TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES, N-30D, 2000-08-23

TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES
N-30D, 2000-08-23

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<PAGE> 1
UNIVERSAL ANNUITY

SEMI-ANNUAL REPORTS
JUNE 30, 2000

[UMBRELLA LOGO]

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES

THE TRAVELERS QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

THE TRAVELERS MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

[TRAVELERS LIFE & ANNUITY LOGO]

The Travelers Insurance Company
The Travelers Life and Annuity Company
One Tower Square
Hartford, CT 06183

<PAGE> 2

[TAMIC LOGO]

Travelers Asset Management International Company, LLC ("TAMIC") provides fixed
income management and advisory services for the following Travelers Variable
Products Separate Accounts contained in this report: The Travelers Growth and
Income Stock Account for Variable Annuities, The Travelers Quality Bond Account
for Variable Annuities and The Travelers Money Market Account for Variable
Annuities.

[TIMCO LOGO]

The Travelers Investment Management Company ("TIMCO") provides equity management
and subadvisory services for The Travelers Growth and Income Stock Account for
Variable Annuities.

<PAGE> 3

[TRAVELERS LIFE & ANNUITY LOGO]

THE TRAVELERS VARIABLE PRODUCT SEPARATE ACCOUNTS
INVESTMENT ADVISORY COMMENTARY AS OF JUNE 30, 2000

MARKET AND ECONOMIC OVERVIEW

Stocks declined in the second quarter of 2000, leaving many of the major indexes
down for the first half of the year as investors debated potential rate
increases by the Federal Reserve Board ("Fed"). Volatility continued to be a
major theme with both the Dow Jones Industrial Average ("DJIA") (1) and the
Nasdaq Composite Index ("NASDAQ")(2) registering record one-day point losses.
The breadth of the declines affected a wide range of stocks including many
small- and large- capitalization company stocks, growth stocks and value stocks.
(Growth stocks are shares of companies with historically strong and relatively
predictable earnings growth rates. Value stocks are shares of companies that are
believed to be undervalued but have good longer-term business prospects.)
Momentum investing and dot.com stocks were out of favor, replaced in many cases
by a renewed interest in companies that many investors believed may provide real
earnings and had strong financials.

Concerns about higher interest rates peaked in mid-May, when the Fed raised
interest rates an additional 50 basis points (3). The specter of rising rates
was a catalyst for the weak performance of all of the major indexes during the
period. The DJIA, which is made up of Old Economy companies, declined 8.44%
during the reporting period. (The Old Economy represents more established,
"blue-chip" companies.) The Standard & Poor's 500 Index ("S&P 500 Index") (4) of
large-company stocks fell 0.43%, the Standard and Poor's MidCap 400 Index (5)
("S&P MidCap 400 Index") of medium-size company stocks and the Russell 2000
Index (6) of small-company stocks advanced 8.97% and 3.04%, respectively, for
the six months ended June 30, 2000.

For the sixth consecutive time in the last year, the Fed acted to raise interest
rates in May to slow the U.S. economy, increasing the federal funds rate by 50
basis points to 6.5%. (The federal funds rate is the interest rate that banks
with excess reserves at a Fed district bank charge other banks that need
overnight loans. The fed funds rate, as it is called, often points to the
direction of U.S. interest rates.) The increase of the target overnight interest
rate marked its highest level in nine years and reflected Fed actions intended
to address risks of an economy with higher inflationary pressures.

The Fed continued to stress its concern that there is a disparity in the growth
of demand and potential supply, which may foster inflation and jeopardize the
economy's performance. In theory, higher rates may potentially hurt stocks,
because slower growth often hinders profits at the same time that alternative
investments become more attractive. Accordingly, many interest-rate sensitive
stocks experienced price declines after the recent decision.

-1-

<PAGE> 4

In June, many investors were relieved after the Fed left interest rates
unchanged during its latest policy meeting. Although the central bank noted that
inflation risks persist, the decision was made against more interest rate
increases was ruled out for the time being. Generally, monetary policy takes
time to filter through the economy and the full effect of higher interest rates
may not be felt for months.

(1) DJIA is a price-weighted average of 30 actively traded blue-chip stocks. An
investor cannot invest in an index.
(2) The NASDAQ is a market value-weighted index that measures all domestic and
non-U.S. based securities listed on the NASDAQ stock market. An investor cannot
invest directly in an index.
(3) A basis point is 0.01% or one one-hundredth of a percent.
(4) The S&P 500 Index is a market capitalization measure of 500 widely held
common stocks. An investor cannot invest directly in an index.
(5) S&P 400 Midcap Index is a market-value weighted index, consisting of 400
domestic stocks chosen for market size liquidating and industry group
representation.
(6) Russell 2000 Index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index

DAVID A. TYSON, CFA, PRESIDENT & CHIEF INVESTMENT OFFICER, TRAVELERS ASSET
MANAGEMENT INTERNATIONAL COMPANY, LLC

SANDIP A. BHAGAT, CFA, PRESIDENT & CHIEF INVESTMENT OFFICER, THE TRAVELERS
INVESTMENT MANAGEMENT COMPANY

-2-

<PAGE> 5

TABLE OF CONTENTS

PAGE
--------------------------------------------------------------------------------------
<S> <C>

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES................................................................4

THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE
ANNUITIES............................................................................17

THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE
ANNUITIES............................................................................27

</TABLE>

-3-

<PAGE> 6

THE TRAVELERS
GROWTH AND INCOME
STOCK ACCOUNT
FOR VARIABLE ANNUITIES

The Travelers Growth and Income Stock Account for Variable Annuities ("Account
GIS") is managed by the Travelers Asset Management International Company, LLC
("TAMIC") with the Travelers Investment Management Company ("TIMCO") serving as
subadvisor. Account GIS is managed to provide diversified exposure to the
large-company segment of the U.S. equity market. Stock selection is based on a
quantitative screening process favoring companies that are able to grow earnings
above consensus expectations and offer attractive relative value. In order to
achieve consistent relative performance, we manage Account GIS to mirror the
overall risk, sector weightings and growth/value style characteristics of the
Standard & Poor's 500 Stock Index ("S&P 500"). The S&P 500 is a value-weighted
equity index comprised primarily of large-company stocks.

For the six months ending June 30, 2000, Account GIS achieved a total return of
-0.3%, before fees and expenses, in line with the S&P 500 return of -0.4%. Net
of fees and expenses, Account GIS's total return of -1.2% for the first half of
2000 was comparable to the -1.0% median return for variable annuity stock
accounts in the Lipper Growth & Income category. On a trailing twelve month
basis as of June 30, 2000, Account GIS had a total return of 8.2%, net of fees
and expenses, well ahead of the Lipper Growth & Income median of 0.6%. A
discussion of portfolio performance in each of the first two quarters of 2000 is
presented next.

During the first quarter of 2000, stock selection was most favorable in the
Financial Services, Producer Durables and Utilities sectors and slightly adverse
in the Technology and Health care sectors.

In the Financial Services sector, falling long-term rates helped bank and
brokerage stocks. Our overweight positions in Merrill Lynch & Co., Morgan
Stanley Dean Witter & Co., Lehman Brothers Holdings, Inc. and Chase Manhattan
Corp., which serve to offset the underweight restriction in Citigroup, all
performed quite well. Avoiding Associated First Capital which experienced
disappointing operating performance in its loan origination business and AON
Corp. which failed to meet consensus expectations for fourth quarter earnings
also helped us.

In the Producer Durables sector, Tyco International Ltd. continued to rebound
from the controversy surrounding its accounting practices in the treatment of
mergers and acquisitions. By the end of the first quarter, Tyco International
Ltd. had recovered most of the nearly -50% loss from the previous high
established in September 1999. PerkinElmer, Inc. was also a strong performer
with positive earnings and revenue momentum generated from its line of
telecommunications products.

In the Utilities sector, our emphasis on telecommunications companies such as
Nextel Communications, Inc. and Sprint Corp.-PCS Group continues to payoff.
Nextel Communications, Inc. launched its worldwide cell phone service with
several new joint ventures in the first quarter and Sprint Corp.-PCS Group
continued to increase its penetration in the digital wireless market.

In the Technology sector, we were hurt by our picks in the software industry.
BMC Software Inc. notified investors on January 5 that it was going to
significantly miss the consensus earnings forecast of 53 cents/share due to an
unexpected slowdown in North American sales. Other mainframe software stocks
such as Compuware Corp. sold off in sympathy. Our performance was hurt by small
overweight positions in both stocks.

In the Healthcare sector, we lost ground from being underweight in better
performing stocks such as Pfizer, Inc. and Guidant. Performance was also
hindered by Columbia/HCA Healthcare Corp., the hospital giant, which reported
earnings in line with expectations but fell sharply as it failed to match the
above-average operating results of other major hospital companies.

At the beginning of the second quarter, market volatility spiked up
significantly. Value stocks dominated early in the quarter and growth stocks
staged a strong recovery towards the end of the quarter. Stock selection hurt
relative performance in the Consumer Discretionary and Utilities sectors, was
favorable in the Producer Durables sector and remained mixed in the other
sectors.

-4-

<PAGE> 7

Higher interest rates and gasoline prices began to take their toll on retail
stocks in the Consumer Discretionary sector. Our overweight position in Circuit
City Stores, Inc. performed poorly as the company indicated that a slowdown in
major appliance sales and a shift in the overall merchandise sales mix would
result in lower profit margins. Other retail stocks which did not fare well in
the second quarter included Lowe's Cos., Inc., Sears, Roebuck & Co. and Target
Corp. Stores.

In the Producer Durables sector, PerkinElmer, Inc. continued its strong
performance with positive earnings and revenue momentum generated from its line
of telecommunications products. The big story in this sector, however, was
Corning, Inc. which took the unusual step of guiding earnings estimates for the
current fiscal year higher as it encounters unprecedented demand for its high
tech products such as high-speed optical fiber and cable and LCD flat-panel
display glass. Corning, Inc. rose by nearly 40% in the second quarter as its new
focus on technology applications propels it into a higher earnings growth orbit.

In the Utilities sector, our emphasis on telecommunications companies such as
Nextel Communications, Inc., Sprint Corp.-PCS Group and CenturyTel, Inc. did not
pay off for the first time in several quarters. The Nasdaq sell-off in April and
May had a negative effect on these higher-growth, higher price-to-earnings
stocks and contributed adversely to performance.

The near term outlook for the stock market relies heavily on monetary policy.
The Federal Reserve Board ("Fed") has indicated a hawkish bias in its promise to
monitor inflationary developments closely. Economic data reported between now
and the next Fed meeting in August will determine if we experience another rise
in short term rates.

In our disciplined approach to stock selection, we screen our research universe
of over 1,000 large cap securities for companies that offer improving earnings
fundamentals at discounted stock valuations. A small sample of our current
holdings is presented here to illustrate our investment approach. In the
technology sector, we are emphasizing Oracle Corp. in the software industry and
Micron Technologies, Inc. in the semiconductor industry as they offer strong
earnings growth at reasonable valuations. As discussed above, Corning, Inc.
represents our biggest active position in the diversified manufacturing group.
Merck & Co, Inc. and Pfizer Inc. are our core plays in the health care sector.

PORTFOLIO MANAGER: SANDIP A. BHAGAT, CFA

[TAMIC LOGO]

[TIMCO LOGO]

-5-

<PAGE> 8

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000

ASSETS:
<S> <C>
Investment securities, at market value (cost $756,194,253) ......... $1,032,661,675
Receivables:
Dividends ...................................................... 849,029
Investment securities sold ..................................... 4,166,370
Purchase payments and transfers from other Travelers accounts .. 464,275
Variation on futures margin .................................... 55,550
Other assets ...................................................... 45,215
--------------

Total Assets .................................................... 1,038,242,114
--------------

LIABILITIES:

Cash overdraft .................................................... 449,418
Payables:
Investment securities purchased ................................ 3,679,829
Contract surrenders and transfers to other Travelers accounts .. 391,162
Investment management and advisory fees ........................ 133,988
Insurance charges .............................................. 264,600
Accrued liabilities ............................................... 21,088
--------------

Total Liabilities ............................................... 4,940,085
--------------

NET ASSETS: $1,033,302,029
==============

</TABLE>

See Notes to Financial Statements

-6-

<PAGE> 9

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2000

<S> <C> <C>
INVESTMENT INCOME:
Dividends ............................................................ $ 5,194,691
Interest ............................................................. 460,008
-------------
Total income ...................................................... $ 5,654,699

EXPENSES:
Investment management and advisory fees .............................. 3,052,584
Insurance charges .................................................... 6,028,381
-------------
Total expenses .................................................... 9,080,965
-------------

Net investment loss ............................................... (3,426,266)
-------------

REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES:
Realized gain (loss) from investment security transactions:
Proceeds from investment securities sold ............................ 318,699,084
Cost of investment securities sold .................................. 275,308,074
-------------

Net realized gain (loss) .......................................... 43,391,010

Change in unrealized gain (loss) on investment securities:
Unrealized gain at December 31, 1999 ............................... 329,495,935
Unrealized gain at June 30, 2000 ................................... 276,467,422
-------------

Net change in unrealized gain (loss) for the period ............... (53,028,513)
-------------

Net realized gain (loss) and change in unrealized gain (loss) ... (9,637,503)
-------------

Net decrease in net assets resulting from operations ................ $ (13,063,769)
=============

</TABLE>

See Notes to Financial Statements

-7-

<PAGE> 10

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 2000 1999
------------------- -----------------
<S> <C> <C>
(UNAUDITED)
OPERATIONS:
Net investment loss ........................................... $ (3,426,266) $ (5,292,085)
Net realized gain (loss) from investment security
transactions ............................................... 43,391,010 183,428,890
Net change in unrealized gain (loss) on investment
securities ................................................. (53,028,513) 16,046,336
--------------- ---------------

Net increase (decrease) in net assets resulting from
operations ............................................... (13,063,769) 194,183,141
--------------- ---------------

UNIT TRANSACTIONS:
Participant purchase payments
(applicable to 1,297,770 and 2,777,936 units, respectively) ... 29,541,039 57,722,048
Participant transfers from other Travelers accounts
(applicable to 1,846,059 and 4,293,186 units, respectively) ... 42,040,311 88,841,951
Administrative charges
(applicable to 13,714 and 28,450 units, respectively) ......... (314,000) (620,057)
Contract surrenders
(applicable to 2,155,614 and 3,595,965 units, respectively) ... (49,336,031) (75,854,139)
Participant transfers to other Travelers accounts
(applicable to 2,146,390 and 3,893,858 units, respectively) ... (48,803,333) (80,968,008)
Other payments to participants
(applicable to 36,227 and 203,710 units, respectively) ........ (820,036) (4,323,110)
--------------- ---------------

Net decrease in net assets resulting from unit transactions ... (27,692,050) (15,201,315)
--------------- ---------------

Net increase (decrease) in net assets ...................... (40,755,819) 178,981,826

NET ASSETS:

Beginning of period ........................................... 1,074,057,848 895,076,022
--------------- ---------------

End of period ................................................. $ 1,033,302,029 $ 1,074,057,848
=============== ===============

</TABLE>

See Notes to Financial Statements

-8-

<PAGE> 11

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES

The Travelers Growth and Income Stock Account for Variable Annuities
("Account GIS") is a separate account of The Travelers Insurance Company
("The Travelers"), an indirect wholly owned subsidiary of Citigroup Inc.,
and is available for funding certain variable annuity contracts issued by
The Travelers. Account GIS is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment
company.

The following is a summary of significant accounting policies consistently
followed by Account GIS in the preparation of its financial statements.

SECURITY VALUATION. Investments in securities traded on a national
securities exchange are valued at the 4:00 p.m. Eastern Standard Time price
of the New York Stock Exchange on the last business day of the period;
securities traded on the over-the-counter market and listed securities with
no reported sales are valued at the mean between the last reported bid and
asked prices or on the basis of quotations received from a reputable broker
or other recognized source.

Short-term investments for which a quoted market price is available are
valued at market. Short-term investments for which there is no reliable
quoted market price are valued at amortized cost which approximates market.

SECURITY TRANSACTIONS. Security transactions are accounted for on the trade
date. Dividend income is recorded on the ex-dividend date. Interest income
is recorded on the accrual basis. Premiums and discounts are amortized to
interest income utilizing the constant yield method.

FUTURES CONTRACTS. Account GIS may use stock index futures contracts as a
substitute for the purchase or sale of individual securities. When Account
GIS enters into a futures contract, it agrees to buy or sell a specified
index of stocks at a future time for a fixed price, unless the contract is
closed prior to expiration. Account GIS is obligated to deposit with a
broker an "initial margin" equivalent to a percentage of the face, or
notional value of the contract.

It is Account GIS's practice to hold cash and cash equivalents in an amount
at least equal to the notional value of outstanding purchased futures
contracts, less the initial margin. Cash and cash equivalents include cash
on hand, securities segregated under federal and brokerage regulations, and
short-term highly liquid investments with maturities generally three months
or less when purchased. Generally, futures contracts are closed prior to
expiration.

Futures contracts purchased by Account GIS are priced and settled daily;
accordingly, changes in daily prices are recorded as realized gains or
losses and no asset is recorded in the Statement of Investments. However,
when Account GIS holds open futures contracts, it assumes a market risk
generally equivalent to the underlying market risk of change in the value
of the specified indexes associated with the futures contract.

OPTIONS. Account GIS may purchase index or individual equity put or call
options, thereby obtaining the right to sell or buy a fixed number of
shares of the underlying asset at the stated price on or before the stated
expiration date. Account GIS may sell the options before expiration.
Options held by Account GIS are listed on either national securities
exchanges or on over-the-counter markets and are short-term contracts with
a duration of less than nine months. The market value of the options will
be based on the 4:00 p.m. Eastern Standard Time price of the New York Stock
Exchange, or in the absence of such price, the latest bid quotation.

REPURCHASE AGREEMENTS. When Account GIS enters into a repurchase agreement
(a purchase of securities whereby the seller agrees to repurchase the
securities at a mutually agreed upon date and price), the repurchase price
of the securities will generally equal the amount paid by Account GIS plus
a negotiated interest amount. The seller under the repurchase agreement
will be required to provide to Account GIS securities (collateral) whose
market value, including accrued interest, will be at least equal to 102% of
the repurchase price. Account GIS monitors the value of collateral on a
daily basis. Repurchase agreements will be limited to transactions with
national banks and reporting broker dealers believed to present minimal
credit risks. Account GIS's custodian will take actual or constructive
receipt of all securities underlying repurchase agreements until such
agreements expire.

-9-

<PAGE> 12

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

FEDERAL INCOME TAXES. The operations of Account GIS form a part of the
total operations of The Travelers and are not taxed separately. The
Travelers 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 and capital gains of
Account GIS. Account GIS 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.

2. INVESTMENTS

The aggregate costs of purchases and proceeds from sales of investments
(other than short-term securities), were $260,774,172 and $262,257,379,
respectively; proceeds from sales of direct and indirect U.S. government
securities were $1,220,475, for the six months ended June 30, 2000. There
were no cost of purchases from direct and indirect U.S. government
securities for the six months ended June 30, 2000. Realized gains and
losses from investment security transactions are reported on an identified
cost basis.

Account GIS placed a portion of its security transactions with brokerage
firms which are affiliates of The Travelers. The commissions paid to these
affiliated firms were $58,687 and $58,130 for the six months ended June 30,
2000 and the year ended December 31, 1999, respectively.

At June 30, 2000, Account GIS held 22 open S&P 500 Stock Index futures
contracts expiring in September, 2000. The underlying face value, or
notional value, of these contracts at June 30, 2000 amounted to $8,074,550.
In connection with these contracts, short-term investments with a par value
of $460,000 had been pledged as margin deposits.

Net realized gains (losses) resulting from futures contracts were
($1,107,891) and $3,444,687 for the six months ended June 30, 2000 and the
year ended December 31, 1999, respectively. These losses are included in
the net realized gain from investment security transactions on both the
Statement of Operations and the Statement of Changes in Net Assets. The
cash settlement for June 30, 2000 is shown on the Statement of Assets and
Liabilities as a receivable for variation on futures margin.

3. CONTRACT CHARGES

Investment management and advisory fees are calculated daily at annual
rates which start at 0.65% and decrease, as net assets increase, to 0.40%
of Account GIS's average net assets. These fees are paid to Travelers Asset
Management International Company, LLC ("TAMIC"), an indirect wholly owned
subsidiary of Citigroup Inc. Pursuant to a subadvisory agreement between
TAMIC and The Travelers Investment Management Company ("TIMCO"), an
indirect wholly owned subsidiary of Citigroup Inc., TAMIC pays TIMCO a
subadvisory fee calculated daily at annual rates which start at 0.45% and
decrease, as net assets increase, to 0.20% of Account GIS's average net
assets.

Insurance charges are paid for the mortality and expense risks assumed by
The Travelers. Each business day, The Travelers deducts a mortality and
expense risk charge which is reflected in the calculation of accumulation
and annuity unit values. This charge equals, on an annual basis, 1.0017%
for contracts issued prior to May 16, 1983 and 1.25% on an annual basis for
contracts issued on or after May 16, 1983. Additionally, for certain
contracts in the accumulation phase, a semi-annual charge of $15 (prorated
for partial years) is deducted from participant account balances and paid
to The Travelers to cover administrative charges.

On contracts issued prior to May 16, 1983, The Travelers retained from
Account GIS sales charges of $12,359 and $25,099 for the six months ended
June 30, 2000 and the year ended December 31, 1999, respectively. The
Travelers generally assesses a 5% contingent deferred sales charge if a
participant's purchase payment is surrendered within five years of its
payment date. Contract surrender payments include $298,388 and $296,975 of
contingent deferred sales charges for the six months ended June 30, 2000
and the year ended December 31, 1999, respectively.

-10-

<PAGE> 13

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

4. NET ASSETS HELD ON BEHALF OF AN AFFILIATE

Approximately $21,343,000 and $22,919,000 of the net assets of Account GIS
were held on behalf of an affiliate of The Travelers as of June 30, 2000
and December 31, 1999, respectively. Transactions with this affiliate
during the six months ended June 30, 2000 and the year ended December 31,
1999, were comprised of participant purchase payments of approximately
$91,000 and $761,000 and contract surrenders of approximately $1,401,000
and $2,546,000, respectively.

5. NET CONTRACT OWNERS' EQUITY

<TABLE>
<CAPTION>
JUNE 30, 2000
----------------------------------------------------------

UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
Accumulation phase of contracts issued prior to May 16, 1983 .......... 11,749,160 $ 24.171 $ 283,999,001
Annuity phase of contracts issued prior to May 16, 1983 ............... 296,056 24.171 7,156,197
Accumulation phase of contracts issued on or after May 16, 1983 ....... 31,959,645 23.162 740,265,030
Annuity phase of contracts issued on or after May 16, 1983 ............ 81,244 23.162 1,881,801
--------------

Net Contract Owners' Equity ................................................................................ $1,033,302,029
==============
</TABLE>

-11-

<PAGE> 14

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

6. SUPPLEMENTARY INFORMATION

(Selected data for a unit outstanding throughout each period.)

<TABLE>
<CAPTION>
Contracts issued prior to May 16, 1983 SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
---------------- ---------------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ................................. $ .130 $ .267 $ .243 $ .233 $ .216 $ .208
Operating expenses ...................................... .189 .347 .272 .201 .154 .123
--------- --------- --------- --------- --------- -------

Net investment income (loss) ............................ (.059) (.080) (.029) .032 .062 .085

Unit value at beginning of period ....................... 24.427 20.017 15.510 11.763 9.668 7.120
Net realized and change in unrealized gains (losses) .... (.197) 4.490 4.536 3.715 2.033 2.463
--------- --------- --------- --------- --------- -------

Unit value at end of period ............................. $ 24.171 $ 24.427 $ 20.017 $ 15.510 $ 11.763 $ 9.668
========= ========= ========= ========= ========= =======

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase (decrease) in unit value .................... $ (.26) $ 4.41 $ 4.51 $ 3.75 $ 2.10 $ 2.55
Ratio of operating expenses to average net assets ........ 1.60%* 1.60% 1.56% 1.45% 1.45% 1.45%
Ratio of net investment income (loss) to average
net assets .............................................. (.48)%* (.37)% (.16)% .24% .60% 1.02%
Number of units outstanding at end of period (thousands).. 12,045 12,646 13,894 15,194 16,554 17,896
Portfolio turnover rate .................................. 26% 47% 50% 64% 85% 96%

</TABLE>

Contracts issued on or after May 16, 1983

SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
---------------- -------------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ................................... $ .125 $ .256 $ .234 $ .228 $ .212 $ .205
Operating expenses ........................................ .209 .385 .303 .228 .175 .140
---------- --------- -------- --------- --------- -------

Net investment income (loss)............................... (.084) (.129) (.069) .000 .037 .065

Unit value at beginning of period ......................... 23.436 19.253 14.955 11.371 9.369 6.917
Net realized and change in unrealized gains (losses) ...... (.190) 4.312 4.367 3.584 1.965 2.387
---------- --------- -------- --------- --------- -------

Unit value at end of period ............................... $ 23.162 $ 23.436 $ 19.253 $ 14.955 $ 11.371 $ 9.369
========== ========= ========= ========= ========= =======

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase (decrease) in unit value ..................... $ (.27) $ 4.18 $ 4.30 $ 3.58 $ 2.00 $ 2.45
Ratio of operating expenses to average net assets ......... 1.85% * 1.85% 1.81% 1.70% 1.70% 1.70%
Ratio of net investment income (loss) to average net
assets ................................................... (.73)% * (.62)% (.41)% .00% .36% .79%
Number of units outstanding at end of period (thousands) .. 32,041 32,648 32,051 29,545 27,578 26,688
Portfolio turnover rate ................................... 26% 47% 50% 64% 85% 96%

* Annualized

</TABLE>

-12-

<PAGE> 15

THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000

NO. OF MARKET
SHARES VALUE
------------ ------------

<S> <C> <C>
COMMON STOCKS (98.5%)

AEROSPACE (0.4%)
Boeing Co. 94,330 $ 3,944,173
--------------

AIRLINES (0.2%)
AMR Corp. (A) 9,580 253,271
Delta Airlines, Inc. 28,900 1,461,256
--------------
1,714,527
--------------
AUTOMOTIVE (1.1%)
Ford Motor Co. 102,500 4,407,500
General Motors Corp. 45,800 2,659,263
Harley Davidson, Inc. 54,000 2,079,000
Johnson Controls, Inc. 41,900 2,149,994
Visteon Corp. (A) 13,421 162,725
--------------
11,458,482
--------------
BANKING (3.7%)
Bank of America Corp. 108,124 4,649,332
Bank of New York 80,900 3,761,850
Bank One Corp. 103,264 2,742,950
Capital One Financial Corp. 39,300 1,753,763
Chase Manhattan Corp. 122,406 5,638,326
Fifth Third BanCorp 21,400 1,354,220
Firstar Corp. 91,400 1,925,113
FleetBoston Financial Corp. 115,022 3,910,748
J.P. Morgan & Company, Inc. 12,200 1,343,525
MBNA Corp. 116,000 3,146,500
National City Corp. 64,100 1,093,706
State Street Corp. 23,800 2,524,288
Wells Fargo & Co. 121,130 4,693,787
--------------
38,538,108
--------------
BEVERAGE (2.2%)
Adolph Coors Co. 35,300 2,135,650
Anheuser-Busch Cos. 52,200 3,898,688
Coca-Cola Co. 209,500 12,033,156
PepsiCo, Inc. 108,600 4,825,913
--------------
22,893,407
--------------
BROKERAGE (3.5%)
Bear Stearns Cos., Inc. 57,600 2,397,600
Charles Schwab Corp. 93,350 3,138,894
Lehman Brothers Holdings,
Inc. 51,300 4,851,056
Merrill Lynch & Co. 62,400 7,176,000
MGIC Investment Corp. 55,900 2,543,450
Morgan Stanley Dean Witter &
Co. 143,350 11,933,887
Paine Webber Group, Inc. 47,500 2,161,250
T. Rowe Price & Associates,
Inc. 44,200 1,879,883
--------------
36,082,020
--------------
BUILDING MATERIALS (0.1%)
Masco Corp. 61,500 1,110,844
--------------
CAPITAL GOODS (1.3%)
Applied Materials, Inc. (A) 83,900 7,606,064
Honeywell International,
Inc. 79,912 2,692,036
Nucor Corp. 13,500 448,031
Tellabs, Inc. (A) 32,900 2,252,624
--------------
12,998,755
--------------
CHEMICALS (0.7%)
Dow Chemical Co. 62,400 1,883,700
E.l. Dupont de Nemours & Co. 80,456 3,519,950
Praxair, Inc. 13,000 486,688
Rohm & Haas Co. 36,500 1,259,250
Union Carbide Corp. 10,000 495,000
--------------
7,644,588
--------------
CONGLOMERATES (5.6%)
Emerson Electric Co. 20,900 1,261,838
General Electric Co. 802,900 42,553,700
Minnesota Mining &
Manufacturing Co. 18,900 1,559,250
Tyco International Ltd. 182,000 8,622,250
United Technologies Corp. 70,800 4,168,350
--------------
58,165,388
--------------
CONSTRUCTION MACHINE (0.3%)
Caterpillar, Inc. 19,400 657,175
Ingersoll-Rand Co. 51,000 2,052,750
--------------
2,709,925
--------------
CONSUMER (2.0%)
ACNielsen Corp. (A) 141,000 3,102,000
Ball Corp. 27,100 872,281
Black & Decker Corp. 20,500 805,906
Colgate-Palmolive Co. 72,300 4,328,963
Kimberly Clark Corp. 70,360 4,036,905
Procter & Gamble Co. 135,770 7,772,833
--------------
20,918,888
--------------
DEFENSE (0.3%)
Lockheed Martin Corp. 129,900 3,223,144
--------------

ENTERTAINMENT (2.7%)
Seagram Co. Ltd. 37,700 2,186,600
Time Warner, Inc. 120,300 9,142,800
Viacom, Inc. (A) 129,576 8,835,464
Walt Disney Co. 203,965 7,916,392
--------------
28,081,256
--------------
FINANCE (1.7%)
American Express Co. 145,500 7,584,188
Household International 69,400 2,884,438
Marsh & McLennan Cos. 20,300 2,120,081
Metlife Capital Trust (A) 118,800 2,502,225
Providian Financial Corp. 31,800 2,862,000
--------------
17,952,932
--------------
FOOD (0.8%)
Bestfoods, Inc. 42,900 2,970,825
McDonald's Corp. 58,400 1,923,550
Systemsco Corp. 77,600 3,268,900
--------------
8,163,275
--------------
</TABLE>

-13-

<PAGE> 16
STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED

NO. OF MARKET
SHARES VALUE
------------- ------------
<S> <C> <C>
HEALTHCARE (1.1%)
Abbott Laboratories 78,300 $ 3,489,244
Cardinal Health, Inc. 26,900 1,990,600
Columbia/HCA Healthcare
Corp. 90,400 2,745,900
PE Corp- Celera Genomics
Group 50,100 3,300,338
--------------
11,526,082
--------------
INDEPENDENT ENERGY (0.2%)
Apache Corp 32,000 1,882,000
--------------

INSURANCE (3.1%)
Aetna, Inc. 44,800 2,875,600
Allstate Corp. 107,050 2,381,862
Ambac Financial Group, Inc. 26,900 1,474,456
American General Corp. 18,500 1,128,500
Cigna Corp. 38,600 3,609,100
Cincinnati Financial Corp. 62,800 1,976,241
International Lease Finance
Corp. 120,792 14,193,060
Lincoln National Corp. 61,400 2,218,075
MBIA, Inc. 33,900 1,633,556
--------------
31,490,450
--------------
INTEGRATED ENERGY (4.6%)
Chevron Corp. 53,800 4,562,912
Conoco, Inc. 48,604 1,193,836
Exxon Mobil Corp. 282,298 22,160,393
Kerr Mcgee Corp. 32,100 1,891,894
Occidental Petroleum Corp. 33,200 699,275
Phillips Petroleum Co. 21,100 1,069,506
Royal Dutch Petroleum Co. 167,400 10,305,562
Texaco, Inc. 42,600 2,268,450
USX-Marathon Group 24,900 624,056
Williams Cos. 59,700 2,488,744
--------------
47,264,628
--------------
MEDIA (1.5%)
Clear Channel
Communications, Inc. (A) 23,230 1,742,250
Comcast Corp. 69,600 2,820,978
Gannett Company, Inc. 35,700 2,135,306
Interpublic Group
Companies, Inc. 44,100 1,896,300
New York Times Co. 50,100 1,978,950
Omnicom Group, Inc. 29,500 2,627,344
Tribune Co. 61,300 2,145,500
--------------
15,346,628
--------------
METALS (0.5%)
Alcan Aluminum Ltd. 15,900 492,900
Alcoa, Inc. 73,144 2,121,176
Barrick Gold Corp. 60,300 1,096,706
Phelps Dodge Corp. 21,000 780,938
W.R. Grace & Co. (A) 94,200 1,142,175
--------------
5,633,895
--------------
NATURAL GAS PIPELINE (0.4%)
Enron Corp. 65,000 4,192,500
--------------

OIL FIELD (0.7%)
Baker Hughes Inc. 26,900 860,800
Halliburton Co. 38,200 1,802,563
Schlumberger Ltd. 44,300 3,305,888
Transocean Sedco Forex, Inc. 23,682 1,265,507
--------------
7,234,758
--------------
PAPER (0.5%)
Avery Dennison Corp. 22,500 1,510,312
Georgia-Pacific Group 41,300 1,084,125
International Paper Co. 40,700 1,213,369
Mead Corp. 25,350 640,088
Weyerhaeuser Co. 17,600 756,800
--------------
5,204,694
--------------
PHARMACEUTICALS (9.9%)
Allergan, Inc. 54,000 4,023,000
American Home Products Corp. 106,600 6,262,750
Amgen, Inc. (A) 106,700 7,499,015
Baxter International, Inc. 24,600 1,729,688
Bristol-Myers Squibb Co. 179,900 10,479,175
Eli Lilly & Co. 62,100 6,202,238
Johnson & Johnson 124,100 12,642,688
Merck & Co, Inc. 216,600 16,596,975
Pfizer, Inc. 525,665 25,231,920
Pharmacia & Upjohn, Inc. 100,748 5,207,412
Schering-Plough Corp. 119,800 6,049,900
--------------
101,924,761
--------------
REFINING (0.1%)
Tosco Corp. 22,000 622,875
--------------
RETAILERS (5.2%)
Bed Bath & Beyond, Inc. (A) 41,200 1,492,215
Best Buy Company, Inc. (A) 35,700 2,258,025
Circuit City Stores, Inc. 38,800 1,287,675
CVS Corp. 53,100 2,124,000
Home Depot, Inc. 165,547 8,267,003
Kohl's Corp. (A) 49,400 2,747,875
Limited, Inc. 149,100 3,224,288
Lowe's Cos., Inc. 69,500 2,853,844
Sears, Roebuck & Co. 106,770 3,483,371
Target Corp. 53,300 3,091,400
Walgreen Co. 120,700 3,885,031
Wal-Mart Stores, Inc. 326,200 18,797,275
--------------
53,512,002
--------------
SERVICES (6.5%)
Altera Corp. (A) 40,100 4,086,443
Biogen, Inc. (A) 21,600 1,392,526
Cendant Corp. (A) 212,900 2,980,600
Medtronic, Inc. 84,800 4,224,100
Microsoft (A) 421,200 33,682,859
Oracle Corp. (A) 243,674 20,476,243
--------------
66,842,771
--------------
SUPERMARKETS (0.3%)
Safeway, Inc. (A) 79,530 3,588,791
--------------

</TABLE>

-14-

<PAGE> 17
STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED

NO. OF MARKET
SHARES VALUE
------------ ------------
<S> <C> <C>
TECHNOLOGY (24.6%)
Adobe Systems, Inc. 24,000 $ 3,117,751
Advanced Micro Device (A) 33,200 2,564,700
Agilent Technologies, Inc. (A) 31,465 2,320,543
America Online, Inc. (A) 180,300 9,510,825
Analog Devices, Inc. (A) 53,400 4,058,400
Apple Computers, Inc. (A) 57,800 3,025,471
Automatic Data Processing 36,100 1,933,606
Cisco Systems, Inc. (A) 559,300 35,533,056
Compaq Computer Corp. 138,168 3,531,919
Computer Associates
International 37,200 1,904,175
Comverse Technology, Inc. (A) 27,300 2,539,754
Corning, Inc. 38,400 10,363,200
Dell Computer Corp. (A) 147,820 7,294,000
Eastman Kodak Co. 29,700 1,767,150
EMC Corp. (A) 154,600 11,894,537
First Data Corp. 64,900 3,220,662
Hewlett Packard Co. 89,800 11,213,775
Intel Corp. 276,755 36,990,049
International Business
Machine Corp. 155,200 17,004,100
Level 3 Communications (A) 39,900 2,276,793
LSI Logic (A) 42,100 2,278,662
Lucent Technologies 267,898 15,872,956
Micron Technologies, Inc. (A) 74,400 6,551,850
Motorola, Inc. 172,700 5,019,094
Network Appliance Corp. (A) 38,000 3,057,814
PerkinElmer, Inc. 45,000 2,975,625
QUALCOMM, Inc. (A) 61,000 3,658,097
Siebel Systems, Inc. (A) 23,700 3,877,173
Solectron Corp. (A) 72,600 3,040,125
Sun Microsystem, Inc. (A) 136,400 12,408,144
Teradyne, Inc. (A) 30,800 2,263,800
Texas Instruments, Inc. 137,600 9,451,400
VERITAS Software Corp. (A) 26,500 2,993,673
Xilinx, Inc. (A) 46,200 3,815,833
Yahoo, Inc. (A) 40,490 5,016,966
--------------
254,345,678
--------------

TELECOMMUNICATIONS (10.1%)
ADC TeleCommunications, Inc. (A) 53,100 4,452,106
ALLTEL Corp. 32,900 2,037,744
AT&T Corp. 309,265 9,780,505
AT&T Wireless (A) 51,400 1,432,775
Bell Atlantic Corp. 159,658 8,112,622
BellSouth Corp. 121,200 5,166,150
Broadcom Corp. (A) 18,900 4,137,919
Global Crossing, Ltd. (A) 56,400 1,485,790
GTE Corp. 47,000 2,925,750
MCI Worldcom, Inc. (A) 247,226 11,349,231
Nextel Communications, Inc. (A) 109,800 6,714,962
Nortel Networks Corp. 254,400 17,362,800
SBC Communications, Inc. 302,818 13,096,878
Sprint Corp. - Fon Group 87,912 4,483,512
Sprint Corp. - PCS Group (A) 117,606 6,997,557
US West, Inc. 57,870 4,962,352
--------------
104,498,653
--------------
TOBACCO (0.6%)
Philip Morris Cos. 231,100 6,138,594
--------------

TRANSPORTATION SERVICES (0.2%)
FDX Corp. (A) 42,000 1,596,000
--------------
U.S. AGENCY (0.7%)
Federal Home Loan
Mortgage Corp. 70,000 2,835,000
Federal National Mortgage
Association 88,000 4,592,500
--------------
7,427,500
--------------
UTILITIES (1.1%)
AES Corp. (A) 63,600 2,901,750
FirstEnergy Corp. 101,400 2,370,225
FPL Group, Inc. 35,000 1,732,500
Montana Power Co. 35,100 1,239,469
PECO Energy 63,500 2,559,844
Southern Co. 33,300 776,306
--------------
11,580,094
--------------
TOTAL COMMON STOCK
(COST $740,982,748) 1,017,453,066
--------------

</TABLE>

-15-

<PAGE> 18
STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED

PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------

<S> <C>
SHORT-TERM INVESTMENTS (1.5%)

COMMERCIAL PAPER (1.4%)
Ford Motor Credit Co.,
6.65% due July 7, 2000 $ 6,275,000 $ 6,266,641
Household Finance Corp.,
7.00% due July 3, 2000 983,000 982,623
Transamerica Financial Corp.,
6.68% due July 17, 2000 4,825,000 4,809,869
UBS Finance (DE), Inc.,
7.05% due July 5, 2000 2,700,000 2,697,411
--------------
14,756,544
--------------
U.S. TREASURY (0.1%)
United States of America
Treasury,
5.94% due October 19, 2000 (B) 460,000 452,065
--------------

TOTAL SHORT-TERM
INVESTMENTS (COST $15,211,505) 15,208,609
--------------

</TABLE>

NOTIONAL
VALUE
------------
<S> <C> <C>
FUTURES CONTRACTS (0.0%)

S&P 500 Stock Index,
Exp. September, 2000 (C) $ 8,074,550 -
--------------

TOTAL INVESTMENTS (100%)

(COST $756,194,253) (D) $ 1,032,661,675
===============

</TABLE>

NOTES

(A) Non-income Producing Security.

(B) Par value of $460,000 pledged to cover margin deposits on futures
contracts.

(C) As more fully discussed in Note 1 to the financial statements, it is
Account GIS's practice to hold cash and cash equivalents (including
short-term investments) at least equal to the underlying face value, or
notional value, of outstanding purchased futures contracts, less the
initial margin. Account GIS uses futures contracts as a substitute for
holding individual securities.

(D) At June 30, 2000, net unrealized appreciation for all securities was
$276,467,422. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over cost
of $314,737,857 and aggregate gross unrealized depreciation for all
securities in which there was an excess of cost over market value of
$38,270,435.

See Notes to Financial Statements

-16-

<PAGE> 19

THE TRAVELERS
QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

The Travelers Quality Bond Account for Variable Annuities ("Account QB") had a
gross return of 0.69% for the second quarter; versus 1.69% for the Lehman
Intermediate Government/Corporate Index (The Lehman Government/Corporate Bond
Index is a combination of publicly issued intermediate and long-term U.S.
government bonds and corporate bonds). Account QB underperformed it's benchmark
by 100 basis points. For the six months ended, Account QB has returned 2.48%,
and the benchmark 3.22%, resulting in respective underperformance of 74 basis
points. The fund was hurt by exposure to financial (FINOVA Capital Corp.) and
retail (Saks, Inc.) companies that had some earnings surprises this past
quarter.

Treasury yields in the 1-10 year range fell in the second quarter and the
inversion became slightly less extreme, with two-year yields ending at 6.36%
(down 13 basis points) and thirty-year yields at 5.90% (up 6 basis points). The
10-year treasury yield was essentially flat at 6.02%. A slide in yields that had
begun in January bottomed in early April, as the market became concerned about
the Federal Reserve Board ("Fed") actions, continued corporate and consumer
borrowing demand and earnings stability. The ten-year yield rose from under
5.80% at that point to over 6.50%, where it hovered for most of May until it
appeared that the Fed's latest, 50-point, hike was sufficient in braking on the
economy. The 10-year yield then fell back to just north of 6.00%.

Corporate yields rose more than treasuries due to credit concerns resulting from
higher rates. Thirty-year A-quality spreads widened from 200 to 250 in May
before retracing most of the widening. On signs of a cool economy,
investment-grade spreads tightened uniformly for the first time this year in
June, but remain near historic peaks. Yields on 10-year Baa bonds closed at
around 8.20%.

After three quarters of economic growth over 5%, it appears that the second
quarter will see a number south of 4%. While the second quarter has shown
cyclical weakness in recent years, there are good reasons to believe that the
Fed's tightening stance has caused a true braking of a speeding economy. The
Conference Board's index of leading economic indicators fell in May. Among signs
of slower growth released this past month were decreased auto sales, a lower
consumer confidence figure, concern over bank loan portfolio quality, and
corporate earnings concern not just in high-tech areas but in retail markets
like clothing and electronics. For these reasons, the finance and retail sectors
were especially hit with concentrated concern in the quarter. Yankee and utility
bonds lead the corporate issues this quarter and for the year. Due to some
credit concerns and spread widenings that have been proportional to risk, AAA
quality bonds have outperformed lower-quality counterparts this quarter and
year-to-date.

Issuance in the investment-grade corporate bond market remains significantly
lower than that of 1999, due partly to both pre-Y2K funding and higher borrowing
costs. The combination of a tight monetary policy and high debt ratios among
both corporations and consumers could exacerbate an otherwise small slowdown in
economic activity. We are not overly concerned about a hard landing at this time
and believe that the next two months leading up to the August FOMC meeting will
shed important light on the lagging effects of the six rate hikes made in the
last year.

We believe that the recent snap-back in corporate spreads will continue in the
second half of the year, thereby neutralizing most of the overreaction we've
seen to some sub-sectors of corporate issues.

PORTFOLIO MANAGER: F. DENNEY VOSS

[TAMIC LOGO]

-17-

<PAGE> 20

THE TRAVELERS QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000

<TABLE>
<CAPTION>
<S> <C>
ASSETS:

Investment securities, at market value (cost $128,348,419) ..... $124,520,426
Receivables:
Interest .................................................... 1,994,756
Investment securities sold .................................. 11,593,388
Purchase payments and transfers from other Travelers accounts 25,868
Other assets ................................................... 1,245
------------

Total Assets .............................................. 138,135,683
------------

LIABILITIES:

Cash overdraft ................................................. 43,472
Payables:
Investment securities purchased ............................. 11,445,001
Contract surrenders and transfers to other Travelers accounts 110,545
Investment management and advisory fees ..................... 8,931
Insurance charges ........................................... 32,286
Accrued liabilities ............................................ 218
------------

Total Liabilities ......................................... 11,640,453
------------

NET ASSETS: $126,495,230
============

</TABLE>

See Notes to Financial Statements

-18-

<PAGE> 21

THE TRAVELERS QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2000

INVESTMENT INCOME:
Interest ................................................... $ 4,691,585

EXPENSES:
Investment management and advisory fees .................... $ 209,591
Insurance charges .......................................... 765,110
------------

Total expenses ......................................... 974,701
------------

Net investment income ............................... 3,716,884
------------

REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES:
Realized gain (loss) from investment security transactions:
Proceeds from investment securities sold ................. 69,579,490
Cost of investment securities sold ....................... 70,443,326
------------

Net realized gain (loss) ............................ (863,836)

Change in unrealized loss on investment securities:

Unrealized loss at December 31, 1999 ..................... (3,194,214)
Unrealized loss at June 30, 2000 ......................... (3,827,993)
------------

Net change in unrealized gain (loss) for the period . (633,779)
------------

Net realized gain (loss) and change in unrealized
gain (loss) (1,497,615)
------------

Net increase in net assets resulting from operations ....... $ 2,219,269
============

</TABLE>

See Notes to Financial Statements

-19-

<PAGE> 22

THE TRAVELERS QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
---- ----
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income ........................................ $ 3,716,884 $ 7,682,536
Net realized gain (loss) from investment security transactions (863,836) (3,264,548)
Net change in unrealized gain (loss) on investment securities (633,779) (3,187,953)
------------- -------------

Net increase in net assets resulting from operations ........ 2,219,269 1,230,035
------------- -------------

UNIT TRANSACTIONS:
Participant purchase payments
(applicable to 530,840 and 1,784,107 units, respectively) .. 3,105,501 10,308,965
Participant transfers from other Travelers accounts
(applicable to 974,028 and 2,515,938 units, respectively) .. 5,699,790 14,547,000
Administrative charges
(applicable to 6,709 and 15,591 units, respectively) ....... (39,663) (90,289)
Contract surrenders
(applicable to 1,420,081 and 3,295,199 units, respectively) (8,372,548) (19,155,386)
Participant transfers to other Travelers accounts
(applicable to 2,493,240 and 5,288,415 units, respectively) (14,588,476) (30,584,506)
Other payments to participants
(applicable to 65,534 and 194,998 units, respectively) ..... (394,967) (1,142,207)
------------- -------------

Net decrease in net assets resulting from unit
transactions ............................................. (14,590,363) (26,116,423)
------------- -------------

Net decrease in net assets ................................ (12,371,094) (24,886,388)

NET ASSETS:
Beginning of period ........................................ 138,866,324 163,752,712
------------- -------------

End of period .............................................. $ 126,495,230 $ 138,866,324
============= =============

</TABLE>

See Notes to Financial Statements

-20-

<PAGE> 23

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES

The Travelers Quality Bond Account for Variable Annuities ("Account QB") is
a separate account of The Travelers Insurance Company ("The Travelers"), an
indirect wholly owned subsidiary of Citigroup Inc., and is available for
funding certain variable annuity contracts issued by The Travelers. Account
QB is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company.

The following is a summary of significant accounting policies consistently
followed by Account QB in the preparation of its financial statements.

SECURITY VALUATION. Investments in securities traded on a national
securities exchange are valued at the 4:00 p.m. Eastern Standard Time price
of the New York Stock Exchange on the last business day of the period;
securities traded on the over-the-counter market and listed securities with
no reported sales are valued at the mean between the last-reported bid and
asked prices or on the basis of quotations received from a reputable broker
or other recognized source.

When market quotations are not considered to be readily available for
long-term corporate bonds and notes, such investments are generally stated
at fair value on the basis of valuations furnished by a pricing service.
These valuations are determined for normal institutional-size trading units
of such securities using methods based on market transactions for
comparable securities and various relationships between securities which
are generally recognized by institutional traders. Securities, including
restricted securities, for which pricing services are not readily
available, are valued by management at prices which it deems in good faith
to be fair.

SECURITY TRANSACTIONS. Security transactions are accounted for on the trade
date. Interest income is recorded on the accrual basis. Premiums and
discounts are amortized to interest income utilizing the constant yield
method.

FUTURES CONTRACTS. Account QB may use interest rate futures contracts as a
substitute for the purchase or sale of individual securities. When Account
QB enters into a futures contract, it agrees to buy or sell specified debt
securities at a future time for a fixed price, unless the contract is
closed prior to expiration. Account QB is obligated to deposit with a
broker an "initial margin" equivalent to a percentage of the face, or
notional value of the contract.

It is Account QB's practice to hold cash and cash equivalents in an amount
at least equal to the notional value of outstanding purchased futures
contracts, less the initial margin. Cash and cash equivalents include cash
on hand, securities segregated under federal and brokerage regulations, and
short-term highly liquid investments with maturities generally three months
or less when purchased. Generally, futures contracts are closed prior to
expiration.

Futures contracts purchased by Account QB are priced and settled daily;
accordingly, changes in daily prices are recorded as realized gains or
losses and no asset is recorded in the Statement of Investments. However,
when Account QB holds open futures contracts, it assumes a market risk
generally equivalent to the underlying market risk of change in the value
of the debt securities associated with the futures contract.

REPURCHASE AGREEMENTS. When Account QB enters into a repurchase agreement
(a purchase of securities whereby the seller agrees to repurchase the
securities at a mutually agreed upon date and price), the repurchase price
of the securities will generally equal the amount paid by Account QB plus a
negotiated interest amount. The seller under the repurchase agreement will
be required to provide to Account QB securities (collateral) whose market
value, including accrued interest, will be at least equal to 102% of the
repurchase price. Account QB monitors the value of collateral on a daily
basis. Repurchase agreements will be limited to transactions with national
banks and reporting broker dealers believed to present minimal credit
risks. Account QB's custodian will take actual or constructive receipt of
all securities underlying repurchase agreements until such agreements
expire.

-21-

<PAGE> 24

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)- CONTINUED

FEDERAL INCOME TAXES. The operations of Account QB form a part of the total
operations of The Travelers and are not taxed separately. The Travelers 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 and capital gains of Account QB.
Account QB is not taxed as a "regulated investment company" under
Subchapter M of the Code.

2. INVESTMENTS

The aggregate costs of purchases and proceeds from sales of investments
(other than short-term securities) were $31,941,095 and $37,905,255,
respectively; the costs of purchases and proceeds from sales of direct and
indirect U.S. government securities were $16,932,311 and $35,170,116,
respectively, for the six months ended June 30, 2000. Realized gains and
losses from investment security transactions are reported on an identified
cost basis.

3. CONTRACT CHARGES

Investment management and advisory fees are calculated daily at an annual
rate of 0.3233% of Account QB's average net assets. These fees are paid to
Travelers Asset Management International Company, LLC, an indirect wholly
owned subsidiary of Citigroup Inc.

On contracts issued prior to May 16, 1983, The Travelers retained from
Account QB sales charges of $3,110 and $7,024 for the six months ended June
30, 2000 and the year ended December 31, 1999, respectively. The Travelers
generally assesses a 5% contingent deferred sales charge if a participant's
purchase payment is surrendered within five years of its payment date.
Contract surrender payments include $85,184 of contingent deferred sales
charges for the year ended December 31, 1999. There were no contingent
deferred sales charges for the six months ended June 30, 2000.

-22-

<PAGE> 25

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

4. NET ASSETS HELD ON BEHALF OF AN AFFILIATE

Approximately $301,000 and $310,000 of the net assets of Account QB were
held on behalf of an affiliate of The Travelers as of June 30, 2000 and
December 31, 1999, respectively. Transactions with this affiliate during
the six months ended June 30, 2000 and the year ended December 31, 1999,
were comprised of participant purchase payments of approximately $14,000
and $105,000 and contract surrenders of approximately $28,000 and $249,000,
respectively.

5. NET CONTRACT OWNERS' EQUITY

JUNE 30, 2000
--------------------------------------------------
<S> <C> <C> <C>
UNIT NET
UNITS VALUE ASSETS
----- ------- ------
Accumulation phase of contracts issued prior to May 16, 1983 ................... 5,710,798 $ 6.165 $ 35,212,442
Annuity phase of contracts issued prior to May 16, 1983 ........................ 102,893 6.165 634,435
Accumulation phase of contracts issued on or after May 16, 1983 ................ 15,334,351 5.907 90,602,089
Annuity phase of contracts issued on or after May 16, 1983 ..................... 7,830 5.907 46,264
---------------

Net Contract Owners' Equity .................................................................................. $ 126,495,230
===============

</TABLE>

-23-

<PAGE> 26

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

6. SUPPLEMENTARY INFORMATION

(Selected data for a unit outstanding throughout each period.)

Contracts issued prior to May 16, 1983 SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
-------- ---------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ........................................ $ .218 $ .393 $ .363 $ .353 $ .379 $ .328
Operating expenses ............................................. .040 .080 .076 .071 .067 .063
-------- -------- -------- --------- -------- --------

Net investment income .......................................... .178 .313 .287 .282 .312 .265

Unit value at beginning of period .............................. 6.055 5.994 5.593 5.234 5.050 4.400
Net realized and change in unrealized gains (losses) ........... (.068) (.252) .114 .077 (.128) .385
-------- -------- -------- --------- -------- --------

Unit value at end of period .................................... $ 6.165 $ 6.055 $ 5.994 $ 5.593 $ 5.234 $ 5.050
======== ======== ======== ========= ======== ========

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase in unit value ..................................... $ .11 $ .06 $ .40 $ .36 $ .18 $ .65
Ratio of operating expenses to average net assets .............. 1.33%* 1.33% 1.33% 1.33% 1.33% 1.33%
Ratio of net investment income to average net assets ........... 5.88%* 5.22% 4.96% 5.25% 6.12% 5.54%
Number of units outstanding at end of period (thousands)........ 5,814 6,224 6,880 7,683 8,549 9,325
Portfolio turnover rate ........................................ 406% 340% 438% 196% 176% 138%

</TABLE>

Contracts issued on or after May 16, 1983 SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
----------- -------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----

<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ................................... $ .209 $ .378 $ .350 $ .342 $ .368 $ .319
Operating expenses ........................................ .046 .091 .088 .082 .078 .073
-------- -------- -------- -------- -------- --------

Net investment income ..................................... .163 .287 .262 .260 .290 .246

Unit value at beginning of period ......................... 5.810 5.765 5.393 5.060 4.894 4.274
Net realized and change in unrealized gains (losses) ...... (.066) (.242) .110 .073 (.124) .374
-------- -------- -------- -------- -------- --------

Unit value at end of period ............................... $ 5.907 $ 5.810 $ 5.765 $ 5.393 $ 5.060 $ 4.894
======== ======== ======== ======== ======== ========

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase in unit value ................................ $ .10 $ .04 $ .37 $ .33 $ .17 $ .62
Ratio of operating expenses to average net assets ......... 1.57%* 1.57% 1.57% 1.57% 1.57% 1.57%
Ratio of net investment income to average net assets ...... 5.64%* 4.97% 4.71% 5.00% 5.87% 5.29%
Number of units outstanding at end of period (thousands) .. 15,342 17,412 21,251 21,521 24,804 27,066
Portfolio turnover rate ................................... 406% 340% 438% 196% 176% 138%

* Annualized

</TABLE>

-24-

<PAGE> 27
]

THE TRAVELERS QUALITY BOND ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000

PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
<S> <C> <C>
BONDS (87.4%)

AIRLINES (1.2%)
Delta Airlines, Inc.,
9.25% Sinking Fund, 2007 $ 1,426,795 $ 1,428,442
-------------

BANKING (6.0%)
Bank of America Corp.,
7.80% Debentures, 2010 6,000,000 5,978,220
MBNA American Bank NA,
6.00% Debentures, 2000 1,500,000 1,491,037
--------------
7,469,257
--------------
FINANCE (20.4%)
Comdisco, Inc.,
7.25% Debentures, 2001 6,800,000 6,676,696
FINOVA Capital Corp.,
6.25% Debentures, 2002 7,500,000 6,522,232
Orix Credit Alliance,
6.78% Debentures, 2001 5,900,000 5,849,242
Osprey Holdings, Inc.,
8.31% Debentures, 2003 (A) 6,300,000 6,323,934
--------------
25,372,104
--------------
FOOD (6.1%)
Nabisco, Inc.,
6.70% Debentures, 2002 7,800,000 7,574,206
--------------

GAMING (5.5%)
Park Place Entertainment,
7.95% Debentures, 2003 7,000,000 6,908,125
--------------

HEALTHCARE (3.7%)
Columbia/HCA Healthcare
Corp.,
6.87% Debentures, 2003 5,000,000 4,628,670
--------------

MEDIA (2.4%)
Clear Channel
Communications, Inc.,
7.88% Debentures, 2005 3,000,000 3,017,559
--------------
PAPER (3.6%)
International Paper Co.,
8.13% Debentures, 2005 4,400,000 4,443,318
--------------

REAL ESTATE (9.1%)
CarrAmerica Realty Corp.,
6.63% Debentures, 2000 5,200,000 5,182,918
Nationwide Health
Properties, Inc.,
6.90% Debentures, 2037 7,000,000 6,174,350
--------------
11,357,268
--------------
RETAILERS (10.3%)
Federated Department Stores
Inc.,
8.50% Debentures, 2010 5,700,000 5,814,120
Saks, Inc.,
7.25% Debentures, 2004 4,000,000 3,596,912
Saks, Inc.,
7.50% Debentures, 2010 2,000,000 1,638,150
Target Corp.,
6.80 % Debentures, 2001 1,800,000 1,790,422
--------------
12,839,604
--------------
TELECOMMUNICATIONS (10.7%)
Deutsche Telecommunication,
8.00% Debentures, 2010 6,000,000 6,060,840
Telecom New Zealand
Financial Corp.,
6.25% Debentures, 2003 7,500,000 7,314,525
--------------
13,375,365
--------------

UTILITIES (8.4%)
CMS Energy Corp.,
7.63% Debentures, 2004 1,750,000 1,654,878
CMS Energy Corp.,
6.75% Debentures, 2004 3,000,000 2,779,473
UtiliCorp United, Inc.,
6.88% Debentures, 2004 6,300,000 6,015,297
--------------
10,449,648
--------------
TOTAL BONDS
(COST $112,690,430) 108,863,566
--------------

</TABLE>

-25-

<PAGE> 28

STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED

<PAGE> 29
STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED

PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
<S> <C> <C>

SHORT-TERM INVESTMENTS (12.6%)

COMMERCIAL PAPER (12.6%)
Boeing Capital Corp.,
7.00% Debentures, 2000 $ 5,000,000 $ 4,994,270
Ford Motor Credit Co.,
6.65% Debentures, 2000 4,835,000 4,828,560
Tranamerica Financial Corp.,
6.68% Debentures, 2000 2,435,000 2,427,364
Household Finance Corp.,
7.00% Debentures, 2000 468,000 467,820
Franchise Finance Corp.,
7.00% Debentures, 2000 2,950,000 2,938,846
--------------

TOTAL SHORT-TERM
INVESTMENTS (COST $15,657,989) 15,656,860
--------------

TOTAL INVESTMENTS (100%)
(COST $128,348,419) (B) $ 124,520,426
==============

</TABLE>

NOTES

(A) Restricted Security.

(B) At June 30, 2000, net unrealized depreciation for all securities was
$3,827,993. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over cost of
$292,072 and aggregate gross unrealized depreciation for all securities in
which there was an excess of cost over market value of $4,120,065.

See Notes to Financial Statements

-26-

<PAGE> 30

THE TRAVELERS
MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

During the six months ended the economy showed its first signs of a possible
slowdown in the second quarter, as the June employment report implied the
economy may have lost some of its forward momentum. The unemployment rate
remains at 4.0%, and it is estimated that real Gross Domestic Product growth for
the second quarter will be 3.6%, down from 5.5% in the first quarter. Although
temporary factors may be behind recent economic data pointing to a slowing
economy, evidence for a more fundamental deceleration has gained credibility
recently based on a fading of the wealth effect, temporarily depressing real
incomes, and the tightening of credit availability.

The six months ended with the 30-year Treasury Bond yield at 5.90% and the
federal funds rate at 6.50%. The 30-year Treasury Bond yield was up 7 basis
points from the March 31 level of 5.83% and down 58 basis points from year-end.
The May 16th meeting of the Federal Open Market Committee ("FOMC") resulted in
an increase of the federal funds rate by 50 basis points, while leaving the rate
unchanged in the June 28 meeting. The federal funds rate is up 100 basis points
from the beginning of the year. Currently, the FOMC is maintaining an inflation
bias. If economic strength persists, the Federal Reserve Board once again may
have to tighten interest rates.

The strategy in management of The Travelers Money Market Account for Variable
Annuities short-term assets will be to maintain the current average life for
maturities at 45 days. At June 30, 2000 the asset size of the portfolio was
$155.1 million, with an average yield of 6.64%.

PORTFOLIO MANAGER: EMIL J. MOLINARO JR.

[TAMIC LOGO]

-27-

<PAGE> 31

THE TRAVELERS MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000

<S> <C>
ASSETS:
Investment securities, at market value (cost $155,087,212) .... $155,085,903
Cash .......................................................... 1,517,433
Receivables:
Interest .................................................... 103,951
Investment securities sold .................................. 3,800,000
Purchase payments and transfers from other Travelers accounts 835,172
Other assets .................................................. 1,184
------------

Total Assets ............................................... 161,343,643
------------

LIABILITIES:
Payables:
Investment securities purchased ............................. 5,315,504
Contract surrenders and transfers to other Travelers accounts 2,158,641
Investment management and advisory fees ..................... 10,969
Insurance charges ........................................... 42,399
Accrued liabilities ........................................... 243
------------

Total Liabilities ........................................... 7,527,756
------------

NET ASSETS: $153,815,887
============

</TABLE>

See Notes to Financial Statements

-28-

<PAGE> 32

THE TRAVELERS MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2000

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest .......................................................... $ 4,908,948

EXPENSES:
Investment management and advisory fees ........................... $ 258,136
Insurance charges ................................................. 997,794
------------

Total expenses ............................................... 1,255,930
--------------

Net investment income ........................................ 3,653,018
--------------

Net increase in net assets resulting from operations .............. $ 3,653,018
==============

</TABLE>

See Notes to Financial Statements

-29-

<PAGE> 33

THE TRAVELERS MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
---- ----
(UNAUDITED)

<S> <C> <C>
OPERATIONS:

Net investment income ................................................ $ 3,653,018 $ 4,673,687
------------- -------------

Net increase in net assets resulting from operations ................. 3,653,018 4,673,687
------------- -------------

UNIT TRANSACTIONS:

Participant purchase payments
(applicable to 3,559,457 and 7,727,238 units, respectively) .......... 9,153,007 19,296,081
Participant transfers from other Travelers accounts
(applicable to 79,434,332 and 137,148,554 units, respectively) ....... 203,966,570 342,447,640
Administrative charges
(applicable to 22,401 and 44,123 units, respectively) ................ (58,165) (111,002)
Contract surrenders
(applicable to 8,896,973 and 11,795,197 units, respectively) ......... (22,879,229) (29,442,632)
Participant transfers to other Travelers accounts
(applicable to 85,426,712 and 103,863,953 units, respectively) ....... (219,214,641) (258,947,037)
Other payments to participants
(applicable to 129,982 and 207,463 units, respectively) .............. (335,194) (521,752)
------------- -------------

Net increase (decrease) in net assets resulting from unit transactions (29,367,652) 72,721,298
------------- -------------

Net increase (decrease) in net assets ................................ (25,714,634) 77,394,985

NET ASSETS:

Beginning of period .................................................. 179,530,521 102,135,536
------------- -------------

End of period ........................................................ $ 153,815,887 $ 179,530,521
============= =============

</TABLE>

See Notes to Financial Statements

-30-

<PAGE> 34

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES

The Travelers Money Market Account for Variable Annuities ("Account MM") is
a separate account of The Travelers Insurance Company ("The Travelers"), an
indirect wholly owned subsidiary of Citigroup Inc., and is available for
funding certain variable annuity contracts issued by The Travelers. Account
MM is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company.

The following is a summary of significant accounting policies consistently
followed by Account MM in the preparation of its financial statements.

SECURITY VALUATION. Short-term investments for which a quoted market price
is available are valued at market. Short-term investments for which there
is no reliable quoted market price are valued at amortized cost which
approximates market.

REPURCHASE AGREEMENTS. When Account MM enters into a repurchase agreement
(a purchase of securities whereby the seller agrees to repurchase the
securities at a mutually agreed upon date and price), the repurchase price
of the securities will generally equal the amount paid by Account MM plus a
negotiated interest amount. The seller under the repurchase agreement will
be required to provide to Account MM securities (collateral) whose market
value, including accrued interest, will be at least equal to 102% of the
repurchase price. Account MM monitors the value of collateral on a daily
basis. Repurchase agreements will be limited to transactions with national
banks and reporting broker dealers believed to present minimal credit
risks. Account MM's custodian will take actual or constructive receipt of
all securities underlying repurchase agreements until such agreements
expire.

FEDERAL INCOME TAXES. The operations of Account MM form a part of the total
operations of The Travelers and are not taxed separately. The Travelers 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 and capital gains of Account MM.
Account MM is not taxed as a "regulated investment company" under
Subchapter M of the Code.

2. CONTRACT CHARGES

Investment management and advisory fees are calculated daily at an annual
rate of 0.3233% of Account MM's average net assets. These fees are paid to
Travelers Asset Management International Company, LLC, an indirect wholly
owned subsidiary of Citigroup Inc.

The Travelers assesses a 5% contingent deferred sales charge if a
participant's purchase payment is surrendered within five years of its
payment date. Contract surrender payments include $141,476 and $191,288 of
contingent deferred sales charges for the six months ended June 30, 2000
and the year ended December 31, 1999, respectively.

-31-

<PAGE> 35

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

3. NET ASSETS HELD ON BEHALF OF AN AFFILIATE

Approximately $3,381,000 and $3,431,000 of the net assets of Account MM
were held on behalf of an affiliate of The Travelers as of June 30, 2000
and December 31, 1999, respectively. Transactions with this affiliate
during the six months ended June 30, 2000 and the year ended December 31,
1999, were comprised of participant purchase payments of approximately
$448,000 and $2,249,000 and contract surrenders of approximately $575,000
and $2,377,000, respectively.

4. NET CONTRACT OWNERS' EQUITY

JUNE 30, 2000
---------------------------------------------

UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
Accumulation phase of contracts issued prior to May 16, 1983 .............. 24,316 $ 2.713 $ 65,988
Annuity phase of contracts issued prior to May 16, 1983 ................... 50,660 2.713 137,481
Accumulation phase of contracts issued on or after May 16, 1983 ........... 58,961,509 2.600 153,334,449
Annuity phase of contracts issued on or after May 16, 1983 ................ 106,887 2.600 277,969
--------------

Net Contract Owners' Equity ......................................................................... $ 153,815,887
==============

</TABLE>

-32-
<PAGE> 36

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

5. SUPPLEMENTARY INFORMATION

(Selected data for a unit outstanding throughout each period.)

Contracts issued prior to May 16, 1983 SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
---------- ---------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ................................... $ .082 $ .135 $ .138 $ .134 $ .125 $ .130
Operating expenses ........................................ .018 .034 .033 .032 .030 .030
-------- -------- -------- -------- -------- --------

Net investment income .................................... .064 .101 .105 .102 .095 .100

Unit value at beginning of period ......................... 2.649 2.548 2.443 2.341 2.246 2.146
-------- -------- -------- -------- -------- --------

Unit value at end of period ............................... $ 2.713 $ 2.649 $ 2.548 $ 2.443 $ 2.341 $ 2.246
======== ======== ======== ======== ======== ========

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase in unit value ................................. $ .06 $ .10 $ .11 $ .10 $ .10 $ .10
Ratio of operating expenses to average net assets .......... 1.33%* 1.33% 1.33% 1.33% 1.33% 1.33%
Ratio of net investment income to average net assets ....... 4.86%* 3.87% 4.20% 4.27% 4.10% 4.61%
Number of units outstanding at end of period (thousands) ... 75 80 91 105 112 206

</TABLE>

Contracts issued on or after May 16, 1983 SIX
MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, (DERIVED FROM AUDITED FINANCIAL INFORMATION)
------------ ----------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----

<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Total investment income ................................... $ .079 $ .130 $ .133 $ .128 $ .121 $ .127
Operating expenses ........................................ .020 .039 .038 .036 .035 .034
-------- -------- -------- -------- -------- --------

Net investment income ..................................... .059 .091 .095 .092 .086 .093

Unit value at beginning of period ......................... 2.541 2.450 2.355 2.263 2.177 2.084
-------- --------- -------- -------- -------- --------

Unit value at end of period ............................... $ 2.600 $ 2.541 $ 2.450 $ 2.355 $ 2.263 $ 2.177
======== ======== ======== ======== ======== ========

SIGNIFICANT RATIOS AND ADDITIONAL DATA:
Net increase in unit value ................................ $ .06 $ .09 $ .10 $ .09 $ .09 $ .09
Ratio of operating expenses to average net assets ......... 1.57%* 1.57% 1.57% 1.57% 1.57% 1.57%
Ratio of net investment income to average net assets ...... 4.61%* 3.62% 3.95% 4.02% 3.84% 4.36%
Number of units outstanding at end of period (thousands) .. 59,068 70,545 41,570 36,134 38,044 35,721

* Annualized

</TABLE>

-33-

<PAGE> 37
THE TRAVELERS MONEY MARKET ACCOUNT
FOR VARIABLE ANNUITIES

STATEMENT OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (100%)

COMMERCIAL PAPER (100%)
Albertsons, Inc.,
6.76% due July 14, 2000 $ 5,000,000 $ 4,999,927
Alcoa Inc.,
6.71% due July 27, 2000 7,500,000 7,462,905
American Express Credit
Corp.,
6.68% due July 6, 2000 7,500,000 7,491,405
American Honda Financial,
6.82% due June 25, 2001 7,500,000 7,500,000
Asset Securitization Corp.,
6.67% due July 20, 2000 4,850,000 4,832,142
Associates Corp. of North,
America,
6.77% due June 15, 2004 (A) 5,000,000 5,025,882
AT&T Corp.,
6.28% due July 13, 2000 5,000,000 4,999,240
Bank One Corp.,
6.90% due March 23, 2001 5,000,000 5,002,095
Becton Dickinson & Co.,
6.70% due August 1, 2000 7,500,000 7,456,133
Bell Atlantic Financial
Services, Inc.,
6.74% due August 30, 2000 7,500,000 7,416,375
Boeing Capital Corp.,
7.00% due July 6, 2000 2,500,000 2,497,135
Ford Motor Credit Co.,
6.67 % due July 7, 2000 7,500,000 7,490,010
GE Capital Corp.,
6.70% due July 27, 2000 7,330,000 7,293,746
General Dynamics Corp.,
6.72% due July 11, 2000 5,000,000 4,989,685
General Motors Acceptance,
6.74% due July 12, 2000 7,750,000 7,732,624
Goldman Sachs Group LP,
6.72% due July 10, 2000 7,200,000 7,186,450
Household Finance Corp.,
7.00% due July 3, 2000 2,820,000 2,818,919
Knight-Ridder Inc.,
6.65% due July 18, 2000 5,872,000 5,852,517
New Castle 2000-A,
6.80% due July 7, 2000 7,500,000 7,490,010
Newell Rubbermaid Inc.,
6.63% due July 6, 2000 3,225,000 3,221,304
Preferred Resources Funding Corp.,
6.70% due July 20, 2000 7,500,000 7,472,385
Providian Master Trust,
6.70% due July 17, 2000 7,500,000 7,476,480
Swiss Reinsurance Co.,
6.80 due September 15, 2000 7,500,000 7,394,362
Transamerica Financial Corp.,
6.66% due July 18, 2000 6,135,000 6,114,644
Tribune Co.,
6.72% due August 18, 2000 3,000,000 2,974,227
UBS Finance (DE) Inc.,
6.86% due July 5, 2000 4,900,000 4,895,301
--------------

TOTAL INVESTMENTS (100%)
(COST $155,087,212) $ 155,085,903
==============
</TABLE>

NOTES

(A) Security is putable annually on June 15.

See Notes to Financial Statements

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<PAGE> 40

Investment Adviser

TRAVELERS ASSET MANAGEMENT INTERNATIONAL COMPANY, LLC
Hartford, Connecticut
THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES
THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES
THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES

Investment Sub-Adviser

THE TRAVELERS INVESTMENT MANAGEMENT COMPANY
Hartford, Connecticut
THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES

Independent Accountants

KPMG LLP
Hartford, Connecticut

Custodian

THE CHASE MANHATTAN BANK, N.A.
New York, New York

The financial information included herein has been taken from the records of The
Travelers Growth and Income Stock Account for Variable Annuities, The Travelers
Quality Bond Account for Variable Annuities, and The Travelers Money Market
Account for Variable Annuities. This financial information has not been audited
by the Accounts' independent accountants, who therefore express no opinion
concerning its accuracy. However, it is management's opinion that all proper
adjustments have been made.

This report is prepared for the general information of contract owners and is
not an offer of units of The Travelers Growth and Income Stock Account for
Variable Annuities, The Travelers Quality Bond Account for Variable Annuities or
The Travelers Money Market Account for Variable Annuities. It should not be used
in connection with any offer except in conjunction with the Universal Annuity
Prospectus which contains all pertinent information, including the applicable
sales commissions.

VG-137 (Semi-Annual) (6-00) Printed in U.S.A.