884 $ 5,283 $ 1,621 $ 13,493 $ - $ 93,822 $ 220
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
13,339 42 8,988 15 1,970 - 9,312 8
5,958 19 4,013 7 876 - 4,148 4
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
80,053 2,823 (7,718) 1,599 10,647 - 80,362 208
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
229,640 60 159,079 - 6,423 - 28,023 23
202,194 59 145,576 - 6,511 - 26,546 23
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
27,446 1 13,503 - (88) - 1,477 -
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
(249) - (546) - - - (75) -
288,913 (249) 168,800 (546) 1,378 - 45,893 (75)
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
289,162 (249) 169,346 (546) 1,378 - 45,968 (75)
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
396,661 2,575 175,131 1,053 11,937 - 127,807 133
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
- - - - - - - -
2,374,269 97,916 1,548,355 52,343 300,251 - 1,533,606 4,995
(32,508) (47) (20,467) (23) (4,465) - (19,601) (12)
(118,101) - (77,047) - - - - -
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
2,223,660 97,869 1,450,841 52,320 295,786 - 1,514,005 4,983
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
2,620,321 100,444 1,625,972 53,373 307,723 - 1,641,812 5,116
100,444 - 53,373 - - - 5,116 -
- ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
$ 2,720,765 $ 100,444 $ 1,679,345 $ 53,373 $ 307,723 $ - $ 1,646,928 $ 5,116
============ ============= ============ ============= ============ ============= ============ =============
</TABLE>
-9-
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF SEPARATE ACCOUNT ONE OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD OCTOBER 10, 1995
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995 (CONTINUED)
<TABLE>
<CAPTION>
SMITH BARNEY SMITH BARNEY INCOME
INTERNATIONAL EQUITY PORTFOLIO AND GROWTH PORTFOLIO
------------------------------- ---------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 1,831 $ 55 $ 28,917 $ 632
------------- ------------- ------------ -------------
EXPENSES:
Insurance charges......................................... 9,881 14 7,315 15
Administrative fees....................................... 4,398 6 3,268 7
------------- ------------- ------------ -------------
Net investment income (loss)........................ (12,448) 35 18,334 610
------------- ------------- ------------ -------------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ 139,666 - 271,548 21
Cost of investments sold.............................. 129,802 - 250,615 21
------------- ------------- ------------ -------------
Net realized gain (loss)............................ 9,864 - 20,933 -
------------- ------------- ------------ -------------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period............ 1,118 - (353) -
Unrealized gain (loss) end of period.................. 121,359 1,118 94,212 (353)
------------- ------------- ------------ -------------
Net change in unrealized gain (loss) for the period. 120,241 1,118 94,565 (353)
------------- ------------- ------------ -------------
Net increase in net assets
resulting from operations........................... 117,657 1,153 133,832 257
------------- ------------- ------------ -------------
UNIT TRANSACTIONS:
Participant premium payments.............................. - - - -
Participant transfers from other Travelers accounts....... 1,745,858 48,301 1,264,075 37,186
Contract surrenders....................................... (19,973) - (18,817) (43)
Participant transfers to other Travelers accounts......... (90,720) - (132,073) -
------------- ------------- ------------ -------------
Net increase in net assets resulting
from unit transactions.............................. 1,635,165 48,301 1,113,185 37,143
------------- ------------- ------------ -------------
Net increase in net assets.......................... 1,752,822 49,454 1,247,017 37,400
NET ASSETS:
Beginning of period................................... 49,454 - 37,400 -
------------- ------------- ------------ -------------
End of period......................................... $ 1,802,276 $ 49,454 $ 1,284,417 $ 37,400
============= ============= ============ =============
<CAPTION>
SMITH BARNEY
MONEY MARKET PORTFOLIO
---------------------------
1996 1995
---- ----
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 152,658 $ 4,637
------------ -------------
EXPENSES:
Insurance charges......................................... 28,570 878
Administrative fees....................................... 12,700 390
------------ -------------
Net investment income (loss)........................ 111,388 3,369
------------ -------------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ 12,928,844 151,146
Cost of investments sold.............................. 12,928,844 151,146
------------ -------------
Net realized gain (loss)............................ - -
------------ -------------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period............ - -
Unrealized gain (loss) end of period.................. - -
------------ -------------
Net change in unrealized gain (loss) for the period. - -
------------ -------------
Net increase in net assets
resulting from operations........................... 111,388 3,369
------------ -------------
UNIT TRANSACTIONS:
Participant premium payments.............................. 20,747,433 1,818,712
Participant transfers from other Travelers accounts....... 674,596 1,711
Contract surrenders....................................... (98,271) (5,467)
Participant transfers to other Travelers accounts......... (19,426,566) (349,130)
------------ -------------
Net increase in net assets resulting
from unit transactions.............................. 1,897,192 1,465,826
------------ -------------
Net increase in net assets.......................... 2,008,580 1,469,195
NET ASSETS:
Beginning of period................................... 1,469,195 -
------------ -------------
End of period......................................... $ 3,477,775 $ 1,469,195
============ =============
</TABLE>
-10-
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
PUTNAM AIM CAPITAL
DIVERSIFIED INCOME PORTFOLIO MFS TOTAL RETURN PORTFOLIO APPRECIATION PORTFOLIO TOTAL RETURN PORTFOLIO
- ---------------------------- ---------------------------- ---------------------------- -----------------------------
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 35,287 $ - $ 63,619 $ 838 $ 2,310 $ 54 $ 41,671 $ 77
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
3,873 - 8,753 11 13,032 16 12,883 19
1,732 - 3,918 5 5,806 7 5,752 8
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
29,682 - 50,948 822 (16,528) 31 23,036 50
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
9,962 - 39,655 21 147,463 - 154,905 40
9,686 - 37,947 21 130,930 - 141,505 39
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
276 - 1,708 - 16,533 - 13,400 1
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
- - (466) - 1,010 - 505 -
6,406 - 96,283 (466) 146,685 1,010 298,602 505
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
6,406 - 96,749 (466) 145,675 1,010 298,097 505
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
36,364 - 149,405 356 145,680 1,041 334,533 556
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
- - - - - - - -
634,085 - 1,858,163 29,556 2,286,291 55,224 2,467,978 21,897
(7,519) - (22,040) (21) (27,167) (23) (30,992) (25)
- - (61,027) - (121,065) - (116,176) -
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
626,566 - 1,775,096 29,535 2,138,059 55,201 2,320,810 21,872
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
662,930 - 1,924,501 29,891 2,283,739 56,242 2,655,343 22,428
- - 29,891 - 56,242 - 22,428 -
- ----------- ------------- ------------- ------------- ------------ ------------- ------------ -------------
$ 662,930 $ - $ 1,954,392 $ 29,891 $ 2,339,981 $ 56,242 $ 2,677,771 $ 22,428
=========== ============= ============= ============= ============ ============= ============ =============
</TABLE>
-11-
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF SEPARATE ACCOUNT ONE OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD OCTOBER 10, 1995
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995 (CONTINUED)
<TABLE>
<CAPTION>
COMBINED
---------------------------------------
1996 1995
---- ----
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 594,038 $ 11,018
----------------- -----------------
EXPENSES:
Insurance charges......................................... 123,962 1,018
Administrative fees....................................... 55,266 453
----------------- -----------------
Net investment income (loss)........................ 414,810 9,547
----------------- -----------------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ 14,137,048 151,311
Cost of investments sold.............................. 14,032,333 151,309
----------------- -----------------
Net realized gain (loss)............................ 104,715 2
----------------- -----------------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period............ 944 -
Unrealized gain (loss) end of period.................. 1,262,660 944
----------------- -----------------
Net change in unrealized gain (loss) for the period. 1,261,716 944
----------------- -----------------
Net increase in net assets
resulting from operations........................... 1,781,241 10,493
----------------- -----------------
UNIT TRANSACTIONS:
Participant premium payments.............................. 20,747,433 1,818,712
Participant transfers from other Travelers accounts....... 17,805,104 349,129
Contract surrenders....................................... (314,374) (5,661)
Participant transfers to other Travelers accounts......... (20,145,618) (349,130)
----------------- -----------------
Net increase in net assets resulting
from unit transactions.............................. 18,092,545 1,813,050
----------------- -----------------
Net increase in net assets.......................... 19,873,786 1,823,543
NET ASSETS:
Beginning of period................................... 1,823,543 -
----------------- -----------------
End of period......................................... $ 21,697,329 $ 1,823,543
================= =================
</TABLE>
-12-
<PAGE> 14
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, 1996,
and the related statement of operations for the year then ended, and the
statement of changes in net assets for each of the applicable periods ended
December 31, 1996 and 1995. These financial statements are the responsibility
of 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 shares owned as of December 31, 1996, 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 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 Travelers Variable Life
Insurance Separate Account One as of December 31, 1996, the results of its
operations for the year then ended, and the changes in its net assets for each
of the applicable periods ended December 31, 1996 and 1995, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
February 7, 1997
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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.
VG-SEP1 (Annual) (12-96) Printed in U.S.A.
