<PAGE> 1
ANNUAL REPORT
CIGNA GROUP VARIABLE
UNIVERSAL LIFE INSURANCE
SEPARATE ACCOUNT A
December 31, 1999
[CIGNA TREE LOGO]
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
REPORT OF INDEPENDENT ACCOUNTANTS........................... 3
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES...................... 4
STATEMENTS OF OPERATIONS.................................. 5
STATEMENTS OF CHANGES IN NET ASSETS....................... 6
NOTES TO FINANCIAL STATEMENTS............................. 7
SCHEDULE OF CHANGES IN UNIT VALUES........................ 11
FUND REPORTS
AMERICAN CENTURY ANNUAL REPORT
Variable Products Capital Appreciation Fund
CIGNA VARIABLE PRODUCTS GROUP ANNUAL REPORT
CIGNA Variable Products Money Market Fund
CIGNA Variable Products S&P 500 Index Fund
FIDELITY VARIABLE INSURANCE PRODUCTS FUND ANNUAL REPORT
Fidelity Equity-Income Portfolio
Fidelity Overseas Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II ANNUAL REPORT
Fidelity Asset Manager Portfolio
Fidelity Investment Grade Bond Portfolio
</TABLE>
<PAGE> 3
[PRICEWATERHOUSECOOPERS LETTERHEAD]
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Connecticut General
Life Insurance Company and Participants of the
CG Variable Life Insurance Separate Account A
In our opinion, the accompanying statements of assets and liabilities and
the related statements of operations and of changes in net assets present
fairly, in all material respects, the financial position of each of the funds or
portfolios, American Century Variable Products Capital Appreciation Fund; CIGNA
Variable Products Group (Money Market Fund and S&P 500 Index Fund), Fidelity
Variable Insurance Products Fund (Equity-Income Portfolio and Overseas
Portfolio), Fidelity Variable Insurance Products Fund II (Asset Manager
Portfolio and Investment Grade Bond Portfolio) (constituting the CG Variable
Life Insurance Separate Account A, hereafter referred to as "Separate Account
A") at December 31, 1999, the results of each of their operations and the
changes in each of their net assets for the period indicated, in conformity with
accounting principles generally accepted in the United States. These financial
statements are the responsibility of Separate Account A's management; our
responsibility is to express an opinion on these financial statements in
accordance with auditing standards generally accepted in the United States,
which 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, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statements presentation. We believe that our audit, which included
confirmation of securities at December 31, 1999 by correspondence with the
custodians, provides a reasonable basis for the opinion expressed above.
[PRICEWATERHOUSECOOPERS SIG]
Philadelphia, PA
February 14, 2000
3
<PAGE> 4
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
AMERICAN FIDELITY
CENTURY CIGNA VARIABLE VARIABLE INSURANCE
VARIABLE PRODUCTS PRODUCTS GROUP PRODUCTS FUND
----------------- ------------------------ -------------------------
CAPITAL MONEY S&P 500 EQUITY-INCOME OVERSEAS
APPRECIATION FUND MARKET FUND INDEX FUND PORTFOLIO PORTFOLIO
----------------- ----------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in variable
insurance funds and
portfolios, at fair
value..................... $555,994 $241,860 $2,057,780 $957,545 $397,149
-------- -------- ---------- -------- --------
Total net assets.......... $555,994 $241,860 $2,057,780 $957,545 $397,149
======== ======== ========== ======== ========
Accumulation units
outstanding............... 37,466 241,860 90,135 37,244 14,473
Net asset value per
accumulation unit......... 14.840 1.000 22.830 25.710 27.440
-------- -------- ---------- -------- --------
Accumulation net assets..... $555,994 $241,860 $2,057,780 $957,545 $397,149
======== ======== ========== ======== ========
<CAPTION>
FIDELITY
VARIABLE INSURANCE PRODUCTS
FUND II
--------------------------------
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------- ----------------
<S> <C> <C>
NET ASSETS:
Investment in variable
insurance funds and
portfolios, at fair
value..................... $688,467 $403,417
-------- --------
Total net assets.......... $688,467 $403,417
======== ========
Accumulation units
outstanding............... 37,457 33,176
Net asset value per
accumulation unit......... 18.380 12.160
-------- --------
Accumulation net assets..... $688,467 $403,417
======== ========
</TABLE>
4
<PAGE> 5
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM NOVEMBER 15, 1999 TO DECEMBER 31, 1999
<TABLE>
<CAPTION>
AMERICAN FIDELITY
CENTURY CIGNA VARIABLE VARIABLE INSURANCE
VARIABLE PRODUCTS PRODUCTS GROUP PRODUCTS FUND
----------------- ------------------------ -------------------------
CAPITAL MONEY S&P 500 EQUITY-INCOME OVERSEAS
APPRECIATION FUND MARKET FUND INDEX FUND PORTFOLIO PORTFOLIO
----------------- ----------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends..................... $ -- $1,539 $ 35,478 $ -- $ --
EXPENSES:
Mortality and expense risk.... 240 133 1,001 460 186
------- ------ -------- ------- -------
Net investment gain
(loss).................... (240) 1,406 34,477 (460) (186)
------- ------ -------- ------- -------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Capital gain distributions
from portfolio sponsors..... -- -- 26,368 -- --
Net realized gain (loss) on
share transactions.......... 107 -- 144 (5) 11
------- ------ -------- ------- -------
Net realized gain (loss).... 107 -- 26,512 (5) 11
Change in net unrealized gain
(loss)...................... 93,608 -- 39,363 (4,758) 47,915
------- ------ -------- ------- -------
Net realized and unrealized
gain (loss) on
investments............... 93,715 -- 65,875 (4,763) 47,926
------- ------ -------- ------- -------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $93,475 $1,406 $100,352 $(5,223) $47,740
======= ====== ======== ======= =======
<CAPTION>
FIDELITY
VARIABLE INSURANCE PRODUCTS
FUND II
--------------------------------
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends..................... $ -- $ --
EXPENSES:
Mortality and expense risk.... 318 207
------- -------
Net investment gain
(loss).................... (318) (207)
------- -------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Capital gain distributions
from portfolio sponsors..... -- --
Net realized gain (loss) on
share transactions.......... 77 (30)
------- -------
Net realized gain (loss).... 77 (30)
Change in net unrealized gain
(loss)...................... 33,071 (4,336)
------- -------
Net realized and unrealized
gain (loss) on
investments............... 33,148 (4,366)
------- -------
INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $32,830 $(4,573)
======= =======
</TABLE>
5
<PAGE> 6
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM NOVEMBER 15, 1999 TO DECEMBER 31, 1999
<TABLE>
<CAPTION>
AMERICAN FIDELITY
CENTURY CIGNA VARIABLE VARIABLE INSURANCE PRODUCTS
VARIABLE PRODUCTS PRODUCTS GROUP FUND
----------------- ------------------------ ---------------------------
CAPITAL MONEY S&P 500 EQUITY-INCOME OVERSEAS
APPRECIATION FUND MARKET FUND INDEX FUND PORTFOLIO PORTFOLIO
----------------- ----------- ---------- -------------- ----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment gain
(loss).................... $ (240) $ 1,406 $ 34,477 $ (460) $ (186)
Net realized gain (loss).... 107 -- 26,512 (5) 11
Net unrealized gain
(loss).................... 93,608 -- 39,363 (4,758) 47,915
-------- -------- ---------- -------- --------
Net increase (decrease)
from operations......... 93,475 1,406 100,352 (5,223) 47,740
-------- -------- ---------- -------- --------
ACCUMULATION UNIT
TRANSACTIONS:
Participant deposits, net of
premium taxes............. 418,143 230,836 1,680,930 859,540 313,592
Participant transfers....... 54,648 10,425 300,788 116,032 38,088
Participant withdrawals and
surrenders................ (7,672) (56) (12,785) (7,578) (469)
Cost of insurance deduction
and administrative fees... (2,600) (751) (11,505) (5,226) (1,802)
-------- -------- ---------- -------- --------
Net increase from
participant
transactions............ 462,519 240,454 1,957,428 962,768 349,409
-------- -------- ---------- -------- --------
Total increase in net
assets............... 555,994 241,860 2,057,780 957,545 397,149
NET ASSETS:
Beginning of period......... -- -- -- -- --
-------- -------- ---------- -------- --------
End of period............... $555,994 $241,860 $2,057,780 $957,545 $397,149
======== ======== ========== ======== ========
<CAPTION>
FIDELITY
VARIABLE INSURANCE PRODUCTS
FUND II
--------------------------------
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment gain
(loss).................... $ (318) $ (207)
Net realized gain (loss).... 77 (30)
Net unrealized gain
(loss).................... 33,071 (4,336)
-------- --------
Net increase (decrease)
from operations......... 32,830 (4,573)
-------- --------
ACCUMULATION UNIT
TRANSACTIONS:
Participant deposits, net of
premium taxes............. 619,038 299,371
Participant transfers....... 50,688 111,202
Participant withdrawals and
surrenders................ (10,251) (56)
Cost of insurance deduction
and administrative fees... (3,838) (2,527)
-------- --------
Net increase from
participant
transactions............ 655,637 407,990
-------- --------
Total increase in net
assets............... 688,467 403,417
NET ASSETS:
Beginning of period......... -- --
-------- --------
End of period............... $688,467 $403,417
======== ========
</TABLE>
6
<PAGE> 7
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION
CG Variable Life Insurance Separate Account A (Separate Account A) is
registered as a Unit Investment Trust under the Investment Company Act of
1940, as amended. The operations of Separate Account A are part of the
operations of Connecticut General Life Insurance Company (CG Life). The
assets and liabilities of Separate Account A are identified and
distinguished from other assets and liabilities of CG Life. The assets of
Separate Account A are not available to meet the general obligations of CG
Life and are held for the exclusive benefit of the participants.
At December 31, 1999, the assets of Separate Account A are divided
into variable funds or portfolios, each of which is invested in shares of
one of seven portfolios (mutual funds) of four diversified open-end
management investment companies, each portfolio having its own investment
objective. Transfers are permitted between these portfolios and to and from
a fixed account option offered by CG Life. The fixed account is not
included in these financial statements. The variable funds or portfolios
are:
AMERICAN CENTURY:
Variable Products Capital Appreciation Fund
CIGNA VARIABLE PRODUCTS GROUP:
CIGNA Variable Products Money Market Fund
CIGNA Variable Products S&P 500 Index Fund
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
Equity-Income Portfolio ("Fidelity Equity-Income Portfolio")
Overseas Portfolio ("Fidelity Overseas Portfolio")
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
Asset Manager Portfolio ("Fidelity Asset Manager Portfolio")
Investment Grade Bond Portfolio ("Fidelity Investment Grade Bond
Portfolio")
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in conformity with
generally accepted accounting principles and reflect management's estimates
and assumptions, such as those regarding fair value, that affect recorded
amounts. Actual results could differ from those estimates. Significant
estimates are discussed throughout the Notes to Financial Statements. The
following is a summary of significant accounting policies consistently
applied in the preparation of Separate Account A's financial statements:
A. INVESTMENT VALUATION: Investments held by the funds or portfolios
are valued at their respective closing net asset values per share as
determined by the mutual fund or portfolio manager as of December 31, 1999.
The change in the difference between cost and fair value is reflected in
unrealized gain (loss) in the Statement of Operations.
B. INVESTMENT TRANSACTIONS: Investment transactions are recorded on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on sales of investments are determined by the last-in, first-out
cost basis of the investment sold. Dividend and capital gain distributions
are recorded on the ex-dividend date. Investment transactions are settled
through CG Life.
C. FEDERAL INCOME TAXES: The operations of Separate Account A form a
part of, and are taxed with, the total operations of CG Life, which is
taxed as a life insurance company. Under existing Federal income tax law,
investment income (dividends) and capital gains attributable to Separate
Account A are not taxed.
7
<PAGE> 8
3. INVESTMENTS
Total shares outstanding and cost of investments as of December 31,
1999 were:
<TABLE>
<CAPTION>
COST OF
FUND OR PORTFOLIO SHARES HELD INVESTMENTS
- ----------------- ----------- -----------
<S> <C> <C>
American Century Variable Products Capital Appreciation..... 37,466 $ 462,386
CIGNA Variable Products Money Market........................ 241,860 241,860
CIGNA Variable Products S&P 500 Index....................... 90,135 2,018,417
Fidelity Equity-Income Portfolio............................ 37,244 962,303
Fidelity Overseas Portfolio................................. 14,473 349,234
Fidelity Asset Manager Portfolio............................ 37,457 655,396
Fidelity Investment Grade Bond Portfolio.................... 33,176 407,753
</TABLE>
Total purchases and sales of shares of each mutual fund or portfolio
for the period ended December 31, 1999 amounted to:
<TABLE>
<CAPTION>
FUND OR PORTFOLIO PURCHASES SALES
- ----------------- ---------- -------
<S> <C> <C>
American Century Variable Products Capital Appreciation..... $ 470,334 $ 7,948
CIGNA Variable Products Money Market........................ 242,790 930
CIGNA Variable Products S&P 500 Index....................... 2,034,642 16,225
Fidelity Equity-Income Portfolio............................ 970,856 8,553
Fidelity Overseas Portfolio................................. 351,725 2,491
Fidelity Asset Manager Portfolio............................ 666,609 11,213
Fidelity Investment Grade Bond Portfolio.................... 415,478 7,725
</TABLE>
4. CHARGES AND DEDUCTIONS
The fees charged by CG Life for mortality and expense risk and premium
taxes for the period ended December 31, 1999 amounted to:
<TABLE>
<CAPTION>
MORTALITY AND
EXPENSE PREMIUM
FUND OR PORTFOLIO RISK FEES TAXES
- ----------------- ------------- -------
<S> <C> <C>
American Century Variable Products Capital Appreciation..... $ 240 $ 621
CIGNA Variable Products Money Market........................ 133 104
CIGNA Variable Products S&P 500 Index....................... 1,001 2,536
Fidelity Equity-Income Portfolio............................ 460 1,304
Fidelity Overseas Portfolio................................. 186 445
Fidelity Asset Manager Portfolio............................ 318 1,083
Fidelity Investment Grade Bond Portfolio.................... 207 424
</TABLE>
MORTALITY AND EXPENSE RISK FEES
CG Life charges each certificate under the group policy for mortality
and expense risks the daily equivalent of 0.45%, on an annual basis, of the
current value of the fund's or portfolio's assets. This charge may change
but will never be more than 0.90% per year. The mortality and expense risk
charge is also assessed against amounts held in the fixed account, if any.
PREMIUM TAXES
Each premium payment is subject to a charge covering state insurance
premium taxes, and Federal income taxes under Section 848 of the Internal
Revenue Code (dealing with deferred acquisition costs.). This charge is
stated in the Group Policy but will not be more than 5.00%. State insurance
premium taxes vary from state to state and range from 0.00% to 3.00%. In
1999 there were no premium charges deducted for payment of Federal income
taxes on deferred acquisition costs.
8
<PAGE> 9
Fees charged by CG Life for cost of insurance, administrative fees and
transaction fees, for the period ended December 31, 1999 amounted to:
<TABLE>
<CAPTION>
COSTS OF
INSURANCE ADMINISTRATIVE TRANSACTION
FUND OR PORTFOLIO DEDUCTION FEES FEES
- ----------------- --------- -------------- -----------
<S> <C> <C> <C>
American Century Variable Products Capital
Appreciation.......................................... $ 2,477 $123 $ --
CIGNA Variable Products Money Market.................... 716 35 --
CIGNA Variable Products S&P 500 Index................... 11,120 385 --
Fidelity Equity-Income Portfolio........................ 5,041 185 --
Fidelity Overseas Portfolio............................. 1,732 70 --
Fidelity Asset Manager Portfolio........................ 3,694 144 --
Fidelity Investment Grade Bond Portfolio................ 2,467 60 --
</TABLE>
COST OF INSURANCE
CG Life charges a monthly deduction for the cost of insurance and any
other benefits provided under the group policy. The cost of insurance
charge depends on the following risk factors:
-- The group policyholder's industry.
-- The number of eligible persons.
-- The age, sex and occupation of the eligible persons.
-- The prior claims experience of group life insurance plans
sponsored by the group policyholder.
-- Expenses of the group policy, including commissions to agents or
brokers.
-- Our prior claims experience under the group policies.
-- Other factors affecting CG Life's risk under the group policy.
The monthly cost of insurance is guaranteed never to exceed maximum
rates which are based on 150% of the 1980 Commissioners Standard Ordinary
Male Mortality Tables, Age Last Birthday.
ADMINISTRATIVE FEES
CG Life charges a monthly administrative fee to cover the cost of
premium billing and collection, certificate value calculation, transaction
processing, periodic reports and other expenses. This charge will vary
depending on the group policyholder, including the number of eligible
persons and the expected costs of administering the certificates under the
group policy. This charge will not exceed:
-- $6.00 per month, for certificates having a fund or portfolio
balance (net of loans) of more than zero but not more than
$10,000.
-- $5.00 per month, for certificates having no fund or portfolio
balance, or having a fund or portfolio balance (net of loans) of
more than $10,000.
TRANSACTION FEES
CG Life charges a $25.00 transaction fee for the following
transactions:
-- A full surrender of the certificate during the first 20 policy
years.
-- A partial surrender of the certificate during the first 20 policy
years.
-- Each transfer between funding options in excess of 12 transfers
during each policy year.
The transaction fee may be waived at the discretion of CG Life
management. In 1999 the transaction fee was waived.
9
<PAGE> 10
5. DISTRIBUTION OF NET INCOME
Separate Account A does not expect to declare dividends to
participants from accumulated net income. The accumulated net income is
allocated to each participant. Distribution to participants will occur as
part of death benefits and surrenders. Also, transfers to the fixed or
variable funds or portfolios of Separate Account A will be reflected as a
distribution.
6. DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code of
1986 (the Code), a variable life insurance policy will not be treated as
life insurance under Section 7702 of the Code for any period for which the
investments of the segregated asset account, on which the policy is based,
are not adequately diversified. The Code provides that the "adequately
diversified" requirement may be met if the underlying investments satisfy
either a statutory safe harbor test or diversification requirements set
forth in regulations issued by the Secretary of Treasury. CG Life believes,
based on assurances from the mutual funds, that the mutual funds satisfy
the requirements of the regulations and that Separate Account A therefore
satisfies the requirements of the regulations, and that Separate Account A
will continue to meet such requirements.
10
<PAGE> 11
CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT A
SCHEDULE OF CHANGES IN UNIT VALUES
FOR THE YEAR ENDED DECEMBER 31, 1999
UNAUDITED
<TABLE>
<CAPTION>
DATE ACCUMULATION
INITIALLY UNIT VALUE AT
FUND OR PORTFOLIO FUNDED 12/31/99
- ----------------- --------- -------------
<S> <C> <C>
American Century Variable Products Capital Appreciation
Fund...................................................... 11/15/99 $14.840000
CIGNA Variable Products Money Market Fund................... 11/15/99 1.000000
CIGNA Variable Products S&P 500 Index Fund.................. 11/15/99 22.830000
Fidelity Variable Insurance Products Equity-Income
Portfolio................................................. 11/15/99 25.710000
Fidelity Variable Insurance Products Overseas Portfolio..... 11/15/99 27.440000
Fidelity Variable Insurance Products II Asset Manager
Portfolio................................................. 11/15/99 18.380000
Fidelity Variable Insurance Products II Investment Grade
Bond Portfolio............................................ 11/15/99 12.160000
</TABLE>
11
