NORTHERN LIFE
SEPARATE ACCOUNT ONE
ANNUAL REPORT
FOR THE PERIOD ENDED
DECEMBER 31, 1995
[LOGO]
This report has been prepared to provide information to owners of Separate
Account One Contracts. If it is used for any other purpose, it must be
accompanied or preceded by a current Separate Account One Prospectus which
discloses any charges and other important information about the Account,
together with the current Prospectuses for the underlying Funds.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Northern Life Insurance
Company and Contract Owners of
Separate Account One:
We have audited the accompanying statement of assets and liabilities of
Northern Life Separate Account One as of December 31, 1995 and the related
combined statements of operations and changes in Contract Owners' equity for the
period from October 20, 1995 to December 31, 1995. These financial statements
are the responsibility of the management of Northern Life Insurance Company. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We have 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
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures include
confirmation of the securities owned as of December 31, 1995, by correspondence
with the Account custodians. 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 Northern Life Separate Account
One as of December 31, 1995, and the results of its operations and changes in
Contract Owners' equity for the period from October 20, 1995 to December 31,
1995, in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Minneapolis, Minnesota
February 2, 1996
i
<PAGE>
SEPARATE ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
December 31,1995
(In Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
NORTHSTAR NORTHSTAR NORTHSTAR FIDELTIY VIPF FIDELITY VIPF
ASSETS: INCOME AND MULTI-SECTOR GROWTH MONEY MARKET GROWTH
- ------- GROWTH FUND BOND FUND FUND PORTFOLIO PORTFOLIO
Investments in mutual funds at market value: ------------- ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
2,092 shares (cost $24) $24
Multi-Sector Bond Fund
3,866 shares (cost $20) $20
Growth Fund
935 shares (cost $11) $11
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
0 shares (cost $-) $-
Growth Portfolio
1,702 shares (cost $49) $50
Equity-Income Portfolio
2,183 shares (cost $41)
Overseas Portfolio
1,068 shares (cost $18)
Asset Manager Portfolio
1,300 shares (cost $20)
Asset Manager Growth Portfolio
5,645 shares (cost $68)
Index 500 Portfolio
98 shares (cost $7)
Contrafund Portfolio
5,460 shares (cost $75)
ALGER AMERICAN FUND:
Small Capitalization Portfolio
2,369 shares (cost $88)
Growth Portfolio
2,419 shares (cost $72)
MidCap Growth Portfolio
1,125 shares (cost $22)
Leveraged AllCap Portfolio
2,277 shares (cost $37)
---------- ---------- ---------- ---------- ----------
Total Assets $24 $20 $11 $- $50
========== ========== ========== ========== ==========
LIABILITIES AND CONTRACT OWNER'S EQUITY:
Due (from) Northern Life Insurance Co. for contract charges $ - $ - $ - $- ($1)
Contract Owners' Equity 24 20 11 - 51
---------- ---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $24 $20 $11 $- $50
========== ========== ========== ========== ==========
Units Outstanding: 2,292.052 1,937.476 1,068.330 - 5,111.723
Net Asset Value per Unit
Northern Advantage Variable Annuity $10.384441 $10.240156 $10.101014 $10.074276 $9.823682
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
FIDELITY VIPF FIDELITY VIPF FIDELITY VIPF II FIDELITY VIPF II
ASSETS: EQUITY-INCOME OVERSEAS ASSET MANAGER: ASSET MANAGER
- ------- PORTFOLIO PORTFOLIO PORTFOLIO GROWTH PORTFOLIO
Investments in mutual funds at market value: ------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
2,092 shares (cost $24)
Multi-Sector Bond Fund
3,866 shares (cost $20)
Growth Fund
935 shares (cost $11)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
0 shares (cost $-)
Growth Portfolio
1,702 shares (cost $49)
Equity-Income Portfolio
2,183 shares (cost $41) $42
Overseas Portfolio
1,068 shares (cost $18) $18
Asset Manager Portfolio
1,300 shares (cost $20) $21
Asset Manager Growth Portfolio
5,645 shares (cost $68) $67
Index 500 Portfolio
98 shares (cost $7)
Contrafund Portfolio
5,460 shares (cost $75)
ALGER AMERICAN FUND:
Small Capitalization Portfolio
2,369 shares (cost $88)
Growth Portfolio
2,419 shares (cost $72)
MidCap Growth Portfolio
1,125 shares (cost $22)
Leveraged AllCap Portfolio
2,277 shares (cost $37)
---------- ---------- ---------- ----------
Total Assets $42 $18 $21 $67
========== ========== ========== ==========
LIABILITIES AND CONTRACT OWNER'S EQUITY:
Due (from) Northern Life Insurance Co. for contract charges $- $- $- $-
Contract Owners' Equity 42 18 21 67
---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $42 $18 $21 $67
========== ========== ========= ==========
Units Outstanding: 3,922.397 1,765.385 1,959.639 6,432.006
Net Asset Value per Unit
Northern Advantage Variable Annuity $10.717247 $10.313878 $10.458646 $10.399730
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
FIDELITY VIPF II FIDELITY VIPF II
ASSETS: INDEX 500 CONTRAFUND
- ------- PORTFOLIO PORTFOLIO
Investments in mutual funds at market value: ---------------- ----------------
<S> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
2,092 shares (cost $24)
Multi-Sector Bond Fund
3,866 shares (cost $20)
Growth Fund
935 shares (cost $11)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
0 shares (cost $-)
Growth Portfolio
1,702 shares (cost $49)
Equity-Income Portfolio
2,183 shares (cost $41)
Overseas Portfolio
1,068 shares (cost $18)
Asset Manager Portfolio
1,300 shares (cost $20)
Asset Manager Growth Portfolio
5,645 shares (cost $68)
Index 500 Portfolio
98 shares (cost $7) $7
Contrafund Portfolio $75
5,460 shares (cost $75)
ALGER AMERICAN FUND:
Small Capitalization Portfolio
2,369 shares (cost $88)
Growth Portfolio
2,419 shares (cost $72)
MidCap Growth Portfolio
1,125 shares (cost $22)
Leveraged AllCap Portfolio
2,277 shares (cost $37)
--------- ----------
Total Assets $7 $75
LIABILITIES AND CONTRACT OWNER'S EQUITY:
Due (from) Northern Life Insurance Co. for contract charges $- ($1)
Contract Owners' Equity 7 76
--------- ----------
Total Liabilities and Contract Owners' Equity $7 $75
========= ==========
Units Outstanding: 702.335 7,416.671
Net Asset Value per Unit
Northern Advantage Variable Annuity 10.586161 $10.293491
</TABLE>
The accompanying notes are an integral part of the financial statements.
iii
<PAGE>
SEPARATE ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
December 31,1995
(In Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN
ASSETS: SMALL CAPITALIZATION GROWTH MIDCAP GROWTH LEVERAGED ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
Investments in mutual funds at market value: ------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
2,092 shares (cost $24)
Multi-Sector Bond Fund
3,866 shares (cost $20)
Growth Fund
935 shares (cost $11)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
0 shares (cost $-)
Growth Portfolio
1,702 shares (cost $49)
Equity-Income Portfolio
2,183 shares (cost $41)
Overseas Portfolio
1,068 shares (cost $18)
Asset Manager Portfolio
1,300 shares (cost $20)
Asset Manager Growth Portfolio
5,645 shares (cost $68)
Index 500 Portfolio
98 shares (cost $7)
Contrafund Portfolio
5,460 shares (cost $75)
ALGER AMERICAN FUND:
Small Capitalization Portfolio
2,369 shares (cost $88) $93
Growth Portfolio
2,419 shares (cost $72) $75
MidCap Growth Portfolio
1,125 shares (cost $22) $22
Leveraged AllCap Portfolio
2,277 shares (cost $37) $40
---------- ---------- ---------- ----------
Total Assets $93 $75 $22 $40
========== ========== ========== ==========
LIABILITIES AND CONTRACT OWNER'S EQUITY:
Due to (from) Northern Life Insurance Co.
for contract charges $ - $ - $ - $ -
Contract Owners' Equity 93 75 22 40
---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $93 $75 $22 $40
========= ========== ========== ==========
Units Outstanding: 9,498.434 7,530.562 2,208.390 3,863.604
Net Asset Value per Unit
Northern Advantage Variable Annuity $9.825484 $10.007208 $9.893654 $10.263633
</TABLE>
The accompanying notes are an integral part of the financial statements.
iv
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
ASSETS:
TOTAL
Investments in mutual funds at market value: -------------
NORTHSTAR'S:
Income and Growth Fund
2,092 shares (cost $24) $24
Multi-Sector Bond Fund
3,866 shares (cost $20) 20
Growth Fund
935 shares (cost $11) 11
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
0 shares (cost $-) -
Growth Portfolio
1,702 shares (cost $49) 50
Equity-Income Portfolio
2,183 shares (cost $41) 42
Overseas Portfolio
1,068 shares (cost $18) 18
Asset Manager Portfolio
1,300 shares (cost $20) 21
Asset Manager Growth Portfolio
5,645 shares (cost $68) 67
Index 500 Portfolio
98 shares (cost $7) 7
Contrafund Portfolio
5,460 shares (cost $75) 75
ALGER AMERICAN FUND:
Small Capitalization Portfolio
2,369 shares (cost $88) 93
Growth Portfolio
2,419 shares (cost $72) 75
MidCap Growth Portfolio
1,125 shares (cost $22) 22
Leveraged AllCap Portfolio
2,277 shares (cost $37) 40
----------
Total Assets $565
==========
LIABILITIES AND CONTRACT OWNER'S EQUITY:
Due to (from) Northern Life Insurance Co.
for contract charges ($2)
Contract Owners' Equity 567
----------
Total Liabilities and Contract Owners' Equity $565
==========
Units Outstanding: 55,709.004
Net Asset Value per Unit
Northern Advantage Variable Annuity
The accompanying notes are an integral part of the financial statements.
v
<PAGE>
SEPARATE ACCOUNT ONE
STATEMENT OF OPERATIONS AND
CHANGES IN CONTRACT OWNERS' EQUITY
(In Thousands)
Period from
Oct. 20, 1995
to
Dec. 31, 1995
-------------
Net investment income:
Reinvested dividend income .................................... $ 1
Reinvested capital gains ...................................... 4
Administrative expenses ....................................... -
----
Net investment income
and capital gains ................................. 5
----
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares .............................. -
Increase in unrealized
appreciation of investments ............................. 12
----
Net realized and unrealized gains ....................... 12
----
Net additions from operations ..................... 17
----
Contract Owners' transactions:
Net purchase payments ......................................... 550
Surrenders .................................................... -
Transfers between Sub-Accounts
and Fixed Account ....................................... -
----
Net additions for Contract
Owners' transactions .............................. 550
----
Net additions for the period ................ 567
Contract Owners' Equity, beginning of the period ................... -
----
Contract Owners' Equity, end of the period ......................... $567
====
The accompanying notes are an integral part of the financial statements.
vi
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
Separate Account One (the "Account") is a separate account of Northern Life
Insurance Company ("Northern Life"), an indirect, wholly-owned subsidiary of
ReliaStar Financial Corp. (formerly The NWNL Companies, Inc.). The Account
commenced operations on October 20, 1995 and is registered as a unit
investment trust under the Investment Company Act of 1940.
Payments received under the contracts are allocated to Sub-Accounts of the
Account, each of which is invested in one of the Funds listed below during
the period.
<TABLE>
<CAPTION>
ALGER AMERICAN FUND FIDELITY'S VIPF AND VIPF II NORTHSTAR FUNDS
------------------- --------------------------- ---------------
<S> <C> <C>
Alger American Small Money Market Portfolio Income and Growth Fund
Capitalization Portfolio Equity-Income Portfolio Growth Fund
Alger American Growth Portfolio Growth Portfolio Multi-Sector Bond Fund
Alger American MidCap Overseas Portfolio
Growth Portfolio Asset Manager Portfolio
Alger American Leveraged Asset Manager: Growth Portfolio
AllCap Portfolio Index 500 Portfolio
Contrafund Portfolio
</TABLE>
Fred Alger Management, Inc. is the investment adviser for the four portfolios
of the Alger American Fund and is paid fees for its services by the Alger
American Fund Portfolios. Fidelity Management & Research Company is the
investment advisor for Fidelity's Variable Insurance Products Fund (VIPF) and
Variable Insurance Products Fund II (VIPF II) and is paid for its services by
the VIPF and VIPF II Portfolios. Northstar Investment Management Corporation,
an affiliate of Northern Life, is the investment adviser for the three
Northstar Funds and is paid for its services by the Northstar Funds.
SECURITIES VALUATION TRANSACTIONS AND RELATED INVESTMENT INCOME:
The market value of investments in the Sub-Accounts is based on the closing
net asset values of the Fund shares held at the end of the period. Investment
transactions are accounted for on the trade date (date the order to purchase
or redeem is executed) and dividend income and capital gain distributions are
recorded on the ex-dividend date. Net realized gains and losses on
redemptions of shares of the Funds are determined on the basis of specific
identification of Fund share costs.
VARIABLE ANNUITY RESERVES:
The amount of the reserves for contracts in the distribution period is
determined by actuarial assumptions which meet statutory requirements. Gains
or losses resulting from actual mortality experience, the full responsibility
for which is assumed by Northern Life, are offset by transfers to, or from
Northern Life.
2. FEDERAL INCOME TAXES:
Under current tax law, the income, gains and losses from the separate account
investments are not taxable to either the Account or Northern Life.
3. CONTRACT CHARGES:
No deduction is made for a sales charge from the purchase payments made for
the contracts. However, on certain surrenders, Northern Life will deduct from
the contract value a surrender charge as set forth in the contract.
Certain charges are made by Northern Life to Contract Owners' Variable
Account Contract Value in accordance with the terms of the Contracts. These
charges may include: an annual contract charge of $30 from each contract on
the anniversary date or at the time of surrender, if surrender is at a time
other than the anniversary date; a daily administrative charge; and a daily
charge for mortality and expense risk assumed by Northern Life. Northern Life
bears the risk of adverse mortality experience and any costs for sales and
administrative services and expenses which exceed these periodic charges.
Various states and other governmental units levy a premium tax on annuity
contracts issued by insurance companies. If the owner of a contract lives in
a state which levies such a tax, Northern Life may deduct the amount of the
tax from the purchase payments received or the Contract Value immediately
before it is applied to an Annuity Payout.
vii
<PAGE>
SEPARATE ACCOUNT ONE SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4. INVESTMENTS:
The net realized gains on redemptions of fund shares for the period from
October 20, 1995 (date operations commenced) to December 31, 1995, were as
follows (in thousands):
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S FIDELITY'S VIPF FIDELITY'S VIPF
INCOME AND MULTI-SECTOR GROWTH MONEY MARKET GROWTH
TOTAL GROWTH FUND BOND FUND FUND PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------ ------------
Period from Period from Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995,
to to to to to to
Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995
------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions....... $- $- $- $- $- $-
Cost............................ - - - - - -
--------- --------- --------- --------- --------- ---------
Net realized gains on
redemptions of fund shares... $- $- $- $- $- $-
========= ========= ========= ========= ========= =========
<CAPTION>
ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN
SMALL CAPITALIZATION GROWTH MIDCAP GROWTH LEVERAGED ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995
to Dec. 31, 1995 to Dec. 31, 1995 to Dec. 31, 1995 to Dec. 31, 1995
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Proceeds from redemptions........... $- $- $- $-
Cost................................ - - - -
--------- --------- --------- ---------
Net realized gains on
redemptions of fund shares..... $- $- $- $-
========= ========= ========= =========
</TABLE>
viii
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S
FIDELITY'S VIPF VIPF VIPF II VIPF II VIPF II VIPF II
EQUITY-INCOME OVERSEAS ASSET MANAGER: ASSET MANAGER INDEX 500 CONTRAFUND
PORTFOLIO PORTFOLIO PORTFOLIO GROWTH PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------ ------------
Period from Period from Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995
to to to to to to
Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995
------------ ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $- $- $- $- $- $-
Cost............................... - - - - - -
--------- --------- --------- --------- --------- ---------
Net realized gains on
redemptions of fund shares.... $- $- $- $- $- $-
========= ========= ========= ========= ========= =========
</TABLE>
ix
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account for the period from October 20, 1995
(date operations commenced) to December 31, 1995, were as follows:
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S FIDELITY'S VIPF FIDELITY'S VIPF
INCOME AND MULTI-SECTOR GROWTH MONEY MARKET GROWTH
TOTAL GROWTH FUND BOND FUND FUND PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------ ------------
Period from Period from Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995,
to to to to to to
Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995
------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the period..... - - - - - -
Units purchased................ 55,795.772 2,304.328 1,949.911 1,072.056 - 5,111.723
Units redeemed................. (86.768) (12.276) (12.435) (3.726) - -
Units transferred between
Sub-Accounts and/or
Fixed Account .............. - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period........... 55,709.004 2,292.052 1,937.476 1,068.330 - 5,111.723
========== ========= ========= ========= ========= =========
<CAPTION>
ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN
SMALL CAPITALIZATION GROWTH MIDCAP GROWTH LEVERAGED ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995
to Dec. 31, 1995 to Dec. 31, 1995 to Dec. 31, 1995 to Dec. 31, 1995
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Units outstanding,
beginning of the period.......... - - - -
Units purchased .................... 9,504.716 7,530.562 2,212.160 3,867.359
Units redeemed ..................... (6.282) - (3.770) (3.755)
Units transferred between
Sub-Accounts and/or
Fixed Account ................... - - - -
----------- ----------- ----------- -----------
Units outstanding,
end of the period................ 9,498.434 7,530.562 2,208.390 3,863.604
========= ========= ========= =========
</TABLE>
x
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S
FIDELITY'S VIPF VIPF VIPF II VIPF II VIPF II VIPF II
EQUITY-INCOME OVERSEAS ASSET MANAGER: ASSET MANAGER INDEX 500 CONTRAFUND
PORTFOLIO PORTFOLIO PORTFOLIO GROWTH PORTFOLIO PORTFOLIO PORTFOLIO
------------ -------------- -------------- ------------ -------------- ------------
Period from Period from Period from Period from Period from Period from
Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995 Oct. 20, 1995
to to to to to to
Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1995
------------ ------------- -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the period......... - - - - - -
Units purchased.................... 3,934.538 1,767.901 1,972.128 6,444.530 707.189 7,416.671
Units redeemed..................... (12.141) (2.516) (12.489) (12.524) (4.854) -
Units transferred between
Sub-Accounts and/or
Fixed Account .................. - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period............... 3,922.397 1,765.385 1,959.639 6,432.006 702.335 7,416.671
========= ========= ========= ========= ======= =========
</TABLE>
xi
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY.
Operations and changes in Contract Owners' equity for the period from
October 20, 1995 (date operations commenced) to December 31, 1995 were as
follows (in thousands):
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S FIDELITY'S VIPF FIDELITY'S VIPF
INCOME AND MULTI-SECTOR GROWTH MONEY MARKET GROWTH
TOTAL GROWTH FUND BOND FUND FUND PORTFOLIO PORTFOLIO
-------------- -------------- -------------- -------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income $1 $- $- $- $- $-
Reinvested capital gains 4 - - 1 - -
Administrative expenses - - - - - -
--------- --------- --------- --------- --------- ---------
Net investment income
and capital gains 5 - - 1 - -
--------- --------- --------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares - - - - - -
Increase (decrease) in unrealized
appreciation of investments 12 - - (1) - 1
--------- --------- --------- --------- --------- ---------
Net realized and unrealized
gains (losses) 12 - - (1) - 1
--------- --------- --------- --------- --------- ---------
Net additions
from operations 17 - - - - 1
--------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments 550 24 20 11 - 50
Surrenders ................. - - - - - -
Transfers between Sub-Accounts
and/or Fixed Account - - - - - -
--------- --------- --------- --------- --------- ---------
Net additions for
Contract Owners' transactions 550 24 20 11 - 50
--------- --------- --------- --------- --------- ---------
Net additions
for the period 567 24 20 11 - 51
Contract Owners' Equity,
beginning of the period - - - - - -
--------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period........... $567 $24 $20 $11 $- $51
========= ========= ========= ========= ========= =========
</TABLE>
xii
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S FIDELITY'S
FIDELITY'S VIPF FIDELITY'S VIPF VIPF II VIPF II FIDELITY'S VIPF II
EQUITY-INCOME OVERSEAS ASSET MANAGER: ASSET MANAGER VIPF II INDEX CONTRAFUND
PORTFOLIO PORTFOLIO PORTFOLIO GROWTH PORTFOLIO 500 PORTFOLIO PORTFOLIO
------------ -------------- -------------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income $- $- $- $1 $- $-
Reinvested capital gains - - - 2 - 1
Administrative expenses - - - - - -
--------- --------- --------- --------- --------- ---------
Net investment income
and capital gains - - - 3 - 1
--------- --------- --------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares - - - - - -
Increase (decrease) in unrealized
appreciation of investments 1 - 1 (1) - 1
--------- --------- --------- --------- --------- ---------
Net realized and unrealized
gains (losses) 1 - 1 (1) - 1
--------- --------- --------- --------- --------- ---------
Net additions
from operations 1 - 1 2 - 2
--------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments 41 18 20 65 7 75
Surrenders ................. - - - - - -
Transfers between Sub-Accounts
and/or Fixed Account - - - - - -
--------- --------- --------- --------- --------- ---------
Net additions for
Contract Owners' transactions 41 18 20 65 7 75
--------- --------- --------- --------- --------- ---------
Net additions
for the period 42 18 21 67 7 77
Contract Owners' Equity,
beginning of the period - - - - - -
--------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period........... $42 $18 $21 $67 $7 $77
========= ========= ========= ========= ========= =========
</TABLE>
xiii
<PAGE>
SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY.
Operations and changes in Contract Owners' equity for the period from
October 20, 1995 (date operations commenced) to December 31, 1995 were as
follows (in thousands):
<TABLE>
<CAPTION>
ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN
SMALL CAPITALIZATION GROWTH MIDCAP GROWTH LEVERAGED ALLCAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income $- $- $- $-
Reinvested capital gains - - - -
Administrative expenses - - - -
--------- --------- --------- ---------
Net investment income
and capital gains - - - -
--------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares - - - -
Increase in unrealized
appreciation of investments 5 3 - 2
--------- --------- --------- ---------
Net realized and unrealized
gains ................ 5 3 - 2
--------- --------- --------- ---------
Net additions
from operations 5 3 - 2
--------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments 88 72 22 37
Surrenders ................. - - - -
Transfers between Sub-Accounts
and/or Fixed Account - - - -
--------- --------- --------- ---------
Net additions for
Contract Owners' transactions 88 72 22 37
--------- --------- --------- ---------
Net additions
for the period 93 75 22 39
Contract Owners' Equity,
beginning of the period - - - -
--------- --------- --------- ---------
Contract Owners' Equity,
end of the period........... $93 $75 $22 $39
========= ========= ========= =========
</TABLE>
xiv
<PAGE>
SEPARATE ACCOUNT ONE
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