485BPOS 1 extrafinaldoc.txt PROVIDER EXTRA SHELF As filed with the Securities and Exchange Commission on April 11, 2003 File No. 333-65826 811-07541 -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [x] Post-Effective Amendment No. 3 and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [x] Amendment No. 32 (Check appropriate box or boxes) GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT (Exact Name of Registrant) GLENBROOK LIFE AND ANNUITY COMPANY (Name of Depositor) 3100 SANDERS ROAD NORTHBROOK, ILLINOIS 60062 847-402-2400 (Address and Telephone number of Depositor's Principal Offices) MICHAEL J. VELOTTA VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL GLENBROOK LIFE AND ANNUITY COMPANY 3100 SANDERS ROAD NORTHBROOK, ILLINOIS 60062 847-402-2400 (Name, Complete Address and Telephone Number of Agent For Service) Copies of all communications to: Richard T. Choi, Esquire Joseph P. Rath, Esquire Foley & Lardner ALFS, Inc. 3000 K Street N.W., Suite 500 3100 Sanders Road, Suite J5B Washington, D.C. 20007-5109 Northbrook, IL 60062 Approximate date of proposed public offering: Continuous IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX) / / immediately upon filing pursuant to paragraph (b) of Rule 485 /X/ on May 1, 2003 pursuant to paragraph (b) of Rule 485 / / 60 days after filing pursuant to paragraph (a) (1) of Rule 485 / / on (date) pursuant to paragraph (a) (i) of Rule 485 IF APPROPRIATE, CHECK THE FOLLOWING BOX / / This Post-effective amendment designates a new effective date for previously filed post-effective amendment. Title of Securities Being Registered: Units of interest in the Glenbrook Life Multi-Manager Variable Account under deferred variable annuity contracts. Explanatory Note This Registration Statement relates to the Allstate Provider Extra Variable Annuity Contracts. The prospectus contained in this Registration Statement also described the Allstate Provider Advantage and the Allstate Provider Ultra Variable Annuity Contracts, which are covered by separate registration statements under the Securities Act of 1933 (File Nos. 333-62922 and 333-55306 respectively). THE ALLSTATE(R) PROVIDER VARIABLE ANNUITY SERIES GLENBROOK LIFE AND ANNUITY COMPANY 300 N. MILWAUKEE AVE. VERNON HILLS, IL 60061 TELEPHONE NUMBER: 1-800-755-5275 PROSPECTUS DATED MAY 1, 2003 ------------------------------------------------------------------------------- Glenbrook Life and Annuity Company ("GLENBROOK", "GLENBROOK LIFE", "WE", OR "US") is offering the following group and individual flexible premium deferred variable annuity contracts (each, a "Contract"): . The Allstate(R) Provider Advantage Variable Annuity (Formerly referred to as "The Glenbrook Provider Advantage Variable Annuity") . The Allstate(R) Provider Ultra Variable Annuity (Formerly referred to as "The Glenbrook Provider Ultra Variable Annuity") . The Allstate(R) Provider Extra Variable Annuity (Formerly referred to as "The Glenbrook Provider Extra Variable Annuity") Glenbrook is a wholly owned subsidiary of the Allstate Life Insurance Company. This prospectus contains information about each Contract that you should know before investing. Please keep it for future reference. Not all Contracts may be available in all states or through your sales representative. Please check with your sales representative for details. Each Contract currently offers 51 investment alternatives ("INVESTMENT ALTERNATIVES"). The investment alternatives include 3 fixed account options ("FIXED ACCOUNT OPTIONS") and 48 variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Glenbrook Life Multi-Manager Variable Account ("VARIABLE ACCOUNT"). Each Variable Sub-Account invests exclusively in shares of the portfolios ("PORTFOLIOS") of the following underlying funds ("FUNDS"):
AIM VARIABLE INSURANCE FUNDS (SERIES I) GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT) THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. LSA VARIABLE SERIES TRUST DREYFUS STOCK INDEX FUND, INC. MFS(TM) VARIABLE INSURANCE TRUST/SM /(SERVICE CLASS) DREYFUS VARIABLE INVESTMENT FUND (VIF) OPPENHEIMER VARIABLE ACCOUNT FUNDS FIDELITY(R) VARIABLE INSURANCE PRODUCTS (SERVICE CLASS 2) PUTNAM VARIABLE TRUST (CLASS IB) FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (CLASS 2) (CLASS I)
For the ALLSTATE PROVIDER EXTRA CONTRACTS, each time you make a purchase payment, we will add to your Contract value ("Contract Value") a credit enhancement ("Credit Enhancement") equal to 4% of that purchase payment. Expenses for this Contract may be higher than expenses for an annuity contract without the Credit Enhancement. Over time, the amount of the Credit Enhancement may be more than offset by the higher expenses. You and your agent should decide if this Contract is right for you.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS, NOR HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS PROSPECTUS. ANYONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. IMPORTANT THE CONTRACTS MAY BE DISTRIBUTED THROUGH BROKER-DEALERS THAT NOTICES HAVE RELATIONSHIPS WITH BANKS OR OTHER FINANCIAL INSTITUTIONS OR BY EMPLOYEES OF SUCH BANKS. HOWEVER, THE CONTRACTS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED BY SUCH INSTITUTIONS OR ANY FEDERAL REGULATORY AGENCY. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. THE CONTRACTS ARE NOT FDIC INSURED.
Glenbrook has filed a Statement of Additional Information, dated May 1, 2003, with the Securities and Exchange Commission ("SEC"). It contains more information about the Contract and is incorporated herein by reference, which means it is legally a part of this prospectus. Its table of contents appears on page 115 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You 1 PROSPECTUS can find other information and documents about us, including documents that are legally part of this prospectus, at the SEC's Web site. Each Fund has multiple Portfolios. Not all of the Funds and/or Portfolios, however, may be available with your Contract. You should check with your representative for further information on the availability of Funds and/or Portfolios. Your annuity application will list all available Portfolios. 2 PROSPECTUS TABLE OF CONTENTS -------------------------------------------------------------------------------- PAGE -------------------------------------------------------------------------------- OVERVIEW -------------------------------------------------------------------------------- Important Terms 4 -------------------------------------------------------------------------------- Overview of Contracts 5 -------------------------------------------------------------------------------- The Contract At A Glance 6 -------------------------------------------------------------------------------- How the Contract Works 9 -------------------------------------------------------------------------------- Expense Table 10 -------------------------------------------------------------------------------- Financial Information 14 -------------------------------------------------------------------------------- CONTRACT FEATURES -------------------------------------------------------------------------------- The Contract 14 -------------------------------------------------------------------------------- Purchases 16 -------------------------------------------------------------------------------- Contract Value 17 -------------------------------------------------------------------------------- INVESTMENT ALTERNATIVES -------------------------------------------------------------------------------- The Variable Sub-Accounts 18 -------------------------------------------------------------------------------- The Fixed Account Options 21 -------------------------------------------------------------------------------- Transfers 24 -------------------------------------------------------------------------------- Expenses 27 -------------------------------------------------------------------------------- Access To Your Money 30 -------------------------------------------------------------------------------- Income Payments 31 -------------------------------------------------------------------------------- Death Benefits 33 -------------------------------------------------------------------------------- PAGE -------------------------------------------------------------------------------- OTHER INFORMATION -------------------------------------------------------------------------------- More Information 38 -------------------------------------------------------------------------------- Glenbrook 38 -------------------------------------------------------------------------------- The Variable Account 39 -------------------------------------------------------------------------------- The Portfolios 39 -------------------------------------------------------------------------------- The Contract 40 -------------------------------------------------------------------------------- Qualified Plans 40 -------------------------------------------------------------------------------- Legal Matters 40 -------------------------------------------------------------------------------- Taxes 41 -------------------------------------------------------------------------------- Taxation of Annuities in General 41 -------------------------------------------------------------------------------- Income Tax Withholding 43 -------------------------------------------------------------------------------- Tax Qualified Contracts 43 -------------------------------------------------------------------------------- Annual Reports and Other Documents 47 -------------------------------------------------------------------------------- Performance Information 47 -------------------------------------------------------------------------------- APPENDIX A - ACCUMULATION UNIT VALUES 48 -------------------------------------------------------------------------------- APPENDIX B - MARKET VALUE ADJUSTMENT EXAMPLES 109 -------------------------------------------------------------------------------- APPENDIX C - CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT AMOUNT 113 -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS 115 -------------------------------------------------------------------------------- 3 PROSPECTUS IMPORTANT TERMS -------------------------------------------------------------------------------- This prospectus uses a number of important terms that you may not be familiar with. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlights. PAGE -------------------------------------------------------------------------------- ACCUMULATION PHASE 9 -------------------------------------------------------------------------------- ACCUMULATION UNIT 14 -------------------------------------------------------------------------------- ACCUMULATION UNIT VALUE 14 -------------------------------------------------------------------------------- ANNIVERSARY VALUES 34 -------------------------------------------------------------------------------- ANNUITANT 14 -------------------------------------------------------------------------------- AUTOMATIC ADDITIONS PLAN 16 -------------------------------------------------------------------------------- AUTOMATIC PORTFOLIO REBALANCING PROGRAM 25 -------------------------------------------------------------------------------- BENEFICIARY 15 -------------------------------------------------------------------------------- CANCELLATION PERIOD 6 -------------------------------------------------------------------------------- CONTINGENT BENEFICIARY 15 -------------------------------------------------------------------------------- CONTRACT* 14 -------------------------------------------------------------------------------- CONTRACT ANNIVERSARY 7 -------------------------------------------------------------------------------- CONTRACT OWNER ("YOU") 14 -------------------------------------------------------------------------------- CONTRACT VALUE 17 -------------------------------------------------------------------------------- CONTRACT YEAR 8 -------------------------------------------------------------------------------- CREDIT ENHANCEMENT 16 -------------------------------------------------------------------------------- DEATH BENEFIT ANNIVERSARY 34 -------------------------------------------------------------------------------- DEATH BENEFIT EARNINGS 35 -------------------------------------------------------------------------------- DOLLAR COST AVERAGING PROGRAM 25 -------------------------------------------------------------------------------- DUE PROOF OF DEATH 33 -------------------------------------------------------------------------------- ENHANCED EARNINGS DEATH BENEFIT RIDER 35 -------------------------------------------------------------------------------- ENHANCED DEATH BENEFIT RIDER 34 -------------------------------------------------------------------------------- EXCESS-OF-EARNINGS WITHDRAWAL 36 -------------------------------------------------------------------------------- FIXED ACCOUNT OPTIONS 21 -------------------------------------------------------------------------------- FREE WITHDRAWAL AMOUNT 28 -------------------------------------------------------------------------------- FUNDS 1 -------------------------------------------------------------------------------- PAGE -------------------------------------------------------------------------------- GLENBROOK ("WE" OR "US") 1 -------------------------------------------------------------------------------- GUARANTEE PERIODS 22 -------------------------------------------------------------------------------- GUARANTEED INCOME BENEFIT 33 -------------------------------------------------------------------------------- GUARANTEED MATURITY FIXED ACCOUNT 22 -------------------------------------------------------------------------------- INCOME BASE 33 -------------------------------------------------------------------------------- INCOME BENEFIT RIDER 32 -------------------------------------------------------------------------------- INCOME PLAN 31 -------------------------------------------------------------------------------- IN-FORCE EARNINGS 36 -------------------------------------------------------------------------------- IN-FORCE PREMIUM 36 -------------------------------------------------------------------------------- INVESTMENT ALTERNATIVES 18 -------------------------------------------------------------------------------- ISSUE DATE 9 -------------------------------------------------------------------------------- MARKET VALUE ADJUSTMENT 24 -------------------------------------------------------------------------------- PAYOUT PHASE 9 -------------------------------------------------------------------------------- PAYOUT START DATE 31 -------------------------------------------------------------------------------- PORTFOLIOS 39 -------------------------------------------------------------------------------- PRIMARY BENEFICIARY 15 -------------------------------------------------------------------------------- QUALIFIED CONTRACTS 6 -------------------------------------------------------------------------------- RIDER APPLICATION DATE 7 -------------------------------------------------------------------------------- RIDER DATE 32 -------------------------------------------------------------------------------- SEC 1 -------------------------------------------------------------------------------- SETTLEMENT VALUE 33 -------------------------------------------------------------------------------- SYSTEMATIC WITHDRAWAL PROGRAM 30 -------------------------------------------------------------------------------- VALUATION DATE 16 -------------------------------------------------------------------------------- VARIABLE ACCOUNT 39 -------------------------------------------------------------------------------- VARIABLE SUB-ACCOUNT 1 -------------------------------------------------------------------------------- *In certain states the Contract is available only as a group Contract. If you purchase a group Contract, we will issue you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates, unless the context requires otherwise. References to "Contract" also include all three Contracts listed on the cover page of this prospectus, unless otherwise noted. However, we administer each Contract separately. 4 PROSPECTUS OVERVIEW OF CONTRACTS -------------------------------------------------------------------------------- The Contracts offer many of the same basic features and benefits. They differ primarily with respect to the charges imposed, as follows: . The ALLSTATE PROVIDER ADVANTAGE CONTRACT has a mortality and expense risk charge of 1.45%, and no withdrawal charge. . The ALLSTATE PROVIDER ULTRA CONTRACT has a mortality and expense risk charge of 1.25%, and a withdrawal charge of up to 7% with a 7 year withdrawal charge period (and an annual Free Withdrawal Amount). . The ALLSTATE PROVIDER EXTRA CONTRACT offers a 4% Credit Enhancement on purchase payments, and has a mortality and expense risk charge of 1.40% and a withdrawal charge of up to 8% with an 8 year withdrawal charge period (and an annual Free Withdrawal Amount). Other differences among the Contracts relate to the transfer fees and the maximum age of the Contract owners and Annuitants on the application date, the effect of changing Annuitants under the Income Benefit Rider, the spousal continuation provisions of the Enhanced Death Benefit and Enhanced Earnings Death Benefit Riders, and the calculation of the Enhanced Earnings Death Benefit. 5 PROSPECTUS THE CONTRACT AT A GLANCE -------------------------------------------------------------------------------- The following is a snapshot of the Contract. Please read the remainder of this prospectus for more information.
FLEXIBLE PAYMENTS You can purchase a Contract with as little as $5,000 ($2,000 for "QUALIFIED CONTRACTS", which are Contracts issued within QUALIFIED PLANS). You can add to your Contract as often and as much as you like, but each payment must be at least $50. For ALLSTATE PROVIDER EXTRA CONTRACTS each time you --------------------------------- make a purchase payment, we will add to your Contract Value a Credit Enhancement equal to 4% of that purchase payment --------------------------------------------------------------------------------------- RIGHT TO CANCEL You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("CANCELLATION PERIOD"). Upon cancellation, we will return your purchase payments adjusted, to the extent federal or state law permits, to reflect the investment experience of any amounts allocated to the Variable Account, including the deduction of mortality and expense risk charges and administrative expense charges. Allstate Provider Extra Contracts --------------------------------- If you exercise your Right to Cancel the Contract, the amount we refund to you will not include any Credit Enhancement. See "Right to Cancel" for details. --------------------------------------------------------------------------------------- EXPENSES You will bear the following expenses: Allstate Provider Advantage Contracts ------------------------------------- .Total Variable Account annual fees equal to 1.55% of average daily net assets (1.80% if you select the ENHANCED DEATH BENEFIT RIDER or the INCOME BENEFIT RIDER; and 2.05% if you select both the Enhanced Death Benefit and the Income Benefit Riders). . no withdrawal charges .transfer fee of $10 after the 12th transfer in any Contract Year (fee currently waived). Allstate Provider Ultra Contracts --------------------------------- .Total Variable Account annual fees equal to 1.35% of average daily net assets (1.60% if you select the Enhanced Death Benefits Rider or the Income Benefit Rider; and 1.85% if you select both the Enhanced Death Benefit and the Income Benefit Riders). .Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn (with certain exceptions). .transfer fee of $10 after the 12th transfer in any Contract Year (fee currently waived). -------------------------------------------------------------------------------------- 6 PROSPECTUS --------------------------------------------------------------------------------------- Allstate Provider Extra Contracts --------------------------------- .Total Variable Account annual fees equal to 1.50% of average daily net assets (1.75% if you select the Enhanced Death Benefit Rider or the Income Benefit Rider; and 2.00% if you select both the Enhanced Death Benefit and the Income Benefit Riders). .Withdrawal charges ranging from 0% to 8% of purchase payments withdrawn (with certain exceptions). . Transfer fee of up to 0.50% of the amount transferred after the 12th transfer in any Contract Year (subject to a minimum charge of $10.00 per transfer). This fee is currently waived. All Contracts ------------- . If you select the ENHANCED EARNINGS DEATH BENEFIT RIDER, you would pay an additional annual fee of up to 0.35% (depending on the oldest Contract owner's age as of the date we receive the completed application or a written request to add the Rider, whichever is later) ("RIDER APPLICATION DATE") of the CONTRACT VALUE on each Contract anniversary ("CONTRACT ANNIVERSARY"). For more information about Variable Account expenses, see "EXPENSES" below. .Annual contract maintenance charge of $35 (with certain exceptions) . State premium tax (if your state imposes one). In addition, each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. --------------------------------------------------------------------------------------- INVESTMENT ALTERNATIVES The Contract offers 51 investment alternatives including: .3 Fixed Account Options (which credit interest at rates we guarantee) .48 Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: . A I M Advisors, Inc. . The Dreyfus Corporation . Fidelity Management & Research Company . Franklin Advisers, Inc. . Franklin Mutual Advisers, LLC . Goldman Sachs Asset Management . LSA Asset Management, LLC . MFS Investment Management/(R)/ . OppenheimerFunds, Inc. . Putnam Investment Management, Inc. . Templeton Asset Management Ltd. . Templeton Investment Counsel, LLC . Van Kampen * To find out current rates being paid on the Fixed Account Options or how the Variable Sub-Accounts have performed, call us at 1-800-755-5275. *Morgan Stanley Investment Management Inc., the investment adviser to the Van Kampen UIF Portfolios, does business in certain instances as Van Kampen. -------------------------------------------------------------------------------------- 7 PROSPECTUS --------------------------------------------------------------------------------------- SPECIAL SERVICES For your convenience, we offer these special services: . AUTOMATIC PORTFOLIO REBALANCING PROGRAM . AUTOMATIC ADDITIONS PROGRAM . DOLLAR COST AVERAGING PROGRAM . SYSTEMATIC WITHDRAWAL PROGRAM --------------------------------------------------------------------------------------- INCOME PAYMENTS You can choose fixed income payments, variable income payments, or a combination of the two. You can receive your income payments in one of the following ways: . life income with guaranteed payments .a "joint and survivor" life income with guaranteed payments .guaranteed payments for a specified period (5 to 30 years) We also offer an Income Benefit Rider. --------------------------------------------------------------------------------------- DEATH BENEFIT If you or the ANNUITANT (if the Contract is owned by a non-natural person) die before the PAYOUT START DATE, we will pay the death benefit described in the Contract. We also offer an Enhanced Death Benefit Rider and an Enhanced Earnings Death Benefit Rider. --------------------------------------------------------------------------------------- TRANSFERS Before the Payout Start Date, you may transfer your Contract Value among the investment alternatives, with certain restrictions. We do not currently impose a fee upon transfers. However, we reserve the right to charge $10 per transfer (up to 0.50% of the amount transferred per transaction for ALLSTATE PROVIDER EXTRA CONTRACTS) after the 12th transfer in each "CONTRACT YEAR", which we measure from the date we issue your Contract or a Contract Anniversary. --------------------------------------------------------------------------------------- WITHDRAWALS You may withdraw some or all of your Contract Value at any time prior to the Payout Start Date. In general, you must withdraw at least $50 at a time. Full or partial withdrawals are available under limited circumstances on or after the Payout Start Date. Withdrawals taken prior to annuitization (referred to in this prospectus as the Payout Phase) are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. A withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only) and a MARKET VALUE ADJUSTMENT also may apply. -------------------------------------------------------------------------------------- 8 PROSPECTUS ---------------------------------------------------------------------------------------
HOW THE CONTRACT WORKS -------------------------------------------------------------------------------- The Contract basically works in two ways. First, the Contract can help you (we assume you are the CONTRACT OWNER) save for retirement because you can invest in up to 51 investment alternatives and generally pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "ACCUMULATION PHASE" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "ISSUE DATE") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or Fixed Account Options. If you invest in any of the three Fixed Account Options, you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts, your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, the Contract can help you plan for retirement because you can use it to receive retirement income for life and/ or for a pre-set number of years, by selecting one of the income payment options (we call these "INCOME PLANS") described on page 31. You receive income payments during what we call the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract.
Issue Payout Start Date Accumulation Phase Date Payout Phase ------------------------------------------------------------------------------------------------------------> You buy You save for retirement You elect to receive You can receive Or you can receive a Contract income payments or income payments income payments receive a lump sum for a set period for life payment
As the Contract Owner, you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract Owner or, if none, the BENEFICIARY will exercise the rights and privileges provided by the Contract. See "The Contract." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract Owner, or if there is none, to your Beneficiary. See "Death Benefits." Please call us at 1-800-755-5275 if you have any questions about how the Contract works. 9 PROSPECTUS EXPENSE TABLE -------------------------------------------------------------------------------- The table below lists the expenses that you will bear directly or indirectly when you buy a Contract. The table and the examples that follow do not reflect premium taxes that may be imposed by the state where you reside. For more information about Variable Account expenses, see "Expenses," on page 27. For more information about Portfolio expenses, please refer to the accompanying prospectuses for the Funds. CONTRACT OWNER TRANSACTION EXPENSES WITHDRAWAL CHARGE (AS A PERCENTAGE OF PURCHASE PAYMENTS)
ALLSTATE PROVIDER ADVANTAGE CONTRACTS None ---------------------------------------------------------------------------------------- ALLSTATE PROVIDER ULTRA CONTRACTS ---------------------------------------------------------------------------------------- Number of complete years since we received the purchase payment being 0 1 2 3 4 5 6 7+ withdrawn* ---------------------------------------------------------------------------------------- Applicable charge 7% 6% 6% 5% 5% 4% 3% 0% ----------------------------------------------------------------------------------------
ALLSTATE PROVIDER EXTRA CONTRACTS ------------------------------------------------------------------------------- Number of complete years since we received the purchase 0 1 2 3 4 5 6 7 8+ payment being withdrawn* ------------------------------------------------------------------------------- Applicable charge 8% 8% 8% 7% 6% 5% 4% 3% 0% -------------------------------------------------------------------------------
Beginning on January 1, 2004, if you make a withdrawal before the Payout Start Date, we will apply the withdrawal charge percentage in effect on the date of the withdrawal, or the withdrawal charge percentage in effect on the following day, whichever is lower.
ANNUAL CONTRACT MAINTENANCE CHARGE $35.00** -------------------------------------------------------------------------------
TRANSFER FEE Allstate Provider Advantage and Allstate $10.00*** Provider Ultra Contracts up to .50% of the amount transferred, Allstate Provider Extra Contracts subject to a minimum fee of $10.00 per transfer*** -------------------------------------------------------------------------------
* Each Contract Year, you may withdraw up to 15% of your aggregate purchase payments without incurring a withdrawal charge. **We will waive this charge in certain cases. See "Expenses." ***Applies solely to the thirteenth and subsequent transfers within a Contract Year, excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently waiving the transfer fee. VARIABLE ACCOUNT ANNUAL EXPENSES (as a percentage of average daily net asset value deducted from each Variable Sub-Account)
Allstate Provider Allstate Provider Allstate Provider Advantage Contracts Ultra Contracts Extra Contracts ------------------------------------------------------------------------------------------------------- WITHOUT THE ENHANCED DEATH BENEFIT OR INCOME BENEFIT RIDERS ------------------------------------------------------------------------------------------------------- Mortality and Expense 1.45% 1.25% 1.40% Risk Charge ------------------------------------------------------------------------------------------------------- Administrative 0.10% 0.10% 0.10% Expense Charge ------------------------------------------------------------------------------------------------------- Total Variable Account Annual 1.55% 1.35% 1.50% Expenses ------------------------------------------------------------------------------------------------------- WITH THE ENHANCED DEATH BENEFIT RIDER ------------------------------------------------------------------------------------------------------- Mortality and Expense 1.70% 1.50% 1.65% Risk Charge ------------------------------------------------------------------------------------------------------- Administrative 0.10% 0.10% 0.10% Expense Charge ------------------------------------------------------------------------------------------------------- Total Variable Account Annual 1.80% 1.60% 1.75% Expenses ------------------------------------------------------------------------------------------------------- WITH THE INCOME BENEFIT RIDER ------------------------------------------------------------------------------------------------------- Mortality and Expense 1.70% 1.50% 1.65% Risk Charge ------------------------------------------------------------------------------------------------------- Administrative 0.10% 0.10% 0.10% Expense Charge ------------------------------------------------------------------------------------------------------- Total Variable Account Annual 1.80% 1.60% 1.75% Expenses ------------------------------------------------------------------------------------------------------- WITH THE INCOME BENEFIT AND ENHANCED DEATH BENEFIT RIDERS ------------------------------------------------------------------------------------------------------- Mortality and Expense 1.95% 1.75% 1.90% Risk Charge ------------------------------------------------------------------------------------------------------- Administrative 0.10% 0.10% 0.10% Expense Charge ------------------------------------------------------------------------------------------------------- Total Variable Account Annual 2.05% 1.85% 2.00% Expenses -------------------------------------------------------------------------------------------------------
10 PROSPECTUS If you elect the Enhanced Earnings Death Benefit Rider, we will deduct an annual charge of up to 0.35% of your Contract Value on each Contract Anniversary during the Accumulation Phase. The charge is based on the oldest Contract owner's age as of the Rider Application Date, as follows:
Age Annual Charge ------------------------------------------------------------------------------- 0-55 0.10% ------------------------------------------------------------------------------- 56-65 0.20% ------------------------------------------------------------------------------- 66-75 0.35% -------------------------------------------------------------------------------
We will deduct this charge from your Contract Value in the Variable Account on a pro rata basis. If the Contract Value in the Variable Account is not sufficient to cover the charge, we will deduct the remaining charge from the fixed Guaranteed Periods, beginning with the oldest fixed Guaranteed Period (see "EXPENSES" on page 27 for additional information). Fixed Guarantee Periods may not be available in all states. ANNUAL PORTFOLIO EXPENSES The next table shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. These are expenses that are deducted from Portfolio assets, and may include management fees, distribution and/or services (12b-1) fees, and other expenses. Advisers and/or other service providers of certain Portfolios may have agreed to waive their fees and/or reimburse Portfolio expenses in order to keep the Portfolios' expenses below specified limits. In some cases these expense limitations are contractual. In other cases these expense limitations are voluntary and may be terminated at any time. More detail concerning each Portfolio's fees and expenses appears in the prospectus for each Portfolio.
ANNUAL PORTFOLIO EXPENSES ---------------------------------------------------------------------------------- Minimum Maximum ---------------------------------------------------------------------------------- Total Annual Portfolio 0.27% 5.07% Operating Expenses/1/ ----------------------------------------------------------------------------------
(1) Expenses are shown as a percentage of Portfolio average daily net assets (before any waiver or reimbursement) as of December 31, 2002. The following examples are intended to help you compare the cost of investing in the Contract with the cost of investing in the other variable annuity contracts. These costs include Contract owner transaction expenses, Contract fees, Variable Account annual expenses, and Portfolio fees and expenses. In each case, the first line of the Example assumes that the maximum fees and expenses of any of the Portfolios are charged. The second line of the Example assumes that the minimum fees and expenses of any of the Portfolios are charged. Your actual expenses may be higher or lower than those shown below. EXAMPLE 1 (ALLSTATE PROVIDER ADVANTAGE CONTRACTS) The Example below shows the dollar amount of expenses that you would bear directly or indirectly if you: . invested $10,000 in the Contract for the time period indicated, . earned a 5% annual return on your investment, . elected the Enhanced Death Benefit and Income Benefit Riders, and . elected the Enhanced Earnings Death Benefit Rider (assuming Contract owner is age 66-75 on the Rider Application Date). 11 PROSPECTUS THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
1 Year 3 Years 5 Years 10 Years ------------------------------------------------------------------------------------------------------ Costs Based on Maximum Annual $801 $2,344 $3,810 $7,160 Portfolio Expenses ------------------------------------------------------------------------------------------------------ Costs Based on Minimum Annual $309 $948 $1,613 $3,402 Portfolio Expenses ------------------------------------------------------------------------------------------------------
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR RATE OF RETURN MAY BE HIGHER OR LOWER THAN 5%, WHICH IS NOT GUARANTEED. THE EXAMPLES DO NOT ASSUME THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS ARE IN EFFECT FOR THE PERIODS PRESENTED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF THE ENHANCED DEATH BENEFIT AND INCOME BENEFIT RIDERS WITH A TOTAL MORTALITY AND EXPENSE RISK CHARGE OF 1.95% FOR ALLSTATE PROVIDER ADVANTAGE CONTRACTS AND THE ENHANCED EARNINGS DEATH BENEFIT RIDER WITH AN ANNUAL FEE OF 0.35%. IF THOSE RIDERS WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. THE EXAMPLES REFLECT THE DEDUCTION OF THE ANNUAL CONTRACT MAINTENANCE CHARGE OF $35. EXAMPLE 2 (ALLSTATE PROVIDER EXTRA CONTRACTS) The Example below shows the dollar amount of expenses that you would bear directly or indirectly if you: . invested $10,000 in the Contract for the time period indicated, . earned a 5% annual return on your investment, . surrendered your Contract, or began receiving income payments for a specified period of less than 120 months, at the end of each time period, and elected the Enhanced Death Benefit and Income Benefit Riders, and . elected the Enhanced Earnings Death Benefit Rider (assuming Contract owner is age 66-75 on the Rider Application Date). The Example does not include any taxes or tax penalties you may be required to pay if you surrender your Contract.
1 Year 3 Years 5 Years 10 Years ------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual $1,291 $2,714 $4,067 $7,039 Portfolio Expenses ------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual $799 $1,311 $1,851 $3,202 Portfolio Expenses -------------------------------------------------------------------------------------------------------
EXAMPLE 3 (ALLSTATE PROVIDER EXTRA CONTRACTS) This example uses the same assumptions as Example 2 above, except that it assumes you decided not to surrender your Contract, or you began receiving income payments for a specified period of at least 120 months, at the end of the time period.
1 Year 3 Years 5 Years 10 Years ------------------------------------------------------------------------------------ Costs Based on Maximum Annual Portfolio $781 $2,289 $3,727 $7,039 Expenses ------------------------------------------------------------------------------------ Costs Based on Minimum Annual Portfolio $289 $886 $1,511 $3,202 Expenses ------------------------------------------------------------------------------------
12 PROSPECTUS PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR RATE OF RETURN MAY BE HIGHER OR LOWER THAN 5%, WHICH IS NOT GUARANTEED. THE EXAMPLES DO NOT ASSUME THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS ARE IN EFFECT FOR THE PERIODS PRESENTED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF THE ENHANCED DEATH BENEFIT AND INCOME BENEFIT RIDERS WITH A TOTAL MORTALITY AND EXPENSE RISK CHARGE OF 1.90% FOR ALLSTATE PROVIDER EXTRA CONTRACTS AND THE ENHANCED EARNINGS DEATH BENEFIT RIDER WITH AN ANNUAL FEE OF 0.35%. IF THOSE RIDERS WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. THE EXAMPLES REFLECT THE DEDUCTION OF THE ANNUAL CONTRACT MAINTENANCE CHARGE OF $35. EXAMPLE 4 (ALLSTATE PROVIDER ULTRA CONTRACTS) The Example below shows the dollar amount of expenses that you would bear directly or indirectly if you: . invested $10,000 in the Contract for the time period indicated, . earned a 5% annual return on your investment, . surrendered your Contract, or you began receiving income payments for a specified period of less tan 120 months, at the end of each time period, . elected the Enhanced Death Benefit and Income Benefit Riders, and . elected the Enhanced Earnings Death Benefit Rider (assuming Contract owner is age 66-75 on the Rider Application Date). THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
1 Year 3 Years 5 Years 10 Years ------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual $1,505 $3,010 $4,353 $7,392 Portfolio Expenses ------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual $994 $1,556 $2,061 $3,458 Portfolio Expenses -------------------------------------------------------------------------------------------------------
EXAMPLE 5 (ALLSTATE PROVIDER ULTRA CONTRACTS) This example uses the same assumptions as Example 4 above, except that it assumes you decided not to surrender your Contract, or you began receiving income payments for a specified period of at least 120 months, at the end of the time period.
1 Year 3 Years 5 Years 10 Years ------------------------------------------------------------------------------------ Costs Based on Maximum Annual Portfolio $825 $2,415 $3,928 $7,392 Expenses ------------------------------------------------------------------------------------ Costs Based on Minimum Annual Portfolio $314 $961 $1,636 $3,458 Expenses ------------------------------------------------------------------------------------
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR RATE OF RETURN MAY BE HIGHER OR LOWER THAN 5%, WHICH IS NOT GUARANTEED. THE EXAMPLES DO NOT ASSUME THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS ARE IN EFFECT FOR THE PERIODS PRESENTED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF THE ENHANCED DEATH BENEFIT AND INCOME BENEFIT RIDERS WITH A TOTAL MORTALITY AND EXPENSE RISK CHARGE OF 1.75% FOR ALLSTATE PROVIDER ULTRA CONTRACTS AND THE ENHANCED EARNINGS DEATH BENEFIT RIDER WITH AN ANNUAL FEE OF 0.35%. IF THOSE RIDERS WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. THE EXAMPLES REFLECT THE DEDUCTION OF THE ANNUAL CONTRACT MAINTENANCE CHARGE OF $35. 13 PROSPECTUS FINANCIAL INFORMATION -------------------------------------------------------------------------------- To measure the value of your investment in the Variable Sub-Accounts during the Accumulation Phase, we use a unit of measure we call the "ACCUMULATION UNIT". Each Variable Sub-Account has a separate value for its Accumulation Units which we call "ACCUMULATION UNIT VALUE." Accumulation Unit Value is analogous to, but not the same as, the share price of a mutual fund. Attached as Appendix A to this prospectus are tables showing the Accumulation Unit Values of each Variable Sub-Account since the date we first offered the Contracts. To obtain a fuller picture of each Variable Sub-Account's finances, please refer to the Variable Account's financial statements contained in the Statement of Additional Information. The financial statements of Glenbrook also appear in the Statement of Additional Information. THE CONTRACT -------------------------------------------------------------------------------- CONTRACT OWNER Each Contract is an agreement between you, the Contract Owner, and Glenbrook, a life insurance company. As the Contract Owner, you may exercise all of the rights and privileges provided to you by the Contract. That means it is up to you to select or change (to the extent permitted): . the investment alternatives during the Accumulation and Payout Phases, . the amount and timing of your purchase payments and withdrawals, . the programs you want to use to invest or withdraw money, . the income payment plan you want to use to receive retirement income, . the Annuitant (either yourself or someone else) on whose life the income payments will be based, . the Beneficiary or Beneficiaries who will receive the benefits that the Contract provides when the last surviving Contract Owner dies, and . any other rights that the Contract provides. If you die, any surviving Contract Owner, or, if none, the Beneficiary may exercise the rights and privileges provided to them by the Contract. The Contract cannot be jointly owned by both a non-natural person and a natural person. If the Contract Owner is a grantor trust, the Contract Owner will be considered a non-living person for purposes of this section and the Death Benefits section.The maximum age of any Contract owner on the date we receive the completed application for each Contract is as follows: . 90 - Allstate Provider Advantage . 90 - Allstate Provider Ultra . 80 - Allstate Provider Extra You may change the Contract owner at any time. We will provide a change of ownership form to be signed by you and filed with us. After we accept the form, the change of ownership will be effective as of the date you signed the form. Until we receive your written notice to change the Contract owner, we are entitled to rely on the most recent ownership information in our files. We will not be liable as to any payment or settlement made prior to receiving the written notice. Accordingly, if you wish to change the Contract owner, you should deliver your written notice to us promptly. Each change is subject to any payment made by us or any other action we take before we accept the change. Changing ownership of this contract may cause adverse tax consequences and may not be allowed under qualified plans. Please consult with a competent tax advisor prior to making a request for a change of Contract Owner. The Contract also may be purchased as part of a qualified plan. A qualified plan is a personal retirement savings plan, such as an IRA or tax-sheltered annuity, that meets the requirements of the Internal Revenue Code. Qualified plans may limit or modify your rights and privileges under the Contract. We use the term "Qualified Contract" to refer to a Contract issued within a qualified plan. See "Qualified Plans" on page 40. ANNUITANT The Annuitant is the individual whose life determines the amount and duration of income payments (other than under Income Plans with guaranteed payments for a specified period). You initially designate an Annuitant in your application. You may change the Annuitant at any time prior to the Payout Start Date (only if the Contract owner is a natural person). Once we accept a change, it takes effect as of the date you signed the request. Each change is subject to any payment we make or other action we take before we accept it. You may designate a joint Annuitant, who is a second person on whose life income payments depend. We permit you to name a joint annuitant when you elect an Income Plan. If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be: 14 PROSPECTUS (i) the youngest Contract owner; otherwise, (ii) the youngest Beneficiary. The maximum age of any Annuitant on the date we receive the completed application for each Contract is as follows: . 90 - Allstate Provider Advantage . 90 - Allstate Provider Ultra . 80 - Allstate Provider Extra BENEFICIARY You may name one or more primary and contingent Beneficiaries when you apply for a Contract. The primary Beneficiary is the person who may elect to receive the death benefit or become the new Contract Owner pursuant to the Contract if the sole surviving Contract Owner dies before the Payout Start Date. If the sole surviving Contract owner dies after the Payout Start Date, the primary Beneficiary will receive any guaranteed income payments scheduled to continue. A contingent Beneficiary is the person selected by the Contract Owner who will exercise the rights of the primary Beneficiary if all named primary Beneficiaries die before the death of the sole surviving Contract Owner. You may change or add Beneficiaries at any time, unless you have designated an irrevocable Beneficiary. We will provide a change of Beneficiary form to be signed by you and filed with us. After we accept the form, the change of Beneficiary will be effective as of the date you signed the form. Until we receive your written notice to change a Beneficiary, we are entitled to rely on the most recent Beneficiary information in our files. Accordingly, if you wish to change your Beneficiary, you should deliver your written notice to us promptly. Each beneficiary change is subject to any payment made by us or any other action we take before we accept the change. If you did not name a Beneficiary or, unless otherwise provided in the Beneficiary designation, if a named Beneficiary is no longer living and there are no other surviving primary or contingent Beneficiaries the new Beneficiary will be: . your spouse or, if he or she is no longer alive, . your surviving children equally, or if you have no surviving children, . your estate. If one or more Beneficiaries survive you, we will divide the death benefit among the surviving Beneficiaries according to your most recent written instructions. If you have not given us written instructions, we will pay the death benefit in equal amounts to the surviving Beneficiaries. If there is more than one Beneficiary in a class and one of the Beneficiaries predeceases the Owner, the remaining Beneficiaries in that class will divide the deceased Beneficiary share in proportion to the original share of the remaining Beneficiaries. If there is more than one Beneficiary taking shares of the death proceeds, each Beneficiary will be treated as a separate and independent owner of his or her respective share of the death proceeds. Each Beneficiary will exercise all rights related to his or her share of the death proceeds, including the sole right to select a payout option, subject to any restrictions previously placed upon the Beneficiary. Each Beneficiary may designate a Beneficiary(ies) for his or her respective share, but that designated Beneficiary(ies) will be restricted to the payout option chosen by the original Beneficiary. If there is more than one Beneficiary and one of the Beneficiaries is a corporation or other type of non-natural person, all Beneficiaries will be considered to be non-natural persons for the above purposes. MODIFICATION OF THE CONTRACT Only a Glenbrook officer may approve a change in or waive any provision of the Contract. Any change or waiver must be in writing. None of our agents have the authority to change or waive the provisions of the Contract. We may not change the terms of the Contract without your consent, except to conform the Contract to applicable law or changes in the law. If a provision of the Contract is inconsistent with state law, we will follow state law. ASSIGNMENT No owner has a right to assign any interest in a Contract as collateral or security for a loan. However, you may assign periodic income payments under the Contract prior to the Payout Start Date. No Beneficiary may assign benefits under the Contract until they are payable to the Beneficiary. We will not be bound by any assignment until the assignor signs it and files it with us. We are not responsible for the validity of any assignment. Federal law prohibits or restricts the assignment of benefits under many types of retirement plans and the terms of such plans may themselves contain restrictions on assignments. An assignment may also result in taxes or tax penalties. YOU SHOULD CONSULT AN ATTORNEY BEFORE TRYING TO ASSIGN YOUR CONTRACT. 15 PROSPECTUS PURCHASES -------------------------------------------------------------------------------- MINIMUM PURCHASE PAYMENTS Your initial purchase payment must be at least $5,000 ($2,000 for a Qualified Contract). All subsequent purchase payments must be $50 or more. You may make purchase payments at any time prior to the Payout Start Date. We reserve the right to limit the maximum amount of purchase payments we will accept. The most we will accept without our prior approval is $1,000,000. We reserve the right to limit the availability of investment alternatives. We also reserve the right to reject any application. AUTOMATIC ADDITIONS PROGRAM You may make subsequent purchase payments by automatically transferring money from your bank account. Consult your representative for more detailed information. ALLOCATION OF PURCHASE PAYMENTS At the time you apply for a Contract, you must decide how to allocate your purchase payments among the investment alternatives. The allocation you specify on your application will be effective immediately. All allocations must be in whole percents that total 100% or in whole dollars. You can change your allocations by notifying us in writing. We will allocate your purchase payments to the investment alternatives according to your most recent instructions on file with us. Unless you notify us in writing otherwise, we will allocate subsequent purchase payments according to the allocation for the previous purchase payment. We will effect any change in allocation instructions at the time we receive written notice of the change in good order. We will credit the initial purchase payment that accompanies your completed application to your Contract within 2 business days after we receive the payment at our home office. If your application is incomplete, we will ask you to complete your application within 5 business days. If you do so, we will credit your initial purchase payment to your Contract within that 5 business day period. If you do not, we will return your purchase payment at the end of the 5 business day period unless you expressly allow us to hold it until you complete the application. We will credit subsequent purchase payments to the Contract at the close of the business day on which we receive the purchase payment at our home office. We are open for business each day Monday through Friday that the New York Stock Exchange is open for business. We also refer to these days as "VALUATION DATES." Our business day closes when the New York Stock Exchange closes, usually 4 p.m. Eastern Time (3 p.m. Central Time). If we receive your purchase payment after 3 p.m. Central Time on any Valuation Date, we will credit your purchase payment using the Accumulation Unit Values computed on the next Valuation Date. CREDIT ENHANCEMENT (ALLSTATE PROVIDER EXTRA CONTRACTS only) Each time you make a purchase payment, we will add to your Contract Value a Credit Enhancement equal to 4% of the purchase payment. We will allocate any Credit Enhancements to the investment alternatives according to the allocation instructions you have on file with us at the time we receive your purchase payment. We will allocate each Credit Enhancement among the investment alternatives in the same proportions as the corresponding purchase payment (except that any portion of the Credit Enhancement corresponding to the value in any Fixed Account Option will instead be allocated to the Money Market Variable Sub-account). Thereafter you may instruct us to allocate these funds to any investment alternative you choose. Credit Enhancements are treated as "earnings" for purposes of determining withdrawal charges and free withdrawal amounts on surrenders and partial withdrawals. Similarly, we do not consider Credit Enhancements to be investments in the Contract for income tax purposes. We use a portion of the withdrawal charge and mortality and expense risk charge to help recover the cost of providing the Credit Enhancement under the Contract. See "Expenses." Under certain circumstances (such as a period of poor market performance) the cost associated with the Credit Enhancement may exceed the sum of the Credit Enhancement and any related earnings. You should consider this possibility before purchasing the Contract. RIGHT TO CANCEL You may cancel the Contract by returning it to us within the Cancellation Period, which is the 20 day period after you receive the Contract, or a longer period should your state require it. You may return it by delivering it or mailing it to us. If you exercise this "RIGHT TO CANCEL," the Contract terminates and we will pay you the full amount of your purchase payments allocated to the Fixed Account. We also will return your purchase payments allocated to the Variable Account adjusted, to the extent federal or state law permits, to reflect investment gain or loss including the deduction of mortality and expense risk charges and administrative expense charges that occurred from the date of allocation through the date of cancellation. Some states may require us to return a greater amount to you. If this Contract is qualified under Section 408 of the 16 PROSPECTUS Internal Revenue Code, we will refund the greater of any purchase payments or the Contract Value. For ALLSTATE PROVIDER EXTRA CONTRACTS, the amount we return to you upon exercise of this Right to Cancel will not include any Credit Enhancement or the amount of charges deducted prior to cancellation but will reflect, except in states where we are required to return the amount of your purchase payments, any investment gain or loss associated with your Variable Account purchase payments and with the Credit Enhancement. In states where we are required to refund purchase payments, we reserve the right during the Cancellation Period to invest any purchase payments you allocated to a Variable Sub-Account to the Money Market Variable Sub-Account available under the Contract. We will notify you if we do so. At the end of the Cancellation Period, we will allocate the amount in the Money Market Variable Sub-Account to the Variable Sub-Account as you originally designated. CONTRACT VALUE -------------------------------------------------------------------------------- On the Issue Date, the Contract Value is equal to: . your initial purchase payment for ALLSTATE PROVIDER ADVANTAGE CONTRACTS and ALLSTATE PROVIDER ULTRA CONTRACTS . your initial purchase payment plus the Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS. Your Contract Value at any time during the Accumulation Phase is equal to the sum of the value of your Accumulation Units in the Variable Sub-Accounts you have selected, plus the value of your investment in the Fixed Account Options. ACCUMULATION UNITS To determine the number of Accumulation Units of each Variable Sub-Account to credit to your Contract, we divide (i) the amount of the purchase payment or transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of that Variable Sub-Account next computed after we receive your payment or transfer. For example, if we receive a $10,000 purchase payment allocated to a Variable Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable Sub-Account to your Contract. For ALLSTATE PROVIDER EXTRA CONTRACTS, we would also credit an additional 40 Accumulation Units of that Variable Sub-Account to your Contract to reflect the 4% Credit Enhancement on your purchase payment. See "Credit Enhancement." Withdrawals and transfers from a Variable Sub-Account would, of course, reduce the number of Accumulation Units of that Sub-Account allocated to your Contract. ACCUMULATION UNIT VALUE As a general matter, the Accumulation Unit Value for each Variable Sub-Account will rise or fall to reflect: . changes in the share price of the Portfolio in which the Variable Sub-Account invests, and . the deduction of amounts reflecting the mortality and expense risk charge, administrative expense charge, and any provision for taxes that have accrued since we last calculated the Accumulation Unit Value. We determine contract maintenance charges, withdrawal charges (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), Enhanced Earnings Death Benefit charges (if applicable) and transfer fees (currently waived) separately for each Contract. They do not affect Accumulation Unit Value. Instead, we obtain payment of those charges and fees by redeeming Accumulation Units. For details on how we calculate Accumulation Unit Value, please refer to the Statement of Additional Information. We determine a separate Accumulation Unit Value for each Variable Sub-Account on each Valuation Date. We also determine a separate set of Accumulation Unit Values reflecting the cost of the Enhanced Death Benefit Rider, the Income Benefit Rider, and the Enhanced Death Benefit Rider with the Income Benefit Rider. YOU SHOULD REFER TO THE PROSPECTUSES FOR THE FUNDS THAT ACCOMPANY THIS PROSPECTUS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH PORTFOLIO ARE VALUED, SINCE THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE. 17 PROSPECTUS INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS -------------------------------------------------------------------------------- You may allocate your purchase payments to up to 48 Variable Sub-Accounts. Each Variable Sub-Account invests in the shares of a corresponding Portfolio. Each Portfolio has its own investment objective(s) and policies. We briefly describe the Portfolios below. For more complete information about each Portfolio, including expenses and risks associated with the Portfolio, please refer to the accompanying prospectuses for the Funds. You should carefully review the Fund prospectuses before allocating amounts to the Variable Sub-Accounts.
PORTFOLIO EACH PORTFOLIO SEEKS ADVISOR ------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS (SERIES I)* ------------------------------------------------------------------------------- AIM V.I. Aggressive Long-term growth of capital Growth Fund ---------------------------------------------------------------- AIM V.I. Balanced Fund Achieve as high a total return as possible, consistent with preservation of capital ----------------------------------------------------------------A I M ADVISORS, INC. AIM V.I. Capital Growth of capital Appreciation Fund ---------------------------------------------------------------- AIM V.I. Core Equity Growth of capital Fund ---------------------------------------------------------------- AIM V.I. Dent Long-term growth of capital Demographic Trends Fund ---------------------------------------------------------------- AIM V.I. Diversified A high level of current income Income Fund ---------------------------------------------------------------- AIM V.I. Growth Fund Growth of capital ---------------------------------------------------------------- AIM V.I. International Long-term growth of capital Growth Fund ---------------------------------------------------------------- AIM V.I. Premier Long-term growth of capital. Income Equity Fund is a secondary objective -------------------------------------------------------------------------------------------------------------------------- THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.; THE DREYFUS STOCK INDEX FUND, INC.; AND THE DREYFUS VARIABLE INVESTMENT FUND (VIF) (COLLECTIVELY, THE DREYFUS FUNDS) -------------------------------------------------------------------------------------------------------------------------- The Dreyfus Socially Capital growth and, secondarily, Responsible Growth current income Fund, Inc. ---------------------------------------------------------------- Dreyfus Stock Index To match the total return of the Fund, Inc. Standard & Poor's 500 Composite Stock Price Index ---------------------------------------------------------------- Dreyfus VIF Growth & Long-term capital growth, current THE DREYFUS CORPORATION Income Portfolio income and growth of income, consistent with reasonable investment ---------------------------------------------------------- risk ---------------------------------------------------------------- Dreyfus VIF Money A high level of current income as is Market Portfolio consistent with the preservation of capital and the maintenance of liquidity ---------------------------------------------------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS -------------------------------------------------------------------------------------------------------------------------- Fidelity VIP Asset To maximize total return by allocating Manager Growth(R) assets among stocks, bonds, Portfolio-Service short-term instruments and other Class 2 investments ---------------------------------------------------------------- Fidelity VIP Long-term capital appreciation Contrafund(R) Portfolio - Service Class 2 ---------------------------------------------------------------- Fidelity VIP Reasonable income Equity-Income Portfolio - Service Class 2 ----------------------------------------------------------------FIDELITY MANAGEMENT & RESEARCH COMPANY Fidelity VIP Growth Capital appreciation Portfolio - Service ---------------------------------------------------------- Class 2 ---------------------------------------------------------------- Fidelity VIP High High level of current income while Income Portfolio - also considering growth of capital Service Class 2 ---------------------------------------------------------------- 18 PROSPECTUS -------------------------------------------------------------------------------------------------------------------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -------------------------------------------------------------------------------------------------------------------------- Franklin Small Cap Long-term capital growth FRANKLIN ADVISERS, INC. Fund - Class 2 (1) -------------------------------------------------------------------------------------------------------------------------- Mutual Shares Capital appreciation. Secondary goal FRANKLIN MUTUAL ADVISERS, LLC Securities Fund - is income Class 2 -------------------------------------------------------------------------------------------------------------------------- Templeton Developing Long-term capital appreciation TEMPLETON ASSET MANAGEMENT LTD. Markets Securities Fund - Class 2 -------------------------------------------------------------------------------------------------------------------------- Templeton Foreign Long-term capital growth TEMPLETON INVESTMENT COUNSEL, LLC Securities Fund - Class 2 -------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT) -------------------------------------------------------------------------------------------------------------------------- Goldman Sachs VIT Long term growth of capital GOLDMAN SACHS ASSET CORE/SM/ Small Cap Equity Fund MANAGEMENT, L.P. ---------------------------------------------------------------- Goldman Sachs VIT Long-term growth of capital and CORE/SM/ U.S. Equity dividend income ---------------------------------------------------------- Fund ---------------------------------------------------------------- LSA VARIABLE SERIES TRUST -------------------------------------------------------------------------------------------------------------------------- LSA Diversified Mid Seeks long-term growth of capital by LSA ASSET MANAGEMENT LLC(3) Cap Equity Fund investing in securities of companies with medium market capitalizations. -------------------------------------------------------------------------------------------------------------------------- LSA Equity Growth Fund Seeks long-term capital appreciation (2) by investing primarily in growth LSA ASSET MANAGEMENT LLC(4) oriented equity securities of large capitalization companies. -------------------------------------------------------------------------------------------------------------------------- LSA Capital Growth Seeks long-term growth of capital by LSA ASSET MANAGEMENT LLC(5) Fund (2) investing in a diversified portfolio of equity securities. -------------------------------------------------------------------------------------------------------------------------- MFS/(R)/VARIABLE INSURANCE TRUST-/SM/- -------------------------------------------------------------------------------------------------------------------------- MFS Emerging Growth Long-term growth of capital Series - Service Class ---------------------------------------------------------------- MFS Investors Trust Long-term growth of capital with a Series - Service secondary objective to seek Class reasonable current income ---------------------------------------------------------------- MFS New Discovery Capital appreciating Series - Service Class ---------------------------------------------------------------- MFS Research Series - Long-term growth of capital and future MFS INVESTMENT MANAGEMENT(R) Service Class income ---------------------------------------------------------------- MFS Utility Series - Capital growth and current income Service Class ---------------------------------------------------------------- OPPENHEIMER VARIABLE ACCOUNT FUNDS -------------------------------------------------------------------------------------------------------------------------- Oppenheimer Aggressive Capital appreciation Growth Fund/VA -------------------------------------------------------------------------------------------------------------------------- Oppenheimer Capital Seeks capital appreciation by OPPENHEIMER FUNDS, INC. Appreciation Fund/VA investing in securities of well-known, established companies. ---------------------------------------------------------------- Oppenheimer Global Long-term capital appreciation Securities Fund/VA ---------------------------------------------------------------- Oppenheimer Main High total return, which includes Street Fund/VA growth in the value of its shares as (6) well as current income, from equity and debt securities ---------------------------------------------------------------- Oppenheimer Strategic High level of current income Bond Fund/VA ---------------------------------------------------------------- 19 PROSPECTUS ------------------------------------------------------------------------------------------- PUTNAM VARIABLE TRUST ---------------------------------------------------------------- Putnam VT Growth and Seeks capital growth and current Income Fund - Class income. IB ---------------------------------------------------------------- Putnam VT Growth Seeks capital appreciation. Opportunities Fund - Class IB PUTNAM INVESTMENT MANAGEMENT, INC. ---------------------------------------------------------------- Putnam VT Health Seeks capital appreciation. Sciences Fund - Class IB ---------------------------------------------------------------- Putnam VT Seeks capital appreciation. International Equity Fund - Class IB (7) -------------------------------------------------------------------------------------------------------------------------- Putnam VT New Value Seeks long-term capital appreciation. Fund - Class IB ---------------------------------------------------------------- Putnam VT Research Seeks capital appreciation. Fund - Class IB ---------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL FUNDS, INC. -------------------------------------------------------------------------------------------------------------------------- Van Kampen UIF Core Above-average total return over a Plus Fixed Income market cycle of three to five years Portfolio - Class I ---------------------------------------------------------------- Van Kampen UIF Global Long-term capital appreciation Value Equity Portfolio - Class I VAN KAMPEN(9) ---------------------------------------------------------------- Van Kampen UIF U.S. Above-average total return over a Mid Cap Core market cycle of three to five years Portfolio - Class I (8) ---------------------------------------------------------------- Van Kampen UIF U.S. Above-average current income and Real Estate Portfolio long-term capital appreciation - Class I ---------------------------------------------------------- ---------------------------------------------------------------- Van Kampen UIF Value Above-average total return over a Portfolio - Class I market cycle of three to five years ----------------------------------------------------------------
*A portfolio's investment objective may be changed by the Fund's Board of Trustees without shareholder approval. (1) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. For administrative convenience, the corresponding Sub-Account Portfolios were combined. (2) Effective May 1, 2003 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Accounts that invest in those Portfolios. (3) Sub-advised by Fidelity Management & Research Company. (4) Sub-advised by Van Kampen. (5) Sub-advised by Goldman Sachs Asset Management. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth & Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (9) Morgan Stanley Investment Management Inc., the investment adviser to the Van Kampen UIF Portfolios, does business in certain instances as Van Kampen. VARIABLE INSURANCE PORTFOLIOS MAY NOT BE MANAGED BY THE SAME PORTFOLIO MANAGERS WHO MANAGE RETAIL MUTUAL FUNDS WITH SIMILAR NAMES. THESE PORTFOLIOS ARE LIKELY TO DIFFER FROM RETAIL MUTUAL FUNDS IN ASSETS, CASH FLOW, AND TAX MATTERS. ACCORDINGLY, THE HOLDINGS AND INVESTMENT RESULTS OF A PORTFOLIO CAN BE EXPECTED TO BE HIGHER OR LOWER THAN THE INVESTMENT RESULTS OF RETAIL MUTUAL FUNDS. AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN --------------------------------------------------------------------------- VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE OF ------------------------------------------------------------------------------- THE PORTFOLIOS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE ------------------------------------------------------------------------- INVESTMENT RISK THAT THE PORTFOLIOS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES. ------------------------------------------------------------------------------- SHARES OF THE PORTFOLIOS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR ------------------------------------------------------------------------------ ENDORSED BY ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE ------------------------------------------------------------------------- CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. ------------------------------------------------------------ 20 PROSPECTUS INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT OPTIONS -------------------------------------------------------------------------------- You may allocate all or a portion of your purchase payments (and Credit Enhancements for ALLSTATE PROVIDER EXTRA CONTRACTS) to the Fixed Account. You may choose from among 3 Fixed Account Options, including 2 Dollar Cost Averaging options and the option to invest in one or more Guarantee Periods included in the Guaranteed Maturity Fixed Account. We may offer additional Fixed Account options in the future. We will credit a minimum annual interest rate of 3% to money you allocate to any of the Dollar Cost Averaging Fixed Account Options. The Fixed Account Options may not be available in all states. Please consult with your representative for current information. The Fixed Account supports our insurance and annuity obligations. The Fixed Account consists of our general account assets other than those in segregated asset accounts. We have sole discretion to invest the assets of the Fixed Account, subject to applicable law. Any money you allocate to a Fixed Account Option does not entitle you to share in the investment experience of the Fixed Account. DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT OPTION. You may establish a Short Term Dollar Cost Averaging Program by allocating purchase payments to the SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT OPTION ("SHORT TERM DCA FIXED ACCOUNT OPTION"). We will credit interest to purchase payments (and Credit Enhancements for ALLSTATE PROVIDER EXTRA CONTRACTS) you allocate to this Option for up to six months at the current rate in effect at the time of allocation. We will credit interest daily at a rate that will compound at the annual interest rate we guaranteed at the time of allocation. We will follow your instructions in transferring amounts monthly from the Short Term DCA Fixed Account Option. However, you may not choose less than 3 or more than 6 equal monthly installments. Further, you must transfer each purchase payment (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) and associated interest out of this Option by means of Dollar Cost Averaging within 6 months. If you discontinue the Dollar Cost Averaging Program before the end of the transfer period, we will transfer the remaining balance in this Option to the Money Market Variable Sub-Account unless you request a different investment alternative. No transfers are permitted into the Short Term DCA Fixed Account. For each purchase payment (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) allocated to this Option, your first monthly transfer will occur at the end of the first month following such purchase payment. If we do not receive an allocation from you within one month of the date of payment, we will transfer each monthly installment to the money market Variable Sub-Account until we receive a different allocation instruction. Transferring Contract Value to the money market Variable Sub-Account in this manner may not be consistent with the theory of dollar cost averaging described on page 25. EXTENDED SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT OPTION. You may establish an Extended Short Term Dollar Cost Averaging Program by allocating purchase payments to the EXTENDED SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT OPTION ("EXTENDED SHORT TERM DCA FIXED ACCOUNT OPTION"). We will credit interest to purchase payments (and Credit Enhancements for ALLSTATE PROVIDER EXTRA CONTRACTS) you allocate to this Option for up to twelve months at the current rate in effect at the time of allocation. We will credit interest daily at a rate that will compound at the annual interest rate we guaranteed at the time of allocation. We will follow your instructions in transferring amounts monthly from the Extended Short Term DCA Fixed Account Option. However, you may not choose less than 7 or more than 12 equal monthly installments. Further, you must transfer each purchase payment (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) and associated interest out of this Option by means of dollar cost averaging within 12 months. If you discontinue the Dollar Cost Averaging Program before the end of the transfer period, we will transfer the remaining balance in this Option to the money market Variable Sub-Account unless you request a different investment alternative. No transfers are permitted into the Extended Short Term DCA Fixed Account. For each purchase payment (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) allocated to this Option, your first monthly transfer will occur at the end of the first month following such purchase payment. If we do not receive an allocation from you within one month of the date of payment, we will transfer each monthly installment to the money market Variable Sub-Account until we receive a different allocation instruction. Transferring Account Value to the Money Market Variable Sub-Account in this manner may not be consistent with the theory of dollar cost averaging described on page 25. At the end of the transfer period, any nominal amounts remaining in the Short Term Dollar Cost Averaging Fixed Account or the Extended Short Term Dollar Cost Averaging Fixed Account will be allocated to the Money Market Variable Sub-Account. INVESTMENT RISK We bear the investment risk for all amounts allocated to the Short Term DCA Fixed Account Option and the Extended Short Term DCA Fixed Account Option. That 21 PROSPECTUS is because we guarantee the current and renewal interest rates we credit to the amounts you allocate to either of these Options, which will never be less than the minimum guaranteed rate in the Contract. Currently, we determine, in our sole discretion, the amount of interest credited in excess of the guaranteed rate. We may declare more than one interest rate for different monies based upon the date of allocation to the Short Term DCA Fixed Account Option and the Extended Short Term DCA Fixed Account Option. For current interest rate information, please contact your representative or our customer support unit at 1-800-755-5275. GUARANTEE PERIODS The Guaranteed Maturity Fixed Account is divided into Guarantee Periods. Each purchase payment (plus the appropriate portion of the Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) or transfer allocated to a Guarantee Period earns interest at a specified rate that we guarantee for a period of years. Guarantee Periods may range from 1 to 10 years. We are currently offering Guarantee Periods of 1, 3, 5, 7, and 10 years in length. In the future we may offer Guarantee Periods of different lengths or stop offering some Guarantee Periods. You select the Guarantee Period for each payment or transfer. If you do not select a Guarantee Period, we will assign the same period(s) you selected for your most recent purchase payment. Each purchase payment or transfer allocated to a Guarantee Period must be at least $50. We reserve the right to limit the number of additional purchase payments that you may allocate to this Option. INTEREST RATES. We will tell you what interest rates and Guarantee Periods we are offering at a particular time. We will not change the interest rate that we credit to a particular allocation until the end of the relevant Guarantee Period. We may declare different interest rates for Guarantee Periods of the same length that begin at different times. We have no specific formula for determining the rate of interest that we will declare initially or in the future. We will set those interest rates based on investment returns available at the time of the determination. In addition, we may consider various other factors in determining interest rates including regulatory and tax requirements, our sales commission and administrative expenses, general economic trends, and competitive factors. WE DETERMINE THE INTEREST RATES TO BE DECLARED IN OUR SOLE DISCRETION. WE CAN NEITHER PREDICT NOR GUARANTEE WHAT THOSE RATES WILL BE IN THE FUTURE. For current interest rate information, please contact your representative or Glenbrook at 1-800-755-5275. 22 PROSPECTUS HOW WE CREDIT INTEREST. We will credit interest daily to each amount allocated to a Guarantee Period at a rate that compounds to the annual interest rate that we declared at the beginning of the applicable Guarantee Period. The following example illustrates how a purchase payment (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) allocated to a Guaranteed Period would grow, given an assumed Guarantee Period and annual interest rate:
Purchase Payment $10,000 (and Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS) ------------------------------------------------------------------------------- Guarantee Period 5 years ------------------------------------------------------------------------------- Annual Interest Rate 4.50% -------------------------------------------------------------------------------
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ---------- ---------- ---------- ---------- ------------ Beginning Contract Value............... $10,000.00 x (1 + Annual Interest Rate) 1.045 ---------------------------------- $10,450.00 Contract Value at end of Contract Year.... $10,450.00 x (1 + Annual Interest Rate) 1.045 ---------- $10,920.25 Contract Value at end of Contract Year.... $10,920.25 x (1 + Annual Interest Rate) 1.045 ---------- $11,411.66 Contract Value at end of Contract Year..... $11,411.66 x (1 + Annual Interest Rate) 1.045 ---------- $11,925.19 Contract Value at end of Contract Year..... $11,925.19 x (1 + Annual Interest Rate) 1.045 ----------- $12,461.82
TOTAL INTEREST CREDITED DURING GUARANTEE PERIOD = $2,461.82 ($12,461.82 - $10,000.00) This example assumes no withdrawals during the entire 5 year Guarantee Period. If you were to make a withdrawal, you may be required to pay a withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), and the amount withdrawn may be increased or decreased by a Market Value Adjustment that reflects changes in interest rates since the time you invested the amount withdrawn. The hypothetical interest rate is for illustrative purposes only and is not intended to predict future interest rates to be declared under the Contract. Actual interest rates declared for any given Guarantee Period may be more or less than shown above. RENEWALS. Prior to the end of each Guarantee Period, we will mail you a notice asking you what to do with your money, including the accrued interest. During the 30-day period after the end of the Guarantee Period, you may: 1) Take no action. We will automatically apply your money to a new Guarantee Period of the same length as the expiring Guarantee Period. The new Guarantee Period will begin on the day the previous Guarantee Period ends. The new interest rate will be our current declared rate for a Guarantee Period of that length; or 2) Instruct us to apply your money to one or more new Guarantee Periods of your choice. The new Guarantee Period(s) will begin on the day the previous Guarantee Period ends. The new interest rate will be our then current declared rate for those Guarantee Periods; or 3) Instruct us to transfer all or a portion of your money to one or more Variable Sub-Accounts of the Variable Account. We will effect the transfer on the day we receive your instructions. We will not adjust the amount transferred to include a Market Value Adjustment; or 4) Withdraw all or a portion of your money. A withdrawal charge may apply (for ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), but we will not adjust the amount withdrawn to include a Market Value Adjustment. You may also be required to pay premium taxes and income tax withholding, if applicable. If you choose option 3 or 4 above, we will pay interest from the date the previous Guarantee Period expired until the date of the transfer or withdrawal as applicable. The interest rate will be the then current rate we are crediting for a Guarantee Period of the same length as the previous Guarantee Period. Amounts not withdrawn or transferred will be applied to a new Guarantee Period of the same length as the previous Guarantee Period. The new Guarantee Period will begin on the day the previous Guarantee Period ends. MARKET VALUE ADJUSTMENT. All withdrawals and transfers from a Guarantee Period, other than those taken 23 PROSPECTUS during the 30 day period after such Guarantee Period expires, are subject to a Market Value Adjustment. A Market Value Adjustment also will apply when you apply amounts currently invested in a Guarantee Period to an Income Plan (unless paid or applied during the 30-day period after such Guarantee Period expires). A Market Value Adjustment may apply in the calculation of the Settlement Value described in the "Death Benefit Amount" section below. We will not apply a Market Value Adjustment to a withdrawal you make: . within the Free Withdrawal Amount as described below, . that qualify for one of the waivers as described on page 23-24, . to satisfy the IRS minimum distribution rules for the Contract, or . within one year after the date of the death of the Owner as the surviving spouse continuing the Contract (limit one withdrawal only). We apply the Market Value Adjustment to reflect changes in interest rates from the time you first allocate money to a Guarantee Period to the time you remove it from that Guarantee Period. We calculate the Market Value Adjustment by comparing the TREASURY RATE for a period equal to the Guarantee Period at its inception to the Treasury Rate for a period equal to the Guarantee Period when you remove your money. "TREASURY RATE" means the U.S. Treasury Note Constant Maturity Yield as reported in Federal Reserve Bulletin Release H.15. The Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates. If interest rates increase significantly, the Market Value Adjustment, any withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), and any premium taxes and income tax withholding (if applicable) could reduce the amount you receive upon full withdrawal from a Guaranteed Period to an amount that is less than the purchase payment applied to that period plus interest earned under the Contract. During each Contract Year, you can withdraw up to 15% of the aggregate amount of your purchase payments without a Market Value Adjustment. Unused portions of this Free Withdrawal Amount are not carried forward to future Contract Years. Generally, if the original Treasury Rate at the time you allocate money to a Guarantee Period is higher than the applicable current Treasury Rate for a period equal to the Guarantee Period, then the Market Value Adjustment will result in a higher amount payable to you, transferred or applied to an Income Plan. Conversely, if the Treasury Rate at the time you allocate money to a Guarantee Period is lower than the applicable Treasury Rate for a period equal to the Guarantee Period, then the Market Value Adjustment will result in a lower amount payable to you, transferred or applied to an Income Plan. For example, assume that you purchase a Contract and you select an initial Guarantee Period of 5 years and the 5 year Treasury Rate for that duration is 4.50%. Assume that at the end of 3 years, you make a partial withdrawal. If, at that later time, the current 5 year Treasury Rate is 4.20%, then the Market Value Adjustment will be positive, which will result in an increase in the amount payable to you. Conversely, if the current 5 year Treasury Rate is 4.80%, then the Market Value Adjustment will be negative, which will result in a decrease in the amount payable to you. The formula for calculating Market Value Adjustments is set forth in Appendix B to this prospectus, which also contains additional examples of the application of the Market Value Adjustment. INVESTMENT ALTERNATIVES: TRANSFERS -------------------------------------------------------------------------------- TRANSFERS DURING THE ACCUMULATION PHASE During the Accumulation Phase, you may transfer Contract Value among the investment alternatives. You may not transfer Contract Value to either the Short Term Dollar Cost Averaging Fixed Account or the Extended Short Term Dollar Cost Averaging Fixed Account Options. You may request transfers in writing on a form that we provided or by telephone according to the procedure described below. The minimum amount that you may transfer into a Guarantee Period is $50. We currently do not assess, but reserve the right to assess, a $10 charge (up to 0.50% of the amount transferred for ALLSTATE PROVIDER EXTRA CONTRACTS) on each transfer in excess of 12 per Contract Year. All transfers to or from more than one Portfolio on any given day counts as one transfer. We will process transfer requests that we receive before 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for that Date. We will process requests completed after 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for the next Valuation Date. The Contract permits us to defer transfers from the Fixed Account for up to six months from the date we receive your request. If we decide to postpone transfers for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the transfer request to the date we make the transfer. 25 PROSPECTUS If you transfer an amount from a Guarantee Period other than during the 30 day period after such Guarantee Period expires, we will increase or decrease the amount by a Market Value Adjustment. We reserve the right to waive any transfer restrictions. TRANSFERS DURING THE PAYOUT PHASE During the Payout Phase, you may make transfers among the Variable Sub-Accounts so as to change the relative weighting of the Variable Sub-Accounts on which your variable income payments will be based. You may make up to 12 transfers per Contract Year. You may not convert any portion of your fixed income payments into variable income payments. After 6 months from the Payout Start Date, you may make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed income payments. TELEPHONE OR ELECTRONIC TRANSFERS You may make transfers by telephone by calling 1-800-755-5275. The cut-off time for telephone transfer requests is 3:00 p.m. Central Time. In the event that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time, or in the event that the Exchange closes early for a period of time but then reopens for trading on the same day, we will process telephone transfer requests as of the close of the Exchange on that particular day. We will not accept telephone requests received at any telephone number other than the number that appears in this paragraph or received after the close of trading on the Exchange. We may suspend, modify or terminate the telephone transfer privilege, as well as any other electronic or automated means we previously approved, at any time without notice. We use procedures that we believe provide reasonable assurance that the telephone transfers are genuine. For example, we tape telephone conversations with persons purporting to authorize transfers and request identifying information. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization is valid, we may be liable for such losses. TRADING LIMITATIONS We reserve the right to limit transfers among the investment alternatives in any Contract Year, or to refuse any transfer request, if: . we believe, in our sole discretion, that certain trading practices, such as excessive trading or market timing ("Prohibited Trading Practices"), by, or on behalf of, one or more Contract Owners, or a specific transfer request or group of transfer requests, may have a detrimental effect on the Accumulation Unit Values of any Variable Sub-Account or on the share prices of the corresponding Portfolio or otherwise would be to the disadvantage of other Contract Owners; or . we are informed by one or more of the Portfolios that they intend to restrict the purchase, exchange, or redemption of Portfolio shares because of Prohibited Trading Practices or because they believe that a specific transfer or group of transfers would have a detrimental effect on the prices of Portfolio shares. We may apply the restrictions in any manner reasonably designed to prevent transfers that we consider disadvantageous to other Contract Owners. SHORT-TERM TRADES All transfers involving the purchase or redemption of mutual fund shares by the Variable Account may be subject to restrictions or requirements imposed by the underlying Portfolios. Such restrictions or requirements may include the assessment of short-term trading fees in connection with transfers from a Variable Sub-Account that occur within a certain number of days following the date of allocation to the Variable Sub-Account, but will only apply to those Sub-Accounts corresponding to underlying Portfolios that explicitly require the assessment of such fees. DOLLAR COST AVERAGING PROGRAM Through our Dollar Cost Averaging Program, you may automatically transfer a fixed dollar amount every month from any Variable Sub-Account, the Short Term Dollar Cost Averaging Fixed Account, or the Extended Short Term Dollar Cost Averaging Fixed Account, to any of the other Variable Sub-Accounts. You may not use the Dollar Cost Averaging Program to transfer amounts to the Guarantee Periods. This program is available only during the Accumulation Phase. We will not charge a transfer fee for transfers made under this Program, nor will such transfer count against the 12 transfers you can make each Contract Year without paying a transfer fee. The theory of dollar cost averaging is that if purchases of equal dollar amounts are made at fluctuating prices, the aggregate average cost per unit will be less than the average of the unit prices on the same purchase dates. However, participation in this Program does not assure you of a greater profit from your purchases under the Program nor will it prevent or necessarily reduce losses in a declining market. Call or write us for instructions on how to enroll. AUTOMATIC PORTFOLIO REBALANCING PROGRAM Once you have allocated your money among the Variable Sub-Accounts, the performance of each Sub-Account may cause a shift in the percentage you allocated to each Sub-Account. If you select our "AUTOMATIC PORTFOLIO REBALANCING PROGRAM", we will automatically rebalance the Contract Value in each Variable Sub-Account and 25 PROSPECTUS return it to the desired percentage allocations. We will not include money you allocate to the Fixed Account Options in the Automatic Portfolio Rebalancing Program. We will rebalance your account monthly, quarterly, semi-annually, or annually, depending on your instructions. We will transfer amounts among the Variable Sub-Accounts to achieve the percentage allocations you specify. You can change your allocations at any time by contacting us in writing or by telephone. The new allocation will be effective with the first rebalancing that occurs after we receive your request. We are not responsible for rebalancing that occurs prior to receipt of your request. Example: Assume that you want your initial purchase payment split among 2 Variable Sub-Accounts. You want 40% to be in the Fidelity VIP High Income Variable Sub-Account and 60% to be in the AIM V.I. Core Equity Variable Sub-Account. Over the next 2 months the bond market does very well relative to the stock market. At the end of the first quarter, the Fidelity VIP High Income Variable Sub-Account now represents 50% of your holdings because of its increase in value. If you choose to have your holdings rebalanced quarterly, on the first day of the next quarter, we would sell some of your units in the Fidelity VIP High Income Variable Sub-Account and use the money to buy more units in the AIM V.I. Core Equity Variable Sub-Account so that the percentage allocations would again be 40% and 60% respectively. The Automatic Portfolio Rebalancing Program is available only during the Accumulation Phase. The transfers made under the Program do not count towards the 12 transfers you can make without paying a transfer fee, and are not subject to a transfer fee. Portfolio rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Contract Value allocated to the better performing segments. 26 PROSPECTUS EXPENSES -------------------------------------------------------------------------------- As a Contract owner, you will bear, directly or indirectly, the charges and expenses described below. CONTRACT MAINTENANCE CHARGE During the Accumulation Phase, on each Contract Anniversary, we will deduct a $35 contract maintenance charge from your Contract Value invested in each Variable Sub-Account in proportion to the amount invested. If you surrender your Contract, we will deduct the contract maintenance charge pro rated for the part of the Contract Year elapsed, unless your Contract qualifies for a waiver, described below. During the Payout Phase, we will deduct the charge proportionately from each income payment. The charge is to compensate us for the cost of administering the Contracts and the Variable Account. Maintenance costs include expenses we incur collecting purchase payments; keeping records; processing death claims, cash withdrawals, and policy changes; proxy statements; calculating Accumulation Unit Values and income payments; and issuing reports to Contract owners and regulatory agencies. We cannot increase the charge. However, we will waive this charge if, as of the Contract Anniversary or upon full surrender: . your Contract Value equals $50,000 or more, or . all money is allocated to the Fixed Account. After the Payout Start Date, we will waive the charge if the Contract Value is $50,000 or more as of the Payout Start Date. MORTALITY AND EXPENSE RISK CHARGE We deduct a mortality and expense risk charge daily from the net assets you have invested in the Variable Sub-Accounts. The annual rate of the charge is: . 1.45% for ALLSTATE PROVIDER ADVANTAGE CONTRACTS . 1.25% for ALLSTATE PROVIDER ULTRA CONTRACTS . 1.40% for ALLSTATE PROVIDER EXTRA CONTRACTS If you select the Income Benefit Rider or the Enhanced Death Benefit Rider, the mortality and expense risk charge will include an additional 0.25% for the Rider. If you select both the Income Benefit Rider and the Enhanced Death Benefit Rider, the mortality and expense risk charge will include an additional 0.50% for these Riders. The mortality and expense risk charge is for the insurance benefits available with your Contract (including our guarantee of annuity rates and the death benefits), for certain expenses of the Contract, and for assuming the risk (expense risk) that the current charges will be sufficient in the future to cover the cost of administering the Contract. The mortality and expense risk charge also helps pay for the cost of the Credit Enhancement under the ALLSTATE PROVIDER EXTRA CONTRACTS. If the charges under the Contract are not sufficient, then we will bear the loss. We charge an additional amount for the Enhanced Death Benefit Rider and the Income Benefit Rider to compensate us for the additional risk that we accept by providing these Riders. We guarantee that we will not raise the mortality and expense risk charge. We assess the mortality and expense risk charge during both the Accumulation Phase and the Payout Phase. After the Payout Start Date, mortality and expense risk charges for the Enhanced Death Benefit and the Income Benefit will cease. ENHANCED EARNINGS DEATH BENEFIT RIDER FEE If you elect the Enhanced Earnings Death Benefit Rider, we will deduct an annual charge from your Contract Value on each Contract Anniversary during the Accumulation Phase. The annual charge is calculated as a percentage of your Contract Value on the Contract Anniversary and is based on the oldest Contract owner's age on the Rider Application Date (described below) as follows:
Age Annual Charge --- ------------- 0-55 0.10% 56-65 0.20% 66-75 0.35%
We first deduct this annual fee from the Variable Sub-Accounts on a pro rata basis. If the Contract Value in the Variable Sub-Accounts is not sufficient to cover the charge, we will deduct the remaining charge from the Guarantee Periods, beginning with the oldest Guarantee Period. On the first Contract Anniversary after we issue the Rider, we will deduct the Rider charge pro rated to reflect the number of complete months the Rider was in effect during such Contract Year. Also, if you surrender your Contract, we will deduct the Rider charge (multiplied by the Contract Value immediately prior to the surrender) pro rated to reflect the number of complete months the Rider was in effect during the current Contract Year. ADMINISTRATIVE EXPENSE CHARGE We deduct an administrative expense charge daily at an annual rate of 0.10% of the average daily net assets you have invested in the Variable Sub-Accounts. We intend this charge to cover actual administrative expenses that exceed the revenues from the contract maintenance charge. There is no necessary relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributed to that Contract. We assess this charge each day during the Accumulation Phase and the Payout Phase. We guarantee that we will not raise this charge. 27 PROSPECTUS WITHDRAWAL CHARGE (ALLSTATE PROVIDER ULTRA and ALLSTATE PROVIDER EXTRA CONTRACTS only) We may assess a withdrawal charge from the purchase payment(s) you withdraw. The amount of the charge will depend on the number of Contract Years that have elapsed since we received the purchase payment being withdrawn. The Contracts differ in the following respects: ALLSTATE PROVIDER ULTRA CONTRACTS We may assess a withdrawal charge of up to 7% of the purchase payment(s) you withdraw. The charge declines to 0% over a 7 year period that begins on the day we receive your payment. Beginning on January 1, 2004, if you make a withdrawal before the Payout Start Date, we will apply the withdrawal charge percentage in effect on the date of the withdrawal, or the withdrawal charge percentage in effect on the following day, whichever is lower. A schedule showing how the charge declines is shown on page __. During each Contract Year, you can withdraw up to 15% of your purchase payments without paying the charge. Unused portions of this "Free Withdrawal Amount" are not carried forward to future Contract Years. We will deduct withdrawal charges, if applicable, from the amount paid. ALLSTATE PROVIDER EXTRA CONTRACTS We may assess a withdrawal charge of up to 8% of the purchase payment(s) you withdraw. The charge declines to 0% over an 8 year period that begins on the day we receive your payment. Beginning on January 1, 2004, if you make a withdrawal before the Payout Start Date, we will apply the withdrawal charge percentage in effect on the date of the withdrawal, or the withdrawal charge percentage in effect on the following day, whichever is lower. A schedule showing how the charge declines is shown on page 10. During each Contract Year, you can withdraw up to 15% of your purchase payments, excluding Credit Enhancements, without paying the charge. Unused portions of this "Free Withdrawal Amount" are not carried forward to future Contract Years. We will deduct withdrawal charges, if applicable, from the amount paid. Credit Enhancements are not considered purchase payments when determining the Free Withdrawal Amount. BOTH ALLSTATE PROVIDER ULTRA AND ALLSTATE PROVIDER EXTRA CONTRACTS For purposes of calculating the withdrawal charge, we will treat withdrawals as coming from the oldest purchase payments first. However, for federal income tax purposes, please note that withdrawals are considered to have come first from earnings, which means you pay taxes on the earnings portion of your withdrawal. We do not apply a withdrawal charge in the following situations: . on the Payout Start Date (a withdrawal charge may apply if you terminate income payments to be received for a specified period); . withdrawals taken to satisfy IRS minimum distribution rules for the Contract; or . withdrawals that qualify for one of the waivers as described below. We use the amounts obtained from the withdrawal charge to pay sales commissions and other promotional or distribution expenses associated with marketing the Contracts, and to help defray the cost of the Credit Enhancement for the ALLSTATE PROVIDER EXTRA CONTRACTS. To the extent that the withdrawal charge does not cover all sales commissions and other promotional or distributional expenses, or the cost of the Credit Enhancement, we may use any of our corporate assets, including potential profit which may arise from the mortality and expense risk charge or any other charges or fees described above, to make up any difference. Withdrawals also may be subject to tax penalties or income tax and a Market Value Adjustment. You should consult your own tax counsel or other tax advisers regarding any withdrawals. TRANSFER FEE We do not currently impose a fee upon transfers among the investment alternatives. However, we reserve the right to charge $10 per transfer (up to 0.50% of the amount transferred for ALLSTATE PROVIDER EXTRA CONTRACTS) after the 12th transfer in each Contract Year. We will not charge a transfer fee on transfers that are part of a Dollar Cost Averaging or Automatic Portfolio Rebalancing Program. CONFINEMENT WAIVER. We will waive the withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), and a negative Market Value Adjustment, if applicable, will not occur on all withdrawals taken prior to the Payout Start Date under your Contract if the following conditions are satisfied: 1) You or the Annuitant, if the Contract owner is not a natural person, are confined to a long term care facility or a hospital for at least 90 consecutive days. You or the Annuitant must enter the long term care facility or hospital at least 30 days after the Issue Date; 2) You request the withdrawal and provide written proof of the stay no later than 90 days following the end of your or the Annuitant's stay at the long term care facility or hospital; and 3) A physician must have prescribed the stay and the stay must be medically necessary (as defined in the Contract). You may not claim this benefit if you, the Annuitant, or a member of your or the Annuitant's immediate family, is the physician prescribing your or the Annuitant's stay in a long term care facility. 28 PROSPECTUS TERMINAL ILLNESS WAIVER. We will waive the withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), and a negative Market Value Adjustment, if applicable, will not occur on all withdrawals taken prior to the Payout Start Date under your Contract if: 1. you or the Annuitant (if the Contract owner is not a natural person) are first diagnosed with a terminal illness at least 30 days after the Issue Date; and 2. you claim this benefit and deliver adequate proof of diagnosis to us. UNEMPLOYMENT WAIVER. We will waive the withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), and a negative Market Value Adjustment, if applicable, will not occur on one partial or a full withdrawal taken prior to the Payout Start Date under your Contract, if you meet the following requirements: 1. you or the Annuitant, (if the Contract owner is not a natural person), become unemployed at least one year after the Issue Date; 2. you or the Annuitant, (if the Contract owner is not a natural person), receive unemployment compensation as defined in the Contract for at least 30 days as a result of that unemployment; and 3. you or the Annuitant, (if the Contract owner is not a natural person), claim this benefit within 180 days of your or the Annuitant's initial receipt of unemployment compensation. Please refer to your Contract for more detailed information about the terms and conditions of these waivers. The laws of your state may limit the availability of these waivers and may also change certain terms and/or benefits available under the waivers. You should consult your Contract for further details on these variations. Also, even if you do not need to pay a withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), or a Market Value Adjustment because of these waivers, you still may be required to pay taxes or tax penalties on the amount withdrawn. You should consult your tax adviser to determine the effect of a withdrawal on your taxes. PREMIUM TAXES Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. We are responsible for paying these taxes and will deduct them from your Contract Value. Some of these taxes are due when the Contract is issued, others are due when income payments begin or upon surrender. Our current practice is not to charge anyone for these taxes until income payments begin or when a total withdrawal occurs, including payment upon death. At our discretion, we may discontinue this practice and deduct premium taxes from the purchase payments. Premium taxes generally range from 0% to 4%, depending on the state. At the Payout Start Date, if applicable, we deduct the charge for premium taxes from each investment alternative in the proportion that the Contract value in the investment alternative bears to the total Contract Value. DEDUCTION FOR SEPARATE ACCOUNT INCOME TAXES We are not currently maintaining a provision for taxes. In the future, however, we may establish a provision for taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Variable Account. We will deduct for any taxes we incur as a result of the operation of the Variable Account, whether or not we previously made a provision for taxes and whether or not it was sufficient. Our status under the Internal Revenue Code is briefly described in the Taxes section. OTHER EXPENSES Each Portfolio deducts advisory fees and other expenses from its assets. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Variable Sub-Accounts. These fees and expenses are described in the accompanying prospectuses for the Funds. For a summary of maximum or minimum Portfolio annual expenses, see page 23. We may receive compensation from the investment advisers or administrators of the Portfolios in connection with the administrative distribution and/or other services we provide to the Portfolios. 29 PROSPECTUS ACCESS TO YOUR MONEY -------------------------------------------------------------------------------- You can withdraw some or all of your Contract Value at any time prior to the Payout Start Date. Withdrawals also are available under limited circumstances on or after the Payout Start Date. See "Income Plans" on page 31. The amount payable upon withdrawal is the Contract Value (or portion thereof) next computed after we receive the request for a withdrawal at our home office, adjusted by any Market Value Adjustment less any withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only), contract maintenance charges, Enhanced Earnings Death Benefit Rider fee (if applicable), income tax withholding, and any premium taxes. We will pay withdrawals from the Variable Account within 7 days of receipt of the request, subject to postponement in certain circumstances. You can withdraw money from the Variable Account or the Fixed Account Options. To complete a partial withdrawal from the Variable Account, we will cancel Accumulation Units in an amount equal to the withdrawal and any applicable withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only) and premium taxes. You must name the investment alternative from which you are taking the withdrawal. If none is specified, we will deduct your withdrawal pro-rata from the Variable Sub-Accounts according to the value of your investments therein. In general, you must withdraw at least $50 at a time. You also may withdraw a lesser amount if you are withdrawing your entire interest in a Variable Sub-Account. If you request a total withdrawal, we may require you to return your Contract to us. Withdrawals taken prior to annuitization (referred to in this prospectus as the Payout Phase) are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. POSTPONEMENT OF PAYMENTS We may postpone the payment of any amounts due from the Variable Account under the Contract if: 1. The New York Stock Exchange is closed for other than usual weekends or holidays, or trading on the Exchange is otherwise restricted; 2. An emergency exists as defined by the SEC; or 3. The SEC permits delay for your protection. In addition, we may delay payments or transfers from the Fixed Account Options for up to 6 months (or shorter period if required by law). If we delay payment for 30 days or more, we will pay interest as required by law. SYSTEMATIC WITHDRAWAL PROGRAM You may choose to receive systematic withdrawal payments on a monthly, quarterly, semi-annual, or annual basis at any time prior to the Payout Start Date. The minimum amount of each systematic withdrawal is $50. At our discretion, systematic withdrawals may not be offered in conjunction with the Dollar Cost Averaging Program or Automatic Portfolio Rebalancing Program. Depending on fluctuations in the value of the Variable Sub-Accounts and the value of the Fixed Account Options, systematic withdrawals may reduce or even exhaust the Contract Value. Please consult your tax advisor before taking any withdrawal. We will make systematic withdrawal payments to you or your designated payee. At our discretion, we may modify or suspend the Systematic Withdrawal Program and charge a processing fee for the service. If we modify or suspend the Systematic Withdrawal Program, existing systematic withdrawal payments will not be affected. MINIMUM CONTRACT VALUE If your request for a partial withdrawal would reduce your Contract Value to less than $2,000, we may treat it as a request to withdraw your entire Contract Value. Your Contract will terminate if you withdraw all of your Contract Value. We will, however, ask you to confirm your withdrawal request before terminating your Contract. Before terminating any Contract whose value has been reduced by withdrawals to less than $2,000, we would inform you in writing of our intention to terminate your Contract and give you at least 30 days in which to make an additional purchase payment to restore your Contract's value to the contractual minimum of $2,000. If we terminate your Contract, we will distribute to you its Contract Value, adjusted by any applicable Market Value Adjustment, less any withdrawal charges (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only) and any other applicable charges and taxes. 30 PROSPECTUS INCOME PAYMENTS -------------------------------------------------------------------------------- PAYOUT START DATE You select the Payout Start Date in your application. The Payout Start Date is the day that we apply your money to an Income Plan. The Payout Start Date must be: . at least 30 days after the Issue Date; and . no later than the day the Annuitant reaches age 90, or the 10th Contract Anniversary, if later. You may change the Payout Start Date at any time by notifying us in writing of the change at least 30 days before the scheduled Payout Start Date. Absent a change, we will use the Payout Start Date stated in your Contract. INCOME PLANS An Income Plan is a series of scheduled payments to you or someone you designate. You may choose and change your choice of Income Plan until 30 days before the Payout Start Date. If you do not select an Income Plan, we will make income payments in accordance with Income Plan 1 with guaranteed payments for 10 years. After the Payout Start Date, you may not make withdrawals (except as described below) or change your choice of Income Plans. A portion of each payment will be considered taxable and the remaining portion will be a non-taxable return of your investment in the Contract, which is also called the "basis". Once the investment in the Contract is depleted, all remaining payments will be fully taxable. If the Contract is tax-qualified, generally, all payments will be fully taxable. Taxable payments taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. Three Income Plans are available under the Contract. Each is available to provide: . fixed income payments; . variable income payments; or . a combination of the two. The three Income Plans are: INCOME PLAN 1 - LIFE INCOME WITH GUARANTEED PAYMENTS. Under this plan, we make periodic income payments for at least as long as the Annuitant lives. If the Annuitant dies before we have made all of the guaranteed income payments, we will continue to pay the remainder of the guaranteed income payments as required by the Contract. INCOME PLAN 2 - JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED PAYMENTS. Under this plan, we make periodic income payments for at least as long as either the Annuitant or the joint Annuitant is alive. If both the Annuitant and the joint Annuitant die before we have made all of the guaranteed income payments, we will continue to pay the remainder of the guaranteed income payments as required by the Contract. INCOME PLAN 3 - GUARANTEED PAYMENTS FOR A SPECIFIED PERIOD (5 YEARS TO 30 YEARS). Under this plan, we make periodic income payments for the period you have chosen. These payments do not depend on the Annuitant's life. You may elect to receive guaranteed payments for periods ranging from 5 to 30 years. Income payments for less than 120 months may be subject to a withdrawal charge (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only). We will deduct the mortality and expense risk charge from the Variable Sub-Account assets that support variable income payments even though we may not bear any mortality risk. The length of any guaranteed payment period under your selected Income Plan generally will affect the dollar amounts of each income payment. As a general rule, longer guarantee periods result in lower income payments, all other things being equal. For example, if you choose an Income Plan with payments that depend on the life of the Annuitant but with no minimum specified period for guaranteed payments, the income payments generally will be greater than the income payments made under the same Income Plan with a minimum specified period for guaranteed payments. If you choose Income Plan 1 or 2, or, if available, another Income Plan with payments that continue for the life of the Annuitant or joint Annuitant, we may require proof of age and sex of the Annuitant or joint Annuitant before starting income payments, and proof that the Annuitant or joint Annuitant are alive before we make each payment. Please note that under such Income Plans, if you elect to take no minimum guaranteed payments, it is possible that the payee could receive only 1 income payment if the Annuitant and any joint Annuitant both die before the second income payment, or only 2 income payments if they die before the third income payment, and so on. Generally, you may not make withdrawals after the Payout Start Date. One exception to this rule applies if you are receiving variable income payments that do not depend on the life of the Annuitant (such as under Income Plan 3). In that case, you may terminate all or part of the income payments at any time and receive a lump sum equal to their present value as of the close of the Valuation Date on which we receive your request. To determine the present value of any remaining variable income payments being withdrawn, we use a discount rate equal to the assumed annual investment rate that we use to compute such variable income payments. To determine the present value of any fixed income payments being currently applicable interest rates. The minimum amount you may withdraw under this feature is $1,000. A withdrawal charge may apply (ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS only). 31 PROSPECTUS We deduct applicable premium taxes from the Contract Value at the Payout Start Date. We may make other Income Plans available. You must apply at least the Contract Value in the Fixed Account on the Payout Start Date to fixed income payments. If you wish to apply any portion of your Fixed Account balance to provide variable income payments, you should plan ahead and transfer that amount to the Variable Sub-Accounts prior to the Payout Start Date. If you do not tell us how to allocate your Contract Value among fixed and variable income payments, we will apply your Contract Value in the Variable Account to variable income payments and your Contract Value in the Fixed Account to fixed income payments. You may restrict income payments to Beneficiaries by providing us a written request. Once we accept the written request, the change or restriction will take effect as of the date you signed the request. Any change is subject to any payment we make or other action we take before we accept the change. We will apply your Contract Value, adjusted by any applicable Market Value Adjustment, less applicable taxes to your Income Plan on the Payout Start Date. If the amount available to apply under an Income Plan is less than $2,000, or not enough to provide an initial payment of at least $20, and state law permits, we may: . pay you the Contract Value, adjusted by any applicable Market Value Adjustment and less any applicable taxes, in a lump sum instead of the periodic payments you have chosen; or . reduce the frequency of your payments so that each payment will be at least $20. VARIABLE INCOME PAYMENTS The amount of your variable income payments depends upon the investment results of the Variable Sub-Accounts you select, the premium taxes you pay, the age and sex of the Annuitant, and the Income Plan you choose. We guarantee that the payments will not be affected by (a) actual mortality experience and (b) the amount of our administration expenses. We cannot predict the total amount of your variable income payments. Your variable income payments may be more or less than your total purchase payments because (a) variable income payments vary with the investment results of the underlying Portfolios; and (b) the Annuitant could live longer or shorter than we expect based on the tables we use. In calculating the amount of the periodic payments in the annuity tables in the Contract, we assumed an annual investment rate of 3%. If the actual net investment return of the Variable Sub-Accounts you choose is less than this assumed investment rate, then the dollar amount of your variable income payments will decrease. The dollar amount of your variable income payments will increase, however, if the actual net investment return exceeds the assumed investment rate. The dollar amount of the variable income payments stays level if the net investment return equals the assumed investment rate. Please refer to the Statement of Additional Information for more detailed information as to how we determine variable income payments. We reserve the right to make other assumed investment rates available under each Contract. FIXED INCOME PAYMENTS We guarantee income payment amounts derived from any Fixed Account Option for the duration of the Income Plan. We calculate the fixed income payments by: 1. adjusting the portion of the Contract Value in any Fixed Account Option on the Payout Start Date by any applicable Market Value Adjustment; 2. deducting any applicable premium tax; and 3. applying the resulting amount to the greater of (a) the appropriate value from the income payment table in your Contract or (b) such other value as we are offering at that time. We may defer making fixed income payments for a period of up to 6 months or any shorter time state law may require. If we defer payments for 30 days or more, we will pay interest as required by law from the date we receive the withdrawal request to the date we make payment. INCOME BENEFIT RIDER QUALIFICATIONS. For Contract Owners and Annuitants up to and including age 75, the Income Benefit Rider is an optional benefit that you may elect. To qualify for the income benefit payments under this Rider, you must meet the following requirements as of the Payout Start Date: . You must elect a Payout Start Date that is on or after the 10th anniversary of the date this Rider was made a part of your Contract ("RIDER DATE"); . The Payout Start Date must be prior to the oldest Annuitant's 90th birthday; . The Payout Start Date must occur during the 30 day period following a Contract Anniversary; . You must elect to receive fixed income payments, which will be calculated using the guaranteed payout rates listed in your Contract; and . The Income Plan you selected must provide for payments guaranteed for either a single life or joint lives with a specified period of at least: . 10 years, if the youngest Annuitant's age is 80 or less on the Payout Start Date, or . 5 years, if the youngest Annuitant's age is greater than 80 on the Payout Start Date. If, however, you apply the Contract Value and not the Income Benefit to an Income Plan, then you may select fixed and/or variable income payments under any Income 32 PROSPECTUS Plan we offer at that time. If you expect to apply your Contract Value to variable and/or fixed income payment options, or you expect to apply your Contract Value to current annuity payment rates then in effect, electing the Income Benefit Rider may not be appropriate. Prior to the Payout Start Date, the Income Benefit Rider will terminate and charges for this Rider will cease when the Contract terminates. The mortality and expense risk charge for this Rider will cease on the Payout Start Date. ALLSTATE PROVIDER ULTRA CONTRACTS ONLY: The Income Benefit Rider will no longer be in effect and the mortality and expense charge for the Rider will end upon the change of the named Annuitant for reasons other than death. INCOME BASE The Income Base is used solely for the purpose of calculating the guaranteed income benefit under this Rider ("Guaranteed Income Benefit") and does not provide a Contract Value or guarantee performance of any investment option. On the Rider Date, the Income Base is equal to the Contract Value. After the Rider Date, the Income Base plus any subsequent purchase payments (and Credit Enhancements for Allstate Provider Extra Contracts) and less a withdrawal adjustment (described below) for any subsequent withdrawals will accumulate daily at a rate equivalent to 5% per year until the earlier of the Payout Start Date, or the first day of the month after the oldest Contract owner's (Annuitant, if the Contract owner is not a natural person) 85th birthday. WITHDRAWAL ADJUSTMENT The withdrawal adjustment is equal to (a) divided by (b), with the result multiplied by (c) where: (a) = the withdrawal amount (b) = the Contract Value immediately prior to the withdrawal, and (c) = the most recently calculated Income Base. The Guaranteed Income Benefit amount is determined by applying the Income Base less any applicable taxes to the guaranteed rates for the Income Plan you elect. The Income Plan you elect must satisfy the conditions described on page _____. On the Payout Start Date, the income payment will be the greater of the Guaranteed Income Benefit or the income payment provided in the payout phase section of your Contract. CERTAIN EMPLOYEE BENEFIT PLANS The Contracts offered by this prospectus contain income payment tables that provide for different payments to men and women of the same age, except in states that require unisex tables. We reserve the right to use income payment tables that do not distinguish on the basis of sex to the extent permitted by applicable law. In certain employment-related situations, employers are required by law to use the same income payment tables for men and women. Accordingly, if the Contract is to be used in connection with an employment-related retirement or benefit plan and we do not offer unisex annuity tables in your state, you should consult with legal counsel as to whether the purchase of a Contract is appropriate. DEATH BENEFITS -------------------------------------------------------------------------------- We will pay a death benefit prior to the Payout Start Date on: 1. the death of any Contract owner or, 2. the death of the Annuitant, if the Contract is owned by a non-natural person. We will pay the death benefit to the new Contract owner as determined immediately after the death. The new Contract owner would be a surviving Contract owner or, if none, the Beneficiary(ies). In the case of the death of the Annuitant, we will pay the death benefit to the current Contract owner. We will determine the value of the death benefit as of the end of the Valuation Date on which we receive a complete request for settlement of the death benefit. If we receive a request after 3 p.m. Central Time on a Valuation Date, we will process the request as of the end of the following Valuation Date. Where there are multiple Beneficiaries, we will only value the death benefit at the time the first Beneficiary submits the necessary documentation in good order. Any death benefit amounts attributable to any Beneficiary that remain in the investment alternatives are subject to investment risk. A complete request for payment of the death benefit must include DUE PROOF OF DEATH. We will accept the following documentation as "Due Proof of Death": . a certified copy of a death certificate, . a certified copy of a decree of a court of competent jurisdiction as to the finding of death, or . any other proof acceptable to us. DEATH BENEFIT AMOUNT. Prior to the Payout Start Date, if we receive a complete request for settlement of the death benefit within 180 days of the date of death, the death benefit is equal to the greatest of: 1. the Contract Value as of the date we determine the value of the death benefit, or 2. the SETTLEMENT VALUE (that is, the amount payable on a full withdrawal of Contract Value) on the date we determine the value of the death benefit, or 33 PROSPECTUS the highest amount computed by taking the Contract Value on each DEATH BENEFIT ANNIVERSARY prior to the date we determine the death benefit, increased by purchase payments (and Credit Enhancements for ALLSTATE PROVIDER EXTRA CONTRACTS) made since that Death Benefit Anniversary and reduced by an adjustment for any partial withdrawals since that Death Benefit Anniversary. A "Death Benefit Anniversary" is every seventh Contract Anniversary beginning with the Issue Date. For example, the Issue Date, 7th and 14th Contract Anniversaries are the first 3 Death Benefit Anniversaries. In calculating the Settlement Value when a death benefit is paid, the amount in each individual Guarantee Period may be subject to a Market Value Adjustment. A Market Value Adjustment will apply to amounts in a Guarantee Period, unless we calculate the Settlement Value during the 30-day period after the expiration of the Guarantee Period. Also, the Settlement Value will reflect the deduction of any applicable withdrawal charges, contract maintenance charges, and premium taxes. Contract maintenance charges will be pro-rated for the part of the Contract Year elapsed as of the date we determine the Settlement Value, unless your Contract qualifies for a waiver of such charges as described under "Expenses - Contract Maintenance Charge" on page 27. The withdrawal adjustment is equal to (a) divided by (b), with the result multiplied by (c), where: (a) = is the withdrawal amount; (b) = is the Contract Value immediately prior to the withdrawal; and (c) = is the Contract Value on the Death Benefit Anniversary adjusted by any prior purchase payments (and Credit Enhancements for Allstate Provider Extra Contracts) or withdrawals made since that Anniversary. If we do not receive a complete request for settlement of the death benefit within 180 days of the date of death, the death benefit is equal to the greater of: 1) the Contract Value as of the date we determine the death benefit, or 2) the Settlement Value as of the date we determine the death benefit. We reserve the right to extend the 180-day period on a non-discriminatory basis. ENHANCED DEATH BENEFIT RIDER For Contract owners and Annuitants up to and including age 80 as of the date we receive the completed application or a written request to add this rider, whichever is later ("Rider Application Date"), the Enhanced Death Benefit Rider is an optional benefit that you may elect. If the Contract owner is a natural individual, the Enhanced Death Benefit applies only upon the death of the Contract owner. If the Contract owner is not a natural individual, the Enhanced Death Benefit applies only upon the death of the Annuitant. For Contracts with the Enhanced Death Benefit Rider, the death benefit will be the greatest of (1) through (3) above, or (4) the Enhanced Death Benefit. The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit A or Enhanced Death Benefit B. Enhanced Death Benefit A or B may not be available in all states. The Enhanced Death Benefit will never be greater than the maximum death benefit allowed by any state nonforfeiture laws that govern the Contract. If we do not receive a complete request for settlement of the death benefit within 180 days of the date of death, the Enhanced Death Benefit will not apply and the death benefit is equal to the greater of: 1) the Contract Value as of the date we determine the death benefit, or 2) the Settlement Value as of the date we determine the death benefit. If the Owner is a natural person, the Enhanced Death Benefit is payable and the Rider will terminate and the mortality and expense charge for the Rider will cease upon the death of the Owner, unless the Contract and Rider are continued as permitted by a surviving spouse, as described below. If the Owner is a non-natural person, the Enhanced Death Benefit is payable and the Rider will terminate and charges for the Rider will cease upon the death of the Annuitant. The Enhanced Death Benefit Rider and charges for the Rider will terminate: . when the Contract owner is changed for reasons other than death; . if the Contract owner is a non-natural person, when the Annuitant is changed for reasons other than death; or . on the Payout Start Date. The Rider may not be available in all states. We may discontinue the offering of the Rider at any time. ENHANCED DEATH BENEFIT A. On the date we issue the Rider ("RIDER DATE"), Enhanced Death Benefit A is equal to the Contract Value on that date. On each Contract Anniversary, we will recalculate your Enhanced Death Benefit A to equal the greater of your Contract Value on that date, or the most recently calculated Enhanced Death Benefit A. We also will recalculate your Enhanced Death Benefit A whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Enhance Death Benefit A dollar-for-dollar by the amount of the purchase payment (plus Credit Enhancement for ALLSTATE PROVIDER EXTRA CONTRACTS). Withdrawals will reduce the Enhanced Death Benefit A by an amount equal to a withdrawal adjustment computed in the manner described below. We will calculate Anniversary Values for each Contract Anniversary up until the earlier of: . the date we determine the death benefit; or 34 PROSPECTUS . the first Contract Anniversary following the oldest Contract owner's or, if the Contract owner is not a natural person, the Annuitant's 80th birthday, or the first day of the 61st month following the Rider Date, whichever is later. After age 80, or the first day of the 61st month following the Rider Date, whichever is later, we will recalculate the Enhanced Death Benefit A only for purchase payments and withdrawals. The withdrawal adjustment is equal to (a) divided by (b), and the result multiplied by (c) where: (a) = is the withdrawal amount, (b) = is the Contract Value immediately prior to the withdrawal, and (c) = the most recently calculated Enhanced Death Benefit A. ENHANCED DEATH BENEFIT B. The Enhanced Death Benefit B on the Rider Date is equal to the Contract Value on that date. After the Rider Date, the Enhanced Death Benefit B, plus any subsequent purchase payments (and Credit Enhancements under ALLSTATE PROVIDER EXTRA CONTRACTS) and less a withdrawal adjustment, as described below, will accumulate daily at a rate equivalent to 5% per year until the earlier of: . the date we determine the death benefit; or . the first day of the month following the oldest Contract owner's or, if the Contract owner is not a natural person, the Annuitant's 80th birthday, or the first day of the 61st month following the Rider Date, whichever is later. The withdrawal adjustment is equal to (a) divided by (b), and the result multiplied by (c) where: (a) = the withdrawal amount, (b) = is the Contract Value immediately prior to the withdrawal, and (c) = is the most recently calculated Enhanced Death Benefit B. After age 80, or the first day of the 61st month following the Rider Date, whichever is later, we will recalculate the Enhanced Death Benefit B only for purchase payments and withdrawals. SPOUSAL CONTINUATION UNDER ALLSTATE PROVIDER ADVANTAGE CONTRACTS AND ALLSTATE PROVIDER EXTRA CONTRACTS. If you elected the Enhanced Death Benefit Rider, and your spouse continues the Contract as described above, the Enhanced Death Benefit Rider and the mortality and expense risk charge for this Rider will terminate if your spouse is over age 80 on the date the Contract is continued. If the Enhanced Death Benefit Rider does continue, then the following conditions will apply: . The Contract Value on the date the Contract is continued will equal the death benefit amount; . Enhanced Death Benefit A will continue to be recalculated for purchase payments, withdrawals, and on Contract Anniversaries after the date the Contract is continued until the earlier of: 1. the first Contract Anniversary after the oldest new Owner's 80th birthday. After age 80, the Enhanced Death Benefit A will be recalculated only for purchase payments and withdrawals; or 2. the date we determine the death benefit; unless the deceased Owner was age 80 or older on the date of death. In this case, the Enhanced Death Benefit A will be recalculated only for purchase payments and withdrawals after the date the Contract is continued. . The amount of the Enhanced Death Benefit B as of the date the Contract is continued and any subsequent purchase payments (and Credit Enhancements under ALLSTATE PROVIDER EXTRA CONTRACTS) and less any subsequent withdrawal adjustments will accumulate daily at a rate equivalent to 5% per year after the date the Contract is continued, until the earlier of: 1. the first day of the month following the oldest new Owner's 80th birthday. After age 80, the Enhanced Death Benefit B will be recalculated only for purchase payments and withdrawals; or 2. the date we determine the death benefit; unless the deceased Owner was age 80 or older on the date of death. In this case, the Enhanced Death Benefit B will be recalculated only for purchase payments and withdrawals after the date the Contract is continued. SPOUSAL CONTINUATION UNDER ALLSTATE PROVIDER ULTRA CONTRACTS. If you elected the Enhanced Death Benefit Rider, and your spouse continues the Contract as described above, on the date the Contract is continued, the Rider Date will be reset to the date the Contract is continued. ENHANCED EARNINGS DEATH BENEFIT RIDER For Contract owners and Annuitants up to and including age 75 as of the Rider Application Date, the Enhanced Earnings Death Benefit Rider is an optional benefit that you may elect. The Rider may not be available in all states. We may discontinue the offering of the Rider at any time. If the Contract owner is a natural person, the Enhanced Earnings Death Benefit Rider applies only upon the death of the Contract owner. If the Contract owner is not a natural individual, the Enhanced Earnings Death Benefit Rider applies only upon the death of the Annuitant. If the Owner is a natural person, the Enhanced Earnings Death Benefit is payable and the Rider will terminate and the annual charge for the Rider will cease upon the death of the Owner, unless the Contract and Rider are continued as permitted by a 35 PROSPECTUS surviving spouse, as described below. If the Owner is a non-natural person, the Enhanced Earnings Death Benefit is payable and the Rider will terminate and the annual charge for the Rider will cease upon the death of the Annuitant. The Enhanced Earnings Death Benefit Rider and the annual charge for the rider will terminate: . when the Contract owner is changed for reasons other than death; . if your spouse continues the Contract as described below, and the oldest new Contract owner (your spouse in the case of ALLSTATE PROVIDER ULTRA CONTRACTS) is over age 75 on the date the Contract is continued, (or if your spouse elects to terminate the Rider). . if the Contract owner is a non-natural person, when the Annuitant is changed for reasons other than death or when the Annuitant dies; or . on the Payout Start Date. ALLSTATE PROVIDER ADVANTAGE CONTRACTS AND ALLSTATE PROVIDER EXTRA CONTRACTS: Under the Enhanced Earnings Death Benefit Rider, if the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is age 55 or younger on the Rider Application Date, the death benefit is increased by: . The lesser of 80% of In-Force Premium (excluding purchase payments made after the Rider Date and in the twelve month period immediately preceding the death of the Owner, or Annuitant if the Owner is a non-natural person), or 40% of In-Force Earnings, calculated as of the date we receive due proof of death. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 56 and 65 on the Rider Application Date, the death benefit is increased by: . The lesser of 60% of In-Force Premium (excluding purchase payments made after the Rider Date and in the twelve month period immediately preceding the death of the Owner, or annuitant is the Owner is a non-natural person), or 30% of In-Force Earnings. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 66 and 75 on the Rider Application Date, the death benefit is increased by: . The lesser of 40% of In-Force Premium (excluding purchase payments made after the Rider Application Date and in the twelve month period immediately preceding the death of the Owner, or Annuitant if the Owner is a non-natural person), or 20% of In-Force Earnings, calculated as of the date we receive due proof of death. ALLSTATE PROVIDER ULTRA CONTRACTS: Under the Enhanced Earnings Death Benefit Rider, if the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is age 55 or younger on the Rider Application Date, the death benefit is increased by: . 40% of the lesser of 200% of In-Force Premium (excluding purchase payments made in the 12-month period immediately preceding the date of death) or the In-Force Earnings. ("In-Force Earnings" are referred to as "Death Benefit Earnings" in the ALLSTATE PROVIDER ULTRA CONTRACTS, but we use the term "In-Force Earnings" in this prospectus for convenience). If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 56 and 65 on the Rider Application Date, the death benefit is increased by: . 30% of the lesser of 200% of the In-Force Premium (excluding purchase payments made in the 12-month period immediately preceding the date of death) or the In-Force Earnings. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 66 and 75 on the Rider Application Date, the death benefit is increased by: . 20% of the lesser of 200% of the In-Force Premium (excluding purchase payments made in the 12-month period immediately preceding the date of death) or the In-Force earnings. ALL CONTRACTS: For purpose of calculating the Enhanced Earnings Death Benefit, the following definitions apply: In-Force Premium equals the Contract Value on the Rider Date plus all purchase payments made after the Rider Date less the sum of all Excess-of-Earnings Withdrawals after the Rider Date. If the Rider Date is the same as the Issue Date, then the Contract Value on the Rider Date is equal to your initial purchase payment. In-Force Earnings equal the Contract Value minus the In-Force Premium. The In-Force Earnings amount will never be less than zero. An Excess-of-Earnings Withdrawal is the amount of a withdrawal in excess of the In-Force Earnings in the Contract immediately prior to the withdrawal. We will calculate the Enhanced Earnings Death Benefit Rider as of the date we receive a complete request for settlement of the death benefit. We will pay the Enhanced Earnings Death Benefit with the death benefit as described under "Death Benefit Payments" below. SPOUSAL CONTINUATION. If you elected the Enhanced Earnings Death Benefit Rider, and your spouse continues the Contract as described below, the Enhanced Earnings Death Benefit Rider and the annual charge for this 36 PROSPECTUS Option will terminate if the oldest new Contract owner is over age 75 on the date the Contract is continued, or if your spouse elects to terminate the Rider. If the Enhanced Earnings Death Benefit Rider is not terminated, on the date the Contract is continued, the Rider Date for this Rider will be reset to the date the Contract is continued ("new Rider Date"). The age of the oldest Contract owner (surviving spouse for Allstate Provider Ultra Contracts) on the new Rider Date will be used to determine the Enhanced Earnings Death Benefit after the new Rider Date. Also, the age of the oldest Contract owner (surviving spouse for ALLSTATE PROVIDER ULTRA CONTRACTS) will be used to determine the annual charge for the Rider after the new Rider Date. The value of the Enhanced Earnings Death Benefit largely depends on the amount of earnings that accumulate under your Contract. If you expect to withdraw the earnings from your Contract Value, electing the Enhanced Earnings Death Benefit Rider may not be appropriate. For purposes of calculating the Enhanced Earnings Death Benefit, earnings are considered to be withdrawn first before purchase payments. Your financial advisor can help you decide if the Enhanced Earnings Death Benefit Rider is right for you. For examples of how the death benefit is calculated under the Enhanced Earnings Death Benefit Rider, see Appendix C. DEATH BENEFIT PAYMENTS If the sole new Contract Owner is your spouse, the new Contract Owner may: 1) elect to receive the death benefit in a lump sum, or 2) elect to apply the death benefit to an Income Plan. Payments from the Income Plan must begin within one year of the date of death and must be payable throughout: . the life of the new Contract Owner; . for a guaranteed number of payments from 5 to 50 years, but not to exceed the life expectancy of the new Contract Owner; or . over the life of the new Contract Owner with a guaranteed number of payments from 5 to 30 years but not to exceed the life expectancy of the new Contract Owner. If your spouse does not elect one of the options above the Contract will continue in the Accumulation Phase as if the death had not occurred. If the contract is continued in the Accumulation Phase, the following conditions apply: On the date the Contract is continued, the Contract Value will equal the amount of the death benefit as determined as of the end of the Valuation Date on which we received a complete request for settlement of the death benefit (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time). Unless otherwise instructed by the continuing spouse, the excess, if any, of the death benefit over the Contract Value will be allocated to the Sub-Accounts of the Variable Account. This excess will be allocated in proportion to your Contract Value in those Sub-Accounts as of the end of the Valuation Date on which we receive the complete request for settlement of the death benefit (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time), except that any portion of this excess attributable to the Fixed Account Options will be allocated to the money market Variable Sub-Account. Within 30 days of the date the Contract is continued, your surviving spouse may choose one of the following transfer alternatives without incurring a transfer fee: (i) transfer all or a portion of the excess among the Variable Sub-Accounts; (ii) transfer all or a portion of the excess into the Guarantee Maturity Fixed Account and begin a new Guarantee Period; or (iii) transfer all or a portion of the excess into a combination of Variable Sub-Accounts and the Guarantee Maturity Fixed Account. Any such transfer does not count as one of the free transfers allowed each Contract Year and is subject to any minimum allocation amount specified in your Contract. The surviving spouse may make a single withdrawal of any amount within one year of the date of your death without incurring a Market Value Adjustment or withdrawal charge. Only one spousal continuation is allowed under this Contract. If the new Contract Owner is not your spouse but is a natural person, or if there are multiple natural new Contract Owners, the new Contract Owner may: 1) elect to receive the death benefit in a lump sum, or 2) elect to apply the death benefit to an Income Plan. Payments from the Income Plan must begin within one year of the date of death and must be payable throughout: . the life of the new Contract Owner; . for a guaranteed number of payments from 5 to 50 years, but not to exceed the life expectancy of the new Contract Owner; or . over the life of the new Contract Owner with a guaranteed number of payments from 5 to 30 years but not to exceed the life expectancy of the new Contract Owner. If the new Contract Owner does not elect one of the options above then the new Contract Owner must receive the Contract Value payable within 5 years of your date of death. The Contract Value will equal the amount of the death benefit as determined as of the end of the Valuation Date on which we receive the complete request for settlement of the death benefit (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time). 37 PROSPECTUS Unless otherwise instructed by the new Contract Owner, the excess, if any, of the death benefit over the Contract Value will be allocated to the money market Variable Sub-Account. The new Contract Owner may exercise all rights as set forth in the Transfers section of the Contract during this 5 year period. No additional purchase payments may be added to the Contract under this election. Any withdrawal charges applicable under ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS will be waived for any withdrawals made during this 5 year period. If the new Contract Owner dies prior to the receiving all of the Contract Value, then the new Contract Owner's named beneficiary(ies) will receive the greater of the Settlement Value or the remaining Contract Value. This amount must be received as a lump sum within 5 years of the date of the original Contract Owner's death. If the new Contract Owner is a corporation, trust, or other non- natural person: (a) The new Contract Owner may elect to receive the death benefit in a lump sum; or (b) If the new Contract Owner does not elect the option above, then the new Contract Owner must receive the Contract Value payable within 5 years of your date of death. The Contract Value will equal the amount of the death benefit as determined as of the end of the Valuation Date on which we receive the complete request for settlement of the death benefit (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time). Unless otherwise instructed by the new Contract Owner, the excess, if any, of the death benefit over the Contract Value will be allocated to the money market Variable Sub-Account. The new Contract Owner may exercise all rights as set forth in the Transfers provision of the Contract during this 5 year period. No additional purchase payments may be added to the Contract under this election. Any withdrawal charges applicable under ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS will be waived during this 5 year period. We reserve the right to offer additional options upon the death of the Contract Owner. If any new Contract Owner is a non-natural person, all new Contract Owners will be considered to be non-natural persons for the above purposes. Under any of these options, all ownership rights, subject to any restrictions previously placed upon the Beneficiary, are available to the new Contract Owner from the date of your death to the date on which the death benefit is paid. DEATH OF ANNUITANT If the Annuitant who is not also the Contract owner dies prior to the Payout Start Date and the Contract owner is a living person, then the Contract will continue with a new Annuitant as described in the Annuitant provision above. If the Annuitant who is not also the Contract owner dies prior to the Payout Start Date and the Contract owner is a non-natural person, the following apply: (a) The Contract owner may elect to receive the death benefit in a lump sum; or (b) If the Contract owner does not elect the above option, then the Contract Owner must receive the Contract Value payable within 5 years of the Annuitant's date of death. The Contract Value will equal the amount of the death benefit as determined as of the end of the Valuation Date on which we receive the complete request for settlement of the death benefit (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time). Unless otherwise instructed by the Contract owner, the excess, if any, of the death benefit over the Contract Value will be allocated to the Money Market Variable Sub-Account. The Contract owner may then exercise all rights as set forth in the Transfers provision of the Contract during this 5 year period. No additional purchase payments may be added to the Contract under this election. Any withdrawal charges applicable under ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS will be waived during this 5 year period. We reserve the right to offer additional options upon the death of the Annuitant. Under any of these options, all ownership rights are available to the non-natural Contract Owner from the date of the Annuitant's death to the date on which the death benefit is paid. MORE INFORMATION -------------------------------------------------------------------------------- GLENBROOK LIFE Glenbrook Life is the issuer of the Contract. Glenbrook Life is a stock life insurance company originally organized under the laws of the State of Indiana in 1965. From 1965 to 1983 the Company was known as "United Standard Life Assurance Company" and from 1983 to 1992 the Company was known as "William Penn Life Assurance Company of America." In 1992, the Company was renamed Glenbrook Life and redomesticated to Illinois. In 1998, the Company was redomesticated to Arizona. 38 PROSPECTUS Glenbrook Life is licensed to operate in the District of Columbia and all states except New York. We intend to offer the Contract in those jurisdictions in which we are licensed. Our main administrative office is located at 3100 Sanders Road, Northbrook, Illinois 60062. Glenbrook Life is a wholly owned subsidiary of Allstate Life Insurance Company (Allstate Life), a stock life insurance company incorporated under the laws of the State of Illinois. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, a stock property-liability insurance company incorporated under the laws of the State of Illinois. All of the capital stock issued and outstanding of Allstate Insurance Company is owned by The Allstate Corporation. Glenbrook Life and Allstate Life entered into reinsurance agreements, under which Glenbrook Life reinsures all of its business with Allstate Life. Under the agreements, contract charges, credited interest, policy benefits and certain expenses under all general account contracts are reinsured with Allstate Life. Allstate Life is bound to stand behind Glenbrook Life's contractual obligations to its policyholders. However, the obligations of Allstate Life under the reinsurance agreements are to Glenbrook Life. Glenbrook Life continues to have primary responsibility as the direct insurer for risks reinsured. In addition, assets of Glenbrook Life that relate to insurance in-force, excluding Separate Accounts assets, are transferred to Allstate Life. Therefore, the funds necessary to support the operations of Glenbrook Life are provided by Allstate Life and Glenbrook Life is not required to obtain additional capital to support in-force or future business. Several independent rating agencies regularly evaluate life insurer claims paying ability, quality of investment portfolios and overall stability. A.M. Best Company assigns Glenbrook Life the rating of A+(r) (Superior). Standard & Poor's Insurance Rating Services assigns the rating of AA+ (very strong) to Glenbrook Life's claims-paying ability and Moody's Investors Service assigns an Aa2 (excellent) financial strength rating to Glenbrook Life. Glenbrook Life shares the same ratings from these rating agencies as those of its parent, Allstate Life, due to its reinsurance arrangements with Allstate Life. These ratings do not reflect the investment performance of the Variable Account. We may from time to time advertise these ratings in our sales literature. THE VARIABLE ACCOUNT Glenbrook established the Glenbrook Life Multi-Manager Variable Account on January 15, 1996. We have registered the Variable Account with the SEC as a unit investment trust. The SEC does not supervise the management of the Variable Account or Glenbrook. We own the assets of the Variable Account. The Variable Account is a segregated asset account under Arizona law. That means we account for the Variable Account's income, gains and losses separately from the results of our other operations. It also means that only the assets of the Variable Account that are in excess of the reserves and other Contract liabilities with respect to the Variable Account are subject to liabilities relating to our other operations. Our obligations arising under the Contracts are general corporate obligations of Glenbrook. The Variable Account consists of multiple Variable Sub-Accounts. Each Variable Sub-Account invests in a corresponding Portfolio. We may add new Variable Sub-Accounts or eliminate one or more of them, if we believe marketing, tax, or investment conditions so warrant. We may also add other Variable Sub-Accounts that may be available under other variable annuity contracts. We do not guarantee the investment performance of the Variable Account, its Sub-Accounts or the Portfolios. We may use the Variable Account to fund our other annuity contracts. We will account separately for each type of annuity contract funded by the Variable Account. THE PORTFOLIOS DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolio at their net asset value. VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Variable Sub-Accounts to which you have allocated your Contract Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. Based on our present view of the law, we will vote the shares of the Portfolios that we hold directly or indirectly through the Variable Account in accordance with instructions that we receive from Contract owners entitled to give such instructions. As a general rule, before the Payout Start Date, the Contract owner or anyone with a voting interest is the person entitled to give voting instructions. The number of shares that a person has a right to instruct will be determined by dividing the Contract Value allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. After the Payout Start Date the person receiving income payments has the voting interest. The payee's number of votes will be determined by dividing the reserve for such Contract allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio. The votes decrease as income payments are made and as the reserves for the Contract decrease. We will vote shares attributable to Contracts for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine that we may vote such shares in our own discretion. We will apply voting instructions to abstain on any item to be voted upon on a pro-rata basis to reduce the votes eligible to be cast. We reserve the right to vote Portfolio shares as we see fit without regard to voting instructions to the extent 39 PROSPECTUS permitted by law. If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report we send to you. CHANGES IN PORTFOLIOS. If the shares of any of the Portfolios are no longer available for investment by the Variable Account or if, in our judgment, further investment in such shares is no longer desirable in view of the purposes of the Contract, we may eliminate that Portfolio and substitute shares of another eligible investment fund. Any substitution of securities will comply with the requirements of the Investment Company Act of 1940. We also may add new Variable Sub-Accounts that invest in additional mutual funds. We will notify you in advance of any change. CONFLICTS OF INTEREST. Certain of the Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. The boards of directors of these Portfolios monitor for possible conflicts among separate accounts buying shares of the Portfolios. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, a Portfolio's board of directors may require a separate account to withdraw its participation in a Portfolio. A Portfolio's net asset value could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. THE CONTRACT DISTRIBUTION. ALFS, Inc. ("ALFS"), located at 3100 Sanders Road, Northbrook, IL 60062-7154, serves as principal underwriter of the Contracts. ALFS is a wholly owned subsidiary of Allstate Life. ALFS is a registered broker dealer under the Securities and Exchange Act of 1934, as amended ("EXCHANGE ACT"), and is a member of the NASD, Inc. We will pay commissions to broker-dealers who sell the contracts. Commissions paid may vary, but we estimate that the total commissions paid on all Contract sales will not exceed 8.5% of all purchase payments. These commissions are intended to cover distribution expenses. Sometimes, we also pay the broker-dealer a persistency bonus in addition to the standard commissions. A persistency bonus is not expected to exceed 1.00%, on an annual basis, of the Contract Values considered in connection with the bonus. In some states, Contracts may be sold by representatives or employees of banks which may be acting as broker-dealers without separate registration under the Exchange Act, pursuant to legal and regulatory exceptions. Glenbrook does not pay ALFS a commission for distribution of the Contracts. The underwriting agreement with ALFS provides that we will reimburse ALFS for any liability to Contract owners arising out of services rendered or Contracts issued. ADMINISTRATION. We have primary responsibility for all administration of the Contracts and the Variable Account. We provide the following administrative services, among others: . issuance of the Contracts; . maintenance of Contract owner records; . Contract owner services; . calculation of unit values; . maintenance of the Variable Account; and . preparation of Contract owner reports. We will send you Contract statements and transaction confirmations at least annually. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we reserve the right to make the adjustment as of the date that we receive notice of the potential error. We also will provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws. QUALIFIED PLANS If you use the Contract within a qualified plan, the plan may impose different or additional conditions or limitations on withdrawals, waiver of withdrawal charges (if applicable), death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if qualified plan limits on distributions and other conditions are not met. Please consult your qualified plan administrator for more information. LEGAL MATTERS Foley & Lardner, Washington, D.C., has advised Glenbrook on certain federal securities law matters. All matters of state insurance law pertaining to the Contracts, including the validity of the Contracts and Glenbrook's right to issue such Contracts under state insurance law, have been passed upon by Michael J. Velotta, General Counsel of Glenbrook. 40 PROSPECTUS TAXES -------------------------------------------------------------------------------- THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. GLENBROOK MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on your individual circumstances. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF GLENBROOK LIFE AND ANNUITY COMPANY Glenbrook is taxed as a life insurance company under Part I of Subchapter L of the Internal Revenue Code (the "Code"). Since the Variable Account is not an entity separate from Glenbrook, and its operations form a part of Glenbrook, it will not be taxed separately. Investment income and realized capital gains of the Variable Account are automatically applied to increase reserves under the Contract. Under existing federal income tax law, Glenbrook believes that the Variable Account investment income and capital gains will not be taxed to the extent that such income and gains are applied to increase the reserves under the Contract. Accordingly, Glenbrook does not anticipate that it will incur any federal income tax liability attributable to the Variable Account, and therefore Glenbrook does not intend to make provisions for any such taxes. If Glenbrook is taxed on investment income or capital gains of the Variable Account, then Glenbrook may impose a charge against the Variable Account in order to make provision for such taxes. TAXATION OF VARIABLE ANNUITIES IN GENERAL TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value until a distribution occurs. This rule applies only where: . the Contract Owner is a natural person, . the investments of the Variable Account are "adequately diversified" according to Treasury Department regulations, and . Glenbrook is considered the owner of the Variable Account assets for federal income tax purposes. NON-NATURAL OWNERS. As a general rule, annuity contracts owned by non-natural persons such as corporations, trusts, or other entities are not treated as annuity contracts for federal income tax purposes. The income on such contracts does not enjoy tax deferral and is taxed as ordinary income received or accrued by the owner during the taxable year. EXCEPTIONS TO THE NON-NATURAL OWNER RULE. There are several exceptions to the general rule that annuity contracts held by a non-natural owner are not treated as annuity contracts for federal income tax purposes. Contracts will generally be treated as held by a natural person if the nominal owner is a trust or other entity which holds the contract as agent for a natural person. However, this special exception will not apply in the case of an employer who is the nominal owner of an annuity contract under a non-Qualified deferred compensation arrangement for its employees. Other exceptions to the non-natural owner rule are: (1) contracts acquired by an estate of a decedent by reason of the death of the decedent; (2) certain qualified contracts; (3) contracts purchased by employers upon the termination of certain qualified plans; (4) certain contracts used in connection with structured settlement agreements; and (5) immediate annuity contracts, purchased with a single premium, when the annuity starting date is no later than a year from purchase of the annuity and substantially equal periodic payments are made, not less frequently than annually, during the annuity period. GRANTOR TRUST OWNED ANNUITY. Contracts owned by a grantor trust are considered owned by a non-natural owner. Grantor trust owned contracts receive tax deferral as described in the Exceptions To The Non-Natural Owner Rule section. In accordance with the Code, upon the death of the annuitant, the death benefit must be paid. According to your Contract, the Death Benefit is paid to the surviving Contract Owner. Since the trust will be the surviving Contract Owner in all cases, the Death Benefit will be payable to the trust notwithstanding any beneficiary designation on the annuity contract. A trust, including a grantor trust, has two options for receiving any death benefits: 1) a lump sum payment; or 2) payment deferred up to five years from date of death. DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for federal income tax purposes, the investments in the Variable Account must be "adequately diversified" consistent with standards under Treasury Department regulations. If the investments in the Variable Account are not adequately diversified, the Contract will not be treated as an annuity contract for federal income tax purposes. As a result, the income on the Contract will be taxed as ordinary income received or accrued by the Contract owner during the taxable year. Although Glenbrook does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements. OWNERSHIP TREATMENT. The IRS has stated that a contract owner will be considered the owner of separate account assets if he possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of the separate account investments may cause a Contract 41 PROSPECTUS owner to be treated as the owner of the separate account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct sub-account investments without being treated as owners of the underlying assets of the separate account. Your rights under the Contract are different than those described by the IRS in rulings in which it found that Contract owners were not owners of separate account assets. For example, you have the choice to allocate premiums and Contract Values among a broader selection of investment alternatives. Also, you may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in you being treated as the owner of the Variable Account. If this occurs, income and gain from the Variable Account assets would be includible in your gross income. Glenbrook does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Contract. We reserve the right to modify the Contract as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Variable Account. However, we make no guarantee that such modification to the Contract will be successful. TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal under a Non-Qualified Contract, amounts received are taxable to the extent the Contract Value, without regard to surrender charges, exceeds the investment in the Contract. The investment in the Contract is the gross premium paid for the contract minus any amounts previously received from the Contract if such amounts were properly excluded from your gross income. If you make a full withdrawal under a Non-Qualified Contract, the amount received will be taxable only to the extent it exceeds the investment in the Contract. TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of annuity payments received from a Non-Qualified Contract provides for the return of your investment in the Contract in equal tax-free amounts over the payment period. The balance of each payment received is taxable. For fixed annuity payments, the amount excluded from income is determined by multiplying the payment by the ratio of the investment in the Contract (adjusted for any refund feature or period certain) to the total expected value of annuity payments for the term of the Contract. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Contract by the total number of expected payments. The annuity payments will be fully taxable after the total amount of the investment in the Contract is excluded using these ratios. The Federal tax treatment of annuity payments is unclear in some respects. As a result, if the IRS should provide further guidance, it is possible that the amount we calculate and report to the IRS as taxable could be different. If you die, and annuity payments cease before the total amount of the investment in the Contract is recovered, the unrecovered amount will be allowed as a deduction for your last taxable year. WITHDRAWALS AFTER THE PAYOUT START DATE. Federal tax law is unclear regarding the taxation of any additional withdrawal received after the Payout Start Date. It is possible that a greater or lesser portion of such a payment could be taxable than the amount we determine. DISTRIBUTION AT DEATH RULES. In order to be considered an annuity contract for federal income tax purposes, the Contract must provide: . if any Contract Owner dies on or after the Payout Start Date but before the entire interest in the Contract has been distributed, the remaining portion of such interest must be distributed at least as rapidly as under the method of distribution being used as of the date of the Contract Owner's death; . if any Contract Owner dies prior to the Payout Start Date, the entire interest in the Contract will be distributed within 5 years after the date of the Contract Owner's death. These requirements are satisfied if any portion of the Contract Owner's interest that is payable to (or for the benefit of) a designated Beneficiary is distributed over the life of such Beneficiary (or over a period not extending beyond the life expectancy of the Beneficiary) and the distributions begin within 1 year of the Contract Owner's death. If the Contract Owner's designated Beneficiary is the surviving spouse of the Contract Owner, the Contract may be continued with the surviving spouse as the new Contract Owner. . if the Contract Owner is a non-natural person, then the Annuitant will be treated as the Contract Owner for purposes of applying the distribution at death rules. In addition, a change in the Annuitant on a Contract Owned by a non-natural person will be treated as the death of the Contract Owner. TAXATION OF ANNUITY DEATH BENEFITS. Death Benefit amounts are included in income as follows: . if distributed in a lump sum, the amounts are taxed in the same manner as a full withdrawal, or . if distributed under an Income Plan, the amounts are taxed in the same manner as annuity payments. PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the taxable amount of any premature distribution from a non-Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: . made on or after the date the Contract Owner attains age 59 1/2, . made as a result of the Contract Owner's death or becoming totally disabled, 42 PROSPECTUS . made in substantially equal periodic payments over the Contract Owner's life or life expectancy, or over the joint lives or joint life expectancies of the Contract Owner and the Beneficiary, . made under an immediate annuity, or . attributable to investment in the Contract before August 14, 1982. You should consult a competent tax advisor to determine how these exceptions may apply to your situation. SUBSTANTIALLY EQUAL PERIODIC PAYMENTS. With respect to non-Qualified Contracts using substantially equal periodic payments or immediate annuity payments as an exception to the penalty tax on premature distributions, any additional withdrawal or other modification of the payment stream would violate the requirement that payments must be substantially equal. Failure to meet this requirement would mean that the income portion of each payment received prior to the later of 5 years or the Contract Owner's attaining age 59 1/2 would be subject to a 10% penalty tax unless another exception to the penalty tax applied. The tax for the year of the modification is increased by the penalty tax that would have been imposed without the exception, plus interest for the years in which the exception was used. You should consult a competent tax advisor prior to taking a withdrawal. TAX FREE EXCHANGES UNDER INTERNAL REVENUE CODE SECTION 1035. A 1035 exchange is a tax-free exchange of a non-qualified life insurance contract, endowment contract or annuity contract for a new non-Qualified annuity contract. The contract owner(s) must be the same on the old and new contract. Basis from the old contract carries over to the new contract so long as we receive that information from the relinquishing company. If basis information is never received, we will assume that all exchanged funds represent earnings and will allocate no cost basis to them. TAXATION OF OWNERSHIP CHANGES. If you transfer a non-Qualified Contract without full and adequate consideration to a person other than your spouse (or to a former spouse incident to a divorce), you will be taxed on the difference between the Contract Value and the investment in the Contract at the time of transfer. Except for certain Qualified Contracts, any amount you receive as a loan under a Contract, and any assignment or pledge (or agreement to assign or pledge) of the Contract Value is taxed as a withdrawal of such amount or portion and may also incur the 10% penalty tax. Currently we do not allow assignments. AGGREGATION OF ANNUITY CONTRACTS. The Code requires that all non-Qualified deferred annuity contracts issued by Glenbrook (or its affiliates) to the same Contract Owner during any calendar year be aggregated and treated as one annuity contract for purposes of determining the taxable amount of a distribution. INCOME TAX WITHHOLDING Generally, Glenbrook is required to withhold federal income tax at a rate of 10% from all non-annuitized distributions. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold the required 10% of the taxable amount. In certain states, if there is federal withholding, then state withholding is also mandatory. Glenbrook is required to withhold federal income tax using the wage withholding rates for all annuitized distributions. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold using married with three exemptions as the default. In certain states, if there is federal withholding, then state withholding is also mandatory. Election out of withholding is valid only if the customer provides a U.S. residence address and taxpayer identification number. Generally, Section 1441 of the Code provides that a withholding agent must withhold 30% of the taxable amounts paid to a non-resident alien. A non-resident alien is someone other than a U.S. citizen or resident alien. Withholding may be reduced or eliminated by an income tax treaty between the U.S. and the non-resident alien's country of residence if the payee provides a U.S. taxpayer identification number on Form W-8BEN. A U.S. taxpayer identification number is a social security number or an individual taxpayer identification number ("ITIN"). ITINs are issued by the IRS to non-resident alien individuals who are not eligible to obtain a social security number. TAX QUALIFIED CONTRACTS The income on qualified plan and IRA investments is tax deferred, and the income on variable annuities held by such plans does not receive any additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing a variable annuity in a qualified plan or IRA. Contracts may be used as investments with certain qualified plans such as: . Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the Code; . Roth IRAs under Section 408A of the Code; . Simplified Employee Pension Plans under Section 408(k) of the Code; . Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section 408(p) of the Code; . Tax Sheltered Annuities under Section 403(b) of the Code; . Corporate and Self Employed Pension and Profit Sharing Plans under Sections 401 and 403; and 43 PROSPECTUS . State and Local Government and Tax-Exempt Organization Deferred Compensation Plans under Section 457. Glenbrook reserves the right to limit the availability of the Contract for use with any of the Qualified Plans listed above or to modify the Contract to conform with tax requirements. The tax rules applicable to participants in such qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Adverse tax consequences may result from certain transactions such as excess contributions, premature distributions, and, distributions that do not conform to specified commencement and minimum distribution rules. Glenbrook can issue an individual retirement annuity on a rollover or transfer of proceeds from a decedent's IRA or Qualified Plan under which the decedent's surviving spouse is the beneficiary. Glenbrook does not offer an individual retirement annuity that can accept a transfer of funds for any other, non-spousal, beneficiary of a decedent's IRA or Qualified Plan. In the case of certain qualified plans, the terms of the plans may govern the right to benefits, regardless of the terms of the Contract. TAXATION OF WITHDRAWALS FROM AN INDIVIDUALLY OWNED QUALIFIED CONTRACT. If you make a partial withdrawal under a Qualified Contract other than a Roth IRA, the portion of the payment that bears the same ratio to the total payment that the investment in the Contract (i.e., nondeductible IRA contributions, after tax contributions to qualified plans) bears to the Contract Value, is excluded from your income. We do not keep track of nondeductible contributions, and all tax reporting of distributions from Qualified Contracts other than Roth IRAs will indicate that the distribution is fully taxable. "Qualified distributions" from Roth IRAs are not included in gross income. "Qualified distributions" are any distributions made more than five taxable years after the taxable year of the first contribution to any Roth IRA and which are: . made on or after the date the Contract Owner attains age 59 1/2, . made to a beneficiary after the Contract Owner's death, . attributable to the Contract Owner being disabled, or . made for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). "Nonqualified distributions" from Roth IRAs are treated as made from contributions first and are included in gross income only to the extent that distributions exceed contributions. All tax reporting of distributions from Roth IRAs will indicate that the taxable amount is not determined. REQUIRED MINIMUM DISTRIBUTIONS. Generally, qualified plans require minimum distributions upon reaching age 70 1/2. Failure to withdraw the required minimum distribution will result in a 50% tax penalty on the shortfall not withdrawn from the Contract. Not all income plans offered under the Contract satisfy the requirements for minimum distributions. Because these distributions are required under the Code and the method of calculation is complex, please see a competent tax advisor. THE DEATH BENEFIT AND QUALIFIED CONTRACTS. Pursuant to the Code and IRS regulations, an IRA (e.g., traditional IRA, Roth IRA, SEP IRA and SIMPLE IRA) may not invest in life insurance contracts. However, an IRA may provide a death benefit that equals the greater of the purchase payments or the Contract Value. The Contract offers a death benefit that in certain circumstances may exceed the greater of the purchase payments or the Contract Value. We believe that the Death Benefits offered by your Contract do not constitute life insurance under these regulations. It is also possible that the certain death benefits that offer enhanced earnings could be characterized as an incidental death benefit. If the death benefit were so characterized, this could result in current taxable income to a Contract owner. In addition, there are limitations on the amount of incidental death benefits that may be provided under qualified plans, such as in connection with a 403(b) plan. Glenbrook reserves the right to limit the availability of the Contract for use with any of the qualified plans listed above. PENALTY TAX ON PREMATURE DISTRIBUTIONS FROM QUALIFIED CONTRACTS. A 10% penalty tax applies to the taxable amount of any premature distribution from a Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: . made on or after the date the Contract Owner attains age 59 1/2, . made as a result of the Contract Owner's death or total disability, . made in substantially equal periodic payments over the Contract Owner's life or life expectancy, or over the joint lives or joint life expectancies of the Contract Owner and the Beneficiary, . made pursuant to an IRS levy, . made for certain medical expenses, . made to pay for health insurance premiums while unemployed (only applies for IRAs), . made for qualified higher education expenses (only applies for IRAs), and . made for a first time home purchase (up to a $10,000 lifetime limit and only applies for IRAs). 44 PROSPECTUS During the first 2 years of the individual's participation in a SIMPLE IRA, distributions that are otherwise subject to the premature distribution penalty, will be subject to a 25% penalty tax. You should consult a competent tax advisor to determine how these exceptions may apply to your situation. SUBSTANTIALLY EQUAL PERIODIC PAYMENTS ON QUALIFIED CONTRACTS. With respect to Qualified Contracts using substantially equal periodic payments as an exception to the penalty tax on premature distributions, any additional withdrawal or other modification of the payment stream would violate the requirement that payments must be substantially equal. Failure to meet this requirement would mean that the income portion of each payment received prior to the later of 5 years or the taxpayer's attaining age 59 1/2 would be subject to a 10% penalty tax unless another exception to the penalty tax applied. The tax for the year of the modification is increased by the penalty tax that would have been imposed without the exception, plus interest for the years in which the exception was used. You should consult a competent tax advisor prior to taking a withdrawal. INCOME TAX WITHHOLDING ON QUALIFIED CONTRACTS. Generally, Glenbrook is required to withhold federal income tax at a rate of 10% from all non-annuitized distributions that are not considered "eligible rollover distributions." The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold the required 10% from the taxable amount. In certain states, if there is federal withholding, then state withholding is also mandatory. Glenbrook is required to withhold federal income tax at a rate of 20% on all "eligible rollover distributions" unless you elect to make a "direct rollover" of such amounts to an IRA or eligible retirement plan. Eligible rollover distributions generally include all distributions from Qualified Contracts, excluding IRAs, with the exception of: . required minimum distributions, or, . a series of substantially equal periodic payments made over a period of at least 10 years, or, . a series of substantially equal periodic payments made over the life (joint lives) of the participant (and beneficiary), or, . hardship distributions. For all annuitized distributions that are not subject to the 20% withholding requirement, Glenbrook is required to withhold federal income tax using the wage withholding rates. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold using married with three exemptions as the default. In certain states, if there is federal withholding, then state withholding is also mandatory. Election out of withholding is valid only if the customer provides a U.S. residence address and taxpayer identification number. Generally, Section 1441 of the Code provides that a withholding agent must withhold 30% of the taxable amounts paid to a non-resident alien. A non-resident alien is someone other than a U.S. citizen or resident alien. Withholding may be reduced or eliminated by an income tax treaty between the U.S. and the non-resident alien's country of residence if the payee provides a U.S. taxpayer identification number on Form W-8BEN. A U.S. taxpayer identification number is a social security number or an individual taxpayer identification number ("ITIN"). ITINs are issued by the IRS to non-resident alien individuals who are not eligible to obtain a social security number. INDIVIDUAL RETIREMENT ANNUITIES. Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (IRA). Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. Certain distributions from other types of qualified plans may be "rolled over" on a tax-deferred basis into an Individual Retirement Annuity. ROTH INDIVIDUAL RETIREMENT ANNUITIES. Section 408A of the Code permits eligible individuals to make nondeductible contributions to an individual retirement program known as a Roth Individual Retirement Annuity. Roth Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. Subject to certain limitations, a traditional Individual Retirement Account or Annuity may be converted or "rolled over" to a Roth Individual Retirement Annuity. The income portion of a conversion or rollover distribution is taxable currently, but is exempted from the 10% penalty tax on premature distributions. ANNUITIES HELD BY INDIVIDUAL RETIREMENT ACCOUNTS (COMMONLY KNOWN AS CUSTODIAL IRAS) Internal Revenue Code Section 408 permits a custodian or trustee of an Individual Retirement Account to purchase an annuity as an investment of the Individual Retirement Account. If an annuity is purchased inside of an Individual Retirement Account, then the Annuitant must be the same as the beneficial owner of the Individual Retirement Account. Generally, the death benefit of an annuity held in an Individual Retirement Account must be paid upon the death of the Annuitant. However, in most states, the Contract permits the custodian or trustee of the Individual Retirement Account to continue the Contract in the accumulation phase, with the Annuitant's surviving spouse as the new Annuitant, if the following conditions are met: 45 PROSPECTUS 1) The custodian or trustee of the Individual Retirement Account is the owner of the annuity and has the right to the death proceeds otherwise payable under the annuity contract; 2) The deceased Annuitant was the beneficial owner of the Individual Retirement Account; 3) We receive a complete request for settlement for the death of the Annuitant; and 4) The custodian or trustee of the Individual Retirement Account provides us with a signed certification of the following: (a) The Annuitant's surviving spouse is the sole beneficiary of the Individual Retirement Account; (b) The Annuitant's surviving spouse has elected to continue the Individual Retirement Account as his or her own Individual Retirement Account; and (c) The custodian or trustee of the Individual Retirement Account has continued the Individual Retirement Account pursuant to the surviving spouse's election. SIMPLIFIED EMPLOYEE PENSION PLANS. Section 408(k) of the Code allows eligible employers to establish simplified employee pension plans for their employees using individual retirement annuities. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to the individual retirement annuities. Employers intending to use the Contract in connection with such plans should seek competent tax advice. SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS). Sections 408(p) and 401(k) of the Code allow eligible employers with 100 or fewer employees to establish SIMPLE retirement plans for their employees. SIMPLE plans may be structured as a SIMPLE retirement account using an IRA or as a Section 401(k) qualified cash or deferred arrangement. In general, a SIMPLE plan consists of a salary deferral program for eligible employees and matching or nonelective contributions made by employers. Employers intending to use the Contract in conjunction with SIMPLE plans should seek competent tax and legal advice. TO DETERMINE IF YOU ARE ELIGIBLE TO CONTRIBUTE TO ANY OF THE ABOVE LISTED IRAS (TRADITIONAL, ROTH, SEP, OR SIMPLE), PLEASE REFER TO IRS PUBLICATION 590 AND YOUR COMPETENT TAX ADVISOR. TAX SHELTERED ANNUITIES. Section 403(b) of the Code provides tax-deferred retirement savings plans for employees of certain non-profit and educational organizations. Under Section 403(b), any contract used for a 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only on or after the date the employee: . attains age 59 1/2, . separates from service, . dies, . becomes disabled, or . incurs a hardship (earnings on salary reduction contributions may not be distributed on account of hardship). These limitations do not apply to withdrawals where Glenbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. Generally, we do not accept Employee Retirement Income Security Act of 1974 (ERISA) funds in 403(b) contracts. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS. Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of tax favored retirement plans for employees. Self-employed individuals may establish tax favored retirement plans for themselves and their employees. Such retirement plans (commonly referred to as "H.R.10" or "Keogh") may permit the purchase of annuity contracts. STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION DEFERRED COMPENSATION PLANS. Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. In eligible governmental plans, all assets and income must be held in a trust/ custodial account/annuity contract for the exclusive benefit of the participants and their beneficiaries. To the extent the Contracts are used in connection with a non-governmental eligible plan, employees are considered general creditors of the employer and the employer as owner of the Contract has the sole right to the proceeds of the Contract. Under eligible 457 plans, contributions made for the benefit of the employees will not be includible in the employees' gross income until distributed from the plan. 46 PROSPECTUS ANNUAL REPORTS AND OTHER DOCUMENTS -------------------------------------------------------------------------------- Glenbrook's annual report on Form 10-K for the year ended December 31, 2002 is incorporated herein by reference, which means that it is legally a part of this prospectus. After the date of this prospectus and before we terminate the offering of the securities under this prospectus, all documents or reports we file with the SEC under the Exchange Act are also incorporated herein by reference, which means that they also legally become a part of this prospectus. Statements in this prospectus, or in documents that we file later with the SEC and that legally become a part of this prospectus, may change or supersede statements in other documents that are legally part of this prospectus. Accordingly, only the statement that is changed or replaced will legally be a part of this prospectus. We file our Exchange Act documents and reports, including our annual and quarterly reports on Form 10-K and Form 10-Q electronically on the SEC's "EDGAR" system using the identifying number CIK No. 0001007285. The SEC maintains a Web site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the site is http:// www.sec.gov. You also can view these materials at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. For more information on the operations of SEC's Public Reference Room, call 1-800-SEC-0330. If you have received a copy of this prospectus, and would like a free copy of any document incorporated herein by reference (other than exhibits not specifically incorporated by reference into the text of such documents), please write or call us at 300 N. Milwaukee Ave., Vernon Hills, IL 60061 (telephone: 1-800-755-5275). PERFORMANCE INFORMATION -------------------------------------------------------------------------------- We may advertise the performance of the Variable Sub-Accounts, including yield and total return information. Total return represents the change, over a specified period of time, in the value of an investment in a Variable Sub-Account after reinvesting all income distributions. Yield refers to the income generated by an investment in a Variable Sub-Account over a specified period. All performance advertisements will include, as applicable, standardized yield and total return figures that reflect the deduction of Contract charges, including the contract maintenance charge and the withdrawal charge (for ALLSTATE PROVIDER ULTRA CONTRACTS and ALLSTATE PROVIDER EXTRA CONTRACTS). Performance advertisements also may include total return figures that reflect the deduction of insurance charges, but not the contract maintenance charge or withdrawal charge. Any total return figures that reflect the Credit Enhancement will also reflect applicable withdrawal charges to the extent required. The deduction of such charges would reduce the performance shown. In addition, performance advertisements may include aggregate average, year-by-year, or other types of total return figures. Performance information for periods prior to the inception date of the Variable Sub-Accounts will be based on the historical performance of the corresponding Portfolios for the periods beginning with the inception dates of the Portfolios and adjusted to reflect current Contract expenses. You should not interpret these figures to reflect actual historical performance of the Variable Account. We may include in advertising and sales materials tax deferred compounding charts and other hypothetical illustrations that compare currently taxable and tax deferred investment programs based on selected tax brackets. Our advertisements also may compare the performance of our Variable Sub-Accounts with: (a) certain unmanaged market indices, including but not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman Bond Index; and/or (b) other management investment companies with investment objectives similar to the underlying funds being compared. In addition, our advertisements may include the performance ranking assigned by various publications, including the Wall Street Journal, Forbes, Fortune, Money, Barron's, Business Week, USA Today, and statistical services, including Lipper Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey, the Variable Annuity Research Data Survey, and SEI. 47 PROSPECTUS APPENDIX A ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED (BASE POLICY)(1) --------------------------------------------------------------------------------
ALLSTATE PROVIDER ADVANTAGE CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.665 Accumulation Unit Value, End of Period $10.665 $ 8.120 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $11.292 Accumulation Unit Value, End of Period $11.292 $ 9.216 Number of Units Outstanding, End of Period 0 0 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.619 Accumulation Unit Value, End of Period $12.619 $ 9.397 Number of Units Outstanding, End of Period 1,667 2,284 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $12.391 Accumulation Unit Value, End of Period $12.391 $10.298 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS* Accumulation Unit Value, Beginning of Period $10.000 $11.041 Accumulation Unit Value, End of Period $11.041 $ 7.369 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.776 Accumulation Unit Value, End of Period $ 9.776 $ 9.845 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.629 Accumulation Unit Value, End of Period $11.629 $ 7.903 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.217 Accumulation Unit Value, End of Period $10.217 $ 8.482 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.853 Accumulation Unit Value, End of Period $11.853 $ 8.138 Number of Units Outstanding, End of Period 1,836 3,537 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.525 Accumulation Unit Value, End of Period $10.525 $ 7.362 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX* Accumulation Unit Value, Beginning of Period $10.000 $10.584 Accumulation Unit Value, End of Period $10.584 $ 8.089 Number of Units Outstanding, End of Period 0 0 48 PROSPECTUS DREYFUS VIF GROWTH & INCOME* Accumulation Unit Value, Beginning of Period $10.000 $10.719 Accumulation Unit Value, End of Period $10.719 $ 7.880 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF MONEY MARKET* Accumulation Unit Value, Beginning of Period $10.000 $10.010 Accumulation Unit Value, End of Period $10.010 $ 9.999 Number of Units Outstanding, End of Period 0 4 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.615 Accumulation Unit Value, End of Period $10.615 $ 8.796 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.425 Accumulation Unit Value, End of Period $11.425 $10.168 Number of Units Outstanding, End of Period 0 793 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.703 Accumulation Unit Value, End of Period $11.703 $ 9.545 Number of Units Outstanding, End of Period 180 4,978 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $12.424 Accumulation Unit Value, End of Period $12.424 $ 8.525 Number of Units Outstanding, End of Period 1,314 2,524 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.165 Accumulation Unit Value, End of Period $10.165 $10.337 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP*(3) Accumulation Unit Value, Beginning of Period $10.000 $11.184 Accumulation Unit Value, End of Period $11.184 $ 7.852 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.583 Accumulation Unit Value, End of Period $11.583 $ 6.396 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES* Accumulation Unit Value, Beginning of Period $10.000 $10.602 Accumulation Unit Value, End of Period $10.602 $ 9.204 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES- CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.965 Accumulation Unit Value, End of Period $10.965 $10.779 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.512 Accumulation Unit Value, End of Period $10.512 $ 8.428 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $11.272 Accumulation Unit Value, End of Period $11.272 $ 9.436 Number of Units Outstanding, End of Period 0 0 49 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY * Accumulation Unit Value, Beginning of Period $10.000 $10.570 Accumulation Unit Value, End of Period $10.570 $ 8.128 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $10.576 Accumulation Unit Value, End of Period $10.576 $ 7.872 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID-CAP** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.767 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH*(5) Accumulation Unit Value, Beginning of Period $10.000 $10.504 Accumulation Unit Value, End of Period $10.504 $ 7.258 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $12.752 Accumulation Unit Value, End of Period $12.752 $ 8.304 Number of Units Outstanding, End of Period 0 221 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.545 Accumulation Unit Value, End of Period $11.545 $ 8.962 Number of Units Outstanding, End of Period 0 1,539 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $13.155 Accumulation Unit Value, End of Period $13.155 $ 8.832 Number of Units Outstanding, End of Period 355 1,202 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.948 Accumulation Unit Value, End of Period $11.948 $ 8.855 Number of Units Outstanding, End of Period 0 730 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.020 Accumulation Unit Value, End of Period $10.020 $ 7.606 Number of Units Outstanding, End of Period 35 747 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.554 Accumulation Unit Value, End of Period $11.554 $ 8.214 Number of Units Outstanding, End of Period 182 1,538 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.235 Accumulation Unit Value, End of Period $12.235 $ 8.810 Number of Units Outstanding, End of Period 576 4,510 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $12.373 Accumulation Unit Value, End of Period $12.373 $ 9.485 Number of Units Outstanding, End of Period 82 517 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $11.480 Accumulation Unit Value, End of Period $11.480 $ 9.178 Number of Units Outstanding, End of Period 2.061 8,915 50 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.384 Accumulation Unit Value, End of Period $10.384 $10.984 Number of Units Outstanding, End of Period 0 1,146 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.385 Accumulation Unit Value, End of Period $11.385 $ 9.080 Number of Units Outstanding, End of Period 0 131 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $12.249 Accumulation Unit Value, End of Period $12.249 $ 8.503 Number of Units Outstanding, End of Period 0 1,402 PUTNAM VT HEALTH SCIENCES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.053 Accumulation Unit Value, End of Period $11.053 $ 8.668 Number of Units Outstanding, End of Period 0 361 PUTNAM VT INTERNATIONAL EQUITY*(7) Accumulation Unit Value, Beginning of Period $10.000 $10.404 Accumulation Unit Value, End of Period $10.404 $ 8.432 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.856 Accumulation Unit Value, End of Period $11.856 $ 9.851 Number of Units Outstanding, End of Period 0 3,078 PUTNAM VT RESEARCH CLASS IB* Accumulation Unit Value, Beginning of Period $10.000 $12.955 Accumulation Unit Value, End of Period $12.955 $ 8.357 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.905 Accumulation Unit Value, End of Period $ 9.905 $10.466 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $10.382 Accumulation Unit Value, End of Period $10.382 $ 8.497 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE* (8) Accumulation Unit Value, Beginning of Period $10.000 $11.078 Accumulation Unit Value, End of Period $11.078 $ 7.850 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. REAL ESTATE** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.971 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE * Accumulation Unit Value, Beginning of Period $10.000 $10.795 Accumulation Unit Value, End of Period $10.795 $ 8.273 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Advantage Contracts were first offered on September 17, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Advantage Contracts on September 17, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on November 1, 2001. **These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on May 1, 2002. 51 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.45. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 52 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED DEATH BENEFIT OPTION/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER ADVANTAGE CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.661 Accumulation Unit Value, End of Period $10.661 $ 8.096 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $11.284 Accumulation Unit Value, End of Period $11.284 $ 9.186 Number of Units Outstanding, End of Period 0 0 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.610 Accumulation Unit Value, End of Period $12.610 $ 9.367 Number of Units Outstanding, End of Period 0 263 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $12.382 Accumulation Unit Value, End of Period $12.382 $10.265 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS* Accumulation Unit Value, Beginning of Period $10.000 $11.036 Accumulation Unit Value, End of Period $11.036 $ 7.348 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.772 Accumulation Unit Value, End of Period $ 9.772 $ 9.816 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.621 Accumulation Unit Value, End of Period $11.621 $ 7.877 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.213 Accumulation Unit Value, End of Period $10.213 $ 8.457 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.844 Accumulation Unit Value, End of Period $11.844 $ 8.111 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.520 Accumulation Unit Value, End of Period $10.520 $ 7.340 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX* Accumulation Unit Value, Beginning of Period $10.000 $10.579 Accumulation Unit Value, End of Period $10.579 $ 8.065 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF GROWTH & INCOME* Accumulation Unit Value, Beginning of Period $10.000 $10.714 Accumulation Unit Value, End of Period $10.714 $ 7.856 Number of Units Outstanding, End of Period 0 0 53 PROSPECTUS DREYFUS VIF MONEY MARKET* Accumulation Unit Value, Beginning of Period $10.000 $10.006 Accumulation Unit Value, End of Period $10.006 $ 9.970 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.610 Accumulation Unit Value, End of Period $10.610 $ 8.770 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.417 Accumulation Unit Value, End of Period $11.417 $10.135 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.695 Accumulation Unit Value, End of Period $11.695 $ 9.514 Number of Units Outstanding, End of Period 0 839 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $12.415 Accumulation Unit Value, End of Period $12.415 $ 8.498 Number of Units Outstanding, End of Period 0 456 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.157 Accumulation Unit Value, End of Period $10.157 $10.304 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP*(3) Accumulation Unit Value, Beginning of Period $10.000 $11.179 Accumulation Unit Value, End of Period $11.179 $ 7.829 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.578 Accumulation Unit Value, End of Period $11.578 $ 6.378 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES* Accumulation Unit Value, Beginning of Period $10.000 $10.597 Accumulation Unit Value, End of Period $10.597 $ 9.177 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES- CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.960 Accumulation Unit Value, End of Period $10.960 $10.747 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.507 Accumulation Unit Value, End of Period $10.507 $ 8.403 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $11.267 Accumulation Unit Value, End of Period $11.267 $ 9.408 Number of Units Outstanding, End of Period 0 0 54 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY * Accumulation Unit Value, Beginning of Period $10.000 $10.566 Accumulation Unit Value, End of Period $10.566 $ 8.104 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH *(5) Accumulation Unit Value, Beginning of Period $10.000 $10.572 Accumulation Unit Value, End of Period $10.572 $ 7.848 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID-CAP** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.754 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH*(5) Accumulation Unit Value, Beginning of Period $10.000 $10.500 Accumulation Unit Value, End of Period $10.500 $ 7.237 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $12.743 Accumulation Unit Value, End of Period $12.743 $ 8.277 Number of Units Outstanding, End of Period 102 312 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.537 Accumulation Unit Value, End of Period $11.537 $ 8.933 Number of Units Outstanding, End of Period 0 185 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $13.146 Accumulation Unit Value, End of Period $13.146 $ 8.804 Number of Units Outstanding, End of Period 0 447 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.940 Accumulation Unit Value, End of Period $11.940 $ 8.826 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.013 Accumulation Unit Value, End of Period $10.013 $ 7.581 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.546 Accumulation Unit Value, End of Period $11.546 $ 8.187 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.226 Accumulation Unit Value, End of Period $12.226 $ 8.781 Number of Units Outstanding, End of Period 105 581 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $12.364 Accumulation Unit Value, End of Period $12.364 $ 9.454 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $11.472 Accumulation Unit Value, End of Period $11.472 $ 9.148 Number of Units Outstanding, End of Period 0 1,322 55 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.377 Accumulation Unit Value, End of Period $10.377 $10.948 Number of Units Outstanding, End of Period 123 448 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.377 Accumulation Unit Value, End of Period $11.377 $ 9.051 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $12.241 Accumulation Unit Value, End of Period $12.241 $ 8.475 Number of Units Outstanding, End of Period 0 919 PUTNAM VT HEALTH SCIENCES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $110.45 Accumulation Unit Value, End of Period $110.45 $ 8.640 Number of Units Outstanding, End of Period 0 0 PUTNAM VT INTERNATIONAL EQUITY*(7) Accumulation Unit Value, Beginning of Period $10.000 $10.399 Accumulation Unit Value, End of Period $10.399 $ 8.408 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.848 Accumulation Unit Value, End of Period $11.848 $ 9.819 Number of Units Outstanding, End of Period 0 839 PUTNAM VT RESEARCH CLASS IB* Accumulation Unit Value, Beginning of Period $10.000 $12.945 Accumulation Unit Value, End of Period $12.945 $ 8.333 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.901 Accumulation Unit Value, End of Period $ 9.901 $10.435 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $10.378 Accumulation Unit Value, End of Period $10.378 $ 8.472 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S MID CAP CORE* (8) Accumulation Unit Value, Beginning of Period $10.000 $11.073 Accumulation Unit Value, End of Period $11.073 $ 7.826 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. REAL ESTATE** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- 8,956 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE * Accumulation Unit Value, Beginning of Period $10.000 $10.791 Accumulation Unit Value, End of Period $10.791 $ 8.249 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Advantage Contracts were first offered on September 17, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Advantage Contracts on September 17, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on November 1, 2001. **These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on May 1, 2002. 56 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.70. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 57 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT RIDER/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER ADVANTAGE CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH* Accumulation Unit Value, Beginning of Period $ 10.000 $10.661 Accumulation Unit Value, End of Period $ 10.661 $ 8.096 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $ 10.000 $11.284 Accumulation Unit Value, End of Period $ 11.284 $ 9.186 Number of Units Outstanding, End of Period 0 388 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $ 10.000 $12.610 Accumulation Unit Value, End of Period $ 12.610 $ 9.367 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $ 10.000 $12.382 Accumulation Unit Value, End of Period $ 12.382 $10.265 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS* Accumulation Unit Value, Beginning of Period $ 10.000 $11.036 Accumulation Unit Value, End of Period $ 11.036 $ 7.348 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME* Accumulation Unit Value, Beginning of Period $ 10.000 $ 9.772 Accumulation Unit Value, End of Period $ 9.772 $ 9.816 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $ 10.000 $11.621 Accumulation Unit Value, End of Period $ 11.621 $ 7.877 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH* Accumulation Unit Value, Beginning of Period $ 10.000 $10.213 Accumulation Unit Value, End of Period $ 10.213 $ 8.457 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $ 10.000 $11.844 Accumulation Unit Value, End of Period $ 11.844 $ 8.111 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH* Accumulation Unit Value, Beginning of Period $ 10.000 $10.520 Accumulation Unit Value, End of Period $ 10.520 $ 7.340 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX* Accumulation Unit Value, Beginning of Period $ 10.000 $10.579 Accumulation Unit Value, End of Period $ 10.579 $ 8.065 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF GROWTH & INCOME* Accumulation Unit Value, Beginning of Period $ 10.000 $10.714 Accumulation Unit Value, End of Period $ 10.714 $ 7.856 Number of Units Outstanding, End of Period 0 0 58 PROSPECTUS DREYFUS VIF MONEY MARKET* Accumulation Unit Value, Beginning of Period $ 10.000 $10.006 Accumulation Unit Value, End of Period $ 10.006 $ 9.970 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2* Accumulation Unit Value, Beginning of Period $ 10.000 $10.610 Accumulation Unit Value, End of Period $ 10.610 $ 8.770 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $ 10.000 $11.417 Accumulation Unit Value, End of Period $ 11.417 $10.135 Number of Units Outstanding, End of Period 0 183 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $ 10.000 $11.695 Accumulation Unit Value, End of Period $ 11.695 $ 9.514 Number of Units Outstanding, End of Period 0 534 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $ 10.000 $12.415 Accumulation Unit Value, End of Period $ 12.415 $ 8.498 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $ 10.000 $10.157 Accumulation Unit Value, End of Period $ 10.157 $10.304 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP*(3) Accumulation Unit Value, Beginning of Period $ 10.000 $11.179 Accumulation Unit Value, End of Period $ 11.179 $ 7.829 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $ 10.000 $11.578 Accumulation Unit Value, End of Period $11.5783 $ 6.378 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES* Accumulation Unit Value, Beginning of Period $ 10.000 $10.597 Accumulation Unit Value, End of Period $ 10.597 $ 9.177 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES- CLASS 2* Accumulation Unit Value, Beginning of Period $ 10.000 $10.960 Accumulation Unit Value, End of Period $ 10.960 $10.747 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2* Accumulation Unit Value, Beginning of Period $ 10.000 $10.507 Accumulation Unit Value, End of Period $ 10.507 $ 8.403 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY* Accumulation Unit Value, Beginning of Period $ 10.000 $11.267 Accumulation Unit Value, End of Period $ 11.267 $ 9.408 Number of Units Outstanding, End of Period 0 0 59 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY * Accumulation Unit Value, Beginning of Period $ 10.000 $10.566 Accumulation Unit Value, End of Period $ 10.566 $ 8.104 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH *(5) Accumulation Unit Value, Beginning of Period $ 10.000 $10.572 Accumulation Unit Value, End of Period $ 10.572 $ 7.848 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID-CAP** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.754 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH*(5) Accumulation Unit Value, Beginning of Period $ 10.000 $10.500 Accumulation Unit Value, End of Period $ 10.500 $ 7.237 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $ 10.000 $12.743 Accumulation Unit Value, End of Period $ 12.743 $ 8.277 Number of Units Outstanding, End of Period 102 823 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $ 10.000 $11.537 Accumulation Unit Value, End of Period $ 11.537 $ 8.933 Number of Units Outstanding, End of Period 0 699 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $ 10.000 $13.146 Accumulation Unit Value, End of Period $ 13.146 $ 8.804 Number of Units Outstanding, End of Period 0 253 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $ 10.000 $11.940 Accumulation Unit Value, End of Period $ 11.940 $ 8.826 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $ 10.000 $10.013 Accumulation Unit Value, End of Period $ 10.013 $ 7.581 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $ 10.000 $11.546 Accumulation Unit Value, End of Period $ 11.546 $ 8.187 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $ 10.000 $12.226 Accumulation Unit Value, End of Period $ 12.226 $ 8.781 Number of Units Outstanding, End of Period 105 658 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $ 10.000 $12.364 Accumulation Unit Value, End of Period $ 12.364 $ 9.454 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $ 10.000 $11.472 Accumulation Unit Value, End of Period $ 11.472 $ 9.148 Number of Units Outstanding, End of Period 0 682 60 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $ 10.000 $10.377 Accumulation Unit Value, End of Period $ 10.377 $10.948 Number of Units Outstanding, End of Period 123 0 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $ 10.000 $11.377 Accumulation Unit Value, End of Period $ 11.377 $ 9.051 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $ 10.000 $12.241 Accumulation Unit Value, End of Period $ 12.241 $ 8.475 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCES CLASS IB Accumulation Unit Value, Beginning of Period $ 10.000 $110.45 Accumulation Unit Value, End of Period $ 110.45 $ 8.640 Number of Units Outstanding, End of Period 0 0 PUTNAM VT INTERNATIONAL EQUITY*(7) Accumulation Unit Value, Beginning of Period $ 10.000 $10.399 Accumulation Unit Value, End of Period $ 10.399 $ 8.408 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE CLASS IB Accumulation Unit Value, Beginning of Period $ 10.000 $11.848 Accumulation Unit Value, End of Period $ 11.848 $ 9.819 Number of Units Outstanding, End of Period 0 732 PUTNAM VT RESEARCH CLASS IB* Accumulation Unit Value, Beginning of Period $ 10.000 $12.945 Accumulation Unit Value, End of Period $ 12.945 $ 8.333 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME* Accumulation Unit Value, Beginning of Period $ 10.000 $ 9.901 Accumulation Unit Value, End of Period $ 9.901 $10.435 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY* Accumulation Unit Value, Beginning of Period $ 10.000 $10.378 Accumulation Unit Value, End of Period $ 10.378 $ 8.472 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE* (8) Accumulation Unit Value, Beginning of Period $ 10.000 $11.073 Accumulation Unit Value, End of Period $ 11.073 $ 7.826 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. REAL ESTATE** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- 8.956 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE * Accumulation Unit Value, Beginning of Period $ 10.000 $10.791 Accumulation Unit Value, End of Period $ 10.791 $ 8.249 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Advantage Contracts were first offered on September 17, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Advantage Contracts on [September 17, 2001]. * These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on November 1, 2001. **These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on May 1, 2002. 61 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.70. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 62 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT AND ENHANCED DEATH BENEFIT RIDERS/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER ADVANTAGE CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.656 Accumulation Unit Value, End of Period $10.656 $ 8.072 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $11.276 Accumulation Unit Value, End of Period $11.276 $ 9.156 Number of Units Outstanding, End of Period 0 0 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.601 Accumulation Unit Value, End of Period $12.601 $ 9.336 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $12.374 Accumulation Unit Value, End of Period $12.374 $10.231 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS* Accumulation Unit Value, Beginning of Period $10.000 $11.032 Accumulation Unit Value, End of Period $11.032 $ 7.326 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.768 Accumulation Unit Value, End of Period $ 9.768 $ 9.787 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.613 Accumulation Unit Value, End of Period $11.613 $ 7.852 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.208 Accumulation Unit Value, End of Period $10.208 $ 8.432 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.836 Accumulation Unit Value, End of Period $11.836 $ 8.085 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH* Accumulation Unit Value, Beginning of Period $10.000 $10.516 Accumulation Unit Value, End of Period $10.516 $ 7.318 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX* Accumulation Unit Value, Beginning of Period $10.000 $10.575 Accumulation Unit Value, End of Period $10.575 $ 8.041 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF GROWTH & INCOME* Accumulation Unit Value, Beginning of Period $10.000 $10.710 Accumulation Unit Value, End of Period $10.710 $ 7.833 Number of Units Outstanding, End of Period 0 0 63 PROSPECTUS DREYFUS VIF MONEY MARKET* Accumulation Unit Value, Beginning of Period $10.000 $10.002 Accumulation Unit Value, End of Period $10.002 $ 9.940 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.606 Accumulation Unit Value, End of Period $10.606 $ 8.744 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.409 Accumulation Unit Value, End of Period $11.409 $10.102 Number of Units Outstanding, End of Period 575 575 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $11.686 Accumulation Unit Value, End of Period $11.686 $ 9.483 Number of Units Outstanding, End of Period 0 616 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $12.406 Accumulation Unit Value, End of Period $12.406 $ 8.470 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.150 Accumulation Unit Value, End of Period $10.150 $10.270 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP*(3) Accumulation Unit Value, Beginning of Period $10.000 $11.174 Accumulation Unit Value, End of Period $11.174 $ 7.805 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.573 Accumulation Unit Value, End of Period $11.573 $ 6.359 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES* Accumulation Unit Value, Beginning of Period $10.000 $10.593 Accumulation Unit Value, End of Period $10.593 $ 9.150 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES- CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.956 Accumulation Unit Value, End of Period $10.956 $10.715 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2* Accumulation Unit Value, Beginning of Period $10.000 $10.503 Accumulation Unit Value, End of Period $10.503 $ 8.378 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $11.262 Accumulation Unit Value, End of Period $11.262 $ 9.380 Number of Units Outstanding, End of Period 0 0 64 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY * Accumulation Unit Value, Beginning of Period $10.000 $10.562 Accumulation Unit Value, End of Period $10.562 $ 8.080 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH *(5) Accumulation Unit Value, Beginning of Period $10.000 $10.568 Accumulation Unit Value, End of Period $10.568 $ 7.825 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID-CAP** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.741 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH*(5) Accumulation Unit Value, Beginning of Period $10.000 $10.496 Accumulation Unit Value, End of Period $10.496 $ 7.215 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $12.734 Accumulation Unit Value, End of Period $12.734 $ 8.250 Number of Units Outstanding, End of Period 0 0 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.529 Accumulation Unit Value, End of Period $11.529 $ 8.904 Number of Units Outstanding, End of Period 0 0 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $13.137 Accumulation Unit Value, End of Period $13.137 $ 8.775 Number of Units Outstanding, End of Period 0 0 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.932 Accumulation Unit Value, End of Period $11.932 $ 8.798 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.006 Accumulation Unit Value, End of Period $10.006 $ 7.556 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $11.538 Accumulation Unit Value, End of Period $11.538 $ 8.161 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $12.217 Accumulation Unit Value, End of Period $12.217 $ 8.752 Number of Units Outstanding, End of Period 0 1,291 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $12.356 Accumulation Unit Value, End of Period $12.356 $ 9.423 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $11.464 Accumulation Unit Value, End of Period $11.464 $ 9.118 Number of Units Outstanding, End of Period 0 0 66 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.369 Accumulation Unit Value, End of Period $10.369 $10.913 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.369 Accumulation Unit Value, End of Period $11.369 $ 9.021 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $12.232 Accumulation Unit Value, End of Period $12.232 $ 8.448 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.037 Accumulation Unit Value, End of Period $11.037 $ 8.612 Number of Units Outstanding, End of Period 587 586 PUTNAM VT INTERNATIONAL EQUITY*(7) Accumulation Unit Value, Beginning of Period $10.000 $10.395 Accumulation Unit Value, End of Period $10.395 $ 8.383 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $11.840 Accumulation Unit Value, End of Period $11.840 $ 9.787 Number of Units Outstanding, End of Period 0 0 PUTNAM VT RESEARCH CLASS IB* Accumulation Unit Value, Beginning of Period $10.000 $12.936 Accumulation Unit Value, End of Period $12.936 $ 8.308 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME* Accumulation Unit Value, Beginning of Period $10.000 $ 9.897 Accumulation Unit Value, End of Period $ 9.897 $10.404 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY* Accumulation Unit Value, Beginning of Period $10.000 $10.373 Accumulation Unit Value, End of Period $10.373 $ 8.447 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE* /(//8//)/ Accumulation Unit Value, Beginning of Period $10.000 $11.068 Accumulation Unit Value, End of Period $11.068 $ 7.803 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. REAL ESTATE** Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.941 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE * Accumulation Unit Value, Beginning of Period $10.000 $10.786 Accumulation Unit Value, End of Period $10.786 $ 8.224 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Advantage Contracts were first offered on September 17, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Advantage Contracts on September 17, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on [November 1, 2001. **These Variable Sub-Accounts were first offered under the Allstate Provider Advantage Contracts on May 1, 2002. 66 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.95%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 67 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED (BASE POLICY)/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER EXTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.614 Accumulation Unit Value, End of Period $10.614 $ 8.085 Number of Units Outstanding, End of Period 0 833 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $10.288 Accumulation Unit Value, End of Period $10.288 $ 8.401 Number of Units Outstanding, End of Period 0 1,955 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.802 Accumulation Unit Value, End of Period $10.802 $ 8.049 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $10.589 Accumulation Unit Value, End of Period $10.589 $ 8.805 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $10.956 Accumulation Unit Value, End of Period $10.956 $ 7.316 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.846 Accumulation Unit Value, End of Period $ 9.846 $ 9.921 Number of Units Outstanding, End of Period 0 393 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.460 Accumulation Unit Value, End of Period $10.460 $ 7.112 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.184 Accumulation Unit Value, End of Period $10.184 $ 8.459 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.503 Accumulation Unit Value, End of Period $10.503 $ 7.215 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.494 Accumulation Unit Value, End of Period $10.494 $ 7.343 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.555 Accumulation Unit Value, End of Period $10.555 $ 8.071 Number of Units Outstanding, End of Period 0 1,023 68 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.657 Accumulation Unit Value, End of Period $10.657 $ 7.838 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.010 Accumulation Unit Value, End of Period $10.010 $10.005 Number of Units Outstanding, End of Period 0 13,471 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.625 Accumulation Unit Value, End of Period $10.625 $ 8.809 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.424 Accumulation Unit Value, End of Period $10.424 $ 9.281 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.635 Accumulation Unit Value, End of Period $10.635 $ 8.678 Number of Units Outstanding, End of Period 0 997 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.680 Accumulation Unit Value, End of Period $10.680 $ 7.333 Number of Units Outstanding, End of Period 0 590 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.250 Accumulation Unit Value, End of Period $10.250 $10.429 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $11.185 Accumulation Unit Value, End of Period $11.185 $ 7.857 Number of Units Outstanding, End of Period 0 553 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.534 Accumulation Unit Value, End of Period $11.534 $ 6.373 Number of Units Outstanding, End of Period 0 372 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.595 Accumulation Unit Value, End of Period $10.595 $ 9.203 Number of Units Outstanding, End of Period 0 326 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.941 Accumulation Unit Value, End of Period $10.941 $10.761 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.503 Accumulation Unit Value, End of Period $10.503 8.425 Number of Units Outstanding, End of Period 0 0 69 PROSPECTUS GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.320 Accumulation Unit Value, End of Period $11.320 $ 9.481 Number of Units Outstanding, End of Period 0 2,076 GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.541 Accumulation Unit Value, End of Period $10.541 $ 8.110 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $10.541 Accumulation Unit Value, End of Period $10.541 $ 7.852 Number of Units Outstanding, End of Period 0 385 LSA DIVERSIFIED MID CAP EQUITY Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.770 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH(5) Accumulation Unit Value, Beginning of Period $10.000 $10.467 Accumulation Unit Value, End of Period $10.467 $ 7.236 Number of Units Outstanding, End of Period 0 808 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.867 Accumulation Unit Value, End of Period $10.867 $ 7.080 Number of Units Outstanding, End of Period 0 0 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.377 Accumulation Unit Value, End of Period $10.377 $ 8.059 Number of Units Outstanding, End of Period 0 452 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.635 Accumulation Unit Value, End of Period $11.635 $ 7.815 Number of Units Outstanding, End of Period 0 574 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.615 Accumulation Unit Value, End of Period $10.615 $ 7.871 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.167 Accumulation Unit Value, End of Period $10.167 $ 7.722 Number of Units Outstanding, End of Period 0 3,654 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.595 Accumulation Unit Value, End of Period $10.595 $ 9.203 Number of Units Outstanding, End of Period 0 326 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.684 Accumulation Unit Value, End of Period $10.684 $ 7.599 Number of Units Outstanding, End of Period 0 1,801 70 PROSPECTUS OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.670 Accumulation Unit Value, End of Period $10.670 $ 7.687 Number of Units Outstanding, End of Period 0 3,519 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.793 Accumulation Unit Value, End of Period $10.793 $ 8.278 Number of Units Outstanding, End of Period 0 411 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $10.455 Accumulation Unit Value, End of Period $10.455 $ 8.362 Number of Units Outstanding, End of Period 0 91 OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.174 Accumulation Unit Value, End of Period $10.174 $10.767 Number of Units Outstanding, End of Period 0 4,086 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.514 Accumulation Unit Value, End of Period $10.514 $ 8.390 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.533 Accumulation Unit Value, End of Period $10.533 $ 7.315 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.260 Number of Units Outstanding, End of Period -- 0 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $10.379 Accumulation Unit Value, End of Period $10.379 $ 8.417 Number of Units Outstanding, End of Period 0 272 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.875 Accumulation Unit Value, End of Period $10.875 $ 9.040 Number of Units Outstanding, End of Period 0 1,523 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.859 Accumulation Unit Value, End of Period $10.859 $ 8.321 Number of Units Outstanding, End of Period 0 4,019 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.941 Accumulation Unit Value, End of Period $ 9.941 $10.509 Number of Units Outstanding, End of Period 0 11,516 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.348 Accumulation Unit Value, End of Period $10.348 $ 8.474 Number of Units Outstanding, End of Period 0 317 VAN KAMPEN UIF U.S. MID CAP CORE(8) Accumulation Unit Value, Beginning of Period $10.000 $11.079 Accumulation Unit Value, End of Period $11.079 $ 7.855 Number of Units Outstanding, End of Period 0 3,248 71 PROSPECTUS VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.974 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.735 Accumulation Unit Value, End of Period $10.735 $ 8.231 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Extra Contracts were first offered on November 2, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Extra Contracts on November 2, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Extra Contracts on November 2, 2001. (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.40%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 72 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED DEATH BENEFIT OPTION/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER EXTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, Variable Sub-Accounts 2001 2002 AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.609 Accumulation Unit Value, End of Period $10.609 $ 8.061 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $10.284 Accumulation Unit Value, End of Period $10.284 $ 8.376 Number of Units Outstanding, End of Period 0 193 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.798 Accumulation Unit Value, End of Period $10.798 $ 8.025 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $10.584 Accumulation Unit Value, End of Period $10.584 $ 8.779 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $10.951 Accumulation Unit Value, End of Period $10.951 $ 7.295 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.842 Accumulation Unit Value, End of Period $ 9.842 $ 9.892 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.456 Accumulation Unit Value, End of Period $10.456 $ 7.091 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.180 Accumulation Unit Value, End of Period $10.180 $ 8.434 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.499 Accumulation Unit Value, End of Period $10.499 $ 7.194 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.488 Accumulation Unit Value, End of Period $10.488 $ 7.322 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.550 Accumulation Unit Value, End of Period $10.550 $ 8.047 Number of Units Outstanding, End of Period 0 0 73 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.652 Accumulation Unit Value, End of Period $10.652 $ 7.815 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.006 Accumulation Unit Value, End of Period $10.006 $ 9.975 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.621 Accumulation Unit Value, End of Period $10.621 $ 8.783 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.420 Accumulation Unit Value, End of Period $10.420 $ 9.254 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.630 Accumulation Unit Value, End of Period $10.630 $ 8.653 Number of Units Outstanding, End of Period 0 710 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.676 Accumulation Unit Value, End of Period $10.676 $ 7.311 Number of Units Outstanding, End of Period 0 651 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.245 Accumulation Unit Value, End of Period $10.245 $10.398 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $11.180 Accumulation Unit Value, End of Period $11.180 $ 7.834 Number of Units Outstanding, End of Period 0 210 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.529 Accumulation Unit Value, End of Period $11.529 $ 6.354 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.591 Accumulation Unit Value, End of Period $10.591 $ 9.176 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.937 Accumulation Unit Value, End of Period $10.937 $10.729 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.499 Accumulation Unit Value, End of Period $10.499 $ 8.401 Number of Units Outstanding, End of Period 0 0 74 PROSPECTUS GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.316 Accumulation Unit Value, End of Period $11.316 $ 9.453 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.537 Accumulation Unit Value, End of Period $10.537 $ 8.086 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH(5) Accumulation Unit Value, Beginning of Period $10.000 $10.537 Accumulation Unit Value, End of Period $10.537 $ 7.826 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID CAP EQUITY Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.757 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH(5) Accumulation Unit Value, Beginning of Period $10.000 $10.463 Accumulation Unit Value, End of Period $10.463 $ 7.215 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.862 Accumulation Unit Value, End of Period $10.862 $ 7.059 Number of Units Outstanding, End of Period 0 0 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.372 Accumulation Unit Value, End of Period $10.372 $ 8.035 Number of Units Outstanding, End of Period 0 0 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.630 Accumulation Unit Value, End of Period $11.630 $ 7.792 Number of Units Outstanding, End of Period 0 61 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.611 Accumulation Unit Value, End of Period $10.611 $ 7.848 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.163 Accumulation Unit Value, End of Period $10.163 $ 7.699 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.680 Accumulation Unit Value, End of Period $10.680 $ 7.577 Number of Units Outstanding, End of Period 0 63 75 PROSPECTUS OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.665 Accumulation Unit Value, End of Period $10.665 $ 7.664 Number of Units Outstanding, End of Period 0 335 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.789 Accumulation Unit Value, End of Period $10.789 $ 8.253 Number of Units Outstanding, End of Period 0 191 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $10.450 Accumulation Unit Value, End of Period $10.450 $ 8.337 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.170 Accumulation Unit Value, End of Period $10.170 $10.735 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.510 Accumulation Unit Value, End of Period $10.510 $ 8.365 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.529 Accumulation Unit Value, End of Period $10.529 $ 7.294 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.246 Number of Units Outstanding, End of Period -- PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $10.374 Accumulation Unit Value, End of Period $10.374 $ 8.392 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.871 Accumulation Unit Value, End of Period $10.871 $ 9.014 Number of Units Outstanding, End of Period 0 0 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.855 Accumulation Unit Value, End of Period $10.855 $ 8.296 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.936 Accumulation Unit Value, End of Period $ 9.936 $10.478 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.344 Accumulation Unit Value, End of Period $10.344 $ 8.449 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE(8) Accumulation Unit Value, Beginning of Period $10.000 $11.074 Accumulation Unit Value, End of Period $11.074 $ 7.831 Number of Units Outstanding, End of Period 0 0 76 PROSPECTUS VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.959 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.731 Accumulation Unit Value, End of Period $10.731 $ 8.207 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Extra Contracts were first offered on November 2, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Extra Contracts on November 2, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Extra Contracts on November 2, 2001. (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.65%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 77 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT RIDER/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER EXTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.609 Accumulation Unit Value, End of Period $10.609 $ 8.061 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $10.284 Accumulation Unit Value, End of Period $10.284 $ 8.376 Number of Units Outstanding, End of Period 0 0 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.798 Accumulation Unit Value, End of Period $10.798 $ 8.025 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $10.584 Accumulation Unit Value, End of Period $10.584 $ 8.779 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $10.951 Accumulation Unit Value, End of Period $10.951 $ 7.295 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.842 Accumulation Unit Value, End of Period $ 9.842 $ 9.892 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.456 Accumulation Unit Value, End of Period $10.456 $ 7.091 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.180 Accumulation Unit Value, End of Period $10.180 $ 8.434 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.499 Accumulation Unit Value, End of Period $10.499 $ 7.194 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.488 Accumulation Unit Value, End of Period $10.488 $ 7.322 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.550 Accumulation Unit Value, End of Period $10.550 $ 8.047 Number of Units Outstanding, End of Period 0 0 78 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.652 Accumulation Unit Value, End of Period $10.652 $ 7.815 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.006 Accumulation Unit Value, End of Period $10.006 $ 9.975 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.621 Accumulation Unit Value, End of Period $10.621 $ 8.783 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.420 Accumulation Unit Value, End of Period $10.420 $ 9.254 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.630 Accumulation Unit Value, End of Period $10.630 $ 8.653 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.676 Accumulation Unit Value, End of Period $10.676 $ 7.311 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.245 Accumulation Unit Value, End of Period $10.245 $10.398 Number of Units Outstanding, End of Period 0 0 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $11.180 Accumulation Unit Value, End of Period $11.180 $ 7.834 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES *(4) Accumulation Unit Value, Beginning of Period $10.000 $11.529 Accumulation Unit Value, End of Period $11.529 $ 6.354 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.591 Accumulation Unit Value, End of Period $10.591 $ 9.176 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.937 Accumulation Unit Value, End of Period $10.937 $10.729 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.499 Accumulation Unit Value, End of Period $10.499 $ 8.401 Number of Units Outstanding, End of Period 0 0 79 PROSPECTUS GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.316 Accumulation Unit Value, End of Period $11.316 $ 9.453 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.537 Accumulation Unit Value, End of Period $10.537 $ 8.086 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $10.537 Accumulation Unit Value, End of Period $10.537 $ 7.826 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID CAP EQUITY Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.757 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $10.463 Accumulation Unit Value, End of Period $10.463 $ 7.215 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.862 Accumulation Unit Value, End of Period $10.862 $ 7.059 Number of Units Outstanding, End of Period 0 0 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.372 Accumulation Unit Value, End of Period $10.372 $ 8.035 Number of Units Outstanding, End of Period 0 0 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.630 Accumulation Unit Value, End of Period $11.630 $ 7.792 Number of Units Outstanding, End of Period 0 0 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.611 Accumulation Unit Value, End of Period $10.611 $ 7.848 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.163 Accumulation Unit Value, End of Period $10.163 $ 7.699 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.680 Accumulation Unit Value, End of Period $10.680 $ 7.577 Number of Units Outstanding, End of Period 0 0 80 PROSPECTUS OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.665 Accumulation Unit Value, End of Period $10.665 $ 7.664 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.789 Accumulation Unit Value, End of Period $10.789 $ 8.253 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $10.450 Accumulation Unit Value, End of Period $10.450 $ 8.337 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.170 Accumulation Unit Value, End of Period $10.170 $10.735 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.510 Accumulation Unit Value, End of Period $10.510 $ 8.365 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.529 Accumulation Unit Value, End of Period $10.529 $ 7.294 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.246 Number of Units Outstanding, End of Period -- 0 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $10.374 Accumulation Unit Value, End of Period $10.374 $ 8.392 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.871 Accumulation Unit Value, End of Period $10.871 $ 9.014 Number of Units Outstanding, End of Period 0 0 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.855 Accumulation Unit Value, End of Period $10.855 $ 8.296 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.936 Accumulation Unit Value, End of Period $ 9.936 $10.478 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.344 Accumulation Unit Value, End of Period $10.344 $ 8.449 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE /(//8//)/ Accumulation Unit Value, Beginning of Period $10.000 $11.074 Accumulation Unit Value, End of Period $11.074 $ 7.831 Number of Units Outstanding, End of Period 0 0 81 PROSPECTUS VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.959 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.731 Accumulation Unit Value, End of Period $10.731 $ 8.207 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Extra Contracts were first offered on November 2, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Extra Contracts on November 2, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Extra Contracts on November 2, 2001. (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.65%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 82 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT AND ENHANCED DEATH BENEFIT RIDERS 1 --------------------------------------------------------------------------------
ALLSTATE PROVIDER EXTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.605 Accumulation Unit Value, End of Period $10.605 $ 8.037 Number of Units Outstanding, End of Period 0 0 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $10.280 Accumulation Unit Value, End of Period $10.280 $ 8.351 Number of Units Outstanding, End of Period 0 0 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.793 Accumulation Unit Value, End of Period $10.793 $ 8.001 Number of Units Outstanding, End of Period 0 0 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $10.580 Accumulation Unit Value, End of Period $10.580 $ 8.753 Number of Units Outstanding, End of Period 0 0 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $10.947 Accumulation Unit Value, End of Period $10.947 $ 7.273 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.838 Accumulation Unit Value, End of Period $ 9.838 $ 9.863 Number of Units Outstanding, End of Period 0 0 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.452 Accumulation Unit Value, End of Period $10.452 $ 7.070 Number of Units Outstanding, End of Period 0 0 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.176 Accumulation Unit Value, End of Period $10.176 $ 8.409 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.494 Accumulation Unit Value, End of Period $10.494 $ 7.172 Number of Units Outstanding, End of Period 0 0 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.484 Accumulation Unit Value, End of Period $10.484 $ 7.300 Number of Units Outstanding, End of Period 0 0 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.546 Accumulation Unit Value, End of Period $10.546 $ 8.024 Number of Units Outstanding, End of Period 0 0 83 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.648 Accumulation Unit Value, End of Period $10.648 $ 7.792 Number of Units Outstanding, End of Period 0 0 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.002 Accumulation Unit Value, End of Period $10.002 $ 9.946 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.617 Accumulation Unit Value, End of Period $10.617 $ 8.757 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.415 Accumulation Unit Value, End of Period $10.415 $ 9.227 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.626 Accumulation Unit Value, End of Period $10.626 $ 8.267 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.672 Accumulation Unit Value, End of Period $10.672 $ 7.290 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.241 Accumulation Unit Value, End of Period $10.241 $10.367 Number of Units Outstanding, End of Period 0 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $11.176 Accumulation Unit Value, End of Period $11.176 $ 7.811 Number of Units Outstanding, End of Period 0 0 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $11.524 Accumulation Unit Value, End of Period $11.524 $ 6.335 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.586 Accumulation Unit Value, End of Period $10.586 $ 9.149 Number of Units Outstanding, End of Period 0 0 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.932 Accumulation Unit Value, End of Period $10.932 $10.698 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $10.495 Accumulation Unit Value, End of Period $10.495 $ 8.376 Number of Units Outstanding, End of Period 0 0 84 PROSPECTUS GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $11.311 Accumulation Unit Value, End of Period $11.311 $ 9.425 Number of Units Outstanding, End of Period 0 0 GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.533 Accumulation Unit Value, End of Period $10.533 $ 8.062 Number of Units Outstanding, End of Period 0 0 LSA CAPITAL GROWTH(5) Accumulation Unit Value, Beginning of Period $10.000 $10.532 Accumulation Unit Value, End of Period $10.532 $ 7.803 Number of Units Outstanding, End of Period 0 LSA DIVERSIFIED MID CAP EQUITY Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.743 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH(5) Accumulation Unit Value, Beginning of Period $10.000 $10.459 Accumulation Unit Value, End of Period $10.459 $ 7.193 Number of Units Outstanding, End of Period 0 0 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.858 Accumulation Unit Value, End of Period $10.858 $ 7.038 Number of Units Outstanding, End of Period 0 0 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.368 Accumulation Unit Value, End of Period $10.368 $ 8.011 Number of Units Outstanding, End of Period 0 0 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $11.625 Accumulation Unit Value, End of Period $11.625 $ 7.769 Number of Units Outstanding, End of Period 0 0 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.606 Accumulation Unit Value, End of Period $10.606 $ 7.824 Number of Units Outstanding, End of Period 0 0 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $10.159 Accumulation Unit Value, End of Period $10.159 $ 7.676 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.675 Accumulation Unit Value, End of Period $10.675 $ 7.554 Number of Units Outstanding, End of Period 0 0 85 PROSPECTUS OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $10.661 Accumulation Unit Value, End of Period $10.661 $ 7.641 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $10.784 Accumulation Unit Value, End of Period $10.784 $ 8.229 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER MAIN STREET(6) Accumulation Unit Value, Beginning of Period $10.000 $10.446 Accumulation Unit Value, End of Period $10.446 $ 8.313 Number of Units Outstanding, End of Period 0 0 OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.165 Accumulation Unit Value, End of Period $10.165 $10.704 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.505 Accumulation Unit Value, End of Period $10.505 $ 8.340 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.525 Accumulation Unit Value, End of Period $10.525 $ 7.272 Number of Units Outstanding, End of Period 0 0 PUTNAM VT HEALTH SCIENCE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.232 Number of Units Outstanding, End of Period -- 0 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $10.370 Accumulation Unit Value, End of Period $10.370 $ 8.367 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.866 Accumulation Unit Value, End of Period $10.866 $ 8.987 Number of Units Outstanding, End of Period 0 0 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $10.850 Accumulation Unit Value, End of Period $10.850 $ 8.272 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.932 Accumulation Unit Value, End of Period $ 9.932 $10.447 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.340 Accumulation Unit Value, End of Period $10.340 $ 8.424 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S MID CAP CORE(8) Accumulation Unit Value, Beginning of Period $10.000 $11.070 Accumulation Unit Value, End of Period $11.070 $ 7.808 Number of Units Outstanding, End of Period 0 0 86 PROSPECTUS VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.944 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $10.727 Accumulation Unit Value, End of Period $10.727 $ 8.183 Number of Units Outstanding, End of Period 0 0
+ The Allstate Provider Extra Contracts were first offered on November 2, 2001. All Variable Sub-Accounts (except those indicated with one or two asterisks) were first offered under the Allstate Provider Extra Contracts on November 2, 2001. * These Variable Sub-Accounts were first offered under the Allstate Provider Extra Contracts on November 2, 2001. (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.90%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 87 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED (BASE POLICY)1 --------------------------------------------------------------------------------
ALLSTATE PROVIDER ULTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.618 Accumulation Unit Value, End of Period $ 8.618 $ 6.575 Number of Units Outstanding, End of Period 162 3,182 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $ 9.121 Accumulation Unit Value, End of Period $ 9.121 $ 7.459 Number of Units Outstanding, End of Period 17,262 42,779 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.61 Accumulation Unit Value, End of Period $ 8.61 $ 6.470 Number of Units Outstanding, End of Period 7,675 16,768 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $ 8.497 Accumulation Unit Value, End of Period $ 8.497 $ 7.076 Number of Units Outstanding, End of Period 0 11,578 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $ 8.470 Accumulation Unit Value, End of Period $ 8.470 $ 5.665 Number of Units Outstanding, End of Period 202 219 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 10.127 Accumulation Unit Value, End of Period $10.127 $ 10.220 Number of Units Outstanding, End of Period 1,291 4,757 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.395 Accumulation Unit Value, End of Period $ 8.395 $ 5.717 Number of Units Outstanding, End of Period 14,481 16,296 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.508 Accumulation Unit Value, End of Period $ 8.508 $ 7.077 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.853 Accumulation Unit Value, End of Period $ 8.853 $ 6.090 Number of Units Outstanding, End of Period 11,756 24,783 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.323 Accumulation Unit Value, End of Period $ 8.323 $ 5.834 Number of Units Outstanding, End of Period 209 1,569 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $ 9.409 Accumulation Unit Value, End of Period $ 9.409 $ 6.930 Number of Units Outstanding, End of Period 6,900 57,775 88 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.156 Accumulation Unit Value, End of Period $ 9.156 $ 6.744 Number of Units Outstanding, End of Period 904 2,715 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $ 10.124 Accumulation Unit Value, End of Period $10.124 $ 10.134 Number of Units Outstanding, End of Period 11,463 22,206 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.497 Accumulation Unit Value, End of Period $ 9.497 $ 7.886 Number of Units Outstanding, End of Period 1,656 1,722 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.456 Accumulation Unit Value, End of Period $ 9.456 $ 8.440 Number of Units Outstanding, End of Period 17.056 47,759 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.370 Accumulation Unit Value, End of Period $ 9.370 $ 7.658 Number of Units Outstanding, End of Period 35,300 122,842 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.681 Accumulation Unit Value, End of Period $ 8.681 $ 5.969 Number of Units Outstanding, End of Period 13,066 55,960 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.016 Accumulation Unit Value, End of Period $ 9.016 $ 9.188 Number of Units Outstanding, End of Period 2,936 14,304 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $ 9.286 Accumulation Unit Value, End of Period $ 9.286 $ 6.533 Number of Units Outstanding, End of Period 2,096 10,255 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $ 7.942 Accumulation Unit Value, End of Period $ 7.942 $ 4.395 Number of Units Outstanding, End of Period 261 281 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.833 Accumulation Unit Value, End of Period $ 9.833 $ 8.554 Number of Units Outstanding, End of Period 14,810 25,084 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.434 Accumulation Unit Value, End of Period $ 9.434 $ 9.293 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.776 Accumulation Unit Value, End of Period $ 8.776 $ 7.050 Number of Units Outstanding, End of Period 825 1,760 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 10.163 Accumulation Unit Value, End of Period $10.163 $ 8.525 Number of Units Outstanding, End of Period 0 3,169 89 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.015 Accumulation Unit Value, End of Period $ 9.015 $ 6.946 Number of Units Outstanding, End of Period 0 1,487 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 8.845 Accumulation Unit Value, End of Period $ 8.845 $ 6.599 Number of Units Outstanding, End of Period 0 2,448 LSA DIVERSIFIED MID-CAP Accumulation Unit Value, Beginning of Period -- $ 10.000 Accumulation Unit Value, End of Period -- $ 7.772 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 9.102 Accumulation Unit Value, End of Period $ 9.102 $ 6.302 Number of Units Outstanding, End of Period 302 1,102 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.158 Accumulation Unit Value, End of Period $ 8.158 $ 5.323 Number of Units Outstanding, End of Period 8,841 21,444 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.843 Accumulation Unit Value, End of Period $ 8.843 $ 6.878 Number of Units Outstanding, End of Period 16,089 27,727 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 9.619 Accumulation Unit Value, End of Period $ 9.619 $ 6.471 Number of Units Outstanding, End of Period 5,451 52,548 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.458 Accumulation Unit Value, End of Period $ 8.458 $ 6.281 Number of Units Outstanding, End of Period 6,555 20,274 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 7.546 Accumulation Unit Value, End of Period $ 7.546 $ 5.739 Number of Units Outstanding, End of Period 33,039 39,745 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.833 Accumulation Unit Value, End of Period $ 8.833 $ 6.292 Number of Units Outstanding, End of Period 19,725 70,033 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.693 Accumulation Unit Value, End of Period $ 8.693 $ 6.272 Number of Units Outstanding, End of Period 67,547 161,093 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.314 Accumulation Unit Value, End of Period $ 9.314 $ 7.154 Number of Units Outstanding, End of Period 12,351 41,764 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $ 9.171 Accumulation Unit Value, End of Period $ 9.171 $ 7.346 Number of Units Outstanding, End of Period 44,958 112,400 90 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $ 10.250 Accumulation Unit Value, End of Period $10.250 $ 10.864 Number of Units Outstanding, End of Period 22,387 94,592 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 9.217 Accumulation Unit Value, End of Period $ 9.217 $ 7.366 Number of Units Outstanding, End of Period 25,624 34,780 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 8.065 Accumulation Unit Value, End of Period $ 8.065 $ 5.610 Number of Units Outstanding, End of Period 3,456 697 PUTNAM VT HEALTH SCIENCES Accumulation Unit Value, Beginning of Period $10.000 $ 9.662 Accumulation Unit Value, End of Period $ 9.662 $ 7.592 Number of Units Outstanding, End of Period 10,884 38,840 PUTNAM VT INTERNATIONAL EQUITY (7) Accumulation Unit Value, Beginning of Period $10.000 $ 11.829 Accumulation Unit Value, End of Period $11.829 $ 9.607 Number of Units Outstanding, End of Period 0 372 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.574 Accumulation Unit Value, End of Period $ 9.574 $ 7.971 Number of Units Outstanding, End of Period 10,667 23,289 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 12.056 Accumulation Unit Value, End of Period $12.056 $ 9.253 Number of Units Outstanding, End of Period 0 1,048 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 10.455 Accumulation Unit Value, End of Period $10.455 $ 11.070 Number of Units Outstanding, End of Period 13,728 39,266 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.289 Accumulation Unit Value, End of Period $ 9.289 $ 7.618 Number of Units Outstanding, End of Period 383 2,703 VAN KAMPEN UIF U.S. MID CAP CORE (8) Accumulation Unit Value, Beginning of Period $10.000 $ 9.585 Accumulation Unit Value, End of Period $ 9.585 $ 6.806 Number of Units Outstanding, End of Period 2,965 15,157 VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $ 10.000 Accumulation Unit Value, End of Period -- $ 8.977 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.615 Accumulation Unit Value, End of Period $ 9.615 $ 7.384 Number of Units Outstanding, End of Period 1 1,226
*The Allstate Provider Ultra Contracts were first offered on May 1, 2001. All Variable Sub-Accounts commenced prior to May 1, 2001 except the Putnam VT International Growth, and Putnam VT Research Class IB which were first offered under the Contracts on September 21, 2001. There is no AUV information for the LSA Diversified Mid-Cap and Van Kampen UIF U.S. Real Estate Variable Sub-Accounts as they were first offered under the Contracts on May 1, 2002. 91 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.25%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 92 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED DEATH BENEFIT OPTION/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER ULTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.603 Accumulation Unit Value, End of Period $ 8.603 $ 6.547 Number of Units Outstanding, End of Period 2,604 3,314 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $ 9.106 Accumulation Unit Value, End of Period $ 9.106 $ 7.428 Number of Units Outstanding, End of Period 36,214 59,272 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.65 Accumulation Unit Value, End of Period $ 8.65 $ 6.443 Number of Units Outstanding, End of Period 34,586 34,536 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $ 8.482 Accumulation Unit Value, End of Period $ 8.482 $ 7.046 Number of Units Outstanding, End of Period 0 18,325 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $ 8.456 Accumulation Unit Value, End of Period $ 8.456 $ 5.641 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 10.109 Accumulation Unit Value, End of Period $10.109 $ 10.176 Number of Units Outstanding, End of Period 3,369 6.695 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.381 Accumulation Unit Value, End of Period $ 8.381 $ 5.692 Number of Units Outstanding, End of Period 6,203 4,499 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.493 Accumulation Unit Value, End of Period $ 8.493 $ 7.047 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.832 Accumulation Unit Value, End of Period $ 8.832 $ 6.065 Number of Units Outstanding, End of Period 35,582 44,074 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.309 Accumulation Unit Value, End of Period $ 8.309 $ 5.809 Number of Units Outstanding, End of Period 0 13,511 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $ 9.034 Accumulation Unit Value, End of Period $ 9.034 $ 6.901 Number of Units Outstanding, End of Period 3,055 34,428 93 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.140 Accumulation Unit Value, End of Period $ 9.140 $ 6.716 Number of Units Outstanding, End of Period 0 1,249 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $ 10.107 Accumulation Unit Value, End of Period $10.107 $ 10.091 Number of Units Outstanding, End of Period 0 2,198 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.481 Accumulation Unit Value, End of Period $ 9.481 $ 7.853 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.449 Accumulation Unit Value, End of Period $ 9.449 $ 8.404 Number of Units Outstanding, End of Period 15,928 26,8890 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.354 Accumulation Unit Value, End of Period $ 9.354 $ 7.626 Number of Units Outstanding, End of Period 48,170 100,659 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.666 Accumulation Unit Value, End of Period $ 8.666 $ 5.944 Number of Units Outstanding, End of Period 23,900 35,644 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.001 Accumulation Unit Value, End of Period $ 9.001 $ 9.149 Number of Units Outstanding, End of Period 6,849 47,369 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $ 9.270 Accumulation Unit Value, End of Period $ 9.270 $ 6.505 Number of Units Outstanding, End of Period 0 2,501 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $ 7.929 Accumulation Unit Value, End of Period $ 7.929 $ 4.376 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.816 Accumulation Unit Value, End of Period $ 9.816 $ 8.518 Number of Units Outstanding, End of Period 1,046 15,478 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.418 Accumulation Unit Value, End of Period $ 9.418 $ 9.254 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.761 Accumulation Unit Value, End of Period $ 8.761 $ 7.020 Number of Units Outstanding, End of Period 1,234 2,439 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 10.146 Accumulation Unit Value, End of Period $10.146 $ 8.489 Number of Units Outstanding, End of Period 0 1,225 94 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.000 Accumulation Unit Value, End of Period $ 9.000 $ 6.917 Number of Units Outstanding, End of Period 0 92 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 8.830 Accumulation Unit Value, End of Period $ 8.830 $ 6.571 Number of Units Outstanding, End of Period 0 1,876 LSA DIVERSIFIED MID-CAP Accumulation Unit Value, Beginning of Period -- $ 10.000 Accumulation Unit Value, End of Period -- $ 7.764 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 9.087 Accumulation Unit Value, End of Period $ 9.087 $ 6.275 Number of Units Outstanding, End of Period 198 689 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.144 Accumulation Unit Value, End of Period $ 8.144 $ 5.300 Number of Units Outstanding, End of Period 28,157 31,880 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.828 Accumulation Unit Value, End of Period $ 8.828 $ 6.849 Number of Units Outstanding, End of Period 20,784 27,105 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 9.602 Accumulation Unit Value, End of Period $ 9.602 $ 6.444 Number of Units Outstanding, End of Period 7,674 20,990 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.444 Accumulation Unit Value, End of Period $ 8.444 $ 6.255 Number of Units Outstanding, End of Period 14,559 14,381 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 7.533 Accumulation Unit Value, End of Period $ 7.533 $ 5.715 Number of Units Outstanding, End of Period 20,335 21,447 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.818 Accumulation Unit Value, End of Period $ 8.818 $ 6.266 Number of Units Outstanding, End of Period 11,201 27,413 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.678 Accumulation Unit Value, End of Period $ 8.678 $ 6.245 Number of Units Outstanding, End of Period 68,758 134,635 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.298 Accumulation Unit Value, End of Period $ 9.298 $ 7.124 Number of Units Outstanding, End of Period 26,672 27,128 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $ 9.155 Accumulation Unit Value, End of Period $ 9.155 $ 7.315 Number of Units Outstanding, End of Period 44,954 79,731 95 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $ 10.232 Accumulation Unit Value, End of Period $10.232 $ 10.818 Number of Units Outstanding, End of Period 37,733 110,799 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 9.202 Accumulation Unit Value, End of Period $ 9.202 $ 7.335 Number of Units Outstanding, End of Period 32,365 26,466 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 8.051 Accumulation Unit Value, End of Period $ 8.051 $ 5.586 Number of Units Outstanding, End of Period 2,002 7,046 PUTNAM VT HEALTH SCIENCES Accumulation Unit Value, Beginning of Period $10.000 $ 9.645 Accumulation Unit Value, End of Period $ 9.645 $ 7.560 Number of Units Outstanding, End of Period 8,615 15,785 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $ 11.820 Accumulation Unit Value, End of Period $11.820 $ 9.576 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.558 Accumulation Unit Value, End of Period $ 9.558 $ 7.937 Number of Units Outstanding, End of Period 11,841 16,427 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 12.048 Accumulation Unit Value, End of Period $12.048 $ 9.223 Number of Units Outstanding, End of Period 0 1,135 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 10.437 Accumulation Unit Value, End of Period $10.437 $ 11.023 Number of Units Outstanding, End of Period 98 35,731 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.274 Accumulation Unit Value, End of Period $ 9.274 $ 7.586 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S MID CAP CORE (8) Accumulation Unit Value, Beginning of Period $10.000 $ 9.568 Accumulation Unit Value, End of Period $ 9.568 $ 6.777 Number of Units Outstanding, End of Period 83 2,893 VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $ 10.000 Accumulation Unit Value, End of Period -- $ 8.968 Number of Units Outstanding, End of Period -- 590 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.568 Accumulation Unit Value, End of Period $ 9.599 $ 7.353 Number of Units Outstanding, End of Period 0 0
*The Allstate Provider Ultra Contracts were first offered on May 1, 2001. All Variable Sub-Accounts commenced prior to May 1, 2001 except the Putnam VT International Growth, and Putnam VT Research Class IB which were first offered under the Contracts on September 21, 2001. There is no AUV information for the LSA Diversified Mid-Cap and Van Kampen UIF U.S. Real Estate Variable Sub-Accounts as they were first offered under the Contracts on May 1, 2002. 96 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.50%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 97 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT RIDER/1/ --------------------------------------------------------------------------------
ALLSTATE PROVIDER ULTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1/+/ AND ENDING DECEMBER 31, 2001 2002 Variable Sub-Accounts AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.603 Accumulation Unit Value, End of Period $ 8.603 $ 6.547 Number of Units Outstanding, End of Period 530 3,166 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $ 9.106 Accumulation Unit Value, End of Period $ 9.106 $ 7.428 Number of Units Outstanding, End of Period 8,928 39,007 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.65 Accumulation Unit Value, End of Period $ 8.65 $ 6.443 Number of Units Outstanding, End of Period 7,427 12,814 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $ 8.482 Accumulation Unit Value, End of Period $ 8.482 $ 7.046 Number of Units Outstanding, End of Period 0 7,809 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $ 8.456 Accumulation Unit Value, End of Period $ 8.456 $ 5.641 Number of Units Outstanding, End of Period 0 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.109 Accumulation Unit Value, End of Period $10.109 $10.176 Number of Units Outstanding, End of Period 507 11,636 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.381 Accumulation Unit Value, End of Period $ 8.381 $ 5.692 Number of Units Outstanding, End of Period 4,883 7,263 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.493 Accumulation Unit Value, End of Period $ 8.493 $ 7.047 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.838 Accumulation Unit Value, End of Period $ 8.838 $ 6.065 Number of Units Outstanding, End of Period 15,056 43,253 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.309 Accumulation Unit Value, End of Period $ 8.309 $ 5.809 Number of Units Outstanding, End of Period 0 1,364 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $ 9.034 Accumulation Unit Value, End of Period $ 9.034 $ 6.901 Number of Units Outstanding, End of Period 2,060 15,918 98 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.140 Accumulation Unit Value, End of Period $ 9.140 $ 6.716 Number of Units Outstanding, End of Period 0 544 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.107 Accumulation Unit Value, End of Period $10.107 $10.091 Number of Units Outstanding, End of Period 4,062 17,969 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.481 Accumulation Unit Value, End of Period $ 9.481 $ 7.853 Number of Units Outstanding, End of Period 0 960 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.449 Accumulation Unit Value, End of Period $ 9.449 $ 8.404 Number of Units Outstanding, End of Period 4,269 11,387 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.354 Accumulation Unit Value, End of Period $ 9.354 $ 7.626 Number of Units Outstanding, End of Period 21,250 62,281 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.666 Accumulation Unit Value, End of Period $ 8.666 $ 5.944 Number of Units Outstanding, End of Period 2,130 6,031 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.001 Accumulation Unit Value, End of Period $ 9.001 $ 9.149 Number of Units Outstanding, End of Period 3,040 5,031 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $ 9.270 Accumulation Unit Value, End of Period $ 9.270 $ 6.505 Number of Units Outstanding, End of Period 509 4,832 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $ 7.929 Accumulation Unit Value, End of Period $ 7.929 $ 4.376 Number of Units Outstanding, End of Period 348 331 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.816 Accumulation Unit Value, End of Period $ 9.816 $ 8.518 Number of Units Outstanding, End of Period 3,552 18,783 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.418 Accumulation Unit Value, End of Period $ 9.418 $ 9.254 Number of Units Outstanding, End of Period 0 767 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.761 Accumulation Unit Value, End of Period $ 8.761 $ 7.020 Number of Units Outstanding, End of Period 1,036 8,733 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.146 Accumulation Unit Value, End of Period $10.146 $ 8.489 Number of Units Outstanding, End of Period 0 936 99 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.000 Accumulation Unit Value, End of Period $ 9.000 $ 6.917 Number of Units Outstanding, End of Period 0 1,021 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 8.830 Accumulation Unit Value, End of Period $ 8.830 $ 6.569 Number of Units Outstanding, End of Period 0 0 LSA DIVERSIFIED MID-CAP Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.764 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 9.087 Accumulation Unit Value, End of Period $ 9.087 $ 6.275 Number of Units Outstanding, End of Period 168 387 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.144 Accumulation Unit Value, End of Period $ 8.144 $ 5.300 Number of Units Outstanding, End of Period 6,533 25,642 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.828 Accumulation Unit Value, End of Period $ 8.828 $ 6.849 Number of Units Outstanding, End of Period 3,393 26,418 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 9.602 Accumulation Unit Value, End of Period $ 9.602 $ 6.444 Number of Units Outstanding, End of Period 2,355 5,904 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.444 Accumulation Unit Value, End of Period $ 8.444 $ 6.255 Number of Units Outstanding, End of Period 1,783 15,215 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 7.553 Accumulation Unit Value, End of Period $ 7.553 $ 5.715 Number of Units Outstanding, End of Period 6,058 4,973 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.818 Accumulation Unit Value, End of Period $ 8.818 $ 6.266 Number of Units Outstanding, End of Period 3,962 22,134 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.678 Accumulation Unit Value, End of Period $ 8.678 $ 6.245 Number of Units Outstanding, End of Period 9,979 53,979 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.298 Accumulation Unit Value, End of Period $ 9.298 $ 7.124 Number of Units Outstanding, End of Period 3,338 15,026 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $ 9.155 Accumulation Unit Value, End of Period $ 9.155 $ 7.315 Number of Units Outstanding, End of Period 14,089 34,714 100 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $10.232 Accumulation Unit Value, End of Period $10.232 $10.818 Number of Units Outstanding, End of Period 8,015 31,058 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 9.202 Accumulation Unit Value, End of Period $ 9.202 $ 7.335 Number of Units Outstanding, End of Period 0 0 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 8.051 Accumulation Unit Value, End of Period $ 8.051 $ 5.586 Number of Units Outstanding, End of Period 2,093 7,128 PUTNAM VT HEALTH SCIENCES Accumulation Unit Value, Beginning of Period $10.000 $ 9.645 Accumulation Unit Value, End of Period $ 9.645 $ 7.560 Number of Units Outstanding, End of Period 9,717 14,519 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $11.820 Accumulation Unit Value, End of Period $11.820 $ 9.576 Number of Units Outstanding, End of Period 0 179 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.558 Accumulation Unit Value, End of Period $ 9.558 $ 7.937 Number of Units Outstanding, End of Period 1,206 5,106 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $12.048 Accumulation Unit Value, End of Period $12.048 $ 9.223 Number of Units Outstanding, End of Period 257 337 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.437 Accumulation Unit Value, End of Period $10.437 $11.023 Number of Units Outstanding, End of Period 3,648 23,368 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.274 Accumulation Unit Value, End of Period $ 9.274 $ 7.586 Number of Units Outstanding, End of Period 0 0 VAN KAMPEN UIF U.S. MID CAP CORE (8) Accumulation Unit Value, Beginning of Period $10.000 $ 9.568 Accumulation Unit Value, End of Period $ 9.568 $ 6.777 Number of Units Outstanding, End of Period 1,343 2,377 VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- 8.968 Number of Units Outstanding, End of Period -- 0 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.599 Accumulation Unit Value, End of Period $ 9.599 $ 7.353 Number of Units Outstanding, End of Period 657 3,071
*The Allstate Provider Ultra Contracts were first offered on May 1, 2001. All Variable Sub-Accounts commenced prior to May 1, 2001 except the Putnam VT International Growth, and Putnam VT Research Class IB which were first offered under the Contracts on September 21, 2001. There is no AUV information for the LSA Diversified Mid-Cap and Van Kampen UIF U.S. Real Estate Variable Sub-Accounts as they were first offered under the Contracts on May 1, 2002. 101 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.50%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 102 PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT AND ENHANCED DEATH BENEFIT RIDERS1 --------------------------------------------------------------------------------
ALLSTATE PROVIDER ULTRA CONTRACTS FOR THE YEARS BEGINNING JANUARY 1+ AND ENDING DECEMBER 31, Variable Sub-Accounts 2001 2002 AIM V.I. AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.589 Accumulation Unit Value, End of Period $ 8.589 $ 6.547 Number of Units Outstanding, End of Period 122 3,314 AIM V.I. BALANCED Accumulation Unit Value, Beginning of Period $10.000 $ 9.090 Accumulation Unit Value, End of Period $ 9.090 $ 7.428 Number of Units Outstanding, End of Period 2,006 59,272 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.642 Accumulation Unit Value, End of Period $ 8.642 $ 6.443 Number of Units Outstanding, End of Period 16,080 34,536 AIM V.I. CORE EQUITY (2) Accumulation Unit Value, Beginning of Period $10.000 $ 8.468 Accumulation Unit Value, End of Period $ 8.468 $ 7.046 Number of Units Outstanding, End of Period 0 18,325 AIM V.I. DENT DEMOGRAPHIC TRENDS Accumulation Unit Value, Beginning of Period $10.000 $ 8.441 Accumulation Unit Value, End of Period $ 8.441 $ 5.641 Number of Units Outstanding, End of Period 843 0 AIM V.I. DIVERSIFIED INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.092 Accumulation Unit Value, End of Period $10.092 $10.176 Number of Units Outstanding, End of Period 38 6,695 AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.367 Accumulation Unit Value, End of Period $ 8.367 $ 5.692 Number of Units Outstanding, End of Period 13,911 4,499 AIM V.I. INTERNATIONAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.479 Accumulation Unit Value, End of Period $ 8.479 $ 7.047 Number of Units Outstanding, End of Period 0 0 AIM V.I. PREMIER EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.823 Accumulation Unit Value, End of Period $ 8.823 $ 6.065 Number of Units Outstanding, End of Period 22,170 44,074 THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.295 Accumulation Unit Value, End of Period $ 8.295 $ 5.809 Number of Units Outstanding, End of Period 0 13,511 DREYFUS STOCK INDEX Accumulation Unit Value, Beginning of Period $10.000 $ 9.018 Accumulation Unit Value, End of Period $ 9.018 $ 6.901 Number of Units Outstanding, End of Period 2,030 34,428 103 PROSPECTUS DREYFUS VIF GROWTH & INCOME Accumulation Unit Value, Beginning of Period $10.000 $ 9.124 Accumulation Unit Value, End of Period $ 9.124 $ 6.716 Number of Units Outstanding, End of Period 0 1,249 DREYFUS VIF MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $ 10.090 Accumulation Unit Value, End of Period $10.090 $ 10.091 Number of Units Outstanding, End of Period 3,777 2,198 FIDELITY VIP ASSET MANAGER: GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.456 Accumulation Unit Value, End of Period $ 9.456 $ 7.853 Number of Units Outstanding, End of Period 0 0 FIDELITY VIP CONTRAFUND(R) SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.433 Accumulation Unit Value, End of Period $ 9.433 $ 8.404 Number of Units Outstanding, End of Period 5,676 26,889 FIDELITY VIP EQUITY-INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.339 Accumulation Unit Value, End of Period $ 9.339 $ 7.626 Number of Units Outstanding, End of Period 16,281 100,659 FIDELITY VIP GROWTH SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.651 Accumulation Unit Value, End of Period $ 8.651 $ 5.944 Number of Units Outstanding, End of Period 2,064 35,644 FIDELITY VIP HIGH INCOME SERVICE CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.986 Accumulation Unit Value, End of Period $ 8.986 $ 9.149 Number of Units Outstanding, End of Period 5,100 47,369 FRANKLIN SMALL CAP(3) Accumulation Unit Value, Beginning of Period $10.000 $ 9.254 Accumulation Unit Value, End of Period $ 9.254 $ 6.505 Number of Units Outstanding, End of Period 1,972 2,501 FRANKLIN TECHNOLOGY SECURITIES*(4) Accumulation Unit Value, Beginning of Period $10.000 $ 7.915 Accumulation Unit Value, End of Period $ 7.915 $ 4.376 Number of Units Outstanding, End of Period 0 0 MUTUAL SHARES SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.800 Accumulation Unit Value, End of Period $ 9.800 $ 8.518 Number of Units Outstanding, End of Period 837 15,478 TEMPLETON DEVELOPING MARKETS SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 9.402 Accumulation Unit Value, End of Period $ 9.402 $ 9.254 Number of Units Outstanding, End of Period 0 0 TEMPLETON FOREIGN SECURITIES - CLASS 2 Accumulation Unit Value, Beginning of Period $10.000 $ 8.746 Accumulation Unit Value, End of Period $ 8.746 $ 7.020 Number of Units Outstanding, End of Period 119 2,439 GOLDMAN SACHS VIT CORE/SM /SMALL CAP EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.129 Accumulation Unit Value, End of Period $10.129 $ 8.489 Number of Units Outstanding, End of Period 0 1,225 104 PROSPECTUS GOLDMAN SACHS VIT CORE/SM/ U.S. EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.985 Accumulation Unit Value, End of Period $ 8.985 $ 6.917 Number of Units Outstanding, End of Period 0 92 LSA CAPITAL GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 8.815 Accumulation Unit Value, End of Period $ 8.815 $ 6.571 Number of Units Outstanding, End of Period 507 1,876 LSA DIVERSIFIED MID-CAP Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 7.764 Number of Units Outstanding, End of Period -- 0 LSA EQUITY GROWTH (5) Accumulation Unit Value, Beginning of Period $10.000 $ 9.072 Accumulation Unit Value, End of Period $ 9.072 $ 6.275 Number of Units Outstanding, End of Period 340 689 MFS EMERGING GROWTH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.130 Accumulation Unit Value, End of Period $ 8.130 $ 5.300 Number of Units Outstanding, End of Period 13,429 31,880 MFS INVESTORS TRUST SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.813 Accumulation Unit Value, End of Period $ 8.813 $ 6.849 Number of Units Outstanding, End of Period 4,190 27,105 MFS NEW DISCOVERY SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 9.586 Accumulation Unit Value, End of Period $ 9.586 $ 6.444 Number of Units Outstanding, End of Period 683 20,990 MFS RESEARCH SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 8.430 Accumulation Unit Value, End of Period $ 8.430 $ 6.255 Number of Units Outstanding, End of Period 936 14,381 MFS UTILITIES SERVICE CLASS Accumulation Unit Value, Beginning of Period $10.000 $ 7.520 Accumulation Unit Value, End of Period $ 7.520 $ 5.715 Number of Units Outstanding, End of Period 7,254 21,447 OPPENHEIMER AGGRESSIVE GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 8.803 Accumulation Unit Value, End of Period $ 8.803 $ 6.266 Number of Units Outstanding, End of Period 6,136 27,413 OPPENHEIMER CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 $ 8.663 Accumulation Unit Value, End of Period $ 8.663 $ 6.245 Number of Units Outstanding, End of Period 13,792 134,635 OPPENHEIMER GLOBAL SECURITIES Accumulation Unit Value, Beginning of Period $10.000 $ 9.282 Accumulation Unit Value, End of Period $ 9.282 $ 7.124 Number of Units Outstanding, End of Period 2,830 27,128 OPPENHEIMER MAIN STREET (6) Accumulation Unit Value, Beginning of Period $10.000 $ 9.140 Accumulation Unit Value, End of Period $ 9.140 $ 7.315 Number of Units Outstanding, End of Period 12,659 79,731 105 PROSPECTUS OPPENHEIMER STRATEGIC BOND Accumulation Unit Value, Beginning of Period $10.000 $ 10.215 Accumulation Unit Value, End of Period $10.215 $ 10.818 Number of Units Outstanding, End of Period 6,083 100,799 PUTNAM VT GROWTH AND INCOME CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 9.186 Accumulation Unit Value, End of Period $ 9.186 $ 7.335 Number of Units Outstanding, End of Period 642 26,466 PUTNAM VT GROWTH OPPORTUNITIES CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 8.037 Accumulation Unit Value, End of Period $ 8.037 $ 5.586 Number of Units Outstanding, End of Period 0 7,046 PUTNAM VT HEALTH SCIENCES Accumulation Unit Value, Beginning of Period $10.000 $ 9.629 Accumulation Unit Value, End of Period $ 9.629 $ 7.560 Number of Units Outstanding, End of Period 11,843 15,785 PUTNAM VT INTERNATIONAL EQUITY(7) Accumulation Unit Value, Beginning of Period $10.000 $ 11.812 Accumulation Unit Value, End of Period $11.812 $ 9.576 Number of Units Outstanding, End of Period 0 0 PUTNAM VT NEW VALUE Accumulation Unit Value, Beginning of Period $10.000 $ 9.542 Accumulation Unit Value, End of Period $ 9.542 $ 7.937 Number of Units Outstanding, End of Period 0 16,427 PUTNAM VT RESEARCH CLASS IB Accumulation Unit Value, Beginning of Period $10.000 $ 12.040 Accumulation Unit Value, End of Period $12.040 $ 9.223 Number of Units Outstanding, End of Period 0 1,135 VAN KAMPEN UIF CORE PLUS FIXED INCOME Accumulation Unit Value, Beginning of Period $10.000 $10.420 Accumulation Unit Value, End of Period $10.420 $11.023 Number of Units Outstanding, End of Period 1,283 35,731 VAN KAMPEN UIF GLOBAL VALUE EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 9.258 Accumulation Unit Value, End of Period $ 9.258 $ 7.586 Number of Units Outstanding, End of Period 54 0 VAN KAMPEN UIF U.S. MID CAP CORE (8) Accumulation Unit Value, Beginning of Period $10.000 $ 9.552 Accumulation Unit Value, End of Period $ 9.552 $ 6.777 Number of Units Outstanding, End of Period 3,078 2,893 VAN KAMPEN UIF U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- $10.000 Accumulation Unit Value, End of Period -- $ 8.968 Number of Units Outstanding, End of Period -- 590 VAN KAMPEN UIF VALUE Accumulation Unit Value, Beginning of Period $10.000 $9.583 Accumulation Unit Value, End of Period $ 9.583 $ 7.353 Number of Units Outstanding, End of Period 0 0
*The Allstate Provider Ultra Contracts were first offered on May 1, 2001. All Variable Sub-Accounts commenced prior to May 1, 2001 except the Putnam VT International Growth, and Putnam VT Research Class IB which were first offered under the Contracts on September 21, 2001. There is no AUV information for the LSA Diversified Mid-Cap and Van Kampen UIF U.S. Real Estate Variable Sub-Accounts as they were first offered under the Contracts on May 1, 2002. 106 PROSPECTUS (1) The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.75%. (2) Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective from growth of capital with a secondary objective of current income, to growth of capital. (3) Effective May 1, 2002, the Franklin Global Health Care Portfolio merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2002, we combined the Franklin Global Health Care Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (4) Effective May 1, 2003 the Franklin Technology Securities Fund merged into the Franklin Small Cap Fund. Accordingly, for administrative convenience, on May 1, 2003, we combined the Franklin Technology Securities Variable Sub-Account into the Franklin Small Cap Variable Sub-Account. (5) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. We have made a corresponding change in the name of the Variable Sub-Account that invest in that Portfolio. (6) Effective May 1, 2003, the Portfolio changed its name from the Oppenheimer Main Street Growth and Income Fund to the Oppenheimer Main Street Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (7) Effective May 1, 2003, the Portfolio changed its name from the Putnam VT International Growth Fund to the Putnam VT International Equity Fund. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. (8) Effective May 1, 2003, the Portfolio changed its name from the Van Kampen UIF Mid Cap Value Portfolio to the Van Kampen UIF U.S. Mid Cap Core Portfolio. We have made a corresponding change in the name of the Variable Sub-Account that invests in that Portfolio. 107 PROSPECTUS APPENDIX B MARKET VALUE ADJUSTMENT EXAMPLES -------------------------------------------------------------------------------- The Market Value Adjustment is based on the following: I = the Treasury Rate for a maturity equal to the Guarantee Period for the week preceding the establishment of the Guarantee Period. N = the number of whole and partial years from the date we receive the withdrawal, transfer, or death benefit request, or from the Payout Start Date to the end of the Guarantee Period. J = the Treasury Rate for a maturity equal to the Guarantee Period for the week preceding the receipt of the withdrawal, transfer, death benefit, or income payment request.* Treasury Rate means the U.S. Treasury Note Constant Maturity yield as reported in Federal Reserve Bulletin Release H.15. *If a U.S. Treasury Note ("Note") with a maturity of the Guarantee Period is not available, we will determine an appropriate interest rate based on an interpolation of the next shortest duration and next longest duration Notes. The Market Value Adjustment factor is determined from the following formula: .9 X [I-(J + .0025)] X N To determine the Market Value Adjustment, we will multiply the Market Value Adjustment factor by the amount transferred, withdrawn (in excess of the Free Withdrawal Amount), paid as a death benefit, or applied to an Income Plan from a Guarantee Period at any time other than during the 30 day period after such Guarantee Period expires. 108 PROSPECTUS EXAMPLES OF MARKET VALUE ADJUSTMENT -------------------------------------------------------------------------------- Purchase Payment: $10,000 (plus Credit Enhancement of $400 for ALLSTATE PROVIDER EXTRA CONTRACTS) allocated to a Guarantee Period Guarantee Period: 5 years Interest Rate: 4.50% Full Surrender: End of Contract Year 3 NOTE: These examples assume that premium taxes are not applicable. EXAMPLE 1 FOR ALLSTATE PROVIDER ADVANTAGE CONTRACTS (ASSUMES DECLINING INTEREST RATES)
Step 1. Calculate Contract $10,000.00 X (1.045)/3 /= $11,411.66 Value at End of Contract Year 3: Step 2. Calculate the Free .15 X ($10,000.00) = $1,500.00 Withdrawal Amount: Step 3. Calculate the Market I = 4.5% Value Adjustment: J = 4.2% N = 730 days =2 -------- 365 days Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.042 + .0025)] X 2 = .0009 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: = .0009 X ($11,411.66 - $1,500.00) = $8.92 Step 4. Calculate the amount $11,411.66 + $8.92 = $11,420.58 received by a Contract owner as a result of full withdrawal at the end of Contract Year 3:
109 PROSPECTUS EXAMPLE 2: FOR ALLSTATE PROVIDER ADVANTAGE CONTRACTS (ASSUMES RISING INTEREST RATES)
Step 1. Calculate Contract $10,000.00 X (1.045)/3 /= $11,411.66 Value at End of Contract Year 3: Step 2. Calculate the Free .15 X ($10,000.00) = $1,500.00 Withdrawal Amount: Step 3. Calculate the Market I = 4.5% Value Adjustment: J = 4.8% N = 730 days =2 -------- 365 days Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.048 + .0025)] X 2 = -.0099 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: = -.0099 X ($11,411.66 - $1,500.00) = -$98.13 Step 4. Calculate the amount $11,411.66 - $98.13 = $11,313.53 received by a Contract owner as a result of full withdrawal at the end of Contract Year 3:
EXAMPLE 3: FOR ALLSTATE PROVIDER ULTRA CONTRACTS (ASSUMES DECLINING INTEREST RATES)
Step 1. Calculate Contract $10,000.00 X (1.045)/3 /= $11,411.66 Value at End of Contract Year 3: Step 2. Calculate the Free .15 X ($10,000.00) = $1,500.00 Withdrawal Amount: Step 3. Calculate the = .06 X ($10,000 - $1,500) = $510.00 Withdrawal Charge: Step 4. Calculate the Market I = 4.50% Value Adjustment: J = 4.20% N = 730 days =2 -------- 365 days Market Value Adjustment Factor:.9 X [I - (J +.0025)] X N =.9 X [.045 - (.042 +.0025)] X 2 =.0009 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: =.0009 X ($11,411.66 - $1,500.00) = $8.92 Step 5. Calculate the amount $11,411.66 - $510.00 + $8.92 = $10,910.58 received by a Contract owner as a result of full withdrawal at the end of Contract Year 3:
110 PROSPECTUS EXAMPLE 4: FOR ALLSTATE PROVIDER ULTRA CONTRACTS (ASSUMES RISING INTEREST RATES)
Step 1. Calculate Contract $10,000.00 X (1.045)/3 /= $11,411.66 Value at End of Contract Year 3: Step 2. Calculate the Free .15 X ($10,000.00) = $1,500.00 Withdrawal Amount: Step 3. Calculate the = .06 X ($10,000 - $1,500) = $510.00 Withdrawal Charge Step 4. Calculate the Market I = 4.50% Value Adjustment: J = 4.80% N = 730 days =2 -------- 365 days Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.048 + .0025)] X 2 = -.0099 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: = -.0099 X ($11,411.66 - $1,500.00) = -($98.13) Step 5. Calculate the amount $11,411.66 - $510.00 - $98.13 = $10,803.53 received by a Contract owner as a result of full withdrawal at the end of Contract Year 3:
EXAMPLE 5: FOR ALLSTATE PROVIDER EXTRA CONTRACTS (ASSUMES DECLINING INTEREST RATES)
Step 1. Calculate Contract $10,400.00 X (1.045)/3 /= $11,868.13 Value at End of Contract Year 3: Step 2. Calculate the Free .15 X ($10,000.00) = $1,500.00 Withdrawal Amount: Step 3. Calculate the Withdrawal Charge: = .08 X ($10,000 - $1,500) = $680 Step 4. Calculate the Market I = 4.5% Value Adjustment: J = 4.2% N = 730 days =2 -------- 365 days Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.042 + .0025)] X 2 = .0009 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: = .0009 X ($11,868.13 - $1,500.00) = $9.33 Step 5. Calculate the amount $11,868.13 - $680.00 + $9.33= $11,197.46 received by a Contract owner as a result of full withdrawal at the end of Contract Year 3:
111 PROSPECTUS EXAMPLE 6: ALLSTATE PROVIDER EXTRA CONTRACTS (ASSUMES RISING INTEREST RATES)
Step 1. Calculate Contract Value at End $10,400.00 X (1.045)/3 /= $11,868.13 of Contract Year 3: Step 2. Calculate the Free Withdrawal .15 X ($10,000.00) = $1,500.00 Amount: Step 3. Calculate the Withdrawal Charge: = .08 X ($10,000 - $1,500) = $680 Step 4. Calculate the Market Value I = 4.5% Adjustment: J = 4.8% N = 730 days =2 -------- 365 days Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.048 + .0025)] X 2 = -.0099 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject to Market Value Adjustment: = -.0099 X ($11,868.13 - $1,500.00) = ( $102.64) Step 5. Calculate the amount received by $11,868.13 - $680.00 - $102.64 = a Contract owner as a result of full $11,085.49 withdrawal at the end of Contract Year 3:
112 PROSPECTUS APPENDIX C CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT AMOUNT -------------------------------------------------------------------------------- ALLSTATE PROVIDER ADVANTAGE AND PROVIDER EXTRA CONTRACTS EXAMPLE1. In this example, assume that the oldest Owner is age 55 at the time the Contract is issued and elects the Enhanced Earnings Death Benefit Rider when the Contract is issued. The Owner makes an initial purchase payment of $100,000. After four years, the Owner dies. On the date Glenbrook receives Due Proof of Death, the Contract Value is $125,000. Prior to his death, the Owner did not make any additional purchase payments or take any withdrawals. Excess-of-Earnings Withdrawals = $0 Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $100,000 ($100,000 + $0 - $0) In-Force Earnings = $25,000 ($125,000 - $100,000) Enhanced Earnings Death Benefit = 40% X $25,000 = $10,000. Since 40% In-Force Earnings are less than 80% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the In-Force Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 2. In the second example, assume the same facts as above, except that the Owner has taken a withdrawal of $10,000 during the second year of the Contract. At the time the withdrawal is taken, the Contract Value is $105,000. Here, $5,000 of the withdrawal is in excess of the In-Force Earnings at the time of the withdrawal. The Contract Value on the date Glenbrook receives due proof of death will be assumed to be $114,000. Excess of Earnings Withdrawals = $5,000 ($10,000 - $5,000) Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $95,000 ($100,000 + $0 - $5,000) In-Force Earnings = $19,000 ($114,000 - $95,000) Enhanced Earnings Death Benefit = 40% X $19,000 = $7,600. Since 40% In-Force Earnings are less than 80% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the In-Force Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 3. This third example is intended to illustrate the effect of adding the Enhanced Earnings Death Benefit Rider after the Contract has been issued and the effect of later purchase payments. In this example, assume that the oldest Owner is age 65 on the Rider Date. At the time the Contract is issued, the Owner makes a purchase payment of $100,000. After two years pass, the Owner elects to add the Enhanced Earnings Death Benefit Rider. On the date this Rider is added, the Contract Value is $110,000. Two years later, the Owner withdraws $50,000. Immediately prior to the withdrawal, the Contract Value is $130,000. Another two years later, the Owner makes an additional purchase payment of $40,000. Immediately after the additional purchase payment, the Contract Value is $130,000. Two years later, the owner dies with a Contract Value of $140,000 on the date Glenbrook receives Due Proof of Death. Excess of Earnings Withdrawals = $30,000 ($50,000 - $20,000) Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $120,000 ($110,000 + $40,000 - $30,000) In-Force Earnings = $20,000 ($140,000 - $120,000) Enhanced Earnings Death Benefit = 30% of $20,000 = $6,000. In this example, In-Force Premium is equal to the Contract Value on the date the Rider was issued plus the additional purchase payment and minus the Excess-of-Earnings Withdrawal. Since 30% In-Force Earnings are less than 60% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the In-Force Earnings are used to compute the Enhanced Earnings Death Benefit amount. 113 PROSPECTUS ALLSTATE PROVIDER ULTRA CONTRACTS EXAMPLE1. In this example, assume that the oldest Owner is age 55 at the time the Contract is issued and elects the Enhanced Earnings Death Benefit Rider when the Contract is issued. The Owner makes an initial purchase payment of $100,000. After four years, the Owner dies. On the date Glenbrook receives Due Proof of Death, the Contract Value is $125,000. Prior to his death, the Owner did not make any additional purchase payments or take any withdrawals. Excess-of-Earnings Withdrawals = $0 Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $100,000 ($100,000 + $0 - $0) Death Benefit Earnings = $25,000 ($125,000 - $100,000) Enhanced Earnings Death Benefit = 40% X $25,000 = $10,000. Since Death Benefit Earnings are less than 200% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 2. In the second example, assume the same facts as above, except that the Owner has taken a withdrawal of $10,000 during the second year of the Contract. At the time the withdrawal is taken, the Contract Value is $105,000. Here, $5,000 of the withdrawal is in excess of the Death Benefit Earnings at the time of the withdrawal. The Contract Value on the date Glenbrook receives due proof of death will be assumed to be $114,000. Excess of Earnings Withdrawals = $5,000 ($10,000 - $5,000) Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $95,000 ($100,000 + $0 -$5,000) Death Benefit Earnings = $19,000 ($114,000 - $95,000) Enhanced Earnings Death Benefit = 40% X $19,000 = $7,600. Since Death Benefit Earnings are less than 200% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 3. This third example is intended to illustrate the effect of adding the Enhanced Earnings Death Benefit Rider after the Contract has been issued and the effect of later purchase payments. In this example, assume that the oldest Owner is age 65 on the Rider Date. At the time the Contract is issued, the Owner makes a purchase payment of $100,000. After two years pass, the Owner elects to add the Enhanced Earnings Death Benefit Rider. On the date this Rider is added, the Contract Value is $110,000. Two years later, the Owner withdraws $50,000. Immediately prior to the withdrawal, the Contract Value is $130,000. Another two years later, the Owner makes an additional purchase payment of $40,000. Immediately after the additional purchase payment, the Contract Value is $130,000. Two years later, the owner dies with a Contract Value of $140,000 on the date Glenbrook receives Due Proof of Death. Excess of Earnings Withdrawals = $30,000 ($50,000 - $20,000) Purchase payments in the 12 months prior to Death = $0 In-Force Premium = $120,000 ($110,000 + $40,000 - $30,000) Death Benefit Earnings = $20,000 ($140,000 - $120,000) Enhanced Earnings Death Benefit = 30% of $20,000 = $6,000. In this example, In-Force Premium is equal to the Contract Value on the date the Rider was issued plus the additional purchase payment and minus the Excess-of-Earnings Withdrawal. Since Death Benefit Earnings are less than 200% of the In-Force Premium (excluding purchase payments in the 12 months prior to death), the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. 114 PROSPECTUS STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DESCRIPTION -------------------------------------------------------------------------------- ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS -------------------------------------------------------------------------------- THE CONTRACT -------------------------------------------------------------------------------- Purchases of Contracts -------------------------------------------------------------------------------- Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) -------------------------------------------------------------------------------- PERFORMANCE INFORMATION -------------------------------------------------------------------------------- Standardized Total Returns -------------------------------------------------------------------------------- Non-standardized Total Returns -------------------------------------------------------------------------------- Adjusted Historical Total Returns -------------------------------------------------------------------------------- CALCULATION OF ACCUMULATION UNIT VALUES -------------------------------------------------------------------------------- CALCULATION OF VARIABLE INCOME PAYMENTS -------------------------------------------------------------------------------- CALCULATION OF ANNUITY UNIT VALUES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DESCRIPTION -------------------------------------------------------------------------------- GENERAL MATTERS -------------------------------------------------------------------------------- Incontestability -------------------------------------------------------------------------------- Settlements -------------------------------------------------------------------------------- Safekeeping of the Variable Account's -------------------------------------------------------------------------------- Assets -------------------------------------------------------------------------------- Premium Taxes -------------------------------------------------------------------------------- Tax Reserves -------------------------------------------------------------------------------- FEDERAL TAX MATTERS -------------------------------------------------------------------------------- QUALIFIED PLANS -------------------------------------------------------------------------------- EXPERTS -------------------------------------------------------------------------------- FINANCIAL STATEMENTS -------------------------------------------------------------------------------- THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS. 115 PROSPECTUS THE ALLSTATE/R/ PROVIDER VARIABLE ANNUITY SERIES Glenbrook Life and Annuity Company Statement of Additional Information Multi-Manager Variable Account Dated May 1, 2003 Post Office Box 94092 Palatine, IL 60094-4039 1 (800) 755-5275 This Statement of Additional Information supplements the information in the prospectus for the following Allstate/R/ Provider Variable Annuity Series Contracts that we offer: The Allstate/R/ Provider Advantage Variable Annuity (Formerly referred to as "The Glenbrook Provider Advantage Variable Annuity") The Allstate/R/ Provider Ultra Variable Annuity (Formerly referred to as "The Glenbrook Provider Ultra Variable Annuity") The Allstate/R/ Provider Extra Variable Annuity (Formerly referred to as "The Glenbrook Provider Extra Variable Annuity") Not all Contracts may be available in all states or through your representative. Please check with your representative for details. This Statement of Additional Information does not constitute an offer of any Contract in such cases. This Statement of Additional Information is not a prospectus. You should read it with the prospectus, dated May 1, 2003, for each Contract. You may obtain a prospectus by calling or writing us at the address or telephone number listed above. For convenience, we use the terms "Contract" and "Contracts" to refer generally to all three Contracts, except as specifically noted. Except as otherwise noted, this Statement of Additional Information uses the same defined terms as the prospectus for each Contract. The Allstate(R) Provider Variable Annuity Series Contracts are offered through multiple sales channels that may offer different combinations of the Variable Sub-Accounts. If you own a Allstate(R) Provider Variable Annuity Series Contract, please refer to your prospectus for the Variable Sub-Accounts available under your Contract. TABLE OF CONTENTS Description Additions, Deletions or Substitutions of Investments The Contract Purchases of Contracts Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) Performance Information Standardized Total Returns Non-standardized Total Returns Adjusted Historical Total Returns Calculation of Accumulation Unit Values NET Investment Factor Calculation of Variable Income Payments Calculation of Annuity Unit Values General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves Experts Appendix 1 Appendix 2 Appendix 3 Financial Statements ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS We may add, delete, or substitute the Portfolio shares held by any Variable Sub-Account to the extent the law permits. We may substitute shares of any Portfolio with those of another portfolio of the same or different mutual fund if the shares of the Portfolio are no longer available for investment, or if we believe investment in any Portfolio would become inappropriate in view of the purposes of the Variable Account. We will not substitute shares attributable to a Contract owner's interest in a Variable Sub-Account until we have notified the Contract owner of the change, and until the Securities and Exchange Commission has approved the change, to the extent such notification and approval are required by law. Nothing contained in this Statement of Additional Information shall prevent the Variable Account from purchasing other securities for other series or classes of contracts, or from effecting a conversion between series or classes of contracts on the basis of requests made by Contract owners. We also may establish additional Variable Sub-Accounts or series of Variable Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a new Portfolio of the same or different mutual fund. We may establish new Variable Sub-Accounts when we believe marketing needs or investment conditions warrant. We determine the basis on which we will offer any new Variable Sub-Accounts in conjunction with the Contract with existing Contract owners. We may eliminate one or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or investment conditions so warrant. We may, by appropriate endorsement, change the Contract as we believe necessary or appropriate to reflect any substitution or change in the Portfolios. If we believe the best interests of persons having voting rights under the Contracts would be served, we may operate the Variable Account as a management company under the Investment Company Act of 1940 or we may withdraw its registration under such Act if such registration is no longer required. THE CONTRACT The Contract is primarily designed to aid individuals in long-term financial planning. You can use it for retirement planning regardless of whether the retirement plan qualifies for special federal income tax treatment. PURCHASE OF CONTRACTS We offer the Contracts to the public through banks as well as brokers licensed under the federal securities laws and state insurance laws. The principal underwriter for the Variable Account, ALFS, Inc. ("ALFS"), distributes the Contracts. ALFS is an affiliate of Glenbrook. The offering of the Contracts is continuous. We do not anticipate discontinuing the offering of the Contracts, but we reserve the right to do so at any time. TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS) We accept purchase payments that are the proceeds of a Contract in a transaction qualifying for a tax-free exchange under Section 1035 of the Internal Revenue Code ("Code"). Except as required by federal law in calculating the basis of the Contract, we do not differentiate between Section 1035 purchase payments and non-Section 1035 purchase payments. We also accept "rollovers" and transfers from Contracts qualifying as tax-sheltered annuities ("TSAs"), individual retirement accounts ("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other Qualified Contracts to the extent necessary to comply with federal tax laws. For example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the Contracts will continue to qualify for special tax treatment. A Contract owner contemplating any such exchange, rollover or transfer of a Contract should contact a competent tax adviser with respect to the potential effects of such a transaction. PERFORMANCE INFORMATION From time to time we may advertise the "standardized," and "non-standardized," total returns of the Variable Sub-Accounts, as described below. Please remember that past performance is not an estimate or guarantee of future performance and does not necessarily represent the actual experience of amounts invested by a particular Contract owner. Also, please note that the performance figures shown do not reflect any applicable taxes. STANDARDIZED TOTAL RETURNS A Variable Sub-Account's standardized total return represents the average annual total return of that Sub-Account over a particular period. We compute standardized total return by finding the annual percentage rate that, when compounded annually, will accumulate a hypothetical $1,000 purchase payment to the redeemable value at the end of the one, five or ten year period, or for a period from the date of commencement of the Variable Sub-Account's operations, if shorter than any of the foregoing. We use the following formula prescribed by the SEC for computing standardized total return: 1000(1 + T)(nth power) = ERV where: T = average annual total return ERV = ending redeemable value of a hypothetical $1,000 payment (plus $40 credit thereon for Allstate Provider Extra Contracts only) made at the beginning of 1, 5, or 10 year periods or shorter period n = number of years in the period 1000 = hypothetical $1,000 investment (plus $40 credit thereon for ALLSTATE PROVIDER EXTRA CONTRACTS only) For Allstate Provider Ultra and Allstate Provider Extra Contracts, when factoring in the withdrawal charge assessed upon redemption, we exclude the Free Withdrawal Amount, which is the amount you can withdraw from the Contract without paying a withdrawal charge. We also use the withdrawal charge that would apply upon redemption at the end of each period. Thus, for example, when factoring in the withdrawal charge for a one year standardized total return calculation, we would use the withdrawal charge that applies to a withdrawal of a purchase payment made one year prior. When factoring in the contract maintenance charge, we deduct the annual Contract maintenance charge of $35. In addition, where the Enhanced Earnings Death Benefit Rider is included, the performance shown reflects the deduction of the annual Rider fee equal to 0.35% of the Contract Value (assumes age 66-75). See the Expense Table in the Prospectus for more details. The standardized total returns for the Variable Sub-Accounts, for the periods ended December 31, 2002, are set out in Appendices 1 through 3 to this Statement of Additional Information. The Allstate Provider Advantage, Allstate Provider Ultra, and Allstate Provider Extra Contracts were first offered to the public on September 17, 2001, May 1, 2001, and November 2, 2001, respectively. Accordingly, performance shown for periods prior to those dates reflects the performance of the Variable Sub-Accounts, adjusted to reflect the current charges under the Contracts as if they had been available throughout the periods shown. NON-STANDARDIZED TOTAL RETURNS From time to time, we also may quote rates of return that reflect changes in the values of each Variable Sub-Account's accumulation units. We may quote these "non-standardized total returns" on an annualized, cumulative, year-by-year, or other basis. These rates of return take into account asset-based charges, such as the mortality and expense risk charge and administrative expense charge. However, these rates of return may omit one or more charges, such as withdrawal charges or the contract maintenance charge. Such charges, if reflected, would reduce the performance shown. Non-standardized total returns that do not reflect withdrawal charges also do not take into account the amount of any applicable Credit Enhancement under the Allstate Provider Extra Contracts. Annualized returns reflect the rate of return that, when compounded annually, would equal the cumulative rate of return for the period shown. We compute annualized returns according to the following formula: Annualized Return = (1 + r)1/n -1 where: r = cumulative rate of return for the period shown, and n = number of years in the period.
The method of computing annualized rates of return is similar to that for computing standardized performance, described above, except that rather than using a hypothetical $1,000 investment and the ending redeemable value thereof, we use the changes in value of an accumulation unit. Cumulative rates of return reflect the cumulative change in value of an accumulation unit over the period shown. Year-by-year rates of return reflect the change in value of an accumulation unit during the course of each year shown. We compute these returns by dividing the accumulation unit value at the end of each period shown, by the accumulation unit value at the beginning of that period, and subtracting one. We compute other total returns on a similar basis. We may quote non-standardized total returns for 1, 3, 5 and 10 year periods, or period since inception of the Variable Sub-Account's or underlying Portfolio's operations, as well as other periods, such as "year-to-date" (prior calendar year end to the day stated in the advertisement); "year to most recent quarter" (prior calendar year end to the end of the most recent quarter); the prior calendar year; and the "n" most recent calendar years. Where Contracts (or optional riders) are first offered after the inception date of a Variable Sub-Account or Portfolio, the non-standardized performance will reflect the performance of the Variable Sub-Account or Portfolio, adjusted to reflect, to the extent indicated, the current contract charges (and available riders) under the Contracts as if they had been available throughout the periods shown. Adjusted Historical Total Returns Method 1 We may advertise non-standardized total return for periods prior to the date that the Variable Sub-Accounts commenced operations. We calculate such "adjusted historical total returns," using the non-standardized total returns formula, described above, computed from, the inception dates of the underlying Portfolios in which the Variable Sub-Accounts invest and adjust such performance to reflect the current level of charges that apply to the Variable Sub-Accounts under each Contract. Under Method 1, we do not include the withdrawal charge or contract maintenance charge. The adjusted historical total returns for the Variable Sub-Accounts using Method 1 for the periods ended December 31, 2002 are set out in Appendices 1 through 3 to this Statement of Additional Information. The adjusted historical total returns method 1 shown below do not include the 4% credit enhancement available under the Allstate Provider Extra Contract. Adjusted Historical Total Returns Method 2 We also may advertise the adjusted historical total return using the standardized total returns formula computed from the inception dates of the underlying Portfolios and adjusting such performance to reflect the current level of charges that apply to the Variable Sub-Accounts under each Contract including the withdrawal charge and contract maintenance charge. The adjusted historical total returns for the Variable Sub-Accounts using this method for the periods ended December 31, 2002 are set out in Appendices 1 through 3 to this Statement of Additional Information. The adjusted historical total returns method 2 shown below include the 4% credit enhancement available under the Allstate Provider Extra Contract. CALCULATION OF ACCUMULATION UNIT VALUES The value of Accumulation Units will change each Valuation Period according to the investment performance of the Portfolio shares purchased by each Variable Sub-Account and the deduction of certain expenses and charges. A "Valuation Period" is the period from the end of one Valuation Date and continues to the end of the next Valuation Date. A Valuation Date ends at the close of regular trading on the New York Stock Exchange (currently 3:00 p.m. Central Time). The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period equals the Accumulation Unit Value as of the immediately preceding Valuation Period, multiplied by the Net Investment Factor (described below) for that Sub-Account for the current Valuation Period. NET INVESTMENT FACTOR The Net Investment Factor for a Valuation Period is a number representing the change, since the last Valuation Period, in the value of Sub-account assets per Accumulation Unit due to investment income, realized or unrealized capital gain or loss, deductions for taxes, if any, and deductions for the mortality and expense risk charge and administrative expense charge. We determine the Net Investment Factor for each Variable Sub-Account for any Valuation Period by dividing (A) by (B) and subtracting (C) from the result, where: (A) Is the sum of: (1) the net asset value per share of the mutual fund underlying the sub-account determined at the end of the current Valuation Period, plus (2) the per share amount of any dividend or capital gain distributions made by the mutual fund underlying the subaccount during the current Valuation Period. (B) Is by the net asset value per share of the mutual fund underlying the sub-account determined as of the end of the immediately preceding Valuation Period. (C) Is the sum of the Mortality and Expense Risk Charge, and the Administrative Expense Charge, corresponding to the portion of the 365-day year (366 days for a Leap Year) that is in the current Valuation Period. CALCULATION OF VARIABLE INCOME PAYMENTS We calculate the amount of the first variable income payment under an Income Plan by applying the Contract Value allocated to each Variable Sub-Account less any applicable premium tax charge deducted at the time, to the income payment tables in the Contract. We divide the amount of the first variable annuity income payment by the Variable Sub-Account's then current Annuity Unit value to determine the number of annuity units ("Annuity Units") upon which later income payments will be based. To determine income payments after the first, we simply multiply the number of Annuity Units determined in this manner for each Variable Sub-Account by the then current Annuity Unit value ("Annuity Unit Value") for that Variable Sub-Account. CALCULATION OF ANNUITY UNIT VALUES Annuity Units in each Variable Sub-Account are valued separately and Annuity Unit Values will depend upon the investment experience of the particular Portfolio in which the Variable Sub-Account invests. We calculate the Annuity Unit Value for each Variable Sub-Account at the end of any Valuation Period by: o multiplying the Annuity Unit Value at the end of the immediately preceding Valuation Period by the Variable Sub-Account's Net Investment Factor (described in the preceding section) for the Period; and then o dividing the product by the sum of 1.0 plus the assumed investment rate for the Valuation Period. The assumed investment rate adjusts for the interest rate assumed in the income payment tables used to determine the dollar amount of the first variable income payment, and is at an effective annual rate which is disclosed in the Contract. We determine the amount of the first variable income payment paid under an Income Plan using the income payment tables set out in the Contracts. The Contracts include tables that differentiate on the basis of sex, except in states that require the use of unisex tables. GENERAL MATTERS INCONTESTABILITY We will not contest the Contract after we issue it. SETTLEMENTS The Contract must be returned to us prior to any settlement. We must receive due proof of the Contract owner(s) death (or Annuitant's death if there is a non-natural Contract owner) before we will settle a death claim. SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS We hold title to the assets of the Variable Account. We keep the assets physically segregated and separate and apart from our general corporate assets. We maintain records of all purchases and redemptions of the Portfolio shares held by each of the Variable Sub-Accounts. The Portfolios do not issue stock certificates. Therefore, we hold the Variable Account's assets in open account in lieu of stock certificates. See the Portfolios' prospectuses for a more complete description of the custodian of the Portfolios. PREMIUM TAXES Applicable premium tax rates depend on the Contract owner's state of residency and the insurance laws and our status in those states where premium taxes are incurred. Premium tax rates may be changed by legislation, administrative interpretations, or judicial acts. TAX RESERVES We do not establish capital gains tax reserves for any Variable Sub-Account nor do we deduct charges for tax reserves because we believe that capital gains attributable to the Variable Account will not be taxable. However, we reserve the right to deduct charges to establish tax reserves for potential taxes on realized or unrealized capital gains. EXPERTS The financial statements of Glenbrook Life and Annuity Company as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002 and the related financial statement schedule incorporated by reference in the prospectus and included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report, which is included herein and incorporated by reference in the prospectus, and have been so included and incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The financial statements of the sub-accounts comprising Glenbrook Life Multi-Manager Variable Account as of December 31, 2002 and for each of the periods in the two year period then ended included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. APPENDIX 1 PERFORMANCE INFORMATION FOR ALLSTATE(R)PROVIDER ADVANTAGE CONTRACTS Allstate Provider Advantage Contracts were first offered to the public on September 17, 2001. Accordingly, performance shown for periods prior to that date reflects the performance of the Variable Sub-Accounts, adjusted to reflect the current charges under the Contracts that would have applied had they been in existence at the time. (Adjusted historical total returns are computed from the Portfolio's inception date as described below.) These Contract charges include an annual contract maintenance charge of $35 (not shown foradjusted historical returns method 1), and total Variable Account annual expenses of: o 1.55% (without any optional benefit riders), or o 1.80% with the Enhanced Death Benefit Rider or Income Benefit Rider, or o 2.05% with the Enhanced Death Benefit Rider and Income Benefit Rider. In addition, where the Enhanced Earnings Death Benefit Rider is included, the performance shown reflects the deduction of the annual Rider fee equal to 0.35% of the Contract Value (assumes age 66-75). See the Expense Table in the Prospectus for more details. STANDARDIZED TOTAL RETURNS Set out below are the standardized total returns for each Variable Sub-Account since its inception through December 31, 2002 The inception dates of the Variable Sub-Account are as follows: Sub-Account Variable Sub-Account Inception AIM V.I. Aggressive Growth 05/01/01 AIM V.I. Balanced 11/09/98 AIM V.I. Capital Appreciation 01/26/98 AIM V.I. Core Equity 01/26/98 AIM V.I. Dent Demographic Trends 05/01/01 AIM V.I. Diversified Income 01/26/98 AIM V.I. Growth 01/26/98 AIM V.I. International Growth 01/26/98 AIM V.I. Premier Equity 01/26/98 Dreyfus Socially Responsible Growth 06/17/97 Dreyfus Stock Index 01/26/98 Dreyfus VIF - Growth & Income 06/17/97 Dreyfus VIF - Money Market 06/17/97 Fidelity VIP Asset Manager: Growth - Service Class 2 05/01/01 Fidelity VIP Contrafund - Service Class 2 05/01/01 Fidelity VIP Equity-Income - Service Class 2 05/01/01 Fidelity VIP Growth - Service Class 2 05/01/01 Fidelity VIP High Income - Service Class 2 05/01/01 LSA Diversified Mid-Cap* 05/01/02 Putnam Health Sciences 05/01/01 Van Kampen UIF U.S. Real Estate 11/09/98 Goldman Sachs VIT CORE Small Cap Equity 11/09/98 Goldman Sachs VIT CORE U.S. Equity 11/09/98 LSA Equity Growth 05/01/01 LSA Capital Growth 05/01/01 MFS Emerging Growth - Service Class 05/01/01 MFS Investors Trust - Service Class 05/01/01 MFS New Discovery - Service Class 05/01/01 MFS Research - Service Class 05/01/01 MFS Utilities - Service Class 05/01/01 Oppenheimer Aggressive Growth 11/01/99 Oppenheimer Capital Appreciation 11/01/99 Oppenheimer Global Securities 11/01/99 Oppenheimer Main Street 11/01/99 Oppenheimer Strategic Bond 11/01/99 Putnam Growth and Income 05/01/01 Putnam Growth Opportunities 05/01/01 Putnam International Equity 09/21/01 Putnam New Value 05/01/01 Putnam Research 09/21/01 Van Kampen UIF Core Plus Fixed Income 11/09/98 Van Kampen UIF Global Value Equity 11/09/98 Van Kampen UIF U.S. Mid Cap Core 11/09/98 Van Kampen UIF Value 11/09/98 Franklin Small Cap - Class 2 11/01/99 Franklin Technology Securities - Class 2 05/01/01 Mutual Shares Securities - Class 2 11/01/99 Templeton Developing Markets Securities - Class 2 11/01/99 Templeton Foreign Securities - Class 2 11/01/99 SHELF (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -23.93% N/A -22.47% AIM V.I. Balanced -18.45% N/A -4.02% AIM V.I. Capital Appreciation -25.60% N/A -2.92% AIM V.I. Core Equity(1) -16.96% N/A -2.09% AIM V.I. Dent Demographic Trends -33.32% N/A -29.10% AIM V.I. Diversified Income 0.65% N/A -0.19% AIM V.I. Growth -32.11% N/A -9.28% AIM V.I. International Growth -17.05% N/A -4.74% AIM V.I. Premier Equity -31.41% N/A -3.45% Dreyfus Socially Responsible Growth -30.12% -5.35% -3.47% Dreyfus Stock Index -23.64% N/A -2.27% Dreyfus VIF - Growth & Income -26.56% -3.88% -2.50% Dreyfus VIF - Money Market -0.17% 2.50% 2.59% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.20% N/A -13.53% Fidelity VIP Contrafund - Service Class 2 -11.07% N/A -9.93% Fidelity VIP Equity-Income - Service Class 2 -18.51% N/A -15.04% Fidelity VIP Growth - Service Class 2 -31.45% N/A -26.84% Fidelity VIP High Income - Service Class 2 1.63% N/A -5.23% LSA Diversified Mid-Cap* N/A N/A -22.33% Putnam Health Sciences -21.65% N/A -15.47% Van Kampen UIF U.S. Real Estate -2.39% N/A 6.98% Goldman Sachs VIT CORE Small Cap Equity -16.36% N/A 1.31% Goldman Sachs VIT CORE U.S. Equity -23.18% N/A -5.58% LSA Equity Growth (2) -30.97% N/A -24.41% LSA Capital Growth(2) -25.61% N/A -22.30% MFS Emerging Growth - Service Class -34.68% N/A -31.53% MFS Investors Trust - Service Class(3) -22.45% N/A -20.34% MFS New Discovery - Service Class -32.93% N/A -23.20% MFS Research - Service Class -25.96% N/A -24.57% MFS Utilities - Service Class -24.16% N/A -28.55% Oppenheimer Aggressive Growth -28.98% N/A -16.03% Oppenheimer Capital Appreciation -28.06% N/A -9.26% Oppenheimer Global Securities -23.41% N/A -3.34% Oppenheimer Main Street (4) -20.13% N/A -11.38% Oppenheimer Strategic Bond 5.71% N/A 3.58% Putnam Growth and Income -20.31% N/A -16.99% Putnam Growth Opportunities -30.65% N/A -29.52% Putnam International Equity (5) -19.01% N/A -3.39% Putnam New Value -16.98% N/A -12.97% Putnam Research -23.48% N/A -6.19% Van Kampen UIF Core Plus Fixed Income 5.60% N/A 5.35% Van Kampen UIF Global Value Equity -18.22% N/A -3.15% Van Kampen UIF U.S. Mid Cap Core (6) -29.21% N/A -1.09% Van Kampen UIF Value -23.43% N/A -2.19% Franklin Small Cap - Class 2 -29.86% N/A -8.95% Franklin Technology Securities - Class 2 -44.85% N/A -39.12% Mutual Shares Securities - Class 2 -13.25% N/A 0.70% Templeton Developing Markets Securities - Class 2 -1.76% N/A -9.81% Templeton Foreign Securities - Class 2 -19.89% N/A -10.04% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -24.12% N/A -22.67% AIM V.I. Balanced -18.66% N/A -4.26% AIM V.I. Capital Appreciation -25.79% N/A -3.16% AIM V.I. Core Equity(1) -17.17% N/A -2.34% AIM V.I. Dent Demographic Trends -33.49% N/A -29.28% AIM V.I. Diversified Income 0.40% N/A -0.44% AIM V.I. Growth -32.28% N/A -9.51% AIM V.I. International Growth -17.26% N/A -4.98% AIM V.I. Premier Equity -31.58% N/A -3.70% Dreyfus Socially Responsible Growth -30.29% -5.58% -3.71% Dreyfus Stock Index -23.83% N/A -2.52% Dreyfus VIF - Growth & Income -26.74% -4.12% -2.74% Dreyfus VIF - Money Market -0.42% 2.24% 2.33% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.41% N/A -13.74% Fidelity VIP Contrafund - Service Class 2 -11.30% N/A -10.16% Fidelity VIP Equity-Income - Service Class 2 -18.71% N/A -15.25% Fidelity VIP Growth - Service Class 2 -31.62% N/A -27.02% Fidelity VIP High Income - Service Class 2 1.38% N/A -5.46% LSA Diversified Mid-Cap* N/A N/A -22.46% Putnam Health Sciences -21.84% N/A -15.68% Van Kampen UIF U.S. Real Estate -2.63% N/A 6.72% Goldman Sachs VIT CORE Small Cap Equity -16.57% N/A 1.06% Goldman Sachs VIT CORE U.S. Equity -23.37% N/A -5.82% LSA Equity Growth (2) -31.15% N/A -24.60% LSA Capital Growth (2) -25.80% N/A -22.49% MFS Emerging Growth - Service Class -34.84% N/A -31.70% MFS Investors Trust - Service Class(3) -22.64% N/A -20.54% MFS New Discovery - Service Class -33.10% N/A -23.39% MFS Research - Service Class -26.14% N/A -24.75% MFS Utilities - Service Class -24.35% N/A -28.73% Oppenheimer Aggressive Growth -29.16% N/A -16.24% Oppenheimer Capital Appreciation -28.24% N/A -9.48% Oppenheimer Global Securities -23.60% N/A -3.58% Oppenheimer Main Street(4) -20.33% N/A -11.60% Oppenheimer Strategic Bond 5.45% N/A 3.32% Putnam Growth and Income -20.51% N/A -17.20% Putnam Growth Opportunities -30.83% N/A -29.69% Putnam International Equity(5) -19.22% N/A -3.63% Putnam New Value -17.19% N/A -13.19% Putnam Research -23.67% N/A -6.43% Van Kampen UIF Core Plus Fixed Income 5.33% N/A 5.09% Van Kampen UIF Global Value Equity -18.43% N/A -3.39% Van Kampen UIF U.S. Mid Cap Core(6) -29.39% N/A -1.34% Van Kampen UIF Value -23.62% N/A -2.43% Franklin Small Cap - Class 2 -30.04% N/A -9.17% Franklin Technology Securities - Class 2 -44.98% N/A -39.27% Mutual Shares Securities - Class 2 -13.46% N/A 0.45% Templeton Developing Markets Securities - Class 2 -2.01% N/A -10.03% Templeton Foreign Securities - Class 2 -20.09% N/A -10.27% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider and Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -24.31% N/A -22.86% AIM V.I. Balanced -18.86% N/A -4.50% AIM V.I. Capital Appreciation -25.97% N/A -3.40% AIM V.I. Core Equity(1) -17.38% N/A -2.58% AIM V.I. Dent Demographic Trends -33.66% N/A -29.46% AIM V.I. Diversified Income 0.15% N/A -0.69% AIM V.I. Growth -32.45% N/A -9.73% AIM V.I. International Growth -17.47% N/A -5.21% AIM V.I. Premier Equity -31.75% N/A -3.94% Dreyfus Socially Responsible Growth -30.47% -5.82% -3.95% Dreyfus Stock Index -24.02% N/A -2.76% Dreyfus VIF - Growth & Income -26.92% -4.36% -2.99% Dreyfus VIF - Money Market -0.67% 1.98% 2.08% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.61% N/A -13.96% Fidelity VIP Contrafund - Service Class 2 -11.52% N/A -10.38% Fidelity VIP Equity-Income - Service Class 2 -18.91% N/A -15.46% Fidelity VIP Growth - Service Class 2 -31.79% N/A -27.21% Fidelity VIP High Income - Service Class 2 1.13% N/A -5.70% LSA Diversified Mid-Cap* N/A N/A -22.59% Putnam Health Sciences -22.04% N/A -15.90% Van Kampen UIF U.S. Real Estate -2.88% N/A 6.45% Goldman Sachs VIT CORE Small Cap Equity -16.78% N/A 0.80% Goldman Sachs VIT CORE U.S. Equity -23.56% N/A -6.05% LSA Equity Growth (2) -31.32% N/A -24.79% LSA Capital Growth (2) -25.99% N/A -22.68% MFS Emerging Growth - Service Class -35.00% N/A -31.87% MFS Investors Trust - Service Class(3) -22.83% N/A -20.74% MFS New Discovery - Service Class -33.27% N/A -23.59% MFS Research - Service Class -26.33% N/A -24.94% MFS Utilities - Service Class -24.54% N/A -28.90% Oppenheimer Aggressive Growth -29.34% N/A -16.45% Oppenheimer Capital Appreciation -28.42% N/A -9.71% Oppenheimer Global Securities -23.79% N/A -3.82% Oppenheimer Main Street(4) -20.53% N/A -11.82% Oppenheimer Strategic Bond 5.19% N/A 3.06% Putnam Growth and Income -20.71% N/A -17.41% Putnam Growth Opportunities -31.00% N/A -29.87% Putnam International Equity(5) -19.42% N/A -3.87% Putnam New Value -17.40% N/A -13.40% Putnam Research -23.86% N/A -6.66% Van Kampen UIF Core Plus Fixed Income 5.07% N/A 4.83% Van Kampen UIF Global Value Equity -18.63% N/A -3.63% Van Kampen UIF U.S. Mid Cap Core(6) -29.56% N/A -1.58% Van Kampen UIF Value -23.82% N/A -2.68% Franklin Small Cap - Class 2 -30.21% N/A -9.40% Franklin Technology Securities - Class 2 -45.12% N/A -39.43% Mutual Shares Securities - Class 2 -13.68% N/A 0.20% Templeton Developing Markets Securities - Class 2 -2.25% N/A -10.26% Templeton Foreign Securities - Class 2 -20.29% N/A -10.49% * Performance figures are not annualized. (With Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -24.28% N/A -22.91% AIM V.I. Balanced -18.80% N/A -4.41% AIM V.I. Capital Appreciation -25.95% N/A -3.20% AIM V.I. Core Equity(1) -17.31% N/A -2.38% AIM V.I. Dent Demographic Trends -33.67% N/A -29.54% AIM V.I. Diversified Income 0.30% N/A -0.55% AIM V.I. Growth -32.46% N/A -9.59% AIM V.I. International Growth -17.40% N/A -5.05% AIM V.I. Premier Equity -31.76% N/A -3.73% Dreyfus Socially Responsible Growth -30.47% -5.64% -3.77% Dreyfus Stock Index -23.99% N/A -2.56% Dreyfus VIF - Growth & Income -26.91% -4.19% -2.83% Dreyfus VIF - Money Market -0.52% 2.16% 2.23% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.55% N/A -13.95% Fidelity VIP Contrafund - Service Class 2 -11.42% N/A -10.36% Fidelity VIP Equity-Income - Service Class 2 -18.86% N/A -15.46% Fidelity VIP Growth - Service Class 2 -31.80% N/A -27.28% Fidelity VIP High Income - Service Class 2 1.28% N/A -5.67% LSA Diversified Mid-Cap* N/A N/A -22.68% Putnam Health Sciences -22.00% N/A -15.89% Van Kampen UIF U.S. Real Estate -2.74% N/A 6.59% Goldman Sachs VIT CORE Small Cap Equity -16.71% N/A 0.94% Goldman Sachs VIT CORE U.S. Equity -23.53% N/A -5.96% LSA Equity Growth (2) -31.32% N/A -24.84% LSA Capital Growth (2) -25.96% N/A -22.73% MFS Emerging Growth - Service Class -35.03% N/A -31.98% MFS Investors Trust - Service Class(3) -22.80% N/A -20.78% MFS New Discovery - Service Class -33.28% N/A -23.62% MFS Research - Service Class -26.31% N/A -25.01% MFS Utilities - Service Class -24.51% N/A -29.01% Oppenheimer Aggressive Growth -29.33% N/A -16.46% Oppenheimer Capital Appreciation -28.41% N/A -9.66% Oppenheimer Global Securities -23.76% N/A -3.71% Oppenheimer Main Street (4) -20.48% N/A -11.83% Oppenheimer Strategic Bond 5.36% N/A 3.14% Putnam Growth and Income -20.66% N/A -17.42% Putnam Growth Opportunities -31.00% N/A -29.97% Putnam International Equity (5) -19.36% N/A -3.89% Putnam New Value -17.33% N/A -13.39% Putnam Research -23.83% N/A -6.69% Van Kampen UIF Core Plus Fixed Income 5.25% N/A 4.94% Van Kampen UIF Global Value Equity -18.57% N/A -3.55% Van Kampen UIF U.S. Mid Cap Core (6) -29.56% N/A -1.44% Van Kampen UIF Value -23.78% N/A -2.59% Franklin Small Cap - Class 2 -30.21% N/A -9.32% Franklin Technology Securities - Class 2 -45.20% N/A -39.58% Mutual Shares Securities - Class 2 -13.60% N/A 0.29% Templeton Developing Markets Securities - Class 2 -2.11% N/A -10.29% Templeton Foreign Securities - Class 2 -20.24% N/A -10.48% * Performance figures are not annualized. (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -24.47% N/A -23.10% AIM V.I. Balanced -19.01% N/A -4.65% AIM V.I. Capital Appreciation -26.14% N/A -3.45% AIM V.I. Core Equity(1) -17.52% N/A -2.63% AIM V.I. Dent Demographic Trends -33.84% N/A -29.72% AIM V.I. Diversified Income 0.05% N/A -0.80% AIM V.I. Growth -32.63% N/A -9.81% AIM V.I. International Growth -17.61% N/A -5.29% AIM V.I. Premier Equity -31.93% N/A -3.98% Dreyfus Socially Responsible Growth -30.64% -5.88% -4.01% Dreyfus Stock Index -24.18% N/A -2.81% Dreyfus VIF - Growth & Income -27.09% -4.43% -3.08% Dreyfus VIF - Money Market -0.77% 1.91% 1.97% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.76% N/A -14.17% Fidelity VIP Contrafund - Service Class 2 -11.65% N/A -10.58% Fidelity VIP Equity-Income - Service Class 2 -19.06% N/A -15.67% Fidelity VIP Growth - Service Class 2 -31.97% N/A -27.46% Fidelity VIP High Income - Service Class 2 1.03% N/A -5.90% LSA Diversified Mid-Cap* N/A N/A -22.81% Putnam Health Sciences -22.19% N/A -16.10% Van Kampen UIF U.S. Real Estate -2.98% N/A 6.33% Goldman Sachs VIT CORE Small Cap Equity -16.92% N/A 0.68% Goldman Sachs VIT CORE U.S. Equity -23.72% N/A -6.20% LSA Equity Growth (2) -31.50% N/A -25.03% LSA Capital Growth (2) -26.15% N/A -22.92% MFS Emerging Growth - Service Class -35.19% N/A -32.15% MFS Investors Trust - Service Class(3) -22.99% N/A -20.98% MFS New Discovery - Service Class -33.45% N/A -23.81% MFS Research - Service Class -26.49% N/A -25.20% MFS Utilities - Service Class -24.70% N/A -29.19% Oppenheimer Aggressive Growth -29.51% N/A -16.67% Oppenheimer Capital Appreciation -28.59% N/A -9.89% Oppenheimer Global Securities -23.95% N/A -3.96% Oppenheimer Main Street (4) -20.68% N/A -12.06% Oppenheimer Strategic Bond 5.10% N/A 2.88% Putnam Growth and Income -20.86% N/A -17.63% Putnam Growth Opportunities -31.18% N/A -30.15% Putnam International Equity (5) -19.57% N/A -4.13% Putnam New Value -17.54% N/A -13.61% Putnam Research -24.02% N/A -6.92% Van Kampen UIF Core Plus Fixed Income 4.98% N/A 4.68% Van Kampen UIF Global Value Equity -18.78% N/A -3.79% Van Kampen UIF U.S. Mid Cap Core (6) -29.74% N/A -1.69% Van Kampen UIF Value -23.97% N/A -2.84% Franklin Small Cap - Class 2 -30.39% N/A -9.55% Franklin Technology Securities - Class 2 -45.33% N/A -39.73% Mutual Shares Securities - Class 2 -13.81% N/A 0.04% Templeton Developing Markets Securities - Class 2 -2.36% N/A -10.51% Templeton Foreign Securities - Class 2 -20.44% N/A -10.70% * Performance figures are not annualized. (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -24.66% N/A -23.30% AIM V.I. Balanced -19.21% N/A -4.89% AIM V.I. Capital Appreciation -26.32% N/A -3.69% AIM V.I. Core Equity(1) -17.73% N/A -2.87% AIM V.I. Dent Demographic Trends -34.01% N/A -29.90% AIM V.I. Diversified Income -0.20% N/A -1.06% AIM V.I. Growth -32.80% N/A -10.04% AIM V.I. International Growth -17.82% N/A -5.53% AIM V.I. Premier Equity -32.10% N/A -4.22% Dreyfus Socially Responsible Growth -30.82% -6.11% -4.26% Dreyfus Stock Index -24.37% N/A -3.05% Dreyfus VIF - Growth & Income -27.27% -4.68% -3.32% Dreyfus VIF - Money Market -1.02% 1.65% 1.71% Fidelity VIP Asset Manager: Growth - Service Class 2 -17.96% N/A -14.38% Fidelity VIP Contrafund - Service Class 2 -11.87% N/A -10.81% Fidelity VIP Equity-Income - Service Class 2 -19.26% N/A -15.89% Fidelity VIP Growth - Service Class 2 -32.14% N/A -27.64% Fidelity VIP High Income - Service Class 2 0.78% N/A -6.14% LSA Diversified Mid-Cap* N/A N/A -22.94% Putnam Health Sciences -22.39% N/A -16.32% Van Kampen UIF U.S. Real Estate -3.23% N/A 6.06% Goldman Sachs VIT CORE Small Cap Equity -17.13% N/A 0.43% Goldman Sachs VIT CORE U.S. Equity -23.91% N/A -6.44% LSA Equity Growth (2) -31.67% N/A -25.22% LSA Capital Growth (2) -26.34% N/A -23.12% MFS Emerging Growth - Service Class -35.35% N/A -32.32% MFS Investors Trust - Service Class(3) -23.18% N/A -21.17% MFS New Discovery - Service Class -33.62% N/A -24.00% MFS Research - Service Class -26.68% N/A -25.39% MFS Utilities - Service Class -24.89% N/A -29.37% Oppenheimer Aggressive Growth -29.69% N/A -16.88% Oppenheimer Capital Appreciation -28.77% N/A -10.12% Oppenheimer Global Securities -24.14% N/A -4.20% Oppenheimer Main Street (4) -20.88% N/A -12.28% Oppenheimer Strategic Bond 4.84% N/A 2.62% Putnam Growth and Income -21.06% N/A -17.84% Putnam Growth Opportunities -31.35% N/A -30.32% Putnam International Equity (5) -19.77% N/A -4.37% Putnam New Value -17.75% N/A -13.83% Putnam Research -24.21% N/A -7.15% Van Kampen UIF Core Plus Fixed Income 4.72% N/A 4.41% Van Kampen UIF Global Value Equity -18.98% N/A -4.03% Van Kampen UIF U.S. Mid Cap Core (6) -29.91% N/A -1.94% Van Kampen UIF Value -24.17% N/A -3.08% Franklin Small Cap - Class 2 -30.56% N/A -9.78% Franklin Technology Securities - Class 2 -45.47% N/A -39.88% Mutual Shares Securities - Class 2 -14.03% N/A -0.22% Templeton Developing Markets Securities - Class 2 -2.60% N/A -10.74% Templeton Foreign Securities - Class 2 -20.64% N/A -10.93% * Performance figures are not annualized.
(1) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (2) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (3) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (3) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (4) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (5) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (6) Performance shown prior to 5/1/00 is based on the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Portfolios. On 5/1/00, the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Portfolios were merged into the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2), respectively and were closed. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 1 Set out below are the adjusted historical total returns method 1 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are as follows: Inception Date of Corresponding Variable Sub-Account Portfolio AIM V.I. Aggressive Growth 05/01/98 AIM V.I. Balanced 05/01/98 AIM V.I. Capital Appreciation 05/05/93 AIM V.I. Core Equity 05/02/94 AIM V.I. Dent Demographic Trends 12/29/99 AIM V.I. Diversified Income 05/05/93 AIM V.I. Growth 05/05/93 AIM V.I. International Growth 05/05/93 AIM V.I. Premier Equity 05/05/93 Dreyfus Socially Responsible Growth 10/15/93 Dreyfus Stock Index 09/29/89 Dreyfus VIF - Growth & Income 04/30/94 Dreyfus VIF - Money Market 08/31/90 Fidelity VIP Asset Manager: Growth - Service Class 2 01/04/95 Fidelity VIP Contrafund - Service Class 2 01/04/95 Fidelity VIP Equity-Income - Service Class 2 10/10/86 Fidelity VIP Growth - Service Class 2 10/10/86 Fidelity VIP High Income - Service Class 2 09/20/85 LSA Diversified Mid-Cap 08/14/01 Putnam Health Sciences 04/30/98 Van Kampen UIF U.S. Real Estate 03/03/97 Goldman Sachs VIT CORE Small Cap Equity 02/13/98 Goldman Sachs VIT CORE U.S. Equity 02/13/98 LSA Equity Growth 10/01/99 LSA Capital Growth 10/01/99 MFS Emerging Growth - Service Class 07/24/95 MFS Investors Trust - Service Class 10/09/95 MFS New Discovery - Service Class 05/01/98 MFS Research - Service Class 07/26/95 MFS Utilities - Service Class 01/03/95 Oppenheimer Aggressive Growth 08/15/86 Oppenheimer Capital Appreciation 04/03/85 Oppenheimer Global Securities 11/12/90 Oppenheimer Main Street 07/05/95 Oppenheimer Strategic Bond 05/03/93 Putnam Growth and Income 02/01/88 Putnam Growth Opportunities 01/31/00 Putnam International Equity 01/02/97 Putnam New Value 01/02/97 Putnam Research 09/29/98 Van Kampen UIF Core Plus Fixed Income 01/02/97 Van Kampen UIF Global Value Equity 01/02/97 Van Kampen UIF U.S. Mid Cap Core 01/02/97 Van Kampen UIF Value 01/02/97 Franklin Small Cap - Class 2 10/31/95 Franklin Technology Securities - Class 2 05/31/00 Mutual Shares Securities - Class 2 11/08/96 Templeton Developing Markets Securities - Class 2 03/04/96 Templeton Foreign Securities - Class 2 05/01/92 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -23.86% N/A -5.24% AIM V.I. Balanced -18.38% N/A -2.65% AIM V.I. Capital Appreciation -25.52% -3.76% 5.67% AIM V.I. Core Equity(9) -16.88% -2.46% 6.19% AIM V.I. Dent Demographic Trends -33.25% N/A -28.68% AIM V.I. Diversified Income 0.73% 0.07% 3.14% AIM V.I. Growth -32.04% -9.44% 2.21% AIM V.I. International Growth -16.97% -4.69% 2.65% AIM V.I. Premier Equity -31.33% -3.70% 6.18% Dreyfus Socially Responsible Growth -30.04% -5.28% 4.91% Dreyfus Stock Index -23.56% -2.46% 7.23% Dreyfus VIF - Growth & Income -26.48% -3.81% 6.73% Dreyfus VIF - Money Market -0.10% 2.57% 2.82% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.12% -3.35% 4.98% Fidelity VIP Contrafund - Service Class 2(2) -11.00% 1.83% 10.24% Fidelity VIP Equity-Income - Service Class 2(2) -18.43% -1.51% 7.81% Fidelity VIP Growth - Service Class 2(2) -31.37% -2.18% 6.47% Fidelity VIP High Income - Service Class 2(2) 1.71% -7.75% 1.58% LSA Diversified Mid-Cap -20.49% N/A -15.38% Putnam Health Sciences(6) -21.57% N/A -2.98% Van Kampen UIF U.S. Real Estate -2.31% 2.74% 5.06% Goldman Sachs VIT CORE Small Cap Equity -16.28% N/A -2.36% Goldman Sachs VIT CORE U.S. Equity -23.10% N/A -4.05% LSA Equity Growth (3) -30.90% N/A -14.50% LSA Capital Growth (3) -25.54% N/A -11.09% MFS Emerging Growth - Service Class (4) -34.60% -5.41% 2.65% MFS Investors Trust - Service Class(4)(10) -22.37% -4.78% 3.66% MFS New Discovery - Service Class(4) -32.85% N/A 0.39% MFS Research - Service Class(4) -25.88% -5.77% 2.00% MFS Utilities - Service Class(4) -24.09% -3.59% 6.48% Oppenheimer Aggressive Growth -28.90% -3.40% 5.01% Oppenheimer Capital Appreciation -27.99% 0.73% 8.46% Oppenheimer Global Securities -23.33% 3.79% 10.19% Oppenheimer Main Street (5) -20.05% -4.73% 7.00% Oppenheimer Strategic Bond 5.79% 2.51% 4.17% Putnam Growth and Income (6) -20.23% -2.39% 6.80% Putnam Growth Opportunities(6) -30.58% N/A -29.78% Putnam International Equity(6)(7) -18.94% 0.73% 2.86% Putnam New Value (6) -16.90% 0.99% 3.30% Putnam Research (6) -23.40% N/A -2.91% Van Kampen UIF Core Plus Fixed Income 5.68% 5.43% 5.89% Van Kampen UIF Global Value Equity -18.15% -1.20% 1.79% Van Kampen UIF U.S. Mid Cap Core (8) -29.13% -0.12% 5.50% Van Kampen UIF Value -23.35% -2.36% 0.93% Franklin Small Cap - Class 2 (1)(11) -29.78% -1.56% 4.58% Franklin Technology Securities - Class 2 (1) -44.77% N/A -36.28% Mutual Shares Securities - Class 2(1)(11) -13.17% 2.33% 4.87% Templeton Developing Markets Securities - Class 2 (1)(12) -1.68% -6.92% -11.00% Templeton Foreign Securities - Class 2 (1)(12) -19.82% -3.64% 6.00% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.05% N/A -5.48% AIM V.I. Balanced -18.58% N/A -2.89% AIM V.I. Capital Appreciation -25.71% -4.00% 5.40% AIM V.I. Core Equity(9) -17.09% -2.70% 5.93% AIM V.I. Dent Demographic Trends -33.41% N/A -28.86% AIM V.I. Diversified Income 0.47% -0.18% 2.88% AIM V.I. Growth -32.21% -9.67% 1.95% AIM V.I. International Growth -17.18% -4.93% 2.40% AIM V.I. Premier Equity -31.51% -3.94% 5.91% Dreyfus Socially Responsible Growth -30.22% -5.52% 4.65% Dreyfus Stock Index -23.75% -2.70% 6.97% Dreyfus VIF - Growth & Income -26.66% -4.05% 6.47% Dreyfus VIF - Money Market -0.34% 2.31% 2.56% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.33% -3.59% 4.72% Fidelity VIP Contrafund - Service Class 2(2) -11.22% 1.58% 9.97% Fidelity VIP Equity-Income - Service Class 2(2) -18.63% -1.76% 7.54% Fidelity VIP Growth - Service Class 2(2) -31.54% -2.43% 6.21% Fidelity VIP High Income - Service Class 2(2) 1.46% -7.98% 1.33% LSA Diversified Mid-Cap -20.69% N/A -15.59% Putnam Health Sciences(6) -21.77% N/A -3.23% Van Kampen UIF U.S. Real Estate -2.56% 2.49% 4.80% Goldman Sachs VIT CORE Small Cap Equity -16.49% N/A -2.60% Goldman Sachs VIT CORE U.S. Equity -23.29% N/A -4.29% LSA Equity Growth (3) -31.07% N/A -14.72% LSA Capital Growth (3) -25.72% N/A -11.32% MFS Emerging Growth - Service Class (4) -34.76% -5.65% 2.40% MFS Investors Trust - Service Class(4)(10) -22.56% -5.01% 3.40% MFS New Discovery - Service Class(4) -33.02% N/A 0.14% MFS Research - Service Class(4) -26.06% -6.01% 1.74% MFS Utilities - Service Class(4) -24.28% -3.83% 6.22% Oppenheimer Aggressive Growth -29.08% -3.65% 4.75% Oppenheimer Capital Appreciation -28.17% 0.48% 8.19% Oppenheimer Global Securities -23.53% 3.53% 9.92% Oppenheimer Main Street (5) -20.25% -4.97% 6.73% Oppenheimer Strategic Bond 5.53% 2.26% 3.91% Putnam Growth and Income (6) -20.43% -2.64% 6.53% Putnam Growth Opportunities(6) -30.75% N/A -29.95% Putnam International Equity(6)(7) -19.14% 0.48% 2.60% Putnam New Value (6) -17.11% 0.74% 3.04% Putnam Research (6) -23.59% N/A -3.15% Van Kampen UIF Core Plus Fixed Income 5.41% 5.17% 5.63% Van Kampen UIF Global Value Equity -18.35% -1.45% 1.53% Van Kampen UIF U.S. Mid Cap Core (8) -29.31% -0.37% 5.24% Van Kampen UIF Value -23.55% -2.60% 0.68% Franklin Small Cap - Class 2 (1)(11) -29.96% -1.81% 4.31% Franklin Technology Securities - Class 2 (1) -44.91% N/A -36.44% Mutual Shares Securities - Class 2(1)(11) -13.39% 2.08% 4.61% Templeton Developing Markets Securities - Class 2 (1)(12) -1.93% -7.15% -11.22% Templeton Foreign Securities - Class 2 (1)(12) -20.02% -3.88% 5.74% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.24% N/A -5.72% AIM V.I. Balanced -18.78% N/A -3.14% AIM V.I. Capital Appreciation -25.89% -4.24% 5.14% AIM V.I. Core Equity(9) -17.30% -2.94% 5.66% AIM V.I. Dent Demographic Trends -33.58% N/A -29.04% AIM V.I. Diversified Income 0.22% -0.43% 2.63% AIM V.I. Growth -32.38% -9.89% 1.70% AIM V.I. International Growth -17.39% -5.17% 2.14% AIM V.I. Premier Equity -31.68% -4.18% 5.65% Dreyfus Socially Responsible Growth -30.39% -5.76% 4.39% Dreyfus Stock Index -23.94% -2.95% 6.70% Dreyfus VIF - Growth & Income -26.85% -4.29% 6.20% Dreyfus VIF - Money Market -0.59% 2.06% 2.30% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.54% -3.84% 4.46% Fidelity VIP Contrafund - Service Class 2(2) -11.44% 1.32% 9.69% Fidelity VIP Equity-Income - Service Class 2(2) -18.84% -2.01% 7.27% Fidelity VIP Growth - Service Class 2(2) -31.71% -2.67% 5.94% Fidelity VIP High Income - Service Class 2(2) 1.20% -8.21% 1.08% LSA Diversified Mid-Cap -20.89% N/A -15.80% Putnam Health Sciences(6) -21.96% N/A -3.47% Van Kampen UIF U.S. Real Estate -2.80% 2.23% 4.54% Goldman Sachs VIT CORE Small Cap Equity -16.70% N/A -2.85% Goldman Sachs VIT CORE U.S. Equity -23.48% N/A -4.53% LSA Equity Growth (3) -31.24% N/A -14.93% LSA Capital Growth (3) -25.91% N/A -11.54% MFS Emerging Growth - Service Class (4) -34.93% -5.88% 2.14% MFS Investors Trust - Service Class(4)(10) -22.76% -5.25% 3.15% MFS New Discovery - Service Class(4) -33.19% N/A -0.11% MFS Research - Service Class(4) -26.25% -6.24% 1.49% MFS Utilities - Service Class(4) -24.46% -4.07% 5.95% Oppenheimer Aggressive Growth -29.26% -3.89% 4.48% Oppenheimer Capital Appreciation -28.35% 0.23% 7.92% Oppenheimer Global Securities -23.72% 3.27% 9.64% Oppenheimer Main Street (5) -20.45% -5.21% 6.47% Oppenheimer Strategic Bond 5.26% 2.00% 3.65% Putnam Growth and Income (6) -20.63% -2.88% 6.27% Putnam Growth Opportunities(6) -30.92% N/A -30.13% Putnam International Equity(6)(7) -19.34% 0.23% 2.35% Putnam New Value (6) -17.32% 0.49% 2.78% Putnam Research (6) -23.79% N/A -3.40% Van Kampen UIF Core Plus Fixed Income 5.15% 4.90% 5.36% Van Kampen UIF Global Value Equity -18.55% -1.70% 1.28% Van Kampen UIF U.S. Mid Cap Core (8) -29.49% -0.62% 4.97% Van Kampen UIF Value -23.74% -2.84% 0.43% Franklin Small Cap - Class 2 (1)(11) -30.13% -2.05% 4.05% Franklin Technology Securities - Class 2 (1) -45.04% N/A -36.60% Mutual Shares Securities - Class 2(1)(11) -13.60% 1.82% 4.35% Templeton Developing Markets Securities - Class 2 (1)(12) -2.17% -7.39% -11.44% Templeton Foreign Securities - Class 2 (1)(12) -20.22% -4.12% 5.47% (With Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.21% N/A -5.58% AIM V.I. Balanced -18.73% N/A -2.98% AIM V.I. Capital Appreciation -25.87% -4.05% 5.46% AIM V.I. Core Equity(9) -17.23% -2.75% 5.97% AIM V.I. Dent Demographic Trends -33.60% N/A -29.26% AIM V.I. Diversified Income 0.38% -0.28% 2.83% AIM V.I. Growth -32.39% -9.75% 1.98% AIM V.I. International Growth -17.32% -5.00% 2.41% AIM V.I. Premier Equity -31.68% -3.98% 5.97% Dreyfus Socially Responsible Growth -30.39% -5.57% 4.68% Dreyfus Stock Index -23.91% -2.75% 7.03% Dreyfus VIF - Growth & Income -26.83% -4.12% 6.52% Dreyfus VIF - Money Market -0.45% 2.24% 2.50% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.47% -3.67% 4.76% Fidelity VIP Contrafund - Service Class 2(2) -11.35% 1.55% 10.06% Fidelity VIP Equity-Income - Service Class 2(2) -18.78% -1.83% 7.60% Fidelity VIP Growth - Service Class 2(2) -31.72% -2.44% 6.28% Fidelity VIP High Income - Service Class 2(2) 1.36% -8.17% 1.32% LSA Diversified Mid-Cap -20.84% N/A -15.86% Putnam Health Sciences(6) -21.92% N/A -3.33% Van Kampen UIF U.S. Real Estate -2.66% 2.39% 4.73% Goldman Sachs VIT CORE Small Cap Equity -16.63% N/A -2.72% Goldman Sachs VIT CORE U.S. Equity -23.45% N/A -4.37% LSA Equity Growth (3) -31.25% N/A -14.93% LSA Capital Growth (3) -25.89% N/A -11.51% MFS Emerging Growth - Service Class (4) -34.95% -5.67% 2.43% MFS Investors Trust - Service Class(4)(10) -22.72% -5.09% 3.40% MFS New Discovery - Service Class(4) -33.20% N/A 0.10% MFS Research - Service Class(4) -26.23% -6.08% 1.74% MFS Utilities - Service Class(4) -24.44% -3.89% 6.29% Oppenheimer Aggressive Growth -29.25% -3.68% 4.80% Oppenheimer Capital Appreciation -28.34% 0.47% 8.26% Oppenheimer Global Securities -23.68% 3.54% 10.02% Oppenheimer Main Street (5) -20.40% -5.06% 6.78% Oppenheimer Strategic Bond 5.44% 2.17% 3.86% Putnam Growth and Income (6) -20.58% -2.71% 6.59% Putnam Growth Opportunities(6) -30.93% N/A -30.29% Putnam International Equity(6)(7) -19.29% 0.46% 2.61% Putnam New Value (6) -17.25% 0.67% 3.01% Putnam Research (6) -23.75% N/A -3.25% Van Kampen UIF Core Plus Fixed Income 5.33% 5.10% 5.58% Van Kampen UIF Global Value Equity -18.50% -1.52% 1.51% Van Kampen UIF U.S. Mid Cap Core (8) -29.48% -0.40% 5.28% Van Kampen UIF Value -23.70% -2.70% 0.64% Franklin Small Cap - Class 2 (1)(11) -30.13% -1.84% 4.31% Franklin Technology Securities - Class 2 (1) -45.12% N/A -36.82% Mutual Shares Securities - Class 2(1)(11) -13.52% 2.01% 4.54% Templeton Developing Markets Securities - Class 2 (1)(12) -2.03% -7.33% -11.57% Templeton Foreign Securities - Class 2 (1)(12) -20.17% -3.96% 5.81% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.40% N/A -5.82% AIM V.I. Balanced -18.93% N/A -3.23% AIM V.I. Capital Appreciation -26.06% -4.29% 5.19% AIM V.I. Core Equity(9) -17.44% -2.99% 5.70% AIM V.I. Dent Demographic Trends -33.76% N/A -29.44% AIM V.I. Diversified Income 0.12% -0.53% 2.57% AIM V.I. Growth -32.56% -9.97% 1.72% AIM V.I. International Growth -17.53% -5.24% 2.15% AIM V.I. Premier Equity -31.86% -4.22% 5.70% Dreyfus Socially Responsible Growth -30.57% -5.81% 4.42% Dreyfus Stock Index -24.10% -2.99% 6.76% Dreyfus VIF - Growth & Income -27.01% -4.36% 6.26% Dreyfus VIF - Money Market -0.69% 1.98% 2.24% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.68% -3.92% 4.50% Fidelity VIP Contrafund - Service Class 2(2) -11.57% 1.30% 9.78% Fidelity VIP Equity-Income - Service Class 2(2) -18.98% -2.08% 7.33% Fidelity VIP Growth - Service Class 2(2) -31.89% -2.69% 6.01% Fidelity VIP High Income - Service Class 2(2) 1.11% -8.40% 1.06% LSA Diversified Mid-Cap -21.04% N/A -16.07% Putnam Health Sciences(6) -22.12% N/A -3.57% Van Kampen UIF U.S. Real Estate -2.91% 2.13% 4.47% Goldman Sachs VIT CORE Small Cap Equity -16.84% N/A -2.96% Goldman Sachs VIT CORE U.S. Equity -23.64% N/A -4.61% LSA Equity Growth (3) -31.42% N/A -15.14% LSA Capital Growth (3) -26.07% N/A -11.73% MFS Emerging Growth - Service Class (4) -35.11% -5.91% 2.17% MFS Investors Trust - Service Class(4)(10) -22.91% -5.33% 3.14% MFS New Discovery - Service Class(4) -33.37% N/A -0.15% MFS Research - Service Class(4) -26.41% -6.32% 1.49% MFS Utilities - Service Class(4) -24.63% -4.13% 6.02% Oppenheimer Aggressive Growth -29.43% -3.92% 4.54% Oppenheimer Capital Appreciation -28.52% 0.22% 7.98% Oppenheimer Global Securities -23.88% 3.28% 9.74% Oppenheimer Main Street (5) -20.60% -5.30% 6.52% Oppenheimer Strategic Bond 5.18% 1.91% 3.60% Putnam Growth and Income (6) -20.78% -2.96% 6.32% Putnam Growth Opportunities(6) -31.10% N/A -30.47% Putnam International Equity(6)(7) -19.49% 0.21% 2.35% Putnam New Value (6) -17.46% 0.42% 2.75% Putnam Research (6) -23.94% N/A -3.49% Van Kampen UIF Core Plus Fixed Income 5.06% 4.84% 5.32% Van Kampen UIF Global Value Equity -18.70% -1.76% 1.25% Van Kampen UIF U.S. Mid Cap Core (8) -29.66% -0.66% 5.01% Van Kampen UIF Value -23.90% -2.94% 0.38% Franklin Small Cap - Class 2 (1)(11) -30.31% -2.09% 4.05% Franklin Technology Securities - Class 2 (1) -45.26% N/A -36.98% Mutual Shares Securities - Class 2(1)(11) -13.74% 1.76% 4.28% Templeton Developing Markets Securities - Class 2 (1)(12) -2.28% -7.57% -11.79% Templeton Foreign Securities - Class 2 (1)(12) -20.37% -4.20% 5.54% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.59% N/A -6.06% AIM V.I. Balanced -19.13% N/A -3.47% AIM V.I. Capital Appreciation -26.24% -4.53% 4.93% AIM V.I. Core Equity(9) -17.65% -3.24% 5.44% AIM V.I. Dent Demographic Trends -33.93% N/A -29.61% AIM V.I. Diversified Income -0.13% -0.78% 2.31% AIM V.I. Growth -32.73% -10.20% 1.47% AIM V.I. International Growth -17.74% -5.48% 1.89% AIM V.I. Premier Equity -32.03% -4.46% 5.44% Dreyfus Socially Responsible Growth -30.74% -6.05% 4.15% Dreyfus Stock Index -24.29% -3.24% 6.49% Dreyfus VIF - Growth & Income -27.20% -4.60% 5.99% Dreyfus VIF - Money Market -0.94% 1.72% 1.98% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.89% -4.16% 4.23% Fidelity VIP Contrafund - Service Class 2(2) -11.79% 1.04% 9.51% Fidelity VIP Equity-Income - Service Class 2(2) -19.19% -2.33% 7.06% Fidelity VIP Growth - Service Class 2(2) -32.06% -2.93% 5.74% Fidelity VIP High Income - Service Class 2(2) 0.85% -8.64% 0.81% LSA Diversified Mid-Cap -21.24% N/A -16.29% Putnam Health Sciences(6) -22.31% N/A -3.81% Van Kampen UIF U.S. Real Estate -3.15% 1.87% 4.21% Goldman Sachs VIT CORE Small Cap Equity -17.05% N/A -3.21% Goldman Sachs VIT CORE U.S. Equity -23.83% N/A -4.85% LSA Equity Growth (3) -31.59% N/A -15.36% LSA Capital Growth (3) -26.26% N/A -11.95% MFS Emerging Growth - Service Class (4) -35.28% -6.15% 1.91% MFS Investors Trust - Service Class(4)(10) -23.11% -5.57% 2.88% MFS New Discovery - Service Class(4) -33.54% N/A -0.40% MFS Research - Service Class(4) -26.60% -6.55% 1.23% MFS Utilities - Service Class(4) -24.81% -4.37% 5.75% Oppenheimer Aggressive Growth -29.61% -4.16% 4.28% Oppenheimer Capital Appreciation -28.70% -0.04% 7.71% Oppenheimer Global Securities -24.07% 3.02% 9.47% Oppenheimer Main Street (5) -20.80% -5.54% 6.25% Oppenheimer Strategic Bond 4.91% 1.65% 3.33% Putnam Growth and Income (6) -20.98% -3.20% 6.05% Putnam Growth Opportunities(6) -31.27% N/A -30.65% Putnam International Equity(6)(7) -19.69% -0.04% 2.09% Putnam New Value (6) -17.67% 0.17% 2.49% Putnam Research (6) -24.14% N/A -3.74% Van Kampen UIF Core Plus Fixed Income 4.80% 4.58% 5.05% Van Kampen UIF Global Value Equity -18.90% -2.01% 1.00% Van Kampen UIF U.S. Mid Cap Core (8) -29.84% -0.91% 4.75% Van Kampen UIF Value -24.09% -3.19% 0.13% Franklin Small Cap - Class 2 (1)(11) -30.48% -2.34% 3.79% Franklin Technology Securities - Class 2 (1) -45.39% N/A -37.14% Mutual Shares Securities - Class 2(1)(11) -13.95% 1.50% 4.01% Templeton Developing Markets Securities - Class 2 (1)(12) -2.52% -7.80% -12.02% Templeton Foreign Securities - Class 2 (1)(12) -20.57% -4.44% 5.28%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfoilios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11) The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 2 Set out below are the adjusted historical total returns method 2 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are listed under "Adjusted Historical Returns Method 1" (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -23.93% N/A -5.32% AIM V.I. Balanced -18.45% N/A -2.72% AIM V.I. Capital Appreciation -25.60% -3.82% 5.62% AIM V.I. Core Equity(9) -16.96% -2.52% 6.14% AIM V.I. Dent Demographic Trends -33.32% N/A -28.81% AIM V.I. Diversified Income 0.65% 0.00% 3.07% AIM V.I. Growth -32.11% -9.51% 2.16% AIM V.I. International Growth -17.05% -4.76% 2.60% AIM V.I. Premier Equity -31.41% -3.76% 6.13% Dreyfus Socially Responsible Growth -30.12% -5.35% 4.86% Dreyfus Stock Index -23.64% -2.52% 7.19% Dreyfus VIF - Growth & Income -26.56% -3.88% 6.69% Dreyfus VIF - Money Market -0.17% 2.50% 2.75% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.20% -3.42% 4.93% Fidelity VIP Contrafund - Service Class 2(2) -11.07% 1.77% 10.20% Fidelity VIP Equity-Income - Service Class 2(2) -18.51% -1.58% 7.76% Fidelity VIP Growth - Service Class 2(2) -31.45% -2.24% 6.43% Fidelity VIP High Income - Service Class 2(2) 1.63% -7.85% 1.53% LSA Diversified Mid-Cap -20.57% N/A -15.49% Putnam Health Sciences(6) -21.65% N/A -3.06% Van Kampen UIF U.S. Real Estate -2.39% 2.67% 4.99% Goldman Sachs VIT CORE Small Cap Equity -16.36% N/A -2.44% Goldman Sachs VIT CORE U.S. Equity -23.18% N/A -4.12% LSA Equity Growth (3) -30.97% N/A -14.60% LSA Capital Growth (3) -25.61% N/A -11.19% MFS Emerging Growth - Service Class (4) -34.68% -5.47% 2.60% MFS Investors Trust - Service Class(4)(10) -22.45% -4.85% 3.60% MFS New Discovery - Service Class(4) -32.93% N/A 0.33% MFS Research - Service Class(4) -25.96% -5.84% 1.94% MFS Utilities - Service Class(4) -24.16% -3.66% 6.44% Oppenheimer Aggressive Growth -28.98% -3.46% 4.96% Oppenheimer Capital Appreciation -28.06% 0.67% 8.41% Oppenheimer Global Securities -23.41% 3.74% 10.15% Oppenheimer Main Street (5) -20.13% -4.80% 6.95% Oppenheimer Strategic Bond 5.71% 2.44% 4.10% Putnam Growth and Income (6) -20.31% -2.46% 6.75% Putnam Growth Opportunities(6) -30.65% N/A -29.89% Putnam International Equity(6)(7) -19.01% 0.67% 2.80% Putnam New Value (6) -16.98% 0.92% 3.23% Putnam Research (6) -23.48% N/A -2.99% Van Kampen UIF Core Plus Fixed Income 5.60% 5.36% 5.82% Van Kampen UIF Global Value Equity -18.22% -1.27% 1.72% Van Kampen UIF U.S. Mid Cap Core (8) -29.21% -0.19% 5.45% Van Kampen UIF Value -23.43% -2.43% 0.87% Franklin Small Cap - Class 2 (1)(11) -29.86% -1.62% 4.52% Franklin Technology Securities - Class 2 (1) -44.85% N/A -36.40% Mutual Shares Securities - Class 2(1)(11) -13.25% 2.26% 4.80% Templeton Developing Markets Securities - Class 2 (1)(12) -1.76% -7.01% -11.12% Templeton Foreign Securities - Class 2 (1) -19.89% -3.71% 5.96% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.12% N/A -5.55% AIM V.I. Balanced -18.66% N/A -2.97% AIM V.I. Capital Appreciation -25.79% -4.06% 5.36% AIM V.I. Core Equity(9) -17.17% -2.77% 5.88% AIM V.I. Dent Demographic Trends -33.49% N/A -28.99% AIM V.I. Diversified Income 0.40% -0.26% 2.81% AIM V.I. Growth -32.28% -9.73% 1.90% AIM V.I. International Growth -17.26% -5.00% 2.34% AIM V.I. Premier Equity -31.58% -4.00% 5.87% Dreyfus Socially Responsible Growth -30.29% -5.58% 4.60% Dreyfus Stock Index -23.83% -2.77% 6.92% Dreyfus VIF - Growth & Income -26.74% -4.12% 6.42% Dreyfus VIF - Money Market -0.42% 2.24% 2.49% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.41% -3.67% 4.67% Fidelity VIP Contrafund - Service Class 2(2) -11.30% 1.51% 9.93% Fidelity VIP Equity-Income - Service Class 2(2) -18.71% -1.83% 7.49% Fidelity VIP Growth - Service Class 2(2) -31.62% -2.48% 6.16% Fidelity VIP High Income - Service Class 2(2) 1.38% -8.08% 1.27% LSA Diversified Mid-Cap -20.77% N/A -15.70% Putnam Health Sciences(6) -21.84% N/A -3.30% Van Kampen UIF U.S. Real Estate -2.63% 2.41% 4.73% Goldman Sachs VIT CORE Small Cap Equity -16.57% N/A -2.68% Goldman Sachs VIT CORE U.S. Equity -23.37% N/A -4.36% LSA Equity Growth (3) -31.15% N/A -14.81% LSA Capital Growth (3) -25.80% N/A -11.41% MFS Emerging Growth - Service Class (4) -34.84% -5.70% 2.35% MFS Investors Trust - Service Class(4)(10) -22.64% -5.08% 3.35% MFS New Discovery - Service Class(4) -33.10% N/A 0.07% MFS Research - Service Class(4) -26.14% -6.08% 1.69% MFS Utilities - Service Class(4) -24.35% -3.90% 6.17% Oppenheimer Aggressive Growth -29.16% -3.71% 4.70% Oppenheimer Capital Appreciation -28.24% 0.42% 8.14% Oppenheimer Global Securities -23.60% 3.48% 9.88% Oppenheimer Main Street (5) -20.33% -5.04% 6.68% Oppenheimer Strategic Bond 5.45% 2.18% 3.84% Putnam Growth and Income (6) -20.51% -2.71% 6.49% Putnam Growth Opportunities(6) -30.83% N/A -30.07% Putnam International Equity(6)(7) -19.22% 0.42% 2.55% Putnam New Value (6) -17.19% 0.67% 2.97% Putnam Research (6) -23.67% N/A -3.23% Van Kampen UIF Core Plus Fixed Income 5.33% 5.09% 5.56% Van Kampen UIF Global Value Equity -18.43% -1.52% 1.47% Van Kampen UIF U.S. Mid Cap Core (8) -29.39% -0.43% 5.19% Van Kampen UIF Value -23.62% -2.68% 0.62% Franklin Small Cap - Class 2 (1)(11) -30.04% -1.87% 4.26% Franklin Technology Securities - Class 2 (1) -44.98% N/A -36.56% Mutual Shares Securities - Class 2(1)(11) -13.46% 2.01% 4.53% Templeton Developing Markets Securities - Class 2 (1)(12) -2.01% -7.25% -11.34% Templeton Foreign Securities - Class 2 (1)(12) -20.09% -3.95% 5.69% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.31% N/A -5.79% AIM V.I. Balanced -18.86% N/A -3.21% AIM V.I. Capital Appreciation -25.97% -4.30% 5.09% AIM V.I. Core Equity(9) -17.38% -3.01% 5.61% AIM V.I. Dent Demographic Trends -33.66% N/A -29.17% AIM V.I. Diversified Income 0.15% -0.50% 2.56% AIM V.I. Growth -32.45% -9.96% 1.65% AIM V.I. International Growth -17.47% -5.24% 2.09% AIM V.I. Premier Equity -31.75% -4.24% 5.60% Dreyfus Socially Responsible Growth -30.47% -5.82% 4.34% Dreyfus Stock Index -24.02% -3.01% 6.66% Dreyfus VIF - Growth & Income -26.92% -4.36% 6.16% Dreyfus VIF - Money Market -0.67% 1.98% 2.23% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.61% -3.91% 4.41% Fidelity VIP Contrafund - Service Class 2(2) -11.52% 1.26% 9.65% Fidelity VIP Equity-Income - Service Class 2(2) -18.91% -2.08% 7.22% Fidelity VIP Growth - Service Class 2(2) -31.79% -2.73% 5.90% Fidelity VIP High Income - Service Class 2(2) 1.13% -8.31% 1.02% LSA Diversified Mid-Cap -20.97% N/A -15.91% Putnam Health Sciences(6) -22.04% N/A -3.54% Van Kampen UIF U.S. Real Estate -2.88% 2.15% 4.46% Goldman Sachs VIT CORE Small Cap Equity -16.78% N/A -2.93% Goldman Sachs VIT CORE U.S. Equity -23.56% N/A -4.60% LSA Equity Growth (3) -31.32% N/A -15.02% LSA Capital Growth (3) -25.99% N/A -11.63% MFS Emerging Growth - Service Class (4) -35.00% -5.94% 2.09% MFS Investors Trust - Service Class(4)(10) -22.83% -5.32% 3.09% MFS New Discovery - Service Class(4) -33.27% N/A -0.18% MFS Research - Service Class(4) -26.33% -6.31% 1.43% MFS Utilities - Service Class(4) -24.54% -4.14% 5.91% Oppenheimer Aggressive Growth -29.34% -3.95% 4.44% Oppenheimer Capital Appreciation -28.42% 0.17% 7.87% Oppenheimer Global Securities -23.79% 3.22% 9.60% Oppenheimer Main Street (5) -20.53% -5.28% 6.42% Oppenheimer Strategic Bond 5.19% 1.92% 3.58% Putnam Growth and Income (6) -20.71% -2.95% 6.22% Putnam Growth Opportunities(6) -31.00% N/A -30.24% Putnam International Equity(6)(7) -19.42% 0.17% 2.29% Putnam New Value (6) -17.40% 0.42% 2.72% Putnam Research (6) -23.86% N/A -3.47% Van Kampen UIF Core Plus Fixed Income 5.07% 4.83% 5.29% Van Kampen UIF Global Value Equity -18.63% -1.77% 1.22% Van Kampen UIF U.S. Mid Cap Core (8) -29.56% -0.68% 4.92% Van Kampen UIF Value -23.82% -2.92% 0.36% Franklin Small Cap - Class 2 (1)(11) -30.21% -2.12% 4.00% Franklin Technology Securities - Class 2 (1) -45.12% N/A -36.72% Mutual Shares Securities - Class 2(1)(11) -13.68% 1.75% 4.27% Templeton Developing Markets Securities - Class 2 (1)(12) -2.25% -7.48% -11.57% Templeton Foreign Securities - Class 2 (1)(12) -20.29% -4.19% 5.43% (With Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.28% N/A -5.66% AIM V.I. Balanced -18.80% N/A -3.06% AIM V.I. Capital Appreciation -25.95% -4.11% 5.41% AIM V.I. Core Equity(9) -17.31% -2.81% 5.92% AIM V.I. Dent Demographic Trends -33.67% N/A -29.38% AIM V.I. Diversified Income 0.30% -0.36% 2.76% AIM V.I. Growth -32.46% -9.81% 1.93% AIM V.I. International Growth -17.40% -5.07% 2.35% AIM V.I. Premier Equity -31.76% -4.04% 5.92% Dreyfus Socially Responsible Growth -30.47% -5.64% 4.63% Dreyfus Stock Index -23.99% -2.81% 6.98% Dreyfus VIF - Growth & Income -26.91% -4.19% 6.48% Dreyfus VIF - Money Market -0.52% 2.16% 2.43% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.55% -3.75% 4.71% Fidelity VIP Contrafund - Service Class 2(2) -11.42% 1.49% 10.02% Fidelity VIP Equity-Income - Service Class 2(2) -18.86% -1.90% 7.56% Fidelity VIP Growth - Service Class 2(2) -31.80% -2.50% 6.23% Fidelity VIP High Income - Service Class 2(2) 1.28% -8.26% 1.26% LSA Diversified Mid-Cap -20.92% N/A -15.97% Putnam Health Sciences(6) -22.00% N/A -3.40% Van Kampen UIF U.S. Real Estate -2.74% 2.30% 4.66% Goldman Sachs VIT CORE Small Cap Equity -16.71% N/A -2.80% Goldman Sachs VIT CORE U.S. Equity -23.53% N/A -4.44% LSA Equity Growth (3) -31.32% N/A -15.02% LSA Capital Growth (3) -25.96% N/A -11.60% MFS Emerging Growth - Service Class (4) -35.03% -5.73% 2.38% MFS Investors Trust - Service Class(4)(10) -22.80% -5.16% 3.34% MFS New Discovery - Service Class(4) -33.28% N/A 0.04% MFS Research - Service Class(4) -26.31% -6.15% 1.69% MFS Utilities - Service Class(4) -24.51% -3.95% 6.24% Oppenheimer Aggressive Growth -29.33% -3.74% 4.76% Oppenheimer Capital Appreciation -28.41% 0.41% 8.21% Oppenheimer Global Securities -23.76% 3.48% 9.98% Oppenheimer Main Street (5) -20.48% -5.14% 6.74% Oppenheimer Strategic Bond 5.36% 2.09% 3.79% Putnam Growth and Income (6) -20.66% -2.78% 6.54% Putnam Growth Opportunities(6) -31.00% N/A -30.41% Putnam International Equity(6)(7) -19.36% 0.41% 2.55% Putnam New Value (6) -17.33% 0.60% 2.94% Putnam Research (6) -23.83% N/A -3.32% Van Kampen UIF Core Plus Fixed Income 5.25% 5.03% 5.51% Van Kampen UIF Global Value Equity -18.57% -1.59% 1.45% Van Kampen UIF U.S. Mid Cap Core (8) -29.56% -0.47% 5.23% Van Kampen UIF Value -23.78% -2.77% 0.57% Franklin Small Cap - Class 2 (1)(11) -30.21% -1.90% 4.25% Franklin Technology Securities - Class 2 (1) -45.20% N/A -36.94% Mutual Shares Securities - Class 2(1)(11) -13.60% 1.94% 4.46% Templeton Developing Markets Securities - Class 2 (1)(12) -2.11% -7.42% -11.70% Templeton Foreign Securities - Class 2 (1)(12) -20.24% -4.03% 5.76% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.47% N/A -5.89% AIM V.I. Balanced -19.01% N/A -3.30% AIM V.I. Capital Appreciation -26.14% -4.35% 5.15% AIM V.I. Core Equity(9) -17.52% -3.06% 5.65% AIM V.I. Dent Demographic Trends -33.84% N/A -29.56% AIM V.I. Diversified Income 0.05% -0.61% 2.50% AIM V.I. Growth -32.63% -10.04% 1.67% AIM V.I. International Growth -17.61% -5.31% 2.09% AIM V.I. Premier Equity -31.93% -4.28% 5.66% Dreyfus Socially Responsible Growth -30.64% -5.88% 4.36% Dreyfus Stock Index -24.18% -3.06% 6.71% Dreyfus VIF - Growth & Income -27.09% -4.43% 6.21% Dreyfus VIF - Money Market -0.77% 1.91% 2.17% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.76% -3.99% 4.45% Fidelity VIP Contrafund - Service Class 2(2) -11.65% 1.24% 9.74% Fidelity VIP Equity-Income - Service Class 2(2) -19.06% -2.15% 7.29% Fidelity VIP Growth - Service Class 2(2) -31.97% -2.75% 5.96% Fidelity VIP High Income - Service Class 2(2) 1.03% -8.50% 1.00% LSA Diversified Mid-Cap -21.12% N/A -16.18% Putnam Health Sciences(6) -22.19% N/A -3.65% Van Kampen UIF U.S. Real Estate -2.98% 2.05% 4.40% Goldman Sachs VIT CORE Small Cap Equity -16.92% N/A -3.05% Goldman Sachs VIT CORE U.S. Equity -23.72% N/A -4.68% LSA Equity Growth (3) -31.50% N/A -15.24% LSA Capital Growth (3) -26.15% N/A -11.83% MFS Emerging Growth - Service Class (4) -35.19% -5.97% 2.12% MFS Investors Trust - Service Class(4)(10) -22.99% -5.40% 3.08% MFS New Discovery - Service Class(4) -33.45% N/A -0.22% MFS Research - Service Class(4) -26.49% -6.39% 1.43% MFS Utilities - Service Class(4) -24.70% -4.20% 5.98% Oppenheimer Aggressive Growth -29.51% -3.98% 4.49% Oppenheimer Capital Appreciation -28.59% 0.16% 7.94% Oppenheimer Global Securities -23.95% 3.22% 9.70% Oppenheimer Main Street (5) -20.68% -5.38% 6.47% Oppenheimer Strategic Bond 5.10% 1.83% 3.53% Putnam Growth and Income (6) -20.86% -3.03% 6.27% Putnam Growth Opportunities(6) -31.18% N/A -30.58% Putnam International Equity(6)(7) -19.57% 0.15% 2.29% Putnam New Value (6) -17.54% 0.35% 2.68% Putnam Research (6) -24.02% N/A -3.57% Van Kampen UIF Core Plus Fixed Income 4.98% 4.77% 5.25% Van Kampen UIF Global Value Equity -18.78% -1.83% 1.19% Van Kampen UIF U.S. Mid Cap Core (8) -29.74% -0.72% 4.96% Van Kampen UIF Value -23.97% -3.02% 0.31% Franklin Small Cap - Class 2 (1)(11) -30.39% -2.15% 3.99% Franklin Technology Securities - Class 2 (1) -45.33% N/A -37.10% Mutual Shares Securities - Class 2(1)(11) -13.81% 1.69% 4.20% Templeton Developing Markets Securities - Class 2 (1)(12) -2.36% -7.66% -11.93% Templeton Foreign Securities - Class 2 (1)(12) -20.44% -4.27% 5.50% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.66% N/A -6.13% AIM V.I. Balanced -19.21% N/A -3.55% AIM V.I. Capital Appreciation -26.32% -4.60% 4.88% AIM V.I. Core Equity(9) -17.73% -3.30% 5.39% AIM V.I. Dent Demographic Trends -34.01% N/A -29.74% AIM V.I. Diversified Income -0.20% -0.86% 2.24% AIM V.I. Growth -32.80% -10.27% 1.41% AIM V.I. International Growth -17.82% -5.55% 1.84% AIM V.I. Premier Equity -32.10% -4.52% 5.39% Dreyfus Socially Responsible Growth -30.82% -6.11% 4.10% Dreyfus Stock Index -24.37% -3.30% 6.45% Dreyfus VIF - Growth & Income -27.27% -4.68% 5.94% Dreyfus VIF - Money Market -1.02% 1.65% 1.91% Fidelity VIP Asset Manager: Growth - Service Class 2 (2) -17.96% -4.23% 4.18% Fidelity VIP Contrafund - Service Class 2(2) -11.87% 0.98% 9.47% Fidelity VIP Equity-Income - Service Class 2(2) -19.26% -2.40% 7.02% Fidelity VIP Growth - Service Class 2(2) -32.14% -2.99% 5.70% Fidelity VIP High Income - Service Class 2(2) 0.78% -8.73% 0.75% LSA Diversified Mid-Cap -21.32% N/A -16.39% Putnam Health Sciences(6) -22.39% N/A -3.89% Van Kampen UIF U.S. Real Estate -3.23% 1.79% 4.13% Goldman Sachs VIT CORE Small Cap Equity -17.13% N/A -3.29% Goldman Sachs VIT CORE U.S. Equity -23.91% N/A -4.92% LSA Equity Growth (3) -31.67% N/A -15.45% LSA Capital Growth (3) -26.34% N/A -12.05% MFS Emerging Growth - Service Class (4) -35.35% -6.21% 1.86% MFS Investors Trust - Service Class(4)(10) -23.18% -5.64% 2.82% MFS New Discovery - Service Class(4) -33.62% N/A -0.47% MFS Research - Service Class(4) -26.68% -6.62% 1.17% MFS Utilities - Service Class(4) -24.89% -4.44% 5.71% Oppenheimer Aggressive Growth -29.69% -4.22% 4.23% Oppenheimer Capital Appreciation -28.77% -0.09% 7.66% Oppenheimer Global Securities -24.14% 2.96% 9.43% Oppenheimer Main Street (5) -20.88% -5.62% 6.20% Oppenheimer Strategic Bond 4.84% 1.58% 3.26% Putnam Growth and Income (6) -21.06% -3.27% 6.01% Putnam Growth Opportunities(6) -31.35% N/A -30.76% Putnam International Equity(6)(7) -19.77% -0.10% 2.03% Putnam New Value (6) -17.75% 0.09% 2.43% Putnam Research (6) -24.21% N/A -3.81% Van Kampen UIF Core Plus Fixed Income 4.72% 4.50% 4.98% Van Kampen UIF Global Value Equity -18.98% -2.08% 0.94% Van Kampen UIF U.S. Mid Cap Core (8) -29.91% -0.97% 4.70% Van Kampen UIF Value -24.17% -3.27% 0.06% Franklin Small Cap - Class 2 (1)(11) -30.56% -2.40% 3.73% Franklin Technology Securities - Class 2 (1) -45.47% N/A -37.26% Mutual Shares Securities - Class 2(1)(11) -14.03% 1.43% 3.94% Templeton Developing Markets Securities - Class 2 (1)(12) -2.60% -7.89% -12.15% Templeton Foreign Securities - Class 2 (1)(12) -20.64% -4.51% 5.23%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfoilios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11) The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. SUNTRUST STANDARDIZED TOTAL RETURNS Set out below are the non-standardized total returns for each Variable Sub-Account since its inception through December 31, 2002. The inception dates of the Varaible Sub-Accounts are as follows: Sub-Account Variable Sub-Accounts Inception AIM V.I. Balanced 11/10/98 AIM V.I. Capital Appreciation 01/26/98 AIM V.I. Core Equity 01/26/98 AIM V.I. Growth 01/26/98 AIM V.I. High Yield 11/10/98 AIM V.I. Premier Equity 01/26/98 Federated Prime Money Fund II 11/01/99 Fidelity VIP Contrafund - Service Class 2 05/01/01 Fidelity VIP Equity-Income - Service Class 2 05/01/01 Fidelity VIP Growth - Service Class 2 05/01/01 Fidelity VIP High Income - Service Class 2 05/01/01 Fidelity VIP Index 500 - Service Class 2 05/01/01 Fidelity VIP Overseas - Service Class 2 05/01/01 MFS Emerging Growth - Service Class 05/01/01 MFS Investors Trust - Service Class 05/01/01 MFS New Discovery - Service Class 05/01/01 MFS Research - Service Class 05/01/01 MFS Utilities - Service Class 05/01/01 Oppenheimer Aggressive Growth 11/01/99 Oppenheimer Capital Appreciation 11/01/99 Oppenheimer Global Securities 11/01/99 Oppenheimer Main Street 11/01/99 Oppenheimer Multiple Strategies 01/24/00 Oppenheimer Strategic Bond 11/01/99 Putnam Diversified Income 05/01/01 Putnam Growth and Income 05/01/01 Putnam Growth Opportunities 05/01/01 Putnam Health Sciences 05/01/01 Putnam New Value 05/01/01 Putnam Discovery Growth 05/01/01 STI Capital Appreciation 11/01/99 STI Growth and Income 01/24/00 STI International Equity 01/24/00 STI Investment Grade Bond 01/24/00 STI Mid-Cap Equity 01/24/00 STI Small Cap Value Equity 01/24/00 STI Value Income Stock 11/01/99 Templeton Global Income Securities - Class 2 01/21/00 Templeton Growth Securities - Class 2 11/01/99 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -18.45% N/A -3.99% AIM V.I. Capital Appreciation -25.60% N/A -2.92% AIM V.I. Core Equity(4) -16.96% N/A -2.09% AIM V.I. Growth -32.11% N/A -9.28% AIM V.I. High Yield -7.36% N/A -6.13% AIM V.I. Premier Equity -31.41% N/A -3.45% Federated Prime Money Fund II -0.24% N/A 2.05% Fidelity VIP Contrafund - Service Class 2 -11.07% N/A -9.93% Fidelity VIP Equity-Income - Service Class 2 -18.51% N/A -15.04% Fidelity VIP Growth - Service Class 2 -31.45% N/A -26.84% Fidelity VIP High Income - Service Class 2 1.63% N/A -5.23% Fidelity VIP Index 500 - Service Class 2 -23.72% N/A -20.07% Fidelity VIP Overseas - Service Class 2 -21.76% N/A -24.34% MFS Emerging Growth - Service Class -34.68% N/A -31.53% MFS Investors Trust - Service Class(6) -22.45% N/A -20.34% MFS New Discovery - Service Class -32.93% N/A -23.20% MFS Research - Service Class -25.96% N/A -24.57% MFS Utilities - Service Class -24.16% N/A -28.55% Oppenheimer Aggressive Growth -28.98% N/A -16.03% Oppenheimer Capital Appreciation -28.06% N/A -9.26% Oppenheimer Global Securities -23.41% N/A -3.34% Oppenheimer Main Street(2) -20.13% N/A -11.38% Oppenheimer Multiple Strategies -11.86% N/A -2.29% Oppenheimer Strategic Bond 5.71% N/A 3.58% Putnam Diversified Income 4.20% N/A 3.02% Putnam Growth and Income -20.31% N/A -16.99% Putnam Growth Opportunities -30.65% N/A -29.52% Putnam Health Sciences -21.65% N/A -15.47% Putnam New Value -16.98% N/A -12.97% Putnam Discovery Growth(3) -30.74% N/A -29.59% STI Capital Appreciation(5) -23.17% N/A -7.99% STI Growth and Income -21.89% N/A -8.10% STI International Equity -19.92% N/A -14.34% STI Investment Grade Bond 5.67% N/A 6.17% STI Mid-Cap Equity -29.63% N/A -13.15% STI Small Cap Value Equity -2.79% N/A 14.30% STI Value Income Stock -18.34% N/A -6.24% Templeton Global Income Securities - Class 2(1) 19.21% N/A 7.89% Templeton Growth Securities - Class 2(1) -19.82% N/A -2.25% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -18.58% N/A -4.15% AIM V.I. Capital Appreciation -25.71% N/A -3.10% AIM V.I. Core Equity(4) -17.09% N/A -2.28% AIM V.I. Growth -32.21% N/A -9.44% AIM V.I. High Yield -7.52% N/A -6.26% AIM V.I. Premier Equity -31.51% N/A -3.63% Federated Prime Money Fund II -0.41% N/A 1.89% Fidelity VIP Contrafund - Service Class 2 -11.22% N/A -10.06% Fidelity VIP Equity-Income - Service Class 2 -18.63% N/A -15.15% Fidelity VIP Growth - Service Class 2 -31.54% N/A -26.93% Fidelity VIP High Income - Service Class 2 1.46% N/A -5.37% Fidelity VIP Index 500 - Service Class 2 -23.83% N/A -20.18% Fidelity VIP Overseas - Service Class 2 -21.88% N/A -24.43% MFS Emerging Growth - Service Class -34.76% N/A -31.60% MFS Investors Trust - Service Class(6) -22.56% N/A -20.44% MFS New Discovery - Service Class -33.02% N/A -23.30% MFS Research - Service Class -26.06% N/A -24.66% MFS Utilities - Service Class -24.28% N/A -28.62% Oppenheimer Aggressive Growth -29.08% N/A -16.15% Oppenheimer Capital Appreciation -28.17% N/A -9.39% Oppenheimer Global Securities -23.53% N/A -3.50% Oppenheimer Main Street(2) -20.25% N/A -11.50% Oppenheimer Multiple Strategies -12.00% N/A -2.46% Oppenheimer Strategic Bond 5.53% N/A 3.42% Putnam Diversified Income 4.02% N/A 2.85% Putnam Growth and Income -20.43% N/A -17.11% Putnam Growth Opportunities -30.75% N/A -29.60% Putnam Health Sciences -21.77% N/A -15.59% Putnam New Value -17.11% N/A -13.09% Putnam Discovery Growth(3) -30.84% N/A -29.67% STI Capital Appreciation(5) -23.28% N/A -8.13% STI Growth and Income -22.01% N/A -8.26% STI International Equity -20.04% N/A -14.47% STI Investment Grade Bond 5.49% N/A 5.98% STI Mid-Cap Equity -29.73% N/A -13.28% STI Small Cap Value Equity -2.96% N/A 14.11% STI Value Income Stock -18.47% N/A -6.37% Templeton Global Income Securities - Class 2(1) 18.99% N/A 7.70% Templeton Growth Securities - Class 2(1) -19.94% N/A -2.40% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -18.86% N/A -4.47% AIM V.I. Capital Appreciation -25.97% N/A -3.40% AIM V.I. Core Equity(4) -17.38% N/A -2.58% AIM V.I. Growth -32.45% N/A -9.73% AIM V.I. High Yield -7.83% N/A -6.60% AIM V.I. Premier Equity -31.75% N/A -3.94% Federated Prime Money Fund II -0.73% N/A 1.54% Fidelity VIP Contrafund - Service Class 2 -11.52% N/A -10.38% Fidelity VIP Equity-Income - Service Class 2 -18.91% N/A -15.46% Fidelity VIP Growth - Service Class 2 -31.79% N/A -27.21% Fidelity VIP High Income - Service Class 2 1.13% N/A -5.70% Fidelity VIP Index 500 - Service Class 2 -24.10% N/A -20.47% Fidelity VIP Overseas - Service Class 2 -22.15% N/A -24.72% MFS Emerging Growth - Service Class -35.00% N/A -31.87% MFS Investors Trust - Service Class(6) -22.83% N/A -20.74% MFS New Discovery - Service Class -33.27% N/A -23.59% MFS Research - Service Class -26.33% N/A -24.94% MFS Utilities - Service Class -24.54% N/A -28.90% Oppenheimer Aggressive Growth -29.34% N/A -16.45% Oppenheimer Capital Appreciation -28.42% N/A -9.71% Oppenheimer Global Securities -23.79% N/A -3.82% Oppenheimer Main Street(2) -20.53% N/A -11.82% Oppenheimer Multiple Strategies -12.30% N/A -2.78% Oppenheimer Strategic Bond 5.19% N/A 3.06% Putnam Diversified Income 3.68% N/A 2.50% Putnam Growth and Income -20.71% N/A -17.41% Putnam Growth Opportunities -31.00% N/A -29.87% Putnam Health Sciences -22.04% N/A -15.90% Putnam New Value -17.40% N/A -13.40% Putnam Discovery Growth(3) -31.09% N/A -29.95% STI Capital Appreciation(5) -23.55% N/A -8.45% STI Growth and Income -22.28% N/A -8.56% STI International Equity -20.32% N/A -14.77% STI Investment Grade Bond 5.14% N/A 5.64% STI Mid-Cap Equity -29.98% N/A -13.58% STI Small Cap Value Equity -3.28% N/A 13.79% STI Value Income Stock -18.75% N/A -6.71% Templeton Global Income Securities - Class 2(1) 18.61% N/A 7.35% Templeton Growth Securities - Class 2(1) -20.22% N/A -2.74% (With Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -18.80% N/A -4.38% AIM V.I. Capital Appreciation -25.95% N/A -3.20% AIM V.I. Core Equity(4) -17.31% N/A -2.38% AIM V.I. Growth -32.46% N/A -9.59% AIM V.I. High Yield -7.71% N/A -6.57% AIM V.I. Premier Equity -31.76% N/A -3.73% Federated Prime Money Fund II -0.59% N/A 1.61% Fidelity VIP Contrafund - Service Class 2 -11.42% N/A -10.36% Fidelity VIP Equity-Income - Service Class 2 -18.86% N/A -15.46% Fidelity VIP Growth - Service Class 2 -31.80% N/A -27.28% Fidelity VIP High Income - Service Class 2 1.28% N/A -5.67% Fidelity VIP Index 500 - Service Class 2 -24.07% N/A -20.50% Fidelity VIP Overseas - Service Class 2 -22.11% N/A -24.79% MFS Emerging Growth - Service Class -35.03% N/A -31.98% MFS Investors Trust - Service Class(6) -22.80% N/A -20.78% MFS New Discovery - Service Class -33.28% N/A -23.62% MFS Research - Service Class -26.31% N/A -25.01% MFS Utilities - Service Class -24.51% N/A -29.01% Oppenheimer Aggressive Growth -29.33% N/A -16.46% Oppenheimer Capital Appreciation -28.41% N/A -9.66% Oppenheimer Global Securities -23.76% N/A -3.71% Oppenheimer Main Street(2) -20.48% N/A -11.83% Oppenheimer Multiple Strategies -12.21% N/A -2.64% Oppenheimer Strategic Bond 5.36% N/A 3.14% Putnam Diversified Income 3.85% N/A 2.60% Putnam Growth and Income -20.66% N/A -17.42% Putnam Growth Opportunities -31.00% N/A -29.97% Putnam Health Sciences -22.00% N/A -15.89% Putnam New Value -17.33% N/A -13.39% Putnam Discovery Growth(3) -31.09% N/A -30.04% STI Capital Appreciation(5) -23.52% N/A -8.42% STI Growth and Income -22.24% N/A -8.46% STI International Equity -20.27% N/A -14.74% STI Investment Grade Bond 5.32% N/A 5.83% STI Mid-Cap Equity -29.98% N/A -13.53% STI Small Cap Value Equity -3.14% N/A 14.00% STI Value Income Stock -18.69% N/A -6.68% Templeton Global Income Securities - Class 2(1) 18.86% N/A 7.54% Templeton Growth Securities - Class 2(1) -20.17% N/A -2.64% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -19.01% N/A -4.62% AIM V.I. Capital Appreciation -26.14% N/A -3.45% AIM V.I. Core Equity(4) -17.52% N/A -2.63% AIM V.I. Growth -32.63% N/A -9.81% AIM V.I. High Yield -7.95% N/A -6.80% AIM V.I. Premier Equity -31.93% N/A -3.98% Federated Prime Money Fund II -0.83% N/A 1.36% Fidelity VIP Contrafund - Service Class 2 -11.65% N/A -10.58% Fidelity VIP Equity-Income - Service Class 2 -19.06% N/A -15.67% Fidelity VIP Growth - Service Class 2 -31.97% N/A -27.46% Fidelity VIP High Income - Service Class 2 1.03% N/A -5.90% Fidelity VIP Index 500 - Service Class 2 -24.26% N/A -20.70% Fidelity VIP Overseas - Service Class 2 -22.30% N/A -24.98% MFS Emerging Growth - Service Class -35.19% N/A -32.15% MFS Investors Trust - Service Class(6) -22.99% N/A -20.98% MFS New Discovery - Service Class -33.45% N/A -23.81% MFS Research - Service Class -26.49% N/A -25.20% MFS Utilities - Service Class -24.70% N/A -29.19% Oppenheimer Aggressive Growth -29.51% N/A -16.67% Oppenheimer Capital Appreciation -28.59% N/A -9.89% Oppenheimer Global Securities -23.95% N/A -3.96% Oppenheimer Main Street(2) -20.68% N/A -12.06% Oppenheimer Multiple Strategies -12.43% N/A -2.88% Oppenheimer Strategic Bond 5.10% N/A 2.88% Putnam Diversified Income 3.59% N/A 2.34% Putnam Growth and Income -20.86% N/A -17.63% Putnam Growth Opportunities -31.18% N/A -30.15% Putnam Health Sciences -22.19% N/A -16.10% Putnam New Value -17.54% N/A -13.61% Putnam Discovery Growth(3) -31.26% N/A -30.22% STI Capital Appreciation(5) -23.71% N/A -8.65% STI Growth and Income -22.44% N/A -8.69% STI International Equity -20.47% N/A -14.96% STI Investment Grade Bond 5.06% N/A 5.57% STI Mid-Cap Equity -30.16% N/A -13.75% STI Small Cap Value Equity -3.39% N/A 13.75% STI Value Income Stock -18.90% N/A -6.92% Templeton Global Income Securities - Class 2(1) 18.56% N/A 7.27% Templeton Growth Securities - Class 2(1) -20.37% N/A -2.89% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -19.21% N/A -4.86% AIM V.I. Capital Appreciation -26.32% N/A -3.69% AIM V.I. Core Equity(4) -17.73% N/A -2.87% AIM V.I. Growth -32.80% N/A -10.04% AIM V.I. High Yield -8.18% N/A -7.04% AIM V.I. Premier Equity -32.10% N/A -4.22% Federated Prime Money Fund II -1.08% N/A 1.10% Fidelity VIP Contrafund - Service Class 2 -11.87% N/A -10.81% Fidelity VIP Equity-Income - Service Class 2 -19.26% N/A -15.89% Fidelity VIP Growth - Service Class 2 -32.14% N/A -27.64% Fidelity VIP High Income - Service Class 2 0.78% N/A -6.14% Fidelity VIP Index 500 - Service Class 2 -24.45% N/A -20.90% Fidelity VIP Overseas - Service Class 2 -22.50% N/A -25.17% MFS Emerging Growth - Service Class -35.35% N/A -32.32% MFS Investors Trust - Service Class(6) -23.18% N/A -21.17% MFS New Discovery - Service Class -33.62% N/A -24.00% MFS Research - Service Class -26.68% N/A -25.39% MFS Utilities - Service Class -24.89% N/A -29.37% Oppenheimer Aggressive Growth -29.69% N/A -16.88% Oppenheimer Capital Appreciation -28.77% N/A -10.12% Oppenheimer Global Securities -24.14% N/A -4.20% Oppenheimer Main Street(2) -20.88% N/A -12.28% Oppenheimer Multiple Strategies -12.65% N/A -3.13% Oppenheimer Strategic Bond 4.84% N/A 2.62% Putnam Diversified Income 3.33% N/A 2.08% Putnam Growth and Income -21.06% N/A -17.84% Putnam Growth Opportunities -31.35% N/A -30.32% Putnam Health Sciences -22.39% N/A -16.32% Putnam New Value -17.75% N/A -13.83% Putnam Discovery Growth(3) -31.44% N/A -30.40% STI Capital Appreciation(5) -23.90% N/A -8.88% STI Growth and Income -22.63% N/A -8.92% STI International Equity -20.67% N/A -15.17% STI Investment Grade Bond 4.79% N/A 5.30% STI Mid-Cap Equity -30.33% N/A -13.96% STI Small Cap Value Equity -3.63% N/A 13.49% STI Value Income Stock -19.10% N/A -7.15% Templeton Global Income Securities - Class 2(1) 18.26% N/A 7.00% Templeton Growth Securities - Class 2(1) -20.57% N/A -3.13%
(1) Performance shown prior to 5/1/00 is based on the Templeton Bond (Class 2) and Templeton Stock (Class 2) Sub-Accounts. On 5/1/00, the Templeton Bond (Class 2), and Templeton Stock (Class 2) Portfolios were merged into the Templeton Global Income Securities (Class 2) and Templeton Growth Securities (Class 2) portfolios, respectively and were closed. For administrative convenience, on May 1, 2000, we merged the corresponding Sub-Accounts into new Sub-Accounts named Templeton Global Income Securities (Class 2) and Templeton Growth Securities (Class 2), respectively. (2) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (3) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (4) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (5) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (6) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 1 Set out below are the adjusted historical total returns method 1 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. Theadjusted historical total returns method 1 shown below do not reflect the $35.00 annual contract maintenance charge. The inception dates of the Portfolios are as follows: Inception Date f Corresponding Variable Sub-Account Portfolio o Inception AIM V.I. Balanced 05/01/98 AIM V.I. Capital Appreciation 05/05/93 AIM V.I. Core Equity 05/02/94 AIM V.I. Growth 05/05/93 AIM V.I. High Yield 05/01/98 AIM V.I. Premier Equity 05/05/93 Federated Prime Money Fund II 11/21/94 Fidelity VIP Contrafund - Service Class 2 01/04/95 Fidelity VIP Equity-Income - Service Class 2 10/10/86 Fidelity VIP Growth - Service Class 2 10/10/86 Fidelity VIP High Income - Service Class 2 09/20/85 Fidelity VIP Index 500 - Service Class 2 08/27/92 Fidelity VIP Overseas - Service Class 2 01/28/87 MFS Emerging Growth - Service Class 07/24/95 MFS Investors Trust - Service Class 10/09/95 MFS New Discovery - Service Class 05/01/98 MFS Research - Service Class 07/26/95 MFS Utilities - Service Class 01/03/95 Oppenheimer Aggressive Growth 08/15/86 Oppenheimer Capital Appreciation 04/03/85 Oppenheimer Global Securities 11/12/90 Oppenheimer Main Street 07/05/95 Oppenheimer Multiple Strategies 02/09/87 Oppenheimer Strategic Bond 05/03/93 Putnam Diversified Income 09/15/93 Putnam Growth and Income 02/01/88 Putnam Growth Opportunities 01/31/00 Putnam Health Sciences 04/30/98 Putnam New Value 01/02/97 Putnam Discovery Growth 09/29/00 STI Capital Appreciation 10/02/95 STI Growth and Income 12/31/99 STI International Equity 11/07/96 STI Investment Grade Bond 10/02/95 STI Mid-Cap Equity 10/02/95 STI Small Cap Value Equity 10/21/97 STI Value Income Stock 10/02/95 Templeton Global Income Securities - Class 2 01/24/89 Templeton Growth Securities - Class 2 03/15/94 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.38% N/A -2.65% AIM V.I. Capital Appreciation -25.52% -3.76% 5.67% AIM V.I. Core Equity(7) -16.88% -2.46% 6.19% AIM V.I. Growth -32.04% -9.44% 2.21% AIM V.I. High Yield -7.29% N/A -7.69% AIM V.I. Premier Equity -31.33% -3.70% 6.18% Federated Prime Money Fund II -0.16% 2.50% 5.84% Fidelity VIP Contrafund - Service Class 2(2) -11.00% 1.83% 10.24% Fidelity VIP Equity-Income - Service Class 2(2) -18.43% -1.51% 7.81% Fidelity VIP Growth - Service Class 2(2) -31.37% -2.18% 6.47% Fidelity VIP High Income - Service Class 2(2) 1.71% -7.75% 1.58% Fidelity VIP Index 500 - Service Class 2(2) -23.64% -2.61% 7.10% Fidelity VIP Overseas - Service Class 2(2) -21.68% -6.08% 2.49% MFS Emerging Growth - Service Class(3) -34.60% -5.41% 2.65% MFS Investors Trust - Service Class(3)(9) -22.37% -4.78% 3.66% MFS New Discovery - Service Class(3) -32.85% N/A 0.39% MFS Research - Service Class(3) -25.88% -5.77% 2.00% MFS Utilities - Service Class(3) -24.09% -3.59% 6.48% Oppenheimer Aggressive Growth -28.90% -3.40% 5.01% Oppenheimer Capital Appreciation -27.99% 0.73% 8.46% Oppenheimer Global Securities -23.33% 3.79% 10.19% Oppenheimer Main Street(4) -20.05% -4.73% 7.00% Oppenheimer Multiple Strategies -11.78% 1.47% 6.40% Oppenheimer Strategic Bond 5.79% 2.51% 4.17% Putnam Diversified Income(5) 4.28% 0.28% 2.74% Putnam Growth and Income(5) -20.23% -2.39% 6.80% Putnam Growth Opportunities(5) -30.58% N/A -29.78% Putnam Health Sciences(5) -21.57% N/A -2.98% Putnam New Value(5) -16.90% 0.99% 3.30% Putnam Discovery Growth(5)(6) -30.66% N/A -37.61% STI Capital Appreciation(8) -23.09% -0.22% 7.82% STI Growth and Income -21.81% N/A -7.84% STI International Equity -19.84% -6.24% -2.69% STI Investment Grade Bond 5.75% 4.37% 4.55% STI Mid-Cap Equity -29.55% -4.21% 1.82% STI Small Cap Value Equity -2.72% 2.97% 2.38% STI Value Income Stock -18.26% -2.25% 4.66% Templeton Global Income Securities - Class 2(1)(10) 19.29% 3.67% 4.57% Templeton Growth Securities - Class 2(1)(10) -19.74% -0.16% 4.58% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.58% N/A -2.89% AIM V.I. Capital Appreciation -25.71% -4.00% 5.40% AIM V.I. Core Equity(7) -17.09% -2.70% 5.93% AIM V.I. Growth -32.21% -9.67% 1.95% AIM V.I. High Yield -7.52% N/A -7.92% AIM V.I. Premier Equity -31.51% -3.94% 5.91% Federated Prime Money Fund II -0.41% 2.24% 5.58% Fidelity VIP Contrafund - Service Class 2(2) -11.22% 1.58% 9.97% Fidelity VIP Equity-Income - Service Class 2(2) -18.63% -1.76% 7.54% Fidelity VIP Growth - Service Class 2(2) -31.54% -2.43% 6.21% Fidelity VIP High Income - Service Class 2(2) 1.46% -7.98% 1.33% Fidelity VIP Index 500 - Service Class 2(2) -23.83% -2.86% 6.83% Fidelity VIP Overseas - Service Class 2(2) -21.88% -6.31% 2.24% MFS Emerging Growth - Service Class(3) -34.76% -5.65% 2.40% MFS Investors Trust - Service Class(3)(9) -22.56% -5.01% 3.40% MFS New Discovery - Service Class(3) -33.02% N/A 0.14% MFS Research - Service Class(3) -26.06% -6.01% 1.74% MFS Utilities - Service Class(3) -24.28% -3.83% 6.22% Oppenheimer Aggressive Growth -29.08% -3.65% 4.75% Oppenheimer Capital Appreciation -28.17% 0.48% 8.19% Oppenheimer Global Securities -23.53% 3.53% 9.92% Oppenheimer Main Street(4) -20.25% -4.97% 6.73% Oppenheimer Multiple Strategies -12.00% 1.22% 6.13% Oppenheimer Strategic Bond 5.53% 2.26% 3.91% Putnam Diversified Income(5) 4.02% 0.03% 2.48% Putnam Growth and Income(5) -20.43% -2.64% 6.53% Putnam Growth Opportunities(5) -30.75% N/A -29.95% Putnam Health Sciences(5) -21.77% N/A -3.23% Putnam New Value(5) -17.11% 0.74% 3.04% Putnam Discovery Growth(5)(6) -30.84% N/A -37.76% STI Capital Appreciation(8) -23.28% -0.47% 7.55% STI Growth and Income -22.01% N/A -8.07% STI International Equity -20.04% -6.48% -2.93% STI Investment Grade Bond 5.49% 4.11% 4.29% STI Mid-Cap Equity -29.73% -4.45% 1.57% STI Small Cap Value Equity -2.96% 2.73% 2.15% STI Value Income Stock -18.47% -2.49% 4.40% Templeton Global Income Securities - Class 2(1)(10) 18.99% 3.41% 4.31% Templeton Growth Securities - Class 2(1)(10) -19.94% -0.41% 4.32% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.78% N/A -3.14% AIM V.I. Capital Appreciation -25.89% -4.24% 5.14% AIM V.I. Core Equity(7) -17.30% -2.94% 5.66% AIM V.I. Growth -32.38% -9.89% 1.70% AIM V.I. High Yield -7.75% N/A -8.15% AIM V.I. Premier Equity -31.68% -4.18% 5.65% Federated Prime Money Fund II -0.66% 1.99% 5.31% Fidelity VIP Contrafund - Service Class 2(2) -11.44% 1.32% 9.69% Fidelity VIP Equity-Income - Service Class 2(2) -18.84% -2.01% 7.27% Fidelity VIP Growth - Service Class 2(2) -31.71% -2.67% 5.94% Fidelity VIP High Income - Service Class 2(2) 1.20% -8.21% 1.08% Fidelity VIP Index 500 - Service Class 2(2) -24.02% -3.10% 6.56% Fidelity VIP Overseas - Service Class 2(2) -22.07% -6.55% 1.98% MFS Emerging Growth - Service Class(3) -34.93% -5.88% 2.14% MFS Investors Trust - Service Class(3)(9) -22.76% -5.25% 3.15% MFS New Discovery - Service Class(3) -33.19% N/A -0.11% MFS Research - Service Class(3) -26.25% -6.24% 1.49% MFS Utilities - Service Class(3) -24.46% -4.07% 5.95% Oppenheimer Aggressive Growth -29.26% -3.89% 4.48% Oppenheimer Capital Appreciation -28.35% 0.23% 7.92% Oppenheimer Global Securities -23.72% 3.27% 9.64% Oppenheimer Main Street(4) -20.45% -5.21% 6.47% Oppenheimer Multiple Strategies -12.22% 0.96% 5.87% Oppenheimer Stategic Bond 5.26% 2.00% 3.65% Putnam Diversified Income(5) 3.76% -0.22% 2.22% Putnam Growth and Income(5) -20.63% -2.88% 6.27% Putnam Growth Opportunities(5) -30.92% N/A -30.13% Putnam Health Sciences(5) -21.96% N/A -3.47% Putnam New Value(5) -17.32% 0.49% 2.78% Putnam Discovery Growth(5)(6) -31.01% N/A -37.92% STI Capital Appreciation(8) -23.47% -0.72% 7.28% STI Growth and Income -22.21% N/A -8.30% STI International Equity -20.24% -6.71% -3.17% STI Investment Grade Bond 5.22% 3.85% 4.03% STI Mid-Cap Equity -29.91% -4.69% 1.32% STI Small Cap Value Equity -3.20% 2.49% 1.91% STI Value Income Stock -18.67% -2.74% 4.14% Templeton Global Income Securities - Class 2(1)(10) 18.69% 3.15% 4.05% Templeton Growth Securities - Class 2(1)(10) -20.15% -0.65% 4.06% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.73% N/A -2.98% AIM V.I. Capital Appreciation -25.87% -4.05% 5.46% AIM V.I. Core Equity(7) -17.23% -2.75% 5.97% AIM V.I. Growth -32.39% -9.75% 1.98% AIM V.I. High Yield -7.64% N/A -8.12% AIM V.I. Premier Equity -31.68% -3.98% 5.97% Federated Prime Money Fund II -0.51% 2.17% 5.54% Fidelity VIP Contrafund - Service Class 2(2) -11.35% 1.55% 10.06% Fidelity VIP Equity-Income - Service Class 2(2) -18.78% -1.83% 7.60% Fidelity VIP Growth - Service Class 2(2) -31.72% -2.44% 6.28% Fidelity VIP High Income - Service Class 2(2) 1.36% -8.17% 1.32% Fidelity VIP Index 500 - Service Class 2(2) -23.99% -2.90% 6.89% Fidelity VIP Overseas - Service Class 2(2) -22.03% -6.40% 2.27% MFS Emerging Growth - Service Class(3) -34.95% -5.67% 2.43% MFS Investors Trust - Service Class(3)(9) -22.72% -5.09% 3.40% MFS New Discovery - Service Class(3) -33.20% N/A 0.10% MFS Research - Service Class(3) -26.23% -6.08% 1.74% MFS Utilities - Service Class(3) -24.44% -3.89% 6.29% Oppenheimer Aggressive Growth -29.25% -3.68% 4.80% Oppenheimer Capital Appreciation -28.34% 0.47% 8.26% Oppenheimer Global Securities -23.68% 3.54% 10.02% Oppenheimer Main Street(4) -20.40% -5.06% 6.78% Oppenheimer Multiple Strategies -12.13% 1.16% 6.16% Oppenheimer Strategic Bond 5.44% 2.17% 3.86% Putnam Diversified Income(5) 3.93% -0.08% 2.40% Putnam Growth and Income(5) -20.58% -2.71% 6.59% Putnam Growth Opportunities(5) -30.93% N/A -30.29% Putnam Health Sciences(5) -21.92% N/A -3.33% Putnam New Value(5) -17.25% 0.67% 3.01% Putnam Discovery Growth(5)(6) -31.01% N/A -38.22% STI Capital Appreciation(8) -23.44% -0.51% 7.58% STI Growth and Income -22.16% N/A -8.19% STI International Equity -20.19% -6.58% -3.04% STI Investment Grade Bond 5.40% 4.05% 4.20% STI Mid-Cap Equity -29.90% -4.53% 1.53% STI Small Cap Value Equity -3.07% 2.59% 1.94% STI Value Income Stock -18.61% -2.58% 4.38% Templeton Global Income Securities - Class 2(1)(10) 18.94% 3.32% 4.28% Templeton Growth Securities - Class 2(1)(10) -20.09% -0.46% 4.32% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.93% N/A -3.23% AIM V.I. Capital Appreciation -26.06% -4.29% 5.19% AIM V.I. Core Equity(7) -17.44% -2.99% 5.70% AIM V.I. Growth -32.56% -9.97% 1.72% AIM V.I. High Yield -7.87% N/A -8.35% AIM V.I. Premier Equity -31.86% -4.22% 5.70% Federated Prime Money Fund II -0.76% 1.91% 5.28% Fidelity VIP Contrafund - Service Class 2(2) -11.57% 1.30% 9.78% Fidelity VIP Equity-Income - Service Class 2(2) -18.98% -2.08% 7.33% Fidelity VIP Growth - Service Class 2(2) -31.89% -2.69% 6.01% Fidelity VIP High Income - Service Class 2(2) 1.11% -8.40% 1.06% Fidelity VIP Index 500 - Service Class 2(2) -24.18% -3.15% 6.62% Fidelity VIP Overseas - Service Class 2(2) -22.23% -6.64% 2.01% MFS Emerging Growth - Service Class(3) -35.11% -5.91% 2.17% MFS Investors Trust - Service Class(3)(9) -22.91% -5.33% 3.14% MFS New Discovery - Service Class(3) -33.37% N/A -0.15% MFS Research - Service Class(3) -26.41% -6.32% 1.49% MFS Utilities - Service Class(3) -24.63% -4.13% 6.02% Oppenheimer Aggressive Growth -29.43% -3.92% 4.54% Oppenheimer Capital Appreciation -28.52% 0.22% 7.98% Oppenheimer Global Securities -23.88% 3.28% 9.74% Oppenheimer Main Street(4) -20.60% -5.30% 6.52% Oppenheimer Multiple Strategies -12.35% 0.90% 5.89% Oppenheimer Strategic Bond 5.18% 1.91% 3.60% Putnam Diversified Income(5) 3.67% -0.34% 2.14% Putnam Growth and Income(5) -20.78% -2.96% 6.32% Putnam Growth Opportunities(5) -31.10% N/A -30.47% Putnam Health Sciences(5) -22.12% N/A -3.57% Putnam New Value(5) -17.46% 0.42% 2.75% Putnam Discovery Growth(5)(6) -31.19% N/A -38.37% STI Capital Appreciation(8) -23.63% -0.76% 7.31% STI Growth and Income -22.36% N/A -8.42% STI International Equity -20.39% -6.82% -3.28% STI Investment Grade Bond 5.14% 3.78% 3.94% STI Mid-Cap Equity -30.08% -4.78% 1.27% STI Small Cap Value Equity -3.31% 2.35% 1.70% STI Value Income Stock -18.82% -2.83% 4.12% Templeton Global Income Securities - Class 2(1)(10) 18.64% 3.06% 4.01% Templeton Growth Securities - Class 2(1)(10) -20.29% -0.71% 4.06% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -19.13% N/A -3.47% AIM V.I. Capital Appreciation -26.24% -4.53% 4.93% AIM V.I. Core Equity(7) -17.65% -3.24% 5.44% AIM V.I. Growth -32.73% -10.20% 1.47% AIM V.I. High Yield -8.10% N/A -8.58% AIM V.I. Premier Equity -32.03% -4.46% 5.44% Federated Prime Money Fund II -1.01% 1.65% 5.01% Fidelity VIP Contrafund - Service Class 2(2) -11.79% 1.04% 9.51% Fidelity VIP Equity-Income - Service Class 2(2) -19.19% -2.33% 7.06% Fidelity VIP Growth - Service Class 2(2) -32.06% -2.93% 5.74% Fidelity VIP High Income - Service Class 2(2) 0.85% -8.64% 0.81% Fidelity VIP Index 500 - Service Class 2(2) -24.37% -3.39% 6.35% Fidelity VIP Overseas - Service Class 2(2) -22.42% -6.87% 1.76% MFS Emerging Growth - Service Class(3) -35.28% -6.15% 1.91% MFS Investors Trust - Service Class(3)(9) -23.11% -5.57% 2.88% MFS New Discovery - Service Class(3) -33.54% N/A -0.40% MFS Research - Service Class(3) -26.60% -6.55% 1.23% MFS Utilities - Service Class(3) -24.81% -4.37% 5.75% Oppenheimer Aggressive Growth -29.61% -4.16% 4.28% Oppenheimer Capital Appreciation -28.70% -0.04% 7.71% Oppenheimer Global Securities -24.07% 3.02% 9.47% Oppenheimer Main Street(4) -20.80% -5.54% 6.25% Oppenheimer Multiple Strategies -12.57% 0.65% 5.63% Oppenheimer Strategic Bond 4.91% 1.65% 3.33% Putnam Diversified Income(5) 3.41% -0.59% 1.88% Putnam Growth and Income(5) -20.98% -3.20% 6.05% Putnam Growth Opportunities(5) -31.27% N/A -30.65% Putnam Health Sciences(5) -22.31% N/A -3.81% Putnam New Value(5) -17.67% 0.17% 2.49% Putnam Discovery Growth(5)(6) -31.36% N/A -38.53% STI Capital Appreciation(8) -23.82% -1.01% 7.04% STI Growth and Income -22.56% N/A -8.65% STI International Equity -20.59% -7.05% -3.53% STI Investment Grade Bond 4.87% 3.52% 3.68% STI Mid-Cap Equity -30.26% -5.02% 1.02% STI Small Cap Value Equity -3.55% 2.11% 1.46% STI Value Income Stock -19.02% -3.07% 3.86% Templeton Global Income Securities - Class 2(1)(10) 18.34% 2.80% 3.75% Templeton Growth Securities - Class 2(1)(10) -20.50% -0.96% 3.79%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (4) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (5) Each of the Portfoilios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (6) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (7) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (8) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (9) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 2 Set out below are the adjusted historical total returns using method 2 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are listed under "Adjusted Historical Returns Method 1" (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.45% N/A -2.72% AIM V.I. Capital Appreciation -25.60% -3.82% 5.62% AIM V.I. Core Equity(7) -16.96% -2.52% 6.14% AIM V.I. Growth -32.11% -9.51% 2.16% AIM V.I. High Yield -7.36% N/A -7.78% AIM V.I. Premier Equity -31.41% -3.76% 6.13% Federated Prime Money Fund II -0.24% 2.43% 5.78% Fidelity VIP Contrafund - Service Class 2(2) -11.07% 1.77% 10.20% Fidelity VIP Equity-Income - Service Class 2(2) -18.51% -1.58% 7.76% Fidelity VIP Growth - Service Class 2(2) -31.45% -2.24% 6.43% Fidelity VIP High Income - Service Class 2(2) 1.63% -7.85% 1.53% Fidelity VIP Index 500 - Service Class 2(2) -23.72% -2.68% 7.05% Fidelity VIP Overseas - Service Class 2(2) -21.76% -6.15% 2.45% MFS Emerging Growth - Service Class(3) -34.68% -5.47% 2.60% MFS Investors Trust - Service Class(3)(9) -22.45% -4.85% 3.60% MFS New Discovery - Service Class(3) -32.93% N/A 0.33% MFS Research - Service Class(3) -25.96% -5.84% 1.94% MFS Utilities - Service Class(3) -24.16% -3.66% 6.44% Oppenheimer Aggressive Growth -28.98% -3.46% 4.96% Oppenheimer Capital Appreciation -28.06% 0.67% 8.41% Oppenheimer Global Securities -23.41% 3.74% 10.15% Oppenheimer Main Street(4) -20.13% -4.80% 6.95% Oppenheimer Multiple Strategies -11.86% 1.40% 6.35% Oppenheimer Strategic Bond 5.71% 2.44% 4.10% Putnam Diversified Income(5) 4.20% 0.20% 2.66% Putnam Growth and Income(5) -20.31% -2.46% 6.75% Putnam Growth Opportunities(5) -30.65% N/A -29.89% Putnam Health Sciences(5) -21.65% N/A -3.06% Putnam New Value(5) -16.98% 0.92% 3.23% Putnam Discovery Growth(5)(6) -30.74% N/A -37.74% STI Capital Appreciation(8) -23.17% -0.28% 7.77% STI Growth and Income -21.89% N/A -7.92% STI International Equity -19.92% -6.32% -2.76% STI Investment Grade Bond 5.67% 4.30% 4.48% STI Mid-Cap Equity -29.63% -4.28% 1.76% STI Small Cap Value Equity -2.79% 2.88% 2.29% STI Value Income Stock -18.34% -2.32% 4.60% Templeton Global Income Securities - Class 2(1)(10) 19.21% 3.59% 4.50% Templeton Growth Securities - Class 2(1)(10) -19.82% -0.22% 4.52% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.66% N/A -2.97% AIM V.I. Capital Appreciation -25.79% -4.06% 5.36% AIM V.I. Core Equity(7) -17.17% -2.77% 5.88% AIM V.I. Growth -32.28% -9.73% 1.90% AIM V.I. High Yield -7.60% N/A -8.01% AIM V.I. Premier Equity -31.58% -4.00% 5.87% Federated Prime Money Fund II -0.48% 2.17% 5.51% Fidelity VIP Contrafund - Service Class 2(2) -11.30% 1.51% 9.93% Fidelity VIP Equity-Income - Service Class 2(2) -18.71% -1.83% 7.49% Fidelity VIP Growth - Service Class 2(2) -31.62% -2.48% 6.16% Fidelity VIP High Income - Service Class 2(2) 1.38% -8.08% 1.27% Fidelity VIP Index 500 - Service Class 2(2) -23.91% -2.92% 6.78% Fidelity VIP Overseas - Service Class 2(2) -21.95% -6.39% 2.19% MFS Emerging Growth - Service Class(3) -34.84% -5.70% 2.35% MFS Investors Trust - Service Class(3)(9) -22.64% -5.08% 3.35% MFS New Discovery - Service Class(3) -33.10% N/A 0.07% MFS Research - Service Class(3) -26.14% -6.08% 1.69% MFS Utilities - Service Class(3) -24.35% -3.90% 6.17% Oppenheimer Aggressive Growth -29.16% -3.71% 4.70% Oppenheimer Capital Appreciation -28.24% 0.42% 8.14% Oppenheimer Global Securities -23.60% 3.48% 9.88% Oppenheimer Main Street(4) -20.33% -5.04% 6.68% Oppenheimer Multiple Strategies -12.08% 1.15% 6.08% Oppenheimer Strategic Bond 5.45% 2.18% 3.84% Putnam Diversified Income(5) 3.94% -0.05% 2.41% Putnam Growth and Income(5) -20.51% -2.71% 6.49% Putnam Growth Opportunities(5) -30.83% N/A -30.07% Putnam Health Sciences(5) -21.84% N/A -3.30% Putnam New Value(5) -17.19% 0.67% 2.97% Putnam Discovery Growth(5)(6) -30.91% N/A -37.90% STI Capital Appreciation(8) -23.36% -0.53% 7.50% STI Growth and Income -22.09% N/A -8.15% STI International Equity -20.12% -6.55% -3.01% STI Investment Grade Bond 5.41% 4.04% 4.21% STI Mid-Cap Equity -29.81% -4.52% 1.50% STI Small Cap Value Equity -3.04% 2.64% 2.05% STI Value Income Stock -18.55% -2.57% 4.34% Templeton Global Income Securities - Class 2(1)(10) 18.91% 3.33% 4.24% Templeton Growth Securities - Class 2(1)(10) -20.02% -0.47% 4.26% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.86% N/A -3.21% AIM V.I. Capital Appreciation -25.97% -4.30% 5.09% AIM V.I. Core Equity(7) -17.38% -3.01% 5.61% AIM V.I. Growth -32.45% -9.96% 1.65% AIM V.I. High Yield -7.83% N/A -8.24% AIM V.I. Premier Equity -31.75% -4.24% 5.60% Federated Prime Money Fund II -0.73% 1.91% 5.25% Fidelity VIP Contrafund - Service Class 2(2) -11.52% 1.26% 9.65% Fidelity VIP Equity-Income - Service Class 2(2) -18.91% -2.08% 7.22% Fidelity VIP Growth - Service Class 2(2) -31.79% -2.73% 5.90% Fidelity VIP High Income - Service Class 2(2) 1.13% -8.31% 1.02% Fidelity VIP Index 500 - Service Class 2(2) -24.10% -3.16% 6.52% Fidelity VIP Overseas - Service Class 2(2) -22.15% -6.62% 1.93% MFS Emerging Growth - Service Class(3) -35.00% -5.94% 2.09% MFS Investors Trust - Service Class(3)(9) -22.83% -5.32% 3.09% MFS New Discovery - Service Class(3) -33.27% N/A -0.18% MFS Research - Service Class(3) -26.33% -6.31% 1.43% MFS Utilities - Service Class(3) -24.54% -4.14% 5.91% Oppenheimer Aggressive Growth -29.34% -3.95% 4.44% Oppenheimer Capital Appreciation -28.42% 0.17% 7.87% Oppenheimer Global Securities -23.79% 3.22% 9.60% Oppenheimer Main Street(4) -20.53% -5.28% 6.42% Oppenheimer Multiple Strategies -12.30% 0.89% 5.82% Oppenheimer Strategic Bond 5.19% 1.92% 3.58% Putnam Diversified Income(5) 3.68% -0.30% 2.15% Putnam Growth and Income(5) -20.71% -2.95% 6.22% Putnam Growth Opportunities(5) -31.00% N/A -30.24% Putnam Health Sciences(5) -22.04% N/A -3.54% Putnam New Value(5) -17.40% 0.42% 2.72% Putnam Discovery Growth(5)(6) -31.09% N/A -38.05% STI Capital Appreciation(8) -23.55% -0.78% 7.23% STI Growth and Income -22.28% N/A -8.38% STI International Equity -20.32% -6.78% -3.25% STI Investment Grade Bond 5.14% 3.78% 3.95% STI Mid-Cap Equity -29.98% -4.76% 1.25% STI Small Cap Value Equity -3.28% 2.40% 1.81% STI Value Income Stock -18.75% -2.81% 4.08% Templeton Global Income Securities - Class 2(1)(10) 18.61% 3.07% 3.98% Templeton Growth Securities - Class 2(1)(10) -20.22% -0.72% 4.00% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.80% N/A -3.06% AIM V.I. Capital Appreciation -25.95% -4.11% 5.41% AIM V.I. Core Equity(7) -17.31% -2.81% 5.92% AIM V.I. Growth -32.46% -9.81% 1.93% AIM V.I. High Yield -7.71% N/A -8.21% AIM V.I. Premier Equity -31.76% -4.04% 5.92% Federated Prime Money Fund II -0.59% 2.09% 5.48% Fidelity VIP Contrafund - Service Class 2(2) -11.42% 1.49% 10.02% Fidelity VIP Equity-Income - Service Class 2(2) -18.86% -1.90% 7.56% Fidelity VIP Growth - Service Class 2(2) -31.80% -2.50% 6.23% Fidelity VIP High Income - Service Class 2(2) 1.28% -8.26% 1.26% Fidelity VIP Index 500 - Service Class 2(2) -24.07% -2.97% 6.85% Fidelity VIP Overseas - Service Class 2(2) -22.11% -6.47% 2.22% MFS Emerging Growth - Service Class(3) -35.03% -5.73% 2.38% MFS Investors Trust - Service Class(3)(9) -22.80% -5.16% 3.34% MFS New Discovery - Service Class(3) -33.28% N/A 0.04% MFS Research - Service Class(3) -26.31% -6.15% 1.69% MFS Utilities - Service Class(3) -24.51% -3.95% 6.24% Oppenheimer Aggressive Growth -29.33% -3.74% 4.76% Oppenheimer Capital Appreciation -28.41% 0.41% 8.21% Oppenheimer Global Securities -23.76% 3.48% 9.98% Oppenheimer Main Street(4) -20.48% -5.14% 6.74% Oppenheimer Multiple Strategies -12.21% 1.09% 6.11% Oppenheimer Strategic Bond 5.36% 2.09% 3.79% Putnam Diversified Income(5) 3.85% -0.17% 2.32% Putnam Growth and Income(5) -20.66% -2.78% 6.54% Putnam Growth Opportunities(5) -31.00% N/A -30.41% Putnam Health Sciences(5) -22.00% N/A -3.40% Putnam New Value(5) -17.33% 0.60% 2.94% Putnam Discovery Growth(5)(6) -31.09% N/A -38.35% STI Capital Appreciation(8) -23.52% -0.57% 7.52% STI Growth and Income -22.24% N/A -8.27% STI International Equity -20.27% -6.66% -3.12% STI Investment Grade Bond 5.32% 3.97% 4.13% STI Mid-Cap Equity -29.98% -4.61% 1.46% STI Small Cap Value Equity -3.14% 2.51% 1.84% STI Value Income Stock -18.69% -2.66% 4.32% Templeton Global Income Securities - Class 2(1)(10) 18.86% 3.24% 4.21% Templeton Growth Securities - Class 2(1)(10) -20.17% -0.53% 4.26% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -19.01% N/A -3.30% AIM V.I. Capital Appreciation -26.14% -4.35% 5.15% AIM V.I. Core Equity(7) -17.52% -3.06% 5.65% AIM V.I. Growth -32.63% -10.04% 1.67% AIM V.I. High Yield -7.95% N/A -8.45% AIM V.I. Premier Equity -31.93% -4.28% 5.66% Federated Prime Money Fund II -0.83% 1.84% 5.21% Fidelity VIP Contrafund - Service Class 2(2) -11.65% 1.24% 9.74% Fidelity VIP Equity-Income - Service Class 2(2) -19.06% -2.15% 7.29% Fidelity VIP Growth - Service Class 2(2) -31.97% -2.75% 5.96% Fidelity VIP High Income - Service Class 2(2) 1.03% -8.50% 1.00% Fidelity VIP Index 500 - Service Class 2(2) -24.26% -3.21% 6.58% Fidelity VIP Overseas - Service Class 2(2) -22.30% -6.71% 1.96% MFS Emerging Growth - Service Class(3) -35.19% -5.97% 2.12% MFS Investors Trust - Service Class(3)(9) -22.99% -5.40% 3.08% MFS New Discovery - Service Class(3) -33.45% N/A -0.22% MFS Research - Service Class(3) -26.49% -6.39% 1.43% MFS Utilities - Service Class(3) -24.70% -4.20% 5.98% Oppenheimer Aggressive Growth -29.51% -3.98% 4.49% Oppenheimer Capital Appreciation -28.59% 0.16% 7.94% Oppenheimer Global Securities -23.95% 3.22% 9.70% Oppenheimer Main Street(4) -20.68% -5.38% 6.47% Oppenheimer Multiple Strategies -12.43% 0.83% 5.84% Oppenheimer Strategic Bond 5.10% 1.83% 3.53% Putnam Diversified Income(5) 3.59% -0.42% 2.06% Putnam Growth and Income(5) -20.86% -3.03% 6.27% Putnam Growth Opportunities(5) -31.18% N/A -30.58% Putnam Health Sciences(5) -22.19% N/A -3.65% Putnam New Value(5) -17.54% 0.35% 2.68% Putnam Discovery Growth(5)(6) -31.26% N/A -38.51% STI Capital Appreciation(8) -23.71% -0.82% 7.25% STI Growth and Income -22.44% N/A -8.50% STI International Equity -20.47% -6.89% -3.36% STI Investment Grade Bond 5.06% 3.71% 3.86% STI Mid-Cap Equity -30.16% -4.85% 1.21% STI Small Cap Value Equity -3.39% 2.27% 1.60% STI Value Income Stock -18.90% -2.90% 4.06% Templeton Global Income Securities - Class 2(1)(10) 18.56% 2.98% 3.95% Templeton Growth Securities - Class 2(1)(10) -20.37% -0.78% 4.00% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -19.21% N/A -3.55% AIM V.I. Capital Appreciation -26.32% -4.60% 4.88% AIM V.I. Core Equity(7) -17.73% -3.30% 5.39% AIM V.I. Growth -32.80% -10.27% 1.41% AIM V.I. High Yield -8.18% N/A -8.68% AIM V.I. Premier Equity -32.10% -4.52% 5.39% Federated Prime Money Fund II -1.08% 1.58% 4.94% Fidelity VIP Contrafund - Service Class 2(2) -11.87% 0.98% 9.47% Fidelity VIP Equity-Income - Service Class 2(2) -19.26% -2.40% 7.02% Fidelity VIP Growth - Service Class 2(2) -32.14% -2.99% 5.70% Fidelity VIP High Income - Service Class 2(2) 0.78% -8.73% 0.75% Fidelity VIP Index 500 - Service Class 2(2) -24.45% -3.46% 6.31% Fidelity VIP Overseas - Service Class 2(2) -22.50% -6.94% 1.71% MFS Emerging Growth - Service Class(3) -35.35% -6.21% 1.86% MFS Investors Trust - Service Class(3)(9) -23.18% -5.64% 2.82% MFS New Discovery - Service Class(3) -33.62% N/A -0.47% MFS Research - Service Class(3) -26.68% -6.62% 1.17% MFS Utilities - Service Class(3) -24.89% -4.44% 5.71% Oppenheimer Aggressive Growth -29.69% -4.22% 4.23% Oppenheimer Capital Appreciation -28.77% -0.09% 7.66% Oppenheimer Global Securities -24.14% 2.96% 9.43% Oppenheimer Main Street(4) -20.88% -5.62% 6.20% Oppenheimer Multiple Strategies -12.65% 0.58% 5.57% Oppenheimer Strategic Bond 4.84% 1.58% 3.26% Putnam Diversified Income(5) 3.33% -0.67% 1.80% Putnam Growth and Income(5) -21.06% -3.27% 6.01% Putnam Growth Opportunities(5) -31.35% N/A -30.76% Putnam Health Sciences(5) -22.39% N/A -3.89% Putnam New Value(5) -17.75% 0.09% 2.43% Putnam Discovery Growth(5)(6) -31.44% N/A -38.67% STI Capital Appreciation(8) -23.90% -1.07% 6.98% STI Growth and Income -22.63% N/A -8.73% STI International Equity -20.67% -7.13% -3.61% STI Investment Grade Bond 4.79% 3.45% 3.60% STI Mid-Cap Equity -30.33% -5.09% 0.95% STI Small Cap Value Equity -3.63% 2.02% 1.36% STI Value Income Stock -19.10% -3.15% 3.80% Templeton Global Income Securities - Class 2(1)(10) 18.26% 2.72% 3.68% Templeton Growth Securities - Class 2(1)(10) -20.57% -1.03% 3.74%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (4) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (5) Each of the Portfoilios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (6) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (7) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (8) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (9) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. APPENDIX 2 PERFORMANCE INFORMATION FOR ALLSTATE(R)PROVIDER ULTRA CONTRACTS Allstate Provider Ultra Contracts were first offered to the public on May 1, 2001. Accordingly, performance shown for periods prior to that date reflects the performance of the Variable Sub-Accounts, adjusted to reflect the current charges under the Contracts that would have applied had they been in existence at the time. (Adjusted historical total returns are computed from the Portfolios' inception date as described below.) These Contract charges include a maximum withdrawal charge of 7% that declines to zero after seven years (not reflected in non-standardized total returns), an annual contract maintenance charge of $35 (not shown for adjusted historical returns method 1), and total Variable Account annual expenses of: 1.35% (without any optional benefit riders), or 1.60% with the Enhanced Death Benefit Rider or Income Benefit Rider, or 1.85% with the Enhanced Death Benefit Rider and Income Benefit Rider. In addition, where the Enhanced Earnings Death Benefit Rider is included, the performance shown reflects the deduction of the annual Rider fee equal to 0.35% of the Contract Value (assumes age 66-75). See the Expense Table in the Prospectus for more details. STANDARDIZED TOTAL RETURNS Set out below are the standardized total returns for each Variable Sub-Account since its inception through December 31, 2002 The inception dates of the Variable Sub-Accounts are as follows: Sub-Account Variable Sub-Account Inception AIM V.I. Aggressive Growth 05/01/01 AIM V.I. Balanced 11/09/98 AIM V.I. Capital Appreciation 01/26/98 AIM V.I. Core Equity 01/26/98 AIM V.I. Dent Demographic Trends 05/01/01 AIM V.I. Diversified Income 01/26/98 AIM V.I. Growth 01/26/98 AIM V.I. International Growth 01/26/98 AIM V.I. Premier Equity 01/26/98 Dreyfus Socially Responsible Growth 06/17/97 Dreyfus Stock Index 01/26/98 Dreyfus VIF - Growth & Income 06/17/97 Dreyfus VIF - Money Market 06/17/97 Fidelity VIP Asset Manager: Growth - Service Class 2 05/01/01 Fidelity VIP Contrafund - Service Class 2 05/01/01 Fidelity VIP Equity-Income - Service Class 2 05/01/01 Fidelity VIP Growth - Service Class 2 05/01/01 Fidelity VIP High Income - Service Class 2 05/01/01 LSA Diversified Mid-Cap 05/01/02 Putnam Health Sciences 05/01/01 Van Kampen UIF U.S. Real Estate 11/09/98 Goldman Sachs VIT CORE Small Cap Equity 11/09/98 Goldman Sachs VIT CORE U.S. Equity 11/09/98 LSA Equity Growth 05/01/01 LSA Capital Growth * 05/01/01 MFS Emerging Growth - Service Class 05/01/01 MFS Investors Trust - Service Class 05/01/01 MFS New Discovery - Service Class 05/01/01 MFS Research - Service Class 05/01/01 MFS Utilities - Service Class 05/01/01 Oppenheimer Aggressive Growth 11/01/99 Oppenheimer Capital Appreciation 11/01/99 Oppenheimer Global Securities 11/01/99 Oppenheimer Main Street 11/01/99 Oppenheimer Strategic Bond 11/01/99 Putnam Growth and Income 05/01/01 Putnam Growth Opportunities 05/01/01 Putnam International Equity 09/21/01 Putnam New Value 05/01/01 Putnam Research 09/21/01 Van Kampen UIF Core Plus Fixed Income 11/09/98 Van Kampen UIF Global Value Equity 11/09/98 Van Kampen UIF U.S. Mid Cap Core 11/09/98 Van Kampen UIF Value 11/09/98 Franklin Small Cap - Class 2 11/01/99 Franklin Technology Securities - Class 2 05/01/01 Mutual Shares Securities - Class 2 11/01/99 Templeton Developing Markets Securities - Class 2 11/01/99 Templeton Foreign Securities - Class 2 11/01/99 SHELF (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -28.88% N/A -25.99% AIM V.I. Balanced -23.39% N/A -5.01% AIM V.I. Capital Appreciation -30.55% N/A -3.70% AIM V.I. Core Equity (6) -21.89% N/A -2.84% AIM V.I. Dent Demographic Trends -38.29% N/A -32.87% AIM V.I. Diversified Income -4.25% N/A -0.87% AIM V.I. Growth -37.08% N/A -10.39% AIM V.I. International Growth -21.98% N/A -5.60% AIM V.I. Premier Equity -36.37% N/A -4.26% Dreyfus Socially Responsible Growth -35.08% -6.01% -4.00% Dreyfus Stock Index -28.58% N/A -3.03% Dreyfus VIF - Growth & Income -31.51% -4.49% -3.00% Dreyfus VIF - Money Market -5.07% 2.08% 2.25% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.13% N/A -16.76% Fidelity VIP Contrafund - Service Class 2 -15.99% N/A -13.07% Fidelity VIP Equity-Income - Service Class 2 -23.44% N/A -18.32% Fidelity VIP Growth - Service Class 2 -36.41% N/A -30.52% Fidelity VIP High Income - Service Class 2 -3.26% N/A -8.24% LSA Diversified Mid-Cap* N/A N/A -28.17% Putnam Health Sciences -26.59% N/A -18.77% Van Kampen UIF U.S. Real Estate -7.30% N/A 6.36% Goldman Sachs VIT CORE Small Cap Equity -21.29% N/A 0.52% Goldman Sachs VIT CORE U.S. Equity -28.12% N/A -6.64% LSA Equity Growth (2) -35.94% N/A -28.00% LSA Capital Growth (2) -30.56% N/A -25.81% MFS Emerging Growth - Service Class -39.65% N/A -35.40% MFS Investors Trust - Service Class(7) -27.39% N/A -23.79% MFS New Discovery - Service Class -37.89% N/A -26.75% MFS Research - Service Class -30.91% N/A -28.16% MFS Utilities - Service Class -29.11% N/A -32.30% Oppenheimer Aggressive Growth -33.94% N/A -17.87% Oppenheimer Capital Appreciation -33.02% N/A -10.76% Oppenheimer Global Securities -28.36% N/A -4.61% Oppenheimer Main Street(3) -25.07% N/A -12.98% Oppenheimer Strategic Bond 0.82% N/A 2.53% Putnam Growth and Income -25.25% N/A -20.33% Putnam Growth Opportunities -35.62% N/A -33.31% Putnam International Equity(4) -23.95% N/A -7.25% Putnam New Value -21.91% N/A -16.19% Putnam Research -28.43% N/A -10.09% Van Kampen UIF Core Plus Fixed Income 0.71% N/A 4.69% Van Kampen UIF Global Value Equity -23.16% N/A -4.10% Van Kampen UIF U.S. Mid Cap Core(5) -34.17% N/A -1.96% Van Kampen UIF Value -28.38% N/A -3.10% Franklin Small Cap - Class 2(1) -34.82% N/A -10.43% Franklin Technology Securities - Class 2(1) -49.83% N/A -43.36% Mutual Shares Securities - Class 2 -18.17% N/A -0.43% Templeton Developing Markets Securities - Class 2 -6.66% N/A -11.33% Templeton Foreign Securities - Class 2 -24.83% N/A -11.58% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -29.07% N/A -26.19% AIM V.I. Balanced -23.59% N/A -5.26% AIM V.I. Capital Appreciation -30.74% N/A -3.96% AIM V.I. Core Equity (6) -22.10% N/A -3.10% AIM V.I. Dent Demographic Trends -38.46% N/A -33.06% AIM V.I. Diversified Income -4.50% N/A -1.13% AIM V.I. Growth -37.25% N/A -10.63% AIM V.I. International Growth -22.19% N/A -5.85% AIM V.I. Premier Equity -36.55% N/A -4.51% Dreyfus Socially Responsible Growth -35.25% -6.26% -4.25% Dreyfus Stock Index -28.77% N/A -3.28% Dreyfus VIF - Growth & Income -31.69% -4.74% -3.25% Dreyfus VIF - Money Market -5.32% 1.82% 1.98% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.34% N/A -16.99% Fidelity VIP Contrafund - Service Class 2 -16.22% N/A -13.30% Fidelity VIP Equity-Income - Service Class 2 -23.65% N/A -18.53% Fidelity VIP Growth - Service Class 2 -36.58% N/A -30.71% Fidelity VIP High Income - Service Class 2 -3.52% N/A -8.48% LSA Diversified Mid-Cap* N/A N/A -28.30% Putnam Health Sciences -26.79% N/A -18.98% Van Kampen UIF U.S. Real Estate -7.54% N/A 6.09% Goldman Sachs VIT CORE Small Cap Equity -21.50% N/A 0.26% Goldman Sachs VIT CORE U.S. Equity -28.31% N/A -6.88% LSA Equity Growth (2) -36.11% N/A -28.20% LSA Capital Growth (2) -30.75% N/A -26.01% MFS Emerging Growth - Service Class -39.81% N/A -35.58% MFS Investors Trust - Service Class(7) -27.58% N/A -24.00% MFS New Discovery - Service Class -38.06% N/A -26.95% MFS Research - Service Class -31.09% N/A -28.36% MFS Utilities - Service Class -29.30% N/A -32.48% Oppenheimer Aggressive Growth -34.12% N/A -18.09% Oppenheimer Capital Appreciation -33.20% N/A -10.99% Oppenheimer Global Securities -28.55% N/A -4.86% Oppenheimer Main Street(3) -25.27% N/A -13.21% Oppenheimer Strategic Bond 0.56% N/A 2.27% Putnam Growth and Income -25.45% N/A -20.55% Putnam Growth Opportunities -35.79% N/A -33.49% Putnam International Equity(4) -24.16% N/A -7.49% Putnam New Value -22.12% N/A -16.41% Putnam Research -28.62% N/A -10.33% Van Kampen UIF Core Plus Fixed Income 0.45% N/A 4.42% Van Kampen UIF Global Value Equity -23.36% N/A -4.36% Van Kampen UIF U.S. Mid Cap Core(5) -34.34% N/A -2.22% Van Kampen UIF Value -28.57% N/A -3.36% Franklin Small Cap - Class 2(1) -35.00% N/A -10.67% Franklin Technology Securities - Class 2(1) -49.97% N/A -43.52% Mutual Shares Securities - Class 2 -18.39% N/A -0.69% Templeton Developing Markets Securities - Class 2 -6.91% N/A -11.57% Templeton Foreign Securities - Class 2 -25.03% N/A -11.81% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider and Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -29.26% N/A -26.39% AIM V.I. Balanced -23.80% N/A -5.51% AIM V.I. Capital Appreciation -30.92% N/A -4.21% AIM V.I. Core Equity (6) -22.31% N/A -3.35% AIM V.I. Dent Demographic Trends -38.62% N/A -33.24% AIM V.I. Diversified Income -4.75% N/A -1.38% AIM V.I. Growth -37.42% N/A -10.87% AIM V.I. International Growth -22.40% N/A -6.10% AIM V.I. Premier Equity -36.72% N/A -4.77% Dreyfus Socially Responsible Growth -35.43% -6.50% -4.50% Dreyfus Stock Index -28.97% N/A -3.54% Dreyfus VIF - Growth & Income -31.88% -4.99% -3.50% Dreyfus VIF - Money Market -5.57% 1.56% 1.72% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.55% N/A -17.21% Fidelity VIP Contrafund - Service Class 2 -16.44% N/A -13.53% Fidelity VIP Equity-Income - Service Class 2 -23.85% N/A -18.75% Fidelity VIP Growth - Service Class 2 -36.75% N/A -30.90% Fidelity VIP High Income - Service Class 2 -3.77% N/A -8.72% LSA Diversified Mid-Cap* N/A N/A -28.43% Putnam Health Sciences -26.98% N/A -19.20% Van Kampen UIF U.S. Real Estate -7.78% N/A 5.82% Goldman Sachs VIT CORE Small Cap Equity -21.71% N/A 0.00% Goldman Sachs VIT CORE U.S. Equity -28.51% N/A -7.13% LSA Equity Growth (2) -36.28% N/A -28.40% LSA Capital Growth (2) -30.94% N/A -26.21% MFS Emerging Growth - Service Class -39.97% N/A -35.76% MFS Investors Trust - Service Class(7) -27.78% N/A -24.20% MFS New Discovery - Service Class -38.23% N/A -27.15% MFS Research - Service Class -31.28% N/A -28.55% MFS Utilities - Service Class -29.49% N/A -32.67% Oppenheimer Aggressive Growth -34.29% N/A -18.31% Oppenheimer Capital Appreciation -33.38% N/A -11.23% Oppenheimer Global Securities -28.74% N/A -5.11% Oppenheimer Main Street(3) -25.47% N/A -13.44% Oppenheimer Strategic Bond 0.30% N/A 2.00% Putnam Growth and Income -25.65% N/A -20.76% Putnam Growth Opportunities -35.96% N/A -33.67% Putnam International Equity(4) -24.36% N/A -7.74% Putnam New Value -22.33% N/A -16.63% Putnam Research -28.81% N/A -10.57% Van Kampen UIF Core Plus Fixed Income 0.18% N/A 4.15% Van Kampen UIF Global Value Equity -23.57% N/A -4.61% Van Kampen UIF U.S. Mid Cap Core(5) -34.52% N/A -2.48% Van Kampen UIF Value -28.76% N/A -3.61% Franklin Small Cap - Class 2(1) -35.17% N/A -10.91% Franklin Technology Securities - Class 2(1) -50.11% N/A -43.68% Mutual Shares Securities - Class 2 -18.61% N/A -0.95% Templeton Developing Markets Securities - Class 2 -7.16% N/A -11.80% Templeton Foreign Securities - Class 2 -25.23% N/A -12.05% * Performance figures are not annualized. (With Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -29.23% N/A -26.45% AIM V.I. Balanced -23.74% N/A -5.41% AIM V.I. Capital Appreciation -30.90% N/A -4.00% AIM V.I. Core Equity (6) -22.24% N/A -3.14% AIM V.I. Dent Demographic Trends -38.64% N/A -33.33% AIM V.I. Diversified Income -4.60% N/A -1.24% AIM V.I. Growth -37.43% N/A -10.71% AIM V.I. International Growth -22.33% N/A -5.93% AIM V.I. Premier Equity -36.72% N/A -4.55% Dreyfus Socially Responsible Growth -35.43% -6.31% -4.31% Dreyfus Stock Index -28.93% N/A -3.33% Dreyfus VIF - Growth & Income -31.86% -4.81% -3.34% Dreyfus VIF - Money Market -5.42% 1.74% 1.88% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.48% N/A -17.20% Fidelity VIP Contrafund - Service Class 2 -16.34% N/A -13.50% Fidelity VIP Equity-Income - Service Class 2 -23.79% N/A -18.75% Fidelity VIP Growth - Service Class 2 -36.76% N/A -30.97% Fidelity VIP High Income - Service Class 2 -3.61% N/A -8.69% LSA Diversified Mid-Cap* N/A N/A -28.32% Putnam Health Sciences -26.94% N/A -19.20% Van Kampen UIF U.S. Real Estate -7.65% N/A 5.97% Goldman Sachs VIT CORE Small Cap Equity -21.64% N/A 0.14% Goldman Sachs VIT CORE U.S. Equity -28.47% N/A -7.03% LSA Equity Growth (2) -36.29% N/A -28.45% LSA Capital Growth (2) -30.91% N/A -26.26% MFS Emerging Growth - Service Class -40.00% N/A -35.87% MFS Investors Trust - Service Class(7) -27.74% N/A -24.24% MFS New Discovery - Service Class -38.24% N/A -27.18% MFS Research - Service Class -31.26% N/A -28.62% MFS Utilities - Service Class -29.46% N/A -32.78% Oppenheimer Aggressive Growth -34.29% N/A -18.31% Oppenheimer Capital Appreciation -33.37% N/A -11.18% Oppenheimer Global Securities -28.71% N/A -4.99% Oppenheimer Main Street(3) -25.42% N/A -13.45% Oppenheimer Strategic Bond 0.47% N/A 2.08% Putnam Growth and Income -25.60% N/A -20.77% Putnam Growth Opportunities -35.97% N/A -33.77% Putnam International Equity(4) -24.30% N/A -7.76% Putnam New Value -22.26% N/A -16.62% Putnam Research -28.78% N/A -10.59% Van Kampen UIF Core Plus Fixed Income 0.36% N/A 4.27% Van Kampen UIF Global Value Equity -23.51% N/A -4.52% Van Kampen UIF U.S. Mid Cap Core(5) -34.52% N/A -2.33% Van Kampen UIF Value -28.73% N/A -3.52% Franklin Small Cap - Class 2(1) -35.17% N/A -10.82% Franklin Technology Securities - Class 2(1) -50.18% N/A -43.83% Mutual Shares Securities - Class 2 -18.52% N/A -0.86% Templeton Developing Markets Securities - Class 2 -7.01% N/A -11.83% Templeton Foreign Securities - Class 2 -25.18% N/A -12.03% * Performance figures are not annualized. (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -29.42% N/A -26.65% AIM V.I. Balanced -23.94% N/A -5.66% AIM V.I. Capital Appreciation -31.09% N/A -4.25% AIM V.I. Core Equity (6) -22.45% N/A -3.40% AIM V.I. Dent Demographic Trends -38.81% N/A -33.51% AIM V.I. Diversified Income -4.85% N/A -1.50% AIM V.I. Growth -37.60% N/A -10.95% AIM V.I. International Growth -22.54% N/A -6.18% AIM V.I. Premier Equity -36.90% N/A -4.81% Dreyfus Socially Responsible Growth -35.60% -6.56% -4.57% Dreyfus Stock Index -29.12% N/A -3.59% Dreyfus VIF - Growth & Income -32.04% -5.06% -3.59% Dreyfus VIF - Money Market -5.67% 1.48% 1.61% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.69% N/A -17.42% Fidelity VIP Contrafund - Service Class 2 -16.57% N/A -13.73% Fidelity VIP Equity-Income - Service Class 2 -24.00% N/A -18.97% Fidelity VIP Growth - Service Class 2 -36.93% N/A -31.16% Fidelity VIP High Income - Service Class 2 -3.87% N/A -8.93% LSA Diversified Mid-Cap* N/A N/A -28.45% Putnam Health Sciences -27.14% N/A -19.42% Van Kampen UIF U.S. Real Estate -7.89% N/A 5.69% Goldman Sachs VIT CORE Small Cap Equity -21.85% N/A -0.13% Goldman Sachs VIT CORE U.S. Equity -28.66% N/A -7.28% LSA Equity Growth (2) -36.46% N/A -28.64% LSA Capital Growth (2) -31.10% N/A -26.46% MFS Emerging Growth - Service Class -40.16% N/A -36.05% MFS Investors Trust - Service Class(7) -27.93% N/A -24.44% MFS New Discovery - Service Class -38.41% N/A -27.38% MFS Research - Service Class -31.44% N/A -28.82% MFS Utilities - Service Class -29.65% N/A -32.96% Oppenheimer Aggressive Growth -34.47% N/A -18.54% Oppenheimer Capital Appreciation -33.55% N/A -11.42% Oppenheimer Global Securities -28.90% N/A -5.25% Oppenheimer Main Street(3) -25.62% N/A -13.68% Oppenheimer Strategic Bond 0.21% N/A 1.82% Putnam Growth and Income -25.80% N/A -20.99% Putnam Growth Opportunities -36.14% N/A -33.96% Putnam International Equity(4) -24.51% N/A -8.00% Putnam New Value -22.47% N/A -16.84% Putnam Research -28.97% N/A -10.83% Van Kampen UIF Core Plus Fixed Income 0.10% N/A 4.00% Van Kampen UIF Global Value Equity -23.71% N/A -4.77% Van Kampen UIF U.S. Mid Cap Core(5) -34.69% N/A -2.58% Van Kampen UIF Value -28.92% N/A -3.77% Franklin Small Cap - Class 2(1) -35.35% N/A -11.06% Franklin Technology Securities - Class 2(1) -50.32% N/A -44.00% Mutual Shares Securities - Class 2 -18.74% N/A -1.12% Templeton Developing Markets Securities - Class 2 -7.26% N/A -12.07% Templeton Foreign Securities - Class 2 -25.38% N/A -12.27% * Performance figures are not annualized. (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -29.61% N/A -26.85% AIM V.I. Balanced -24.15% N/A -5.91% AIM V.I. Capital Appreciation -31.27% N/A -4.51% AIM V.I. Core Equity (6) -22.66% N/A -3.65% AIM V.I. Dent Demographic Trends -38.97% N/A -33.70% AIM V.I. Diversified Income -5.10% N/A -1.76% AIM V.I. Growth -37.77% N/A -11.19% AIM V.I. International Growth -22.75% N/A -6.43% AIM V.I. Premier Equity -37.07% N/A -5.06% Dreyfus Socially Responsible Growth -35.78% -6.81% -4.82% Dreyfus Stock Index -29.32% N/A -3.84% Dreyfus VIF - Growth & Income -32.23% -5.31% -3.85% Dreyfus VIF - Money Market -5.92% 1.22% 1.35% Fidelity VIP Asset Manager: Growth - Service Class 2 -22.90% N/A -17.64% Fidelity VIP Contrafund - Service Class 2 -16.79% N/A -13.97% Fidelity VIP Equity-Income - Service Class 2 -24.20% N/A -19.19% Fidelity VIP Growth - Service Class 2 -37.10% N/A -31.36% Fidelity VIP High Income - Service Class 2 -4.12% N/A -9.17% LSA Diversified Mid-Cap* N/A N/A -28.58% Putnam Health Sciences -27.33% N/A -19.63% Van Kampen UIF U.S. Real Estate -8.13% N/A 5.41% Goldman Sachs VIT CORE Small Cap Equity -22.06% N/A -0.39% Goldman Sachs VIT CORE U.S. Equity -28.86% N/A -7.53% LSA Equity Growth (2) -36.63% N/A -28.84% LSA Capital Growth (2) -31.29% N/A -26.66% MFS Emerging Growth - Service Class -40.32% N/A -36.23% MFS Investors Trust - Service Class(7) -28.13% N/A -24.65% MFS New Discovery - Service Class -38.58% N/A -27.58% MFS Research - Service Class -31.63% N/A -29.01% MFS Utilities - Service Class -29.84% N/A -33.15% Oppenheimer Aggressive Growth -34.64% N/A -18.76% Oppenheimer Capital Appreciation -33.73% N/A -11.65% Oppenheimer Global Securities -29.09% N/A -5.50% Oppenheimer Main Street(3) -25.82% N/A -13.92% Oppenheimer Strategic Bond -0.05% N/A 1.55% Putnam Growth and Income -26.00% N/A -21.20% Putnam Growth Opportunities -36.31% N/A -34.14% Putnam International Equity(4) -24.71% N/A -8.24% Putnam New Value -22.68% N/A -17.07% Putnam Research -29.16% N/A -11.07% Van Kampen UIF Core Plus Fixed Income -0.17% N/A 3.72% Van Kampen UIF Global Value Equity -23.92% N/A -5.02% Van Kampen UIF U.S. Mid Cap Core(5) -34.87% N/A -2.84% Van Kampen UIF Value -29.11% N/A -4.03% Franklin Small Cap - Class 2(1) -35.52% N/A -11.30% Franklin Technology Securities - Class 2(1) -50.46% N/A -44.16% Mutual Shares Securities - Class 2 -18.96% N/A -1.38% Templeton Developing Markets Securities - Class 2 -7.51% N/A -12.31% Templeton Foreign Securities - Class 2 -25.58% N/A -12.50%
* Performance figures are not annualized. (1) Performance shown prior to 5/1/00 is based on the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Variable Sub-Accounts. On 5/1/00, the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Portfolios were merged into the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2), respectively and were closed. For administrative convenience, on May 1, 2000, we merged the corresponding Sub-Accounts into new Sub-Accounts named Franklin Small Cap (Class 2) and Templeton Growth Securities (Class 2), respectively. (2) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (3) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (4) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (5) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (6) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (7) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 1 Set out below are the adjusted historical total returns method 1 for each Variable Sub-Account since it's corresponding Portfolio's inception through December 31, 2002. The adjusted historical total returns methods 1 shown below do not reflect the withdrawal charge or the $35 annual contract maintenance charge. The inception dates of the Portfolios are as follows: Inception Date of Corresponding Variable Sub-Account Portfolio AIM V.I. Aggressive Growth 05/01/98 AIM V.I. Balanced 05/01/98 AIM V.I. Capital Appreciation 05/05/93 AIM V.I. Core Equity 05/02/94 AIM V.I. Dent Demographic Trends 12/29/99 AIM V.I. Diversified Income 05/05/93 AIM V.I. Growth 05/05/93 AIM V.I. International Growth 05/05/93 AIM V.I. Premier Equity 05/05/93 Dreyfus Socially Responsible Growth 10/15/93 Dreyfus Stock Index 09/29/89 Dreyfus VIF - Growth & Income 04/30/94 Dreyfus VIF - Money Market 08/31/90 Fidelity VIP Asset Manager: Growth - Service Class 2 01/04/95 Fidelity VIP Contrafund - Service Class 2 01/04/95 Fidelity VIP Equity-Income - Service Class 2 10/10/86 Fidelity VIP Growth - Service Class 2 10/10/86 Fidelity VIP High Income - Service Class 2 09/20/85 LSA Diversified Mid-Cap 08/14/01 Putnam Health Sciences 04/30/98 Van Kampen UIF U.S. Real Estate 03/03/97 Goldman Sachs VIT CORE Small Cap Equity 02/13/98 Goldman Sachs VIT CORE U.S. Equity 02/13/98 LSA Equity Growth 10/01/99 LSA Capital Growth 10/01/99 MFS Emerging Growth - Service Class 07/24/95 MFS Investors Trust - Service Class 10/09/95 MFS New Discovery - Service Class 05/01/98 MFS Research - Service Class 07/26/95 MFS Utilities - Service Class 01/03/95 Oppenheimer Aggressive Growth 08/15/86 Oppenheimer Capital Appreciation 04/03/85 Oppenheimer Global Securities 11/12/90 Oppenheimer Main Street 07/05/95 Oppenheimer Strategic Bond 05/03/93 Putnam Growth and Income 02/01/88 Putnam Growth Opportunities 01/31/00 Putnam International Equity 01/02/97 Putnam New Value 01/02/97 Putnam Research 09/29/98 Van Kampen UIF Core Plus Fixed Income 01/02/97 Van Kampen UIF Global Value Equity 01/02/97 Van Kampen UIF U.S. Mid Cap Core 01/02/97 Van Kampen UIF Value 01/02/97 Franklin Small Cap - Class 2 10/31/95 Franklin Technology Securities - Class 2 05/31/00 Mutual Shares Securities - Class 2 11/08/96 Templeton Developing Markets Securities - Class 2 03/04/96 Templeton Foreign Securities - Class 2 05/01/92 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -23.70% N/A -5.05% AIM V.I. Balanced -18.21% N/A -2.46% AIM V.I. Capital Appreciation -25.37% -3.57% 5.88% AIM V.I. Core Equity (9) -16.72% -2.26% 6.40% AIM V.I. Dent Demographic Trends -33.11% N/A -28.54% AIM V.I. Diversified Income 0.93% 0.27% 3.35% AIM V.I. Growth -31.90% -9.26% 2.41% AIM V.I. International Growth -16.81% -4.50% 2.86% AIM V.I. Premier Equity -31.20% -3.50% 6.39% Dreyfus Socially Responsible Growth -29.90% -5.09% 5.12% Dreyfus Stock Index -23.41% -2.26% 7.45% Dreyfus VIF - Growth & Income -26.33% -3.61% 6.95% Dreyfus VIF - Money Market 0.10% 2.77% 3.02% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -16.96% -3.16% 5.19% Fidelity VIP Contrafund - Service Class 2(2) -10.82% 2.03% 10.46% Fidelity VIP Equity-Income - Service Class 2(2) -18.26% -1.32% 8.02% Fidelity VIP Growth - Service Class 2(2) -31.23% -1.99% 6.69% Fidelity VIP High Income - Service Class 2(2) 1.91% -7.57% 1.79% LSA Diversified Mid-Cap -20.33% N/A -15.21% Putnam Health Sciences(6) -21.41% N/A -2.79% Van Kampen UIF U.S. Real Estate -2.12% 2.95% 5.27% Goldman Sachs VIT CORE Small Cap Equity -16.11% N/A -2.16% Goldman Sachs VIT CORE U.S. Equity -22.94% N/A -3.86% LSA Equity Growth (3) -30.76% N/A -14.33% LSA Capital Growth (3) -25.39% N/A -10.92% MFS Emerging Growth - Service Class(4) -34.47% -5.22% 2.86% MFS Investors Trust - Service Class(4)(10) -22.21% -4.59% 3.87% MFS New Discovery - Service Class(4) -32.72% N/A 0.59% MFS Research - Service Class(4) -25.73% -5.58% 2.20% MFS Utilities - Service Class(4) -23.93% -3.40% 6.69% Oppenheimer Aggressive Growth -28.76% -3.21% 5.22% Oppenheimer Capital Appreciation -27.84% 0.93% 8.68% Oppenheimer Global Securities -23.18% 4.00% 10.41% Oppenheimer Main Street(5) -19.89% -4.54% 7.21% Oppenheimer Strategic Bond 6.00% 2.72% 4.38% Putnam Growth and Income (6) -20.07% -2.20% 7.02% Putnam Growth Opportunities(6) -30.44% N/A -29.64% Putnam International Equity(6)(7) -18.77% 0.93% 3.06% Putnam New Value (6) -16.74% 1.19% 3.50% Putnam Research (6) -23.25% N/A -2.72% Van Kampen UIF Core Plus Fixed Income 5.89% 5.64% 6.10% Van Kampen UIF Global Value Equity -17.98% -1.01% 1.99% Van Kampen UIF U.S. Mid Cap Core(8) -28.99% 0.08% 5.71% Van Kampen UIF Value -23.20% -2.16% 1.14% Franklin Small Cap - Class 2(1)(11) -29.64% -1.36% 4.79% Franklin Technology Securities - Class 2(1) -44.66% N/A -36.16% Mutual Shares Securities - Class 2(11) -12.99% 2.54% 5.08% Templeton Developing Markets Securities - Class 2(1)(12) -1.49% -6.74% -10.82% Templeton Foreign Securities - Class 2(1)(12) -19.66% -3.45% 6.21% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -23.89% N/A -5.29% AIM V.I. Balanced -18.42% N/A -2.70% AIM V.I. Capital Appreciation -25.56% -3.81% 5.61% AIM V.I. Core Equity(9) -16.92% -2.51% 6.14% AIM V.I. Dent Demographic Trends -33.28% N/A -28.72% AIM V.I. Diversified Income 0.68% 0.02% 3.09% AIM V.I. Growth -32.07% -9.48% 2.15% AIM V.I. International Growth -17.01% -4.74% 2.60% AIM V.I. Premier Equity -31.37% -3.75% 6.12% Dreyfus Socially Responsible Growth -30.08% -5.33% 4.86% Dreyfus Stock Index -23.60% -2.51% 7.18% Dreyfus VIF - Growth & Income -26.52% -3.86% 6.68% Dreyfus VIF - Money Market -0.15% 2.52% 2.76% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.16% -3.40% 4.93% Fidelity VIP Contrafund - Service Class 2(2) -11.04% 1.78% 10.19% Fidelity VIP Equity-Income - Service Class 2(2) -18.47% -1.56% 7.75% Fidelity VIP Growth - Service Class 2(2) -31.40% -2.23% 6.42% Fidelity VIP High Income - Service Class 2(2) 1.66% -7.80% 1.53% LSA Diversified Mid-Cap -20.53% N/A -15.42% Putnam Health Sciences(6) -21.61% N/A -3.03% Van Kampen UIF U.S. Real Estate -2.36% 2.69% 5.01% Goldman Sachs VIT CORE Small Cap Equity -16.32% N/A -2.41% Goldman Sachs VIT CORE U.S. Equity -23.14% N/A -4.10% LSA Equity Growth (3) -30.93% N/A -14.55% LSA Capital Growth (3) -25.57% N/A -11.14% MFS Emerging Growth - Service Class(4) -34.63% -5.46% 2.60% MFS Investors Trust - Service Class(4)(10) -22.41% -4.82% 3.61% MFS New Discovery - Service Class(4) -32.89% N/A 0.34% MFS Research - Service Class(4) -25.92% -5.82% 1.95% MFS Utilities - Service Class(4) -24.12% -3.64% 6.43% Oppenheimer Aggressive Growth -28.94% -3.45% 4.96% Oppenheimer Capital Appreciation -28.02% 0.68% 8.41% Oppenheimer Global Securities -23.37% 3.74% 10.14% Oppenheimer Main Street(5) -20.09% -4.78% 6.94% Oppenheimer Strategic Bond 5.74% 2.46% 4.12% Putnam Growth and Income (6) -20.27% -2.44% 6.75% Putnam Growth Opportunities(6) -30.61% N/A -29.81% Putnam International Equity(6)(7) -18.98% 0.68% 2.81% Putnam New Value (6) -16.94% 0.94% 3.24% Putnam Research (6) -23.44% N/A -2.96% Van Kampen UIF Core Plus Fixed Income 5.62% 5.38% 5.84% Van Kampen UIF Global Value Equity -18.19% -1.25% 1.74% Van Kampen UIF U.S. Mid Cap Core(8) -29.17% -0.17% 5.45% Van Kampen UIF Value -23.39% -2.40% 0.88% Franklin Small Cap - Class 2(1)(11) -29.82% -1.61% 4.52% Franklin Technology Securities - Class 2(1) -44.80% N/A -36.32% Mutual Shares Securities - Class 2(11) -13.21% 2.28% 4.82% Templeton Developing Markets Securities - Class 2(1)(12) -1.73% -6.97% -11.04% Templeton Foreign Securities - Class 2(1)(12) -19.86% -3.69% 5.95% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.08% N/A -5.53% AIM V.I. Balanced -18.62% N/A -2.94% AIM V.I. Capital Appreciation -25.74% -4.05% 5.35% AIM V.I. Core Equity (9) -17.13% -2.75% 5.87% AIM V.I. Dent Demographic Trends -33.45% N/A -28.90% AIM V.I. Diversified Income 0.42% -0.23% 2.83% AIM V.I. Growth -32.24% -9.71% 1.90% AIM V.I. International Growth -17.22% -4.98% 2.35% AIM V.I. Premier Equity -31.54% -3.99% 5.86% Dreyfus Socially Responsible Growth -30.25% -5.57% 4.60% Dreyfus Stock Index -23.79% -2.75% 6.91% Dreyfus VIF - Growth & Income -26.70% -4.10% 6.42% Dreyfus VIF - Money Market -0.40% 2.26% 2.51% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.37% -3.64% 4.67% Fidelity VIP Contrafund - Service Class 2(2) -11.26% 1.52% 9.91% Fidelity VIP Equity-Income - Service Class 2(2) -18.67% -1.81% 7.48% Fidelity VIP Growth - Service Class 2(2) -31.58% -2.47% 6.15% Fidelity VIP High Income - Service Class 2(2) 1.41% -8.03% 1.28% LSA Diversified Mid-Cap -20.73% N/A -15.63% Putnam Health Sciences(6) -21.80% N/A -3.27% Van Kampen UIF U.S. Real Estate -2.61% 2.44% 4.75% Goldman Sachs VIT CORE Small Cap Equity -16.53% N/A -2.65% Goldman Sachs VIT CORE U.S. Equity -23.33% N/A -4.33% LSA Equity Growth (3) -31.10% N/A -14.76% LSA Capital Growth (3) -25.76% N/A -11.36% MFS Emerging Growth - Service Class(4) -34.80% -5.69% 2.35% MFS Investors Trust - Service Class(4)(10) -22.60% -5.06% 3.35% MFS New Discovery - Service Class(4) -33.05% N/A 0.09% MFS Research - Service Class(4) -26.10% -6.05% 1.69% MFS Utilities - Service Class(4) -24.31% -3.88% 6.16% Oppenheimer Aggressive Growth -29.12% -3.69% 4.69% Oppenheimer Capital Appreciation -28.20% 0.43% 8.13% Oppenheimer Global Securities -23.56% 3.48% 9.86% Oppenheimer Main Street(5) -20.29% -5.02% 6.68% Oppenheimer Strategic Bond 5.47% 2.20% 3.86% Putnam Growth and Income (6) -20.47% -2.68% 6.48% Putnam Growth Opportunities(6) -30.78% N/A -29.99% Putnam International Equity(6)(7) -19.18% 0.43% 2.55% Putnam New Value (6) -17.15% 0.69% 2.99% Putnam Research (6) -23.63% N/A -3.20% Van Kampen UIF Core Plus Fixed Income 5.36% 5.11% 5.57% Van Kampen UIF Global Value Equity -18.39% -1.50% 1.48% Van Kampen UIF U.S. Mid Cap Core(8) -29.34% -0.42% 5.18% Van Kampen UIF Value -23.58% -2.65% 0.63% Franklin Small Cap - Class 2(1)(11) -29.99% -1.86% 4.26% Franklin Technology Securities - Class 2(1) -44.93% N/A -36.48% Mutual Shares Securities - Class 2(11) -13.43% 2.03% 4.56% Templeton Developing Markets Securities - Class 2(1)(12) -1.98% -7.20% -11.26% Templeton Foreign Securities - Class 2(1)(12) -20.06% -3.93% 5.68% (With Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.05% N/A -5.39% AIM V.I. Balanced -18.56% N/A -2.79% AIM V.I. Capital Appreciation(9) -25.72% -3.85% 5.67% AIM V.I. Core Equity -17.07% -2.55% 6.18% AIM V.I. Dent Demographic Trends -33.46% N/A -29.11% AIM V.I. Diversified Income 0.58% -0.08% 3.04% AIM V.I. Growth -32.25% -9.56% 2.19% AIM V.I. International Growth -17.16% -4.81% 2.62% AIM V.I. Premier Equity -31.55% -3.78% 6.18% Dreyfus Socially Responsible Growth -30.25% -5.38% 4.89% Dreyfus Stock Index -23.76% -2.55% 7.24% Dreyfus VIF - Growth & Income -26.68% -3.93% 6.74% Dreyfus VIF - Money Market -0.25% 2.45% 2.71% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.31% -3.48% 4.97% Fidelity VIP Contrafund - Service Class 2(2) -11.17% 1.76% 10.28% Fidelity VIP Equity-Income - Service Class 2(2) -18.61% -1.63% 7.82% Fidelity VIP Growth - Service Class 2(2) -31.58% -2.24% 6.49% Fidelity VIP High Income - Service Class 2(2) 1.56% -7.98% 1.53% LSA Diversified Mid-Cap -20.68% N/A -15.69% Putnam Health Sciences(6) -21.76% N/A -3.13% Van Kampen UIF U.S. Real Estate -2.47% 2.59% 4.95% Goldman Sachs VIT CORE Small Cap Equity -16.46% N/A -2.52% Goldman Sachs VIT CORE U.S. Equity -23.29% N/A -4.17% LSA Equity Growth (3) -31.11% N/A -14.76% LSA Capital Growth (3) -25.74% N/A -11.33% MFS Emerging Growth - Service Class(4) -34.82% -5.48% 2.63% MFS Investors Trust - Service Class(4)(10) -22.56% -4.90% 3.61% MFS New Discovery - Service Class(4) -33.07% N/A 0.30% MFS Research - Service Class(4) -26.08% -5.89% 1.95% MFS Utilities - Service Class(4) -24.28% -3.69% 6.50% Oppenheimer Aggressive Growth -29.11% -3.48% 5.02% Oppenheimer Capital Appreciation -28.19% 0.67% 8.47% Oppenheimer Global Securities -23.53% 3.75% 10.24% Oppenheimer Main Street(5) -20.24% -4.87% 7.00% Oppenheimer Strategic Bond 5.65% 2.38% 4.07% Putnam Growth and Income (6) -20.42% -2.51% 6.81% Putnam Growth Opportunities(6) -30.79% N/A -30.15% Putnam International Equity(6)(7) -19.12% 0.67% 2.81% Putnam New Value (6) -17.09% 0.88% 3.22% Putnam Research (6) -23.60% N/A -3.05% Van Kampen UIF Core Plus Fixed Income 5.54% 5.32% 5.80% Van Kampen UIF Global Value Equity -18.33% -1.32% 1.71% Van Kampen UIF U.S. Mid Cap Core(8) -29.34% -0.20% 5.49% Van Kampen UIF Value -23.55% -2.50% 0.84% Franklin Small Cap - Class 2(1)(11) -29.99% -1.64% 4.52% Franklin Technology Securities - Class 2(1) -45.01% N/A -36.69% Mutual Shares Securities - Class 2(11) -13.34% 2.22% 4.75% Templeton Developing Markets Securities - Class 2(1)(12) -1.84% -7.14% -11.39% Templeton Foreign Securities - Class 2(1)(12) -20.01% -3.76% 6.02% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.24% N/A -5.63% AIM V.I. Balanced -18.77% N/A -3.03% AIM V.I. Capital Appreciation -25.91% -4.10% 5.41% AIM V.I. Core Equity(9) -17.27% -2.79% 5.92% AIM V.I. Dent Demographic Trends -33.63% N/A -29.29% AIM V.I. Diversified Income 0.33% -0.33% 2.78% AIM V.I. Growth -32.42% -9.79% 1.93% AIM V.I. International Growth -17.36% -5.05% 2.36% AIM V.I. Premier Equity -31.72% -4.02% 5.92% Dreyfus Socially Responsible Growth -30.43% -5.62% 4.63% Dreyfus Stock Index -23.95% -2.80% 6.97% Dreyfus VIF - Growth & Income -26.87% -4.17% 6.47% Dreyfus VIF - Money Market -0.50% 2.19% 2.45% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.51% -3.72% 4.71% Fidelity VIP Contrafund - Service Class 2(2) -11.39% 1.50% 10.00% Fidelity VIP Equity-Income - Service Class 2(2) -18.82% -1.88% 7.55% Fidelity VIP Growth - Service Class 2(2) -31.75% -2.49% 6.22% Fidelity VIP High Income - Service Class 2(2) 1.31% -8.22% 1.27% LSA Diversified Mid-Cap -20.88% N/A -15.91% Putnam Health Sciences(6) -21.96% N/A -3.37% Van Kampen UIF U.S. Real Estate -2.71% 2.33% 4.68% Goldman Sachs VIT CORE Small Cap Equity -16.67% N/A -2.77% Goldman Sachs VIT CORE U.S. Equity -23.49% N/A -4.41% LSA Equity Growth (3) -31.28% N/A -14.97% LSA Capital Growth (3) -25.92% N/A -11.55% MFS Emerging Growth - Service Class(4) -34.98% -5.72% 2.38% MFS Investors Trust - Service Class(4)(10) -22.76% -5.14% 3.35% MFS New Discovery - Service Class(4) -33.24% N/A 0.05% MFS Research - Service Class(4) -26.27% -6.13% 1.69% MFS Utilities - Service Class(4) -24.47% -3.94% 6.23% Oppenheimer Aggressive Growth -29.29% -3.73% 4.75% Oppenheimer Capital Appreciation -28.37% 0.42% 8.20% Oppenheimer Global Securities -23.72% 3.49% 9.96% Oppenheimer Main Street(5) -20.44% -5.11% 6.73% Oppenheimer Strategic Bond 5.39% 2.12% 3.81% Putnam Growth and Income (6) -20.62% -2.76% 6.54% Putnam Growth Opportunities(6) -30.96% N/A -30.33% Putnam International Equity(6)(7) -19.33% 0.41% 2.55% Putnam New Value (6) -17.29% 0.62% 2.96% Putnam Research (6) -23.79% N/A -3.30% Van Kampen UIF Core Plus Fixed Income 5.27% 5.05% 5.53% Van Kampen UIF Global Value Equity -18.54% -1.57% 1.46% Van Kampen UIF U.S. Mid Cap Core(8) -29.52% -0.46% 5.22% Van Kampen UIF Value -23.74% -2.75% 0.58% Franklin Small Cap - Class 2(1)(11) -30.17% -1.89% 4.26% Franklin Technology Securities - Class 2(1) -45.15% N/A -36.86% Mutual Shares Securities - Class 2(11) -13.56% 1.96% 4.49% Templeton Developing Markets Securities - Class 2(1)(12) -2.08% -7.38% -11.61% Templeton Foreign Securities - Class 2(1)(12) -20.21% -4.01% 5.75% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -24.43% N/A -5.87% AIM V.I. Balanced -18.97% N/A -3.28% AIM V.I. Capital Appreciation -26.09% -4.34% 5.14% AIM V.I. Core Equity (9) -17.48% -3.04% 5.65% AIM V.I. Dent Demographic Trends -33.80% N/A -29.47% AIM V.I. Diversified Income 0.07% -0.58% 2.52% AIM V.I. Growth -32.59% -10.02% 1.67% AIM V.I. International Growth -17.57% -5.29% 2.10% AIM V.I. Premier Equity -31.89% -4.27% 5.65% Dreyfus Socially Responsible Growth -30.60% -5.86% 4.36% Dreyfus Stock Index -24.14% -3.04% 6.71% Dreyfus VIF - Growth & Income -27.05% -4.41% 6.20% Dreyfus VIF - Money Market -0.75% 1.93% 2.19% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.72% -3.97% 4.44% Fidelity VIP Contrafund - Service Class 2(2) -11.61% 1.25% 9.73% Fidelity VIP Equity-Income - Service Class 2(2) -19.02% -2.13% 7.28% Fidelity VIP Growth - Service Class 2(2) -31.93% -2.74% 5.96% Fidelity VIP High Income - Service Class 2(2) 1.06% -8.45% 1.01% LSA Diversified Mid-Cap -21.08% N/A -16.12% Putnam Health Sciences(6) -22.15% N/A -3.62% Van Kampen UIF U.S. Real Estate -2.96% 2.08% 4.42% Goldman Sachs VIT CORE Small Cap Equity -16.88% N/A -3.01% Goldman Sachs VIT CORE U.S. Equity -23.68% N/A -4.66% LSA Equity Growth (3) -31.45% N/A -15.19% LSA Capital Growth (3) -26.11% N/A -11.78% MFS Emerging Growth - Service Class(4) -35.15% -5.96% 2.12% MFS Investors Trust - Service Class(4)(10) -22.95% -5.38% 3.09% MFS New Discovery - Service Class(4) -33.40% N/A -0.20% MFS Research - Service Class(4) -26.45% -6.36% 1.44% MFS Utilities - Service Class(4) -24.66% -4.18% 5.97% Oppenheimer Aggressive Growth -29.47% -3.97% 4.49% Oppenheimer Capital Appreciation -28.55% 0.17% 7.93% Oppenheimer Global Securities -23.91% 3.23% 9.69% Oppenheimer Main Street(5) -20.64% -5.35% 6.46% Oppenheimer Strategic Bond 5.12% 1.86% 3.54% Putnam Growth and Income (6) -20.82% -3.00% 6.27% Putnam Growth Opportunities(6) -31.13% N/A -30.50% Putnam International Equity(6)(7) -19.53% 0.16% 2.30% Putnam New Value (6) -17.50% 0.37% 2.70% Putnam Research (6) -23.98% N/A -3.54% Van Kampen UIF Core Plus Fixed Income 5.01% 4.79% 5.26% Van Kampen UIF Global Value Equity -18.74% -1.81% 1.20% Van Kampen UIF U.S. Mid Cap Core(8) -29.69% -0.71% 4.96% Van Kampen UIF Value -23.93% -2.99% 0.33% Franklin Small Cap - Class 2(1)(11) -30.34% -2.14% 4.00% Franklin Technology Securities - Class 2(1) -45.28% N/A -37.02% Mutual Shares Securities - Class 2(11) -13.78% 1.71% 4.22% Templeton Developing Markets Securities - Class 2(1)(12) -2.33% -7.61% -11.84% Templeton Foreign Securities - Class 2(1)(12) -20.41% -4.25% 5.49%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfolios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11)The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 2 Set out below are the adjusted historical total returns method 2 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are listed under "Adjusted Historical Returns Method 1" (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -28.88% N/A -6.26% AIM V.I. Balanced -23.39% N/A -3.55% AIM V.I. Capital Appreciation -30.55% -4.43% 5.83% AIM V.I. Core Equity (9) -21.89% -3.08% 6.36% AIM V.I. Dent Demographic Trends -38.29% N/A -31.57% AIM V.I. Diversified Income -4.25% -0.49% 3.28% AIM V.I. Growth -37.08% -10.35% 2.36% AIM V.I. International Growth -21.98% -5.40% 2.81% AIM V.I. Premier Equity -36.37% -4.37% 6.34% Dreyfus Socially Responsible Growth -35.08% -6.01% 5.07% Dreyfus Stock Index -28.58% -3.09% 7.40% Dreyfus VIF - Growth & Income -31.51% -4.49% 6.90% Dreyfus VIF - Money Market -5.07% 2.08% 2.95% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.13% -4.02% 5.14% Fidelity VIP Contrafund - Service Class 2(2) -15.99% 1.34% 10.42% Fidelity VIP Equity-Income - Service Class 2(2) -23.44% -2.12% 7.98% Fidelity VIP Growth - Service Class 2(2) -36.41% -2.79% 6.64% Fidelity VIP High Income - Service Class 2(2) -3.26% -8.62% 1.73% LSA Diversified Mid-Cap -25.51% N/A -19.29% Putnam Health Sciences(6) -26.59% N/A -3.90% Van Kampen UIF U.S. Real Estate -7.30% 2.26% 4.74% Goldman Sachs VIT CORE Small Cap Equity -21.29% N/A -3.21% Goldman Sachs VIT CORE U.S. Equity -28.12% N/A -4.96% LSA Equity Growth (3) -35.94% N/A -16.33% LSA Capital Growth (3) -30.56% N/A -12.75% MFS Emerging Growth - Service Class(4) -39.65% -6.14% 2.81% MFS Investors Trust - Service Class(4)(10) -27.39% -5.49% 3.81% MFS New Discovery - Service Class(4) -37.89% N/A -0.38% MFS Research - Service Class(4) -30.91% -6.53% 2.15% MFS Utilities - Service Class(4) -29.11% -4.26% 6.65% Oppenheimer Aggressive Growth -33.94% -4.06% 5.17% Oppenheimer Capital Appreciation -33.02% 0.21% 8.63% Oppenheimer Global Securities -28.36% 3.36% 10.37% Oppenheimer Main Street(5) -25.07% -5.45% 7.17% Oppenheimer Strategic Bond 0.82% 2.02% 4.31% Putnam Growth and Income (6) -25.25% -3.02% 6.97% Putnam Growth Opportunities(6) -35.62% N/A -33.37% Putnam International Equity(6)(7) -23.95% 0.21% 2.51% Putnam New Value (6) -21.91% 0.46% 2.96% Putnam Research (6) -28.43% N/A -3.91% Van Kampen UIF Core Plus Fixed Income 0.71% 5.01% 5.61% Van Kampen UIF Global Value Equity -23.16% -1.79% 1.41% Van Kampen UIF U.S. Mid Cap Core(8) -34.17% -0.67% 5.23% Van Kampen UIF Value -28.38% -2.99% 0.52% Franklin Small Cap - Class 2(1)(11) -34.82% -2.16% 4.73% Franklin Technology Securities - Class 2(1) -49.83% N/A -40.53% Mutual Shares Securities - Class 2(11) -18.17% 1.84% 4.68% Templeton Developing Markets Securities - Class 2(1)(12) -6.66% -7.75% -11.69% Templeton Foreign Securities - Class 2(1)(12) -24.83% -4.31% 6.17% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -29.07% N/A -6.50% AIM V.I. Balanced -23.59% N/A -3.80% AIM V.I. Capital Appreciation -30.74% -4.68% 5.57% AIM V.I. Core Equity (9) -22.10% -3.34% 6.09% AIM V.I. Dent Demographic Trends -38.46% N/A -31.76% AIM V.I. Diversified Income -4.50% -0.75% 3.02% AIM V.I. Growth -37.25% -10.59% 2.10% AIM V.I. International Growth -22.19% -5.65% 2.55% AIM V.I. Premier Equity -36.55% -4.61% 6.08% Dreyfus Socially Responsible Growth -35.25% -6.26% 4.81% Dreyfus Stock Index -28.77% -3.34% 7.13% Dreyfus VIF - Growth & Income -31.69% -4.74% 6.63% Dreyfus VIF - Money Market -5.32% 1.82% 2.70% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.34% -4.27% 4.88% Fidelity VIP Contrafund - Service Class 2(2) -16.22% 1.07% 10.15% Fidelity VIP Equity-Income - Service Class 2(2) -23.65% -2.37% 7.71% Fidelity VIP Growth - Service Class 2(2) -36.58% -3.05% 6.38% Fidelity VIP High Income - Service Class 2(2) -3.52% -8.86% 1.48% LSA Diversified Mid-Cap -25.71% N/A -19.50% Putnam Health Sciences(6) -26.79% N/A -4.15% Van Kampen UIF U.S. Real Estate -7.54% 1.99% 4.47% Goldman Sachs VIT CORE Small Cap Equity -21.50% N/A -3.47% Goldman Sachs VIT CORE U.S. Equity -28.31% N/A -5.21% LSA Equity Growth (3) -36.11% N/A -16.55% LSA Capital Growth (3) -30.75% N/A -12.98% MFS Emerging Growth - Service Class(4) -39.81% -6.38% 2.55% MFS Investors Trust - Service Class(4)(10) -27.58% -5.74% 3.55% MFS New Discovery - Service Class(4) -38.06% N/A -0.64% MFS Research - Service Class(4) -31.09% -6.77% 1.89% MFS Utilities - Service Class(4) -29.30% -4.51% 6.39% Oppenheimer Aggressive Growth -34.12% -4.31% 4.91% Oppenheimer Capital Appreciation -33.20% -0.05% 8.36% Oppenheimer Global Securities -28.55% 3.09% 10.10% Oppenheimer Main Street(5) -25.27% -5.70% 6.90% Oppenheimer Strategic Bond 0.56% 1.76% 4.05% Putnam Growth and Income (6) -25.45% -3.28% 6.70% Putnam Growth Opportunities(6) -35.79% N/A -33.56% Putnam International Equity(6)(7) -24.16% -0.05% 2.25% Putnam New Value (6) -22.12% 0.20% 2.69% Putnam Research (6) -28.62% N/A -4.16% Van Kampen UIF Core Plus Fixed Income 0.45% 4.75% 5.34% Van Kampen UIF Global Value Equity -23.36% -2.05% 1.15% Van Kampen UIF U.S. Mid Cap Core(8) -34.34% -0.93% 4.96% Van Kampen UIF Value -28.57% -3.24% 0.27% Franklin Small Cap - Class 2(1)(11) -35.00% -2.41% 4.47% Franklin Technology Securities - Class 2(1) -49.97% N/A -40.71% Mutual Shares Securities - Class 2(11) -18.39% 1.58% 4.41% Templeton Developing Markets Securities - Class 2(1)(12) -6.91% -7.99% -11.93% Templeton Foreign Securities - Class 2(1)(12) -25.03% -4.56% 5.90% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -29.26% N/A -6.75% AIM V.I. Balanced -23.80% N/A -4.05% AIM V.I. Capital Appreciation -30.92% -4.93% 5.30% AIM V.I. Core Equity (9) -22.31% -3.59% 5.82% AIM V.I. Dent Demographic Trends -38.62% N/A -31.96% AIM V.I. Diversified Income -4.75% -1.00% 2.76% AIM V.I. Growth -37.42% -10.83% 1.85% AIM V.I. International Growth -22.40% -5.90% 2.29% AIM V.I. Premier Equity -36.72% -4.86% 5.81% Dreyfus Socially Responsible Growth -35.43% -6.50% 4.55% Dreyfus Stock Index -28.97% -3.59% 6.87% Dreyfus VIF - Growth & Income -31.88% -4.99% 6.37% Dreyfus VIF - Money Market -5.57% 1.56% 2.44% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.55% -4.52% 4.62% Fidelity VIP Contrafund - Service Class 2(2) -16.44% 0.81% 9.87% Fidelity VIP Equity-Income - Service Class 2(2) -23.85% -2.63% 7.44% Fidelity VIP Growth - Service Class 2(2) -36.75% -3.30% 6.11% Fidelity VIP High Income - Service Class 2(2) -3.77% -9.10% 1.22% LSA Diversified Mid-Cap -25.91% N/A -19.72% Putnam Health Sciences(6) -26.98% N/A -4.40% Van Kampen UIF U.S. Real Estate -7.78% 1.73% 4.20% Goldman Sachs VIT CORE Small Cap Equity -21.71% N/A -3.72% Goldman Sachs VIT CORE U.S. Equity -28.51% N/A -5.47% LSA Equity Growth (3) -36.28% N/A -16.78% LSA Capital Growth (3) -30.94% N/A -13.21% MFS Emerging Growth - Service Class(4) -39.97% -6.63% 2.30% MFS Investors Trust - Service Class(4)(10) -27.78% -5.99% 3.29% MFS New Discovery - Service Class(4) -38.23% N/A -0.90% MFS Research - Service Class(4) -31.28% -7.02% 1.64% MFS Utilities - Service Class(4) -29.49% -4.76% 6.12% Oppenheimer Aggressive Growth -34.29% -4.56% 4.65% Oppenheimer Capital Appreciation -33.38% -0.31% 8.09% Oppenheimer Global Securities -28.74% 2.82% 9.82% Oppenheimer Main Street(5) -25.47% -5.94% 6.63% Oppenheimer Strategic Bond 0.30% 1.50% 3.79% Putnam Growth and Income (6) -25.65% -3.53% 6.43% Putnam Growth Opportunities(6) -35.96% N/A -33.76% Putnam International Equity(6)(7) -24.36% -0.31% 1.99% Putnam New Value (6) -22.33% -0.06% 2.43% Putnam Research (6) -28.81% N/A -4.41% Van Kampen UIF Core Plus Fixed Income 0.18% 4.48% 5.07% Van Kampen UIF Global Value Equity -23.57% -2.30% 0.89% Van Kampen UIF U.S. Mid Cap Core(8) -34.52% -1.19% 4.69% Van Kampen UIF Value -28.76% -3.50% 0.01% Franklin Small Cap - Class 2(1)(11) -35.17% -2.66% 4.20% Franklin Technology Securities - Class 2(1) -50.11% N/A -40.88% Mutual Shares Securities - Class 2(11) -18.61% 1.32% 4.15% Templeton Developing Markets Securities - Class 2(1)(12) -7.16% -8.23% -12.16% Templeton Foreign Securities - Class 2(1)(12) -25.23% -4.81% 5.64% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -29.23% N/A -6.61% AIM V.I. Balanced -23.74% N/A -3.89% AIM V.I. Capital Appreciation -30.90% -4.73% 5.62% AIM V.I. Core Equity (9) -22.24% -3.38% 6.13% AIM V.I. Dent Demographic Trends -38.64% N/A -32.19% AIM V.I. Diversified Income -4.60% -0.85% 2.97% AIM V.I. Growth -37.43% -10.67% 2.14% AIM V.I. International Growth -22.33% -5.72% 2.56% AIM V.I. Premier Equity -36.72% -4.65% 6.14% Dreyfus Socially Responsible Growth -35.43% -6.31% 4.84% Dreyfus Stock Index -28.93% -3.38% 7.20% Dreyfus VIF - Growth & Income -31.86% -4.81% 6.69% Dreyfus VIF - Money Market -5.42% 1.74% 2.64% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.48% -4.35% 4.92% Fidelity VIP Contrafund - Service Class 2(2) -16.34% 1.05% 10.24% Fidelity VIP Equity-Income - Service Class 2(2) -23.79% -2.44% 7.78% Fidelity VIP Growth - Service Class 2(2) -36.76% -3.06% 6.45% Fidelity VIP High Income - Service Class 2(2) -3.61% -9.05% 1.47% LSA Diversified Mid-Cap -25.86% N/A -19.78% Putnam Health Sciences(6) -26.94% N/A -4.25% Van Kampen UIF U.S. Real Estate -7.65% 1.89% 4.41% Goldman Sachs VIT CORE Small Cap Equity -21.64% N/A -3.59% Goldman Sachs VIT CORE U.S. Equity -28.47% N/A -5.30% LSA Equity Growth (3) -36.29% N/A -16.78% LSA Capital Growth (3) -30.91% N/A -13.18% MFS Emerging Growth - Service Class(4) -40.00% -6.41% 2.58% MFS Investors Trust - Service Class(4)(10) -27.74% -5.82% 3.55% MFS New Discovery - Service Class(4) -38.24% N/A -0.68% MFS Research - Service Class(4) -31.26% -6.84% 1.89% MFS Utilities - Service Class(4) -29.46% -4.57% 6.46% Oppenheimer Aggressive Growth -34.29% -4.34% 4.97% Oppenheimer Capital Appreciation -33.37% -0.06% 8.43% Oppenheimer Global Securities -28.71% 3.10% 10.20% Oppenheimer Main Street(5) -25.42% -5.80% 6.95% Oppenheimer Strategic Bond 0.47% 1.67% 4.00% Putnam Growth and Income (6) -25.60% -3.35% 6.76% Putnam Growth Opportunities(6) -35.97% N/A -33.94% Putnam International Equity(6)(7) -24.30% -0.06% 2.26% Putnam New Value (6) -22.26% 0.14% 2.66% Putnam Research (6) -28.78% N/A -4.26% Van Kampen UIF Core Plus Fixed Income 0.36% 4.68% 5.29% Van Kampen UIF Global Value Equity -23.51% -2.12% 1.12% Van Kampen UIF U.S. Mid Cap Core(8) -34.52% -0.96% 5.00% Van Kampen UIF Value -28.73% -3.34% 0.22% Franklin Small Cap - Class 2(1)(11) -35.17% -2.44% 4.46% Franklin Technology Securities - Class 2(1) -50.18% N/A -41.13% Mutual Shares Securities - Class 2(11) -18.52% 1.52% 4.35% Templeton Developing Markets Securities - Class 2(1)(12) -7.01% -8.17% -12.30% Templeton Foreign Securities - Class 2(1)(12) -25.18% -4.64% 5.98% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Varaible Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -29.42% N/A -6.86% AIM V.I. Balanced -23.94% N/A -4.15% AIM V.I. Capital Appreciation -31.09% -4.98% 5.36% AIM V.I. Core Equity (9) -22.45% -3.64% 5.87% AIM V.I. Dent Demographic Trends -38.81% N/A -32.39% AIM V.I. Diversified Income -4.85% -1.11% 2.71% AIM V.I. Growth -37.60% -10.92% 1.88% AIM V.I. International Growth -22.54% -5.97% 2.30% AIM V.I. Premier Equity -36.90% -4.90% 5.87% Dreyfus Socially Responsible Growth -35.60% -6.56% 4.58% Dreyfus Stock Index -29.12% -3.64% 6.93% Dreyfus VIF - Growth & Income -32.04% -5.06% 6.42% Dreyfus VIF - Money Market -5.67% 1.48% 2.38% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.69% -4.60% 4.66% Fidelity VIP Contrafund - Service Class 2(2) -16.57% 0.79% 9.96% Fidelity VIP Equity-Income - Service Class 2(2) -24.00% -2.70% 7.51% Fidelity VIP Growth - Service Class 2(2) -36.93% -3.31% 6.18% Fidelity VIP High Income - Service Class 2(2) -3.87% -9.29% 1.21% LSA Diversified Mid-Cap -26.06% N/A -20.00% Putnam Health Sciences(6) -27.14% N/A -4.51% Van Kampen UIF U.S. Real Estate -7.89% 1.62% 4.14% Goldman Sachs VIT CORE Small Cap Equity -21.85% N/A -3.84% Goldman Sachs VIT CORE U.S. Equity -28.66% N/A -5.55% LSA Equity Growth (3) -36.46% N/A -17.00% LSA Capital Growth (3) -31.10% N/A -13.41% MFS Emerging Growth - Service Class(4) -40.16% -6.66% 2.32% MFS Investors Trust - Service Class(4)(10) -27.93% -6.07% 3.29% MFS New Discovery - Service Class(4) -38.41% N/A -0.94% MFS Research - Service Class(4) -31.44% -7.09% 1.63% MFS Utilities - Service Class(4) -29.65% -4.82% 6.19% Oppenheimer Aggressive Growth -34.47% -4.59% 4.71% Oppenheimer Capital Appreciation -33.55% -0.32% 8.16% Oppenheimer Global Securities -28.90% 2.83% 9.92% Oppenheimer Main Street(5) -25.62% -6.04% 6.68% Oppenheimer Strategic Bond 0.21% 1.41% 3.74% Putnam Growth and Income (6) -25.80% -3.61% 6.49% Putnam Growth Opportunities(6) -36.14% N/A -34.13% Putnam International Equity(6)(7) -24.51% -0.33% 1.99% Putnam New Value (6) -22.47% -0.12% 2.39% Putnam Research (6) -28.97% N/A -4.51% Van Kampen UIF Core Plus Fixed Income 0.10% 4.41% 5.02% Van Kampen UIF Global Value Equity -23.71% -2.37% 0.86% Van Kampen UIF U.S. Mid Cap Core(8) -34.69% -1.22% 4.73% Van Kampen UIF Value -28.92% -3.60% -0.04% Franklin Small Cap - Class 2(1)(11) -35.35% -2.70% 4.20% Franklin Technology Securities - Class 2(1) -50.32% N/A -41.31% Mutual Shares Securities - Class 2(11) -18.74% 1.25% 4.08% Templeton Developing Markets Securities - Class 2(1)(12) -7.26% -8.42% -12.54% Templeton Foreign Securities - Class 2(1)(12) -25.38% -4.89% 5.71% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -29.61% N/A -7.11% AIM V.I. Balanced -24.15% N/A -4.40% AIM V.I. Capital Appreciation -31.27% -5.23% 5.09% AIM V.I. Core Equity (9) -22.66% -3.89% 5.60% AIM V.I. Dent Demographic Trends -38.97% N/A -32.58% AIM V.I. Diversified Income -5.10% -1.37% 2.45% AIM V.I. Growth -37.77% -11.15% 1.62% AIM V.I. International Growth -22.75% -6.22% 2.04% AIM V.I. Premier Equity -37.07% -5.16% 5.60% Dreyfus Socially Responsible Growth -35.78% -6.81% 4.31% Dreyfus Stock Index -29.32% -3.89% 6.66% Dreyfus VIF - Growth & Income -32.23% -5.31% 6.16% Dreyfus VIF - Money Market -5.92% 1.22% 2.12% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -22.90% -4.85% 4.39% Fidelity VIP Contrafund - Service Class 2(2) -16.79% 0.53% 9.69% Fidelity VIP Equity-Income - Service Class 2(2) -24.20% -2.96% 7.23% Fidelity VIP Growth - Service Class 2(2) -37.10% -3.57% 5.91% Fidelity VIP High Income - Service Class 2(2) -4.12% -9.54% 0.95% LSA Diversified Mid-Cap -26.26% N/A -20.21% Putnam Health Sciences(6) -27.33% N/A -4.76% Van Kampen UIF U.S. Real Estate -8.13% 1.36% 3.86% Goldman Sachs VIT CORE Small Cap Equity -22.06% N/A -4.10% Goldman Sachs VIT CORE U.S. Equity -28.86% N/A -5.80% LSA Equity Growth (3) -36.63% N/A -17.23% LSA Capital Growth (3) -31.29% N/A -13.65% MFS Emerging Growth - Service Class(4) -40.32% -6.91% 2.07% MFS Investors Trust - Service Class(4)(10) -28.13% -6.32% 3.03% MFS New Discovery - Service Class(4) -38.58% N/A -1.20% MFS Research - Service Class(4) -31.63% -7.34% 1.38% MFS Utilities - Service Class(4) -29.84% -5.07% 5.92% Oppenheimer Aggressive Growth -34.64% -4.84% 4.44% Oppenheimer Capital Appreciation -33.73% -0.58% 7.88% Oppenheimer Global Securities -29.09% 2.56% 9.65% Oppenheimer Main Street(5) -25.82% -6.29% 6.41% Oppenheimer Strategic Bond -0.05% 1.14% 3.47% Putnam Growth and Income (6) -26.00% -3.86% 6.22% Putnam Growth Opportunities(6) -36.31% N/A -34.33% Putnam International Equity(6)(7) -24.71% -0.59% 1.73% Putnam New Value (6) -22.68% -0.39% 2.13% Putnam Research (6) -29.16% N/A -4.76% Van Kampen UIF Core Plus Fixed Income -0.17% 4.14% 4.75% Van Kampen UIF Global Value Equity -23.92% -2.63% 0.60% Van Kampen UIF U.S. Mid Cap Core(8) -34.87% -1.48% 4.46% Van Kampen UIF Value -29.11% -3.85% -0.30% Franklin Small Cap - Class 2(1)(11) -35.52% -2.96% 3.94% Franklin Technology Securities - Class 2(1) -50.46% N/A -41.49% Mutual Shares Securities - Class 2(11) -18.96% 0.99% 3.81% Templeton Developing Markets Securities - Class 2(1)(12) -7.51% -8.66% -12.78% Templeton Foreign Securities - Class 2(1)(12) -25.58% -5.14% 5.44%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfolios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11)The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. SUNTRUST STANDARDIZED TOTAL RETURNS Set out below are the standardized total returns for each Variable Sub-Account since its inception through December 31, 2002. The inception dates of the Variable Sub-Account's are as follows: Variable Sub-Account Sub-Account Inception AIM V.I. Balanced 11/10/98 AIM V.I. Capital Appreciation 01/26/98 AIM V.I. Core Equity 01/26/98 AIM V.I. Growth 01/26/98 AIM V.I. High Yield 11/10/98 AIM V.I. Premier Equity 01/26/98 Federated Prime Money Fund II 11/01/99 Fidelity VIP Contrafund - Service Class 2 05/01/01 Fidelity VIP Equity-Income - Service Class 2 05/01/01 Fidelity VIP Growth - Service Class 2 05/01/01 Fidelity VIP High Income - Service Class 2 05/01/01 Fidelity VIP Index 500 - Service Class 2 05/01/01 Fidelity VIP Overseas - Service Class 2 05/01/01 MFS Emerging Growth - Service Class 05/01/01 MFS Investors Trust - Service Class 05/01/01 MFS New Discovery - Service Class 05/01/01 MFS Research - Service Class 05/01/01 MFS Utilities - Service Class 05/01/01 Oppenheimer Aggressive Growth 11/01/99 Oppenheimer Capital Appreciation 11/01/99 Oppenheimer Global Securities 11/01/99 Oppenheimer Main Street 11/01/99 Oppenheimer Multiple Strategies 01/24/00 Oppenheimer Strategic Bond 11/01/99 Putnam Diversified Income 05/01/01 Putnam Growth and Income 05/01/01 Putnam Growth Opportunities 05/01/01 Putnam Health Sciences 05/01/01 Putnam New Value 05/01/01 Putnam Discovery Growth 05/01/01 STI Capital Appreciation 11/01/99 STI Growth and Income 01/24/00 STI International Equity 01/24/00 STI Investment Grade Bond 01/24/00 STI Mid-Cap Equity 01/24/00 STI Small Cap Value Equity 01/24/00 STI Value Income Stock 11/01/99 Templeton Global Income Securities - Class 2 01/21/00 Templeton Growth Securities - Class 2 11/01/99 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -23.39% N/A -4.98% AIM V.I. Capital Appreciation -30.55% N/A -3.70% AIM V.I. Core Equity(4) -21.89% N/A -2.84% AIM V.I. Growth -37.08% N/A -10.39% AIM V.I. High Yield -12.28% N/A -7.21% AIM V.I. Premier Equity -36.37% N/A -4.26% Federated Prime Money Fund II -5.14% N/A 0.96% Fidelity VIP Contrafund - Service Class 2 -15.99% N/A -13.07% Fidelity VIP Equity-Income - Service Class 2 -23.44% N/A -18.32% Fidelity VIP Growth - Service Class 2 -36.41% N/A -30.52% Fidelity VIP High Income - Service Class 2 -3.26% N/A -8.24% Fidelity VIP Index 500 - Service Class 2 -28.67% N/A -23.51% Fidelity VIP Overseas - Service Class 2 -26.70% N/A -27.93% MFS Emerging Growth - Service Class -39.65% N/A -35.40% MFS Investors Trust - Service Class(6) -27.39% N/A -23.79% MFS New Discovery - Service Class -37.89% N/A -26.75% MFS Research - Service Class -30.91% N/A -28.16% MFS Utilities - Service Class -29.11% N/A -32.30% Oppenheimer Aggressive Growth -33.94% N/A -17.87% Oppenheimer Capital Appreciation -33.02% N/A -10.76% Oppenheimer Global Securities -28.36% N/A -4.61% Oppenheimer Main Street(2) -25.07% N/A -12.98% Oppenheimer Multiple Strategies -16.78% N/A -3.94% Oppenheimer Strategic Bond 0.82% N/A 2.53% Putnam Diversified Income -0.69% N/A 0.20% Putnam Growth and Income -25.25% N/A -20.33% Putnam Growth Opportunities -35.62% N/A -33.31% Putnam Health Sciences -26.59% N/A -18.77% Putnam New Value -21.91% N/A -16.19% Putnam Discovery Growth(3) -35.70% N/A -33.39% STI Capital Appreciation(5) -28.11% N/A -9.44% STI Growth and Income -26.84% N/A -10.00% STI International Equity -24.86% N/A -16.57% STI Investment Grade Bond 0.78% N/A 4.82% STI Mid-Cap Equity -34.59% N/A -15.31% STI Small Cap Value Equity -7.70% N/A 13.14% STI Value Income Stock -23.28% N/A -7.61% Templeton Global Income Securities - Class 2(1) 14.35% N/A 6.60% Templeton Growth Securities - Class 2(1) -24.76% N/A -3.48% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -23.59% N/A -5.23% AIM V.I. Capital Appreciation -30.74% N/A -3.96% AIM V.I. Core Equity(4) -22.10% N/A -3.10% AIM V.I. Growth -37.25% N/A -10.63% AIM V.I. High Yield -12.51% N/A -7.45% AIM V.I. Premier Equity -36.55% N/A -4.51% Federated Prime Money Fund II -5.38% N/A 0.69% Fidelity VIP Contrafund - Service Class 2 -16.22% N/A -13.30% Fidelity VIP Equity-Income - Service Class 2 -23.65% N/A -18.53% Fidelity VIP Growth - Service Class 2 -36.58% N/A -30.71% Fidelity VIP High Income - Service Class 2 -3.52% N/A -8.48% Fidelity VIP Index 500 - Service Class 2 -28.86% N/A -23.72% Fidelity VIP Overseas - Service Class 2 -26.90% N/A -28.12% MFS Emerging Growth - Service Class -39.81% N/A -35.58% MFS Investors Trust - Service Class(6) -27.58% N/A -24.00% MFS New Discovery - Service Class -38.06% N/A -26.95% MFS Research - Service Class -31.09% N/A -28.36% MFS Utilities - Service Class -29.30% N/A -32.48% Oppenheimer Aggressive Growth -34.12% N/A -18.09% Oppenheimer Capital Appreciation -33.20% N/A -10.99% Oppenheimer Global Securities -28.55% N/A -4.86% Oppenheimer Main Street(2) -25.27% N/A -13.21% Oppenheimer Multiple Strategies -17.00% N/A -4.19% Oppenheimer Strategic Bond 0.56% N/A 2.27% Putnam Diversified Income -0.95% N/A -0.06% Putnam Growth and Income -25.45% N/A -20.55% Putnam Growth Opportunities -35.79% N/A -33.49% Putnam Health Sciences -26.79% N/A -18.98% Putnam New Value -22.12% N/A -16.41% Putnam Discovery Growth(3) -35.88% N/A -33.57% STI Capital Appreciation(5) -28.31% N/A -9.68% STI Growth and Income -27.03% N/A -10.24% STI International Equity -25.06% N/A -16.80% STI Investment Grade Bond 0.52% N/A 4.55% STI Mid-Cap Equity -34.77% N/A -15.54% STI Small Cap Value Equity -7.94% N/A 12.89% STI Value Income Stock -23.48% N/A -7.86% Templeton Global Income Securities - Class 2(1) 14.05% N/A 6.32% Templeton Growth Securities - Class 2(1) -24.96% N/A -3.73% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -23.80% N/A -5.48% AIM V.I. Capital Appreciation -30.92% N/A -4.21% AIM V.I. Core Equity(4) -22.31% N/A -3.35% AIM V.I. Growth -37.42% N/A -10.87% AIM V.I. High Yield -12.74% N/A -7.70% AIM V.I. Premier Equity -36.72% N/A -4.77% Federated Prime Money Fund II -5.63% N/A 0.43% Fidelity VIP Contrafund - Service Class 2 -16.44% N/A -13.53% Fidelity VIP Equity-Income - Service Class 2 -23.85% N/A -18.75% Fidelity VIP Growth - Service Class 2 -36.75% N/A -30.90% Fidelity VIP High Income - Service Class 2 -3.77% N/A -8.72% Fidelity VIP Index 500 - Service Class 2 -29.05% N/A -23.92% Fidelity VIP Overseas - Service Class 2 -27.09% N/A -28.32% MFS Emerging Growth - Service Class -39.97% N/A -35.76% MFS Investors Trust - Service Class(6) -27.78% N/A -24.20% MFS New Discovery - Service Class -38.23% N/A -27.15% MFS Research - Service Class -31.28% N/A -28.55% MFS Utilities - Service Class -29.49% N/A -32.67% Oppenheimer Aggressive Growth -34.29% N/A -18.31% Oppenheimer Capital Appreciation -33.38% N/A -11.23% Oppenheimer Global Securities -28.74% N/A -5.11% Oppenheimer Main Street(2) -25.47% N/A -13.44% Oppenheimer Multiple Strategies -17.22% N/A -4.45% Oppenheimer Strategic Bond 0.30% N/A 2.00% Putnam Diversified Income -1.21% N/A -0.32% Putnam Growth and Income -25.65% N/A -20.76% Putnam Growth Opportunities -35.96% N/A -33.67% Putnam Health Sciences -26.98% N/A -19.20% Putnam New Value -22.33% N/A -16.63% Putnam Discovery Growth(3) -36.05% N/A -33.75% STI Capital Appreciation(5) -28.50% N/A -9.92% STI Growth and Income -27.23% N/A -10.48% STI International Equity -25.26% N/A -17.03% STI Investment Grade Bond 0.25% N/A 4.28% STI Mid-Cap Equity -34.94% N/A -15.77% STI Small Cap Value Equity -8.19% N/A 12.63% STI Value Income Stock -23.69% N/A -8.10% Templeton Global Income Securities - Class 2(1) 13.75% N/A 6.04% Templeton Growth Securities - Class 2(1) -25.16% N/A -3.98% (With Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Acount 1 Year 5 Year Inception AIM V.I. Balanced -23.74% N/A -5.38% AIM V.I. Capital Appreciation -30.90% N/A -4.00% AIM V.I. Core Equity(4) -22.24% N/A -3.14% AIM V.I. Growth -37.43% N/A -10.71% AIM V.I. High Yield -12.63% N/A -7.67% AIM V.I. Premier Equity -36.72% N/A -4.55% Federated Prime Money Fund II -5.49% N/A 0.51% Fidelity VIP Contrafund - Service Class 2 -16.34% N/A -13.50% Fidelity VIP Equity-Income - Service Class 2 -23.79% N/A -18.75% Fidelity VIP Growth - Service Class 2 -36.76% N/A -30.97% Fidelity VIP High Income - Service Class 2 -3.61% N/A -8.69% Fidelity VIP Index 500 - Service Class 2 -29.02% N/A -23.95% Fidelity VIP Overseas - Service Class 2 -27.05% N/A -28.40% MFS Emerging Growth - Service Class -40.00% N/A -35.87% MFS Investors Trust - Service Class(6) -27.74% N/A -24.24% MFS New Discovery - Service Class -38.24% N/A -27.18% MFS Research - Service Class -31.26% N/A -28.62% MFS Utilities - Service Class -29.46% N/A -32.78% Oppenheimer Aggressive Growth -34.29% N/A -18.31% Oppenheimer Capital Appreciation -33.37% N/A -11.18% Oppenheimer Global Securities -28.71% N/A -4.99% Oppenheimer Main Street(2) -25.42% N/A -13.45% Oppenheimer Multiple Strategies -17.13% N/A -4.30% Oppenheimer Strategic Bond 0.47% N/A 2.08% Putnam Diversified Income -1.04% N/A -0.23% Putnam Growth and Income -25.60% N/A -20.77% Putnam Growth Opportunities -35.97% N/A -33.77% Putnam Health Sciences -26.94% N/A -19.20% Putnam New Value -22.26% N/A -16.62% Putnam Discovery Growth(3) -36.05% N/A -33.85% STI Capital Appreciation(5) -28.46% N/A -9.88% STI Growth and Income -27.19% N/A -10.37% STI International Equity -25.21% N/A -16.99% STI Investment Grade Bond 0.43% N/A 4.47% STI Mid-Cap Equity -34.94% N/A -15.71% STI Small Cap Value Equity -8.05% N/A 12.84% STI Value Income Stock -23.63% N/A -8.07% Templeton Global Income Securities - Class 2(1) 14.00% N/A 6.24% Templeton Growth Securities - Class 2(1) -25.11% N/A -3.89% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -23.94% N/A -5.63% AIM V.I. Capital Appreciation -31.09% N/A -4.25% AIM V.I. Core Equity(4) -22.45% N/A -3.40% AIM V.I. Growth -37.60% N/A -10.95% AIM V.I. High Yield -12.86% N/A -7.91% AIM V.I. Premier Equity -36.90% N/A -4.81% Federated Prime Money Fund II -5.73% N/A 0.25% Fidelity VIP Contrafund - Service Class 2 -16.57% N/A -13.73% Fidelity VIP Equity-Income - Service Class 2 -24.00% N/A -18.97% Fidelity VIP Growth - Service Class 2 -36.93% N/A -31.16% Fidelity VIP High Income - Service Class 2 -3.87% N/A -8.93% Fidelity VIP Index 500 - Service Class 2 -29.21% N/A -24.16% Fidelity VIP Overseas - Service Class 2 -27.25% N/A -28.59% MFS Emerging Growth - Service Class -40.16% N/A -36.05% MFS Investors Trust - Service Class(6) -27.93% N/A -24.44% MFS New Discovery - Service Class -38.41% N/A -27.38% MFS Research - Service Class -31.44% N/A -28.82% MFS Utilities - Service Class -29.65% N/A -32.96% Oppenheimer Aggressive Growth -34.47% N/A -18.54% Oppenheimer Capital Appreciation -33.55% N/A -11.42% Oppenheimer Global Securities -28.90% N/A -5.25% Oppenheimer Main Street(2) -25.62% N/A -13.68% Oppenheimer Multiple Strategies -17.35% N/A -4.55% Oppenheimer Strategic Bond 0.21% N/A 1.82% Putnam Diversified Income -1.30% N/A -0.49% Putnam Growth and Income -25.80% N/A -20.99% Putnam Growth Opportunities -36.14% N/A -33.96% Putnam Health Sciences -27.14% N/A -19.42% Putnam New Value -22.47% N/A -16.84% Putnam Discovery Growth(3) -36.23% N/A -34.04% STI Capital Appreciation(5) -28.66% N/A -10.12% STI Growth and Income -27.38% N/A -10.61% STI International Equity -25.41% N/A -17.22% STI Investment Grade Bond 0.17% N/A 4.20% STI Mid-Cap Equity -35.12% N/A -15.94% STI Small Cap Value Equity -8.29% N/A 12.58% STI Value Income Stock -23.83% N/A -8.32% Templeton Global Income Securities - Class 2(1) 13.70% N/A 5.96% Templeton Growth Securities - Class 2(1) -25.31% N/A -4.14% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Balanced -24.15% N/A -5.89% AIM V.I. Capital Appreciation -31.27% N/A -4.51% AIM V.I. Core Equity(4) -22.66% N/A -3.65% AIM V.I. Growth -37.77% N/A -11.19% AIM V.I. High Yield -13.09% N/A -8.16% AIM V.I. Premier Equity -37.07% N/A -5.06% Federated Prime Money Fund II -5.98% N/A -0.02% Fidelity VIP Contrafund - Service Class 2 -16.79% N/A -13.97% Fidelity VIP Equity-Income - Service Class 2 -24.20% N/A -19.19% Fidelity VIP Growth - Service Class 2 -37.10% N/A -31.36% Fidelity VIP High Income - Service Class 2 -4.12% N/A -9.17% Fidelity VIP Index 500 - Service Class 2 -29.40% N/A -24.37% Fidelity VIP Overseas - Service Class 2 -27.44% N/A -28.79% MFS Emerging Growth - Service Class -40.32% N/A -36.23% MFS Investors Trust - Service Class(6) -28.13% N/A -24.65% MFS New Discovery - Service Class -38.58% N/A -27.58% MFS Research - Service Class -31.63% N/A -29.01% MFS Utilities - Service Class -29.84% N/A -33.15% Oppenheimer Aggressive Growth -34.64% N/A -18.76% Oppenheimer Capital Appreciation -33.73% N/A -11.65% Oppenheimer Global Securities -29.09% N/A -5.50% Oppenheimer Main Street(2) -25.82% N/A -13.92% Oppenheimer Multiple Strategies -17.57% N/A -4.81% Oppenheimer Strategic Bond -0.05% N/A 1.55% Putnam Diversified Income -1.56% N/A -0.75% Putnam Growth and Income -26.00% N/A -21.20% Putnam Growth Opportunities -36.31% N/A -34.14% Putnam Health Sciences -27.33% N/A -19.63% Putnam New Value -22.68% N/A -17.07% Putnam Discovery Growth(3) -36.40% N/A -34.22% STI Capital Appreciation(5) -28.85% N/A -10.36% STI Growth and Income -27.58% N/A -10.85% STI International Equity -25.61% N/A -17.45% STI Investment Grade Bond -0.10% N/A 3.93% STI Mid-Cap Equity -35.29% N/A -16.17% STI Small Cap Value Equity -8.54% N/A 12.33% STI Value Income Stock -24.04% N/A -8.56% Templeton Global Income Securities - Class 2(1) 13.40% N/A 5.68% Templeton Growth Securities - Class 2(1) -25.51% N/A -4.39%
(1) Performance shown prior to 5/1/00 is based on the Templeton Bond (Class 2) and Templeton Stock (Class 2) Sub-Accounts. On 5/1/00, the Templeton Bond (Class 2), and Templeton Stock (Class 2) Portfolios were merged into the Templeton Global Income Securities (Class 2) and Templeton Growth Securities (Class 2) portfolios, respectively and were closed. For administrative convenience, on May 1, 2000, we merged the corresponding Sub-Accounts into new Sub-Accounts named Templeton Global Income Securities (Class 2) and Templeton Growth Securities (Class 2), respectively. (2) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (3) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (4) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (5) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (6) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 1 Set out below are the adjusted historical total returns method 1 for each Variable Sub-Account since it's corresponding Portfolio's inception through December 31, 2002. The adjusted historical total returns method 1 shown below do not reflect the withdrawal charge. The inception dates of the Portfolios are as follows: Inception Date f Corresponding Variable Sub-Account Portfolio o Inception AIM V.I. Balanced 05/01/98 AIM V.I. Capital Appreciation 05/05/93 AIM V.I. Core Equity 05/02/94 AIM V.I. Growth 05/05/93 AIM V.I. High Yield 05/01/98 AIM V.I. Premier Equity 05/05/93 Federated Prime Money Fund II 11/21/94 Fidelity VIP Contrafund - Service Class 2 01/04/95 Fidelity VIP Equity-Income - Service Class 2 10/10/86 Fidelity VIP Growth - Service Class 2 10/10/86 Fidelity VIP High Income - Service Class 2 09/20/85 Fidelity VIP Index 500 - Service Class 2 08/27/92 Fidelity VIP Overseas - Service Class 2 01/28/87 MFS Emerging Growth - Service Class 07/24/95 MFS Investors Trust - Service Class 10/09/95 MFS New Discovery - Service Class 05/01/98 MFS Research - Service Class 07/26/95 MFS Utilities - Service Class 01/03/95 Oppenheimer Aggressive Growth 08/15/86 Oppenheimer Capital Appreciation 04/03/85 Oppenheimer Global Securities 11/12/90 Oppenheimer Main Street 07/05/95 Oppenheimer Multiple Strategies 02/09/87 Oppenheimer Strategic Bond 05/03/93 Putnam Diversified Income 09/15/93 Putnam Growth and Income 02/01/88 Putnam Growth Opportunities 01/31/00 Putnam Health Sciences 04/30/98 Putnam New Value 01/02/97 Putnam Discovery Growth 09/29/00 STI Capital Appreciation 10/02/95 STI Growth and Income 12/31/99 STI International Equity 11/07/96 STI Investment Grade Bond 10/02/95 STI Mid-Cap Equity 10/02/95 STI Small Cap Value Equity 10/21/97 STI Value Income Stock 10/02/95 Templeton Global Income Securities - Class 2 01/24/89 Templeton Growth Securities - Class 2 03/15/94 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.21% N/A -2.46% AIM V.I. Capital Appreciation -25.37% -3.57% 5.88% AIM V.I. Core Equity(7) -16.72% -2.26% 6.40% AIM V.I. Growth -31.90% -9.26% 2.41% AIM V.I. High Yield -7.10% N/A -7.50% AIM V.I. Premier Equity -31.20% -3.50% 6.39% Federated Prime Money Fund II 0.04% 2.70% 6.05% Fidelity VIP Contrafund - Service Class 2(2) -10.82% 2.03% 10.46% Fidelity VIP Equity-Income - Service Class 2(2) -18.26% -1.32% 8.02% Fidelity VIP Growth - Service Class 2(2) -31.23% -1.99% 6.69% Fidelity VIP High Income - Service Class 2(2) 1.91% -7.57% 1.79% Fidelity VIP Index 500 - Service Class 2(2) -23.49% -2.42% 7.31% Fidelity VIP Overseas - Service Class 2(2) -21.52% -5.89% 2.70% MFS Emerging Growth - Service Class(3) -34.47% -5.22% 2.86% MFS Investors Trust - Service Class(3)(9) -22.21% -4.59% 3.87% MFS New Discovery - Service Class(3) -32.72% N/A 0.59% MFS Research - Service Class(3) -25.73% -5.58% 2.20% MFS Utilities - Service Class(3) -23.93% -3.40% 6.69% Oppenheimer Aggressive Growth -28.76% -3.21% 5.22% Oppenheimer Capital Appreciation -27.84% 0.93% 8.68% Oppenheimer Global Securities -23.18% 4.00% 10.41% Oppenheimer Main Street(4) -19.89% -4.54% 7.21% Oppenheimer Multiple Strategies -11.60% 1.67% 6.61% Oppenheimer Strategic Bond 6.00% 2.72% 4.38% Putnam Diversified Income(5) 4.48% 0.48% 2.94% Putnam Growth and Income(5) -20.07% -2.20% 7.02% Putnam Growth Opportunities(5) -30.44% N/A -29.64% Putnam Health Sciences(5) -21.41% N/A -2.79% Putnam New Value(5) -16.74% 1.19% 3.50% Putnam Discovery Growth(5)(6) -30.52% N/A -37.48% STI Capital Appreciation(8) -22.94% -0.02% 8.03% STI Growth and Income -21.66% N/A -7.66% STI International Equity -19.68% -6.05% -2.49% STI Investment Grade Bond 5.96% 4.58% 4.76% STI Mid-Cap Equity -29.41% -4.02% 2.03% STI Small Cap Value Equity -2.52% 3.15% 2.57% STI Value Income Stock -18.10% -2.05% 4.87% Templeton Global Income Securities - Class 2(1)(10) 19.52% 3.88% 4.78% Templeton Growth Securities - Class 2(1)(10) -19.58% 0.04% 4.79% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.42% N/A -2.70% AIM V.I. Capital Appreciation -25.56% -3.81% 5.61% AIM V.I. Core Equity(7) -16.92% -2.51% 6.14% AIM V.I. Growth -32.07% -9.48% 2.15% AIM V.I. High Yield -7.33% N/A -7.73% AIM V.I. Premier Equity -31.37% -3.75% 6.12% Federated Prime Money Fund II -0.21% 2.45% 5.79% Fidelity VIP Contrafund - Service Class 2(2) -11.04% 1.78% 10.19% Fidelity VIP Equity-Income - Service Class 2(2) -18.47% -1.56% 7.75% Fidelity VIP Growth - Service Class 2(2) -31.40% -2.23% 6.42% Fidelity VIP High Income - Service Class 2(2) 1.66% -7.80% 1.53% Fidelity VIP Index 500 - Service Class 2(2) -23.68% -2.66% 7.04% Fidelity VIP Overseas - Service Class 2(2) -21.72% -6.13% 2.44% MFS Emerging Growth - Service Class(3) -34.63% -5.46% 2.60% MFS Investors Trust - Service Class(3)(9) -22.41% -4.82% 3.61% MFS New Discovery - Service Class(3) -32.89% N/A 0.34% MFS Research - Service Class(3) -25.92% -5.82% 1.95% MFS Utilities - Service Class(3) -24.12% -3.64% 6.43% Oppenheimer Aggressive Growth -28.94% -3.45% 4.96% Oppenheimer Capital Appreciation -28.02% 0.68% 8.41% Oppenheimer Global Securities -23.37% 3.74% 10.14% Oppenheimer Main Street(4) -20.09% -4.78% 6.94% Oppenheimer Multiple Strategies -11.82% 1.42% 6.35% Oppenheimer Strategic Bond 5.74% 2.46% 4.12% Putnam Diversified Income(5) 4.22% 0.23% 2.69% Putnam Growth and Income(5) -20.27% -2.44% 6.75% Putnam Growth Opportunities(5) -30.61% N/A -29.81% Putnam Health Sciences(5) -21.61% N/A -3.03% Putnam New Value(5) -16.94% 0.94% 3.24% Putnam Discovery Growth(5)(6) -30.70% N/A -37.64% STI Capital Appreciation(8) -23.13% -0.27% 7.76% STI Growth and Income -21.85% N/A -7.89% STI International Equity -19.88% -6.29% -2.74% STI Investment Grade Bond 5.70% 4.32% 4.50% STI Mid-Cap Equity -29.59% -4.26% 1.77% STI Small Cap Value Equity -2.77% 2.92% 2.34% STI Value Income Stock -18.30% -2.30% 4.61% Templeton Global Income Securities - Class 2(1)(10) 19.23% 3.62% 4.52% Templeton Growth Securities - Class 2(1)(10) -19.78% -0.21% 4.53% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.62% N/A -2.94% AIM V.I. Capital Appreciation -25.74% -4.05% 5.35% AIM V.I. Core Equity(7) -17.13% -2.75% 5.87% AIM V.I. Growth -32.24% -9.71% 1.90% AIM V.I. High Yield -7.56% N/A -7.96% AIM V.I. Premier Equity -31.54% -3.99% 5.86% Federated Prime Money Fund II -0.46% 2.19% 5.53% Fidelity VIP Contrafund - Service Class 2(2) -11.26% 1.52% 9.91% Fidelity VIP Equity-Income - Service Class 2(2) -18.67% -1.81% 7.48% Fidelity VIP Growth - Service Class 2(2) -31.58% -2.47% 6.15% Fidelity VIP High Income - Service Class 2(2) 1.41% -8.03% 1.28% Fidelity VIP Index 500 - Service Class 2(2) -23.87% -2.91% 6.78% Fidelity VIP Overseas - Service Class 2(2) -21.92% -6.36% 2.19% MFS Emerging Growth - Service Class(3) -34.80% -5.69% 2.35% MFS Investors Trust - Service Class(3)(9) -22.60% -5.06% 3.35% MFS New Discovery - Service Class(3) -33.05% N/A 0.09% MFS Research - Service Class(3) -26.10% -6.05% 1.69% MFS Utilities - Service Class(3) -24.31% -3.88% 6.16% Oppenheimer Aggressive Growth -29.12% -3.69% 4.69% Oppenheimer Capital Appreciation -28.20% 0.43% 8.13% Oppenheimer Global Securities -23.56% 3.48% 9.86% Oppenheimer Main Street(4) -20.29% -5.02% 6.68% Oppenheimer Multiple Strategies -12.04% 1.17% 6.08% Oppenheimer Strategic Bond 5.47% 2.20% 3.86% Putnam Diversified Income(5) 3.96% -0.02% 2.43% Putnam Growth and Income(5) -20.47% -2.68% 6.48% Putnam Growth Opportunities(5) -30.78% N/A -29.99% Putnam Health Sciences(5) -21.80% N/A -3.27% Putnam New Value(5) -17.15% 0.69% 2.99% Putnam Discovery Growth(5)(6) -30.87% N/A -37.79% STI Capital Appreciation(8) -23.32% -0.52% 7.50% STI Growth and Income -22.05% N/A -8.12% STI International Equity -20.08% -6.52% -2.98% STI Investment Grade Bond 5.43% 4.06% 4.24% STI Mid-Cap Equity -29.77% -4.50% 1.52% STI Small Cap Value Equity -3.01% 2.68% 2.10% STI Value Income Stock -18.51% -2.54% 4.35% Templeton Global Income Securities - Class 2(1)(10) 18.93% 3.36% 4.26% Templeton Growth Securities - Class 2(1)(10) -19.98% -0.46% 4.27% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.56% N/A -2.79% AIM V.I. Capital Appreciation -25.72% -3.85% 5.67% AIM V.I. Core Equity(7) -17.07% -2.55% 6.18% AIM V.I. Growth -32.25% -9.56% 2.19% AIM V.I. High Yield -7.45% N/A -7.93% AIM V.I. Premier Equity -31.55% -3.78% 6.18% Federated Prime Money Fund II -0.31% 2.37% 5.76% Fidelity VIP Contrafund - Service Class 2(2) -11.17% 1.76% 10.28% Fidelity VIP Equity-Income - Service Class 2(2) -18.61% -1.63% 7.82% Fidelity VIP Growth - Service Class 2(2) -31.58% -2.24% 6.49% Fidelity VIP High Income - Service Class 2(2) 1.56% -7.98% 1.53% Fidelity VIP Index 500 - Service Class 2(2) -23.84% -2.71% 7.11% Fidelity VIP Overseas - Service Class 2(2) -21.87% -6.21% 2.48% MFS Emerging Growth - Service Class(3) -34.82% -5.48% 2.63% MFS Investors Trust - Service Class(3)(9) -22.56% -4.90% 3.61% MFS New Discovery - Service Class(3) -33.07% N/A 0.30% MFS Research - Service Class(3) -26.08% -5.89% 1.95% MFS Utilities - Service Class(3) -24.28% -3.69% 6.50% Oppenheimer Aggressive Growth -29.11% -3.48% 5.02% Oppenheimer Capital Appreciation -28.19% 0.67% 8.47% Oppenheimer Global Securities -23.53% 3.75% 10.24% Oppenheimer Main Street(4) -20.24% -4.87% 7.00% Oppenheimer Multiple Strategies -11.95% 1.36% 6.38% Oppenheimer Strategic Bond 5.65% 2.38% 4.07% Putnam Diversified Income(5) 4.13% 0.12% 2.61% Putnam Growth and Income(5) -20.42% -2.51% 6.81% Putnam Growth Opportunities(5) -30.79% N/A -30.15% Putnam Health Sciences(5) -21.76% N/A -3.13% Putnam New Value(5) -17.09% 0.88% 3.22% Putnam Discovery Growth(5)(6) -30.87% N/A -38.09% STI Capital Appreciation(8) -23.29% -0.30% 7.79% STI Growth and Income -22.01% N/A -8.00% STI International Equity -20.03% -6.39% -2.84% STI Investment Grade Bond 5.61% 4.26% 4.41% STI Mid-Cap Equity -29.76% -4.34% 1.74% STI Small Cap Value Equity -2.87% 2.78% 2.13% STI Value Income Stock -18.45% -2.38% 4.59% Templeton Global Income Securities - Class 2(1)(10) 19.17% 3.53% 4.49% Templeton Growth Securities - Class 2(1)(10) -19.93% -0.26% 4.53% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.77% N/A -3.03% AIM V.I. Capital Appreciation -25.91% -4.10% 5.41% AIM V.I. Core Equity(7) -17.27% -2.79% 5.92% AIM V.I. Growth -32.42% -9.79% 1.93% AIM V.I. High Yield -7.68% N/A -8.16% AIM V.I. Premier Equity -31.72% -4.02% 5.92% Federated Prime Money Fund II -0.56% 2.12% 5.49% Fidelity VIP Contrafund - Service Class 2(2) -11.39% 1.50% 10.00% Fidelity VIP Equity-Income - Service Class 2(2) -18.82% -1.88% 7.55% Fidelity VIP Growth - Service Class 2(2) -31.75% -2.49% 6.22% Fidelity VIP High Income - Service Class 2(2) 1.31% -8.22% 1.27% Fidelity VIP Index 500 - Service Class 2(2) -24.03% -2.95% 6.84% Fidelity VIP Overseas - Service Class 2(2) -22.07% -6.45% 2.22% MFS Emerging Growth - Service Class(3) -34.98% -5.72% 2.38% MFS Investors Trust - Service Class(3)(9) -22.76% -5.14% 3.35% MFS New Discovery - Service Class(3) -33.24% N/A 0.05% MFS Research - Service Class(3) -26.27% -6.13% 1.69% MFS Utilities - Service Class(3) -24.47% -3.94% 6.23% Oppenheimer Aggressive Growth -29.29% -3.73% 4.75% Oppenheimer Capital Appreciation -28.37% 0.42% 8.20% Oppenheimer Global Securities -23.72% 3.49% 9.96% Oppenheimer Main Street(4) -20.44% -5.11% 6.73% Oppenheimer Multiple Strategies -12.17% 1.10% 6.11% Oppenheimer Strategic Bond 5.39% 2.12% 3.81% Putnam Diversified Income(5) 3.87% -0.13% 2.35% Putnam Growth and Income(5) -20.62% -2.76% 6.54% Putnam Growth Opportunities(5) -30.96% N/A -30.33% Putnam Health Sciences(5) -21.96% N/A -3.37% Putnam New Value(5) -17.29% 0.62% 2.96% Putnam Discovery Growth(5)(6) -31.05% N/A -38.25% STI Capital Appreciation(8) -23.48% -0.56% 7.52% STI Growth and Income -22.20% N/A -8.24% STI International Equity -20.23% -6.63% -3.09% STI Investment Grade Bond 5.35% 3.99% 4.15% STI Mid-Cap Equity -29.94% -4.58% 1.48% STI Small Cap Value Equity -3.12% 2.54% 1.90% STI Value Income Stock -18.65% -2.63% 4.33% Templeton Global Income Securities - Class 2(1)(10) 18.88% 3.26% 4.22% Templeton Growth Securities - Class 2(1)(10) -20.13% -0.51% 4.27% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -18.97% N/A -3.28% AIM V.I. Capital Appreciation -26.09% -4.34% 5.14% AIM V.I. Core Equity(7) -17.48% -3.04% 5.65% AIM V.I. Growth -32.59% -10.02% 1.67% AIM V.I. High Yield -7.91% N/A -8.40% AIM V.I. Premier Equity -31.89% -4.27% 5.65% Federated Prime Money Fund II -0.81% 1.86% 5.22% Fidelity VIP Contrafund - Service Class 2(2) -11.61% 1.25% 9.73% Fidelity VIP Equity-Income - Service Class 2(2) -19.02% -2.13% 7.28% Fidelity VIP Growth - Service Class 2(2) -31.93% -2.74% 5.96% Fidelity VIP High Income - Service Class 2(2) 1.06% -8.45% 1.01% Fidelity VIP Index 500 - Service Class 2(2) -24.22% -3.20% 6.57% Fidelity VIP Overseas - Service Class 2(2) -22.27% -6.68% 1.96% MFS Emerging Growth - Service Class(3) -35.15% -5.96% 2.12% MFS Investors Trust - Service Class(3)(9) -22.95% -5.38% 3.09% MFS New Discovery - Service Class(3) -33.40% N/A -0.20% MFS Research - Service Class(3) -26.45% -6.36% 1.44% MFS Utilities - Service Class(3) -24.66% -4.18% 5.97% Oppenheimer Aggressive Growth -29.47% -3.97% 4.49% Oppenheimer Capital Appreciation -28.55% 0.17% 7.93% Oppenheimer Global Securities -23.91% 3.23% 9.69% Oppenheimer Main Street(4) -20.64% -5.35% 6.46% Oppenheimer Multiple Strategies -12.39% 0.85% 5.84% Oppenheimer Strategic Bond 5.12% 1.86% 3.54% Putnam Diversified Income(5) 3.61% -0.39% 2.09% Putnam Growth and Income(5) -20.82% -3.00% 6.27% Putnam Growth Opportunities(5) -31.13% N/A -30.50% Putnam Health Sciences(5) -22.15% N/A -3.62% Putnam New Value(5) -17.50% 0.37% 2.70% Putnam Discovery Growth(5)(6) -31.22% N/A -38.41% STI Capital Appreciation(8) -23.67% -0.81% 7.25% STI Growth and Income -22.40% N/A -8.47% STI International Equity -20.43% -6.87% -3.33% STI Investment Grade Bond 5.08% 3.73% 3.89% STI Mid-Cap Equity -30.12% -4.82% 1.22% STI Small Cap Value Equity -3.36% 2.30% 1.66% STI Value Income Stock -18.86% -2.88% 4.07% Templeton Global Income Securities - Class 2(1)(10) 18.58% 3.00% 3.96% Templeton Growth Securities - Class 2(1)(10) -20.33% -0.76% 4.00%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (4) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (5) Each of the Portfolios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (6) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (7) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (8) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (9) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. ADJUSTED HISTORICAL METHOD 2 Set out below are the adjusted historical total returns using Method 2 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are listed under "Adjusted Historical Method 1" (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -23.39% N/A -3.55% AIM V.I. Capital Appreciation -30.55% -4.43% 5.83% AIM V.I. Core Equity(7) -21.89% -3.08% 6.36% AIM V.I. Growth -37.08% -10.35% 2.36% AIM V.I. High Yield -12.28% N/A -8.84% AIM V.I. Premier Equity -36.37% -4.37% 6.34% Federated Prime Money Fund II -5.14% 2.01% 5.99% Fidelity VIP Contrafund - Service Class 2(2) -15.99% 1.34% 10.42% Fidelity VIP Equity-Income - Service Class 2(2) -23.44% -2.12% 7.98% Fidelity VIP Growth - Service Class 2(2) -36.41% -2.79% 6.64% Fidelity VIP High Income - Service Class 2(2) -3.26% -8.62% 1.73% Fidelity VIP Index 500 - Service Class 2(2) -28.67% -3.25% 7.27% Fidelity VIP Overseas - Service Class 2(2) -26.70% -6.85% 2.65% MFS Emerging Growth - Service Class(3) -39.65% -6.14% 2.81% MFS Investors Trust - Service Class(3)(9) -27.39% -5.49% 3.81% MFS New Discovery - Service Class(3) -37.89% N/A -0.38% MFS Research - Service Class(3) -30.91% -6.53% 2.15% MFS Utilities - Service Class(3) -29.11% -4.26% 6.65% Oppenheimer Aggressive Growth -33.94% -4.06% 5.17% Oppenheimer Capital Appreciation -33.02% 0.21% 8.63% Oppenheimer Global Securities -28.36% 3.36% 10.37% Oppenheimer Main Street(4) -25.07% -5.45% 7.17% Oppenheimer Multiple Strategies -16.78% 0.96% 6.56% Oppenheimer Strategic Bond 0.82% 2.02% 4.31% Putnam Diversified Income(5) -0.69% -0.28% 2.87% Putnam Growth and Income(5) -25.25% -3.02% 6.97% Putnam Growth Opportunities(5) -35.62% N/A -33.37% Putnam Health Sciences(5) -26.59% N/A -3.90% Putnam New Value(5) -21.91% 0.46% 2.96% Putnam Discovery Growth(5)(6) -35.70% N/A -41.89% STI Capital Appreciation(8) -28.11% -0.78% 7.98% STI Growth and Income -26.84% N/A -9.43% STI International Equity -24.86% -7.02% -3.05% STI Investment Grade Bond 0.78% 3.94% 4.68% STI Mid-Cap Equity -34.59% -4.91% 1.96% STI Small Cap Value Equity -7.70% 2.46% 1.88% STI Value Income Stock -23.28% -2.88% 4.81% Templeton Global Income Securities - Class 2(1)(10) 14.35% 3.21% 4.71% Templeton Growth Securities - Class 2(1)(10) -24.76% -0.71% 4.73% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -23.59% N/A -3.80% AIM V.I. Capital Appreciation -30.74% -4.68% 5.57% AIM V.I. Core Equity(7) -22.10% -3.34% 6.09% AIM V.I. Growth -37.25% -10.59% 2.10% AIM V.I. High Yield -12.51% N/A -9.09% AIM V.I. Premier Equity -36.55% -4.61% 6.08% Federated Prime Money Fund II -5.38% 1.75% 5.72% Fidelity VIP Contrafund - Service Class 2(2) -16.22% 1.07% 10.15% Fidelity VIP Equity-Income - Service Class 2(2) -23.65% -2.37% 7.71% Fidelity VIP Growth - Service Class 2(2) -36.58% -3.05% 6.38% Fidelity VIP High Income - Service Class 2(2) -3.52% -8.86% 1.48% Fidelity VIP Index 500 - Service Class 2(2) -28.86% -3.50% 7.00% Fidelity VIP Overseas - Service Class 2(2) -26.90% -7.09% 2.39% MFS Emerging Growth - Service Class(3) -39.81% -6.38% 2.55% MFS Investors Trust - Service Class(3)(9) -27.58% -5.74% 3.55% MFS New Discovery - Service Class(3) -38.06% N/A -0.64% MFS Research - Service Class(3) -31.09% -6.77% 1.89% MFS Utilities - Service Class(3) -29.30% -4.51% 6.39% Oppenheimer Aggressive Growth -34.12% -4.31% 4.91% Oppenheimer Capital Appreciation -33.20% -0.05% 8.36% Oppenheimer Global Securities -28.55% 3.09% 10.10% Oppenheimer Main Street(4) -25.27% -5.70% 6.90% Oppenheimer Multiple Strategies -17.00% 0.70% 6.29% Oppenheimer Strategic Bond 0.56% 1.76% 4.05% Putnam Diversified Income(5) -0.95% -0.54% 2.61% Putnam Growth and Income(5) -25.45% -3.28% 6.70% Putnam Growth Opportunities(5) -35.79% N/A -33.56% Putnam Health Sciences(5) -26.79% N/A -4.15% Putnam New Value(5) -22.12% 0.20% 2.69% Putnam Discovery Growth(5)(6) -35.88% N/A -42.06% STI Capital Appreciation(8) -28.31% -1.03% 7.71% STI Growth and Income -27.03% N/A -9.67% STI International Equity -25.06% -7.26% -3.30% STI Investment Grade Bond 0.52% 3.67% 4.42% STI Mid-Cap Equity -34.77% -5.16% 1.71% STI Small Cap Value Equity -7.94% 2.22% 1.64% STI Value Income Stock -23.48% -3.13% 4.55% Templeton Global Income Securities - Class 2(1)(10) 14.05% 2.94% 4.45% Templeton Growth Securities - Class 2(1)(10) -24.96% -0.97% 4.47% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -23.80% N/A -4.05% AIM V.I. Capital Appreciation -30.92% -4.93% 5.30% AIM V.I. Core Equity(7) -22.31% -3.59% 5.82% AIM V.I. Growth -37.42% -10.83% 1.85% AIM V.I. High Yield -12.74% N/A -9.33% AIM V.I. Premier Equity -36.72% -4.86% 5.81% Federated Prime Money Fund II -5.63% 1.49% 5.46% Fidelity VIP Contrafund - Service Class 2(2) -16.44% 0.81% 9.87% Fidelity VIP Equity-Income - Service Class 2(2) -23.85% -2.63% 7.44% Fidelity VIP Growth - Service Class 2(2) -36.75% -3.30% 6.11% Fidelity VIP High Income - Service Class 2(2) -3.77% -9.10% 1.22% Fidelity VIP Index 500 - Service Class 2(2) -29.05% -3.75% 6.73% Fidelity VIP Overseas - Service Class 2(2) -27.09% -7.34% 2.14% MFS Emerging Growth - Service Class(3) -39.97% -6.63% 2.30% MFS Investors Trust - Service Class(3)(9) -27.78% -5.99% 3.29% MFS New Discovery - Service Class(3) -38.23% N/A -0.90% MFS Research - Service Class(3) -31.28% -7.02% 1.64% MFS Utilities - Service Class(3) -29.49% -4.76% 6.12% Oppenheimer Aggressive Growth -34.29% -4.56% 4.65% Oppenheimer Capital Appreciation -33.38% -0.31% 8.09% Oppenheimer Global Securities -28.74% 2.82% 9.82% Oppenheimer Main Street(4) -25.47% -5.94% 6.63% Oppenheimer Multiple Strategies -17.22% 0.44% 6.03% Oppenheimer Strategic Bond 0.30% 1.50% 3.79% Putnam Diversified Income(5) -1.21% -0.79% 2.35% Putnam Growth and Income(5) -25.65% -3.53% 6.43% Putnam Growth Opportunities(5) -35.96% N/A -33.76% Putnam Health Sciences(5) -26.98% N/A -4.40% Putnam New Value(5) -22.33% -0.06% 2.43% Putnam Discovery Growth(5)(6) -36.05% N/A -42.23% STI Capital Appreciation(8) -28.50% -1.29% 7.44% STI Growth and Income -27.23% N/A -9.91% STI International Equity -25.26% -7.51% -3.55% STI Investment Grade Bond 0.25% 3.40% 4.16% STI Mid-Cap Equity -34.94% -5.40% 1.45% STI Small Cap Value Equity -8.19% 1.97% 1.39% STI Value Income Stock -23.69% -3.38% 4.29% Templeton Global Income Securities - Class 2(1)(10) 13.75% 2.67% 4.19% Templeton Growth Securities - Class 2(1)(10) -25.16% -1.23% 4.21% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -23.74% N/A -3.89% AIM V.I. Capital Appreciation -30.90% -4.73% 5.62% AIM V.I. Core Equity(7) -22.24% -3.38% 6.13% AIM V.I. Growth -37.43% -10.67% 2.14% AIM V.I. High Yield -12.63% N/A -9.30% AIM V.I. Premier Equity -36.72% -4.65% 6.14% Federated Prime Money Fund II -5.49% 1.67% 5.69% Fidelity VIP Contrafund - Service Class 2(2) -16.34% 1.05% 10.24% Fidelity VIP Equity-Income - Service Class 2(2) -23.79% -2.44% 7.78% Fidelity VIP Growth - Service Class 2(2) -36.76% -3.06% 6.45% Fidelity VIP High Income - Service Class 2(2) -3.61% -9.05% 1.47% Fidelity VIP Index 500 - Service Class 2(2) -29.02% -3.54% 7.06% Fidelity VIP Overseas - Service Class 2(2) -27.05% -7.18% 2.43% MFS Emerging Growth - Service Class(3) -40.00% -6.41% 2.58% MFS Investors Trust - Service Class(3)(9) -27.74% -5.82% 3.55% MFS New Discovery - Service Class(3) -38.24% N/A -0.68% MFS Research - Service Class(3) -31.26% -6.84% 1.89% MFS Utilities - Service Class(3) -29.46% -4.57% 6.46% Oppenheimer Aggressive Growth -34.29% -4.34% 4.97% Oppenheimer Capital Appreciation -33.37% -0.06% 8.43% Oppenheimer Global Securities -28.71% 3.10% 10.20% Oppenheimer Main Street(4) -25.42% -5.80% 6.95% Oppenheimer Multiple Strategies -17.13% 0.64% 6.32% Oppenheimer Strategic Bond 0.47% 1.67% 4.00% Putnam Diversified Income(5) -1.04% -0.65% 2.53% Putnam Growth and Income(5) -25.60% -3.35% 6.76% Putnam Growth Opportunities(5) -35.97% N/A -33.94% Putnam Health Sciences(5) -26.94% N/A -4.25% Putnam New Value(5) -22.26% 0.14% 2.66% Putnam Discovery Growth(5)(6) -36.05% N/A -42.56% STI Capital Appreciation(8) -28.46% -1.07% 7.74% STI Growth and Income -27.19% N/A -9.79% STI International Equity -25.21% -7.37% -3.41% STI Investment Grade Bond 0.43% 3.60% 4.34% STI Mid-Cap Equity -34.94% -5.24% 1.67% STI Small Cap Value Equity -8.05% 2.08% 1.43% STI Value Income Stock -23.63% -3.22% 4.53% Templeton Global Income Securities - Class 2(1)(10) 14.00% 2.85% 4.42% Templeton Growth Securities - Class 2(1)(10) -25.11% -1.03% 4.47% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -23.94% N/A -4.15% AIM V.I. Capital Appreciation -31.09% -4.98% 5.36% AIM V.I. Core Equity(7) -22.45% -3.64% 5.87% AIM V.I. Growth -37.60% -10.92% 1.88% AIM V.I. High Yield -12.86% N/A -9.54% AIM V.I. Premier Equity -36.90% -4.90% 5.87% Federated Prime Money Fund II -5.73% 1.41% 5.42% Fidelity VIP Contrafund - Service Class 2(2) -16.57% 0.79% 9.96% Fidelity VIP Equity-Income - Service Class 2(2) -24.00% -2.70% 7.51% Fidelity VIP Growth - Service Class 2(2) -36.93% -3.31% 6.18% Fidelity VIP High Income - Service Class 2(2) -3.87% -9.29% 1.21% Fidelity VIP Index 500 - Service Class 2(2) -29.21% -3.80% 6.79% Fidelity VIP Overseas - Service Class 2(2) -27.25% -7.43% 2.17% MFS Emerging Growth - Service Class(3) -40.16% -6.66% 2.32% MFS Investors Trust - Service Class(3)(9) -27.93% -6.07% 3.29% MFS New Discovery - Service Class(3) -38.41% N/A -0.94% MFS Research - Service Class(3) -31.44% -7.09% 1.63% MFS Utilities - Service Class(3) -29.65% -4.82% 6.19% Oppenheimer Aggressive Growth -34.47% -4.59% 4.71% Oppenheimer Capital Appreciation -33.55% -0.32% 8.16% Oppenheimer Global Securities -28.90% 2.83% 9.92% Oppenheimer Main Street(4) -25.62% -6.04% 6.68% Oppenheimer Multiple Strategies -17.35% 0.37% 6.05% Oppenheimer Strategic Bond 0.21% 1.41% 3.74% Putnam Diversified Income(5) -1.30% -0.91% 2.27% Putnam Growth and Income(5) -25.80% -3.61% 6.49% Putnam Growth Opportunities(5) -36.14% N/A -34.13% Putnam Health Sciences(5) -27.14% N/A -4.51% Putnam New Value(5) -22.47% -0.12% 2.39% Putnam Discovery Growth(5)(6) -36.23% N/A -42.73% STI Capital Appreciation(8) -28.66% -1.33% 7.47% STI Growth and Income -27.38% N/A -10.03% STI International Equity -25.41% -7.62% -3.66% STI Investment Grade Bond 0.17% 3.33% 4.07% STI Mid-Cap Equity -35.12% -5.49% 1.41% STI Small Cap Value Equity -8.29% 1.83% 1.18% STI Value Income Stock -23.83% -3.48% 4.27% Templeton Global Income Securities - Class 2(1)(10) 13.70% 2.58% 4.16% Templeton Growth Securities - Class 2(1)(10) -25.31% -1.28% 4.21% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Balanced -24.15% N/A -4.40% AIM V.I. Capital Appreciation -31.27% -5.23% 5.09% AIM V.I. Core Equity(7) -22.66% -3.89% 5.60% AIM V.I. Growth -37.77% -11.15% 1.62% AIM V.I. High Yield -13.09% N/A -9.79% AIM V.I. Premier Equity -37.07% -5.16% 5.60% Federated Prime Money Fund II -5.98% 1.14% 5.16% Fidelity VIP Contrafund - Service Class 2(2) -16.79% 0.53% 9.69% Fidelity VIP Equity-Income - Service Class 2(2) -24.20% -2.96% 7.23% Fidelity VIP Growth - Service Class 2(2) -37.10% -3.57% 5.91% Fidelity VIP High Income - Service Class 2(2) -4.12% -9.54% 0.95% Fidelity VIP Index 500 - Service Class 2(2) -29.40% -4.05% 6.52% Fidelity VIP Overseas - Service Class 2(2) -27.44% -7.67% 1.91% MFS Emerging Growth - Service Class(3) -40.32% -6.91% 2.07% MFS Investors Trust - Service Class(3)(9) -28.13% -6.32% 3.03% MFS New Discovery - Service Class(3) -38.58% N/A -1.20% MFS Research - Service Class(3) -31.63% -7.34% 1.38% MFS Utilities - Service Class(3) -29.84% -5.07% 5.92% Oppenheimer Aggressive Growth -34.64% -4.84% 4.44% Oppenheimer Capital Appreciation -33.73% -0.58% 7.88% Oppenheimer Global Securities -29.09% 2.56% 9.65% Oppenheimer Main Street(4) -25.82% -6.29% 6.41% Oppenheimer Multiple Strategies -17.57% 0.11% 5.79% Oppenheimer Strategic Bond -0.05% 1.14% 3.47% Putnam Diversified Income(5) -1.56% -1.17% 2.01% Putnam Growth and Income(5) -26.00% -3.86% 6.22% Putnam Growth Opportunities(5) -36.31% N/A -34.33% Putnam Health Sciences(5) -27.33% N/A -4.76% Putnam New Value(5) -22.68% -0.39% 2.13% Putnam Discovery Growth(5)(6) -36.40% N/A -42.90% STI Capital Appreciation(8) -28.85% -1.58% 7.20% STI Growth and Income -27.58% N/A -10.27% STI International Equity -25.61% -7.87% -3.91% STI Investment Grade Bond -0.10% 3.06% 3.81% STI Mid-Cap Equity -35.29% -5.74% 1.16% STI Small Cap Value Equity -8.54% 1.59% 0.94% STI Value Income Stock -24.04% -3.73% 4.01% Templeton Global Income Securities - Class 2(1)(10) 13.40% 2.31% 3.89% Templeton Growth Securities - Class 2(1)(10) -25.51% -1.54% 3.95%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (4) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (5) Each of the Portfoilios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (6) Effective 5/1/03 the Putnam VT Voyager II Fund changed its name to Putnam VT Discovery Growth Fund. (7) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (8) Effective 9/6/02, the STI Quality Growth Stock Fund merged into the STI Capital Appreciation Fund. Performance shown for the STI Capital Appreciation Sub-Account is based on the performance of the STI Capital Appreciation Portfolio. (9) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. APPENDIX 3 PERFORMANCE INFORMATION FOR ALLSTATE(R)PROVIDER EXTRA CONTRACTS Allstate Provider Extra Contracts were first offered to the public on November 2, 2001. Accordingly, performance shown for periods prior to that date reflects the performance of the Variable Sub-Accounts, adjusted to reflect the current charges under the Contracts that would have applied had they been in existence at the time. (Adjusted historical total returns are computed from the Portfolio's inception date as described below.) These Contract charges include a maximum withdrawal charge of 8% that declines to zero after eight years (not reflected in non-standardized total returns), an annual contract maintenance charge of $35 (not shown for adjusted historical returns method 1), and total Variable Account annual expenses of: : 1.50% (without any optional benefit riders), or 1.75% with the Enhanced Death Benefit Rider or Income Benefit Rider, or 2.00% with the Enhanced Death Benefit Rider and Income Benefit Rider. In addition, where the Enhanced Earnings Death Benefit Rider is included, the performance shown reflects the deduction of the annual Rider fee equal to 0.35% of the Contract Value (assumes age 66-75). See the Expense Table in the Prospectus for more details. The standardized total returns shown below also include the 4% credit enhancement available under the Allstate Provider Extra Contract. STANDARDIZED TOTAL RETURNS Set out below are the standardized total returns for each Variable Sub-Account since its inception through December 31, 2002. The inception dates of the Variable Sub-Accounts are as follows: Sub-Account Variable Sub-Account Inception AIM V.I. Aggressive Growth 05/01/01 AIM V.I. Balanced 11/09/98 AIM V.I. Capital Appreciation 01/26/98 AIM V.I. Core Equity 01/26/98 AIM V.I. Dent Demographic Trends 05/01/01 AIM V.I. Diversified Income 01/26/98 AIM V.I. Growth 01/26/98 AIM V.I. International Growth 01/26/98 AIM V.I. Premier Equity 01/26/98 Dreyfus Socially Responsible Growth 06/17/97 Dreyfus Stock Index 01/26/98 Dreyfus VIF - Growth & Income 06/17/97 Dreyfus VIF - Money Market 06/17/97 Fidelity VIP Asset Manager: Growth - Service Class 2 05/01/01 Fidelity VIP Contrafund - Service Class 2 05/01/01 Fidelity VIP Equity-Income - Service Class 2 05/01/01 Fidelity VIP Growth - Service Class 2 05/01/01 Fidelity VIP High Income - Service Class 2 05/01/01 LSA Diversified Mid-Cap 05/01/02 Putnam Health Sciences 05/01/01 Van Kampen UIF U.S. Real Estate 11/09/98 Goldman Sachs VIT CORE Small Cap Equity 11/09/98 Goldman Sachs VIT CORE U.S. Equity 11/09/98 LSA Equity Growth 05/01/01 LSA Capital Growth 05/01/01 MFS Emerging Growth - Service Class 05/01/01 MFS Investors Trust - Service Class 05/01/01 MFS New Discovery - Service Class 05/01/01 MFS Research - Service Class 05/01/01 MFS Utilities - Service Class 05/01/01 Oppenheimer Aggressive Growth 11/01/99 Oppenheimer Capital Appreciation 11/01/99 Oppenheimer Global Securities 11/01/99 Oppenheimer Main Street 11/01/99 Oppenheimer Strategic Bond 11/01/99 Putnam Growth and Income 05/01/01 Putnam Growth Opportunities 05/01/01 Putnam International Equity 09/21/01 Putnam New Value 05/01/01 Putnam Research 09/21/01 Van Kampen UIF Core Plus Fixed Income 11/09/98 Van Kampen UIF Global Value Equity 11/09/98 Van Kampen UIF U.S. Mid Cap Core 11/09/98 Van Kampen UIF Value 11/09/98 Franklin Small Cap - Class 2 11/01/99 Franklin Technology Securities - Class 2 05/01/01 Mutual Shares Securities - Class 2 11/01/99 Templeton Developing Markets Securities - Class 2 11/01/99 Templeton Foreign Securities - Class 2 11/01/99 SHELF (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -30.69% N/A -27.36% AIM V.I. Balanced -25.21% N/A -5.40% AIM V.I. Capital Appreciation -32.36% N/A -4.05% AIM V.I. Core Equity(6) -23.71% N/A -3.19% AIM V.I. Dent Demographic Trends -40.09% N/A -34.32% AIM V.I. Diversified Income -6.10% N/A -1.20% AIM V.I. Growth -38.87% N/A -10.79% AIM V.I. International Growth -23.80% N/A -5.97% AIM V.I. Premier Equity -38.17% N/A -4.62% Dreyfus Socially Responsible Growth -36.88% -6.38% -4.33% Dreyfus Stock Index -30.39% N/A -3.37% Dreyfus VIF - Growth & Income -33.31% -4.84% -3.32% Dreyfus VIF - Money Market -6.92% 1.77% 1.95% Fidelity VIP Asset Manager: Growth - Service Class 2 -23.95% N/A -18.05% Fidelity VIP Contrafund - Service Class 2 -17.82% N/A -14.32% Fidelity VIP Equity-Income - Service Class 2 -25.26% N/A -19.61% Fidelity VIP Growth - Service Class 2 -38.21% N/A -31.94% Fidelity VIP High Income - Service Class 2 -5.11% N/A -9.46% LSA Diversified Mid-Cap* N/A N/A -29.10% Putnam Health Sciences -28.40% N/A -20.07% Van Kampen UIF U.S. Real Estate -9.14% N/A 6.04% Goldman Sachs VIT CORE Small Cap Equity -23.11% N/A 0.16% Goldman Sachs VIT CORE U.S. Equity -29.93% N/A -7.04% LSA Equity Growth (2) -37.73% N/A -29.39% LSA Capital Growth (2) -32.37% N/A -27.18% MFS Emerging Growth - Service Class -41.44% N/A -36.88% MFS Investors Trust - Service Class(7) -29.20% N/A -25.14% MFS New Discovery - Service Class -39.69% N/A -28.12% MFS Research - Service Class -32.72% N/A -29.55% MFS Utilities - Service Class -30.92% N/A -33.73% Oppenheimer Aggressive Growth -35.74% N/A -18.83% Oppenheimer Capital Appreciation -34.82% N/A -11.59% Oppenheimer Global Securities -30.17% N/A -5.36% Oppenheimer Main Street(3) -26.88% N/A -13.84% Oppenheimer Strategic Bond -1.03% N/A 1.87% Putnam Growth and Income -27.07% N/A -21.65% Putnam Growth Opportunities -37.41% N/A -34.76% Putnam International Equity(4) -25.77% N/A -8.75% Putnam New Value -23.73% N/A -17.47% Putnam Research -30.24% N/A -11.60% Van Kampen UIF Core Plus Fixed Income -1.14% N/A 4.35% Van Kampen UIF Global Value Equity -24.98% N/A -4.48% Van Kampen UIF U.S. Mid Cap Core(5) -35.97% N/A -2.33% Van Kampen UIF Value -30.19% N/A -3.48% Franklin Small Cap - Class 2(1) -36.62% N/A -11.26% Franklin Technology Securities - Class 2(1) -51.61% N/A -44.95% Mutual Shares Securities - Class 2(1) -20.00% N/A -1.13% Templeton Developing Markets Securities - Class 2 -8.51% N/A -12.17% Templeton Foreign Securities - Class 2 -26.65% N/A -12.42% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -30.88% N/A -27.56% AIM V.I. Balanced -25.41% N/A -5.65% AIM V.I. Capital Appreciation -32.54% N/A -4.31% AIM V.I. Core Equity (6) -23.92% N/A -3.45% AIM V.I. Dent Demographic Trends -40.25% N/A -34.50% AIM V.I. Diversified Income -6.35% N/A -1.46% AIM V.I. Growth -39.04% N/A -11.04% AIM V.I. International Growth -24.01% N/A -6.22% AIM V.I. Premier Equity -38.34% N/A -4.87% Dreyfus Socially Responsible Growth -37.05% -6.63% -4.59% Dreyfus Stock Index -30.58% N/A -3.63% Dreyfus VIF - Growth & Income -33.50% -5.09% -3.58% Dreyfus VIF - Money Market -7.17% 1.51% 1.69% Fidelity VIP Asset Manager: Growth - Service Class 2 -24.16% N/A -18.27% Fidelity VIP Contrafund - Service Class 2 -18.05% N/A -14.56% Fidelity VIP Equity-Income - Service Class 2 -25.46% N/A -19.83% Fidelity VIP Growth - Service Class 2 -38.38% N/A -32.13% Fidelity VIP High Income - Service Class 2 -5.37% N/A -9.71% LSA Diversified Mid-Cap* N/A N/A -29.23% Putnam Health Sciences -28.60% N/A -20.29% Van Kampen UIF U.S. Real Estate -9.38% N/A 5.76% Goldman Sachs VIT CORE Small Cap Equity -23.32% N/A -0.10% Goldman Sachs VIT CORE U.S. Equity -30.12% N/A -7.28% LSA Equity Growth (2) -37.91% N/A -29.59% LSA Capital Growth (2) -32.56% N/A -27.38% MFS Emerging Growth - Service Class -41.60% N/A -37.06% MFS Investors Trust - Service Class(7) -29.40% N/A -25.35% MFS New Discovery - Service Class -39.86% N/A -28.33% MFS Research - Service Class -32.90% N/A -29.75% MFS Utilities - Service Class -31.11% N/A -33.92% Oppenheimer Aggressive Growth -35.92% N/A -19.05% Oppenheimer Capital Appreciation -35.00% N/A -11.83% Oppenheimer Global Securities -30.36% N/A -5.61% Oppenheimer Main Street(3) -27.08% N/A -14.08% Oppenheimer Strategic Bond -1.29% N/A 1.60% Putnam Growth and Income -27.27% N/A -21.87% Putnam Growth Opportunities -37.59% N/A -34.94% Putnam International Equity(4) -25.97% N/A -9.00% Putnam New Value -23.94% N/A -17.69% Putnam Research -30.43% N/A -11.84% Van Kampen UIF Core Plus Fixed Income -1.41% N/A 4.08% Van Kampen UIF Global Value Equity -25.18% N/A -4.74% Van Kampen UIF U.S. Mid Cap Core(5) -36.15% N/A -2.59% Van Kampen UIF Value -30.38% N/A -3.73% Franklin Small Cap - Class 2(1) -36.80% N/A -11.50% Franklin Technology Securities - Class 2(1) -51.75% N/A -45.11% Mutual Shares Securities - Class 2(1) -20.22% N/A -1.39% Templeton Developing Markets Securities - Class 2 -8.75% N/A -12.41% Templeton Foreign Securities - Class 2 -26.85% N/A -12.66% * Performance figures are not annualized. (With the Enhanced Death Benefit Rider and Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -31.07% N/A -27.77% AIM V.I. Balanced -25.62% N/A -5.90% AIM V.I. Capital Appreciation -32.73% N/A -4.56% AIM V.I. Core Equity(6) -24.13% N/A -3.70% AIM V.I. Dent Demographic Trends -40.42% N/A -34.69% AIM V.I. Diversified Income -6.60% N/A -1.72% AIM V.I. Growth -39.21% N/A -11.28% AIM V.I. International Growth -24.22% N/A -6.47% AIM V.I. Premier Equity -38.52% N/A -5.12% Dreyfus Socially Responsible Growth -37.23% -6.87% -4.84% Dreyfus Stock Index -30.78% N/A -3.89% Dreyfus VIF - Growth & Income -33.68% -5.34% -3.83% Dreyfus VIF - Money Market -7.42% 1.24% 1.42% Fidelity VIP Asset Manager: Growth - Service Class 2 -24.37% N/A -18.50% Fidelity VIP Contrafund - Service Class 2 -18.27% N/A -14.79% Fidelity VIP Equity-Income - Service Class 2 -25.67% N/A -20.06% Fidelity VIP Growth - Service Class 2 -38.55% N/A -32.32% Fidelity VIP High Income - Service Class 2 -5.62% N/A -9.95% LSA Diversified Mid-Cap* N/A N/A -29.36% Putnam Health Sciences -28.79% N/A -20.51% Van Kampen UIF U.S. Real Estate -9.62% N/A 5.48% Goldman Sachs VIT CORE Small Cap Equity -23.53% N/A -0.36% Goldman Sachs VIT CORE U.S. Equity -30.32% N/A -7.53% LSA Equity Growth (2) -38.08% N/A -29.79% LSA Capital Growth (2) -32.74% N/A -27.58% MFS Emerging Growth - Service Class -41.77% N/A -37.24% MFS Investors Trust - Service Class(7) -29.59% N/A -25.55% MFS New Discovery - Service Class -40.03% N/A -28.53% MFS Research - Service Class -33.09% N/A -29.95% MFS Utilities - Service Class -31.30% N/A -34.11% Oppenheimer Aggressive Growth -36.10% N/A -19.28% Oppenheimer Capital Appreciation -35.18% N/A -12.07% Oppenheimer Global Securities -30.55% N/A -5.86% Oppenheimer Main Street(3) -27.28% N/A -14.32% Oppenheimer Strategic Bond -1.56% N/A 1.33% Putnam Growth and Income -27.47% N/A -22.08% Putnam Growth Opportunities -37.76% N/A -35.13% Putnam International Equity(4) -26.17% N/A -9.24% Putnam New Value -24.15% N/A -17.92% Putnam Research -30.62% N/A -12.08% Van Kampen UIF Core Plus Fixed Income -1.67% N/A 3.81% Van Kampen UIF Global Value Equity -25.39% N/A -4.99% Van Kampen UIF U.S. Mid Cap Core(5) -36.32% N/A -2.85% Van Kampen UIF Value -30.57% N/A -3.99% Franklin Small Cap - Class 2(1) -36.97% N/A -11.74% Franklin Technology Securities - Class 2(1) -51.89% N/A -45.28% Mutual Shares Securities - Class 2(1) -20.43% N/A -1.65% Templeton Developing Markets Securities - Class 2 -9.00% N/A -12.65% Templeton Foreign Securities - Class 2 -27.05% N/A -12.90% * Performance figures are not annualized. (With Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -31.04% N/A -27.82% AIM V.I. Balanced -25.56% N/A -5.80% AIM V.I. Capital Appreciation -32.71% N/A -4.35% AIM V.I. Core Equity(6) -24.06% N/A -3.49% AIM V.I. Dent Demographic Trends -40.44% N/A -34.78% AIM V.I. Diversified Income -6.45% N/A -1.57% AIM V.I. Growth -39.22% N/A -11.12% AIM V.I. International Growth -24.15% N/A -6.30% AIM V.I. Premier Equity -38.52% N/A -4.91% Dreyfus Socially Responsible Growth -37.23% -6.68% -4.65% Dreyfus Stock Index -30.74% N/A -3.68% Dreyfus VIF - Growth & Income -33.66% -5.17% -3.67% Dreyfus VIF - Money Market -7.27% 1.43% 1.58% Fidelity VIP Asset Manager: Growth - Service Class 2 -24.30% N/A -18.49% Fidelity VIP Contrafund - Service Class 2 -18.17% N/A -14.76% Fidelity VIP Equity-Income - Service Class 2 -25.61% N/A -20.06% Fidelity VIP Growth - Service Class 2 -38.56% N/A -32.40% Fidelity VIP High Income - Service Class 2 -5.46% N/A -9.91% LSA Diversified Mid-Cap* N/A N/A -29.45% Putnam Health Sciences -28.75% N/A -20.50% Van Kampen UIF U.S. Real Estate -9.49% N/A 5.63% Goldman Sachs VIT CORE Small Cap Equity -23.46% N/A -0.22% Goldman Sachs VIT CORE U.S. Equity -30.28% N/A -7.44% LSA Equity Growth (2) -38.08% N/A -29.84% LSA Capital Growth (2) -32.72% N/A -27.63% MFS Emerging Growth - Service Class -41.79% N/A -37.35% MFS Investors Trust - Service Class(7) -29.55% N/A -25.59% MFS New Discovery - Service Class -40.04% N/A -28.56% MFS Research - Service Class -33.07% N/A -30.02% MFS Utilities - Service Class -31.27% N/A -34.22% Oppenheimer Aggressive Growth -36.09% N/A -19.28% Oppenheimer Capital Appreciation -35.17% N/A -12.02% Oppenheimer Global Securities -30.52% N/A -5.75% Oppenheimer Main Street(3) -27.23% N/A -14.33% Oppenheimer Strategic Bond -1.38% N/A 1.41% Putnam Growth and Income -27.42% N/A -22.09% Putnam Growth Opportunities -37.76% N/A -35.23% Putnam International Equity(4) -26.12% N/A -9.26% Putnam New Value -24.08% N/A -17.91% Putnam Research -30.59% N/A -12.10% Van Kampen UIF Core Plus Fixed Income -1.49% N/A 3.93% Van Kampen UIF Global Value Equity -25.33% N/A -4.90% Van Kampen UIF U.S. Mid Cap Core(5) -36.32% N/A -2.70% Van Kampen UIF Value -30.54% N/A -3.90% Franklin Small Cap - Class 2(1) -36.97% N/A -11.66% Franklin Technology Securities - Class 2(1) -51.96% N/A -45.44% Mutual Shares Securities - Class 2(1) -20.35% N/A -1.56% Templeton Developing Markets Securities - Class 2 -8.86% N/A -12.68% Templeton Foreign Securities - Class 2 -27.00% N/A -12.88% * Performance figures are not annualized. (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -31.23% N/A -28.02% AIM V.I. Balanced -25.76% N/A -6.05% AIM V.I. Capital Appreciation -32.89% N/A -4.61% AIM V.I. Core Equity(6) -24.27% N/A -3.75% AIM V.I. Dent Demographic Trends -40.60% N/A -34.97% AIM V.I. Diversified Income -6.70% N/A -1.84% AIM V.I. Growth -39.39% N/A -11.37% AIM V.I. International Growth -24.36% N/A -6.55% AIM V.I. Premier Equity -38.69% N/A -5.17% Dreyfus Socially Responsible Growth -37.40% -6.93% -4.90% Dreyfus Stock Index -30.93% N/A -3.94% Dreyfus VIF - Growth & Income -33.85% -5.42% -3.92% Dreyfus VIF - Money Market -7.52% 1.16% 1.32% Fidelity VIP Asset Manager: Growth - Service Class 2 -24.51% N/A -18.71% Fidelity VIP Contrafund - Service Class 2 -18.40% N/A -15.00% Fidelity VIP Equity-Income - Service Class 2 -25.81% N/A -20.28% Fidelity VIP Growth - Service Class 2 -38.73% N/A -32.59% Fidelity VIP High Income - Service Class 2 -5.72% N/A -10.16% LSA Diversified Mid-Cap* N/A N/A -29.58% Putnam Health Sciences -28.95% N/A -20.72% Van Kampen UIF U.S. Real Estate -9.73% N/A 5.36% Goldman Sachs VIT CORE Small Cap Equity -23.67% N/A -0.49% Goldman Sachs VIT CORE U.S. Equity -30.47% N/A -7.69% LSA Equity Growth (2) -38.26% N/A -30.04% LSA Capital Growth (2) -32.91% N/A -27.84% MFS Emerging Growth - Service Class -41.95% N/A -37.53% MFS Investors Trust - Service Class(7) -29.75% N/A -25.80% MFS New Discovery - Service Class -40.21% N/A -28.76% MFS Research - Service Class -33.25% N/A -30.21% MFS Utilities - Service Class -31.46% N/A -34.41% Oppenheimer Aggressive Growth -36.27% N/A -19.51% Oppenheimer Capital Appreciation -35.35% N/A -12.26% Oppenheimer Global Securities -30.71% N/A -6.00% Oppenheimer Main Street(3) -27.43% N/A -14.56% Oppenheimer Strategic Bond -1.64% N/A 1.14% Putnam Growth and Income -27.62% N/A -22.31% Putnam Growth Opportunities -37.94% N/A -35.42% Putnam International Equity(4) -26.32% N/A -9.51% Putnam New Value -24.29% N/A -18.13% Putnam Research -30.78% N/A -12.34% Van Kampen UIF Core Plus Fixed Income -1.76% N/A 3.66% Van Kampen UIF Global Value Equity -25.53% N/A -5.16% Van Kampen UIF U.S. Mid Cap Core(5) -36.50% N/A -2.96% Van Kampen UIF Value -30.73% N/A -4.16% Franklin Small Cap - Class 2(1) -37.15% N/A -11.90% Franklin Technology Securities - Class 2(1) -52.10% N/A -45.60% Mutual Shares Securities - Class 2(1) -20.57% N/A -1.82% Templeton Developing Markets Securities - Class 2 -9.10% N/A -12.92% Templeton Foreign Securities - Class 2 -27.20% N/A -13.12% * Performance figures are not annualized. (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 10 Year or Since Variable Sub-Account 1 Year 5 Year Inception AIM V.I. Aggressive Growth -31.42% N/A -28.23% AIM V.I. Balanced -25.97% N/A -6.31% AIM V.I. Capital Appreciation -33.08% N/A -4.86% AIM V.I. Core Equity(6) -24.48% N/A -4.01% AIM V.I. Dent Demographic Trends -40.77% N/A -35.16% AIM V.I. Diversified Income -6.95% N/A -2.10% AIM V.I. Growth -39.56% N/A -11.61% AIM V.I. International Growth -24.57% N/A -6.80% AIM V.I. Premier Equity -38.87% N/A -5.42% Dreyfus Socially Responsible Growth -37.58% -7.18% -5.16% Dreyfus Stock Index -31.13% N/A -4.19% Dreyfus VIF - Growth & Income -34.03% -5.67% -4.18% Dreyfus VIF - Money Market -7.77% 0.90% 1.05% Fidelity VIP Asset Manager: Growth - Service Class 2 -24.72% N/A -18.94% Fidelity VIP Contrafund - Service Class 2 -18.62% N/A -15.23% Fidelity VIP Equity-Income - Service Class 2 -26.02% N/A -20.50% Fidelity VIP Growth - Service Class 2 -38.90% N/A -32.78% Fidelity VIP High Income - Service Class 2 -5.97% N/A -10.40% LSA Diversified Mid-Cap* N/A N/A -29.71% Putnam Health Sciences -29.14% N/A -20.94% Van Kampen UIF U.S. Real Estate -9.97% N/A 5.08% Goldman Sachs VIT CORE Small Cap Equity -23.88% N/A -0.75% Goldman Sachs VIT CORE U.S. Equity -30.67% N/A -7.94% LSA Equity Growth (2) -38.43% N/A -30.24% LSA Capital Growth (2) -33.09% N/A -28.04% MFS Emerging Growth - Service Class -42.12% N/A -37.72% MFS Investors Trust - Service Class(7) -29.94% N/A -26.01% MFS New Discovery - Service Class -40.38% N/A -28.97% MFS Research - Service Class -33.44% N/A -30.41% MFS Utilities - Service Class -31.65% N/A -34.60% Oppenheimer Aggressive Growth -36.45% N/A -19.74% Oppenheimer Capital Appreciation -35.53% N/A -12.50% Oppenheimer Global Securities -30.90% N/A -6.25% Oppenheimer Main Street(3) -27.63% N/A -14.80% Oppenheimer Strategic Bond -1.91% N/A 0.87% Putnam Growth and Income -27.82% N/A -22.53% Putnam Growth Opportunities -38.11% N/A -35.60% Putnam International Equity(4) -26.52% N/A -9.75% Putnam New Value -24.50% N/A -18.36% Putnam Research -30.97% N/A -12.58% Van Kampen UIF Core Plus Fixed Income -2.02% N/A 3.38% Van Kampen UIF Global Value Equity -25.74% N/A -5.41% Van Kampen UIF U.S. Mid Cap Core(5) -36.67% N/A -3.22% Van Kampen UIF Value -30.92% N/A -4.41% Franklin Small Cap - Class 2(1) -37.32% N/A -12.14% Franklin Technology Securities - Class 2(1) -52.24% N/A -45.77% Mutual Shares Securities - Class 2(1) -20.78% N/A -2.08% Templeton Developing Markets Securities - Class 2 -9.35% N/A -13.16% Templeton Foreign Securities - Class 2 -27.40% N/A -13.36%
* Performance figures are not annualized. (1) Performance shown prior to 5/1/00 is based on the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Sub-Accounts. On 5/1/00, the Franklin Small Cap Investments (Class 2) and Mutual Shares Investments (Class 2) Portfolios were merged into the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2), respectively and were closed. For administrative convenience, on May 1, 2000, we merged the corresponding Sub-Accounts into new Sub-Accounts named Templeton Global Income Securities (Class 2) and Templeton Growth Securities (Class 2), respectively. (2) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (3) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (4) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (5) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (6) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (7) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 1 Set out below are the adjusted historical total returns method 1 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The adjusted historical total returns method 1 shown below do not include the 4% credit enhancement available under the Allstate Provider Extra Contract or withdrawal charge that may be imposed under the Contract. The inception dates of the Portfolios are as follows: Inception Date of Corresponding Variable Sub-Account Portfolio AIM V.I. Aggressive Growth 05/01/98 AIM V.I. Balanced 05/01/98 AIM V.I. Capital Appreciation 05/05/93 AIM V.I. Core Equity 05/02/94 AIM V.I. Dent Demographic Trends 12/29/99 AIM V.I. Diversified Income 05/05/93 AIM V.I. Growth 05/05/93 AIM V.I. International Growth 05/05/93 AIM V.I. Premier Equity 05/05/93 Dreyfus Socially Responsible Growth 10/15/93 Dreyfus Stock Index 09/29/89 Dreyfus VIF - Growth & Income 04/30/94 Dreyfus VIF - Money Market 08/31/90 Fidelity VIP Asset Manager: Growth - Service Class 2 01/04/95 Fidelity VIP Contrafund - Service Class 2 01/04/95 Fidelity VIP Equity-Income - Service Class 2 10/10/86 Fidelity VIP Growth - Service Class 2 10/10/86 Fidelity VIP High Income - Service Class 2 09/20/85 LSA Diversified Mid-Cap 08/14/01 Putnam Health Sciences 04/30/98 Van Kampen UIF U.S. Real Estate 03/03/97 Goldman Sachs VIT CORE Small Cap Equity 02/13/98 Goldman Sachs VIT CORE U.S. Equity 02/13/98 LSA Equity Growth 10/01/99 LSA Capital Growth 10/01/99 MFS Emerging Growth - Service Class 07/24/95 MFS Investors Trust - Service Class 10/09/95 MFS New Discovery - Service Class 05/01/98 MFS Research - Service Class 07/26/95 MFS Utilities - Service Class 01/03/95 Oppenheimer Aggressive Growth 08/15/86 Oppenheimer Capital Appreciation 04/03/85 Oppenheimer Global Securities 11/12/90 Oppenheimer Main Street 07/05/95 Oppenheimer Strategic Bond 05/03/93 Putnam Growth and Income 02/01/88 Putnam Growth Opportunities 01/31/00 Putnam International Equity 01/02/97 Putnam New Value 01/02/97 Putnam Research 09/29/98 Van Kampen UIF Core Plus Fixed Income 01/02/97 Van Kampen UIF Global Value Equity 01/02/97 Van Kampen UIF U.S. Mid Cap Core 01/02/97 Van Kampen UIF Value 01/02/97 Franklin Small Cap - Class 2 10/31/95 Franklin Technology Securities - Class 2 05/31/00 Mutual Shares Securities - Class 2 11/08/96 Templeton Developing Markets Securities - Class 2 03/04/96 Templeton Foreign Securities - Class 2 05/01/92 (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -23.82% N/A -5.20% AIM V.I. Balanced -18.34% N/A -2.60% AIM V.I. Capital Appreciation -25.48% -3.71% 5.72% AIM V.I. Core Equity (9) -16.84% -2.41% 6.25% AIM V.I. Dent Demographic Trends -33.21% N/A -28.65% AIM V.I. Diversified Income 0.78% 0.12% 3.19% AIM V.I. Growth -32.00% -9.39% 2.26% AIM V.I. International Growth -16.93% -4.65% 2.71% AIM V.I. Premier Equity -31.30% -3.65% 6.23% Dreyfus Socially Responsible Growth -30.01% -5.24% 4.97% Dreyfus Stock Index -23.52% -2.41% 7.29% Dreyfus VIF - Growth & Income -26.44% -3.76% 6.79% Dreyfus VIF - Money Market -0.05% 2.62% 2.87% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.08% -3.31% 5.03% Fidelity VIP Contrafund - Service Class 2(2) -10.95% 1.88% 10.30% Fidelity VIP Equity-Income - Service Class 2(2) -18.39% -1.47% 7.86% Fidelity VIP Growth - Service Class 2(2) -31.34% -2.13% 6.53% Fidelity VIP High Income - Service Class 2(2) 1.76% -7.71% 1.63% LSA Diversified Mid-Cap -20.45% N/A -15.34% Putnam Health Sciences(6) -21.53% N/A -2.94% Van Kampen UIF U.S. Real Estate -2.26% 2.80% 5.11% Goldman Sachs VIT CORE Small Cap Equity -16.24% N/A -2.31% Goldman Sachs VIT CORE U.S. Equity -23.06% N/A -4.00% LSA Equity Growth (3) -30.86% N/A -14.46% LSA Capital Growth (3) -25.50% N/A -11.05% MFS Emerging Growth - Service Class(4) -34.57% -5.36% 2.71% MFS Investors Trust - Service Class(4)(10) -22.33% -4.73% 3.71% MFS New Discovery - Service Class(4) -32.82% N/A 0.44% MFS Research - Service Class(4) -25.84% -5.73% 2.05% MFS Utilities - Service Class(4) -24.05% -3.54% 6.53% Oppenheimer Aggressive Growth -28.87% -3.36% 5.06% Oppenheimer Capital Appreciation -27.95% 0.78% 8.51% Oppenheimer Global Securities -23.30% 3.84% 10.25% Oppenheimer Main Street(5) -20.01% -4.68% 7.05% Oppenheimer Strategic Bond 5.84% 2.56% 4.22% Putnam Growth and Income (6) -20.19% -2.34% 6.85% Putnam Growth Opportunities(6) -30.54% N/A -29.74% Putnam International Equity(6) (7) -18.90% 0.78% 2.91% Putnam New Value (6) -16.86% 1.04% 3.35% Putnam Research (6) -23.36% N/A -2.86% Van Kampen UIF Core Plus Fixed Income 5.73% 5.48% 5.94% Van Kampen UIF Global Value Equity -18.10% -1.15% 1.84% Van Kampen UIF U.S. Mid Cap Core(8) -29.10% -0.07% 5.55% Van Kampen UIF Value -23.32% -2.31% 0.98% Franklin Small Cap - Class 2(1)(11) -29.75% -1.51% 4.63% Franklin Technology Securities - Class 2(1) -44.74% N/A -36.25% Mutual Shares Securities - Class 2(11) -13.13% 2.38% 4.92% Templeton Developing Markets Securities - Class 2(1)(12) -1.63% -6.87% -10.95% Templeton Foreign Securities - Class 2(1)(12) -19.78% -3.59% 6.05% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -24.01% N/A -5.43% AIM V.I. Balanced -18.54% N/A -2.84% AIM V.I. Capital Appreciation -25.67% -3.95% 5.46% AIM V.I. Core Equity (9) -17.05% -2.65% 5.98% AIM V.I. Dent Demographic Trends -33.38% N/A -28.83% AIM V.I. Diversified Income 0.52% -0.13% 2.93% AIM V.I. Growth -32.17% -9.62% 2.00% AIM V.I. International Growth -17.14% -4.88% 2.45% AIM V.I. Premier Equity -31.47% -3.89% 5.97% Dreyfus Socially Responsible Growth -30.18% -5.47% 4.70% Dreyfus Stock Index -23.71% -2.65% 7.02% Dreyfus VIF - Growth & Income -26.63% -4.00% 6.52% Dreyfus VIF - Money Market -0.30% 2.36% 2.61% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.29% -3.55% 4.77% Fidelity VIP Contrafund - Service Class 2(2) -11.17% 1.63% 10.02% Fidelity VIP Equity-Income - Service Class 2(2) -18.59% -1.71% 7.59% Fidelity VIP Growth - Service Class 2(2) -31.51% -2.38% 6.26% Fidelity VIP High Income - Service Class 2(2) 1.51% -7.94% 1.38% LSA Diversified Mid-Cap -20.65% N/A -15.55% Putnam Health Sciences(6) -21.73% N/A -3.18% Van Kampen UIF U.S. Real Estate -2.51% 2.54% 4.85% Goldman Sachs VIT CORE Small Cap Equity -16.45% N/A -2.55% Goldman Sachs VIT CORE U.S. Equity -23.25% N/A -4.24% LSA Equity Growth (3) -31.03% N/A -14.67% LSA Capital Growth (3) -25.68% N/A -11.27% MFS Emerging Growth - Service Class(4) -34.73% -5.60% 2.45% MFS Investors Trust - Service Class(4)(10) -22.52% -4.97% 3.46% MFS New Discovery - Service Class(4) -32.99% N/A 0.19% MFS Research - Service Class(4) -26.03% -5.96% 1.79% MFS Utilities - Service Class(4) -24.24% -3.78% 6.27% Oppenheimer Aggressive Growth -29.05% -3.60% 4.80% Oppenheimer Capital Appreciation -28.13% 0.53% 8.24% Oppenheimer Global Securities -23.49% 3.59% 9.97% Oppenheimer Main Street(5) -20.21% -4.92% 6.78% Oppenheimer Strategic Bond 5.58% 2.31% 3.96% Putnam Growth and Income (6) -20.39% -2.59% 6.59% Putnam Growth Opportunities(6) -30.72% N/A -29.92% Putnam International Equity(6) (7) -19.10% 0.53% 2.65% Putnam New Value (6) -17.07% 0.79% 3.09% Putnam Research (6) -23.56% N/A -3.10% Van Kampen UIF Core Plus Fixed Income 5.46% 5.22% 5.68% Van Kampen UIF Global Value Equity -18.31% -1.40% 1.58% Van Kampen UIF U.S. Mid Cap Core(8) -29.27% -0.32% 5.29% Van Kampen UIF Value -23.51% -2.55% 0.73% Franklin Small Cap - Class 2(1)(11) -29.92% -1.76% 4.37% Franklin Technology Securities - Class 2(1) -44.88% N/A -36.41% Mutual Shares Securities - Class 2(11) -13.34% 2.13% 4.66% Templeton Developing Markets Securities - Class 2(1)(12) -1.88% -7.11% -11.17% Templeton Foreign Securities - Class 2(1)(12) -19.98% -3.83% 5.79% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -24.20% N/A -5.67% AIM V.I. Balanced -18.74% N/A -3.09% AIM V.I. Capital Appreciation -25.86% -4.19% 5.19% AIM V.I. Core Equity (9) -17.26% -2.90% 5.72% AIM V.I. Dent Demographic Trends -33.55% N/A -29.00% AIM V.I. Diversified Income 0.27% -0.38% 2.68% AIM V.I. Growth -32.34% -9.85% 1.75% AIM V.I. International Growth -17.35% -5.12% 2.19% AIM V.I. Premier Equity -31.64% -4.13% 5.70% Dreyfus Socially Responsible Growth -30.36% -5.71% 4.44% Dreyfus Stock Index -23.90% -2.90% 6.75% Dreyfus VIF - Growth & Income -26.81% -4.24% 6.26% Dreyfus VIF - Money Market -0.54% 2.11% 2.35% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.49% -3.79% 4.51% Fidelity VIP Contrafund - Service Class 2(2) -11.40% 1.37% 9.75% Fidelity VIP Equity-Income - Service Class 2(2) -18.79% -1.96% 7.32% Fidelity VIP Growth - Service Class 2(2) -31.68% -2.62% 6.00% Fidelity VIP High Income - Service Class 2(2) 1.25% -8.17% 1.13% LSA Diversified Mid-Cap -20.85% N/A -15.76% Putnam Health Sciences(6) -21.92% N/A -3.42% Van Kampen UIF U.S. Real Estate -2.75% 2.28% 4.59% Goldman Sachs VIT CORE Small Cap Equity -16.66% N/A -2.80% Goldman Sachs VIT CORE U.S. Equity -23.44% N/A -4.48% LSA Equity Growth (3) -31.21% N/A -14.89% LSA Capital Growth (3) -25.87% N/A -11.49% MFS Emerging Growth - Service Class(4) -34.89% -5.83% 2.19% MFS Investors Trust - Service Class(4)(10) -22.72% -5.20% 3.20% MFS New Discovery - Service Class(4) -33.15% N/A -0.06% MFS Research - Service Class(4) -26.21% -6.20% 1.54% MFS Utilities - Service Class(4) -24.43% -4.02% 6.00% Oppenheimer Aggressive Growth -29.22% -3.84% 4.54% Oppenheimer Capital Appreciation -28.31% 0.28% 7.97% Oppenheimer Global Securities -23.68% 3.33% 9.70% Oppenheimer Main Street(5) -20.41% -5.16% 6.52% Oppenheimer Strategic Bond 5.32% 2.05% 3.70% Putnam Growth and Income (6) -20.59% -2.83% 6.32% Putnam Growth Opportunities(6) -30.89% N/A -30.09% Putnam International Equity(6) (7) -19.30% 0.28% 2.40% Putnam New Value (6) -17.28% 0.54% 2.83% Putnam Research (6) -23.75% N/A -3.35% Van Kampen UIF Core Plus Fixed Income 5.20% 4.96% 5.42% Van Kampen UIF Global Value Equity -18.51% -1.65% 1.33% Van Kampen UIF U.S. Mid Cap Core(8) -29.45% -0.57% 5.03% Van Kampen UIF Value -23.70% -2.79% 0.48% Franklin Small Cap - Class 2(1)(11) -30.10% -2.00% 4.11% Franklin Technology Securities - Class 2(1) -45.02% N/A -36.57% Mutual Shares Securities - Class 2(11) -13.56% 1.87% 4.40% Templeton Developing Markets Securities - Class 2(1)(12) -2.12% -7.34% -11.40% Templeton Foreign Securities - Class 2(1)(12) -20.18% -4.07% 5.53% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -24.17% N/A -5.53% AIM V.I. Balanced -18.69% N/A -2.93% AIM V.I. Capital Appreciation -25.83% -4.00% 5.51% AIM V.I. Core Equity (9) -17.19% -2.70% 6.02% AIM V.I. Dent Demographic Trends -33.56% N/A -29.22% AIM V.I. Diversified Income 0.43% -0.23% 2.89% AIM V.I. Growth -32.35% -9.70% 2.03% AIM V.I. International Growth -17.28% -4.95% 2.46% AIM V.I. Premier Equity -31.65% -3.93% 6.02% Dreyfus Socially Responsible Growth -30.36% -5.52% 4.73% Dreyfus Stock Index -23.87% -2.70% 7.08% Dreyfus VIF - Growth & Income -26.79% -4.07% 6.58% Dreyfus VIF - Money Market -0.40% 2.29% 2.56% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.43% -3.62% 4.81% Fidelity VIP Contrafund - Service Class 2(2) -11.30% 1.61% 10.11% Fidelity VIP Equity-Income - Service Class 2(2) -18.74% -1.78% 7.66% Fidelity VIP Growth - Service Class 2(2) -31.69% -2.39% 6.33% Fidelity VIP High Income - Service Class 2(2) 1.41% -8.12% 1.37% LSA Diversified Mid-Cap -20.80% N/A -15.82% Putnam Health Sciences(6) -21.88% N/A -3.28% Van Kampen UIF U.S. Real Estate -2.61% 2.44% 4.79% Goldman Sachs VIT CORE Small Cap Equity -16.59% N/A -2.67% Goldman Sachs VIT CORE U.S. Equity -23.41% N/A -4.32% LSA Equity Growth (3) -31.21% N/A -14.89% LSA Capital Growth (3) -25.85% N/A -11.46% MFS Emerging Growth - Service Class(4) -34.92% -5.62% 2.48% MFS Investors Trust - Service Class(4)(10) -22.68% -5.04% 3.45% MFS New Discovery - Service Class(4) -33.17% N/A 0.15% MFS Research - Service Class(4) -26.19% -6.03% 1.79% MFS Utilities - Service Class(4) -24.40% -3.84% 6.34% Oppenheimer Aggressive Growth -29.22% -3.63% 4.86% Oppenheimer Capital Appreciation -28.30% 0.52% 8.31% Oppenheimer Global Securities -23.65% 3.59% 10.07% Oppenheimer Main Street(5) -20.36% -5.02% 6.84% Oppenheimer Strategic Bond 5.49% 2.22% 3.91% Putnam Growth and Income (6) -20.54% -2.66% 6.64% Putnam Growth Opportunities(6) -30.89% N/A -30.26% Putnam International Equity(6) (7) -19.25% 0.52% 2.66% Putnam New Value (6) -17.21% 0.72% 3.06% Putnam Research (6) -23.71% N/A -3.20% Van Kampen UIF Core Plus Fixed Income 5.38% 5.16% 5.64% Van Kampen UIF Global Value Equity -18.45% -1.47% 1.56% Van Kampen UIF U.S. Mid Cap Core(8) -29.45% -0.35% 5.33% Van Kampen UIF Value -23.67% -2.65% 0.69% Franklin Small Cap - Class 2(1)(11) -30.10% -1.79% 4.36% Franklin Technology Securities - Class 2(1) -45.09% N/A -36.79% Mutual Shares Securities - Class 2(11) -13.48% 2.07% 4.59% Templeton Developing Markets Securities - Class 2(1)(12) -1.98% -7.29% -11.52% Templeton Foreign Securities - Class 2(1)(12) -20.13% -3.91% 5.86% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -24.36% N/A -5.77% AIM V.I. Balanced -18.89% N/A -3.18% AIM V.I. Capital Appreciation -26.02% -4.24% 5.25% AIM V.I. Core Equity(9) -17.40% -2.94% 5.76% AIM V.I. Dent Demographic Trends -33.73% N/A -29.40% AIM V.I. Diversified Income 0.17% -0.48% 2.62% AIM V.I. Growth -32.52% -9.93% 1.77% AIM V.I. International Growth -17.49% -5.19% 2.20% AIM V.I. Premier Equity -31.82% -4.17% 5.76% Dreyfus Socially Responsible Growth -30.53% -5.76% 4.47% Dreyfus Stock Index -24.06% -2.94% 6.81% Dreyfus VIF - Growth & Income -26.98% -4.31% 6.31% Dreyfus VIF - Money Market -0.65% 2.03% 2.30% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.64% -3.87% 4.55% Fidelity VIP Contrafund - Service Class 2(2) -11.52% 1.35% 9.84% Fidelity VIP Equity-Income - Service Class 2(2) -18.94% -2.03% 7.39% Fidelity VIP Growth - Service Class 2(2) -31.86% -2.64% 6.06% Fidelity VIP High Income - Service Class 2(2) 1.16% -8.36% 1.11% LSA Diversified Mid-Cap -21.00% N/A -16.03% Putnam Health Sciences(6) -22.08% N/A -3.52% Van Kampen UIF U.S. Real Estate -2.86% 2.18% 4.52% Goldman Sachs VIT CORE Small Cap Equity -16.80% N/A -2.92% Goldman Sachs VIT CORE U.S. Equity -23.60% N/A -4.56% LSA Equity Growth (3) -31.38% N/A -15.10% LSA Capital Growth (3) -26.03% N/A -11.69% MFS Emerging Growth - Service Class(4) -35.08% -5.86% 2.22% MFS Investors Trust - Service Class(4)(10) -22.87% -5.28% 3.19% MFS New Discovery - Service Class(4) -33.34% N/A -0.10% MFS Research - Service Class(4) -26.38% -6.27% 1.54% MFS Utilities - Service Class(4) -24.59% -4.08% 6.07% Oppenheimer Aggressive Growth -29.40% -3.87% 4.59% Oppenheimer Capital Appreciation -28.48% 0.27% 8.04% Oppenheimer Global Securities -23.84% 3.33% 9.80% Oppenheimer Main Street(5) -20.56% -5.26% 6.57% Oppenheimer Strategic Bond 5.23% 1.96% 3.65% Putnam Growth and Income (6) -20.74% -2.91% 6.38% Putnam Growth Opportunities(6) -31.07% N/A -30.43% Putnam International Equity(6) (7) -19.45% 0.26% 2.40% Putnam New Value (6) -17.42% 0.47% 2.80% Putnam Research (6) -23.91% N/A -3.44% Van Kampen UIF Core Plus Fixed Income 5.11% 4.89% 5.37% Van Kampen UIF Global Value Equity -18.66% -1.71% 1.30% Van Kampen UIF U.S. Mid Cap Core(8) -29.62% -0.61% 5.07% Van Kampen UIF Value -23.86% -2.89% 0.43% Franklin Small Cap - Class 2(1)(11) -30.27% -2.04% 4.10% Franklin Technology Securities - Class 2(1) -45.23% N/A -36.95% Mutual Shares Securities - Class 2(11) -13.69% 1.81% 4.33% Templeton Developing Markets Securities - Class 2(1)(12) -2.23% -7.52% -11.75% Templeton Foreign Securities - Class 2(1)(12) -20.33% -4.15% 5.59% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -24.55% N/A -6.01% AIM V.I. Balanced -19.09% N/A -3.42% AIM V.I. Capital Appreciation -26.21% -4.48% 4.98% AIM V.I. Core Equity (9) -17.61% -3.19% 5.49% AIM V.I. Dent Demographic Trends -33.90% N/A -29.58% AIM V.I. Diversified Income -0.08% -0.73% 2.36% AIM V.I. Growth -32.69% -10.16% 1.52% AIM V.I. International Growth -17.70% -5.43% 1.94% AIM V.I. Premier Equity -31.99% -4.41% 5.49% Dreyfus Socially Responsible Growth -30.71% -6.00% 4.21% Dreyfus Stock Index -24.25% -3.19% 6.55% Dreyfus VIF - Growth & Income -27.16% -4.56% 6.04% Dreyfus VIF - Money Market -0.89% 1.78% 2.04% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -17.84% -4.11% 4.28% Fidelity VIP Contrafund - Service Class 2(2) -11.75% 1.09% 9.56% Fidelity VIP Equity-Income - Service Class 2(2) -19.14% -2.28% 7.12% Fidelity VIP Growth - Service Class 2(2) -32.03% -2.88% 5.80% Fidelity VIP High Income - Service Class 2(2) 0.90% -8.59% 0.86% LSA Diversified Mid-Cap -21.20% N/A -16.24% Putnam Health Sciences(6) -22.27% N/A -3.76% Van Kampen UIF U.S. Real Estate -3.10% 1.92% 4.26% Goldman Sachs VIT CORE Small Cap Equity -17.01% N/A -3.16% Goldman Sachs VIT CORE U.S. Equity -23.79% N/A -4.80% LSA Equity Growth (3) -31.56% N/A -15.31% LSA Capital Growth (3) -26.22% N/A -11.91% MFS Emerging Growth - Service Class(4) -35.24% -6.10% 1.96% MFS Investors Trust - Service Class(4)(10) -23.07% -5.52% 2.93% MFS New Discovery - Service Class(4) -33.50% N/A -0.35% MFS Research - Service Class(4) -26.56% -6.51% 1.28% MFS Utilities - Service Class(4) -24.78% -4.32% 5.81% Oppenheimer Aggressive Growth -29.57% -4.11% 4.33% Oppenheimer Capital Appreciation -28.66% 0.01% 7.77% Oppenheimer Global Securities -24.03% 3.07% 9.52% Oppenheimer Main Street(5) -20.76% -5.50% 6.30% Oppenheimer Strategic Bond 4.97% 1.71% 3.39% Putnam Growth and Income (6) -20.94% -3.15% 6.11% Putnam Growth Opportunities(6) -31.24% N/A -30.61% Putnam International Equity(6) (7) -19.65% 0.01% 2.14% Putnam New Value (6) -17.63% 0.22% 2.54% Putnam Research (6) -24.10% N/A -3.69% Van Kampen UIF Core Plus Fixed Income 4.85% 4.63% 5.10% Van Kampen UIF Global Value Equity -18.86% -1.96% 1.05% Van Kampen UIF U.S. Mid Cap Core(8) -29.80% -0.86% 4.80% Van Kampen UIF Value -24.05% -3.14% 0.18% Franklin Small Cap - Class 2(1)(11) -30.45% -2.29% 3.84% Franklin Technology Securities - Class 2(1) -45.37% N/A -37.11% Mutual Shares Securities - Class 2(11) -13.91% 1.55% 4.07% Templeton Developing Markets Securities - Class 2(1)(12) -2.47% -7.75% -11.98% Templeton Foreign Securities - Class 2(1)(12) -20.53% -4.39% 5.33%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfolios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11)The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. ADJUSTED HISTORICAL TOTAL RETURNS METHOD 2 Set out below are the adjusted historical total returns method 2 for each Variable Sub-Account since the corresponding Portfolio's inception through December 31, 2002. The inception dates of the Portfolios are listed under "Adjusted Historical Method 1" (Without the Enhanced Death Benefit Rider, the Income Benefit Rider or the Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -30.69% N/A -6.63% AIM V.I. Balanced -25.21% N/A -3.90% AIM V.I. Capital Appreciation -32.36% -4.78% 5.68% AIM V.I. Core Equity (9) -23.71% -3.43% 6.20% AIM V.I. Dent Demographic Trends -40.09% N/A -32.91% AIM V.I. Diversified Income -6.10% -0.81% 3.13% AIM V.I. Growth -38.87% -10.76% 2.21% AIM V.I. International Growth -23.80% -5.76% 2.66% AIM V.I. Premier Equity -38.17% -4.72% 6.19% Dreyfus Socially Responsible Growth -36.88% -6.38% 4.92% Dreyfus Stock Index -30.39% -3.43% 7.24% Dreyfus VIF - Growth & Income -33.31% -4.84% 6.74% Dreyfus VIF - Money Market -6.92% 1.77% 2.80% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -23.95% -4.37% 4.76% Fidelity VIP Contrafund - Service Class 2(2) -17.82% 1.02% 10.10% Fidelity VIP Equity-Income - Service Class 2(2) -25.26% -2.45% 7.82% Fidelity VIP Growth - Service Class 2(2) -38.21% -3.13% 6.49% Fidelity VIP High Income - Service Class 2(2) -5.11% -9.00% 1.58% LSA Diversified Mid-Cap -27.32% N/A -20.75% Putnam Health Sciences(6) -28.40% N/A -4.26% Van Kampen UIF U.S. Real Estate -9.14% 1.95% 4.46% Goldman Sachs VIT CORE Small Cap Equity -23.11% N/A -3.56% Goldman Sachs VIT CORE U.S. Equity -29.93% N/A -5.32% LSA Equity Growth (3) -37.73% N/A -17.25% LSA Capital Growth (3) -32.37% N/A -13.60% MFS Emerging Growth - Service Class(4) -41.44% -6.50% 2.37% MFS Investors Trust - Service Class(4)(10) -29.20% -5.85% 3.38% MFS New Discovery - Service Class(4) -39.69% N/A -0.72% MFS Research - Service Class(4) -32.72% -6.89% 1.69% MFS Utilities - Service Class(4) -30.92% -4.61% 6.29% Oppenheimer Aggressive Growth -35.74% -4.41% 5.02% Oppenheimer Capital Appreciation -34.82% -0.11% 8.47% Oppenheimer Global Securities -30.17% 3.05% 10.21% Oppenheimer Main Street(5) -26.88% -5.81% 6.79% Oppenheimer Strategic Bond -1.03% 1.71% 4.16% Putnam Growth and Income (6) -27.07% -3.36% 6.81% Putnam Growth Opportunities(6) -37.41% N/A -34.77% Putnam International Equity(6) (7) -25.77% -0.11% 2.23% Putnam New Value (6) -23.73% 0.14% 2.68% Putnam Research (6) -30.24% N/A -4.28% Van Kampen UIF Core Plus Fixed Income -1.14% 4.72% 5.34% Van Kampen UIF Global Value Equity -24.98% -2.13% 1.12% Van Kampen UIF U.S. Mid Cap Core(8) -35.97% -1.00% 4.96% Van Kampen UIF Value -30.19% -3.33% 0.23% Franklin Small Cap - Class 2(1)(11) -36.62% -2.49% 4.30% Franklin Technology Securities - Class 2(1) -51.61% N/A -42.16% Mutual Shares Securities - Class 2(11) -20.00% 1.53% 4.42% Templeton Developing Markets Securities - Class 2(1)(12) -8.51% -8.12% -12.09% Templeton Foreign Securities - Class 2(1)(12) -26.65% -4.67% 6.01% (With the Enhanced Death Benefit Rider or the Income Benefit Rider) Enhanced Earnings Death Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -30.88% N/A -6.88% AIM V.I. Balanced -25.41% N/A -4.16% AIM V.I. Capital Appreciation(9) -32.54% -5.03% 5.41% AIM V.I. Core Equity -23.92% -3.68% 5.93% AIM V.I. Dent Demographic Trends -40.25% N/A -33.11% AIM V.I. Diversified Income -6.35% -1.07% 2.87% AIM V.I. Growth -39.04% -11.00% 1.95% AIM V.I. International Growth -24.01% -6.01% 2.40% AIM V.I. Premier Equity -38.34% -4.97% 5.92% Dreyfus Socially Responsible Growth -37.05% -6.63% 4.66% Dreyfus Stock Index -30.58% -3.68% 6.98% Dreyfus VIF - Growth & Income -33.50% -5.09% 6.48% Dreyfus VIF - Money Market -7.17% 1.51% 2.55% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -24.16% -4.62% 4.49% Fidelity VIP Contrafund - Service Class 2(2) -18.05% 0.76% 9.82% Fidelity VIP Equity-Income - Service Class 2(2) -25.46% -2.71% 7.55% Fidelity VIP Growth - Service Class 2(2) -38.38% -3.39% 6.22% Fidelity VIP High Income - Service Class 2(2) -5.37% -9.24% 1.33% LSA Diversified Mid-Cap -27.52% N/A -20.97% Putnam Health Sciences(6) -28.60% N/A -4.51% Van Kampen UIF U.S. Real Estate -9.38% 1.68% 4.19% Goldman Sachs VIT CORE Small Cap Equity -23.32% N/A -3.81% Goldman Sachs VIT CORE U.S. Equity -30.12% N/A -5.58% LSA Equity Growth (3) -37.91% N/A -17.48% LSA Capital Growth (3) -32.56% N/A -13.84% MFS Emerging Growth - Service Class(4) -41.60% -6.75% 2.11% MFS Investors Trust - Service Class(4)(10) -29.40% -6.10% 3.11% MFS New Discovery - Service Class(4) -39.86% N/A -0.98% MFS Research - Service Class(4) -32.90% -7.14% 1.43% MFS Utilities - Service Class(4) -31.11% -4.86% 6.02% Oppenheimer Aggressive Growth -35.92% -4.66% 4.76% Oppenheimer Capital Appreciation -35.00% -0.37% 8.20% Oppenheimer Global Securities -30.36% 2.78% 9.94% Oppenheimer Main Street(5) -27.08% -6.06% 6.52% Oppenheimer Strategic Bond -1.29% 1.45% 3.90% Putnam Growth and Income (6) -27.27% -3.62% 6.54% Putnam Growth Opportunities(6) -37.59% N/A -34.98% Putnam International Equity(6) (7) -25.97% -0.37% 1.97% Putnam New Value (6) -23.94% -0.12% 2.41% Putnam Research (6) -30.43% N/A -4.54% Van Kampen UIF Core Plus Fixed Income -1.41% 4.45% 5.07% Van Kampen UIF Global Value Equity -25.18% -2.38% 0.86% Van Kampen UIF U.S. Mid Cap Core(8) -36.15% -1.26% 4.69% Van Kampen UIF Value -30.38% -3.59% -0.03% Franklin Small Cap - Class 2(1)(11) -36.80% -2.75% 4.04% Franklin Technology Securities - Class 2(1) -51.75% N/A -42.35% Mutual Shares Securities - Class 2(11) -20.22% 1.27% 4.15% Templeton Developing Markets Securities - Class 2(1)(12) -8.75% -8.37% -12.33% Templeton Foreign Securities - Class 2(1)(12) -26.85% -4.92% 5.75% (With the Enhanced Death Benefit Rider and Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -31.07% N/A -7.13% AIM V.I. Balanced -25.62% N/A -4.41% AIM V.I. Capital Appreciation -32.73% -5.29% 5.15% AIM V.I. Core Equity (9) -24.13% -3.93% 5.67% AIM V.I. Dent Demographic Trends -40.42% N/A -33.32% AIM V.I. Diversified Income -6.60% -1.33% 2.61% AIM V.I. Growth -39.21% -11.24% 1.70% AIM V.I. International Growth -24.22% -6.26% 2.14% AIM V.I. Premier Equity -38.52% -5.22% 5.66% Dreyfus Socially Responsible Growth -37.23% -6.87% 4.39% Dreyfus Stock Index -30.78% -3.94% 6.71% Dreyfus VIF - Growth & Income -33.68% -5.34% 6.21% Dreyfus VIF - Money Market -7.42% 1.24% 2.29% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -24.37% -4.87% 4.23% Fidelity VIP Contrafund - Service Class 2(2) -18.27% 0.50% 9.54% Fidelity VIP Equity-Income - Service Class 2(2) -25.67% -2.96% 7.28% Fidelity VIP Growth - Service Class 2(2) -38.55% -3.64% 5.95% Fidelity VIP High Income - Service Class 2(2) -5.62% -9.49% 1.07% LSA Diversified Mid-Cap -27.72% N/A -21.18% Putnam Health Sciences(6) -28.79% N/A -4.76% Van Kampen UIF U.S. Real Estate -9.62% 1.42% 3.92% Goldman Sachs VIT CORE Small Cap Equity -23.53% N/A -4.07% Goldman Sachs VIT CORE U.S. Equity -30.32% N/A -5.83% LSA Equity Growth (3) -38.08% N/A -17.71% LSA Capital Growth (3) -32.74% N/A -14.07% MFS Emerging Growth - Service Class(4) -41.77% -7.00% 1.84% MFS Investors Trust - Service Class(4)(10) -29.59% -6.35% 2.85% MFS New Discovery - Service Class(4) -40.03% N/A -1.24% MFS Research - Service Class(4) -33.09% -7.39% 1.17% MFS Utilities - Service Class(4) -31.30% -5.11% 5.75% Oppenheimer Aggressive Growth -36.10% -4.91% 4.49% Oppenheimer Capital Appreciation -35.18% -0.63% 7.93% Oppenheimer Global Securities -30.55% 2.51% 9.66% Oppenheimer Main Street(5) -27.28% -6.31% 6.25% Oppenheimer Strategic Bond -1.56% 1.18% 3.64% Putnam Growth and Income (6) -27.47% -3.87% 6.28% Putnam Growth Opportunities(6) -37.76% N/A -35.18% Putnam International Equity(6) (7) -26.17% -0.63% 1.70% Putnam New Value (6) -24.15% -0.38% 2.14% Putnam Research (6) -30.62% N/A -4.79% Van Kampen UIF Core Plus Fixed Income -1.67% 4.18% 4.80% Van Kampen UIF Global Value Equity -25.39% -2.64% 0.60% Van Kampen UIF U.S. Mid Cap Core(8) -36.32% -1.52% 4.42% Van Kampen UIF Value -30.57% -3.84% -0.29% Franklin Small Cap - Class 2(1)(11) -36.97% -3.00% 3.77% Franklin Technology Securities - Class 2(1) -51.89% N/A -42.53% Mutual Shares Securities - Class 2(11) -20.43% 1.00% 3.88% Templeton Developing Markets Securities - Class 2(1)(12) -9.00% -8.61% -12.57% Templeton Foreign Securities - Class 2(1)(12) -27.05% -5.17% 5.49% (With Enhanced Earnings Death Benefit) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -31.04% N/A -6.99% AIM V.I. Balanced -25.56% N/A -4.25% AIM V.I. Capital Appreciation(9) -32.71% -5.08% 5.47% AIM V.I. Core Equity -24.06% -3.73% 5.98% AIM V.I. Dent Demographic Trends -40.44% N/A -33.56% AIM V.I. Diversified Income -6.45% -1.18% 2.82% AIM V.I. Growth -39.22% -11.08% 1.98% AIM V.I. International Growth -24.15% -6.09% 2.41% AIM V.I. Premier Equity -38.52% -5.01% 5.98% Dreyfus Socially Responsible Growth -37.23% -6.68% 4.68% Dreyfus Stock Index -30.74% -3.73% 7.04% Dreyfus VIF - Growth & Income -33.66% -5.17% 6.53% Dreyfus VIF - Money Market -7.27% 1.43% 2.49% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -24.30% -4.70% 4.53% Fidelity VIP Contrafund - Service Class 2(2) -18.17% 0.74% 9.91% Fidelity VIP Equity-Income - Service Class 2(2) -25.61% -2.78% 7.62% Fidelity VIP Growth - Service Class 2(2) -38.56% -3.40% 6.29% Fidelity VIP High Income - Service Class 2(2) -5.46% -9.44% 1.32% LSA Diversified Mid-Cap -27.67% N/A -21.25% Putnam Health Sciences(6) -28.75% N/A -4.61% Van Kampen UIF U.S. Real Estate -9.49% 1.58% 4.13% Goldman Sachs VIT CORE Small Cap Equity -23.46% N/A -3.94% Goldman Sachs VIT CORE U.S. Equity -30.28% N/A -5.66% LSA Equity Growth (3) -38.08% N/A -17.71% LSA Capital Growth (3) -32.72% N/A -14.04% MFS Emerging Growth - Service Class(4) -41.79% -6.78% 2.13% MFS Investors Trust - Service Class(4)(10) -29.55% -6.18% 3.11% MFS New Discovery - Service Class(4) -40.04% N/A -1.02% MFS Research - Service Class(4) -33.07% -7.22% 1.43% MFS Utilities - Service Class(4) -31.27% -4.92% 6.09% Oppenheimer Aggressive Growth -36.09% -4.69% 4.81% Oppenheimer Capital Appreciation -35.17% -0.38% 8.27% Oppenheimer Global Securities -30.52% 2.79% 10.04% Oppenheimer Main Street(5) -27.23% -6.16% 6.57% Oppenheimer Strategic Bond -1.38% 1.36% 3.85% Putnam Growth and Income (6) -27.42% -3.70% 6.60% Putnam Growth Opportunities(6) -37.76% N/A -35.37% Putnam International Equity(6) (7) -26.12% -0.39% 1.97% Putnam New Value (6) -24.08% -0.19% 2.38% Putnam Research (6) -30.59% N/A -4.64% Van Kampen UIF Core Plus Fixed Income -1.49% 4.38% 5.02% Van Kampen UIF Global Value Equity -25.33% -2.45% 0.83% Van Kampen UIF U.S. Mid Cap Core(8) -36.32% -1.29% 4.73% Van Kampen UIF Value -30.54% -3.69% -0.07% Franklin Small Cap - Class 2(1)(11) -36.97% -2.78% 4.03% Franklin Technology Securities - Class 2(1) -51.96% N/A -42.79% Mutual Shares Securities - Class 2(11) -20.35% 1.20% 4.08% Templeton Developing Markets Securities - Class 2(1)(12) -8.86% -8.56% -12.71% Templeton Foreign Securities - Class 2(1)(12) -27.00% -5.00% 5.82% (With the Enhanced Earnings Death Benefit Rider, and the Enhanced Death Benefit Rider or the Income Benefit Rider) 5 Year 10 Year or Variable Sub-Account 1 Year Since Inception AIM V.I. Aggressive Growth -31.23% N/A -7.24% AIM V.I. Balanced -25.76% N/A -4.51% AIM V.I. Capital Appreciation -32.89% -5.34% 5.20% AIM V.I. Core Equity (9) -24.27% -3.98% 5.71% AIM V.I. Dent Demographic Trends -40.60% N/A -33.77% AIM V.I. Diversified Income -6.70% -1.44% 2.56% AIM V.I. Growth -39.39% -11.33% 1.73% AIM V.I. International Growth -24.36% -6.34% 2.15% AIM V.I. Premier Equity -38.69% -5.26% 5.71% Dreyfus Socially Responsible Growth -37.40% -6.93% 4.42% Dreyfus Stock Index -30.93% -3.98% 6.77% Dreyfus VIF - Growth & Income -33.85% -5.42% 6.26% Dreyfus VIF - Money Market -7.52% 1.16% 2.23% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -24.51% -4.96% 4.26% Fidelity VIP Contrafund - Service Class 2(2) -18.40% 0.47% 9.63% Fidelity VIP Equity-Income - Service Class 2(2) -25.81% -3.04% 7.35% Fidelity VIP Growth - Service Class 2(2) -38.73% -3.66% 6.02% Fidelity VIP High Income - Service Class 2(2) -5.72% -9.69% 1.06% LSA Diversified Mid-Cap -27.87% N/A -21.47% Putnam Health Sciences(6) -28.95% N/A -4.87% Van Kampen UIF U.S. Real Estate -9.73% 1.31% 3.86% Goldman Sachs VIT CORE Small Cap Equity -23.67% N/A -4.20% Goldman Sachs VIT CORE U.S. Equity -30.47% N/A -5.91% LSA Equity Growth (3) -38.26% N/A -17.94% LSA Capital Growth (3) -32.91% N/A -14.28% MFS Emerging Growth - Service Class(4) -41.95% -7.03% 1.87% MFS Investors Trust - Service Class(4)(10) -29.75% -6.43% 2.84% MFS New Discovery - Service Class(4) -40.21% N/A -1.28% MFS Research - Service Class(4) -33.25% -7.46% 1.17% MFS Utilities - Service Class(4) -31.46% -5.17% 5.82% Oppenheimer Aggressive Growth -36.27% -4.95% 4.55% Oppenheimer Capital Appreciation -35.35% -0.64% 7.99% Oppenheimer Global Securities -30.71% 2.52% 9.76% Oppenheimer Main Street(5) -27.43% -6.41% 6.30% Oppenheimer Strategic Bond -1.64% 1.09% 3.58% Putnam Growth and Income (6) -27.62% -3.95% 6.33% Putnam Growth Opportunities(6) -37.94% N/A -35.57% Putnam International Equity(6) (7) -26.32% -0.65% 1.71% Putnam New Value (6) -24.29% -0.45% 2.11% Putnam Research (6) -30.78% N/A -4.89% Van Kampen UIF Core Plus Fixed Income -1.76% 4.11% 4.75% Van Kampen UIF Global Value Equity -25.53% -2.71% 0.57% Van Kampen UIF U.S. Mid Cap Core(8) -36.50% -1.55% 4.46% Van Kampen UIF Value -30.73% -3.95% -0.34% Franklin Small Cap - Class 2(1)(11) -37.15% -3.04% 3.77% Franklin Technology Securities - Class 2(1) -52.10% N/A -42.98% Mutual Shares Securities - Class 2(11) -20.57% 0.94% 3.81% Templeton Developing Markets Securities - Class 2(1)(12) -9.10% -8.80% -12.95% Templeton Foreign Securities - Class 2(1)(12) -27.20% -5.25% 5.55% (With Income Benefit, Enhanced Death Benefit and Enhanced Earnings Death Benefit) 0 Year or Since Variable Sub-Account 1 Year 5 Year 1 Inception AIM V.I. Aggressive Growth -31.42% N/A -7.49% AIM V.I. Balanced -25.97% N/A -4.77% AIM V.I. Capital Appreciation -33.08% -5.59% 4.94% AIM V.I. Core Equity (9) -24.48% -4.24% 5.44% AIM V.I. Dent Demographic Trends -40.77% N/A -33.97% AIM V.I. Diversified Income -6.95% -1.70% 2.30% AIM V.I. Growth -39.56% -11.57% 1.47% AIM V.I. International Growth -24.57% -6.59% 1.89% AIM V.I. Premier Equity -38.87% -5.51% 5.45% Dreyfus Socially Responsible Growth -37.58% -7.18% 4.16% Dreyfus Stock Index -31.13% -4.24% 6.50% Dreyfus VIF - Growth & Income -34.03% -5.67% 6.00% Dreyfus VIF - Money Market -7.77% 0.90% 1.97% Fidelity VIP Asset Manager: Growth - Service Class 2(2) -24.72% -5.21% 4.00% Fidelity VIP Contrafund - Service Class 2(2) -18.62% 0.21% 9.35% Fidelity VIP Equity-Income - Service Class 2(2) -26.02% -3.30% 7.07% Fidelity VIP Growth - Service Class 2(2) -38.90% -3.92% 5.75% Fidelity VIP High Income - Service Class 2(2) -5.97% -9.93% 0.80% LSA Diversified Mid-Cap -28.07% N/A -21.68% Putnam Health Sciences(6) -29.14% N/A -5.13% Van Kampen UIF U.S. Real Estate -9.97% 1.04% 3.59% Goldman Sachs VIT CORE Small Cap Equity -23.88% N/A -4.45% Goldman Sachs VIT CORE U.S. Equity -30.67% N/A -6.17% LSA Equity Growth (3) -38.43% N/A -18.17% LSA Capital Growth (3) -33.09% N/A -14.52% MFS Emerging Growth - Service Class(4) -42.12% -7.28% 1.61% MFS Investors Trust - Service Class(4)(10) -29.94% -6.68% 2.58% MFS New Discovery - Service Class(4) -40.38% N/A -1.55% MFS Research - Service Class(4) -33.44% -7.71% 0.91% MFS Utilities - Service Class(4) -31.65% -5.43% 5.55% Oppenheimer Aggressive Growth -36.45% -5.20% 4.29% Oppenheimer Capital Appreciation -35.53% -0.91% 7.72% Oppenheimer Global Securities -30.90% 2.25% 9.48% Oppenheimer Main Street(5) -27.63% -6.66% 6.03% Oppenheimer Strategic Bond -1.91% 0.82% 3.32% Putnam Growth and Income (6) -27.82% -4.21% 6.06% Putnam Growth Opportunities(6) -38.11% N/A -35.78% Putnam International Equity(6) (7) -26.52% -0.91% 1.44% Putnam New Value (6) -24.50% -0.71% 1.84% Putnam Research (6) -30.97% N/A -5.15% Van Kampen UIF Core Plus Fixed Income -2.02% 3.84% 4.48% Van Kampen UIF Global Value Equity -25.74% -2.97% 0.30% Van Kampen UIF U.S. Mid Cap Core(8) -36.67% -1.81% 4.18% Van Kampen UIF Value -30.92% -4.20% -0.60% Franklin Small Cap - Class 2(1)(11) -37.32% -3.30% 3.50% Franklin Technology Securities - Class 2(1) -52.24% N/A -43.17% Mutual Shares Securities - Class 2(11) -20.78% 0.67% 3.54% Templeton Developing Markets Securities - Class 2(1)(12) -9.35% -9.05% -13.19% Templeton Foreign Securities - Class 2(1)(12) -27.40% -5.50% 5.29%
(1) Each of the Portfolios' Class 2 shares (12b-1 class) were first offered on 1/6/99, except for Franklin Technology Securities and Templeton Developing Markets Securities, which were first offered on 9/1/00 and 5/1/97, respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1 shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (2) Each of the Portfolios' Service Class 2 shares (12b-1 class) were first offered on 1/12/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (3) Effective 5/1/03 the LSA Focused Equity Fund and the LSA Growth Equity Fund changed their names to LSA Equity Growth Fund and LSA Capital Growth Fund, respectively. (4) Each of the Portfolios Service Class shares (12b-1 class) were first offered on 5/1/00. For periods prior to this date, the performance shown is based on the historical performance of the Portfolios' Initial Class shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares (5) Effective 5/1/03 the Oppenheimer Main Street Growth & Income Fund changed its name to Oppenheimer Main Street Fund. (6) Each of the Portfolios Class IB shares (12b-1 class) commenced operation on 4/30/98, except for the Putnam Growth and Income Fund which commenced operations 4/6/98 and Putnam Research Fund which commenced operations 9/30/98. For periods prior to the inception of the Portfolios' Class IB shares (12b-1 class), the performance shown is based on the historical performance of the Portfolios' Class IA shares (non-12b-1 class), adjusted to reflect the 12b-1 fees of the Portfolios' 12b-1 class shares. (7) Effective 5/1/03 the Putnam VT International Growth Fund changed its name to Putnam VT International Equity Fund. (8) Effective 5/1/03 the Van Kampen UIF Mid Cap Value Portfolio changed its name to Van Kampen UIF U.S. Mid Cap Core Portfolio. (9) Effective 9/30/02, the AIM V.I. Core Equity Fund changed its investment objectives from growth of capital with a secondary objective of current income to growth of capital. Performance shown for the AIM V.I. Core Equity Sub-Account is based on the performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (10) Effective May 1, 2001, the MFS Growth with Income Series changed its name to MFS Investors Trust Series to reflect changes in its investment policies. Performance shown for the MFS Investors Trust Series Sub-Account is based on performance of the Portfolio, which reflects the investment policies of the Portfolio in effect during the periods shown. (11)The adjusted historical performance figures for the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Franklin Small Cap (Class 2) and Mutual Shares Securities (Class 2) Portfolio, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. (12) The adjusted historical performance figures for the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Variable Sub-Accounts are based on the historical performance of the Templeton Global Income Securities (Class 2), and Templeton Growth Securities (Class 2) Portfolios, respectively. These figures do not reflect the performance of predecessor Variable Sub-Accounts prior to May 1, 2000. FINANCIAL STATEMENTS The financial statements of the Variable Account as of December 31, 2002 and for each of the periods in the two year period then ended, the financial statements of Glenbrook as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002, and the related financial statement schedule and the accompanying Independent Auditors' Reports appear in the pages that follow. The financial statements and financial statement schedule of Glenbrook included herein should be considered only as bearing upon the ability of Glenbrook to meet its obligations under the Contracts. INDEPENDENT AUDITORS' REPORT TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF GLENBROOK LIFE AND ANNUITY COMPANY: We have audited the accompanying Statements of Financial Position of Glenbrook Life and Annuity Company (the "Company", an affiliate of The Allstate Corporation) as of December 31, 2002 and 2001, and the related Statements of Operations and Comprehensive Income, Shareholder's Equity and Cash Flows for each of the three years in the period ended December 31, 2002. Our audits also included Schedule IV - Reinsurance. These financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2002 and 2001, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, Schedule IV - Reinsurance, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. /s/ Deloitte & Touche LLP Chicago, Illinois February 5, 2003 F-1 GLENBROOK LIFE AND ANNUITY COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, --------------------------------------- (IN THOUSANDS) 2002 2001 2000 ---------- ---------- ----------- REVENUES Net investment income $ 10,335 $ 10,715 $ 10,808 Realized capital gains and losses (1,984) 435 419 ---------- ---------- ----------- INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE 8,351 11,150 11,227 Income tax expense 2,839 3,896 3,925 ---------- ---------- ----------- NET INCOME 5,512 7,254 7,302 ---------- ---------- ----------- OTHER COMPREHENSIVE INCOME, AFTER-TAX Change in unrealized net capital gains and losses 5,088 1,633 3,603 ---------- ---------- ----------- COMPREHENSIVE INCOME $ 10,600 $ 8,887 $ 10,905 ========== ========== ===========
See notes to financial statements. F-2 GLENBROOK LIFE AND ANNUITY COMPANY STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, --------------------------- 2002 2001 ------------ ----------- (IN THOUSANDS, EXCEPT PAR VALUE DATA) ASSETS Investments Fixed income securities, at fair value (amortized cost $158,963 and $154,154) $ 173,611 $ 160,974 Short-term 2,778 6,592 ------------ ----------- Total investments 176,389 167,566 Cash 1,235 - Reinsurance recoverable from Allstate Life Insurance Company, net 6,203,516 5,378,036 Other assets 3,388 3,404 Current income taxes receivable 20 - Receivable from affiliates, net 5,680 - Separate Accounts 1,155,112 1,547,953 ------------ ----------- TOTAL ASSETS $ 7,545,340 $ 7,096,959 ============ =========== LIABILITIES Contractholder funds $ 6,195,649 $ 5,370,475 Reserve for life-contingent contract benefits 7,867 7,561 Current income taxes payable - 3,844 Deferred income taxes 4,629 2,610 Other liabilities and accrued expenses 9,165 - Payable to affiliates, net - 2,198 Separate Accounts 1,155,112 1,547,953 ------------ ----------- TOTAL LIABILITIES 7,372,422 6,934,641 ------------ ----------- COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 8) SHAREHOLDER'S EQUITY Common stock, $500 par value, 10,000 shares authorized, 5,000 shares issued and outstanding 2,500 2,500 Additional capital paid-in 119,241 119,241 Retained income 41,656 36,144 Accumulated other comprehensive income: Unrealized net capital gains and losses 9,521 4,433 ------------ ----------- Total accumulated other comprehensive income 9,521 4,433 ------------ ----------- TOTAL SHAREHOLDER'S EQUITY 172,918 162,318 ------------ ----------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 7,545,340 $ 7,096,959 ============ ===========
See notes to financial statements. F-3 GLENBROOK LIFE AND ANNUITY COMPANY STATEMENTS OF SHAREHOLDER'S EQUITY
YEAR ENDED DECEMBER 31, ----------------------------------------- (IN THOUSANDS) 2002 2001 2000 ------------ ------------ ----------- COMMON STOCK $ 2,500 2,500 $ 2,500 ------------ ------------ ----------- ADDITIONAL CAPITAL PAID-IN 119,241 119,241 119,241 ------------ ------------ ----------- RETAINED INCOME Balance, beginning of year 36,144 28,890 21,588 Net income 5,512 7,254 7,302 ------------ ------------ ----------- Balance, end of year 41,656 36,144 28,890 ------------ ------------ ----------- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance, beginning of year 4,433 2,800 (803) Change in unrealized net capital gains and losses 5,088 1,633 3,603 ------------ ------------ ----------- Balance, end of year 9,521 4,433 2,800 ------------ ------------ ----------- TOTAL SHAREHOLDER'S EQUITY $ 172,918 $ 162,318 $ 153,431 ============ ============ ===========
See notes to financial statements. F-4 GLENBROOK LIFE AND ANNUITY COMPANY STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, --------------------------------------- (IN THOUSANDS) 2002 2001 2000 ----------- --------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 5,512 $ 7,254 $ 7,302 Adjustments to reconcile net income to net cash provided by operating activities: Amortization and other non-cash items (6) (77) (468) Realized capital gains and losses 1,984 (435) (419) Changes in: Income taxes (4,585) 4 1,563 Receivable/payable to affiliates, net (7,878) (2,903) 979 Other operating assets and liabilities 9,181 (1,491) (725) ----------- --------- ----------- Net cash provided by operating activities 4,208 2,352 8,232 ----------- --------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Fixed income securities Proceeds from sales 4,885 14,535 20,682 Investment collections 18,720 9,553 3,163 Investments purchases (30,392) (36,433) (68,967) Change in short-term investments, net 3,814 (3,507) 50,381 ----------- --------- ----------- Net cash (used in) provided by investing activities (2,973) (15,852) 5,259 ----------- --------- ----------- NET INCREASE (DECREASE) IN CASH 1,235 (13,500) 13,491 CASH AT BEGINNING OF YEAR - 13,500 9 ----------- --------- ----------- CASH AT END OF YEAR $ 1,235 $ - $ 13,500 =========== ========= ===========
See notes to financial statements. F-5 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS 1. GENERAL BASIS OF PRESENTATION The accompanying financial statements include the accounts of Glenbrook Life and Annuity Company ("Glenbrook Life" or the "Company"), a wholly owned subsidiary of Allstate Life Insurance Company ("ALIC"), which is wholly owned by Allstate Insurance Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation (the "Corporation"). These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). To conform with the 2002 presentation, certain amounts in the prior years' financial statements and notes have been reclassified. NATURE OF OPERATIONS Glenbrook Life, a single segment entity, markets a diversified group of products to meet customers' lifetime needs in the areas of financial protection and retirement solutions through financial services firms. These products include interest-sensitive life insurance, including single premium life insurance and variable life insurance; fixed annuities including market value adjusted annuities and equity-indexed annuities; and variable annuities. ALFS, Inc. ("ALFS") is the principal underwriter for certain Glenbrook Life products, such as variable annuities, variable life insurance and market value adjusted annuities. ALFS is a wholly owned subsidiary of ALIC and a registered broker-dealer under the Securities Exchange Act of 1934. The Company is authorized to sell life insurance and annuity products in all states except New York, as well as in the District of Columbia and Puerto Rico. The top geographic locations for premiums and deposits for the Company were California, Texas, Pennsylvania, Florida, Illinois, New Jersey, and Michigan for the year ended December 31, 2002. No other jurisdiction accounted for more than 5% of premiums and deposits. All premiums and deposits are ceded to ALIC under reinsurance agreements. The Company monitors economic and regulatory developments that have the potential to impact its business. Federal legislation has allowed banks and other financial organizations to have greater participation in the securities and insurance businesses. This legislation may present an increased level of competition for sales of the Company's products. Furthermore, state and federal laws and regulations affect the taxation of insurance companies and life insurance and annuity products. From time to time, Congress has considered proposals that, if enacted, could impose a greater tax burden on the Company or could have an adverse impact on the federal income tax treatment of some insurance products offered by the Company, including favorable policyholder tax treatment currently applicable to deferred annuities and life insurance, including interest-sensitive life insurance. Recent proposals to eliminate the double taxation of dividends and to permit the establishment of tax-free lifetime savings and retirement savings accounts could substantially reduce the tax-advantaged nature of many insurance products. If such proposals were to be adopted, they could have a material adverse effect on the Company's financial position or ability to sell such products and could result in the surrender of some existing contracts and policies. In addition, recent changes in the federal estate tax laws have negatively affected the demand for the types of life insurance used in estate planning. Although the Company currently benefits from agreements with financial services entities that market and distribute its products, change in control or other factors affecting these non-affiliated entities with which the Company has distribution agreements could negatively impact the Company's sales. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS Fixed income securities include bonds, asset-backed and mortgage-backed securities. All fixed income securities are carried at fair value and may be sold prior to their contractual maturity ("available for sale"). The fair value of publicly traded fixed income securities is based on independent market quotations. The fair value of non-publicly traded securities, primarily privately placed corporate obligations, is based on either widely accepted pricing valuation models which utilize internally developed ratings and independent third party data (e.g., term structures and current publicly traded bond prices) as inputs or independent third party pricing sources. The valuation models use indicative information such as ratings, industry, coupon and maturity along with related third party data and publicly traded bond prices to determine security specific spreads. These spreads are then adjusted for illiquidity based on historical analysis and broker surveys. The difference between amortized cost and fair value, net of F-6 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS deferred income taxes, is reflected as a component of Accumulated other comprehensive income. Short-term investments are carried at cost or amortized cost, which approximates fair value. Investment income consists primarily of interest. Interest is recognized on an accrual basis. Interest income on mortgage-backed and asset-backed securities is determined using the effective yield method, based on estimated principal repayments. Accrual of income is suspended for fixed income securities that are in default or when the receipt of interest payments is in doubt. Realized capital gains and losses are determined on a specific identification basis. They include gains and losses on security dispositions and write-downs in value due to other than temporary declines in fair value. The Company writes down to fair value any fixed income security that is classified as other than temporarily impaired in the period the security is deemed to be other than temporarily impaired. Inherent in the Company's evaluation of a particular security are assumptions and estimates about the operations of the issuer and its future earnings potential. Some of the factors considered in evaluating whether a decline in fair value is other than temporary are: 1) the Company's ability and intent to retain the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the recoverability of principal and interest; 3) the duration and extent to which the fair value has been less than amortized cost for fixed income securities; 4) the financial condition, near-term and long-term prospects of the issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect access to liquidity. RECOGNITION OF INSURANCE REVENUE AND RELATED BENEFITS AND INTEREST CREDITED Payout annuities with life contingencies provide insurance protection over a period that extends beyond the period during which premiums are collected. Gross premiums in excess of the net premium on payout annuities with life contingencies are deferred and recognized over the contract period. Contract benefits are recognized in relation to such revenues so as to result in the recognition of profits over the life of the contract. Interest-sensitive life insurance contracts are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and any amounts assessed against the contractholder account balance. Premiums from these contracts are reported as deposits to Contractholder funds. Contract charges consist of fees assessed against the contractholder account balance for cost of insurance (mortality risk), contract administration and early surrender. These revenues are recognized when levied against the contractholder account balance. Contract benefits include life-contingent benefit payments in excess of the contractholder account balance. Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, market value adjusted annuities, equity-indexed annuities and payout annuities without life contingencies are considered investment contracts. Deposits received for such contracts are reported as additions to Contractholder funds. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for contract administration and early surrender. These revenues are recognized when levied against the contractholder account balance. Interest credited to contractholder funds represents interest accrued or paid for interest-sensitive life insurance contracts and investment contracts. Crediting rates for fixed rate annuities and interest-sensitive life insurance contracts are adjusted periodically by the Company to reflect current market conditions subject to contractually guaranteed rates. Crediting rates for indexed annuities are based on an interest rate index, such as LIBOR or an equity index, such as the S&P 500. Separate Accounts products include variable annuities and variable life insurance. The assets supporting these products are legally segregated and available only to settle Separate Accounts contract obligations. Deposits received are reported as Separate Accounts liabilities. Contract charges for these products consist of fees assessed against the Separate Accounts account values for contract maintenance, administration, mortality, expense and F-7 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS early surrender. Contract benefits incurred include guaranteed minimum death benefits paid on variable annuity contracts. REINSURANCE RECOVERABLE The Company has reinsurance agreements whereby substantially all contract charges, contract benefits, interest credited to contractholder funds and certain expenses are ceded to ALIC (see Note 3). These amounts are reflected net of such reinsurance in the Statements of Operations and Comprehensive Income. Reinsurance recoverable and the related Reserve for life-contingent contract benefits and Contractholder funds are reported separately in the Statements of Financial Position. The Company continues to have primary liability as the direct insurer for risks reinsured. Investment income earned on the assets which support Contractholder funds and the Reserve for life-contingent contract benefits is not included in the Company's financial statements as those assets are owned and managed by ALIC under terms of reinsurance agreements. INCOME TAXES The income tax provision is calculated under the liability method and presented net of reinsurance. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are unrealized capital gains and losses on certain investments and differences in the tax bases of investments. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. SEPARATE ACCOUNTS The Company issues variable annuities and variable life insurance contracts, the assets and liabilities of which are legally segregated and recorded as assets and liabilities of the Separate Accounts. The assets of the Separate Accounts are carried at fair value. Separate Accounts liabilities represent the contractholders' claims to the related assets and are carried at the fair value of the assets. Investment income and realized capital gains and losses of the Separate Accounts accrue directly to the contractholders and therefore are not included in the Company's Statements of Operations and Comprehensive Income. Revenues to the Company from the Separate Accounts consist of contract charges for maintenance and administration services, mortality, early surrender and expenses, which are ceded to ALIC. Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death or annuitization, variable annuity and variable life insurance contractholders bear the investment risk that the underlying mutual funds of the Separate Accounts may not meet their stated investment objectives. The risk and associated cost of these contract guarantees are ceded to ALIC in accordance with the reinsurance agreements. RESERVE FOR LIFE-CONTINGENT CONTRACT BENEFITS The Reserve for life-contingent contract benefits, which relates to payout annuities with life contingencies, is computed on the basis of long-term actuarial assumptions as to future investment yields, mortality, morbidity, terminations and expenses. These assumptions include provisions for adverse deviation and generally vary by such characteristics as type of coverage, year of issue and contract duration. Detailed reserve assumptions and reserve interest rates are outlined in Note 6. CONTRACTHOLDER FUNDS Contractholder funds arise from the issuance of interest-sensitive life insurance policies and investment contracts. Deposits received are recorded as interest-bearing liabilities. Contractholder funds are equal to deposits received and interest credited to the benefit of the contractholder less surrenders and withdrawals, and contract charges for mortality and administrative expenses. Detailed information on crediting rates and surrender and withdrawal provisions on contractholder funds are outlined in Note 6. F-8 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. NEW ACCOUNTING STANDARD In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard ("SFAS") No. 142, "Goodwill and other Intangible Assets", which eliminates the requirement to amortize goodwill, and requires that goodwill and separately identified intangible assets with indefinite lives be evaluated for impairment on an annual basis (or more frequently if impairment indicators arise) on a fair value basis. The Company adopted SFAS No. 142 effective January 1, 2002. The non-amortization provisions of SFAS No. 142 did not have a material impact on the Company. The Company has analyzed the unamortized goodwill balance as of December 31, 2002 for impairment using the fair value impairment approach prescribed by SFAS No. 142 and has determined that the balance is fully recoverable. PENDING ACCOUNTING STANDARDS On July 31, 2002, the American Institute of Certified Public Accountants issued an exposure draft Statement of Position ("SOP") entitled "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts". The accounting guidance contained in the proposed SOP applies to several of the Company's products and product features. The proposed effective date of the SOP is for fiscal years beginning after December 15, 2003, with earlier adoption encouraged. If adopted early, the provisions of the SOP must be applied as of the beginning of the fiscal year. Accordingly, if the SOP were adopted during an interim period of 2003, prior interim periods would be restated. A provision of the proposed SOP requires the establishment of a liability in addition to the account balance for contracts and contract features that provide guaranteed minimum death benefits or other insurance benefits. The finalized SOP may also require a liability for guaranteed minimum income benefits. These liabilities are not currently recognized by the Company, and their establishment may have a material impact on the amounts ceded to and reinsurance recoverable from ALIC depending on the market conditions at the time of adoption, but are not expected to have a material impact on the Company's Statements of Financial Position. The FASB has exposed guidance that addresses the accounting for certain modified coinsurance agreements. The guidance has been exposed as FASB Interpretation of Statement 133 Implementation Issue No. B36, "Embedded Derivatives: Bifurcation of a Debt Instrument That Incorporates Both Interest Rate Risk and Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Issuer of That Instrument." The proposed guidance requires recognizing an embedded derivative in certain reinsurance agreements when certain conditions are met. The initial impact of adopting the proposed guidance would be recorded as a cumulative adjustment to Net Income in the first fiscal quarter beginning after June 15, 2003. The provisions of the proposed guidance, as currently drafted and interpreted, would not have a material impact on the Company's reinsurance balances that would be subject to the proposed guidance. Accordingly, the potential impact of recognizing embedded derivatives pursuant to the requirements of that the proposed guidance is expected to be immaterial to both the Company's Statements of Financial Position and Statements of Operations and Comprehensive Income. 3. RELATED PARTY TRANSACTIONS REINSURANCE The Company has reinsurance agreements whereby substantially all contract charges, interest credited to contractholder funds, contract benefits and certain expenses are ceded to ALIC and reflected net of such reinsurance in the Statements of Operations and Comprehensive Income. Reinsurance recoverable and the related Reserve for life-contingent contract benefits and Contractholder funds are reported separately in the Statements of Financial Position. The Company continues to have primary liability as the direct insurer for risks reinsured. F-9 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS Investment income earned on the assets which support Contractholder funds and the Reserve for life-contingent contract benefits is not included in the Company's financial statements as those assets are owned and managed under terms of reinsurance agreements. The following table summarizes amounts that were ceded to ALIC under reinsurance agreements:
YEAR ENDED DECEMBER 31, ------------------------------------------- (IN THOUSANDS) 2002 2001 2000 ----------- ----------- ----------- Contract charges $ 30,368 $ 31,771 $ 37,965 Interest credited to contractholder funds, contract benefits and certain expenses 364,379 384,825 331,220
BUSINESS OPERATIONS The Company utilizes services performed by its affiliates, AIC, ALIC and Allstate Investments LLC and business facilities owned or leased, and operated by AIC in conducting its business activities. In addition, the Company shares the services of employees with AIC. The Company reimburses its affiliates for the operating expenses incurred on behalf of the Company. The Company is charged for the cost of these operating expenses based on the level of services provided. Operating expenses, including compensation and retirement and other benefit programs, allocated to the Company were $38.8 million, $48.6 million and $48.6 million in 2002, 2001 and 2000, respectively. Of these costs, the Company retains investment related expenses on the invested assets of the Company. All other costs are ceded to ALIC under reinsurance agreements. INCOME TAXES The Company is a party to a federal income tax allocation agreement with the Corporation (Note 9). DEBT The Company has entered into an intercompany loan agreement with the Corporation. The amount of funds available to the Company at a given point in time is dependent upon the debt position of the Corporation. There was no outstanding balance at December 31, 2002 or 2001. 4. INVESTMENTS FAIR VALUES The amortized cost, gross unrealized gains and losses, and fair value for fixed income securities are as follows:
GROSS UNREALIZED AMORTIZED ------------------------------- FAIR (IN THOUSANDS) COST GAINS LOSSES VALUE ------------- ------------- -------------- ------------- AT DECEMBER 31, 2002 U.S. government and agencies $ 49,529 $ 6,661 $ - $ 56,190 Municipal 412 45 - 457 Corporate 67,717 6,105 (991) 72,831 Asset-backed securities 10,079 1,025 - 11,104 Mortgage-backed securities 31,226 1,809 (6) 33,029 ------------- -------------- -------------- ------------- Total fixed income securities $ 158,963 $ 15,645 $ (997) $ 173,611 ============= ============== ============== =============
F-10 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS
GROSS UNREALIZED AMORTIZED ----------------------------- FAIR COST GAINS LOSSES VALUE ------------ ------------ ------------- ------------- AT DECEMBER 31, 2001 U.S. government and agencies $ 44,832 $ 2,508 $ (24) $ 47,316 Municipal 1,815 20 (3) 1,832 Corporate 75,425 3,532 (650) 78,307 Asset-backed securities - - - - Mortgage-backed securities 32,082 1,447 (10) 33,519 ------------ ------------- ------------- ------------- Total fixed income securities $ 154,154 $ 7,507 $ (687) $ 160,974 ============ ============= ============= =============
SCHEDULED MATURITIES The scheduled maturities for fixed income securities are as follows at December 31, 2002:
AMORTIZED FAIR (IN THOUSANDS) COST VALUE --------------- --------------- Due in one year or less $ 1,894 $ 1,918 Due after one year through five years 46,819 50,248 Due after five years through ten years 52,682 57,300 Due after ten years 16,263 20,012 --------------- --------------- 117,658 129,478 Mortgage and asset-backed securities 41,305 44,133 --------------- --------------- Total $ 158,963 $ 173,611 =============== ===============
Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment, mortgage and asset-backed securities have not been reflected based on their contractual maturities. NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31, --------------------------------------------- (IN THOUSANDS) 2002 2001 2000 ------------- ------------- ------------- Fixed income securities $ 10,381 $ 10,566 $ 10,317 Short-term investments 135 409 587 ------------- ------------- ------------- Investment income, before expense 10,516 10,975 10,904 Investment expense 181 260 96 ------------- ------------- ------------- Net investment income $ 10,335 $ 10,715 $ 10,808 ============= ============= =============
REALIZED CAPITAL GAINS AND LOSSES, AFTER TAX Realized capital gains and losses by security type, for the year ended December 31, are as follows:
(IN THOUSANDS) 2002 2001 2000 ------------ ---------- ----------- Fixed income securities $ (1,984) $ 435 $ 419 Income taxes 694 (152) (147) ------------ ---------- ----------- Realized capital gains and losses, after tax $ (1,290) $ 283 $ 272 ============ ========== ===========
F-11 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS Realized capital gains and losses by transaction type, for the year ended December 31, are as follows:
(IN THOUSANDS) 2002 2001 2000 ------------ ---------- ----------- Write-downs in value $ (1,904) $ - $ - Sales - Fixed income securities (80) 435 419 ------------ ---------- ----------- Realized capital gains and losses (1,984) 435 419 Income taxes 694 (152) (147) ------------ ---------- ----------- Realized capital gains and losses, after-tax $ (1,290) $ 283 $ 272 ============ ========== ===========
Excluding calls and prepayments, gross gains of $54 thousand, $636 thousand and $807 thousand were realized on sales of fixed income securities during 2002, 2001 and 2000, respectively, and gross losses of $134 thousand, $201 thousand, and $388 thousand were realized on sales of fixed income securities during 2002, 2001 and 2000, respectively. UNREALIZED NET CAPITAL GAINS AND LOSSES Unrealized net capital gains and losses on fixed income securities included in Accumulated other comprehensive income at December 31, 2002 are as follows:
GROSS UNREALIZED FAIR ------------------------- UNREALIZED (IN THOUSANDS) VALUE GAINS LOSSES NET GAINS ------------ ----------- ----------- ------------- Fixed income securities $ 173,611 $ 15,645 $ (997) $ 14,648 ============ =========== =========== Deferred income taxes (5,127) ------------- Unrealized net capital gains and losses $ 9,521 =============
CHANGE IN UNREALIZED NET CAPITAL GAINS AND LOSSES
YEAR ENDED DECEMBER 31, ---------------------------------------------- (IN THOUSANDS) 2002 2001 2000 ------------ ------------ ------------ Fixed income securities $ 7,828 $ 2,512 $ 5,544 Deferred income taxes (2,740) (879) (1,941) ------------ ------------ ------------ Increase in unrealized net capital gains and losses $ 5,088 $ 1,633 $ 3,603 ============ ============ ============
SECURITIES ON DEPOSIT At December 31, 2002, fixed income securities with a carrying value of $10.2 million were on deposit with regulatory authorities as required by law. 5. FINANCIAL INSTRUMENTS In the normal course of business, the Company invests in various financial assets and incurs various financial liabilities. The fair value estimates of financial instruments presented below are not necessarily indicative of the amounts the Company might pay or receive in actual market transactions. Potential taxes and other transaction costs have not been considered in estimating fair value. The disclosures that follow do not reflect the fair value of the Company as a whole since a number of the Company's significant assets (including Reinsurance recoverable, net) and liabilities (including Reserve for life-contingent contract benefits and Deferred income taxes) are not considered financial instruments and are not carried at fair value. Other assets and liabilities considered financial instruments, such as Accrued investment income and Cash, are generally of a short-term nature. Their carrying values are deemed to approximate fair value. F-12 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS FINANCIAL ASSETS The carrying value and fair value of financial assets at December 31, are as follows:
2002 2001 ------------------------------- ------------------------------ CARRYING FAIR CARRYING FAIR (IN THOUSANDS) VALUE VALUE VALUE VALUE ------------- ------------- ------------- ------------- Fixed income securities $ 173,611 $ 173,611 $ 160,974 $ 160,974 Short-term investments 2,778 2,778 6,592 6,592 Separate Accounts 1,155,112 1,155,112 1,547,953 1,547,953
The fair value of publicly traded fixed income securities is based upon quoted market prices or dealer quotes. The fair value of non-publicly traded securities, primarily privately placed corporate obligations, is based on either widely accepted pricing valuation models which utilized internally developed ratings and independent third party data (e.g., term structures and current publicly traded bond prices) as inputs or independent third party pricing sources. Short-term investments are highly liquid investments with maturities of less than one year whose carrying values are deemed to approximate fair value. Separate Accounts assets are carried in the Statements of Financial Position at fair value based on quoted market prices. FINANCIAL LIABILITIES The carrying value and fair value of financial liabilities at December 31, are as follows:
2002 2001 ------------------------------ ----------------------------- CARRYING FAIR CARRYING FAIR (IN THOUSANDS) VALUE VALUE VALUE VALUE ------------- ------------ ------------ ------------ Contractholder funds on investment contracts $ 6,105,536 $ 5,863,243 $ 5,332,632 $ 5,086,856 Separate Accounts 1,155,112 1,155,112 1,547,953 1,547,953
Contractholder funds include interest-sensitive life insurance contracts and investment contracts. Interest-sensitive life insurance contracts and certain other contractholder liabilities are not considered financial instruments subject to fair value disclosure requirements. The fair value of investment contracts is based on the terms of the underlying contracts. Fixed annuities are valued at the account balance less surrender charges. Market value adjusted annuities' fair value is estimated to be the market adjusted surrender value. Equity indexed annuity contracts' fair value approximates carrying value since the embedded equity options are carried at market value in the financial statements. Separate Accounts liabilities are carried at the fair value of the underlying assets. OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS There were no off-balance-sheet financial instruments at December 31, 2002 or 2001. 6. RESERVE FOR LIFE-CONTINGENT CONTRACT BENEFITS AND CONTRACTHOLDER FUNDS Reserves for life-contingent contract benefits consist of payout annuities with life contingencies. The reserve calculation equals the present value of contractually fixed future benefits based on mortality and interest assumptions. The assumptions utilized for mortality generally include industry standard tables, such as the 1983 group annuity mortality table, and tables based on historical company experience. Interest rate assumptions vary from 2.4% to 7.7%. At December 31, Contractholder funds consists of the following:
(IN THOUSANDS) 2002 2001 -------------- -------------- Interest-sensitive life $ 121,760 $ 67,555 Investment contracts: Payout annuities 27,565 24,123 Fixed annuities 6,046,324 5,278,797 -------------- -------------- Total Contractholder funds $ 6,195,649 $ 5,370,475 ============== ==============
F-13 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS The following table highlights the key contract provisions relating to Contractholder funds:
PRODUCT INTEREST RATE WITHDRAWAL/SURRENDER CHARGES ------------------------------ --------------------------------------- --------------------------------------- Interest-sensitive life Interest rates credited range from Either a percentage of account 3.3% - 6.2% balance or dollar amount grading off generally over 20 years Investment contracts Interest rates credited range from Either a declining or a level 2.4% to 7.3% for payout annuities and percentage charge generally over nine 0.0% to 7.9% for fixed annuities years or less including equity-indexed annuities
Contractholder fund activity for the year ended December 31, was as follows:
(IN THOUSANDS) 2002 2001 --------------- --------------- Balance, beginning of year $ 5,370,475 $ 4,696,846 Deposits 1,143,977 1,125,746 Surrenders and withdrawals (399,161) (414,917) Death benefits (174,317) (158,610) Interest credited to contractholder funds 289,746 277,057 Transfers (to) from Separate Accounts (29,602) (155,315) Other (5,469) (332) --------------- --------------- Balance, end of year $ 6,195,649 $ 5,370,475 =============== ===============
7. THIRD PARTY ADMINISTRATION AGREEMENT On July 18, 2001, the Company entered into an administrative services agreement with American Maturity Life Insurance Company ("American Maturity"), which was effective as of January 2, 2001, to administer certain blocks of annuities that American Maturity reinsures to ALIC. Pursuant to the terms of the agreement, the Company is to provide insurance contract administration and financial services for all contracts covered under the reinsurance agreement. The administrative services agreement can be terminated by either the Company or American Maturity upon mutual consent or as otherwise provided for in the terms of the agreement. All administrative fees earned and administrative expenses incurred are ceded to ALIC in accordance with reinsurance agreements. 8. COMMITMENTS AND CONTINGENT LIABILITIES REGULATION AND LEGAL PROCEEDINGS The Company is subject to changing social, economic and regulatory conditions. State and federal regulatory initiatives and proceedings have varied and have included efforts to remove barriers preventing banks from engaging in the securities and insurance businesses, to change tax laws affecting the taxation of insurance companies and the tax treatment of insurance products which may impact the relative desirability of various personal investment products and to expand overall regulation. The ultimate changes and eventual effects, if any, of these initiatives are uncertain. Various legal and regulatory actions are currently pending that involve the Company and specific aspects of its conduct of business. Like other members of the insurance industry, the Company is the potential target of an increasing number of class action lawsuits and other types of litigation, some of which involve claims for substantial and/or indeterminate amounts (including punitive and treble damages) and the outcomes of which are unpredictable. This litigation is based on a variety of issues including insurance and claim settlement practices. However, at this time, based on their present status and the existence of the reinsurance agreement with ALIC, it is the opinion of management that the ultimate liability, if any, in one or more of these other actions in excess of F-14 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS amounts currently reserved is not expected to have a material effect on the results of operations, liquidity or financial position of the Company. GUARANTY FUNDS Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to contractholders and claimants. Amounts assessed to each company are typically related to its proportion of business written in a particular state. The Company's expenses related to these funds have been immaterial and are ceded to ALIC under reinsurance agreements. 9. INCOME TAXES For 1996, the Company filed a separate federal income tax return. Beginning in 1997, the Company joined the Corporation and its other eligible domestic subsidiaries (the "Allstate Group") in the filing of a consolidated federal income tax return and is party to a federal income tax allocation agreement (the "Allstate Tax Sharing Agreement"). Under the Allstate Tax Sharing Agreement, the Company pays to or receives from the Corporation the amount, if any, by which the Allstate Group's federal income tax liability is affected by virtue of inclusion of the Company in the consolidated federal income tax return. The Company has also entered into a supplemental tax sharing agreement with respect to reinsurance ceded to ALIC to allocate the tax benefits and detriments related to such reinsurance. Effectively, these agreements result in the Company's annual income tax provision being computed as if the Company filed a separate return, adjusted for the reinsurance ceded to ALIC. The Internal Revenue Service ("IRS") has completed its review of the Company's federal income tax returns through the 1996 tax year. Any adjustments that may result from IRS examinations of tax returns are not expected to have a material impact on the financial position, liquidity or result of operations of the Company. The components of the deferred income tax assets and liabilities at December 31, are as follows:
(IN THOUSANDS) 2002 2001 -------------- -------------- DEFERRED ASSETS Difference in tax bases of investments $ 501 $ - -------------- -------------- Total deferred assets 501 - DEFERRED LIABILITIES Unrealized net capital gains (5,127) (2,387) Difference in tax bases of investments - (220) Other liabilities (3) (3) -------------- -------------- Total deferred liabilities (5,130) (2,610) -------------- -------------- Net deferred liabilities $ (4,629) $ (2,610) ============== ==============
Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized based on the assumption that certain levels of income will be achieved. The components of income tax expense for the year ended December 31, are as follows:
(IN THOUSANDS) 2002 2001 2000 -------------- -------------- -------------- Current $ 3,560 $ 4,008 $ 3,730 Deferred (721) (112) 195 -------------- -------------- -------------- Total income tax expense $ 2,839 $ 3,896 $ 3,925 ============== ============== ==============
The Company paid income taxes of $7.4 million, $3.9 million and $2.4 million in 2002, 2001 and 2000, respectively. F-15 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the year ended December 31, is as follows:
2002 2001 2000 -------------- -------------- -------------- Statutory federal income tax rate 35.0% 35.0% 35.0% Adjustment to prior year tax liabilities (0.9) - - Other (0.1) (0.1) - -------------- -------------- -------------- Effective income tax rate 34.0% 34.9% 35.0% ============== ============== ==============
10. STATUTORY FINANCIAL INFORMATION The following table reconciles Net income for the year ended December 31, and Shareholder's equity at December 31, as reported herein in conformity with GAAP with total statutory net income and capital and surplus of the Company, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities:
NET INCOME SHAREHOLDER'S EQUITY -------------------------------------- ------------------------ (IN THOUSANDS) 2002 2001 2000 2002 2001 ---------- ---------- ---------- ---------- ---------- Balance per GAAP $ 5,512 $ 7,254 $ 7,302 $ 172,918 $ 162,318 Unrealized gain on fixed income securities - - - (14,648) (6,820) Deferred income taxes (710) (65) (554) 3,524 269 Reserves and non-admitted assets 155 (150) (197) (1,000) (7,699) Other 1 (55) 46 (393) 5,973 ---------- ---------- ---------- ---------- ---------- Balance per statutory accounting practices $ 4,958 $ 6,984 $ 6,597 $ 160,401 $ 154,041 ========== ========== ========== ========== ==========
The Company prepares its statutory-basis financial statements in accordance with accounting practices prescribed or permitted by the State of Arizona. Effective January 1, 2001, the State of Arizona required insurance companies domiciled in its state to prepare statutory-basis financial statements in accordance with the National Association of Insurance Commissioners ("NAIC") Accounting Practices and Procedures Manual ("Codification") subject to any deviations prescribed or permitted by the State of Arizona insurance commissioner. Accounting changes adopted to conform to the provisions of Codification are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned funds (surplus) in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods. The Company reported a decrease to surplus of $463 thousand effective January 1, 2001 as a result of recognizing a net deferred tax liability. DIVIDENDS The ability of the Company to pay dividends is dependent on business conditions, income, cash requirements of the Company and other relevant factors. The amount of dividends that can be paid to the shareholder, without approval by the state insurance regulator is limited by specific surplus and net income criteria as provided in the dividend restriction provision of the Arizona Insurance Holding Company System laws. The maximum amount of dividends that the Company can distribute during 2003 without prior approval of the Arizona Department of Insurance is $6.9 million. F-16 GLENBROOK LIFE AND ANNUITY COMPANY NOTES TO FINANCIAL STATEMENTS RISK-BASED CAPITAL The NAIC has a standard for assessing the solvency of insurance companies, which is referred to as risk-based capital ("RBC"). The requirement consists of a formula for determining each insurer's RBC and a model law specifying regulatory actions if an insurer's RBC falls below specified levels. At December 31, 2002, RBC for the Company was significantly above levels that would require regulatory action. 11. OTHER COMPREHENSIVE INCOME The components of Other comprehensive income on a pretax and after-tax basis for the year ended December 31, are as follows: (IN THOUSANDS) UNREALIZED CAPITAL GAINS AND LOSSES:
2002 ------------------------------------------------- After- Pretax Tax tax -------------- -------------- -------------- Unrealized holding gains arising during the period $ 5,844 $ (2,046) $ 3,798 Less: reclassification adjustments (1,984) 694 (1,290) -------------- -------------- -------------- Unrealized net capital gains 7,828 (2,740) 5,088 -------------- -------------- -------------- Other comprehensive income $ 7,828 $ (2,740) $ 5,088 ============== ============== ============== 2001 ------------------------------------------------- After- Pretax Tax tax -------------- -------------- -------------- Unrealized holding gains arising during the period $ 2,948 $ (1,032) $ 1,916 Less: reclassification adjustments 436 (153) 283 -------------- -------------- -------------- Unrealized net capital gains 2,512 (879) 1,633 -------------- -------------- -------------- Other comprehensive income $ 2,512 $ (879) $ 1,633 ============== ============== ============== 2000 ------------------------------------------------- After- Pretax Tax tax -------------- -------------- -------------- Unrealized holding gains arising during the period $ 5,752 $ (2,014) $ 3,738 Less: reclassification adjustments 208 (73) 135 -------------- -------------- -------------- Unrealized net capital gains 5,544 (1,941) 3,603 -------------- -------------- -------------- Other comprehensive income $ 5,544 $ (1,941) $ 3,603 ============== ============== ==============
F-17 GLENBROOK LIFE AND ANNUITY COMPANY SCHEDULE IV--REINSURANCE (IN THOUSANDS)
GROSS NET YEAR ENDED DECEMBER 31, 2002 AMOUNT CEDED AMOUNT ----------------------------------- ------------ ------------ ------------ Life insurance in force $ 283,913 $ 283,913 $ - ============ ============ ============ Premiums and contract charges: Life and annuities $ 30,368 $ 30,368 $ - ============ ============ ============ GROSS NET YEAR ENDED DECEMBER 31, 2001 AMOUNT CEDED AMOUNT ----------------------------------- ------------ ------------ ------------ Life insurance in force $ 187,400 $ 187,400 $ - ============ ============ ============ Premiums and contract charges: Life and annuities $ 31,711 $ 31,711 $ - ============ ============ ============ GROSS NET YEAR ENDED DECEMBER 31, 2000 AMOUNT CEDED AMOUNT ----------------------------------- ------------ ------------ ------------ Life insurance in force $ 88,042 $ 88,042 $ - ============ ============ ============ Premiums and contract charges: Life and annuities $ 37,965 $ 37,965 $ - ============ ============ ============
F-18 -------------------------------------------- GLENBROOK LIFE MULTI- MANAGER VARIABLE ACCOUNT FINANCIAL STATEMENTS AS OF DECEMBER 31, 2002 AND FOR THE PERIODS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001, AND INDEPENDENT AUDITORS' REPORT INDEPENDENT AUDITORS' REPORT To the Board of Directors and Shareholder of Glenbrook Life and Annuity Company: We have audited the accompanying statements of net assets of each of the individual sub-accounts disclosed in Note 1 which comprise the Glenbrook Life Multi-Manager Variable Account (the "Account") as of December 31, 2002, the related statements of operations for the period then ended and the statements of changes in net assets for each of the periods in the two year period then ended for each of the individual sub-accounts which comprise the Account. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 2002 by correspondence with the Account's custodians. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of each of the individual sub-accounts which comprise the Glenbrook Life Multi-Manager Variable Account as of December 31, 2002, the results of operations for the period then ended for each of the individual sub-accounts and the changes in their net assets for each of the periods in the two year period then ended in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Chicago, Illinois March 7, 2003 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts ---------------------------------------------------------------------------------- AIM V. I. Aggressive AIM V. I. AIM V. I. Capital AIM V. I. AIM V. I. Dent Growth Balanced Appreciation Core Equity Demographics ------------- ------------- ----------------- ------------- -------------- ASSETS Investments at fair value $ 73,423 $ 3,776,416 $ 3,312,701 $ 2,707,614 $ 5,706 ------------- ------------- ----------------- ------------- -------------- Total assets $ 73,423 $ 3,776,416 $ 3,312,701 $ 2,707,614 $ 5,706 ============= ============= ================= ============= ============== NET ASSETS Accumulation units $ 73,423 $ 3,776,416 $ 3,312,701 $ 2,707,614 $ 5,706 Contracts in payout (annuitization) period -- -- -- -- -- ------------- ------------- ----------------- ------------- -------------- Total net assets $ 73,423 $ 3,776,416 $ 3,312,701 $ 2,707,614 $ 5,706 ============= ============= ================= ============= ============== FUND SHARE INFORMATION Number of shares 8,783 431,590 201,625 159,365 1,505 ============= ============= ================= ============= ============== Cost $ 89,761 $ 4,924,009 $ 6,141,604 $ 4,096,240 $ 8,118 ============= ============= ================= ============= ==============
See notes to financial statements. 2 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------ AIM Variable Insurance Funds Sub-Accounts --------------------------------------------------------------------------------- AIM V. I. AIM V. I. Diversified AIM V. I. Global Government AIM V. I. AIM V. I. High Income Utilities Securities Growth Yield ------------- ---------------- ------------- ------------- -------------- ASSETS Investments at fair value $ 1,156,395 $ 14,890 $ 755,694 $ 1,981,063 $ 509,822 ------------- ---------------- ------------- ------------- -------------- Total assets $ 1,156,395 $ 14,890 $ 755,694 $ 1,981,063 $ 509,822 ============= ================ ============= ============= ============== NET ASSETS Accumulation units $ 1,156,395 $ 14,890 $ 755,694 $ 1,981,063 $ 509,822 Contracts in payout (annuitization) period -- -- -- -- -- ------------- ---------------- ------------- ------------- -------------- Total net assets $ 1,156,395 $ 14,890 $ 755,694 $ 1,981,063 $ 509,822 ============= ================ ============= ============= ============== FUND SHARE INFORMATION Number of shares 134,464 1,530 60,943 175,315 101,964 ============= ================ ============= ============= ============== Cost $ 1,218,447 $ 32,454 $ 737,146 $ 4,415,429 $ 642,597 ============= ================ ============= ============= ==============
See notes to financial statements. 3 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------------ Dreyfus Socially Responsible AIM Variable Insurance Funds American Century Variable Growth Fund, Inc. Sub-Accounts Portfolios, Inc. Sub-Accounts Sub-Account ------------------------------------- ------------------------------- ---------------- AIM V. I. American American Dreyfus Socially International AIM V. I. Premier Century Century Responsible Growth Equity VP Balanced VP International Growth Fund --------------- ----------------- ------------ ---------------- ---------------- ASSETS Investments at fair value $ 108,860 $ 4,605,948 $ 113,635 $ 73,452 $ 259,414 --------------- ----------------- ------------ ---------------- ---------------- Total assets $ 108,860 $ 4,605,948 $ 113,635 $ 73,452 $ 259,414 =============== ================= ============ ================ ================ NET ASSETS Accumulation units $ 108,860 $ 4,555,677 $ 113,635 $ 73,452 $ 259,414 Contracts in payout (annuitization) period -- 50,271 -- -- -- --------------- ----------------- ------------ ---------------- ---------------- Total net assets $ 108,860 $ 4,605,948 $ 113,635 $ 73,452 $ 259,414 =============== ================= ============ ================ ================ FUND SHARE INFORMATION Number of shares 8,716 283,967 19,559 14,098 13,726 =============== ================= ============ ================ ================ Cost $ 195,437 $ 7,825,012 $ 144,135 $ 157,012 $ 418,639 =============== ================= ============ ================ ================
See notes to financial statements. 4 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- Dreyfus Stock Federated Index Fund Dreyfus Variable Insurance Series Sub-Account Investment Fund Sub-Accounts Sub-Account ------------- -------------------------------------------- --------------- VIF VIF VIF Dreyfus Stock Growth and Money Small Company Federated Prime Index Fund Income Market Stock Money Fund II ------------- ---------- ----------- ------------- --------------- ASSETS Investments at fair value $ 1,907,269 $ 340,359 $ 2,651,775 $ 46,469 $ 8,524,285 ------------- ---------- ----------- ------------- --------------- Total assets $ 1,907,269 $ 340,359 $ 2,651,775 $ 46,469 $ 8,524,285 ============= ========== =========== ============= =============== NET ASSETS Accumulation units $ 1,907,269 $ 340,359 $ 2,651,775 $ 46,469 $ 8,524,285 Contracts in payout (annuitization) period -- -- -- -- -- ------------- ---------- ----------- ------------- --------------- Total net assets $ 1,907,269 $ 340,359 $ 2,651,775 $ 46,469 $ 8,524,285 ============= ========== =========== ============= =============== FUND SHARE INFORMATION Number of shares 84,881 21,193 2,651,775 3,261 8,524,285 ============= ========== =========== ============= =============== Cost $ 2,496,025 $ 454,600 $ 2,651,775 $ 49,056 $ 8,524,285 ============= ========== =========== ============= ===============
See notes to financial statements. 5 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund Sub-Accounts ---------------------------------------------------------------------------- VIP Equity- VIP High VIP Contrafund Income VIP Growth Income VIP Index 500 ---------------- ----------- ------------ ------------ ------------- ASSETS Investments at fair value $ 4,420,650 $ 3,956,990 $ 3,882,860 $ 1,284,294 $ 2,912,087 ---------------- ----------- ------------ ------------ ------------- Total assets $ 4,420,650 $ 3,956,990 $ 3,882,860 $ 1,284,294 $ 2,912,087 ================ =========== ============ ============ ============= NET ASSETS Accumulation units $ 4,347,734 $ 3,917,472 $ 3,882,860 $ 1,284,294 $ 2,912,087 Contracts in payout (annuitization) period 72,916 39,518 -- -- -- ---------------- ----------- ------------ ------------ ------------- Total net assets $ 4,420,650 $ 3,956,990 $ 3,882,860 $ 1,284,294 $ 2,912,087 ================ =========== ============ ============ ============= FUND SHARE INFORMATION Number of shares 244,235 217,896 165,651 216,576 29,144 ================ =========== ============ ============ ============= Cost $ 5,775,315 $ 5,026,351 $ 7,479,701 $ 1,708,215 $ 4,200,538 ================ =========== ============ ============ =============
See notes to financial statements. 6 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund Fidelity Variable Insurance Products Fund Sub-Accounts (Service Class 2) Sub-Accounts ----------------- ---------------------------------------------------------------- VIP Asset Manager VIP Contrafund VIP Equity- VIP Growth Growth (Service (Service Income (Service (Service VIP Overseas Class 2) Class 2) Class 2) Class 2) ----------------- ---------------- -------------- --------------- ---------- ASSETS Investments at fair value $ 487,584 $ 21,117 $ 867,099 $ 2,443,435 $ 638,332 ----------------- ---------------- -------------- --------------- ---------- Total assets $ 487,584 $ 21,117 $ 867,099 $ 2,443,435 $ 638,332 ================= ================ ============== =============== ========== NET ASSETS Accumulation units $ 487,584 $ 21,117 $ 867,099 $ 2,443,435 $ 638,332 Contracts in payout (annuitization) period -- -- -- -- -- ----------------- ---------------- -------------- --------------- ---------- Total net assets $ 487,584 $ 21,117 $ 867,099 $ 2,443,435 $ 638,332 ================= ================ ============== =============== ========== FUND SHARE INFORMATION Number of shares 44,407 2,068 48,306 135,746 27,502 ================= ================ ============== =============== ========== Cost $ 873,974 $ 23,247 $ 941,471 $ 2,848,659 $ 812,255 ================= ================ ============== =============== ==========
See notes to financial statements. 7 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ----------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Fidelity Variable Insurance Products Variable Insurance Fund (Service Class 2) Sub-Accounts Products Trust Sub-Accounts ------------------------------------------------ ---------------------------- VIP High VIP Index 500 VIP Overseas Franklin Income (Service (Service (Service Franklin Technology Class 2) Class 2) Class 2) Small Cap Securities --------------- ------------- ------------ ------------ ------------- ASSETS Investments at fair value $ 634,211 $ 1,515,750 $ 44,479 $ 182,474 $ 5,054 --------------- ------------- ------------ ------------ ------------- Total assets $ 634,211 $ 1,515,750 $ 44,479 $ 182,474 $ 5,054 =============== ============= ============ ============ ============= NET ASSETS Accumulation units $ 634,211 $ 1,515,750 $ 44,479 $ 182,474 $ 5,054 Contracts in payout (annuitization) period -- -- -- -- -- --------------- ------------- ------------ ------------ ------------- Total net assets $ 634,211 $ 1,515,750 $ 44,479 $ 182,474 $ 5,054 =============== ============= ============ ============ ============= FUND SHARE INFORMATION Number of shares 108,043 15,266 4,081 14,368 1,690 =============== ============= ============ ============ ============= Cost $ 619,772 $ 1,874,203 $ 56,163 $ 223,926 $ 6,292 =============== ============= ============ ============ =============
See notes to financial statements. 8 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ----------------------------------------------------------------------------------------------------------------------- Franklin Templeton Variable Insurance Products Trust Sub-Accounts -------------------------------------------------------------------------- Templeton Developing Templeton Templeton Templeton Mutual Shares Markets Foreign Global Income Growth Securities Securities Securities Securities Securities ------------- ----------- ------------ ------------- ------------- ASSETS Investments at fair value $ 714,467 $ 7,094 $ 132,192 $ 460,500 $ 678,665 ------------- ----------- ------------ ------------- ------------- Total assets $ 714,467 $ 7,094 $ 132,192 $ 460,500 $ 678,665 ============= =========== ============ ============= ============= NET ASSETS Accumulation units $ 714,467 $ 7,094 $ 132,192 $ 460,500 $ 678,665 Contracts in payout (annuitization) period -- -- -- -- -- ------------- ----------- ------------ ------------- ------------- Total net assets $ 714,467 $ 7,094 $ 132,192 $ 460,500 $ 678,665 ============= =========== ============ ============= ============= FUND SHARE INFORMATION Number of shares 59,440 1,513 14,033 33,885 78,915 ============= =========== ============ ============= ============= Cost $ 802,886 $ 6,834 $ 171,191 $ 387,273 $ 878,843 ============= =========== ============ ============= =============
See notes to financial statements. 9 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------- Goldman Sachs Variable Insurance Trust Sub-Accounts ------------------------------------------------------------------------- VIT CORE VIT VIT Capital Small Cap VIT CORE VIT Growth International Growth Equity U.S. Equity and Income Equity ------------ ------------ ------------ ------------ ------------- ASSETS Investments at fair value $ 64,184 $ 278,585 $ 207,986 $ 6,235 $ 16,307 ------------ ------------ ------------ ------------ ------------- Total assets $ 64,184 $ 278,585 $ 207,986 $ 6,235 $ 16,307 ============ ============ ============ ============ ============= NET ASSETS Accumulation units $ 64,184 $ 278,585 $ 207,986 $ 6,235 $ 16,307 Contracts in payout (annuitization) period -- -- -- -- -- ------------ ------------ ------------ ------------ ------------- Total net assets $ 64,184 $ 278,585 $ 207,986 $ 6,235 $ 16,307 ============ ============ ============ ============ ============= FUND SHARE INFORMATION Number of shares 8,260 30,314 24,498 766 2,249 ============ ============ ============ ============ ============= Cost $ 95,802 $ 294,478 $ 293,014 $ 8,517 $ 30,890 ============ ============ ============ ============ =============
See notes to financial statements. 10 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Variable Insurance Trust LSA Variable MFS Variable Insurance Sub-Accounts Series Trust Sub-Accounts Trust Sub-Accounts --------------- --------------------------- ---------------------------- VIT Mid Cap LSA Focused LSA Growth MFS Emerging MFS Investors Value Equity Equity Growth Trust --------------- ------------ ------------ ------------ ------------- ASSETS Investments at fair value $ 5,972 $ 27,392 $ 39,048 $ 2,095,451 $ 675,347 --------------- ------------ ------------ ------------ ------------- Total assets $ 5,972 $ 27,392 $ 39,048 $ 2,095,451 $ 675,347 =============== ============ ============ ============ ============= NET ASSETS Accumulation units $ 5,972 $ 27,392 $ 39,048 $ 2,095,451 $ 675,347 Contracts in payout (annuitization) period -- -- -- -- -- --------------- ------------ ------------ ------------ ------------- Total net assets $ 5,972 $ 27,392 $ 39,048 $ 2,095,451 $ 675,347 =============== ============ ============ ============ ============= FUND SHARE INFORMATION Number of shares 563 4,528 5,651 175,940 50,137 =============== ============ ============ ============ ============= Cost $ 6,023 $ 33,297 $ 41,378 $ 4,731,085 $ 924,302 =============== ============ ============ ============ =============
See notes to financial statements. 11 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------ MFS Variable Insurance Trust MFS Variable Insurance Trust Sub-Accounts (Service Class) Sub-Accounts --------------------------------------------- --------------------------------- MFS Emerging MFS Investors MFS New Growth (Service Trust (Service Discovery MFS Research MFS Utilities Class) Class) ------------ ------------ --------------- --------------- --------------- ASSETS Investments at fair value $ 283,302 $ 1,362,207 $ 16,315 $ 495,950 $ 631,622 ------------ ------------ --------------- --------------- --------------- Total assets $ 283,302 $ 1,362,207 $ 16,315 $ 495,950 $ 631,622 ============ ============ =============== =============== =============== NET ASSETS Accumulation units $ 283,302 $ 1,362,207 $ 16,315 $ 495,950 $ 631,622 Contracts in payout (annuitization) period -- -- -- -- -- ------------ ------------ --------------- --------------- --------------- Total net assets $ 283,302 $ 1,362,207 $ 16,315 $ 495,950 $ 631,622 ============ ============ =============== =============== =============== FUND SHARE INFORMATION Number of shares 27,136 126,364 1,356 41,817 47,101 ============ ============ =============== =============== =============== Cost $ 358,169 $ 2,330,231 $ 19,106 $ 675,268 $ 746,087 ============ ============ =============== =============== ===============
See notes to financial statements. 12 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 -------------------------------------------------------------------------------------------------------------------------- MFS Variable Insurance Neuberger & Berman Advisers Trust (Service Class) Sub-Accounts Management Trust Sub-Accounts -------------------------------------------- ----------------------------- MFS New Discovery MFS Research MFS Utilities AMT (Service (Service (Service AMT Mid-Cap Class) Class) Class) Guardian Growth ------------- ------------ ------------- ------------- ------------- ASSETS Investments at fair value $ 669,344 $ 329,649 $ 440,353 $ 6,458 $ 19,609 ------------- ------------ ------------- ------------- ------------- Total assets $ 669,344 $ 329,649 $ 440,353 $ 6,458 $ 19,609 ============= ============ ============= ============= ============= NET ASSETS Accumulation units $ 669,344 $ 329,649 $ 440,353 $ 6,458 $ 19,609 Contracts in payout (annuitization) period -- -- -- -- -- ------------- ------------ ------------- ------------- ------------- Total net assets $ 669,344 $ 329,649 $ 440,353 $ 6,458 $ 19,609 ============= ============ ============= ============= ============= FUND SHARE INFORMATION Number of shares 64,484 30,694 36,757 604 1,638 ============= ============ ============= ============= ============= Cost $ 802,251 $ 407,208 $ 580,019 $ 9,343 $ 39,494 ============= ============ ============= ============= =============
See notes to financial statements. 13 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------- Neuberger & Berman Advisers Management Trust Sub-Accounts Oppenheimer Variable Account Funds Sub-Accounts ---------------- --------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Oppenheimer Main Street AMT Aggressive Capital Global Growth & Partners Growth Appreciation Securities Income ---------------- ----------- ------------ ------------ ------------- ASSETS Investments at fair value $ 98,488 $ 1,973,558 $ 5,178,365 $ 2,554,876 $ 6,951,422 ---------------- ----------- ------------ ------------ ------------- Total assets $ 98,488 $ 1,973,558 $ 5,178,365 $ 2,554,876 $ 6,951,422 ================ =========== ============ ============ ============= NET ASSETS Accumulation units $ 98,488 $ 1,973,558 $ 5,178,365 $ 2,554,876 $ 6,951,422 Contracts in payout (annuitization) period -- -- -- -- -- ---------------- ----------- ------------ ------------ ------------- Total net assets $ 98,488 $ 1,973,558 $ 5,178,365 $ 2,554,876 $ 6,951,422 ================ =========== ============ ============ ============= FUND SHARE INFORMATION Number of shares 8,639 67,518 194,529 144,343 453,748 ================ =========== ============ ============ ============= Cost $ 157,936 $ 3,314,674 $ 7,123,323 $ 3,571,263 $ 9,087,107 ================ =========== ============ ============ =============
See notes to financial statements. 14 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------ Oppenheimer Variable Account Funds Sub-Accounts Putnam Variable Trust Sub-Accounts -------------------------- ----------------------------------------------- Oppenheimer Oppenheimer Multiple Strategic VT Diversified VT Growth VT Growth Strategies Bond Income and Income Opportunities ----------- ------------ -------------- ------------ --------------- ASSETS Investments at fair value $ 4,566,886 $ 5,172,856 $ 1,076,844 $ 460,473 $ 102,793 ----------- ------------ -------------- ------------ --------------- Total assets $ 4,566,886 $ 5,172,856 $ 1,076,844 $ 460,473 $ 102,793 =========== ============ ============== ============ =============== NET ASSETS Accumulation units $ 4,566,886 $ 5,172,856 $ 1,076,844 $ 460,473 $ 102,793 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ------------ -------------- ------------ --------------- Total net assets $ 4,566,886 $ 5,172,856 $ 1,076,844 $ 460,473 $ 102,793 =========== ============ ============== ============ =============== FUND SHARE INFORMATION Number of shares 347,028 1,131,916 126,986 24,703 27,558 =========== ============ ============== ============ =============== Cost $ 5,138,544 $ 5,077,546 $ 1,068,096 $ 561,448 $ 124,895 =========== ============ ============== ============ ===============
See notes to financial statements. 15 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 -------------------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts ----------------------------------------------------------------- VT Health VT International VT VT VT Sciences Growth New Value Research Voyager II ---------- ---------------- --------- -------- ---------- ASSETS Investments at fair value $ 611,185 $ 7,576 $ 449,729 $ 56,709 $ 600,890 ---------- ---------------- --------- -------- ---------- Total assets $ 611,185 $ 7,576 $ 449,729 $ 56,709 $ 600,890 ========== ================ ========= ======== ========== NET ASSETS Accumulation units $ 611,185 $ 7,576 $ 449,729 $ 56,709 $ 600,890 Contracts in payout (annuitization) period -- -- -- -- -- ---------- ---------------- --------- -------- ---------- Total net assets $ 611,185 $ 7,576 $ 449,729 $ 56,709 $ 600,890 ========== ================ ========= ======== ========== FUND SHARE INFORMATION Number of shares 65,578 750 41,146 6,695 171,683 ========== ================ ========= ======== ========== Cost $ 730,683 $ 7,756 $ 501,147 $ 60,710 $ 789,862 ========== ================ ========= ======== ==========
See notes to financial statements. 16 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------ STI Classic Variable Trust Sub-Accounts --------------------------------------------------------------------------- STI Capital STI Growth STI International STI Investment STI Mid-Cap Appreciation & Income Equity Grade Bond Equity ------------ ----------- ----------------- -------------- ----------- ASSETS Investments at fair value $ 3,682,895 $ 2,363,609 $ 306,778 $ 5,691,902 $ 1,300,766 ------------ ----------- ----------------- -------------- ----------- Total assets $ 3,682,895 $ 2,363,609 $ 306,778 $ 5,691,902 $ 1,300,766 ============ =========== ================= ============== =========== NET ASSETS Accumulation units $ 3,682,895 $ 2,363,609 $ 306,778 $ 5,691,902 $ 1,300,766 Contracts in payout (annuitization) period -- -- -- -- -- ------------ ----------- ----------------- -------------- ----------- Total net assets $ 3,682,895 $ 2,363,609 $ 306,778 $ 5,691,902 $ 1,300,766 ============ =========== ================= ============== =========== FUND SHARE INFORMATION Number of shares 283,082 293,616 44,332 553,149 164,031 ============ =========== ================= ============== =========== Cost $ 4,427,326 $ 2,952,526 $ 398,013 $ 5,546,227 $ 1,701,318 ============ =========== ================= ============== ===========
See notes to financial statements. 17 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------ STI Classic Variable Trust Sub-Accounts The Universal Institutional Funds, Inc. Sub-Accounts ------------------------- ----------------------------------------------------- STI Value Van Kampen Van Kampen Van Kampen STI Small Income UIF Equity UIF Fixed UIF Global Cap Equity Stock Growth Income Value Equity ----------- ----------- --------------- --------------- ----------------- ASSETS Investments at fair value $ 2,883,953 $ 1,791,382 $ 138,943 $ 1,398,490 $ 40,508 ----------- ----------- --------------- --------------- ----------------- Total assets $ 2,883,953 $ 1,791,382 $ 138,943 $ 1,398,490 $ 40,508 =========== =========== =============== =============== ================= NET ASSETS Accumulation units $ 2,883,953 $ 1,791,382 $ 138,943 $ 1,398,490 $ 40,508 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- --------------- --------------- ----------------- Total net assets $ 2,883,953 $ 1,791,382 $ 138,943 $ 1,398,490 $ 40,508 =========== =========== =============== =============== ================= FUND SHARE INFORMATION Number of shares 268,275 172,414 13,582 125,764 4,117 =========== =========== =============== =============== ================= Cost $ 2,872,678 $ 2,086,970 $ 227,271 $ 1,402,375 $ 49,890 =========== =========== =============== =============== =================
See notes to financial statements. 18 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF NET ASSETS DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------ The Universal Institutional Funds, Inc. Sub-Accounts --------------------------------------------------------- Van Kampen Van Kampen UIF Mid Cap UIF U.S. Real Van Kampen Value Estate UIF Value ----------------- ----------------- ----------------- ASSETS Investments at fair value $ 435,191 $ 5,294 $ 193,043 ----------------- ----------------- ----------------- Total assets $ 435,191 $ 5,294 $ 193,043 ================= ================= ================= NET ASSETS Accumulation units $ 435,191 $ 5,294 $ 193,043 Contracts in payout (annuitization) period -- -- -- ----------------- ----------------- ----------------- Total net assets $ 435,191 $ 5,294 $ 193,043 ================= ================= ================= FUND SHARE INFORMATION Number of shares 41,526 467 19,638 ================= ================= ================= Cost $ 567,657 $ 5,462 $ 231,281 ================= ================= =================
See notes to financial statements. 19 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts -------------------------------------------------------------------------------- AIM V. I. Aggressive AIM V. I. AIM V. I. Capital AIM V. I. AIM V. I. Dent Growth Balanced Appreciation Core Equity (a) Demographics ---------- ------------ ----------------- --------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ -- $ 102,749 $ -- $ 9,968 $ -- Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (1,021) (54,802) (57,463) (44,368) (121) Administrative expense (72) (4,083) (4,221) (3,274) (6) ---------- ------------ ----------------- --------------- -------------- Net investment income (loss) (1,093) 43,864 (61,684) (37,674) (127) ---------- ------------ ----------------- --------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 34,048 1,076,863 970,054 877,905 2,420 Cost of investments sold 37,459 1,344,863 1,662,122 1,249,040 2,887 ---------- ------------ ----------------- --------------- -------------- Realized gains (losses) on fund shares (3,411) (268,000) (692,068) (371,135) (467) Realized gain distributions -- -- 1 -- -- ---------- ------------ ----------------- --------------- -------------- Net realized gains (losses) (3,411) (268,000) (692,067) (371,135) (467) Change in unrealized gains (losses) (18,724) (628,541) (541,646) (213,825) (2,350) ---------- ------------ ----------------- --------------- -------------- Net realized and unrealized gains (losses) on investments (22,135) (896,541) (1,233,713) (584,960) (2,817) ---------- ------------ ----------------- --------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (23,228) $ (852,677) $ (1,295,397) $ (622,634) $ (2,944) ========== ============ ================= =============== ==============
(a) Previously known as AIM V. I. Growth and Income See notes to financial statements. 20 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------ AIM Variable Insurance Funds Sub-Accounts ---------------------------------------------------------------------------- AIM V. I. AIM V. I. Diversified AIM V. I. Global Government AIM V. I. AIM V. I. High Income Utilities Securities Growth Yield ----------- ---------------- ---------- ------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 88,610 $ 522 $ 13,832 $ -- $ -- Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (7,602) (212) (6,810) (35,369) (7,523) Administrative expense (632) (17) (556) (2,556) (568) ----------- ---------------- ---------- ------------- -------------- Net investment income (loss) 80,376 293 6,466 (37,925) (8,091) ----------- ---------------- ---------- ------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 61,261 235 446,857 582,644 208,961 Cost of investments sold 68,687 458 427,838 1,116,993 276,554 ----------- ---------------- ---------- ------------- -------------- Realized gains (losses) on fund shares (7,426) (223) 19,019 (534,349) (67,593) Realized gain distributions -- -- -- -- -- ----------- ---------------- ---------- ------------- -------------- Net realized gains (losses) (7,426) (223) 19,019 (534,349) (67,593) Change in unrealized gains (losses) (38,755) (5,453) 13,712 (465,035) 27,100 ----------- ---------------- ---------- ------------- -------------- Net realized and unrealized gains (losses) on investments (46,181) (5,676) 32,731 (999,384) (40,493) ----------- ---------------- ---------- ------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 34,195 $ (5,383) $ 39,197 $ (1,037,309) $ (48,584) =========== ================ ========== ============= ==============
See notes to financial statements. 21 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- Dreyfus Socially Responsible AIM Variable Insurance Funds American Century Variable Growth Fund, Inc. Sub-Accounts Portfolios, Inc. Sub-Accounts Sub-Account ----------------------------- ------------------------------ ----------------- AIM V. I. AIM V. I. American American Dreyfus Socially International Premier Century Century Responsible Growth (b) Equity (c) VP Balanced VP International Growth Fund --------------- ------------ ----------- ---------------- ----------------- NET INVESTMENT INCOME (LOSS) Dividends $ 712 $ 18,669 $ 3,581 $ 884 $ 696 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (1,700) (81,458) (1,789) (1,371) (3,997) Administrative expense (134) (6,061) (135) (102) (290) --------------- ------------ ----------- ---------------- ----------------- Net investment income (loss) (1,122) (68,850) 1,657 (589) (3,591) --------------- ------------ ----------- ---------------- ----------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 18,958 1,738,616 51,744 30,779 52,583 Cost of investments sold 28,734 2,722,523 65,085 60,925 73,987 --------------- ------------ ----------- ---------------- ----------------- Realized gains (losses) on fund shares (9,776) (983,907) (13,341) (30,146) (21,404) Realized gain distributions -- -- -- -- -- --------------- ------------ ----------- ---------------- ----------------- Net realized gains (losses) (9,776) (983,907) (13,341) (30,146) (21,404) Change in unrealized gains (losses) (13,701) (1,372,229) (6,718) 5,906 (83,671) --------------- ------------ ----------- ---------------- ----------------- Net realized and unrealized gains (losses) on investments (23,477) (2,356,136) (20,059) (24,240) (105,075) --------------- ------------ ----------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (24,599) $ (2,424,986) $ (18,402) $ (24,829) $ (108,666) =============== ============ =========== ================ =================
(b) Previously known as AIM V. I. International Equity (c) Previously known as AIM V. I. Value See notes to financial statements. 22 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- Dreyfus Stock Federated Index Fund Dreyfus Variable Investment Insurance Series Sub-Account Fund Sub-Accounts Sub-Account ------------- ------------------------------------------ ---------------- VIF VIF VIF Dreyfus Stock Growth and Money Small Company Federated Prime Index Fund Income Market Stock Money Fund II ------------- ---------- ----------- ------------- ---------------- NET INVESTMENT INCOME (LOSS) Dividends $ 28,559 $ 2,496 $ 25,040 $ 132 $ 100,291 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (27,075) (5,252) (26,823) (780) (99,433) Administrative expense (2,045) (412) (2,051) (57) (7,184) ------------- ---------- ----------- ------------- ---------------- Net investment income (loss) (561) (3,168) (3,834) (705) (6,326) ------------- ---------- ----------- ------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 527,123 112,478 2,370,402 6,279 3,707,274 Cost of investments sold 678,626 140,779 2,370,402 6,075 3,707,274 ------------- ---------- ----------- ------------- ---------------- Realized gains (losses) on fund shares (151,503) (28,301) -- 204 -- Realized gain distributions 1 2 -- -- -- ------------- ---------- ----------- ------------- ---------------- Net realized gains (losses) (151,502) (28,299) -- 204 -- Change in unrealized gains (losses) (427,992) (102,279) -- (12,677) -- ------------- ---------- ----------- ------------- ---------------- Net realized and unrealized gains (losses) on investments (579,494) (130,578) -- (12,473) -- ------------- ---------- ----------- ------------- ---------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (580,055) $ (133,746) $ (3,834) $ (13,178) $ (6,326) ============= ========== =========== ============= ================
See notes to financial statements. 23 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund Sub-Accounts ------------------------------------------------------------------------------- VIP Equity- VIP High VIP Contrafund Income VIP Growth Income VIP Index 500 -------------- ------------- ------------- ---------- ------------- NET INVESTMENT INCOME (LOSS) Dividends $ 45,110 $ 85,649 $ 14,319 $ 143,981 $ 47,697 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (66,802) (59,756) (67,712) (16,084) (43,953) Administrative expense (5,125) (4,793) (5,295) (1,321) (3,442) -------------- ------------- ------------- ---------- ------------- Net investment income (loss) (26,817) 21,100 (58,688) 126,576 302 -------------- ------------- ------------- ---------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 1,221,201 1,190,131 1,288,843 443,400 799,120 Cost of investments sold 1,527,896 1,488,294 2,324,373 655,596 1,030,533 -------------- ------------- ------------- ---------- ------------- Realized gains (losses) on fund shares (306,695) (298,163) (1,035,530) (212,196) (231,413) Realized gain distributions -- 116,578 -- -- -- -------------- ------------- ------------- ---------- ------------- Net realized gains (losses) (306,695) (181,585) (1,035,530) (212,196) (231,413) Change in unrealized gains (losses) (241,604) (870,307) (989,777) 106,485 (702,023) -------------- ------------- ------------- ---------- ------------- Net realized and unrealized gains (losses) on investments (548,299) (1,051,892) (2,025,307) (105,711) (933,436) -------------- ------------- ------------- ---------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (575,116) $ (1,030,792) $ (2,083,995) $ 20,865 $ (933,134) ============== ============= ============= ========== =============
See notes to financial statements. 24 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund Fidelity Variable Insurance Products Fund Sub-Accounts (Service Class 2) Sub-Accounts ----------------- --------------------------------------------------------------- VIP Asset Manager VIP Contrafund VIP Equity- VIP Growth Growth (Service (Service Income (Service (Service VIP Overseas Class 2) Class 2) Class 2) Class 2) ----------------- --------------- -------------- --------------- ---------- NET INVESTMENT INCOME (LOSS) Dividends $ 5,513 $ 366 $ 3,236 $ 22,754 $ 558 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (8,296) (285) (10,263) (31,234) (8,459) Administrative expense (640) (21) (714) (2,154) (600) ----------------- --------------- -------------- --------------- ---------- Net investment income (loss) (3,423) 60 (7,741) (10,634) (8,501) ----------------- --------------- -------------- --------------- ---------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 173,476 16,875 91,776 559,554 211,896 Cost of investments sold 289,381 19,062 99,432 642,251 271,764 ----------------- --------------- -------------- --------------- ---------- Realized gains (losses) on fund shares (115,905) (2,187) (7,656) (82,697) (59,868) Realized gain distributions -- -- -- 32,792 -- ----------------- --------------- -------------- --------------- ---------- Net realized gains (losses) (115,905) (2,187) (7,656) (49,905) (59,868) Change in unrealized gains (losses) (36,852) (2,596) (79,457) (416,572) (168,897) ----------------- --------------- -------------- --------------- ---------- Net realized and unrealized gains (losses) on investments (152,757) (4,783) (87,113) (466,477) (228,765) ----------------- --------------- -------------- --------------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (156,180) $ (4,723) $ (94,854) $ (477,111) $ (237,266) ================= =============== ============== =============== ==========
See notes to financial statements. 25 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Fidelity Variable Insurance Products Variable Insurance Fund (Service Class 2) Sub-Accounts Products Trust Sub-Accounts --------------------------------------------- -------------------------------- VIP High VIP Index 500 VIP Overseas Franklin Global Income (Service (Service (Service Health Care Franklin Class 2) Class 2) Class 2) Securities (d) Small Cap (d) --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 21,080 $ 12,738 $ 318 $ -- $ 397 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (6,224) (21,712) (713) (91) (1,987) Administrative expense (418) (1,494) (51) (6) (145) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) 14,438 (10,468) (446) (97) (1,735) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 130,655 551,470 13,559 35,352 15,948 Cost of investments sold 145,157 631,688 16,480 36,937 20,408 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (14,502) (80,218) (2,921) (1,585) (4,460) Realized gain distributions -- -- -- -- -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (14,502) (80,218) (2,921) (1,585) (4,460) Change in unrealized gains (losses) 19,237 (335,036) (10,074) (252) (44,720) --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments 4,735 (415,254) (12,995) (1,837) (49,180) --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 19,173 $ (425,722) $ (13,441) $ (1,934) $ (50,915) =============== ============= ============= =============== ===============
(d) On April 30, 2002, Franklin Global Health Care Securities merged into Franklin Small Cap See notes to financial statements. 26 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Variable Insurance Products Trust Sub-Accounts ------------------------------------------------------------------------------- Templeton Franklin Developing Templeton Templeton Technology Mutual Shares Markets Foreign Global Income Securities Securities Securities Securities (e) Securities --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ -- $ 5,117 $ -- $ 1,535 $ 3,289 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (62) (7,496) (19) (1,326) (4,831) Administrative expense (4) (563) (1) (99) (348) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) (66) (2,942) (20) 110 (1,890) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 1,263 94,325 19 14,381 56,364 Cost of investments sold 1,418 104,968 18 18,619 51,254 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (155) (10,643) 1 (4,238) 5,110 Realized gain distributions -- 12,689 -- -- -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (155) 2,046 1 (4,238) 5,110 Change in unrealized gains (losses) (2,073) (79,789) 260 (18,841) 64,133 --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (2,228) (77,743) 261 (23,079) 69,243 --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (2,294) $ (80,685) $ 241 $ (22,969) $ 67,353 =============== ============= ============= =============== ===============
(e) Previously known as Templeton International Securities See notes to financial statements. 27 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 -------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Variable Insurance Products Trust Sub-Accounts Goldman Sachs Variable Insurance Trust Sub-Accounts ------------------ ---------------------------------------------------------- Templeton VIT CORE VIT CORE Growth VIT Capital Large Cap Small Cap VIT CORE Securities Growth Growth (f) Equity U.S. Equity ------------------ ------------- ------------- ------------- ------------- NET INVESTMENT INCOME (LOSS) Dividends $ 12,590 $ 137 $ -- $ 837 $ 1,354 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (7,729) (2,032) (2) (4,505) (3,501) Administrative expense (579) (149) -- (304) (233) ------------------ ------------- ------------- ------------- ------------- Net investment income (loss) 4,282 (2,044) (2) (3,972) (2,380) ------------------ ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 64,086 110,725 3,664 56,961 44,442 Cost of investments sold 77,369 160,172 6,575 55,118 60,581 ------------------ ------------- ------------- ------------- ------------- Realized gains (losses) on fund shares (13,283) (49,447) (2,911) 1,843 (16,139) Realized gain distributions 12,379 (1) -- -- -- ------------------ ------------- ------------- ------------- ------------- Net realized gains (losses) (904) (49,448) (2,911) 1,843 (16,139) Change in unrealized gains (losses) (130,760) (8,570) 2,906 (53,662) (45,079) ------------------ ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments (131,664) (58,018) (5) (51,819) (61,218) ------------------ ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (127,382) $ (60,062) $ (7) $ (55,791) $ (63,598) ================== ============= ============= ============= =============
(f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 See notes to financial statements. 28 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- LSA Variable Series Trust Goldman Sachs Variable Insurance Trust Sub-Accounts Sub-Accounts -------------------------------------------------------------- --------------- VIT VIT Global VIT Growth International VIT Mid Cap LSA Focused Income (f) and Income Equity Value Equity --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ -- $ 100 $ 202 $ 65 $ -- Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (66) (131) (261) (81) (309) Administrative expense (5) (9) (17) (7) (21) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) (71) (40) (76) (23) (330) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 156,765 4,736 280 91 4,833 Cost of investments sold 158,636 6,031 484 87 5,690 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (1,871) (1,295) (204) 4 (857) Realized gain distributions -- -- -- 19 -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (1,871) (1,295) (204) 23 (857) Change in unrealized gains (losses) 3,122 93 (3,686) (381) (6,180) --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments 1,251 (1,202) (3,890) (358) (7,037) --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 1,180 $ (1,242) $ (3,966) $ (381) $ (7,367) =============== ============= ============= =============== ===============
(f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 See notes to financial statements. 29 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- LSA Variable Series Trust Sub-Accounts MFS Variable Insurance Trust Sub-Accounts --------------- -------------------------------------------------------------- LSA Growth MFS Emerging MFS Investors MFS New Equity Growth Trust Discovery MFS Research --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 19 $ -- $ 4,649 $ -- $ 4,431 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (257) (35,166) (10,259) (3,950) (22,108) Administrative expense (16) (2,760) (825) (318) (1,633) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) (254) (37,926) (6,435) (4,268) (19,310) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 2,243 533,582 232,781 133,439 296,229 Cost of investments sold 2,128 1,102,310 296,207 180,703 464,394 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares 115 (568,728) (63,426) (47,264) (168,165) Realized gain distributions -- -- -- -- -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) 115 (568,728) (63,426) (47,264) (168,165) Change in unrealized gains (losses) (2,570) (636,966) (148,017) (79,718) (308,424) --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (2,455) (1,205,694) (211,443) (126,982) (476,589) --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (2,709) $ (1,243,620) $ (217,878) $ (131,250) $ (495,899) =============== ============= ============= =============== ===============
See notes to financial statements. 30 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- MFS Variable Insurance Trust Sub-Accounts MFS Variable Insurance Trust (Service Class) Sub-Accounts --------------- --------------------------------------------------------------- MFS MFS Emerging MFS Investors New Discovery MFS Research Growth (Service Trust (Service (Service (Service MFS Utilities Class) Class) Class) Class) --------------- --------------- -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 154 $ -- $ 2,455 $ -- $ 305 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (174) (7,780) (8,169) (6,618) (4,470) Administrative expense (13) (517) (565) (473) (314) --------------- --------------- -------------- -------------- -------------- Net investment income (loss) (33) (8,297) (6,279) (7,091) (4,479) --------------- --------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 465 156,160 169,246 123,289 66,340 Cost of investments sold 566 205,182 205,021 147,515 86,326 --------------- --------------- -------------- -------------- -------------- Realized gains (losses) on fund shares (101) (49,022) (35,775) (24,226) (19,986) Realized gain distributions -- -- -- -- -- --------------- --------------- -------------- -------------- -------------- Net realized gains (losses) (101) (49,022) (35,775) (24,226) (19,986) Change in unrealized gains (losses) (3,058) (171,459) (110,482) (147,261) (75,308) --------------- --------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments (3,159) (220,481) (146,257) (171,487) (95,294) --------------- --------------- -------------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (3,192) $ (228,778) $ (152,536) $ (178,578) $ (99,773) =============== =============== ============== ============== ==============
See notes to financial statements. 31 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- MFS Variable Oppenheimer Insurance Trust Variable (Service Class) Neuberger & Berman Advisers Account Funds Sub-Accounts Management Trust Sub-Accounts Sub-Accounts --------------- --------------------------------------------- --------------- MFS Utilities AMT Oppenheimer (Service AMT Mid-Cap AMT Aggressive Class) Guardian Growth Partners Growth --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 13,997 $ 83 $ -- $ 765 $ 12,567 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (7,365) (158) (414) (2,019) (27,267) Administrative expense (517) (11) (30) (136) (2,038) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) 6,115 (86) (444) (1,390) (16,738) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 214,421 5,821 10,540 29,769 459,657 Cost of investments sold 287,536 7,147 20,642 43,791 784,145 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (73,115) (1,326) (10,102) (14,022) (324,488) Realized gain distributions -- -- -- -- -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (73,115) (1,326) (10,102) (14,022) (324,488) Change in unrealized gains (losses) (92,559) (1,986) (1,507) (24,342) (368,454) --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (165,674) (3,312) (11,609) (38,364) (692,942) --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (159,559) $ (3,398) $ (12,053) $ (39,754) $ (709,680) =============== ============= ============= =============== ===============
See notes to financial statements. 32 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Variable Account Funds Sub-Accounts ------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Main Street Oppenheimer Oppenheimer Capital Global Growth & Multiple Strategic Appreciation Securities Income Strategies Bond --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 29,373 $ 15,375 $ 58,815 $ 128,089 $ 256,715 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (70,480) (35,983) (103,314) (53,464) (54,356) Administrative expense (5,308) (2,837) (7,917) (4,094) (4,032) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) (46,415) (23,445) (52,416) 70,531 198,327 --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 1,113,962 627,187 2,041,206 813,329 917,471 Cost of investments sold 1,491,196 822,048 2,530,243 919,486 941,626 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (377,234) (194,861) (489,037) (106,157) (24,155) Realized gain distributions -- -- -- 53,164 -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (377,234) (194,861) (489,037) (52,993) (24,155) Change in unrealized gains (losses) (1,375,580) (536,796) (1,282,675) (510,913) 81,305 --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (1,752,814) (731,657) (1,771,712) (563,906) 57,150 --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,799,229) $ (755,102) $ (1,824,128) $ (493,375) $ 255,477 =============== ============= ============= =============== ===============
See notes to financial statements. 33 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts -------------------------------------------------------------------------------- VT Diversified VT Growth VT Growth VT Health VT International Income and Income Opportunities Sciences Growth --------------- ------------- ------------- --------------- ---------------- NET INVESTMENT INCOME (LOSS) Dividends $ 49,878 $ 9,063 $ -- $ -- $ -- Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (11,018) (7,350) (1,445) (8,689) (38) Administrative expense (761) (535) (100) (605) (1) --------------- ------------- ------------- --------------- ---------------- Net investment income (loss) 38,099 1,178 (1,545) (9,294) (39) --------------- ------------- ------------- --------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 91,861 279,527 57,949 161,127 665 Cost of investments sold 94,287 327,591 77,225 196,351 672 --------------- ------------- ------------- --------------- ---------------- Realized gains (losses) on fund shares (2,426) (48,064) (19,276) (35,224) (7) Realized gain distributions -- 3,406 -- -- -- --------------- ------------- ------------- --------------- ---------------- Net realized gains (losses) (2,426) (44,658) (19,276) (35,224) (7) Change in unrealized gains (losses) 6,666 (88,314) (18,740) (113,653) (180) --------------- ------------- ------------- --------------- ---------------- Net realized and unrealized gains (losses) on investments 4,240 (132,972) (38,016) (148,877) (187) --------------- ------------- ------------- --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 42,339 $ (131,794) $ (39,561) $ (158,171) $ (226) =============== ============= ============= =============== ================
See notes to financial statements. 34 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------------------------------------------------------------------- STI Classic Variable Putnam Variable Trust Sub-Accounts Trust Sub-Accounts --------------------------------------------- -------------------------------- VT VT VT STI Capital STI Growth New Value Research Voyager II Appreciation & Income --------------- ------------- ------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 3,016 $ 56 $ -- $ -- $ 16,896 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (5,715) (400) (8,179) (34,607) (32,369) Administrative expense (404) (11) (573) (2,588) (2,462) --------------- ------------- ------------- --------------- --------------- Net investment income (loss) (3,103) (355) (8,752) (37,195) (17,935) --------------- ------------- ------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 177,535 10,254 96,114 532,231 390,700 Cost of investments sold 210,660 11,531 123,270 662,774 470,229 --------------- ------------- ------------- --------------- --------------- Realized gains (losses) on fund shares (33,125) (1,277) (27,156) (130,543) (79,529) Realized gain distributions 10,189 -- -- 100,855 -- --------------- ------------- ------------- --------------- --------------- Net realized gains (losses) (22,936) (1,277) (27,156) (29,688) (79,529) Change in unrealized gains (losses) (54,921) (4,063) (178,981) (565,954) (525,975) --------------- ------------- ------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (77,857) (5,340) (206,137) (595,642) (605,504) --------------- ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (80,960) $ (5,695) $ (214,889) $ (632,837) $ (623,439) =============== ============= ============= =============== ===============
See notes to financial statements. 35 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------------------------------------------- STI Classic Variable Trust Sub-Accounts -------------------------------------------------------------------------------- STI International STI Investment STI Mid-Cap STI Quality STI Small Equity Grade Bond Equity Growth Stock (g) Cap Equity ----------------- --------------- ----------- ----------------- ----------- NET INVESTMENT INCOME (LOSS) Dividends $ -- $ 182,725 $ -- $ -- $ 14,296 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (3,854) (54,401) (15,910) (13,810) (31,541) Administrative expense (292) (3,910) (1,158) (969) (2,391) ----------------- --------------- ----------- ----------------- ----------- Net investment income (loss) (4,146) 124,414 (17,068) (14,779) (19,636) ----------------- --------------- ----------- ----------------- ----------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 98,338 874,782 263,970 1,486,980 437,703 Cost of investments sold 118,167 872,389 342,069 2,099,351 425,037 ----------------- --------------- ----------- ----------------- ----------- Realized gains (losses) on fund shares (19,829) 2,393 (78,099) (612,371) 12,666 Realized gain distributions 1,804 -- 754 323 -- ----------------- --------------- ----------- ----------------- ----------- Net realized gains (losses) (18,025) 2,393 (77,345) (612,048) 12,666 Change in unrealized gains (losses) (45,135) 137,755 (302,571) 302,139 (132,640) ----------------- --------------- ----------- ----------------- ----------- Net realized and unrealized gains (losses) on investments (63,160) 140,148 (379,916) (309,909) (119,974) ----------------- --------------- ----------- ----------------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (67,306) $ 264,562 $ (396,984) $ (324,688) $ (139,610) ================= =============== =========== ================= ===========
(g) For the Period Beginning January 1, 2002 and Ended September 6, 2002 See notes to financial statements. 36 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------------------------------- STI Classic Variable Trust Sub-Accounts The Universal Institutional Funds, Inc. Sub-Accounts --------------- ------------------------------------------------------------ STI Value Van Kampen Van Kampen Van Kampen Van Kampen Income UIF Equity UIF Fixed UIF Global Value UIF International Stock Growth (h) Income (i) Equity (j) Magnum (k) --------------- ---------- ---------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS) Dividends $ 24,118 $ 278 $ 48,929 $ 517 $ -- Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (21,045) (2,270) (12,459) (454) (18) Administrative expense (1,594) (159) (889) (37) (1) --------------- ---------- ---------- ----------------- ----------------- Net investment income (loss) 1,479 (2,151) 35,581 26 (19) --------------- ---------- ---------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 283,119 16,008 244,816 1,022 5,442 Cost of investments sold 331,233 22,927 244,219 1,165 7,633 --------------- ---------- ---------- ----------------- ----------------- Realized gains (losses) on fund shares (48,114) (6,919) 597 (143) (2,191) Realized gain distributions -- -- 11,220 460 -- --------------- ---------- ---------- ----------------- ----------------- Net realized gains (losses) (48,114) (6,919) 11,817 317 (2,191) Change in unrealized gains (losses) (287,281) (47,596) 4,459 (8,548) 2,132 --------------- ---------- ---------- ----------------- ----------------- Net realized and unrealized gains (losses) on investments (335,395) (54,515) 16,276 (8,231) (59) --------------- ---------- ---------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (333,916) $ (56,666) $ 51,857 $ (8,205) $ (78) =============== ========== ========== ================= =================
(h) Previously known as UIF Equity Growth (i) Previously known as UIF Fixed Income (j) Previously known as UIF Global Value Equity (k) Previously known as UIF International Magnum See notes to financial statements. 37 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 ------------------------------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts ---------------------------------------------------- Van Kampen Van Kampen UIF Mid Cap UIF U.S. Van Kampen Value (l) Real Estate (m) UIF Value (n) --------------- --------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ -- $ 129 $ 2,138 Charges from Glenbrook Life and Annuity Company: Mortality and expense risk (5,569) (5) (3,192) Administrative expense (418) -- (218) --------------- --------------- --------------- Net investment income (loss) (5,987) 124 (1,272) --------------- --------------- --------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) on fund shares: Proceeds from sales 64,491 4,980 61,322 Cost of investments sold 76,449 4,999 65,511 --------------- --------------- --------------- Realized gains (losses) on fund shares (11,958) (19) (4,189) Realized gain distributions -- 88 -- --------------- --------------- --------------- Net realized gains (losses) (11,958) 69 (4,189) Change in unrealized gains (losses) (127,663) (168) (50,854) --------------- --------------- --------------- Net realized and unrealized gains (losses) on investments (139,621) (99) (55,043) --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (145,608) $ 25 $ (56,315) =============== =============== ===============
(l) Previously known as UIF Mid Cap Value (m) Previously known as UIF U.S. Real Estate (n) Previously known as UIF Value See notes to financial statements. 38 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts --------------------------------------------------------------------------------------- AIM V. I. Aggressive Growth AIM V. I. Balanced AIM V. I. Capital Appreciation ------------------------ --------------------------- ------------------------------ 2002 2001 (o) 2002 2001 2002 2001 ----------- ---------- ------------ ------------ -------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (1,093) $ (110) $ 43,864 $ 21,609 $ (61,684) $ (71,898) Net realized gains (losses) (3,411) 4 (268,000) (75,780) (692,067) 105,009 Change in unrealized gains (losses) (18,724) 2,386 (628,541) (418,926) (541,646) (1,454,912) ----------- ---------- ------------ ------------ -------------- ------------- Increase (decrease) in net assets from operations (23,228) 2,280 (852,677) (473,097) (1,295,397) (1,421,801) ----------- ---------- ------------ ------------ -------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 91,264 25,648 312,761 642,297 139,207 938,674 Benefit payments -- -- (78,455) (38,786) (16,753) (34,209) Payments on termination (32,972) -- (393,950) (319,495) (345,275) (299,786) Contract maintenance charge (13) -- (2,178) (572) (3,428) (1,672) Transfers among the sub-accounts and with the Fixed Account - net 8,961 1,483 435,105 1,491,615 (278,043) 631,882 ----------- ---------- ------------ ------------ -------------- ------------- Increase (decrease) in net assets from capital transactions 67,240 27,131 273,283 1,775,059 (504,292) 1,234,889 ----------- ---------- ------------ ------------ -------------- ------------- INCREASE (DECREASE) IN NET ASSETS 44,012 29,411 (579,394) 1,301,962 (1,799,689) (186,912) NET ASSETS AT BEGINNING OF PERIOD 29,411 -- 4,355,810 3,053,848 5,112,390 5,299,302 ----------- ---------- ------------ ------------ -------------- ------------- NET ASSETS AT END OF PERIOD $ 73,423 $ 29,411 $ 3,776,416 $ 4,355,810 $ 3,312,701 $ 5,112,390 =========== ========== ============ ============ ============== ============= UNITS OUTSTANDING Units outstanding at beginning of period 3,419 -- 440,039 257,109 529,933 385,019 Units issued 11,863 3,419 200,177 274,652 64,778 243,270 Units redeemed (4,274) -- (165,054) (91,722) (129,307) (98,356) ----------- ---------- ------------ ------------ -------------- ------------- Units outstanding at end of period 11,008 3,419 475,162 440,039 465,404 529,933 =========== ========== ============ ============ ============== =============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 39 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts -------------------------------------------------------------------------------------- AIM V. I. Dent AIM V. I. Core Equity (a) Demographics AIM V. I. Diversified Income -------------------------- ----------------------- ------------------------------- 2002 2001 2002 2001 (o) 2002 2001 ----------- ------------ ---------- ---------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (37,674) $ (52,773) $ (127) $ (51) $ 80,376 $ 9,036 Net realized gains (losses) (371,135) (222,787) (467) (54) (7,426) (9,007) Change in unrealized gains (losses) (213,825) (766,520) (2,350) (62) (38,755) 4,339 ----------- ------------ ---------- ---------- -------------- -------------- Increase (decrease) in net assets from operations (622,634) (1,042,080) (2,944) (167) 34,195 4,368 ----------- ------------ ---------- ---------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 80,426 729,977 -- 4,305 839,850 43,398 Benefit payments (71,171) (70,811) -- -- (5,988) -- Payments on termination (323,811) (464,257) (2,011) (421) (8,770) (66,415) Contract maintenance charge (2,247) (665) (4) -- (104) (15) Transfers among the sub-accounts and with the Fixed Account - net (243,686) 818,935 1,843 5,105 121,899 1,013 ----------- ------------ ---------- ---------- -------------- -------------- Increase (decrease) in net assets from capital transactions (560,489) 1,013,179 (172) 8,989 946,887 (22,019) ----------- ------------ ---------- ---------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS (1,183,123) (28,901) (3,116) 8,822 981,082 (17,651) NET ASSETS AT BEGINNING OF PERIOD 3,890,737 3,919,638 8,822 -- 175,313 192,964 ----------- ------------ ---------- ---------- -------------- -------------- NET ASSETS AT END OF PERIOD $ 2,707,614 $ 3,890,737 $ 5,706 $ 8,822 $ 1,156,395 $ 175,313 =========== ============ ========== ========== ============== ============== UNITS OUTSTANDING Units outstanding at beginning of period 439,775 306,577 1,044 -- 17,546 19,823 Units issued 47,661 215,105 389 1,099 104,441 5,323 Units redeemed (117,421) (81,907) (419) (55) (8,576) (7,600) ----------- ------------ ---------- ---------- -------------- -------------- Units outstanding at end of period 370,015 439,775 1,014 1,044 113,411 17,546 =========== ============ ========== ========== ============== ==============
(a) Previously known as AIM V.I. Growth and Income (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 40 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts --------------------------------------------------------------------------------------- AIM V. I. AIM V. I. Global Utilities Government Securities AIM V. I. Growth --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 293 $ (40) $ 6,466 $ 4,958 $ (37,925) $ (41,873) Net realized gains (losses) (223) 1,811 19,019 26,469 (534,349) (553,672) Change in unrealized gains (losses) (5,453) (10,014) 13,712 (5,793) (465,035) (962,171) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (5,383) (8,243) 39,197 25,634 (1,037,309) (1,557,716) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- 25,000 7,069 6,570 44,242 634,235 Benefit payments -- -- (10,855) -- (42,729) (53,067) Payments on termination -- -- (74,454) (462,745) (226,163) (303,307) Contract maintenance charge (11) (4) (175) 147 (2,411) (919) Transfers among the sub-accounts and with the Fixed Account - net -- (25,005) 379,602 118,240 (61,538) 435,204 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (11) (9) 301,187 (337,788) (288,599) 712,146 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (5,394) (8,252) 340,384 (312,154) (1,325,908) (845,570) NET ASSETS AT BEGINNING OF PERIOD 20,284 28,536 415,310 727,464 3,306,971 4,152,541 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 14,890 $ 20,284 $ 755,694 $ 415,310 $ 1,981,063 $ 3,306,971 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 1,983 1,983 36,218 65,317 457,834 344,226 Units issued -- -- 79,640 24,099 213,937 236,748 Units redeemed (2) -- (53,843) (53,198) (268,914) (123,140) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 1,981 1,983 62,015 36,218 402,857 457,834 ============ ============ ============ ============ ============ ============
See notes to financial statements. 41 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts --------------------------------------------------------------------------------------- AIM V. I. AIM V. I. AIM V. I. High Yield International Growth (b) Premier Equity (c) --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (8,091) $ 61,520 $ (1,122) $ (1,822) $ (68,850) $ (96,143) Net realized gains (losses) (67,593) (32,929) (9,776) (7,288) (983,907) (199,791) Change in unrealized gains (losses) 27,100 (61,435) (13,701) (39,409) (1,372,229) (838,201) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (48,584) (32,844) (24,599) (48,519) (2,424,986) (1,134,135) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 28,975 142,139 -- 26,823 246,702 1,098,895 Benefit payments (10,767) -- -- (2,925) (142,962) (45,729) Payments on termination (65,665) (53,716) (6,420) (7,864) (472,515) (642,624) Contract maintenance charge (247) (68) (168) (88) (3,910) (1,348) Transfers among the sub-accounts and with the Fixed Account - net 35,214 200,293 (8,702) 3,631 (368,038) 831,848 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (12,490) 288,648 (15,290) 19,577 (740,723) 1,241,042 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (61,074) 255,804 (39,889) (28,942) (3,165,709) 106,907 NET ASSETS AT BEGINNING OF PERIOD 570,896 315,092 148,749 177,691 7,771,657 7,664,750 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 509,822 $ 570,896 $ 108,860 $ 148,749 $ 4,605,948 $ 7,771,657 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 67,184 35,082 16,893 14,822 757,407 608,937 Units issued 27,337 50,097 944 4,847 142,446 336,307 Units redeemed (30,993) (17,995) (3,374) (2,776) (232,019) (187,837) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 63,528 67,184 14,463 16,893 667,834 757,407 ============ ============ ============ ============ ============ ============
(b) Previously known as AIM V.I. International Equity (c) Previously known as AIM V.I. Value See notes to financial statements. 42 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Dreyfus Socially Responsible American Century Variable Portfolios, Inc. Sub-Accounts Growth Fund, Inc. Sub-Account ------------------------------------------------------- ----------------------------- American Century American Century Dreyfus Socially VP Balanced VP International Responsible Growth Fund ------------------------- --------------------------- ----------------------------- 2002 2001 2002 2001 2002 2001 ----------- ----------- ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 1,657 $ 5,211 $ (589) $ (1,980) $ (3,591) $ (4,095) Net realized gains (losses) (13,341) (11,129) (30,146) 13,254 (21,404) (16,799) Change in unrealized gains (losses) (6,718) (679) 5,906 (66,469) (83,671) (65,640) ----------- ----------- ------------ ------------ ------------- ------------- Increase (decrease) in net assets from operations (18,402) (6,597) (24,829) (55,195) (108,666) (86,534) ----------- ----------- ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- -- 80 112 117,534 34,697 Benefit payments -- (5,256) -- -- (4,709) -- Payments on termination (6,378) (149,593) (9,095) (2,824) (21,589) (42,579) Contract maintenance charge (73) (8) (12) 34 (108) (75) Transfers among the sub-accounts and with the Fixed Account - net (3,573) 300 (20,206) (3) 13,308 17,694 ----------- ----------- ------------ ------------ ------------- ------------- Increase (decrease) in net assets from capital transactions (10,024) (154,557) (29,233) (2,681) 104,436 9,737 ----------- ----------- ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (28,426) (161,154) (54,062) (57,876) (4,230) (76,797) NET ASSETS AT BEGINNING OF PERIOD 142,061 303,215 127,514 185,390 263,644 340,441 ----------- ----------- ------------ ------------ ------------- ------------- NET ASSETS AT END OF PERIOD $ 113,635 $ 142,061 $ 73,452 $ 127,514 $ 259,414 $ 263,644 =========== =========== ============ ============ ============= ============= UNITS OUTSTANDING Units outstanding at beginning of period 11,837 23,997 11,744 11,918 25,858 24,539 Units issued 3,418 25 8 9 18,101 7,011 Units redeemed (4,633) (12,185) (3,133) (183) (4,498) (5,692) ----------- ----------- ------------ ------------ ------------- ------------- Units outstanding at end of period 10,622 11,837 8,619 11,744 39,461 25,858 =========== =========== ============ ============ ============= =============
See notes to financial statements. 43 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Dreyfus Stock Index Fund Sub-Account Dreyfus Variable Investment Fund Sub-Accounts --------------------------- --------------------------------------------------------- Dreyfus Stock Index Fund VIF Growth and Income VIF Money Market --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (561) $ 4,164 $ (3,168) $ (3,807) $ (3,834) $ 15,626 Net realized gains (losses) (151,502) (31,312) (28,299) (1,404) -- -- Change in unrealized gains (losses) (427,992) (274,851) (102,279) (31,181) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (580,055) (301,999) (133,746) (36,392) (3,834) 15,626 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 549,863 363,468 32,285 171,762 384,209 312,303 Benefit payments (35,468) (6,112) -- -- -- -- Payments on termination (163,477) (237,560) (55,228) (82,535) (715,901) (361,758) Contract maintenance charge (1,303) (593) (276) (107) (620) (54) Transfers among the sub-accounts and with the Fixed Account - net 140,640 (27,088) (887) 59,251 1,376,010 1,467,386 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 490,255 92,115 (24,106) 148,371 1,043,698 1,417,877 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (89,800) (209,884) (157,852) 111,979 1,039,864 1,433,503 NET ASSETS AT BEGINNING OF PERIOD 1,997,069 2,206,953 498,211 386,232 1,611,911 178,408 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 1,907,269 $ 1,997,069 $ 340,359 $ 498,211 $ 2,651,775 $ 1,611,911 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 185,002 171,195 45,351 30,513 146,458 16,839 Units issued 130,448 48,419 9,200 23,066 402,706 242,765 Units redeemed (66,673) (34,612) (12,075) (8,228) (307,313) (113,146) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 248,777 185,002 42,476 45,351 241,851 146,458 ============ ============ ============ ============ ============ ============
See notes to financial statements. 44 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Dreyfus Variable Investment Federated Insurance Series Fidelity Variable Insurance Fund Sub-Accounts Sub-Account Products Sub-Accounts --------------------------------------------------------- --------------------------- Federated VIF Small Company Stock Prime Money Fund II VIP Contrafund --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (705) $ (939) $ (6,326) $ 53,592 $ (26,817) $ (37,337) Net realized gains (losses) 204 1,450 -- -- (306,695) (106,821) Change in unrealized gains (losses) (12,677) (3,166) -- -- (241,604) (708,982) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (13,178) (2,655) (6,326) 53,592 (575,116) (853,140) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- -- 384,654 2,053,283 30,959 681,737 Benefit payments -- -- (112,487) (37,615) (58,109) (54,808) Payments on termination (5,393) (13,315) (1,579,817) (883,799) (397,857) (438,362) Contract maintenance charge (61) (42) (1,936) (511) (3,506) (1,589) Transfers among the sub-accounts and with the Fixed Account - net (1) 21 4,632,706 3,108,600 (275,848) 653,470 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (5,455) (13,336) 3,323,120 4,239,958 (704,361) 840,448 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (18,633) (15,991) 3,316,794 4,293,550 (1,279,477) (12,692) NET ASSETS AT BEGINNING OF PERIOD 65,102 81,093 5,207,491 913,941 5,700,127 5,712,819 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 46,469 $ 65,102 $ 8,524,285 $ 5,207,491 $ 4,420,650 $ 5,700,127 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 5,483 6,620 493,659 87,136 519,828 432,933 Units issued -- -- 1,281,184 871,559 51,754 222,746 Units redeemed (530) (1,137) (961,334) (465,036) (120,279) (135,851) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 4,953 5,483 813,509 493,659 451,303 519,828 ============ ============ ============ ============ ============ ============
See notes to financial statements. 45 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund Sub-Accounts --------------------------------------------------------------------------------------- VIP Equity-Income VIP Growth VIP High Income --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 21,100 $ 4,804 $ (58,688) $ (95,221) $ 126,576 $ 145,115 Net realized gains (losses) (181,585) 138,887 (1,035,530) (7,781) (212,196) (155,744) Change in unrealized gains (losses) (870,307) (448,316) (989,777) (1,507,574) 106,485 (207,945) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (1,030,792) (304,625) (2,083,995) (1,610,576) 20,865 (218,574) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 241,258 806,296 72,162 654,121 68,012 472,412 Benefit payments (45,350) (56,282) (24,449) (113,190) (3,969) (15,525) Payments on termination (321,319) (445,137) (405,947) (473,587) (145,618) (163,009) Contract maintenance charge (2,423) (608) (3,799) (1,659) (530) (118) Transfers among the sub-accounts and with the Fixed Account - net (210,502) 1,298,499 (591,016) 818,080 (61,639) 26,916 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (338,336) 1,602,768 (953,049) 883,765 (143,744) 320,676 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (1,369,128) 1,298,143 (3,037,044) (726,811) (122,879) 102,102 NET ASSETS AT BEGINNING OF PERIOD 5,326,118 4,027,975 6,919,904 7,646,715 1,407,173 1,305,071 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 3,956,990 $ 5,326,118 $ 3,882,860 $ 6,919,904 $ 1,284,294 $ 1,407,173 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 482,054 337,409 661,859 574,289 190,110 153,849 Units issued 92,022 244,905 56,673 277,518 44,484 98,415 Units redeemed (135,188) (100,260) (175,121) (189,948) (64,805) (62,154) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 438,888 482,054 543,411 661,859 169,789 190,110 ============ ============ ============ ============ ============ ============
See notes to financial statements. 46 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products (Service Fidelity Variable Insurance Products Fund Sub-Accounts Class 2) Sub-Accounts --------------------------------------------------------- --------------------------- VIP Asset Manager Growth VIP Index 500 VIP Overseas (Service Class 2) --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 302 $ (18,248) $ (3,423) $ 28,447 $ 60 $ (55) Net realized gains (losses) (231,413) (72,731) (115,905) 20,047 (2,187) (568) Change in unrealized gains (losses) (702,023) (396,350) (36,852) (254,067) (2,596) 466 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (933,134) (487,329) (156,180) (205,573) (4,723) (157) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 131,764 500,527 47,777 58,152 22,567 19,572 Benefit payments (249,272) (88,192) -- -- -- -- Payments on termination (200,181) (139,021) (31,450) (32,261) (8,071) -- Contract maintenance charge (1,789) (596) (440) (266) (8) -- Transfers among the sub-accounts and with the Fixed Account - net (37,257) 1,562,801 (120,684) 143,936 (4,372) (3,691) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (356,735) 1,835,519 (104,797) 169,561 10,116 15,881 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (1,289,869) 1,348,190 (260,977) (36,012) 5,393 15,724 NET ASSETS AT BEGINNING OF PERIOD 4,201,956 2,853,766 748,561 784,573 15,724 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 2,912,087 $ 4,201,956 $ 487,584 $ 748,561 $ 21,117 $ 15,724 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 532,748 313,030 114,724 93,653 1,656 -- Units issued 70,629 294,832 14,328 44,157 3,096 2,139 Units redeemed (121,191) (75,114) (34,190) (23,086) (2,070) (483) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 482,186 532,748 94,862 114,724 2,682 1,656 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 47 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund (Service Class 2) Sub-Accounts --------------------------------------------------------------------------------------- VIP Contrafund VIP Equity- Income VIP Growth (Service Class 2) (Service Class 2) (Service Class 2) --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001(o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (7,741) $ (1,683) $ (10,634) $ (5,307) $ (8,501) $ (1,794) Net realized gains (losses) (7,656) (1,383) (49,905) (6,922) (59,868) (1,206) Change in unrealized gains (losses) (79,457) 5,085 (416,572) 11,348 (168,897) (5,026) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (94,854) 2,019 (477,111) (881) (237,266) (8,026) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 157,392 228,791 755,392 837,230 179,969 259,180 Benefit payments (3,405) -- (78,480) -- (47,444) -- Payments on termination (25,893) (252) (204,893) (931) (48,173) (3,858) Contract maintenance charge (235) -- (533) -- (226) -- Transfers among the sub-accounts and with the Fixed Account - net 421,726 181,810 1,314,764 298,878 418,290 125,886 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 549,585 410,349 1,786,250 1,135,177 502,416 381,208 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 454,731 412,368 1,309,139 1,134,296 265,150 373,182 NET ASSETS AT BEGINNING OF PERIOD 412,368 -- 1,134,296 -- 373,182 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 867,099 $ 412,368 $ 2,443,435 $ 1,134,296 $ 638,332 $ 373,182 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 43,504 -- 121,181 -- 42,475 -- Units issued 73,698 44,810 284,033 145,949 106,083 43,232 Units redeemed (14,489) (1,306) (87,195) (24,768) (42,962) (757) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 102,713 43,504 318,019 121,181 105,596 42,475 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 48 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Fidelity Variable Insurance Products Fund (Service Class 2) Sub-Accounts --------------------------------------------------------------------------------------- VIP High Income VIP Index 500 VIP Overseas (Service Class 2) (Service Class 2) (Service Class 2) --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001 (o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 14,438 $ (769) $ (10,468) $ (5,705) $ (446) $ (195) Net realized gains (losses) (14,502) (39) (80,218) (511) (2,921) (16) Change in unrealized gains (losses) 19,237 (4,798) (335,036) (23,417) (10,074) (1,610) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations 19,173 (5,606) (425,722) (29,633) (13,441) (1,821) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 165,090 59,714 279,278 610,905 10,614 22,390 Benefit payments -- -- (14,158) -- -- -- Payments on termination (27,476) (1,200) (191,993) (4,559) (2,938) -- Contract maintenance charge (58) -- (378) -- (14) -- Transfers among the sub-accounts and with the Fixed Account - net 316,177 108,397 862,404 429,606 11,250 18,439 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 453,733 166,911 935,153 1,035,952 18,912 40,829 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 472,906 161,305 509,431 1,006,319 5,471 39,008 NET ASSETS AT BEGINNING OF PERIOD 161,305 -- 1,006,319 -- 39,008 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 634,211 $ 161,305 $ 1,515,750 $ 1,006,319 $ 44,479 $ 39,008 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 17,924 -- 111,014 -- 4,549 -- Units issued 66,209 18,059 215,931 112,385 8,477 4,549 Units redeemed (14,864) (135) (108,383) (1,371) (6,610) -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 69,269 17,924 218,562 111,014 6,416 4,549 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 49 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Variable Insurance Products Trust Sub-Accounts --------------------------------------------------------------------------------------- Franklin Global Franklin Health Care Securities Franklin Small Cap Technology Securities --------------------------- --------------------------- --------------------------- 2002 (d) 2001 (o) 2002 (d) 2001 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (97) $ (15) $ (1,735) $ (416) $ (66) $ (14) Net realized gains (losses) (1,585) (17) (4,460) (3,169) (155) 27 Change in unrealized gains (losses) (252) 252 (44,720) 4,965 (2,073) 835 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (1,934) 220 (50,915) 1,380 (2,294) 848 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 19,669 5,824 31,655 39,173 757 4,244 Benefit payments -- -- (540) (2,819) -- -- Payments on termination -- (223) (7,691) (4,514) (1,022) (262) Contract maintenance charge -- -- (84) -- (5) -- Transfers among the sub-accounts and with the Fixed Account - net (25,338) 1,782 107,315 54,061 2,788 -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (5,669) 7,383 130,655 85,901 2,518 3,982 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (7,603) 7,603 79,740 87,281 224 4,830 NET ASSETS AT BEGINNING OF PERIOD 7,603 -- 102,734 15,453 4,830 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ -- $ 7,603 $ 182,474 $ 102,734 $ 5,054 $ 4,830 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 775 -- 8,528 737 609 -- Units issued 3,289 800 20,481 9,418 728 645 Units redeemed (4,064) (25) (3,512) (1,627) (353) (36) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period -- 775 25,497 8,528 984 609 ============ ============ ============ ============ ============ ============
(d) On April 30, 2002, Franklin Global Health Care Securities merged into Franklin Small Cap (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 50 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Variable Insurance Products Trust Sub-Accounts --------------------------------------------------------------------------------------- Templeton Developing Templeton Mutual Shares Securities Markets Securities Foreign Securities (e) --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 (o) 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (2,942) $ 603 $ (20) $ -- $ 110 $ 598 Net realized gains (losses) 2,046 6,571 1 -- (4,238) 8,917 Change in unrealized gains (losses) (79,789) (8,630) 260 -- (18,841) (16,987) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (80,685) (1,456) 241 -- (22,969) (7,472) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 110,636 180,502 -- -- 33,379 35,294 Benefit payments (5,090) -- -- -- -- -- Payments on termination (30,518) (3,389) -- -- (922) (1,440) Contract maintenance charge (122) (9) -- -- (64) 6 Transfers among the sub-accounts and with the Fixed Account - net 359,449 185,149 6,853 -- 51,035 7,199 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 434,355 362,253 6,853 -- 83,428 41,059 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 353,670 360,797 7,094 -- 60,459 33,587 NET ASSETS AT BEGINNING OF PERIOD 360,797 -- -- -- 71,733 38,146 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 714,467 $ 360,797 $ 7,094 $ -- $ 132,192 $ 71,733 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 31,851 -- -- -- 8,050 3,513 Units issued 56,273 32,914 767 -- 12,146 4,685 Units redeemed (11,286) (1,063) -- -- (1,424) (148) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 76,838 31,851 767 -- 18,772 8,050 ============ ============ ============ ============ ============ ============
(e) Previously known as Templeton International Securities (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 51 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton Goldman Sachs Variable Variable Insurance Products Trust Sub-Accounts Insurance Trust Sub-Accounts --------------------------------------------------------- ---------------------------- Templeton Global Income Securities Templeton Growth Securities VIT Capital Growth --------------------------- --------------------------- ---------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (1,890) $ 3,510 $ 4,282 $ 3,010 $ (2,044) $ (1,234) Net realized gains (losses) 5,110 1,022 (904) 67,273 (49,448) (5,353) Change in unrealized gains (losses) 64,133 171 (130,760) (86,546) (8,570) (18,212) ------------ ------------ ------------ ------------ ------------ ------------- Increase (decrease) in net assets from operations 67,353 4,703 (127,382) (16,263) (60,062) (24,799) ------------ ------------ ------------ ------------ ------------ ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 4,442 37,135 75,500 55,053 13,517 124,226 Benefit payments -- -- -- (25,904) -- -- Payments on termination (12,571) (15,200) (18,172) (16,519) (5,121) (40) Contract maintenance charge (228) (71) (324) (139) (84) (22) Transfers among the sub-accounts and with the Fixed Account - net 147,670 78,709 251,248 108,156 (90,382) 33,087 ------------ ------------ ------------ ------------ ------------ ------------- Increase (decrease) in net assets from capital transactions 139,313 100,573 308,252 120,647 (82,070) 157,251 ------------ ------------ ------------ ------------ ------------ ------------- INCREASE (DECREASE) IN NET ASSETS 206,666 105,276 180,870 104,384 (142,132) 132,452 NET ASSETS AT BEGINNING OF PERIOD 253,834 148,558 497,795 393,411 206,316 73,864 ------------ ------------ ------------ ------------ ------------ ------------- NET ASSETS AT END OF PERIOD $ 460,500 $ 253,834 $ 678,665 $ 497,795 $ 64,184 $ 206,316 ============ ============ ============ ============ ============ ============= UNITS OUTSTANDING Units outstanding at beginning of period 22,479 13,077 40,019 29,582 20,601 6,339 Units issued 17,551 13,610 46,097 26,606 11,941 16,817 Units redeemed (5,520) (4,208) (11,947) (16,169) (22,646) (2,555) ------------ ------------ ------------ ------------ ------------ ------------- Units outstanding at end of period 34,510 22,479 74,169 40,019 9,896 20,601 ============ ============ ============ ============ ============ =============
See notes to financial statements. 52 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Variable Insurance Trust Sub-Accounts --------------------------------------------------------------------------------------- VIT CORE Large Cap Growth VIT CORE Small Cap Equity VIT CORE U.S. Equity --------------------------- --------------------------- --------------------------- 2002 (f) 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (2) $ (143) $ (3,972) $ (3,127) $ (2,380) $ (3,217) Net realized gains (losses) (2,911) (5,145) 1,843 1,377 (16,139) (7,747) Change in unrealized gains (losses) 2,906 2,262 (53,662) 9,430 (45,079) (31,340) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (7) (3,026) (55,791) 7,680 (63,598) (42,304) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- -- 47,576 69,537 33,416 35,269 Benefit payments -- -- (21,845) -- (13,162) -- Payments on termination -- -- (19,356) (17,435) (20,493) (9,680) Contract maintenance charge -- (6) (152) (38) (185) (87) Transfers among the sub-accounts and with the Fixed Account - net (3,662) (5,620) 26,692 10,179 14,325 (19,330) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (3,662) (5,626) 32,915 62,243 13,901 6,172 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (3,669) (8,652) (22,876) 69,923 (49,697) (36,132) NET ASSETS AT BEGINNING OF PERIOD 3,669 12,321 301,461 231,538 257,683 293,815 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ -- $ 3,669 $ 278,585 $ 301,461 $ 207,986 $ 257,683 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 409 1,071 25,383 18,786 26,240 25,166 Units issued -- -- 8,832 8,184 7,292 4,223 Units redeemed (409) (662) (5,216) (1,587) (4,787) (3,149) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period -- 409 28,999 25,383 28,745 26,240 ============ ============ ============ ============ ============ ============
(f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 See notes to financial statements. 53 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Variable Insurance Trust Sub-Accounts --------------------------------------------------------------------------------------- VIT Global Income VIT Growth and Income VIT International Equity --------------------------- --------------------------- --------------------------- 2002 (f) 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (71) $ 4,493 $ (40) $ (278) $ (76) $ -- Net realized gains (losses) (1,871) 13 (1,295) (2,594) (204) (312) Change in unrealized gains (losses) 3,122 (2,678) 93 (215) (3,686) (6,016) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations 1,180 1,828 (1,242) (3,087) (3,966) (6,328) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 661 168,071 -- -- -- -- Benefit payments -- -- -- -- -- -- Payments on termination -- (1,085) (4,585) (5,398) -- (711) Contract maintenance charge -- (8) (14) (16) (8) (2) Transfers among the sub-accounts and with the Fixed Account - net (154,598) (23,797) -- (5,684) (5) -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (153,937) 143,181 (4,599) (11,098) (13) (713) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (152,757) 145,009 (5,841) (14,185) (3,979) (7,041) NET ASSETS AT BEGINNING OF PERIOD 152,757 7,748 12,076 26,261 20,286 27,327 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ -- $ 152,757 $ 6,235 $ 12,076 $ 16,307 $ 20,286 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 14,148 724 1,386 2,683 2,184 2,252 Units issued 3,542 13,532 -- -- -- -- Units redeemed (17,690) (108) (566) (1,297) (1) (68) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period -- 14,148 820 1,386 2,183 2,184 ============ ============ ============ ============ ============ ============
(f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 See notes to financial statements. 54 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Variable Insurance Trust Sub-Accounts LSA Variable Series Trust Sub-Accounts --------------------------- --------------------------------------------------------- VIT Mid Cap Value LSA Focused Equity LSA Growth Equity --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 (o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (23) $ 16 $ (330) $ (16) $ (254) $ (23) Net realized gains (losses) 23 (580) (857) -- 115 -- Change in unrealized gains (losses) (381) 1,132 (6,180) 275 (2,570) 240 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (381) 568 (7,367) 259 (2,709) 217 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- 4,200 8,973 4,094 31,619 3,759 Benefit payments -- -- -- -- -- -- Payments on termination -- -- (4,329) -- -- -- Contract maintenance charge (6) (5) (14) -- -- -- Transfers among the sub-accounts and with the Fixed Account - net -- 24 20,969 4,807 5,670 492 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (6) 4,219 25,599 8,901 37,289 4,251 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (387) 4,787 18,232 9,160 34,580 4,468 NET ASSETS AT BEGINNING OF PERIOD 6,359 1,572 9,160 -- 4,468 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 5,972 $ 6,359 $ 27,392 $ 9,160 $ 39,048 $ 4,468 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 452 124 1,008 -- 507 -- Units issued -- 329 4,032 1,009 5,357 507 Units redeemed -- (1) (798) (1) (2) -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 452 452 4,242 1,008 5,862 507 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 55 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ------------------------------------------------------------------------------------------------------------------------- MFS Variable Insurance Trust Sub-Accounts ----------------------------------------------------------------------------- MFS MFS Emerging Growth MFS Investors Trust Limited Maturity --------------------------- --------------------------- ----------------- 2002 2001 2002 2001 2001 (p) ------------ ------------ ------------ ------------ ----------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) Net realized gains (losses) $ (37,926) $ (49,436) $ (6,435) $ (8,660) $ (294) Change in unrealized gains (losses) (568,728) (62,634) (63,426) 2,095 1,576 (636,966) (1,437,517) (148,017) (106,272) (1,054) ------------ ------------ ------------ ------------ ----------------- Increase (decrease) in net assets from operations (1,243,620) (1,549,587) (217,878) (112,837) 228 ------------ ------------ ------------ ------------ ----------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits Benefit payments 105,358 690,576 66,127 292,620 -- Payments on termination (46,398) (44,013) (14,284) (5,983) -- Contract maintenance charge (205,951) (247,893) (42,626) (53,509) (1,958) Transfers among the sub-accounts (2,124) (982) (462) (115) (16) and with the Fixed Account - net (125,444) 939,393 (81,470) 275,756 (64,959) ------------ ------------ ------------ ------------ ----------------- Increase (decrease) in net assets from capital transactions (274,559) 1,337,081 (72,715) 508,769 (66,933) ------------ ------------ ------------ ------------ ----------------- INCREASE (DECREASE) IN NET ASSETS (1,518,179) (212,506) (290,593) 395,932 (66,705) NET ASSETS AT BEGINNING OF PERIOD 3,613,630 3,826,136 965,940 570,008 66,705 ------------ ------------ ------------ ------------ ----------------- NET ASSETS AT END OF PERIOD $ 2,095,451 $ 3,613,630 $ 675,347 $ 965,940 $ -- ============ ============ ============ ============ ================= UNITS OUTSTANDING Units outstanding at beginning of period Units issued 361,187 233,107 105,912 50,907 5,933 Units redeemed 46,173 207,851 21,117 68,460 -- Units outstanding at end of period (76,602) (79,771) (30,799) (13,455) (5,933) ------------ ------------ ------------ ------------ ----------------- 330,758 361,187 96,230 105,912 -- ============ ============ ============ ============ =================
(p) For the Period Beginning January 1, 2001 and Ended June 27,2001 See notes to financial statements. 56 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- MFS Variable Insurance Trust Sub-Accounts --------------------------------------------------------------------------------------- MFS New Discovery MFS Research MFS Utilities --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (4,268) $ 3,001 $ (19,310) $ (5,870) $ (33) $ (28) Net realized gains (losses) (47,264) (3,827) (168,165) 85,285 (101) -- Change in unrealized gains (losses) (79,718) (5,141) (308,424) (547,684) (3,058) 267 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (131,250) (5,967) (495,899) (468,269) (3,192) 239 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 10,084 201,559 23,596 334,437 5,867 25,000 Benefit payments (5,426) -- (16,146) (26,135) -- -- Payments on termination (27,179) (7,793) (109,442) (122,144) (271) -- Contract maintenance charge (124) (31) (834) (308) (13) -- Transfers among the sub-accounts and with the Fixed Account - net 58,453 64,951 (41,678) 1,062,782 6,597 (17,912) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 35,808 258,686 (144,504) 1,248,632 12,180 7,088 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (95,442) 252,719 (640,403) 780,363 8,988 7,327 NET ASSETS AT BEGINNING OF PERIOD 378,744 126,025 2,002,610 1,222,247 7,327 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 283,302 $ 378,744 $ 1,362,207 $ 2,002,610 $ 16,315 $ 7,327 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 23,639 6,686 252,999 115,461 804 -- Units issued 15,876 19,766 26,554 190,899 2,394 804 Units redeemed (12,218) (2,813) (46,887) (53,361) (846) -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 27,297 23,639 232,666 252,999 2,352 804 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 57 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- MFS Variable Insurance Trust (Service Class) Sub-Accounts --------------------------------------------------------------------------------------- MFS Emerging MFS Investors MFS New Growth (Service Class) Trust (Service Class) Discovery (Service Class) --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001 (o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (8,297) $ (2,996) $ (6,279) $ (1,832) $ (7,091) $ (519) Net realized gains (losses) (49,022) (15,002) (35,775) (349) (24,226) (422) Change in unrealized gains (losses) (171,459) (7,859) (110,482) (3,983) (147,261) 14,354 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (228,778) (25,857) (152,536) (6,164) (178,578) 13,413 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 55,079 384,421 113,579 178,105 211,571 71,636 Benefit payments -- -- -- -- -- -- Payments on termination (32,918) (14,072) (16,289) (5,051) (87,991) (3,114) Contract maintenance charge (124) -- (106) -- (99) -- Transfers among the sub-accounts and with the Fixed Account - net 227,073 131,126 286,263 233,821 564,497 78,009 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 249,110 501,475 383,447 406,875 687,978 146,531 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 20,332 475,618 230,911 400,711 509,400 159,944 NET ASSETS AT BEGINNING OF PERIOD 475,618 -- 400,711 -- 159,944 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 495,950 $ 475,618 $ 631,622 $ 400,711 $ 669,344 $ 159,944 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 57,887 -- 45,156 -- 16,517 -- Units issued 69,071 71,108 87,045 46,264 110,282 17,944 Units redeemed (34,191) (13,221) (40,891) (1,108) (23,896) (1,427) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 92,767 57,887 91,310 45,156 102,903 16,517 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 58 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Neuberger & Berman Advisers Management MFS Variable Insurance Trust (Service Class) Sub-Accounts Trust Sub-Accounts --------------------------------------------------------- --------------------------- MFS Research MFS Utilities (Service Class) (Service Class) AMT Guardian --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001 (o) 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (4,479) $ (899) $ 6,115 $ (2,601) $ (86) $ (186) Net realized gains (losses) (19,986) (124) (73,115) 2,082 (1,326) 1,010 Change in unrealized gains (losses) (75,308) (2,251) (92,559) (47,107) (1,986) (1,332) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (99,773) (3,274) (159,559) (47,626) (3,398) (508) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 32,137 88,151 84,704 -- -- -- Benefit payments (18,699) -- (6,366) -- -- -- Payments on termination (16,796) (1,200) (16,386) (14,504) (5,651) (1,200) Contract maintenance charge (112) -- (94) -- (4) (3) Transfers among the sub-accounts and with the Fixed Account - net 231,569 117,646 35,026 565,158 -- -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 228,099 204,597 96,884 550,654 (5,655) (1,203) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 128,326 201,323 (62,675) 503,028 (9,053) (1,711) NET ASSETS AT BEGINNING OF PERIOD 201,323 -- 503,028 -- 15,511 17,222 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 329,649 $ 201,323 $ 440,353 $ 503,028 $ 6,458 $ 15,511 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 23,833 -- 66,720 -- 1,315 1,415 Units issued 42,202 24,130 50,634 70,599 -- -- Units redeemed (13,714) (297) (41,982) (3,879) (559) (100) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 52,321 23,833 75,372 66,720 756 1,315 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 59 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Variable Account Neuberger & Berman Advisers Management Trust Sub-Accounts Funds Sub-Accounts --------------------------------------------------------- ---------------------------- Oppenheimer AMT Mid-Cap Growth AMT Partners Aggressive Growth --------------------------- --------------------------- ---------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (444) $ (651) $ (1,390) $ (1,998) $ (16,738) $ (10,330) Net realized gains (losses) (10,102) (1,167) (14,022) 4,684 (324,488) 61,619 Change in unrealized gains (losses) (1,507) (13,227) (24,342) (10,370) (368,454) (575,302) ------------ ------------ ------------ ------------ ------------- ------------ Increase (decrease) in net assets from operations (12,053) (15,045) (39,754) (7,684) (709,680) (524,013) ------------ ------------ ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- -- 400 1,109 363,646 609,302 Benefit payments (3,806) -- (14,728) -- (14,488) -- Payments on termination (6,256) (1,542) (5,761) (4,213) (158,752) (54,235) Contract maintenance charge (34) (22) (46) -- (1,240) (469) Transfers among the sub-accounts and with the Fixed Account - net -- (1) (7,089) 2 521,947 723,676 ------------ ------------ ------------ ------------ ------------- ------------ Increase (decrease) in net assets from capital transactions (10,096) (1,565) (27,224) (3,102) 711,113 1,278,274 ------------ ------------ ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS (22,149) (16,610) (66,978) (10,786) 1,433 754,261 NET ASSETS AT BEGINNING OF PERIOD 41,758 58,368 165,466 176,252 1,972,125 1,217,864 ------------ ------------ ------------ ------------ ------------- ------------ NET ASSETS AT END OF PERIOD $ 19,609 $ 41,758 $ 98,488 $ 165,466 $ 1,973,558 $ 1,972,125 ============ ============ ============ ============ ============= ============ UNITS OUTSTANDING Units outstanding at beginning of period 3,352 3,478 16,031 16,330 261,438 104,742 Units issued -- -- 38 107 202,125 202,791 Units redeemed (1,085) (126) (3,288) (406) (102,486) (46,095) ------------ ------------ ------------ ------------ ------------- ------------ Units outstanding at end of period 2,267 3,352 12,781 16,031 361,077 261,438 ============ ============ ============ ============ ============= ============
See notes to financial statements. 60 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Variable Account Funds Sub-Accounts --------------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Capital Appreciation Global Securities Main Street Growth & Income --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (46,415) $ (28,758) $ (23,445) $ (18,296) $ (52,416) $ (59,589) Net realized gains (losses) (377,234) 119,904 (194,861) 160,474 (489,037) (93,364) Change in unrealized gains (losses) (1,375,580) (461,091) (536,796) (399,265) (1,282,675) (509,814) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (1,799,229) (369,945) (755,102) (257,087) (1,824,128) (662,767) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 1,091,379 2,256,542 209,095 855,764 701,215 1,917,855 Benefit payments (23,546) (25,561) (7,794) (22,053) (116,208) 94,426 Payments on termination (508,363) (188,020) (147,211) (131,889) (618,241) (272,597) Contract maintenance charge (2,315) (352) (892) (40) (4,458) (966) Transfers among the sub-accounts and with the Fixed Account - net 1,610,816 1,595,575 287,771 782,054 635,829 3,011,536 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 2,167,971 3,638,184 340,969 1,483,836 598,137 4,750,254 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 368,742 3,268,239 (414,133) 1,226,749 (1,225,991) 4,087,487 NET ASSETS AT BEGINNING OF PERIOD 4,809,623 1,541,384 2,969,009 1,742,260 8,177,413 4,089,926 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 5,178,365 $ 4,809,623 $ 2,554,876 $ 2,969,009 $ 6,951,422 $ 8,177,413 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 512,901 134,013 266,290 128,895 957,677 425,079 Units issued 495,131 429,334 131,702 185,893 383,580 650,516 Units redeemed (228,843) (50,446) (91,547) (48,498) (338,478) (117,918) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 779,189 512,901 306,445 266,290 1,002,779 957,677 ============ ============ ============ ============ ============ ============
See notes to financial statements. 61 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Putnam Variable Oppenheimer Variable Account Funds Sub-Accounts Trust Sub-Accounts --------------------------------------------------------- --------------------------- Oppenheimer Oppenheimer Multiple Strategies Strategic Bond VT Diversified Income --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 70,531 $ 17,361 $ 198,327 $ 7,107 $ 38,099 $ (2,120) Net realized gains (losses) (52,993) 41,717 (24,155) 32,696 (2,426) 77 Change in unrealized gains (losses) (510,913) (65,170) 81,305 20,234 6,666 2,082 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (493,375) (6,092) 255,477 60,037 42,339 39 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 497,289 657,587 719,491 744,604 35,949 368,910 Benefit payments (103,423) (44,434) (57,828) (37,867) -- -- Payments on termination (299,029) (78,963) (353,441) (116,268) (28,193) (3,323) Contract maintenance charge (1,567) (240) (1,064) (84) (189) -- Transfers among the sub-accounts and with the Fixed Account - net 1,708,143 2,037,975 1,931,658 1,324,899 544,124 117,188 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 1,801,413 2,571,925 2,238,816 1,915,284 551,691 482,775 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 1,308,038 2,565,833 2,494,293 1,975,321 594,030 482,814 NET ASSETS AT BEGINNING OF PERIOD 3,258,848 693,015 2,678,563 703,242 482,814 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 4,566,886 $ 3,258,848 $ 5,172,856 $ 2,678,563 $ 1,076,844 $ 482,814 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 316,206 66,442 255,897 68,371 47,836 -- Units issued 313,362 321,710 363,405 227,502 82,549 49,670 Units redeemed (115,969) (71,946) (149,426) (39,976) (27,850) (1,834) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 513,599 316,206 469,876 255,897 102,535 47,836 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 62 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts --------------------------------------------------------------------------------------- VT Growth and Income VT Growth Opportunities VT Health Sciences --------------------------- --------------------------- --------------------------- 2002 2001(o) 2002 2001(o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 1,178 $ (3,085) $ (1,545) $ (837) $ (9,294) $ (1,832) Net realized gains (losses) (44,658) (1,947) (19,276) (20,813) (35,224) 383 Change in unrealized gains (losses) (88,314) (12,661) (18,740) (3,362) (113,653) (5,845) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (131,794) (17,693) (39,561) (25,012) (158,171) (7,294) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 45,425 382,186 48,740 152,334 137,782 205,983 Benefit payments (17,181) -- -- -- (1,088) -- Payments on termination (36,034) (4,633) (2,045) -- (98,002) (3,159) Contract maintenance charge (193) -- (36) -- (205) -- Transfers among the sub-accounts and with the Fixed Account - net 55,372 185,018 34,851 (66,478) 318,902 216,437 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 47,389 562,571 81,510 85,856 357,389 419,261 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (84,405) 544,878 41,949 60,844 199,218 411,967 NET ASSETS AT BEGINNING OF PERIOD 544,878 -- 60,844 -- 411,967 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 460,473 $ 544,878 $ 102,793 $ 60,844 $ 611,185 $ 411,967 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 59,133 -- 7,551 -- 42,533 -- Units issued 56,362 60,912 17,050 19,568 65,430 42,816 Units redeemed (52,970) (1,779) (7,409) (12,017) (27,433) (283) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 62,525 59,133 17,192 7,551 80,530 42,533 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 63 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts --------------------------------------------------------------------------------------- VT International Growth VT New Value VT Research --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001 (o) 2002 2001 (o) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (39) $ -- $ (3,103) $ (1,212) $ (355) $ (2) Net realized gains (losses) (7) -- (22,936) 56 (1,277) -- Change in unrealized gains (losses) (180) -- (54,921) 3,503 (4,063) 62 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (226) -- (80,960) 2,347 (5,695) 60 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 3,323 -- 145,788 107,118 43,653 3,032 Benefit payments -- -- (2,435) -- -- -- Payments on termination (450) -- (36,876) -- (9,415) -- Contract maintenance charge -- -- (85) -- (7) -- Transfers among the sub-accounts and with the Fixed Account - net 4,929 -- 182,452 132,380 25,081 -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 7,802 -- 288,844 239,498 59,312 3,032 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 7,576 -- 207,884 241,845 53,617 3,092 NET ASSETS AT BEGINNING OF PERIOD -- -- 241,845 -- 3,092 -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 7,576 $ -- $ 449,729 $ 241,845 $ 56,709 $ 3,092 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period -- -- 25,106 -- 257 -- Units issued 1,001 -- 56,715 25,738 7,646 257 Units redeemed (178) -- (26,823) (632) (1,365) -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 823 -- 54,998 25,106 6,538 257 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 64 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts STI Classic Variable Trust Sub-Accounts --------------------------- --------------------------------------------------------- VT Voyager II STI Capital Appreciation STI Growth & Income --------------------------- --------------------------- --------------------------- 2002 2001 (o) 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (8,752) $ (2,101) $ (37,195) $ 9,332 $ (17,935) $ (15,283) Net realized gains (losses) (27,156) (17,882) (29,688) 40,047 (79,529) (6,475) Change in unrealized gains (losses) (178,981) (9,991) (565,954) (151,967) (525,975) (77,002) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (214,889) (29,974) (632,837) (102,588) (623,439) (98,760) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 204,141 306,491 625,366 224,387 328,372 566,617 Benefit payments -- -- (50,145) (29,946) (23,359) (9,220) Payments on termination (63,897) (3,128) (173,651) (78,980) (107,234) (107,810) Contract maintenance charge (187) -- (1,264) (442) (1,124) (263) Transfers among the sub-accounts and with the Fixed Account - net 318,132 84,201 2,127,842 620,969 406,637 1,060,822 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 458,189 387,564 2,528,148 735,988 603,292 1,510,146 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 243,300 357,590 1,895,311 633,400 (20,147) 1,411,386 NET ASSETS AT BEGINNING OF PERIOD 357,590 -- 1,787,584 1,154,184 2,383,756 972,370 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 600,890 $ 357,590 $ 3,682,895 $ 1,787,584 $ 2,363,609 $ 2,383,756 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 44,411 -- 180,181 107,209 241,852 90,725 Units issued 92,623 54,764 402,031 117,581 132,929 175,924 Units redeemed (31,322) (10,353) (88,463) (44,609) (65,800) (24,797) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 105,712 44,411 493,749 180,181 308,981 241,852 ============ ============ ============ ============ ============ ============
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 See notes to financial statements. 65 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- STI Classic Variable Trust Sub-Accounts --------------------------------------------------------------------------------------- STI International Equity STI Investment Grade Bond STI Mid-Cap Equity --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (4,146) $ (2,804) $ 124,414 $ 38,423 $ (17,068) $ 50,994 Net realized gains (losses) (18,025) (12,284) 2,393 2,362 (77,345) 25,730 Change in unrealized gains (losses) (45,135) (26,579) 137,755 (54) (302,571) (51,139) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (67,306) (41,667) 264,562 40,731 (396,984) 25,585 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 39,607 27,035 382,679 458,565 405,872 140,182 Benefit payments (1,495) -- (35,414) (16,761) (2,883) -- Payments on termination (47,629) (18,998) (324,321) (94,712) (70,922) (52,929) Contract maintenance charge (106) (11) (1,134) (134) (555) (299) Transfers among the sub-accounts and with the Fixed Account - net 152,516 112,878 3,161,516 1,475,001 553,562 381,076 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 142,893 120,904 3,183,326 1,821,959 885,074 468,030 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 75,587 79,237 3,447,888 1,862,690 488,090 493,615 NET ASSETS AT BEGINNING OF PERIOD 231,191 151,954 2,244,014 381,324 812,676 319,061 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 306,778 $ 231,191 $ 5,691,902 $ 2,244,014 $ 1,300,766 $ 812,676 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 29,258 15,683 204,655 36,063 86,297 35,072 Units issued 34,708 21,139 422,933 186,638 151,153 80,244 Units redeemed (16,387) (7,564) (126,882) (18,046) (49,275) (29,019) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 47,579 29,258 500,706 204,655 188,175 86,297 ============ ============ ============ ============ ============ ============
See notes to financial statements. 66 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- STI Classic Variable Trust Sub-Accounts --------------------------------------------------------------------------------------- STI Quality Growth Stock STI Small Cap Equity STI Value Income Stock --------------------------- --------------------------- --------------------------- 2002 (g) 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (14,779) $ (18,555) $ (19,636) $ (960) $ 1,479 $ 2,581 Net realized gains (losses) (612,048) (30,991) 12,666 5,541 (48,114) (1,331) Change in unrealized gains (losses) 302,139 (223,110) (132,640) 121,749 (287,281) (22,710) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (324,688) (272,656) (139,610) 126,330 (333,916) (21,460) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 89,169 68,130 529,380 423,599 307,155 211,072 Benefit payments (14,199) (4,651) (1,029) (24,360) (7,016) (8,632) Payments on termination (84,858) (71,607) (79,084) (34,775) (43,556) (15,544) Contract maintenance charge (678) (404) (946) (205) (802) (255) Transfers among the sub-accounts and with the Fixed Account - net (1,023,183) 515,703 1,053,048 812,033 575,811 426,434 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (1,033,749) 507,171 1,501,369 1,176,292 831,592 613,075 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (1,358,437) 234,515 1,361,759 1,302,622 497,676 591,615 NET ASSETS AT BEGINNING OF PERIOD 1,358,437 1,123,922 1,522,194 219,572 1,293,706 702,091 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ -- $ 1,358,437 $ 2,883,953 $ 1,522,194 $ 1,791,382 $ 1,293,706 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 178,852 117,999 115,262 18,626 128,855 68,117 Units issued 61,892 86,602 170,904 112,033 130,863 69,097 Units redeemed (240,744) (25,749) (50,057) (15,397) (39,467) (8,359) ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period -- 178,852 236,109 115,262 220,251 128,855 ============ ============ ============ ============ ============ ============
(g) For the Period Beginning January 1, 2002 and Ended September 6, 2002 See notes to financial statements. 67 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts --------------------------------------------------------------------------------------- Van Kampen UIF Van Kampen UIF Van Kampen UIF Equity Growth (h) Fixed Income (i) Global Value Equity (j) --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (2,151) $ (2,753) $ 35,581 $ 8,762 $ 26 $ -- Net realized gains (losses) (6,919) (6,081) 11,817 4,230 317 (40) Change in unrealized gains (losses) (47,596) (25,385) 4,459 (8,162) (8,548) (1,404) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (56,666) (34,219) 51,857 4,830 (8,205) (1,444) ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 36,502 17,135 496,456 50,211 14,524 6,647 Benefit payments -- -- -- -- -- -- Payments on termination (13,495) (1,676) (58,829) (7,979) (524) -- Contract maintenance charge (111) (40) (121) 4 (34) (11) Transfers among the sub-accounts and with the Fixed Account - net 7,918 (11,710) 631,768 185,148 12,308 1,642 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions 30,814 3,709 1,069,274 227,384 26,274 8,278 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (25,852) (30,510) 1,121,131 232,214 18,069 6,834 NET ASSETS AT BEGINNING OF PERIOD 164,795 195,305 277,359 45,145 22,439 15,605 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 138,943 $ 164,795 $ 1,398,490 $ 277,359 $ 40,508 $ 22,439 ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 17,182 16,097 25,804 4,181 2,159 1,322 Units issued 5,102 2,463 131,272 22,572 2,937 837 Units redeemed (1,591) (1,378) (31,327) (949) (70) -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period 20,693 17,182 125,749 25,804 5,026 2,159 ============ ============ ============ ============ ============ ============
(h) Previously known as UIF Equity Growth (i) Previously known as UIF Fixed Income (j) Previously known as UIF Global Value Equity See notes to financial statements. 68 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts --------------------------------------------------------------------------------------- Van Kampen UIF Van Kampen UIF Van Kampen UIF International Magnum (k) Mid Cap Value (l) U.S. Real Estate (m) --------------------------- --------------------------- --------------------------- 2002 2001 2002 2001 2002 2001 ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (19) $ (53) $ (5,987) $ (3,178) $ 124 $ -- Net realized gains (losses) (2,191) (24) (11,958) (4,816) 69 -- Change in unrealized gains (losses) 2,132 (1,333) (127,663) 4,891 (168) -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations (78) (1,410) (145,608) (3,103) 25 -- ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits -- -- 121,424 207,579 -- -- Benefit payments -- -- -- -- -- -- Payments on termination (5,430) -- (50,446) (5,120) -- -- Contract maintenance charge -- 2 (323) (86) -- -- Transfers among the sub-accounts and with the Fixed Account - net -- (2) 124,117 33,178 5,269 -- ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital transactions (5,430) -- 194,772 235,551 5,269 -- ------------ ------------ ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (5,508) (1,410) 49,164 232,448 5,294 -- NET ASSETS AT BEGINNING OF PERIOD 5,508 6,918 386,027 153,579 -- -- ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ -- $ 5,508 $ 435,191 $ 386,027 $ 5,294 $ -- ============ ============ ============ ============ ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 625 624 32,834 11,330 -- -- Units issued -- 1 31,818 23,538 590 -- Units redeemed (625) -- (8,318) (2,034) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Units outstanding at end of period -- 625 56,334 32,834 590 -- ============ ============ ============ ============ ============ ============
(k) Previously known as UIF International Magnum (l) Previously known as UIF Mid Cap Value (m) Previously known as UIF U.S. Real Estate See notes to financial statements. 69 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, ------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts --------------------------- Van Kampen UIF Value (n) --------------------------- 2002 2001 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (1,272) $ (1,168) Net realized gains (losses) (4,189) 11,698 Change in unrealized gains (losses) (50,854) (11,097) ------------ ------------ Increase (decrease) in net assets from operations (56,315) (567) ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS Deposits 36,474 137,505 Benefit payments (19,063) -- Payments on termination (29,601) (12,999) Contract maintenance charge (165) (45) Transfers among the sub-accounts and with the Fixed Account - net 18,662 (91,641) ------------ ------------ Increase (decrease) in net assets from capital transactions 6,307 32,820 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (50,008) 32,253 NET ASSETS AT BEGINNING OF PERIOD 243,051 210,798 ------------ ------------ NET ASSETS AT END OF PERIOD $ 193,043 $ 243,051 ============ ============ UNITS OUTSTANDING Units outstanding at beginning of period 20,577 17,833 Units issued 7,308 5,218 Units redeemed (5,836) (2,474) ------------ ------------ Units outstanding at end of period 22,049 20,577 ============ ============
(n) Previously known as UIF Value See notes to financial statements. 70 GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 1. ORGANIZATION Glenbrook Life Multi-Manager Variable Account (the "Account"), a unit investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, is a Separate Account of Glenbrook Life and Annuity Company ("Glenbrook Life"). The assets of the Account are legally segregated from those of Glenbrook Life. Glenbrook Life is wholly owned by Allstate Life Insurance Company, a wholly owned subsidiary of Allstate Insurance Company, which is wholly owned by The Allstate Corporation. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Glenbrook Life issues five variable annuity contracts, Enhanced Glenbrook Provider, Glenbrook Provider, Provider Ultra, Provider Advantage, and Provider Extra (collectively the "Contracts"), the deposits of which are invested at the direction of the contractholders in the sub-accounts that comprise the Account. Absent any Contract provisions wherein Glenbrook Life contractually guarantees either a minimum return or account value upon death or annuitization, variable annuity contractholders bear the investment risk that the sub-accounts may not meet their stated investment objectives. The sub-accounts invest in the following underlying mutual fund portfolios (collectively the "Funds"): AIM VARIABLE INSURANCE FUNDS FIDELITY VARIABLE INSURANCE PRODUCTS FUND AIM V.I. Aggressive Growth VIP Contrafund AIM V.I. Balanced VIP Equity-Income AIM V.I. Capital Appreciation VIP Growth AIM V.I. Core Equity (Previously known as VIP High Income AIM V.I. Growth and Income) VIP Index 500 AIM V.I. Dent Demographics VIP Overseas AIM V.I. Diversified Income FIDELITY VARIABLE INSURANCE PRODUCTS FUND (SERVICE AIM V.I. Global Utilities CLASS 2) AIM V.I. Government Securities VIP Asset Manager Growth (Service Class 2) AIM V.I. Growth VIP Contrafund (Service Class 2) AIM V.I. High Yield VIP Equity-Income (Service Class 2) AIM V.I. International Growth (Previously known VIP Growth (Service Class 2) as AIM V.I. International Equity) VIP High Income (Service Class 2) AIM V.I. Premier Equity (Previously known as VIP Index 500 (Service Class 2) AIM V.I. Value) VIP Overseas (Service Class 2) AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS American Century VP Balanced TRUST American Century VP International Franklin Global Health Care Securities (Merged DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. into Franklin Small Cap) Dreyfus Socially Responsible Growth Fund Franklin Small Cap DREYFUS STOCK INDEX FUND Franklin Technology Securities Dreyfus Stock Index Fund Mutual Shares Securities DREYFUS VARIABLE INVESTMENT FUND Templeton Developing Markets Securities VIF Growth and Income Templeton Foreign Securities (Previously known VIF Money Market As Templeton International Securities) VIF Small Company Stock Templeton Global Income Securities FEDERATED INSURANCE SERIES Templeton Growth Securities Federated Prime Money Fund II
71 NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- 1. ORGANIZATION (CONTINUED) GOLDMAN SACHS VARIABLE INSURANCE TRUST PUTNAM VARIABLE TRUST VIT Capital Growth VT Diversified Income VIT CORE Large Cap Growth (Closed April 30, VT Growth and Income 2002) VT Growth Opportunities VIT CORE Small Cap Equity VT Health Sciences VIT CORE U.S. Equity VT International Growth VIT Global Income (Closed April 30, 2002) VT New Value VIT Growth and Income VT Research VIT International Equity VT Voyager II VIT Mid Cap Value STI CLASSIC VARIABLE TRUST LSA VARIABLE SERIES TRUST STI Capital Appreciation LSA Focused Equity STI Growth & Income LSA Growth Equity STI International Equity MFS VARIABLE INSURANCE TRUST STI Investment Grade Bond MFS Emerging Growth STI Mid-Cap Equity MFS Investors Trust STI Quality Growth Stock (Closed September 6, MFS Limited Maturity (Closed June 27, 2001) 2002) MFS New Discovery STI Small Cap Equity MFS Research STI Value Income Stock MFS Utilities THE UNIVERSAL INSTITUTIONAL FUNDS, INC. MFS VARIABLE INSURANCE TRUST (SERVICE CLASS) Van Kampen UIF Equity Growth (Previously MFS Emerging Growth (Service Class) known as UIF Equity Growth) MFS Investors Trust (Service Class) Van Kampen UIF Fixed Income (Previously MFS New Discovery (Service Class) known as UIF Fixed Income) MFS Research (Service Class) Van Kampen UIF Global Value Equity MFS Utilities (Service Class) (Previously known as UIF Global Value NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST Equity) AMT Guardian Van Kampen UIF International Magnum AMT Mid-Cap Growth (Previously known as UIF International AMT Partners Magnum) OPPENHEIMER VARIABLE ACCOUNT FUNDS Van Kampen UIF Mid Cap Value (Previously Oppenheimer Aggressive Growth known as UIF Mid Cap Value) Oppenheimer Capital Appreciation Van Kampen UIF U.S. Real Estate (Previously Oppenheimer Global Securities known as UIF U.S. Real Estate) Oppenheimer Main Street Growth & Income Van Kampen UIF Value (Previously known as Oppenheimer Multiple Strategies UIF Value) Oppenheimer Strategic Bond
Glenbrook Life provides insurance and administrative services to the contractholders for a fee. Glenbrook Life also maintains a fixed account ("Fixed Account"), to which contractholders may direct their deposits and receive a fixed rate of return. Glenbrook Life has sole discretion to invest the assets of the Fixed Account, subject to applicable law. The LSA Variable Series Trust ("Trust") is managed by LSA Asset Management, LLC (the "Manager"), a wholly owned subsidiary of Allstate Life Insurance Company, pursuant to an investment management agreement with the Trust. The Manager is entitled to receive a management fee from each sub-account investing in the Trust. Fees are payable monthly at an annual rate as a percentage of average daily net assets at 0.85% for LSA Growth Equity and 0.95% for LSA Focused Equity. 72 NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS - Investments consist of shares of the Funds and are stated at fair value based on quoted market prices. INVESTMENT INCOME - Investment income consists of dividends declared by the Funds and is recognized on the ex-dividend date. REALIZED GAINS AND LOSSES - Realized gains and losses on fund shares represent the difference between the proceeds from sales of shares of the Funds by the Account and the cost of such shares, which is determined on a weighted average basis. Transactions are recorded on a trade date basis. Income from realized gain distributions are recorded on the Funds' ex-distribution date. FEDERAL INCOME TAXES - The Account intends to qualify as a segregated asset account as defined in the Internal Revenue Code ("Code"). As such, the operations of the Account are included in the tax return of Glenbrook Life. Glenbrook Life is taxed as a life insurance company under the Code. No federal income taxes are allocable to the Account as the Account did not generate taxable income. USE OF ESTIMATES - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 3. EXPENSES MORTALITY AND EXPENSE RISK CHARGE - Glenbrook Life assumes mortality and expense risks related to the operations of the Account and deducts charges daily at a rate ranging from 1.05% to 1.95% per annum of the daily net assets of the Account, based on the Contract and rider options selected. The mortality and expense risk charge is recognized as a reduction in accumulation unit values. The mortality and expense risk charge covers insurance benefits available with the Contracts and certain expenses of the Contracts. It also covers the risk that the current charges will not be sufficient in the future to cover the cost of administering the Contracts. Glenbrook Life guarantees that the amount of this charge will not increase over the life of the Contracts. At the contractholder's discretion, additional options, primarily death benefits, may be purchased for an additional charge. Glenbrook Life guarantees that the amount of this charge will not increase over the lives of the Contracts. ADMINISTRATIVE EXPENSE CHARGE - Glenbrook Life deducts administrative expense charges daily at a rate equal to .10% per annum of the average daily net assets of the Account. Glenbrook Life guarantees that the amount of this charge will not increase over the lives of the Contracts. The administrative expense charge is recognized as a reduction in accumulation unit values. CONTRACT MAINTENANCE CHARGE - Glenbrook Life deducts an annual maintenance charge of $35 on each Contract anniversary and guarantees that this charge will not increase over the lives of the Contracts. This charge will be waived if certain conditions are met. The contract maintenance charge is recognized as redemption of units. 73 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 4. PURCHASES OF INVESTMENTS The cost of purchases of investments for the year ended December 31, 2002 were as follows:
Purchases ------------- Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V. I. Aggressive Growth $ 100,195 AIM V. I. Balanced 1,394,011 AIM V. I. Capital Appreciation 404,079 AIM V. I. Core Equity (a) 279,742 AIM V. I. Dent Demographics 2,121 AIM V. I. Diversified Income 1,088,523 AIM V. I. Global Utilities 517 AIM V. I. Government Securities 754,509 AIM V. I. Growth 256,120 AIM V. I. High Yield 188,381 AIM V. I. International Growth (b) 2,546 AIM V. I. Premier Equity (c) 929,043 Investments in the American Century Variable Portfolios, Inc Sub-Accounts: American Century VP Balanced 43,377 American Century VP International 957 Investments in the Dreyfus Socially Responsible Growth Fund, Inc. Sub-Account: Dreyfus Socially Responsible Growth Fund 153,429 Investments in the Dreyfus Stock Index Fund Sub-Account: Dreyfus Stock Index Fund 1,016,818 Investments in the Dreyfus Variable Investment Fund Sub-Accounts: VIF Growth & Income 85,206 VIF Money Market 3,410,266 VIF Small Company Stock 119 Investments in the Federated Insurance Series Sub-Account: Federated Prime Money Fund II 7,024,068 Investments in the Fidelity Variable Insurance Products Fund Sub-Accounts: VIP Contrafund 490,023 VIP Equity-Income 989,474 VIP Growth 277,106 VIP High Income 426,232 VIP Index 500 442,688 VIP Overseas 65,257
(a) Previously known as AIM V. I. Growth and Income (b) Previously known as AIM V. I. International Equity (c) Previously known as AIM V. I. Value 74 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 4. PURCHASES OF INVESTMENTS (continued)
Purchases ------------- Investments in the Fidelity Variable Insurance Products Fund (Service Class 2) Sub-Accounts: VIP Asset Manager Growth (Service Class 2) $ 27,050 VIP Contrafund (Service Class 2) 633,620 VIP Equity-Income (Service Class 2) 2,367,963 VIP Growth (Service Class 2) 705,810 VIP High Income (Service Class 2) 598,826 VIP Index 500 (Service Class 2) 1,476,153 VIP Overseas (Service Class 2) 32,025 Investments in the Franklin Templeton Variable Insurance Products Trust Sub-Accounts: Franklin Global Health Care Securities (d) 29,586 Franklin Small Cap (d) 144,868 Franklin Technology Securities 3,716 Mutual Shares Securities 538,427 Templeton Developing Markets Securities 6,853 Templeton Foreign Securities (e) 97,920 Templeton Global Income Securities 193,786 Templeton Growth Securities 388,999 Investments in the Goldman Sachs Variable Insurance Trust Sub-Accounts: VIT Capital Growth 26,610 VIT CORE Large Cap Growth (f) - VIT CORE Small Cap Equity 85,903 VIT CORE U.S. Equity 55,964 VIT Global Income (f) 2,756 VIT Growth and Income 98 VIT International Equity 192 VIT Mid Cap Value 81 Investments in the LSA Variable Series Trust Sub-Accounts: LSA Focused Equity 30,102 LSA Growth Equity 39,277 Investments in the MFS Variable Insurance Trust Sub-Accounts: MFS Emerging Growth 221,097 MFS Investors Trust 153,631 MFS New Discovery 164,979 MFS Research 132,416 MFS Utilities 12,612
(d) On April 30, 2002, Franklin Global Health Care Securities merged into Franklin Small Cap (e) Previously known as Templeton International Securities (f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 75 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 4. PURCHASES OF INVESTMENTS (continued)
Purchases ------------- Investments in the MFS Variable Insurance Trust (Service Class) Sub-Accounts: MFS Emerging Growth (Service Class) $ 396,974 MFS Investors Trust (Service Class) 546,414 MFS New Discovery (Service Class) 804,176 MFS Research (Service Class) 289,959 MFS Utilities (Service Class) 317,422 Investments in the Neuberger & Berman Advisers Management Trust Sub-Accounts: AMT Guardian 80 AMT Mid-Cap Growth -- AMT Partners 1,155 Investments in the Oppenheimer Variable Account Funds Sub-Accounts: Oppenheimer Aggressive Growth 1,154,033 Oppenheimer Capital Appreciation 3,235,519 Oppenheimer Global Securities 944,711 Oppenheimer Main Street Growth & Income 2,586,926 Oppenheimer Multiple Strategies 2,738,438 Oppenheimer Strategic Bond 3,354,615 Investments in the Putnam Variable Trust Sub-Accounts: VT Diversified Income 681,653 VT Growth Opportunities 137,914 VT Growth and Income 331,500 VT Health Sciences 509,223 VT International Growth 8,429 VT New Value 473,465 VT Research 69,211 VT Voyager II 545,552
76 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 4. PURCHASES OF INVESTMENTS (continued)
Purchases ------------- Investments in the STI Classic Variable Trust Sub-Accounts: STI Capital Appreciation $ 3,124,040 STI Growth & Income 976,056 STI International Equity 238,890 STI Investment Grade Bond 4,182,522 STI Mid-Cap Equity 1,132,731 STI Quality Growth Stock (g) 438,775 STI Small Cap Equity 1,919,437 STI Value Income Stock 1,116,191 Investments in The Universal Institutional Funds, Inc. Sub-Accounts: Van Kampen UIF Equity Growth (h) 44,671 Van Kampen UIF Fixed Income (i) 1,360,891 Van Kampen UIF Global Value Equity (j) 27,782 Van Kampen UIF International Magnum (k) -- Van Kampen UIF Mid Cap Value (l) 253,276 Van Kampen UIF U.S. Real Estate (m) 10,461 Van Kampen UIF Value (n) 66,356 ------------- $ 62,015,575 =============
(g) For the Period Beginning January 1, 2002 and Ended September 6, 2002 (h) Previously known as UIF Equity Growth (i) Previously known as UIF Fixed Income (j) Previously known as UIF Global Value Equity (k) Previously known as UIF International Magnum (l) Previously known as UIF Mid Cap Value (m) Previously known as UIF U.S. Real Estate (n) Previously known as UIF Value 77 NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- 5. FINANCIAL HIGHLIGHTS The range of lowest and highest accumulation unit values, the investment income ratio, the range of lowest and highest expense ratio assessed by Glenbrook Life, and the corresponding range of total return is presented for each rider option of the sub-account which had outstanding units during the period. As explained in Note 3, the expense ratio represents mortality and expense risk and administrative expense charges which are assessed as a percentage of daily net assets. The amount deducted is based upon the product and the number and magnitude of rider options selected by each contractholder. This results in several accumulation unit values for each sub-account based upon those choices. ITEMS IN THE FOLLOWING TABLE ARE NOTATED AS FOLLOWS: * INVESTMENT INCOME RATIO - This represents dividends, excluding realized gain distributions, received by the sub-account, net of management fees assessed by the fund manager, divided by the average net assets. This ratio excludes those expenses that result in direct reductions in the accumulation unit values. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying fund in which the sub-account invests. ** EXPENSE RATIO - This represents the annualized contract expenses of the sub-account for the period and includes only those expenses that are charged through a reduction in the accumulation unit values. Excluded are expenses of the underlying fund portfolio and charges made directly to contractholder accounts through the redemption of units. *** TOTAL RETURN - This represents the total return for the period and reflects those expenses that result in direct reductions in the accumulation unit values. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. In the year of launch, returns on new products were annualized to represent the return as if the contractholder was invested in the sub-account for the entire year. Total return is calculated using unrounded accumulation unit values. Sub-accounts with a date notation indicate the effective date of that investment option in the Account. The investment income ratio and total return are calculated for the period or from the effective date through the end of the reporting period.
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V. I. Aggressive Growth 2002 $ 6.52 - $ 8.08 0.00 % 1.35 % - 1.85 % -24.10 % - -23.71 % 2001 (o) 8.59 - 8.62 0.00 1.35 - 1.85 -14.11 - -13.82 AIM V. I. Balanced 2002 6.54 - 9.19 2.53 1.15 - 1.85 -18.63 - -18.05 2001 8.02 - 10.50 1.97 1.15 - 1.85 -13.00 - -12.44 AIM V. I. Capital Appreciation 2002 4.38 - 9.40 0.00 1.15 - 1.85 -25.76 - -25.22 2001 5.89 - 12.62 0.00 1.15 - 1.85 -24.67 - -24.16
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 78
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the AIM Variable Insurance Funds Sub-Accounts (continued): AIM V. I. Core Equity (a) 2002 $ 5.08 - $ 9.13 0.30 % 1.15 % - 1.85 % -17.15 % - -16.55 % 2001 6.12 - 10.96 0.05 1.15 - 1.85 -24.23 - -23.72 AIM V. I. Dent Demographics 2002 5.62 - 5.66 0.00 1.35 - 1.85 -33.46 - -33.12 2001 (o) 8.44 - 8.47 0.00 1.35 - 1.85 -15.59 - -15.30 AIM V. I. Diversified Income 2002 9.92 - 10.22 13.31 1.15 - 1.85 0.41 - 1.13 2001 9.91 - 10.13 6.29 1.15 - 1.85 1.78 - 2.40 AIM V. I. Global Utilities 2002 7.11 - 7.59 2.97 1.35 - 1.37 -26.55 - -26.53 2001 9.68 - 10.34 1.19 1.35 - 1.45 -28.97 - -28.90 AIM V. I. Government Securities 2002 11.77 - 12.69 2.36 1.15 - 1.65 8.02 - 8.34 2001 11.21 - 11.74 2.06 1.15 - 1.45 4.87 - 5.19 AIM V. I. Growth 2002 3.32 - 6.27 0.00 1.15 - 1.85 -32.25 - -31.76 2001 4.89 - 9.21 0.21 1.15 - 1.85 -35.10 - -34.65 AIM V. I. High Yield 2002 7.25 - 9.80 0.00 1.15 - 1.85 -7.58 - -6.91 2001 7.82 - 9.44 15.34 1.15 - 1.85 -6.68 - -6.09 AIM V. I. International Growth (b) 2002 7.37 - 7.98 0.55 1.15 - 1.59 -17.01 - -16.64 2001 6.25 - 9.59 0.31 1.15 - 1.65 -24.78 - -24.41 AIM V. I. Premier Equity (c) 2002 5.04 - 8.52 0.30 1.15 - 1.85 -31.55 - -31.06 2001 7.35 - 12.38 0.13 1.15 - 1.85 -14.12 - -13.57
(a) Previously known as AIM V. I. Growth and Income (b) Previously known as AIM V. I. International Equity (c) Previously known as AIM V. I. Value (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 79
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the American Century Variable Portfolios, Inc. Sub-Accounts: American Century VP Balanced 2002 $ 10.69 - $ 10.75 2.80 % 1.35 % - 1.45 % -10.86 % - -10.77 % 2001 11.99 - 12.04 3.62 1.35 - 1.45 -4.94 - -4.84 American Century VP International 2002 8.52 - 8.57 0.88 1.35 - 1.45 -21.52 - -21.44 2001 10.86 - 10.91 0.09 1.35 - 1.45 -30.20 - -30.13 Investments in the Dreyfus Socially Responsible Growth Fund, Inc. Sub-Account: Dreyfus Socially Responsible Growth Fund 2002 4.48 - 8.31 0.27 1.15 - 1.65 -30.11 - -29.76 2001 6.41 - 11.86 0.06 1.15 - 1.65 -23.84 - -23.47 Investments in the Dreyfus Stock Index Fund Sub-Account: Dreyfus Stock Index Fund 2002 5.82 - 9.07 1.46 1.15 - 1.85 -23.80 - -23.25 2001 7.63 - 11.84 1.52 1.15 - 1.85 -13.75 - -13.19 Investments in the Dreyfus Variable Investment Fund Sub-Accounts: VIF Growth & Income 2002 6.38 - 8.86 0.60 1.15 - 1.85 -26.55 - -26.18 2001 8.68 - 12.02 0.46 1.15 - 1.65 -7.38 - -6.93 VIF Money Market 2002 10.00 - 11.74 1.38 1.15 - 1.85 -0.41 - 0.30 2001 10.09 - 11.73 3.00 1.15 - 1.85 2.11 - 2.49 VIF Small Company Stock 2002 9.26 - 9.67 0.24 1.15 - 1.59 -20.98 - -20.63 2001 11.70 - 12.18 0.07 1.15 - 1.59 -3.10 - -2.67 Investments in the Federated Insurance Series Sub-Account: Federated Prime Money Fund II 2002 9.93 - 10.84 1.46 1.15 - 2.05 -0.68 - 0.24 2001 10.00 - 10.82 3.33 1.15 - 2.05 1.81 - 2.57
80
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the Fidelity Variable Insurance Products Fund Sub-Accounts: VIP Contrafund 2002 $ 7.11 - $ 12.42 0.89 % 1.15 % - 1.65 % -10.83 % - -10.39 % 2001 7.97 - 13.89 0.75 1.15 - 1.65 -13.69 - -13.25 VIP Equity-Income 2002 7.96 - 9.72 1.85 1.15 - 1.65 -18.31 - -17.90 2001 9.74 - 11.86 1.45 1.15 - 1.65 -6.52 - -6.05 VIP Growth 2002 4.66 - 9.82 0.27 1.15 - 1.65 -31.25 - -30.91 2001 6.78 - 14.24 0.07 1.15 - 1.65 -19.01 - -18.60 VIP High Income 2002 7.34 - 7.63 10.70 1.15 - 1.65 1.75 - 2.26 2001 7.20 - 7.46 12.18 1.15 - 1.65 -13.18 - -12.75 VIP Index 500 2002 5.84 - 6.11 1.34 1.15 - 1.65 -23.52 - -23.14 2001 7.63 - 7.94 0.89 1.15 - 1.65 -13.55 - -13.11 VIP Overseas 2002 5.08 - 5.28 0.89 1.15 - 1.65 -21.59 - -21.19 2001 6.47 - 6.73 5.16 1.15 - 1.65 -22.47 - -22.07 Investments in the Fidelity Variable Insurance Products Fund (Service Class 2) Sub-Accounts: VIP Asset Manager Growth (Service Class 2) 2002 7.85 - 7.89 1.99 1.35 - 1.60 -16.97 - -16.96 2001 (o) 9.48 - 9.50 0.00 1.35 - 1.60 -5.19 - -5.03 VIP Contrafund (Service Class 2) 2002 8.37 - 10.17 0.51 1.35 - 2.05 -11.46 - -10.83 2001 (o) 9.43 - 11.41 0.00 1.35 - 2.05 -5.78 - -5.35 VIP Equity-Income (Service Class 2) 2002 7.59 - 9.55 1.27 1.35 - 2.05 -18.69 - -18.27 2001 (o) 9.34 - 11.70 0.00 1.35 - 1.85 -6.61 - -6.30 VIP Growth (Service Class 2) 2002 5.92 - 8.53 0.11 1.35 - 1.85 -31.59 - -31.24 2001 (o) 8.65 - 12.42 0.00 1.35 - 1.85 -13.49 - -13.19 VIP High Income (Service Class 2) 2002 9.11 - 9.19 5.30 1.35 - 1.85 1.39 - 1.90 2001 (o) 8.99 - 9.02 0.00 1.35 - 1.85 -10.14 - -9.84 VIP Index 500 (Service Class 2) 2002 6.86 - 9.06 1.01 1.35 - 1.85 -23.88 - -23.50 2001 (o) 9.01 - 11.87 0.00 1.35 - 1.85 -9.90 - -9.59
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 81
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the Fidelity Variable Insurance Products Fund (Service Class 2) Sub-Accounts (continued): VIP Overseas (Service Class 2) 2002 $ 6.29 - $ 9.13 0.76 % 1.35 % - 1.60 % -21.73 % - -21.53 % 2001 (o) 8.03 - 11.65 0.00 1.35 - 1.60 -19.68 - -19.55 Investments in the Franklin Templeton Variable Insurance Products Trust Sub-Accounts: Franklin Global Health Care securities 2002 (d) N/A - N/A 0.00 1.35 - 1.85 N/A - N/A 2001 (o) 9.78 - 9.82 0.00 1.35 - 1.85 -2.16 - -1.82 Franklin Small Cap 2002 (d) 4.76 - 12.39 0.28 1.15 - 1.85 -30.01 - -29.50 2001 6.79 - 17.57 0.12 1.15 - 1.85 -16.76 - -16.22 Franklin Technology Securities 2002 4.38 - 6.37 0.00 1.35 - 1.60 -44.80 - -44.66 2001 (o) 7.93 - 7.94 0.00 1.35 - 1.60 -20.71 - -20.58 Mutual Shares Securities 2002 8.48 - 13.02 0.95 1.15 - 1.85 -13.44 - -12.82 2001 9.80 - 14.93 1.18 1.15 - 1.85 -2.00 - -1.52 Templeton Developing Markets Securities 2002 9.25 - 9.25 0.00 1.60 - 1.60 -7.46 - -7.46 2001 (o) - - - 0.00 0.00 - 0.00 0.00 - 0.00 Templeton Foreign Securities (e) 2002 6.35 - 7.27 1.51 1.15 - 1.85 -20.07 - -19.49 2001 8.75 - 9.03 2.22 1.15 - 1.85 -17.50 - -16.96 Templeton Global Income Securities 2002 12.36 - 13.79 0.92 1.15 - 1.85 19.17 - 19.76 2001 10.41 - 11.51 3.30 1.15 - 1.65 0.63 - 1.06 Templeton Growth Securities 2002 7.75 - 10.69 2.14 1.15 - 1.85 -20.00 - -19.42 2001 9.68 - 13.26 2.17 1.15 - 1.85 -3.17 - -3.05
(d) On April 30, 2002, Franklin Global Health Care Securities merged into Franklin Small Cap (e) Previously known as Templeton International Securities (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 82
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the Goldman Sachs Variable Insurance Trust Sub-Accounts: VIT Capital Growth 2002 $ 5.49 - $ 8.05 0.10 % 1.15 % - 1.65 % -25.57 % - -25.20 % 2001 7.37 - 10.76 0.73 1.15 - 1.65 -15.87 - -15.45 VIT CORE Large Cap Growth 2002 (f) N/A - N/A 0.00 1.59 - 1.59 N/A - N/A 2001 8.97 - 8.97 0.01 1.59 - 1.59 -22.02 - -22.02 VIT CORE Small Cap Equity 2002 8.27 - 10.80 0.29 1.15 - 1.85 -16.54 - -15.94 2001 9.88 - 12.85 0.32 1.15 - 1.85 2.71 - 3.33 VIT CORE U.S. Equity 2002 5.86 - 8.08 0.57 1.15 - 1.85 -23.34 - -22.79 2001 7.63 - 10.47 0.42 1.15 - 1.85 -13.51 - -13.06 VIT Global Income 2002 (f) N/A - N/A 0.00 1.15 - 1.85 N/A - N/A 2001 10.17 - 11.09 7.02 1.15 - 1.85 2.99 - 3.60 VIT Growth and Income 2002 7.60 - 7.60 1.09 1.59 - 1.59 -12.74 - -12.74 2001 8.71 - 8.83 0.30 1.15 - 1.59 -10.78 - -10.38 VIT International Equity 2002 7.45 - 7.59 1.09 1.15 - 1.59 -19.63 - -19.27 2001 9.27 - 9.40 1.46 1.15 - 1.59 -23.49 - -23.15 VIT Mid Cap Value 2002 13.21 - 13.21 1.05 1.37 - 1.37 -5.99 - -5.99 2001 14.06 - 14.06 2.19 1.37 - 1.37 10.52 - 10.52 Investments in the LSA Variable Series Trust Sub-Accounts: LSA Focused Equity 2002 6.25 - 7.24 0.00 1.35 - 1.85 -31.12 - -30.76 2001 (o) 9.07 - 9.10 0.00 1.35 - 1.85 -9.28 - -8.98 LSA Growth Equity 2002 6.54 - 7.85 0.09 1.35 - 1.85 -25.77 - -25.77 2001 (o) 8.82 - 8.82 0.00 1.85 - 1.85 -11.85 - -11.85
(f) For the Period Beginning January 1, 2002 and Ended on April 30, 2002 (o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 83
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the MFS Variable Insurance Trust Sub-Accounts: MFS Emerging Growth 2002 $ 3.44 - $ 8.64 0.00 % 1.15 % - 1.65 % -34.85 % - -34.52 % 2001 5.29 - 13.22 0.00 1.15 - 1.65 -34.58 - -34.25 MFS Investors Trust 2002 6.19 - 7.31 0.57 1.15 - 1.65 -22.26 - -21.87 2001 7.97 - 9.36 0.14 1.15 - 1.65 -17.34 - -16.92 MFS Limited Maturity 2001 (p) N/A - N/A 0.00 0.00 - 0.00 N/A - N/A MFS New Discovery 2002 6.00 - 12.00 0.00 1.15 - 1.75 -32.75 - -32.41 2001 8.92 - 17.76 2.54 1.15 - 1.65 -6.57 - -6.12 MFS Research 2002 4.95 - 6.30 0.26 1.15 - 1.65 -25.77 - -25.40 2001 6.67 - 8.44 1.30 1.15 - 1.65 -22.55 - -22.16 MFS Utilities 2002 6.92 - 6.95 1.30 1.37 - 1.69 -23.79 - -23.78 2001 (o) 9.12 - 9.12 0.00 1.47 - 1.47 -8.84 - -8.84 Investments in the MFS Variable Insurance Trust (Service Class) Sub-Accounts: MFS Emerging Growth (Service Class) 2002 5.28 - 8.30 0.00 1.35 - 1.85 -35.08 - -34.75 2001 (o) 8.13 - 12.74 0.00 1.35 - 1.85 -18.70 - -18.42 MFS Investors Trust (Service Class) 2002 6.82 - 8.96 0.48 1.35 - 1.85 -22.61 - -22.22 2001 (o) 8.81 - 11.54 0.00 1.35 - 1.85 -11.87 - -11.57 MFS New Discovery (Service Class) 2002 6.42 - 8.83 0.00 1.35 - 1.85 -33.07 - -32.72 2001 (o) 9.59 - 13.16 0.00 1.35 - 1.85 -4.14 - -3.81 MFS Research (Service Class) 2002 6.23 - 8.86 0.11 1.35 - 1.85 -26.11 - -25.74 2001 (o) 8.43 - 8.46 0.00 1.35 - 1.85 -15.70 - -15.42 MFS Utilities (Service Class) 2002 5.69 - 7.72 2.97 1.35 - 1.85 -24.33 - -23.94 2001 (o) 7.52 - 10.02 0.00 1.35 - 1.85 -24.80 - -24.54
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 (p) For the Period Beginning January 1, 2001 and Ended June 27,2001 84
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the Neuberger & Berman Advisers Management Trust Sub-Accounts: AMT Guardian 2002 $ 8.54 - $ 8.54 0.76 % 1.59 % - 1.59 % -27.61 % - -27.61 % 2001 11.79 - 11.88 0.46 1.37 - 1.59 % -3.07 - -2.93 AMT Mid-Cap Growth 2002 8.63 - 8.78 0.00 1.15 - 1.59 -30.46 - -30.15 2001 12.40 - 12.58 0.01 1.15 - 1.59 -25.84 - -25.51 AMT Partners 2002 7.71 - 7.71 0.58 1.59 - 1.59 -25.34 - -25.34 2001 10.32 - 10.32 0.38 1.59 - 1.59 -4.37 - -4.37 Investments in the Oppenheimer Variable Account Funds Sub-Accounts: Oppenheimer Aggressive Growth 2002 3.33 - 8.21 0.64 1.15 - 1.85 -29.13 - -28.62 2001 4.69 - 11.55 0.74 1.15 - 1.85 -32.52 - -32.06 Oppenheimer Capital Appreciation 2002 5.52 - 8.81 0.59 1.15 - 2.05 -28.22 - -27.70 2001 7.67 - 12.23 0.39 1.15 - 1.85 -14.14 - -13.58 Oppenheimer Global Securities 2002 6.24 - 9.48 0.56 1.15 - 1.85 -23.58 - -23.03 2001 8.14 - 12.37 0.53 1.15 - 1.85 -13.61 - -13.05 Oppenheimer Main Street Growth & Income 2002 6.15 - 9.18 0.78 1.15 - 1.85 -20.30 - -19.73 2001 7.70 - 11.48 0.43 1.15 - 1.85 -11.76 - -11.19 Oppenheimer Multiple Strategies 2002 8.42 - 9.87 3.27 1.15 - 1.85 -12.06 - -11.43 2001 9.58 - 11.18 2.20 1.15 - 1.85 0.41 - 1.04 Oppenheimer Strategic Bond 2002 10.76 - 11.35 6.54 1.15 - 1.85 5.46 - 6.21 2001 10.18 - 10.69 1.74 1.15 - 1.85 3.00 - 3.64
85
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the Putnam Variable Trust Sub-Accounts: VT Diversified Income 2002 $ 10.25 - $ 10.62 6.40 % 1.25 % - 1.85 % 4.21 % - 4.48 % 2001 (o) 10.09 - 10.19 0.00 1.35 - 1.60 0.89 - 1.06 VT Growth and Income 2002 7.30 - 9.08 0.00 1.35 - 1.85 -20.49 - -20.08 2001 (o) 9.19 - 9.91 0.00 1.25 - 1.85 -8.14 - -7.75 VT Growth Opportunities 2002 5.59 - 8.50 1.80 1.35 - 1.80 -30.62 - -30.44 2001 (o) 8.05 - 8.06 0.00 1.35 - 1.60 -19.49 - -19.35 VT Health Sciences 2002 7.53 - 8.67 0.00 1.25 - 2.05 -21.98 - -21.33 2001 (o) 9.63 - 11.04 0.00 1.25 - 2.05 -3.82 - -2.01 VT International Growth 2002 8.42 - 9.61 0.00 1.35 - 1.60 -4.24 - -3.93 2001 (o) - - - 0.00 0.00 - 0.00 0.00 - 0.00 VT New Value 2002 7.94 - 9.85 0.87 1.25 - 1.80 -17.12 - -16.65 2001 (o) 9.56 - 11.85 0.00 1.25 - 1.80 -4.55 - 1.24 VT Research 2002 8.32 - 9.25 0.19 1.35 - 1.60 -23.45 - -23.45 2001 (o) 12.05 - 12.05 0.00 1.60 - 1.60 20.48 - 20.48 VT Voyager II 2002 5.55 - 8.98 0.00 1.35 - 1.85 -30.88 - -30.53 2001 (o) 8.03 - 10.13 0.00 1.35 - 1.85 -19.67 - -19.40 Investments in the STI Classic Variable Trust Sub-Accounts: STI Capital Appreciation 2002 6.64 - 9.34 0.00 1.15 - 1.85 -23.33 - -22.78 2001 8.64 - 10.11 2.04 1.15 - 1.85 -7.02 - -6.43 STI Growth & Income 2002 7.10 - 9.13 0.71 1.15 - 1.85 -22.06 - -21.50 2001 9.09 - 10.07 0.47 1.15 - 1.85 -7.24 - -6.65 STI International Equity 2002 6.20 - 9.00 0.00 1.15 - 1.80 -19.92 - -19.52 2001 7.75 - 8.64 0.10 1.15 - 1.65 -18.76 - -18.35 STI Investment Grade Bond 2002 10.49 - 12.16 4.61 1.15 - 1.85 5.41 - 6.17 2001 9.95 - 11.45 4.18 1.15 - 1.85 7.27 - 7.93
(o) For the Period Beginning May 1, 2001 and Ended December 31, 2001 86
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in the STI Classic Variable Trust Sub-Accounts (continued): STI Mid-Cap Equity 2002 $ 6.17 - $ 9.13 0.00 % 1.15 % - 2.05 % -29.92 % - -29.27 % 2001 8.77 - 12.96 10.25 1.15 - 2.05 0.79 - 1.54 STI Quality Growth Stock 2002 N/A - N/A 0.00 1.15 - 1.65 N/A - N/A 2001 7.01 - 8.85 0.02 1.15 - 1.65 -20.02 - -19.62 STI Small Cap Equity 2002 10.57 - 13.90 0.65 1.15 - 2.05 -3.22 - -2.33 2001 10.90 - 14.23 1.13 1.15 - 2.05 19.24 - 20.08 STI Value Income Stock 2002 7.75 - 9.51 1.56 1.15 - 2.05 -18.52 - -17.94 2001 9.51 - 11.63 1.58 1.15 - 1.85 -2.88 - -2.27 Investments in The Universal Institutional Funds, Inc. Sub-Accounts: Van Kampen UIF Equity Growth (h) 2002 4.77 - 7.88 0.18 1.15 - 1.65 -29.05 - -28.69 2001 6.73 - 11.05 0.00 1.15 - 1.65 -16.51 - -16.09 Van Kampen UIF Fixed Income (i) 2002 10.51 - 12.33 5.84 1.35 - 1.85 5.34 - 5.88 2001 10.42 - 11.64 6.23 1.35 - 1.85 7.47 - 7.84 Van Kampen UIF Global Value Equity (j) 2002 7.55 - 8.94 1.64 1.15 - 1.85 -18.41 - -17.82 2001 9.26 - 10.87 1.21 1.15 - 1.85 -8.68 - -8.11 Van Kampen UIF International Magnum (k) 2002 - - - 0.00 0.00 - 0.00 0.00 - 0.00 2001 8.82 - 8.82 0.47 1.37 - 1.37 -20.40 - -20.40 Van Kampen UIF Mid Cap Value (l) 2002 6.69 - 9.75 0.00 1.15 - 1.85 -29.36 - -28.85 2001 9.45 - 13.71 0.00 1.15 - 1.85 -4.86 - -4.26
(h) Previously known as UIF Equity Growth (i) Previously known as UIF Fixed Income (j) Previously known as UIF Global Value Equity (k) Previously known as UIF International Magnum (l) Previously known as UIF Mid Cap Value 87
At December 31, For the year ended December 31, ----------------- ----------------------------------------------------- Accumulation Investment Expense Total Unit Value Income Ratio* Ratio** Return*** ----------------- ------------- ---------------- -------------------- Investments in The Universal Institutional Funds, Inc. Sub-Accounts: Van Kampen UIF U. S. Real Estate (m) 2002 $ 8.97 - $ 8.97 4.87 % 1.60 % - 1.60 % -10.32 % - -10.32 % 2001 - - - 0.00 0.00 - 0.00 0.00 - 0.00 Van Kampen UIF Value (n) 2002 7.35 - 9.28 0.98 1.15 - 1.65 -23.43 - -23.05 2001 9.60 - 12.06 1.07 1.15 - 1.65 0.61 - 1.10
(m) Previously known as UIF U.S. Real Estate (n) Previously known as UIF Value 88 PART C OTHER INFORMATION Item 24(a) FINANCIAL STATEMENTS The financial statements of Glenbrook Life and Annuity Company and the Financial Statements of Glenbrook Life Multi-Manager Variable Account are contained in Part B of this Registration Statement. Item 24(b) EXHIBITS (1) Resolution of the Board of Directors of Glenbrook Life and Annuity Company authorizing establishment of the Glenbrook Life Multi-Manager Variable Account (Incorporated herein by reference to Registrant's initial registration statement (File No. 333-00999) dated February 16, 1996.) (2) Not Applicable (3) Form of Underwriting Agreement (Incorporated herein by reference to Pre-Effective Amendment No. 2 to Registrant's registration statement (File No. 333-00999) dated August 23, 1996.) (4)(a) Form of Contract for the Glenbrook Provider Extra (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (4)(b) Form of Enhanced Death Benefit Rider (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (4)(c) Form of Income Benefit Rider (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (4)(d) Form of Enhanced Earnings Death Benefit Rider (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (4)(e) Form of Beneficiary/Death Benefit Endorsement (Previously filed in Post-Effective Amendment No. 2 to this registration statement (File No. 333-65826) dated April 30, 2002.) (5)(a) Application for the Glenbrook Provider Extra Contract (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (6)(a) Amended and Restated Articles of Incorporation and Articles of Redomestication of Glenbrook Life and Annuity Company (Incorporated herein by reference to Depositor's Form 10-K dated March 26, 1999) (6)(b) Amended and Restated By-laws of Glenbrook Life and Annuity Company (incorporated herein by reference to Depositor's Form 10-K dated March 26, 1999) (7) Reinsurance Agreement (incorporated herein by reference to Depositor's S-1 Registration Statement (File No. 333-07275) dated June 28, 1996) (8)(a) Form of Participation Agreements. (Incorporated by reference herein to Pre-Effective Amendment No. 2 and Post-Effective Amendment Nos. 4 and 7 to Registrant's registration statement (File No. 333-00999) dated August 23, 1996, September 30, 1998 and January 24, 2000, respectively.) (8)(b) Participation Agreement Among Putnam Variable Trust, Putnam Retail Management, Inc. and Glenbrook Life and Annuity Company (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (9) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and General Counsel of Glenbrook Life and Annuity Company (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (10)(a) Independent Auditors' Consent (10)(b) Consent of Foley & Lardner (11) Not applicable (12) Not applicable (13)(a) Performance Data Calculations (Previously filed in Post-Effective Amendment No. 1 to this registration statement (File No. 333-65826) dated October 19, 2001.) (13)(b) Performance Data Calculations (Previously filed in Post-Effective Amendment No. 2 to this registration statement (File No. 333-65826) dated April 30, 2002.) (13)(c) Performance Data Calculations filed herewith (14) Not applicable. (99)(a) Powers of Attorney for Michael J. Velotta, Margaret G. Dyer, Marla G. Friedman, John C. Lounds, J. Kevin McCarthy and Samuel H. Pilch. (Incorporated herein by reference to Post-Effective Amendment No. 11 to Registrant's registration statement (File No. 333-00999) dated July 5, 2000.) (99)(b) Power of Attorney for Steven E. Shebik (Previously filed in Registrant's initial registration statement (File No. 333-65826) dated July 25, 2001.) (99)(c) Power of Attorney for Casey J. Sylla filed herewith 25 DIRECTORS AND OFFICERS OF THE DEPOSITOR NAME AND PRINCIPAL POSITION AND OFFICE WITH BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT Margaret G. Dyer Director Marla G. Friedman Director and Vice President John C. Lounds Director J. Kevin McCarthy Director Steven E. Shebik Director, Vice President and Chief Financial Officer Casey J. Sylla Director, President and Chief Executive Officer Michael J. Velotta Director, Vice President, General Counsel and Secretary Eric A. Simonson Senior Vice President and Chief Investment Officer Samuel H. Pilch Group Vice President and Controller Karen C. Gardner Vice President John R. Hunter Vice President Kevin R. Slawin Vice President J. Eric Smith Vice President James P. Zils Treasurer Joanne M. Derrig Assistant Vice President and Chief Privacy Officer Barry S. Paul Assistant Vice President and Assistant Treasurer Robert L. Park Assistant Vice President and Chief Compliance Officer Joseph P. Rath Assistant Vice President, Assistant General Counsel and Assistant Secretary Lisa J. Flanary Assistant Vice President Timothy N. Vander Pas Assistant Vice President William F. Emmons Assistant Secretary Susan L. Lees Assistant Secretary Paul N. Kierig Assistant Secretary Mary J. McGinn Assistant Secretary Patricia W. Wilson Assistant Treasurer Errol Cramer Appointed Actuary
The principal business address of Mr. Emmons is 2940 South 84th Street, Lincoln, Nebraska 68506. The principal business address of Mr. Slawin is 544 Lakeview Parkway, Vernon Hills, Illinois 60061. The principal address of the other foregoing officers and directors is 3100 Sanders Road, Northbrook, Illinois 60062. 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT Incorporated herein by reference to Form 10-K Annual Report, filed by The Allstate Corporation on March 28, 2003 (File No. 1-11840). 27. NUMBER OF CONTRACT OWNERS As of January 31, 2003, there were 40 non-qualified contracts and 14 qualified contracts. 28. INDEMNIFICATION The by-laws of both Glenbrook Life and Annuity Company (Depositor) and ALFS, Inc. (Distributor), provide for the indemnification of its directors, officers and controlling persons, against expenses, judgments, fines and amounts paid in settlement as incurred by such person, if such person acted properly. No indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of a duty to the Company, unless a court determines such person is entitled to such indemnity. Insofar as indemnification for liability arising out of the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than payment by the registrant of expenses incurred by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of is counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. 29. PRINCIPAL UNDERWRITER, ALFS, INC. (a) Registrant's principal underwriter also acts as principal underwriter for the following investment companies: Allstate Assurance Company Separate Account B Allstate Financial Advisors Separate Account I Allstate Life Insurance Company Separate Account A Allstate Life Variable Life Separate Account A Allstate Life of New York Separate Account A Allstate Life of New York Variable Life Separate Account A Charter National Variable Annuity Account Charter National Variable Account Glenbrook Life and Annuity Company Separate Account A Glenbrook Life and Annuity Company Variable Annuity Account Glenbrook Life and Annuity Variable Account Glenbrook Life Discover Variable Account A Glenbrook Life Variable Life Separate Account A Glenbrook Life Scudder Variable Account A Glenbrook Life AIM Variable Separate Account A Intramerica Variable Annuity Account Lincoln Benefit Life Variable Annuity Account Lincoln Benefit Life Variable Account (b) DIRECTORS AND OFFICERS OF THE UNDERWRITER, ALFS, Inc. Name and Principal Business Positions and Offices of Each Address of Each Such Person Such Person with Underwriter John R. Hunter Director, President and Chief Executive Officer Casey J. Sylla Director Michael J. Velotta Director and Secretary Marion Goll Vice President, Treasurer and Financial Operations Principal Brent H. Hamann Vice President Andrea J. Schur Vice President Lisa A. Burnell Assistant Vice President and Compliance Officer Joanne M. Derrig Assistant Vice President and Chief Privacy Officer Joseph P. Rath Assistant Vice President, Assistant General Counsel and Assistant Secretary William F. Emmons Assistant Secretary Susan L. Lees Assistant Secretary Barry S. Paul Assistant Treasurer James P. Zils Assistant Treasurer Mary Claire Sheehy Chief Operations Officer
The principal business address of Mr. Emmons is 2940 South 84th Street, Lincoln, Nebraska 68506. The principal address of the other foregoing officers and directors of ALFS, Inc. is 3100 Sanders Road, Northbrook, Illinois 60062. (c) Compensation of ALFS, Inc. None. 30. LOCATION OF ACCOUNTS AND RECORDS The Depositor, Glenbrook Life and Annuity Company, is located at 3100 Sanders Road, Northbrook, Illinois 60062. The Distributor, ALFS, Inc., is located at 3100 Sanders Road, Northbrook, Illinois 60062. Each company maintains those accounts and records required to be maintained pursuant to Section 31(a) of the Investment Company Act and the rules promulgated thereunder. 31. MANAGEMENT SERVICES None 32. UNDERTAKINGS The Registrant undertakes to file a post-effective amendment to the Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. Registrant furthermore agrees to include either, as part of any application to purchase a contract offered by the prospectus, a toll-free number that an applicant can call to request a Statement of Additional Information or a post card or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information. Finally, the Registrant agrees to deliver any Statement of Additional Information and any Financial Statements required to be made available under this Form N-4 promptly upon written or oral request. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE The Company represents that it is relying upon a November 28, 1988 Securities and Exchange Commission no-action letter issued to the American Council of Life Insurance ("ACLI") and that the provisions of paragraphs 1-4 of the no-action letter have been complied with. REPRESENTATION REGARDING CONTRACT EXPENSES Glenbrook Life and Annuity Company represents that the fees and charges deducted under the Contracts described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Glenbrook Life and Annuity Company under the Contracts. Glenbrook Life and Annuity Company bases its representation on its assessment of all of the facts and circumstances, including such relevant factors as: the nature and extent of such services, expenses and risks; the need for Glenbrook Life and Annuity Company to earn a profit; the degree to which the Contracts include innovative features; and the regulatory standards for exemptive relief under the Investment Company Act of 1940 used prior to October 1996, including the range of industry practice. This representation applies to all Contracts sold pursuant to this Registration Statement, including those sold on the terms specifically described in the prospectus(es) contained herein, or any variations therein, based on supplements, endorsements, or riders to any Contracts or prospectus(es), or otherwise. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Glenbrook Life Multi-Manager Variable Account, certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this amended Registration Statement and has caused this amended Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized all in the Township of Northfield, State of Illinois, on April 11, 2003. GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT (REGISTRANT) BY: GLENBROOK LIFE AND ANNUITY COMPANY (DEPOSITOR) By:/s/MICHAEL J. VELOTTA Michael J. Velotta Vice President, Secretary and General Counsel As required by the Securities Act of 1933, this amended Registration Statement has been signed below by the following Directors of Glenbrook Life and Annuity Company on April 11, 2003. */MARGARET G. DYER --------------------------- Director Margaret G. Dyer */MARLA G. FRIEDMAN Director and Vice President -------------------------------- Marla G. Friedman */JOHN C. LOUNDS Director -------------------------------- John C. Lounds */J. KEVIN MCCARTHY --------------------------------- Director J. Kevin McCarthy */SAMUEL H. PILCH Group Vice President and Controller ---------------------------------- (Principal Accounting Officer) Samuel H. Pilch */STEVEN E. SHEBIK Director, Vice President and Chief Financial Officer ---------------------------------- (Principal Financial Officer) Steven E. Shebik */CASEY J. SYLLA Director, President and Chief Executive Officer ------------------------- (Principal Executive Officer) Casey J. Sylla /s/MICHAEL J. VELOTTA Director, Vice President, General Counsel and --------------------------- Secretary Michael J. Velotta
*/ By Michael J. Velotta, pursuant to Power of Attorney, filed herewith or previously filed. EXHIBIT INDEX Exhibit Description (10)(a) Independent Auditors' Consent (10)(b) Consent of Foley & Lardner (13)(c) Performance Data Calculations (99)(c) Power of Attorney for Casey J. Sylla