-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SHc5co27Pv6zVZ4f6x/u1IdC8JWPvdhoon1SSJVBgXms+ZMNvsVL5GqbdSQC5Elc hEPxe5IHPFepLzxnNNqf5g== 0000930413-05-008434.txt : 20051223 0000930413-05-008434.hdr.sgml : 20051223 20051223145213 ACCESSION NUMBER: 0000930413-05-008434 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20051223 DATE AS OF CHANGE: 20051223 EFFECTIVENESS DATE: 20051230 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0001209404 IRS NUMBER: 000000000 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-101778 FILM NUMBER: 051285208 BUSINESS ADDRESS: STREET 1: THE TRAVELERS INSURANCE COMPANY STREET 2: ONE CITYPLACE CITY: HARTFORD STATE: CT ZIP: 06103 BUSINESS PHONE: 8603081000 MAIL ADDRESS: STREET 1: THE TRAVELERS INSURANCE COMPANY STREET 2: ONE CITYPLACE CITY: HARTFORD STATE: CT ZIP: 06103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0001209404 IRS NUMBER: 000000000 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21262 FILM NUMBER: 051285209 BUSINESS ADDRESS: STREET 1: THE TRAVELERS INSURANCE COMPANY STREET 2: ONE CITYPLACE CITY: HARTFORD STATE: CT ZIP: 06103 BUSINESS PHONE: 8603081000 MAIL ADDRESS: STREET 1: THE TRAVELERS INSURANCE COMPANY STREET 2: ONE CITYPLACE CITY: HARTFORD STATE: CT ZIP: 06103 485BPOS 1 c40213_485bpos.txt REGISTRATION STATEMENT NO. 333-101778 811-21262 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------- FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 POST-EFFECTIVE AMENDMENT NO. 12 AND REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 13 -------------- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES (Exact name of Registrant) THE TRAVELERS INSURANCE COMPANY (Name of Depositor) -------------- One Cityplace Hartford, Connecticut 06103-3415 (Address of Depositor's Principal Executive Offices) Depositor's Telephone Number, including area code: (860) 308-1000 MARIE C. SWIFT Metropolitan Life Insurance Company 501 Boylston Street Boston, MA 02116 (Name and Address of Agent for Service) -------------- Approximate Date of Proposed Public Offering: It is proposed that this filing will become effective (check appropriate box): |_| immediately upon filing pursuant to paragraph (b) of Rule 485. |X| on December 30, 2005 pursuant to paragraph (b) of Rule 485. |_| 60 days after filing pursuant to paragraph (a)(1) of Rule 485. |_| on ________________pursuant to paragraph (a)(1) of Rule 485. If appropriate, check the following box: |_| this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Being Registered: Individual Variable Annuity Contracts FILING NOTE The purpose of this Post-Effective Amendment No. 12 is to file the attached two Supplements: Supplement Dated December 30, 2005 to the Pioneer Annuistar Plus Annuity Prospectus Dated May 2, 2005. Supplement Dated December 30, 2005 to the Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005. The following documents are incorporated herein by reference: Pioneer Annuistar Plus Annuity Prospectus Dated May 2, 2005 filed with the Securities and Exchange Commission on April 21, 2005 on Form N-4 as Post-Effective Amendment No. 8 to the Registration Statement No. 333-101778. Supplement Dated July 15, 2005 to Variable Contract Prospectuses List Below (Pioneer Annuistar Plus Annuity), filed with the Securities and Exchange Commission on July 15, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Supplement Dated July 28, 2005 to the Pioneer Annuistar Plus Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on July 11, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Supplement Dated September 27, 2005 to the Pioneer Annuistar Plus Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on September 27, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005 filed with the Securities and Exchange Commission on April 21, 2005 on Form N-4 as Post-Effective Amendment No. 8 to the Registration Statement No. 333-101778. Supplement Dated July 15, 2005 to Variable Contract Prospectuses List Below (Scudder Advocate Rewards Annuity), filed with the Securities and Exchange Commission on July 15, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Supplement Dated July 18, 2005 to the Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on July 11, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Supplement Dated August 1, 2005 to the Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on July 28, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. Supplement Dated September 19, 2005 to the Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on September 19, 2005 on Form N-4 as Post-Effective Amendment No. 9 to the Registration Statement No. 333-101778. Supplement Dated September 27, 2005 to the Scudder Advocate Rewards Annuity Prospectus Dated May 2, 2005, filed with the Securities and Exchange Commission on September 27, 2005 pursuant to Rule 497(e) under the Securities Act of 1933 in connection with Registration Statement No. 333-101778. PART A SUPPLEMENT DATED DECEMBER 30, 2005 TO THE PIONEER ANNUISTAR PLUS ANNUITY PROSPECTUS DATED MAY 2, 2005 The following information supplements, and to the extent inconsistent therewith, replaces the information in the prospectus. Please retain this supplement and keep it with the prospectus for future reference. IN THE "SUMMARY" SECTION, UNDER THE SUBSECTION "WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT?", THE FOLLOWING PARAGRAPH IS ADDED: If you elect the Guaranteed Minimum Withdrawal Benefit for Life ("GMWB for Life") rider, a charge will be deducted daily from amounts in the Variable Funding Options. The charge depends on whether you purchase the Single Life Option or the Joint Life Option. The current charge, on an annual basis, is 0.75% for the Single Life Option and 0.90% for the Joint Life Option. The charge can increase but will never exceed 1.50%. IN THE "SUMMARY" SECTION, UNDER THE SUBSECTION "ARE THERE ANY ADDITIONAL FEATURES?", THE FOLLOWING PARAGRAPH IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" ) For an additional charge, we will guarantee a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your contract each year. The guarantee is based on Purchase Payments received within two years of your initial purchase. Depending on when you elect to take your first withdrawal, the maximum amount of your investment that you may receive each year is 5%, 6%, or 7%. Payments are guaranteed for your life when you reach age 59 1/2 if you purchase the benefit alone (the "Single Life Option"), or guaranteed for the life of both you and your spouse (the "Joint Life Option") when both you and your spouse reach age 65 if you purchase the benefit with your spouse. The base guarantee increases each year automatically on your anniversary if your Contract Value is greater than the base guarantee. The guarantee is subject to restrictions on withdrawals, and you are required to remain invested in a limited number of specified Variable Funding Options. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract, and once you purchase the GMWB for Life rider, you cannot cancel it. Guaranteed withdrawals are also available before the qualifying age, however these payments are not guaranteed for life. There is also a guaranteed lump sum feature available after ten years in lieu of guaranteed periodic payments. IN THE "FEE TABLE" SECTION, THE SUB-SECTION "ANNUAL SEPARATE ACCOUNT CHARGES", IS REPLACED WITH THE FOLLOWING: ANNUAL SEPARATE ACCOUNT CHARGES (AS A PERCENTAGE OF THE AVERAGE DAILY NET ASSETS OF THE SEPARATE ACCOUNT) We will assess a minimum mortality and expense risk charge ("M&E") of 1.40% and a maximum administrative expense charge of 0.15% on all contracts. In addition, for optional features, there is a 0.20% charge for E.S.P., a 0.50% charge for GMAB, a 0.40% charge for GMWB I, a 0.50% charge for GMWB II, a 0.25% charge for GMWB III, a 0.75% charge for GMWB for Life (Single Life Option), and a 0.90% charge for GMWB for Life (Joint Life Option). Below is a summary of all the maximum charges that may apply, depending on the death benefit and optional features you select:
STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT ------------------ ----------------- ----------------- Mortality and Expense Risk Charge.... 1.40% 1.55% 1.75% Administrative Expense Charge........ 0.15% 0.15% 0.15%
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STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT ------------------ ----------------- ----------------- TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH NO OPTIONAL FEATURES SELECTED............................. 1.55% 1.70% 1.90% Optional E.S.P. Charge............... 0.20% 0.20% 0.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. ONLY SELECTED.... 1.75% 1.90% 2.10% Optional GMAB Charge................. 0.50% 0.50% 0.50% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMAB ONLY SELECTED...... 2.05% 2.20% 2.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMAB SELECTED(5).......................... 2.25% 2.40% 2.60% Optional GMWB I Charge............... 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB II Charge.............. 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB III Charge............. 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB for Life (Single Life Option) Charge....................... 1.50%(6) 1.50%(6) 1.50%(6) Optional GMWB for Life (Joint Life Option) Charge....................... 1.50%(6) 1.50%(6) 1.50%(6) TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I ONLY SELECTED.... 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II ONLY SELECTED... 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB III ONLY SELECTED.. 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (SINGLE LIFE OPTION) ONLY SELECTED........... 3.05% 3.20% 3.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (JOINT LIFE OPTION) ONLY SELECTED........... 3.05% 3.20% 3.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB III SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (SINGLE LIFE OPTION) SELECTED... 3.25% 3.40% 3.60% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (JOINT LIFE OPTION) SELECTED.... 3.25% 3.40% 3.60%
- ------------------ (5) GMAB and GMWB cannot both be elected. (6) The current charges for the available GMWB riders are as follows: 2 --------------------------- ---------------------------- GMWB RIDER CURRENT CHARGE --------------------------- ---------------------------- GMWB I 0.40% --------------------------- ---------------------------- GMWB II 0.50% --------------------------- ---------------------------- GMWB III 0.25% --------------------------- ---------------------------- GMWB for Life (Single 0.75% Life Option) --------------------------- ---------------------------- GMWB for Life (Joint Life 0.90% Option) --------------------------- ---------------------------- IN THE "EXAMPLES" SECTION, THE EXAMPLES ARE DELETED AND REPLACED WITH THE FOLLOWING: EXAMPLE 1 -- This example assumes that you have elected the most expensive death benefit option, the E.S.P. optional death benefit and the Guaranteed Minimum Withdrawal Benefit for Life (assuming the maximum 1.50% charge applies).
- ----------------------------------------------------------------------------------------------------------- If Contract is NOT surrendered If Contract is surrendered at or annuitized at the end of the end of period shown: period shown: --------------------------------- --------------------------------- 1 3 5 10 1 3 5 10 FUNDING OPTION YEAR YEARS YEARS YEARS YEAR YEARS YEARS YEARS - ----------------------------------------------------------------------------------------------------------- Underlying Fund with Minimum Total Annual Operating Expenses 1138 1925 2653 4579 338 1205 2113 4579 Underlying Fund with Maximum Total Annual Operating Expenses 2493 5392 7544 10860 1693 4672 7004 10860
IN THE "CHARGES AND DEDUCTIONS" SECTION, THE FOLLOWING IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") CHARGE If you elect the GMWB for Life rider, a charge is deducted daily from amounts held in each Variable Funding Option. The current charge, on an annual basis, is 0.75% if you select the Single Life Option, or 0.90% if you select the Joint Life Option. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" ). The charge will never exceed 1.50%. You cannot cancel the rider, although the rider terminates under certain circumstances (see "Termination" below). IN THE SECTION ENTITLE "LIVING BENEFITS," THE FOLLOWING SECTION IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") SUMMARY OF BENEFITS For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit for Life, or "GMWB for Life". The GMWB for Life rider is designed to protect your investment from poor market performance. The GMWB for Life rider: o Guarantees a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your contract each year; o Can be purchased for you alone or with your spouse; o Can accommodate tax-qualified distributions from your contract; o Increases in value on each anniversary if your Contract Value increases through an automatic reset feature; o If your circumstances change before you reach the minimum age to begin lifetime income, the rider can provide an income until your guaranteed amount is recovered, as long as you do not withdraw more than a certain amount from your contract each year. 3 o If your circumstances change the rider offers the option to receive a lump sum after a period of years in lieu of the guarantee to take periodic payments. You must continue to meet several restrictions and conditions in order to receive the benefits of the GMWB for Life rider. Withdrawals that exceed the allowable annual maximum will more rapidly decrease the guarantees under the rider. You are also required to remain invested in a limited number of specified Variable Funding Options to be eligible for the guarantees. Only Purchase Payments that you make within two years of purchase are eligible for the guarantees. See below for details. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. In the future we may offer the ability for contract owners to add the rider after purchase. You may not elect the GMWB for Life rider if you have also elected the GMWB or GMAB rider offered under this Contract. The GMWB for Life rider many not be available in all states. You may not elect a GMWB for Life rider if you have a loan outstanding, and you may not take out a loan once you elect a GMWB for Life rider. Once you purchase the GMWB for Life rider, you cannot cancel it. In other written materials outside of this prospectus, we market the GMWB for Life rider using different names. These names are "Living Income Guarantee" and "Living Income Guarantee for 2". These names refer to the same GMWB for Life rider as described in this prospectus. SINGLE LIFE OPTION OR JOINT LIFE OPTION The GMWB for Life rider is designed for use by you alone (the "Single Life Option"), or you and your spouse (the "Joint Life Option"). You must select either the Single Life Option or the Joint Life Option at the time you elect the GMWB for Life rider. The Single Life Option is available to all Contract Owners. However, if you select the Single Life Option and your Contract is jointly owned, the age of the older joint owner will determine when you are eligible for lifetime benefits under the rider, and income is guaranteed only over the lifetime of the older joint owner. The Joint Life Option is only available if you name your spouse as the joint owner or sole beneficiary of your annuity contract. Under the Joint Life Option, income is guaranteed over the joint lifetime of both you and your spouse. Under the Joint Life Option, the age of the younger spouse determines when you are eligible for lifetime benefits under the rider. This means you and your spouse will have to wait until the younger of you reaches the minimum age to qualify for the lifetime benefit. REMAINING BENEFIT BASE ("RBB") The guarantees under the GMWB for Life rider are determined by applying an annual percentage to a base amount that we calculate called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment, not including any Purchase Payment Credits, if you elect GMWB for Life when you purchase your contract. If in the future we permit the rider to be added after the Contract is issued, then your initial RBB is equal to your Contract Value when you elect the rider, less any Purchase Payment Credits credited within the last 12 months. The RBB is not a lump sum guarantee, rather, it is used to determine the amount that we return to you through a series of payments that annually do not exceed a percentage of your RBB. Your RBB is subject to a maximum of $5,000,000 for all deferred variable annuities issued by us to you. LIFETIME WITHDRAWAL BENEFIT ("LWB") The annual percentage of your RBB that is available for withdrawal is called the "Lifetime Withdrawal Benefit" or "LWB". Each year you may take withdrawals that do not exceed your LWB. 4 The level of your initial LWB payment depends on whether your GMWB for Life rider was issued under the Single Life Option or the Joint Life Option, and the timing of your first withdrawal from your annuity contract. You are eligible to receive payments under the LWB after you attain a certain age as shown below. Under the Joint Life Option, the age of the younger spouse determines eligibility. Under the Single Life Option, if your Contract is jointly owned, the age of the older joint owner determines eligibility.
-------------------------------------------------------------- ---------------------------------- MINIMUM AGE TO BE ELIGIBLE TO RECEIVE LWB -------------------------------------------------------------- ---------------------------------- Single Life Option 59 1/2 years -------------------------------------------------------------- ---------------------------------- Joint Life Option 65 years -------------------------------------------------------------- ----------------------------------
Your initial LWB is calculated as a percentage of the RBB immediately before your first withdrawal:
-------------------------------------------------------------- ---------------------------------- SINGLE LIFE OPTION: LWB -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal before the 5th anniversary 5% of RBB after you purchase GMWB for Life: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 5th 6% of RBB anniversary, but before the 10th anniversary: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 10th 7% of RBB anniversary: -------------------------------------------------------------- ---------------------------------- JOINT LIFE OPTION: LWB -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal before the 8th anniversary 5% of RBB after you purchase GMWB for Life: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 8th 6% of RBB anniversary, but before the 15th anniversary: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 15th 7% of RBB anniversary: -------------------------------------------------------------- ----------------------------------
You should carefully choose when you take your first withdrawal from your Contract, because it will determine your LWB annual percentage which will not change for the life of your Contract. For example, if you take your first withdrawal before the 5th anniversary, your LWB will be 5% of RBB for the life of your Contract, and you will never qualify for a 6% or 7% of RBB. As long as your total annual withdrawals do not exceed your LWB amount, you may continue to take your LWB payments until death, even if the aggregate payments exceed your RBB. Under the Joint Life Option, payments cease upon the death of the last surviving spouse. Under the Single Life Option, payments cease upon your death, or the death of the older joint owner. You may adjust the amount and frequency of payments during the year. Each year you may take your LWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your LWB without affecting your guarantee. If you choose to receive only a part 5 of, or none of, your LWB in any given year, your LWB in any subsequent year will not be increased. In certain circumstances we may limit the frequency of LWB payments to annual, such as payments under our Managed Distribution Program, payments to a beneficiary after your death, or if your Contract Value reduces to zero (see below). ADDITIONAL PREMIUM Additional Purchase Payments made within two years after you purchase the GMWB for Life rider will increase your RBB, which will serve to increase your LWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment, not including any Purchase Payment Credits. Your new LWB is equal to the LWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original LWB as shown above. Additional Purchase Payments made more than two years after you purchase the GMWB for Life rider will not be included in your RBB, and will be excluded from the guarantees under your rider. WITHDRAWALS When you make a withdrawal, your LWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase of GMWB for Life (or "GMWB for Life Anniversary"), including the current withdrawal, does not exceed your LWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. However, if you make a withdrawal so that the total of all your withdrawals since your GMWB for Life Anniversary, including the current withdrawal, exceeds your LWB immediately prior to the current withdrawal, we will recalculate your RBB and LWB. To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a proportional "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal, minus any Purchase Payment Credits applied within 12 months of the withdrawal. To recalculate your LWB, we reduce your LWB by a partial withdrawal reduction, which is equal to 1) the LWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. These recalculations magnify the effect of a withdrawal when your Contract Value is less than your RBB, as shown in the example below. WITHDRAWAL EXAMPLES The following example is intended to illustrate the effect of withdrawals on your RBB and LWB. Assume your initial RBB is $100,000, your age is greater than 65, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE
- ---------------------- ----------------------------------------------- ------------------------------------------------- ASSUMES 15% GAIN ON INVESTMENT ASSUMES 15% LOSS ON INVESTMENT - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- CONTRACT CONTRACT VALUE RBB LWB (5%) VALUE RBB LWB (5%) - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- VALUES AS OF - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- IMMEDIATELY PRIOR TO WITHDRAWAL AND AFTER THE FIRST GMWB ANNIVERSARY $115,000 $115,000 $5,750 $85,000 $100,000 $5,000 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- -----------------
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- ---------------------- ----------------------------------------------- ------------------------------------------------- ASSUMES 15% GAIN ON INVESTMENT ASSUMES 15% LOSS ON INVESTMENT - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- CONTRACT CONTRACT VALUE RBB LWB (5%) VALUE RBB LWB (5%) - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- PARTIAL WITHDRAWAL N/A (115,000 (5,750 X (1- N/A (100,000 (5,000 X (1- REDUCTION X 105,000/ X 88,235/100,000)= 10,000/115,000)= 115,000)= 10,000/85,000)= $588 10,000 500 $11,765 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- GREATER OF PWR OR $10,000 $11,765 THE DOLLAR AMOUNT OF THE WITHDRAWAL (10,000=10,000) (11,765>10,000) - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,765 $588 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $105,000 $105,000 $5,250 $75,000 $88,235 $4,412 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- -----------------
RESET On each anniversary after you purchase the GMWB for Life rider, we will automatically reset your RBB, under our Automatic RBB Reset Program, to an amount equal to 100% of the then Contract Value. We will not automatically reset your RBB if the Contract Value on your anniversary is less than your current RBB, or, if you (or you and your spouse) are over age 85. You may choose to opt out of the Automatic RBB Reset Program, if a reset of your RBB would cause the charge for your rider to increase. This can happen since the rate you pay for the rider will be changed to the rate in effect at the time of reset and that may be higher than the rate before the reset. We will send you advance notice if the charge for your rider would increase upon reset in order to give you the opportunity to opt out of the Automatic RBB Reset Program. In order to opt out of the Automatic RBB Reset Program, you must notify us in writing which we must receive by the 7th calendar day prior to the scheduled reset. Your rider will no longer be reset for the life of the rider unless you subsequently elect in writing to opt back into the Automatic RBB Reset Program. Your opt back in election will go into effect upon the next GMWB for Life Anniversary following the receipt of your request. Upon reset, the LWB will be recalculated as the greater of the a) LWB prior to the reset, or b) a percentage of the Reset RBB value. The percentage will equal the percentage of the RBB (e.g. 5%) used in determining the initial LWB. GUARANTEED PRINCIPAL OPTION If your circumstances change and you no longer want the lifetime features of the GMWB for Life rider, you may wish to opt out and receive an adjustment to your Contract Value. In this case, once you have held the rider for ten (10) years or more you will have the option each year to elect the Guaranteed Principal Option. Each year you will have a 30-day window period during which you may elect the option. You may only elect the option once, as your GMWB for Life rider will terminate when you exercise the option. The Guaranteed Principal Option will be paid to you as a positive adjustment to your Contract Value. The adjustment is equal to (a) minus (b): (a) Purchase Payments credited within 120 days after you purchase the GMWB for Life rider, reduced by a "Percentage Reduction in the Contract Value" attributable to any partial withdrawals taken. We compute the "Percentage Reduction in Contract Value" attributable to a partial withdrawal by dividing the dollar amount of the withdrawal, plus any applicable withdrawal charges, by the Contract Value immediately preceding such withdrawal. We apply the Percentage Reduction in the Contract Value as a factor equal to 1 minus the percentage reduction. (b) Your Contract Value on the GMWB Anniversary immediately preceding exercise of the Guaranteed Principal Option. 7 For example, assume you make a single Purchase Payment of $100,000 and elect the GMWB for Life rider. Also assume that you make no withdrawals, and that ten years later your Contract Value has declined to $80,000. If you elect to receive the Guaranteed Principal Option, we will apply $20,000 to your Contract Value to restore it to $100,000. To exercise the Guaranteed Principal Option you must notify us in writing within 30 days following any anniversary of your purchase of the GMWB for Life rider, on or after the tenth (10th) anniversary of your purchase of the rider. We will adjust your Contract Value at the end of the 30-day window period. The adjustment will be added to each Variable Funding Option in the ratio that the Contract Value in such Variable Funding Option bears to the total Contract Value in all Variable Funding Options. The adjustment will never be less than zero. If you exercise the Guaranteed Principal Option, the GMWB for Life rider will terminate on the date the adjustment is added to your Contract Value. REQUIRED ALLOCATION OF YOUR CONTRACT VALUE AND PREMIUM PAYMENTS If you elect the GMWB for Life rider, you will be required to invest in a limited number of specific Variable Funding Options, and you will be foreclosed from investing in all the other Variable Funding Options that would otherwise be available to you. In addition, you may not allocate any portion of your Contract Value or Premium Payments to the Fixed Account. You will be required to allocate 100% of your Contract Value or Purchase Payments to one or more of the following Variable Funding Options. Some of these Variable Funding Options invest in mutual funds that invest in other mutual funds, also known as "funds of funds." Please see the section in this prospectus entitled "Variable Funding Options" for a description of the investment objectives of these Variable Funding Options. PERMITTED VARIABLE FUNDING OPTIONS Money Market Portfolio PIONEER VARIABLE CONTRACTS TRUST Pioneer Ibbotson Growth Allocation VCT Portfolio -- Class II Shares Pioneer Ibbotson Moderate Allocation VCT Portfolio -- Class II Shares Pioneer America Income VCT Portfolio -- Class II Shares Pioneer Global High Yield VCT Portfolio -- Class II Shares Pioneer Strategic Income VCT Portfolio -- Class II Shares Pioneer High Yield VCT Portfolio -- Class II Shares Pioneer Balanced VCT Portfolio -- Class II Shares SALOMON BROTHERS VARIABLE SERIES FUNDS INC. Total Return Fund -- Class II We will reject any request by you to transfer Contract Value or allocate Purchase Payments to a Variable Funding Option other than the permitted Variable Funding Options listed above. You will be required to re-submit your request to comply with the above restrictions. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it violated the above restrictions. We may add or remove Variable Funding Options for eligibility for new investments from the list of permitted Variable Funding Options. GMWB FOR LIFE CHARGE The charge for your GMWB for Life rider depends on whether you purchase the Single Life Option or the Joint Life Option. The charge is deducted daily from amounts held in 8 each Variable Funding Option. The current charge, on an annual basis, is shown below. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" above). The charge will never exceed 1.50%. ------------------------------------------------ ----------------------------- CURRENT CHARGE ------------------------------------------------ ----------------------------- Single Life Option 0.75% ------------------------------------------------ ----------------------------- Joint Life Option 0.90% ------------------------------------------------ ----------------------------- ANNUAL WITHDRAWAL BENEFIT ("AWB") If your circumstances change, you may wish to take guaranteed withdrawals even though you have not yet reached the minimum age to be eligible for lifetime payments under LWB. In this case, you can take an "Annual Withdrawal Benefit" or "AWB" which allows you to withdraw an amount each year until your RBB is depleted. AWB payments are not guaranteed for life. The level of your AWB is determined in the same manner as the level of your LWB as described in the above section entitled "Lifetime Withdrawal Benefit ("LWB")", except that there is no minimum age to be eligible to receive AWB payments. Additional Premium Payments affect your AWB in the same manner as they do the LWB as described in the "Additional Premium Payments" section above. The reset of your RBB will affect your AWB in the same manner as it affects the LWB as described in the "Reset" section above. Withdrawals affect your AWB in the same manner as your LWB as described in the "Withdrawals" section above, with the following exception. If you begin taking AWB withdrawals before you reach the minimum age to qualify for payments under LWB, when you reach the minimum age any withdrawals in excess of your LWB amount will subject your LWB and RBB to a partial withdrawal reduction, even if your withdrawal does not exceed your AWB. This could serve to decrease the amount of your future monthly payments under LWB, and the length of the time period during which you may continue to take payments under AWB. SHOULD I TAKE WITHDRAWALS UNDER LWB OR AWB? The GMWB for Life rider works best, and is designed, for the investor who can wait until the minimum age is attained to qualify for LWB payments. If you take your first withdrawal after you have reached the minimum age to qualify for LWB payments, payments under AWB or LWB are equal and the same. However, if you take your first withdrawal before you have reached the minimum age to qualify for LWB payments, the AWB or LWB payments available to you when you reach the minimum age may not be equal. AWB is designed for the investor who has undergone a change in circumstances and wants to take withdrawals before reaching the minimum age to qualify for LWB payments. If you choose to take AWB payments before you qualify for LWB payments, you should consider that the charges for the GMWB for Life rider are designed to support LWB payments for life, and that you may be paying a higher charge without receiving the full benefit. IF YOU CONTINUE TO MAKE WITHDRAWALS IN EXCESS OF THE LWB ONCE THE MINIMUM AGE TO QUALIFY FOR LWB HAS BEEN REACHED, YOU MAY EVENTUALLY LOSE ANY BENEFIT UNDER LWB. 9 Whether you choose to access your money using the LWB, AWB, or Guaranteed Principal Option depends on your individual financial circumstances and the performance of your annuity contract. You should consult with your financial adviser to determine which method is best for you. TAX-QUALIFIED DISTRIBUTION PROGRAMS Subject to certain limitations and restrictions, your LWB and AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, but will not affect the LWB or AWB. The following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: (1) distributions relating to this Contract intended to satisfy the required minimum distribution rules under Internal Revenue Code of 1986, as amended, ("Code"), Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to a qualified retirement plan (Code Section 401), a tax-sheltered annuity (Code Section 403(b)), an individual retirement annuity (Code Section 408(b)), or an eligible deferred compensation plan (Code Section 457(b)), which required minimum distribution is calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate, or as otherwise required to be calculated under the Code and the regulations thereunder; (2) distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity Contract provided under Code Section 72(s)(1) for certain amounts payable over the life, or over a period no longer than the remaining life expectancy, of a designated beneficiary relating to this Contract; (3) distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the participant or the joint lives (or joint life expectancies) of such participant and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract; or (4) distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity Contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of such taxpayer and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004 -9, Notice 2004-15, page 526, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method 10 described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract. You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB for Life rider, however your RBB, LWB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select a frequency of payments. You may change the frequency of your payments only once every two years after your GMWB for Life Anniversary, and you may only make the change during the 30-day period after your GMWB for Life Anniversary. At the time you purchase GMWB for Life, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB for Life Anniversary. You are advised to take your required distributions prior to purchasing GMWB for Life in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB for Life, you will be limited to taking annual distributions for the first two contract years after which time you can choose an alternate mode of distribution. ANY WITHDRAWALS OUTSIDE OF THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax-Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB for Life (a "GMWB for Life Year"). If during any GMWB for Life Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals under your GMWB for Life rider, however for the remainder of the GMWB for Life Year your RBB, LWB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. DISTRIBUTIONS UNDER THE TAX-QUALIFIED DISTRIBUTION PROGRAM WILL BE DETERMINED AS IF YOUR CONTRACT UNDER WHICH YOUR GMWB FOR LIFE RIDER WAS ISSUED WERE THE ONLY CONTRACT SUBJECT TO THE ABOVE TAX RULES. TERMINATION Once you purchase the GMWB for Life rider, you cannot cancel it. However, the rider will automatically terminate when: o you make a full withdrawal of your Contract Value; o you apply all of your Contract Value to an Annuity Option; o the Contract Owner dies and a death benefit under your Contract becomes payable, unless the Contract is continued by the beneficiary; o the Annuitant dies and the Annuitant is not the person whose life is used to determine guaranteed payments; o you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option; o you opt to take the Guaranteed Principal Option; or o you terminate your annuity contract. Charges for the rider cease upon termination. OTHER INFORMATION You should also consider the following before you purchase the GMWB for Life rider: 11 o The charge for the GMWB for Life rider continues for the life of the rider, even if you never need nor exercise the guarantees under the rider. o Withdrawals that are greater than your LWB or AWB will erode your guarantee by serving to more rapidly deplete your RBB. o The GMWB for Life rider is not transferable; if you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option, the rider terminates automatically. o If you only plan to take AWB, or take the Guaranteed Principal Option, you should consider the higher cost of the GMWB for Life rider which is designed to support payments for life under LWB. o If you continue to take AWB once eligible for LWB, you may eventually lose any benefit under LWB. EFFECT ON THE DEATH BENEFIT The GMWB for Life rider terminates when a death benefit under your Contract becomes payable, except in certain circumstances when the beneficiary may continue the Contract along with the GMWB for Life rider (see "Contract Continuation by Beneficiary" and "Contract Value Reduces to Zero" below). However, if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described in the "Death Benefit" section, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the rider is added to your Contract. If the Annuitant dies before the Contract Owner(s), then the GMWB for Life rider will terminate and the beneficiary cannot continue the rider. Under the Joint Life Option, if the spousal beneficiary predeceases the Contract Owner, the rider continues and no death benefit is paid out; the Contract Owner may then name a new beneficiary for the purposes of the death benefit provisions under the Contract, but not for purposes of the GMWB for Life rider. Notwithstanding anything in the GMWB for Life rider to the contrary: (a) in order to comply with section 72(s) of the Code, if the GMWB for Life rider is purchased with respect to a non-qualified annuity contract, any death benefit paid out under the terms of the GMWB for Life rider to a non-spousal Beneficiary upon the death of the owner (or to a payee other than the spouse of the Annuitant on the death of the Annuitant, where the Contract is owned by a non-natural person) (including payments made under the "Contract Continuation by the Beneficiary" provision, "Contract Value Reset to Zero" provision, and any other payments of the AWB and RBB otherwise made after a death) will be paid out in non-increasing annual installments over a period no longer than the remaining single life expectancy of the Beneficiary under the appropriate IRS life expectancy table under Code Section 72 and the regulation thereunder or as otherwise provided under the tax law for non-qualified annuities and under Code Section 72(s). Such payments must begin within 12 months of the date of death in all cases. (b) Where the Beneficiary or other payee under paragraph (a) is not a natural person, such period may not extend beyond the fifth anniversary of the date of the death. 12 (c) If the GMWB for Life rider is issued under a Qualified Contract and the death occurs on or after the Required Beginning Date of distributions to the participant under Code Section 401(a)(9), the period for the payments described in paragraph (a) above may not exceed the longer of: (i) the Beneficiary's or other payee's remaining life expectancy or (ii) the deceased Annuitant's remaining life expectancy in the year of his or her death, reduced by one for each calendar year thereafter. (d) Where under other sections of the GMWB for Life rider, any payment described in this section ("Effect on Death Benefits") is payable over a shorter period of time, required to begin at an earlier date, or would otherwise be paid more rapidly than under this section ("Effect on Death Benefit"), then such payment will be made under the terms of such other provision. If annual payments must exceed the AWB in order to comply with these requirements, then these payments will not result in a Partial Withdrawal Reduction to the RBB and AWB as described in the RBB and AWB sections of the GMWB for Life rider. Each withdrawal will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. CONTRACT CONTINUATION BY THE BENEFICIARY Under the Joint Life Option, if the spousal beneficiary elects to continue the Contract instead of receiving the death benefit, the GMWB for Life rider will also continue for the benefit of the spouse. Upon the death of the spouse, the LWB will terminate. However, if there are any remaining AWB payments, such payments may be continued by a surviving beneficiary instead of receiving a death benefit. In such case payments will be made annually on the next rider anniversary, no further resets will be made of the RBB, and the RBB will be reduced by the amount of each payment. Upon the death of such beneficiary, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. Under the Single Life Option, the LWB terminates when a death benefit becomes payable under the Contract, regardless of whether the Contract is continued by a beneficiary. If a non-spousal beneficiary continues the Contract, even under the Joint Life Option, the LWB terminates. However, if there are any remaining AWB payments, such payments may also be continued by a surviving beneficiary as described in the preceding paragraph. Payments made under the Continuation by the Beneficiary provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner (or upon the death of the Annuitant where the owner is not a natural person), the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. For riders issued under a Qualified Contract, the payments under the Continuation by the Beneficiary provision of the GMWB for Life rider must be paid out at regular intervals in non-increasing annual payments made over a period no longer than that permitted under Code Section 401(a)(9) and the regulations thereunder. Payments to the Beneficiary or to the owner's estate on the death of the owner, or payments to the Beneficiary's estate (or to the successor beneficiary) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. CONTRACT VALUE REDUCES TO ZERO If your Contract Value reduces to zero for reasons other than you making 1) a withdrawal that exceeds your AWB or LWB or 2) a full withdrawal of your Contract Value, and the minimum age has already been reached to be eligible to receive LWB payments, then we will automatically begin paying you annual payments equal to the LWB as long as you (or you or 13 your spouse under the Joint Life Option) are alive unless you elect to receive annual payments equal to the AWB as set forth below. Payments will be made once a year on each rider effective date anniversary starting with the next anniversary. Each payment will reduce the RBB by the amount of the payment. Alternatively, you have the option to elect in writing to instead receive annual payments equal to the current AWB, as of the date your written election is received in good order at our office, until the RBB is depleted. Upon such election, we will begin paying you the AWB starting on the next rider effective date anniversary following the date your written election is received in good order in our office. If the minimum age to be eligible for LWB payments has not yet been reached, and the RBB is greater than zero, we will automatically begin paying you annual payments equal to the AWB until the RBB is depleted. All other rights under your Contract cease, we will no longer accept subsequent Purchase Payments and no future resets will be allowed. All other optional endorsements are terminated without value. Upon your death (or you or your spouse's death under the Joint Life Option), your Beneficiary(s) will receive the following: 1. Under the Single Life Option, the LWB will be set to $0.00 and the beneficiary(s) will receive annual payments equal to the current AWB until the RBB is depleted. No other death benefit or Enhanced Stepped-Up Provision (if any) will be paid if the RBB is already equal to zero upon the owner's death. The death benefit under the Contract is cancelled. Upon the beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 2. Under the Joint Life Option, the terms of the rider continue and we will continue to your spouse annual payments equal to either the LWB or AWB according to your election prior to your death and the terms described above. The death benefit under the Contract is cancelled. Upon the spouse's death, the LWB will be set to $0.00 and the spousal beneficiary's estate or Beneficiary, as applicable, will receive annual payments equal to the current AWB until the RBB is depleted. Upon that beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates 3. Payments made under the "Contract value reduces to Zero" provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner, the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. 4. For riders issued under a Contract that is issued to an Individual Retirement Account under Code Section 408(a), an Individual Retirement Annuity under Code Section 408(b), a Roth IRA annuity under Code Section 408A, a SIMPLE IRA annuity under Code Section 408(p) or any other annuity under an employer's retirement plan that is subject to the required minimum distribution rules under Code Section 401(a)(9), including the after-death distribution rules under Code Section 401(a)(9)(B) ("Qualified Contracts"), The payments under this provision of the GMWB for Life rider will be adjusted as required to be paid out in a non-increasing annual payments over a period no longer than permitted under Code Section 401(a)(9). Payments to the Beneficiary (or to the owner's estate on the death of the owner), or payments to the successor beneficiary (or to the Beneficiary's estate) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. 14 In the section entitled "Death Benefit," the following paragraph is added as the last paragraph: If you purchased the GMWB for Life rider and if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described above, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the GMWB for Life rider is added to your Contract. L-24585 January, 2006 15 SUPPLEMENT DATED DECEMBER 30, 2005 TO THE SCUDDER ADVOCATE REWARDS ANNUITY PROSPECTUS DATED MAY 2, 2005 The following information supplements, and to the extent inconsistent therewith, replaces the information in the prospectus. Please retain this supplement and keep it with the prospectus for future reference. IN THE "SUMMARY" SECTION, UNDER THE SUBSECTION "WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT?", THE FOLLOWING PARAGRAPH IS ADDED: If you elect the Guaranteed Minimum Withdrawal Benefit for Life ("GMWB for Life") rider, a charge will be deducted daily from amounts in the Variable Funding Options. The charge depends on whether you purchase the Single Life Option or the Joint Life Option. The current charge, on an annual basis, is 0.75% for the Single Life Option and 0.90% for the Joint Life Option. The charge can increase but will never exceed 1.50%. IN THE "SUMMARY" SECTION, UNDER THE SUBSECTION "ARE THERE ANY ADDITIONAL FEATURES?", THE FOLLOWING PARAGRAPH IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" ) For an additional charge, we will guarantee a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your contract each year. The guarantee is based on Purchase Payments received within two years of your initial purchase. Depending on when you elect to take your first withdrawal, the maximum amount of your investment that you may receive each year is 5%, 6%, or 7%. Payments are guaranteed for your life when you reach age 59 1/2 if you purchase the benefit alone (the "Single Life Option"), or guaranteed for the life of both you and your spouse (the "Joint Life Option") when both you and your spouse reach age 65 if you purchase the benefit with your spouse. The base guarantee increases each year automatically on your anniversary if your Contract Value is greater than the base guarantee. The guarantee is subject to restrictions on withdrawals, and you are required to remain invested in a limited number of specified Variable Funding Options. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract, and once you purchase the GMWB for Life rider, you cannot cancel it. Guaranteed withdrawals are also available before the qualifying age, however these payments are not guaranteed for life. There is also a guaranteed lump sum feature available after ten years in lieu of guaranteed periodic payments. IN THE "FEE TABLE" SECTION, THE SUB-SECTION "ANNUAL SEPARATE ACCOUNT CHARGES", IS REPLACED WITH THE FOLLOWING: ANNUAL SEPARATE ACCOUNT CHARGES: (AS A PERCENTAGE OF THE AVERAGE DAILY NET ASSETS OF THE SEPARATE ACCOUNT) We will assess a minimum mortality and expense risk charge ("M&E") of 1.40% and a maximum administrative expense charge of 0.15% on all contracts. In addition, for optional features there is a 0.20% charge for E.S.P., a 0.40% charge for GMAB, a 0.40% charge for GMWB I, a 0.55% charge for GMWB I Plus, a 0.50% charge for GMWB II, a 0.65% charge for GMWB II Plus, a 0.25% charge for GMWB III, a 0.75% charge for GMWB for Life (Single Life Option), and a 0.90% charge for GMWB for Life (Joint Life Option). Below is a summary of all the maximum charges that may apply, depending on the death benefit and optional features you select:
STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT ------------------ ----------------- ----------------- Mortality and Expense Risk Charge.... 1.40% 1.55% 1.75% Administrative Expense Charge........ 0.15% 0.15% 0.15%
1
STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT ------------------ ----------------- ----------------- TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH NO OPTIONAL FEATURES SELECTED............................. 1.55% 1.70% 1.90% Optional E.S.P. Charge............... 0.20% 0.20% 0.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. ONLY SELECTED.... 1.75% 1.90% 2.10% Optional GMAB Charge................. 0.40% 0.40% 0.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMAB ONLY SELECTED...... 1.95% 2.10% 2.30% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMAB SELECTED(5).......................... 2.15% 2.30% 2.50% Optional GMWB I Charge............... 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB I Plus Charge.......... 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB II Charge.............. 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB II Plus Charge......... 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB III Charge............. 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB for Life (Single Life Option) Charge....................... 1.50%(6) 1.50%(6) 1.50%(6) Optional GMWB for Life (Joint Life Option) Charge....................... 1.50%(6) 1.50%(6) 1.50%(6) TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I ONLY SELECTED.... 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I PLUS ONLY SELECTED............................. 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II ONLY SELECTED... 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II PLUS ONLY SELECTED............................. 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB III ONLY SELECTED.. 2.55% 2.70% 2.90% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (SINGLE LIFE OPTION) ONLY SELECTED........... 3.05% 3.20% 3.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (JOINT LIFE OPTION) ONLY SELECTED........... 3.05% 3.20% 3.40% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I PLUS SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II PLUS SELECTED............................. 2.75% 2.90% 3.10%
2
STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT ------------------ ----------------- ----------------- TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB III SELECTED............................. 2.75% 2.90% 3.10% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (SINGLE LIFE OPTION) SELECTED... 3.25% 3.40% 3.60% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (JOINT LIFE OPTION) SELECTED.... 3.25% 3.40% 3.60%
- ----------------- (5) GMAB and GMWB cannot both be elected. (6) The current charges for the available GMWB riders are as follows: --------------------------- ---------------------------- GMWB RIDER CURRENT CHARGE --------------------------- ---------------------------- GMWB I 0.40% --------------------------- ---------------------------- GMWB I Plus 0.55% --------------------------- ---------------------------- GMWB II 0.50% --------------------------- ---------------------------- GMWB II Plus 0.65% --------------------------- ---------------------------- GMWB III 0.25% --------------------------- ---------------------------- GMWB for Life (Single 0.75% Life Option) --------------------------- ---------------------------- GMWB for Life (Joint Life 0.90% Option) --------------------------- ---------------------------- IN THE "EXAMPLES" SECTION, THE EXAMPLES ARE DELETED AND REPLACED WITH THE FOLLOWING: EXAMPLE 1 -- This example assumes that you have elected the most expensive death benefit option, the E.S.P. optional death benefit and the Guaranteed Minimum Withdrawal Benefit for Life (assuming the maximum 1.50% charge applies).
- ----------------------------------------------------------------------------------------------------------- If Contract is NOT surrendered If Contract is surrendered at or annuitized at the end of the end of period shown: period shown: --------------------------------- --------------------------------- 1 3 5 10 1 3 5 10 FUNDING OPTION YEAR YEARS YEARS YEARS YEAR YEARS YEARS YEARS - ----------------------------------------------------------------------------------------------------------- Underlying Fund with Minimum Total Annual Operating Expenses 1161 1992 2763 4783 361 1272 2223 4783 Underlying Fund with Maximum Total Annual Operating Expenses 1282 2344 3326 5784 482 1624 2786 5784
IN THE "CHARGES AND DEDUCTIONS" SECTION, THE FOLLOWING IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") CHARGE If you elect the GMWB for Life rider, a charge is deducted daily from amounts held in each Variable Funding Option. The current charge, on an annual basis, is 0.75% if you select the Single Life Option, or 0.90% if you select the Joint Life Option. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" ). The charge will never exceed 1.50%. You cannot cancel the rider, although the rider terminates under certain circumstances (see "Termination" below). 3 IN THE SECTION ENTITLE "LIVING BENEFITS," THE FOLLOWING SECTION IS ADDED: GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") SUMMARY OF BENEFITS For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit for Life, or "GMWB for Life". The GMWB for Life rider is designed to protect your investment from poor market performance. The GMWB for Life rider: o Guarantees a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your contract each year; o Can be purchased for you alone or with your spouse; o Can accommodate tax-qualified distributions from your contract; o Increases in value on each anniversary if your Contract Value increases through an automatic reset feature; o If your circumstances change before you reach the minimum age to begin lifetime income, the rider can provide an income until your guaranteed amount is recovered, as long as you do not withdraw more than a certain amount from your contract each year. o If your circumstances change the rider offers the option to receive a lump sum after a period of years in lieu of the guarantee to take periodic payments. You must continue to meet several restrictions and conditions in order to receive the benefits of the GMWB for Life rider. Withdrawals that exceed the allowable annual maximum will more rapidly decrease the guarantees under the rider. You are also required to remain invested in a limited number of specified Variable Funding Options to be eligible for the guarantees. Only Purchase Payments that you make within two years of purchase are eligible for the guarantees. See below for details. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. In the future we may offer the ability for contract owners to add the rider after purchase. You may not elect the GMWB for Life rider if you have also elected the GMWB or GMAB rider offered under this Contract. The GMWB for Life rider many not be available in all states. You may not elect a GMWB for Life rider if you have a loan outstanding, and you may not take out a loan once you elect a GMWB for Life rider. Once you purchase the GMWB for Life rider, you cannot cancel it. In other written materials outside of this prospectus, we market the GMWB for Life rider using different names. These names are "Living Income Guarantee" and "Living Income Guarantee for 2". These names refer to the same GMWB for Life rider as described in this prospectus. SINGLE LIFE OPTION OR JOINT LIFE OPTION The GMWB for Life rider is designed for use by you alone (the "Single Life Option"), or you and your spouse (the "Joint Life Option"). You must select either the Single Life Option or the Joint Life Option at the time you elect the GMWB for Life rider. The Single Life Option is available to all Contract Owners. However, if you select the Single Life Option and your Contract is jointly owned, the age of the older joint owner will determine when you are eligible for lifetime benefits under the rider, and income is guaranteed only over the lifetime of the older joint owner. The Joint Life Option is only available if you name your spouse as the joint owner or sole beneficiary of your annuity contract. Under the Joint Life Option, income is guaranteed over the joint lifetime of both you and your spouse. Under the Joint Life Option, the age of the younger spouse determines 4 when you are eligible for lifetime benefits under the rider. This means you and your spouse will have to wait until the younger of you reaches the minimum age to qualify for the lifetime benefit. REMAINING BENEFIT BASE ("RBB") The guarantees under the GMWB for Life rider are determined by applying an annual percentage to a base amount that we calculate called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment, not including any Purchase Payment Credits, if you elect GMWB for Life when you purchase your contract. If in the future we permit the rider to be added after the Contract is issued, then your initial RBB is equal to your Contract Value when you elect the rider, less any Purchase Payment Credits credited within the last 12 months. The RBB is not a lump sum guarantee, rather, it is used to determine the amount that we return to you through a series of payments that annually do not exceed a percentage of your RBB. Your RBB is subject to a maximum of $5,000,000 for all deferred variable annuities issued by us to you. LIFETIME WITHDRAWAL BENEFIT ("LWB") The annual percentage of your RBB that is available for withdrawal is called the "Lifetime Withdrawal Benefit" or "LWB". Each year you may take withdrawals that do not exceed your LWB. The level of your initial LWB payment depends on whether your GMWB for Life rider was issued under the Single Life Option or the Joint Life Option, and the timing of your first withdrawal from your annuity contract. You are eligible to receive payments under the LWB after you attain a certain age as shown below. Under the Joint Life Option, the age of the younger spouse determines eligibility. Under the Single Life Option, if your Contract is jointly owned, the age of the older joint owner determines eligibility.
-------------------------------------------------------------- ---------------------------------- MINIMUM AGE TO BE ELIGIBLE TO RECEIVE LWB -------------------------------------------------------------- ---------------------------------- Single Life Option 59 1/2 years -------------------------------------------------------------- ---------------------------------- Joint Life Option 65 years -------------------------------------------------------------- ----------------------------------
Your initial LWB is calculated as a percentage of the RBB immediately before your first withdrawal:
-------------------------------------------------------------- ---------------------------------- SINGLE LIFE OPTION: LWB -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal before the 5th anniversary 5% of RBB after you purchase GMWB for Life: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 5th 6% of RBB anniversary, but before the 10th anniversary: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 10th 7% of RBB anniversary: -------------------------------------------------------------- ---------------------------------- JOINT LIFE OPTION: LWB -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal before the 8th anniversary 5% of RBB after you purchase GMWB for Life: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 8th 6% of RBB anniversary, but before the 15th anniversary: -------------------------------------------------------------- ---------------------------------- If you make your first withdrawal on or after the 15th 7% of RBB anniversary: -------------------------------------------------------------- ----------------------------------
5 You should carefully choose when you take your first withdrawal from your Contract, because it will determine your LWB annual percentage which will not change for the life of your Contract. For example, if you take your first withdrawal before the 5th anniversary, your LWB will be 5% of RBB for the life of your Contract, and you will never qualify for a 6% or 7% of RBB. As long as your total annual withdrawals do not exceed your LWB amount, you may continue to take your LWB payments until death, even if the aggregate payments exceed your RBB. Under the Joint Life Option, payments cease upon the death of the last surviving spouse. Under the Single Life Option, payments cease upon your death, or the death of the older joint owner. You may adjust the amount and frequency of payments during the year. Each year you may take your LWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your LWB without affecting your guarantee. If you choose to receive only a part of, or none of, your LWB in any given year, your LWB in any subsequent year will not be increased. In certain circumstances we may limit the frequency of LWB payments to annual, such as payments under our Managed Distribution Program, payments to a beneficiary after your death, or if your Contract Value reduces to zero (see below). ADDITIONAL PREMIUM Additional Purchase Payments made within two years after you purchase the GMWB for Life rider will increase your RBB, which will serve to increase your LWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment, not including any Purchase Payment Credits. Your new LWB is equal to the LWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original LWB as shown above. Additional Purchase Payments made more than two years after you purchase the GMWB for Life rider will not be included in your RBB, and will be excluded from the guarantees under your rider. WITHDRAWALS When you make a withdrawal, your LWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase of GMWB for Life (or "GMWB for Life Anniversary"), including the current withdrawal, does not exceed your LWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. However, if you make a withdrawal so that the total of all your withdrawals since your GMWB for Life Anniversary, including the current withdrawal, exceeds your LWB immediately prior to the current withdrawal, we will recalculate your RBB and LWB. To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a proportional "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal, minus any Purchase Payment Credits applied within 12 months of the withdrawal. 6 To recalculate your LWB, we reduce your LWB by a partial withdrawal reduction, which is equal to 1) the LWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. These recalculations magnify the effect of a withdrawal when your Contract Value is less than your RBB, as shown in the example below. WITHDRAWAL EXAMPLES The following example is intended to illustrate the effect of withdrawals on your RBB and LWB. Assume your initial RBB is $100,000, your age is greater than 65, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE
- ---------------------- ----------------------------------------------- ------------------------------------------------- ASSUMES 15% GAIN ON INVESTMENT ASSUMES 15% LOSS ON INVESTMENT - ---------------------- ----------------------------------------------- ------------------------------------------------- CONTRACT CONTRACT VALUE RBB LWB (5%) VALUE RBB LWB (5%) - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- VALUES AS OF - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- IMMEDIATELY PRIOR TO WITHDRAWAL AND AFTER THE FIRST GMWB ANNIVERSARY $115,000 $115,000 $5,750 $85,000 $100,000 $5,000 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- PARTIAL WITHDRAWAL N/A (115,000 (5,750 X (1- N/A (100,000 (5,000 X (1- REDUCTION X 105,000/ X 88,235/100,000)= 10,000/115,000)= 115,000)= 10,000/85,000)= $588 10,000 500 $11,765 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- GREATER OF PWR OR $10,000 $11,765 THE DOLLAR AMOUNT OF THE WITHDRAWAL (10,000=10,000) (11,765>10,000) - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,765 $588 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- ----------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $105,000 $105,000 $5,250 $75,000 $88,235 $4,412 - ---------------------- ----------- ----------------- ----------------- -------------- ---------------- -----------------
RESET On each anniversary after you purchase the GMWB for Life rider, we will automatically reset your RBB, under our Automatic RBB Reset Program, to an amount equal to 100% of the then Contract Value. We will not automatically reset your RBB if the Contract Value on your anniversary is less than your current RBB, or, if you (or you and your spouse) are over age 85. You may choose to opt out of the Automatic RBB Reset Program, if a reset of your RBB would cause the charge for your rider to increase. This can happen since the rate you pay for the rider will be changed to the rate in effect at the time of reset and that may be higher than the rate before the reset. We will send you advance notice if the charge for your rider would increase upon reset in order to give you the opportunity to opt out of the Automatic RBB Reset Program. In order to opt out of the Automatic RBB Reset Program, you must notify us in writing which we must receive by the 7th calendar day prior to the scheduled reset. Your rider will no longer be reset for the life of the rider unless you subsequently elect in writing to opt back into the Automatic RBB Reset Program. Your opt back in election will go into effect upon the next GMWB for Life Anniversary following the receipt of your request. Upon reset, the LWB will be recalculated as the greater of the a) LWB prior to the reset, or b) a percentage of the Reset RBB value. The percentage will equal the percentage of the RBB (e.g. 5%) used in determining the initial LWB. 7 GUARANTEED PRINCIPAL OPTION If your circumstances change and you no longer want the lifetime features of the GMWB for Life rider, you may wish to opt out and receive an adjustment to your Contract Value. In this case, once you have held the rider for ten (10) years or more you will have the option each year to elect the Guaranteed Principal Option. Each year you will have a 30-day window period during which you may elect the option. You may only elect the option once, as your GMWB for Life rider will terminate when you exercise the option. The Guaranteed Principal Option will be paid to you as a positive adjustment to your Contract Value. The adjustment is equal to (a) minus (b): (a) Purchase Payments credited within 120 days after you purchase the GMWB for Life rider, reduced by a "Percentage Reduction in the Contract Value" attributable to any partial withdrawals taken. We compute the "Percentage Reduction in Contract Value" attributable to a partial withdrawal by dividing the dollar amount of the withdrawal, plus any applicable withdrawal charges, by the Contract Value immediately preceding such withdrawal. We apply the Percentage Reduction in the Contract Value as a factor equal to 1 minus the percentage reduction. (b) Your Contract Value on the GMWB Anniversary immediately preceding exercise of the Guaranteed Principal Option. For example, assume you make a single Purchase Payment of $100,000 and elect the GMWB for Life rider. Also assume that you make no withdrawals, and that ten years later your Contract Value has declined to $80,000. If you elect to receive the Guaranteed Principal Option, we will apply $20,000 to your Contract Value to restore it to $100,000. To exercise the Guaranteed Principal Option you must notify us in writing within 30 days following any anniversary of your purchase of the GMWB for Life rider, on or after the tenth (10th) anniversary of your purchase of the rider. We will adjust your Contract Value at the end of the 30-day window period. The adjustment will be added to each Variable Funding Option in the ratio that the Contract Value in such Variable Funding Option bears to the total Contract Value in all Variable Funding Options. The adjustment will never be less than zero. If you exercise the Guaranteed Principal Option, the GMWB for Life rider will terminate on the date the adjustment is added to your Contract Value. REQUIRED ALLOCATION OF YOUR CONTRACT VALUE AND PREMIUM PAYMENTS If you elect the GMWB for Life rider, you will be required to invest in a limited number of specific Variable Funding Options, and you will be foreclosed from investing in all the other Variable Funding Options that would otherwise be available to you. In addition, you may not allocate any portion of your Contract Value or Premium Payments to the Fixed Account. You will be required to allocate 100% of your Contract Value or Purchase Payments to one or more of the following Variable Funding Options. Some of these Variable Funding Options invest in mutual funds that invest in other mutual funds, also known as "funds of funds." Please see the section in this prospectus entitled "Variable Funding Options" for a description of the investment objectives of these Variable Funding Options. 8 PERMITTED VARIABLE FUNDING OPTIONS SCUDDER VARIABLE SERIES II Scudder Conservative Income Strategy Portfolio -- Class B Scudder Income & Growth Strategy Portfolio -- Class B Scudder Growth & Income Strategy Portfolio -- Class B Scudder Growth Strategy Portfolio -- Class B Scudder Money Market Portfolio -- Class B We will reject any request by you to transfer Contract Value or allocate Purchase Payments to a Variable Funding Option other than the permitted Variable Funding Options listed above. You will be required to re-submit your request to comply with the above restrictions. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it violated the above restrictions. We may add or remove Variable Funding Options for eligibility for new investments from the list of permitted Variable Funding Options. GMWB FOR LIFE CHARGE The charge for your GMWB for Life rider depends on whether you purchase the Single Life Option or the Joint Life Option. The charge is deducted daily from amounts held in each Variable Funding Option. The current charge, on an annual basis, is shown below. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" above). The charge will never exceed 1.50%. ------------------------------------------------ ----------------------------- CURRENT CHARGE ------------------------------------------------ ----------------------------- Single Life Option 0.75% ------------------------------------------------ ----------------------------- Joint Life Option 0.90% ------------------------------------------------ ----------------------------- ANNUAL WITHDRAWAL BENEFIT ("AWB") If your circumstances change, you may wish to take guaranteed withdrawals even though you have not yet reached the minimum age to be eligible for lifetime payments under LWB. In this case, you can take an "Annual Withdrawal Benefit" or "AWB" which allows you to withdraw an amount each year until your RBB is depleted. AWB payments are not guaranteed for life. The level of your AWB is determined in the same manner as the level of your LWB as described in the above section entitled "Lifetime Withdrawal Benefit ("LWB")", except that there is no minimum age to be eligible to receive AWB payments. Additional Premium Payments affect your AWB in the same manner as they do the LWB as described in the "Additional Premium Payments" section above. The reset of your RBB will affect your AWB in the same manner as it affects the LWB as described in the "Reset" section above. Withdrawals affect your AWB in the same manner as your LWB as described in the "Withdrawals" section above, with the following exception. If you begin taking AWB withdrawals before you reach the minimum age to qualify for payments under LWB, when you reach the minimum age any withdrawals in excess of your LWB amount will subject your LWB and RBB to a partial withdrawal reduction, even if your withdrawal does not exceed your AWB. This could serve to decrease the amount of your future monthly payments under LWB, and the length of the time period during which you may continue to take payments under AWB. 9 SHOULD I TAKE WITHDRAWALS UNDER LWB OR AWB? The GMWB for Life rider works best, and is designed, for the investor who can wait until the minimum age is attained to qualify for LWB payments. If you take your first withdrawal after you have reached the minimum age to qualify for LWB payments, payments under AWB or LWB are equal and the same. However, if you take your first withdrawal before you have reached the minimum age to qualify for LWB payments, the AWB or LWB payments available to you when you reach the minimum age may not be equal. AWB is designed for the investor who has undergone a change in circumstances and wants to take withdrawals before reaching the minimum age to qualify for LWB payments. If you choose to take AWB payments before you qualify for LWB payments, you should consider that the charges for the GMWB for Life rider are designed to support LWB payments for life, and that you may be paying a higher charge without receiving the full benefit. IF YOU CONTINUE TO MAKE WITHDRAWALS IN EXCESS OF THE LWB ONCE THE MINIMUM AGE TO QUALIFY FOR LWB HAS BEEN REACHED, YOU MAY EVENTUALLY LOSE ANY BENEFIT UNDER LWB. Whether you choose to access your money using the LWB, AWB, or Guaranteed Principal Option depends on your individual financial circumstances and the performance of your annuity contract. You should consult with your financial adviser to determine which method is best for you. TAX-QUALIFIED DISTRIBUTION PROGRAMS Subject to certain limitations and restrictions, your LWB and AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, but will not affect the LWB or AWB. The following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: (1) distributions relating to this Contract intended to satisfy the required minimum distribution rules under Internal Revenue Code of 1986, as amended, ("Code"), Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to a qualified retirement plan (Code Section 401), a tax-sheltered annuity (Code Section 403(b)), an individual retirement annuity (Code Section 408(b)), or an eligible deferred compensation plan (Code Section 457(b)), which required minimum distribution is calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate, or as otherwise required to be calculated under the Code and the regulations thereunder; (2) distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity Contract provided under Code Section 72(s)(1) for certain amounts payable over the life, or over a period no longer than the remaining life expectancy, of a designated beneficiary relating to this Contract; (3) distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the participant or the joint lives (or joint life expectancies) of such participant and his designated beneficiary, provided, however, the 10 amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract; or (4) distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity Contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of such taxpayer and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004 -9, Notice 2004-15, page 526, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract. You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB for Life rider, however your RBB, LWB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select a frequency of payments. You may change the frequency of your payments only once every two years after your GMWB for Life Anniversary, and you may only make the change during the 30-day period after your GMWB for Life Anniversary. At the time you purchase GMWB for Life, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB for Life Anniversary. You are advised to take your required distributions prior to purchasing GMWB for Life in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB for Life, you will be limited to taking annual distributions for the first two contract years after which time you can choose an alternate mode of distribution. ANY WITHDRAWALS OUTSIDE OF THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax-Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB for Life (a "GMWB for Life Year"). If during any GMWB for Life Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals under your GMWB for Life rider, however for the remainder of the GMWB for Life Year your RBB, LWB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. DISTRIBUTIONS UNDER THE TAX-QUALIFIED DISTRIBUTION PROGRAM WILL BE DETERMINED AS IF YOUR CONTRACT UNDER WHICH YOUR GMWB FOR LIFE RIDER WAS ISSUED WERE THE ONLY CONTRACT SUBJECT TO THE ABOVE TAX RULES. 11 TERMINATION Once you purchase the GMWB for Life rider, you cannot cancel it. However, the rider will automatically terminate when: o you make a full withdrawal of your Contract Value; o you apply all of your Contract Value to an Annuity Option; o the Contract Owner dies and a death benefit under your Contract becomes payable, unless the Contract is continued by the beneficiary; o the Annuitant dies and the Annuitant is not the person whose life is used to determine guaranteed payments; o you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option; o you opt to take the Guaranteed Principal Option; or o you terminate your annuity contract. Charges for the rider cease upon termination. OTHER INFORMATION You should also consider the following before you purchase the GMWB for Life rider: o The charge for the GMWB for Life rider continues for the life of the rider, even if you never need nor exercise the guarantees under the rider. o Withdrawals that are greater than your LWB or AWB will erode your guarantee by serving to more rapidly deplete your RBB. o The GMWB for Life rider is not transferable; if you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option, the rider terminates automatically. o If you only plan to take AWB, or take the Guaranteed Principal Option, you should consider the higher cost of the GMWB for Life rider which is designed to support payments for life under LWB. o If you continue to take AWB once eligible for LWB, you may eventually lose any benefit under LWB. EFFECT ON THE DEATH BENEFIT The GMWB for Life rider terminates when a death benefit under your Contract becomes payable, except in certain circumstances when the beneficiary may continue the Contract along with the GMWB for Life rider (see "Contract Continuation by Beneficiary" and "Contract Value Reduces to Zero" below). However, if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described in the "Death Benefit" section, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the rider is added to your Contract. If the Annuitant dies before the Contract Owner(s), then the GMWB for Life rider will terminate and the beneficiary cannot continue the rider. Under the Joint Life Option, if the spousal beneficiary predeceases the Contract Owner, the rider continues and no death benefit is paid out; the Contract Owner may then name a new beneficiary for the purposes of the death benefit provisions under the Contract, but not for purposes of the GMWB for Life rider. 12 Notwithstanding anything in the GMWB for Life rider to the contrary: (a) in order to comply with section 72(s) of the Code, if the GMWB for Life rider is purchased with respect to a non-qualified annuity contract, any death benefit paid out under the terms of the GMWB for Life rider to a non-spousal Beneficiary upon the death of the owner (or to a payee other than the spouse of the Annuitant on the death of the Annuitant, where the Contract is owned by a non-natural person) (including payments made under the "Contract Continuation by the Beneficiary" provision, "Contract Value Reset to Zero" provision, and any other payments of the AWB and RBB otherwise made after a death) will be paid out in non-increasing annual installments over a period no longer than the remaining single life expectancy of the Beneficiary under the appropriate IRS life expectancy table under Code Section 72 and the regulation thereunder or as otherwise provided under the tax law for non-qualified annuities and under Code Section 72(s). Such payments must begin within 12 months of the date of death in all cases. (b) Where the Beneficiary or other payee under paragraph (a) is not a natural person, such period may not extend beyond the fifth anniversary of the date of the death. (c) If the GMWB for Life rider is issued under a Qualified Contract and the death occurs on or after the Required Beginning Date of distributions to the participant under Code Section 401(a)(9), the period for the payments described in paragraph (a) above may not exceed the longer of: (i) the Beneficiary's or other payee's remaining life expectancy or (ii) the deceased Annuitant's remaining life expectancy in the year of his or her death, reduced by one for each calendar year thereafter. (d) Where under other sections of the GMWB for Life rider, any payment described in this section ("Effect on Death Benefits") is payable over a shorter period of time, required to begin at an earlier date, or would otherwise be paid more rapidly than under this section ("Effect on Death Benefit"), then such payment will be made under the terms of such other provision. If annual payments must exceed the AWB in order to comply with these requirements, then these payments will not result in a Partial Withdrawal Reduction to the RBB and AWB as described in the RBB and AWB sections of the GMWB for Life rider. Each withdrawal will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. CONTRACT CONTINUATION BY THE BENEFICIARY Under the Joint Life Option, if the spousal beneficiary elects to continue the Contract instead of receiving the death benefit, the GMWB for Life rider will also continue for the benefit of the spouse. Upon the death of the spouse, the LWB will terminate. However, if there are any remaining AWB payments, such payments may be continued by a surviving beneficiary instead of receiving a death benefit. In such case payments will be made annually on the next rider anniversary, no further resets will be made of the RBB, and the RBB will be reduced by the amount of each payment. Upon the death of such beneficiary, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. Under the Single Life Option, the LWB terminates when a death benefit becomes payable under the Contract, regardless of whether the Contract is continued by a beneficiary. If a non-spousal beneficiary continues the Contract, even under the Joint Life Option, the LWB terminates. However, if there are any remaining AWB payments, such payments may also be continued by a surviving beneficiary as described in the preceding paragraph. Payments made under the Continuation by the Beneficiary provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner (or upon the death of the 13 Annuitant where the owner is not a natural person), the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. For riders issued under a Qualified Contract, the payments under the Continuation by the Beneficiary provision of the GMWB for Life rider must be paid out at regular intervals in non-increasing annual payments made over a period no longer than that permitted under Code Section 401(a)(9) and the regulations thereunder. Payments to the Beneficiary or to the owner's estate on the death of the owner, or payments to the Beneficiary's estate (or to the successor beneficiary) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. CONTRACT VALUE REDUCES TO ZERO If your Contract Value reduces to zero for reasons other than you making 1) a withdrawal that exceeds your AWB or LWB or 2) a full withdrawal of your Contract Value, and the minimum age has already been reached to be eligible to receive LWB payments, then we will automatically begin paying you annual payments equal to the LWB as long as you (or you or your spouse under the Joint Life Option) are alive unless you elect to receive annual payments equal to the AWB as set forth below. Payments will be made once a year on each rider effective date anniversary starting with the next anniversary. Each payment will reduce the RBB by the amount of the payment. Alternatively, you have the option to elect in writing to instead receive annual payments equal to the current AWB, as of the date your written election is received in good order at our office, until the RBB is depleted. Upon such election, we will begin paying you the AWB starting on the next rider effective date anniversary following the date your written election is received in good order in our office. If the minimum age to be eligible for LWB payments has not yet been reached, and the RBB is greater than zero, we will automatically begin paying you annual payments equal to the AWB until the RBB is depleted. All other rights under your Contract cease, we will no longer accept subsequent Purchase Payments and no future resets will be allowed. All other optional endorsements are terminated without value. Upon your death (or you or your spouse's death under the Joint Life Option), your Beneficiary(s) will receive the following: 1. Under the Single Life Option, the LWB will be set to $0.00 and the beneficiary(s) will receive annual payments equal to the current AWB until the RBB is depleted. No other death benefit or Enhanced Stepped-Up Provision (if any) will be paid if the RBB is already equal to zero upon the owner's death. The death benefit under the Contract is cancelled. Upon the beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 2. Under the Joint Life Option, the terms of the rider continue and we will continue to your spouse annual payments equal to either the LWB or AWB according to your election prior to your death and the terms described above. The death benefit under the Contract is cancelled. Upon the spouse's death, the LWB will be set to $0.00 and the spousal beneficiary's estate or Beneficiary, as applicable, will receive annual payments equal to the current AWB until the RBB is depleted. Upon that beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates 14 3. Payments made under the "Contract value reduces to Zero" provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner, the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. 4. For riders issued under a Contract that is issued to an Individual Retirement Account under Code Section 408(a), an Individual Retirement Annuity under Code Section 408(b), a Roth IRA annuity under Code Section 408A, a SIMPLE IRA annuity under Code Section 408(p) or any other annuity under an employer's retirement plan that is subject to the required minimum distribution rules under Code Section 401(a)(9), including the after-death distribution rules under Code Section 401(a)(9)(B) ("Qualified Contracts"), The payments under this provision of the GMWB for Life rider will be adjusted as required to be paid out in a non-increasing annual payments over a period no longer than permitted under Code Section 401(a)(9). Payments to the Beneficiary (or to the owner's estate on the death of the owner), or payments to the successor beneficiary (or to the Beneficiary's estate) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. In the section entitled "Death Benefit," the following paragraph is added as the last paragraph: If you purchased the GMWB for Life rider and if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described above, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the GMWB for Life rider is added to your Contract. L-24560 January, 2006 15 PART B PIONEER ANNUISTAR(SM) PLUS PORTFOLIO ARCHITECT PLUS SCUDDER ADVOCATE REWARDS STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 30, 2005 FOR TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES ISSUED BY THE TRAVELERS INSURANCE COMPANY This Statement of Additional Information ("SAI") is not a prospectus but relates to, and should be read in conjunction with, the Variable Annuity Contract Prospectus dated May 2, 2005. A copy of the Prospectus may be obtained by writing to The Travelers Insurance Company, Annuity Services, One Cityplace, Hartford, Connecticut 06103-3415, or by calling (800) 842-8573 or by accessing the Securities and Exchange Commission's website at http://www.sec.gov. TABLE OF CONTENTS THE INSURANCE COMPANY..................................................... 2 PRINCIPAL UNDERWRITER..................................................... 3 DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT......................... 3 VALUATION OF ASSETS....................................................... 3 FEDERAL TAX CONSIDERATIONS................................................ 4 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM............................. 8 CONDENSED FINANCIAL INFORMATION........................................... 10 FINANCIAL STATEMENTS...................................................... F-1 1 THE INSURANCE COMPANY The Travelers Insurance Company (the "Company") is a stock insurance company chartered in 1864 in Connecticut and continuously engaged in the insurance business since that time. The Company is licensed to conduct a life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands, and the Bahamas. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415 and its telephone number is (860) 308-1000. The Company is an indirect wholly-owned subsidiary of MetLife, Inc., a publicly traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. STATE REGULATION. The Company is subject to the laws of the state of Connecticut governing insurance companies and to regulation by the Insurance Commissioner of the state of Connecticut (the "Commissioner"). An annual statement covering the operations of the Company for the preceding year, as well as its financial conditions as of December 31 of such year, must be filed with the Commissioner in a prescribed format on or before March 1 of each year. The Company's books and assets are subject to review or examination by the Commissioner or his agents at all times, and a full examination of its operations is conducted at least once every four years. The Company is also subject to the insurance laws and regulations of all other states in which it is licensed to operate. However, the insurance departments of each of these states generally apply the laws of the home state (jurisdiction of domicile) in determining the field of permissible investments. THE SEPARATE ACCOUNT. TIC Separate Account Eleven for Variable Annuities (the "Separate Account") meets the definition of a separate account under the federal securities laws, and complies with the provisions of the 1940 Act. Additionally, the operations of the Separate Account are subject to the provisions of Section 38a-433 of the Connecticut General Statutes which authorizes the Connecticut Insurance Commissioner to adopt regulations under it. Section 38a-433 contains no restrictions on the investments of the Separate Account, and the Commissioner has adopted no regulations under the Section that affect the Separate Account. The Company holds title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from the Company's general corporate assets. Records are maintained of all purchases and redemptions of the Underlying Funds held in each of the Variable Funding Options. PRINCIPAL UNDERWRITER Travelers Distribution LLC ("TDLLC") serves as principal underwriter for the Separate Account and the Contracts. The offering is continuous. TDLLC's principal executive offices are located at One Cityplace, Hartford, Connecticut. TDLLC is affiliated with the Company and the Separate Account. DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT Under the terms of the Distribution and Principal Underwriting Agreement among the Separate Account, TDLLC and the Company, TDLLC acts as agent for the distribution of the Contracts and as principal underwriter for the Contracts. The Company reimburses TDLLC for certain sales and overhead expenses connected with sales functions. The following table shows the amount of commissions paid to and the amount of commissions retained by TDLLC over the past three years. TDLLC UNDERWRITING COMMISSIONS
- --------------------------------------------------------------------------------------------------- UNDERWRITING COMMISSIONS PAID TO TDLLC AMOUNT OF UNDERWRITING COMMISSIONS YEAR BY THE COMPANY RETAINED BY TDLLC - --------------------------------------------------------------------------------------------------- 2004 $132,410 $0 - --------------------------------------------------------------------------------------------------- 2003 $ 73,223 $0 - --------------------------------------------------------------------------------------------------- 2002 $ 88,393 $0 - ---------------------------------------------------------------------------------------------------
2 VALUATION OF ASSETS FUNDING OPTIONS: The value of the assets of each Funding Option is determined at 4:00 p.m. eastern time on each business day, unless we need to close earlier due to an emergency. A business day is any day the New York Stock Exchange is open. It is expected that the Exchange will be closed on Saturdays and Sundays and on the observed holidays of New Year's Day, Martin Luther King, Jr. Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Each security traded on a national securities exchange is valued at the last reported sale price on the business day. If there has been no sale on that day, then the value of the security is taken to be the mean between the reported bid and asked prices on the business day or on the basis of quotations received from a reputable broker or any other recognized source. Any security not traded on a securities exchange but traded in the over-the-counter-market and for which market quotations are readily available is valued at the mean between the quoted bid and asked prices on the business day or on the basis of quotations received from a reputable broker or any other recognized source. Securities traded on the over-the-counter-market and listed securities with no reported sales are valued at the mean between the last reported bid and asked prices or on the basis of quotations received from a reputable broker or other recognized source. Short-term investments for which a quoted market price is available are valued at market. Short-term investments maturing in more than sixty days for which there is no reliable quoted market price are valued by "marking to market" (computing a market value based upon quotations from dealers or issuers for securities of a similar type, quality and maturity.) "Marking to market" takes into account unrealized appreciation or depreciation due to changes in interest rates or other factors which would influence the current fair values of such securities. Short-term investments maturing in sixty days or less for which there is no reliable quoted market price are valued at amortized cost which approximates market. THE CONTRACT VALUE: The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is used to measure the investment performance of a funding option from one valuation period to the next. The net investment factor for a funding option for any valuation period is equal to the sum of 1.000000 plus the net investment rate (the gross investment rate less any applicable funding option deductions during the valuation period relating to the mortality and expense risk charge and the administrative expense charge). The gross investment rate of a funding option is equal to (a) minus (b), divided by (c) where: (a) = investment income plus capital gains and losses (whether realized or unrealized); (b) = any deduction for applicable taxes (presently zero); and (c) = the value of the assets of the funding option at the beginning of the valuation period. The gross investment rate may be either positive or negative. A funding option's investment income includes any distribution whose ex-dividend date occurs during the valuation period. ACCUMULATION UNIT VALUE. The value of the Accumulation Unit for each funding option was initially established at $1.00. The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is calculated for each funding option and takes into account the investment performance, expenses and the deduction of certain expenses. ANNUITY UNIT VALUE. The initial Annuity Unit value applicable to each funding option was established at $1.00. An Annuity Unit value as of any business day is equal to (a) the value of the annuity unit on the preceding business day, multiplied by (b) the corresponding net investment factor for the valuation period just ended, divided by (c) the assumed net investment factor for the valuation period. (For example, the assumed net investment factor based on an annual assumed net investment rate of 3.0% for a Valuation Period of one day is 1.000081 and, for a period of two days, is 1.000081 x 1.000081.) 3 FEDERAL TAX CONSIDERATIONS The following description of the federal income tax consequences under this Contract is general in nature and is therefore not exhaustive and is not intended to cover all situations. Because of the complexity of the law and the fact that the tax results will vary according to the factual status of the individual involved, a person contemplating purchase of an annuity contract and by a Contract Owner or beneficiary who may make elections under a Contract should consult with a qualified tax or legal adviser. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the later of calendar year in which a participant under a qualified plan or a Section 403(b) annuity attains age 70 1/2 or retires. Minimum annual distributions under an IRA must begin by April 1st of the calendar year in which the Contract Owner attains 70 1/2 regardless of when he or she retires. Distributions must also begin or be continued according to the minimum distribution rules under the Code following the death of the Contract Owner or the annuitant. You should note that the U.S. Treasury recently issued regulations clarifying the operation of the required minimum distribution rules. NONQUALIFIED ANNUITY CONTRACTS Individuals may purchase tax-deferred annuities without any limits. The purchase payments receive no tax benefit, deduction or deferral, but taxes on the increases in the value of the contract are generally deferred until distribution and transfers between the various investment options are not subject to tax. Generally, if an annuity contract is owned by other than an individual (or an entity such as a trust or other "look-through" entity which owns for an individual's benefit), the owner will be taxed each year on the increase in the value of the contract. An exception applies for purchase payments made before March 1, 1986. The benefits of tax deferral of income earned under a non-qualified annuity should be compared with the relative federal tax rates on income from other types of investments (dividends and capital gains, taxable at 15% or less) relative to the ordinary income treatment received on annuity income and interest received on fixed instruments (notes, bonds, etc.). If two or more annuity contracts are purchased from the same insurer within the same calendar year, such annuity contract will be aggregated for federal income tax purposes. As a result, distributions from any of them will be taxed based upon the amount of income in all of the same calendar year series of annuities. This will generally have the effect of causing taxes to be paid sooner on the deferred gain in the contracts. Those receiving partial distributions made before the maturity date will generally be taxed on an income-first basis to the extent of income in the contract. If you are exchanging another annuity contract for this annuity, certain pre-August 14, 1982 deposits into an annuity contract that have been placed in the contract by means of a tax-deferred exchange under Section 1035 of the Code may be withdrawn first without income tax liability. This information on deposits must be provided to the Company by the other insurance company at the time of the exchange. There is income in the contract generally to the extent the cash value exceeds the investment in the contract. The investment in the contract is equal to the amount of premiums paid less any amount received previously which was excludable from gross income. Any direct or indirect borrowing against the value of the contract or pledging of the contract as security for a loan will be treated as a cash distribution under the tax law. In order to be treated as an annuity contract for federal income tax purposes, Section 72(s) of the Code requires any non-qualified contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an owner of the contract. Specifically, Section 72(s) requires that (a) if an owner dies on or after the annuity starting date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such owner's death; and (b) if any owner dies prior to the annuity starting date, the entire interest in the contract will be distributed within five years after the date of such owner's death. These requirements will be considered satisfied as to any portion of an owner's interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the owner's death. The designated beneficiary refers to a 4 natural person designated by the owner as a beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased owner, the contract may be continued with the surviving spouse as the successor-owner. Contracts will be administered by the Company in accordance with these rules and the Company will make a notification when payments should be commenced. Special rules apply regarding distribution requirements when an annuity is owned by a trust or other entity for the benefit of one or more individuals. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make deductible contributions to an individual retirement annuity (IRA). The applicable limit ($2,000 per year prior to 2002) has been increased by the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). The limit is $3,000 for calendar years 2002 - 2004, $4,000 for calendar years 2005-2007, and $5,000 for 2008, and will be indexed for inflation in years subsequent to 2008. Additional "catch-up" contributions may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and based on their participation in a retirement plan. If an individual is married and the spouse does not have earned income, the individual may establish IRAs for the individual and spouse. Purchase payments may then be made annually into IRAs for both spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. The Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA with an annual employer contribution limit of up to $40,000 for each participant. The Internal Revenue Services has not reviewed the contract for qualifications as an IRA, and has not addressed in a ruling of general applicability whether a death benefit provision such as the optional enhanced death benefit in the contract comports with IRA qualification requirements. SIMPLE PLAN IRA FORM Effective January 1, 1997, employers may establish a savings incentive match plan for employees ("SIMPLE plan") under which employees can make elective salary reduction contributions to an IRA based on a percentage of compensation of up to the applicable limit for the taxable year. The applicable limit was increased under EGTRRA. The applicable limit was increased under EGTRRA to $7,000 for 2002, $8,000 for 2003, $9,000 in 2004, $10,000 in 2005 (which will be indexed for inflation for years after 2005. (Alternatively, the employer can establish a SIMPLE cash or deferred arrangement under IRS Section 401(k)). Under a SIMPLE plan IRA, the employer must either make a matching contribution or a nonelective contribution based on the prescribed formulas for all eligible employees. Early withdrawals are subject to the 10% early withdrawal penalty generally applicable to IRAs, except that an early withdrawal by an employee under a SIMPLE plan IRA, within the first two years of participation, shall be subject to a 25% early withdrawal tax. ROTH IRAs Effective January 1, 1998, Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations (similar to the annual limits for the traditional IRA's), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of a "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to any Roth IRA of the individual. 5 QUALIFIED PENSION AND PROFIT-SHARING PLANS Like most other contributions made under a qualified pension or profit-sharing plan, purchase payments made by an employer are not currently taxable to the participant and increases in the value of a contract are not subject to taxation until received by a participant or beneficiary. Distributions are generally taxable to the participant or beneficiary as ordinary income in the year of receipt. Any distribution that is considered the participant's "investment in the contract" is treated as a return of capital and is not taxable. Under a qualified plan, the investment in the contract may be zero. The annual limits that apply to the amounts that may be contributed to a defined contribution plan each year were increased by EGTRRA. The maximum total annual limit was increased from $35,000 to $40,000 ($42,000 for 2005). The limit on employee salary reduction deferrals (commonly referred to as "401(k) contributions") increase on a graduated basis; $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005 and $15,000 in 2006. The $15,000 annual limit will be indexed for inflation after 2006. Additional "catch-up contributions" may be made by individuals age 50 or over. Amounts attributable to salary reduction contributions under Code Section 401(k) and income thereon may not be withdrawn prior to severance from employment, death, total and permanent disability, attainment of age 59 1/2, or in the case of hardship. SECTION 403(B) PLANS Under Code section 403(b), payments made by public school systems and certain tax exempt organizations to purchase annuity contracts for their employees are excludable from the gross income of the employee, subject to certain limitations. However, these payments may be subject to FICA (Social Security) taxes. A qualified contract issued as a tax-sheltered annuity under section 403(b) will be amended as necessary to conform to the requirements of the Code. The annual limits under Code Section 403(b) for employee salary reduction deferrals are increased under the same rules applicable to 401(k) plans ($14,000 in 2005). Code section 403(b)(11) restricts this distribution under Code section 403(b) annuity contracts of: (1) elective contributions made in years beginning after December 31, 1998; (2) earnings on those contributions; and (3) earnings in such years on amounts held as of the last year beginning before January 1, 1989. Distribution of those amounts may only occur upon death of the employee, attainment of age 59 1/2, separation from service, disability, or financial hardship. In addition, income attributable to elective contributions may not be distributed in the case of hardship. FEDERAL INCOME TAX WITHHOLDING The portion of a distribution, which is taxable income to the recipient, will be subject to federal income tax withholding as follows: 1. ELIGIBLE ROLLOVER DISTRIBUTION FROM SECTION 403(B) PLANS OR ARRANGEMENTS, FROM QUALIFIED PENSION AND PROFIT-SHARING PLANS, OR FROM 457 PLANS SPONSORED BY GOVERNMENTAL ENTITIES There is a mandatory 20% tax withholding for plan distributions that are eligible for rollover to an IRA or to another qualified retirement plan (including a 457 plan sponsored by a governmental entity) but that are not directly rolled over. A distribution made directly to a participant or beneficiary may avoid this result if: (a) a periodic settlement distribution is elected based upon a life or life expectancy calculation, or (b) a term-for-years settlement distribution is elected for a period of ten years or more, payable at least annually, or (c) a minimum required distribution as defined under the tax law is taken after the attainment of the age of 70 1/2 or as otherwise required by law, or (d) the distribution is a hardship distribution. A distribution including a rollover that is not a direct rollover will be subject to the 20% withholding, and the 10% additional tax penalty on premature withdrawals may apply to any amount not added back in the 6 rollover. The 20% withholding may be recovered when the participant or beneficiary files a personal income tax return for the year if a rollover was completed within 60 days of receipt of the funds, except to the extent that the participant or spousal beneficiary is otherwise underwithheld or short on estimated taxes for that year. 2. OTHER NON-PERIODIC DISTRIBUTIONS (FULL OR PARTIAL REDEMPTIONS) To the extent not subject to 20% mandatory withholding as described in 1. above, the portion of a non-periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding, if the aggregate distributions exceed $200 for the year, unless the recipient elects not to have taxes withheld. If no such election is made, 10% of the taxable portion of the distribution will be withheld as federal income tax; provided that the recipient may elect any other percentage. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. 3. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN ONE YEAR) The portion of a periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding under the wage withholding tables as if the recipient were married claiming three exemptions. A recipient may elect not to have income taxes withheld or have income taxes withheld at a different rate by providing a completed election form. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. Recipients who elect not to have withholding made are liable for payment of federal income tax on the taxable portion of the distribution. Recipients may also be subject to penalties under the estimated tax payment rules if withholding and estimated tax payments are not sufficient to cover tax liabilities. Recipients who do not provide a social security number or other taxpayer identification number will not be permitted to elect out of withholding. Additionally, U.S citizens residing outside of the country, or U.S. legal residents temporarily residing outside the country, are subject to different withholding rules and generally cannot elect out of withholding. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The consolidated financial statements and schedules of The Travelers Insurance Company and subsidiaries as of December 31, 2004 and 2003, and for each of the years in the three-year period ended December 31, 2004, included herein, and the financial statements of TIC Separate Account Eleven for Variable Annuities as of December 31, 2004, and for each of the years in the two-year period ended December 31, 2004, also included herein, have been included in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. The audit reports on The Travelers Insurance Company and subsidiaries refer to changes in the Company's methods of accounting and reporting for certain nontraditional long-duration contracts and for separate accounts in 2004, for variable interest entities in 2003, and for goodwill and intangible assets in 2002. 7 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 1.70%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.993 0.987 1,116,721 2003 1.000 0.993 35,690 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.224 1.280 339,421 2003 1.000 1.224 6,871 AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.243 1.388 313,845 2003 1.000 1.243 4,473 Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.215 1.325 546,408 2003 1.000 1.215 2,381 Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.334 1.462 329,200 2003 1.000 1.334 7,956 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.337 1.558 493,997 2003 1.000 1.337 66,608 Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.255 1.343 275,915 2003 1.000 1.255 15,082 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.232 1.291 630,486 2003 1.000 1.232 64,877 Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.412 1.650 220,980 2003 1.000 1.412 55,256
8 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.995 1.008 552,237 2003 1.000 0.995 -- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.109 1.140 254,318 2003 1.000 1.109 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.509 1.760 109,699 2003 1.000 1.509 71 Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.204 1.373 492,774 2003 1.000 1.204 18,295 Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.282 1.490 17,995 2003 1.000 1.282 3,595 Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.211 1.321 532,036 2003 1.000 1.211 64,776 Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.153 1.205 70,236 2003 1.000 1.153 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.151 1.220 732,713 2003 1.000 1.151 92,962 Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.288 1.500 59,613 2003 1.000 1.288 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.322 1.583 398,087 2003 1.000 1.322 60,324 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.021 1.094 48,545
9 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.970 1.000 22,256 Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.070 1.072 65,806 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.260 1.677 400,846 2003 1.000 1.260 5,240 Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.353 1.595 144,559 2003 1.000 1.353 62,274 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.284 1.429 24,898 2003 1.000 1.284 4,304 Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.088 1.176 574,254 2003 1.000 1.088 195 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.190 1.304 92,974 2003 1.000 1.190 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.114 1.188 85,963 2003 1.000 1.114 2,221
10 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.993 0.986 -- 2003 1.000 0.993 -- AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.224 1.278 21,268 2003 1.000 1.224 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.243 1.387 57,583 2003 1.000 1.243 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.214 1.324 38,579 2003 1.000 1.214 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.333 1.460 -- 2003 1.000 1.333 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.336 1.556 36,194 2003 1.000 1.336 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.255 1.341 788 2003 1.000 1.255 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.231 1.290 52,911 2003 1.000 1.231 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.411 1.649 48,490 2003 1.000 1.411 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.994 1.007 4,411 2003 1.000 0.994 --
11 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.109 1.139 -- 2003 1.000 1.109 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.508 1.759 6,377 2003 1.000 1.508 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.203 1.372 -- 2003 1.000 1.203 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.281 1.488 -- 2003 1.000 1.281 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.211 1.320 42,109 2003 1.000 1.211 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.152 1.204 -- 2003 1.000 1.152 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.151 1.219 33,712 2003 1.000 1.151 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.288 1.499 -- 2003 1.000 1.288 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.322 1.582 6,949 2003 1.000 1.322 -- Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.021 1.094 -- Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.970 1.000 13,548
12 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.070 1.072 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.259 1.675 28,482 2003 1.000 1.259 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.353 1.594 35,275 2003 1.000 1.353 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.283 1.428 27,133 2003 1.000 1.283 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.088 1.175 26,542 2003 1.000 1.088 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.190 1.303 -- 2003 1.000 1.190 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.113 1.187 3,777 2003 1.000 1.113 --
13 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.992 0.983 747,359 2003 1.000 0.992 1,126 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.222 1.275 113,134 2003 1.000 1.222 456 AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.241 1.383 18,458 2003 1.000 1.241 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.213 1.321 265,890 2003 1.000 1.213 3,132 Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.332 1.457 111,766 2003 1.000 1.332 208 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.335 1.553 187,836 2003 1.000 1.335 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.254 1.338 193,252 2003 1.000 1.254 278 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.230 1.287 60,448 2003 1.000 1.230 1,559 Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.410 1.645 61,081 2003 1.000 1.410 1,383 Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.993 1.004 647,590 2003 1.000 0.993 983
14 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.108 1.137 445,403 2003 1.000 1.108 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.507 1.754 44,631 2003 1.000 1.507 469 Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.202 1.369 298,133 2003 1.000 1.202 1,599 Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.280 1.485 -- 2003 1.000 1.280 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.210 1.317 116,457 2003 1.000 1.210 520 Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.151 1.201 57,772 2003 1.000 1.151 243 Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.150 1.216 164,624 2003 1.000 1.150 1,922 Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.287 1.495 -- 2003 1.000 1.287 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.321 1.578 318,854 2003 1.000 1.321 1,767 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.092 147,395 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.970 0.999 20,554
15 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.071 52,237 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.258 1.671 69,039 2003 1.000 1.258 1,385 Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.352 1.590 36,326 2003 1.000 1.352 3,132 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.282 1.424 -- 2003 1.000 1.282 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.087 1.172 195,674 2003 1.000 1.087 3,422 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.189 1.299 93,668 2003 1.000 1.189 964 Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.112 1.184 46,341 2003 1.000 1.112 1,709
16 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.992 0.982 1,734,183 2003 1.000 0.992 209,193 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.222 1.274 530,535 2003 1.000 1.222 27,451 AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.241 1.382 232,067 2003 1.000 1.241 74,814 Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.213 1.320 1,091,587 2003 1.000 1.213 24,924 Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.331 1.455 381,020 2003 1.000 1.331 88,557 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.334 1.551 868,465 2003 1.000 1.334 104,988 Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.253 1.337 674,582 2003 1.000 1.253 85,642 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.230 1.286 388,699 2003 1.000 1.230 6,651 Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.409 1.643 628,049 2003 1.000 1.409 43,123 Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.993 1.003 773,884 2003 1.000 0.993 14,909
17 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.107 1.135 174,655 2003 1.000 1.107 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.506 1.753 352,234 2003 1.000 1.506 34,133 Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.202 1.367 623,014 2003 1.000 1.202 14,010 Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.280 1.483 42,883 2003 1.000 1.280 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.209 1.316 977,147 2003 1.000 1.209 223,615 Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.151 1.200 142,373 2003 1.000 1.151 44,909 Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.149 1.215 1,130,615 2003 1.000 1.149 132,252 Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.286 1.494 120,375 2003 1.000 1.286 7,263 Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.320 1.576 653,352 2003 1.000 1.320 67,885 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.092 273,641 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.970 0.998 174,350
18 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.070 203,469 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.258 1.670 426,758 2003 1.000 1.258 81,414 Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.351 1.588 343,651 2003 1.000 1.351 34,490 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.282 1.423 51,725 2003 1.000 1.282 11,543 Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.086 1.171 1,544,395 2003 1.000 1.086 141,425 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.188 1.298 687,784 2003 1.000 1.188 44,779 Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.112 1.183 233,520 2003 1.000 1.112 68,443
19 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 2.05%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 1.000 0.996 57,824 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.000 1.056 2,150 AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.000 1.067 11,497 Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.000 1.074 7,647 Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.000 1.087 4,567 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.158 40,221 Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.000 1.054 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.000 1.049 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.000 1.171 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 1.000 1.034 7,806 Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.000 1.028 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.297 956
20 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.127 6,284 Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.179 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.092 4,932 Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.083 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.087 8,025 Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.172 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.146 13,629 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.000 1.072 5,316 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 1.000 0.994 -- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.000 1.012 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.310 7,106 Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.156 8,047 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.110 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.100 20,455 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.088 3,900
21 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.000 1.055 --
22 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.991 0.980 1,392,585 2003 1.000 0.991 72,439 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.221 1.271 593,713 2003 1.000 1.221 25,355 AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.240 1.379 276,314 2003 1.000 1.240 73,780 Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.211 1.317 1,169,969 2003 1.000 1.211 21,619 Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.330 1.452 496,425 2003 1.000 1.330 17,078 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.333 1.547 840,583 2003 1.000 1.333 14,359 Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.252 1.334 548,972 2003 1.000 1.252 33,415 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.229 1.283 335,647 2003 1.000 1.229 74,549 Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.408 1.639 391,043 2003 1.000 1.408 20,711 Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.992 1.001 399,575 2003 1.000 0.992 --
23 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.106 1.133 867,663 2003 1.000 1.106 84,158 Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.505 1.748 362,843 2003 1.000 1.505 9,952 Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.201 1.364 363,631 2003 1.000 1.201 44,867 Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.278 1.480 73,687 2003 1.000 1.278 15,488 Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.208 1.312 859,224 2003 1.000 1.208 27,860 Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.149 1.197 147,916 2003 1.000 1.149 15,157 Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.148 1.212 1,035,150 2003 1.000 1.148 81,714 Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.285 1.490 54,321 2003 1.000 1.285 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.319 1.572 335,227 2003 1.000 1.319 70,089 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.091 342,123 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.997 44,401
24 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.069 97,313 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.256 1.666 229,417 2003 1.000 1.256 347 Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.350 1.585 182,954 2003 1.000 1.350 78,883 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.281 1.420 60,591 2003 1.000 1.281 165 Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.085 1.169 1,077,272 2003 1.000 1.085 120,462 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.187 1.295 647,886 2003 1.000 1.187 15,432 Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.111 1.180 237,362 2003 1.000 1.111 --
25 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.990 0.979 -- 2003 1.000 0.990 -- AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.220 1.270 -- 2003 1.000 1.220 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.239 1.378 12,234 2003 1.000 1.239 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.211 1.316 24,237 2003 1.000 1.211 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.330 1.451 817 2003 1.000 1.330 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.333 1.546 58,808 2003 1.000 1.333 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.252 1.333 29,073 2003 1.000 1.252 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.228 1.281 28,846 2003 1.000 1.228 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.407 1.638 25,245 2003 1.000 1.407 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.991 1.000 3,517 2003 1.000 0.991 --
26 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.106 1.132 -- 2003 1.000 1.106 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.504 1.747 7,982 2003 1.000 1.504 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.200 1.363 2,634 2003 1.000 1.200 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.278 1.478 -- 2003 1.000 1.278 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.208 1.311 27,379 2003 1.000 1.208 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.149 1.196 -- 2003 1.000 1.149 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.148 1.211 31,242 2003 1.000 1.148 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.284 1.489 14,869 2003 1.000 1.284 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.318 1.571 7,542 2003 1.000 1.318 -- Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.090 1,092 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.997 --
27 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.069 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.256 1.664 -- 2003 1.000 1.256 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.349 1.583 5,915 2003 1.000 1.349 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.280 1.418 -- 2003 1.000 1.280 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.085 1.167 15,302 2003 1.000 1.085 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.187 1.294 -- 2003 1.000 1.187 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.110 1.179 -- 2003 1.000 1.110 --
28 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.992 0.980 -- 2003 0.998 0.992 -- AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.150 1.196 959 2003 1.091 1.150 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.125 1.250 923 2003 1.017 1.125 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.149 1.248 1,848 2003 1.019 1.149 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.221 1.332 -- 2003 1.163 1.221 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.215 1.409 35,367 2003 1.106 1.215 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.148 1.222 -- 2003 1.090 1.148 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.151 1.200 955 2003 1.082 1.151 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.265 1.472 1,564 2003 1.030 1.265 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.982 0.990 2,326 2003 0.971 0.982 --
29 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.044 1.068 -- 2003 1.005 1.044 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.372 1.593 -- 2003 1.157 1.372 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.111 1.261 -- 2003 1.034 1.111 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.193 1.379 -- 2003 1.025 1.193 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.131 1.227 -- 2003 1.004 1.131 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.086 1.129 -- 2003 1.060 1.086 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.081 1.139 -- 2003 0.993 1.081 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.197 1.387 -- 2003 1.066 1.197 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.200 1.430 1,619 2003 1.080 1.200 -- Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.090 2,106 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.996 1,156
30 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.068 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.211 1.603 -- 2003 1.050 1.211 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.207 1.416 -- 2003 1.118 1.207 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.173 1.299 -- 2003 1.049 1.173 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.044 1.123 3,074 2003 0.987 1.044 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.119 1.219 -- 2003 1.039 1.119 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.052 1.117 3,088 2003 0.972 1.052 --
31 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 1.000 0.991 -- AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.000 1.062 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.000 1.101 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.000 1.088 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.000 1.107 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.153 2,400 Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.000 1.037 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.000 1.065 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.000 1.165 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 1.000 0.992 -- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.000 1.020 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.142 --
32 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.132 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.192 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.103 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.060 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.031 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.180 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.170 -- Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.089 -- Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.996 -- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.068 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.240 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.137 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.089 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.058 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.088 --
33 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.000 1.044 --
34 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.989 0.977 1,517,985 2003 1.000 0.989 212,768 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.219 1.267 231,839 2003 1.000 1.219 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.238 1.374 61,198 2003 1.000 1.238 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.210 1.312 412,137 2003 1.000 1.210 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.328 1.447 159,032 2003 1.000 1.328 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.331 1.542 259,760 2003 1.000 1.331 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.250 1.329 193,584 2003 1.000 1.250 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.227 1.278 143,986 2003 1.000 1.227 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.406 1.634 257,164 2003 1.000 1.406 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.991 0.997 378,667 2003 1.000 0.991 --
35 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.105 1.129 56,396 2003 1.000 1.105 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.503 1.743 221,462 2003 1.000 1.503 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.199 1.360 206,715 2003 1.000 1.199 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.277 1.475 57,687 2003 1.000 1.277 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.207 1.308 447,061 2003 1.000 1.207 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.148 1.193 28,890 2003 1.000 1.148 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.147 1.208 391,936 2003 1.000 1.147 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.283 1.485 154,680 2003 1.000 1.283 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.317 1.567 104,871 2003 1.000 1.317 2,410 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.089 226,868 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.996 151,439
36 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.067 103,436 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.255 1.660 118,824 2003 1.000 1.255 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.348 1.579 67,040 2003 1.000 1.348 2,360 Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.279 1.415 27,370 2003 1.000 1.279 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.084 1.165 890,221 2003 1.000 1.084 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.186 1.291 440,802 2003 1.000 1.186 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.109 1.176 39,985 2003 1.000 1.109 --
37 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 1.000 0.994 122,820 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.000 1.054 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.000 1.065 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.000 1.072 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.000 1.085 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.156 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.000 1.052 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.000 1.047 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.000 1.169 2,321 Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 1.000 1.032 -- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.000 1.026 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.295 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.125 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.177 --
38 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.090 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.081 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.085 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.170 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.143 5,968 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.000 1.070 6,264 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 1.000 0.992 -- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.000 1.010 5,339 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.308 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.154 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.000 1.108 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.000 1.098 3,638 Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.000 1.086 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.000 1.053 --
39 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Money Market Portfolio (8/03) 2004 0.988 0.973 275,155 2003 1.000 0.988 -- AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II (9/03) 2004 1.217 1.263 16,168 2003 1.000 1.217 -- AIM V.I. Mid Cap Core Equity Fund - Series II (8/03) 2004 1.237 1.370 3,183 2003 1.000 1.237 -- Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares (7/03) 2004 1.208 1.308 14,695 2003 1.000 1.208 -- Franklin Small Cap Fund - Class 2 Shares (9/03) 2004 1.326 1.442 10,525 2003 1.000 1.326 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.330 1.537 19,494 2003 1.000 1.330 -- Greenwich Street Series Fund Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (9/03) 2004 1.249 1.325 18,591 2003 1.000 1.249 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares (9/03) 2004 1.225 1.274 8,271 2003 1.000 1.225 -- Oppenheimer Global Securities Fund/VA - Service Shares (8/03) 2004 1.404 1.628 16,442 2003 1.000 1.404 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares (11/03) 2004 0.989 0.994 19,893 2003 1.000 0.989 --
40 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Balanced VCT Portfolio - Class II Shares (10/03) 2004 1.103 1.125 3,766 2003 1.000 1.103 -- Pioneer Emerging Markets VCT Portfolio - Class II Shares (9/03) 2004 1.501 1.737 15,206 2003 1.000 1.501 -- Pioneer Equity Income VCT Portfolio - Class II Shares (9/03) 2004 1.197 1.355 9,677 2003 1.000 1.197 -- Pioneer Europe VCT Portfolio - Class II Shares (9/03) 2004 1.275 1.470 5,245 2003 1.000 1.275 -- Pioneer Fund VCT Portfolio - Class II Shares (8/03) 2004 1.205 1.304 36,417 2003 1.000 1.205 -- Pioneer Growth Shares VCT Portfolio - Class II Shares (9/03) 2004 1.146 1.189 7,375 2003 1.000 1.146 -- Pioneer High Yield VCT Portfolio - Class II Shares (8/03) 2004 1.145 1.204 33,179 2003 1.000 1.145 -- Pioneer International Value VCT Portfolio - Class II Shares (9/03) 2004 1.282 1.480 4,585 2003 1.000 1.282 -- Pioneer Mid Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.315 1.562 19,694 2003 1.000 1.315 -- Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (5/04) 2004 1.020 1.087 24,687 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (5/04) 2004 0.969 0.994 4,896
41 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (4/04) 2004 1.069 1.066 -- Pioneer Real Estate Shares VCT Portfolio - Class II Shares (7/03) 2004 1.253 1.655 -- 2003 1.000 1.253 -- Pioneer Small Cap Value VCT Portfolio - Class II Shares (9/03) 2004 1.346 1.574 2,473 2003 1.000 1.346 -- Pioneer Small Company VCT Portfolio - Class II Shares (8/03) 2004 1.277 1.410 -- 2003 1.000 1.277 -- Pioneer Strategic Income VCT Portfolio - Class II Shares (7/03) 2004 1.082 1.161 45,232 2003 1.000 1.082 -- Pioneer Value VCT Portfolio - Class II Shares (9/03) 2004 1.184 1.287 20,017 2003 1.000 1.184 -- Salomon Brothers Variable Series Funds Inc. Total Return Fund - Class II (8/03) 2004 1.108 1.172 8,916 2003 1.000 1.108 --
NOTES The date next to each funding option's name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amount allocated to them or were not available as of December 31, 2004. "Number of Units outstanding at the end of the period" may include units for Contracts Owners in payout phase, where appropriate. If an accumulate unit value has no assets and units across all sub-accounts within the Separate Account, and has had no assets and units for the history displayed on the Condensed Financial Information in the past, then it may not be displayed. 42 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 1.70%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.215 1.428 38,929 2003 1.000 1.215 -- High Yield Bond Trust (6/04) 2004 0.990 1.062 180,567 Managed Assets Trust (5/04) 2004 0.981 1.060 160,497 Money Market Portfolio (8/03) 2004 0.993 0.987 1,116,721 2003 1.000 0.993 35,690 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.145 1.220 126,144 2003 1.000 1.145 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.319 1.471 189,860 2003 1.000 1.319 11,044 Growth Fund - Class 2 Shares (6/03) 2004 1.258 1.391 731,466 2003 1.000 1.258 38,751 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.256 1.362 496,368 2003 1.000 1.256 46,149 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.263 1.631 267,441 2003 1.000 1.263 21,207 Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.283 1.405 109,246 2003 1.000 1.283 5,436
43 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.170 1.209 38,401 2003 1.000 1.170 1,473 Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.206 1.336 89,029 2003 1.000 1.206 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.478 1.812 69,128 2003 1.000 1.478 1,493 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.337 1.558 493,997 2003 1.215 1.337 66,608 Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.326 1.513 300,326 2003 1.000 1.326 -- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.211 1.312 308,427 2003 1.000 1.211 4,842 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.272 1.365 61,992 2003 1.000 1.272 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.227 1.308 89,747 2003 1.000 1.227 19,180 Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.093 1.164 5,393 2003 1.000 1.093 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.191 1.337 -- 2003 1.000 1.191 --
44 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Global Technology Portfolio - Service Shares (8/03) 2004 1.385 1.369 -- 2003 1.000 1.385 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.253 1.287 -- 2003 1.000 1.253 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.333 1.506 53,737 2003 1.000 1.333 6,277 Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.242 1.375 74,664 2003 1.000 1.242 2,811 Mid-Cap Value Portfolio (6/03) 2004 1.257 1.533 150,240 2003 1.000 1.257 7,069 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.079 1.211 46,933 2003 1.000 1.079 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.072 1.209 30,049 2003 1.000 1.072 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.992 1.052 70,419 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.046 1.120 79,443 2003 1.000 1.046 9,049 Total Return Portfolio - Administrative Class (6/03) 2004 1.012 1.044 560,048 2003 1.000 1.012 75,253
45 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.292 1.476 -- 2003 1.000 1.292 3,031 Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.428 1.773 249,678 2003 1.000 1.428 -- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.309 1.394 97,867 2003 1.000 1.309 5,709 Investors Fund - Class I (8/03) 2004 1.273 1.381 33,775 2003 1.000 1.273 3,304 Large Cap Growth Fund - Class I (8/03) 2004 1.307 1.291 66,252 2003 1.000 1.307 1,666 Small Cap Growth Fund - Class I (7/03) 2004 1.429 1.617 111,799 2003 1.000 1.429 1,516 The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.140 1.191 108,887 2003 1.000 1.140 6,407 Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.298 1.487 84,403 2003 1.000 1.298 -- Equity Income Portfolio (9/03) 2004 1.234 1.333 313,026 2003 1.000 1.234 -- Federated High Yield Portfolio (7/03) 2004 1.108 1.202 66,227 2003 1.000 1.108 3,324 Federated Stock Portfolio (10/03) 2004 1.250 1.359 -- 2003 1.000 1.250 -- Large Cap Portfolio (11/03) 2004 1.188 1.244 61,414 2003 1.000 1.188 --
46 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard International Stock Portfolio (8/03) 2004 1.265 1.439 125,088 2003 1.000 1.265 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.160 1.322 28,878 2003 1.000 1.160 -- MFS Emerging Growth Portfolio (10/03) 2004 1.196 1.325 29,496 2003 1.000 1.196 -- MFS Mid Cap Growth Portfolio (6/03) 2004 1.281 1.437 50,878 2003 1.000 1.281 1,686 MFS Value Portfolio (5/04) 2004 0.961 1.111 64,801 Pioneer Fund Portfolio (6/03) 2004 1.190 1.301 1,573 2003 1.000 1.190 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.045 9,310 Travelers Quality Bond Portfolio (6/03) 2004 1.014 1.030 182,690 2003 1.000 1.014 22,690 U.S. Government Securities Portfolio (7/04) 2004 1.003 1.046 47,201 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.225 1.282 66,201 2003 1.000 1.225 2,770 MFS Total Return Portfolio (6/03) 2004 1.125 1.233 520,821 2003 1.000 1.125 9,177 Pioneer Strategic Income Portfolio (5/04) 2004 0.971 1.085 132,431 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.998 0.993 73,090 2003 1.000 0.998 13,349 Strategic Equity Portfolio (8/03) 2004 1.228 1.330 39,400 2003 1.000 1.228 --
47 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.260 1.454 136,047 2003 1.000 1.260 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.187 1.211 -- 2003 1.000 1.187 -- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.239 1.402 233,917 2003 1.000 1.239 5,670 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.184 1.179 5,379 2003 1.000 1.184 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.410 1.728 315,931 2003 1.000 1.410 2,732
48 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.215 1.427 -- 2003 1.000 1.215 -- High Yield Bond Trust (6/04) 2004 0.990 1.062 -- Managed Assets Trust (5/04) 2004 0.981 1.060 3,195 Money Market Portfolio (8/03) 2004 0.993 0.986 -- 2003 1.000 0.993 -- AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.145 1.219 -- 2003 1.000 1.145 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.318 1.470 -- 2003 1.000 1.318 -- Growth Fund - Class 2 Shares (6/03) 2004 1.257 1.390 -- 2003 1.000 1.257 -- Growth-Income Fund - Class 2 Shares (6/03) 2004 1.255 1.361 -- 2003 1.000 1.255 -- Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.263 1.630 2,254 2003 1.000 1.263 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.283 1.404 -- 2003 1.000 1.283 -- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.170 1.208 -- 2003 1.000 1.170 --
49 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.206 1.334 -- 2003 1.000 1.206 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.477 1.810 -- 2003 1.000 1.477 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.336 1.556 36,194 2003 1.215 1.336 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.326 1.512 -- 2003 1.000 1.326 -- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.210 1.311 -- 2003 1.000 1.210 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.272 1.363 -- 2003 1.000 1.272 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.227 1.307 -- 2003 1.000 1.227 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.093 1.163 -- 2003 1.000 1.093 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.190 1.336 -- 2003 1.000 1.190 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.384 1.368 -- 2003 1.000 1.384 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.252 1.286 -- 2003 1.000 1.252 --
50 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.333 1.504 -- 2003 1.000 1.333 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.241 1.374 -- 2003 1.000 1.241 -- Mid-Cap Value Portfolio (6/03) 2004 1.257 1.532 5,008 2003 1.000 1.257 -- Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.210 -- 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.072 1.208 -- 2003 1.000 1.072 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.992 1.052 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.045 1.119 -- 2003 1.000 1.045 -- Total Return Portfolio - Administrative Class (6/03) 2004 1.012 1.043 6,530 2003 1.000 1.012 -- Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.292 1.475 -- 2003 1.000 1.292 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.428 1.771 2,066 2003 1.000 1.428 --
51 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.309 1.393 -- 2003 1.000 1.309 -- Investors Fund - Class I (8/03) 2004 1.272 1.380 -- 2003 1.000 1.272 -- Large Cap Growth Fund - Class I (8/03) 2004 1.306 1.290 -- 2003 1.000 1.306 -- Small Cap Growth Fund - Class I (7/03) 2004 1.428 1.615 -- 2003 1.000 1.428 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.139 1.190 -- 2003 1.000 1.139 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.298 1.485 -- 2003 1.000 1.298 -- Equity Income Portfolio (9/03) 2004 1.233 1.332 -- 2003 1.000 1.233 -- Federated High Yield Portfolio (7/03) 2004 1.107 1.201 -- 2003 1.000 1.107 -- Federated Stock Portfolio (10/03) 2004 1.250 1.358 -- 2003 1.000 1.250 -- Large Cap Portfolio (11/03) 2004 1.187 1.243 5,822 2003 1.000 1.187 -- Lazard International Stock Portfolio (8/03) 2004 1.264 1.438 -- 2003 1.000 1.264 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.160 1.321 -- 2003 1.000 1.160 -- MFS Emerging Growth Portfolio (10/03) 2004 1.195 1.324 -- 2003 1.000 1.195 --
52 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.280 1.436 -- 2003 1.000 1.280 -- MFS Value Portfolio (5/04) 2004 0.961 1.110 -- Pioneer Fund Portfolio (6/03) 2004 1.190 1.299 -- 2003 1.000 1.190 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.045 -- Travelers Quality Bond Portfolio (6/03) 2004 1.014 1.029 -- 2003 1.000 1.014 -- U.S. Government Securities Portfolio (7/04) 2004 1.003 1.045 -- Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.224 1.281 -- 2003 1.000 1.224 -- MFS Total Return Portfolio (6/03) 2004 1.125 1.232 5,812 2003 1.000 1.125 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.971 1.084 -- SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.998 0.992 -- 2003 1.000 0.998 -- Strategic Equity Portfolio (8/03) 2004 1.227 1.329 -- 2003 1.000 1.227 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.259 1.453 -- 2003 1.000 1.259 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.186 1.210 -- 2003 1.000 1.186 --
53 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.238 1.401 -- 2003 1.000 1.238 -- Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.184 1.178 -- 2003 1.000 1.184 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.409 1.726 2,121 2003 1.000 1.409 --
54 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.214 1.423 1,749 2003 1.000 1.214 -- High Yield Bond Trust (6/04) 2004 0.990 1.060 66,598 Managed Assets Trust (5/04) 2004 0.981 1.059 49,466 Money Market Portfolio (8/03) 2004 0.992 0.983 747,359 2003 1.000 0.992 1,126 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.144 1.216 -- 2003 1.000 1.144 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.317 1.466 36,782 2003 1.000 1.317 3,650 Growth Fund - Class 2 Shares (6/03) 2004 1.256 1.387 153,257 2003 1.000 1.256 3,708 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.254 1.358 284,276 2003 1.000 1.254 -- Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.261 1.626 33,406 2003 1.000 1.261 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.282 1.400 9,592 2003 1.000 1.282 -- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.169 1.205 5,140 2003 1.000 1.169 --
55 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.204 1.331 20,572 2003 1.000 1.204 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.476 1.806 18,650 2003 1.000 1.476 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.335 1.553 187,836 2003 1.215 1.335 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.325 1.508 6,070 2003 1.000 1.325 -- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.209 1.308 228 2003 1.000 1.209 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.271 1.360 -- 2003 1.000 1.271 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.226 1.304 6,019 2003 1.000 1.226 4,498 Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.092 1.160 6,769 2003 1.000 1.092 4,105 Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.189 1.333 -- 2003 1.000 1.189 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.383 1.365 -- 2003 1.000 1.383 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.251 1.283 -- 2003 1.000 1.251 --
56 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.331 1.501 -- 2003 1.000 1.331 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.240 1.371 4,534 2003 1.000 1.240 -- Mid-Cap Value Portfolio (6/03) 2004 1.255 1.528 37,728 2003 1.000 1.255 -- Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.208 31,768 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.072 1.206 34,501 2003 1.000 1.072 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.992 1.051 31,878 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.044 1.116 9,422 2003 1.000 1.044 1,491 Total Return Portfolio - Administrative Class (6/03) 2004 1.011 1.040 75,474 2003 1.000 1.011 2,745 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.291 1.471 -- 2003 1.000 1.291 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.427 1.767 31,962 2003 1.000 1.427 3,895
57 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.308 1.390 16,740 2003 1.000 1.308 3,626 Investors Fund - Class I (8/03) 2004 1.271 1.377 15,274 2003 1.000 1.271 -- Large Cap Growth Fund - Class I (8/03) 2004 1.305 1.287 6,453 2003 1.000 1.305 -- Small Cap Growth Fund - Class I (7/03) 2004 1.427 1.611 16,091 2003 1.000 1.427 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.138 1.187 7,799 2003 1.000 1.138 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.297 1.482 31,303 2003 1.000 1.297 -- Equity Income Portfolio (9/03) 2004 1.232 1.328 56,633 2003 1.000 1.232 -- Federated High Yield Portfolio (7/03) 2004 1.106 1.198 49,034 2003 1.000 1.106 -- Federated Stock Portfolio (10/03) 2004 1.248 1.354 14,652 2003 1.000 1.248 -- Large Cap Portfolio (11/03) 2004 1.186 1.240 14,801 2003 1.000 1.186 -- Lazard International Stock Portfolio (8/03) 2004 1.263 1.435 29,191 2003 1.000 1.263 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.159 1.318 50,116 2003 1.000 1.159 -- MFS Emerging Growth Portfolio (10/03) 2004 1.194 1.321 6,476 2003 1.000 1.194 --
58 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.279 1.432 5,006 2003 1.000 1.279 4,097 MFS Value Portfolio (5/04) 2004 0.961 1.109 91,359 Pioneer Fund Portfolio (6/03) 2004 1.189 1.296 6,200 2003 1.000 1.189 3,919 Social Awareness Stock Portfolio (5/04) 2004 0.945 1.044 17,765 Travelers Quality Bond Portfolio (6/03) 2004 1.013 1.027 29,044 2003 1.000 1.013 4,268 U.S. Government Securities Portfolio (7/04) 2004 1.002 1.044 51,413 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.223 1.278 29,462 2003 1.000 1.223 -- MFS Total Return Portfolio (6/03) 2004 1.124 1.229 191,205 2003 1.000 1.124 13,777 Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.083 65,593 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.998 0.990 10,163 2003 1.000 0.998 -- Strategic Equity Portfolio (8/03) 2004 1.226 1.326 20,021 2003 1.000 1.226 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.258 1.450 13,821 2003 1.000 1.258 3,744 Enterprise Portfolio - Class II Shares (10/03) 2004 1.185 1.207 -- 2003 1.000 1.185 --
59 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.237 1.398 29,571 2003 1.000 1.237 3,789 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.183 1.175 3,414 2003 1.000 1.183 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.408 1.722 79,153 2003 1.000 1.408 --
60 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.213 1.422 599,737 2003 1.000 1.213 -- High Yield Bond Trust (6/04) 2004 0.990 1.060 319,927 Managed Assets Trust (5/04) 2004 0.981 1.058 330,502 Money Market Portfolio (8/03) 2004 0.992 0.982 1,734,183 2003 1.000 0.992 209,193 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.143 1.215 469,252 2003 1.000 1.143 87,307 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.316 1.465 1,971,785 2003 1.000 1.316 65,426 Growth Fund - Class 2 Shares (6/03) 2004 1.256 1.385 6,624,019 2003 1.000 1.256 122,741 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.253 1.357 5,706,279 2003 1.000 1.253 43,217 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.261 1.624 1,122,483 2003 1.000 1.261 44,975 Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.281 1.399 1,346,712 2003 1.000 1.281 28,075 Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.168 1.204 416,115 2003 1.000 1.168 109,773
61 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.204 1.330 826,447 2003 1.000 1.204 22,515 Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.475 1.804 830,664 2003 1.000 1.475 1,590 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.334 1.551 868,465 2003 1.214 1.334 104,988 Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.324 1.506 1,231,639 2003 1.000 1.324 45,353 Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.209 1.307 2,659,892 2003 1.000 1.209 158,338 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.270 1.359 1,053,751 2003 1.000 1.270 19,886 Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.225 1.302 495,859 2003 1.000 1.225 17,948 Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.092 1.159 169,513 2003 1.000 1.092 37,800 Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.189 1.332 95,391 2003 1.000 1.189 8,070 Global Technology Portfolio - Service Shares (8/03) 2004 1.382 1.363 169,660 2003 1.000 1.382 3,172 Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.250 1.282 37,523 2003 1.000 1.250 23,765
62 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.331 1.499 857,206 2003 1.000 1.331 23,413 Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.240 1.370 1,520,644 2003 1.000 1.240 115,681 Mid-Cap Value Portfolio (6/03) 2004 1.255 1.527 1,303,438 2003 1.000 1.255 80,924 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.208 332,079 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.071 1.206 561,404 2003 1.000 1.071 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.992 1.050 378,303 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.044 1.115 1,976,057 2003 1.000 1.044 261,423 Total Return Portfolio - Administrative Class (6/03) 2004 1.010 1.039 3,393,587 2003 1.000 1.010 289,491 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.290 1.470 141,582 2003 1.000 1.290 58,031 Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.426 1.765 971,208 2003 1.000 1.426 52,490
63 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.307 1.388 896,442 2003 1.000 1.307 26,477 Investors Fund - Class I (8/03) 2004 1.271 1.375 699,397 2003 1.000 1.271 3,339 Large Cap Growth Fund - Class I (8/03) 2004 1.305 1.286 689,281 2003 1.000 1.305 31,437 Small Cap Growth Fund - Class I (7/03) 2004 1.426 1.610 771,298 2003 1.000 1.426 132,722 The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.138 1.186 627,967 2003 1.000 1.138 17,795 Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.296 1.480 774,866 2003 1.000 1.296 29,961 Equity Income Portfolio (9/03) 2004 1.232 1.327 1,629,066 2003 1.000 1.232 71,218 Federated High Yield Portfolio (7/03) 2004 1.106 1.197 1,035,075 2003 1.000 1.106 199,446 Federated Stock Portfolio (10/03) 2004 1.248 1.353 154,663 2003 1.000 1.248 -- Large Cap Portfolio (11/03) 2004 1.186 1.238 518,477 2003 1.000 1.186 -- Lazard International Stock Portfolio (8/03) 2004 1.263 1.433 353,043 2003 1.000 1.263 12,218 Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.158 1.316 188,089 2003 1.000 1.158 23,203 MFS Emerging Growth Portfolio (10/03) 2004 1.194 1.320 424,080 2003 1.000 1.194 41,150
64 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.279 1.431 319,453 2003 1.000 1.279 51,741 MFS Value Portfolio (5/04) 2004 0.961 1.109 310,303 Pioneer Fund Portfolio (6/03) 2004 1.188 1.295 105,715 2003 1.000 1.188 5,784 Social Awareness Stock Portfolio (5/04) 2004 0.945 1.043 183,909 Travelers Quality Bond Portfolio (6/03) 2004 1.013 1.026 1,717,034 2003 1.000 1.013 122,184 U.S. Government Securities Portfolio (7/04) 2004 1.002 1.044 432,527 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.223 1.277 411,722 2003 1.000 1.223 12,633 MFS Total Return Portfolio (6/03) 2004 1.123 1.228 4,827,696 2003 1.000 1.123 374,060 Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.083 994,140 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.998 0.990 347,136 2003 1.000 0.998 -- Strategic Equity Portfolio (8/03) 2004 1.225 1.325 129,321 2003 1.000 1.225 20,681 Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.258 1.448 1,422,858 2003 1.000 1.258 134,028 Enterprise Portfolio - Class II Shares (10/03) 2004 1.185 1.206 86,646 2003 1.000 1.185 20,751
65 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.237 1.396 2,101,242 2003 1.000 1.237 43,662 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.182 1.174 209,768 2003 1.000 1.182 100,949 Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.407 1.720 1,959,110 2003 1.000 1.407 29,632
66 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.000 1.171 63,661 High Yield Bond Trust (6/04) 2004 1.007 1.078 77,695 Managed Assets Trust (5/04) 2004 1.000 1.073 8,796 Money Market Portfolio (8/03) 2004 1.000 0.996 57,824 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.000 1.060 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.115 36,102 Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.088 184,806 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.000 1.067 205,206 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.000 1.290 226,453 Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.000 1.095 87,418 Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.000 1.024 11,289 Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.102 25,433 Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.264 26,697 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.158 40,221 Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.121 73,293
67 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.000 1.072 214,446 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.000 1.056 62,522 Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.000 1.067 34,220 Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.000 1.070 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.000 1.040 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.000 1.054 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.000 1.089 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.000 1.128 29,978 Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.000 1.101 36,909 Mid-Cap Value Portfolio (6/03) 2004 1.000 1.162 10,727 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.000 1.119 2,018 Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.000 1.121 2,171 Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 1.000 1.064 424,626 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.000 1.069 50,014
68 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Total Return Portfolio - Administrative Class (6/03) 2004 1.000 1.046 481,867 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.000 1.161 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.000 1.195 72,299 Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.000 1.059 56,696 Investors Fund - Class I (8/03) 2004 1.000 1.081 37,417 Large Cap Growth Fund - Class I (8/03) 2004 1.000 0.992 75,803 Small Cap Growth Fund - Class I (7/03) 2004 1.000 1.168 102,886 The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.000 1.044 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.000 1.121 20,369 Equity Income Portfolio (9/03) 2004 1.000 1.104 27,594 Federated High Yield Portfolio (7/03) 2004 1.000 1.080 33,286 Federated Stock Portfolio (10/03) 2004 1.000 1.081 -- Large Cap Portfolio (11/03) 2004 1.000 1.050 118,396 Lazard International Stock Portfolio (8/03) 2004 1.000 1.147 35,228 Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.000 1.126 -- MFS Emerging Growth Portfolio (10/03) 2004 1.000 1.083 38,923 MFS Mid Cap Growth Portfolio (6/03) 2004 1.000 1.075 125,343 MFS Value Portfolio (5/04) 2004 1.000 1.128 94,777
69 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Fund Portfolio (6/03) 2004 1.000 1.095 -- Social Awareness Stock Portfolio (5/04) 2004 1.000 1.077 9,403 Travelers Quality Bond Portfolio (6/03) 2004 1.000 1.033 395,013 U.S. Government Securities Portfolio (7/04) 2004 1.032 1.074 76,753 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.000 1.056 39,478 MFS Total Return Portfolio (6/03) 2004 1.000 1.097 65,059 Pioneer Strategic Income Portfolio (5/04) 2004 1.000 1.106 24,047 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 1.000 0.999 12,568 Strategic Equity Portfolio (8/03) 2004 1.000 1.100 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.000 1.133 94,256 Enterprise Portfolio - Class II Shares (10/03) 2004 1.000 1.039 -- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.000 1.109 119,920 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.000 1.042 6,188 Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.000 1.229 87,466
70 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.212 1.419 104,463 2003 1.000 1.212 -- High Yield Bond Trust (6/04) 2004 0.990 1.059 132,910 Managed Assets Trust (5/04) 2004 0.981 1.057 262,512 Money Market Portfolio (8/03) 2004 0.991 0.980 1,392,585 2003 1.000 0.991 72,439 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.142 1.212 302,997 2003 1.000 1.142 40,785 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.315 1.461 892,275 2003 1.000 1.315 12,605 Growth Fund - Class 2 Shares (6/03) 2004 1.255 1.382 2,602,616 2003 1.000 1.255 83,113 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.252 1.353 2,605,912 2003 1.000 1.252 26,953 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.260 1.621 560,197 2003 1.000 1.260 47,454 Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.280 1.395 641,267 2003 1.000 1.280 21,213 Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.167 1.201 65,019 2003 1.000 1.167 5,498
71 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.203 1.327 412,350 2003 1.000 1.203 17,717 Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.474 1.800 292,718 2003 1.000 1.474 3,398 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.333 1.547 840,583 2003 1.214 1.333 14,359 Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.323 1.503 797,277 2003 1.000 1.323 1,243 Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.208 1.304 877,263 2003 1.000 1.208 37,287 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.269 1.356 442,525 2003 1.000 1.269 16,040 Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.224 1.299 112,911 2003 1.000 1.224 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.090 1.156 52,966 2003 1.000 1.090 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.188 1.328 33,248 2003 1.000 1.188 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.381 1.360 39,464 2003 1.000 1.381 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.249 1.279 40,007 2003 1.000 1.249 --
72 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.330 1.496 242,441 2003 1.000 1.330 22,520 Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.239 1.366 904,055 2003 1.000 1.239 34,800 Mid-Cap Value Portfolio (6/03) 2004 1.254 1.523 645,257 2003 1.000 1.254 7,892 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.206 415,902 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.071 1.204 523,507 2003 1.000 1.071 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.049 91,380 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.043 1.112 771,777 2003 1.000 1.043 28,541 Total Return Portfolio - Administrative Class (6/03) 2004 1.009 1.037 1,700,787 2003 1.000 1.009 81,011 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.289 1.466 29,664 2003 1.000 1.289 3,747 Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.425 1.761 384,308 2003 1.000 1.425 37,938
73 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.306 1.385 416,678 2003 1.000 1.306 55,335 Investors Fund - Class I (8/03) 2004 1.269 1.372 144,040 2003 1.000 1.269 25,320 Large Cap Growth Fund - Class I (8/03) 2004 1.303 1.283 218,005 2003 1.000 1.303 6,042 Small Cap Growth Fund - Class I (7/03) 2004 1.425 1.606 234,089 2003 1.000 1.425 20,906 The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.137 1.183 507,688 2003 1.000 1.137 150,302 Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.295 1.477 171,731 2003 1.000 1.295 3,737 Equity Income Portfolio (9/03) 2004 1.230 1.324 484,669 2003 1.000 1.230 -- Federated High Yield Portfolio (7/03) 2004 1.105 1.194 498,004 2003 1.000 1.105 19,555 Federated Stock Portfolio (10/03) 2004 1.247 1.350 68,815 2003 1.000 1.247 26,121 Large Cap Portfolio (11/03) 2004 1.184 1.235 217,556 2003 1.000 1.184 -- Lazard International Stock Portfolio (8/03) 2004 1.262 1.430 206,669 2003 1.000 1.262 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.157 1.313 427,107 2003 1.000 1.157 -- MFS Emerging Growth Portfolio (10/03) 2004 1.193 1.316 100,698 2003 1.000 1.193 --
74 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.277 1.427 191,307 2003 1.000 1.277 14,628 MFS Value Portfolio (5/04) 2004 0.961 1.107 379,836 Pioneer Fund Portfolio (6/03) 2004 1.187 1.292 50,281 2003 1.000 1.187 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.042 11,831 Travelers Quality Bond Portfolio (6/03) 2004 1.012 1.023 559,067 2003 1.000 1.012 12,933 U.S. Government Securities Portfolio (7/04) 2004 1.002 1.043 83,114 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.221 1.274 150,776 2003 1.000 1.221 -- MFS Total Return Portfolio (6/03) 2004 1.122 1.225 1,998,244 2003 1.000 1.122 39,388 Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.082 417,054 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.997 0.988 307,958 2003 1.000 0.997 -- Strategic Equity Portfolio (8/03) 2004 1.224 1.321 68,643 2003 1.000 1.224 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.256 1.445 1,089,664 2003 1.000 1.256 50,511 Enterprise Portfolio - Class II Shares (10/03) 2004 1.183 1.203 3,938 2003 1.000 1.183 --
75 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.235 1.393 793,503 2003 1.000 1.235 29,165 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.181 1.171 90,277 2003 1.000 1.181 7,866 Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.406 1.716 736,376 2003 1.000 1.406 59,277
CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.212 1.417 -- 2003 1.000 1.212 -- High Yield Bond Trust (6/04) 2004 0.989 1.059 4,280 Managed Assets Trust (5/04) 2004 0.981 1.057 -- Money Market Portfolio (8/03) 2004 0.990 0.979 -- 2003 1.000 0.990 -- AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.142 1.211 -- 2003 1.000 1.142 --
76 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.315 1.460 65,170 2003 1.000 1.315 -- Growth Fund - Class 2 Shares (6/03) 2004 1.254 1.381 209,058 2003 1.000 1.254 5,869 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.252 1.352 250,388 2003 1.000 1.252 -- Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.259 1.619 14,722 2003 1.000 1.259 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.279 1.394 13,005 2003 1.000 1.279 5,778
77 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.167 1.199 16,134 2003 1.000 1.167 6,273 Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.202 1.325 -- 2003 1.000 1.202 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.473 1.798 -- 2003 1.000 1.473 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.333 1.546 58,808 2003 1.213 1.333 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.322 1.501 -- 2003 1.000 1.322 -- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.207 1.302 50,491 2003 1.000 1.207 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.268 1.354 378 2003 1.000 1.268 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.224 1.298 -- 2003 1.000 1.224 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.090 1.155 6,465 2003 1.000 1.090 6,474 Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.187 1.327 -- 2003 1.000 1.187 --
78 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Global Technology Portfolio - Service Shares (8/03) 2004 1.381 1.359 -- 2003 1.000 1.381 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.249 1.277 -- 2003 1.000 1.249 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.329 1.494 45,418 2003 1.000 1.329 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.238 1.365 65,061 2003 1.000 1.238 -- Mid-Cap Value Portfolio (6/03) 2004 1.253 1.521 73,136 2003 1.000 1.253 -- Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.205 -- 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.071 1.203 1,648 2003 1.000 1.071 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.049 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.042 1.111 37,955 2003 1.000 1.042 -- Total Return Portfolio - Administrative Class (6/03) 2004 1.009 1.036 135,135 2003 1.000 1.009 --
79 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.288 1.465 -- 2003 1.000 1.288 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.424 1.759 90,101 2003 1.000 1.424 -- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.305 1.384 -- 2003 1.000 1.305 -- Investors Fund - Class I (8/03) 2004 1.269 1.371 -- 2003 1.000 1.269 -- Large Cap Growth Fund - Class I (8/03) 2004 1.303 1.282 3,660 2003 1.000 1.303 -- Small Cap Growth Fund - Class I (7/03) 2004 1.424 1.605 -- 2003 1.000 1.424 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.136 1.182 17,979 2003 1.000 1.136 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.294 1.475 -- 2003 1.000 1.294 -- Equity Income Portfolio (9/03) 2004 1.230 1.323 -- 2003 1.000 1.230 -- Federated High Yield Portfolio (7/03) 2004 1.104 1.193 57,670 2003 1.000 1.104 -- Federated Stock Portfolio (10/03) 2004 1.246 1.348 -- 2003 1.000 1.246 -- Large Cap Portfolio (11/03) 2004 1.184 1.234 -- 2003 1.000 1.184 --
80 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard International Stock Portfolio (8/03) 2004 1.261 1.429 -- 2003 1.000 1.261 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.157 1.312 3,711 2003 1.000 1.157 -- MFS Emerging Growth Portfolio (10/03) 2004 1.192 1.315 -- 2003 1.000 1.192 -- MFS Mid Cap Growth Portfolio (6/03) 2004 1.277 1.426 -- 2003 1.000 1.277 -- MFS Value Portfolio (5/04) 2004 0.961 1.107 -- Pioneer Fund Portfolio (6/03) 2004 1.187 1.291 -- 2003 1.000 1.187 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.042 -- Travelers Quality Bond Portfolio (6/03) 2004 1.011 1.022 104,938 2003 1.000 1.011 -- U.S. Government Securities Portfolio (7/04) 2004 1.002 1.043 -- Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.221 1.273 18,594 2003 1.000 1.221 -- MFS Total Return Portfolio (6/03) 2004 1.122 1.224 9,678 2003 1.000 1.122 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.081 -- SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.997 0.987 -- 2003 1.000 0.997 -- Strategic Equity Portfolio (8/03) 2004 1.224 1.320 -- 2003 1.000 1.224 --
81 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.256 1.443 -- 2003 1.000 1.256 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.183 1.202 -- 2003 1.000 1.183 -- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.235 1.392 -- 2003 1.000 1.235 -- Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.181 1.170 -- 2003 1.000 1.181 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.405 1.715 64,896 2003 1.000 1.405 --
82 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.134 1.326 65,584 2003 1.039 1.134 -- High Yield Bond Trust (6/04) 2004 0.989 1.058 61,838 Managed Assets Trust (5/04) 2004 0.981 1.057 -- Money Market Portfolio (8/03) 2004 0.992 0.980 -- 2003 0.998 0.992 -- AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.102 1.168 -- 2003 1.000 1.102 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.206 1.339 29,918 2003 1.000 1.206 -- Growth Fund - Class 2 Shares (6/03) 2004 1.152 1.268 125,978 2003 1.000 1.152 -- Growth-Income Fund - Class 2 Shares (6/03) 2004 1.149 1.241 111,451 2003 1.000 1.149 -- Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.213 1.559 74,029 2003 1.064 1.213 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.186 1.292 50,940 2003 1.062 1.186 -- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.089 1.119 11,846 2003 1.000 1.089 --
83 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.124 1.238 3,525 2003 1.008 1.124 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.328 1.620 3,969 2003 1.094 1.328 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.215 1.409 35,367 2003 1.106 1.215 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.184 1.344 40,440 2003 1.021 1.184 -- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.124 1.213 48,594 2003 1.000 1.124 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.154 1.232 77,188 2003 1.023 1.154 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.127 1.195 21,267 2003 1.053 1.127 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.051 1.114 -- 2003 1.000 1.051 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.111 1.242 -- 2003 1.022 1.111 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.238 1.217 1,759 2003 1.137 1.238 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.145 1.171 -- 2003 1.010 1.145 --
84 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.228 1.380 1,848 2003 1.062 1.228 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.153 1.270 2,656 2003 1.022 1.153 -- Mid-Cap Value Portfolio (6/03) 2004 1.163 1.411 30,770 2003 1.000 1.163 -- Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.080 1.204 13,789 Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.123 1.202 33,250 Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.048 154,823 PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 0.992 1.057 56,526 2003 1.000 0.992 -- Total Return Portfolio - Administrative Class (6/03) 2004 0.986 1.011 190,746 2003 1.000 0.986 -- Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.181 1.342 -- 2003 1.039 1.181 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.275 1.574 40,231 2003 1.000 1.275 --
85 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.182 1.253 86,014 2003 1.000 1.182 -- Investors Fund - Class I (8/03) 2004 1.137 1.228 15,160 2003 1.004 1.137 -- Large Cap Growth Fund - Class I (8/03) 2004 1.181 1.161 22,729 2003 1.035 1.181 -- Small Cap Growth Fund - Class I (7/03) 2004 1.275 1.436 28,437 2003 1.084 1.275 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.082 1.125 243 2003 1.019 1.082 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.190 1.355 18,697 2003 1.081 1.190 -- Equity Income Portfolio (9/03) 2004 1.143 1.228 50,698 2003 1.056 1.143 -- Federated High Yield Portfolio (7/03) 2004 1.069 1.155 22,125 2003 1.005 1.069 -- Federated Stock Portfolio (10/03) 2004 1.135 1.227 29,646 2003 1.012 1.135 -- Large Cap Portfolio (11/03) 2004 1.126 1.174 33,560 2003 1.083 1.126 -- Lazard International Stock Portfolio (8/03) 2004 1.167 1.321 16,678 2003 1.008 1.167 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.085 1.230 8,859 2003 0.993 1.085 -- MFS Emerging Growth Portfolio (10/03) 2004 1.107 1.221 4,142 2003 1.077 1.107 --
86 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.161 1.296 30,567 2003 1.000 1.161 -- MFS Value Portfolio (5/04) 2004 0.961 1.107 25,801 Pioneer Fund Portfolio (6/03) 2004 1.126 1.224 -- 2003 1.000 1.126 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.042 -- Travelers Quality Bond Portfolio (6/03) 2004 0.989 1.000 225,445 2003 1.000 0.989 -- U.S. Government Securities Portfolio (7/04) 2004 1.002 1.042 51,060 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.152 1.201 -- 2003 1.075 1.152 -- MFS Total Return Portfolio (6/03) 2004 1.060 1.155 39,021 2003 1.000 1.060 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.081 -- SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.997 0.987 27,520 2003 0.997 0.997 -- Strategic Equity Portfolio (8/03) 2004 1.140 1.229 -- 2003 1.062 1.140 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.137 1.306 -- 2003 1.000 1.137 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.123 1.140 -- 2003 1.064 1.123 --
87 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.161 1.308 18,589 2003 1.000 1.161 -- Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.095 1.085 -- 2003 1.021 1.095 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.267 1.545 65,385 2003 1.126 1.267 --
88 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.000 1.163 -- High Yield Bond Trust (6/04) 2004 0.989 1.058 1,669 Managed Assets Trust (5/04) 2004 0.981 1.056 -- Money Market Portfolio (8/03) 2004 1.000 0.991 -- AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.000 1.084 -- American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.118 -- Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.101 -- Growth-Income Fund - Class 2 Shares (6/03) 2004 1.000 1.077 3,331 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.000 1.202 766 Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.000 1.055 -- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.000 1.034 -- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.087 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.180 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.153 2,400 Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.135 --
89 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.000 1.087 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.000 1.040 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.000 1.076 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.000 1.061 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.000 1.065 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.000 1.017 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.000 1.024 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.000 1.115 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.000 1.105 -- Mid-Cap Value Portfolio (6/03) 2004 1.000 1.184 2,336 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 0.999 1.113 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.000 1.097 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.048 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.000 1.020 1,736
90 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Total Return Portfolio - Administrative Class (6/03) 2004 1.000 1.003 -- Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.000 1.150 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.000 1.180 1,569 Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.000 1.053 -- Investors Fund - Class I (8/03) 2004 1.000 1.068 -- Large Cap Growth Fund - Class I (8/03) 2004 1.000 1.004 -- Small Cap Growth Fund - Class I (7/03) 2004 1.000 1.120 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.000 1.031 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.000 1.116 -- Equity Income Portfolio (9/03) 2004 1.000 1.097 -- Federated High Yield Portfolio (7/03) 2004 1.000 1.065 -- Federated Stock Portfolio (10/03) 2004 1.000 1.085 -- Large Cap Portfolio (11/03) 2004 1.000 1.058 -- Lazard International Stock Portfolio (8/03) 2004 1.000 1.139 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.000 1.118 -- MFS Emerging Growth Portfolio (10/03) 2004 1.000 1.100 -- MFS Mid Cap Growth Portfolio (6/03) 2004 1.000 1.098 -- MFS Value Portfolio (5/04) 2004 0.961 1.106 --
91 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Fund Portfolio (6/03) 2004 1.000 1.107 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.041 -- Travelers Quality Bond Portfolio (6/03) 2004 1.000 0.992 -- U.S. Government Securities Portfolio (7/04) 2004 1.002 1.042 -- Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.000 1.063 -- MFS Total Return Portfolio (6/03) 2004 1.000 1.080 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.081 -- SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 1.000 0.990 -- Strategic Equity Portfolio (8/03) 2004 1.000 1.101 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.000 1.135 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.000 1.043 -- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.000 1.128 2,416 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.000 1.032 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.000 1.199 --
92 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.210 1.414 21,556 2003 1.000 1.210 -- High Yield Bond Trust (6/04) 2004 0.989 1.058 8,024 Managed Assets Trust (5/04) 2004 0.981 1.056 78,925 Money Market Portfolio (8/03) 2004 0.989 0.977 1,517,985 2003 1.000 0.989 212,768 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.141 1.208 77,942 2003 1.000 1.141 12,824 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.313 1.457 143,383 2003 1.000 1.313 19,633 Growth Fund - Class 2 Shares (6/03) 2004 1.253 1.377 644,130 2003 1.000 1.253 32,809 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.250 1.349 566,607 2003 1.000 1.250 76,884 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.258 1.615 560,857 2003 1.000 1.258 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.278 1.391 65,621 2003 1.000 1.278 -- Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.166 1.197 49,954 2003 1.000 1.166 --
93 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.201 1.322 141,873 2003 1.000 1.201 42,877 Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.472 1.794 65,791 2003 1.000 1.472 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.331 1.542 259,760 2003 1.213 1.331 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.321 1.498 42,469 2003 1.000 1.321 19,698 Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.206 1.299 98,677 2003 1.000 1.206 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.267 1.351 52,642 2003 1.000 1.267 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.223 1.295 -- 2003 1.000 1.223 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.089 1.153 16,913 2003 1.000 1.089 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.186 1.324 18,974 2003 1.000 1.186 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.379 1.355 6,427 2003 1.000 1.379 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.248 1.274 -- 2003 1.000 1.248 --
94 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.328 1.491 90,840 2003 1.000 1.328 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.237 1.362 215,646 2003 1.000 1.237 -- Mid-Cap Value Portfolio (6/03) 2004 1.252 1.518 196,614 2003 1.000 1.252 12,278 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.203 131,244 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.071 1.201 97,797 2003 1.000 1.071 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.048 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.041 1.108 135,276 2003 1.000 1.041 -- Total Return Portfolio - Administrative Class (6/03) 2004 1.008 1.033 279,803 2003 1.000 1.008 68,242 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.287 1.462 9,265 2003 1.000 1.287 8,464 Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.423 1.755 719,606 2003 1.000 1.423 18,683
95 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.304 1.380 3,351 2003 1.000 1.304 -- Investors Fund - Class I (8/03) 2004 1.268 1.367 120,062 2003 1.000 1.268 -- Large Cap Growth Fund - Class I (8/03) 2004 1.302 1.279 77,833 2003 1.000 1.302 -- Small Cap Growth Fund - Class I (7/03) 2004 1.423 1.601 88,716 2003 1.000 1.423 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.135 1.179 95,891 2003 1.000 1.135 11,348 Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.293 1.472 49,334 2003 1.000 1.293 -- Equity Income Portfolio (9/03) 2004 1.229 1.320 35,278 2003 1.000 1.229 -- Federated High Yield Portfolio (7/03) 2004 1.103 1.190 147,687 2003 1.000 1.103 11,662 Federated Stock Portfolio (10/03) 2004 1.245 1.345 -- 2003 1.000 1.245 -- Large Cap Portfolio (11/03) 2004 1.183 1.231 12,695 2003 1.000 1.183 8,694 Lazard International Stock Portfolio (8/03) 2004 1.260 1.425 72,407 2003 1.000 1.260 41,364 Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.156 1.309 61,424 2003 1.000 1.156 8,818 MFS Emerging Growth Portfolio (10/03) 2004 1.191 1.312 12,699 2003 1.000 1.191 --
96 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.276 1.422 39,526 2003 1.000 1.276 23,267 MFS Value Portfolio (5/04) 2004 0.961 1.106 58,987 Pioneer Fund Portfolio (6/03) 2004 1.186 1.288 14,897 2003 1.000 1.186 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.041 3,300 Travelers Quality Bond Portfolio (6/03) 2004 1.010 1.020 308,862 2003 1.000 1.010 56,488 U.S. Government Securities Portfolio (7/04) 2004 1.002 1.041 2,927 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.220 1.270 47,755 2003 1.000 1.220 -- MFS Total Return Portfolio (6/03) 2004 1.121 1.221 470,295 2003 1.000 1.121 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.080 231,897 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.997 0.985 374,315 2003 1.000 0.997 -- Strategic Equity Portfolio (8/03) 2004 1.223 1.317 12,146 2003 1.000 1.223 11,483 Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.255 1.440 80,157 2003 1.000 1.255 41,132 Enterprise Portfolio - Class II Shares (10/03) 2004 1.182 1.199 -- 2003 1.000 1.182 --
97 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.234 1.388 120,583 2003 1.000 1.234 8,318 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.179 1.167 7,492 2003 1.000 1.179 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.404 1.710 101,252 2003 1.000 1.404 7,534
98 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.000 1.169 19,487 High Yield Bond Trust (6/04) 2004 1.007 1.076 13,701 Managed Assets Trust (5/04) 2004 1.000 1.071 -- Money Market Portfolio (8/03) 2004 1.000 0.994 122,820 AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.000 1.058 6,266 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.113 49,935 Growth Fund - Class 2 Shares (6/03) 2004 1.000 1.086 52,497 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.000 1.065 242,590 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.000 1.287 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.000 1.093 12,455 Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.000 1.022 11,107 Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.100 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.261 6,091 Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.000 1.156 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.000 1.119 20,151
99 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.000 1.070 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.000 1.054 -- Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.000 1.065 4,371 Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.000 1.068 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.000 1.038 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.000 1.052 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.000 1.087 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.000 1.125 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.000 1.099 30,970 Mid-Cap Value Portfolio (6/03) 2004 1.000 1.160 23,358 Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.000 1.116 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.000 1.119 10,114 Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 1.000 1.062 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.000 1.067 42,235
100 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Total Return Portfolio - Administrative Class (6/03) 2004 1.000 1.044 62,023 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.000 1.159 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.000 1.193 18,970 Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.000 1.057 -- Investors Fund - Class I (8/03) 2004 1.000 1.079 -- Large Cap Growth Fund - Class I (8/03) 2004 1.000 0.990 -- Small Cap Growth Fund - Class I (7/03) 2004 1.000 1.166 7,372 The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.000 1.042 -- Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.000 1.119 -- Equity Income Portfolio (9/03) 2004 1.000 1.102 2,095 Federated High Yield Portfolio (7/03) 2004 1.000 1.078 18,452 Federated Stock Portfolio (10/03) 2004 1.000 1.079 4,285 Large Cap Portfolio (11/03) 2004 1.000 1.048 10,882 Lazard International Stock Portfolio (8/03) 2004 1.000 1.145 5,671 Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.000 1.124 -- MFS Emerging Growth Portfolio (10/03) 2004 1.000 1.081 14,708 MFS Mid Cap Growth Portfolio (6/03) 2004 1.000 1.073 -- MFS Value Portfolio (5/04) 2004 1.000 1.126 --
101 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Pioneer Fund Portfolio (6/03) 2004 1.000 1.093 -- Social Awareness Stock Portfolio (5/04) 2004 1.000 1.075 -- Travelers Quality Bond Portfolio (6/03) 2004 1.000 1.031 16,224 U.S. Government Securities Portfolio (7/04) 2004 1.031 1.072 24,703 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.000 1.054 4,416 MFS Total Return Portfolio (6/03) 2004 1.000 1.095 10,404 Pioneer Strategic Income Portfolio (5/04) 2004 1.000 1.103 36,748 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 1.000 0.997 38,697 Strategic Equity Portfolio (8/03) 2004 1.000 1.097 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.000 1.131 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.000 1.037 -- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.000 1.107 28,719 Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.000 1.040 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.000 1.227 23,433
102 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Capital Appreciation Fund (8/03) 2004 1.209 1.409 12,785 2003 1.000 1.209 -- High Yield Bond Trust (6/04) 2004 0.989 1.056 5,932 Managed Assets Trust (5/04) 2004 0.981 1.054 -- Money Market Portfolio (8/03) 2004 0.988 0.973 275,155 2003 1.000 0.988 -- AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B (6/03) 2004 1.139 1.204 6,543 2003 1.000 1.139 6,103 American Funds Insurance Series Global Growth Fund - Class 2 Shares (6/03) 2004 1.312 1.452 109,939 2003 1.000 1.312 -- Growth Fund - Class 2 Shares (6/03) 2004 1.251 1.373 364,182 2003 1.000 1.251 9,502 Growth-Income Fund - Class 2 Shares (6/03) 2004 1.249 1.344 154,796 2003 1.000 1.249 9,680 Delaware VIP Trust Delaware VIP REIT Series - Standard Class (8/03) 2004 1.256 1.610 64,123 2003 1.000 1.256 -- Dreyfus Variable Investment Fund Dreyfus Variable Investment Fund - Developing Leaders Portfolio - Initial Shares (7/03) 2004 1.276 1.386 23,828 2003 1.000 1.276 8,717 Dreyfus Variable Investment Fund - Appreciation Portfolio - Initial Shares (7/03) 2004 1.164 1.193 574 2003 1.000 1.164 --
103 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust Mutual Shares Securities Fund - Class 2 Shares (8/03) 2004 1.200 1.318 78,629 2003 1.000 1.200 -- Templeton Developing Markets Securities Fund - Class 2 Shares (8/03) 2004 1.470 1.788 20,786 2003 1.000 1.470 -- Templeton Foreign Securities Fund - Class 2 Shares (9/03) 2004 1.330 1.537 19,494 2003 1.212 1.330 -- Templeton Growth Securities Fund - Class 2 Shares (8/03) 2004 1.319 1.493 66,465 2003 1.000 1.319 4,120 Greenwich Street Series Fund Equity Index Portfolio - Class II Shares (5/03) 2004 1.204 1.295 98,157 2003 1.000 1.204 -- Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (8/03) 2004 1.265 1.347 75,088 2003 1.000 1.265 9,392 Salomon Brothers Variable Growth & Income Fund - Class I Shares (10/03) 2004 1.221 1.291 -- 2003 1.000 1.221 -- Janus Aspen Series Balanced Portfolio - Service Shares (6/03) 2004 1.088 1.149 -- 2003 1.000 1.088 -- Global Life Sciences Portfolio - Service Shares (8/03) 2004 1.184 1.319 -- 2003 1.000 1.184 -- Global Technology Portfolio - Service Shares (8/03) 2004 1.377 1.351 -- 2003 1.000 1.377 -- Worldwide Growth Portfolio - Service Shares (8/03) 2004 1.246 1.270 -- 2003 1.000 1.246 --
104 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio (8/03) 2004 1.326 1.486 39,933 2003 1.000 1.326 -- Lord Abbett Series Fund, Inc. Growth and Income Portfolio (8/03) 2004 1.235 1.357 77,834 2003 1.000 1.235 -- Mid-Cap Value Portfolio (6/03) 2004 1.250 1.513 44,269 2003 1.000 1.250 -- Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III (4/04) 2004 1.078 1.200 79,749 2003 1.000 1.078 -- Merrill Lynch Value Opportunities V.I. Fund - Class III (1/04) 2004 1.071 1.198 17,589 2003 1.000 1.071 -- Oppenheimer Variable Account Funds Oppenheimer Main Street Fund/VA - Service Shares (6/04) 2004 0.991 1.046 -- PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class (6/03) 2004 1.040 1.105 23,112 2003 1.000 1.040 -- Total Return Portfolio - Administrative Class (6/03) 2004 1.007 1.030 5,097 2003 1.000 1.007 5,843 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares (9/03) 2004 1.285 1.457 -- 2003 1.000 1.285 -- Putnam VT Small Cap Value Fund - Class IB Shares (6/03) 2004 1.421 1.749 10,389 2003 1.000 1.421 --
105 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I (6/03) 2004 1.302 1.376 26,950 2003 1.000 1.302 5,619 Investors Fund - Class I (8/03) 2004 1.266 1.363 13,524 2003 1.000 1.266 5,804 Large Cap Growth Fund - Class I (8/03) 2004 1.300 1.274 14,172 2003 1.000 1.300 -- Small Cap Growth Fund - Class I (7/03) 2004 1.421 1.595 15,641 2003 1.000 1.421 -- The Travelers Series Trust Convertible Securities Portfolio (9/03) 2004 1.134 1.175 100,202 2003 1.000 1.134 31,053 Disciplined Mid Cap Stock Portfolio (8/03) 2004 1.291 1.467 18,344 2003 1.000 1.291 -- Equity Income Portfolio (9/03) 2004 1.227 1.315 404,837 2003 1.000 1.227 -- Federated High Yield Portfolio (7/03) 2004 1.102 1.186 52,673 2003 1.000 1.102 -- Federated Stock Portfolio (10/03) 2004 1.243 1.341 5,987 2003 1.000 1.243 5,991 Large Cap Portfolio (11/03) 2004 1.181 1.227 -- 2003 1.000 1.181 -- Lazard International Stock Portfolio (8/03) 2004 1.258 1.420 15,146 2003 1.000 1.258 -- Merrill Lynch Large Cap Core Portfolio (6/03) 2004 1.154 1.304 86,722 2003 1.000 1.154 -- MFS Emerging Growth Portfolio (10/03) 2004 1.189 1.308 2,138 2003 1.000 1.189 --
106 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- MFS Mid Cap Growth Portfolio (6/03) 2004 1.274 1.418 -- 2003 1.000 1.274 -- MFS Value Portfolio (5/04) 2004 0.961 1.104 21,906 Pioneer Fund Portfolio (6/03) 2004 1.184 1.283 2,365 2003 1.000 1.184 -- Social Awareness Stock Portfolio (5/04) 2004 0.945 1.039 437 Travelers Quality Bond Portfolio (6/03) 2004 1.009 1.016 105,941 2003 1.000 1.009 -- U.S. Government Securities Portfolio (7/04) 2004 1.001 1.040 6,020 Travelers Series Fund Inc. AIM Capital Appreciation Portfolio (8/03) 2004 1.218 1.265 19,084 2003 1.000 1.218 -- MFS Total Return Portfolio (6/03) 2004 1.119 1.217 154,861 2003 1.000 1.119 -- Pioneer Strategic Income Portfolio (5/04) 2004 0.970 1.079 3,050 SB Adjustable Rate Income Portfolio - Class I Shares (11/03) 2004 0.996 0.983 39,548 2003 1.000 0.996 -- Strategic Equity Portfolio (8/03) 2004 1.221 1.313 -- 2003 1.000 1.221 -- Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares (6/03) 2004 1.253 1.435 854 2003 1.000 1.253 -- Enterprise Portfolio - Class II Shares (10/03) 2004 1.180 1.195 -- 2003 1.000 1.180 --
107 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 (6/03) 2004 1.232 1.384 13,402 2003 1.000 1.232 -- Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 (7/03) 2004 1.178 1.164 4,274 2003 1.000 1.178 -- Mid Cap Portfolio - Service Class 2 (9/03) 2004 1.402 1.705 109,154 2003 1.000 1.402 5,335
NOTES Effective 07/26/2004 Merrill Lynch Variable Series Funds, Inc.: Merrill Lynch Small Cap Value V.I. Fund - Class III changed its name to Merrill Lynch Series Fund, Inc.: Merrill Lynch Value Opportunities V.I. Fund - Class III. The date next to each funding option's name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amount allocated to them or were not available as of December 31, 2004. "Number of Units outstanding at the end of the period" may include units for Contracts Owners in payout phase, where appropriate. If a accumulate unit value has no assets and units across all sub-accounts within the Separate Account, and has had no assets and units for the history displayed on the Condensed Financial Information in the past, then it may not be displayed. Janus Aspen Series: Balanced Portfolio - Service Shares is no available to new Contract Owners. Janus Aspen Series: Global Life Science Portfolio - Service Shares is no available to new Contract Owners. Janus Aspen Series: Worldwide Growth Portfolio - Service Shares is no available to new Contract Owners. Putnam Variable Trust: Putnam VT International Equity Fund - Class IB Shares is no available to new Contract Owners. Van Kampen Life Investment Trust- Enterprise Portfolio Class II Shares is not available to new Contract Owners. 108 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 1.70%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.068 1.297 26,330 2003 1.000 1.068 7,638 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.321 1.623 48,424 2003 1.000 1.321 6,207 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.240 1.438 33,832 2003 1.000 1.240 6,382 Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.173 1.318 409,561 2003 1.000 1.173 125,518 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.127 1.174 19,256 2003 1.000 1.127 59,530 Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.165 1.498 199,876 2003 1.000 1.165 67,166 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.129 1.228 26,208 2003 1.000 1.129 -- Capital Growth Portfolio - Class B (8/03) 2004 1.117 1.181 42,871 2003 1.000 1.117 14,597
109 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Global Discovery Portfolio - Class B (10/03) 2004 1.255 1.519 74,372 2003 1.000 1.255 -- Growth and Income Portfolio - Class B (7/03) 2004 1.129 1.219 87,997 2003 1.000 1.129 1,124 Health Sciences Portfolio - Class B (7/03) 2004 1.125 1.207 187,842 2003 1.000 1.125 -- International Portfolio - Class B (7/03) 2004 1.186 1.356 132,055 2003 1.000 1.186 -- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.166 1.188 6,977 2003 1.000 1.166 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.157 1.315 138,589 2003 1.000 1.157 -- Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.042 108,334 Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.990 1.013 521,877 2003 1.000 0.990 3,630 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.182 1.328 71,208 2003 1.000 1.182 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.997 1.013 113,691 2003 1.000 0.997 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.077 567,783 Scudder Growth Portfolio - Class B (8/03) 2004 1.110 1.143 15,820 2003 1.000 1.110 391 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.096 962,429
110 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder High Income Portfolio - Class B (7/03) 2004 1.093 1.205 200,926 2003 1.000 1.093 1,129 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.059 526,320 Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.211 1.403 71,402 2003 1.000 1.211 -- Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.037 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.992 0.980 434,342 2003 1.000 0.992 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.134 1.233 65,643 2003 1.000 1.134 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.986 1.050 307,547 2003 1.000 0.986 -- Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.217 1.215 34,590 2003 1.000 1.217 54,667 Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.054 19,724 Scudder Total Return Portfolio - Class B (7/03) 2004 1.065 1.113 94,278 2003 1.000 1.065 5,512 SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.160 1.270 403,848 2003 1.000 1.160 9,515 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.131 1.240 21,352 2003 1.000 1.131 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.164 1.301 642,212 2003 1.000 1.164 9,483
111 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.246 1.538 262,804 2003 1.000 1.246 88,505 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.120 1.117 43,718 2003 1.000 1.120 3,341 SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.159 1.264 3,174 2003 1.000 1.159 3,274 SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.164 1.255 57,237 2003 1.000 1.164 3,306 SVS Index 500 Portfolio - Class B (7/03) 2004 1.134 1.226 116,242 2003 1.000 1.134 12,472 SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.177 1.290 712 2003 1.000 1.177 85,792 SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.121 1.224 150,879 2003 1.000 1.121 120,428 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.112 1.226 146,016 2003 1.000 1.112 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.124 1.297 57,376 2003 1.000 1.124 5,386 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.195 1.185 94,902 2003 1.000 1.195 -- SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.214 1.321 15,793 2003 1.000 1.214 --
112 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.064 1.091 187,147 2003 1.000 1.064 9,834 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.123 1.191 94,237 2003 1.000 1.123 9,111
113 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.068 1.296 -- 2003 1.000 1.068 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.321 1.621 -- 2003 1.000 1.321 -- Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.239 1.437 -- 2003 1.000 1.239 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.173 1.317 33,126 2003 1.000 1.173 -- Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.127 1.173 -- 2003 1.000 1.127 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.165 1.497 -- 2003 1.000 1.165 -- Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.129 1.227 -- 2003 1.000 1.129 -- Capital Growth Portfolio - Class B (8/03) 2004 1.116 1.180 -- 2003 1.000 1.116 -- Global Discovery Portfolio - Class B (10/03) 2004 1.255 1.518 -- 2003 1.000 1.255 -- Growth and Income Portfolio - Class B (7/03) 2004 1.129 1.218 -- 2003 1.000 1.129 --
114 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.124 1.206 -- 2003 1.000 1.124 -- International Portfolio - Class B (7/03) 2004 1.186 1.355 -- 2003 1.000 1.186 -- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.166 1.187 -- 2003 1.000 1.166 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.157 1.314 -- 2003 1.000 1.157 -- Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.042 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.989 1.012 -- 2003 1.000 0.989 -- Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.181 1.327 61,511 2003 1.000 1.181 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.997 1.012 -- 2003 1.000 0.997 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.077 -- Scudder Growth Portfolio - Class B (8/03) 2004 1.109 1.142 -- 2003 1.000 1.109 -- Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.096 -- Scudder High Income Portfolio - Class B (7/03) 2004 1.093 1.204 32,512 2003 1.000 1.093 -- Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.059 --
115 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.211 1.402 32,029 2003 1.000 1.211 -- Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.037 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.991 0.979 -- 2003 1.000 0.991 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.134 1.232 -- 2003 1.000 1.134 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.986 1.049 3,395 2003 1.000 0.986 -- Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.217 1.214 -- 2003 1.000 1.217 -- Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.054 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.064 1.112 -- 2003 1.000 1.064 -- SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.159 1.269 2,804 2003 1.000 1.159 -- SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.131 1.239 -- 2003 1.000 1.131 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.164 1.300 52,698 2003 1.000 1.164 -- SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.246 1.537 2,316 2003 1.000 1.246 -- SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.119 1.116 -- 2003 1.000 1.119 --
116 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.159 1.263 -- 2003 1.000 1.159 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.164 1.254 -- 2003 1.000 1.164 -- SVS Index 500 Portfolio - Class B (7/03) 2004 1.133 1.225 -- 2003 1.000 1.133 -- SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.177 1.288 -- 2003 1.000 1.177 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.121 1.223 4,425 2003 1.000 1.121 -- SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.111 1.225 -- 2003 1.000 1.111 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.123 1.296 -- 2003 1.000 1.123 -- SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.195 1.185 -- 2003 1.000 1.195 -- SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.214 1.320 -- 2003 1.000 1.214 -- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.064 1.090 6,583 2003 1.000 1.064 -- Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.122 1.190 -- 2003 1.000 1.122 --
117 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.067 1.293 13,375 2003 1.000 1.067 11,440 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.320 1.618 24,141 2003 1.000 1.320 19,667 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.238 1.434 9,687 2003 1.000 1.238 1,309 Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.172 1.314 61,420 2003 1.000 1.172 17,258 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.126 1.170 -- 2003 1.000 1.126 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.164 1.493 32,674 2003 1.000 1.164 20,601 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.128 1.224 -- 2003 1.000 1.128 -- Capital Growth Portfolio - Class B (8/03) 2004 1.115 1.177 -- 2003 1.000 1.115 -- Global Discovery Portfolio - Class B (10/03) 2004 1.254 1.514 12,473 2003 1.000 1.254 -- Growth and Income Portfolio - Class B (7/03) 2004 1.128 1.215 63,218 2003 1.000 1.128 5,898
118 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.123 1.203 14,263 2003 1.000 1.123 -- International Portfolio - Class B (7/03) 2004 1.185 1.352 61,387 2003 1.000 1.185 8,902 Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.165 1.184 551 2003 1.000 1.165 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.156 1.311 34,953 2003 1.000 1.156 8,952 Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.042 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.989 1.010 353,817 2003 1.000 0.989 9,917 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.180 1.324 2,957 2003 1.000 1.180 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.996 1.010 64,524 2003 1.000 0.996 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.076 -- Scudder Growth Portfolio - Class B (8/03) 2004 1.108 1.140 54,686 2003 1.000 1.108 14,943 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.095 48,722 Scudder High Income Portfolio - Class B (7/03) 2004 1.092 1.201 103,553 2003 1.000 1.092 9,316 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.058 8,761
119 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.210 1.399 11,116 2003 1.000 1.210 -- Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.037 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.990 0.977 82,461 2003 1.000 0.990 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.133 1.229 13,516 2003 1.000 1.133 8,769 Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.985 1.047 280,457 2003 1.000 0.985 -- Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.216 1.211 9,123 2003 1.000 1.216 -- Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 50,309 Scudder Total Return Portfolio - Class B (7/03) 2004 1.063 1.110 76,271 2003 1.000 1.063 -- SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.158 1.266 270,327 2003 1.000 1.158 9,075 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.130 1.236 23,319 2003 1.000 1.130 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.163 1.297 116,870 2003 1.000 1.163 9,146 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.245 1.533 105,153 2003 1.000 1.245 5,703 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.118 1.114 39,958 2003 1.000 1.118 --
120 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.158 1.260 10,452 2003 1.000 1.158 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.163 1.251 125,393 2003 1.000 1.163 20,897 SVS Index 500 Portfolio - Class B (7/03) 2004 1.132 1.222 86,208 2003 1.000 1.132 -- SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.176 1.285 -- 2003 1.000 1.176 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.120 1.221 15,983 2003 1.000 1.120 -- SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.110 1.223 -- 2003 1.000 1.110 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.122 1.293 133,258 2003 1.000 1.122 -- SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.194 1.182 18,240 2003 1.000 1.194 -- SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.213 1.317 56,611 2003 1.000 1.213 -- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.063 1.087 101,790 2003 1.000 1.063 39,445 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.121 1.187 41,263 2003 1.000 1.121 17,947
121 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.066 1.292 106,758 2003 1.000 1.066 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.319 1.616 166,155 2003 1.000 1.319 1,976 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.238 1.433 114,986 2003 1.000 1.238 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.172 1.313 678,153 2003 1.000 1.172 24,866 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.125 1.169 18,238 2003 1.000 1.125 4,775 Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.164 1.492 495,080 2003 1.000 1.164 36,952 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.128 1.223 42,676 2003 1.000 1.128 14,431 Capital Growth Portfolio - Class B (8/03) 2004 1.115 1.176 239,052 2003 1.000 1.115 14,329 Global Discovery Portfolio - Class B (10/03) 2004 1.253 1.513 328,732 2003 1.000 1.253 12,489 Growth and Income Portfolio - Class B (7/03) 2004 1.128 1.214 404,816 2003 1.000 1.128 11,810
122 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.123 1.202 260,498 2003 1.000 1.123 25,001 International Portfolio - Class B (7/03) 2004 1.185 1.350 257,823 2003 1.000 1.185 27,401 Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.165 1.183 65,105 2003 1.000 1.165 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.156 1.310 563,432 2003 1.000 1.156 7,903 Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.041 382,562 Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.988 1.009 1,057,469 2003 1.000 0.988 101,618 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.180 1.323 319,331 2003 1.000 1.180 23,738 Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.995 1.009 333,059 2003 1.000 0.995 51,517 Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.076 1,083,858 Scudder Growth Portfolio - Class B (8/03) 2004 1.108 1.139 417,706 2003 1.000 1.108 11,986 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.095 1,129,270 Scudder High Income Portfolio - Class B (7/03) 2004 1.092 1.200 699,155 2003 1.000 1.092 16,024 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.058 428,366
123 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.210 1.398 467,194 2003 1.000 1.210 15,460 Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.990 0.976 183,680 2003 1.000 0.990 225,779 Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.133 1.228 226,524 2003 1.000 1.133 21,235 Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.985 1.046 455,091 2003 1.000 0.985 5,361 Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.216 1.210 230,133 2003 1.000 1.216 20,588 Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.063 1.109 654,361 2003 1.000 1.063 31,204 SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.158 1.265 1,104,940 2003 1.000 1.158 20,107 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.130 1.235 338,535 2003 1.000 1.130 6,031 SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.163 1.296 1,259,728 2003 1.000 1.163 29,127 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.245 1.532 523,723 2003 1.000 1.245 26,297 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.118 1.113 232,600 2003 1.000 1.118 23,169
124 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.157 1.259 54,416 2003 1.000 1.157 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.163 1.250 469,896 2003 1.000 1.163 16,699 SVS Index 500 Portfolio - Class B (7/03) 2004 1.132 1.221 1,582,658 2003 1.000 1.132 23,164 SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.175 1.284 4,219 2003 1.000 1.175 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.120 1.220 221,717 2003 1.000 1.120 16,272 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.110 1.222 8,281 2003 1.000 1.110 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.122 1.292 418,881 2003 1.000 1.122 26,263 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.194 1.181 128,229 2003 1.000 1.194 7,465 SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.213 1.316 181,078 2003 1.000 1.213 15,825 The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.062 1.086 760,579 2003 1.000 1.062 26,830 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.121 1.186 91,408 2003 1.000 1.121 8,789
125 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.065 1.289 257,948 2003 1.000 1.065 18,475 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.318 1.613 229,337 2003 1.000 1.318 33,045 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.237 1.429 84,622 2003 1.000 1.237 3,003 Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.171 1.310 554,327 2003 1.000 1.171 47,089 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.125 1.167 28,211 2003 1.000 1.125 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.163 1.489 678,303 2003 1.000 1.163 91,869 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.127 1.220 196,995 2003 1.000 1.127 40,155 Capital Growth Portfolio - Class B (8/03) 2004 1.114 1.173 444,743 2003 1.000 1.114 37,389 Global Discovery Portfolio - Class B (10/03) 2004 1.252 1.510 274,508 2003 1.000 1.252 50,341 Growth and Income Portfolio - Class B (7/03) 2004 1.127 1.211 1,127,974 2003 1.000 1.127 83,511
126 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.122 1.199 593,343 2003 1.000 1.122 75,808 International Portfolio - Class B (7/03) 2004 1.184 1.347 595,000 2003 1.000 1.184 16,378 Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.164 1.181 267,008 2003 1.000 1.164 16,621 Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.155 1.307 1,170,698 2003 1.000 1.155 96,364 Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.041 285,740 Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.987 1.007 2,100,789 2003 1.000 0.987 13,999 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.179 1.320 456,849 2003 1.000 1.179 84,892 Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.995 1.007 418,300 2003 1.000 0.995 130,356 Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.076 1,915,919 Scudder Growth Portfolio - Class B (8/03) 2004 1.107 1.136 407,361 2003 1.000 1.107 37,888 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.094 919,471 Scudder High Income Portfolio - Class B (7/03) 2004 1.091 1.197 1,114,908 2003 1.000 1.091 56,597 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.058 607,758
127 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.209 1.395 738,350 2003 1.000 1.209 42,984 Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.989 0.974 706,446 2003 1.000 0.989 12,106 Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.132 1.225 488,779 2003 1.000 1.132 56,974 Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.984 1.043 1,000,269 2003 1.000 0.984 82,870 Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.215 1.207 451,659 2003 1.000 1.215 38,978 Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.062 1.106 1,299,927 2003 1.000 1.062 3,469 SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.157 1.262 1,631,465 2003 1.000 1.157 117,089 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.129 1.232 578,376 2003 1.000 1.129 60,581 SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.162 1.292 1,223,866 2003 1.000 1.162 75,302 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.244 1.528 1,007,495 2003 1.000 1.244 80,318 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.117 1.110 618,821 2003 1.000 1.117 77,535
128 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.157 1.256 326,211 2003 1.000 1.157 37,274 SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.162 1.247 774,168 2003 1.000 1.162 71,711 SVS Index 500 Portfolio - Class B (7/03) 2004 1.131 1.218 831,431 2003 1.000 1.131 59,411 SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.174 1.281 42,563 2003 1.000 1.174 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.119 1.217 470,674 2003 1.000 1.119 47,671 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.109 1.219 78,016 2003 1.000 1.109 5,973 SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.121 1.289 481,303 2003 1.000 1.121 46,772 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.193 1.178 288,143 2003 1.000 1.193 32,485 SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.212 1.313 604,438 2003 1.000 1.212 45,624 The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.061 1.084 1,078,538 2003 1.000 1.061 158,729 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.120 1.184 147,049 2003 1.000 1.120 46,628
129 CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.065 1.288 -- 2003 1.000 1.065 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.318 1.611 -- 2003 1.000 1.318 -- Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.237 1.428 6,681 2003 1.000 1.237 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.170 1.309 -- 2003 1.000 1.170 -- Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.124 1.166 -- 2003 1.000 1.124 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.163 1.487 12,828 2003 1.000 1.163 -- Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.126 1.219 -- 2003 1.000 1.126 -- Capital Growth Portfolio - Class B (8/03) 2004 1.114 1.173 -- 2003 1.000 1.114 --
130 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Global Discovery Portfolio - Class B (10/03) 2004 1.252 1.508 -- 2003 1.000 1.252 -- Growth and Income Portfolio - Class B (7/03) 2004 1.126 1.210 15,697 2003 1.000 1.126 -- Health Sciences Portfolio - Class B (7/03) 2004 1.122 1.198 -- 2003 1.000 1.122 -- International Portfolio - Class B (7/03) 2004 1.183 1.346 -- 2003 1.000 1.183 -- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.163 1.180 -- 2003 1.000 1.163 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.154 1.306 -- 2003 1.000 1.154 -- Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.041 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.987 1.006 -- 2003 1.000 0.987 -- Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.179 1.319 -- 2003 1.000 1.179 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.994 1.006 -- 2003 1.000 0.994 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.075 -- Scudder Growth Portfolio - Class B (8/03) 2004 1.107 1.135 -- 2003 1.000 1.107 -- Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.094 55,272
131 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder High Income Portfolio - Class B (7/03) 2004 1.090 1.196 -- 2003 1.000 1.090 -- Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.057 -- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.208 1.393 -- 2003 1.000 1.208 -- Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.989 0.973 -- 2003 1.000 0.989 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.131 1.224 -- 2003 1.000 1.131 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.984 1.043 -- 2003 1.000 0.984 -- Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.214 1.206 -- 2003 1.000 1.214 -- Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.062 1.106 -- 2003 1.000 1.062 -- SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.157 1.261 -- 2003 1.000 1.157 -- SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.128 1.231 -- 2003 1.000 1.128 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.161 1.291 -- 2003 1.000 1.161 --
132 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.243 1.527 12,514 2003 1.000 1.243 -- SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.117 1.109 -- 2003 1.000 1.117 -- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.156 1.255 -- 2003 1.000 1.156 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.161 1.246 -- 2003 1.000 1.161 -- SVS Index 500 Portfolio - Class B (7/03) 2004 1.131 1.217 -- 2003 1.000 1.131 -- SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.174 1.280 -- 2003 1.000 1.174 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.118 1.216 -- 2003 1.000 1.118 -- SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.109 1.218 -- 2003 1.000 1.109 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.121 1.288 -- 2003 1.000 1.121 -- SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.192 1.177 -- 2003 1.000 1.192 -- SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.211 1.312 -- 2003 1.000 1.211 --
133 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.061 1.083 26,400 2003 1.000 1.061 -- Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.120 1.183 -- 2003 1.000 1.120 --
CONDENSED FINANCIAL INFORMATION The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.000 1.203 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.000 1.165 15,896 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.000 1.133 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.000 1.117 50,815 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.000 1.045 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.000 1.213 --
134 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.000 1.068 -- Capital Growth Portfolio - Class B (8/03) 2004 1.000 1.056 -- Global Discovery Portfolio - Class B (10/03) 2004 1.000 1.197 6,528 Growth and Income Portfolio - Class B (7/03) 2004 1.000 1.082 141,107 Health Sciences Portfolio - Class B (7/03) 2004 1.000 1.040 16,844 International Portfolio - Class B (7/03) 2004 1.000 1.139 18,430
135 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.000 1.045 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.000 1.112 46,634 Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.040 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 1.000 0.996 71,133 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.000 1.125 25,819 Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 1.000 1.002 1,952 Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.075 309,893 Scudder Growth Portfolio - Class B (8/03) 2004 1.000 1.043 9,625 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.094 72,711 Scudder High Income Portfolio - Class B (7/03) 2004 1.000 1.085 8,208 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.057 -- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.000 1.152 44,807 Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 1.000 0.987 24,864 Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.000 1.067 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 1.000 1.058 32,132 Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.000 1.047 16,459 Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 --
136 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder Total Return Portfolio - Class B (7/03) 2004 1.000 1.034 76,616 SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.000 1.069 69,501 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.000 1.062 16,200 SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.000 1.116 18,938 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.000 1.169 70,133 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.000 1.012 17,011 SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.000 1.106 15,073 SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.000 1.082 19,155 SVS Index 500 Portfolio - Class B (7/03) 2004 1.000 1.087 -- SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.000 1.104 729 SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.000 1.102 49,690 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.000 1.109 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.000 1.142 27,660 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.000 1.016 13,198 SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.000 1.099 --
137 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.000 1.017 19,844 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.000 1.069 --
138 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.064 1.285 50,899 2003 1.000 1.064 29,185 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.317 1.608 11,897 2003 1.000 1.317 -- Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.236 1.425 26,403 2003 1.000 1.236 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.169 1.305 152,466 2003 1.000 1.169 -- Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.123 1.163 -- 2003 1.000 1.123 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.162 1.484 277,814 2003 1.000 1.162 -- Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.125 1.216 9,424 2003 1.000 1.125 -- Capital Growth Portfolio - Class B (8/03) 2004 1.113 1.170 4,931 2003 1.000 1.113 -- Global Discovery Portfolio - Class B (10/03) 2004 1.251 1.505 45,090 2003 1.000 1.251 -- Growth and Income Portfolio - Class B (7/03) 2004 1.125 1.207 365,748 2003 1.000 1.125 --
139 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.121 1.196 57,274 2003 1.000 1.121 -- International Portfolio - Class B (7/03) 2004 1.182 1.343 158,815 2003 1.000 1.182 -- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.162 1.177 -- 2003 1.000 1.162 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.153 1.302 76,393 2003 1.000 1.153 -- Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.010 1.040 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.986 1.003 277,697 2003 1.000 0.986 59,532 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.178 1.316 85,426 2003 1.000 1.178 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.994 1.004 78,254 2003 1.000 0.994 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.013 1.075 119,674 Scudder Growth Portfolio - Class B (8/03) 2004 1.106 1.132 186,872 2003 1.000 1.106 -- Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.094 184,960 Scudder High Income Portfolio - Class B (7/03) 2004 1.090 1.193 196,509 2003 1.000 1.090 92,518 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.057 591,288
140 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.207 1.390 112,799 2003 1.000 1.207 -- Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.988 0.971 58,185 2003 1.000 0.988 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.130 1.221 88,772 2003 1.000 1.130 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.983 1.040 227,178 2003 1.000 0.983 179,617 Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.213 1.203 14,463 2003 1.000 1.213 -- Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 28,525 Scudder Total Return Portfolio - Class B (7/03) 2004 1.061 1.103 28,622 2003 1.000 1.061 -- SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.156 1.258 203,026 2003 1.000 1.156 28,804 SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.127 1.228 19,512 2003 1.000 1.127 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.160 1.288 118,167 2003 1.000 1.160 49,593 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.242 1.524 78,727 2003 1.000 1.242 -- SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.116 1.107 65,677 2003 1.000 1.116 --
141 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.155 1.252 -- 2003 1.000 1.155 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.160 1.243 34,677 2003 1.000 1.160 -- SVS Index 500 Portfolio - Class B (7/03) 2004 1.130 1.214 151,691 2003 1.000 1.130 133,925 SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.173 1.277 32,757 2003 1.000 1.173 31,765 SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.117 1.213 89,822 2003 1.000 1.117 -- SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.108 1.215 8,364 2003 1.000 1.108 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.120 1.285 173,576 2003 1.000 1.120 -- SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.191 1.174 93,679 2003 1.000 1.191 78,041 SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.210 1.309 87,324 2003 1.000 1.210 30,545 The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.060 1.080 53,907 2003 1.000 1.060 -- Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.119 1.180 13,671 2003 1.000 1.119 --
142 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.000 1.201 5,843 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.000 1.163 81,744 Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.000 1.131 17,189 Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.000 1.115 141,356 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.000 1.043 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.000 1.211 25,705 Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.000 1.067 11,916 Capital Growth Portfolio - Class B (8/03) 2004 1.000 1.055 12,458 Global Discovery Portfolio - Class B (10/03) 2004 1.000 1.195 69,218 Growth and Income Portfolio - Class B (7/03) 2004 1.000 1.080 45,528 Health Sciences Portfolio - Class B (7/03) 2004 1.000 1.038 57,585 International Portfolio - Class B (7/03) 2004 1.000 1.137 21,487 Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.000 1.044 15,118 Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.000 1.111 76,385
143 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder Conservative Income Strategy Portfolio - 2004 1.010 1.039 13,051 Class B (9/04) Scudder Fixed Income Portfolio - Class B (7/03) 2004 1.000 0.995 63,366 Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.000 1.123 93,885 Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 1.000 1.000 75,514 Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.012 1.074 -- Scudder Growth Portfolio - Class B (8/03) 2004 1.000 1.042 10,816 Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.017 1.093 -- Scudder High Income Portfolio - Class B (7/03) 2004 1.000 1.084 119,584 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.010 1.056 97,069 Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.000 1.150 15,595 Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 1.000 0.985 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.000 1.065 31,644 Scudder Strategic Income Portfolio - Class B (7/03) 2004 1.000 1.056 17,881 Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.000 1.045 57,561 Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.000 1.032 20,852 SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.000 1.068 97,222
144 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.000 1.060 76,483 SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.000 1.114 95,210 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.000 1.167 175,402 SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.000 1.011 75,942 SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.000 1.104 31,673 SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.000 1.080 126,409 SVS Index 500 Portfolio - Class B (7/03) 2004 1.000 1.085 8,048 SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.000 1.102 2,488 SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.000 1.101 67,436 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.000 1.107 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.000 1.140 25,235 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.000 1.015 21,726 SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.000 1.097 14,670 The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.000 1.016 35,321
145 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.000 1.067 29,176
146 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- AIM Variable Insurance Funds, Inc. AIM V.I. Utilities Fund (8/03) 2004 1.063 1.281 -- 2003 1.000 1.063 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio (10/03) 2004 1.315 1.603 402 2003 1.000 1.315 -- Credit Suisse Trust Global Post-Venture Capital Portfolio (11/03) 2004 1.234 1.420 -- 2003 1.000 1.234 -- Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares (7/03) 2004 1.168 1.301 11,044 2003 1.000 1.168 9,350 Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (9/03) 2004 1.122 1.159 -- 2003 1.000 1.122 -- Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B (7/03) 2004 1.160 1.479 3,415 2003 1.000 1.160 -- Scudder Variable Series I 21st Century Growth Portfolio - Class B (11/03) 2004 1.124 1.213 -- 2003 1.000 1.124 -- Capital Growth Portfolio - Class B (8/03) 2004 1.112 1.166 -- 2003 1.000 1.112 -- Global Discovery Portfolio - Class B (10/03) 2004 1.249 1.500 3,664 2003 1.000 1.249 -- Growth and Income Portfolio - Class B (7/03) 2004 1.124 1.204 4,385 2003 1.000 1.124 --
147 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Health Sciences Portfolio - Class B (7/03) 2004 1.119 1.192 500 2003 1.000 1.119 -- International Portfolio - Class B (7/03) 2004 1.181 1.339 3,933 2003 1.000 1.181 -- Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B (12/03) 2004 1.161 1.173 -- 2003 1.000 1.161 -- Scudder Blue Chip Portfolio - Class B (8/03) 2004 1.152 1.298 8,191 2003 1.000 1.152 -- Scudder Conservative Income Strategy Portfolio - Class B (9/04) 2004 1.009 1.039 -- Scudder Fixed Income Portfolio - Class B (7/03) 2004 0.985 1.000 -- 2003 1.000 0.985 -- Scudder Global Blue Chip Portfolio - Class B (10/03) 2004 1.176 1.312 475 2003 1.000 1.176 -- Scudder Government & Agency Securities Portfolio - Class B (7/03) 2004 0.992 1.000 -- 2003 1.000 0.992 -- Scudder Growth & Income Strategy Portfolio (9/04) 2004 1.012 1.074 -- Scudder Growth Portfolio - Class B (8/03) 2004 1.105 1.129 -- 2003 1.000 1.105 -- Scudder Growth Strategy Portfolio - Class B (9/04) 2004 1.016 1.093 -- Scudder High Income Portfolio - Class B (7/03) 2004 1.088 1.190 17,557 2003 1.000 1.088 10,048 Scudder Income & Growth Strategy Portfolio - Class B (9/04) 2004 1.009 1.056 --
148 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- Scudder International Select Equity Portfolio - Class B (7/03) 2004 1.206 1.386 9,682 2003 1.000 1.206 9,226 Scudder Mercury Large Cap Core Portfolio (12/04) 2004 1.000 1.036 -- Scudder Money Market Portfolio - Class B (8/03) 2004 0.987 0.968 -- 2003 1.000 0.987 -- Scudder Small Cap Growth Portfolio - Class B (7/03) 2004 1.129 1.217 526 2003 1.000 1.129 -- Scudder Strategic Income Portfolio - Class B (7/03) 2004 0.982 1.037 7,030 2003 1.000 0.982 -- Scudder Technology Growth Portfolio - Class B (7/03) 2004 1.212 1.199 -- 2003 1.000 1.212 -- Scudder Templeton Foreign Value Portfolio (11/04) 2004 1.000 1.053 -- Scudder Total Return Portfolio - Class B (7/03) 2004 1.060 1.099 7,993 2003 1.000 1.060 -- SVS Davis Venture Value Portfolio - Class B (7/03) 2004 1.154 1.254 4,067 2003 1.000 1.154 -- SVS Dreman Financial Services Portfolio - Class B (8/03) 2004 1.126 1.225 490 2003 1.000 1.126 -- SVS Dreman High Return Equity Portfolio - Class B (8/03) 2004 1.159 1.284 12,985 2003 1.000 1.159 9,821 SVS Dreman Small Cap Value Portfolio - Class B (7/03) 2004 1.241 1.519 4,928 2003 1.000 1.241 -- SVS Eagle Focused Large Cap Growth Portfolio - Class B (8/03) 2004 1.115 1.103 -- 2003 1.000 1.115 --
149 CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - ------------------------------------------------------------ ---- ------------- ------------- --------------- SVS Focus Value & Growth Portfolio - Class B (10/03) 2004 1.154 1.248 -- 2003 1.000 1.154 -- SVS II Scudder Large Cap Value Portfolio - Class B (8/03) 2004 1.159 1.239 22,945 2003 1.000 1.159 9,768 SVS Index 500 Portfolio - Class B (7/03) 2004 1.128 1.211 -- 2003 1.000 1.128 -- SVS INVESCO Dynamic Growth Portfolio - Class B (8/03) 2004 1.172 1.274 -- 2003 1.000 1.172 -- SVS Janus Growth And Income Portfolio - Class B (7/03) 2004 1.116 1.209 19,876 2003 1.000 1.116 19,876 SVS Janus Growth Opportunities Portfolio - Class B (10/03) 2004 1.107 1.211 -- 2003 1.000 1.107 -- SVS MFS Strategic Value Portfolio - Class B (8/03) 2004 1.119 1.281 11,265 2003 1.000 1.119 9,819 SVS Oak Strategic Equity Portfolio - Class B (7/03) 2004 1.190 1.171 75,702 2003 1.000 1.190 -- SVS Turner Mid Cap Growth Portfolio - Class B (7/03) 2004 1.209 1.305 68,970 2003 1.000 1.209 -- The Alger American Fund Alger American Balanced Portfolio - Class S Shares (7/03) 2004 1.059 1.077 20,297 2003 1.000 1.059 20,297 Alger American Leveraged AllCap Portfolio - Class S Shares (10/03) 2004 1.118 1.176 -- 2003 1.000 1.118 --
150 NOTES Effective 10/15/2004 INVESCO VIF - Utilities Fund changed its name to AIM Variable Insurance Funds, Inc.: AIM V.I. Utilities Fund. The date next to each funding option's name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amount allocated to them or were not available as of December 31, 2004. "Number of Units outstanding at the end of the period" may include units for Contracts Owners in payout phase, where appropriate. If an accumulation unit value has no assets and units across all sub-accounts within the Separate Account, and has had no assets and units for the history displayed on the Condensed Financial Information in the past, then it may not be displayed. 151 ANNUAL REPORT DECEMBER 31, 2004 TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES [TRAVELERS LOGO] The Travelers Insurance Company The Travelers Life and Annuity Company One Cityplace Hartford, CT 06103 TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2004
HIGH CAPITAL YIELD MANAGED MONEY APPRECIATION BOND ASSETS MARKET FUND TRUST TRUST PORTFOLIO ------------ ---------- ---------- ---------- ASSETS: Investments at market value: $1,641,132 $1,552,575 $1,284,270 $9,470,052 Receivables: Dividends ................ -- -- -- 8,209 ---------- ---------- ---------- ---------- Total Assets ........... 1,641,132 1,552,575 1,284,270 9,478,261 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $1,641,132 $1,552,575 $1,284,270 $9,478,261 ========== ========== ========== ==========
See Notes to Financial Statements -1- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
AIM V.I. AIM V.I. MID CAP ALLIANCEBERNSTEIN CAPITAL CORE PREMIER APPRECIATION EQUITY AIM V.I. GROWTH FUND - FUND - UTILITIES PORTFOLIO - SERIES II SERIES II FUND CLASS B ------------ ---------- ---------- ----------------- ASSETS: Investments at market value: $3,033,533 $1,477,542 $ 677,284 $1,570,446 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 3,033,533 1,477,542 677,284 1,570,446 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $3,033,533 $1,477,542 $ 677,284 $1,570,446 ========== ========== ========== ==========
See Notes to Financial Statements -2- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
CREDIT CREDIT GLOBAL SUISSE SUISSE DELAWARE GROWTH GROWTH GROWTH-INCOME EMERGING TRUSTGLOBAL VIP REIT FUND - FUND - FUND - MARKETS POST-VENTURE SERIES - CLASS 2 CLASS 2 CLASS 2 PORTFOLIO CAPITAL STANDARD SHARES SHARES SHARES TRUST PORTFOLIO CLASS ----------- ----------- ------------- ----------- ------------ ----------- $ 6,038,383 $19,010,640 $16,338,475 $ 948,563 $ 417,000 $ 5,828,342 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 6,038,383 19,010,640 16,338,475 948,563 417,000 5,828,342 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 6,038,383 $19,010,640 $16,338,475 $ 948,563 $ 417,000 $ 5,828,342 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -3- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
DREYFUS DREYFUS SOCIALLY DREYFUS VIF MIDCAP RESPONSIBLE DREYFUS VIF DEVELOPING STOCK GROWTH APPRECIATION LEADERS PORTFOLIO - FUND, INC.- PORTFOLIO - PORTFOLIO - SERVICE SERVICE INITIAL INITIAL SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $3,081,649 $ 76,841 $1,048,118 $3,977,455 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 3,081,649 76,841 1,048,118 3,977,455 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $3,081,649 $ 76,841 $1,048,118 $3,977,455 ========== ========== ========== ==========
See Notes to Financial Statements -4- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
FRANKLIN TEMPLETON RISING MUTUAL DEVELOPING TEMPLETON TEMPLETON DIVIDENDS FRANKLIN SHARES MARKETS FOREIGN GROWTH SECURITIES SMALL CAP SECURITIES SECURITIES SECURITIES SECURITIES FUND - FUND - FUND - FUND - FUND - FUND - CLASS 2 CLASS 2 CLASS 2 CLASS 2 CLASS 2 CLASS 2 SHARES SHARES SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- ----------- ----------- $ 6,023,145 $ 2,564,475 $ 2,256,711 $ 3,128,289 $ 5,238,629 $ 4,709,370 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 6,023,145 2,564,475 2,256,711 3,128,289 5,238,629 4,709,370 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 6,023,145 $ 2,564,475 $ 2,256,711 $ 3,128,289 $ 5,238,629 $ 4,709,370 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -5- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SALOMON SALOMON SALOMON BROTHERS BROTHERS BROTHERS VARIABLE VARIABLE VARIABLE EQUITY AGGRESSIVE AGGRESSIVE GROWTH & INDEX GROWTH GROWTH INCOME PORTFOLIO - FUND - FUND - FUND - CLASS II CLASS I CLASS II CLASS I SHARES SHARES SHARES SHARES ----------- ----------- ---------- ---------- ASSETS: Investments at market value: $6,722,164 $2,974,707 $3,257,287 $1,133,881 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 6,722,164 2,974,707 3,257,287 1,133,881 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $6,722,164 $2,974,707 $3,257,287 $1,133,881 ========== ========== ========== ==========
See Notes to Financial Statements -6- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
GLOBAL LIFE GLOBAL WORLDWIDE BALANCED SCIENCES TECHNOLOGY GROWTH LAZARD PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - RETIREMENT GROWTH AND SERVICE SERVICE SERVICE SERVICE SMALL CAP INCOME SHARES SHARES SHARES SHARES PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- $ 310,009 $ 209,413 $ 381,138 $ 135,813 $ 2,160,748 $ 4,334,007 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 310,009 209,413 381,138 135,813 2,160,748 4,334,007 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 310,009 $ 209,413 $ 381,138 $ 135,813 $ 2,160,748 $ 4,334,007 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -7- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
MERRILL MERRILL OPPENHEIMER LYNCH LYNCH CAPITAL GLOBAL VALUE APPRECIATION MID-CAP ALLOCATION OPPORTUNITIES FUND/VA - VALUE V.I. FUND - V.I. FUND - SERVICE PORTFOLIO CLASS III CLASS III SHARES ---------- ----------- ------------- ------------ ASSETS: Investments at market value: $4,700,544 $1,337,374 $1,761,012 $2,595,301 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 4,700,544 1,337,374 1,761,012 2,595,301 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $4,700,544 $1,337,374 $1,761,012 $2,595,301 ========== ========== ========== ==========
See Notes to Financial Statements -8- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
OPPENHEIMER OPPENHEIMER PIONEER GLOBAL MAIN REAL TOTAL AMERICA PIONEER SECURITIES STREET RETURN RETURN INCOME VCT BALANCED VCT FUND/VA - FUND/VA - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - SERVICE SERVICE ADMINISTRATIVE ADMINISTRATIVE CLASS II CLASS II SHARES SHARES CLASS CLASS SHARES SHARES ----------- ----------- -------------- -------------- ----------- ------------ $ 3,977,028 $ 1,539,949 $ 4,666,506 $ 8,894,404 $ 3,730,294 $ 2,630,092 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 3,977,028 1,539,949 4,666,506 8,894,404 3,730,294 2,630,092 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 3,977,028 $ 1,539,949 $ 4,666,506 $ 8,894,404 $ 3,730,294 $ 2,630,092 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -9- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
PIONEER PIONEER EMERGING EQUITY PIONEER PIONEER MARKETS VCT INCOME VCT EUROPE VCT FUND VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $2,727,756 $4,139,907 $ 326,140 $4,598,376 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 2,727,756 4,139,907 326,140 4,598,376 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $2,727,756 $4,139,907 $ 326,140 $4,598,376 ========== ========== ========== ==========
See Notes to Financial Statements -10- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
PIONEER PIONEER PIONEER PIONEER PIONEER PIONEER OAK RIDGE PAPP GROWTH HIGH YIELD INTERNATIONAL MID CAP LARGE CAP AMERICA-PACIFIC SHARES VCT VCT VALUE VCT VALUE VCT GROWTH VCT RIM FUND PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - VCT - CLASS II CLASS II CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- ----------- --------------- $ 961,981 $ 7,686,240 $ 752,464 $ 4,111,789 $ 1,589,196 $ 474,747 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 961,981 7,686,240 752,464 4,111,789 1,589,196 474,747 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 961,981 $ 7,686,240 $ 752,464 $ 4,111,789 $ 1,589,196 $ 474,747 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -11- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
PIONEER PAPP PIONEER SMALL & PIONEER PIONEER SMALL MID CAP REAL ESTATE SMALL CAP COMPANY GROWTH VCT SHARES VCT VALUE VCT VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $ 849,620 $3,136,597 $2,314,271 $ 326,790 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 849,620 3,136,597 2,314,271 326,790 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $ 849,620 $3,136,597 $2,314,271 $ 326,790 ========== ========== ========== ==========
See Notes to Financial Statements -12- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
PIONEER STRATEGIC PIONEER PUTNAM VT INCOME VALUE PUTNAM VT SMALL CAP VCT VCT INTERNATIONAL VALUE PORTFOLIO - PORTFOLIO - EQUITY FUND - FUND - ALL CAP INVESTORS CLASS II CLASS II CLASS IB CLASS IB FUND - FUND - SHARES SHARES SHARES SHARES CLASS I CLASS I ----------- ----------- ------------- ----------- ----------- ----------- $ 8,226,407 $ 3,320,556 $ 481,861 $ 6,158,867 $ 2,644,380 $ 1,743,194 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 8,226,407 3,320,556 481,861 6,158,867 2,644,380 1,743,194 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 8,226,407 $ 3,320,556 $ 481,861 $ 6,158,867 $ 2,644,380 $ 1,743,194 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -13- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER LARGE CAP SMALL CAP TOTAL REAL ESTATE GROWTH GROWTH RETURN SECURITIES FUND - FUND - FUND - PORTFOLIO - CLASS I CLASS I CLASS II CLASS B ---------- ---------- ---------- ----------- ASSETS: Investments at market value: $1,722,589 $2,521,803 $1,332,960 $3,104,497 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 1,722,589 2,521,803 1,332,960 3,104,497 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $1,722,589 $2,521,803 $1,332,960 $3,104,497 ========== ========== ========== ==========
See Notes to Financial Statements -14- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
21ST CENTURY CAPITAL GLOBAL GROWTH AND HEALTH GROWTH GROWTH DISCOVERY INCOME SCIENCES INTERNATIONAL PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------ ----------- ----------- ----------- ----------- ------------- $ 352,911 $ 928,842 $ 1,225,403 $ 3,052,628 $ 1,476,533 $ 1,788,152 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 352,911 928,842 1,225,403 3,052,628 1,476,533 1,788,152 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 352,911 $ 928,842 $ 1,225,403 $ 3,052,628 $ 1,476,533 $ 1,788,152 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -15- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER SCUDDER CONSERVATIVE SCUDDER AGGRESSIVE SCUDDER INCOME FIXED GROWTH BLUE CHIP STRATEGY INCOME PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $ 486,051 $3,006,088 $ 914,533 $5,159,298 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 486,051 3,006,088 914,533 5,159,298 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $ 486,051 $3,006,088 $ 914,533 $5,159,298 ========== ========== ========== ==========
See Notes to Financial Statements -16- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER SCUDDER SCUDDER GROWTH & SCUDDER INCOME & GLOBAL INCOME SCUDDER GROWTH SCUDDER GROWTH BLUE CHIP STRATEGY GROWTH STRATEGY HIGH INCOME STRATEGY PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ----------- ----------- ----------- $ 1,531,539 $ 4,398,214 $ 1,292,620 $ 4,851,623 $ 3,273,980 $ 2,431,235 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 1,531,539 4,398,214 1,292,620 4,851,623 3,273,980 2,431,235 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 1,531,539 $ 4,398,214 $ 1,292,620 $ 4,851,623 $ 3,273,980 $ 2,431,235 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -17- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER SCUDDER MERCURY SCUDDER SCUDDER INTERNATIONAL LARGE CAP MONEY SMALL CAP SELECT EQUITY CORE MARKET GROWTH PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ------------- ----------- ----------- ----------- ASSETS: Investments at market value: $2,192,239 $ 57,632 $2,309,217 $1,184,640 Receivables: Dividends ................ -- -- 1,426 -- ---------- ---------- ---------- ---------- Total Assets ........... 2,192,239 57,632 2,310,643 1,184,640 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $2,192,239 $ 57,632 $2,310,643 $1,184,640 ========== ========== ========== ==========
See Notes to Financial Statements -18- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER SVS SVS SCUDDER SCUDDER TEMPLETON SCUDDER DAVIS DREMAN STRATEGIC TECHNOLOGY FOREIGN TOTAL VENTURE FINANCIAL INCOME GROWTH VALUE RETURN VALUE SERVICES PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ----------- ----------- ----------- $ 2,605,336 $ 975,891 $ 103,820 $ 2,622,464 $ 5,179,508 $ 1,499,586 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 2,605,336 975,891 103,820 2,622,464 5,179,508 1,499,586 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,605,336 $ 975,891 $ 103,820 $ 2,622,464 $ 5,179,508 $ 1,499,586 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -19- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SVS SVS SVS EAGLE SVS DREMAN DREMAN FOCUSED FOCUS HIGH RETURN SMALL CAP LARGE CAP VALUE & EQUITY VALUE GROWTH GROWTH PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $5,840,609 $3,799,537 $1,275,886 $ 568,631 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 5,840,609 3,799,537 1,275,886 568,631 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $5,840,609 $3,799,537 $1,275,886 $ 568,631 ========== ========== ========== ==========
See Notes to Financial Statements -20- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SCUDDER SVS SVS SVS GOVERNMENT & SCUDDER INVESCO JANUS JANUS AGENCY LARGE CAP SVS DYNAMIC GROWTH AND GROWTH SECURITIES VALUE INDEX 500 GROWTH INCOME OPPORTUNITIES PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------ ----------- ----------- ----------- ----------- ------------- $ 1,234,171 $ 2,291,095 $ 3,624,092 $ 129,500 $ 1,382,582 $ 309,958 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 1,234,171 2,291,095 3,624,092 129,500 1,382,582 309,958 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 1,234,171 $ 2,291,095 $ 3,624,092 $ 129,500 $ 1,382,582 $ 309,958 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -21- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SVS ALGER SVS MFS SVS OAK TURNER AMERICAN STRATEGIC STRATEGIC MID CAP BALANCED VALUE EQUITY GROWTH PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS S CLASS B CLASS B CLASS B SHARES ----------- ----------- ----------- ----------- ASSETS: Investments at market value: $2,026,978 $ 955,307 $1,451,325 $3,008,323 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 2,026,978 955,307 1,451,325 3,008,323 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $2,026,978 $ 955,307 $1,451,325 $3,008,323 ========== ========== ========== ==========
See Notes to Financial Statements -22- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
ALGER AMERICAN LEVERAGED ALLCAP DISCIPLINED PORTFOLIO - CONVERTIBLE MID CAP EQUITY FEDERATED FEDERATED CLASS S SECURITIES STOCK INCOME HIGH YIELD STOCK SHARES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- $ 596,156 $ 2,189,798 $ 2,703,763 $ 4,537,196 $ 2,914,820 $ 469,455 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 596,156 2,189,798 2,703,763 4,537,196 2,914,820 469,455 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 596,156 $ 2,189,798 $ 2,703,763 $ 4,537,196 $ 2,914,820 $ 469,455 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -23- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
MERRILL LAZARD LYNCH MFS INTERNATIONAL LARGE CAP EMERGING LARGE CAP STOCK CORE GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------- ------------- ---------- ---------- ASSETS: Investments at market value: $1,274,679 $1,577,082 $1,345,622 $1,188,979 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 1,274,679 1,577,082 1,345,622 1,188,979 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $1,274,679 $1,577,082 $1,345,622 $1,188,979 ========== ========== ========== ==========
See Notes to Financial Statements -24- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
MFS SOCIAL TRAVELERS U.S. MID CAP MFS PIONEER AWARENESS QUALITY GOVERNMENT GROWTH VALUE FUND STOCK BOND SECURITIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- $ 1,679,176 $ 1,495,099 $ 374,110 $ 278,459 $ 4,757,849 $ 1,640,568 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 1,679,176 1,495,099 374,110 278,459 4,757,849 1,640,568 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 1,679,176 $ 1,495,099 $ 374,110 $ 278,459 $ 4,757,849 $ 1,640,568 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -25- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
SB ADJUSTABLE RATE PIONEER INCOME AIM CAPITAL MFS STRATEGIC PORTFOLIO - APPRECIATION TOTAL RETURN INCOME CLASS I PORTFOLIO PORTFOLIO PORTFOLIO SHARES ------------ ------------ ---------- ----------- ASSETS: Investments at market value: $1,179,598 $12,337,991 $2,263,437 $1,515,006 Receivables: Dividends ................ -- -- -- -- ---------- ---------- ---------- ---------- Total Assets ........... 1,179,598 12,337,991 2,263,437 1,515,006 ---------- ---------- ---------- ---------- LIABILITIES: Total Liabilities ...... -- -- -- -- ---------- ---------- ---------- ---------- NET ASSETS: $1,179,598 $12,337,991 $2,263,437 $1,515,006 ========== ========== ========== ==========
See Notes to Financial Statements -26- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004
DYNAMIC CAPITAL COMSTOCK ENTERPRISE CONTRAFUND(R) APPRECIATION MID CAP STRATEGIC PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - EQUITY CLASS II CLASS II SERVICE SERVICE SERVICE PORTFOLIO SHARES SHARES CLASS 2 CLASS 2 CLASS 2 ----------- ----------- ----------- ----------- ----------- ----------- $ 448,267 $ 4,943,758 $ 151,697 $ 5,658,170 $ 453,650 $ 8,104,708 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 448,267 4,943,758 151,697 5,658,170 453,650 8,104,708 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- $ 448,267 $ 4,943,758 $ 151,697 $ 5,658,170 $ 453,650 $ 8,104,708 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements -27- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES - CONTINUED DECEMBER 31, 2004 COMBINED ------------ ASSETS: Investments at market value: $372,974,648 Receivables: Dividends ................ 9,635 ------------ Total Assets ........... 372,984,283 ------------ LIABILITIES: Total Liabilities ...... -- ------------ NET ASSETS: $372,984,283 ============ See Notes to Financial Statements -28- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2004
CAPITAL HIGH YIELD MANAGED MONEY APPRECIATION BOND ASSETS MARKET FUND TRUST TRUST PORTFOLIO --------- --------- --------- --------- INVESTMENT INCOME: Dividends ................................... $ -- $ 101,188 $ 26,702 $ 63,084 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 7,149 5,232 5,936 87,521 Administrative fees ......................... 628 475 527 7,462 --------- --------- --------- --------- Total expenses ............................ 7,777 5,707 6,463 94,983 --------- --------- --------- --------- Net investment income (loss) ............ (7,777) 95,481 20,239 (31,899) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- 2 9,883 -- Realized gain (loss) on sale of investments 1,051 44 336 -- --------- --------- --------- --------- Realized gain (loss) .................... 1,051 46 10,219 -- --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 158,437 (50,761) 39,683 -- --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 151,711 $ 44,766 $ 70,141 $ (31,899) ========= ========= ========= =========
See Notes to Financial Statements -29- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
AIM V.I. AIM V.I. ALLIANCEBERNSTEIN CAPITAL MID CAP PREMIER APPRECIATION CORE EQUITY AIM V.I. GROWTH FUND - FUND - UTILITIES PORTFOLIO - SERIES II SERIES II FUND CLASS B ------------ ----------- --------- ----------------- INVESTMENT INCOME: Dividends ................................... $ -- $ 299 $ 2,770 $ -- --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 20,075 11,411 4,903 14,469 Administrative fees ......................... 1,738 981 400 1,267 --------- --------- --------- --------- Total expenses ............................ 21,813 12,392 5,303 15,736 --------- --------- --------- --------- Net investment income (loss) ............ (21,813) (12,093) (2,533) (15,736) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- 60,765 -- -- Realized gain (loss) on sale of investments (852) 3,156 979 (3,016) --------- --------- --------- --------- Realized gain (loss) .................... (852) 63,921 979 (3,016) --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 207,447 49,831 86,305 122,937 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 184,782 $ 101,659 $ 84,751 $ 104,185 ========= ========= ========= =========
See Notes to Financial Statements -30- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
GLOBAL CREDIT SUISSE CREDIT SUISSE DELAWARE GROWTH GROWTH GROWTH-INCOME TRUST TRUST GLOBAL VIP REIT FUND - FUND - FUND - EMERGING POST-VENTURE SERIES - CLASS 2 CLASS 2 CLASS 2 MARKETS CAPITAL STANDARD SHARES SHARES SHARES PORTFOLIO PORTFOLIO CLASS ------------- ------------- ------------- ------------- ------------- ------------- $ 3,704 $ 22,805 $ 105,377 $ 1,616 $ -- $ 6,099 ------------- ------------- ------------- ------------- ------------- ------------- 31,439 102,503 84,683 7,528 3,343 28,277 2,665 8,632 7,124 611 272 2,428 ------------- ------------- ------------- ------------- ------------- ------------- 34,104 111,135 91,807 8,139 3,615 30,705 ------------- ------------- ------------- ------------- ------------- ------------- (30,400) (88,330) 13,570 (6,523) (3,615) (24,606) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- 6,319 2,265 535 1,234 2,148 (1,737) 1,106 ------------- ------------- ------------- ------------- ------------- ------------- 2,265 535 1,234 2,148 (1,737) 7,425 ------------- ------------- ------------- ------------- ------------- ------------- 501,400 1,542,832 915,740 137,149 49,589 678,972 ------------- ------------- ------------- ------------- ------------- ------------- $ 473,265 $ 1,455,037 $ 930,544 $ 132,774 $ 44,237 $ 661,791 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -31- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
DREYFUS DREYFUS MIDCAP SOCIALLY DREYFUS VIF STOCK RESPONSIBLE DREYFUS VIF DEVELOPING PORTFOLIO - GROWTH FUND, APPRECIATION LEADERS SERVICE INC. - PORTFOLIO - PORTFOLIO - SHARES SERVICE SHARES INITIAL SHARES INITIAL SHARES ----------- -------------- -------------- -------------- INVESTMENT INCOME: Dividends ................................... $ 5,103 $ 113 $ 15,411 $ 7,156 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 24,079 1,558 7,904 28,806 Administrative fees ......................... 2,018 141 695 2,437 --------- --------- --------- --------- Total expenses ............................ 26,097 1,699 8,599 31,243 --------- --------- --------- --------- Net investment income (loss) ............ (20,994) (1,586) 6,812 (24,087) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ 68,972 -- -- -- Realized gain (loss) on sale of investments 8,268 3,693 462 7 --------- --------- --------- --------- Realized gain (loss) .................... 77,240 3,693 462 7 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 252,095 2,466 28,523 294,359 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 308,341 $ 4,573 $ 35,797 $ 270,279 ========= ========= ========= =========
See Notes to Financial Statements -32- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
FRANKLIN TEMPLETON RISING MUTUAL DEVELOPING TEMPLETON TEMPLETON DIVIDENDS FRANKLIN SHARES MARKETS FOREIGN GROWTH SECURITIES SMALL CAP SECURITIES SECURITIES SECURITIES SECURITIES FUND - FUND - FUND - FUND - FUND - FUND - CLASS 2 CLASS 2 CLASS 2 CLASS 2 CLASS 2 CLASS 2 SHARES SHARES SHARES SHARES SHARES SHARES ------------- ------------- ------------- ------------- ------------- ------------- $ 4,851 $ -- $ 2,622 $ 15,158 $ 8,496 $ 14,592 ------------- ------------- ------------- ------------- ------------- ------------- 32,175 17,660 12,277 16,868 26,081 28,531 2,747 1,527 995 1,487 2,232 2,457 ------------- ------------- ------------- ------------- ------------- ------------- 34,922 19,187 13,272 18,355 28,313 30,988 ------------- ------------- ------------- ------------- ------------- ------------- (30,071) (19,187) (10,650) (3,197) (19,817) (16,396) ------------- ------------- ------------- ------------- ------------- ------------- 9,552 -- -- -- -- -- (1,871) 939 1,172 1,288 1,012 683 ------------- ------------- ------------- ------------- ------------- ------------- 7,681 939 1,172 1,288 1,012 683 ------------- ------------- ------------- ------------- ------------- ------------- 341,208 190,638 152,814 435,216 472,848 400,718 ------------- ------------- ------------- ------------- ------------- ------------- $ 318,818 $ 172,390 $ 143,336 $ 433,307 $ 454,043 $ 385,005 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -33- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SALOMON SALOMON SALOMON BROTHERS BROTHERS BROTHERS VARIABLE VARIABLE VARIABLE EQUITY AGGRESSIVE AGGRESSIVE GROWTH & INDEX GROWTH GROWTH INCOME PORTFOLIO - FUND - FUND - FUND - CLASS II CLASS I CLASS II CLASS I SHARES SHARES SHARES SHARES ----------- ---------- ---------- --------- INVESTMENT INCOME: Dividends ................................... $ 84,221 $ -- $ -- $ 9,225 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 47,050 18,608 23,563 7,257 Administrative fees ......................... 3,990 1,575 2,043 646 --------- --------- --------- --------- Total expenses ............................ 51,040 20,183 25,606 7,903 --------- --------- --------- --------- Net investment income (loss) ............ 33,181 (20,183) (25,606) 1,322 --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- -- Realized gain (loss) on sale of investments 7,714 5,164 (1,491) 126 --------- --------- --------- --------- Realized gain (loss) .................... 7,714 5,164 (1,491) 126 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 412,757 197,341 195,249 60,173 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 453,652 $ 182,322 $ 168,152 $ 61,621 ========= ========= ========= =========
See Notes to Financial Statements -34- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
GLOBAL LIFE GLOBAL WORLDWIDE BALANCED SCIENCES TECHNOLOGY GROWTH LAZARD PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - RETIREMENT GROWTH AND SERVICE SERVICE SERVICE SERVICE SMALL CAP INCOME SHARES SHARES SHARES SHARES PORTFOLIO PORTFOLIO ------------- ------------- ------------- ------------- ------------- ------------- $ 6,281 $ -- $ -- $ 1,122 $ -- $ 31,378 ------------- ------------- ------------- ------------- ------------- ------------- 3,652 2,392 3,258 1,632 13,543 25,335 300 196 282 142 1,120 2,084 ------------- ------------- ------------- ------------- ------------- ------------- 3,952 2,588 3,540 1,774 14,663 27,419 ------------- ------------- ------------- ------------- ------------- ------------- 2,329 (2,588) (3,540) (652) (14,663) 3,959 ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- 31,897 102 (18) (290) 40 1,274 1,594 ------------- ------------- ------------- ------------- ------------- ------------- 102 (18) (290) 40 1,274 33,491 ------------- ------------- ------------- ------------- ------------- ------------- 15,992 10,294 22,851 4,548 214,246 277,402 ------------- ------------- ------------- ------------- ------------- ------------- $ 18,423 $ 7,688 $ 19,021 $ 3,936 $ 200,857 $ 314,852 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -35- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
MERRILL MERRILL OPPENHEIMER LYNCH LYNCH CAPITAL GLOBAL VALUE APPRECIATION MID-CAP ALLOCATION OPPORTUNITIES FUND/VA - VALUE V.I. FUND - V.I. FUND - SERVICE PORTFOLIO CLASS III CLASS III SHARES --------- ----------- ------------- ------------ INVESTMENT INCOME: Dividends ................................... $ 10,852 $ 40,329 $ -- $ 637 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 23,383 3,289 8,229 16,316 Administrative fees ......................... 2,021 257 677 1,450 --------- --------- --------- --------- Total expenses ............................ 25,404 3,546 8,906 17,766 --------- --------- --------- --------- Net investment income (loss) ............ (14,552) 36,783 (8,906) (17,129) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ 55,283 -- 466,143 -- Realized gain (loss) on sale of investments 1,182 20 316 (46) --------- --------- --------- --------- Realized gain (loss) .................... 56,465 20 466,459 (46) --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 392,271 24,537 (313,747) 142,506 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 434,184 $ 61,340 $ 143,806 $ 125,331 ========= ========= ========= =========
See Notes to Financial Statements -36- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
OPPENHEIMER PIONEER GLOBAL OPPENHEIMER AMERICA PIONEER SECURITIES MAIN STREET REAL RETURN TOTAL RETURN INCOME VCT BALANCED VCT FUND/VA - FUND/VA - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - SERVICE SERVICE ADMINISTRATIVE ADMINISTRATIVE CLASS II CLASS II SHARES SHARES CLASS CLASS SHARES SHARES ------------- ------------- -------------- -------------- ------------- ------------- $ 4,831 $ -- $ 24,069 $ 70,294 $ 61,847 $ 27,560 ------------- ------------- ------------- ------------- ------------- ------------- 23,328 6,722 35,069 60,911 22,093 15,397 2,026 572 3,046 5,253 1,988 1,315 ------------- ------------- ------------- ------------- ------------- ------------- 25,354 7,294 38,115 66,164 24,081 16,712 ------------- ------------- ------------- ------------- ------------- ------------- (20,523) (7,294) (14,046) 4,130 37,766 10,848 ------------- ------------- ------------- ------------- ------------- ------------- -- -- 130,243 114,127 -- -- (411) 234 3,817 235 38 1,893 ------------- ------------- ------------- ------------- ------------- ------------- (411) 234 134,060 114,362 38 1,893 ------------- ------------- ------------- ------------- ------------- ------------- 474,084 98,382 41,727 14,357 (11,779) 51,435 ------------- ------------- ------------- ------------- ------------- ------------- $ 453,150 $ 91,322 $ 161,741 $ 132,849 $ 26,025 $ 64,176 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -37- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
PIONEER PIONEER EMERGING EQUITY PIONEER PIONEER MARKETS VCT INCOME VCT EUROPE VCT FUND VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- INVESTMENT INCOME: Dividends ................................... $ 5,851 $ 38,817 $ 476 $ 23,976 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 17,724 20,569 1,932 36,322 Administrative fees ......................... 1,545 1,849 161 3,064 --------- --------- --------- --------- Total expenses ............................ 19,269 22,418 2,093 39,386 --------- --------- --------- --------- Net investment income (loss) ............ (13,418) 16,399 (1,617) (15,410) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- -- Realized gain (loss) on sale of investments (1,492) 2,030 495 1,845 --------- --------- --------- --------- Realized gain (loss) .................... (1,492) 2,030 495 1,845 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 364,118 261,058 35,044 353,693 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 349,208 $ 279,487 $ 33,922 $ 340,128 ========= ========= ========= =========
See Notes to Financial Statements -38- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
PIONEER PIONEER PIONEER PIONEER PIONEER PIONEER OAK RIDGE PAPP GROWTH HIGH YIELD INTERNATIONAL MID CAP LARGE CAP AMERICA-PACIFIC SHARES VCT VCT VALUE VCT VALUE VCT GROWTH VCT RIM PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - FUND VCT - CLASS II CLASS II CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES SHARES SHARES ------------- ------------- ------------- ------------- ------------- --------------- $ -- $ 156,808 $ 744 $ 2,550 $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- 6,529 50,604 4,005 25,058 7,176 2,713 582 4,668 349 2,214 588 221 ------------- ------------- ------------- ------------- ------------- ------------- 7,111 55,272 4,354 27,272 7,764 2,934 ------------- ------------- ------------- ------------- ------------- ------------- (7,111) 101,536 (3,610) (24,722) (7,764) (2,934) ------------- ------------- ------------- ------------- ------------- ------------- -- 9,033 -- 8,933 -- -- (318) (29,088) 2,104 6,091 15 44 ------------- ------------- ------------- ------------- ------------- ------------- (318) (20,055) 2,104 15,024 15 44 ------------- ------------- ------------- ------------- ------------- ------------- 86,739 151,422 75,743 388,014 106,062 26,619 ------------- ------------- ------------- ------------- ------------- ------------- $ 79,310 $ 232,903 $ 74,237 $ 378,316 $ 98,313 $ 23,729 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -39- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
PIONEER PAPP SMALL & PIONEER PIONEER PIONEER MID CAP REAL ESTATE SMALL CAP SMALL GROWTH VCT SHARES VCT VALUE VCT COMPANY VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II CLASS II CLASS II CLASS II SHARES SHARES SHARES SHARES ----------- ----------- ----------- ----------- INVESTMENT INCOME: Dividends ................................... $ -- $ 43,361 $ -- $ -- --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 5,114 16,738 15,077 2,784 Administrative fees ......................... 426 1,504 1,370 240 --------- --------- --------- --------- Total expenses ............................ 5,540 18,242 16,447 3,024 --------- --------- --------- --------- Net investment income (loss) ............ (5,540) 25,119 (16,447) (3,024) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- -- Realized gain (loss) on sale of investments (12,046) 849 2,134 (1,775) --------- --------- --------- --------- Realized gain (loss) .................... (12,046) 849 2,134 (1,775) --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 43,683 388,821 241,290 29,030 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 26,097 $ 414,789 $ 226,977 $ 24,231 ========= ========= ========= =========
See Notes to Financial Statements -40- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
PIONEER STRATEGIC PIONEER PUTNAM VT PUTNAM VT INCOME VCT VALUE VCT INTERNATIONAL SMALL CAP PORTFOLIO - PORTFOLIO - EQUITY FUND - VALUE FUND - ALL CAP INVESTORS CLASS II CLASS II CLASS IB CLASS IB FUND - FUND - SHARES SHARES SHARES SHARES CLASS I CLASS I ------------- ------------- ------------- ------------- ------------- ------------- $ 183,756 $ 435 $ 5,420 $ 1,060 $ 12,905 $ 23,956 ------------- ------------- ------------- ------------- ------------- ------------- 54,104 21,881 6,050 27,891 20,681 11,478 4,864 1,837 554 2,476 1,764 971 ------------- ------------- ------------- ------------- ------------- ------------- 58,968 23,718 6,604 30,367 22,445 12,449 ------------- ------------- ------------- ------------- ------------- ------------- 124,788 (23,283) (1,184) (29,307) (9,540) 11,507 ------------- ------------- ------------- ------------- ------------- ------------- 33,336 341 -- -- -- -- 1,280 670 801 1,543 753 664 ------------- ------------- ------------- ------------- ------------- ------------- 34,616 1,011 801 1,543 753 664 ------------- ------------- ------------- ------------- ------------- ------------- 241,095 245,787 51,982 645,382 167,711 88,928 ------------- ------------- ------------- ------------- ------------- ------------- $ 400,499 $ 223,515 $ 51,599 $ 617,618 $ 158,924 $ 101,099 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -41- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SCUDDER LARGE CAP SMALL CAP REAL ESTATE GROWTH GROWTH TOTAL RETURN SECURITIES FUND - FUND - FUND - PORTFOLIO - CLASS I CLASS I CLASS II CLASS B --------- --------- ------------ ----------- INVESTMENT INCOME: Dividends ................................... $ 2,814 $ -- $ 18,968 $ 3,664 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 12,727 17,565 7,113 22,939 Administrative fees ......................... 1,087 1,503 631 1,902 --------- --------- --------- --------- Total expenses ............................ 13,814 19,068 7,744 24,841 --------- --------- --------- --------- Net investment income (loss) ............ (11,000) (19,068) 11,224 (21,177) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- 21,386 814 Realized gain (loss) on sale of investments (2,618) 1,307 1,638 17,594 --------- --------- --------- --------- Realized gain (loss) .................... (2,618) 1,307 23,024 18,408 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 65,226 308,022 21,249 496,476 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 51,608 $ 290,261 $ 55,497 $ 493,707 ========= ========= ========= =========
See Notes to Financial Statements -42- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
21ST CENTURY CAPITAL GLOBAL GROWTH AND HEALTH GROWTH GROWTH DISCOVERY INCOME SCIENCES INTERNATIONAL PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ 352 $ -- $ 1,558 $ -- $ 2,972 ------------- ------------- ------------- ------------- ------------- ------------- 3,973 8,469 9,291 18,885 11,894 15,058 314 687 748 1,490 955 1,211 ------------- ------------- ------------- ------------- ------------- ------------- 4,287 9,156 10,039 20,375 12,849 16,269 ------------- ------------- ------------- ------------- ------------- ------------- (4,287) (8,804) (10,039) (18,817) (12,849) (13,297) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- (797) 126 8,811 (3,217) (625) 1,213 ------------- ------------- ------------- ------------- ------------- ------------- (797) 126 8,811 (3,217) (625) 1,213 ------------- ------------- ------------- ------------- ------------- ------------- 26,358 49,123 185,972 188,555 101,823 216,653 ------------- ------------- ------------- ------------- ------------- ------------- $ 21,274 $ 40,445 $ 184,744 $ 166,521 $ 88,349 $ 204,569 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -43- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SCUDDER SCUDDER CONSERVATIVE SCUDDER AGGRESSIVE SCUDDER INCOME FIXED GROWTH BLUE CHIP STRATEGY INCOME PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ----------- INVESTMENT INCOME: Dividends ................................... $ -- $ 456 $ -- $ 11,899 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 4,124 22,635 1,887 44,885 Administrative fees ......................... 324 1,816 156 3,706 --------- --------- --------- --------- Total expenses ............................ 4,448 24,451 2,043 48,591 --------- --------- --------- --------- Net investment income (loss) ............ (4,448) (23,995) (2,043) (36,692) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- 6,574 Realized gain (loss) on sale of investments (84) (1,941) 194 6,055 --------- --------- --------- --------- Realized gain (loss) .................... (84) (1,941) 194 12,629 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 28,062 259,559 13,416 125,103 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 23,530 $ 233,623 $ 11,567 $ 101,040 ========= ========= ========= =========
See Notes to Financial Statements -44- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SCUDDER SCUDDER SCUDDER GROWTH & SCUDDER INCOME & GLOBAL INCOME SCUDDER GROWTH SCUDDER GROWTH BLUE CHIP STRATEGY GROWTH STRATEGY HIGH INCOME STRATEGY PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------- ------------- ------------- ------------- ------------- ------------- $ 3,253 $ -- $ -- $ -- $ 25,034 $ -- ------------- ------------- ------------- ------------- ------------- ------------- 13,887 13,515 9,536 13,454 23,764 7,403 1,114 1,104 747 1,160 1,905 609 ------------- ------------- ------------- ------------- ------------- ------------- 15,001 14,619 10,283 14,614 25,669 8,012 ------------- ------------- ------------- ------------- ------------- ------------- (11,748) (14,619) (10,283) (14,614) (635) (8,012) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- 2,015 336 (112) 2,194 1,083 405 ------------- ------------- ------------- ------------- ------------- ------------- 2,015 336 (112) 2,194 1,083 405 ------------- ------------- ------------- ------------- ------------- ------------- 169,272 183,210 54,745 221,264 181,818 72,932 ------------- ------------- ------------- ------------- ------------- ------------- $ 159,539 $ 168,927 $ 44,350 $ 208,844 $ 182,266 $ 65,325 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -45- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SCUDDER SCUDDER SCUDDER SCUDDER INTERNATIONAL MONEY SMALL CAP STRATEGIC SELECT EQUITY MARKET GROWTH INCOME PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ------------- ----------- ----------- ----------- INVESTMENT INCOME: Dividends ................................... $ 955 $ 9,822 $ -- $ -- --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 15,554 26,967 10,119 22,686 Administrative fees ......................... 1,241 2,384 806 1,817 --------- --------- --------- --------- Total expenses ............................ 16,795 29,351 10,925 24,503 --------- --------- --------- --------- Net investment income (loss) ............ (15,840) (19,529) (10,925) (24,503) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- 13,307 Realized gain (loss) on sale of investments (2,080) -- (594) 461 --------- --------- --------- --------- Realized gain (loss) .................... (2,080) -- (594) 13,768 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 251,172 -- 108,422 175,317 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 233,252 $ (19,529) $ 96,903 $ 164,582 ========= ========= ========= =========
See Notes to Financial Statements -46- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SCUDDER SVS SVS SCUDDER TEMPLETON SVS DAVIS DREMAN DREMAN TECHNOLOGY FOREIGN SCUDDER VENTURE FINANCIAL HIGH RETURN GROWTH VALUE TOTAL RETURN VALUE SERVICES EQUITY PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 4,451 $ 138 $ 1,322 $ 5,803 ------------- ------------- ------------- ------------- ------------- ------------- 10,590 79 17,543 38,244 11,083 36,931 849 7 1,417 3,109 873 3,075 ------------- ------------- ------------- ------------- ------------- ------------- 11,439 86 18,960 41,353 11,956 40,006 ------------- ------------- ------------- ------------- ------------- ------------- (11,439) (86) (14,509) (41,215) (10,634) (34,203) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- (11,833) 1 (3,424) 3,324 304 3,930 ------------- ------------- ------------- ------------- ------------- ------------- (11,833) 1 (3,424) 3,324 304 3,930 ------------- ------------- ------------- ------------- ------------- ------------- 41,350 1,867 111,133 372,152 105,112 480,408 ------------- ------------- ------------- ------------- ------------- ------------- $ 18,078 $ 1,782 $ 93,200 $ 334,261 $ 94,782 $ 450,135 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -47- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SVS EAGLE SCUDDER SVS DREMAN FOCUSED SVS FOCUS GOVERNMENT & SMALL CAP LARGE CAP VALUE & AGENCY VALUE GROWTH GROWTH SECURITIES PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B ----------- ----------- ----------- ------------ INVESTMENT INCOME: Dividends ................................... $ 2,650 $ -- $ 451 $ 4,344 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 28,372 11,950 5,901 9,280 Administrative fees ......................... 2,335 951 457 767 --------- --------- --------- --------- Total expenses ............................ 30,707 12,901 6,358 10,047 --------- --------- --------- --------- Net investment income (loss) ............ (28,057) (12,901) (5,907) (5,703) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- 1,584 Realized gain (loss) on sale of investments 14,027 (1,695) 118 251 --------- --------- --------- --------- Realized gain (loss) .................... 14,027 (1,695) 118 1,835 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 460,948 71,165 56,157 16,330 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 446,918 $ 56,569 $ 50,368 $ 12,462 ========= ========= ========= =========
See Notes to Financial Statements -48- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SVS SCUDDER INVESCO SVS JANUS SVS JANUS SVS MFS LARGE CAP SVS DYNAMIC GROWTH AND GROWTH STRATEGIC VALUE INDEX 500 GROWTH INCOME OPPORTUNITIES VALUE PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B ------------- ------------- ------------- ------------- ------------- ------------- $ 2,451 $ 4,386 $ -- $ -- $ -- $ 181 ------------- ------------- ------------- ------------- ------------- ------------- 19,586 33,221 2,496 14,374 2,009 16,801 1,590 2,688 217 1,172 174 1,370 ------------- ------------- ------------- ------------- ------------- ------------- 21,176 35,909 2,713 15,546 2,183 18,171 ------------- ------------- ------------- ------------- ------------- ------------- (18,725) (31,523) (2,713) (15,546) (2,183) (17,990) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- 126 3,149 (1,611) 11,804 4,678 545 (2,005) ------------- ------------- ------------- ------------- ------------- ------------- 3,149 (1,611) 11,804 4,678 545 (1,879) ------------- ------------- ------------- ------------- ------------- ------------- 164,171 276,785 4,376 138,680 35,350 222,278 ------------- ------------- ------------- ------------- ------------- ------------- $ 148,595 $ 243,651 $ 13,467 $ 127,812 $ 33,712 $ 202,409 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -49- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
ALGER ALGER AMERICAN SVS OAK SVS TURNER AMERICAN LEVERAGED STRATEGIC MID CAP BALANCED ALLCAP EQUITY GROWTH PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS S CLASS S CLASS B CLASS B SHARES SHARES ----------- ----------- ----------- ----------- INVESTMENT INCOME: Dividends ................................... $ -- $ -- $ 8,302 $ -- --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 9,473 11,223 25,303 4,860 Administrative fees ......................... 749 878 2,092 406 --------- --------- --------- --------- Total expenses ............................ 10,222 12,101 27,395 5,266 --------- --------- --------- --------- Net investment income (loss) ............ (10,222) (12,101) (19,093) (5,266) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- -- Realized gain (loss) on sale of investments (1,060) 174 2,258 (8,160) --------- --------- --------- --------- Realized gain (loss) .................... (1,060) 174 2,258 (8,160) --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 47,555 127,646 156,702 50,904 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 36,273 $ 115,719 $ 139,867 $ 37,478 ========= ========= ========= =========
See Notes to Financial Statements -50- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
DISCIPLINED CONVERTIBLE MID CAP EQUITY FEDERATED FEDERATED SECURITIES STOCK INCOME HIGH YIELD STOCK LARGE CAP PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- ------------- ------------- ------------- ------------- ------------- $ 44,764 $ 6,712 $ 53,539 $ 205,452 $ 6,186 $ 9,693 ------------- ------------- ------------- ------------- ------------- ------------- 17,073 19,710 32,311 22,920 3,515 7,426 1,398 1,780 2,633 1,969 296 615 ------------- ------------- ------------- ------------- ------------- ------------- 18,471 21,490 34,944 24,889 3,811 8,041 ------------- ------------- ------------- ------------- ------------- ------------- 26,293 (14,778) 18,595 180,563 2,375 1,652 ------------- ------------- ------------- ------------- ------------- ------------- -- 72,183 140,805 -- -- -- 1,585 225 18 2,791 (1,447) (833) ------------- ------------- ------------- ------------- ------------- ------------- 1,585 72,408 140,823 2,791 (1,447) (833) ------------- ------------- ------------- ------------- ------------- ------------- 37,687 210,494 162,959 (48,938) 27,602 69,474 ------------- ------------- ------------- ------------- ------------- ------------- $ 65,565 $ 268,124 $ 322,377 $ 134,416 $ 28,530 $ 70,293 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -51- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
MERRILL LAZARD LYNCH MFS MFS INTERNATIONAL LARGE CAP EMERGING MID CAP STOCK CORE GROWTH GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- --------- --------- --------- INVESTMENT INCOME: Dividends ................................... $ 21,833 $ 5,865 $ -- $ -- --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 7,536 3,912 8,385 10,579 Administrative fees ......................... 640 323 764 956 --------- --------- --------- --------- Total expenses ............................ 8,176 4,235 9,149 11,535 --------- --------- --------- --------- Net investment income (loss) ............ 13,657 1,630 (9,149) (11,535) --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ -- -- -- -- Realized gain (loss) on sale of investments 1,423 225 (253) 400 --------- --------- --------- --------- Realized gain (loss) .................... 1,423 225 (253) 400 --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 101,984 69,184 106,494 127,263 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 117,064 $ 71,039 $ 97,092 $ 116,128 ========= ========= ========= =========
See Notes to Financial Statements -52- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SOCIAL TRAVELERS U.S. MFS PIONEER AWARENESS QUALITY GOVERNMENT AIM CAPITAL VALUE FUND STOCK BOND SECURITIES APPRECIATION PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- ------------- ------------- ------------- ------------- ------------- $ 15,473 $ 3,398 $ 1,766 $ 213,794 $ 66,180 $ 1,474 ------------- ------------- ------------- ------------- ------------- ------------- 4,754 1,976 1,366 34,042 4,789 6,833 403 179 118 2,884 450 596 ------------- ------------- ------------- ------------- ------------- ------------- 5,157 2,155 1,484 36,926 5,239 7,429 ------------- ------------- ------------- ------------- ------------- ------------- 10,316 1,243 282 176,868 60,941 (5,955) ------------- ------------- ------------- ------------- ------------- ------------- 11,860 -- -- -- 136 -- 1,917 1,814 37 272 145 159 ------------- ------------- ------------- ------------- ------------- ------------- 13,777 1,814 37 272 281 159 ------------- ------------- ------------- ------------- ------------- ------------- 62,625 24,871 24,557 (131,625) (47,079) 79,714 ------------- ------------- ------------- ------------- ------------- ------------- $ 86,718 $ 27,928 $ 24,876 $ 45,515 $ 14,143 $ 73,918 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -53- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
SB ADJUSTABLE PIONEER RATE INCOME MFS STRATEGIC PORTFOLIO - STRATEGIC TOTAL RETURN INCOME CLASS I EQUITY PORTFOLIO PORTFOLIO SHARES PORTFOLIO ------------ --------- ------------- --------- INVESTMENT INCOME: Dividends ................................... $ 309,704 $ 144,376 $ 15,682 $ 6,033 --------- --------- --------- --------- EXPENSES: Insurance charges ........................... 85,722 7,476 10,176 3,060 Administrative fees ......................... 7,315 613 832 268 --------- --------- --------- --------- Total expenses ............................ 93,037 8,089 11,008 3,328 --------- --------- --------- --------- Net investment income (loss) ............ 216,667 136,287 4,674 2,705 --------- --------- --------- --------- REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain distribution ................ 315,838 -- -- -- Realized gain (loss) on sale of investments 4,326 523 3,582 (2,111) --------- --------- --------- --------- Realized gain (loss) .................... 320,164 523 3,582 (2,111) --------- --------- --------- --------- Change in unrealized gain (loss) on investments .......................... 208,909 (69,048) (11,708) 16,348 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations ................. $ 745,740 $ 67,762 $ (3,452) $ 16,942 ========= ========= ========= =========
See Notes to Financial Statements -54- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2004
DYNAMIC CAPITAL COMSTOCK ENTERPRISE CONTRAFUND(R) APPRECIATION MID CAP PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II CLASS II SERVICE SERVICE SERVICE SHARES SHARES CLASS 2 CLASS 2 CLASS 2 COMBINED ------------- ------------- ------------- ------------- ------------- ------------- $ 4,884 $ 32 $ 461 $ -- $ -- $ 2,533,434 ------------- ------------- ------------- ------------- ------------- ------------- 27,351 1,541 29,361 3,991 44,411 2,393,730 2,332 134 2,510 330 3,880 202,987 ------------- ------------- ------------- ------------- ------------- ------------- 29,683 1,675 31,871 4,321 48,291 2,596,717 ------------- ------------- ------------- ------------- ------------- ------------- (24,799) (1,643) (31,410) (4,321) (48,291) (63,283) ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- 1,589,442 1,340 90 1,984 127 5,135 90,607 ------------- ------------- ------------- ------------- ------------- ------------- 1,340 90 1,984 127 5,135 1,680,049 ------------- ------------- ------------- ------------- ------------- ------------- 384,691 10,160 452,645 18,885 1,091,375 22,751,634 ------------- ------------- ------------- ------------- ------------- ------------- $ 361,232 $ 8,607 $ 423,219 $ 14,691 $ 1,048,219 $ 24,368,400 ============= ============= ============= ============= ============= =============
See Notes to Financial Statements -55- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
CAPITAL HIGH YIELD MANAGED APPRECIATION FUND BOND TRUST ASSETS TRUST --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (7,777) $ (36) $ 95,481 $ -- $ 20,239 $ -- Realized gain (loss) .................. 1,051 1 46 -- 10,219 -- Change in unrealized gain (loss) on investments ...................... 158,437 727 (50,761) -- 39,683 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 151,711 692 44,766 -- 70,141 -- ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,255,610 7,315 1,283,052 -- 1,066,771 -- Participant transfers from other funding options ..................... 236,513 -- 255,205 -- 149,882 -- Administrative charges ................ (89) -- (20) -- (32) -- Contract surrenders ................... (2,438) -- (3,006) -- (2,291) -- Participant transfers to other funding options ..................... (8,182) -- (27,422) -- (13,639) -- Other payments to participants ........ -- -- -- -- 13,438 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,481,414 7,315 1,507,809 -- 1,214,129 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,633,125 8,007 1,552,575 -- 1,284,270 -- NET ASSETS: Beginning of year ................... 8,007 -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,641,132 $ 8,007 $ 1,552,575 $ -- $ 1,284,270 $ -- ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -56- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
AIM V.I. AIM V.I. CAPITAL MID CAP CORE MONEY MARKET APPRECIATION FUND - EQUITY FUND - AIM V.I. PORTFOLIO SERIES II SERIES II UTILITIES FUND - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (31,899) $ (914) $ (21,813) $ (336) $ (12,093) $ (889) $ (2,533) $ 405 -- -- (852) 58 63,921 973 979 30 -- -- 207,447 4,307 49,831 13,860 86,305 5,145 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (31,899) (914) 184,782 4,029 101,659 13,944 84,751 5,580 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 16,334,780 653,825 2,253,699 97,519 740,444 236,224 477,404 65,816 3,442,145 59,920 604,867 178 482,097 2,482 54,322 66 (1,008) (4) (168) -- (90) (2) (31) -- (216,434) (800) (10,825) -- (7,153) -- (487) -- (10,652,092) (94,943) (91,831) (8,717) (92,063) -- (9,780) (357) (14,315) -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 8,893,076 617,998 2,755,742 88,980 1,123,235 238,704 521,428 65,525 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 8,861,177 617,084 2,940,524 93,009 1,224,894 252,648 606,179 71,105 617,084 -- 93,009 -- 252,648 -- 71,105 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 9,478,261 $ 617,084 $ 3,033,533 $ 93,009 $ 1,477,542 $ 252,648 $ 677,284 $ 71,105 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -57- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
ALLIANCEBERNSTEIN GLOBAL GROWTH PREMIER GROWTH FUND - CLASS 2 GROWTH FUND - PORTFOLIO - CLASS B SHARES CLASS 2 SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (15,736) $ (567) $ (30,400) $ (391) $ (88,330) $ (908) Realized gain (loss) .................. (3,016) 3 2,265 38 535 188 Change in unrealized gain (loss) on investments ...................... 122,937 5,931 501,400 9,218 1,542,832 22,038 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 104,185 5,367 473,265 8,865 1,455,037 21,318 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,179,698 115,702 4,647,245 151,548 14,449,613 391,459 Participant transfers from other funding options ..................... 208,219 54,652 850,211 5,637 3,053,022 64,152 Administrative charges ................ (95) -- (198) (2) (739) (3) Contract surrenders ................... (8,443) -- (2,367) (256) 1,791 (993) Participant transfers to other funding options ..................... (88,839) -- (91,701) -- (418,082) -- Other payments to participants ........ -- -- (3,864) -- (5,935) -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,290,540 170,354 5,399,326 156,927 17,079,670 454,615 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,394,725 175,721 5,872,591 165,792 18,534,707 475,933 NET ASSETS: Beginning of year ................... 175,721 -- 165,792 -- 475,933 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,570,446 $ 175,721 $ 6,038,383 $ 165,792 $ 19,010,640 $ 475,933 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -58- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
CREDIT SUISSE CREDIT SUISSE TRUST TRUST GLOBAL DELAWARE GROWTH-INCOME FUND - EMERGING MARKETS POST-VENTURE VIP REIT SERIES - CLASS 2 SHARES PORTFOLIO CAPITAL PORTFOLIO STANDARD CLASS - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 13,570 $ 1,459 $ (6,523) $ (138) $ (3,615) $ (21) $ (24,606) $ (582) 1,234 138 2,148 1 (1,737) 3 7,425 14 915,740 19,745 137,149 3,049 49,589 538 678,972 10,700 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 930,544 21,342 132,774 2,912 44,237 520 661,791 10,132 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 12,376,601 282,496 682,398 62,954 376,056 12,804 4,322,726 132,445 2,931,077 69,869 90,231 14,622 133,050 -- 760,408 25,102 (541) (1) (29) -- (23) -- (203) -- 19,590 (1,134) (2,608) -- (1,800) -- (14,934) (40) (281,231) (1,096) (34,521) (170) (147,768) (76) (69,059) (26) (9,041) -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 15,036,455 350,134 735,471 77,406 359,515 12,728 4,998,938 157,481 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 15,966,999 371,476 868,245 80,318 403,752 13,248 5,660,729 167,613 371,476 -- 80,318 -- 13,248 -- 167,613 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 16,338,475 $ 371,476 $ 948,563 $ 80,318 $ 417,000 $ 13,248 $ 5,828,342 $ 167,613 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -59- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
DREYFUS DREYFUS SOCIALLY DREYFUS VIF MIDCAP STOCK RESPONSIBLE APPRECIATION PORTFOLIO - GROWTH FUND, INC.- PORTFOLIO - SERVICE SHARES SERVICE SHARES INITIAL SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (20,994) $ (630) $ (1,586) $ (320) $ 6,812 $ 702 Realized gain (loss) .................. 77,240 34 3,693 5 462 44 Change in unrealized gain (loss) on investments ...................... 252,095 13,366 2,466 4,351 28,523 13,197 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 308,341 12,770 4,573 4,036 35,797 13,943 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 2,398,187 238,365 66,880 68,431 735,509 124,204 Participant transfers from other funding options ..................... 314,488 11,978 357 -- 145,137 5,560 Administrative charges ................ (95) (1) (3) -- (90) (1) Contract surrenders ................... (153,846) (21) (67,320) -- (1,388) -- Participant transfers to other funding options ..................... (48,115) (402) (113) -- (10,553) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 2,510,619 249,919 (199) 68,431 868,615 129,763 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,818,960 262,689 4,374 72,467 904,412 143,706 NET ASSETS: Beginning of year ................... 262,689 -- 72,467 -- 143,706 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 3,081,649 $ 262,689 $ 76,841 $ 72,467 $ 1,048,118 $ 143,706 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -60- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
DREYFUS VIF FRANKLIN DEVELOPING RISING DIVIDENDS FRANKLIN MUTUAL SHARES LEADERS PORTFOLIO - SECURITIES FUND - SMALL CAP FUND - SECURITIES FUND - INITIAL SHARES CLASS 2 SHARES CLASS 2 SHARES CLASS 2 SHARES - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (24,087) $ (436) $ (30,071) $ (244) $ (19,187) $ (538) $ (10,650) $ (404) 7 119 7,681 6 939 14 1,172 37 294,359 7,025 341,208 3,462 190,638 7,651 152,814 7,633 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 270,279 6,708 318,818 3,224 172,390 7,127 143,336 7,266 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,210,094 83,039 4,514,833 69,036 1,827,680 148,123 1,648,444 111,399 452,837 35,533 1,287,613 9,759 421,302 7,742 348,305 15,168 (260) (2) (215) -- (168) -- (89) -- (6,536) (20) (26,030) -- (6,734) (1,565) (11,724) (752) (74,217) -- (153,893) -- (11,422) -- (4,642) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,581,918 118,550 5,622,308 78,795 2,230,658 154,300 1,980,294 125,815 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,852,197 125,258 5,941,126 82,019 2,403,048 161,427 2,123,630 133,081 125,258 -- 82,019 -- 161,427 -- 133,081 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 3,977,455 $ 125,258 $ 6,023,145 $ 82,019 $ 2,564,475 $ 161,427 $ 2,256,711 $ 133,081 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -61- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
TEMPLETON TEMPLETON TEMPLETON DEVELOPING MARKETS FOREIGN GROWTH SECURITIES FUND - SECURITIES FUND - SECURITIES FUND - CLASS 2 SHARES CLASS 2 SHARES CLASS 2 SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (3,197) $ (53) $ (19,817) $ (712) $ (16,396) $ (570) Realized gain (loss) .................. 1,288 3 1,012 21 683 4,759 Change in unrealized gain (loss) on investments ...................... 435,216 1,941 472,848 16,084 400,718 10,616 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 433,307 1,891 454,043 15,393 385,005 14,805 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 2,288,250 9,928 3,757,002 244,603 3,606,960 112,286 Participant transfers from other funding options ..................... 409,415 5,364 891,351 274 618,819 29,131 Administrative charges ................ (163) -- (174) -- (308) (1) Contract surrenders ................... (1,690) -- (44,621) -- (23,370) -- Participant transfers to other funding options ..................... (18,013) -- (79,242) -- (33,808) (149) Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 2,677,799 15,292 4,524,316 244,877 4,168,293 141,267 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 3,111,106 17,183 4,978,359 260,270 4,553,298 156,072 NET ASSETS: Beginning of year ................... 17,183 -- 260,270 -- 156,072 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 3,128,289 $ 17,183 $ 5,238,629 $ 260,270 $ 4,709,370 $ 156,072 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -62- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SALOMON BROTHERS SALOMON BROTHERS SALOMON BROTHERS VARIABLE EQUITY VARIABLE AGGRESSIVE VARIABLE AGGRESSIVE GROWTH & INDEX PORTFOLIO - GROWTH FUND - GROWTH FUND - INCOME FUND - CLASS II SHARES CLASS I SHARES CLASS II SHARES CLASS I SHARES - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 33,181 $ 922 $ (20,183) $ (529) $ (25,606) $ (449) $ 1,322 $ 52 7,714 1,999 5,164 7 (1,491) 2 126 2 412,757 23,020 197,341 9,518 195,249 7,702 60,173 3,580 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 453,652 25,941 182,322 8,996 168,152 7,255 61,621 3,634 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,588,711 256,915 2,456,429 130,437 2,520,714 177,040 990,657 55,075 1,638,698 6,699 384,822 15,747 517,929 839 18,468 11,114 (691) (18) (136) (1) (228) -- (71) -- (16,885) -- (375) -- (40,322) (1,566) (6,364) -- (230,858) -- (203,534) -- (92,526) -- (253) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 5,978,975 263,596 2,637,206 146,183 2,905,567 176,313 1,002,437 66,189 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 6,432,627 289,537 2,819,528 155,179 3,073,719 183,568 1,064,058 69,823 289,537 -- 155,179 -- 183,568 -- 69,823 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 6,722,164 $ 289,537 $ 2,974,707 $ 155,179 $ 3,257,287 $ 183,568 $ 1,133,881 $ 69,823 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -63- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
GLOBAL LIFE SCIENCES GLOBAL BALANCED PORTFOLIO - PORTFOLIO - TECHNOLOGY PORTFOLIO - SERVICE SHARES SERVICE SHARES SERVICE SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 2,329 $ 104 $ (2,588) $ (74) $ (3,540) $ (50) Realized gain (loss) .................. 102 315 (18) 2 (290) 2 Change in unrealized gain (loss) on investments ...................... 15,992 2,938 10,294 1,322 22,851 701 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 18,423 3,357 7,688 1,250 19,021 653 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 170,123 45,254 180,747 16,313 297,720 7,315 Participant transfers from other funding options ..................... 68,973 4,192 5,555 -- 59,425 4,395 Administrative charges ................ (58) (3) (33) -- (41) -- Contract surrenders ................... -- -- (2,031) -- (726) -- Participant transfers to other funding options ..................... (252) -- (76) -- (6,624) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 238,786 49,443 184,162 16,313 349,754 11,710 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 257,209 52,800 191,850 17,563 368,775 12,363 NET ASSETS: Beginning of year ................... 52,800 -- 17,563 -- 12,363 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 310,009 $ 52,800 $ 209,413 $ 17,563 $ 381,138 $ 12,363 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -64- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
WORLDWIDE LAZARD RETIREMENT GROWTH PORTFOLIO - SMALL CAP GROWTH AND MID-CAP VALUE SERVICE SHARES PORTFOLIO INCOME PORTFOLIO PORTFOLIO - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (652) $ (139) $ (14,663) $ (266) $ 3,959 $ 585 $ (14,552) $ 278 40 11 1,274 115 33,491 25 56,465 1,240 4,548 4,311 214,246 5,070 277,402 11,817 392,271 5,610 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,936 4,183 200,857 4,919 314,852 12,427 434,184 7,128 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 73,542 32,645 1,588,078 44,333 3,229,748 171,427 3,628,622 114,623 21,299 1,063 346,120 28,343 647,808 26,243 580,435 13,956 (23) -- (93) -- (149) -- (106) -- (393) -- (3,618) -- (5,918) (332) 9,484 -- (439) -- (44,468) -- (62,099) -- (83,712) (6) -- -- (3,723) -- -- -- (4,064) -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 93,986 33,708 1,882,296 72,676 3,809,390 197,338 4,130,659 128,573 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 97,922 37,891 2,083,153 77,595 4,124,242 209,765 4,564,843 135,701 37,891 -- 77,595 -- 209,765 -- 135,701 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 135,813 $ 37,891 $ 2,160,748 $ 77,595 $ 4,334,007 $ 209,765 $ 4,700,544 $ 135,701 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -65- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
MERRILL LYNCH MERRILL LYNCH OPPENHEIMER GLOBAL ALLOCATION VALUE OPPORTUNITIES CAPITAL APPRECIATION V.I. FUND - V.I. FUND - FUND/VA - CLASS III CLASS III SERVICE SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 36,783 $ -- $ (8,906) $ -- $ (17,129) $ (172) Realized gain (loss) .................. 20 -- 466,459 -- (46) 1 Change in unrealized gain (loss) on investments ...................... 24,537 -- (313,747) -- 142,506 4,860 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 61,340 -- 143,806 -- 125,331 4,689 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,079,809 -- 1,398,825 -- 1,864,855 181,299 Participant transfers from other funding options ..................... 196,624 -- 259,050 -- 431,759 -- Administrative charges ................ (15) -- (43) -- (85) -- Contract surrenders ................... (244) -- (225) -- (5,867) -- Participant transfers to other funding options ..................... (140) -- (40,401) -- (6,680) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,276,034 -- 1,617,206 -- 2,283,982 181,299 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,337,374 -- 1,761,012 -- 2,409,313 185,988 NET ASSETS: Beginning of year ................... -- -- -- -- 185,988 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,337,374 $ -- $ 1,761,012 $ -- $ 2,595,301 $ 185,988 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -66- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
OPPENHEIMER OPPENHEIMER REAL RETURN TOTAL RETURN GLOBAL SECURITIES MAIN STREET PORTFOLIO - PORTFOLIO - FUND/VA - FUND/VA - ADMINISTRATIVE ADMINISTRATIVE SERVICE SHARES SERVICE SHARES CLASS CLASS - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (20,523) $ (327) $ (7,294) $ -- $ (14,046) $ (549) $ 4,130 $ 606 (411) 132 234 -- 134,060 5,499 114,362 4,779 474,084 9,573 98,382 -- 41,727 (1,232) 14,357 2,067 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 453,150 9,378 91,322 -- 161,741 3,718 132,849 7,452 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,784,019 163,589 1,379,511 -- 3,379,975 354,191 6,750,081 540,390 650,662 9,609 73,650 -- 933,725 2,600 1,529,819 109,468 (161) -- (11) -- (233) (2) (442) (4) (48,972) (3,139) (3,092) -- 29,479 -- 2,502 (691) (41,094) (13) (1,431) -- (174,238) (14,523) (160,250) (290) -- -- -- -- (9,927) -- (16,480) -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,344,454 170,046 1,448,627 -- 4,158,781 342,266 8,105,230 648,873 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,797,604 179,424 1,539,949 -- 4,320,522 345,984 8,238,079 656,325 179,424 -- -- -- 345,984 -- 656,325 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 3,977,028 $ 179,424 $ 1,539,949 $ -- $ 4,666,506 $ 345,984 $ 8,894,404 $ 656,325 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -67- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER PIONEER PIONEER AMERICA INCOME BALANCED VCT EMERGING MARKETS VCT PORTFOLIO - PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 37,766 $ 118 $ 10,848 $ 479 $ (13,418) $ (151) Realized gain (loss) .................. 38 -- 1,893 -- (1,492) 285 Change in unrealized gain (loss) on investments ...................... (11,779) (8) 51,435 1,657 364,118 5,859 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 26,025 110 64,176 2,136 349,208 5,993 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 2,838,974 94,049 1,402,395 105,495 1,957,250 82,612 Participant transfers from other funding options ..................... 1,044,822 -- 1,220,274 -- 395,184 178 Administrative charges ................ (206) -- (78) -- (190) -- Contract surrenders ................... (29,438) -- (28,529) -- (7,646) (1,568) Participant transfers to other funding options ..................... (244,042) -- (135,819) -- (48,480) (4,785) Other payments to participants ........ -- -- 42 -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 3,610,110 94,049 2,458,285 105,495 2,296,118 76,437 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 3,636,135 94,159 2,522,461 107,631 2,645,326 82,430 NET ASSETS: Beginning of year ................... 94,159 -- 107,631 -- 82,430 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 3,730,294 $ 94,159 $ 2,630,092 $ 107,631 $ 2,727,756 $ 82,430 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -68- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER PIONEER PIONEER PIONEER EQUITY INCOME EUROPE VCT FUND VCT GROWTH SHARES VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES CLASS II SHARES - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 16,399 $ 235 $ (1,617) $ (132) $ (15,410) $ (108) $ (7,111) $ (279) 2,030 4 495 7 1,845 59 (318) (1) 261,058 6,538 35,044 3,428 353,693 20,004 86,739 2,031 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 279,487 6,777 33,922 3,303 340,128 19,955 79,310 1,751 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,174,339 110,033 176,865 21,105 3,711,277 392,287 675,144 86,452 655,643 4,339 94,326 -- 364,347 3,913 156,402 -- (191) -- (9) -- (344) (1) (57) -- (29,672) -- (53) -- (48,886) -- (21,255) -- (60,923) -- (3,319) -- (174,845) (9,455) (15,855) -- 75 -- -- -- -- -- 89 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,739,271 114,372 267,810 21,105 3,851,549 386,744 794,468 86,452 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,018,758 121,149 301,732 24,408 4,191,677 406,699 873,778 88,203 121,149 -- 24,408 -- 406,699 -- 88,203 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 4,139,907 $ 121,149 $ 326,140 $ 24,408 $ 4,598,376 $ 406,699 $ 961,981 $ 88,203 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -69- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER PIONEER PIONEER INTERNATIONAL MID CAP HIGH YIELD VALUE VCT VALUE VCT VCT PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 101,536 $ 2,584 $ (3,610) $ (71) $ (24,722) $ (461) Realized gain (loss) .................. (20,055) 122 2,104 2 15,024 1,154 Change in unrealized gain (loss) on investments ...................... 151,422 10,477 75,743 1,876 388,014 9,857 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 232,903 13,183 74,237 1,807 378,316 10,550 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 5,664,461 379,078 542,715 19,020 3,452,342 304,317 Participant transfers from other funding options ..................... 2,303,017 233 140,328 -- 435,792 -- Administrative charges ................ (407) -- (30) -- (201) -- Contract surrenders ................... (130,782) (2,007) (7,081) -- (48,789) (1,950) Participant transfers to other funding options ..................... (764,960) (8,479) (18,413) -- (376,716) (41,872) Other payments to participants ........ -- -- (119) -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 7,071,329 368,825 657,400 19,020 3,462,428 260,495 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 7,304,232 382,008 731,637 20,827 3,840,744 271,045 NET ASSETS: Beginning of year ................... 382,008 -- 20,827 -- 271,045 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 7,686,240 $ 382,008 $ 752,464 $ 20,827 $ 4,111,789 $ 271,045 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -70- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER OAK RIDGE PIONEER PAPP PIONEER LARGE CAP PIONEER PAPP SMALL & MID CAP REAL ESTATE GROWTH VCT AMERICA-PACIFIC GROWTH VCT SHARES VCT PORTFOLIO - RIM FUND VCT - PORTFOLIO - PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES CLASS II SHARES - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (7,764) $ -- $ (2,934) $ -- $ (5,540) $ -- $ 25,119 $ 1,212 15 -- 44 -- (12,046) -- 849 28 106,062 -- 26,619 -- 43,683 -- 388,821 6,384 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 98,313 -- 23,729 -- 26,097 -- 414,789 7,624 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,254,120 -- 430,911 -- 774,225 -- 2,009,399 118,182 244,564 -- 20,193 -- 304,189 -- 685,095 1,236 (15) -- (8) -- (11) -- (151) (1) (6,055) -- (78) -- (1,074) -- (9,210) (1,557) (1,731) -- -- -- (253,806) -- (88,489) (320) -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,490,883 -- 451,018 -- 823,523 -- 2,596,644 117,540 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,589,196 -- 474,747 -- 849,620 -- 3,011,433 125,164 -- -- -- -- -- -- 125,164 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,589,196 $ -- $ 474,747 $ -- $ 849,620 $ -- $ 3,136,597 $ 125,164 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -71- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER SMALL CAP PIONEER PIONEER VALUE SMALL COMPANY STRATEGIC INCOME VCT PORTFOLIO - VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (16,447) $ (412) $ (3,024) $ (26) $ 124,788 $ 5,689 Realized gain (loss) .................. 2,134 98 (1,775) 51 34,616 184 Change in unrealized gain (loss) on investments ...................... 241,290 10,449 29,030 534 241,095 19,489 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 226,977 10,135 24,231 559 400,499 25,362 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,658,973 238,593 289,230 19,063 6,808,808 584,879 Participant transfers from other funding options ..................... 221,037 -- 28,811 2,479 1,292,818 1,990 Administrative charges ................ (101) -- (33) (1) (444) (5) Contract surrenders ................... (24,996) (1,565) (20,163) (1,567) (166,554) (10,122) Participant transfers to other funding options ..................... (14,229) (553) (15,819) -- (709,550) (1,262) Other payments to participants ........ -- -- -- -- (12) -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,840,684 236,475 282,026 19,974 7,225,066 575,480 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,067,661 246,610 306,257 20,533 7,625,565 600,842 NET ASSETS: Beginning of year ................... 246,610 -- 20,533 -- 600,842 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 2,314,271 $ 246,610 $ 326,790 $ 20,533 $ 8,226,407 $ 600,842 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -72- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
PIONEER PUTNAM VT PUTNAM VT VALUE VCT INTERNATIONAL SMALL CAP PORTFOLIO - EQUITY FUND - VALUE FUND - ALL CAP FUND - CLASS II SHARES CLASS IB SHARES CLASS IB SHARES CLASS I - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (23,283) $ (186) $ (1,184) $ (214) $ (29,307) $ (709) $ (9,540) $ (427) 1,011 3 801 26 1,543 2,222 753 1,875 245,787 3,772 51,982 6,702 645,382 15,325 167,711 18,220 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 223,515 3,589 51,599 6,514 617,618 16,838 158,924 19,668 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,720,873 86,769 323,960 86,030 3,833,687 133,559 1,922,777 157,146 303,891 179 34,919 2,238 1,626,229 18,705 375,837 66,696 (208) -- (38) -- (161) -- (175) (3) (13,594) -- (3,099) -- (22,568) (120) (3,103) -- (4,458) -- (16,020) (281) (64,901) (19) (53,387) -- -- -- (3,961) -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,006,504 86,948 335,761 87,987 5,372,286 152,125 2,241,949 223,839 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,230,019 90,537 387,360 94,501 5,989,904 168,963 2,400,873 243,507 90,537 -- 94,501 -- 168,963 -- 243,507 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 3,320,556 $ 90,537 $ 481,861 $ 94,501 $ 6,158,867 $ 168,963 $ 2,644,380 $ 243,507 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -73- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
LARGE CAP SMALL CAP INVESTORS FUND - GROWTH FUND - GROWTH FUND - CLASS I CLASS I CLASS I --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 11,507 $ 574 $ (11,000) $ (428) $ (19,068) $ (1,315) Realized gain (loss) .................. 664 9 (2,618) 21 1,307 168 Change in unrealized gain (loss) on investments ...................... 88,928 5,365 65,226 8,416 308,022 32,294 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 101,099 5,948 51,608 8,009 290,261 31,147 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,346,031 23,920 1,217,807 86,767 1,601,183 220,471 Participant transfers from other funding options ..................... 217,093 39,920 362,248 45,045 419,468 22,803 Administrative charges ................ (119) -- (122) (1) (142) -- Contract surrenders ................... 22,858 (41) (16,617) (745) 5,366 (753) Participant transfers to other funding options ..................... (13,515) -- (31,410) -- (68,001) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,572,348 63,799 1,531,906 131,066 1,957,874 242,521 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,673,447 69,747 1,583,514 139,075 2,248,135 273,668 NET ASSETS: Beginning of year ................... 69,747 -- 139,075 -- 273,668 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,743,194 $ 69,747 $ 1,722,589 $ 139,075 $ 2,521,803 $ 273,668 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -74- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER REAL ESTATE SECURITIES 21ST CENTURY CAPITAL GROWTH TOTAL RETURN PORTFOLIO - GROWTH PORTFOLIO - PORTFOLIO - FUND - CLASS II CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 11,224 $ -- $ (21,177) $ (826) $ (4,287) $ (61) $ (8,804) $ (56) 23,024 1,037 18,408 33 (797) (1) 126 1 21,249 1,542 496,476 15,037 26,358 (22) 49,123 1,229 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 55,497 2,579 493,707 14,244 21,274 (84) 40,445 1,174 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,099,445 42,440 2,155,844 201,867 234,252 61,665 749,107 68,787 140,954 44,228 422,512 36,242 93,749 -- 69,110 3,973 (51) (1) (95) (1) (12) -- (44) -- (8,344) -- (92,124) (108) (2,263) (62) (3,528) -- (43,786) (1) (127,447) (144) (55,608) -- (182) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,188,218 86,666 2,358,690 237,856 270,118 61,603 814,463 72,760 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,243,715 89,245 2,852,397 252,100 291,392 61,519 854,908 73,934 89,245 -- 252,100 -- 61,519 -- 73,934 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,332,960 $ 89,245 $ 3,104,497 $ 252,100 $ 352,911 $ 61,519 $ 928,842 $ 73,934 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -75- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
GROWTH AND GLOBAL DISCOVERY INCOME HEALTH SCIENCES PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (10,039) $ (322) $ (18,817) $ (436) $ (12,849) $ (414) Realized gain (loss) .................. 8,811 56 (3,217) 11 (625) 10 Change in unrealized gain (loss) on investments ...................... 185,972 7,460 188,555 7,302 101,823 6,759 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 184,744 7,194 166,521 6,877 88,349 6,355 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 945,530 71,179 2,619,189 103,819 1,074,367 99,685 Participant transfers from other funding options ..................... 253,214 1,600 299,276 4,629 254,948 8,896 Administrative charges ................ (46) -- (62) (1) (48) -- Contract surrenders ................... (3,477) -- (8,748) -- (4,294) -- Participant transfers to other funding options ..................... (233,250) (1,285) (138,872) -- (49,919) (1,806) Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 961,971 71,494 2,770,783 108,447 1,275,054 106,775 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,146,715 78,688 2,937,304 115,324 1,363,403 113,130 NET ASSETS: Beginning of year ................... 78,688 -- 115,324 -- 113,130 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,225,403 $ 78,688 $ 3,052,628 $ 115,324 $ 1,476,533 $ 113,130 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -76- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SCUDDER SCUDDER CONSERVATIVE INTERNATIONAL AGGRESSIVE GROWTH BLUE CHIP INCOME STRATEGY PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (13,297) $ (273) $ (4,448) $ (1) $ (23,995) $ (240) $ (2,043) $ -- 1,213 17 (84) -- (1,941) 6 194 -- 216,653 6,839 28,062 (28) 259,559 5,180 13,416 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 204,569 6,583 23,530 (29) 233,623 4,946 11,567 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,528,568 46,202 342,253 19,372 2,312,301 107,998 895,442 -- 69,627 9,677 102,932 -- 460,694 17,803 17,705 -- (88) (1) (24) -- (111) -- -- -- (5,514) (64) (1,409) -- (13,679) -- (10,181) -- (71,407) -- (574) -- (117,487) -- -- -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,521,186 55,814 443,178 19,372 2,641,718 125,801 902,966 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,725,755 62,397 466,708 19,343 2,875,341 130,747 914,533 -- 62,397 -- 19,343 -- 130,747 -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,788,152 $ 62,397 $ 486,051 $ 19,343 $ 3,006,088 $ 130,747 $ 914,533 $ -- ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -77- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SCUDDER SCUDDER GLOBAL GROWTH & INCOME FIXED INCOME BLUE CHIP STRATEGY PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (36,692) $ (1,268) $ (11,748) $ (276) $ (14,619) $ -- Realized gain (loss) .................. 12,629 19 2,015 3 336 -- Change in unrealized gain (loss) on investments ...................... 125,103 4,314 169,272 7,312 183,210 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 101,040 3,065 159,539 7,039 168,927 -- ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 4,813,733 159,388 1,126,553 118,575 4,006,736 -- Participant transfers from other funding options ..................... 324,448 24,684 143,238 2,500 226,375 -- Administrative charges ................ (185) (3) (53) -- -- -- Contract surrenders ................... (23,101) (700) (7,954) -- (3,824) -- Participant transfers to other funding options ..................... (243,005) (66) (17,898) -- -- -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 4,871,890 183,303 1,243,886 121,075 4,229,287 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 4,972,930 186,368 1,403,425 128,114 4,398,214 -- NET ASSETS: Beginning of year ................... 186,368 -- 128,114 -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 5,159,298 $ 186,368 $ 1,531,539 $ 128,114 $ 4,398,214 $ -- ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -78- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SCUDDER INCOME & GROWTH SCUDDER SCUDDER GROWTH HIGH INCOME STRATEGY GROWTH PORTFOLIO - STRATEGY PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (10,283) $ (123) $ (14,614) $ -- $ (635) $ (1,193) $ (8,012) $ -- (112) 2 2,194 -- 1,083 94 405 -- 54,745 1,346 221,264 -- 181,818 13,564 72,932 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 44,350 1,225 208,844 -- 182,266 12,465 65,325 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,086,169 60,909 3,878,801 -- 2,746,742 156,452 1,401,937 -- 121,403 10,098 808,789 -- 310,225 34,627 975,182 -- (39) -- -- -- (101) (2) -- -- (5,046) -- (44,049) -- (7,472) (84) (11,209) -- (26,449) -- (762) -- (160,050) (1,088) -- -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,176,038 71,007 4,642,779 -- 2,889,344 189,905 2,365,910 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,220,388 72,232 4,851,623 -- 3,071,610 202,370 2,431,235 -- 72,232 -- -- -- 202,370 -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,292,620 $ 72,232 $ 4,851,623 $ -- $ 3,273,980 $ 202,370 $ 2,431,235 $ -- ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -79- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SCUDDER INTERNATIONAL MERCURY SCUDDER SELECT EQUITY LARGE CAP CORE MONEY MARKET PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (15,840) $ (219) $ -- $ -- $ (19,529) $ (568) Realized gain (loss) .................. (2,080) 6 -- -- -- -- Change in unrealized gain (loss) on investments ...................... 251,172 6,320 -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 233,252 6,107 -- -- (19,529) (568) ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,844,985 74,394 56,222 -- 6,880,108 432,663 Participant transfers from other funding options ..................... 154,969 1,348 1,410 -- 156,021 -- Administrative charges ................ (51) -- -- -- (222) (2) Contract surrenders ................... (4,541) -- -- -- (17,498) -- Participant transfers to other funding options ..................... (118,151) (73) -- -- (4,975,786) (144,544) Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,877,211 75,669 57,632 -- 2,042,623 288,117 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,110,463 81,776 57,632 -- 2,023,094 287,549 NET ASSETS: Beginning of year ................... 81,776 -- -- -- 287,549 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 2,192,239 $ 81,776 $ 57,632 $ -- $ 2,310,643 $ 287,549 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -80- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SCUDDER SMALL CAP SCUDDER SCUDDER TEMPLETON GROWTH STRATEGIC INCOME TECHNOLOGY FOREIGN VALUE PORTFOLIO - PORTFOLIO - GROWTH PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (10,925) $ (212) $ (24,503) $ (1,677) $ (11,439) $ (454) $ (86) $ -- (594) 2 13,768 26 (11,833) 4 1 -- 108,422 1,792 175,317 7,832 41,350 6,048 1,867 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 96,903 1,582 164,582 6,181 18,078 5,598 1,782 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 846,492 81,940 1,886,097 202,292 789,888 132,679 102,038 -- 187,578 14,936 347,968 54,987 186,962 800 -- -- (69) -- (97) (2) (57) -- -- -- (4,927) -- (7,788) (62) (68,346) -- -- -- (39,795) -- (48,822) -- (89,560) (151) -- -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 989,279 96,876 2,177,358 257,215 818,887 133,328 102,038 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,086,182 98,458 2,341,940 263,396 836,965 138,926 103,820 -- 98,458 -- 263,396 -- 138,926 -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,184,640 $ 98,458 $ 2,605,336 $ 263,396 $ 975,891 $ 138,926 $ 103,820 $ -- ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -81- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER SVS DAVIS SVS DREMAN TOTAL RETURN VENTURE VALUE FINANCIAL SERVICES PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (14,509) $ (172) $ (41,215) $ (708) $ (10,634) $ (118) Realized gain (loss) .................. (3,424) 3 3,324 67 304 2 Change in unrealized gain (loss) on investments ...................... 111,133 1,551 372,152 15,147 105,112 2,327 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 93,200 1,382 334,261 14,506 94,782 2,211 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 2,248,691 9,415 4,025,029 180,670 1,251,779 65,844 Participant transfers from other funding options ..................... 416,544 31,929 699,306 19,624 92,101 7,189 Administrative charges ................ (54) -- (155) -- (61) -- Contract surrenders ................... (12,487) -- (12,799) (128) (3,283) (63) Participant transfers to other funding options ..................... (166,156) -- (79,715) (1,091) (10,913) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 2,486,538 41,344 4,631,666 199,075 1,329,623 72,970 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,579,738 42,726 4,965,927 213,581 1,424,405 75,181 NET ASSETS: Beginning of year ................... 42,726 -- 213,581 -- 75,181 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 2,622,464 $ 42,726 $ 5,179,508 $ 213,581 $ 1,499,586 $ 75,181 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -82- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SVS DREMAN SVS EAGLE HIGH RETURN SVS DREMAN FOCUSED SVS FOCUS EQUITY SMALL CAP VALUE LARGE CAP GROWTH VALUE & GROWTH PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (34,203) $ (888) $ (28,057) $ (824) $ (12,901) $ (285) $ (5,907) $ (93) 3,930 110 14,027 27 (1,695) 6 118 2 480,408 19,568 460,948 21,911 71,165 6,397 56,157 2,459 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 450,135 18,790 446,918 21,114 56,569 6,118 50,368 2,368 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 5,053,038 176,917 2,856,741 224,544 1,049,856 107,652 312,106 44,601 338,173 17,581 449,557 4,795 105,278 2,762 161,631 -- (159) (2) (108) (1) (69) (1) (25) -- (14,033) (63) (139,528) (108) (5,419) -- (870) -- (198,485) (1,283) (64,055) (332) (46,581) (279) (1,482) (66) -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 5,178,534 193,150 3,102,607 228,898 1,103,065 110,134 471,360 44,535 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 5,628,669 211,940 3,549,525 250,012 1,159,634 116,252 521,728 46,903 211,940 -- 250,012 -- 116,252 -- 46,903 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 5,840,609 $ 211,940 $ 3,799,537 $ 250,012 $ 1,275,886 $ 116,252 $ 568,631 $ 46,903 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -83- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SCUDDER GOVERNMENT & SCUDDER AGENCY SECURITIES LARGE CAP VALUE SVS INDEX 500 PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (5,703) $ (541) $ (18,725) $ (546) $ (31,523) $ (1,381) Realized gain (loss) .................. 1,835 35 3,149 75 (1,611) 55 Change in unrealized gain (loss) on investments ...................... 16,330 1,794 164,171 12,205 276,785 21,385 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 12,462 1,288 148,595 11,734 243,651 20,059 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,053,991 177,317 1,842,305 117,860 2,676,894 186,015 Participant transfers from other funding options ..................... 123,863 13,579 326,195 13,805 545,820 54,068 Administrative charges ................ (25) -- (100) -- (75) -- Contract surrenders ................... (5,214) (575) (8,207) -- (4,112) (212) Participant transfers to other funding options ..................... (131,848) (10,667) (159,869) (1,223) (96,946) (1,070) Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,040,767 179,654 2,000,324 130,442 3,121,581 238,801 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,053,229 180,942 2,148,919 142,176 3,365,232 258,860 NET ASSETS: Beginning of year ................... 180,942 -- 142,176 -- 258,860 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,234,171 $ 180,942 $ 2,291,095 $ 142,176 $ 3,624,092 $ 258,860 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -84- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SVS JANUS SVS JANUS SVS INVESCO GROWTH AND GROWTH SVS MFS DYNAMIC GROWTH INCOME OPPORTUNITIES STRATEGIC VALUE PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B CLASS B - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (2,713) $ (796) $ (15,546) $ (1,031) $ (2,183) $ (17) $ (17,990) $ (162) 11,804 52 4,678 20 545 -- (1,879) 3 4,376 11,326 138,680 15,670 35,350 268 222,278 3,052 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 13,467 10,582 127,812 14,659 33,712 251 202,409 2,893 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 74,088 128,206 1,091,296 203,929 280,096 6,374 1,636,212 96,040 10,988 -- 212,241 10,299 112 -- 404,828 -- (19) (1) (65) (1) (8) -- (64) (1) (104,664) -- (142,986) (126) (2,805) -- (10,471) -- (2,585) (562) (134,461) (15) (7,774) -- (304,868) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (22,192) 127,643 1,026,025 214,086 269,621 6,374 1,725,637 96,039 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (8,725) 138,225 1,153,837 228,745 303,333 6,625 1,928,046 98,932 138,225 -- 228,745 -- 6,625 -- 98,932 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 129,500 $ 138,225 $ 1,382,582 $ 228,745 $ 309,958 $ 6,625 $ 2,026,978 $ 98,932 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -85- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SVS OAK SVS TURNER ALGER AMERICAN STRATEGIC EQUITY MID CAP GROWTH BALANCED PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS S SHARES --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (10,222) $ (888) $ (12,101) $ (499) $ (19,093) $ (780) Realized gain (loss) .................. (1,060) 343 174 229 2,258 6 Change in unrealized gain (loss) on investments ...................... 47,555 14,234 127,646 8,376 156,702 8,344 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 36,273 13,689 115,719 8,106 139,867 7,570 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 725,330 129,573 1,147,745 104,259 2,572,149 284,486 Participant transfers from other funding options ..................... 88,625 -- 133,181 1,200 170,163 6,421 Administrative charges ................ (81) (3) (64) (1) (143) (1) Contract surrenders ................... (1,781) -- (2,368) -- (10,716) (125) Participant transfers to other funding options ..................... (33,679) (2,639) (54,335) (2,117) (161,348) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 778,414 126,931 1,224,159 103,341 2,570,105 290,781 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 814,687 140,620 1,339,878 111,447 2,709,972 298,351 NET ASSETS: Beginning of year ................... 140,620 -- 111,447 -- 298,351 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 955,307 $ 140,620 $ 1,451,325 $ 111,447 $ 3,008,323 $ 298,351 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -86- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
ALGER AMERICAN LEVERAGED ALLCAP CONVERTIBLE DISCIPLINED PORTFOLIO - SECURITIES MID CAP STOCK EQUITY INCOME CLASS S SHARES PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (5,266) $ (225) $ 26,293 $ 6,281 $ (14,778) $ (21) $ 18,595 $ 780 (8,160) -- 1,585 20 72,408 9 140,823 22 50,904 2,356 37,687 6,863 210,494 5,411 162,959 6,854 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 37,478 2,131 65,565 13,164 268,124 5,399 322,377 7,656 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 501,999 87,791 1,382,758 60,149 2,151,967 91,690 3,767,648 135,142 85,114 2,610 504,236 201,707 186,986 9,145 353,841 -- (42) -- (108) -- (152) -- (243) -- (1,982) -- 11,995 -- -- -- (16,964) (745) (118,845) (98) (49,668) -- (9,396) -- (30,420) (1,096) -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 466,244 90,303 1,849,213 261,856 2,329,405 100,835 4,073,862 133,301 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 503,722 92,434 1,914,778 275,020 2,597,529 106,234 4,396,239 140,957 92,434 -- 275,020 -- 106,234 -- 140,957 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 596,156 $ 92,434 $ 2,189,798 $ 275,020 $ 2,703,763 $ 106,234 $ 4,537,196 $ 140,957 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -87- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
FEDERATED HIGH YIELD FEDERATED STOCK LARGE CAP PORTFOLIO PORTFOLIO PORTFOLIO --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 180,563 $ 21,638 $ 2,375 $ 320 $ 1,652 $ 2 Realized gain (loss) .................. 2,791 29 (1,447) 9 (833) -- Change in unrealized gain (loss) on investments ...................... (48,938) (12,269) 27,602 3,856 69,474 389 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 134,416 9,398 28,530 4,185 70,293 391 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 2,091,600 335,999 452,503 -- 1,054,524 9,893 Participant transfers from other funding options ..................... 392,168 1,977 15,203 35,830 145,548 -- Administrative charges ................ (131) -- (39) -- (53) -- Contract surrenders ................... (12,641) (266) -- -- (986) -- Participant transfers to other funding options ..................... (33,770) (41) (66,757) -- (4,931) -- Other payments to participants ........ (3,889) -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 2,433,337 337,669 400,910 35,830 1,194,102 9,893 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,567,753 347,067 429,440 40,015 1,264,395 10,284 NET ASSETS: Beginning of year ................... 347,067 -- 40,015 -- 10,284 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 2,914,820 $ 347,067 $ 469,455 $ 40,015 $ 1,274,679 $ 10,284 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -88- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
LAZARD MERRILL LYNCH MFS MFS INTERNATIONAL STOCK LARGE CAP CORE EMERGING GROWTH MID CAP GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 13,657 $ 809 $ 1,630 $ 77 $ (9,149) $ (65) $ (11,535) $ (614) 1,423 55 225 6 (253) 1 400 34 101,984 4,992 69,184 1,466 106,494 1,364 127,263 6,664 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 117,064 5,856 71,039 1,549 97,092 1,300 116,128 6,084 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,310,621 62,244 1,229,807 35,541 934,028 35,726 1,287,874 115,287 104,303 -- 15,113 55 145,827 13,210 154,615 27,899 (45) -- (19) (2) (33) -- (80) -- (2,652) -- (3,823) -- (3,221) -- 1,446 (735) (19,748) (561) (3,562) (76) (34,950) -- (29,342) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,392,479 61,683 1,237,516 35,518 1,041,651 48,936 1,414,513 142,451 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1,509,543 67,539 1,308,555 37,067 1,138,743 50,236 1,530,641 148,535 67,539 -- 37,067 -- 50,236 -- 148,535 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,577,082 $ 67,539 $ 1,345,622 $ 37,067 $ 1,188,979 $ 50,236 $ 1,679,176 $ 148,535 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -89- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
MFS PIONEER FUND SOCIAL AWARENESS VALUE PORTFOLIO PORTFOLIO STOCK PORTFOLIO --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 10,316 $ -- $ 1,243 $ 48 $ 282 $ -- Realized gain (loss) .................. 13,777 -- 1,814 28 37 -- Change in unrealized gain (loss) on investments ...................... 62,625 -- 24,871 408 24,557 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 86,718 -- 27,928 484 24,876 -- ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,076,464 -- 284,906 7,904 245,922 -- Participant transfers from other funding options ..................... 333,310 -- 51,886 4,292 7,725 -- Administrative charges ................ (11) -- (19) (2) (7) -- Contract surrenders ................... -- -- (2,518) -- -- -- Participant transfers to other funding options ..................... (1,382) -- (751) -- (57) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 1,408,381 -- 333,504 12,194 253,583 -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,495,099 -- 361,432 12,678 278,459 -- NET ASSETS: Beginning of year ................... -- -- 12,678 -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 1,495,099 $ -- $ 374,110 $ 12,678 $ 278,459 $ -- ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -90- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
TRAVELERS U.S. GOVERNMENT AIM CAPITAL MFS QUALITY BOND SECURITIES APPRECIATION TOTAL RETURN PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ 176,868 $ 12,123 $ 60,941 $ -- $ (5,955) $ (137) $ 216,667 $ 8,373 272 2,088 281 -- 159 13 320,164 47 (131,625) (11,111) (47,079) -- 79,714 2,198 208,909 17,051 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 45,515 3,100 14,143 -- 73,918 2,074 745,740 25,471 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,803,584 659,322 1,113,689 -- 865,838 48,064 9,834,215 535,487 754,463 28,488 524,586 -- 197,560 3,302 1,507,274 25,466 (282) (18) (10) -- (58) -- (796) (3) (19,505) (784) (1,633) -- (8,856) (745) (65,034) -- (131,341) (384,693) (10,207) -- (1,499) -- (237,163) (32,666) -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,406,919 302,315 1,626,425 -- 1,052,985 50,621 11,038,496 528,284 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,452,434 305,415 1,640,568 -- 1,126,903 52,695 11,784,236 553,755 305,415 -- -- -- 52,695 -- 553,755 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 4,757,849 $ 305,415 $ 1,640,568 $ -- $ 1,179,598 $ 52,695 $ 12,337,991 $ 553,755 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -91- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
SB PIONEER ADJUSTABLE RATE STRATEGIC INCOME INCOME PORTFOLIO - STRATEGIC EQUITY PORTFOLIO CLASS I SHARES PORTFOLIO --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ 136,287 $ -- $ 4,674 $ 48 $ 2,705 $ (267) Realized gain (loss) .................. 523 -- 3,582 -- (2,111) 37 Change in unrealized gain (loss) on investments ...................... (69,048) -- (11,708) (37) 16,348 4,628 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ......... 67,762 -- (3,452) 11 16,942 4,398 ------------ ------------ ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Participant purchase payments ......... 1,704,476 -- 1,886,321 21,712 433,526 62,585 Participant transfers from other funding options ..................... 517,041 -- 656,486 2,704 25,854 -- Administrative charges ................ (16) -- (32) -- (31) -- Contract surrenders ................... (1,667) -- (6,664) (39) (5,108) (912) Participant transfers to other funding options ..................... (24,159) -- (1,041,989) (52) (88,987) -- Other payments to participants ........ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions .. 2,195,675 -- 1,494,122 24,325 365,254 61,673 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 2,263,437 -- 1,490,670 24,336 382,196 66,071 NET ASSETS: Beginning of year ................... -- -- 24,336 -- 66,071 -- ------------ ------------ ------------ ------------ ------------ ------------ End of year ......................... $ 2,263,437 $ -- $ 1,515,006 $ 24,336 $ 448,267 $ 66,071 ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -92- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
DYNAMIC COMSTOCK ENTERPRISE CONTRAFUND(R) CAPITAL APPRECIATION PORTFOLIO - PORTFOLIO - PORTFOLIO - PORTFOLIO - CLASS II SHARES CLASS II SHARES SERVICE CLASS 2 SERVICE CLASS 2 - --------------------------- --------------------------- --------------------------- --------------------------- 2004 2003 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- ---- ---- $ (24,799) $ (803) $ (1,643) $ (80) $ (31,410) $ (443) $ (4,321) $ (993) 1,340 48 90 19 1,984 43 127 42 384,691 18,623 10,160 1,393 452,645 7,751 18,885 13,726 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 361,232 17,868 8,607 1,332 423,219 7,351 14,691 12,775 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,655,238 235,544 68,111 23,461 4,075,053 95,350 260,646 123,679 717,279 35,457 52,313 -- 1,094,240 18,463 43,014 -- (159) (2) (7) -- (228) (2) (19) -- (10,989) -- (939) -- (1,422) -- -- -- (67,187) (523) (969) (212) (53,854) -- (1,136) -- -- -- -- -- -- -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,294,182 270,476 118,509 23,249 5,113,789 113,811 302,505 123,679 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,655,414 288,344 127,116 24,581 5,537,008 121,162 317,196 136,454 288,344 -- 24,581 -- 121,162 -- 136,454 -- - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 4,943,758 $ 288,344 $ 151,697 $ 24,581 $ 5,658,170 $ 121,162 $ 453,650 $ 136,454 ============ ============ ============ ============ ============ ============ ============ ============
See Notes to Financial Statements -93- TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS - CONTINUED FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
MID CAP PORTFOLIO - SERVICE CLASS 2 COMBINED ----------------------------- ---------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- OPERATIONS: Net investment income (loss) .......... $ (48,291) $ (682) $ (63,283) $ 27,662 Realized gain (loss) .................. 5,135 1,936 1,680,049 33,784 Change in unrealized gain (loss) on investments ...................... 1,091,375 14,667 22,751,634 823,193 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ......... 1,048,219 15,921 24,368,400 884,639 ------------- ------------- ------------- ------------- UNIT TRANSACTIONS: Participant purchase payments ......... 5,939,970 137,030 300,383,281 16,465,802 Participant transfers from other funding options ..................... 1,082,959 37,480 59,529,060 1,763,776 Administrative charges ................ (310) -- (16,551) (111) Contract surrenders ................... (46,484) (861) (2,339,955) (40,871) Participant transfers to other funding options ..................... (109,188) (28) (27,173,159) (778,342) Other payments to participants ........ -- -- (61,686) -- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions .. 6,866,947 173,621 330,320,990 17,410,254 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets 7,915,166 189,542 354,689,390 18,294,893 NET ASSETS: Beginning of year ................... 189,542 -- 18,294,893 -- ------------- ------------- ------------- ------------- End of year ......................... $ 8,104,708 $ 189,542 $ 372,984,283 $ 18,294,893 ============= ============= ============= =============
See Notes to Financial Statements -94- NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES TIC Separate Account Eleven for Variable Annuities ("Separate Account Eleven") is a separate account of The Travelers Insurance Company ("The Company"), an indirect wholly owned subsidiary of Citigroup Inc., and is available for funding certain variable annuity contracts issued by The Company. Separate Account Eleven is registered under the Investment Company Act of 1940, as amended, as a unit investment trust. Separate Account Eleven includes the Pioneer Annuistar Plus, Portfolio Architect Plus, and Scudder Advocate Rewards Annuity Products. Participant purchase payments applied to Separate Account Eleven are invested in one or more sub-accounts in accordance with the selection made by the contract owner. As of December 31, 2004, the investments comprising Separate Account Eleven were: Capital Appreciation Fund, Massachusetts business trust, Affiliate of The Company High Yield Bond Trust, Massachusetts business trust, Affiliate of The Company Managed Assets Trust, Massachusetts business trust, Affiliate of The Company Money Market Portfolio, Massachusetts business trust, Affiliate of The Company AIM Variable Insurance Funds, Inc., Delaware business trust AIM V.I. Capital Appreciation Fund - Series II AIM V.I. Mid Cap Core Equity Fund - Series II AIM V.I. Utilities Fund (Formerly INVESCO VIF - Utilities Fund) AllianceBernstein Variable Product Series Fund, Inc., Maryland business trust AllianceBernstein Premier Growth Portfolio - Class B American Funds Insurance Series, Massachusetts business trust Global Growth Fund - Class 2 Shares Growth Fund - Class 2 Shares Growth-Income Fund - Class 2 Shares Credit Suisse Trust, Massachusetts business trust Credit Suisse Trust Emerging Markets Portfolio Credit Suisse Trust Global Post-Venture Capital Portfolio Delaware VIP Trust, Maryland business trust Delaware VIP REIT Series - Standard Class Dreyfus Investment Portfolio, Massachusetts business trust Dreyfus MidCap Stock Portfolio - Service Shares Dreyfus Socially Responsible Growth Fund, Inc., Maryland business trust Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares Dreyfus Variable Investment Fund, Maryland business trust Dreyfus Variable Investment Fund Appreciation Portfolio - Initial Shares Dreyfus Variable Investment Fund Developing Leaders Portfolio - Initial Shares Franklin Templeton Variable Insurance Products Trust, Massachusetts business trust Franklin Rising Dividends Securities Fund - Class 2 Shares Franklin Small Cap Fund - Class 2 Shares Mutual Shares Securities Fund - Class 2 Shares Templeton Developing Markets Securities Fund - Class 2 Shares Templeton Foreign Securities Fund - Class 2 Shares Templeton Growth Securities Fund - Class 2 Shares Greenwich Street Series Fund, Massachusetts business trust, Affiliate of The Company Equity Index Portfolio - Class II Shares Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (Formerly Salomon Brothers Variable Emerging Growth Fund - Class I Shares) Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (Formerly Salomon Brothers Variable Emerging Growth Fund - Class II Shares) Salomon Brothers Variable Growth & Income Fund - Class I Shares -95- NOTES TO FINANCIAL STATEMENTS - CONTINUED 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Janus Aspen Series, Delaware business trust Balanced Portfolio - Service Shares Global Life Sciences Portfolio - Service Shares Global Technology Portfolio - Service Shares Worldwide Growth Portfolio - Service Shares Lazard Retirement Series, Inc., Massachusetts business trust Lazard Retirement Small Cap Portfolio Lord Abbett Series Fund, Inc., Maryland business trust Growth and Income Portfolio Mid-Cap Value Portfolio Merrill Lynch Variable Series Funds, Inc., Maryland business trust Merrill Lynch Global Allocation V.I. Fund - Class III Merrill Lynch Value Opportunities V.I. Fund - Class III (Formerly Merrill Lynch Small Cap Value V.I. Fund - Class III) Oppenheimer Variable Account Funds, Massachusetts business trust Oppenheimer Capital Appreciation Fund/VA - Service Shares Oppenheimer Global Securities Fund/VA - Service Shares Oppenheimer Main Street Fund/VA - Service Shares PIMCO Variable Insurance Trust, Massachusetts business trust Real Return Portfolio - Administrative Class Total Return Portfolio - Administrative Class Pioneer Variable Contracts Trust, Massachusetts business trust Pioneer America Income VCT Portfolio - Class II Shares Pioneer Balanced VCT Portfolio - Class II Shares Pioneer Emerging Markets VCT Portfolio - Class II Shares Pioneer Equity Income VCT Portfolio - Class II Shares Pioneer Europe VCT Portfolio - Class II Shares Pioneer Fund VCT Portfolio - Class II Shares Pioneer Growth Shares VCT Portfolio - Class II Shares Pioneer High Yield VCT Portfolio - Class II Shares Pioneer International Value VCT Portfolio - Class II Shares Pioneer Mid Cap Value VCT Portfolio - Class II Shares Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares Pioneer Real Estate Shares VCT Portfolio - Class II Shares Pioneer Small Cap Value VCT Portfolio - Class II Shares Pioneer Small Company VCT Portfolio - Class II Shares Pioneer Strategic Income VCT Portfolio - Class II Shares Pioneer Value VCT Portfolio - Class II Shares Putnam Variable Trust, Massachusetts business trust Putnam VT International Equity Fund - Class IB Shares Putnam VT Small Cap Value Fund - Class IB Shares Salomon Brothers Variable Series Funds Inc., Maryland business trust, Affiliate of The Company All Cap Fund - Class I Investors Fund - Class I Large Cap Growth Fund - Class I Small Cap Growth Fund - Class I Total Return Fund - Class II Scudder VIT Funds, Massachusetts business trust Scudder Real Estate Securities Portfolio - Class B -96- NOTES TO FINANCIAL STATEMENTS - CONTINUED 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Scudder Variable Series I, Massachusetts business trust 21st Century Growth Portfolio - Class B Capital Growth Portfolio - Class B Global Discovery Portfolio - Class B Growth and Income Portfolio - Class B Health Sciences Portfolio - Class B International Portfolio - Class B Scudder Variable Series II, Massachusetts business trust Scudder Aggressive Growth Portfolio - Class B Scudder Blue Chip Portfolio - Class B Scudder Conservative Income Strategy Portfolio - Class B Scudder Fixed Income Portfolio - Class B Scudder Global Blue Chip Portfolio - Class B Scudder Government & Agency Securities Portfolio - Class B (Formerly Scudder Government Securities Portfolio - Class B) Scudder Growth & Income Strategy Portfolio - Clas B Scudder Growth Portfolio - Class B Scudder Growth Strategy Portfolio - Class B Scudder High Income Portfolio - Class B Scudder Income & Growth Strategy Portfolio - Class B Scudder International Select Equity Portfolio - Class B Scudder Large Cap Value Portfolio - Class B (Formerly Scudder Contrarian Value Portfolio - Class B) Scudder Mercury Large Cap Core Portfolio - Class B Scudder Money Market Portfolio - Class B Scudder Small Cap Growth Portfolio - Class B Scudder Strategic Income Portfolio - Class B Scudder Technology Growth Portfolio - Class B Scudder Templeton Foreign Value Portfolio - Class B Scudder Total Return Portfolio - Class B SVS Davis Venture Value Portfolio - Class B SVS Dreman Financial Services Portfolio - Class B SVS Dreman High Return Equity Portfolio - Class B SVS Dreman Small Cap Value Portfolio - Class B SVS Eagle Focused Large Cap Growth Portfolio - Class B SVS Focus Value & Growth Portfolio - Class B SVS Index 500 Portfolio - Class B SVS INVESCO Dynamic Growth Portfolio - Class B SVS Janus Growth And Income Portfolio - Class B SVS Janus Growth Opportunities Portfolio - Class B SVS MFS Strategic Value Portfolio - Class B SVS Oak Strategic Equity Portfolio - Class B SVS Turner Mid Cap Growth Portfolio - Class B The Alger American Fund, Massachusetts business trust Alger American Balanced Portfolio - Class S Shares Alger American Leveraged AllCap Portfolio - Class S Shares -97- NOTES TO FINANCIAL STATEMENTS - CONTINUED 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Travelers Series Trust, Massachusetts business trust, Affiliate of The Company Convertible Securities Portfolio Disciplined Mid Cap Stock Portfolio Equity Income Portfolio Federated High Yield Portfolio Federated Stock Portfolio Large Cap Portfolio Lazard International Stock Portfolio Merrill Lynch Large Cap Core Portfolio MFS Emerging Growth Portfolio MFS Mid Cap Growth Portfolio MFS Value Portfolio Pioneer Fund Portfolio Social Awareness Stock Portfolio Travelers Quality Bond Portfolio U.S. Government Securities Portfolio Travelers Series Fund Inc., Maryland business trust, Affiliate of The Company AIM Capital Appreciation Portfolio MFS Total Return Portfolio Pioneer Strategic Income Portfolio SB Adjustable Rate Income Portfolio - Class I Shares Strategic Equity Portfolio Van Kampen Life Investment Trust, Delaware business trust Comstock Portfolio - Class II Shares Enterprise Portfolio - Class II Shares Variable Insurance Products Fund II, Massachusetts business trust Contrafund(R) Portfolio - Service Class 2 Variable Insurance Products Fund III, Massachusetts business trust Dynamic Capital Appreciation Portfolio - Service Class 2 Mid Cap Portfolio - Service Class 2 Not all funds may be available in all states or to all contract owners. The following is a summary of significant accounting policies consistently followed by Separate Account Eleven in the preparation of its financial statements. SECURITY VALUATION. Investments are valued daily at the net asset values per share of the underlying funds. SECURITY TRANSACTIONS. Security transactions are accounted for on the trade date. Income from dividends and realized gain (loss) distributions, are recorded on the ex-distribution date. FEDERAL INCOME TAXES. The operations of Separate Account Eleven form a part of the total operations of The Company and are not taxed separately. The Company is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (the "Code"). Under existing federal income tax law, no taxes are payable on the investment income of Separate Account Eleven. Separate Account Eleven is not taxed as a "regulated investment company" under Subchapter M of the Code. FINANCIAL HIGHLIGHTS. Separate Account Eleven has adopted the financial highlights disclosure recommended by the American Institute of Certified Public Accountants Audit Guide ("AICPA Guide") for Investment Companies. The AICPA Guide allows for the prospective application of this disclosure, which will ultimately display a five year period. It is comprised of the units, unit values, investment income ratio, expense ratios and total returns for each sub-account. Since each sub-account offers multiple contract charges, certain information is provided in the form of a range. The range information may reflect varying time periods if assets did not exist with all contract charge options of the sub-account for the entire year. -98- NOTES TO FINANCIAL STATEMENTS - CONTINUED 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. INVESTMENTS The aggregate costs of purchases and proceeds from sales of investments were $356,502,431 and $24,669,431 respectively, for the period ended December 31, 2004. Realized gains and losses from investment transactions are reported on an average cost basis. The cost of investments in eligible funds was $349,399,810 at December 31, 2004. Gross unrealized appreciation for all investments at December 31, 2004 was $24,282,948. Gross unrealized depreciation for all investments at December 31, 2004 was $708,110. 3. CONTRACT CHARGES The asset-based charges listed below are deducted, as appropriate, each business day and are assessed through the calculation of accumulation and annuity unit values; - Mortality and Expense Risks assumed by The Company (M&E) - Administrative fees paid for administrative expenses (ADM) - Enhanced Stepped-up Provision, if elected by the contract owner (E.S.P.) - Guaranteed Minimum Withdrawal Benefit, if elected by the contract owner (GMWB) - Guaranteed Income Solution, if elected by the contract owner (GIS) - Guaranteed Income Solution Plus, if elected by the contract owner (GISP) - Guaranteed Minimum Accumulation Benefit, if elected by the contract owner (GMAB) Below is a table displaying separate account charges with their associated products offered in this Separate Account for each funding option. The table displays the following death benefit (Dth Ben) designations; Standard (S), Step up (SU), Deferred Annual Step up (D) and Roll up (R). In products where there is one death benefit only, the "Dth Ben" column is blank.. The table displays Standard (S), Step-Up (SU), and Roll-Up (R) Death Benefit (Dth Ben) designations.
- ----------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ELEVEN - ----------------------------------------------------------------------------------------------------------------------------------- Asset-based Charges --------------------------------------------------------------------- Optional Features Separate Account Charge (1) Dth ------------------------------------- Total (as identified in Note 5) Ben Product M&E ADM E.S.P. GMWB GIS GISP GMAB Charge - --------------------------------------------------------- ---------------------------------------------------------------------- Separate Account Charge 1.55% S Pioneer AnnuiStar Plus 1.40% 0.15% 1.55% S Portfolio Architect Plus 1.40% 0.15% 1.55% S Scudder Advocate Rewards 1.40% 0.15% 1.55% Separate Account Charge 1.70% SU Pioneer AnnuiStar Plus 1.55% 0.15% 1.70% SU Portfolio Architect Plus 1.55% 0.15% 1.70% SU Scudder Advocate Rewards 1.55% 0.15% 1.70% Separate Account Charge 1.75% S Pioneer AnnuiStar Plus 1.40% 0.15% 0.20% 1.75% S Portfolio Architect Plus 1.40% 0.15% 0.20% 1.75% S Scudder Advocate Rewards 1.40% 0.15% 0.20% 1.75% Separate Account Charge 1.90% SU Pioneer AnnuiStar Plus 1.55% 0.15% 0.20% 1.90% SU Portfolio Architect Plus 1.55% 0.15% 0.20% 1.90% SU Scudder Advocate Rewards 1.55% 0.15% 0.20% 1.90% R Pioneer AnnuiStar Plus 1.75% 0.15% 1.90% R Portfolio Architect Plus 1.75% 0.15% 1.90% R Scudder Advocate Rewards 1.75% 0.15% 1.90% Separate Account Charge 1.95% S Pioneer AnnuiStar Plus 1.40% 0.15% 0.40% 1.95% S Portfolio Architect Plus 1.40% 0.15% 0.40% 1.95% S Scudder Advocate Rewards 1.40% 0.15% 0.40% 1.95% S Scudder Advocate Rewards 1.40% 0.15% 0.40% 1.95% Separate Account Charge 2.05% S Pioneer AnnuiStar Plus 1.40% 0.15% 0.50% 2.05% S Portfolio Architect Plus 1.40% 0.15% 0.50% 2.05% - -----------------------------------------------------------------------------------------------------------------------------------
-99- NOTES TO FINANCIAL STATEMENTS - CONTINUED 3. CONTRACT CHARGES - CONTINUED
- ------------------------------------------------------------------------------------------------------------------------------------ SEPARATE ACCOUNT ELEVEN - ------------------------------------------------------------------------------------------------------------------------------------ Asset-based Charges --------------------------------------------------------------------- Optional Features Separate Account Charge (1) Dth ---------------------------------------- Total (as identified in Note 5) Ben Product M&E ADM E.S.P. GMWB GIS GISP GMAB Charge - ------------------------------------------------------------------------------------------------------------------------------------ Separate Account Charge 2.10% SU Pioneer AnnuiStar Plus 1.55% 0.15% 0.40% 2.10% SU Portfolio Architect Plus 1.55% 0.15% 0.40% 2.10% R Pioneer AnnuiStar Plus 1.75% 0.15% 0.20% 2.10% R Portfolio Architect Plus 1.75% 0.15% 0.20% 2.10% S Scudder Advocate Rewards 1.40% 0.15% 0.55% 2.10% SU Scudder Advocate Rewards 1.55% 0.15% 0.40% 2.10% R Scudder Advocate Rewards 1.75% 0.15% 0.20% 2.10% SU Scudder Advocate Rewards 1.55% 0.15% 0.40% 2.10% Separate Account Charge 2.15% S Pioneer AnnuiStar Plus 1.40% 0.15% 0.20% 0.40% 2.15% S Portfolio Architect Plus 1.40% 0.15% 0.20% 0.40% 2.15% S Scudder Advocate Rewards 1.40% 0.15% 0.20% 0.40% 2.15% S Scudder Advocate Rewards 1.40% 0.15% 0.20% 0.40% 2.15% Separate Account Charge 2.20% SU Pioneer AnnuiStar Plus 1.55% 0.15% 0.50% 2.20% SU Portfolio Architect Plus 1.55% 0.15% 0.50% 2.20% Separate Account Charge 2.25% S Pioneer AnnuiStar Plus 1.40% 0.15% 0.20% 0.50% 2.25% S Portfolio Architect Plus 1.40% 0.15% 0.20% 0.50% 2.25% SU Scudder Advocate Rewards 1.55% 0.15% 0.55% 2.25% Separate Account Charge 2.30% SU Pioneer AnnuiStar Plus 1.55% 0.15% 0.20% 0.40% 2.30% R Pioneer AnnuiStar Plus 1.75% 0.15% 0.40% 2.30% SU Portfolio Architect Plus 1.55% 0.15% 0.20% 0.40% 2.30% R Portfolio Architect Plus 1.75% 0.15% 0.40% 2.30% S Scudder Advocate Rewards 1.40% 0.15% 0.20% 0.55% 2.30% SU Scudder Advocate Rewards 1.55% 0.15% 0.20% 0.40% 2.30% R Scudder Advocate Rewards 1.75% 0.15% 0.40% 2.30% SU Scudder Advocate Rewards 1.55% 0.15% 0.20% 0.40% 2.30% R Scudder Advocate Rewards 1.75% 0.15% 0.40% 2.30% Separate Account Charge 2.40% SU Pioneer AnnuiStar Plus 1.55% 0.15% 0.20% 0.50% 2.40% R Pioneer AnnuiStar Plus 1.75% 0.15% 0.50% 2.40% SU Portfolio Architect Plus 1.55% 0.15% 0.20% 0.50% 2.40% R Portfolio Architect Plus 1.75% 0.15% 0.50% 2.40% Separate Account Charge 2.45% SU Scudder Advocate Rewards 1.55% 0.15% 0.20% 0.55% 2.45% R Scudder Advocate Rewards 1.75% 0.15% 0.55% 2.45% Separate Account Charge 2.50% R Pioneer AnnuiStar Plus 1.75% 0.15% 0.20% 0.40% 2.50% R Portfolio Architect Plus 1.75% 0.15% 0.20% 0.40% 2.50% R Scudder Advocate Rewards 1.75% 0.15% 0.20% 0.40% 2.50% R Scudder Advocate Rewards 1.75% 0.15% 0.20% 0.40% 2.50% Separate Account Charge 2.60% R Pioneer AnnuiStar Plus 1.75% 0.15% 0.20% 0.50% 2.60% R Portfolio Architect Plus 1.75% 0.15% 0.20% 0.50% 2.60% Separate Account Charge 2.65% R Scudder Advocate Rewards 1.75% 0.15% 0.20% 0.55% 2.65% - ------------------------------------------------------------------------------------------------------------------------------------
(1) Certain accumulation and annuity unit values displayed in Note 5 may not be available through certain sub-accounts. If a unit value has no assets and units across all sub-accounts within the Separate Account, it will not be displayed in Note 5. -100- NOTES TO FINANCIAL STATEMENTS - CONTINUED 3. CONTRACT CHARGES - CONTINUED For Contracts in the accumulation phase with a value of less than $100,000, an annual charge of $40 is assessed through the redemption of units and paid to The Company to cover administrative charges. No sales charges are deducted from participant purchases when they are received. However, in the accumulation phase, a withdrawal charge of up to 8% will apply if the purchase payment is withdrawn within nine years of its payment date. Withdrawal charges assessed were $83,366 and $643 for the period ended December 31, 2004 and 2003, respectively and are included in contract surrenders on the Statement of Changes in Net Assets. This charge is assessed through the redemption of units. In the annuity phase, if the Variable Liquidity Benefit is selected, there is a surrender charge associated with the amounts withdrawn. The maximun charge, applied to the amount withdrawn, is 8% decreasing to 0% in years nine and later and assessed through the redemption of units. For a full explanation of product charges and associated product features and benefits please refer to your product prospectus. 4. SUBSEQUENT EVENT NOTE On January 31, 2005, Citigroup Inc. ("Citigroup") announced that it had agreed to sell The Travelers Insurance Company ("TIC"), The Travelers Life and Annuity Company, Citicorp Life Insurance Company, First Citicorp Life Insurance Company, Citicorp International Life Insurance Company, The Travelers Life and Annuity Reinsurance Company, and certain other domestic and international insurance businesses (the "Life Insurance and Annuity Businesses") to MetLife, Inc. ("MetLife") pursuant to an Acquisition Agreement (the "Agreement"). The transaction is subject to certain regulatory approvals, as well as other customary conditions to closing. Citigroup currently anticipates that the intended sale would be closed this summer. The transaction contemplates that TIC's Primerica Life segment and certain other assets will remain with Citigroup. Accordingly, prior to the closing, TIC will distribute to its parent company by way of dividend (i) all of the outstanding shares of common stock of the Company's 100% owned subsidiary, Primerica Life Insurance Company ("Primerica Life"), (ii) all shares of Citigroup's Series YYY and Series YY preferred stock held by the Company and (iii) certain other assets, including certain assets and liabilities related to the Company's share of the non-qualified pension plan, and post retirement benefits related to inactive employees of the former Travelers Insurance entities, assumed during Citigroup's 2002 spin-off of the Travelers Property Casualty operations (collectively, the "Dispositions"). The Dispositions require certain regulatory approvals. Subject to closing adjustments described in the Agreement, the contemplated sale price would be $11.5 billion. In connection with the consummation of the sale of the Life Insurance and Annuity Business, Citigroup and MetLife will also enter into multi-year distribution agreements. -101- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Capital Appreciation Fund Separate Account Charges 1.55% .............................. 243,803 $ 1.432 $ 349,068 Separate Account Charges 1.70% .............................. 38,929 1.428 55,602 Separate Account Charges 1.75% .............................. - 1.427 - Separate Account Charges 1.90% .............................. 1,749 1.423 2,489 Separate Account Charges 1.95% .............................. 599,737 1.422 852,947 Separate Account Charges 2.05% .............................. 63,661 1.171 74,560 Separate Account Charges 2.10% .............................. 104,464 1.419 148,206 Separate Account Charges 2.15% .............................. - 1.417 - Separate Account Charges 2.20% .............................. 65,584 1.326 86,981 Separate Account Charges 2.25% .............................. - 1.163 - Separate Account Charges 2.30% .............................. 21,556 1.414 30,481 Separate Account Charges 2.40% .............................. 19,487 1.169 22,780 Separate Account Charges 2.45% .............................. - 1.162 - Separate Account Charges 2.50% .............................. 12,785 1.409 18,018 Separate Account Charges 2.65% .............................. - 1.160 - Separate Account Charges 2.60% .............................. - 1.168 - High Yield Bond Trust Separate Account Charges 1.55% .............................. 588,256 1.063 625,327 Separate Account Charges 1.70% .............................. 180,567 1.062 191,750 Separate Account Charges 1.75% .............................. - 1.062 - Separate Account Charges 1.90% .............................. 66,598 1.060 70,626 Separate Account Charges 1.95% .............................. 319,927 1.060 339,162 Separate Account Charges 2.05% .............................. 77,695 1.078 83,723 Separate Account Charges 2.10% .............................. 132,910 1.059 140,758 Separate Account Charges 2.15% .............................. 4,280 1.059 4,531 Separate Account Charges 2.20% .............................. 61,838 1.058 65,444 Separate Account Charges 2.25% .............................. 1,669 1.058 1,766 Separate Account Charges 2.30% .............................. 8,024 1.058 8,486 Separate Account Charges 2.40% .............................. 13,701 1.076 14,736 Separate Account Charges 2.45% .............................. - 1.057 - Separate Account Charges 2.50% .............................. 5,932 1.056 6,266 Separate Account Charges 2.65% .............................. - 1.055 - Separate Account Charges 2.60% .............................. - 1.074 - Managed Assets Trust Separate Account Charges 1.55% .............................. 318,685 1.061 338,214 Separate Account Charges 1.70% .............................. 160,497 1.060 170,160 Separate Account Charges 1.75% .............................. 3,195 1.060 3,387 Separate Account Charges 1.90% .............................. 49,466 1.059 52,371
-102- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Managed Assets Trust (continued) Separate Account Charges 1.95% .............................. 330,502 $ 1.058 $ 349,803 Separate Account Charges 2.05% .............................. 8,796 1.073 9,441 Separate Account Charges 2.10% .............................. 262,512 1.057 277,559 Separate Account Charges 2.15% .............................. - 1.057 - Separate Account Charges 2.20% .............................. - 1.057 - Separate Account Charges 2.25% .............................. - 1.056 - Separate Account Charges 2.30% .............................. 78,925 1.056 83,335 Separate Account Charges 2.40% .............................. - 1.071 - Separate Account Charges 2.45% .............................. - 1.055 - Separate Account Charges 2.50% .............................. - 1.054 - Separate Account Charges 2.65% .............................. - 1.053 - Separate Account Charges 2.60% .............................. - 1.070 - Money Market Portfolio Separate Account Charges 1.55% .............................. 2,669,982 0.989 2,640,712 Separate Account Charges 1.70% .............................. 1,116,721 0.987 1,101,771 Separate Account Charges 1.75% .............................. - 0.986 - Separate Account Charges 1.90% .............................. 747,359 0.983 734,857 Separate Account Charges 1.95% .............................. 1,734,183 0.982 1,703,630 Separate Account Charges 2.05% .............................. 57,824 0.996 57,587 Separate Account Charges 2.10% .............................. 1,392,585 0.980 1,364,699 Separate Account Charges 2.15% .............................. - 0.979 - Separate Account Charges 2.20% .............................. - 0.980 - Separate Account Charges 2.25% .............................. - 0.991 - Separate Account Charges 2.30% .............................. 1,517,985 0.977 1,482,604 Separate Account Charges 2.40% .............................. 122,820 0.994 122,085 Separate Account Charges 2.45% .............................. - 0.989 - Separate Account Charges 2.50% .............................. 275,155 0.973 267,838 Separate Account Charges 2.65% .............................. - 0.988 - Separate Account Charges 2.60% .............................. 2,496 0.993 2,478 AIM Variable Insurance Funds, Inc. AIM V.I. Capital Appreciation Fund - Series II Separate Account Charges 1.55% .............................. 525,857 1.283 674,531 Separate Account Charges 1.70% .............................. 339,421 1.280 434,325 Separate Account Charges 1.75% .............................. 21,268 1.278 27,189 Separate Account Charges 1.90% .............................. 113,134 1.275 144,282 Separate Account Charges 1.95% .............................. 530,534 1.274 675,989 Separate Account Charges 2.05% .............................. 2,150 1.056 2,271 Separate Account Charges 2.10% .............................. 593,713 1.271 754,642 Separate Account Charges 2.15% .............................. - 1.270 - Separate Account Charges 2.20% .............................. 959 1.196 1,148
-103- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ AIM Variable Insurance Funds, Inc. (continued) AIM V.I. Capital Appreciation Fund - Series II (continued) Separate Account Charges 2.25% .............................. - $ 1.062 $ - Separate Account Charges 2.30% .............................. 231,839 1.267 293,696 Separate Account Charges 2.40% .............................. - 1.054 - Separate Account Charges 2.45% .............................. - 1.060 - Separate Account Charges 2.50% .............................. 16,168 1.263 20,414 Separate Account Charges 2.65% .............................. - 1.058 - Separate Account Charges 2.60% .............................. 4,791 1.053 5,046 AIM V.I. Mid Cap Core Equity Fund - Series II Separate Account Charges 1.55% .............................. 83,381 1.391 116,020 Separate Account Charges 1.70% .............................. 313,846 1.388 435,635 Separate Account Charges 1.75% .............................. 57,583 1.387 79,857 Separate Account Charges 1.90% .............................. 18,458 1.383 25,536 Separate Account Charges 1.95% .............................. 232,067 1.382 320,761 Separate Account Charges 2.05% .............................. 11,497 1.067 12,269 Separate Account Charges 2.10% .............................. 276,314 1.379 380,997 Separate Account Charges 2.15% .............................. 12,234 1.378 16,853 Separate Account Charges 2.20% .............................. 923 1.250 1,153 Separate Account Charges 2.25% .............................. - 1.101 - Separate Account Charges 2.30% .............................. 61,198 1.374 84,101 Separate Account Charges 2.40% .............................. - 1.065 - Separate Account Charges 2.45% .............................. - 1.099 - Separate Account Charges 2.50% .............................. 3,183 1.370 4,360 Separate Account Charges 2.65% .............................. - 1.097 - Separate Account Charges 2.60% .............................. - 1.064 - AIM V.I. Utilities Fund Separate Account Charges 1.55% .............................. 63,769 1.300 82,917 Separate Account Charges 1.70% .............................. 26,330 1.297 34,156 Separate Account Charges 1.75% .............................. - 1.296 - Separate Account Charges 1.90% .............................. 13,375 1.293 17,297 Separate Account Charges 1.95% .............................. 106,758 1.292 137,951 Separate Account Charges 2.05% .............................. - 1.218 - Separate Account Charges 2.10% .............................. 257,948 1.289 332,535 Separate Account Charges 2.15% .............................. - 1.288 - Separate Account Charges 2.20% .............................. - 1.287 - Separate Account Charges 2.25% .............................. - 1.203 - Separate Account Charges 2.30% .............................. 50,899 1.285 65,412 Separate Account Charges 2.40% .............................. - 1.216 - Separate Account Charges 2.45% .............................. 5,843 1.201 7,016 Separate Account Charges 2.50% .............................. - 1.281 - Separate Account Charges 2.65% .............................. - 1.199 - Separate Account Charges 2.60% .............................. - 1.215 -
-104- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ AllianceBernstein Variable Product Series Fund, Inc. AllianceBernstein Premier Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 303,031 $ 1.223 $ 370,614 Separate Account Charges 1.70% .............................. 126,144 1.220 153,903 Separate Account Charges 1.75% .............................. - 1.219 - Separate Account Charges 1.90% .............................. - 1.216 - Separate Account Charges 1.95% .............................. 469,252 1.215 570,077 Separate Account Charges 2.05% .............................. - 1.060 - Separate Account Charges 2.10% .............................. 302,997 1.212 367,204 Separate Account Charges 2.15% .............................. - 1.211 - Separate Account Charges 2.20% .............................. - 1.168 - Separate Account Charges 2.25% .............................. - 1.084 - Separate Account Charges 2.30% .............................. 77,942 1.208 94,142 Separate Account Charges 2.40% .............................. 6,266 1.058 6,629 Separate Account Charges 2.45% .............................. - 1.082 - Separate Account Charges 2.50% .............................. 6,543 1.204 7,877 Separate Account Charges 2.65% .............................. - 1.080 - Separate Account Charges 2.60% .............................. - 1.057 - American Funds Insurance Series Global Growth Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 615,070 1.475 907,165 Separate Account Charges 1.70% .............................. 189,860 1.471 279,344 Separate Account Charges 1.75% .............................. - 1.470 - Separate Account Charges 1.90% .............................. 36,782 1.466 53,937 Separate Account Charges 1.95% .............................. 1,971,785 1.465 2,888,773 Separate Account Charges 2.05% .............................. 36,102 1.115 40,252 Separate Account Charges 2.10% .............................. 892,275 1.461 1,304,058 Separate Account Charges 2.15% .............................. 65,170 1.460 95,159 Separate Account Charges 2.20% .............................. 29,918 1.339 40,061 Separate Account Charges 2.25% .............................. - 1.118 - Separate Account Charges 2.30% .............................. 143,383 1.457 208,850 Separate Account Charges 2.40% .............................. 49,935 1.113 55,569 Separate Account Charges 2.45% .............................. - 1.116 - Separate Account Charges 2.50% .............................. 109,939 1.452 159,601 Separate Account Charges 2.65% .............................. - 1.114 - Separate Account Charges 2.60% .............................. 5,051 1.112 5,614
-105- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ American Funds Insurance Series (continued) Growth Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 2,082,365 $ 1.395 $ 2,904,365 Separate Account Charges 1.70% .............................. 731,465 1.391 1,017,730 Separate Account Charges 1.75% .............................. - 1.390 - Separate Account Charges 1.90% .............................. 153,257 1.387 212,522 Separate Account Charges 1.95% .............................. 6,624,019 1.385 9,177,083 Separate Account Charges 2.05% .............................. 184,806 1.088 200,995 Separate Account Charges 2.10% .............................. 2,602,616 1.382 3,596,979 Separate Account Charges 2.15% .............................. 209,058 1.381 288,668 Separate Account Charges 2.20% .............................. 125,978 1.268 159,731 Separate Account Charges 2.25% .............................. - 1.101 - Separate Account Charges 2.30% .............................. 644,130 1.377 887,249 Separate Account Charges 2.40% .............................. 52,497 1.086 56,986 Separate Account Charges 2.45% .............................. - 1.099 - Separate Account Charges 2.50% .............................. 364,182 1.373 499,962 Separate Account Charges 2.65% .............................. - 1.097 - Separate Account Charges 2.60% .............................. 7,719 1.084 8,370 Growth-Income Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 1,513,638 1.366 2,067,251 Separate Account Charges 1.70% .............................. 496,368 1.362 676,259 Separate Account Charges 1.75% .............................. - 1.361 - Separate Account Charges 1.90% .............................. 284,276 1.358 386,012 Separate Account Charges 1.95% .............................. 5,706,279 1.357 7,741,229 Separate Account Charges 2.05% .............................. 205,206 1.067 218,876 Separate Account Charges 2.10% .............................. 2,605,912 1.353 3,526,666 Separate Account Charges 2.15% .............................. 250,388 1.352 338,545 Separate Account Charges 2.20% .............................. 111,451 1.241 138,326 Separate Account Charges 2.25% .............................. 3,331 1.077 3,589 Separate Account Charges 2.30% .............................. 566,607 1.349 764,240 Separate Account Charges 2.40% .............................. 242,590 1.065 258,257 Separate Account Charges 2.45% .............................. - 1.076 - Separate Account Charges 2.50% .............................. 154,796 1.344 208,090 Separate Account Charges 2.65% .............................. - 1.074 - Separate Account Charges 2.60% .............................. 10,471 1.063 11,135 Credit Suisse Trust Credit Suisse Trust Emerging Markets Portfolio Separate Account Charges 1.55% .............................. 36,384 1.626 59,179 Separate Account Charges 1.70% .............................. 48,424 1.623 78,579 Separate Account Charges 1.75% .............................. - 1.621 - Separate Account Charges 1.90% .............................. 24,141 1.618 39,051
-106- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Credit Suisse Trust (continued) Credit Suisse Trust Emerging Markets Portfolio (continued) Separate Account Charges 1.95% .............................. 166,155 $ 1.616 $ 268,574 Separate Account Charges 2.05% .............................. - 1.289 - Separate Account Charges 2.10% .............................. 229,336 1.613 369,836 Separate Account Charges 2.15% .............................. - 1.611 - Separate Account Charges 2.20% .............................. - 1.610 - Separate Account Charges 2.25% .............................. 15,896 1.165 18,514 Separate Account Charges 2.30% .............................. 11,897 1.608 19,126 Separate Account Charges 2.40% .............................. - 1.286 - Separate Account Charges 2.45% .............................. 81,744 1.163 95,060 Separate Account Charges 2.50% .............................. 402 1.603 644 Separate Account Charges 2.65% .............................. - 1.161 - Separate Account Charges 2.60% .............................. - 1.285 - Credit Suisse Trust Global Post-Venture Capital Portfolio Separate Account Charges 1.55% .............................. 1,513 1.442 2,181 Separate Account Charges 1.70% .............................. 33,831 1.438 48,657 Separate Account Charges 1.75% .............................. - 1.437 - Separate Account Charges 1.90% .............................. 9,687 1.434 13,888 Separate Account Charges 1.95% .............................. 114,986 1.433 164,730 Separate Account Charges 2.05% .............................. - 1.124 - Separate Account Charges 2.10% .............................. 84,622 1.429 120,946 Separate Account Charges 2.15% .............................. 6,681 1.428 9,541 Separate Account Charges 2.20% .............................. - 1.427 - Separate Account Charges 2.25% .............................. - 1.133 - Separate Account Charges 2.30% .............................. 26,403 1.425 37,619 Separate Account Charges 2.40% .............................. - 1.122 - Separate Account Charges 2.45% .............................. 17,189 1.131 19,438 Separate Account Charges 2.50% .............................. - 1.420 - Separate Account Charges 2.65% .............................. - 1.129 - Separate Account Charges 2.60% .............................. - 1.121 - Delaware VIP Trust Delaware VIP REIT Series - Standard Class Separate Account Charges 1.55% .............................. 706,731 1.635 1,155,814 Separate Account Charges 1.70% .............................. 267,441 1.631 436,317 Separate Account Charges 1.75% .............................. 2,254 1.630 3,673 Separate Account Charges 1.90% .............................. 33,406 1.626 54,318 Separate Account Charges 1.95% .............................. 1,122,483 1.624 1,823,501 Separate Account Charges 2.05% .............................. 226,453 1.290 292,056 Separate Account Charges 2.10% .............................. 560,196 1.621 907,838 Separate Account Charges 2.15% .............................. 14,722 1.619 23,836
-107- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Delaware VIP Trust (continued) Delaware VIP REIT Series - Standard Class (continued) Separate Account Charges 2.20% .............................. 74,029 $ 1.559 $ 115,407 Separate Account Charges 2.25% .............................. 766 1.202 921 Separate Account Charges 2.30% .............................. 560,857 1.615 905,863 Separate Account Charges 2.40% .............................. - 1.287 - Separate Account Charges 2.45% .............................. - 1.200 - Separate Account Charges 2.50% .............................. 64,123 1.610 103,224 Separate Account Charges 2.65% .............................. - 1.198 - Separate Account Charges 2.60% .............................. 4,335 1.286 5,574 Dreyfus Investment Portfolio Dreyfus MidCap Stock Portfolio - Service Shares Separate Account Charges 1.55% .............................. 278,865 1.321 368,337 Separate Account Charges 1.70% .............................. 409,561 1.318 539,702 Separate Account Charges 1.75% .............................. 33,126 1.317 43,618 Separate Account Charges 1.90% .............................. 61,420 1.314 80,684 Separate Account Charges 1.95% .............................. 678,154 1.313 890,165 Separate Account Charges 2.05% .............................. - 1.130 - Separate Account Charges 2.10% .............................. 554,327 1.310 725,927 Separate Account Charges 2.15% .............................. - 1.309 - Separate Account Charges 2.20% .............................. - 1.307 - Separate Account Charges 2.25% .............................. 50,815 1.117 56,767 Separate Account Charges 2.30% .............................. 152,466 1.305 199,040 Separate Account Charges 2.40% .............................. - 1.127 - Separate Account Charges 2.45% .............................. 141,356 1.115 157,661 Separate Account Charges 2.50% .............................. 11,044 1.301 14,373 Separate Account Charges 2.65% .............................. 4,826 1.114 5,375 Separate Account Charges 2.60% .............................. - 1.126 - Dreyfus Socially Responsible Growth Fund, Inc. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares Separate Account Charges 1.55% .............................. - 1.177 - Separate Account Charges 1.70% .............................. 19,256 1.174 22,604 Separate Account Charges 1.75% .............................. - 1.173 - Separate Account Charges 1.90% .............................. - 1.170 - Separate Account Charges 1.95% .............................. 18,238 1.169 21,326 Separate Account Charges 2.05% .............................. - 1.030 - Separate Account Charges 2.10% .............................. 28,212 1.167 32,911 Separate Account Charges 2.15% .............................. - 1.166 - Separate Account Charges 2.20% .............................. - 1.165 - Separate Account Charges 2.25% .............................. - 1.045 - Separate Account Charges 2.30% .............................. - 1.163 -
-108- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Dreyfus Socially Responsible Growth Fund, Inc. (continued) Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares (continued) Separate Account Charges 2.40% .............................. - $ 1.028 $ - Separate Account Charges 2.45% .............................. - 1.043 - Separate Account Charges 2.50% .............................. - 1.159 - Separate Account Charges 2.65% .............................. - 1.042 - Separate Account Charges 2.60% .............................. - 1.027 - Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Portfolio - Initial Shares Separate Account Charges 1.55% .............................. 248,149 1.212 300,661 Separate Account Charges 1.70% .............................. 38,401 1.209 46,415 Separate Account Charges 1.75% .............................. - 1.208 - Separate Account Charges 1.90% .............................. 5,140 1.205 6,192 Separate Account Charges 1.95% .............................. 416,115 1.204 500,806 Separate Account Charges 2.05% .............................. 11,289 1.024 11,562 Separate Account Charges 2.10% .............................. 65,020 1.201 78,063 Separate Account Charges 2.15% .............................. 16,134 1.199 19,353 Separate Account Charges 2.20% .............................. 11,846 1.119 13,253 Separate Account Charges 2.25% .............................. - 1.034 - Separate Account Charges 2.30% .............................. 49,955 1.197 59,774 Separate Account Charges 2.40% .............................. 11,107 1.022 11,354 Separate Account Charges 2.45% .............................. - 1.033 - Separate Account Charges 2.50% .............................. 574 1.193 685 Separate Account Charges 2.65% .............................. - 1.031 - Separate Account Charges 2.60% .............................. - 1.021 - Dreyfus VIF Developing Leaders Portfolio - Initial Shares Separate Account Charges 1.55% .............................. 507,209 1.408 714,270 Separate Account Charges 1.70% .............................. 109,246 1.405 153,471 Separate Account Charges 1.75% .............................. - 1.404 - Separate Account Charges 1.90% .............................. 9,592 1.400 13,429 Separate Account Charges 1.95% .............................. 1,346,712 1.399 1,883,823 Separate Account Charges 2.05% .............................. 87,418 1.095 95,763 Separate Account Charges 2.10% .............................. 641,267 1.395 894,842 Separate Account Charges 2.15% .............................. 13,005 1.394 18,130 Separate Account Charges 2.20% .............................. 50,940 1.292 65,816 Separate Account Charges 2.25% .............................. - 1.055 - Separate Account Charges 2.30% .............................. 65,621 1.391 91,264 Separate Account Charges 2.40% .............................. 12,455 1.093 13,618 Separate Account Charges 2.45% .............................. - 1.054 - Separate Account Charges 2.50% .............................. 23,828 1.386 33,029 Separate Account Charges 2.65% .............................. - 1.052 - Separate Account Charges 2.60% .............................. - 1.092 -
-109- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Franklin Templeton Variable Insurance Products Trust Franklin Rising Dividends Securities Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 987,979 $ 1.329 $ 1,312,755 Separate Account Charges 1.70% .............................. 546,408 1.325 724,266 Separate Account Charges 1.75% .............................. 38,579 1.324 51,090 Separate Account Charges 1.90% .............................. 265,890 1.321 351,271 Separate Account Charges 1.95% .............................. 1,091,587 1.320 1,440,781 Separate Account Charges 2.05% .............................. 7,647 1.074 8,215 Separate Account Charges 2.10% .............................. 1,169,969 1.317 1,540,499 Separate Account Charges 2.15% .............................. 24,237 1.316 31,885 Separate Account Charges 2.20% .............................. 1,848 1.248 2,306 Separate Account Charges 2.25% .............................. - 1.088 - Separate Account Charges 2.30% .............................. 412,137 1.312 540,857 Separate Account Charges 2.40% .............................. - 1.072 - Separate Account Charges 2.45% .............................. - 1.087 - Separate Account Charges 2.50% .............................. 14,695 1.308 19,220 Separate Account Charges 2.65% .............................. - 1.085 - Separate Account Charges 2.60% .............................. - 1.071 - Franklin Small Cap Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 265,200 1.465 388,580 Separate Account Charges 1.70% .............................. 329,200 1.462 481,184 Separate Account Charges 1.75% .............................. - 1.460 - Separate Account Charges 1.90% .............................. 111,766 1.457 162,818 Separate Account Charges 1.95% .............................. 381,020 1.455 554,555 Separate Account Charges 2.05% .............................. 4,567 1.087 4,963 Separate Account Charges 2.10% .............................. 496,425 1.452 720,772 Separate Account Charges 2.15% .............................. 817 1.451 1,185 Separate Account Charges 2.20% .............................. - 1.332 - Separate Account Charges 2.25% .............................. - 1.107 - Separate Account Charges 2.30% .............................. 159,032 1.447 230,129 Separate Account Charges 2.40% .............................. - 1.085 - Separate Account Charges 2.45% .............................. - 1.105 - Separate Account Charges 2.50% .............................. 10,525 1.442 15,179 Separate Account Charges 2.65% .............................. - 1.104 - Separate Account Charges 2.60% .............................. 4,717 1.083 5,110 Mutual Shares Securities Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 103,042 1.339 137,953 Separate Account Charges 1.70% .............................. 89,029 1.336 118,904 Separate Account Charges 1.75% .............................. - 1.334 - Separate Account Charges 1.90% .............................. 20,572 1.331 27,383 Separate Account Charges 1.95% .............................. 826,447 1.330 1,099,051
-110- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Franklin Templeton Variable Insurance Products Trust (continued) Mutual Shares Securities Fund - Class 2 Shares (continued) Separate Account Charges 2.05% .............................. 25,433 $ 1.102 $ 28,026 Separate Account Charges 2.10% .............................. 412,350 1.327 547,041 Separate Account Charges 2.15% .............................. - 1.325 - Separate Account Charges 2.20% .............................. 3,525 1.238 4,364 Separate Account Charges 2.25% .............................. - 1.087 - Separate Account Charges 2.30% .............................. 141,873 1.322 187,582 Separate Account Charges 2.40% .............................. - 1.100 - Separate Account Charges 2.45% .............................. - 1.086 - Separate Account Charges 2.50% .............................. 78,629 1.318 103,614 Separate Account Charges 2.65% .............................. - 1.084 - Separate Account Charges 2.60% .............................. 2,543 1.099 2,793 Templeton Developing Markets Securities Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 407,795 1.816 740,716 Separate Account Charges 1.70% .............................. 69,128 1.812 125,260 Separate Account Charges 1.75% .............................. - 1.810 - Separate Account Charges 1.90% .............................. 18,650 1.806 33,680 Separate Account Charges 1.95% .............................. 830,664 1.804 1,498,748 Separate Account Charges 2.05% .............................. 26,697 1.264 33,734 Separate Account Charges 2.10% .............................. 292,718 1.800 526,857 Separate Account Charges 2.15% .............................. - 1.798 - Separate Account Charges 2.20% .............................. 3,969 1.620 6,429 Separate Account Charges 2.25% .............................. - 1.180 - Separate Account Charges 2.30% .............................. 65,791 1.794 118,021 Separate Account Charges 2.40% .............................. 6,091 1.261 7,682 Separate Account Charges 2.45% .............................. - 1.178 - Separate Account Charges 2.50% .............................. 20,786 1.788 37,162 Separate Account Charges 2.65% .............................. - 1.176 - Separate Account Charges 2.60% .............................. - 1.260 - Templeton Foreign Securities Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 542,562 1.562 847,297 Separate Account Charges 1.70% .............................. 493,997 1.558 769,575 Separate Account Charges 1.75% .............................. 36,194 1.556 56,333 Separate Account Charges 1.90% .............................. 187,836 1.553 291,641 Separate Account Charges 1.95% .............................. 868,465 1.551 1,347,180 Separate Account Charges 2.05% .............................. 40,221 1.158 46,572 Separate Account Charges 2.10% .............................. 840,584 1.547 1,300,761 Separate Account Charges 2.15% .............................. 58,808 1.546 90,920 Separate Account Charges 2.20% .............................. 35,367 1.409 49,824 Separate Account Charges 2.25% .............................. 2,400 1.153 2,767 Separate Account Charges 2.30% .............................. 259,760 1.542 400,620
-111- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Franklin Templeton Variable Insurance Products Trust (continued) Templeton Foreign Securities Fund - Class 2 Shares (continued) Separate Account Charges 2.40% .............................. - $ 1.156 $ - Separate Account Charges 2.45% .............................. - 1.151 - Separate Account Charges 2.50% .............................. 19,494 1.537 29,965 Separate Account Charges 2.65% .............................. - 1.149 - Separate Account Charges 2.60% .............................. 4,481 1.154 5,174 Templeton Growth Securities Fund - Class 2 Shares Separate Account Charges 1.55% .............................. 573,757 1.517 870,193 Separate Account Charges 1.70% .............................. 300,326 1.513 454,387 Separate Account Charges 1.75% .............................. - 1.512 - Separate Account Charges 1.90% .............................. 6,070 1.508 9,153 Separate Account Charges 1.95% .............................. 1,231,639 1.506 1,855,502 Separate Account Charges 2.05% .............................. 73,293 1.121 82,184 Separate Account Charges 2.10% .............................. 797,278 1.503 1,198,196 Separate Account Charges 2.15% .............................. - 1.501 - Separate Account Charges 2.20% .............................. 40,440 1.344 54,368 Separate Account Charges 2.25% .............................. - 1.135 - Separate Account Charges 2.30% .............................. 42,469 1.498 63,613 Separate Account Charges 2.40% .............................. 20,151 1.119 22,553 Separate Account Charges 2.45% .............................. - 1.133 - Separate Account Charges 2.50% .............................. 66,465 1.493 99,221 Separate Account Charges 2.65% .............................. - 1.131 - Separate Account Charges 2.60% .............................. - 1.118 - Greenwich Street Series Fund Equity Index Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 827,007 1.316 1,087,955 Separate Account Charges 1.70% .............................. 308,427 1.312 404,757 Separate Account Charges 1.75% .............................. - 1.311 - Separate Account Charges 1.90% .............................. 228 1.308 298 Separate Account Charges 1.95% .............................. 2,659,893 1.307 3,475,798 Separate Account Charges 2.05% .............................. 214,446 1.072 229,794 Separate Account Charges 2.10% .............................. 877,263 1.304 1,143,578 Separate Account Charges 2.15% .............................. 50,491 1.302 65,759 Separate Account Charges 2.20% .............................. 48,594 1.213 58,923 Separate Account Charges 2.25% .............................. - 1.087 - Separate Account Charges 2.30% .............................. 98,677 1.299 128,202 Separate Account Charges 2.40% .............................. - 1.070 - Separate Account Charges 2.45% .............................. - 1.086 - Separate Account Charges 2.50% .............................. 98,157 1.295 127,100 Separate Account Charges 2.65% .............................. - 1.084 - Separate Account Charges 2.60% .............................. - 1.068 -
-112- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Greenwich Street Series Fund (continued) Salomon Brothers Variable Aggressive Growth Fund - Class I Shares Separate Account Charges 1.55% .............................. 383,360 $ 1.368 $ 524,450 Separate Account Charges 1.70% .............................. 61,992 1.365 84,601 Separate Account Charges 1.75% .............................. - 1.363 - Separate Account Charges 1.90% .............................. - 1.360 - Separate Account Charges 1.95% .............................. 1,053,751 1.359 1,431,938 Separate Account Charges 2.05% .............................. 62,522 1.056 66,024 Separate Account Charges 2.10% .............................. 442,526 1.356 599,879 Separate Account Charges 2.15% .............................. 378 1.354 513 Separate Account Charges 2.20% .............................. 77,188 1.232 95,072 Separate Account Charges 2.25% .............................. - 1.040 - Separate Account Charges 2.30% .............................. 52,642 1.351 71,122 Separate Account Charges 2.40% .............................. - 1.054 - Separate Account Charges 2.45% .............................. - 1.038 - Separate Account Charges 2.50% .............................. 75,088 1.347 101,108 Separate Account Charges 2.65% .............................. - 1.036 - Separate Account Charges 2.60% .............................. - 1.053 - Salomon Brothers Variable Aggressive Growth Fund - Class II Shares Separate Account Charges 1.55% .............................. 495,772 1.346 667,271 Separate Account Charges 1.70% .............................. 275,915 1.343 370,460 Separate Account Charges 1.75% .............................. 788 1.341 1,057 Separate Account Charges 1.90% .............................. 193,252 1.338 258,609 Separate Account Charges 1.95% .............................. 674,583 1.337 901,898 Separate Account Charges 2.05% .............................. - 1.054 - Separate Account Charges 2.10% .............................. 548,972 1.334 732,181 Separate Account Charges 2.15% .............................. 29,073 1.333 38,741 Separate Account Charges 2.20% .............................. - 1.222 - Separate Account Charges 2.25% .............................. - 1.037 - Separate Account Charges 2.30% .............................. 193,584 1.329 257,329 Separate Account Charges 2.40% .............................. - 1.052 - Separate Account Charges 2.45% .............................. - 1.035 - Separate Account Charges 2.50% .............................. 18,591 1.325 24,631 Separate Account Charges 2.65% .............................. - 1.034 - Separate Account Charges 2.60% .............................. 4,861 1.051 5,110 Salomon Brothers Variable Growth & Income Fund - Class I Shares Separate Account Charges 1.55% .............................. 114,055 1.311 149,546 Separate Account Charges 1.70% .............................. 89,747 1.308 117,389 Separate Account Charges 1.75% .............................. - 1.307 - Separate Account Charges 1.90% .............................. 6,019 1.304 7,847 Separate Account Charges 1.95% .............................. 495,859 1.302 645,819
-113- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Greenwich Street Series Fund (continued) Salomon Brothers Variable Growth & Income Fund - Class I Shares (continued) Separate Account Charges 2.05% .............................. 34,220 $ 1.067 $ 36,516 Separate Account Charges 2.10% .............................. 112,911 1.299 146,701 Separate Account Charges 2.15% .............................. - 1.298 - Separate Account Charges 2.20% .............................. 21,267 1.195 25,407 Separate Account Charges 2.25% .............................. - 1.076 - Separate Account Charges 2.30% .............................. - 1.295 - Separate Account Charges 2.40% .............................. 4,371 1.065 4,656 Separate Account Charges 2.45% .............................. - 1.075 - Separate Account Charges 2.50% .............................. - 1.291 - Separate Account Charges 2.65% .............................. - 1.073 - Separate Account Charges 2.60% .............................. - 1.064 - Janus Aspen Series Balanced Portfolio - Service Shares Separate Account Charges 1.55% .............................. 9,561 1.167 11,158 Separate Account Charges 1.70% .............................. 5,393 1.164 6,279 Separate Account Charges 1.75% .............................. - 1.163 - Separate Account Charges 1.90% .............................. 6,769 1.160 7,854 Separate Account Charges 1.95% .............................. 169,514 1.159 196,506 Separate Account Charges 2.05% .............................. - 1.070 - Separate Account Charges 2.10% .............................. 52,966 1.156 61,250 Separate Account Charges 2.15% .............................. 6,465 1.155 7,469 Separate Account Charges 2.20% .............................. - 1.114 - Separate Account Charges 2.25% .............................. - 1.061 - Separate Account Charges 2.30% .............................. 16,913 1.153 19,493 Separate Account Charges 2.40% .............................. - 1.068 - Separate Account Charges 2.45% .............................. - 1.059 - Separate Account Charges 2.50% .............................. - 1.149 - Separate Account Charges 2.65% .............................. - 1.057 - Separate Account Charges 2.60% .............................. - 1.067 - Global Life Sciences Portfolio - Service Shares Separate Account Charges 1.55% .............................. 9,778 1.340 13,108 Separate Account Charges 1.70% .............................. - 1.337 - Separate Account Charges 1.75% .............................. - 1.336 - Separate Account Charges 1.90% .............................. - 1.333 - Separate Account Charges 1.95% .............................. 95,391 1.332 127,020 Separate Account Charges 2.05% .............................. - 1.040 - Separate Account Charges 2.10% .............................. 33,249 1.328 44,165 Separate Account Charges 2.15% .............................. - 1.327 - Separate Account Charges 2.20% .............................. - 1.242 - Separate Account Charges 2.25% .............................. - 1.065 -
-114- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Janus Aspen Series (continued) Global Life Sciences Portfolio - Service Shares (continued) Separate Account Charges 2.30% .............................. 18,974 $ 1.324 $ 25,120 Separate Account Charges 2.40% .............................. - 1.038 - Separate Account Charges 2.45% .............................. - 1.063 - Separate Account Charges 2.50% .............................. - 1.319 - Separate Account Charges 2.65% .............................. - 1.061 - Separate Account Charges 2.60% .............................. - 1.037 - Global Technology Portfolio - Service Shares Separate Account Charges 1.55% .............................. 62,149 1.373 85,301 Separate Account Charges 1.70% .............................. - 1.369 - Separate Account Charges 1.75% .............................. - 1.368 - Separate Account Charges 1.90% .............................. - 1.365 - Separate Account Charges 1.95% .............................. 169,660 1.363 231,309 Separate Account Charges 2.05% .............................. - 1.054 - Separate Account Charges 2.10% .............................. 39,464 1.360 53,674 Separate Account Charges 2.15% .............................. - 1.359 - Separate Account Charges 2.20% .............................. 1,759 1.217 2,142 Separate Account Charges 2.25% .............................. - 1.017 - Separate Account Charges 2.30% .............................. 6,427 1.355 8,712 Separate Account Charges 2.40% .............................. - 1.052 - Separate Account Charges 2.45% .............................. - 1.015 - Separate Account Charges 2.50% .............................. - 1.351 - Separate Account Charges 2.65% .............................. - 1.013 - Separate Account Charges 2.60% .............................. - 1.051 - Worldwide Growth Portfolio - Service Shares Separate Account Charges 1.55% .............................. 28,335 1.290 36,563 Separate Account Charges 1.70% .............................. - 1.287 - Separate Account Charges 1.75% .............................. - 1.286 - Separate Account Charges 1.90% .............................. - 1.283 - Separate Account Charges 1.95% .............................. 37,523 1.282 48,095 Separate Account Charges 2.05% .............................. - 1.089 - Separate Account Charges 2.10% .............................. 40,008 1.279 51,155 Separate Account Charges 2.15% .............................. - 1.277 - Separate Account Charges 2.20% .............................. - 1.171 - Separate Account Charges 2.25% .............................. - 1.024 - Separate Account Charges 2.30% .............................. - 1.274 - Separate Account Charges 2.40% .............................. - 1.087 - Separate Account Charges 2.45% .............................. - 1.022 - Separate Account Charges 2.50% .............................. - 1.270 - Separate Account Charges 2.65% .............................. - 1.021 - Separate Account Charges 2.60% .............................. - 1.085 -
-115- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Lazard Retirement Series, Inc. Lazard Retirement Small Cap Portfolio Separate Account Charges 1.55% .............................. 88,037 $ 1.509 $ 132,888 Separate Account Charges 1.70% .............................. 53,737 1.506 80,916 Separate Account Charges 1.75% .............................. - 1.504 - Separate Account Charges 1.90% .............................. - 1.501 - Separate Account Charges 1.95% .............................. 857,206 1.499 1,285,316 Separate Account Charges 2.05% .............................. 29,978 1.128 33,805 Separate Account Charges 2.10% .............................. 242,441 1.496 362,640 Separate Account Charges 2.15% .............................. 45,418 1.494 67,873 Separate Account Charges 2.20% .............................. 1,848 1.380 2,551 Separate Account Charges 2.25% .............................. - 1.115 - Separate Account Charges 2.30% .............................. 90,840 1.491 135,424 Separate Account Charges 2.40% .............................. - 1.125 - Separate Account Charges 2.45% .............................. - 1.113 - Separate Account Charges 2.50% .............................. 39,933 1.486 59,335 Separate Account Charges 2.65% .............................. - 1.111 - Separate Account Charges 2.60% .............................. - 1.124 - Lord Abbett Series Fund, Inc. Growth and Income Portfolio Separate Account Charges 1.55% .............................. 247,185 1.379 340,828 Separate Account Charges 1.70% .............................. 74,664 1.375 102,699 Separate Account Charges 1.75% .............................. - 1.374 - Separate Account Charges 1.90% .............................. 4,534 1.371 6,215 Separate Account Charges 1.95% .............................. 1,520,644 1.370 2,082,804 Separate Account Charges 2.05% .............................. 36,909 1.101 40,652 Separate Account Charges 2.10% .............................. 904,054 1.366 1,235,263 Separate Account Charges 2.15% .............................. 65,061 1.365 88,815 Separate Account Charges 2.20% .............................. 2,656 1.270 3,374 Separate Account Charges 2.25% .............................. - 1.105 - Separate Account Charges 2.30% .............................. 215,646 1.362 293,668 Separate Account Charges 2.40% .............................. 30,970 1.099 34,046 Separate Account Charges 2.45% .............................. - 1.103 - Separate Account Charges 2.50% .............................. 77,834 1.357 105,643 Separate Account Charges 2.65% .............................. - 1.102 - Separate Account Charges 2.60% .............................. - 1.098 -
-116- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Lord Abbett Series Fund, Inc. (continued) Mid-Cap Value Portfolio Separate Account Charges 1.55% .............................. 566,176 $ 1.537 $ 870,085 Separate Account Charges 1.70% .............................. 150,240 1.533 230,327 Separate Account Charges 1.75% .............................. 5,008 1.532 7,670 Separate Account Charges 1.90% .............................. 37,728 1.528 57,646 Separate Account Charges 1.95% .............................. 1,303,437 1.527 1,989,758 Separate Account Charges 2.05% .............................. 10,727 1.162 12,471 Separate Account Charges 2.10% .............................. 645,257 1.523 982,638 Separate Account Charges 2.15% .............................. 73,136 1.521 111,275 Separate Account Charges 2.20% .............................. 30,770 1.411 43,420 Separate Account Charges 2.25% .............................. 2,336 1.184 2,766 Separate Account Charges 2.30% .............................. 196,614 1.518 298,419 Separate Account Charges 2.40% .............................. 23,358 1.160 27,102 Separate Account Charges 2.45% .............................. - 1.182 - Separate Account Charges 2.50% .............................. 44,269 1.513 66,967 Separate Account Charges 2.65% .............................. - 1.181 - Separate Account Charges 2.60% .............................. - 1.159 - Merrill Lynch Variable Series Funds, Inc. Merrill Lynch Global Allocation V.I. Fund - Class III Separate Account Charges 1.55% .............................. 55,421 1.213 67,226 Separate Account Charges 1.70% .............................. 46,933 1.211 56,836 Separate Account Charges 1.75% .............................. - 1.210 - Separate Account Charges 1.90% .............................. 31,768 1.208 38,386 Separate Account Charges 1.95% .............................. 332,079 1.208 401,032 Separate Account Charges 2.05% .............................. 2,018 1.119 2,258 Separate Account Charges 2.10% .............................. 415,902 1.206 501,426 Separate Account Charges 2.15% .............................. - 1.205 - Separate Account Charges 2.20% .............................. 13,789 1.204 16,606 Separate Account Charges 2.25% .............................. - 1.113 - Separate Account Charges 2.30% .............................. 131,245 1.203 157,882 Separate Account Charges 2.40% .............................. - 1.116 - Separate Account Charges 2.45% .............................. - 1.112 - Separate Account Charges 2.50% .............................. 79,749 1.200 95,722 Separate Account Charges 2.65% .............................. - 1.110 - Separate Account Charges 2.60% .............................. - 1.115 -
-117- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Merrill Lynch Variable Series Funds, Inc. (continued) Merrill Lynch Value Opportunities V.I. Fund - Class III Separate Account Charges 1.55% .............................. 149,956 $ 1.211 $ 181,624 Separate Account Charges 1.70% .............................. 30,049 1.209 36,334 Separate Account Charges 1.75% .............................. - 1.208 - Separate Account Charges 1.90% .............................. 34,501 1.206 41,626 Separate Account Charges 1.95% .............................. 561,404 1.206 676,953 Separate Account Charges 2.05% .............................. 2,171 1.121 2,434 Separate Account Charges 2.10% .............................. 523,508 1.204 630,209 Separate Account Charges 2.15% .............................. 1,648 1.203 1,983 Separate Account Charges 2.20% .............................. 33,250 1.202 39,982 Separate Account Charges 2.25% .............................. - 1.097 - Separate Account Charges 2.30% .............................. 97,797 1.201 117,469 Separate Account Charges 2.40% .............................. 10,114 1.119 11,318 Separate Account Charges 2.45% .............................. - 1.096 - Separate Account Charges 2.50% .............................. 17,589 1.198 21,080 Separate Account Charges 2.65% .............................. - 1.094 - Separate Account Charges 2.60% .............................. - 1.118 - Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA - Service Shares Separate Account Charges 1.55% .............................. 364,735 1.294 472,120 Separate Account Charges 1.70% .............................. 630,486 1.291 814,124 Separate Account Charges 1.75% .............................. 52,911 1.290 68,260 Separate Account Charges 1.90% .............................. 60,448 1.287 77,794 Separate Account Charges 1.95% .............................. 388,699 1.286 499,777 Separate Account Charges 2.05% .............................. - 1.049 - Separate Account Charges 2.10% .............................. 335,647 1.283 430,515 Separate Account Charges 2.15% .............................. 28,846 1.281 36,965 Separate Account Charges 2.20% .............................. 955 1.200 1,146 Separate Account Charges 2.25% .............................. - 1.065 - Separate Account Charges 2.30% .............................. 143,986 1.278 184,062 Separate Account Charges 2.40% .............................. - 1.047 - Separate Account Charges 2.45% .............................. - 1.063 - Separate Account Charges 2.50% .............................. 8,271 1.274 10,538 Separate Account Charges 2.65% .............................. - 1.061 - Separate Account Charges 2.60% .............................. - 1.045 - Oppenheimer Global Securities Fund/VA - Service Shares Separate Account Charges 1.55% .............................. 765,241 1.654 1,265,796 Separate Account Charges 1.60% .............................. - 1.485 - Separate Account Charges 1.70% .............................. 220,980 1.650 364,643 Separate Account Charges 1.75% .............................. 48,490 1.649 79,942 Separate Account Charges 1.90% .............................. 61,081 1.645 100,454
-118- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Oppenheimer Variable Account Funds (continued) Oppenheimer Global Securities Fund/VA - Service Shares (continued) Separate Account Charges 1.95% .............................. 628,049 $ 1.643 $ 1,031,961 Separate Account Charges 2.05% .............................. - 1.171 - Separate Account Charges 2.10% .............................. 391,043 1.639 640,977 Separate Account Charges 2.15% .............................. 25,245 1.638 41,343 Separate Account Charges 2.20% .............................. 1,564 1.472 2,301 Separate Account Charges 2.25% .............................. - 1.165 - Separate Account Charges 2.30% .............................. 257,164 1.634 420,126 Separate Account Charges 2.40% .............................. 2,321 1.169 2,713 Separate Account Charges 2.45% .............................. - 1.163 - Separate Account Charges 2.50% .............................. 16,442 1.628 26,772 Separate Account Charges 2.65% .............................. - 1.161 - Separate Account Charges 2.60% .............................. - 1.167 - Oppenheimer Main Street Fund/VA - Service Shares Separate Account Charges 1.55% .............................. 308,472 1.053 324,856 Separate Account Charges 1.70% .............................. 70,419 1.052 74,084 Separate Account Charges 1.75% .............................. - 1.052 - Separate Account Charges 1.90% .............................. 31,878 1.051 33,491 Separate Account Charges 1.95% .............................. 378,303 1.050 397,313 Separate Account Charges 2.05% .............................. 424,626 1.064 452,003 Separate Account Charges 2.10% .............................. 91,380 1.049 95,875 Separate Account Charges 2.15% .............................. - 1.049 - Separate Account Charges 2.20% .............................. 154,823 1.048 162,327 Separate Account Charges 2.25% .............................. - 1.048 - Separate Account Charges 2.30% .............................. - 1.048 - Separate Account Charges 2.40% .............................. - 1.062 - Separate Account Charges 2.45% .............................. - 1.047 - Separate Account Charges 2.50% .............................. - 1.046 - Separate Account Charges 2.65% .............................. - 1.045 - Separate Account Charges 2.60% .............................. - 1.061 - PIMCO Variable Insurance Trust Real Return Portfolio - Administrative Class Separate Account Charges 1.55% .............................. 999,663 1.122 1,122,089 Separate Account Charges 1.70% .............................. 79,443 1.120 88,955 Separate Account Charges 1.75% .............................. - 1.119 - Separate Account Charges 1.90% .............................. 9,422 1.116 10,515 Separate Account Charges 1.95% .............................. 1,976,057 1.115 2,203,264 Separate Account Charges 2.05% .............................. 50,014 1.069 53,483 Separate Account Charges 2.10% .............................. 771,778 1.112 858,417 Separate Account Charges 2.15% .............................. 37,955 1.111 42,177 Separate Account Charges 2.20% .............................. 56,526 1.057 59,761
-119- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ PIMCO Variable Insurance Trust (continued) Real Return Portfolio - Administrative Class (continued) Separate Account Charges 2.25% .............................. 1,736 $ 1.020 $ 1,770 Separate Account Charges 2.30% .............................. 135,276 1.108 149,960 Separate Account Charges 2.40% .............................. 42,235 1.067 45,077 Separate Account Charges 2.45% .............................. - 1.018 - Separate Account Charges 2.50% .............................. 23,112 1.105 25,535 Separate Account Charges 2.65% .............................. - 1.016 - Separate Account Charges 2.60% .............................. 5,161 1.066 5,503 Total Return Portfolio - Administrative Class Separate Account Charges 1.55% .............................. 1,655,495 1.046 1,732,279 Separate Account Charges 1.70% .............................. 560,048 1.044 584,584 Separate Account Charges 1.75% .............................. 6,530 1.043 6,810 Separate Account Charges 1.90% .............................. 75,474 1.040 78,517 Separate Account Charges 1.95% .............................. 3,393,587 1.039 3,527,126 Separate Account Charges 2.05% .............................. 481,867 1.046 504,113 Separate Account Charges 2.10% .............................. 1,700,787 1.037 1,763,388 Separate Account Charges 2.15% .............................. 135,135 1.036 139,982 Separate Account Charges 2.20% .............................. 190,746 1.011 192,934 Separate Account Charges 2.25% .............................. - 1.003 - Separate Account Charges 2.30% .............................. 279,803 1.033 289,131 Separate Account Charges 2.40% .............................. 62,023 1.044 64,762 Separate Account Charges 2.45% .............................. - 1.002 - Separate Account Charges 2.50% .............................. 5,097 1.030 5,249 Separate Account Charges 2.65% .............................. - 1.000 - Separate Account Charges 2.60% .............................. 5,301 1.043 5,529 Pioneer Variable Contracts Trust Pioneer America Income VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 922,208 1.010 931,438 Separate Account Charges 1.70% .............................. 552,237 1.008 556,403 Separate Account Charges 1.75% .............................. 4,411 1.007 4,441 Separate Account Charges 1.90% .............................. 647,590 1.004 650,300 Separate Account Charges 1.95% .............................. 773,884 1.003 776,415 Separate Account Charges 2.05% .............................. 7,806 1.034 8,074 Separate Account Charges 2.10% .............................. 399,575 1.001 399,907 Separate Account Charges 2.15% .............................. 3,517 1.000 3,516 Separate Account Charges 2.20% .............................. 2,326 0.990 2,302 Separate Account Charges 2.25% .............................. - 0.992 - Separate Account Charges 2.30% .............................. 378,667 0.997 377,721 Separate Account Charges 2.40% .............................. - 1.032 - Separate Account Charges 2.45% .............................. - 0.991 - Separate Account Charges 2.50% .............................. 19,893 0.994 19,777
-120- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer America Income VCT Portfolio - Class II Shares (continued) Separate Account Charges 2.65% .............................. - $ 0.989 $ - Separate Account Charges 2.60% .............................. - 1.031 - Pioneer Balanced VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 511,568 1.143 584,784 Separate Account Charges 1.70% .............................. 254,318 1.140 290,007 Separate Account Charges 1.75% .............................. - 1.139 - Separate Account Charges 1.90% .............................. 445,403 1.137 506,223 Separate Account Charges 1.95% .............................. 174,655 1.135 198,322 Separate Account Charges 2.05% .............................. - 1.028 - Separate Account Charges 2.10% .............................. 867,663 1.133 982,848 Separate Account Charges 2.15% .............................. - 1.132 - Separate Account Charges 2.20% .............................. - 1.068 - Separate Account Charges 2.25% .............................. - 1.020 - Separate Account Charges 2.30% .............................. 56,396 1.129 63,670 Separate Account Charges 2.40% .............................. - 1.026 - Separate Account Charges 2.45% .............................. - 1.018 - Separate Account Charges 2.50% .............................. 3,766 1.125 4,238 Separate Account Charges 2.65% .............................. - 1.017 - Separate Account Charges 2.60% .............................. - 1.025 - Pioneer Emerging Markets VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 431,017 1.764 760,499 Separate Account Charges 1.70% .............................. 109,699 1.760 193,086 Separate Account Charges 1.75% .............................. 6,377 1.759 11,214 Separate Account Charges 1.90% .............................. 44,631 1.754 78,296 Separate Account Charges 1.95% .............................. 352,234 1.753 617,366 Separate Account Charges 2.05% .............................. 956 1.297 1,240 Separate Account Charges 2.10% .............................. 362,843 1.748 634,417 Separate Account Charges 2.15% .............................. 7,982 1.747 13,944 Separate Account Charges 2.20% .............................. - 1.593 - Separate Account Charges 2.25% .............................. - 1.142 - Separate Account Charges 2.30% .............................. 221,462 1.743 385,934 Separate Account Charges 2.40% .............................. - 1.295 - Separate Account Charges 2.45% .............................. - 1.141 - Separate Account Charges 2.50% .............................. 15,206 1.737 26,410 Separate Account Charges 2.65% .............................. - 1.139 - Separate Account Charges 2.60% .............................. 4,136 1.294 5,350
-121- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Equity Income VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 1,018,570 $ 1.377 $ 1,402,225 Separate Account Charges 1.70% .............................. 492,774 1.373 676,734 Separate Account Charges 1.75% .............................. - 1.372 - Separate Account Charges 1.90% .............................. 298,133 1.369 408,065 Separate Account Charges 1.95% .............................. 623,014 1.367 851,973 Separate Account Charges 2.05% .............................. 6,284 1.127 7,082 Separate Account Charges 2.10% .............................. 363,631 1.364 496,064 Separate Account Charges 2.15% .............................. 2,634 1.363 3,590 Separate Account Charges 2.20% .............................. - 1.261 - Separate Account Charges 2.25% .............................. - 1.132 - Separate Account Charges 2.30% .............................. 206,715 1.360 281,061 Separate Account Charges 2.40% .............................. - 1.125 - Separate Account Charges 2.45% .............................. - 1.131 - Separate Account Charges 2.50% .............................. 9,677 1.355 13,113 Separate Account Charges 2.65% .............................. - 1.129 - Separate Account Charges 2.60% .............................. - 1.124 - Pioneer Europe VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 22,714 1.493 33,916 Separate Account Charges 1.70% .............................. 17,995 1.490 26,804 Separate Account Charges 1.75% .............................. - 1.488 - Separate Account Charges 1.90% .............................. - 1.485 - Separate Account Charges 1.95% .............................. 42,883 1.483 63,606 Separate Account Charges 2.05% .............................. - 1.179 - Separate Account Charges 2.10% .............................. 73,687 1.480 109,030 Separate Account Charges 2.15% .............................. - 1.478 - Separate Account Charges 2.20% .............................. - 1.379 - Separate Account Charges 2.25% .............................. - 1.192 - Separate Account Charges 2.30% .............................. 57,688 1.475 85,074 Separate Account Charges 2.40% .............................. - 1.177 - Separate Account Charges 2.45% .............................. - 1.190 - Separate Account Charges 2.50% .............................. 5,245 1.470 7,710 Separate Account Charges 2.65% .............................. - 1.188 - Separate Account Charges 2.60% .............................. - 1.176 - Pioneer Fund VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 447,313 1.324 592,409 Separate Account Charges 1.70% .............................. 532,036 1.321 702,902 Separate Account Charges 1.75% .............................. 42,109 1.320 55,581 Separate Account Charges 1.90% .............................. 116,457 1.317 153,344 Separate Account Charges 1.95% .............................. 977,146 1.316 1,285,468
-122- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Fund VCT Portfolio - Class II Shares (continued) Separate Account Charges 2.05% .............................. 4,932 $ 1.092 $ 5,386 Separate Account Charges 2.10% .............................. 859,224 1.312 1,127,597 Separate Account Charges 2.15% .............................. 27,379 1.311 35,897 Separate Account Charges 2.20% .............................. - 1.227 - Separate Account Charges 2.25% .............................. - 1.103 - Separate Account Charges 2.30% .............................. 447,061 1.308 584,732 Separate Account Charges 2.40% .............................. - 1.090 - Separate Account Charges 2.45% .............................. - 1.101 - Separate Account Charges 2.50% .............................. 36,417 1.304 47,472 Separate Account Charges 2.65% .............................. - 1.100 - Separate Account Charges 2.60% .............................. 6,968 1.089 7,588 Pioneer Growth Shares VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 344,922 1.208 416,725 Separate Account Charges 1.70% .............................. 70,236 1.205 84,652 Separate Account Charges 1.75% .............................. - 1.204 - Separate Account Charges 1.90% .............................. 57,772 1.201 69,398 Separate Account Charges 1.95% .............................. 142,373 1.200 170,869 Separate Account Charges 2.05% .............................. - 1.083 - Separate Account Charges 2.10% .............................. 147,916 1.197 177,092 Separate Account Charges 2.15% .............................. - 1.196 - Separate Account Charges 2.20% .............................. - 1.129 - Separate Account Charges 2.25% .............................. - 1.060 - Separate Account Charges 2.30% .............................. 28,890 1.193 34,474 Separate Account Charges 2.40% .............................. - 1.081 - Separate Account Charges 2.45% .............................. - 1.058 - Separate Account Charges 2.50% .............................. 7,375 1.189 8,771 Separate Account Charges 2.65% .............................. - 1.056 - Separate Account Charges 2.60% .............................. - 1.080 - Pioneer High Yield VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 2,750,931 1.223 3,363,820 Separate Account Charges 1.70% .............................. 732,713 1.220 893,779 Separate Account Charges 1.75% .............................. 33,712 1.219 41,085 Separate Account Charges 1.90% .............................. 164,624 1.216 200,143 Separate Account Charges 1.95% .............................. 1,130,616 1.215 1,373,306 Separate Account Charges 2.05% .............................. 8,025 1.087 8,722 Separate Account Charges 2.10% .............................. 1,035,150 1.212 1,254,299 Separate Account Charges 2.15% .............................. 31,242 1.211 37,822 Separate Account Charges 2.20% .............................. - 1.139 - Separate Account Charges 2.25% .............................. - 1.031 - Separate Account Charges 2.30% .............................. 391,936 1.208 473,328 Separate Account Charges 2.40% .............................. - 1.085 -
-123- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer High Yield VCT Portfolio - Class II Shares (continued) Separate Account Charges 2.45% .............................. - $ 1.030 $ - Separate Account Charges 2.50% .............................. 33,179 1.204 39,936 Separate Account Charges 2.65% .............................. - 1.028 - Separate Account Charges 2.60% .............................. - 1.084 - Pioneer International Value VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 95,523 1.504 143,641 Separate Account Charges 1.70% .............................. 59,613 1.500 89,424 Separate Account Charges 1.75% .............................. - 1.499 - Separate Account Charges 1.90% .............................. - 1.495 - Separate Account Charges 1.95% .............................. 120,375 1.494 179,807 Separate Account Charges 2.05% .............................. - 1.172 - Separate Account Charges 2.10% .............................. 54,321 1.490 80,945 Separate Account Charges 2.15% .............................. 14,869 1.489 22,136 Separate Account Charges 2.20% .............................. - 1.387 - Separate Account Charges 2.25% .............................. - 1.180 - Separate Account Charges 2.30% .............................. 154,680 1.485 229,725 Separate Account Charges 2.40% .............................. - 1.170 - Separate Account Charges 2.45% .............................. - 1.178 - Separate Account Charges 2.50% .............................. 4,585 1.480 6,786 Separate Account Charges 2.65% .............................. - 1.176 - Separate Account Charges 2.60% .............................. - 1.169 - Pioneer Mid Cap Value VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 742,776 1.587 1,178,737 Separate Account Charges 1.70% .............................. 398,087 1.583 630,202 Separate Account Charges 1.75% .............................. 6,949 1.582 10,991 Separate Account Charges 1.90% .............................. 318,854 1.578 503,081 Separate Account Charges 1.95% .............................. 653,352 1.576 1,029,913 Separate Account Charges 2.05% .............................. 13,629 1.146 15,612 Separate Account Charges 2.10% .............................. 335,227 1.572 527,146 Separate Account Charges 2.15% .............................. 7,542 1.571 11,848 Separate Account Charges 2.20% .............................. 1,619 1.430 2,314 Separate Account Charges 2.25% .............................. - 1.170 - Separate Account Charges 2.30% .............................. 104,871 1.567 164,358 Separate Account Charges 2.40% .............................. 5,968 1.143 6,824 Separate Account Charges 2.45% .............................. - 1.168 - Separate Account Charges 2.50% .............................. 19,694 1.562 30,763 Separate Account Charges 2.65% .............................. - 1.166 - Separate Account Charges 2.60% .............................. - 1.142 -
-124- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 377,337 $ 1.095 $ 413,351 Separate Account Charges 1.70% .............................. 48,545 1.094 53,114 Separate Account Charges 1.75% .............................. - 1.094 - Separate Account Charges 1.90% .............................. 147,395 1.092 161,015 Separate Account Charges 1.95% .............................. 273,641 1.092 298,805 Separate Account Charges 2.05% .............................. 5,316 1.072 5,699 Separate Account Charges 2.10% .............................. 342,123 1.091 373,141 Separate Account Charges 2.15% .............................. 1,092 1.090 1,191 Separate Account Charges 2.20% .............................. 2,106 1.090 2,295 Separate Account Charges 2.25% .............................. - 1.089 - Separate Account Charges 2.30% .............................. 226,868 1.089 247,043 Separate Account Charges 2.40% .............................. 6,264 1.070 6,702 Separate Account Charges 2.45% .............................. - 1.088 - Separate Account Charges 2.50% .............................. 24,687 1.087 26,840 Separate Account Charges 2.65% .............................. - 1.086 - Separate Account Charges 2.60% .............................. - 1.069 - Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares Separate Account Charges 1.55% .............................. 43,189 1.002 43,257 Separate Account Charges 1.70% .............................. 22,256 1.000 22,265 Separate Account Charges 1.75% .............................. 13,548 1.000 13,548 Separate Account Charges 1.90% .............................. 20,554 0.999 20,530 Separate Account Charges 1.95% .............................. 174,351 0.998 174,073 Separate Account Charges 2.05% .............................. - 0.994 - Separate Account Charges 2.10% .............................. 44,401 0.997 44,277 Separate Account Charges 2.15% .............................. - 0.997 - Separate Account Charges 2.20% .............................. 1,156 0.996 1,152 Separate Account Charges 2.25% .............................. - 0.996 - Separate Account Charges 2.30% .............................. 151,439 0.996 150,778 Separate Account Charges 2.40% .............................. - 0.992 - Separate Account Charges 2.45% .............................. - 0.994 - Separate Account Charges 2.50% .............................. 4,896 0.994 4,867 Separate Account Charges 2.65% .............................. - 0.993 - Separate Account Charges 2.60% .............................. - 0.991 - Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 265,932 1.074 285,529 Separate Account Charges 1.70% .............................. 65,806 1.072 70,571 Separate Account Charges 1.75% .............................. - 1.072 - Separate Account Charges 1.90% .............................. 52,237 1.071 55,931 Separate Account Charges 1.95% .............................. 203,468 1.070 217,769 - 1.070 -
-125- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (continued) Separate Account Charges 2.05% .............................. - $ 1.012 $ - Separate Account Charges 2.10% .............................. 97,313 1.069 104,029 Separate Account Charges 2.15% .............................. - 1.069 - Separate Account Charges 2.20% .............................. - 1.068 - Separate Account Charges 2.25% .............................. - 1.068 - Separate Account Charges 2.30% .............................. 103,436 1.067 110,398 Separate Account Charges 2.40% .............................. 5,339 1.010 5,393 Separate Account Charges 2.45% .............................. - 1.066 - Separate Account Charges 2.50% .............................. - 1.066 - Separate Account Charges 2.65% .............................. - 1.064 - Separate Account Charges 2.60% .............................. - 1.009 - Pioneer Real Estate Shares VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 594,769 1.681 999,851 Separate Account Charges 1.70% .............................. 400,846 1.677 672,214 Separate Account Charges 1.75% .............................. 28,482 1.675 47,721 Separate Account Charges 1.90% .............................. 69,039 1.671 115,393 Separate Account Charges 1.95% .............................. 426,758 1.670 712,646 Separate Account Charges 2.05% .............................. 7,106 1.310 9,312 Separate Account Charges 2.10% .............................. 229,417 1.666 382,176 Separate Account Charges 2.15% .............................. - 1.664 - Separate Account Charges 2.20% .............................. - 1.603 - Separate Account Charges 2.25% .............................. - 1.240 - Separate Account Charges 2.30% .............................. 118,824 1.660 197,284 Separate Account Charges 2.40% .............................. - 1.308 - Separate Account Charges 2.45% .............................. - 1.238 - Separate Account Charges 2.50% .............................. - 1.655 - Separate Account Charges 2.65% .............................. - 1.236 - Separate Account Charges 2.60% .............................. - 1.306 - Pioneer Small Cap Value VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 628,747 1.599 1,005,439 Separate Account Charges 1.70% .............................. 144,559 1.595 230,606 Separate Account Charges 1.75% .............................. 35,275 1.594 56,222 Separate Account Charges 1.90% .............................. 36,326 1.590 57,756 Separate Account Charges 1.95% .............................. 343,651 1.588 545,890 Separate Account Charges 2.05% .............................. 8,047 1.156 9,301 Separate Account Charges 2.10% .............................. 182,954 1.585 289,917 Separate Account Charges 2.15% .............................. 5,915 1.583 9,365 Separate Account Charges 2.20% .............................. - 1.416 - Separate Account Charges 2.25% .............................. - 1.137 - Separate Account Charges 2.30% .............................. 67,040 1.579 105,882 Separate Account Charges 2.40% .............................. - 1.154 -
-126- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Small Cap Value VCT Portfolio - Class II Shares (continued) Separate Account Charges 2.45% .............................. - $ 1.135 $ - Separate Account Charges 2.50% .............................. 2,473 1.574 3,893 Separate Account Charges 2.65% .............................. - 1.133 - Separate Account Charges 2.60% .............................. - 1.152 - Pioneer Small Company VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 37,764 1.433 54,104 Separate Account Charges 1.70% .............................. 24,898 1.429 35,584 Separate Account Charges 1.75% .............................. 27,133 1.428 38,743 Separate Account Charges 1.90% .............................. - 1.424 - Separate Account Charges 1.95% .............................. 51,724 1.423 73,611 Separate Account Charges 2.05% .............................. - 1.110 - Separate Account Charges 2.10% .............................. 60,591 1.420 86,021 Separate Account Charges 2.15% .............................. - 1.418 - Separate Account Charges 2.20% .............................. - 1.299 - Separate Account Charges 2.25% .............................. - 1.089 - Separate Account Charges 2.30% .............................. 27,370 1.415 38,727 Separate Account Charges 2.40% .............................. - 1.108 - Separate Account Charges 2.45% .............................. - 1.087 - Separate Account Charges 2.50% .............................. - 1.410 - Separate Account Charges 2.65% .............................. - 1.086 - Separate Account Charges 2.60% .............................. - 1.106 - Pioneer Strategic Income VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 2,610,032 1.179 3,077,794 Separate Account Charges 1.70% .............................. 574,253 1.176 675,522 Separate Account Charges 1.75% .............................. 26,542 1.175 31,195 Separate Account Charges 1.90% .............................. 195,674 1.172 229,416 Separate Account Charges 1.95% .............................. 1,544,395 1.171 1,809,055 Separate Account Charges 2.05% .............................. 20,455 1.100 22,505 Separate Account Charges 2.10% .............................. 1,077,272 1.169 1,258,835 Separate Account Charges 2.15% .............................. 15,302 1.167 17,864 Separate Account Charges 2.20% .............................. 3,074 1.123 3,453 Separate Account Charges 2.25% .............................. - 1.058 - Separate Account Charges 2.30% .............................. 890,221 1.165 1,036,782 Separate Account Charges 2.40% .............................. 3,638 1.098 3,995 Separate Account Charges 2.45% .............................. - 1.056 - Separate Account Charges 2.50% .............................. 45,232 1.161 52,504 Separate Account Charges 2.65% .............................. - 1.055 - Separate Account Charges 2.60% .............................. 6,826 1.097 7,487
-127- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Pioneer Variable Contracts Trust (continued) Pioneer Value VCT Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 565,426 $ 1.307 $ 738,992 Separate Account Charges 1.70% .............................. 92,974 1.304 121,219 Separate Account Charges 1.75% .............................. - 1.303 - Separate Account Charges 1.90% .............................. 93,668 1.299 121,718 Separate Account Charges 1.95% .............................. 687,784 1.298 892,929 Separate Account Charges 2.05% .............................. 3,900 1.088 4,243 Separate Account Charges 2.10% .............................. 647,886 1.295 839,096 Separate Account Charges 2.15% .............................. - 1.294 - Separate Account Charges 2.20% .............................. - 1.219 - Separate Account Charges 2.25% .............................. - 1.088 - Separate Account Charges 2.30% .............................. 440,802 1.291 568,999 Separate Account Charges 2.40% .............................. - 1.086 - Separate Account Charges 2.45% .............................. - 1.086 - Separate Account Charges 2.50% .............................. 20,017 1.287 25,753 Separate Account Charges 2.65% .............................. - 1.084 - Separate Account Charges 2.60% .............................. 7,012 1.085 7,607 Putnam Variable Trust Putnam VT International Equity Fund - Class IB Shares Separate Account Charges 1.55% .............................. 146,420 1.480 216,689 Separate Account Charges 1.70% .............................. - 1.476 - Separate Account Charges 1.75% .............................. - 1.475 - Separate Account Charges 1.90% .............................. - 1.471 - Separate Account Charges 1.95% .............................. 141,582 1.470 208,130 Separate Account Charges 2.05% .............................. - 1.161 - Separate Account Charges 2.10% .............................. 29,664 1.466 43,501 Separate Account Charges 2.15% .............................. - 1.465 - Separate Account Charges 2.20% .............................. - 1.342 - Separate Account Charges 2.25% .............................. - 1.150 - Separate Account Charges 2.30% .............................. 9,265 1.462 13,541 Separate Account Charges 2.40% .............................. - 1.159 - Separate Account Charges 2.45% .............................. - 1.148 - Separate Account Charges 2.50% .............................. - 1.457 - Separate Account Charges 2.65% .............................. - 1.147 - Separate Account Charges 2.60% .............................. - 1.157 -
-128- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Putnam Variable Trust (continued) Putnam VT Small Cap Value Fund - Class IB Shares Separate Account Charges 1.55% .............................. 929,388 $ 1.777 $ 1,651,476 Separate Account Charges 1.70% .............................. 249,678 1.773 442,586 Separate Account Charges 1.75% .............................. 2,066 1.771 3,660 Separate Account Charges 1.90% .............................. 31,962 1.767 56,467 Separate Account Charges 1.95% .............................. 971,208 1.765 1,714,271 Separate Account Charges 2.05% .............................. 72,299 1.195 86,394 Separate Account Charges 2.10% .............................. 384,308 1.761 676,683 Separate Account Charges 2.15% .............................. 90,101 1.759 158,505 Separate Account Charges 2.20% .............................. 40,231 1.574 63,336 Separate Account Charges 2.25% .............................. 1,569 1.180 1,851 Separate Account Charges 2.30% .............................. 719,606 1.755 1,262,843 Separate Account Charges 2.40% .............................. 18,970 1.193 22,625 Separate Account Charges 2.45% .............................. - 1.178 - Separate Account Charges 2.50% .............................. 10,389 1.749 18,170 Separate Account Charges 2.65% .............................. - 1.176 - Separate Account Charges 2.60% .............................. - 1.191 - Salomon Brothers Variable Series Funds Inc. All Cap Fund - Class I Separate Account Charges 1.55% .............................. 324,478 1.398 453,515 Separate Account Charges 1.70% .............................. 97,867 1.394 136,454 Separate Account Charges 1.75% .............................. - 1.393 - Separate Account Charges 1.90% .............................. 16,740 1.390 23,263 Separate Account Charges 1.95% .............................. 896,442 1.388 1,244,573 Separate Account Charges 2.05% .............................. 56,696 1.059 60,033 Separate Account Charges 2.10% .............................. 416,678 1.385 577,083 Separate Account Charges 2.15% .............................. - 1.384 - Separate Account Charges 2.20% .............................. 86,014 1.253 107,757 Separate Account Charges 2.25% .............................. - 1.053 - Separate Account Charges 2.30% .............................. 3,351 1.380 4,626 Separate Account Charges 2.40% .............................. - 1.057 - Separate Account Charges 2.45% .............................. - 1.051 - Separate Account Charges 2.50% .............................. 26,950 1.376 37,076 Separate Account Charges 2.65% .............................. - 1.050 - Separate Account Charges 2.60% .............................. - 1.056 - Investors Fund - Class I Separate Account Charges 1.55% .............................. 198,121 1.385 274,315 Separate Account Charges 1.70% .............................. 33,775 1.381 46,651 Separate Account Charges 1.75% .............................. - 1.380 - Separate Account Charges 1.90% .............................. 15,274 1.377 21,026
-129- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Salomon Brothers Variable Series Funds Inc. (continued) Investors Fund - Class I (continued) Separate Account Charges 1.95% .............................. 699,397 $ 1.375 $ 961,905 Separate Account Charges 2.05% .............................. 37,417 1.081 40,458 Separate Account Charges 2.10% .............................. 144,040 1.372 197,620 Separate Account Charges 2.15% .............................. - 1.371 - Separate Account Charges 2.20% .............................. 15,160 1.228 18,616 Separate Account Charges 2.25% .............................. - 1.068 - Separate Account Charges 2.30% .............................. 120,062 1.367 164,172 Separate Account Charges 2.40% .............................. - 1.079 - Separate Account Charges 2.45% .............................. - 1.067 - Separate Account Charges 2.50% .............................. 13,524 1.363 18,431 Separate Account Charges 2.65% .............................. - 1.065 - Separate Account Charges 2.60% .............................. - 1.078 - Large Cap Growth Fund - Class I Separate Account Charges 1.55% .............................. 184,421 1.295 238,757 Separate Account Charges 1.70% .............................. 66,252 1.291 85,564 Separate Account Charges 1.75% .............................. - 1.290 - Separate Account Charges 1.90% .............................. 6,453 1.287 8,306 Separate Account Charges 1.95% .............................. 689,281 1.286 886,412 Separate Account Charges 2.05% .............................. 75,803 0.992 75,214 Separate Account Charges 2.10% .............................. 218,006 1.283 279,670 Separate Account Charges 2.15% .............................. 3,660 1.282 4,691 Separate Account Charges 2.20% .............................. 22,729 1.161 26,400 Separate Account Charges 2.25% .............................. - 1.004 - Separate Account Charges 2.30% .............................. 77,833 1.279 99,516 Separate Account Charges 2.40% .............................. - 0.990 - Separate Account Charges 2.45% .............................. - 1.002 - Separate Account Charges 2.50% .............................. 14,172 1.274 18,059 Separate Account Charges 2.65% .............................. - 1.000 - Separate Account Charges 2.60% .............................. - 0.989 - Small Cap Growth Fund - Class I Separate Account Charges 1.55% .............................. 222,614 1.621 360,817 Separate Account Charges 1.70% .............................. 111,799 1.617 180,764 Separate Account Charges 1.75% .............................. - 1.615 - Separate Account Charges 1.90% .............................. 16,091 1.611 25,929 Separate Account Charges 1.95% .............................. 771,298 1.610 1,241,775 Separate Account Charges 2.05% .............................. 102,886 1.168 120,164 Separate Account Charges 2.10% .............................. 234,089 1.606 375,965 Separate Account Charges 2.15% .............................. - 1.605 - Separate Account Charges 2.20% .............................. 28,437 1.436 40,835 Separate Account Charges 2.25% .............................. - 1.120 - Separate Account Charges 2.30% .............................. 88,716 1.601 142,008
-130- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Salomon Brothers Variable Series Funds Inc. (continued) Small Cap Growth Fund - Class I (continued) Separate Account Charges 2.40% .............................. 7,372 $ 1.166 $ 8,594 Separate Account Charges 2.45% .............................. - 1.118 - Separate Account Charges 2.50% .............................. 15,641 1.595 24,952 Separate Account Charges 2.65% .............................. - 1.116 - Separate Account Charges 2.60% .............................. - 1.164 - Total Return Fund - Class II Separate Account Charges 1.55% .............................. 465,551 1.191 554,327 Separate Account Charges 1.70% .............................. 85,963 1.188 102,108 Separate Account Charges 1.75% .............................. 3,777 1.187 4,482 Separate Account Charges 1.90% .............................. 46,341 1.184 54,860 Separate Account Charges 1.95% .............................. 233,521 1.183 276,200 Separate Account Charges 2.05% .............................. - 1.055 - Separate Account Charges 2.10% .............................. 237,362 1.180 280,063 Separate Account Charges 2.15% .............................. - 1.179 - Separate Account Charges 2.20% .............................. 3,088 1.117 3,449 Separate Account Charges 2.25% .............................. - 1.044 - Separate Account Charges 2.30% .............................. 39,985 1.176 47,021 Separate Account Charges 2.40% .............................. - 1.053 - Separate Account Charges 2.45% .............................. - 1.043 - Separate Account Charges 2.50% .............................. 8,916 1.172 10,450 Separate Account Charges 2.65% .............................. - 1.041 - Separate Account Charges 2.60% .............................. - 1.052 - Scudder Investments VIT Funds Scudder Real Estate Securities Portfolio - Class B Separate Account Charges 1.55% .............................. 359,796 1.501 540,234 Separate Account Charges 1.70% .............................. 199,876 1.498 299,413 Separate Account Charges 1.75% .............................. - 1.497 - Separate Account Charges 1.90% .............................. 32,674 1.493 48,793 Separate Account Charges 1.95% .............................. 495,080 1.492 738,736 Separate Account Charges 2.05% .............................. - 1.283 - Separate Account Charges 2.10% .............................. 678,304 1.489 1,009,770 Separate Account Charges 2.15% .............................. 12,828 1.487 19,082 Separate Account Charges 2.20% .............................. - 1.486 - Separate Account Charges 2.25% .............................. - 1.213 - Separate Account Charges 2.30% .............................. 277,814 1.484 412,289 Separate Account Charges 2.40% .............................. - 1.281 - Separate Account Charges 2.45% .............................. 25,705 1.211 31,127 Separate Account Charges 2.50% .............................. 3,415 1.479 5,053 Separate Account Charges 2.65% .............................. - 1.209 - Separate Account Charges 2.60% .............................. - 1.279 -
-131- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Investments VIT Funds (continued) Scudder Variable Series I 21st Century Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 3,236 $ 1.231 $ 3,983 Separate Account Charges 1.70% .............................. 26,208 1.228 32,180 Separate Account Charges 1.75% .............................. - 1.227 - Separate Account Charges 1.90% .............................. - 1.224 - Separate Account Charges 1.95% .............................. 42,676 1.223 52,197 Separate Account Charges 2.05% .............................. - 1.078 - Separate Account Charges 2.10% .............................. 196,995 1.220 240,380 Separate Account Charges 2.15% .............................. - 1.219 - Separate Account Charges 2.20% .............................. - 1.218 - Separate Account Charges 2.25% .............................. - 1.068 - Separate Account Charges 2.30% .............................. 9,424 1.216 11,463 Separate Account Charges 2.40% .............................. - 1.076 - Separate Account Charges 2.45% .............................. 11,916 1.067 12,708 Separate Account Charges 2.50% .............................. - 1.213 - Separate Account Charges 2.65% .............................. - 1.065 - Separate Account Charges 2.60% .............................. - 1.074 - Capital Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 47,547 1.184 56,273 Separate Account Charges 1.70% .............................. 42,871 1.181 50,621 Separate Account Charges 1.75% .............................. - 1.180 - Separate Account Charges 1.90% .............................. - 1.177 - Separate Account Charges 1.95% .............................. 239,052 1.176 281,166 Separate Account Charges 2.05% .............................. - 1.040 - Separate Account Charges 2.10% .............................. 444,742 1.173 521,873 Separate Account Charges 2.15% .............................. - 1.173 - Separate Account Charges 2.20% .............................. - 1.172 - Separate Account Charges 2.25% .............................. - 1.056 - Separate Account Charges 2.30% .............................. 4,931 1.170 5,768 Separate Account Charges 2.40% .............................. - 1.038 - Separate Account Charges 2.45% .............................. 12,458 1.055 13,141 Separate Account Charges 2.50% .............................. - 1.166 - Separate Account Charges 2.65% .............................. - 1.053 - Separate Account Charges 2.60% .............................. - 1.037 - Global Discovery Portfolio - Class B Separate Account Charges 1.55% .............................. 11,665 1.523 17,763 Separate Account Charges 1.70% .............................. 74,372 1.519 112,985 Separate Account Charges 1.75% .............................. - 1.518 - Separate Account Charges 1.90% .............................. 12,472 1.514 18,889 Separate Account Charges 1.95% .............................. 328,732 1.513 497,464
-132- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series I (continued) Global Discovery Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.183 $ - Separate Account Charges 2.10% .............................. 274,507 1.510 414,438 Separate Account Charges 2.15% .............................. - 1.508 - Separate Account Charges 2.20% .............................. - 1.507 - Separate Account Charges 2.25% .............................. 6,528 1.197 7,811 Separate Account Charges 2.30% .............................. 45,090 1.505 67,861 Separate Account Charges 2.40% .............................. - 1.181 - Separate Account Charges 2.45% .............................. 69,218 1.195 82,695 Separate Account Charges 2.50% .............................. 3,664 1.500 5,497 Separate Account Charges 2.65% .............................. - 1.193 - Separate Account Charges 2.60% .............................. - 1.179 - Growth and Income Portfolio - Class B Separate Account Charges 1.55% .............................. 281,014 1.222 343,278 Separate Account Charges 1.70% .............................. 87,997 1.219 107,243 Separate Account Charges 1.75% .............................. - 1.218 - Separate Account Charges 1.90% .............................. 63,218 1.215 76,804 Separate Account Charges 1.95% .............................. 404,816 1.214 491,430 Separate Account Charges 2.05% .............................. - 1.067 - Separate Account Charges 2.10% .............................. 1,127,975 1.211 1,366,118 Separate Account Charges 2.15% .............................. 15,697 1.210 18,997 Separate Account Charges 2.20% .............................. - 1.209 - Separate Account Charges 2.25% .............................. 141,107 1.082 152,703 Separate Account Charges 2.30% .............................. 365,748 1.207 441,587 Separate Account Charges 2.40% .............................. - 1.065 - Separate Account Charges 2.45% .............................. 45,528 1.080 49,191 Separate Account Charges 2.50% .............................. 4,385 1.204 5,277 Separate Account Charges 2.65% .............................. - 1.079 - Separate Account Charges 2.60% .............................. - 1.064 - Health Sciences Portfolio - Class B Separate Account Charges 1.55% .............................. 48,256 1.210 58,377 Separate Account Charges 1.70% .............................. 187,842 1.207 226,707 Separate Account Charges 1.75% .............................. - 1.206 - Separate Account Charges 1.90% .............................. 14,263 1.203 17,161 Separate Account Charges 1.95% .............................. 260,499 1.202 313,170 Separate Account Charges 2.05% .............................. - 1.047 - Separate Account Charges 2.10% .............................. 593,343 1.199 711,655 Separate Account Charges 2.15% .............................. - 1.198 - Separate Account Charges 2.20% .............................. - 1.198 - Separate Account Charges 2.25% .............................. 16,844 1.040 17,517 Separate Account Charges 2.30% .............................. 57,274 1.196 68,480
-133- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series I (continued) Health Sciences Portfolio - Class B (continued) Separate Account Charges 2.40% .............................. - $ 1.045 $ - Separate Account Charges 2.45% .............................. 57,585 1.038 59,788 Separate Account Charges 2.50% .............................. 500 1.192 596 Separate Account Charges 2.65% .............................. 2,973 1.037 3,082 Separate Account Charges 2.60% .............................. - 1.044 - International Portfolio - Class B Separate Account Charges 1.55% .............................. 82,608 1.359 112,262 Separate Account Charges 1.70% .............................. 132,055 1.356 179,039 Separate Account Charges 1.75% .............................. - 1.355 - Separate Account Charges 1.90% .............................. 61,387 1.352 82,969 Separate Account Charges 1.95% .............................. 257,824 1.350 348,190 Separate Account Charges 2.05% .............................. - 1.156 - Separate Account Charges 2.10% .............................. 595,000 1.347 801,684 Separate Account Charges 2.15% .............................. - 1.346 - Separate Account Charges 2.20% .............................. - 1.345 - Separate Account Charges 2.25% .............................. 18,430 1.139 20,993 Separate Account Charges 2.30% .............................. 158,815 1.343 213,312 Separate Account Charges 2.40% .............................. - 1.154 - Separate Account Charges 2.45% .............................. 21,487 1.137 24,437 Separate Account Charges 2.50% .............................. 3,933 1.339 5,266 Separate Account Charges 2.65% .............................. - 1.135 - Separate Account Charges 2.60% .............................. - 1.152 - Scudder Variable Series II Scudder Aggressive Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 57,968 1.191 69,032 Separate Account Charges 1.70% .............................. 6,977 1.188 8,289 Separate Account Charges 1.75% .............................. - 1.187 - Separate Account Charges 1.90% .............................. 551 1.184 653 Separate Account Charges 1.95% .............................. 65,105 1.183 77,048 Separate Account Charges 2.05% .............................. - 1.066 - Separate Account Charges 2.10% .............................. 267,008 1.181 315,248 Separate Account Charges 2.15% .............................. - 1.180 - Separate Account Charges 2.20% .............................. - 1.179 - Separate Account Charges 2.25% .............................. - 1.045 - Separate Account Charges 2.30% .............................. - 1.177 - Separate Account Charges 2.40% .............................. - 1.064 - Separate Account Charges 2.45% .............................. 15,118 1.044 15,781 Separate Account Charges 2.50% .............................. - 1.173 - Separate Account Charges 2.65% .............................. - 1.042 - Separate Account Charges 2.60% .............................. - 1.063 -
-134- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Blue Chip Portfolio - Class B Separate Account Charges 1.55% .............................. 197,758 $ 1.318 $ 260,606 Separate Account Charges 1.70% .............................. 138,589 1.315 182,206 Separate Account Charges 1.75% .............................. - 1.314 - Separate Account Charges 1.90% .............................. 34,953 1.311 45,810 Separate Account Charges 1.95% .............................. 563,433 1.310 737,876 Separate Account Charges 2.05% .............................. - 1.095 - Separate Account Charges 2.10% .............................. 1,170,698 1.307 1,529,576 Separate Account Charges 2.15% .............................. - 1.306 - Separate Account Charges 2.20% .............................. - 1.304 - Separate Account Charges 2.25% .............................. 46,634 1.112 51,878 Separate Account Charges 2.30% .............................. 76,393 1.302 99,500 Separate Account Charges 2.40% .............................. - 1.093 - Separate Account Charges 2.45% .............................. 76,385 1.111 84,840 Separate Account Charges 2.50% .............................. 8,191 1.298 10,636 Separate Account Charges 2.65% .............................. 2,849 1.109 3,160 Separate Account Charges 2.60% .............................. - 1.092 - Scudder Conservative Income Strategy Portfolio - Class B Separate Account Charges 1.55% .............................. 88,460 1.043 92,258 Separate Account Charges 1.70% .............................. 108,334 1.042 112,922 Separate Account Charges 1.75% .............................. - 1.042 - Separate Account Charges 1.90% .............................. - 1.042 - Separate Account Charges 1.95% .............................. 382,562 1.041 398,392 Separate Account Charges 2.05% .............................. - 1.041 - Separate Account Charges 2.10% .............................. 285,740 1.041 297,395 Separate Account Charges 2.15% .............................. - 1.041 - Separate Account Charges 2.20% .............................. - 1.040 - Separate Account Charges 2.25% .............................. - 1.040 - Separate Account Charges 2.30% .............................. - 1.040 - Separate Account Charges 2.40% .............................. - 1.040 - Separate Account Charges 2.45% .............................. 13,051 1.039 13,566 Separate Account Charges 2.50% .............................. - 1.039 - Separate Account Charges 2.65% .............................. - 1.039 - Separate Account Charges 2.60% .............................. - 1.039 - Scudder Fixed Income Portfolio - Class B Separate Account Charges 1.55% .............................. 667,179 1.015 677,388 Separate Account Charges 1.70% .............................. 521,877 1.013 528,623 Separate Account Charges 1.75% .............................. - 1.012 - Separate Account Charges 1.90% .............................. 353,817 1.010 357,272 Separate Account Charges 1.95% .............................. 1,057,470 1.009 1,066,949 - 1.008 -
-135- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Fixed Income Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.043 $ - Separate Account Charges 2.10% .............................. 2,100,789 1.007 2,114,688 Separate Account Charges 2.15% .............................. - 1.006 - Separate Account Charges 2.20% .............................. - 1.005 - Separate Account Charges 2.25% .............................. 71,133 0.996 70,871 Separate Account Charges 2.30% .............................. 277,697 1.003 278,658 Separate Account Charges 2.40% .............................. - 1.041 - Separate Account Charges 2.45% .............................. 63,366 0.995 63,033 Separate Account Charges 2.50% .............................. - 1.000 - Separate Account Charges 2.65% .............................. 1,829 0.993 1,816 Separate Account Charges 2.60% .............................. - 1.040 - Scudder Global Blue Chip Portfolio - Class B Separate Account Charges 1.55% .............................. 58,679 1.332 78,133 Separate Account Charges 1.70% .............................. 71,208 1.328 94,595 Separate Account Charges 1.75% .............................. 61,511 1.327 81,649 Separate Account Charges 1.90% .............................. 2,957 1.324 3,916 Separate Account Charges 1.95% .............................. 319,330 1.323 422,557 Separate Account Charges 2.05% .............................. - 1.160 - Separate Account Charges 2.10% .............................. 456,849 1.320 603,111 Separate Account Charges 2.15% .............................. - 1.319 - Separate Account Charges 2.20% .............................. - 1.318 - Separate Account Charges 2.25% .............................. 25,819 1.125 29,053 Separate Account Charges 2.30% .............................. 85,426 1.316 112,425 Separate Account Charges 2.40% .............................. - 1.158 - Separate Account Charges 2.45% .............................. 93,885 1.123 105,476 Separate Account Charges 2.50% .............................. 475 1.312 624 Separate Account Charges 2.65% .............................. - 1.122 - Separate Account Charges 2.60% .............................. - 1.157 - Scudder Growth & Income Strategy Portfolio - Class B Separate Account Charges 1.55% .............................. 90,848 1.078 97,910 Separate Account Charges 1.70% .............................. 567,783 1.077 611,580 Separate Account Charges 1.75% .............................. - 1.077 - Separate Account Charges 1.90% .............................. - 1.076 - Separate Account Charges 1.95% .............................. 1,083,858 1.076 1,166,371 Separate Account Charges 2.05% .............................. - 1.076 - Separate Account Charges 2.10% .............................. 1,915,919 1.076 2,060,625 Separate Account Charges 2.15% .............................. - 1.075 - Separate Account Charges 2.20% .............................. - 1.075 - Separate Account Charges 2.25% .............................. 309,893 1.075 333,113 Separate Account Charges 2.30% .............................. 119,674 1.075 128,615 Separate Account Charges 2.40% .............................. - 1.074 -
-136- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Growth & Income Strategy Portfolio - Class B (continued) Separate Account Charges 2.45% .............................. - $ 1.074 $ - Separate Account Charges 2.50% .............................. - 1.074 - Separate Account Charges 2.65% .............................. - 1.073 - Separate Account Charges 2.60% .............................. - 1.074 - Scudder Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 33,924 1.146 38,870 Separate Account Charges 1.70% .............................. 15,820 1.143 18,085 Separate Account Charges 1.75% .............................. - 1.142 - Separate Account Charges 1.90% .............................. 54,686 1.140 62,318 Separate Account Charges 1.95% .............................. 417,706 1.139 475,636 Separate Account Charges 2.05% .............................. - 1.027 - Separate Account Charges 2.10% .............................. 407,361 1.136 462,771 Separate Account Charges 2.15% .............................. - 1.135 - Separate Account Charges 2.20% .............................. - 1.134 - Separate Account Charges 2.25% .............................. 9,625 1.043 10,042 Separate Account Charges 2.30% .............................. 186,872 1.132 211,628 Separate Account Charges 2.40% .............................. - 1.025 - Separate Account Charges 2.45% .............................. 10,816 1.042 11,267 Separate Account Charges 2.50% .............................. - 1.129 - Separate Account Charges 2.65% .............................. 1,926 1.040 2,003 Separate Account Charges 2.60% .............................. - 1.024 - Scudder Growth Strategy Portfolio Class B Separate Account Charges 1.55% .............................. 1,056,279 1.097 1,158,353 Separate Account Charges 1.70% .............................. 962,429 1.096 1,054,839 Separate Account Charges 1.75% .............................. - 1.096 - Separate Account Charges 1.90% .............................. 48,722 1.095 53,360 Separate Account Charges 1.95% .............................. 1,129,270 1.095 1,236,545 Separate Account Charges 2.05% .............................. - 1.095 - Separate Account Charges 2.10% .............................. 919,471 1.094 1,006,256 Separate Account Charges 2.15% .............................. 55,272 1.094 60,477 Separate Account Charges 2.20% .............................. - 1.094 - Separate Account Charges 2.25% .............................. 72,711 1.094 79,529 Separate Account Charges 2.30% .............................. 184,960 1.094 202,264 Separate Account Charges 2.40% .............................. - 1.093 - Separate Account Charges 2.45% .............................. - 1.093 - Separate Account Charges 2.50% .............................. - 1.093 - Separate Account Charges 2.65% .............................. - 1.092 - Separate Account Charges 2.60% .............................. - 1.092 -
-137- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder High Income Portfolio - Class B Separate Account Charges 1.55% .............................. 247,661 $ 1.207 $ 299,033 Separate Account Charges 1.70% .............................. 200,926 1.205 242,036 Separate Account Charges 1.75% .............................. 32,512 1.204 39,134 Separate Account Charges 1.90% .............................. 103,553 1.201 124,352 Separate Account Charges 1.95% .............................. 699,155 1.200 838,922 Separate Account Charges 2.05% .............................. - 1.103 - Separate Account Charges 2.10% .............................. 1,114,907 1.197 1,334,668 Separate Account Charges 2.15% .............................. - 1.196 - Separate Account Charges 2.20% .............................. - 1.195 - Separate Account Charges 2.25% .............................. 8,208 1.085 8,909 Separate Account Charges 2.30% .............................. 196,509 1.193 234,510 Separate Account Charges 2.40% .............................. - 1.101 - Separate Account Charges 2.45% .............................. 119,584 1.084 129,596 Separate Account Charges 2.50% .............................. 17,557 1.190 20,887 Separate Account Charges 2.65% .............................. 1,787 1.082 1,933 Separate Account Charges 2.60% .............................. - 1.100 - Scudder Income & Growth Strategy Portfolio - Class B Separate Account Charges 1.55% .............................. 38,576 1.060 40,885 Separate Account Charges 1.70% .............................. 526,320 1.059 557,503 Separate Account Charges 1.75% .............................. - 1.059 - Separate Account Charges 1.90% .............................. 8,761 1.058 9,274 Separate Account Charges 1.95% .............................. 428,366 1.058 453,323 Separate Account Charges 2.05% .............................. - 1.058 - Separate Account Charges 2.10% .............................. 607,758 1.058 642,803 Separate Account Charges 2.15% .............................. - 1.057 - Separate Account Charges 2.20% .............................. - 1.057 - Separate Account Charges 2.25% .............................. - 1.057 - Separate Account Charges 2.30% .............................. 591,288 1.057 624,915 Separate Account Charges 2.40% .............................. - 1.056 - Separate Account Charges 2.45% .............................. 97,069 1.056 102,532 Separate Account Charges 2.50% .............................. - 1.056 - Separate Account Charges 2.65% .............................. - 1.055 - Separate Account Charges 2.60% .............................. - 1.056 - Scudder International Select Equity Portfolio - Class B Separate Account Charges 1.55% .............................. 77,487 1.407 108,996 Separate Account Charges 1.70% .............................. 71,401 1.403 100,202 Separate Account Charges 1.75% .............................. 32,029 1.402 44,912 Separate Account Charges 1.90% .............................. 11,116 1.399 15,550 Separate Account Charges 1.95% .............................. 467,194 1.398 653,084 - 1.397 -
-138- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder International Select Equity Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.168 $ - Separate Account Charges 2.10% .............................. 738,349 1.395 1,029,709 Separate Account Charges 2.15% .............................. - 1.393 - Separate Account Charges 2.20% .............................. - 1.392 - Separate Account Charges 2.25% .............................. 44,807 1.152 51,610 Separate Account Charges 2.30% .............................. 112,799 1.390 156,823 Separate Account Charges 2.40% .............................. - 1.166 - Separate Account Charges 2.45% .............................. 15,595 1.150 17,934 Separate Account Charges 2.50% .............................. 9,682 1.386 13,419 Separate Account Charges 2.65% .............................. - 1.148 - Separate Account Charges 2.60% .............................. - 1.164 - Scudder Mercury Large Cap Core Portfolio Class B Separate Account Charges 1.55% .............................. - 1.037 - Separate Account Charges 1.70% .............................. 4,468 1.037 4,632 Separate Account Charges 1.75% .............................. - 1.037 - Separate Account Charges 1.90% .............................. 51,132 1.037 53,000 Separate Account Charges 1.95% .............................. - 1.036 - Separate Account Charges 2.05% .............................. - 1.036 - Separate Account Charges 2.10% .............................. - 1.036 - Separate Account Charges 2.15% .............................. - 1.036 - Separate Account Charges 2.20% .............................. - 1.036 - Separate Account Charges 2.25% .............................. - 1.036 - Separate Account Charges 2.30% .............................. - 1.036 - Separate Account Charges 2.40% .............................. - 1.036 - Separate Account Charges 2.45% .............................. - 1.036 - Separate Account Charges 2.50% .............................. - 1.036 - Separate Account Charges 2.65% .............................. - 1.036 - Separate Account Charges 2.60% .............................. - 1.036 - Scudder Money Market Portfolio - Class B Separate Account Charges 1.55% .............................. 871,384 0.982 856,018 Separate Account Charges 1.70% .............................. 434,341 0.980 425,686 Separate Account Charges 1.75% .............................. - 0.979 - Separate Account Charges 1.90% .............................. 82,461 0.977 80,564 Separate Account Charges 1.95% .............................. 183,680 0.976 179,315 Separate Account Charges 2.05% .............................. - 0.993 - Separate Account Charges 2.10% .............................. 706,446 0.974 688,036 Separate Account Charges 2.15% .............................. - 0.973 - Separate Account Charges 2.20% .............................. - 0.972 - Separate Account Charges 2.25% .............................. 24,864 0.987 24,533 Separate Account Charges 2.30% .............................. 58,185 0.971 56,491 Separate Account Charges 2.40% .............................. - 0.991 -
-139- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Money Market Portfolio - Class B (continued) Separate Account Charges 2.45% .............................. - $ 0.985 $ - Separate Account Charges 2.50% .............................. - 0.968 - Separate Account Charges 2.65% .............................. - 0.983 - Separate Account Charges 2.60% .............................. - 0.990 - Scudder Small Cap Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 52,869 1.235 65,319 Separate Account Charges 1.70% .............................. 65,642 1.233 80,911 Separate Account Charges 1.75% .............................. - 1.232 - Separate Account Charges 1.90% .............................. 13,516 1.229 16,608 Separate Account Charges 1.95% .............................. 226,524 1.228 278,127 Separate Account Charges 2.05% .............................. - 1.081 - Separate Account Charges 2.10% .............................. 488,779 1.225 598,726 Separate Account Charges 2.15% .............................. - 1.224 - Separate Account Charges 2.20% .............................. - 1.223 - Separate Account Charges 2.25% .............................. - 1.067 - Separate Account Charges 2.30% .............................. 88,772 1.221 108,401 Separate Account Charges 2.40% .............................. - 1.079 - Separate Account Charges 2.45% .............................. 31,644 1.065 33,707 Separate Account Charges 2.50% .............................. 526 1.217 640 Separate Account Charges 2.65% .............................. 2,070 1.064 2,201 Separate Account Charges 2.60% .............................. - 1.077 - Scudder Strategic Income Portfolio - Class B Separate Account Charges 1.55% .............................. 159,072 1.052 167,399 Separate Account Charges 1.70% .............................. 307,547 1.050 322,894 Separate Account Charges 1.75% .............................. 3,395 1.049 3,562 Separate Account Charges 1.90% .............................. 280,457 1.047 293,533 Separate Account Charges 1.95% .............................. 455,090 1.046 475,932 Separate Account Charges 2.05% .............................. - 1.102 - Separate Account Charges 2.10% .............................. 1,000,269 1.043 1,043,628 Separate Account Charges 2.15% .............................. - 1.043 - Separate Account Charges 2.20% .............................. - 1.042 - Separate Account Charges 2.25% .............................. 32,132 1.058 34,000 Separate Account Charges 2.30% .............................. 227,178 1.040 236,289 Separate Account Charges 2.40% .............................. - 1.100 - Separate Account Charges 2.45% .............................. 17,881 1.056 18,890 Separate Account Charges 2.50% .............................. 7,030 1.037 7,289 Separate Account Charges 2.65% .............................. 1,821 1.055 1,920 Separate Account Charges 2.60% .............................. - 1.099 -
-140- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Technology Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 998 $ 1.217 $ 1,215 Separate Account Charges 1.70% .............................. 34,590 1.215 42,011 Separate Account Charges 1.75% .............................. - 1.214 - Separate Account Charges 1.90% .............................. 9,123 1.211 11,046 Separate Account Charges 1.95% .............................. 230,133 1.210 278,423 Separate Account Charges 2.05% .............................. - 1.039 - Separate Account Charges 2.10% .............................. 451,658 1.207 545,152 Separate Account Charges 2.15% .............................. - 1.206 - Separate Account Charges 2.20% .............................. - 1.205 - Separate Account Charges 2.25% .............................. 16,459 1.047 17,228 Separate Account Charges 2.30% .............................. 14,463 1.203 17,402 Separate Account Charges 2.40% .............................. - 1.037 - Separate Account Charges 2.45% .............................. 57,561 1.045 60,156 Separate Account Charges 2.50% .............................. - 1.199 - Separate Account Charges 2.65% .............................. 3,123 1.043 3,258 Separate Account Charges 2.60% .............................. - 1.036 - Scudder Templeton Foreign Value Portfolio - Class B Separate Account Charges 1.55% .............................. - 1.054 - Separate Account Charges 1.70% .............................. 19,724 1.054 20,784 Separate Account Charges 1.75% .............................. - 1.054 - Separate Account Charges 1.90% .............................. 50,309 1.053 53,000 Separate Account Charges 1.95% .............................. - 1.053 - Separate Account Charges 2.05% .............................. - 1.053 - Separate Account Charges 2.10% .............................. - 1.053 - Separate Account Charges 2.15% .............................. - 1.053 - Separate Account Charges 2.20% .............................. - 1.053 - Separate Account Charges 2.25% .............................. - 1.053 - Separate Account Charges 2.30% .............................. 28,525 1.053 30,036 Separate Account Charges 2.40% .............................. - 1.053 - Separate Account Charges 2.45% .............................. - 1.053 - Separate Account Charges 2.50% .............................. - 1.053 - Separate Account Charges 2.65% .............................. - 1.052 - Separate Account Charges 2.60% .............................. - 1.053 - Scudder Total Return Portfolio - Class B Separate Account Charges 1.55% .............................. 114,599 1.116 127,881 Separate Account Charges 1.70% .............................. 94,278 1.113 104,960 Separate Account Charges 1.75% .............................. - 1.112 - Separate Account Charges 1.90% .............................. 76,271 1.110 84,647 Separate Account Charges 1.95% .............................. 654,361 1.109 725,665
-141- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Total Return Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.043 $ - Separate Account Charges 2.10% .............................. 1,299,927 1.106 1,438,197 Separate Account Charges 2.15% .............................. - 1.106 - Separate Account Charges 2.20% .............................. - 1.105 - Separate Account Charges 2.25% .............................. 76,616 1.034 79,228 Separate Account Charges 2.30% .............................. 28,622 1.103 31,568 Separate Account Charges 2.40% .............................. - 1.041 - Separate Account Charges 2.45% .............................. 20,852 1.032 21,529 Separate Account Charges 2.50% .............................. 7,993 1.099 8,789 Separate Account Charges 2.65% .............................. - 1.031 - Separate Account Charges 2.60% .............................. - 1.039 - SVS Davis Venture Value Portfolio - Class B Separate Account Charges 1.55% .............................. 333,537 1.273 424,644 Separate Account Charges 1.70% .............................. 403,848 1.270 512,956 Separate Account Charges 1.75% .............................. 2,804 1.269 3,559 Separate Account Charges 1.90% .............................. 270,327 1.266 342,292 Separate Account Charges 1.95% .............................. 1,104,941 1.265 1,397,986 Separate Account Charges 2.05% .............................. - 1.072 - Separate Account Charges 2.10% .............................. 1,631,465 1.262 2,059,348 Separate Account Charges 2.15% .............................. - 1.261 - Separate Account Charges 2.20% .............................. - 1.260 - Separate Account Charges 2.25% .............................. 69,501 1.069 74,332 Separate Account Charges 2.30% .............................. 203,026 1.258 255,476 Separate Account Charges 2.40% .............................. - 1.070 - Separate Account Charges 2.45% .............................. 97,222 1.068 103,814 Separate Account Charges 2.50% .............................. 4,067 1.254 5,101 Separate Account Charges 2.65% .............................. - 1.066 - Separate Account Charges 2.60% .............................. - 1.069 - SVS Dreman Financial Services Portfolio - Class B Separate Account Charges 1.55% .............................. 150,927 1.243 187,577 Separate Account Charges 1.70% .............................. 21,352 1.240 26,475 Separate Account Charges 1.75% .............................. - 1.239 - Separate Account Charges 1.90% .............................. 23,319 1.236 28,823 Separate Account Charges 1.95% .............................. 338,535 1.235 418,120 Separate Account Charges 2.05% .............................. - 1.093 - Separate Account Charges 2.10% .............................. 578,377 1.232 712,675 Separate Account Charges 2.15% .............................. - 1.231 - Separate Account Charges 2.20% .............................. - 1.230 - Separate Account Charges 2.25% .............................. 16,200 1.062 17,197 Separate Account Charges 2.30% .............................. 19,512 1.228 23,967 Separate Account Charges 2.40% .............................. - 1.091 -
-142- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) SVS Dreman Financial Services Portfolio - Class B (continued) Separate Account Charges 2.45% .............................. 76,483 $ 1.060 $ 81,065 Separate Account Charges 2.50% .............................. 490 1.225 600 Separate Account Charges 2.65% .............................. 2,917 1.058 3,087 Separate Account Charges 2.60% .............................. - 1.089 - SVS Dreman High Return Equity Portfolio - Class B Separate Account Charges 1.55% .............................. 974,299 1.304 1,270,132 Separate Account Charges 1.70% .............................. 642,212 1.301 835,267 Separate Account Charges 1.75% .............................. 52,698 1.300 68,485 Separate Account Charges 1.90% .............................. 116,870 1.297 151,527 Separate Account Charges 1.95% .............................. 1,259,728 1.296 1,632,014 Separate Account Charges 2.05% .............................. - 1.124 - Separate Account Charges 2.10% .............................. 1,223,866 1.292 1,581,858 Separate Account Charges 2.15% .............................. - 1.291 - Separate Account Charges 2.20% .............................. - 1.290 - Separate Account Charges 2.25% .............................. 18,938 1.116 21,137 Separate Account Charges 2.30% .............................. 118,167 1.288 152,255 Separate Account Charges 2.40% .............................. - 1.122 - Separate Account Charges 2.45% .............................. 95,210 1.114 106,099 Separate Account Charges 2.50% .............................. 12,985 1.284 16,679 Separate Account Charges 2.65% .............................. 4,634 1.113 5,156 Separate Account Charges 2.60% .............................. - 1.121 - SVS Dreman Small Cap Value Portfolio - Class B Separate Account Charges 1.55% .............................. 292,978 1.542 451,690 Separate Account Charges 1.70% .............................. 262,804 1.538 404,218 Separate Account Charges 1.75% .............................. 2,316 1.537 3,559 Separate Account Charges 1.90% .............................. 105,153 1.533 161,234 Separate Account Charges 1.95% .............................. 523,724 1.532 802,410 Separate Account Charges 2.05% .............................. - 1.189 - Separate Account Charges 2.10% .............................. 1,007,495 1.528 1,539,988 Separate Account Charges 2.15% .............................. 12,514 1.527 19,114 Separate Account Charges 2.20% .............................. - 1.526 - Separate Account Charges 2.25% .............................. 70,133 1.169 81,976 Separate Account Charges 2.30% .............................. 78,727 1.524 119,963 Separate Account Charges 2.40% .............................. - 1.187 - Separate Account Charges 2.45% .............................. 175,402 1.167 204,694 Separate Account Charges 2.50% .............................. 4,928 1.519 7,486 Separate Account Charges 2.65% .............................. 2,750 1.165 3,205 Separate Account Charges 2.60% .............................. - 1.185 -
-143- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) SVS Eagle Focused Large Cap Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 59,526 $ 1.120 $ 66,667 Separate Account Charges 1.70% .............................. 43,718 1.117 48,848 Separate Account Charges 1.75% .............................. - 1.116 - Separate Account Charges 1.90% .............................. 39,958 1.114 44,507 Separate Account Charges 1.95% .............................. 232,599 1.113 258,879 Separate Account Charges 2.05% .............................. - 1.025 - Separate Account Charges 2.10% .............................. 618,821 1.110 687,123 Separate Account Charges 2.15% .............................. - 1.109 - Separate Account Charges 2.20% .............................. - 1.109 - Separate Account Charges 2.25% .............................. 17,011 1.012 17,223 Separate Account Charges 2.30% .............................. 65,677 1.107 72,699 Separate Account Charges 2.40% .............................. - 1.023 - Separate Account Charges 2.45% .............................. 75,942 1.011 76,766 Separate Account Charges 2.50% .............................. - 1.103 - Separate Account Charges 2.65% .............................. 3,145 1.009 3,174 Separate Account Charges 2.60% .............................. - 1.022 - SVS Focus Value & Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 16,996 1.267 21,533 Separate Account Charges 1.70% .............................. 3,174 1.264 4,012 Separate Account Charges 1.75% .............................. - 1.263 - Separate Account Charges 1.90% .............................. 10,452 1.260 13,169 Separate Account Charges 1.95% .............................. 54,417 1.259 68,512 Separate Account Charges 2.05% .............................. - 1.110 - Separate Account Charges 2.10% .............................. 326,211 1.256 409,755 Separate Account Charges 2.15% .............................. - 1.255 - Separate Account Charges 2.20% .............................. - 1.254 - Separate Account Charges 2.25% .............................. 15,073 1.106 16,672 Separate Account Charges 2.30% .............................. - 1.252 - Separate Account Charges 2.40% .............................. - 1.108 - Separate Account Charges 2.45% .............................. 31,673 1.104 34,978 Separate Account Charges 2.50% .............................. - 1.248 - Separate Account Charges 2.65% .............................. - 1.103 - Separate Account Charges 2.60% .............................. - 1.107 - Scudder Government & Agency Securities Portfolio - Class B Separate Account Charges 1.55% .............................. 136,757 1.015 138,858 Separate Account Charges 1.70% .............................. 113,691 1.013 115,169 Separate Account Charges 1.75% .............................. - 1.012 - Separate Account Charges 1.90% .............................. 64,524 1.010 65,159 Separate Account Charges 1.95% .............................. 333,060 1.009 336,067
-144- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) Scudder Government & Agency Securities Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.035 $ - Separate Account Charges 2.10% .............................. 418,300 1.007 421,099 Separate Account Charges 2.15% .............................. - 1.006 - Separate Account Charges 2.20% .............................. - 1.005 - Separate Account Charges 2.25% .............................. 1,952 1.002 1,956 Separate Account Charges 2.30% .............................. 78,254 1.004 78,532 Separate Account Charges 2.40% .............................. - 1.033 - Separate Account Charges 2.45% .............................. 75,514 1.000 75,519 Separate Account Charges 2.50% .............................. - 1.000 - Separate Account Charges 2.65% .............................. 1,815 0.998 1,812 Separate Account Charges 2.60% .............................. - 1.032 - Scudder Large Cap Value Portfolio - Class B Separate Account Charges 1.55% .............................. 220,709 1.258 277,632 Separate Account Charges 1.70% .............................. 57,237 1.255 71,830 Separate Account Charges 1.75% .............................. - 1.254 - Separate Account Charges 1.90% .............................. 125,393 1.251 156,872 Separate Account Charges 1.95% .............................. 469,896 1.250 587,407 Separate Account Charges 2.05% .............................. - 1.072 - Separate Account Charges 2.10% .............................. 774,168 1.247 965,511 Separate Account Charges 2.15% .............................. - 1.246 - Separate Account Charges 2.20% .............................. - 1.245 - Separate Account Charges 2.25% .............................. 19,155 1.082 20,717 Separate Account Charges 2.30% .............................. 34,677 1.243 43,113 Separate Account Charges 2.40% .............................. - 1.070 - Separate Account Charges 2.45% .............................. 126,409 1.080 136,497 Separate Account Charges 2.50% .............................. 22,945 1.239 28,438 Separate Account Charges 2.65% .............................. 2,855 1.078 3,078 Separate Account Charges 2.60% .............................. - 1.069 - SVS Index 500 Portfolio - Class B Separate Account Charges 1.55% .............................. 193,885 1.229 238,209 Separate Account Charges 1.70% .............................. 116,242 1.226 142,482 Separate Account Charges 1.75% .............................. - 1.225 - Separate Account Charges 1.90% .............................. 86,208 1.222 105,339 Separate Account Charges 1.95% .............................. 1,582,657 1.221 1,932,364 Separate Account Charges 2.05% .............................. - 1.071 - Separate Account Charges 2.10% .............................. 831,431 1.218 1,012,766 Separate Account Charges 2.15% .............................. - 1.217 - Separate Account Charges 2.20% .............................. - 1.216 - Separate Account Charges 2.25% .............................. - 1.087 - Separate Account Charges 2.30% .............................. 151,691 1.214 184,199 Separate Account Charges 2.40% .............................. - 1.069 -
-145- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) SVS Index 500 Portfolio - Class B (continued) Separate Account Charges 2.45% .............................. 8,048 $ 1.085 $ 8,733 Separate Account Charges 2.50% .............................. - 1.211 - Separate Account Charges 2.65% .............................. - 1.083 - Separate Account Charges 2.60% .............................. - 1.068 - SVS INVESCO Dynamic Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 17,966 1.293 23,222 Separate Account Charges 1.70% .............................. 712 1.290 919 Separate Account Charges 1.75% .............................. - 1.288 - Separate Account Charges 1.90% .............................. - 1.285 - Separate Account Charges 1.95% .............................. 4,219 1.284 5,419 Separate Account Charges 2.05% .............................. - 1.091 - Separate Account Charges 2.10% .............................. 42,563 1.281 54,545 Separate Account Charges 2.15% .............................. - 1.280 - Separate Account Charges 2.20% .............................. - 1.279 - Separate Account Charges 2.25% .............................. 729 1.104 805 Separate Account Charges 2.30% .............................. 32,757 1.277 41,847 Separate Account Charges 2.40% .............................. - 1.089 - Separate Account Charges 2.45% .............................. 2,488 1.102 2,743 Separate Account Charges 2.50% .............................. - 1.274 - Separate Account Charges 2.65% .............................. - 1.101 - Separate Account Charges 2.60% .............................. - 1.088 - SVS Janus Growth And Income Portfolio - Class B Separate Account Charges 1.55% .............................. 52,580 1.227 64,534 Separate Account Charges 1.70% .............................. 150,879 1.224 184,747 Separate Account Charges 1.75% .............................. 4,425 1.223 5,414 Separate Account Charges 1.90% .............................. 15,983 1.221 19,509 Separate Account Charges 1.95% .............................. 221,716 1.220 270,429 Separate Account Charges 2.05% .............................. - 1.098 - Separate Account Charges 2.10% .............................. 470,674 1.217 572,739 Separate Account Charges 2.15% .............................. - 1.216 - Separate Account Charges 2.20% .............................. - 1.215 - Separate Account Charges 2.25% .............................. 49,690 1.102 54,778 Separate Account Charges 2.30% .............................. 89,822 1.213 108,959 Separate Account Charges 2.40% .............................. - 1.096 - Separate Account Charges 2.45% .............................. 67,436 1.101 74,224 Separate Account Charges 2.50% .............................. 19,876 1.209 24,036 Separate Account Charges 2.65% .............................. 2,923 1.099 3,213 Separate Account Charges 2.60% .............................. - 1.095 -
-146- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) SVS Janus Growth Opportunities Portfolio - Class B Separate Account Charges 1.55% .............................. 12,619 $ 1.229 $ 15,513 Separate Account Charges 1.70% .............................. 146,016 1.226 179,079 Separate Account Charges 1.75% .............................. - 1.225 - Separate Account Charges 1.90% .............................. - 1.223 - Separate Account Charges 1.95% .............................. 8,281 1.222 10,117 Separate Account Charges 2.05% .............................. - 1.089 - Separate Account Charges 2.10% .............................. 78,017 1.219 95,087 Separate Account Charges 2.15% .............................. - 1.218 - Separate Account Charges 2.20% .............................. - 1.217 - Separate Account Charges 2.25% .............................. - 1.109 - Separate Account Charges 2.30% .............................. 8,364 1.215 10,162 Separate Account Charges 2.40% .............................. - 1.087 - Separate Account Charges 2.45% .............................. - 1.107 - Separate Account Charges 2.50% .............................. - 1.211 - Separate Account Charges 2.65% .............................. - 1.105 - Separate Account Charges 2.60% .............................. - 1.086 - SVS MFS Strategic Value Portfolio - Class B Separate Account Charges 1.55% .............................. 247,053 1.300 321,132 Separate Account Charges 1.70% .............................. 57,376 1.297 74,406 Separate Account Charges 1.75% .............................. - 1.296 - Separate Account Charges 1.90% .............................. 133,258 1.293 172,273 Separate Account Charges 1.95% .............................. 418,881 1.292 541,099 Separate Account Charges 2.05% .............................. - 1.135 - Separate Account Charges 2.10% .............................. 481,303 1.289 620,282 Separate Account Charges 2.15% .............................. - 1.288 - Separate Account Charges 2.20% .............................. - 1.287 - Separate Account Charges 2.25% .............................. 27,660 1.142 31,588 Separate Account Charges 2.30% .............................. 173,576 1.285 222,997 Separate Account Charges 2.40% .............................. - 1.133 - Separate Account Charges 2.45% .............................. 25,235 1.140 28,773 Separate Account Charges 2.50% .............................. 11,265 1.281 14,428 Separate Account Charges 2.65% .............................. - 1.138 - Separate Account Charges 2.60% .............................. - 1.131 - SVS Oak Strategic Equity Portfolio - Class B Separate Account Charges 1.55% .............................. 81,031 1.188 96,284 Separate Account Charges 1.70% .............................. 94,902 1.185 112,501 Separate Account Charges 1.75% .............................. - 1.185 - Separate Account Charges 1.90% .............................. 18,240 1.182 21,555 Separate Account Charges 1.95% .............................. 128,229 1.181 151,417
-147- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Scudder Variable Series II (continued) SVS Oak Strategic Equity Portfolio - Class B (continued) Separate Account Charges 2.05% .............................. - $ 1.037 $ - Separate Account Charges 2.10% .............................. 288,143 1.178 339,453 Separate Account Charges 2.15% .............................. - 1.177 - Separate Account Charges 2.20% .............................. - 1.176 - Separate Account Charges 2.25% .............................. 13,198 1.016 13,411 Separate Account Charges 2.30% .............................. 93,679 1.174 110,016 Separate Account Charges 2.40% .............................. - 1.035 - Separate Account Charges 2.45% .............................. 21,726 1.015 22,042 Separate Account Charges 2.50% .............................. 75,702 1.171 88,628 Separate Account Charges 2.65% .............................. - 1.013 - Separate Account Charges 2.60% .............................. - 1.034 - SVS Turner Mid Cap Growth Portfolio - Class B Separate Account Charges 1.55% .............................. 78,405 1.324 103,814 Separate Account Charges 1.70% .............................. 15,793 1.321 20,863 Separate Account Charges 1.75% .............................. - 1.320 - Separate Account Charges 1.90% .............................. 56,611 1.317 74,549 Separate Account Charges 1.95% .............................. 181,078 1.316 238,266 Separate Account Charges 2.05% .............................. - 1.108 - Separate Account Charges 2.10% .............................. 604,439 1.313 793,477 Separate Account Charges 2.15% .............................. - 1.312 - Separate Account Charges 2.20% .............................. - 1.311 - Separate Account Charges 2.25% .............................. - 1.099 - Separate Account Charges 2.30% .............................. 87,324 1.309 114,279 Separate Account Charges 2.40% .............................. - 1.106 - Separate Account Charges 2.45% .............................. 14,670 1.097 16,099 Separate Account Charges 2.50% .............................. 68,970 1.305 89,978 Separate Account Charges 2.65% .............................. - 1.096 - Separate Account Charges 2.60% .............................. - 1.104 - The Alger American Fund Alger American Balanced Portfolio - Class S Shares Separate Account Charges 1.55% .............................. 477,828 1.093 522,351 Separate Account Charges 1.70% .............................. 187,147 1.091 204,105 Separate Account Charges 1.75% .............................. 6,583 1.090 7,174 Separate Account Charges 1.90% .............................. 101,790 1.087 110,669 Separate Account Charges 1.95% .............................. 760,579 1.086 826,272 Separate Account Charges 2.05% .............................. - 1.042 - Separate Account Charges 2.10% .............................. 1,078,539 1.084 1,168,952 Separate Account Charges 2.15% .............................. 26,400 1.083 28,591 Separate Account Charges 2.20% .............................. - 1.082 - Separate Account Charges 2.25% .............................. 19,844 1.017 20,189 Separate Account Charges 2.30% .............................. 53,907 1.080 58,244
-148- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Alger American Fund (continued) Alger American Balanced Portfolio - Class S Shares (continued) Separate Account Charges 2.40% .............................. - $ 1.040 $ - Separate Account Charges 2.45% .............................. 35,321 1.016 35,877 Separate Account Charges 2.50% .............................. 20,297 1.077 21,862 Separate Account Charges 2.65% .............................. 3,981 1.014 4,037 Separate Account Charges 2.60% .............................. - 1.039 - Alger American Leveraged AllCap Portfolio - Class S Shares Separate Account Charges 1.55% .............................. 88,121 1.194 105,192 Separate Account Charges 1.70% .............................. 94,236 1.191 112,231 Separate Account Charges 1.75% .............................. - 1.190 - Separate Account Charges 1.90% .............................. 41,263 1.187 48,988 Separate Account Charges 1.95% .............................. 91,408 1.186 108,438 Separate Account Charges 2.05% .............................. - 1.053 - Separate Account Charges 2.10% .............................. 147,049 1.184 174,036 Separate Account Charges 2.15% .............................. - 1.183 - Separate Account Charges 2.20% .............................. - 1.182 - Separate Account Charges 2.25% .............................. - 1.069 - Separate Account Charges 2.30% .............................. 13,671 1.180 16,129 Separate Account Charges 2.40% .............................. - 1.051 - Separate Account Charges 2.45% .............................. 29,176 1.067 31,142 Separate Account Charges 2.50% .............................. - 1.176 - Separate Account Charges 2.65% .............................. - 1.066 - Separate Account Charges 2.60% .............................. - 1.050 - The Travelers Series Trust Convertible Securities Portfolio Separate Account Charges 1.55% .............................. 379,542 1.194 453,145 Separate Account Charges 1.70% .............................. 108,887 1.191 129,687 Separate Account Charges 1.75% .............................. - 1.190 - Separate Account Charges 1.90% .............................. 7,799 1.187 9,258 Separate Account Charges 1.95% .............................. 627,967 1.186 744,739 Separate Account Charges 2.05% .............................. - 1.044 - Separate Account Charges 2.10% .............................. 507,689 1.183 600,625 Separate Account Charges 2.15% .............................. 17,979 1.182 21,251 Separate Account Charges 2.20% .............................. 243 1.125 274 Separate Account Charges 2.25% .............................. - 1.031 - Separate Account Charges 2.30% .............................. 95,891 1.179 113,066 Separate Account Charges 2.40% .............................. - 1.042 - Separate Account Charges 2.45% .............................. - 1.029 - Separate Account Charges 2.50% .............................. 100,202 1.175 117,753 Separate Account Charges 2.65% .............................. - 1.028 - Separate Account Charges 2.60% .............................. - 1.041 -
-149- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) Disciplined Mid Cap Stock Portfolio Separate Account Charges 1.55% .............................. 660,065 $ 1.490 $ 983,631 Separate Account Charges 1.70% .............................. 84,403 1.487 125,473 Separate Account Charges 1.75% .............................. - 1.485 - Separate Account Charges 1.90% .............................. 31,303 1.482 46,379 Separate Account Charges 1.95% .............................. 774,866 1.480 1,147,008 Separate Account Charges 2.05% .............................. 20,369 1.121 22,829 Separate Account Charges 2.10% .............................. 171,731 1.477 253,588 Separate Account Charges 2.15% .............................. - 1.475 - Separate Account Charges 2.20% .............................. 18,697 1.355 25,341 Separate Account Charges 2.25% .............................. - 1.116 - Separate Account Charges 2.30% .............................. 49,334 1.472 72,607 Separate Account Charges 2.40% .............................. - 1.119 - Separate Account Charges 2.45% .............................. - 1.114 - Separate Account Charges 2.50% .............................. 18,344 1.467 26,907 Separate Account Charges 2.65% .............................. - 1.112 - Separate Account Charges 2.60% .............................. - 1.117 - Equity Income Portfolio Separate Account Charges 1.55% .............................. 424,331 1.336 566,957 Separate Account Charges 1.70% .............................. 313,026 1.333 417,218 Separate Account Charges 1.75% .............................. - 1.332 - Separate Account Charges 1.90% .............................. 56,633 1.328 75,232 Separate Account Charges 1.95% .............................. 1,629,066 1.327 2,162,107 Separate Account Charges 2.05% .............................. 27,594 1.104 30,460 Separate Account Charges 2.10% .............................. 484,668 1.324 641,684 Separate Account Charges 2.15% .............................. - 1.323 - Separate Account Charges 2.20% .............................. 50,698 1.228 62,268 Separate Account Charges 2.25% .............................. - 1.097 - Separate Account Charges 2.30% .............................. 35,278 1.320 46,551 Separate Account Charges 2.40% .............................. 2,095 1.102 2,308 Separate Account Charges 2.45% .............................. - 1.095 - Separate Account Charges 2.50% .............................. 404,837 1.315 532,411 Separate Account Charges 2.65% .............................. - 1.093 - Separate Account Charges 2.60% .............................. - 1.101 - Federated High Yield Portfolio Separate Account Charges 1.55% .............................. 459,955 1.205 554,293 Separate Account Charges 1.70% .............................. 66,227 1.202 79,617 Separate Account Charges 1.75% .............................. - 1.201 - Separate Account Charges 1.90% .............................. 49,034 1.198 58,750 Separate Account Charges 1.95% .............................. 1,035,075 1.197 1,239,034
-150- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) Federated High Yield Portfolio (continued) Separate Account Charges 2.05% .............................. 33,286 $ 1.080 $ 35,948 Separate Account Charges 2.10% .............................. 498,004 1.194 594,692 Separate Account Charges 2.15% .............................. 57,670 1.193 68,802 Separate Account Charges 2.20% .............................. 22,125 1.155 25,547 Separate Account Charges 2.25% .............................. - 1.065 - Separate Account Charges 2.30% .............................. 147,687 1.190 175,769 Separate Account Charges 2.40% .............................. 18,452 1.078 19,890 Separate Account Charges 2.45% .............................. - 1.064 - Separate Account Charges 2.50% .............................. 52,673 1.186 62,478 Separate Account Charges 2.65% .............................. - 1.062 - Separate Account Charges 2.60% .............................. - 1.077 - Federated Stock Portfolio Separate Account Charges 1.55% .............................. 72,280 1.362 98,451 Separate Account Charges 1.70% .............................. - 1.359 - Separate Account Charges 1.75% .............................. - 1.358 - Separate Account Charges 1.90% .............................. 14,652 1.354 19,841 Separate Account Charges 1.95% .............................. 154,663 1.353 209,256 Separate Account Charges 2.05% .............................. - 1.081 - Separate Account Charges 2.10% .............................. 68,815 1.350 92,879 Separate Account Charges 2.15% .............................. - 1.348 - Separate Account Charges 2.20% .............................. 29,646 1.227 36,377 Separate Account Charges 2.25% .............................. - 1.085 - Separate Account Charges 2.30% .............................. - 1.345 - Separate Account Charges 2.40% .............................. 4,285 1.079 4,624 Separate Account Charges 2.45% .............................. - 1.083 - Separate Account Charges 2.50% .............................. 5,987 1.341 8,027 Separate Account Charges 2.65% .............................. - 1.081 - Separate Account Charges 2.60% .............................. - 1.078 - Large Cap Portfolio Separate Account Charges 1.55% .............................. 56,997 1.247 71,063 Separate Account Charges 1.70% .............................. 61,414 1.244 76,384 Separate Account Charges 1.75% .............................. 5,822 1.243 7,234 Separate Account Charges 1.90% .............................. 14,801 1.240 18,347 Separate Account Charges 1.95% .............................. 518,477 1.238 642,118 Separate Account Charges 2.05% .............................. 118,396 1.050 124,332 Separate Account Charges 2.10% .............................. 217,556 1.235 268,776 Separate Account Charges 2.15% .............................. - 1.234 - Separate Account Charges 2.20% .............................. 33,560 1.174 39,388 Separate Account Charges 2.25% .............................. - 1.058 - Separate Account Charges 2.30% .............................. 12,695 1.231 15,631 Separate Account Charges 2.40% .............................. 10,882 1.048 11,406
-151- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) Large Cap Portfolio (continued) Separate Account Charges 2.45% .............................. - $ 1.056 $ - Separate Account Charges 2.50% .............................. - 1.227 - Separate Account Charges 2.65% .............................. - 1.054 - Separate Account Charges 2.60% .............................. - 1.047 - Lazard International Stock Portfolio Separate Account Charges 1.55% .............................. 249,460 1.443 359,969 Separate Account Charges 1.70% .............................. 125,088 1.439 180,063 Separate Account Charges 1.75% .............................. - 1.438 - Separate Account Charges 1.90% .............................. 29,191 1.435 41,879 Separate Account Charges 1.95% .............................. 353,043 1.433 506,035 Separate Account Charges 2.05% .............................. 35,228 1.147 40,403 Separate Account Charges 2.10% .............................. 206,669 1.430 295,511 Separate Account Charges 2.15% .............................. - 1.429 - Separate Account Charges 2.20% .............................. 16,678 1.321 22,033 Separate Account Charges 2.25% .............................. - 1.139 - Separate Account Charges 2.30% .............................. 72,407 1.425 103,186 Separate Account Charges 2.40% .............................. 5,671 1.145 6,491 Separate Account Charges 2.45% .............................. - 1.137 - Separate Account Charges 2.50% .............................. 15,146 1.420 21,512 Separate Account Charges 2.65% .............................. - 1.136 - Separate Account Charges 2.60% .............................. - 1.143 - Merrill Lynch Large Cap Core Portfolio Separate Account Charges 1.55% .............................. 168,721 1.325 223,609 Separate Account Charges 1.70% .............................. 28,878 1.322 38,180 Separate Account Charges 1.75% .............................. - 1.321 - Separate Account Charges 1.90% .............................. 50,116 1.318 66,037 Separate Account Charges 1.95% .............................. 188,088 1.316 247,612 Separate Account Charges 2.05% .............................. - 1.126 - Separate Account Charges 2.10% .............................. 427,107 1.313 560,898 Separate Account Charges 2.15% .............................. 3,711 1.312 4,869 Separate Account Charges 2.20% .............................. 8,859 1.230 10,894 Separate Account Charges 2.25% .............................. - 1.118 - Separate Account Charges 2.30% .............................. 61,424 1.309 80,396 Separate Account Charges 2.40% .............................. - 1.124 - Separate Account Charges 2.45% .............................. - 1.117 - Separate Account Charges 2.50% .............................. 86,722 1.304 113,127 Separate Account Charges 2.65% .............................. - 1.115 - Separate Account Charges 2.60% .............................. - 1.123 -
-152- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) MFS Emerging Growth Portfolio Separate Account Charges 1.55% .............................. 275,924 $ 1.328 $ 366,562 Separate Account Charges 1.70% .............................. 29,496 1.325 39,090 Separate Account Charges 1.75% .............................. - 1.324 - Separate Account Charges 1.90% .............................. 6,476 1.321 8,553 Separate Account Charges 1.95% .............................. 424,081 1.320 559,624 Separate Account Charges 2.05% .............................. 38,923 1.083 42,171 Separate Account Charges 2.10% .............................. 100,698 1.316 132,560 Separate Account Charges 2.15% .............................. - 1.315 - Separate Account Charges 2.20% .............................. 4,142 1.221 5,056 Separate Account Charges 2.25% .............................. - 1.100 - Separate Account Charges 2.30% .............................. 12,699 1.312 16,662 Separate Account Charges 2.40% .............................. 14,708 1.081 15,905 Separate Account Charges 2.45% .............................. - 1.098 - Separate Account Charges 2.50% .............................. 2,138 1.308 2,796 Separate Account Charges 2.65% .............................. - 1.097 - Separate Account Charges 2.60% .............................. - 1.080 - MFS Mid Cap Growth Portfolio Separate Account Charges 1.55% .............................. 443,088 1.440 638,207 Separate Account Charges 1.70% .............................. 50,878 1.437 73,105 Separate Account Charges 1.75% .............................. - 1.436 - Separate Account Charges 1.90% .............................. 5,006 1.432 7,169 Separate Account Charges 1.95% .............................. 319,453 1.431 457,057 Separate Account Charges 2.05% .............................. 125,343 1.075 134,764 Separate Account Charges 2.10% .............................. 191,307 1.427 273,046 Separate Account Charges 2.15% .............................. - 1.426 - Separate Account Charges 2.20% .............................. 30,567 1.296 39,602 Separate Account Charges 2.25% .............................. - 1.098 - Separate Account Charges 2.30% .............................. 39,526 1.422 56,226 Separate Account Charges 2.40% .............................. - 1.073 - Separate Account Charges 2.45% .............................. - 1.097 - Separate Account Charges 2.50% .............................. - 1.418 - Separate Account Charges 2.65% .............................. - 1.095 - Separate Account Charges 2.60% .............................. - 1.072 - MFS Value Portfolio Separate Account Charges 1.55% .............................. 298,850 1.112 332,221 Separate Account Charges 1.70% .............................. 64,801 1.111 71,963 Separate Account Charges 1.75% .............................. - 1.110 - Separate Account Charges 1.90% .............................. 91,359 1.109 101,320 Separate Account Charges 1.95% .............................. 310,303 1.109 344,014
-153- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) MFS Value Portfolio (continued) Separate Account Charges 2.05% .............................. 94,777 $ 1.128 $ 106,917 Separate Account Charges 2.10% .............................. 379,836 1.107 420,673 Separate Account Charges 2.15% .............................. - 1.107 - Separate Account Charges 2.20% .............................. 25,801 1.107 28,555 Separate Account Charges 2.25% .............................. - 1.106 - Separate Account Charges 2.30% .............................. 58,987 1.106 65,240 Separate Account Charges 2.40% .............................. - 1.126 - Separate Account Charges 2.45% .............................. - 1.105 - Separate Account Charges 2.50% .............................. 21,906 1.104 24,196 Separate Account Charges 2.65% .............................. - 1.103 - Separate Account Charges 2.60% .............................. - 1.125 - Pioneer Fund Portfolio Separate Account Charges 1.55% .............................. 107,327 1.304 139,936 Separate Account Charges 1.70% .............................. 1,573 1.301 2,045 Separate Account Charges 1.75% .............................. - 1.299 - Separate Account Charges 1.90% .............................. 6,200 1.296 8,037 Separate Account Charges 1.95% .............................. 105,715 1.295 136,913 Separate Account Charges 2.05% .............................. - 1.095 - Separate Account Charges 2.10% .............................. 50,281 1.292 64,962 Separate Account Charges 2.15% .............................. - 1.291 - Separate Account Charges 2.20% .............................. - 1.224 - Separate Account Charges 2.25% .............................. - 1.107 - Separate Account Charges 2.30% .............................. 14,897 1.288 19,182 Separate Account Charges 2.40% .............................. - 1.093 - Separate Account Charges 2.45% .............................. - 1.105 - Separate Account Charges 2.50% .............................. 2,365 1.283 3,035 Separate Account Charges 2.65% .............................. - 1.103 - Separate Account Charges 2.60% .............................. - 1.092 - Social Awareness Stock Portfolio Separate Account Charges 1.55% .............................. 30,549 1.046 31,960 Separate Account Charges 1.70% .............................. 9,310 1.045 9,730 Separate Account Charges 1.75% .............................. - 1.045 - Separate Account Charges 1.90% .............................. 17,765 1.044 18,541 Separate Account Charges 1.95% .............................. 183,909 1.043 191,880 Separate Account Charges 2.05% .............................. 9,403 1.077 10,128 Separate Account Charges 2.10% .............................. 11,831 1.042 12,331 Separate Account Charges 2.15% .............................. - 1.042 - Separate Account Charges 2.20% .............................. - 1.042 - Separate Account Charges 2.25% .............................. - 1.041 - Separate Account Charges 2.30% .............................. 3,300 1.041 3,435 Separate Account Charges 2.40% .............................. - 1.075 -
-154- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ The Travelers Series Trust (continued) Social Awareness Stock Portfolio (continued) Separate Account Charges 2.45% .............................. - $ 1.040 $ - Separate Account Charges 2.50% .............................. 437 1.039 454 Separate Account Charges 2.65% .............................. - 1.038 - Separate Account Charges 2.60% .............................. - 1.074 - Travelers Quality Bond Portfolio Separate Account Charges 1.55% .............................. 991,326 1.033 1,023,639 Separate Account Charges 1.70% .............................. 182,690 1.030 188,187 Separate Account Charges 1.75% .............................. - 1.029 - Separate Account Charges 1.90% .............................. 29,044 1.027 29,818 Separate Account Charges 1.95% .............................. 1,717,034 1.026 1,761,160 Separate Account Charges 2.05% .............................. 395,013 1.033 408,195 Separate Account Charges 2.10% .............................. 559,067 1.023 572,033 Separate Account Charges 2.15% .............................. 104,938 1.022 107,273 Separate Account Charges 2.20% .............................. 225,445 1.000 225,398 Separate Account Charges 2.25% .............................. - 0.992 - Separate Account Charges 2.30% .............................. 308,862 1.020 314,974 Separate Account Charges 2.40% .............................. 16,224 1.031 16,734 Separate Account Charges 2.45% .............................. - 0.991 - Separate Account Charges 2.50% .............................. 105,942 1.016 107,675 Separate Account Charges 2.65% .............................. - 0.989 - Separate Account Charges 2.60% .............................. 2,682 1.030 2,763 U.S. Government Securities Portfolio Separate Account Charges 1.55% .............................. 785,537 1.047 822,310 Separate Account Charges 1.70% .............................. 47,201 1.046 49,360 Separate Account Charges 1.75% .............................. - 1.045 - Separate Account Charges 1.90% .............................. 51,414 1.044 53,692 Separate Account Charges 1.95% .............................. 432,528 1.044 451,547 Separate Account Charges 2.05% .............................. 76,753 1.074 82,448 Separate Account Charges 2.10% .............................. 83,114 1.043 86,680 Separate Account Charges 2.15% .............................. - 1.043 - Separate Account Charges 2.20% .............................. 51,060 1.042 53,215 Separate Account Charges 2.25% .............................. - 1.042 - Separate Account Charges 2.30% .............................. 2,927 1.041 3,049 Separate Account Charges 2.40% .............................. 24,703 1.072 26,485 Separate Account Charges 2.45% .............................. - 1.040 - Separate Account Charges 2.50% .............................. 6,020 1.040 6,262 Separate Account Charges 2.65% .............................. - 1.039 - Separate Account Charges 2.60% .............................. 5,154 1.071 5,520
-155- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Travelers Series Fund Inc. AIM Capital Appreciation Portfolio Separate Account Charges 1.55% .............................. 143,448 $ 1.286 $ 184,411 Separate Account Charges 1.70% .............................. 66,201 1.282 84,899 Separate Account Charges 1.75% .............................. - 1.281 - Separate Account Charges 1.90% .............................. 29,462 1.278 37,657 Separate Account Charges 1.95% .............................. 411,722 1.277 525,760 Separate Account Charges 2.05% .............................. 39,478 1.056 41,701 Separate Account Charges 2.10% .............................. 150,777 1.274 192,070 Separate Account Charges 2.15% .............................. 18,594 1.273 23,665 Separate Account Charges 2.20% .............................. - 1.201 - Separate Account Charges 2.25% .............................. - 1.063 - Separate Account Charges 2.30% .............................. 47,755 1.270 60,631 Separate Account Charges 2.40% .............................. 4,416 1.054 4,656 Separate Account Charges 2.45% .............................. - 1.061 - Separate Account Charges 2.50% .............................. 19,084 1.265 24,148 Separate Account Charges 2.65% .............................. - 1.060 - Separate Account Charges 2.60% .............................. - 1.053 - MFS Total Return Portfolio Separate Account Charges 1.55% .............................. 1,761,719 1.236 2,177,383 Separate Account Charges 1.70% .............................. 520,821 1.233 642,139 Separate Account Charges 1.75% .............................. 5,812 1.232 7,160 Separate Account Charges 1.90% .............................. 191,205 1.229 234,955 Separate Account Charges 1.95% .............................. 4,827,697 1.228 5,926,930 Separate Account Charges 2.05% .............................. 65,059 1.097 71,403 Separate Account Charges 2.10% .............................. 1,998,244 1.225 2,447,258 Separate Account Charges 2.15% .............................. 9,678 1.224 11,842 Separate Account Charges 2.20% .............................. 39,021 1.155 45,087 Separate Account Charges 2.25% .............................. - 1.080 - Separate Account Charges 2.30% .............................. 470,295 1.221 574,045 Separate Account Charges 2.40% .............................. 10,404 1.095 11,397 Separate Account Charges 2.45% .............................. - 1.079 - Separate Account Charges 2.50% .............................. 154,861 1.217 188,392 Separate Account Charges 2.65% .............................. - 1.077 - Separate Account Charges 2.60% .............................. - 1.094 - Pioneer Strategic Income Portfolio Separate Account Charges 1.55% .............................. 184,406 1.086 200,220 Separate Account Charges 1.70% .............................. 132,431 1.085 143,642 Separate Account Charges 1.75% .............................. - 1.084 - Separate Account Charges 1.90% .............................. 65,593 1.083 71,049 Separate Account Charges 1.95% .............................. 994,140 1.083 1,076,469
-156- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Travelers Series Fund Inc. (continued) Pioneer Strategic Income Portfolio (continued) Separate Account Charges 2.05% .............................. 24,047 $ 1.106 $ 26,586 Separate Account Charges 2.10% .............................. 417,054 1.082 451,127 Separate Account Charges 2.15% .............................. - 1.081 - Separate Account Charges 2.20% .............................. - 1.081 - Separate Account Charges 2.25% .............................. - 1.081 - Separate Account Charges 2.30% .............................. 231,897 1.080 250,503 Separate Account Charges 2.40% .............................. 36,748 1.103 40,551 Separate Account Charges 2.45% .............................. - 1.079 - Separate Account Charges 2.50% .............................. 3,050 1.079 3,290 Separate Account Charges 2.65% .............................. - 1.078 - Separate Account Charges 2.60% .............................. - 1.102 - SB Adjustable Rate Income Portfolio - Class I Shares Separate Account Charges 1.55% .............................. 297,210 0.995 295,730 Separate Account Charges 1.70% .............................. 73,090 0.993 72,584 Separate Account Charges 1.75% .............................. - 0.992 - Separate Account Charges 1.90% .............................. 10,163 0.990 10,067 Separate Account Charges 1.95% .............................. 347,136 0.990 343,606 Separate Account Charges 2.05% .............................. 12,568 0.999 12,561 Separate Account Charges 2.10% .............................. 307,958 0.988 304,236 Separate Account Charges 2.15% .............................. - 0.987 - Separate Account Charges 2.20% .............................. 27,520 0.987 27,153 Separate Account Charges 2.25% .............................. - 0.990 - Separate Account Charges 2.30% .............................. 374,315 0.985 368,834 Separate Account Charges 2.40% .............................. 38,697 0.997 38,600 Separate Account Charges 2.45% .............................. - 0.988 - Separate Account Charges 2.50% .............................. 39,548 0.983 38,871 Separate Account Charges 2.65% .............................. - 0.987 - Separate Account Charges 2.60% .............................. 2,774 0.996 2,764 Strategic Equity Portfolio Separate Account Charges 1.55% .............................. 68,469 1.334 91,305 Separate Account Charges 1.70% .............................. 39,400 1.330 52,413 Separate Account Charges 1.75% .............................. - 1.329 - Separate Account Charges 1.90% .............................. 20,021 1.326 26,545 Separate Account Charges 1.95% .............................. 129,321 1.325 171,302 Separate Account Charges 2.05% .............................. - 1.100 - Separate Account Charges 2.10% .............................. 68,643 1.321 90,706 Separate Account Charges 2.15% .............................. - 1.320 - Separate Account Charges 2.20% .............................. - 1.229 - Separate Account Charges 2.25% .............................. - 1.101 - Separate Account Charges 2.30% .............................. 12,146 1.317 15,996
-157- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Travelers Series Fund Inc. (continued) Strategic Equity Portfolio (continued) Separate Account Charges 2.40% .............................. - $ 1.097 $ - Separate Account Charges 2.45% .............................. - 1.099 - Separate Account Charges 2.50% .............................. - 1.313 - Separate Account Charges 2.65% .............................. - 1.098 - Separate Account Charges 2.60% .............................. - 1.096 - Van Kampen Life Investment Trust Comstock Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 594,871 1.458 867,350 Separate Account Charges 1.70% .............................. 136,047 1.454 197,880 Separate Account Charges 1.75% .............................. - 1.453 - Separate Account Charges 1.90% .............................. 13,821 1.450 20,035 Separate Account Charges 1.95% .............................. 1,422,858 1.448 2,060,733 Separate Account Charges 2.05% .............................. 94,256 1.133 106,780 Separate Account Charges 2.10% .............................. 1,089,664 1.445 1,574,332 Separate Account Charges 2.15% .............................. - 1.443 - Separate Account Charges 2.20% .............................. - 1.306 - Separate Account Charges 2.25% .............................. - 1.135 - Separate Account Charges 2.30% .............................. 80,157 1.440 115,422 Separate Account Charges 2.40% .............................. - 1.131 - Separate Account Charges 2.45% .............................. - 1.133 - Separate Account Charges 2.50% .............................. 854 1.435 1,226 Separate Account Charges 2.65% .............................. - 1.132 - Separate Account Charges 2.60% .............................. - 1.129 - Enterprise Portfolio - Class II Shares Separate Account Charges 1.55% .............................. 34,997 1.214 42,483 Separate Account Charges 1.70% .............................. - 1.211 - Separate Account Charges 1.75% .............................. - 1.210 - Separate Account Charges 1.90% .............................. - 1.207 - Separate Account Charges 1.95% .............................. 86,646 1.206 104,477 Separate Account Charges 2.05% .............................. - 1.039 - Separate Account Charges 2.10% .............................. 3,938 1.203 4,737 Separate Account Charges 2.15% .............................. - 1.202 - Separate Account Charges 2.20% .............................. - 1.140 - Separate Account Charges 2.25% .............................. - 1.043 - Separate Account Charges 2.30% .............................. - 1.199 - Separate Account Charges 2.40% .............................. - 1.037 - Separate Account Charges 2.45% .............................. - 1.042 - Separate Account Charges 2.50% .............................. - 1.195 - Separate Account Charges 2.65% .............................. - 1.040 - Separate Account Charges 2.60% .............................. - 1.036 -
-158- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Variable Insurance Products Fund II Contrafund(R) Portfolio - Service Class 2 Separate Account Charges 1.55% .............................. 619,711 $ 1.406 $ 871,246 Separate Account Charges 1.70% .............................. 233,917 1.402 328,060 Separate Account Charges 1.75% .............................. - 1.401 - Separate Account Charges 1.90% .............................. 29,571 1.398 41,333 Separate Account Charges 1.95% .............................. 2,101,242 1.396 2,934,341 Separate Account Charges 2.05% .............................. 119,920 1.109 132,969 Separate Account Charges 2.10% .............................. 793,503 1.393 1,105,426 Separate Account Charges 2.15% .............................. - 1.392 - Separate Account Charges 2.20% .............................. 18,589 1.308 24,320 Separate Account Charges 2.25% .............................. 2,416 1.128 2,726 Separate Account Charges 2.30% .............................. 120,583 1.388 167,421 Separate Account Charges 2.40% .............................. 28,719 1.107 31,782 Separate Account Charges 2.45% .............................. - 1.126 - Separate Account Charges 2.50% .............................. 13,402 1.384 18,546 Separate Account Charges 2.65% .............................. - 1.125 - Separate Account Charges 2.60% .............................. - 1.105 - Variable Insurance Products Fund III Dynamic Capital Appreciation Portfolio - Service Class 2 Separate Account Charges 1.55% .............................. 60,121 1.182 71,070 Separate Account Charges 1.70% .............................. 5,379 1.179 6,343 Separate Account Charges 1.75% .............................. - 1.178 - Separate Account Charges 1.90% .............................. 3,414 1.175 4,012 Separate Account Charges 1.95% .............................. 209,768 1.174 246,313 Separate Account Charges 2.05% .............................. 6,188 1.042 6,446 Separate Account Charges 2.10% .............................. 90,277 1.171 105,747 Separate Account Charges 2.15% .............................. - 1.170 - Separate Account Charges 2.20% .............................. - 1.085 - Separate Account Charges 2.25% .............................. - 1.032 - Separate Account Charges 2.30% .............................. 7,492 1.167 8,746 Separate Account Charges 2.40% .............................. - 1.040 - Separate Account Charges 2.45% .............................. - 1.030 - Separate Account Charges 2.50% .............................. 4,274 1.164 4,973 Separate Account Charges 2.65% .............................. - 1.028 - Separate Account Charges 2.60% .............................. - 1.038 -
-159- NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. NET CONTRACT OWNERS' EQUITY (CONTINUED)
DECEMBER 31, 2004 ----------------------------------------------- ACCUMULATION UNIT UNITS VALUE NET ASSETS ------------ -------- ------------ Variable Insurance Products Fund III (continued) Mid Cap Portfolio - Service Class 2 Separate Account Charges 1.55% .............................. 1,199,255 $ 1.732 $ 2,077,004 Separate Account Charges 1.70% .............................. 315,931 1.728 545,832 Separate Account Charges 1.75% .............................. 2,121 1.726 3,661 Separate Account Charges 1.90% .............................. 79,153 1.722 136,295 Separate Account Charges 1.95% .............................. 1,959,111 1.720 3,370,348 Separate Account Charges 2.05% .............................. 87,466 1.229 107,508 Separate Account Charges 2.10% .............................. 736,377 1.716 1,263,737 Separate Account Charges 2.15% .............................. 64,896 1.715 111,270 Separate Account Charges 2.20% .............................. 65,385 1.545 101,047 Separate Account Charges 2.25% .............................. - 1.199 - Separate Account Charges 2.30% .............................. 101,252 1.710 173,183 Separate Account Charges 2.40% .............................. 23,433 1.227 28,747 Separate Account Charges 2.45% .............................. - 1.197 - Separate Account Charges 2.50% .............................. 109,154 1.705 186,076 Separate Account Charges 2.65% .............................. - 1.195 - Separate Account Charges 2.60% .............................. - 1.225 - ------------ Net Contract Owners' Equity ..................................... $372,984,283 ============
-160- NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. STATEMENT OF INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2004 ------------------------------------------------------ INVESTMENTS NO. OF MARKET COST OF PROCEEDS SHARES VALUE PURCHASES FROM SALES ------------ ------------ ------------ ------------ CAPITAL APPRECIATION FUND (0.4%) Total (Cost $1,481,969) 24,779 $ 1,641,132 $ 1,506,559 $ 32,923 ------------ ------------ ------------ ------------ HIGH YIELD BOND TRUST (0.4%) Total (Cost $1,603,336) 156,667 1,552,575 1,684,137 80,845 ------------ ------------ ------------ ------------ MANAGED ASSETS TRUST (0.3%) Total (Cost $1,244,587) 77,041 1,284,270 1,263,014 18,762 ------------ ------------ ------------ ------------ MONEY MARKET PORTFOLIO (2.5%) Total (Cost $9,470,052) 9,470,052 9,470,052 16,454,819 7,601,870 ------------ ------------ ------------ ------------ AIM VARIABLE INSURANCE FUNDS, INC. (1.4%) AIM V.I. Capital Appreciation Fund - Series II (Cost $2,821,779) 134,824 3,033,533 2,843,193 109,286 AIM V.I. Mid Cap Core Equity Fund - Series II (Cost $1,413,850) 113,308 1,477,542 1,262,889 91,048 AIM V.I. Utilities Fund (Cost $585,833) 43,388 677,284 529,114 10,240 ------------ ------------ ------------ ------------ Total (Cost $4,821,462) 291,520 5,188,359 4,635,196 210,574 ------------ ------------ ------------ ------------ ALLIANCEBERNSTEIN VARIABLE PRODUCT SERIES FUND, INC. (0.4%) AllianceBernstein Premier Growth Portfolio - Class B Total (Cost $1,441,579) 67,955 1,570,446 1,344,526 69,770 ------------ ------------ ------------ ------------ AMERICAN FUNDS INSURANCE SERIES (11.1%) Global Growth Fund - Class 2 Shares (Cost $5,527,766) 350,458 6,038,383 5,431,634 62,748 Growth Fund - Class 2 Shares (Cost $17,445,770) 372,028 19,010,640 17,022,974 31,754 Growth-Income Fund - Class 2 Shares (Cost $15,402,989) 445,919 16,338,475 15,151,403 101,474 ------------ ------------ ------------ ------------ Total (Cost $38,376,525) 1,168,405 41,387,498 37,606,011 195,976 ------------ ------------ ------------ ------------ CREDIT SUISSE TRUST (0.4%) Credit Suisse Trust Emerging Markets Portfolio (Cost $808,365) 71,644 948,563 776,719 47,793 Credit Suisse Trust Global Post-Venture Capital Portfolio (Cost $366,872) 37,399 417,000 507,575 151,679 ------------ ------------ ------------ ------------ Total (Cost $1,175,237) 109,043 1,365,563 1,284,294 199,472 ------------ ------------ ------------ ------------ DELAWARE VIP TRUST (1.6%) Delaware VIP REIT Series - Standard Class Total (Cost $5,138,669) 305,469 5,828,342 5,010,073 29,465 ------------ ------------ ------------ ------------ DREYFUS INVESTMENT PORTFOLIO (0.8%) Dreyfus MidCap Stock Portfolio - Service Shares Total (Cost $2,816,187) 175,393 3,081,649 2,679,428 120,899 ------------ ------------ ------------ ------------ DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. (0.0%) Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares Total (Cost $70,024) 3,066 76,841 67,170 68,971 ------------ ------------ ------------ ------------ DREYFUS VARIABLE INVESTMENT FUND (1.3%) Dreyfus VIF Appreciation Portfolio - Initial Shares (Cost $1,006,398) 29,475 1,048,118 889,231 13,842 Dreyfus VIF Developing Leaders Portfolio - Initial Shares (Cost $3,676,072) 95,727 3,977,455 3,658,437 100,638 ------------ ------------ ------------ ------------ Total (Cost $4,682,470) 125,202 5,025,573 4,547,668 114,480 ------------ ------------ ------------ ------------
-161- NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. STATEMENT OF INVESTMENTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2004 ------------------------------------------------------ INVESTMENTS NO. OF MARKET COST OF PROCEEDS SHARES VALUE PURCHASES FROM SALES ------------ ------------ ------------ ------------ FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST (6.4%) Franklin Rising Dividends Securities Fund - Class 2 Shares (Cost $5,678,476) 343,983 $ 6,023,145 $ 5,756,955 $ 155,185 Franklin Small Cap Fund - Class 2 Shares (Cost $2,366,185) 131,985 2,564,475 2,229,248 17,818 Mutual Shares Securities Fund - Class 2 Shares (Cost $2,096,264) 135,620 2,256,711 2,010,390 40,782 Templeton Developing Markets Securities Fund - Class 2 Shares (Cost $2,691,133) 360,818 3,128,289 2,712,172 37,574 Templeton Foreign Securities Fund - Class 2 Shares (Cost $4,749,697) 365,061 5,238,629 4,551,136 46,701 Templeton Growth Securities Fund - Class 2 Shares (Cost $4,298,036) 367,059 4,709,370 4,186,015 34,164 ------------ ------------ ------------ ------------ Total (Cost $21,879,791) 1,704,526 23,920,619 21,445,916 332,224 ------------ ------------ ------------ ------------ GREENWICH STREET SERIES FUND (3.8%) Equity Index Portfolio - Class II Shares (Cost $6,286,388) 227,716 6,722,164 6,230,896 218,820 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares (Cost $2,767,847) 140,118 2,974,707 2,782,133 165,147 Salomon Brothers Variable Aggressive Growth Fund - Class II Shares (Cost $3,054,335) 154,740 3,257,287 2,991,137 111,222 Salomon Brothers Variable Growth & Income Fund - Class I Shares (Cost $1,070,127) 230,933 1,133,881 1,011,873 8,131 ------------ ------------ ------------ ------------ Total (Cost $13,178,697) 753,507 14,088,039 13,016,039 503,320 ------------ ------------ ------------ ------------ JANUS ASPEN SERIES (0.3%) Balanced Portfolio - Service Shares (Cost $291,079) 12,282 310,009 244,850 3,750 Global Life Sciences Portfolio - Service Shares (Cost $197,797) 26,609 209,413 186,397 4,828 Global Technology Portfolio - Service Shares (Cost $357,586) 107,363 381,138 357,616 11,404 Worldwide Growth Portfolio - Service Shares (Cost $126,953) 5,102 135,813 95,301 1,977 ------------ ------------ ------------ ------------ Total (Cost $973,415) 151,356 1,036,373 884,164 21,959 ------------ ------------ ------------ ------------ LAZARD RETIREMENT SERIES, INC. (0.6%) Lazard Retirement Small Cap Portfolio Total (Cost $1,941,431) 127,855 2,160,748 1,918,746 51,132 ------------ ------------ ------------ ------------ LORD ABBETT SERIES FUND, INC. (2.4%) Growth and Income Portfolio (Cost $4,044,787) 159,456 4,334,007 3,930,285 85,093 Mid-Cap Value Portfolio (Cost $4,302,662) 226,096 4,700,544 4,206,286 34,931 ------------ ------------ ------------ ------------ Total (Cost $8,347,449) 385,552 9,034,551 8,136,571 120,024 ------------ ------------ ------------ ------------ MERRILL LYNCH VARIABLE SERIES FUNDS, INC. (0.8%) Merrill Lynch Global Allocation V.I. Fund - Class III (Cost $1,312,837) 115,490 1,337,374 1,313,556 740 Merrill Lynch Value Opportunities V.I. Fund - Class III (Cost $2,074,759) 195,668 1,761,012 2,085,320 10,878 ------------ ------------ ------------ ------------ Total (Cost $3,387,596) 311,158 3,098,386 3,398,876 11,618 ------------ ------------ ------------ ------------ OPPENHEIMER VARIABLE ACCOUNT FUNDS (2.2%) Oppenheimer Capital Appreciation Fund/VA - Service Shares (Cost $2,447,936) 70,659 2,595,301 2,284,971 18,166 Oppenheimer Global Securities Fund/VA - Service Shares (Cost $3,493,371) 135,596 3,977,028 3,371,099 47,212 Oppenheimer Main Street Fund/VA - Service Shares (Cost $1,441,567) 74,394 1,539,949 1,447,721 6,388 ------------ ------------ ------------ ------------ Total (Cost $7,382,874) 280,649 8,112,278 7,103,791 71,766 ------------ ------------ ------------ ------------ PIMCO VARIABLE INSURANCE TRUST (3.6%) Real Return Portfolio - Administrative Class (Cost $4,626,012) 361,185 4,666,506 4,424,138 149,248 Total Return Portfolio - Administrative Class (Cost $8,877,980) 846,280 8,894,404 8,247,449 24,130 ------------ ------------ ------------ ------------ Total (Cost $13,503,992) 1,207,465 13,560,910 12,671,587 173,378 ------------ ------------ ------------ ------------
-162- NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. STATEMENT OF INVESTMENTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2004 ------------------------------------------------------ INVESTMENTS NO. OF MARKET COST OF PROCEEDS SHARES VALUE PURCHASES FROM SALES ------------ ------------ ------------ ------------ PIONEER VARIABLE CONTRACTS TRUST (14.0%) Pioneer America Income VCT Portfolio - Class II Shares (Cost $3,742,082) 368,606 $ 3,730,294 $ 3,897,179 $ 249,317 Pioneer Balanced VCT Portfolio - Class II Shares (Cost $2,577,000) 182,899 2,630,092 3,075,393 606,290 Pioneer Emerging Markets VCT Portfolio - Class II Shares (Cost $2,357,779) 134,174 2,727,756 2,309,439 26,759 Pioneer Equity Income VCT Portfolio - Class II Shares (Cost $3,872,312) 200,189 4,139,907 3,811,179 55,537 Pioneer Europe VCT Portfolio - Class II Shares (Cost $287,668) 31,239 326,140 270,614 4,428 Pioneer Fund VCT Portfolio - Class II Shares (Cost $4,224,680) 224,202 4,598,376 4,084,824 248,786 Pioneer Growth Shares VCT Portfolio - Class II Shares (Cost $873,211) 74,746 961,981 823,950 36,615 Pioneer High Yield VCT Portfolio - Class II Shares (Cost $7,524,340) 658,632 7,686,240 7,964,397 782,596 Pioneer International Value VCT Portfolio - Class II Shares (Cost $674,845) 63,553 752,464 721,688 67,902 Pioneer Mid Cap Value VCT Portfolio - Class II Shares (Cost $3,713,919) 168,240 4,111,789 3,990,618 544,049 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares (Cost $1,483,134) 143,300 1,589,196 1,488,579 5,461 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares (Cost $448,128) 46,819 474,747 450,014 1,930 Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares (Cost $805,937) 78,162 849,620 1,075,608 257,625 Pioneer Real Estate Shares VCT Portfolio - Class II Shares (Cost $2,741,392) 129,291 3,136,597 2,699,541 77,807 Pioneer Small Cap Value VCT Portfolio - Class II Shares (Cost $2,062,532) 154,801 2,314,271 1,882,085 57,914 Pioneer Small Company VCT Portfolio - Class II Shares (Cost $297,225) 25,431 326,790 317,194 38,197 Pioneer Strategic Income VCT Portfolio - Class II Shares (Cost $7,965,823) 730,587 8,226,407 7,847,478 464,431 Pioneer Value VCT Portfolio - Class II Shares (Cost $3,070,997) 247,803 3,320,556 3,007,459 23,918 ------------ ------------ ------------ ------------ Total (Cost $48,723,004) 3,662,674 51,903,223 49,717,239 3,549,562 ------------ ------------ ------------ ------------ PUTNAM VARIABLE TRUST (1.8%) Putnam VT International Equity Fund - Class IB Shares (Cost $423,177) 32,757 481,861 357,451 22,898 Putnam VT Small Cap Value Fund - Class IB Shares (Cost $5,498,159) 270,244 6,158,867 5,379,453 36,529 ------------ ------------ ------------ ------------ Total (Cost $5,921,336) 303,001 6,640,728 5,736,904 59,427 ------------ ------------ ------------ ------------ SALOMON BROTHERS VARIABLE SERIES FUNDS INC. (2.7%) All Cap Fund - Class I (Cost $2,458,448) 157,123 2,644,380 2,263,907 31,565 Investors Fund - Class I (Cost $1,648,902) 126,227 1,743,194 1,605,415 21,577 Large Cap Growth Fund - Class I (Cost $1,648,947) 147,104 1,722,589 1,564,545 43,672 Small Cap Growth Fund - Class I (Cost $2,181,487) 178,978 2,521,803 1,970,960 32,225 Total Return Fund - Class II (Cost $1,310,169) 116,824 1,332,960 1,268,415 47,610 ------------ ------------ ------------ ------------ Total (Cost $9,247,953) 726,256 9,964,926 8,673,242 176,649 ------------ ------------ ------------ ------------ SCUDDER INVESTMENTS VIT FUNDS (0.8%) Scudder Real Estate Securities Portfolio - Class B Total (Cost $2,592,983) 190,343 3,104,497 2,505,778 167,517 ------------ ------------ ------------ ------------ SCUDDER VARIABLE SERIES I (2.4%) 21st Century Growth Portfolio - Class B (Cost $326,575) 67,608 352,911 326,517 60,695 Capital Growth Portfolio - Class B (Cost $878,489) 59,579 928,842 815,064 9,415 Global Discovery Portfolio - Class B (Cost $1,031,970) 97,100 1,225,403 1,184,760 232,850 Growth and Income Portfolio - Class B (Cost $2,856,770) 330,014 3,052,628 2,911,929 159,995 Health Sciences Portfolio - Class B (Cost $1,367,952) 123,974 1,476,533 1,307,812 45,639 International Portfolio - Class B (Cost $1,564,660) 188,624 1,788,152 1,571,516 63,645 ------------ ------------ ------------ ------------ Total (Cost $8,026,416) 866,899 8,824,469 8,117,598 572,239 ------------ ------------ ------------ ------------ SCUDDER VARIABLE SERIES II (19.1%) Scudder Aggressive Growth Portfolio - Class B (Cost $458,018) 49,800 486,051 443,823 5,093 Scudder Blue Chip Portfolio - Class B (Cost $2,741,350) 221,036 3,006,088 2,734,240 116,543 Scudder Conservative Income Strategy Portfolio - Class B (Cost $901,117) 87,181 914,533 912,651 11,728 Scudder Fixed Income Portfolio - Class B (Cost $5,029,881) 428,513 5,159,298 5,105,571 263,852 Scudder Global Blue Chip Portfolio - Class B (Cost $1,354,955) 130,012 1,531,539 1,277,489 45,387 Scudder Growth & Income Strategy Portfolio (Cost $4,215,004) 405,739 4,398,214 4,225,999 11,331
-163- NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. STATEMENT OF INVESTMENTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2004 ------------------------------------------------------ INVESTMENTS NO. OF MARKET COST OF PROCEEDS SHARES VALUE PURCHASES FROM SALES ------------ ------------ ------------ ------------ SCUDDER VARIABLE SERIES II (CONTINUED) Scudder Growth Portfolio - Class B (Cost $1,236,529) 66,940 1,292,620 1,194,999 29,254 Scudder Growth Strategy Portfolio - Class B (Cost $4,630,359) 439,857 4,851,623 4,677,964 49,799 Scudder High Income Portfolio - Class B (Cost $3,078,598) 373,316 3,273,980 3,013,520 124,872 Scudder Income & Growth Strategy Portfolio - Class B (Cost $2,358,302) 228,071 2,431,235 2,375,482 17,585 Scudder International Select Equity Portfolio - Class B (Cost $1,934,746) 184,532 2,192,239 1,971,981 110,634 Scudder Mercury Large Cap Core Portfolio - Class B (Cost $57,632) 5,547 57,632 57,632 -- Scudder Money Market Portfolio - Class B (Cost $2,309,217) 2,309,217 2,309,217 6,794,776 4,773,137 Scudder Small Cap Growth Portfolio - Class B (Cost $1,074,426) 94,923 1,184,640 1,014,073 35,741 Scudder Strategic Income Portfolio - Class B (Cost $2,422,187) 213,903 2,605,336 2,208,037 41,955 Scudder Technology Growth Portfolio - Class B (Cost $928,493) 109,282 975,891 953,496 146,081 Scudder Templeton Foreign Value Portfolio - Class B (Cost $101,953) 9,831 103,820 102,000 47 Scudder Total Return Portfolio - Class B (Cost $2,509,780) 117,389 2,622,464 2,688,774 216,755 SVS Davis Venture Value Portfolio - Class B (Cost $4,792,209) 451,964 5,179,508 4,663,257 72,861 SVS Dreman Financial Services Portfolio - Class B (Cost $1,392,146) 110,507 1,499,586 1,332,425 13,454 SVS Dreman High Return Equity Portfolio - Class B (Cost $5,340,633) 462,439 5,840,609 5,290,657 146,387 SVS Dreman Small Cap Value Portfolio - Class B (Cost $3,316,678) 189,787 3,799,537 3,204,741 130,251 SVS Eagle Focused Large Cap Growth Portfolio - Class B (Cost $1,198,324) 146,317 1,275,886 1,147,496 57,364 SVS Focus Value & Growth Portfolio - Class B (Cost $510,015) 40,704 568,631 474,394 8,955 Scudder Government & Agency Securities Portfolio - Class B (Cost $1,216,047) 98,655 1,234,171 1,166,730 130,133 Scudder Large Cap Value Portfolio - Class B (Cost $2,114,719) 145,282 2,291,095 2,118,658 137,100 SVS Index 500 Portfolio - Class B (Cost $3,325,922) 398,690 3,624,092 3,194,637 104,654 SVS INVESCO Dynamic Growth Portfolio - Class B (Cost $113,798) 14,153 129,500 84,446 109,386 SVS Janus Growth And Income Portfolio - Class B (Cost $1,228,232) 140,792 1,382,582 1,265,496 255,076 SVS Janus Growth Opportunities Portfolio - Class B (Cost $274,340) 40,150 309,958 279,963 12,526 SVS MFS Strategic Value Portfolio - Class B (Cost $1,801,648) 169,197 2,026,978 2,008,191 300,434 SVS Oak Strategic Equity Portfolio - Class B (Cost $893,518) 138,651 955,307 806,382 38,222 SVS Turner Mid Cap Growth Portfolio - Class B (Cost $1,315,303) 148,397 1,451,325 1,274,951 62,920 ------------ ------------ ------------ ------------ Total (Cost $66,176,079) 8,170,774 70,965,185 70,064,931 7,579,517 ------------ ------------ ------------ ------------ THE ALGER AMERICAN FUND (1.0%) Alger American Balanced Portfolio - Class S Shares (Cost $2,843,276) 219,425 3,008,323 2,769,657 218,716 Alger American Leveraged AllCap Portfolio - Class S Shares (Cost $542,896) 19,760 596,156 583,855 122,901 ------------ ------------ ------------ ------------ Total (Cost $3,386,172) 239,185 3,604,479 3,353,512 341,617 ------------ ------------ ------------ ------------ THE TRAVELERS SERIES TRUST (7.6%) Convertible Securities Portfolio (Cost $2,145,248) 177,312 2,189,798 1,933,229 57,801 Disciplined Mid Cap Stock Portfolio (Cost $2,487,857) 136,830 2,703,763 2,398,185 11,400 Equity Income Portfolio (Cost $4,367,383) 264,251 4,537,196 4,286,944 53,716 Federated High Yield Portfolio (Cost $2,976,027) 338,146 2,914,820 2,721,123 107,309 Federated Stock Portfolio (Cost $437,997) 28,349 469,455 473,137 69,863 Large Cap Portfolio (Cost $1,204,816) 91,506 1,274,679 1,228,799 33,048 Lazard International Stock Portfolio (Cost $1,470,106) 138,098 1,577,082 1,429,293 23,178 Merrill Lynch Large Cap Core Portfolio (Cost $1,274,972) 148,687 1,345,622 1,243,622 4,487 MFS Emerging Growth Portfolio (Cost $1,081,120) 112,806 1,188,979 1,068,195 35,706 MFS Mid Cap Growth Portfolio (Cost $1,545,248) 213,908 1,679,176 1,486,957 84,020 MFS Value Portfolio (Cost $1,432,474) 121,355 1,495,099 1,488,048 57,491 Pioneer Fund Portfolio (Cost $348,831) 31,098 374,110 371,729 36,984 Social Awareness Stock Portfolio (Cost $253,903) 11,459 278,459 255,070 1,204 Travelers Quality Bond Portfolio (Cost $4,900,584) 431,355 4,757,849 4,639,252 55,548 U.S. Government Securities Portfolio (Cost $1,687,647) 128,672 1,640,568 1,698,870 11,368 ------------ ------------ ------------ ------------ Total (Cost $27,614,213) 2,373,832 28,426,655 26,722,453 643,123 ------------ ------------ ------------ ------------
-164- NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. STATEMENT OF INVESTMENTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2004 ------------------------------------------------------ INVESTMENTS NO. OF MARKET COST OF PROCEEDS SHARES VALUE PURCHASES FROM SALES ------------ ------------ ------------ ------------ TRAVELERS SERIES FUND INC. (4.7%) AIM Capital Appreciation Portfolio (Cost $1,097,686) 110,243 $ 1,179,598 $ 1,053,140 $ 6,122 MFS Total Return Portfolio (Cost $12,112,031) 719,836 12,337,991 11,708,436 137,574 Pioneer Strategic Income Portfolio (Cost $2,332,485) 241,305 2,263,437 2,360,624 28,662 SB Adjustable Rate Income Portfolio - Class I Shares (Cost $1,526,751) 151,349 1,515,006 2,594,097 1,095,307 Strategic Equity Portfolio (Cost $427,290) 25,557 448,267 463,662 95,721 ------------ ------------ ------------ ------------ Total (Cost $17,496,243) 1,248,290 17,744,299 18,179,959 1,363,386 ------------ ------------ ------------ ------------ VAN KAMPEN LIFE INVESTMENT TRUST (1.4%) Comstock Portfolio - Class II Shares (Cost $4,540,445) 361,122 4,943,758 4,313,401 44,093 Enterprise Portfolio - Class II Shares (Cost $140,144) 11,154 151,697 120,240 3,380 ------------ ------------ ------------ ------------ Total (Cost $4,680,589) 372,276 5,095,455 4,433,641 47,473 ------------ ------------ ------------ ------------ VARIABLE INSURANCE PRODUCTS FUND II (1.5%) Contrafund(R) Portfolio - Service ClaSs 2 Total (Cost $5,197,774) 214,731 5,658,170 5,148,549 66,201 ------------ ------------ ------------ ------------ VARIABLE INSURANCE PRODUCTS FUND III (2.3%) Dynamic Capital Appreciation Portfolio - Service Class 2 (Cost $421,040) 63,805 453,650 301,598 3,450 Mid Cap Portfolio - Service Class 2 (Cost $6,998,666) 271,242 8,104,708 6,888,442 69,842 ------------ ------------ ------------ ------------ Total (Cost $7,419,706) 335,047 8,558,358 7,190,040 73,292 ------------ ------------ ------------ ------------ TOTAL INVESTMENTS (100%) (COST $349,399,810) $372,974,648 $356,502,431 $ 24,669,431 ============ ============ ============
-165- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- CAPITAL APPRECIATION FUND 2004 1,172 1.169 - 1.432 1,641 - 1.55 - 2.50 1.88 - 20.49 2003 7 1.217 8 0.05 1.55 9.54 HIGH YIELD BOND TRUST 2004 1,461 1.056 - 1.078 1,553 16.46 1.55 - 2.50 0.09 - 7.16 MANAGED ASSETS TRUST 2004 1,213 1.056 - 1.073 1,284 4.94 1.55 - 2.30 3.07 - 7.98 MONEY MARKET PORTFOLIO 2004 9,637 0.973 - 0.996 9,478 1.26 1.55 - 2.60 (1.52) - 0.00 2003 623 0.988 - 0.994 617 0.26 1.55 - 2.50 (0.70) - 0.00 AIM VARIABLE INSURANCE FUNDS, INC. AIM V.I. Capital Appreciation Fund - Series II 2004 2,380 1.053 - 1.283 3,034 - 1.55 - 2.60 (0.17) - 12.70 2003 76 1.221 - 1.225 93 - 1.55 - 2.10 (0.16) - 8.99 AIM V.I. Mid Cap Core Equity Fund - Series II 2004 1,071 1.067 - 1.391 1,478 0.05 1.55 - 2.50 0.40 - 11.82 2003 204 1.240 - 1.244 253 - 1.55 - 2.10 2.73 - 10.78 AIM V.I. Utilities Fund 2004 525 1.201 - 1.300 677 1.03 1.55 - 2.45 15.48 - 21.44 2003 67 1.064 - 1.068 71 1.93 1.70 - 2.30 6.29 - 12.00 ALLIANCEBERNSTEIN VARIABLE PRODUCT SERIES FUND, INC. AllianceBernstein Premier Growth Portfolio - Class B 2004 1,292 1.058 - 1.223 1,570 - 1.55 - 2.50 4.24 - 9.03 2003 154 1.139 - 1.146 176 - 1.55 - 2.50 2.24 - 10.14 AMERICAN FUNDS INSURANCE SERIES Global Growth Fund - Class 2 Shares 2004 4,145 1.112 - 1.475 6,038 0.21 1.55 - 2.60 7.00 - 15.54 2003 126 1.313 - 1.320 166 0.01 1.55 - 2.30 5.55 - 20.27 Growth Fund - Class 2 Shares 2004 13,782 1.084 - 1.395 19,011 0.39 1.55 - 2.60 7.86 - 17.62 2003 379 1.251 - 1.259 476 0.33 1.55 - 2.50 3.55 - 14.08 Growth-Income Fund - Class 2 Shares 2004 12,151 1.063 - 1.366 16,338 2.20 1.55 - 2.60 3.46 - 11.03 2003 296 1.249 - 1.257 371 2.55 1.55 - 2.50 6.26 - 15.31 CREDIT SUISSE TRUST Credit Suisse Trust Emerging Markets Portfolio 2004 614 1.163 - 1.626 949 0.39 1.55 - 2.50 11.80 - 23.60 2003 61 1.318 - 1.321 80 - 1.70 - 2.10 4.27 - 7.05 Credit Suisse Trust Global Post-Venture Capital Portfolio 2004 295 1.131 - 1.442 417 - 1.55 - 2.45 0.99 - 18.31 2003 11 1.237 - 1.240 13 - 1.70 - 2.10 (0.16) - 6.26 DELAWARE VIP TRUST Delaware VIP REIT Series - Standard 2004 3,638 1.202 - 1.635 5,828 0.37 1.55 - 2.60 8.39 - 29.35 Class 2003 133 1.260 - 1.264 168 - 1.55 - 2.10 3.95 - 14.12 DREYFUS INVESTMENT PORTFOLIO Dreyfus MidCap Stock Portfolio - Service Shares 2004 2,376 1.114 - 1.321 3,082 0.38 1.55 - 2.65 4.18 - 19.40 2003 224 1.168 - 1.173 263 0.32 1.70 - 2.50 1.30 - 14.47 DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. Dreyfus Socially Responsible Growth Fund, Inc.- Service Shares 2004 66 1.167 - 1.174 77 0.12 1.70 - 2.10 2.01 - 4.17 2003 64 1.125 - 1.127 72 - 1.70 - 1.95 2.83 - 6.12
-166- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- DREYFUS VARIABLE INVESTMENT FUND Dreyfus VIF Appreciation Portfolio - Initial Shares 2004 874 1.022 - 1.212 1,048 3.31 1.55 - 2.50 2.02 - 5.46 2003 123 1.167 - 1.170 144 1.57 1.70 - 2.15 4.93 - 10.30 Dreyfus VIF Developing Leaders Portfolio - Initial Shares 2004 2,867 1.093 - 1.408 3,977 0.44 1.55 - 2.50 7.85 - 16.61 2003 98 1.276 - 1.285 125 0.04 1.55 - 2.50 (0.47) - 14.12 FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Rising Dividends Securities Fund - Class 2 Shares 2004 4,561 1.074 - 1.329 6,023 0.26 1.55 - 2.50 0.40 - 12.39 2003 68 1.211 - 1.216 82 - 1.55 - 2.10 1.68 - 13.22 Franklin Small Cap Fund - Class 2 Shares 2004 1,763 1.083 - 1.465 2,564 - 1.55 - 2.60 3.04 - 14.35 2003 121 1.330 - 1.335 161 - 1.55 - 2.10 (0.82) - 6.12 Mutual Shares Securities Fund - Class 2 Shares 2004 1,703 1.099 - 1.339 2,257 0.39 1.55 - 2.60 3.27 - 10.94 2003 111 1.201 - 1.207 133 - 1.55 - 2.30 5.17 - 11.58 Templeton Developing Markets Securities Fund - Class 2 Shares 2004 1,742 1.261 - 1.816 3,128 1.52 1.55 - 2.50 5.88 - 28.51 2003 12 1.474 - 1.479 17 - 1.55 - 2.10 5.57 - 21.63 Templeton Foreign Securities Fund - Class 2 Shares 2004 3,390 1.153 - 1.562 5,239 0.57 1.55 - 2.60 4.34 - 16.82 2003 195 1.333 - 1.338 260 - 1.55 - 2.10 6.28 - 9.80 Templeton Growth Securities Fund - Class 2 Shares 2004 3,152 1.119 - 1.517 4,709 0.88 1.55 - 2.50 2.66 - 14.23 2003 118 1.319 - 1.328 156 - 1.55 - 2.50 4.92 - 16.29 GREENWICH STREET SERIES FUND Equity Index Portfolio - Class II Shares 2004 5,183 1.072 - 1.316 6,722 3.15 1.55 - 2.50 5.08 - 10.47 2003 239 1.208 - 1.212 290 1.73 1.55 - 2.10 5.49 - 14.81 Salomon Brothers Variable Aggressive Growth Fund - Class I Shares 2004 2,209 1.056 - 1.368 2,975 - 1.55 - 2.50 (1.53) - 13.30 2003 122 1.265 - 1.274 155 - 1.55 - 2.50 4.20 - 13.14 Salomon Brothers Variable Aggressive Growth Fund - Class II Shares 2004 2,435 1.051 - 1.346 3,257 - 1.55 - 2.60 (0.89) - 10.69 2003 146 1.252 - 1.257 184 - 1.55 - 2.10 (0.08) - 7.45 Salomon Brothers Variable Growth & Income Fund - Class I Shares 2004 878 1.065 - 1.311 1,134 2.13 1.55 - 2.40 2.36 - 8.77 2003 57 1.225 - 1.229 70 0.55 1.55 - 1.95 5.06 - 7.24 JANUS ASPEN SERIES Balanced Portfolio - Service Shares 2004 268 1.153 - 1.167 310 3.13 1.55 - 2.30 5.52 - 6.99 2003 48 1.090 - 1.092 53 1.42 1.90 - 2.15 4.41 - 7.27 Global Life Sciences Portfolio - Service Shares 2004 157 1.324 - 1.340 209 - 1.55 - 2.30 1.07 - 12.42 2003 15 1.189 - 1.192 18 - 1.55 - 1.95 7.02 - 8.96 Global Technology Portfolio - Service Shares 2004 279 1.217 - 1.373 381 - 1.55 - 2.30 (1.37) - 3.49 2003 9 1.382 - 1.386 12 - 1.55 - 1.95 (0.86) - 9.05 Worldwide Growth Portfolio - Service Shares 2004 106 1.279 - 1.290 136 1.18 1.55 - 2.10 (4.19) - 2.87 2003 30 1.250 - 1.254 38 0.25 1.55 - 1.95 11.76 - 13.53 LAZARD RETIREMENT SERIES, INC. Lazard Retirement Small Cap Portfolio 2004 1,449 1.128 - 1.509 2,161 - 1.55 - 2.50 2.07 - 16.21 2003 58 1.330 - 1.334 78 - 1.55 - 2.10 4.88 - 15.84
-167- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- LORD ABBETT SERIES FUND, INC. Growth and Income Portfolio 2004 3,180 1.099 - 1.379 4,334 2.24 1.55 - 2.50 2.01 - 14.21 2003 169 1.239 - 1.243 210 1.69 1.55 - 2.10 4.98 - 12.93 Mid-Cap Value Portfolio 2004 3,089 1.160 - 1.537 4,701 0.80 1.55 - 2.50 3.66 - 21.96 2003 108 1.252 - 1.257 136 2.19 1.70 - 2.30 7.90 - 16.90 MERRILL LYNCH VARIABLE SERIES FUNDS, INC. Merrill Lynch Global Allocation V.I. Fund - Class III 2004 1,109 1.119 - 1.213 1,337 15.47 1.55 - 2.50 1.77 - 15.09 Merrill Lynch Value Opportunities V.I. Fund - Class III 2004 1,462 1.119 - 1.211 1,761 - 1.55 - 2.50 5.74 - 15.45 OPPENHEIMER VARIABLE ACCOUNT FUNDS Oppenheimer Capital Appreciation Fund/VA - Service Shares 2004 2,015 1.200 - 1.294 2,595 0.07 1.55 - 2.50 (0.25) - 8.40 2003 151 1.229 - 1.233 186 - 1.55 - 2.10 2.93 - 6.57 Oppenheimer Global Securities Fund/VA - Service Shares 2004 2,418 1.169 - 1.654 3,977 0.35 1.55 - 2.50 0.20 - 19.32 2003 127 1.408 - 1.413 179 - 1.55 - 2.10 3.37 - 23.10 Oppenheimer Main Street Fund/VA - Service Shares 2004 1,460 1.048 - 1.064 1,540 - 1.55 - 2.20 5.72 - 10.90 PIMCO VARIABLE INSURANCE TRUST Real Return Portfolio - Administrative Class 2004 4,188 1.020 - 1.122 4,667 1.18 1.55 - 2.60 1.23 - 7.47 2003 331 1.043 - 1.047 346 0.38 1.55 - 2.10 (1.23) - 2.45 Total Return Portfolio - Administrative Class 2004 8,552 1.011 - 1.046 8,894 1.99 1.55 - 2.60 0.10 - 3.26 2003 649 1.007 - 1.013 656 1.33 1.55 - 2.50 (1.37) - 3.58 PIONEER VARIABLE CONTRACTS TRUST Pioneer America Income VCT Portfolio - Class II Shares 2004 3,712 0.990 - 1.034 3,730 4.63 1.55 - 2.50 (1.19) - 3.07 2003 95 0.993 - 0.995 94 0.66 1.55 - 1.95 (0.10) - 1.22 Pioneer Balanced VCT Portfolio - Class II Shares 2004 2,314 1.125 - 1.143 2,630 3.12 1.55 - 2.50 (0.09) - 4.49 2003 97 1.106 - 1.110 108 2.15 1.55 - 2.10 1.46 - 3.85 Pioneer Emerging Markets VCT Portfolio - Class II Shares 2004 1,557 1.294 - 1.764 2,728 0.56 1.55 - 2.60 0.00 - 28.02 2003 55 1.505 - 1.510 82 - 1.55 - 2.10 1.28 - 18.69 Pioneer Equity Income VCT Portfolio - Class II Shares 2004 3,021 1.127 - 1.377 4,140 3.12 1.55 - 2.50 2.36 - 14.27 2003 101 1.201 - 1.205 121 0.92 1.55 - 2.10 4.43 - 10.56 Pioneer Europe VCT Portfolio - Class II Shares 2004 220 1.470 - 1.493 326 0.44 1.55 - 2.50 14.79 - 20.18 2003 19 1.278 - 1.282 24 - 1.70 - 2.10 12.36 - 16.29 Pioneer Fund VCT Portfolio - Class II Shares 2004 3,497 1.089 - 1.324 4,598 1.17 1.55 - 2.60 0.74 - 13.11 2003 336 1.208 - 1.213 407 0.74 1.55 - 2.10 0.25 - 12.86 Pioneer Growth Shares VCT Portfolio - Class II Shares 2004 799 1.189 - 1.208 962 - 1.55 - 2.50 4.18 - 10.55 2003 77 1.149 - 1.154 88 - 1.55 - 2.10 0.17 - 2.58 Pioneer High Yield VCT Portfolio - Class II Shares 2004 6,312 1.087 - 1.223 7,686 5.01 1.55 - 2.50 1.21 - 6.93 2003 332 1.148 - 1.152 382 2.37 1.55 - 2.10 1.68 - 9.09
-168- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED) Pioneer International Value VCT Portfolio - Class II Shares 2004 504 1.480 - 1.504 752 0.32 1.55 - 2.50 12.62 - 16.59 2003 16 1.286 - 1.290 21 - 1.55 - 1.95 12.41 - 12.76 Pioneer Mid Cap Value VCT Portfolio - Class II Shares 2004 2,609 1.143 - 1.587 4,112 0.17 1.55 - 2.50 0.78 - 19.86 2003 205 1.317 - 1.324 271 - 1.55 - 2.30 7.24 - 11.20 Pioneer Oak Ridge Large Cap Growth VCT Portfolio - Class II Shares 2004 1,455 1.070 - 1.095 1,589 - 1.55 - 2.50 (0.09) - 11.01 Pioneer Papp America-Pacific Rim Fund VCT - Class II Shares 2004 476 0.994 - 1.002 475 - 1.55 - 2.50 (0.30) - 8.82 Pioneer Papp Small & Mid Cap Growth VCT Portfolio - Class II Shares 2004 794 1.010 - 1.074 850 - 1.55 - 2.40 (1.11) - 5.29 Pioneer Real Estate Shares VCT Portfolio - Class II Shares 2004 1,875 1.310 - 1.681 3,137 4.29 1.55 - 2.30 4.13 - 41.52 2003 99 1.256 - 1.261 125 2.94 1.55 - 2.10 (0.16) - 15.69 Pioneer Small Cap Value VCT Portfolio - Class II Shares 2004 1,455 1.156 - 1.599 2,314 - 1.55 - 2.50 3.96 - 19.94 2003 182 1.348 - 1.355 247 - 1.55 - 2.30 8.00 - 10.49 Pioneer Small Company VCT Portfolio - Class II Shares 2004 229 1.415 - 1.433 327 - 1.55 - 2.30 4.75 - 14.79 2003 16 1.281 - 1.284 21 - 1.70 - 2.10 0.00 - 12.04 Pioneer Strategic Income VCT Portfolio - Class II Shares 2004 7,013 1.097 - 1.179 8,226 5.63 1.55 - 2.60 0.18 - 8.26 2003 552 1.085 - 1.089 601 2.51 1.55 - 2.10 0.18 - 6.06 Pioneer Value VCT Portfolio - Class II Shares 2004 2,559 1.085 - 1.307 3,321 0.04 1.55 - 2.60 0.46 - 11.26 2003 76 1.187 - 1.192 91 0.03 1.55 - 2.10 3.56 - 8.09 PUTNAM VARIABLE TRUST Putnam VT International Equity Fund - Class IB Shares 2004 327 1.462 - 1.480 482 1.46 1.55 - 2.30 13.60 - 14.37 2003 73 1.287 - 1.294 95 - 1.55 - 2.30 7.92 - 13.76 Putnam VT Small Cap Value Fund - Class IB Shares 2004 3,522 1.180 - 1.777 6,159 0.06 1.55 - 2.50 3.02 - 25.92 2003 119 1.423 - 1.430 169 - 1.55 - 2.30 4.84 - 27.62 SALOMON BROTHERS VARIABLE SERIES FUNDS INC. All Cap Fund - Class I 2004 1,925 1.059 - 1.398 2,644 1.09 1.55 - 2.50 5.68 - 13.60 2003 186 1.302 - 1.311 244 0.54 1.55 - 2.50 7.83 - 16.37 Investors Fund - Class I 2004 1,277 1.081 - 1.385 1,743 3.68 1.55 - 2.50 7.66 - 9.86 2003 55 1.266 - 1.274 70 2.35 1.55 - 2.50 5.64 - 13.55 Large Cap Growth Fund - Class I 2004 1,359 0.992 - 1.295 1,723 0.39 1.55 - 2.50 (4.19) - 13.94 2003 106 1.303 - 1.308 139 - 1.55 - 2.10 3.66 - 14.44 Small Cap Growth Fund - Class I 2004 1,599 1.166 - 1.621 2,522 - 1.55 - 2.50 1.39 - 25.00 2003 192 1.425 - 1.430 274 - 1.55 - 2.10 3.63 - 21.29 Total Return Fund - Class II 2004 1,125 1.117 - 1.191 1,333 4.47 1.55 - 2.50 0.09 - 6.82 2003 80 1.112 - 1.115 89 0.77 1.55 - 1.95 3.15 - 8.58 SCUDDER INVESTMENTS VIT FUNDS Scudder Real Estate Securities Portfolio - Class B 2004 2,085 1.211 - 1.501 3,104 0.29 1.55 - 2.50 1.92 - 35.53 2003 217 1.163 - 1.165 252 - 1.70 - 2.10 9.91 - 13.67
-169- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- SCUDDER VARIABLE SERIES I 21st Century Growth Portfolio - Class B 2004 290 1.067 - 1.231 353 - 1.55 - 2.45 1.67 - 10.93 2003 55 1.127 - 1.128 62 - 1.95 - 2.10 (0.62) - 0.71 Capital Growth Portfolio - Class B 2004 792 1.055 - 1.184 929 0.08 1.55 - 2.45 3.27 - 5.73 2003 66 1.114 - 1.117 74 - 1.70 - 2.10 2.76 - 10.19 Global Discovery Portfolio - Class B 2004 826 1.195 - 1.523 1,225 - 1.55 - 2.50 2.72 - 20.75 2003 63 1.252 - 1.253 79 - 1.95 - 2.10 7.19 - 11.79 Growth and Income Portfolio - Class B 2004 2,537 1.080 - 1.222 3,053 0.16 1.55 - 2.50 1.60 - 10.43 2003 102 1.127 - 1.129 115 - 1.70 - 2.10 4.83 - 9.41 Health Sciences Portfolio - Class B 2004 1,239 1.037 - 1.210 1,477 - 1.55 - 2.65 (1.95) - 7.57 2003 101 1.122 - 1.123 113 - 1.95 - 2.10 7.06 - 7.57 International Portfolio - Class B 2004 1,332 1.137 - 1.359 1,788 0.37 1.55 - 2.50 3.22 - 15.28 2003 53 1.184 - 1.185 62 - 1.90 - 2.10 9.33 - 15.61 SCUDDER VARIABLE SERIES II Scudder Aggressive Growth Portfolio - Class B 2004 413 1.044 - 1.191 486 - 1.55 - 2.45 0.94 - 16.70 2003 17 1.164 19 - 2.10 (0.26) Scudder Blue Chip Portfolio - Class B 2004 2,316 1.109 - 1.318 3,006 0.04 1.55 - 2.65 1.56 - 14.41 2003 113 1.155 - 1.156 131 - 1.90 - 2.10 5.19 - 15.48 Scudder Conservative Income Strategy Portfolio - Class B 2004 878 1.039 - 1.043 915 - 1.55 - 2.45 0.58 - 3.07 Scudder Fixed Income Portfolio - Class B 2004 5,115 0.993 - 1.015 5,159 0.48 1.55 - 2.65 0.20 - 3.86 2003 189 0.986 - 0.990 186 - 1.70 - 2.30 1.12 - 3.02 Scudder Global Blue Chip Portfolio - Class B 2004 1,176 1.123 - 1.332 1,532 0.44 1.55 - 2.50 2.72 - 18.68 2003 109 1.179 - 1.180 128 - 1.95 - 2.10 7.08 - 8.16 Scudder Growth & Income Strategy Portfolio - Class B 2004 4,088 1.075 - 1.078 4,398 - 1.55 - 2.30 1.42 - 6.22 Scudder Growth Portfolio - Class B 2004 1,139 1.040 - 1.146 1,293 - 1.55 - 2.65 1.34 - 11.11 2003 65 1.107 - 1.110 72 - 1.70 - 2.10 2.12 - 10.14 Scudder Growth Strategy Portfolio - Class B 2004 4,429 1.094 - 1.097 4,852 - 1.55 - 2.30 0.64 - 7.78 Scudder High Income Portfolio - Class B 2004 2,742 1.082 - 1.207 3,274 1.96 1.55 - 2.65 1.01 - 10.25 2003 186 1.088 - 1.093 202 - 1.70 - 2.50 4.50 - 10.86 Scudder Income & Growth Strategy Portfolio - Class B 2004 2,298 1.056 - 1.060 2,431 - 1.55 - 2.45 1.54 - 4.75 Scudder International Select Equity Portfolio - Class B 2004 1,580 1.150 - 1.407 2,192 0.11 1.55 - 2.50 2.88 - 22.00 2003 68 1.206 - 1.210 82 - 1.95 - 2.50 6.35 - 20.40 Scudder Mercury Large Cap Core Portfolio - Class B 2004 56 1.037 58 - 1.70 - 1.90 - Scudder Money Market Portfolio - Class B 2004 2,361 0.971 - 0.987 2,311 0.61 1.55 - 2.30 (1.52) - (0.40) 2003 290 0.989 - 0.992 288 0.10 1.55 - 2.10 (0.50) - (0.20)
-170- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- SCUDDER VARIABLE SERIES II (CONTINUED) Scudder Small Cap Growth Portfolio - Class B 2004 970 1.064 - 1.235 1,185 - 1.55 - 2.65 0.49 - 22.16 2003 87 1.132 - 1.133 98 - 1.90 - 2.10 0.27 - 8.21 Scudder Strategic Income Portfolio - Class B 2004 2,492 1.037 - 1.058 2,605 - 1.55 - 2.65 1.65 - 10.64 2003 268 0.983 - 0.985 263 - 1.95 - 2.30 2.50 - 3.69 Scudder Technology Growth Portfolio - Class B 2004 818 1.043 - 1.217 976 - 1.55 - 2.65 (0.66) - 13.62 2003 114 1.215 - 1.217 139 - 1.70 - 2.10 3.58 - 15.48 Scudder Templeton Foreign Value Portfolio - Class B 2004 99 1.053 - 1.054 104 - 1.70 - 2.30 0.00 - 5.40 Scudder Total Return Portfolio - Class B 2004 2,374 1.032 - 1.116 2,622 0.47 1.55 - 2.50 2.23 - 5.55 2003 40 1.062 - 1.065 43 - 1.70 - 2.10 0.09 - 5.14 SVS Davis Venture Value Portfolio - Class B 2004 4,121 1.068 - 1.273 5,180 0.01 1.55 - 2.50 1.94 - 9.48 2003 185 1.156 - 1.160 214 - 1.70 - 2.30 5.65 - 16.06 SVS Dreman Financial Services Portfolio - Class B 2004 1,228 1.058 - 1.243 1,500 0.23 1.55 - 2.65 7.55 - 13.60 2003 67 1.129 - 1.130 75 - 1.95 - 2.10 4.34 - 11.45 SVS Dreman High Return Equity Portfolio - Class B 2004 4,520 1.113 - 1.304 5,841 0.28 1.55 - 2.65 3.20 - 14.51 2003 182 1.159 - 1.164 212 - 1.70 - 2.50 5.63 - 19.06 SVS Dreman Small Cap Value Portfolio - Class B 2004 2,539 1.165 - 1.542 3,800 0.17 1.55 - 2.65 2.35 - 23.90 2003 201 1.244 - 1.246 250 - 1.70 - 2.10 9.60 - 20.66 SVS Eagle Focused Large Cap Growth Portfolio - Class B 2004 1,156 1.009 - 1.120 1,276 - 1.55 - 2.65 (0.63) - 10.64 2003 104 1.117 - 1.120 116 - 1.70 - 2.10 5.07 - 11.69 SVS Focus Value & Growth Portfolio - Class B 2004 458 1.104 - 1.267 569 0.15 1.55 - 2.45 8.16 - 13.81 2003 41 1.157 - 1.159 47 - 1.70 - 2.10 5.57 - 6.23 Scudder Government & Agency Securities Portfolio - Class B 2004 1,224 0.998 - 1.015 1,234 0.84 1.55 - 2.65 (0.20) - 2.54 2003 182 0.995 181 - 1.95 - 2.10 (0.30) - 2.05 Scudder Large Cap Value Portfolio - Class B 2004 1,853 1.078 - 1.258 2,291 0.23 1.55 - 2.65 1.55 - 9.81 2003 122 1.159 - 1.164 142 - 1.70 - 2.50 8.22 - 15.26 SVS Index 500 Portfolio - Class B 2004 2,970 1.085 - 1.229 3,624 0.24 1.55 - 2.45 3.02 - 8.94 2003 229 1.130 - 1.134 259 - 1.70 - 2.30 5.49 - 13.57 SVS INVESCO Dynamic Growth Portfolio - Class B 2004 101 1.102 - 1.293 130 - 1.55 - 2.45 5.04 - 13.00 2003 118 1.173 - 1.177 138 - 1.70 - 2.30 6.13 - 13.77 SVS Janus Growth And Income Portfolio - Class B 2004 1,146 1.099 - 1.227 1,383 - 1.55 - 2.65 4.35 - 13.58 2003 204 1.116 - 1.121 229 - 1.70 - 2.50 6.08 - 11.23 SVS Janus Growth Opportunities Portfolio - Class B 2004 253 1.215 - 1.229 310 - 1.55 - 2.30 7.62 - 12.37 2003 6 1.109 7 - 2.10 6.53
-171- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- SCUDDER VARIABLE SERIES II (CONTINUED) SVS MFS Strategic Value Portfolio - Class B 2004 1,576 1.140 - 1.300 2,027 0.02 1.55 - 2.50 2.71 - 15.39 2003 88 1.119 - 1.124 99 - 1.70 - 2.50 0.27 - 11.20 SVS Oak Strategic Equity Portfolio - Class B 2004 815 1.015 - 1.188 955 - 1.55 - 2.50 (1.43) - 4.46 2003 118 1.191 - 1.194 141 - 1.95 - 2.30 0.00 - 14.63 SVS Turner Mid Cap Growth Portfolio - Class B 2004 1,107 1.097 - 1.324 1,451 - 1.55 - 2.50 6.10 - 12.71 2003 92 1.210 - 1.213 111 - 1.95 - 2.30 2.36 - 16.01 THE ALGER AMERICAN FUND Alger American Balanced Portfolio - Class S Shares 2004 2,772 1.014 - 1.093 3,008 0.59 1.55 - 2.65 1.70 - 10.58 2003 281 1.059 - 1.065 298 - 1.55 - 2.50 2.72 - 8.04 Alger American Leveraged AllCap Portfolio - Class S Shares 2004 505 1.067 - 1.194 596 - 1.55 - 2.45 2.25 - 6.13 2003 82 1.120 - 1.123 92 - 1.70 - 2.10 (0.09) - 1.73 THE TRAVELERS SERIES TRUST Convertible Securities Portfolio 2004 1,846 1.125 - 1.194 2,190 4.78 1.55 - 2.50 3.40 - 5.16 2003 242 1.134 - 1.141 275 3.63 1.55 - 2.50 3.65 - 6.34 Disciplined Mid Cap Stock Portfolio 2004 1,829 1.121 - 1.490 2,704 0.56 1.55 - 2.50 6.01 - 14.62 2003 82 1.295 - 1.300 106 0.53 1.55 - 2.10 2.05 - 10.36 Equity Income Portfolio 2004 3,428 1.102 - 1.336 4,537 3.03 1.55 - 2.50 3.95 - 12.82 2003 114 1.232 - 1.235 141 1.64 1.55 - 1.95 7.60 - 8.33 Federated High Yield Portfolio 2004 2,440 1.078 - 1.205 2,915 15.57 1.55 - 2.50 1.03 - 9.21 2003 314 1.103 - 1.109 347 19.03 1.55 - 2.30 2.41 - 6.45 Federated Stock Portfolio 2004 350 1.079 - 1.362 469 3.12 1.55 - 2.50 (0.07) - 10.84 2003 32 1.243 - 1.247 40 1.41 2.10 - 2.50 11.98 - 12.14 Large Cap Portfolio 2004 1,051 1.048 - 1.247 1,275 2.34 1.55 - 2.40 1.81 - 10.67 2003 9 1.183 10 0.37 2.30 3.95 Lazard International Stock Portfolio 2004 1,109 1.145 - 1.443 1,577 5.07 1.55 - 2.50 2.05 - 17.26 2003 54 1.260 - 1.263 68 3.35 1.95 - 2.30 7.69 - 15.98 Merrill Lynch Large Cap Core Portfolio 2004 1,024 1.230 - 1.325 1,346 2.68 1.55 - 2.50 0.00 - 16.02 2003 32 1.156 - 1.161 37 1.43 1.55 - 2.30 3.03 - 9.35 MFS Emerging Growth Portfolio 2004 909 1.081 - 1.328 1,189 - 1.55 - 2.50 1.67 - 14.77 2003 42 1.194 - 1.197 50 - 1.55 - 1.95 2.84 - 4.63 MFS Mid Cap Growth Portfolio 2004 1,205 1.075 - 1.440 1,679 - 1.55 - 2.30 11.44 - 17.87 2003 116 1.276 - 1.282 149 - 1.55 - 2.30 0.31 - 15.37 MFS Value Portfolio 2004 1,347 1.104 - 1.128 1,495 3.54 1.55 - 2.50 3.06 - 15.09 Pioneer Fund Portfolio 2004 288 1.283 - 1.304 374 2.82 1.55 - 2.50 0.63 - 10.27 2003 11 1.188 - 1.192 13 2.81 1.55 - 1.95 0.08 - 11.96
-172- NOTES TO FINANCIAL STATEMENTS - CONTINUED 7. FINANCIAL HIGHLIGHTS (CONTINUED)
EXPENSE TOTAL YEAR UNIT VALUE NET INVESTMENT(1) RATIO(2) RETURN(3) ENDED UNITS LOWEST TO ASSETS INCOME LOWEST TO LOWEST TO DEC 31 (000S) HIGHEST ($) ($000S) RATIO (%) HIGHEST (%) HIGHEST (%) ------ ------ ------------- ------- ------------- ----------- -------------- THE TRAVELERS SERIES TRUST (CONTINUED) Social Awareness Stock Portfolio 2004 267 1.039 - 1.077 278 1.43 1.55 - 2.50 0.00 - 12.42 Travelers Quality Bond Portfolio 2004 4,638 1.000 - 1.033 4,758 11.05 1.55 - 2.60 0.19 - 1.77 2003 301 1.009 - 1.015 305 5.54 1.55 - 2.50 (1.07) - 3.05 U.S. Government Securities Portfolio 2004 1,566 1.040 - 1.074 1,641 10.09 1.55 - 2.60 (0.10) - 4.39 TRAVELERS SERIES FUND INC. AIM Capital Appreciation Portfolio 2004 931 1.054 - 1.286 1,180 0.37 1.55 - 2.50 0.96 - 10.23 2003 43 1.223 - 1.226 53 - 1.55 - 1.95 2.94 - 7.45 MFS Total Return Portfolio 2004 10,055 1.095 - 1.236 12,338 6.31 1.55 - 2.50 5.96 - 9.77 2003 493 1.122 - 1.126 554 4.17 1.55 - 2.10 4.96 - 6.85 Pioneer Strategic Income Portfolio 2004 2,089 1.079 - 1.106 2,263 21.68 1.55 - 2.50 1.98 - 11.34 SB Adjustable Rate Income Portfolio - Class I Shares 2004 1,531 0.983 - 0.999 1,515 2.81 1.55 - 2.60 (0.91) - (0.10) 2003 24 0.998 - 0.999 24 0.46 1.55 - 1.70 0.00 - 0.10 Strategic Equity Portfolio 2004 338 1.317 - 1.334 448 3.35 1.55 - 2.30 3.76 - 10.27 2003 54 1.223 - 1.229 66 - 1.55 - 2.30 6.34 - 7.28 VAN KAMPEN LIFE INVESTMENT TRUST Comstock Portfolio - Class II Shares 2004 3,433 1.133 - 1.458 4,944 0.31 1.55 - 2.50 3.91 - 15.62 2003 229 1.255 - 1.261 288 - 1.55 - 2.30 6.90 - 14.05 Enterprise Portfolio - Class II Shares 2004 126 1.203 - 1.214 152 0.04 1.55 - 2.10 1.77 - 5.80 2003 21 1.185 - 1.188 25 - 1.55 - 1.95 2.78 - 5.79 VARIABLE INSURANCE PRODUCTS FUND II Contrafund(R) Portfolio - Service 2004 4,082 1.107 - 1.406 5,658 0.03 1.55 - 2.50 5.13 - 16.00 Class 2 2003 98 1.234 - 1.240 121 - 1.55 - 2.30 0.24 - 16.70 VARIABLE INSURANCE PRODUCTS FUND III Dynamic Capital Appreciation Portfolio - Service Class 2 2004 387 1.042 - 1.182 454 - 1.55 - 2.50 (0.85) - 16.29 2003 115 1.181 - 1.185 136 - 1.55 - 2.10 3.32 - 7.36 Mid Cap Portfolio - Service Class 2 2004 4,744 1.227 - 1.732 8,105 - 1.55 - 2.50 14.03 - 25.97 2003 135 1.402 - 1.411 190 - 1.55 - 2.50 5.22 - 12.57
(1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from th(e) underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccount invests. (2) These amounts represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund have been excluded. (3) These amounts represent the total return for the period indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented. -173- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003
CAPITAL APPRECIATION HIGH YIELD BOND MANAGED ASSETS FUND TRUST TRUST -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 6,582 -- -- -- -- -- Accumulation units purchased and transferred from other funding options 1,173,694 6,582 1,490,424 -- 1,215,061 -- Accumulation units redeemed and transferred to other funding options . (8,521) -- (29,027) -- (2,483) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,171,755 6,582 1,461,397 -- 1,212,578 -- =========== =========== =========== =========== =========== ===========
AIM V.I. CAPITAL AIM V.I. MID CAP MONEY MARKET APPRECIATION FUND - CORE EQUITY FUND - PORTFOLIO SERIES II SERIES II -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 622,533 -- 76,089 -- 203,511 -- Accumulation units purchased and transferred from other funding options 20,057,944 718,867 2,389,788 83,626 945,730 203,513 Accumulation units redeemed and transferred to other funding options . (11,043,367) (96,334) (86,043) (7,537) (78,557) (2) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 9,637,110 622,533 2,379,834 76,089 1,070,684 203,511 =========== =========== =========== =========== =========== ===========
ALLIANCEBERNSTEIN AIM V.I. UTILITIES PREMIER GROWTH GLOBAL GROWTH FUND - FUND PORTFOLIO - CLASS B CLASS 2 SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 66,738 -- 153,761 -- 125,948 -- Accumulation units purchased and transferred from other funding options 466,765 67,096 1,229,552 153,761 4,093,327 126,153 Accumulation units redeemed and transferred to other funding options . (8,581) (358) (91,138) -- (74,005) (205) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 524,922 66,738 1,292,175 153,761 4,145,270 125,948 =========== =========== =========== =========== =========== ===========
CREDIT SUISSE GROWTH FUND - GROWTH-INCOME FUND - TRUST EMERGING MARKETS CLASS 2 SHARES CLASS 2 SHARES PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 378,903 -- 296,300 -- 60,895 -- Accumulation units purchased and transferred from other funding options 13,733,954 379,722 12,071,744 298,135 579,469 61,028 Accumulation units redeemed and transferred to other funding options . (330,765) (819) (216,731) (1,835) (25,985) (133) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 13,782,092 378,903 12,151,313 296,300 614,379 60,895 =========== =========== =========== =========== =========== ===========
-174- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
CREDIT SUISSE TRUST GLOBAL POST-VENTURE DELAWARE VIP REIT DREYFUS MIDCAP STOCK CAPITAL PORTFOLIO SERIES-- STANDARD CLASS PORTFOLIO - SERVICE SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 10,694 -- 132,894 -- 224,081 -- Accumulation units purchased and transferred from other funding options 406,054 10,758 3,565,787 132,947 2,315,483 224,447 Accumulation units redeemed and transferred to other funding options . (121,836) (64) (60,885) (53) (163,604) (366) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 294,912 10,694 3,637,796 132,894 2,375,960 224,081 =========== =========== =========== =========== =========== ===========
DREYFUS SOCIALLY RESPONSIBLE DREYFUS VIF DREYFUS VIF GROWTH FUND, INC.- APPRECIATION PORTFOLIO - DEVELOPING LEADERS SERVICE SHARES INITIAL SHARES PORTFOLIO - INITIAL SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 64,305 -- 123,018 -- 97,748 -- Accumulation units purchased and transferred from other funding options 61,034 64,305 761,122 123,019 2,833,416 97,766 Accumulation units redeemed and transferred to other funding options . (59,633) -- (10,410) (1) (63,871) (18) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 65,706 64,305 873,730 123,018 2,867,293 97,748 =========== =========== =========== =========== =========== ===========
FRANKLIN RISING DIVIDENDS SECURITIES FRANKLIN SMALL CAP MUTUAL SHARES SECURITIES FUND - CLASS 2 SHARES FUND - CLASS 2 SHARES FUND - CLASS 2 SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 67,617 -- 121,234 -- 110,577 -- Accumulation units purchased and transferred from other funding options 4,642,561 67,617 1,655,347 122,400 1,606,929 111,216 Accumulation units redeemed and transferred to other funding options . (149,202) -- (13,312) (1,166) (14,063) (639) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 4,560,976 67,617 1,763,269 121,234 1,703,443 110,577 =========== =========== =========== =========== =========== ===========
TEMPLETON DEVELOPING TEMPLETON FOREIGN TEMPLETON GROWTH MARKETS SECURITIES FUND - SECURITIES FUND - SECURITIES FUND - CLASS 2 SHARES CLASS 2 SHARES CLASS 2 SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 11,635 -- 194,907 -- 117,813 -- Accumulation units purchased and transferred from other funding options 1,743,716 11,635 3,285,371 194,907 3,076,818 117,928 Accumulation units redeemed and transferred to other funding options . (13,062) -- (90,109) -- (42,743) (115) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,742,289 11,635 3,390,169 194,907 3,151,888 117,813 =========== =========== =========== =========== =========== ===========
-175- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
SALOMON BROTHERS VARIABLE SALOMON BROTHERS EQUITY INDEX PORTFOLIO - AGGRESSIVE GROWTH VARIABLE AGGRESSIVE GROWTH CLASS II SHARES FUND - CLASS I SHARES FUND - CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 239,466 -- 122,019 -- 146,454 -- Accumulation units purchased and transferred from other funding options 5,145,859 239,482 2,245,735 122,020 2,394,035 147,702 Accumulation units redeemed and transferred to other funding options . (202,142) (16) (158,307) (1) (105,098) (1,248) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 5,183,183 239,466 2,209,447 122,019 2,435,391 146,454 =========== =========== =========== =========== =========== ===========
SALOMON BROTHERS VARIABLE GROWTH & INCOME BALANCED PORTFOLIO - GLOBAL LIFE SCIENCES FUND - CLASS I SHARES SERVICE SHARES PORTFOLIO - SERVICE SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 56,907 -- 48,380 -- 14,757 -- Accumulation units purchased and transferred from other funding options 827,045 56,907 219,488 48,382 144,376 14,757 Accumulation units redeemed and transferred to other funding options . (5,503) -- (287) (2) (1,741) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 878,449 56,907 267,581 48,380 157,392 14,757 =========== =========== =========== =========== =========== ===========
WORLDWIDE GROWTH GLOBAL TECHNOLOGY PORTFOLIO - LAZARD RETIREMENT PORTFOLIO - SERVICE SHARES SERVICE SHARES SMALL CAP PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 8,927 -- 30,286 -- 58,301 -- Accumulation units purchased and transferred from other funding options 276,272 8,927 76,275 30,286 1,429,245 58,301 Accumulation units redeemed and transferred to other funding options . (5,740) -- (695) -- (38,108) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 279,459 8,927 105,866 30,286 1,449,438 58,301 =========== =========== =========== =========== =========== ===========
MERRILL LYNCH GROWTH AND INCOME MID-CAP VALUE GLOBAL ALLOCATION V.I. PORTFOLIO PORTFOLIO FUND - CLASS III -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 169,182 -- 108,162 -- -- -- Accumulation units purchased and transferred from other funding options 3,066,981 169,465 3,039,846 108,167 1,109,255 -- Accumulation units redeemed and transferred to other funding options . (56,006) (283) (58,952) (5) (351) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 3,180,157 169,182 3,089,056 108,162 1,108,904 -- =========== =========== =========== =========== =========== ===========
-176- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
MERRILL LYNCH OPPENHEIMER OPPENHEIMER VALUE OPPORTUNITIES V.I. CAPITAL APPRECIATION GLOBAL SECURITIES FUND - CLASS III FUND/VA - SERVICE SHARES FUND/VA - SERVICE SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 151,189 -- 127,212 -- Accumulation units purchased and transferred from other funding options 1,497,593 -- 1,874,487 151,189 2,352,858 129,470 Accumulation units redeemed and transferred to other funding options . (35,606) -- (10,692) -- (62,450) (2,258) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,461,987 -- 2,014,984 151,189 2,417,620 127,212 =========== =========== =========== =========== =========== ===========
OPPENHEIMER MAIN STREET FUND/VA - REAL RETURN PORTFOLIO - TOTAL RETURN PORTFOLIO - SERVICE SHARES ADMINISTRATIVE CLASS ADMINISTRATIVE CLASS -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 331,369 -- 649,327 -- Accumulation units purchased and transferred from other funding options 1,464,400 -- 4,001,455 345,254 8,073,076 650,309 Accumulation units redeemed and transferred to other funding options . (4,499) -- (144,446) (13,885) (170,510) (982) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,459,901 -- 4,188,378 331,369 8,551,893 649,327 =========== =========== =========== =========== =========== ===========
PIONEER AMERICA PIONEER BALANCED PIONEER EMERGING MARKETS INCOME VCT PORTFOLIO - VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 94,629 -- 97,262 -- 54,714 -- Accumulation units purchased and transferred from other funding options 3,889,897 94,629 2,365,425 97,262 1,537,840 59,367 Accumulation units redeemed and transferred to other funding options . (272,412) -- (148,918) -- (36,011) (4,653) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 3,712,114 94,629 2,313,769 97,262 1,556,543 54,714 =========== =========== =========== =========== =========== ===========
PIONEER EQUITY INCOME PIONEER EUROPE PIONEER FUND VCT PORTFOLIO - VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 100,767 -- 19,083 -- 336,175 -- Accumulation units purchased and transferred from other funding options 2,990,996 100,767 203,463 19,083 3,348,056 344,587 Accumulation units redeemed and transferred to other funding options . (70,331) -- (2,334) -- (187,189) (8,412) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 3,021,432 100,767 220,212 19,083 3,497,042 336,175 =========== =========== =========== =========== =========== ===========
-177- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
PIONEER PIONEER GROWTH SHARES PIONEER HIGH YIELD INTERNATIONAL VALUE VCT PORTFOLIO - VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 76,632 -- 332,212 -- 16,169 -- Accumulation units purchased and transferred from other funding options 755,869 76,632 6,769,274 341,706 507,661 16,169 Accumulation units redeemed and transferred to other funding options . (33,017) -- (789,358) (9,494) (19,864) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 799,484 76,632 6,312,128 332,212 503,966 16,169 =========== =========== =========== =========== =========== ===========
PIONEER OAK RIDGE PIONEER PAPP PIONEER MID CAP VALUE LARGE CAP GROWTH AMERICA-PACIFIC RIM VCT PORTFOLIO - VCT PORTFOLIO - FUND VCT - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 205,298 -- -- -- -- -- Accumulation units purchased and transferred from other funding options 2,717,271 238,853 1,462,824 -- 475,877 -- Accumulation units redeemed and transferred to other funding options . (314,001) (33,555) (7,450) -- (87) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 2,608,568 205,298 1,455,374 -- 475,790 -- =========== =========== =========== =========== =========== ===========
PIONEER PAPP SMALL & MID CAP GROWTH PIONEER REAL ESTATE PIONEER SMALL CAP VALUE VCT PORTFOLIO - SHARES VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 99,485 -- 182,499 -- Accumulation units purchased and transferred from other funding options 1,044,757 -- 1,847,415 100,989 1,300,244 184,086 Accumulation units redeemed and transferred to other funding options . (251,226) -- (71,659) (1,504) (27,756) (1,587) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 793,531 -- 1,875,241 99,485 1,454,987 182,499 =========== =========== =========== =========== =========== ===========
PIONEER SMALL COMPANY PIONEER STRATEGIC INCOME PIONEER VALUE VCT PORTFOLIO - VCT PORTFOLIO - VCT PORTFOLIO - CLASS II SHARES CLASS II SHARES CLASS II SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 16,012 -- 552,417 -- 76,161 -- Accumulation units purchased and transferred from other funding options 242,472 17,228 7,248,404 563,274 2,498,123 76,161 Accumulation units redeemed and transferred to other funding options . (29,004) (1,216) (787,905) (10,857) (14,815) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 229,480 16,012 7,012,916 552,417 2,559,469 76,161 =========== =========== =========== =========== =========== ===========
-178- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
PUTNAM VT PUTNAM VT INTERNATIONAL EQUITY SMALL CAP VALUE FUND - CLASS IB SHARES FUND - CLASS IB SHARES ALL CAP FUND - CLASS I -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 73,272 -- 118,549 -- 186,123 -- Accumulation units purchased and transferred from other funding options 270,696 73,499 3,459,387 118,654 1,785,381 186,126 Accumulation units redeemed and transferred to other funding options . (17,037) (227) (56,161) (105) (46,288) (3) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 326,931 73,272 3,521,775 118,549 1,925,216 186,123 =========== =========== =========== =========== =========== ===========
LARGE CAP GROWTH SMALL CAP GROWTH INVESTORS FUND - CLASS I FUND - CLASS I FUND - CLASS I -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 54,887 -- 106,423 -- 191,816 -- Accumulation units purchased and transferred from other funding options 1,218,182 54,921 1,294,801 107,006 1,452,461 192,354 Accumulation units redeemed and transferred to other funding options . 3,701 (34) (42,614) (583) (45,334) (538) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,276,770 54,887 1,358,610 106,423 1,598,943 191,816 =========== =========== =========== =========== =========== ===========
SCUDDER REAL ESTATE 21ST CENTURY TOTAL RETURN SECURITIES PORTFOLIO - GROWTH PORTFOLIO - FUND - CLASS II CLASS B CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 80,253 -- 216,587 -- 54,586 -- Accumulation units purchased and transferred from other funding options 1,089,545 80,255 2,031,778 216,813 287,877 54,641 Accumulation units redeemed and transferred to other funding options . (45,294) (2) (162,873) (226) (52,008) (55) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,124,504 80,253 2,085,492 216,587 290,455 54,586 =========== =========== =========== =========== =========== ===========
CAPITAL GROWTH GLOBAL DISCOVERY GROWTH AND INCOME PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 66,315 -- 62,830 -- 102,343 -- Accumulation units purchased and transferred from other funding options 728,558 66,315 947,165 63,908 2,570,046 102,344 Accumulation units redeemed and transferred to other funding options . (3,272) -- (183,747) (1,078) (134,904) (1) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 791,601 66,315 826,248 62,830 2,537,485 102,343 =========== =========== =========== =========== =========== ===========
-179- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
SCUDDER HEALTH SCIENCES INTERNATIONAL AGGRESSIVE GROWTH PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 100,809 -- 52,682 -- 16,621 -- Accumulation units purchased and transferred from other funding options 1,187,404 102,443 1,343,272 52,743 397,918 16,621 Accumulation units redeemed and transferred to other funding options . (48,834) (1,634) (64,415) (61) (1,812) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,239,379 100,809 1,331,539 52,682 412,727 16,621 =========== =========== =========== =========== =========== ===========
SCUDDER SCUDDER CONSERVATIVE INCOME SCUDDER BLUE CHIP PORTFOLIO - STRATEGY PORTFOLIO - FIXED INCOME CLASS B CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 113,219 -- -- -- 188,695 -- Accumulation units purchased and transferred from other funding options 2,315,154 113,219 887,937 -- 5,191,587 189,486 Accumulation units redeemed and transferred to other funding options . (112,490) -- (9,790) -- (265,125) (791) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 2,315,883 113,219 878,147 -- 5,115,157 188,695 =========== =========== =========== =========== =========== ===========
SCUDDER SCUDDER SCUDDER GLOBAL BLUE CHIP GROWTH & INCOME STRATEGY GROWTH PORTFOLIO - PORTFOLIO - CLASS B PORTFOLIO - CLASS B CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 108,631 -- -- -- 65,208 -- Accumulation units purchased and transferred from other funding options 1,088,669 108,631 4,091,563 -- 1,102,488 65,208 Accumulation units redeemed and transferred to other funding options . (21,161) -- (3,588) -- (28,960) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,176,139 108,631 4,087,975 -- 1,138,736 65,208 =========== =========== =========== =========== =========== ===========
SCUDDER SCUDDER SCUDDER INCOME & GROWTH GROWTH STRATEGY HIGH INCOME PORTFOLIO - STRATEGY PORTFOLIO - PORTFOLIO - CLASS B CLASS B CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 185,631 -- -- -- Accumulation units purchased and transferred from other funding options 4,470,323 -- 2,707,426 186,757 2,308,795 -- Accumulation units redeemed and transferred to other funding options . (41,209) -- (150,698) (1,126) (10,657) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 4,429,114 -- 2,742,359 185,631 2,298,138 -- =========== =========== =========== =========== =========== ===========
-180- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
SCUDDER SCUDDER SCUDDER INTERNATIONAL SELECT MERCURY LARGE CAP MONEY MARKET EQUITY PORTFOLIO - CLASS B CORE PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 67,670 -- -- -- 290,270 -- Accumulation units purchased and transferred from other funding options 1,615,935 67,736 55,600 -- 7,161,317 436,207 Accumulation units redeemed and transferred to other funding options . (103,146) (66) -- -- (5,090,226) (145,937) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,580,459 67,670 55,600 -- 2,361,361 290,270 =========== =========== =========== =========== =========== ===========
SCUDDER SCUDDER SCUDDER SMALL CAP GROWTH STRATEGIC INCOME TECHNOLOGY GROWTH PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 86,978 -- 267,848 -- 114,233 -- Accumulation units purchased and transferred from other funding options 924,048 86,978 2,282,164 267,914 850,002 114,360 Accumulation units redeemed and transferred to other funding options . (40,684) -- (58,140) (66) (146,127) (127) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 970,342 86,978 2,491,872 267,848 818,108 114,233 =========== =========== =========== =========== =========== ===========
SCUDDER SCUDDER SVS DAVIS TEMPLETON FOREIGN VALUE TOTAL RETURN VENTURE VALUE PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 40,184 -- 184,590 -- Accumulation units purchased and transferred from other funding options 98,558 -- 2,503,336 40,184 4,014,283 185,731 Accumulation units redeemed and transferred to other funding options . -- -- (170,001) -- (78,135) (1,141) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 98,558 -- 2,373,519 40,184 4,120,738 184,590 =========== =========== =========== =========== =========== ===========
SVS DREMAN SVS DREMAN SVS DREMAN FINANCIAL SERVICES HIGH RETURN EQUITY SMALL CAP VALUE PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 66,611 -- 182,473 -- 200,824 -- Accumulation units purchased and transferred from other funding options 1,174,184 66,669 4,516,450 183,725 2,479,808 201,202 Accumulation units redeemed and transferred to other funding options . (12,683) (58) (179,316) (1,252) (141,708) (378) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,228,112 66,611 4,519,607 182,473 2,538,924 200,824 =========== =========== =========== =========== =========== ===========
-181- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
SVS EAGLE SCUDDER FOCUSED LARGE CAP SVS FOCUS GOVERNMENT & AGENCY GROWTH PORTFOLIO - VALUE & GROWTH SECURITIES PORTFOLIO - CLASS B PORTFOLIO - CLASS B CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 104,044 -- 40,548 -- 181,873 -- Accumulation units purchased and transferred from other funding options 1,103,867 104,310 419,577 40,609 1,179,780 193,250 Accumulation units redeemed and transferred to other funding options . (51,514) (266) (2,129) (61) (137,786) (11,377) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,156,397 104,044 457,996 40,548 1,223,867 181,873 =========== =========== =========== =========== =========== ===========
SCUDDER SVS INVESCO LARGE CAP VALUE SVS INDEX 500 DYNAMIC GROWTH PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 122,380 -- 228,971 -- 117,558 -- Accumulation units purchased and transferred from other funding options 1,874,376 123,494 2,833,049 230,186 71,931 118,059 Accumulation units redeemed and transferred to other funding options . (143,312) (1,114) (91,858) (1,215) (88,055) (501) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,853,444 122,380 2,970,162 228,971 101,434 117,558 =========== =========== =========== =========== =========== ===========
SVS JANUS SVS JANUS SVS MFS GROWTH AND INCOME GROWTH OPPORTUNITIES STRATEGIC VALUE PORTFOLIO - CLASS B PORTFOLIO - CLASS B PORTFOLIO - CLASS B -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 204,246 -- 5,973 -- 88,240 -- Accumulation units purchased and transferred from other funding options 1,192,873 204,382 256,676 5,973 1,765,890 88,240 Accumulation units redeemed and transferred to other funding options . (251,115) (136) (9,352) -- (278,523) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,146,004 204,246 253,297 5,973 1,575,607 88,240 =========== =========== =========== =========== =========== ===========
SVS OAK SVS TURNER ALGER AMERICAN STRATEGIC EQUITY MID CAP GROWTH BALANCED PORTFOLIO - PORTFOLIO - CLASS B PORTFOLIO - CLASS B CLASS S SHARES -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 117,991 -- 91,994 -- 280,943 -- Accumulation units purchased and transferred from other funding options 730,186 120,301 1,063,278 93,802 2,657,964 281,065 Accumulation units redeemed and transferred to other funding options . (33,327) (2,310) (47,982) (1,808) (166,691) (122) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 814,850 117,991 1,107,290 91,994 2,772,216 280,943 =========== =========== =========== =========== =========== ===========
-182- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
ALGER AMERICAN LEVERAGED ALLCAP CONVERTIBLE SECURITIES DISCIPLINED MID CAP PORTFOLIO - CLASS S SHARES PORTFOLIO STOCK PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 82,475 -- 241,933 -- 81,831 -- Accumulation units purchased and transferred from other funding options 539,669 82,564 1,636,088 241,933 1,754,248 81,831 Accumulation units redeemed and transferred to other funding options . (117,220) (89) (31,822) -- (6,967) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 504,924 82,475 1,846,199 241,933 1,829,112 81,831 =========== =========== =========== =========== =========== ===========
FEDERATED HIGH YIELD EQUITY INCOME PORTFOLIO PORTFOLIO FEDERATED STOCK PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 114,332 -- 313,685 -- 32,112 -- Accumulation units purchased and transferred from other funding options 3,353,037 115,871 2,170,892 313,965 374,211 32,112 Accumulation units redeemed and transferred to other funding options . (39,143) (1,539) (44,389) (280) (55,995) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 3,428,226 114,332 2,440,188 313,685 350,328 32,112 =========== =========== =========== =========== =========== ===========
MERRILL LYNCH LAZARD INTERNATIONAL LARGE CAP CORE LARGE CAP PORTFOLIO STOCK PORTFOLIO PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 8,694 -- 53,581 -- 32,021 -- Accumulation units purchased and transferred from other funding options 1,047,146 8,694 1,072,141 54,032 997,621 32,093 Accumulation units redeemed and transferred to other funding options . (5,240) -- (17,141) (451) (6,016) (72) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,050,600 8,694 1,108,581 53,581 1,023,626 32,021 =========== =========== =========== =========== =========== ===========
MFS EMERGING MFS MID CAP GROWTH PORTFOLIO GROWTH PORTFOLIO MFS VALUE PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 42,083 -- 116,174 -- -- -- Accumulation units purchased and transferred from other funding options 898,744 42,083 1,111,236 116,756 1,347,963 -- Accumulation units redeemed and transferred to other funding options . (31,542) -- (22,242) (582) (1,343) -- ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 909,285 42,083 1,205,168 116,174 1,346,620 -- =========== =========== =========== =========== =========== ===========
-183- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
SOCIAL AWARENESS TRAVELERS QUALITY PIONEER FUND PORTFOLIO STOCK PORTFOLIO BOND PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 10,664 -- -- -- 301,488 -- Accumulation units purchased and transferred from other funding options 280,369 10,666 266,571 -- 4,485,162 684,297 Accumulation units redeemed and transferred to other funding options . (2,675) (2) (67) -- (148,383) (382,809) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 288,358 10,664 266,504 -- 4,638,267 301,488 =========== =========== =========== =========== =========== ===========
U.S. GOVERNMENT AIM CAPITAL MFS TOTAL RETURN SECURITIES PORTFOLIO APPRECIATION PORTFOLIO PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 43,021 -- 492,920 -- Accumulation units purchased and transferred from other funding options 1,577,764 -- 896,464 43,641 9,820,049 522,537 Accumulation units redeemed and transferred to other funding options . (11,353) -- (8,548) (620) (258,153) (29,617) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 1,566,411 -- 930,937 43,021 10,054,816 492,920 =========== =========== =========== =========== =========== ===========
SB ADJUSTABLE RATE PIONEER STRATEGIC INCOME INCOME PORTFOLIO - PORTFOLIO CLASS I SHARES STRATEGIC EQUITY PORTFOLIO -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... -- -- 24,370 -- 53,886 -- Accumulation units purchased and transferred from other funding options 2,114,129 -- 2,564,589 24,462 364,886 54,657 Accumulation units redeemed and transferred to other funding options . (24,763) -- (1,057,980) (92) (80,772) (771) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 2,089,366 -- 1,530,979 24,370 338,000 53,886 =========== =========== =========== =========== =========== ===========
CONTRAFUND(R) COMSTOCK PORTFOLIO - ENTERPRISE PORTFOLIO - PORTFOLIO - CLASS II SHARES CLASS II SHARES SERVICE CLASS 2 -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 229,415 -- 20,751 -- 98,001 -- Accumulation units purchased and transferred from other funding options 3,262,101 229,834 106,481 20,935 4,028,994 98,003 Accumulation units redeemed and transferred to other funding options . (58,988) (419) (1,651) (184) (45,422) (2) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 3,432,528 229,415 125,581 20,751 4,081,573 98,001 =========== =========== =========== =========== =========== ===========
-184- NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. SCHEDULE OF ACCUMULATION UNITS FOR THE YEAR ENDED DECEMEBER 31, 2004 AND THE PERIOD JUNE 9, 2003 (DATE OPERATIONS COMMENCED) TO DECEMEBER 31, 2003 (CONTINUED)
DYNAMIC CAPITAL APPRECIATION PORTFOLIO - MID CAP PORTFOLIO - SERVICE CLASS 2 SERVICE CLASS 2 COMBINED -------------------------- ------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ---- ---- ---- ---- ---- ---- Accumulation units beginning of year ... 115,414 -- 134,700 -- 15,664,709 -- Accumulation units purchased and transferred from other funding options 272,609 115,414 4,715,642 135,353 303,957,590 16,456,893 Accumulation units redeemed and transferred to other funding options . (1,110) -- (106,808) (653) (27,974,516) (792,184) ----------- ----------- ----------- ----------- ----------- ----------- Accumulation units end of year ......... 386,913 115,414 4,743,534 134,700 291,647,783 15,664,709 =========== =========== =========== =========== =========== ===========
-185- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors of the Travelers Insurance Company and Owners of Variable Annuity Contracts of TIC Separate Account Eleven for Variable Annuities: We have audited the accompanying statement of assets and liabilities of TIC Separate Account Eleven for Variable Annuities as of December 31, 2004 and the related statement of operations, the statement of changes in net assets and financial highlights for the period June 9, 2003 (date operations commenced) to December 31, 2003 and for the year ended December 31, 2004. These financial statements and financial highlights are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the underlying funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of TIC Separate Account Eleven for Variable Annuities as of December 31, 2004, the results of its operations for the year then ended, the changes in the net assets and the financial highlights for the period June 9, 2003 (date operations commenced) to December 31, 2003 and for the year ended December 31, 2004, in conformity with accounting principles generally accepted in the United States of America. /s/ KPMG LLP Hartford, Connecticut March 16, 2005 -186- INDEPENDENT AUDITORS -------------------- KPMG LLP Hartford, Connecticut This report is prepared for the general information of contract owners and is not an offer of units of The Travelers Separate Account Eleven for Variable Annuities or shares of Separate Account Eleven's underlying funds. It should not be used in connection with any offer except in conjunction with the Prospectus for The Travelers Separate Account Eleven for Variable Annuities product(s) offered by The Travelers Life and Annuity Company and the Prospectuses for the underlying funds, which collectively contain all pertinent information, including additional information on charges and expenses. VG-SEP11 (Annual) (12-04) Printed in U.S.A. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholder The Travelers Insurance Company: We have audited the accompanying consolidated balance sheets of The Travelers Insurance Company and subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of income, changes in shareholder's equity, and cash flows for each of the years in the three-year period ended December 31, 2004. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Travelers Insurance Company and subsidiaries as of December 31, 2004 and 2003, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2004, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the consolidated financial statements, the Company changed its methods of accounting and reporting for certain nontraditional long-duration contracts and for separate accounts in 2004, variable interest entities in 2003, and for goodwill and intangible assets in 2002. /s/KPMG LLP Hartford, Connecticut March 28, 2005 1 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME ($ IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 ---- ---- ---- REVENUES Premiums $2,226 $2,327 $1,924 Net investment income 3,348 3,058 2,936 Realized investment gains (losses) 16 37 (322) Fee income 781 606 560 Other revenues 124 111 136 - --------------------------------------------------- ------------- ------------- ------------- Total Revenues 6,495 6,139 5,234 - --------------------------------------------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Current and future insurance benefits 1,971 2,102 1,711 Interest credited to contractholders 1,305 1,248 1,220 Amortization of deferred acquisition costs 649 501 393 General and administrative expenses 487 459 407 - --------------------------------------------------- ------------- ------------- ------------- Total Benefits and Expenses 4,412 4,310 3,731 - --------------------------------------------------- ------------- ------------- ------------- Income from operations before federal income taxes 2,083 1,829 1,503 - --------------------------------------------------- ------------- ------------- ------------- Federal income taxes Current 563 360 236 Deferred 39 111 185 - --------------------------------------------------- ------------- ------------- ------------- Total Federal Income Taxes 602 471 421 - --------------------------------------------------- ------------- ------------- ------------- Net Income $1,481 $1,358 $1,082 =================================================== ============= ============= =============
See Notes to Consolidated Financial Statements. 2 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ IN MILLIONS) AT DECEMBER 31, 2004 2003 - --------------------------------------------- ------------- ------------- ASSETS Fixed maturities, available for sale at fair value (including $2,468 and $2,170 subject to securities lending agreements) (cost $45,314; $40,119) $47,715 $42,323 Equity securities, at fair value (cost $322; $323) 367 362 Mortgage loans 2,124 1,886 Policy loans 1,121 1,135 Short-term securities 3,731 3,603 Trading securities, at fair value 1,360 1,707 Other invested assets 5,005 5,188 - --------------------------------------------- ------------- ------------- Total Investments 61,423 56,204 - --------------------------------------------- ------------- ------------- Cash 246 149 Investment income accrued 606 567 Premium balances receivable 177 165 Reinsurance recoverables 4,667 4,470 Deferred acquisition costs 4,949 4,395 Separate and variable accounts 31,327 26,972 Other assets 2,448 2,426 - --------------------------------------------- ------------- ------------- Total Assets $105,843 $95,348 - --------------------------------------------- ------------- ------------- LIABILITIES Contractholder funds $34,101 $30,252 Future policy benefits and claims 16,808 15,964 Separate and variable accounts 31,327 26,972 Deferred federal income taxes 2,220 2,030 Trading securities sold not yet purchased, at fair value 473 637 Other liabilities 6,609 6,136 - --------------------------------------------- ------------- ------------- Total Liabilities 91,538 81,991 - --------------------------------------------- ------------- ------------- SHAREHOLDER'S EQUITY Common stock, par value $2.50; 40 million shares authorized, issued and outstanding 100 100 Additional paid-in capital 5,449 5,446 Retained earnings 7,159 6,451 Accumulated other changes in equity from nonowner sources 1,597 1,360 - --------------------------------------------- ------------- ------------- Total Shareholder's Equity 14,305 13,357 - --------------------------------------------- ------------- ------------- Total Liabilities and Shareholder's Equity $105,843 $95,348 ============================================= ============= ============= See Notes to Consolidated Financial Statements. 3 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY ($ IN MILLIONS) FOR THE YEAR ENDED DECEMBER 31, - ----------------------------------------- ---------- ----------- ---------- COMMON STOCK 2004 2003 2002 - ----------------------------------------- ---------- ----------- ---------- Balance, beginning of year $100 $100 $100 Changes in common stock - - - - ----------------------------------------- ---------- ----------- ---------- Balance, end of year $100 $100 $100 ========================================= ========== =========== ========== - ----------------------------------------- ---------- ----------- ---------- ADDITIONAL PAID-IN CAPITAL - ----------------------------------------- ---------- ----------- ---------- Balance, beginning of year $5,446 $5,443 $3,864 Stock option tax benefit (expense) 3 3 (17) Capital contributed by parent - - 1,596 - ----------------------------------------- ---------- ----------- ---------- Balance, end of year $5,449 $5,446 $5,443 ========================================= ========== =========== ========== - ----------------------------------------- ---------- ----------- ---------- RETAINED EARNINGS - ----------------------------------------- ---------- ----------- ---------- Balance, beginning of year $6,451 $5,638 $5,142 Net income 1,481 1,358 1,082 Dividends to parent (773) (545) (586) - ----------------------------------------- ---------- ----------- ---------- Balance, end of year $7,159 $6,451 $5,638 ========================================= ========== =========== ========== - ----------------------------------------- ---------- ----------- ---------- ACCUMULATED OTHER CHANGES IN EQUITY FROM NONOWNER SOURCES - ----------------------------------------- ---------- ----------- ---------- Balance, beginning of year $1,360 $454 $74 Unrealized gains, net of tax 138 817 452 Foreign currency translation, net of tax 1 4 3 Derivative instrument hedging activity gains (losses), net of tax 98 85 (75) - ----------------------------------------- ---------- ----------- ---------- Balance, end of year $1,597 $1,360 $454 ========================================= ========== =========== ========== - ----------------------------------------- ---------- ----------- ---------- SUMMARY OF CHANGES IN EQUITY FROM NONOWNER SOURCES - ----------------------------------------- ---------- ----------- ---------- Net income $1,481 $1,358 $1,082 Other changes in equity from nonowner sources 237 906 380 - ----------------------------------------- ---------- ----------- ---------- Total changes in equity from nonowner sources $1,718 $2,264 $1,462 ========================================= ========== =========== ========== - ----------------------------------------- ---------- ----------- ---------- TOTAL SHAREHOLDER'S EQUITY - ----------------------------------------- ---------- ----------- ---------- Changes in total shareholder's equity $948 $1,722 $2,455 Balance, beginning of year 13,357 11,635 9,180 - ----------------------------------------- ---------- ----------- ---------- Balance, end of year $14,305 $13,357 $11,635 ========================================= ========== =========== ========== See Notes to Consolidated Financial Statements. 4 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS INCREASE (DECREASE) IN CASH ($ IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 - ---------------------------------------------------------- ----------- ------------ ---------- CASH FLOWS FROM OPERATING ACTIVITIES Premiums collected $2,218 $2,335 $1,917 Net investment income received 3,228 2,787 2,741 Other revenues received 901 335 384 Benefits and claims paid (1,367) (1,270) (1,218) Interest paid to contractholders (1,294) (1,226) (1,220) Operating expenses paid (1,646) (1,375) (1,310) Income taxes paid (262) (456) (197) Trading account investments (purchases), sales, net 226 (232) 76 Other (479) (84) (105) - ---------------------------------------------------------- ----------- ------------ ---------- Net Cash Provided by Operating Activities 1,525 814 1,068 - ---------------------------------------------------------- ----------- ------------ ---------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of investments Fixed maturities 6,833 7,446 4,459 Mortgage loans 655 358 374 Proceeds from sales of investments Fixed maturities 7,796 15,078 15,472 Equity securities 78 124 212 Mortgage loans 52 - - Real estate held for sale 55 5 26 Purchases of investments Fixed maturities (19,164) (26,766) (23,623) Equity securities (157) (144) (134) Mortgage loans (944) (317) (355) Policy loans, net 14 34 39 Short-term securities (purchases) sales, net (116) 814 (1,320) Other investments (purchases) sales, net 50 108 (69) Securities transactions in course of settlement, net 699 (618) 529 - ---------------------------------------------------------- ----------- ------------ ---------- Net Cash Used in Investing Activities (4,149) (3,878) (4,390) - ---------------------------------------------------------- ----------- ------------ ---------- CASH FLOWS FROM FINANCING ACTIVITIES Contractholder fund deposits 9,619 8,326 8,505 Contractholder fund withdrawals (6,125) (4,754) (4,729) Capital contribution by parent - - 172 Dividends to parent company (773) (545) (586) - ---------------------------------------------------------- ----------- ------------ ---------- Net Cash Provided by Financing Activities 2,721 3,027 3,362 - ---------------------------------------------------------- ----------- ------------ ---------- Net increase (decrease) in cash 97 (37) 40 Cash at December 31, previous year 149 186 146 - ---------------------------------------------------------- ----------- ------------ ---------- Cash at December 31, current year $246 $149 $186 ========================================================== =========== ============ ==========
See Notes to Consolidated Financial Statements. 5 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies used in the preparation of the accompanying financial statements follow. BASIS OF PRESENTATION The Travelers Insurance Company (TIC, together with its subsidiaries, the Company), is a wholly owned subsidiary of Citigroup Insurance Holding Corporation (CIHC), an indirect wholly owned subsidiary of Citigroup Inc. (Citigroup), a diversified global financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers around the world. The consolidated financial statements include the accounts of the Company and its insurance and non-insurance subsidiaries on a fully consolidated basis. The primary insurance entities of the Company are TIC and its subsidiaries, The Travelers Life and Annuity Company (TLAC), Primerica Life Insurance Company (Primerica Life), and its subsidiaries, Primerica Life Insurance Company of Canada, CitiLife Financial Limited (CitiLife) and National Benefit Life Insurance Company (NBL). Significant intercompany transactions and balances have been eliminated. The Company consolidates entities deemed to be variable interest entities when the Company is determined to be the primary beneficiary under Financial Accounting Standards Board (FASB) Interpretation No. 46, "Consolidation of Variable Interest Entities" (FIN 46). On January 31, 2005, Citigroup announced its intention to sell its Life Insurance and Annuities business, which includes TIC, TLAC and certain other businesses, to MetLife, Inc. Primerica Life and its subsidiaries will remain part of Citigroup. See Note 17. The financial statements and accompanying footnotes of the Company are prepared in conformity with U.S. generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and benefits and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the 2004 presentation. ACCOUNTING CHANGES ACCOUNTING AND REPORTING BY INSURANCE ENTERPRISES FOR CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND FOR SEPARATE ACCOUNTS On January 1, 2004, the Company adopted the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants Statement of Position 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" (SOP 03-1). The main components of SOP 03-1 provide guidance on accounting and reporting by insurance enterprises for separate account presentation, accounting for an insurer's interest in a separate account, transfers to a separate account, valuation of certain liabilities, contracts with death or other benefit features, contracts that provide annuitization benefits, and sales inducements to contract holders. 6 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following summarizes the more significant aspects of the Company's adoption of SOP 03-1: SEPARATE ACCOUNT PRESENTATION. SOP 03-1 requires separate account products to meet certain criteria in order to be treated as separate account products. For products not meeting the specified criteria, these assets and liabilities are included in the reporting entities' general account. The Company's adoption of SOP 03-1 resulted in the consolidation on the Company's balance sheet of approximately $500 million of investments previously held in separate and variable account assets and approximately $500 million of contractholder funds previously held in separate and variable account liabilities. VARIABLE ANNUITY CONTRACTS WITH GUARANTEED MINIMUM DEATH BENEFIT FEATURES. For variable annuity contracts with guaranteed minimum death benefit (GMDB) features, SOP 03-1 requires the reporting entity to categorize the contract as either an insurance or investment contract based upon the significance of mortality or morbidity risk. SOP 03-1 provides explicit guidance for calculating a reserve for insurance contracts, and provides that the reporting entity does not hold reserves for investment contracts (i.e., there is no significant mortality risk). The Company determined that the mortality risk on its GMDB features was not a significant component of the overall variable annuity product, and accordingly continued to classify these products as investment contracts. Prior to the adoption of SOP 03-1, the Company held a reserve of approximately $8 million to cover potential GMDB exposure. This reserve was released during the first quarter of 2004 as part of the implementation of SOP 03-1. RESERVING FOR UNIVERSAL LIFE AND VARIABLE UNIVERSAL LIFE CONTRACTS. SOP 03-1 requires that a reserve, in addition to the account balance, be established for certain insurance benefit features provided under universal life (UL) and variable universal life (VUL) products if the amounts assessed against the contract holder each period for the insurance benefit feature are assessed in a manner that is expected to result in profits in earlier years and losses in subsequent years from the insurance benefit function. The Company's UL and VUL products were reviewed to determine if an additional reserve is required under SOP 03-1. The Company determined that SOP 03-1 applied to some of its UL and VUL contracts with these features and established an additional reserve of approximately $1 million. SALES INDUCEMENTS TO CONTRACT HOLDERS. SOP 03-1 provides, prospectively, that sales inducements provided to contract holders meeting certain criteria are capitalized and amortized over the expected life of the contract as a component of benefit expense. During 2004, the Company capitalized sales inducements of approximately $50.6 million in accordance with SOP 03-1. These inducements relate to bonuses on certain products offered by the Company. For 2004, amortization of these capitalized amounts was insignificant. CONSOLIDATION OF VARIABLE INTEREST ENTITIES On January 1, 2004, the Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 46, "Consolidation of Variable Interest Entities (revised December 2003)," (FIN 46-R), which includes substantial changes from the original FIN 46. Included in these changes, the calculation of expected losses and expected residual returns has been altered to reduce the impact of decision maker and guarantor fees in the calculation of expected residual returns and expected losses. In addition, the definition of a variable interest has been changed in the revised guidance. FIN 46 and FIN 46-R change the method of determining 7 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) whether certain entities should be included in the Company's consolidated financial statements. The Company has evaluated the impact of applying FIN 46-R to existing VIEs in which it has variable interests. The effect of adopting FIN 46-R on the Company's consolidated balance sheet is immaterial. See Note 3. An entity is subject to FIN 46 and FIN 46-R and is called a variable interest entity (VIE) if it has (1) equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) equity investors that cannot make significant decisions about the entity's operations or that do not absorb the expected losses or receive the expected returns of the entity. All other entities are evaluated for consolidation under Statement of Financial Accounting Standards (SFAS) No. 94, "Consolidation of All Majority-Owned Subsidiaries" (SFAS 94). A VIE is consolidated by its primary beneficiary, which is the party involved with the VIE that has a majority of the expected losses or a majority of the expected residual returns or both. For any VIEs that must be consolidated under FIN 46 that were created before February 1, 2003, the assets, liabilities, and noncontrolling interests of the VIE are initially measured at their carrying amounts with any difference between the net amount added to the balance sheet and any previously recognized interest being recognized as the cumulative effect of an accounting change. If determining the carrying amounts is not practicable, fair value at the date FIN 46 first applies may be used to measure the assets, liabilities, and noncontrolling interests of the VIE. In October 2003, the FASB announced that the effective date of FIN 46 was deferred from July 1, 2003 to periods ending after December 15, 2003 for VIEs created prior to February 1, 2003. TIC elected to implement the provisions of FIN 46 in the 2003 third quarter, resulting in the consolidation of VIEs increasing both total assets and total liabilities by approximately $407 million. The implementation of FIN 46 encompassed a review of numerous entities to determine the impact of adoption and considerable judgment was used in evaluating whether or not a VIE should be consolidated. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" (SFAS 149). SFAS 149 amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." In particular, this Statement clarifies under what circumstances a contract with an initial net investment meets the characteristic of a derivative and when a derivative contains a financing component that warrants special reporting in the statement of cash flows. This Statement is generally effective for contracts entered into or modified after June 30, 2003 and did not have a significant impact on the Company's consolidated financial statements. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES On January 1, 2003, the Company adopted SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" (SFAS 146). SFAS 146 requires that a liability for costs associated with exit or disposal activities, other than in a business combination, be recognized when the liability is incurred. Previous generally accepted accounting principles provided for the recognition of such costs at the date of management's commitment to an exit plan. In addition, SFAS 146 requires that the liability be measured at fair value and be adjusted for changes in estimated cash flows. The provisions of the new standard are effective for exit or disposal activities initiated after December 31, 2002. The adoption of SFAS 146 did not affect the Company's consolidated financial statements. 8 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) STOCK-BASED COMPENSATION On January 1, 2003, the Company adopted the fair value recognition provisions of SFAS No. 123, "Accounting for Stock-Based Compensation" (SFAS 123), prospectively for all awards granted, modified, or settled after December 31, 2002. The prospective method is one of the adoption methods provided for under SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," issued in December 2002. SFAS 123 requires that compensation cost for all stock awards be calculated and recognized over the service period (generally equal to the vesting period). This compensation cost is determined using option pricing models, intended to estimate the fair value of the awards at the grant date. Similar to Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" (APB 25), the alternative method of accounting, an offsetting increase to stockholders' equity under SFAS 123 is recorded equal to the amount of compensation expense charged. During the 2004 first quarter, the Company changed its option valuation from the Black-Scholes model to the Binomial Method. The impact of this change was immaterial. Had the Company applied SFAS 123 prior to 2003 in accounting for Citigroup stock options, net income would have been the pro forma amounts indicated below:
------------------------------------------------- ---------------- ----------------- ---------------- ----------------- YEAR ENDED DECEMBER 31, 2004 2003 2002 ($ IN MILLIONS) ------------------------------------------------- ---------------- ----------------- ---------------- ----------------- Compensation expense related to stock option As reported $2 $2 $- plans, net of tax Pro forma 5 7 9 ------------------------------------------------- ---------------- ----------------- ---------------- ----------------- Net income As reported $1,481 $1,358 $1,082 Pro forma 1,478 1,353 1,073 ------------------------------------------------- ---------------- ----------------- ---------------- -----------------
BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Effective January 1, 2002, the Company adopted the FASB SFAS No. 141, "Business Combinations" (SFAS 141) and No. 142, "Goodwill and Other Intangible Assets" (SFAS 142). These standards change the accounting for business combinations by, among other things, prohibiting the prospective use of pooling-of-interests accounting and requiring companies to stop amortizing goodwill and certain intangible assets with an indefinite useful life created by business combinations accounted for using the purchase method of accounting. Instead, goodwill and intangible assets deemed to have an indefinite useful life will be subject to an annual review for impairment. Other intangible assets that are not deemed to have an indefinite useful life will continue to be amortized over their useful lives. See Note 5. FUTURE APPLICATION OF ACCOUNTING STANDARDS OTHER-THAN-TEMPORARY IMPAIRMENTS OF CERTAIN INVESTMENTS On September 30, 2004, the FASB voted unanimously to delay the effective date of Emerging Issues Task Force (EITF) No. 03-1, "The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments" (EITF 03-1). The delay applies to both debt and equity securities and specifically applies to impairments caused by interest rate and sector spreads. In addition, the provisions of EITF 03-1 that have been delayed relate to the requirements that a company declare its intent to hold the security to recovery and designate a recovery period in order to avoid recognizing an other-than-temporary impairment charge through earnings. 9 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The FASB will be issuing implementation guidance related to this topic. Once issued, the Company will evaluate the impact of adopting EITF 03-1. The disclosures required by EITF 03-1 are included in Note 3 to the Consolidated Financial Statements. STOCK-BASED COMPENSATION In December 2004, the FASB issued SFAS No. 123 (Revised 2004), "Share-Based Payment" (SFAS 123-R), which replaces the existing SFAS 123 and supersedes APB 25. SFAS 123-R requires companies to measure and record compensation expense for stock options and other share-based payment based on the instruments' fair value. SFAS 123-R is effective for interim and annual reporting periods beginning after June 15, 2005. The Company will adopt SFAS 123-R on July 1, 2005 by using a modified prospective approach. For unvested stock-based awards granted before January 1, 2003 (APB 25 awards), the Company will expense the fair value of the awards as at the grant date over the remaining vesting period. The impact of recognizing compensation expense for the unvested APB 25 awards will be immaterial in the third and fourth quarters of 2005. In addition, the amount of additional compensation expense that will be disclosed as the impact in the first and second quarters of 2005, as if the standard had been adopted as of January 1, 2005, but will not be recognized in earnings, will be immaterial. The Company continues to evaluate other aspects of adopting SFAS 123-R. ACCOUNTING POLICIES INVESTMENTS Fixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements (see Note 3), are classified as "available for sale" and are reported at fair value, with unrealized investment gains and losses, net of income taxes, credited or charged directly to shareholder's equity. Fair values of investments in fixed maturities are based on quoted market prices or dealer quotes. If quoted market prices are not available, discounted expected cash flows using market rates commensurate with the credit quality and maturity of the investment are used to determine fair value. Impairments are realized when investment losses in value are deemed other-than-temporary. The Company conducts a rigorous review each quarter to identify and evaluate investments that have possible indications of impairment. An investment in a debt or equity security is impaired if its fair value falls below its cost and the decline is considered other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been below cost; the financial condition and near-term prospects of the issuer; and the Company's ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. Changing economic conditions - global, regional, or related to specific issuers or industries - could result in other-than-temporary losses. Also included in fixed maturities are loan-backed and structured securities (including beneficial interests in securitized financial assets). Beneficial interests in securitized financial assets that are rated "A" and below are accounted for under the prospective method in accordance with EITF 99-20. Under the prospective method of accounting, the investments effective yield is based upon projected future cash flows. All other loan-backed and structured securities are amortized using the retrospective method. The effective yield used to determine amortization is calculated based upon actual and projected future cash flows. Equity securities, which include common and non-redeemable preferred stocks, are classified as "available for sale" and carried at fair value based primarily on quoted market prices. Changes in fair values of equity securities are charged or credited directly to shareholder's equity, net of income taxes. 10 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Mortgage loans are carried at amortized cost. A mortgage loan is considered impaired when it is probable that the Company will be unable to collect principal and interest amounts due. For mortgage loans that are determined to be impaired, a reserve is established for the difference between the amortized cost and fair market value of the underlying collateral. Cash received on impaired loans is reported as income. In estimating fair value, the Company uses interest rates reflecting the higher returns required in the current real estate financing market. Policy loans are carried at the amount of the unpaid balances that are not in excess of the net cash surrender values of the related insurance policies. The carrying value of policy loans, which have no defined maturities, is considered to be fair value. Short-term securities, consisting primarily of money market instruments and other debt issues purchased with a maturity of less than one year, are carried at amortized cost, which approximates fair value. Cash includes certificates of deposits and other time deposits with original maturities of less than 90 days. Trading securities and related liabilities are normally held for periods less than six months. These investments are marked to market with the change recognized in net investment income during the current period. Other invested assets include limited partnership and limited liability company interests in investment funds and real estate joint ventures accounted for on the equity method of accounting. Undistributed income is reported in net investment income. Also included in other invested assets is real estate held for sale, which is carried at the lower of cost or fair value less estimated cost to sell. Fair value of foreclosed properties is established at the time of foreclosure by internal analysis or external appraisers, using discounted cash flow analyses and other accepted techniques. Thereafter, an impairment for losses on real estate held for sale is established if the carrying value of the property exceeds its current fair value less estimated costs to sell. Also included in other invested assets is an investment in Citigroup Preferred Stock, which is recorded at cost. See Notes 13 and 17. Accrual of investment income is suspended on fixed maturities or mortgage loans that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only as payment is received. DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments, including financial futures contracts, swaps, interest rate caps, options and forward contracts, as a means of hedging exposure to interest rate changes, equity price changes, credit and foreign currency risk. The Company also uses derivative financial instruments to enhance portfolio income and replicate cash market investments. The Company, through Tribeca Citigroup Investments Ltd., holds and issues derivative instruments in conjunction with investment strategies designed to enhance portfolio returns. (See Note 11 for a more detailed description of the Company's derivative use.) Derivative financial instruments in a gain position are reported in the consolidated balance sheet in other assets, derivative financial instruments in a loss position are reported in the consolidated balance sheet in other liabilities and derivatives purchased to offset embedded derivatives on variable annuity contracts are reported in other invested assets. 11 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) To qualify for hedge accounting, the hedge relationship is designated and formally documented at inception detailing the particular risk management objective and strategy for the hedge. This documentation includes the item and risk that is being hedged, the derivative that is being used, as well as how effectiveness is being assessed. A derivative must be highly effective in accomplishing the objective of offsetting either changes in fair value or cash flows for the risk being hedged. For fair value hedges, in which derivatives hedge the fair value of assets and liabilities, changes in the fair value of derivatives are reflected in realized investment gains and losses, together with changes in the fair value of the related hedged item. The Company primarily hedges available-for-sale securities. For cash flow hedges, the accounting treatment depends on the effectiveness of the hedge. To the extent that derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives' fair value will be reported in accumulated other changes in equity from nonowner sources in shareholder's equity. These changes in fair value will be included in earnings of future periods when earnings are also affected by the variability of the hedged cash flows. To the extent these derivatives are not effective, the ineffective portion of the change in fair value is immediately included in realized investment gains and losses. For net investment hedges, in which derivatives hedge the foreign currency exposure of a net investment in a foreign operation, the accounting treatment will similarly depend on the effectiveness of the hedge. The effective portion of the change in fair value of the derivative, including any premium or discount, is reflected in the accumulated other changes in equity from nonowner sources as part of the foreign currency translation adjustment in shareholder's equity. The ineffective portion is reflected in realized investment gains and losses. The effectiveness of these hedging relationships is evaluated on a retrospective and prospective basis using quantitative measures of effectiveness. If a hedge relationship is found to be ineffective, it no longer qualifies for hedge accounting and any gains or losses attributable to such ineffectiveness as well as subsequent changes in fair value are recognized in realized investment gains and losses. For those fair value and cash flow hedge relationships that are terminated, hedge designations removed, or forecasted transactions that are no longer expected to occur, the hedge accounting treatment described in the paragraphs above will no longer apply. For fair value hedges, any changes to the hedged item remain as part of the basis of the asset or liability and are ultimately reflected as an element of the yield. For cash flow hedges, any changes in fair value of the derivative remains in the accumulated other changes in equity from nonowner sources in shareholder's equity and are included in earnings of future periods when earnings are also affected by the variability of the hedged cash flow. If the hedged relationship is discontinued because a forecasted transaction will not occur when scheduled, the accumulated changes in fair value of the derivative recorded in shareholder's equity are immediately reflected in realized investment gains and losses. The Company enters into derivative contracts that are economic hedges but do not qualify or are not designated as hedges for accounting purposes. These derivative contracts are carried at fair value, with changes in value reflected in realized investment gains and losses. 12 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FINANCIAL INSTRUMENTS WITH EMBEDDED DERIVATIVES The Company bifurcates an embedded derivative from the host contract where the economic characteristics and risks of the embedded instrument are not clearly and closely related to the economic characteristics and risks of the host contract, the entire instrument would not otherwise be remeasured at fair value and a separate instrument with the same terms of the embedded instrument would meet the definition of a derivative under SFAS 133. The Company purchases investments that have embedded derivatives, primarily convertible debt securities. These embedded derivatives are carried at fair value with changes in value reflected in realized investment gains and losses. Derivatives embedded in convertible debt securities are classified in the consolidated balance sheet as fixed maturity securities, consistent with the host instruments. The Company markets certain investment contracts that have embedded derivatives, primarily variable annuity contracts. These embedded derivatives are carried at fair value, with changes in value reflected in realized investment gains and losses. Derivatives embedded in variable annuity contracts are classified in the consolidated balance sheet as future policy benefits and claims. The Company may enter into derivative contracts to hedge the exposures represented by these embedded derivatives. These are economic hedges, however they do not qualify for hedge accounting. These derivatives are carried at fair value, with the changes in value reflected in realized gains and losses. INVESTMENT GAINS AND LOSSES Realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Realized gains and losses also result from fair value changes in derivative contracts that do not qualify, or are not designated, as hedging instruments, and the application of fair value hedges under SFAS 133. Impairments are recognized as realized losses when investment losses in value are deemed other-than-temporary. The Company conducts regular reviews to assess whether other-than-temporary losses exist. Also included in pre-tax revenues are gains and losses arising from the remeasurement of the local currency value of foreign investments to U.S. dollars, the functional currency of the Company. The foreign exchange effects of Canadian operations are included in unrealized gains and losses. DEFERRED ACQUISITION COSTS Deferred acquisition costs (DAC) represent costs that are deferred and amortized over the estimated life of the related insurance policies. DAC principally includes commissions and certain expenses related to policy issuance, underwriting and marketing, all of which vary with and are primarily related to the production of new business. The method for determining amortization of deferred acquisition costs varies by product type based upon three different accounting pronouncements: SFAS No. 60, "Accounting and Reporting by Insurance Enterprises" (SFAS 60), SFAS No. 91, "Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases" (SFAS 91) and SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long Duration Contracts and for Realized Gains and Losses from the Sale of Investments" (SFAS 97). DAC for deferred annuities, both fixed and variable, and payout annuities is amortized employing a level effective yield methodology per SFAS 91 as indicated by AICPA Practice Bulletin 8, generally over 10-15 13 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) years. An amortization rate is developed using the outstanding DAC balance and projected account balances and is applied to actual account balances to determine the amount of DAC amortization. The projected account balances are derived using a model that contains assumptions related to investment returns and persistency. The model rate is evaluated at least annually, and changes in underlying lapse and interest rate assumptions are to be treated retrospectively. Variances in expected equity market returns versus actual returns are treated prospectively and a new amortization pattern is developed so that the DAC balances will be amortized over the remaining estimated life of the business. DAC for universal life and COLI is amortized in relation to estimated gross profits from surrender charges, investment, mortality, and expense margins per SFAS 97, generally over 16-25 years. Actual profits can vary from management's estimates, resulting in increases or decreases in the rate of amortization. Re-estimates of gross profits, performed at least annually, result in retrospective adjustments to earnings by a cumulative charge or credit to income. DAC relating to traditional life, including term insurance, and health insurance is amortized in relation to anticipated premiums per SFAS 60, generally over 5-20 years. Assumptions as to the anticipated premiums are made at the date of policy issuance or acquisition and are consistently applied over the life of the policy. All DAC is reviewed at least annually to determine if it is recoverable from future income, including investment income, and if not recoverable, is charged to expenses. All other acquisition expenses are charged to operations as incurred. See Note 5. VALUE OF INSURANCE IN FORCE The value of insurance in force is an asset that represents the actuarially determined present value of anticipated profits to be realized from life insurance and annuities contracts at the date of acquisition using the same assumptions that were used for computing related liabilities where appropriate. The value of insurance in force was the actuarially determined present value of the projected future profits discounted at interest rates ranging from 14% to 18%. Traditional life insurance is amortized in relation to anticipated premiums; universal life is amortized in relation to estimated gross profits; and annuity contracts are amortized employing a level yield method. The value of insurance in force, which is included in other assets, is reviewed periodically for recoverability to determine if any adjustment is required. Adjustments, if any, are charged to income. See Note 5. SEPARATE AND VARIABLE ACCOUNTS Separate and variable accounts primarily represent funds for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholders. Each account has specific investment objectives. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. The assets of these accounts are carried at fair value. Amounts assessed to the separate account contractholders for management services are included in revenues. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues, and related liability increases are excluded from benefits and expenses. VARIABLE ANNUITY CONTRACTS WITH GUARANTEED MINIMUM DEATH BENEFIT FEATURES. For variable annuity contracts with GMDB features, SOP 03-1 requires the reporting entity to categorize the contract as either an insurance or investment contract based upon the significance of mortality or morbidity risk. SOP 03-1 14 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) provides explicit guidance for calculating a reserve for insurance contracts, and provides that the reporting entity does not hold reserves for investment contracts (i.e., there is no significant mortality risk). The Company determined that the mortality risk on its GMDB features was not a significant component of the overall variable annuity product, and accordingly continued to classify these products as investment contracts. Prior to the adoption of SOP 03-1, the Company held a reserve of approximately $8 million to cover potential GMDB exposure. This reserve was released during the first quarter of 2004 as part of the implementation of SOP 03-1. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets are included in other assets. The carrying amount of goodwill and other intangible assets is reviewed at least annually for indication of impairment in value that in the view of management would be other-than-temporary. If it is determined that goodwill and other intangible assets are unlikely to be recovered, impairment is recognized on a discounted cash flow basis. Upon adoption of SFAS 141 and SFAS 142, as of January 1, 2002, the Company stopped amortizing goodwill and intangible assets deemed to have an infinite useful life. Instead, these assets are subject to an annual review for impairment. Other intangible assets that are not deemed to have an indefinite useful life will continue to be amortized over their useful lives. See Note 5. CONTRACTHOLDER FUNDS Contractholder funds represent receipts from the issuance of universal life, COLI, pension investment, guaranteed investment contracts (GICs), and certain deferred annuity contracts. For universal life and COLI contracts, contractholder fund balances are increased by receipts for mortality coverage, contract administration, surrender charges and interest accrued, where one or more of these elements are not fixed or guaranteed. These balances are decreased by withdrawals, mortality charges and administrative expenses charged to the contractholder. Interest rates credited to contractholder funds related to universal life and COLI range from 3.5% to 5.4%, with a weighted average interest rate of 4.7%. Pension investment, GICs and certain annuity contracts do not contain significant insurance risks and are considered investment-type contracts. Contractholder fund balances are increased by receipts and credited interest, and reduced by withdrawals and administrative expenses charged to the contractholder. Interest rates credited to those investment-type contracts range from less than 1.0% to 8.0% with a weighted average interest rate of 4.2%. RESERVING FOR UNIVERSAL LIFE AND VARIABLE UNIVERSAL LIFE CONTRACTS. SOP 03-1 requires that a reserve, in addition to the account balance, be established for certain insurance benefit features provided under UL and VUL products if the amounts assessed against the contract holder each period for the insurance benefit feature are assessed in a manner that is expected to result in profits in earlier years and losses in subsequent years from the insurance benefit function. The Company's UL and VUL products were reviewed to determine if an additional reserve is required under SOP 03-1. The Company determined that SOP 03-1 applied to some of its UL and VUL contracts with these features and established an additional reserve of approximately $1 million. 15 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FUTURE POLICY BENEFITS Future policy benefits represent liabilities for future insurance policy benefits for payout annuities and traditional life products and are prepared in accordance with industry standards and U.S. GAAP. The annuity payout reserves are calculated using the mortality and interest assumptions used in the actual pricing of the benefit. Mortality assumptions are based on Company experience and are adjusted to reflect deviations such as substandard mortality in structured settlement benefits. The interest rates range from 1.7% to 8.7% with a weighted average of 6.5% for these products. Traditional life products include whole life and term insurance. Future policy benefits for traditional life products are estimated on the basis of actuarial assumptions as to mortality, persistency and interest, established at policy issue. Interest assumptions applicable to traditional life products range from 2.5% to 7.0%, with a weighted average of 5.3%. Assumptions established at policy issue as to mortality and persistency are based on the Company's experience, which, together with interest assumptions, include a margin for adverse deviation. Appropriate recognition has been given to experience rating and reinsurance. GUARANTY FUND AND OTHER INSURANCE RELATED ASSESSMENTS Included in other liabilities is the Company's estimate of its liability for guaranty fund and other insurance-related assessments. State guaranty fund assessments are based upon the Company's share of premium written or received in one or more years prior to an insolvency occurring in the industry. Once an insolvency has occurred, the Company recognizes a liability for such assessments if it is probable that an assessment will be imposed and the amount of the assessment can be reasonably estimated. At December 31, 2004 and 2003, the Company had a liability of $22.6 million and $22.5 million, respectively, for guaranty fund assessments and a related premium tax offset recoverable of $4.8 million and $4.6 million, respectively. The assessments are expected to be paid over a period of three to five years and the premium tax offsets are expected to be realized over a period of 10 to 15 years. PERMITTED STATUTORY ACCOUNTING PRACTICES The Company's insurance subsidiaries, domiciled principally in Connecticut and Massachusetts, prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. Permitted statutory accounting practices include practices not prescribed by the domiciliary state, but allowed by the domiciliary state regulatory authority. The Company does not have any permitted statutory accounting practices. PREMIUMS Premium income is reported for individual payout annuities, group close-out annuities, whole life and term insurance. The annuities premiums are recognized as revenue when collected. The life premiums are recognized as revenue when due. Premiums for contracts with a limited number of premium payments, due over a significantly shorter period than the period over which benefits are provided, are considered revenue when due. The portion of premium which is not required to provide for benefits and expenses is deferred and recognized in revenues in a constant relationship to insurance benefits in force. 16 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FEE INCOME Fee income is recognized on deferred annuity and universal life contracts for mortality, administrative and equity protection charges according to contract due dates. Fee income is recognized on variable annuity and universal life separate accounts either daily, monthly, quarterly or annually as per contract terms. OTHER REVENUES Other revenues include surrender penalties collected at the time of a contract surrender, and other miscellaneous charges related to annuity and universal life contracts recognized when received. Also included are revenues from unconsolidated non-insurance subsidiaries. Amortization of deferred income related to reinsured blocks of business are recognized in relation to anticipated premiums and are reported in other revenues. CURRENT AND FUTURE INSURANCE BENEFITS Current and future insurance benefits represent charges for mortality and morbidity related to fixed annuities, universal life, term life and health insurance benefits. INTEREST CREDITED TO CONTRACTHOLDERS Interest credited to contractholders represents amounts earned by universal life, COLI, pension investment, GICs and certain deferred annuity contracts in accordance with contract provisions. FEDERAL INCOME TAXES The provision for federal income taxes is comprised of two components, current income taxes and deferred income taxes. Deferred federal income taxes arise from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. 2. OPERATING SEGMENTS The Company has two reportable business segments that are separately managed due to differences in products, services, marketing strategy and resource management. The business of each segment is maintained and reported through separate legal entities within the Company. The management groups of each segment report separately to the common ultimate parent, Citigroup Inc. These business segments are Travelers Life & Annuity (TLA) and Primerica Life Insurance (Primerica). TRAVELERS LIFE & ANNUITY (TLA) core offerings include individual annuity, individual life, COLI and group annuity insurance products distributed by TIC and TLAC principally under the Travelers Life & Annuity name. Among the range of individual products offered are deferred fixed and variable annuities, payout annuities and term, universal and variable life insurance. The COLI product is a variable universal life product distributed through independent specialty brokers. The group products include institutional pensions, including GICs, payout annuities, group annuities sold to employer-sponsored retirement and savings plans, structured settlements and funding agreements. The PRIMERICA business segment consolidates the businesses of Primerica Life, Primerica Life Insurance Company of Canada, CitiLife and NBL. The Primerica business segment offers individual life products, 17 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) primarily term insurance, to customers through a sales force of approximately 106,000 representatives. A great majority of the domestic licensed sales force works on a part-time basis. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1). The amount of investments in equity method investees and total expenditures for additions to long-lived assets other than financial instruments, long-term customer relationships of a financial institution, mortgage and other servicing rights, and deferred tax assets, were not material. ($ IN MILLIONS) REVENUES BY SEGMENT 2004 2003 2002 ------------------- ---- ---- ---- TLA $4,725 $4,479 $3,653 Primerica 1,770 1,660 1,581 -------- ------- ------- Total Revenues $6,495 $6,139 $5,234 ======== ======= ======= NET INCOME BY SEGMENT TLA $990 $918 $673 Primerica 491 440 409 -------- ------- ------- Net Income $1,481 $1,358 $1,082 ======== ======= ======= ASSETS BY SEGMENT TLA $95,824 $85,881 $74,562 Primerica 10,019 9,467 8,433 -------- ------- ------- Total segments $105,843 $95,348 $82,995 ======== ======= ======= The following tables contain key segment measurements. BUSINESS SEGMENT INFORMATION: ---------------------------------------------- ------------- ------------- FOR THE YEAR ENDED DECEMBER 31, 2004 ($ IN MILLIONS) TLA PRIMERICA ---------------------------------------------- ------------- ------------- Premiums $911 $1,315 Net investment income 3,012 336 Interest credited to contractholders 1,305 - Amortization of deferred acquisition costs 400 249 Expenditures for deferred acquisition costs 810 393 Federal income taxes 361 241 18 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) BUSINESS SEGMENT INFORMATION: --------------------------------------------- -------------- ------------- FOR THE YEAR ENDED DECEMBER 31, 2003 ($ IN MILLIONS) TLA PRIMERICA --------------------------------------------- -------------- ------------- Premiums $1,082 $1,245 Net investment income 2,743 315 Interest credited to contractholders 1,248 - Amortization of deferred acquisition costs 266 235 Expenditures for deferred acquisition costs 583 377 Federal income taxes 240 231 BUSINESS SEGMENT INFORMATION: --------------------------------------------- -------------- ------------- FOR THE YEAR ENDED DECEMBER 31, 2002 ($ IN MILLIONS) TLA PRIMERICA --------------------------------------------- -------------- ------------- Premiums $730 $1,194 Net investment income 2,646 290 Interest credited to contractholders 1,220 - Amortization of deferred acquisition costs 174 219 Expenditures for deferred acquisition costs 556 323 Federal income taxes 212 209 The majority of the annuity business and a substantial portion of the life business written by TLA are accounted for as investment contracts, with the result that the deposits collected are reported as liabilities and are not included in revenues. Deposits represent a statistic integral to managing TLA operations, which management uses for measuring business volumes, and may not be comparable to similarly captioned measurements used by other life insurance companies. For the years ended December 31, 2004, 2003 and 2002, deposits collected amounted to $14.4 billion, $12.0 billion and $11.9 billion, respectively. The Company's revenue was derived almost entirely from U.S. domestic business. Revenue attributable to foreign countries was insignificant. The Company had no transactions with a single customer representing 10% or more of its revenue. 19 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. INVESTMENTS FIXED MATURITIES The amortized cost and fair value of investments in fixed maturities were as follows:
----------------------------------------------------- --------------- ---------------- --------------- ------------ GROSS GROSS DECEMBER 31, 2004 AMORTIZED UNREALIZED UNREALIZED FAIR ($ IN MILLIONS) COST GAINS LOSSES VALUE ----------------------------------------------------- --------------- ---------------- --------------- ------------ AVAILABLE FOR SALE: Mortgage-backed securities - CMOs and pass-through securities $8,568 $311 $9 $8,870 U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities 2,143 106 - 2,249 Obligations of states, municipalities and political subdivisions 364 41 1 404 Debt securities issued by foreign governments 847 81 1 927 All other corporate bonds 25,603 1,466 40 27,029 Other debt securities 7,613 421 14 8,020 Redeemable preferred stock 176 41 1 216 ----------------------------------------------------- --------------- ---------------- --------------- ------------ Total Available For Sale $45,314 $2,467 $66 $47,715 ----------------------------------------------------- --------------- ---------------- --------------- ------------
----------------------------------------------------- --------------- ---------------- --------------- ------------ GROSS GROSS DECEMBER 31, 2003 AMORTIZED UNREALIZED UNREALIZED FAIR ($ IN MILLIONS) COST GAINS LOSSES VALUE ----------------------------------------------------- --------------- ---------------- --------------- ------------ AVAILABLE FOR SALE: Mortgage-backed securities - CMOs and pass-through securities $8,061 $326 $18 $8,369 U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities 2,035 22 12 2,045 Obligations of states, municipalities and political subdivisions 379 21 2 398 Debt securities issued by foreign governments 690 51 1 740 All other corporate bonds 23,098 1,507 64 24,541 Other debt securities 5,701 377 22 6,056 Redeemable preferred stock 155 20 1 174 ----------------------------------------------------- --------------- ---------------- --------------- ------------ Total Available For Sale $40,119 $2,324 $120 $42,323 ----------------------------------------------------- --------------- ---------------- --------------- ------------
Proceeds from sales of fixed maturities classified as available for sale were $7.8 billion, $15.1 billion and $15.5 billion in 2004, 2003 and 2002, respectively. Gross gains of $246 million, $476 million and $741 20 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) million and gross losses of $263 million, $394 million and $309 million in 2004, 2003 and 2002, respectively, were realized on those sales. Additional losses of $40 million, $110 million and $639 million in 2004, 2003 and 2002, respectively, were realized due to other-than-temporary losses in value. Impairments in 2002 were concentrated in telecommunication and energy company investments. The amortized cost and fair value of fixed maturities at December 31, 2004, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ---------------------------------------- --------------- --------------- AMORTIZED ($ IN MILLIONS) COST FAIR VALUE ---------------------------------------- --------------- --------------- MATURITY: Due in one year or less $2,634 $2,679 Due after 1 year through 5 years 13,015 13,514 Due after 5 years through 10 years 13,262 14,034 Due after 10 years 7,835 8,618 ---------------------------------------- --------------- --------------- 36,746 38,845 ---------------------------------------- --------------- --------------- Mortgage-backed securities 8,568 8,870 ---------------------------------------- --------------- --------------- Total Maturity $45,314 $47,715 ---------------------------------------- --------------- --------------- The Company makes investments in collateralized mortgage obligations (CMOs). CMOs typically have high credit quality, offer good liquidity, and provide a significant advantage in yield and total return compared to U.S. Treasury securities. The Company's investment strategy is to purchase CMO tranches which are protected against prepayment risk, including planned amortization class and last cash flow tranches. Prepayment protected tranches are preferred because they provide stable cash flows in a variety of interest rate scenarios. The Company does invest in other types of CMO tranches if a careful assessment indicates a favorable risk/return tradeoff. The Company does not purchase residual interests in CMOs. At December 31, 2004 and 2003, the Company held CMOs classified as available for sale with a fair value of $6.0 billion and $5.2 billion, respectively. Approximately 28% and 30%, respectively, of the Company's CMO holdings are fully collateralized by GNMA, FNMA or FHLMC securities at December 31, 2004 and 2003. In addition, the Company held $2.9 billion and $3.0 billion of GNMA, FNMA or FHLMC mortgage-backed pass-through securities at December 31, 2004 and 2003, respectively. All of these securities are rated AAA. The Company engages in securities lending transactions whereby certain securities from its portfolio are loaned to other institutions for short periods of time. The Company generally receives cash collateral from the borrower, equal to at least the market value of the loaned securities plus accrued interest, and invests it in the Company's short-term money market pool (See Note 13). The loaned securities remain a recorded asset of the Company, however, the Company records a liability for the amount of the cash collateral held, representing its obligation to return the cash collateral, and reports that liability as part of other liabilities in the consolidated balance sheet. At December 31, 2004 and 2003, the Company held cash collateral of $2.2 billion and $2.4 billion, respectively. The Company also had $382.7 million of investments held as collateral with a third party at December 31, 2004. The Company does not have the right to sell or pledge this collateral and it is not recorded on the consolidated balance sheet. No such collateral existed at December 31, 2003. 21 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company participates in dollar roll repurchase transactions as a way to generate investment income. These transactions involve the sale of mortgage-backed securities with the agreement to repurchase substantially the same securities from the same counterparty. Cash is received from the sale, which is invested in the Company's short-term money market pool. The cash is returned at the end of the roll period when the mortgage-backed securities are repurchased. The Company will generate additional investment income based upon the difference between the sale and repurchase prices. These transactions are recorded as secured borrowings. The mortgage-backed securities remain recorded as assets. The cash proceeds are reflected in short-term investments and a liability is established to reflect the Company's obligation to repurchase the securities at the end of the roll period. The liability is classified as other liabilities in the consolidated balance sheets and fluctuates based upon the timing of the repayments. The balances were insignificant at December 31, 2004 and 2003. EQUITY SECURITIES The cost and fair values of investments in equity securities were as follows:
--------------------------------------------- ----------- ---------------------- ---------------------- ----------- EQUITY SECURITIES: GROSS UNREALIZED GROSS UNREALIZED FAIR ($ IN MILLIONS) COST GAINS LOSSES VALUE --------------------------------------------- ----------- ---------------------- ---------------------- ----------- DECEMBER 31, 2004 Common stocks $153 $42 $1 $194 Non-redeemable preferred stocks 169 6 2 173 --------------------------------------------- ----------- ---------------------- ---------------------- ----------- Total Equity Securities $322 $48 $3 $367 --------------------------------------------- ----------- ---------------------- ---------------------- ----------- DECEMBER 31, 2003 Common stocks $109 $27 $2 $134 Non-redeemable preferred stocks 214 14 - 228 --------------------------------------------- ----------- ---------------------- ---------------------- ----------- Total Equity Securities $323 $41 $2 $362 --------------------------------------------- ----------- ---------------------- ---------------------- -----------
Proceeds from sales of equity securities were $78 million, $124 million and $212 million in 2004, 2003 and 2002, respectively. Gross gains of $29 million, $23 million and $8 million and gross losses of $10 million, $2 million and $4 million in 2004, 2003 and 2002, respectively, were realized on those sales. Additional losses of $5 million, $11 million and $19 million in 2004, 2003 and 2002, respectively, were realized due to other-than-temporary losses in value. OTHER-THAN-TEMPORARY LOSSES ON INVESTMENTS Management has determined that the unrealized losses on the Company's investments in fixed maturity and equity securities at December 31, 2004 are temporary in nature. The Company conducts a periodic review to identify and evaluate investments that have indications of possible impairment. An investment in a debt or equity security is impaired if its fair value falls below its cost and the decline is considered other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been below cost; the financial condition and near-term prospects of the issuer; 22 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) and the Company's ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company's review for impairment generally entails: o Identification and evaluation of investments that have possible indications of impairment; o Analysis of individual investments that have fair values less than 80% of amortized cost, including consideration of the length of time the investment has been in an unrealized loss position; o Discussion of evidential matter, including an evaluation of factors or triggers that would or could cause individual investments to qualify as having other-than-temporary impairments and those that would not support other-than-temporary impairment; o Documentation of the results of these analyses, as required under business policies. The table below shows the fair value of investments in fixed maturities and equity securities that are available for sale and have been in an unrealized loss position at December 31, 2004:
Gross Unrealized Losses --------------------------------------------------- Less Than One Year One Year or Longer Total ------------------------ -------------------------- ------------------------ Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ IN MILLIONS) Value Losses Value Losses Value Losses - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------ Fixed maturity securities available-for-sale: Mortgage-backed securities-CMOs and pass-through securities $955 $7 $82 $2 $1,037 $9 U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities 66 - 11 - 77 - Obligations of states, municipalities and political subdivisions 4 - 11 1 15 1 Debt securities issued by foreign governments 24 1 2 - 26 1 All other corporate bonds 3,494 32 269 8 3,763 40 Other debt securities 1,072 10 199 4 1,271 14 Redeemable preferred stock 15 - 7 1 22 1 - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------ Total fixed maturities $5,630 $50 $581 $16 $6,211 $66 Equity securities $39 $2 $14 $1 $53 $3 - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------
At December 31, 2004, the cost of approximately 825 investments in fixed maturity and equity securities exceeded their fair value by $69 million. Of the $69 million, $50 million represents fixed maturity investments that have been in a gross unrealized loss position for less than a year and of these 93% are rated investment grade. Fixed maturity investments that have been in a gross unrealized loss position for a year or more total $16 million and 89% of these investments are rated investment grade. The gross unrealized loss on equity securities was $3 million at December 31, 2004. 23 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The table below shows the fair value of investments in fixed maturities and equity securities in an unrealized loss position at December 31, 2003:
Gross Unrealized Losses --------------------------------------------------- Less Than One Year One Year or Longer Total ------------------------ -------------------------- ------------------------ Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ IN MILLIONS) Value Losses Value Losses Value Losses - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------ Fixed maturity securities available-for-sale: Mortgage-backed securities-CMOs and pass-through securities $1,182 $18 $17 $- $1,199 $18 U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities 1,180 12 - - 1,180 12 Obligations of states, municipalities and political subdivisions 45 2 - - 45 2 Debt securities issued by foreign governments 55 1 - - 55 1 All other corporate bonds 1,793 39 503 25 2,296 64 Other debt securities 755 18 89 3 844 22 Redeemable preferred stock 12 1 11 1 23 1 - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------ Total fixed maturities $5,022 $91 $620 $29 $5,642 $120 Equity securities $25 $1 $5 $1 $30 $2 - ------------------------------------------------------- --------- -------------- ------------ ------------- ----------- ------------
At December 31, 2003, the cost of approximately 670 investments in fixed maturity and equity securities exceeded their fair value by $122 million. Of the $122 million, $91 million represents fixed maturity investments that have been in a gross unrealized loss position for less than a year and of these 78% are rated investment grade. Fixed maturity investments that have been in a gross unrealized loss position for a year or more total $29 million and 38% of these investments are rated investment grade. The gross unrealized loss on equity securities was $2 million at December 31, 2003. 24 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) AGING OF GROSS UNREALIZED LOSSES ON AVAILABLE FOR SALE The aging of gross unrealized losses on fixed maturity investments is as follows:
- ------------------------------------------------------------------------------------------------------------------------------- TOTAL FIXED MATURITIES WITH UNREALIZED LOSS TOTAL FIXED MATURITIES TOTALING 20% OR MORE - ------------------------------------------------------- ------------------------------------ ---------------------------------- DECEMBER 31, 2004 AMORTIZED UNREALIZED AMORTIZED UNREALIZED ($ IN MILLIONS) COST LOSS COST LOSS - ------------------------------------------------------- ----------------- ------------------ --------------- ------------------ Six months or less $4,435 $31 $1 $- Greater than six months to nine months 1,029 14 - - Greater than nine months to twelve months 215 5 - - Greater than twelve months 597 16 - - -------- ----- ---- --- Total $6,276 $66 $1 $- ======== ===== ==== ===
- ------------------------------------------------------------------------------------------------------------------------------- TOTAL FIXED MATURITIES WITH UNREALIZED LOSS TOTAL FIXED MATURITIES TOTALING 20% OR MORE - ------------------------------------------------------- ------------------------------------ ---------------------------------- DECEMBER 31, 2003 AMORTIZED UNREALIZED AMORTIZED UNREALIZED ($ IN MILLIONS) COST LOSS COST LOSS - ------------------------------------------------------- ----------------- ------------------ --------------- ------------------ Six months or less $4,356 $68 $24 $7 Greater than six months to nine months 558 17 - - Greater than nine months to twelve months 199 6 2 - Greater than twelve months 650 29 3 1 -------- ----- ---- --- Total $5,763 $120 $29 $8 ======== ===== ==== ===
Fair values of investments in fixed maturities and equity securities are based on quoted market prices or dealer quotes or, if these are not available, discounted expected cash flows using market rates commensurate with the credit quality and maturity of the investment. The fair value of investments for which quoted market prices, third-party broker quotations or validated model prices are not available amounted to $345.0 million and $1,058.4 million at December 31, 2004 and 2003, respectively. 25 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) MORTGAGE LOANS At December 31, 2004 and 2003, the Company's mortgage loan portfolios consisted of the following: ---------------------------------- ---------------- --------------- ($ IN MILLIONS) 2004 2003 ---------------------------------- ---------------- --------------- Current Mortgage Loans $2,070 $1,841 Underperforming Mortgage Loans 54 45 ---------------------------------- ---------------- --------------- Total Mortgage Loans $2,124 $1,886 ---------------------------------- ---------------- --------------- Underperforming mortgage loans include delinquent mortgage loans over 90 days past due, loans in the process of foreclosure and loans modified at interest rates below market. Aggregate annual maturities on mortgage loans at December 31, 2004 are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. ------------------------------------------------------ ---------------- YEAR ENDING DECEMBER 31, ($ IN MILLIONS) ------------------------------------------------------ ---------------- 2005 $122 2006 308 2007 249 2008 93 2009 252 Thereafter 1,100 ------------------------------------------------------ ---------------- Total $2,124 ====================================================== ================ TRADING SECURITIES Trading securities of the Company are held primarily in Tribeca Citigroup Investments Ltd. The assets and liabilities are valued at fair value as follows: Fair value as of Fair value as of ($ IN MILLIONS) December 31, 2004 December 31, 2003 - ---------------- ----------------- ----------------- ASSETS Trading securities Convertible bond arbitrage $1,110 $1,447 Other 250 260 ------ ------ $1,360 $1,707 ====== ====== LIABILITIES Trading securities sold not yet purchased Convertible bond arbitrage $460 $629 Other 13 8 ---- ---- $473 $637 ==== ==== 26 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company's trading portfolio investments and related liabilities are normally held for periods less than six months. See Note 11. OTHER INVESTED ASSETS Other invested assets are composed of the following: ----------------------------------------------- ----------- -------------- ($ IN MILLIONS) 2004 2003 ----------------------------------------------- ----------- -------------- Investment in Citigroup Preferred Stock $3,212 $3,212 Private equity and arbitrage investments 1,235 1,315 Real estate joint ventures 230 327 Derivatives 192 182 Real estate - Investment 28 33 Real estate - Foreclosed 9 63 Other 99 56 ----------------------------------------------- ----------- -------------- Total $5,005 $5,188 ----------------------------------------------- ----------- -------------- CONCENTRATIONS At December 31, 2004 and 2003, the Company had an investment in Citigroup Preferred Stock of $3.2 billion. See Note 13. The Company both maintains and participates in a short-term investment pool for its insurance affiliates. See Note 13. The Company had concentrations of investments, excluding those in federal and government agencies, primarily fixed maturities at fair value, in the following industries: -------------------------------------------- -------------- -------------- ($ IN MILLIONS) 2004 2003 -------------------------------------------- -------------- -------------- Finance $6,917 $5,056 Banking 3,474 2,830 Electric Utilities 3,258 3,552 -------------------------------------------- -------------- -------------- The Company held investments in foreign banks in the amount of $1,321 million and $1,018 million at December 31, 2004 and 2003, respectively, which are included in the table above. The Company defines its below investment grade assets as those securities rated Ba1 by Moody's Investor Services (or its equivalent) or below by external rating agencies, or the equivalent by internal analysts when a public rating does not exist. Such assets include publicly traded below investment grade bonds and certain other privately issued bonds and notes that are classified as below investment grade. Below investment grade assets included in the categories of the preceding table include $918 million and $1,118 million in Electric Utilities at December 31, 2004 and 2003, respectively. Below investment grade assets in Finance and Banking were insignificant at December 31, 2004 and 2003. Total below investment grade assets were $5.4 billion and $5.2 billion at December 31, 2004 and 2003, respectively. 27 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Included in mortgage loans were the following group concentrations: -------------------------------------------- -------------- -------------- ($ IN MILLIONS) 2004 2003 -------------------------------------------- -------------- -------------- STATE California $788 $732 PROPERTY TYPE Agricultural $1,177 $1,025 -------------------------------------------- -------------- -------------- The Company monitors creditworthiness of counterparties to all financial instruments by using controls that include credit approvals, credit limits and other monitoring procedures. Collateral for fixed maturities often includes pledges of assets, including stock and other assets, guarantees and letters of credit. The Company's underwriting standards with respect to new mortgage loans generally require loan to value ratios of 75% or less at the time of mortgage origination. NON-INCOME PRODUCING INVESTMENTS Investments included in the consolidated balance sheets that were non-income producing amounted to $105.3 million and $104.4 million at December 31, 2004 and 2003, respectively. RESTRUCTURED INVESTMENTS The Company had mortgage loans and debt securities that were restructured at below market terms at December 31, 2004 and 2003. The balances of the restructured investments were insignificant. The new terms typically defer a portion of contract interest payments to varying future periods. Gross interest income on restructured assets that would have been recorded in accordance with the original terms of such loans was insignificant in 2004, 2003 and 2002. Interest on these assets, included in net investment income, was also insignificant in 2004, 2003 and 2002. NET INVESTMENT INCOME - ----------------------------------- -------------- -------------- -------------- FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 ($ IN MILLIONS) - ----------------------------------- -------------- -------------- -------------- GROSS INVESTMENT INCOME Fixed maturities $2,615 $2,465 $2,359 Mortgage loans 184 158 167 Trading 41 222 9 Other invested assets 303 58 203 Citigroup Preferred Stock 203 203 178 Other, including policy loans 108 82 104 - ----------------------------------- -------------- -------------- -------------- Total gross investment income 3,454 3,188 3,020 - ----------------------------------- -------------- -------------- -------------- Investment expenses 106 130 84 - ----------------------------------- -------------- -------------- -------------- Net Investment Income $3,348 $3,058 $2,936 - ----------------------------------- -------------- -------------- -------------- 28 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES) Net realized investment gains (losses) for the periods were as follows: - -------------------------------------- ------------ ------------ ----------- FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 ($ IN MILLIONS) - -------------------------------------- ------------ ------------ ----------- REALIZED INVESTMENT GAINS (LOSSES) Fixed maturities $(17) $(28) $(207) Equity securities 19 10 (15) Mortgage loans 1 (14) - Real estate held for sale (4) 1 8 Other invested assets 5 49 (19) Derivatives: Guaranteed minimum withdrawal benefit derivatives, net 30 - - Other derivatives (14) 19 (87) Other (4) - (2) - -------------------------------------- ------------ ------------ ----------- Total realized investment gains (losses) $16 $37 $(322) - -------------------------------------- ------------ ------------ ----------- Changes in net unrealized investment gains (losses) that are reported in accumulated other changes in equity from nonowner sources were as follows: - ------------------------------------------ ----------- ----------- ---------- FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 ($ IN MILLIONS) - ------------------------------------------ ----------- ----------- ---------- UNREALIZED INVESTMENT GAINS (LOSSES) Fixed maturities $197 $1,198 $664 Equity securities 6 35 3 Other 12 6 31 - ------------------------------------------ ----------- ----------- ---------- Total unrealized investment gains 215 1,239 698 - ------------------------------------------ ----------- ----------- ---------- Related taxes 77 421 243 - ------------------------------------------ ----------- ----------- ---------- Change in unrealized investment gains 138 818 455 Balance beginning of year 1,444 626 171 - ------------------------------------------ ----------- ----------- ---------- Balance end of year $1,582 $1,444 $626 - ------------------------------------------ ----------- ----------- ---------- VARIABLE INTEREST ENTITIES The following table represents the carrying amounts and classification of consolidated assets that are collateral for VIE obligations. The assets in this table represent two investment vehicles that the Company was involved with prior to February 1, 2003. These two VIEs are a collateralized debt obligation and a real estate joint venture: $ IN MILLIONS DECEMBER 31, 2004 DECEMBER 31, 2003 - -------------------------------------------------------------------------------- Investments $386 $ 400 Cash 9 11 Other 2 4 ----- ----- Total assets of consolidated VIEs $397 $415 - -------------------------------------------------------------------------------- 29 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The debt holders of these VIEs have no recourse to the Company. The Company's maximum exposure to loss is limited to its investment of approximately $8 million. The Company regularly becomes involved with VIEs through its investment activities. This involvement is generally restricted to small passive debt and equity investments. 4. REINSURANCE Reinsurance is used in order to limit losses, minimize exposure to large risks, provide additional capacity for future growth and to effect business-sharing arrangements. Reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term (YRT), coinsurance and modified coinsurance. Reinsurance involves credit risk and the Company monitors the financial condition of these reinsurers on an ongoing basis. The Company remains primarily liable as the direct insurer on all risks reinsured. For TLA, since 1997 the majority of universal life business has been reinsured under an 80% ceded/20% retained YRT quota share reinsurance program and term life business has been reinsured under a 90%/10% YRT quota share reinsurance program. Beginning June 1, 2002, COLI business has been reinsured under a 90%/10% quota share reinsurance program. Beginning in September 2002, newly issued term life business has been reinsured under a 90%/10% coinsurance quota share reinsurance program. Subsequently, portions of this term coinsurance has reverted to YRT for new business. Generally, the maximum retention on an ordinary life risk is $2.5 million. Maximum retention of $2.5 million is generally reached on policies in excess of $12.5 million for universal life and $25.0 million for term insurance. For other plans of insurance, it is the policy of the Company to obtain reinsurance for amounts above certain retention limits on individual life policies, which limits vary with age and underwriting classification. Total in-force business ceded under reinsurance contracts is $397.4 billion and $356.3 billion at December 31, 2004 and 2003, respectively. For Primerica Life, business sold prior to 1991 was reinsured under a coinsurance arrangement with approximately 50% of the face amount being ceded. For business sold from 1991 through June 1994, only amounts over the company retention of $1.0 million were reinsured through an excess loss YRT treaty. In June 1994, Primerica Life began reinsuring almost all business under a 1st dollar quota share YRT treaty with 80% being ceded. Beginning with business sold in January 1997, the amount ceded was increased from 80% to 90%. Business sold in Canada is not included in the U.S. YRT quota share treaties. In Canada, the business sold from April 2000 through December 2003, was reinsured under a separate 1st dollar quota share YRT arrangement, with the ceding amount ranging from 70% to 90%. Beginning with business sold in January 2004, Canada began reinsuring only amounts above their company retention of $500,000. Primerica has also entered into several reinsurance assumed treaties with Reinsurance Group of America, Inc. The reinsurance assumed treaties generated a $79 million pre-tax loss in 2001 and a $95 million pre-tax loss in 2002. The pre-tax impact from these reinsurance assumed treaties has been minor for 2003 and 2004. During 2004, The Travelers Life and Annuity Reinsurance Company (TLARC) was formed as a pure captive insurer in order to permit the Company to cede 100% of its statutory based risk associated with the death benefit guarantee rider on certain universal life contracts. The reinsurance transaction related to statutory-only reserves, and had no impact on GAAP premiums and benefits. TLARC is a direct subsidiary of CIHC, the Company's parent. See Note 13. 30 TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Effective July 1, 2000 the Company sold 90% of its individual long-term care insurance business to General Electric Capital Assurance Company and its subsidiary in the form of indemnity reinsurance arrangements. Written premiums ceded per these arrangements were $224.2 million, $226.8 million and $231.8 million in 2004, 2003 and 2002, respectively, and earned premiums ceded were $224.3 million, $226.7 million and $233.8 million in 2004, 2003 and 2002, respectively. On January 3, 1995, the Company sold its group life business to The Metropolitan Life Insurance Company (MetLife) under the form of an indemnity insurance arrangement. Premiums written and earned in 2004, 2003 and 2002 were insignificant. Prior to April 1, 2001, the Company also reinsured substantially all of the GMDB on its variable annuity product. Total variable annuity account balances with GMDB were $26.7 billion, of which $12.0 billion, or 45%, was reinsured, and $23.5 billion, of which $12.9 billion, or 55%, was reinsured at December 31, 2004 and 2003, respectively. GMDB is payable upon the death of a contractholder. When the benefit payable is greater than the account value of the variable annuity, the difference is called the net amount at risk (NAR). NAR totals $1.1 billion, of which $.9 billion, or 84%, is reinsured and $1.7 billion, of which $1.4 billion, or 81%, is reinsured at December 31, 2004 and 2003, respectively. TIC writes workers' compensation business. This business is reinsured through a 100% quota-share agreement with The Travelers Indemnity Company, an insurance subsidiary of St. Paul Travelers. See Note 14. A summary of reinsurance financial data reflected within the consolidated statements of income and balance sheets is presented below ($ in millions): FOR THE YEARS ENDING DECEMBER 31, WRITTEN PREMIUMS 2004 2003 2002 - ------------------------------------ ------------ -------------- -------------- Direct $2,908 $2,979 $2,610 Assumed 1 1 - Ceded to: The Travelers Indemnity Company (4) 2 (83) Other companies (684) (638) (614) - ------------------------------------ ------------ -------------- -------------- Total Net Written Premiums $2,221 $2,344 $1,913 ==================================== ============ ============== ============== EARNED PREMIUMS 2004 2003 2002 - ------------------------------------ ------------ -------------- -------------- Direct $2,916 $3,001 $2,652 Assumed 1 1 - Ceded to: The Travelers Indemnity Company (1) (21) (109) Other companies (690) (654) (619) - ------------------------------------ ------------ -------------- -------------- Total Net Earned Premiums $2,226 $2,327 $1,924 ==================================== ============ ============== ============== The Travelers Indemnity Company was an affiliate for part of 2002. 31 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Reinsurance recoverables at December 31, 2004 and 2003 include amounts recoverable on unpaid and paid losses and were as follows ($ in millions): REINSURANCE RECOVERABLES 2004 2003 - ------------------------------------------- -------------- -------------- Life and accident and health business $3,178 $2,885 Property-casualty business: The Travelers Indemnity Company 1,489 1,585 - ------------------------------------------- -------------- -------------- Total Reinsurance Recoverables $4,667 $4,470 =========================================== ============== ============== Reinsurance recoverables for the life and accident and health business include $1,876 million and $1,617 million at December 31, 2004 and 2003, respectively, from General Electric Capital Assurance Company. Assets collateralizing these receivables in the amount of $1,894 million and $1,632 million at December 31, 2004 and 2003, respectively, were held in trust for the purpose of paying Company claims. Reinsurance recoverables also include $409 million and $435 million at December 31, 2004 and 2003, respectively, from MetLife. 5. INTANGIBLE ASSETS The Company's intangible assets are DAC, goodwill and the value of insurance in force. DAC and the value of insurance in force are amortizable.
DAC Deferred & Payout Traditional Life & ($ IN MILLIONS) Annuities UL & COLI Other Total -------------------------------- -------------------- --------------------- --------------------- --------------- Balance January 1, 2003 $1,353 $ 578 $2,005 $3,936 Deferred expenses & other 340 221 399 960 Amortization expense (212) (33) (256) (501) -------------------- --------------------- --------------------- --------------- Balance December 31, 2003 1,481 766 2,148 4,395 Deferred expenses & other 448 342 413 1,203 Amortization expense (273) (51) (269) (593) Underlying lapse and interest rate adjustment (17) - - (17) Pattern of estimated gross profit adjustment - (39) - (39) -------------------- --------------------- --------------------- --------------- Balance December 31, 2004 $1,639 $1,018 $2,292 $4,949 -------------------------------- -------------------- --------------------- --------------------- ---------------
VALUE OF INSURANCE IN FORCE The value of insurance in force totaled $97 million and $112 million at December 31, 2004 and 2003, respectively, and is included in other assets. Amortization expense on the value of insurance in force was $14 million, $18 million and $25 million for the year ended December 31, 2004, 2003 and 2002, respectively. Amortization expense related to the value of insurance in force is estimated to be $16 million in 2005, $15 million in 2006, $13 million in 2007, $9 million in 2008 and $7 million in 2009. 32 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. DEPOSIT FUNDS AND RESERVES At December 31, 2004 and December 31, 2003, the Company had $48.2 billion and $43.5 billion of life and annuity deposit funds and reserves, respectively, as follows: ($ IN MILLIONS) December 31, 2004 December 31, 2003 Subject to discretionary withdrawal: With fair value adjustments $ 7,541 $ 6,974 Subject to surrender charges 4,852 6,057 Surrenderable without charge 8,105 5,756 ------- ------- Total $20,498 $18,787 Not subject to discretionary withdrawal: $27,730 $24,693 ------- ------- Total $48,228 $43,480 ======= ======= Average surrender charges included in the subject to surrender charge category above are 6.5% and 5.0%, respectively. In addition, during the payout phase, these funds are credited at significantly reduced interest rates. There are $519 million and $550 million of life insurance reserves included in surrenderable without charge at December 31, 2004 and December 31, 2003, respectively. The life insurance risks would have to be underwritten again if transferred to another carrier, which is considered a significant deterrent for long-term policyholders. Insurance liabilities that are surrendered or withdrawn from the Company are reduced by outstanding policy loans and related accrued interest prior to payout. Included in contractholder funds and in the preceding paragraph are GICs totaling $14.2 billion. These GICs have a weighted average interest rate of 4.23% and scheduled maturities are as follows: ($ IN MILLIONS) FIXED GIC VARIABLE GIC TOTAL -------------- ------------------- ---------------------- 2005 $ 1,237 $4,006 $ 5,243 2006 1,862 - 1,862 2007 1,561 - 1,561 2008 1,343 - 1,343 2009 1,393 - 1,393 2010 and thereafter 2,835 - 2,835 ------- ------ ------- Total $10,231 $4,006 $14,237 ======= ====== ======= 33 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 7. FEDERAL INCOME TAXES EFFECTIVE TAX RATE ($ IN MILLIONS) - ------------------------------------ -------------- -------------- ------------- FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 - ------------------------------------ -------------- -------------- ------------- Income before federal income taxes $2,083 $1,829 $1,503 Statutory tax rate 35% 35% 35% - ------------------------------------ -------------- -------------- ------------- Expected federal income taxes 729 640 526 Tax effect of: Non-taxable investment income (93) (91) (62) Tax reserve release (23) (79) (43) Other, net (11) 1 - - ------------------------------------ -------------- -------------- ------------- Federal income taxes $602 $471 $421 ==================================== ============== ============== ============= Effective tax rate 29% 26% 28% - ------------------------------------ -------------- -------------- ------------- COMPOSITION OF FEDERAL INCOME TAXES Current: United States $530 $330 $217 Foreign 33 30 19 - ------------------------------------ -------------- -------------- ------------- Total 563 360 236 - ------------------------------------ -------------- -------------- ------------- Deferred: United States 40 108 182 Foreign (1) 3 3 - ------------------------------------ -------------- -------------- ------------- Total 39 111 185 - ------------------------------------ -------------- -------------- ------------- Federal income taxes $602 $471 $421 ==================================== ============== ============== ============= Additional tax benefits (expense) attributable to employee stock plans allocated directly to shareholder's equity for the years ended December 31, 2004, 2003 and 2002 were $3 million, $3 million and $(17) million, respectively. The net deferred tax liability at December 31, 2004 and 2003 was comprised of the tax effects of temporary differences related to the following assets and liabilities: - --------------------------------------------- ----------------- --------------- ($ IN MILLIONS) 2004 2003 - --------------------------------------------- ----------------- --------------- Deferred Tax Assets: Benefit, reinsurance and other reserves $629 $574 Operating lease reserves 47 52 Employee benefits 195 201 Other 232 392 - --------------------------------------------- ----------------- --------------- Total 1,103 1,219 - --------------------------------------------- ----------------- --------------- Deferred Tax Liabilities: Deferred acquisition costs and value of insurance in force (1,365) (1,225) Investments, net (1,809) (1,795) Other (149) (229) - --------------------------------------------- ----------------- --------------- Total (3,323) (3,249) - --------------------------------------------- ----------------- --------------- Net Deferred Tax Liability $(2,220) $(2,030) - --------------------------------------------- ----------------- --------------- 34 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company and its subsidiaries file a consolidated federal income tax return with Citigroup. Federal income taxes are allocated to each member of the consolidated group, according to a Tax Sharing Agreement (the Agreement), on a separate return basis adjusted for credits and other amounts required by the Agreement. TIC had $325 million and $52 million payable to Citigroup at December 31, 2004 and 2003, respectively, related to the Agreement. At December 31, 2004 and 2003, the Company had no ordinary or capital loss carryforwards. The policyholders' surplus account, which arose under prior tax law, is generally that portion of the gain from operations that has not been subjected to tax, plus certain deductions. The balance of this account is approximately $932 million. At current rates the maximum amount of such tax would be approximately $326 million. Income taxes are not provided for on this amount because under current U.S. tax rules such taxes will become payable only to the extent such amounts are distributed as a dividend or exceed limits prescribed by federal law. The 2004 Tax Act provides that this account can be reduced directly by distributions made by the life insurance subsidiaries in 2005 and 2006. The Company intends to make sufficient distributions to eliminate this account within the timeframe permitted under the Act. 8. SHAREHOLDER'S EQUITY SHAREHOLDER'S EQUITY AND DIVIDEND AVAILABILITY The Company's statutory net income, which includes the statutory net income of all insurance subsidiaries, was $842 million, $1,104 million and $256 million for the years ended December 31, 2004, 2003 and 2002, respectively. The Company's statutory capital and surplus was $7.9 billion and $7.6 billion at December 31, 2004 and 2003, respectively. The Company is currently subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid to its parent without prior approval of insurance regulatory authorities. A maximum of $908 million is available by the end of the year 2005 for such dividends without prior approval of the State of Connecticut Insurance Department, depending upon the amount and timing of the payments. TIC has requested approval to effect certain of the distributions described in Note 17 as an extraordinary dividend. See Note 17. In accordance with the Connecticut statute, TLAC may not pay dividends during 2005 without prior approval of the State of Connecticut Insurance Department. Primerica may pay up to $263 million to TIC in 2005 without prior approval of the Commonwealth of Massachusetts Insurance Department. The Company paid dividends of $773 million, $545 million and $586 million in 2004, 2003 and 2002, respectively. The Company's 2004 dividends were paid in the following amounts: $467.5 million on March 30; $152.5 million on June 30; and $152.5 million on September 30. Due to the timing of the payments, these dividends were considered extraordinary. In addition to the aforementioned quarterly dividends, the Company also made a dividend consisting of all the issued and outstanding shares of TLARC on December 15, 2004. TLARC was valued at $250,000 and was considered to be an ordinary dividend. See Notes 4 and 13 for further discussion of TLARC. In December 2004, the Company requested and received prior approval from the State of Connecticut Insurance Department to pay an extraordinary dividend on January 3, 2005. Under Connecticut law, the ordinary dividend limitation amount is based upon the cumulative total of all dividend payments made within 35 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) the preceding twelve months. The Company's proposed dividend payment of $302.5 million payable on January 3, 2005 exceeded the ordinary dividend limitation by approximately $167 million, based on the 2005 dividend limit of $908 million. The State of Connecticut Insurance Department approved the request on December 19, 2004. TIC paid the dividend to its parent on January 3, 2005. ACCUMULATED OTHER CHANGES IN EQUITY FROM NONOWNER SOURCES, NET OF TAX Changes in each component of Accumulated Other Changes in Equity from Nonowner Sources were as follows:
NET UNREALIZED ACCUMULATED OTHER GAIN/LOSS FOREIGN CURRENCY DERIVATIVE CHANGES IN EQUITY ($ IN MILLIONS) ON INVESTMENT TRANSLATION INSTRUMENTS AND FROM NONOWNER SECURITIES ADJUSTMENTS HEDGING ACTIVITIES SOURCES - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- BALANCE, JANUARY 1, 2002 $186 $(3) $(109) $74 Unrealized gains on investment securities, net of tax of $167 308 - - 308 Add: Reclassification adjustment for losses included in net income, net of tax of $(78) 144 - - 144 Foreign currency translation adjustment, net Of tax of $2 - 3 - 3 Less: Derivative instrument hedging activity losses, net of tax of $(42) - - (75) (75) - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- PERIOD CHANGE 452 3 (75) 380 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- BALANCE, DECEMBER 31, 2002 638 - (184) 454 Unrealized gains on investment securities, net of tax of $414 805 - - 805 Add: Reclassification adjustment for losses included in net income, net of tax of $(6) 12 - - 12 Foreign currency translation adjustment, net of tax of $3 - 4 - 4 Add: Derivative instrument hedging activity gains, net of tax of $46 - - 85 85 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- PERIOD CHANGE 817 4 85 906 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- BALANCE, DECEMBER 31, 2003 1,455 4 (99) 1,360 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- Unrealized gains on investment securities, net of tax of $58 139 - - 139 Less: Reclassification adjustment for gains included in net income, net of tax of $1 (1) - - (1) Foreign currency translation adjustment, net Of tax of $0 - 1 - 1 Add: Derivative instrument hedging activity gains, net of tax of $53 - - 98 98 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- PERIOD CHANGE 138 1 98 237 - ------------------------------------------------- ---------------- -------------------- -------------------- ------------------- BALANCE, DECEMBER 31, 2004 $1,593 $5 $ (1) $1,597 - ------------------------------------------------- ---------------- -------------------- -------------------- -------------------
36 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 9. BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFITS The Company participates in a qualified, noncontributory defined benefit pension plan sponsored by Citigroup. The Company's share of the expense related to this plan was insignificant in 2004, 2003 and 2002. The Company also participates in a non-qualified, noncontributory defined benefit pension plan sponsored by Citigroup. During 2002, the Company assumed Travelers Property Casualty Corporation's (TPC) share of the non-qualified pension plan related to inactive employees of the former Travelers Insurance entities as part of the TPC spin-off. See Note 14. The Company's share of net expense for this plan was insignificant for 2004, 2003 and 2002. In addition, the Company provides certain other postretirement benefits to retired employees through a plan sponsored by Citigroup. The Company assumed TPC's share of the postretirement benefits related to inactive employees of the former Travelers Insurance entities during 2002 as part of the TPC spin-off. The Company's share of net expense for the other postretirement benefit plans was $28 million in both 2004 and 2003 and $18 million in 2002. 401(k) SAVINGS PLAN Substantially all of the Company's employees are eligible to participate in a 401(k) savings plan sponsored by Citigroup. The Company's expenses in connection with the 401(k) savings plan were not significant in 2004, 2003 and 2002. See Note 13. 10. LEASES Most leasing functions for the Company are administered by a Citigroup subsidiary. Net rent expense for the Company was $22 million, $21 million, and $24 million in 2004, 2003 and 2002, respectively. - -------------------------- ----------------------- --------------------- YEAR ENDING DECEMBER 31, MINIMUM OPERATING MINIMUM CAPITAL ($ IN MILLIONS) RENTAL PAYMENTS RENTAL PAYMENTS - -------------------------- ----------------------- --------------------- 2005 $ 51 $ 5 2006 58 5 2007 58 6 2008 56 6 2009 48 6 Thereafter 31 12 - -------------------------- ----------------------- --------------------- Total Rental Payments $302 $40 ========================== ======================= ===================== Future sublease rental income of approximately $54 million will partially offset these commitments. Also, the Company will be reimbursed for 50%, totaling $120 million through 2011, of the rental expense for a particular lease by an affiliate. 37 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 11. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments, including financial futures contracts, swaps, interest rate caps, options and forward contracts, as a means of hedging exposure to interest rate changes, equity price changes, credit and foreign currency risk. The Company also uses derivative financial instruments to enhance portfolio income and replicate cash market investments. The Company, through Tribeca Citigroup Investments Ltd., holds and issues derivative instruments in conjunction with these investment strategies designed to enhance portfolio returns. The Company uses exchange traded financial futures contracts to manage its exposure to changes in interest rates that arise from the sale of certain insurance and investment products, or the need to reinvest proceeds from the sale or maturity of investments. In addition, the Company enters into interest rate futures contracts in connection with macro hedges intended to reduce interest rate risk by adjusting portfolio duration. To hedge against adverse changes in interest rates, the Company enters long or short positions in financial futures contracts, which offset asset price changes resulting from changes in market interest rates until an investment is purchased, or a product is sold. Futures contracts are commitments to buy or sell at a future date a financial instrument, at a contracted price, and may be settled in cash or through delivery. The Company uses equity option contracts to manage its exposure to changes in equity market prices that arise from the sale of certain insurance products. To hedge against adverse changes in the equity market prices, the Company enters long positions in equity option contracts with major financial institutions. These contracts allow the Company, for a fee, the right to receive a payment if the Standard and Poor's 500 Index falls below agreed upon strike prices. Currency option contracts are used on an ongoing basis to hedge the Company's exposure to foreign currency exchange rates that result from the Company's direct foreign currency investments. To hedge against adverse changes in exchange rates, the Company enters into contracts that give it the right, but not the obligation, to sell the foreign currency within a limited time at a contracted price that may also be settled in cash, based on differentials in the foreign exchange rate. These contracts cannot be settled prior to maturity. The Company enters into interest rate swaps in connection with other financial instruments to provide greater risk diversification and better match the cash flows from assets and related liabilities. In addition, the Company enters into interest rate swaps in connection with macro hedges intended to reduce interest rate risk by adjusting portfolio duration. Under interest rate swaps, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also enters into basis swaps in which both legs of the swap are floating with each based on a different index. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. A single net payment is usually made by one counterparty at each due date. The Company enters into currency swaps in connection with other financial instruments to provide greater risk diversification and better match assets purchased in U.S. Dollars with a corresponding liability originated in a foreign currency. Under currency swaps, the Company agrees with other parties to exchange, at specified intervals, foreign currency for U.S. Dollars. Generally, there is an exchange of foreign currency for U.S. Dollars at the outset of the contract based upon prevailing foreign exchange rates. Swap agreements are not exchange traded so they are subject to the risk of default by the counterparty. 38 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company enters into interest rate caps in connection with other financial instruments to provide greater risk diversification and better match assets and liabilities. In addition, the Company enters into interest rate caps in connection with macro hedges intended to reduce interest rate risk by adjusting portfolio duration. Under interest rate caps, the Company pays a premium and is entitled to receive cash payments equal to the excess of the market interest rates over the strike prices multiplied by the notional principal amount. Interest rate cap agreements are not exchange traded so they are subject to the risk of default by the counterparty. Forward contracts are used on an ongoing basis to hedge the Company's exposure to foreign currency exchange rates that result from the net investment in the Company's Canadian operations as well as direct foreign currency investments. To hedge against adverse changes in exchange rates, the Company enters into contracts to exchange foreign currency for U.S. Dollars with major financial institutions. These contracts cannot be settled prior to maturity. At the maturity date the Company must purchase the foreign currency necessary to settle the contracts. The Company enters into credit default swaps in conjunction with a fixed income investment to reproduce the investment characteristics of a different investment. The Company will also enter credit default swaps to reduce exposure to certain corporate debt security investment exposures that it holds. Under credit default swaps, the Company agrees with other parties to receive or pay, at specified intervals, fixed or floating rate interest amounts calculated by reference to an agreed notional principal amount in exchange for the credit default risk of a specified bond. Swap agreements are not exchange traded so they are subject to the risk of default by the counterparty. Several of the Company's hedging strategies do not qualify or are not designated as hedges for accounting purposes. This can occur when the hedged item is carried at fair value with changes in fair value recorded in earnings, the derivative contracts are used in a macro hedging strategy, the hedge is not expected to be highly effective, or structuring the hedge to qualify for hedge accounting is too costly or time consuming. The Company monitors the creditworthiness of counterparties to these financial instruments by using criteria of acceptable risk that are consistent with on-balance sheet financial instruments. The controls include credit approvals, credit limits and other monitoring procedures. Additionally, the Company enters into collateral agreements with its derivative counterparties. As of December 31, 2004, the Company held collateral under these contracts amounting to approximately $813.0 million. The table below provides a summary of the notional and fair value of derivatives by type:
($ IN MILLIONS) DECEMBER 31, 2004 DECEMBER 31, 2003 FAIR VALUE FAIR VALUE ------------------------- ------------------------ Notional Notional DERIVATIVE TYPE Amount Assets Liabilities Amount Assets Liabilities -------------- ----------- ------------- ----------- ---------- ------------- Interest rate, equity and currency swaps $8,926.0 $910.4 $158.7 $7,422.3 $685.7 $178.9 Financial futures 1,421.0 - - 790.2 - - Interest rate and equity options 1,354.8 189.1 - 754.4 182.1 - Currency forwards 510.1 - 8.9 352.4 0.3 7.3 Credit derivatives 427.4 4.1 3.4 209.5 5.2 0.6 Interest rate caps 117.5 3.1 - - - - -------------- ----------- ------------- ----------- ---------- ------------- TOTAL $12,756.8 $1,106.7 $171.0 $9,528.8 $873.3 $186.8 -------------- ----------- ------------- ----------- ---------- -------------
39 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table summarizes certain information related to the Company's hedging activities for the years ended December 31, 2004 and 2003:
Year Ended Year Ended In millions of dollars December 31, 2004 December 31, 2003 ---------------------------------------- ------------------------ ----------------------- Hedge ineffectiveness recognized related to fair value hedges $(33.2) $(23.2) Hedge ineffectiveness recognized related to cash flow hedges 6.1 (3.4) Net loss recorded in accumulated other changes in equity from nonowner sources related to net investment hedges (0.6) (33.6) Net loss from economic hedges recognized in earnings (20.1) (1.6)
During the years ended December 31, 2004 and 2003 there were no discontinued forecasted transactions. The amount expected to be reclassified from accumulated other changes in equity from nonowner sources into pre-tax earnings within twelve months from December 31, 2004 is $(76.1) million. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, the Company issues fixed and variable rate loan commitments and has unfunded commitments to partnerships and joint ventures. All of these commitments are to unaffiliated entities. The off-balance sheet risk of fixed and variable rate loan commitments was $375.5 million and $253.5 million at December 31, 2004 and 2003, respectively. The Company had unfunded commitments of $1,075.8 million and $527.8 million to these partnerships at December 31, 2004 and 2003, respectively. FAIR VALUE OF CERTAIN FINANCIAL INSTRUMENTS The Company uses various financial instruments in the normal course of its business. Certain insurance contracts are excluded by SFAS No. 107, "Disclosure about Fair Value of Financial Instruments," and therefore are not included in the amounts discussed. At December 31, 2004 and 2003, investments in fixed maturities had a carrying value and a fair value of $47.7 billion and $42.3 billion, respectively. See Notes 1 and 3. At December 31, 2004, mortgage loans had a carrying value of $2.1 billion and a fair value of $2.2 billion and at year-end 2003 had a carrying value of $1.9 billion and a fair value of $2.0 billion. In estimating fair value, the Company used interest rates reflecting the current real estate financing market. Included in other invested assets are 2,225 shares of Citigroup Cumulative Preferred Stock Series YYY, carried at cost of $2,225 million at December 31, 2004 and 2003, acquired as a contribution from TPC. This Series YYY Preferred Stock pays cumulative dividends at 6.767%, has a liquidation value of $1 million per 40 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) share and has perpetual duration, is not subject to a sinking fund or mandatory redemption but may be optionally redeemed by Citigroup at any time on or after February 27, 2022. Dividends totaling $150 million were received in both 2004 and 2003 and $125 million was received in 2002. There is no established market for this investment and it is not practicable to estimate the fair value of the preferred stock. Included in other invested assets are 987 shares of Citigroup Cumulative Preferred Stock Series YY, carried at cost of $987 million at December 31, 2004 and 2003. This Series YY Preferred Stock pays cumulative dividends at 5.321%, has a liquidation value of $1 million per share, and has perpetual duration, is not subject to a sinking fund or mandatory redemption but may be optionally redeemed by Citigroup at any time on or after December 22, 2018. Dividends totaling $53 million were received during each of 2004, 2003 and 2002. There is no established market for this investment and it is not practicable to estimate the fair value of the preferred stock. At December 31, 2004, contractholder funds with defined maturities had a carrying value of $15.2 billion and a fair value of $15.6 billion, compared with a carrying value and a fair value of $13.5 billion and $13.7 billion at December 31, 2003. The fair value of these contracts is determined by discounting expected cash flows at an interest rate commensurate with the Company's credit risk and the expected timing of cash flows. Contractholder funds without defined maturities had a carrying value of $14.4 billion and a fair value of $14.1 billion at December 31, 2004, compared with a carrying value of $13.1 billion and a fair value of $12.8 billion at December 31, 2003. These contracts generally are valued at surrender value. The carrying values of $567 million and $698 million of financial instruments classified as other assets approximated their fair values at December 31, 2004 and 2003, respectively. The carrying value of $3.0 billion and $2.5 billion of financial instruments classified as other liabilities at December 31, 2004 and 2003 also approximated their fair values at both December 31, 2004 and 2003. Fair value is determined using various methods, including discounted cash flows, as appropriate for the various financial instruments. Both the assets and liabilities of separate accounts providing a guaranteed return had a carrying value and a fair value of $350 million at December 31, 2003. This separate account was fully consolidated in 2004 per the adoption of SOP 03-1. See Note 1. The carrying values of cash, trading securities and trading securities sold not yet purchased are carried at fair value. The carrying values of short-term securities and investment income accrued approximated their fair values. The carrying value of policy loans, which have no defined maturities, is considered to be fair value. 12. COMMITMENTS AND CONTINGENCIES LITIGATION In August 1999, an amended putative class action complaint captioned LISA MACOMBER, ET AL. VS. TRAVELERS PROPERTY CASUALTY CORPORATION, ET AL. was filed in New Britain, Connecticut Superior Court against the Company, its parent corporation, certain of the Company's affiliates (collectively TLA), and the Company's former affiliate, Travelers Property Casualty Corporation. The amended complaint alleges Travelers Property Casualty Corporation purchased structured settlement annuities from the Company and spent less on the purchase of those structured settlement annuities than agreed with claimants; and that commissions paid to brokers of structured settlement annuities, including an affiliate of the Company, were paid, in part, to Travelers Property Casualty Corporation. The amended complaint was dismissed and following an appeal by plaintiff in September 2002 the Connecticut Supreme Court reversed the dismissal of several of the plaintiff's 41 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) claims. On May 26, 2004, the Connecticut Superior Court certified a nation wide class action. The class action claims against TLA are violation of the Connecticut Unfair Trade Practice Statute, unjust enrichment and civil conspiracy. On June 15, 2004, the Defendants, including TLA, appealed the Connecticut Superior Court's May 26, 2004 class certification order. In 2003 and 2004, several issues in the mutual fund and variable insurance product industries have come under the scrutiny of federal and state regulators. Like many other companies in our industry, the Company has received a request for information from the Securities and Exchange Commission (SEC) and a subpoena from the New York Attorney General regarding market timing and late trading. During 2004 the SEC requested additional information about the Company's variable product operations on market timing, late trading and revenue sharing, and the SEC, the National Association of Securities Dealers and the New York Insurance Department have made inquiries into these issues and other matters associated with the sale and distribution of insurance products. In addition, like many insurance companies and agencies, in 2004 and 2005 the Company received inquiries from certain state Departments of Insurance regarding producer compensation and bidding practices. The Company is cooperating fully with all of these requests and is not able to predict their outcomes. In addition, the Company is a defendant or co-defendant in various other litigation matters in the normal course of business. These include civil actions, arbitration proceedings and other matters arising in the normal course of business out of activities as an insurance company, a broker and dealer in securities or otherwise. In the opinion of the Company's management, the ultimate resolution of these legal and regulatory proceedings would not be likely to have a material adverse effect on the Company's consolidated financial condition or liquidity, but, if involving monetary liability, may be material to the Company's operating results for any particular period. OTHER The Company is a member of the Federal Home Loan Bank of Boston (the Bank), and in this capacity has entered into a funding agreement (the agreement) with the Bank where a blanket lien has been granted to collateralize the Bank's deposits. The Company maintains control of these assets, and may use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. The agreement further states that upon any event of default, the Bank's recovery is limited to the amount of the member's outstanding funding agreement. The amount of the Company's liability for funding agreements with the Bank as of December 31, 2004 is $1.1 billion, included in contractholder funds. The Company holds $60.3 million of common stock of the Bank, included in equity securities. 42 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company has provided a guarantee on behalf of Citicorp International Life Insurance Company, Ltd. (CILIC), an affiliate. The Company has guaranteed to pay claims up to $1 billion of life insurance coverage for CILIC. This guarantee takes effect if CILIC cannot pay claims because of insolvency, liquidation or rehabilitation. Life insurance coverage in force under this guarantee at December 31, 2004 is $466 million. The Company does not hold any collateral related to this guarantee. 13. RELATED PARTY TRANSACTIONS Citigroup and certain of its subsidiaries provide investment management and accounting services, payroll, internal auditing, benefit management and administration, property management and investment technology services to the Company as of December 31, 2004. The Company paid Citigroup and its subsidiaries $41.0 million, $55.3 million and $56.9 million in 2004, 2003 and 2002, respectively, for these services. The amounts due to affiliates related to these services, included in other liabilities at December 31, 2004 and 2003, were insignificant. The Company has received reimbursements from Citigroup and its affiliates related to the Company's increased benefit and lease expenses after the TPC spin-off. See Note 14. These reimbursements totaled $27.4 million, $34.3 million and $15.5 million in 2004, 2003 and 2002, respectively. The Company maintains a short-term investment pool in which its insurance affiliates participate. The position of each company participating in the pool is calculated and adjusted daily. At December 31, 2004 and 2003, the pool totaled approximately $4.1 billion and $3.8 billion, respectively. The Company's share of the pool amounted to $3.3 billion at both December 31, 2004 and 2003, and is included in short-term securities in the consolidated balance sheets. At December 31, 2004 and 2003, the Company had outstanding loaned securities to an affiliate, Citigroup Global Markets, Inc. (CGMI), of $361.5 million and $238.5 million, respectively. Included in other invested assets is a $3.2 billion investment in Citigroup Preferred Stock at December 31, 2004 and 2003, carried at cost. Dividends received on these investments were $203 million in both 2004 and 2003 and $178 million in 2002. See Notes 11 and 17. The Company had investments in an affiliated joint venture, Tishman Speyer, in the amount of $92.9 million and $166.3 million at December 31, 2004 and 2003, respectively. Income of $54.2 million, $18.6 million and $99.7 million was earned on these investments in 2004, 2003 and 2002, respectively. The Company also had an investment in Greenwich Street Capital Partners I, an affiliated private equity investment, in the amount of $45.3 million and $48.3 million at December 31, 2004 and 2003, respectively. Income of $4.5 million, $33.9 million and $0 were earned on this investment in 2004, 2003 and 2002, respectively. In the ordinary course of business, the Company purchases and sells securities through affiliated broker-dealers, including SB. These transactions are conducted on an arm's-length basis. Amounts due to SB were $363.7 million and $134.4 million at December 31, 2004 and 2003, respectively. The Company markets deferred annuity products and life insurance through its affiliate, Smith Barney (SB), a division of CGMI. Annuity deposits related to these products were $877 million, $835 million, and $1.0 billion in 2004, 2003 and 2002, respectively. Life 43 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) premiums were $137.5 million, $114.9 million and $109.7 million in 2004, 2003 and 2002, respectively. Commissions and fees paid to SB were $71.9 million, $70.3 million and $77.0 million in 2004, 2003 and 2002, respectively. The Company also markets individual annuity and life insurance through CitiStreet Retirement Services, a division of CitiStreet LLC, (CitiStreet), a joint venture between Citigroup and State Street Bank. Deposits received from CitiStreet were $1.5 billion, $1.4 billion and $1.6 billion in 2004, 2003 and 2002, respectively. Commissions and fees paid to CitiStreet were $45.9 million, $52.9 million and $54.0 million in 2004, 2003 and 2002, respectively. The Company markets individual annuity products through an affiliate Citibank, N.A. (together with its subsidiaries, Citibank). Deposits received from Citibank were $525 million, $357 million and $321 million in 2004, 2003 and 2002, respectively. Commissions and fees paid to Citibank were $44.3 million, $29.8 million and $24.0 million in 2004, 2003 and 2002, respectively. Primerica Financial Services, Inc. (PFS), an affiliate, is a distributor of products for TLA. PFS or its affiliates sold $983 million, $714 million and $787 million of individual annuities in 2004, 2003 and 2002, respectively. Commissions and fees paid to PFS were $75.4 million, $58.1 million and $60.4 million in 2004, 2003 and 2002, respectively. Primerica Life has entered into a General Agency Agreement with PFS that provides that PFS will be Primerica Life's general agent for marketing all insurance of Primerica Life. In consideration of such services, Primerica Life agreed to pay PFS marketing fees of no less than $10 million per year based upon U.S. gross direct premiums received by Primerica Life. The fees paid by Primerica Life were $15 million in 2004 and $12.5 million in each of 2003 and 2002. During 2004 TLARC was established as a pure captive to reinsure 100% of the statutory based risk associated with universal life contracts. Statutory premiums paid by the Company to TLARC totaled $1,071 million in 2004. Ceding commissions and experience refunds paid by TLARC to the Company totaled $1,054 million in 2004. The net amount paid was $17 million and reported as a reduction of other income. See Note 4. TIC has made a solvency guarantee for an affiliate, CILIC. See Note 12. The Company participates in a stock option plan sponsored by Citigroup that provides for the granting of stock options in Citigroup common stock to officers and other employees. To further encourage employee stock ownership, Citigroup introduced the WealthBuilder stock option program during 1997 and the Citigroup Ownership Program in 2001. Under these programs, all employees meeting established requirements have been granted Citigroup stock options. During 2001, Citigroup introduced the Citigroup 2001 Stock Purchase Program for new employees, which allowed eligible employees of Citigroup, including the Company's employees, to enter into fixed subscription agreements to purchase shares at the market value on the date of the agreements. During 2003 Citigroup introduced the Citigroup 2003 Stock Purchase Program, which allowed eligible employees of Citigroup, including the Company's employees, to enter into fixed subscription agreements to purchase shares at the lesser of the market value on the first date of the offering period or the market value at the close of the offering period. Enrolled employees are permitted to make one purchase prior to the expiration date. The Company's charge to income for these plans was insignificant in 2004, 2003 and 2002. 44 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company also participates in the Citigroup Capital Accumulation Program. Participating officers and other employees receive a restricted stock award in the form of Citigroup common stock. These restricted stock awards generally vest after a three-year period and, except under limited circumstances, the stock can not be sold or transferred during the restricted period by the participant, who is required to render service to the Company during the restricted period. The Company's charge to income for this program was insignificant in 2004, 2003 and 2002. Unearned compensation expense associated with the Citigroup restricted common stock grants, which represents the market value of Citigroup's common stock at the date of grant, is included in other assets in the consolidated balance sheet and is recognized as a charge to income ratably over the vesting period. The Company's charge to income was insignificant during 2004, 2003 and 2002. 14. TRAVELERS PROPERTY CASUALTY SPIN-OFF On April 1, 2004 TPC merged with a subsidiary of The St. Paul Companies to form St. Paul Travelers. On March 27, 2002, TPC, the Company's parent at December 31, 2001, completed its IPO. On August 20, 2002, Citigroup made a tax-free distribution to its stockholders of a majority portion of its remaining interest in TPC. In 2002, prior to the IPO the following transactions occurred: o The common stock of the Company was distributed by TPC to CIHC so the Company would remain an indirect wholly owned subsidiary of Citigroup. o The Company sold its home office buildings in Hartford, Connecticut and a building housing TPC's information systems in Norcross, Georgia to TPC for $68 million. o TLA Holdings LLC, a non-insurance subsidiary valued at $142 million, was contributed to the Company by TPC. o The Company assumed pension, postretirement and post employment benefits payable to all inactive employees of the former Travelers Insurance entities and received $189 million of cash and other assets from TPC to offset these benefit liabilities. In March 2003, TPC paid the Company $22.6 million as a settlement for these benefit-related liabilities. o The Company received 2,225 shares of Citigroup's 6.767% Cumulative Preferred Stock, Series YYY, with a par value of $1.00 per share and a liquidation value of $1 million per share as a contribution from TPC. In connection with the TPC IPO and distribution, the Company's additional paid-in capital increased $1,596 million during 2002 as follows: ($ IN MILLIONS) Citigroup Series YYY Preferred Stock $2,225 TLA Holdings LLC 142 Cash and other assets 189 Pension, postretirement, and post- employment benefits payable (279) Deferred tax assets 98 Deferred tax liabilities (779) -------- $1,596 ======== 45 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) At December 31, 2001, TPC and its subsidiaries were affiliates of the Company and provided certain services to the Company. These services included data processing, facilities management, banking and financial functions, benefits administration and others. During 2002, the Company began phasing out these services. The Company paid TPC $4.9 million and $33.6 million in 2003 and 2002, respectively, for these services. In 2004, The Company did not receive these services. The Company has a license from St. Paul Travelers to use the names "Travelers Life & Annuity," "The Travelers Insurance Company," "The Travelers Life and Annuity Company" and related names in connection with the Company's business. 15. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES The following table reconciles net income to net cash provided by operating activities:
- -------------------------------------------------- ------------ ------------ ------------ FOR THE YEAR ENDED DECEMBER 31, 2004 2003 2002 ($ IN MILLIONS) - -------------------------------------------------- ------------ ------------ ------------ Net Income $1,481 $1,358 $1,082 Adjustments to reconcile net income to net cash provided by operating activities: Realized (gains) losses (16) (37) 322 Deferred federal income taxes (9) 58 185 Amortization of deferred policy acquisition costs 649 501 393 Additions to deferred policy acquisition costs (1,203) (960) (879) Investment income 106 (503) (119) Premium balances (8) 8 (7) Insurance reserves and accrued expenses 604 832 493 Other (79) (443) (402) - -------------------------------------------------- ------------ ------------ ------------ Net cash provided by operations $1,525 $814 $1,068 - -------------------------------------------------- ------------ ------------ ------------
16. NON-CASH INVESTING AND FINANCING ACTIVITIES In 2004, significant non-cash investing and financing activities include the minority interest reversal of joint ventures held by TPC in the amount of $(58) million. In 2003, these activities include the acquisition of real estate through foreclosures of mortgage loans amounting to $53 million and the inclusion of the TPC minority interest in joint ventures in the amount of $63 million. In 2002, these activities include the contribution of $2,225 million of Citigroup YYY Preferred Stock and related deferred tax liability of $779 million; a $17 million COLI asset and $98 million deferred tax asset related to the transfer of $279 million of pension and postretirement benefits, transferred for $172 million cash; and the contribution of a non-insurance company, TLA Holdings, LLC, for $142 million. 46 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 17. SUBSEQUENT EVENT On January 31, 2005, Citigroup announced that it had agreed to sell TIC, including TLAC and certain other domestic and international insurance businesses (the Life Insurance and Annuity Businesses) to MetLife, Inc. (MetLife) pursuant to an Acquisition Agreement (the Agreement). The transaction is subject to certain regulatory approvals, as well as other customary conditions to closing. Citigroup currently anticipates that the intended sale would be completed during this summer. The Company's Primerica segment and certain other assets will remain with Citigroup. Accordingly, prior to the closing, TIC will distribute to its parent company by way of dividend (i) all of the outstanding shares of common stock of the Company's 100% owned subsidiary, Primerica Life Insurance Company (Primerica Life), (ii) all shares of Citigroup's Series YYY and Series YY preferred stock held by the Company and (iii) certain other assets, including certain assets and liabilities related to the Company's share of the non-qualified pension plan, and post retirement benefits related to inactive employees of the former Travelers Insurance entities, assumed during Citigroup's 2002 spin-off of the Travelers Property Casualty operations (collectively, the Dispositions). The Dispositions require certain regulatory approvals. Subject to closing adjustments described in the Agreement, the contemplated sale price would be $11.5 billion. 18. EVENTS (UNAUDITED) SUBSEQUENT TO THE DATE OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT METLIFE, INC. TRANSACTION On July 1, 2005 (the "Acquisition Date"), the Company and other affiliated entities, including substantially all of Citigroup's international insurance businesses, and excluding Primerica Life and its subsidiaries, were acquired by MetLife from CIHC for $12.0 billion. Consideration paid by MetLife for the purchase consisted of approximately $10.9 billion in cash and 22,436,617 shares of MetLife's common stock with a market value of approximately $1.0 billion to Citigroup and approximately $100 million in other transaction costs. Consideration paid to Citigroup will be finalized subject to review of the June 30, 2005 financial statements of Travelers by both MetLife and Citigroup and the interpretation of the provisions of the acquisition agreement (the "Acquisition Agreement") by both parties. In accordance with Statement of Financial Accounting Standard ("SFAS") No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets, the Acquisition is being accounted for by MetLife using the purchase method of accounting, which requires that the assets and liabilities of the Company be identified and measured at their fair value as of the Acquisition Date. As required by the U.S. Securities and Exchange Commission Staff Accounting Bulletin 54, Push Down Basis of Accounting in Financial Statements of a Subsidiary, the purchase method of accounting applied by Metlife to the acquired assets and liabilities associated with the Company has been "pushed down" to the Company. The effect of "push down" accounting on the Company's net assets resulted i n a $1.2 billion decrease i n the Company's equity. Reflected in this charge is an allocation of $814 million of goodwill relating to the acquisition. The fair value of certain assets acquired and liabilities assumed, including goodwill, may be adjusted during the allocation period due to finalization of the purchase price to be paid to Citigroup, agreement between Citigroup and MetLife as to the tax basis purchase price to be allocated to the acquired subsidiaries, and receipt of information regarding the estimation of certain fair values. In no case will the adjustments extend beyond one year from the acquisition date. These adjustments may have a material effect on the financial statements of the Company. In connection with the Acquisition, MetLife also filed with the State of Connecticut Insurance Department (the "Department") an Amended and Restated Form A Statement Regarding the Acquisition of Control of or Merger with a Domestic Insurer, dated April 19, 2005 (the "Form A"), seeking the approval of the Department to acquire control of the Company. The Form A was approved by the Department on June 30, 2005. The Form A includes MetLife's post-Acquisition business plan and financial projections for the Company after the closing date. The Company will generally phase out the products that it currently issues by the end of 2006 which may, over time, result in fewer assets and liabilities. The Company may, however, determine to introduce new products in the future. Prior to the sale, certain restructuring transactions were required pursuant to the Agreement. The following transfers to CIHC occurred on June 30, 2005: 1. All TIC's membership in Keeper Holdings LLC, which holds an interest in CitiStreet LLC; 2. All TIC's shares of Citigroup Series YYY and YY preferred stock; 3. All TIC's shares of American Financial Life Insurance Company stock; 4. All TIC's shares of Primerica Life stock; 5. All TIC's obligations in the amount of $105 million and the related deferred tax assets of $37 million and cash in the amount of $68 million associated with the Connecticut River Plaza lease; 6. All owned intellectual property and all trademarks used in connection with products offered only by or through the Company. This includes, but is not limited to, the "umbrella" trademark and umbrella design trademark, and any trademarks which include the terms "citi," "Citi," the arc design and the blue wave design; 7. All TIC's net obligations in the amount of $443 million related to non-qualified employee benefit plans (including retiree welfare, pension, long-term disability, workers compensation and deferred compensation obligations) and associated assets consisting of $191 million in cash, and other assets, including a deferred tax asset, totaling $252 million; and 8. All TIC's obligations and rights related to future gains and losses under all policies providing long-term care benefits. The State of Connecticut Insurance Department approved the extraordinary dividend of all TIC's ownership interests and obligations as included in items 1 through 6, and 8 as set forth above. Restructuring transaction item number 7, as set forth above, was accounted for as an asset/liability transfer, and did not require approval from the State of Connecticut Insurance Department. LITIGATION A former registered representative of Tower Square Securities, Inc. (Tower Square), a broker-dealer subsidiary of TIC, is alleged to have defrauded individuals by diverting funds for his personal use. In June 2005, the SEC issued a formal order of investigation with respect to Tower Square and served Tower Square with a subpoena. The Securities and Business Investments Division of the Connecticut Department of Banking and the National Association of Securities Dealers (NASD) are also reviewing this matter. Tower Square intends to fully cooperate with the SEC, the NASD and the Department of Banking. One arbitration matter was commenced in June 2005 against Tower Square and the other unaffiliated broker-dealers with whom the registered representative was formerly registered. It is reasonably possible that other matters will be brought regarding this matter. Tower Square intends to defend itself vigorously in all such cases. In addition, the Company is a defendant or co-defendant in various other litigation matters in the normal course of business. These include civil actions, arbitration proceedings and other matters arising in the normal course of business out of activities as an insurance company, a broker and dealer in securities or otherwise. See Note 12 for further discussion. 47 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholder The Travelers Insurance Company: Under date of March 28, 2005, we reported on the consolidated balance sheets of The Travelers Insurance Company and subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of income, changes in shareholder's equity and cash flows for each of the years in the three-year period ended December 31, 2004, which are included in the Form 10-K. In connection with our audits of the aforementioned consolidated financial statements, we also audited the related consolidated financial statement schedules as listed in the accompanying index. These financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statement schedules based on our audits. In our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. As discussed in Note 1 to the consolidated financial statements, the Company changed its methods of accounting and reporting for certain nontraditional long-duration contracts and for separate accounts in 2004, variable interest entities in 2003, and for goodwill and intangible assets in 2002. /s/KPMG LLP Hartford, Connecticut March 28, 2005 48 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE I SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2004 ($ IN MILLIONS)
- ---------------------------------------------------------------------- -------------- -------------- ------------------------ TYPE OF INVESTMENT AMOUNT SHOWN IN COST VALUE BALANCE SHEET(1) - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Fixed Maturities: Bonds: U.S. Government and government agencies and authorities $6,582 $6,840 $6,840 States, municipalities and political subdivisions 364 404 404 Foreign governments 847 927 927 Public utilities 2,516 2,710 2,710 Convertible bonds and bonds with warrants attached 228 245 245 All other corporate bonds 34,601 36,373 36,373 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Total Bonds 45,138 47,499 47,499 Redeemable preferred stocks 176 216 216 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Total Fixed Maturities 45,314 47,715 47,715 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Equity Securities: Common Stocks: Banks, trust and insurance companies 13 17 17 Industrial, miscellaneous and all other 140 177 177 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Total Common Stocks 153 194 194 Nonredeemable preferred stocks 169 173 173 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Total Equity Securities 322 367 367 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Mortgage Loans 2,124 2,124 Real Estate Held For Sale 37 37 Policy Loans 1,121 1,121 Short-Term Securities 3,731 3,731 Trading Securities 1,360 1,360 Other Investments(2)(3)(4) 1,341 1,341 - ---------------------------------------------------------------------- -------------- -------------- ------------------------ Total Investments $55,350 $57,796 ====================================================================== ============== ============== ========================
(1) Determined in accordance with methods described in Notes 1 and 3 of the Notes to Consolidated Financial Statements. (2) Excludes $3.2 billion of Citigroup Inc. preferred stock. See Note 13 of Notes to Consolidated Financial Statements. (3) Also excludes $415 million fair value of investment in affiliated partnership interests. (4) Includes derivatives marked to market and recorded at fair value in the balance sheet. 49 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION ($ IN MILLIONS)
- ----------------------------------- ---------------- ---------------- ----------------- ------------ --------------- ------------ FUTURE POLICY DEFERRED BENEFITS, OTHER POLICY POLICY LOSSES, CLAIMS CLAIMS AND NET BENEFITS, ACQUISITION AND LOSS BENEFITS PREMIUM INVESTMENT CLAIMS AND COSTS EXPENSES(1) PAYABLE REVENUE INCOME LOSSES(2) - ----------------------------------- ---------------- ---------------- ----------------- ------------ --------------- ------------ 2004 Travelers Life & Annuity $2,771 $46,452 $581 $911 $3,012 $2,716 Primerica 2,178 3,696 180 1,315 336 560 - ----------------------------------- ---------------- ---------------- ----------------- ------------ --------------- ------------ Total $4,949 $50,148 $761 $2,226 $3,348 $3,276 =================================== ================ ================ ================= ============ =============== ============ 2003 Travelers Life & Annuity $2,361 $42,023 $532 $1,082 $2,743 $2,816 Primerica 2,034 3,500 161 1,245 315 534 - ----------------------------------- ---------------- ---------------- ----------------- ------------ --------------- ------------ Total $4,395 $45,523 $693 $2,327 $3,058 $3,350 =================================== ================ ================ ================= ============ =============== ============ 2002 Travelers Life & Annuity $2,043 $37,774 $461 $ 730 $2,646 $2,404 Primerica 1,893 3,261 147 1,194 290 527 - ----------------------------------- ---------------- ---------------- ----------------- ------------ --------------- ------------ Total $3,936 $41,035 $608 $1,924 $2,936 $2,931 =================================== ================ ================ ================= ============ =============== ============
- ----------------------------------- ------------------- ------------- ---------- AMORTIZATION OF DEFERRED POLICY OTHER ACQUISITION OPERATING PREMIUMS COSTS EXPENSES WRITTEN - ----------------------------------- ------------------- ------------- ---------- 2004 Travelers Life & Annuity $400 $259 $911 Primerica 249 228 1,310 - ----------------------------------- ------------------- ------------- ---------- Total $649 $487 $2,221 =================================== =================== ============= ========== 2003 Travelers Life & Annuity $266 $240 $1,093 Primerica 235 219 1,251 - ----------------------------------- ------------------- ------------- ---------- Total $501 $459 $2,344 =================================== =================== ============= ========== 2002 Travelers Life & Annuity $174 $190 $ 729 Primerica 219 217 1,184 - ----------------------------------- ------------------ ------------ ------------ Total $393 $407 $1,913 =================================== ================== ============ ============ (1) Includes contractholder funds. (2) Includes interest credited to contractholders. 50 THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE IV REINSURANCE ($ IN MILLIONS)
-------------------------------------- -------------- ---------------- ---------------- ------------ ---------------- PERCENTAGE OF CEDED TO OTHER ASSUMED FROM AMOUNT ASSUMED GROSS AMOUNT COMPANIES OTHER COMPANIES NET AMOUNT TO NET -------------------------------------- -------------- ---------------- ---------------- ------------ ---------------- 2004 Life Insurance In Force $646,184 $397,411 $3,470 $252,243 1.4% Premiums: Life insurance $ 2,609 $ 460 $ 1 $ 2,150 - Accident and health insurance 305 229 - 76 - Property casualty 1 1 - - - -------- -------- ------ -------- ------ Total Premiums $ 2,915 $ 690 $ 1 $ 2,226 - ======== ======== ====== ======== ====== 2003 Life Insurance In Force $593,006 $356,298 $3,519 $240,227 1.4% Premiums: Life insurance $ 2,672 $ 419 $ 1 $ 2,254 - Accident and health insurance 308 235 - 73 - Property casualty 21 21 - - - -------- -------- ------ -------- ------ Total Premiums $ 3,001 $ 675 $ 1 $ 2,327 - ======== ======== ====== ======== ====== 2002 Life Insurance In Force $549,066 $321,940 $3,568 $230,694 1.5% Premiums: Life insurance $ 2,227 $ 377 $ - $ 1,850 - Accident and health insurance 316 242 - 74 - Property casualty 109 109 - - - -------- -------- ------ -------- ------ Total Premiums $ 2,652 $ 728 $ - $ 1,924 - ======== ======== ====== ======== ======
51 PIONEER ANNUISTAR(SM) PLUS PORTFOLIO ARCHITECT PLUS SCUDDER ADVOCATE REWARDS STATEMENT OF ADDITIONAL INFORMATION TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES INDIVIDUAL VARIABLE ANNUITY CONTRACT ISSUED BY THE TRAVELERS INSURANCE COMPANY ONE CITYPLACE HARTFORD, CONNECTICUT 06103-3415 L-19932S December 2005 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) The financial statements of the Registrant and the Report of Independent Registered Public Accounting Firm thereto are contained in the Registrant's Annual Report and are included in the Statement of Additional Information. The financial statements of the Registrant include: Statement of Assets and Liabilities as of December 31, 2004 Statement of Operations for the year ended December 31, 2004 Statement of Changes in Net Assets for the years ended December 31, 2004 and 2003 Statement of Investments as of December 31, 2004 Notes to Financial Statements The consolidated financial statements and schedules of The Travelers Insurance Company and subsidiaries and the report of Independent Registered Public Accounting Firm, are contained in the Statement of Additional Information. The consolidated financial statements of The Travelers Insurance Company and subsidiaries include: Consolidated Statements of Income for the years ended December 31, 2004, 2003 and 2002 Consolidated Balance Sheets as of December 31, 2004 and 2003 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2004, 2003 and 2002 Consolidated Statements of Cash Flows for the years ended December 31, 2004, 2003 and 2002 Notes to Consolidated Financial Statements Financial Statement Schedules (b) EXHIBITS EXHIBIT NUMBER DESCRIPTION ------ ----------- 1. Resolution of The Travelers Insurance Company Board of Directors authorizing the establishment of the Registrant. (Incorporated herein by reference to Exhibit 1 to the Registration Statement on Form N-4, filed May 23, 1997.) 2. Not Applicable. 3(a). Distribution and Principal Underwriting Agreement among the Registrant, The Travelers Insurance Company and Travelers Distribution LLC. (Incorporated herein by reference to Exhibit 3(a) to Post Effective Amendment No. 4 to the Registration Statement on Form N-4, File No. 333-58783 filed February 26, 2001.) 3(b). Form of Selling Agreement. (Incorporated herein by reference to Exhibit 3(b) to Post-Effective Amendment No. 2 to the Registration Statement on Form N-4, File No. 333-65942 filed April 15, 2003.) 4(a). Form of Variable Annuity Contract. (Incorporated herein by reference to Exhibit 4 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-101778, filed April 17, 2003.) 4(b). Form of Guaranteed Minimum Withdrawal Rider. (Incorporated herein by reference to Exhibit 4 to Post-Effective Amendment No. 4 to the Registration Statement on Form N-4, File No. 333-101778, filed November 19, 2004.) 4(c). Form of Guaranteed Minimum Withdrawal Rider for Life. (Incorporated herein by reference to Exhibit 4(n) to Post-Effective Amendment No. 7 to the Registration Statement on Form N-4, File No. 333-65926, filed December 23, 2005.) 5. Form of Application. (Incorporated herein by reference to Exhibit 5 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-101778 filed April 17, 2003.) 6.(a) Charter of The Travelers Insurance Company, as amended on October 19, 1994. (Incorporated herein by reference to Exhibit 6(a) to the Registration Statement on Form N-4, File No. 333-40193, filed November 13, 1998.) 6.(b) By-Laws of The Travelers Insurance Company, as amended on October 20, 1994. (Incorporated herein by reference to Exhibit 3(a)(ii) to Registration Statement on Form S-2, File No. 33-58677, filed via EDGAR on April 18, 1995.) 7. Form of Reinsurance Contract. (Incorporated herein by reference to Exhibit 7 to Post-Effective Amendment No. 2 to the Registration Statement on Form N-4, File No. 333-65942 filed April 15, 2003.) 8. Form of Participation Agreement. (Incorporated herein by reference to Exhibit 8 to Post-Effective Amendment No. 8 to the Registration Statement on Form N-4, File No. 333-101778, filed April 21, 2005). 9. Opinion of Counsel as to the legality of securities being registered. (Incorporated herein by reference to Exhibit 9 to the Registration Statement on Form N-4, filed December 11, 2002.) 10. Consent of KPMG LLP, Independent Registered Public Accounting Firm. Filed herewith. 11. Not Applicable. 12. Not Applicable. 13. Not applicable. 15. Powers of Attorney authorizing Michele H. Abate, Thomas S. Clark, John E. Connolly, Jr., Mary K. Johnson, James L. Lipscomb, Gina C. Sandonato, Myra L. Saul, and Marie C. Swift as signatory for C. Robert Henrikson, Leland C. Launer, Jr., Lisa M. Weber, Stanley J. Talbi, and Joseph J. Prochaska, Jr. (Incorporated herein by reference to Post-Effective Amendment No. 10 to the Registration Statement on Form N-4, File No. 333-101778, filed September 20, 2005). ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH INSURANCE COMPANY - ---------------- ---------------------- C. Robert Henrikson (a) Director, Chairman, President and Chief Executive Officer Leland C. Launer, Jr. (e) Director Lisa M. Weber (a) Director Steven A. Kandarian (b) Executive Vice President and Chief Investment Officer James L. Lipscomb (a) Executive Vice President and General Counsel Gwenn L. Carr (a) Senior Vice President and Secretary Michael K. Farrell (b) Senior Vice President Hugh C. McHaffie (d) Senior Vice President Joseph J. Prochaska, Jr. (a) Senior Vice President and Chief Accounting Officer Stanley J. Talbi (a) Senior Vice President and Chief Financial Officer Anthony J. Williamson (a) Senior Vice President and Treasurer Roberto Baron (a) Vice President and Senior Actuary Steven J. Brash (a) Vice President William D. Cammarata (f) Vice President Elizabeth M. Forget (g) Vice President S. Peter Headley (h) Vice President and Assistant Secretary Daniel D. Jordan (d) Vice President and Assistant Secretary Bennett Kleinberg (c) Vice President and Actuary Paul L. LeClair (d) Vice President and Actuary Gene L. Lunman (c) Vice President Joseph J. Massimo (f) Vice President Daniel A. O'Neill (b) Vice President Mark S. Reilly (c) Vice President Mark J. Remington (c) Vice President Jonathan L. Rosenthal (b) Chief Hedging Officer Kevin M. Thornwarth (b) Vice President Mark. H. Wilsmann (b) Vice President Louis P. DiGiacomo (a) Assistant Vice President Christopher A. Kremer (d) Assistant Vice President and Actuary Sharon A. Owens (c) Assistant Vice President Ellen N. Derrig (b) Assistant Secretary William P. Gardella (b) Assistant Secretary Nancy J. Hammer (i) Assistant Secretary Donald J. Healy, Jr. (j) Assistant Secretary Mark T. Pallis (k) Assistant Secretary Edward M. Pollock (k) Assistant Secretary Gregory M. Harrison (a) Assistant Treasurer James W. Koeger (l) Assistant Treasurer Patricia M. Wersching (l) Assistant Treasurer Joseph A. Zdeb (a) Assistant Treasurer
PRINCIPAL BUSINESS ADDRESS: (a) One MetLife Plaza, 27-01 Queens Plaza North, Long Island City, New York 11101 (b) 10 Park Avenue, Morristown, NJ 07962 (c) 185 Asylum Street, Hartford, CT 06103 (d) 501 Boylston Street, Boston, MA 02116 (e) 501 Route 22, Bridgewater, NJ 08807 (f) 18210 Crane Nest Drive, Tampa, FL 33647 (g) 260 Madison Avenue, New York, NY 10016 (h) 6750 Poplar Avenue, Germantown, TN 38138 (i) 2400 Lakeview Parkway, Alpharetta, GA 30004 (j) 2021 Spring Road, Oak Brook, IL 60523 (k) 400 South El Camino Real, San Mateo, CA 94402 (l) 13045 Tesson Ferry Road, St. Louis, MO 63128 ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The Registrant and Depositor and ultimately controlled by MetLife, Inc. An organizational chart for MetLife, Inc. follows: ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF SEPTEMBER 30, 2005 The following is a list of subsidiaries of MetLife, Inc. updated as of September 30, 2005. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, if any) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Bank National Association (USA) C. Exeter Reassurance Company, Ltd. (Bermuda) D. MetLife Taiwan Insurance Company Limited (Taiwan) E. Metropolitan Tower Life Company (DE) 1. TH Tower NGP, LLC (DE) 2. Partners Tower, L.P. - a 99% limited partnership interest of Partners Tower, L.P. is held by Metropolitan Tower Life Company and 1% general partnership interest is held by TH Tower NGP, LLC (DE) 3. TH Tower Leasing, LLC (DE) 4. CitiStreet Retirement Services LLC (NJ) a) CitiStreet Financial Services LLC (NJ) b) CitiStreet Funds Management LLC (NJ) c) CitiStreet Associates LLC (DE) 1) CitiStreet Equities LLC (NJ) 2) CitiStreet Associates of Montana LLC (MT) 3) CitiStreet Associates of Texas, Inc. (TX) 4) CitiStreet Associates of Hawaii LLC (HI) 5) CitiStreet Associates Insurance Agency of Massachusetts LLC (MA) F. MetLife Pensiones S.A. (Mexico)- 97.4738% is owned by Metlife, Inc. and 2.5262% is owned by Metropolitan Asset Management Corporation. G. MetLife Chile Inversiones Limitada (Chile)- 99.9999999% is owned by MetLife, Inc. and 0.0000001% is owned by Natiloportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile)- 99.99% is owned by MetLife Chile Inversiones Limitada, and 0.01% is owned by MetLife International Holdings, Inc. a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile)- 99.99% is owned by MetLife Chile Seguros de Vida S.A., and 0.01% is owned by MetLife Chile Inversiones Limitada. H. MetLife Mexico S.A. (Mexico)- 98.70541% is owned by Metlife, Inc., 1.27483% is owned by Metropolitan Asset Management Corporation and 0.01976% is owned by Metlife International Holdings, Inc. 1. MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. (Mexico) and 0.01% is owned by MetLife Pensiones S.A. a) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. and 0.01% is owned by MetLife Mexico S.A. (Mexico) b) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. and 0.01% is owned by MetLife Mexico S.A. (Mexico) I. MetLife Mexico Servicios, S.A. de C.V. (Mexico)- 98% is owned by MetLife, Inc. and 2% is owned by MetLife International Holdings, Inc. J. Metropolitan Life Seguros de Vida S.A. (Uruguay) K. MetLife Securities, Inc. (DE) L. Enterprise General Insurance Agency, Inc. (DE) 1. MetLife General Insurance Agency of Texas, Inc. (DE) 2. MetLife General Insurance Agency of Massachusetts, Inc. (MA) 3. Nathan and Lewis Associates of Texas, Inc. (TX) 4. Nathan and Lewis Associates Insurance Agency of Massachusetts, Inc. (MA) 1 M. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. Met P&C Managing General Agency, Inc. (TX) 5. MetLife Auto & Home Insurance Agency, Inc. (RI) 6. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 7. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 8. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) N. Cova Corporation (MO) 1. Texas Life Insurance Company (TX) a) Texas Life Agency Services, Inc. (TX) b) Texas Life Agency Services of Kansas, Inc. (KS) 2. Cova Life Management Company (DE) O. MetLife Investors Insurance Company (MO) 1. MetLife Investors Insurance Company of California (CA) P. First MetLife Investors Insurance Company (NY) Q. Walnut Street Securities, Inc. (MO) 1. Walnut Street Advisers, Inc. (MO) R. Newbury Insurance Company, Limited (BERMUDA) S. MetLife Investors Group, Inc. (DE) 1. MetLife Investors USA Insurance Company (DE) 2. MetLife Investors Distribution Company (MO) 3. Met Investors Advisory, LLC (DE) 4. MetLife Investors Financial Agency, Inc. (TX) 2 T. MetLife International Holdings, Inc. (DE) 1. Natiloportem Holdings, Inc. (DE) a) Servicios Administrativos Gen, S.A. de C.V. (Mexico) (1) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. (2) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 2. MetLife India Insurance Company Private Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 3. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.9987% is owned by Metlife International Holdings, Inc. and 0.0013% is owned by Natiloporterm Holdings, Inc. 4. Metropolitan Life Seguros de Retiro S.A. (Argentina)- 95% is owned by MetLife International Holdings, Inc. and 5% is owned by Natiloportem Holdings, Inc. 5. Metropolitan Life Seguros de Vida S.A. (Argentina)- 95% is owned by MetLife International Holdings, Inc. and 5% is owned by Natiloportem Holdings, Inc. a) Met AFJP S.A. (Argentina)- 95% of the shares of Met AFJP S.A. are owned by Metropolitan Life Seguros de Vida S.A. and 5% of the shares of Met AFJP S.A. are held by Metropolitan Life Seguros de Retiro S.A. 6. MetLife Insurance Company of Korea Limited (South Korea) 7. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 99.999999% is owned by MetLife International Holdings, Inc. and 0.000001% is owned by Natiloportem Holdings, Inc. a) CitiInsurance de Brasil Vida e Previdencia S.A. (Brazil) 8. MetLife Global, Inc. (DE) 9. MetLife Administradora de Fundos Multipatrocinados Ltda (Brazil) - 99.999978% is owned by MetLife International Holdings, Inc. and 0.000022% is owned by Natiloportem Holdings, Inc. 10. MetLife Insurance Company Limited (Hong Kong) 11. MetLife General Insurance Limited (Australia) 12. MetLife Limited (United Kingdom) 13. MetLife Insurance S.A./NV (Belgium) - 99.9% is owned by MetLife International Holdings, Inc. and 0.1% is owned by third parties. 14. MetLife Services Limited (United Kingdom) 15. Siembra Seguros de Vida S.A. (Argentina) - 95.25% is owned by MetLife International Holdings, Inc. and 4.75% is owned by Natiloportem Holdings, Inc. 16. MetLife International Insurance Ltd. (Bermuda) 17. MetLife Insurance Limited (Australia) a) MetLife Insurance and Investment Trust (Australia) 18. Siembra Seguros de Retiro S.A. (Argentina) - 95.25% is owned by MetLife International Holdings, Inc. and 4.75% is owned by; Natiloportem Holdings, Inc. 19. Best Market S.A. (Argentina) - 95% is owned by MetLife International Holdings, Inc. and 5% is held by Natiloportem Holdings, Inc. 20. Compania Previsional MetLife S.A. (Argentina) - 99.999978% is owned by MetLife International Holdings, Inc. and 0.000022% is owned by Natiloportem Holdings, Inc. a) Siembra AFJP S.A. (Argentina) - 99.999978% is owned by MetLife International Holdings, Inc. and 0.000022% is owned by Natiloportem Holdings, Inc. 21. MetLife Worldwide Holdings, Inc. a) MetLife Towarzystwo Ubezpieczen na Zycie S.A. (Poland) b) CDMK, Inc. (Korea) c) CitiInsurance Reinsurance (Bermuda) Ltd. (Bermuda) d) MetLife Direct Co., Ltd. (Japan) U. Metropolitan Life Insurance Company (NY) 1. 334 Madison Avenue BTP-D Holdings, LLC (DE) 2. 334 Madison Avenue BTP-E Holdings, LLC (DE) 3. 334 Madison Avenue Euro Investments, Inc. (DE) a) Park Twenty Three Investments Company (United Kingdom)- 99% of the voting control of Park Twenty Three Investments Company is held by 334 Madison Euro Investments, Inc. and 1% voting control is held by St. James Fleet Investments Two Limited. (1) Convent Station Euro Investments Four Company (United Kingdom)- 99% of the voting control of Convent Station Euro Investments Four Company is held by Park Twenty Three Investments Company and 1% voting control is held by 334 Madison Euro Investments, Inc. as nominee for Park Twenty Three Investments Company. 4. St. James Fleet Investments Two Limited (Cayman Islands)- 34% of the shares of St. James Fleet Investments Two Limited is held by Metropolitan Life Insurance Company. 5. One Madison Investments (Cayco) Limited (Cayman Islands)- 89.9% of the voting control of One Madison Investments (Cayco) Limited is held by Metropolitan Life Insurance Company and 10.1% voting control is held by Convent Station Euro Investments Four Company. 6. CRB Co, Inc. (MA)- AEW Real Estate Advisors, Inc. holds 49,000 preferred non-voting shares of CRB Co., Inc. and AEW Advisors, Inc. holds 1,000 preferred non-voting shares of CRB, Co., Inc. 7. GA Holding Corp. (MA) 3 9. L/C Development Corporation (CA) 10. Benefit Services Corporation (GA) 11. Thorngate, LLC (DE) 12. Alternative Fuel I, LLC (DE) 13. Transmountain Land & Livestock Company (MT) 14. MetPark Funding, Inc. (DE) 15. HPZ Assets LLC (DE) 16. MetDent, Inc. (DE) 17. Missouri Reinsurance (Barbados), Inc. (Barbados) 18. Metropolitan Tower Realty Company, Inc. (DE) 19. MetLife (India) Private Ltd. (India) 20. Metropolitan Marine Way Investments Limited (Canada) 21. MetLife Private Equity Holdings, LLC (DE) 22. 23rd Street Investments, Inc. (DE) a) Mezzanine Investment Limited Partnership-BDR (DE). Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-BDR and 23rd Street Investments, Inc. is a 1% general partner. b) Mezzanine Investment Limited Partnership-LG (DE). 23rd Street Investments, Inc. is a 1% general partner of Mezzanine Investment Limited Partnership-LG. Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-LG. 23. Metropolitan Realty Management, Inc. (DE) 24. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 25. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 26. Bond Trust Account A (MA) 27. Metropolitan Asset Management Corporation (DE) a) MetLife Capital Credit L.P. (DE)- 90% of MetLife Capital Credit L.P. is held directly by Metropolitan Life Insurance Company and 10% General Partnership interest of MetLife Capital Credit L.P. is held by Metropolitan Asset Management Corporation. b) MetLife Capital Limited Partnership (DE)- 73.78% Limited Partnership interest is held directly by Metropolitan Life Insurance Company and 9.58% Limited Partnership and 16.64% General Partnership interests are held by Metropolitan Asset Management Corporation. c) MetLife Investments Asia Limited (Hong Kong)- One share of MetLife Investments Asia Limited is held by W&C Services, Inc., a nominee of Metropolitan Asset Management Corporation. d) MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. e) LA Investments, S.A. (Argentina)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. f) MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. 28. New England Life Insurance Company (MA) a) MetLife Advisers, LLC (MA) b) New England Securities Corporation (MA) c) Omega Reinsurance Corporation (AZ) 29. GenAmerica Financial, LLC (MO) a) GenAmerica Capital I (DE) b) General American Life Insurance Company (MO) (1) Paragon Life Insurance Company (MO) (2) GenAmerica Management Corporation (MO) 5 (3) Reinsurance Group of America, Incorporated (MO) - (51.6%) (a) Reinsurance Company of Missouri, Incorporated (MO) (i) RGA Reinsurance Company (MO) (A) Fairfield Management Group, Inc. (MO) (aa) Reinsurance Partners, Inc. (MO) (bb) Great Rivers Reinsurance Management, Inc. (MO) (cc) RGA (U.K.) Underwriting Agency Limited (United Kingdom) (b) RGA Worldwide Reinsurance Company Ltd. (Barbados) (c) RGA Sigma Reinsurance SPC (Cayman Islands) (d) RGA Americas Reinsurance Company, Ltd. (Barbados) (e) RGA Reinsurance Company (Barbados) Ltd. (Barbados) (i) RGA Financial Group, L.L.C. (DE)- 80% of RGA Financial Group, L.L.C. is held by RGA Reinsurance Company (Barbados) Ltd. and 20% of RGA Financial Group, LLC is held by RGA Reinsurance Company (f) RGA Life Reinsurance Company of Canada (Canada) (g) RGA International Corporation (Nova Scotia) (i) RGA Financial Products Limited (Canada) (h) RGA Holdings Limited (U.K.) (United Kingdom) (i) RGA UK Services Limited (United Kingdom) (ii) RGA Capital Limited U.K. (United Kingdom) (iii) RGA Reinsurance (UK) Limited (United Kingdom) (i) RGA South African Holdings (Pty) Ltd. (South Africa) (i) RGA Reinsurance Company of South Africa Limited (South Africa) (j) RGA Australian Holdings PTY Limited (Australia) (i) RGA Reinsurance Company of Australia Limited (Australia) (ii) RGA Asia Pacific PTY, Limited (Australia) (k) General American Argentina Seguros de Vida, S.A. (Argentina) 6 (l) RGA Technology Partners, Inc. (MO) (m) RGA International Reinsurance Company (Ireland) (n) RGA Capital Trust I 30. Corporate Real Estate Holdings, LLC (DE) 31. Ten Park SPC (CAYMAN ISLANDS ) - 1% voting control is held by Metropolitan Asset Management Corporation 32. MetLife Tower Resources Group, Inc. (DE) 33. Headland Development Corporation (CA) 34. Headland - Pacific Palisades, LLC (CA) 35. Headland Properties Associates (CA) 36. Krisman, Inc. (MO) 37. Special Multi-Asset Receivables Trust (DE) 38. White Oak Royalty Company (OK) 39. 500 Grant Street GP LLC (DE) 40. 500 Grant Street Associates Limited Partnership (CT) - 99% is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC V. MetLife Capital Trust II (DE) W. MetLife Capital Trust III (DE) X. The Travelers Insurance Company (CT) 1. 190 LaSalle Associates L.L.C. (DE) - 50% is owned by a third party 2. 440 South LaSalle LLC (DE) 3. BHI Rodeo LLC (DE) 4. Citigroup Investments Oakmont Lane, LLC (DE) - 50% is owned by a third party 5. Citigroup Alternative Investments Opportunity Fund I, LLC (DE) - 33% is owned by third party 6. Citigroup Alternative Investments Opportunity Fund III Associates, LLC (CT) - 33% is owned by third party a) Tishman Speyer/Citigroup Alternative Investments Associates III, LLC (DE) 7. Pilgrim Investments Highland Park, LLC (CO) 8. Pilgrim Investments Schaumberg Windy Point, LLC (DE) 9. Pilgrim Investments York Road, LLC(DE) 10. Euro TI Investments LLC (DE) 11. Greenwich Street Investments, L.L.C. (DE) a) Greenwich Street Capital Offshore Fund, Ltd (Virgin Islands) 12. Hollow Creek, L.L.C. (CT/NC) 13. One Financial Place Corporation (DE) - 100% is owned in the aggregate by The Travelers Insurance Company and The Travelers Life and Annuity Company. a) One Financial Place, LP (DE) 14. One Financial Place Holdings, LLC (DE)-100% is owned in the aggregate by The Travelers Insurace Company and The Travelers Life and Annuity Company. 15. Plaza LLC (CT) a) Travelers Asset Management International Company LLC (NY) b) Tower Square Securities, Inc. (CT) 1) Tower Square Securities Insurance Agency of Alabama, Inc. (AL) 2) Tower Square Securities Insurance Agency of Massachusetts, Inc. (MA) 3) Tower Square Securities Insurance Agency of New Mexico, Inc. (NM) 4) Tower Square Securities Insurance Agency of Ohio, Inc. (OH) (99%) 5) Tower Square Securities Insurance Agency of Texas, Inc. (TX) c) Travelers Distribution LLC (DE) d) Travelers Investment Advisers, Inc. (DE) 16. TIC European Real Estate LP, LLC (DE) 17. TL&A Insurance Distribution LLC (DE) 18. Travelers European Investments LLC (CT) 19. Travelers International Investments Ltd. (Cayman Islands) 20. Tribeca Citigroup Investments Ltd. (Cayman Islands) (68%) - 68% is owned by The Travelers Insurance Company, 4% is owned by The Travelers Life and Annuity Company and 28% is owned by a third party. a) Tribeca Global Convertible Investments Ltd. (Cayman Islands) (83%) 21. Trumbull Street Equity Investments LLC (DE) a) Tandem EGI/C Investments, L.P. (DE) - The General Partner is Trumbull Street Equity Investments LLC. 22. The Travelers Life and Annuity Company (CT) a) Euro TL Investments LLC (DE) b) SSB Private Selections, LLC (DE) (50%) 1) Solomon Smith Barney Private Selection Fund I, LLC (NY) 23. TLA Holdings LLC (DE) a) The Prospect Company (DE) 1) Panther Valley, Inc. (NJ) 24. Umbrella Bear, Inc. (FL) 25. Ryan/Pilgrim Investments Chandler Freeways LLC (DE) 26. TRAL & Co. (DE) - is a general partner. Its partners are The Travelers Insurance Company and The Travelers Life and Annuity Company. 27. Tribeca Distressed Securities LLC (DE) Y. The Travelers Life & Annuity Reinsurance Company (SC) Z. Citicorp Life Insurance Company (AZ) 1. First Citicorp Life Insurance Company (NY) 2. Euro CL Investments LLC (DE) AA. Trumbull Street Investments LLC (DE) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. In addition to the entities shown on the organizational chart, MetLife, Inc. (or where indicated, a subsidiary) also owns interests in the following entities: 1) Metropolitan Life Insurance Company owns varying interests in certain mutual funds distributed by its affiliates. These ownership interests are generally expected to decrease as shares of the funds are purchased by unaffiliated investors. 2) Metropolitan Life Insurance Company indirectly owns 100% of the non-voting preferred stock of Nathan and Lewis Associates Ohio, Incorporated, an insurance agency. 100% of the voting common stock of this company is held by an individual who has agreed to vote such shares at the direction of N.L. HOLDING CORP. (DEL), a direct wholly owned subsidiary of MetLife, Inc. 3) Mezzanine Investment Limited Partnerships ("MILPs"), Delaware limited partnerships, are investment vehicles through which investments in certain entities are held. A wholly owned subsidiary of Metropolitan Life Insurance Company serves as the general partner of the limited partnerships and Metropolitan Life Insurance Company directly owns a 99% limited partnership interest in each MILP. The MILPs have various ownership and/or debt interests in certain companies. 4) New England Life Insurance Company ("NELICO"), owns 100% of the voting stock of Omega Reinsurance Corporation. NELICO does not have a financial interest in this subsidiary. 5) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. NOTE: THE METLIFE, INC. ORGANIZATIONAL CHART DOES NOT INCLUDE REAL ESTATE JOINT VENTURES AND PARTNERSHIPS OF WHICH METLIFE, INC. AND/OR ITS SUBSIDIARIES IS AN INVESTMENT PARTNER. IN ADDITION, CERTAIN INACTIVE SUBSIDIARIES HAVE ALSO BEEN OMITTED. 7 ITEM 27. NUMBER OF CONTRACT OWNERS As of October 31, 2005, there were 9,280 Contract Owners. ITEM 28. INDEMNIFICATION Sections 33-770 to 33-778, inclusive of the Connecticut General Statutes ("C.G.S.") regarding indemnification of directors and officers of Connecticut corporations provides in general that Connecticut corporations shall indemnify their officers, directors and certain other defined individuals against judgments, fines, penalties, amounts paid in settlement and reasonable expenses actually incurred in connection with proceedings against the corporation. The corporation's obligation to provide such indemnification generally does not apply unless (1) the individual is wholly successful on the merits in the defense of any such proceeding; or (2) a determination is made (by persons specified in the statute) that the individual acted in good faith and in the best interests of the corporation and in all other cases, his conduct was at least not opposed to the best interests of the corporation, and in a criminal case he had no reasonable cause to believe his conduct was unlawful; or (3) the court, upon application by the individual, determines in view of all of the circumstances that such person is fairly and reasonably entitled to be indemnified, and then for such amount as the court shall determine. With respect to proceedings brought by or in the right of the corporation, the statute provides that the corporation shall indemnify its officers, directors and certain other defined individuals, against reasonable expenses actually incurred by them in connection with such proceedings, subject to certain limitations. C.G.S. Section 33-778 provides an exclusive remedy; a Connecticut corporation cannot indemnify a director or officer to an extent either greater or less than that authorized by the statute, e.g., pursuant to its certificate of incorporation, by-laws, or any separate contractual arrangement. However, the statute does specifically authorize a corporation to procure indemnification insurance to provide greater indemnification rights. The premiums for such insurance may be shared with the insured individuals on an agreed basis. The Depositor's parent, MetLife, Inc. has secured a Financial Institution Bond in the amount of $50,000,000, subject to a $5,000,000 deductible. MetLife maintains Directors' and Officers' Liability insurance coverage with limits of $400 million under which the Depositor and Travelers Distribution LLC, the Registrant's underwriter (the "Underwriter"), as well as certain other subsidiaries of MetLife are covered. RULE 484 UNDERTAKING Insofar as indemnification for liability arising under 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 liability (other than the payment by the registrant of expenses incurred or paid 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 its 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. ITEM 29. PRINCIPAL UNDERWRITER (a) Travelers Distribution LLC One Cityplace Hartford, CT 06103-3415 Travelers Distribution LLC also serves as principal underwriter and distributor for the following funds: The Travelers Fund U for Variable Annuities, The Travelers Fund VA for Variable Annuities, The Travelers Fund BD for Variable Annuities, The Travelers Fund BD II for Variable Annuities, The Travelers Fund BD III, The Travelers Fund BD IV for Variable Annuities, The Travelers Fund ABD II for Variable Annuities, The Travelers Separate Account PF for Variable Annuities, The Travelers Separate Account PF II for Variable Annuities, The Travelers Separate Account QP for Variable Annuities, The Travelers Separate Account TM for Variable Annuities, The Travelers Separate Account TM II for Variable Annuities, The Travelers Separate Account Five for Variable Annuities, The Travelers Separate Account Six for Variable Annuities, The Travelers Separate Account Seven for Variable Annuities, The Travelers Separate Account Eight for Variable Annuities, The Travelers Separate Account Nine for Variable Annuities, The Travelers Separate Account Ten for Variable Annuities, The Travelers Fund UL for Variable Life Insurance, The Travelers Fund UL II for Variable Life Insurance, The Travelers Fund UL III for Variable Life Insurance, The Travelers Variable Life Insurance Separate Account One, The Travelers Variable Life Insurance Separate Account Two, The Travelers Variable Life Insurance Separate Account Three, The Travelers Variable Life Insurance Separate Account Four, The Travelers Separate Account MGA, The Travelers Separate Account MGA II, The Travelers Growth and Income Stock Account for Variable Annuities, The Travelers Quality Bond Account for Variable Annuities, The Travelers Money Market Account for Variable Annuities, The Travelers Timed Growth and Income Stock Account for Variable Annuities, The Travelers Timed Short-Term Bond Account for Variable Annuities and The Travelers Timed Aggressive Stock Account for Variable Annuities, Citicorp Life Variable Annuity Separate Account and First Citicorp Life Variable Annuity Separate Account, TIC Separate Account Eleven for Variable Annuities, TLAC Separate Account Twelve for Variable Annuities, TIC Separate Account Thirteen for Variable Annuities, TLAC Separate Account Fourteen for Variable Annuities, TIC Variable Annuity Separate Account 2002, and TLAC Variable Annuity Separate Account 2002. (b) NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH UNDERWRITER ---------------- ---------------- Leslie Sutherland (a) President Steven J. Brash (a) Vice President Debora L. Buffington (b) Vice President, Director of Compliance Charles M. Deuth (a) Vice President, National Accounts Anthony J. Dufault (b) Vice President James R. Fitzpatrick (b) Vice President Elizabeth M. Forget (c) Vice President and Chief Marketing Officer Helayne F. Klier (c) Vice President Paul M. Kos (b) Vice President Paul A. LaPiana (b) Vice President, Life Insurance Distribution Division Richard C. Pearson (b) Vice President and Secretary John E. Petersen (e) Vice President Robert H. Petersen (e) Vice President and Chief Financial Officer Deron J. Richens (b) Vice President Paul A. Smith (a) Vice President Cathy Sturdivant (b) Vice President Paulina Vakouros (c) Vice President Edward C. Wilson (b) Vice President and Chief Distribution Officer James R. Allen (b) Assistant Vice President Robert H. Bruce (b) Assistant Vice President Jeffrey A. Tupper (b) Assistant Vice President Anthony J. Williamson (a) Treasurer Jonnie L. Crawford (b) Assistant Secretary Gregory M. Harrison Assistant Treasurer James W. Koeger (d) Assistant Treasurer Michael K. Farrell (f) Manager Craig W. Markham (d) Manager William J. Toppeta (a) Manager (a) One MetLife Plaza, 27-01 Queens Plaza North, Long Island City, New York 11101 (b) 5 Park Plaza, Suite 1900, Irvine, CA 92614 (c) 260 Madison Avenue, New York, NY 10016 (d) 13045 Tesson Ferry Road, St. Louis, MO 63128 (e) 485-E U.S. Highway 1 South, 4th Floor, Iselin, NJ 08830 (f) 10 Park Avenue, Morristown, NJ 07962 (c) Not Applicable ITEM 30. LOCATION OF ACCOUNTS AND RECORDS (1) The Travelers Insurance Company One Cityplace Hartford, Connecticut 06103-3415 ITEM 31. MANAGEMENT SERVICES Not Applicable. ITEM 32. UNDERTAKINGS The undersigned Registrant hereby undertakes: (a) To file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than sixteen months old for so long as payments under the variable annuity contracts may be accepted; (b) To include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) 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; and (c) 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. The Company hereby represents: (a) That the aggregate charges under the Contracts of the Registrant described herein are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this amendment to this registration statement and has caused this amendment to this registration statement to be signed on its behalf, in the City of Hartford, and State of Connecticut, on this 20th day of December, 2005. THE TRAVELERS SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES (Registrant) THE TRAVELERS INSURANCE COMPANY (Depositor) By: /s/ Bennett D. Kleinberg ------------------------------------------------ Bennett D. Kleinberg, Vice President and Actuary As required by the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated on the 20th day of December, 2005. *C. ROBERT HENRIKSON Director, Chairman, President and - -------------------------------------- Chief Executive Officer (C. Robert Henrikson) *STANLEY J. TALBI Senior Vice President and Chief - -------------------------------------- Financial Officer (Stanley J. Talbi) *JOSEPH J. PROCHASKA, JR. Senior Vice President and Chief - -------------------------------------- Accounting Officer (Joseph J. Prochaska, Jr.) *LELAND C, LAUNER, JR. Director - -------------------------------------- (Leland C. Launer, Jr.) *LISA M. WEBER Director - -------------------------------------- (Lisa M. Weber) *By: /s/ Thomas S. Clark --------------------------------- Thomas S. Clark, Attorney-in-fact EXHIBIT INDEX EXHIBIT NO. DESCRIPTION ----------- ----------- 10. Consent of KPMG LLP, Independent Registered Public Accounting Firm. EX-10 2 c40213_ex10.txt EXHIBIT 10 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors The Travelers Insurance Company: We consent to the use of our reports included herein and to the reference to our firm under the heading "Independent Registered Public Accounting Firm". Our reports on The Travelers Insurance Company and subsidiaries refer to changes in the Company's methods of accounting and reporting for certain nontraditional long-duration contracts and for separate accounts in 2004, for variable interest entities in 2003, and for goodwill and intangible assets in 2002. /s/ KPMG LLP Hartford, Connecticut December 20, 2005 -----END PRIVACY-ENHANCED MESSAGE-----