INDEPENDENT AUDITORS' REPORT
____________________________
United Companies Life Insurance Company
United Companies Separate Account One and the
Board of Directors of
United Companies Life Insurance Company
Baton Rouge, Louisiana
We have audited the accompanying statement of assets and liabilities of seven
sub-accounts of United Companies Separate Account One, referred to in Note 1,
as of December 31, 1995, and the related statements of operations and of
changes in net assets for the periods presented. These financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1995,
with the managers of the mutual 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, such financial statements present fairly, in all material
respects, the financial position of the seven sub-accounts of United Companies
Separate Account One, referred to in Note 1, as of December 31, 1995, the
results of their operations and the changes in their net assets for the
periods presented in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
February 16, 1996
UNITED COMPANIES
SEPARATE ACCOUNT ONE
Financial Statements
as of December 31, 1995 and
Independent Auditors' Report
UNITED COMPANIES SEPARATE ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
December 31,
1995
-------------
ASSETS
Investments in mutual funds at market value:
The Alger American Fund (Alger):
Alger American Growth Portfolio - 2,103.830 shares (cost $65,088) $ 65,555
The Dreyfus Variable Investment Fund (Dreyfus):
Stock Index Portfolio - 2,385.910 shares (cost $41,399) 41,038
Federated Investors (Federated):
Corporate Bond Fund - 472.981 shares (cost $4,628) 4,631
MFS Variable Insurance Trust (MFS):
Emerging Growth Series - 89.515 shares (cost $1,029) 1,021
Total Return Series - 1,962.528 shares (cost $24,754) 24,041
Scudder Variable Life Investment Fund (Scudder):
Money Market Portfolio - 74,331.500 shares (cost $74,332) 74,332
International Portfolio - 5.358 shares (cost $63) 63
-------------
Total assets $ 210,681
=============
LIABILITIES $ -
-------------
Unit
NET ASSETS Units Value
----- ------
Contractowner's equity:
Alger - Growth 6,521 $10.05 $ 65,555
Dreyfus - Stock Index 4,041 10.15 41,038
Federated - Corporate Bond 456 10.16 4,631
MFS - Emerging Growth 100 10.19 1,021
MFS - Total Return 2,346 10.25 24,041
Scudder - Money Market 7,407 10.04 74,332
Scudder - International 6 10.11 63
-------------
Total net assets $ 210,681
=============
</TABLE>
See notes to financial statements.
UNITED COMPANIES SEPARATE ACCOUNT ONE
STATEMENT OF OPERATIONS
For the Periods Ended December 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
MFS MFS Scudder
Alger Dreyfus Federated Emerging Total Money
Growth Stock Index Corp Bond Growth Return Market
(Dec 15* (Dec 15* (Dec 26* (Dec 18* (Dec 15* (Nov 28*
thru thru thru thru thru thru
Total Dec 31) Dec 31) Dec 31) Dec 31) Dec 31) Dec 31)
------- ---------- ------------- ----------- ---------- ---------- ----------
INVESTMENT INCOME:
Income:
Dividends $1,882 $ - $ 468 $ - $ 29 $ 909 $ 476
Expenses:
Mortality and expense risks charges
and administrative fees 159 8 4 - 29 3 144
------- ---------- ------------- ----------- ---------- ---------- ----------
NET INVESTMENT INCOME 1,723 (8) 464 - 29 906 332
------- ---------- ------------- ----------- ---------- ---------- ----------
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning period - - - - - - -
End of period (612) 467 (361) 3 (8) (713) -
------- ---------- ------------- ----------- ---------- ---------- ----------
NET UNREALIZED GAIN (LOSS) (612) 467 (361) 3 (8) (713) -
------- ---------- ------------- ----------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,111 $ 459 $ 103 $ 3 $ 21 $ 193 $ 332
======= ========== ============= =========== ========== ========== ==========
<S> <C>
Scudder
Internl
(Dec 15*
thru
Dec 31)
----------
INVESTMENT INCOME:
Income:
Dividends $ -
Expenses:
Mortality and expense risks charges
and administrative fees $ -
----------
NET INVESTMENT INCOME -
----------
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning period -
End of period -
----------
NET UNREALIZED GAIN (LOSS) -
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ -
==========
</TABLE>
See notes to financial statements.
* Date operations commenced.
UNITED COMPANIES SEPARATE ACCOUNT ONE
STATEMENT OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
MFS MFS Scudder
Alger Dreyfus Federated Emerging Total Money
Growth Stock Index Corp Bond Growth Return Market
(Dec 15* (Dec 15* (Dec 15* (Dec 15* (Dec 15* (Dec 15*
thru thru thru thru thru thru
Total Dec 31) Dec 31) Dec 31) Dec 31) Dec 31) Dec 31)
--------- ---------- ------------- ----------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 1,723 $ (8) $ 464 $ - $ 29 $ 906 $ 332
Net unrealized gain (loss) on investments (612) 467 (361) 3 (8) (713) -
--------- ---------- ------------- ----------- ---------- ---------- ----------
Net increase in net assets
resulting from operations 1,111 459 103 3 21 193 332
--------- ---------- ------------- ----------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of annuity fund deposits 209,570 65,096 40,935 4,628 1,000 23,848 74,000
--------- ---------- ------------- ----------- ---------- ---------- ----------
Net increase in net assets resulting
from capital share transactions 209,570 65,096 40,935 4,628 1,000 23,848 74,000
--------- ---------- ------------- ----------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 210,681 65,555 41,038 4,631 1,021 24,041 74,332
NET ASSETS:
Beginning of period - - - - - - -
--------- ---------- ------------- ----------- ---------- ---------- ----------
End of period $210,681 $ 65,555 $ 41,038 $ 4,631 $ 1,021 $ 24,041 $ 74,332
========= ========== ============= =========== ========== ========== ==========
<S> <C>
Scudder
Intern'l
(Dec 15*
thru
Dec 31)
----------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ -
Net unrealized gain (loss) on investments -
----------
Net increase in net assets
resulting from operations -
----------
CAPITAL SHARE TRANSACTIONS:
Transfers of annuity fund deposits 63
----------
Net increase in net assets resulting
from capital share transactions 63
----------
TOTAL INCREASE IN NET ASSETS 63
NET ASSETS:
Beginning of period -
----------
End of period $ 63
==========
</TABLE>
See notes to financial statements.
* Date operations commenced.
UNITED COMPANIES SEPARATE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION. United Companies Separate Account One (the "Separate
Account") is a separate investment account of United Companies Life Insurance
Company ("UC Life"). The Separate account is registered with the SEC under
the Investment Company Act of 1940 as a unit investment trust. The Separate
Account commenced operations on November 29, 1995. UC Life is a stock life
insurance company domiciled in Louisiana and organized in 1955. UC Life is
currently authorized to conduct business in 47 states, the District of
Columbia and Puerto Rico. UC Life is a wholly-owned subsidiary of United
Companies Financial Corporation, a public financial services company.
As of December 31, 1995, the Separate Account consisted of eleven
sub-accounts. These financial statements report on the seven sub-accounts
which had activity at December 31, 1995. Each of the eleven sub-accounts
invests only in a single corresponding portfolio of either The Alger American
Fund (Fred Alger Management, Advisor), the Dreyfus Variable Investment Fund
(The Dreyfus Corporation, Advisor), Federated Investor's Insurance Management
Service (Federated Advisors, Advisor), MFS Variable Insurance Trust (MFS,
Advisor), Scudder Variable Life Investment Fund (Scudder, Stevens & Clark,
Inc., Advisor) or the Van Eck Worldwide Insurance Trust (Van Eck Associates
Corporation, Advisor). Each sub-account pays the respective advisor a fee for
services.
2. INVESTMENTS. The market value of the investments in the sub-accounts is
based on the net asset values of shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses are determined on a
first-in first-out basis. Generally, investment income and realized capital
gains are reinvested.
3. CONTRACT CHARGES. Each valuation period, generally each business day, a
mortality and expense risk charge is deducted from the Separate Account, which
is equal, on an annual basis, to 1.45% of the average daily net asset value of
each sub-account of the Separate Account. This charge compensates UC Life for
assuming the mortality and expense risks under the contracts and certificates.
In addition, an administrative charge is deducted from the Separate Account
which is equal, on an annual basis, to .15% of the average daily net asset
value of each sub-account of the Separate Account. This charge compensates UC
Life for costs associated with the administration of the contracts,
certificates and the Separate Account. Under certain circumstances, a
transfer fee may be assessed when an owner or certificate holder transfers
contract values or certificate holder's account values between sub-accounts or
to or from UC Life's fixed accounts. A contingent deferred sales charge is
assessed against full or partial surrenders in accordance with contract terms.
There is no contingent deferred sales charge if all premiums were received at
least ten years prior to the date of the full or partial surrenders. An
annual contract or certificate maintenance fee of $30 is charged against
certain contracts based upon a minimum contract value. Some states and other
jurisdictions assess premium taxes at the time purchase payments are made;
others assess premium taxes at the time annuity payments begin. Premium taxes
are deducted when they are due.
4. INCOME TAXES. UC Life does not expect to incur any federal income tax
liability on earnings, or realized capital gains attributable to the Separate
Account, therefore, no charges for federal income taxes are currently deducted
from the Separate Account. If UC Life incurs income taxes attributable to the
Separate Account, or determines that such taxes will be incurred, it may make
a charge for such taxes against the Separate Account.
5. CHANGES IN THE UNITS OUTSTANDING.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Dreyfus Federated
Alger Stock Corporate
Growth Index Bond
(Dec 15* (Dec 15* (Dec 26*
thru thru thru
Dec 31) Dec 31) Dec 31)
--------- --------- ----------
Units outstanding beginning of the period - - -
Units transferred between sub-accounts 6,521 4,041 456
--------- --------- ----------
Units outstanding end of the period 6,521 4,041 456
========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MFS MFS
Emerging Total
Growth Return
(Dec 18* (Dec 15*
thru thru
Dec 31) Dec 31)
--------- ---------
Units outstanding beginning of the period - -
Units transferred between sub-accounts 100 2,346
--------- ---------
Units outstanding end of the period 100 2,346
========= =========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Scudder Scudder
Money
Market Internl
(Nov 28* (Dec 15*
thru thru
Dec 31) Dec 31)
--------- ---------
Units outstanding beginning of the period - -
Units purchased 20,925 -
--------- ---------
Units transferred between sub-accounts (13,518) 6
--------- ---------
Units outstanding end of the period 7,407 6
========= =========
</TABLE>
* Date operations commenced
