485BPOS 1 e13329_485bpos.txt FORM 485BPOS As Filed With The Securities and Exchange Commission on May 1, 2002 File Nos. 333-63730 811-4865 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 1 REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 39 (Check appropriate box or boxes.) VARIABLE ACCOUNT A (Exact Name of Registrant) American International Life Assurance Company of New York (Name of Depositor) 80 Pine Street, New York, NY 10005 (Address of Depositor's Principal Executive Offices) (Zip Code) (302) 594-2978 (Depositor's Telephone Number, including Area Code) Kenneth D. Walma, Esq. AIG Life Insurance Company One Alico Plaza Wilmington, Delaware 19899 (Name and Address of Agent for Service) Copies to: Michael Berenson, Esq. and Ernest T. Patrikis, Esq. Morgan, Lewis & Bockius LLP Senior Vice President and General Counsel 1111 Pennsylvania Ave, NW American International Group, Inc. Washington, DC 20004 70 Pine Street New York, NY 10270 Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this filing. It is proposed that this filing will become effective (check appropriate box) |_| immediately upon filing pursuant to paragraph (b) of Rule 485 |X| on May 1, 2002 pursuant to paragraph (b) of Rule 485 |_| 60 days after filing pursuant to paragraph (a)(i) of Rule 485 |_| on ______ pursuant to paragraph (a)(i) of Rule 485 |_| on _____ pursuant to paragraph (a)(ii) 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: Flexible Premium Deferred Variable Annuity Contract. PART A OVATION PLUS VARIABLE ANNUITY PROFILE This profile is a summary of some of the more important points that you should know and consider before purchasing a variable annuity. The variable annuity is more fully described in the accompanying prospectus. The sections in this summary correspond to sections in the prospectus that discuss the topics in more detail. All capitalized terms are used as defined in the prospectus. Please read the prospectus carefully. May 1, 2002 ================================================================================ 1. OVATION PLUS VARIABLE ANNUITY ================================================================================ This variable annuity contract is between you and American International Life Assurance Company of New York. It is designed to help you invest on a tax-deferred basis and meet long-term financial goals, such as providing retirement income. Tax deferral means all your money, including the amount you would otherwise pay in current income taxes, remains in your contract to generate more earnings. This contract offers a choice of investment options. You may divide your money among any or all of the 19 variable investment options provided by Alliance Capital Management L.P. and the fixed investment option. Your investment is not guaranteed. The value of your contract can fluctuate up or down based on the performance of the underlying investments you select and you may experience a loss. The variable investment portfolios offer professionally managed investment choices with goals ranging from capital preservation to aggressive growth. Your choices for the various investment options are listed later in this profile. Like most deferred annuities, the contract has an accumulation phase and an income phase. During the accumulation phase, you invest money in your contract. Your earnings are based on the investment performance of the variable investment portfolios to which your money is allocated and/or the interest rate earned on the fixed investment option. You may withdraw money from your contract during the accumulation phase. However, as with other tax-deferred investments, you will pay taxes on earnings and untaxed contributions when you withdraw them. A tax penalty may apply if you make withdrawals before age 59 1/2. The income phase begins with the Annuity Date that you select. During the income phase, you, or another person you select as the Annuitant, will receive payments from your annuity. Your payments may be fixed in dollar amount, vary with investment performance or a combination of both, depending on where you allocate your money. Among other factors, the amount of money you are able to accumulate in your contract during the accumulation phase will determine the amount of your payments during the income phase. ================================================================================ 2. ANNUITY OPTIONS ================================================================================ You can select one of the annuity options listed below: (1) payments for the Annuitant's lifetime; (2) payments for the Annuitant's lifetime, but for not less than 10 years; and (3) payments for the lifetime of the survivor of two Annuitants. We may offer other annuity options, subject to our discretion. You will need to decide if you want your payments to fluctuate with investment performance, remain constant or to reflect a combination of the two. You will also select the date on which payments will begin. Once we begin making payments, you cannot change your annuity option. If your contract is part of a non-qualified retirement plan (one that is established with after tax dollars), payments during the income phase are considered partly a return of your original investment. The "original investment" part of each payment is not taxable as income. For contracts that are part of a qualified retirement plan using before tax dollars, the entire payment is taxable as income. ================================================================================ 3. PURCHASING A VARIABLE ANNUITY CONTRACT ================================================================================ You can buy a contract through your financial representative, who can also help you complete the proper forms. The minimum initial investment is $50,000. Additional amounts of $1,000 or more may be added to your contract at any time during the accumulation phase. You can pay additional premium of $100 or more per month by enrolling in an automatic investment plan. We will add a credit to your Contract Value for each premium payment you make equal to a maximum of 4% of that premium payment. We call this a Premium Enhancement and fund it from our general account. A Premium Enhancement is not a premium payment or considered part of your premium payment under the contract. At our discretion we may discontinue offering Premium Enhancements on additional premium payments. ================================================================================ 4. INVESTMENT OPTIONS ================================================================================ You may allocate money to the following variable investment portfolios of Alliance Variable Products Series Fund, Inc. Alliance Variable Products Series Fund, Inc. (managed by Alliance Capital Management L.P.) Global Bond Portfolio Global Dollar Government Portfolio Growth Portfolio (Class B) Growth and Income Portfolio (Class B) High-Yield Portfolio International Portfolio AllianceBernstein International Value Portfolio Money Market Portfolio (Class B) Americas Government Income Portfolio Premier Growth Portfolio (Class B) Quasar Portfolio AllianceBernstein Real Estate Investment Portfolio 2 AllianceBernstein Small Cap Value Portfolio Technology Portfolio (Class B) Total Return Portfolio U.S. Government/High Grade Securities Portfolio AllianceBernstein Utility Income Portfolio AllianceBernstein Value Portfolio (Class B) Worldwide Privatization Portfolio The fixed investment option is part of our general account. The interest rate may differ from time to time but we will never credit less than a 3% annual effective rate. Once established, the rate will not change during the selected period. You may also elect to participate in the dollar cost averaging program. ================================================================================ 5. EXPENSES ================================================================================ We deduct insurance charges from your Contract Value on a daily basis equal to 1.60% annually of the average daily value of your contract allocated to the variable investment options. The insurance charges include a mortality and expense risk charge of 1.25%, an administrative charge of 0.15%, and a distribution charge of 0.20%. If you select an optional death benefit, we will calculate and deduct a charge against the assets in the variable account. For the annual ratchet plan the charge is equal to 0.10% annually. As with other professionally managed investments, there are also investment charges imposed on contracts with money allocated to the variable investment options. These charges include management fees and other operating expenses and are estimated to range from 0.78% to 1.33%. If you take money out in excess of the free withdrawal amount permitted by your contract, you may be assessed a surrender charge as a percentage of the premium you withdraw. The percentage declines over a seven-year period as follows: -------------------------------------------------------------------------------- Premium Year 1 2 3 4 5 6 7 Thereafter -------------------------------------------------------------------------------- Surrender Charge 6% 6% 5% 5% 4% 3% 2% None -------------------------------------------------------------------------------- Each year you are allowed to make 12 transfers without charge. After your first 12 transfers, a $10 transfer fee will apply to each subsequent transfer. You may also be assessed a premium tax of up to 3.5% depending upon the state where you reside. The following chart is designed to help you understand the charges under your contract. The column "Total Annual Insurance Charges" reflects maximum insurance charges of 1.70%, including the optional benefit charge. The column "Total Annual Portfolio Charges" shows portfolio charges for each variable portfolio after waivers and/or reimbursements by Alliance Capital Management L.P. for the year ended December 31, 2001. The third column is the total of all annual charges. The fourth and fifth columns show two examples of the charges you would pay under the contract. The examples assume that you 3 invest $1,000 in a contract that earns 5% annually and that you withdraw your money (1) at the end of year 1 and (2) at the end of year 10. The premium tax is assumed to be 0% in both examples.
Total Total Total Total Annual Annual Total Expenses Expenses Insurance Portfolio Annual at the end of at the end of Charges Charges Charges 1 Year 10 Years Alliance Variable Products Series Fund, Inc. Global Bond Portfolio 1.70% 1.07% 2.77% $82 $310 Global Dollar Government Portfolio 1.70% 0.95% 2.65% $81 $298 Growth Portfolio (Class B) 1.70% 1.11% 2.81% $82 $314 Growth and Income Portfolio (Class B) 1.70% 0.92% 2.62% $81 $295 High-Yield Portfolio 1.70% 0.95% 2.65% $81 $298 International Portfolio 1.70% 0.95% 2.65% $81 $298 AllianceBernstein International Value Portfolio 1.70% 0.95% 2.65% $81 $298 Money Market Portfolio (Class B) 1.70% 0.90% 2.60% $80 $293 Americas Government Income Portfolio 1.70% 0.95% 2.65% $81 $298 Premier Growth Portfolio (Class B) 1.70% 1.29% 2.99% $84 $331 Quasar Portfolio 1.70% 0.95% 2.65% $81 $298 AllianceBernstein Real Estate Investment Portfolio 1.70% 0.95% 2.65% $81 $298 AllianceBernstein Small Cap Value Portfolio 1.70% 0.95% 2.65% $81 $298 Technology Portfolio (Class B) 1.70% 1.33% 3.03% $84 $335 Total Return Portfolio 1.70% 0.78% 2.48% $79 $282 U.S. Government/High Grade Securities Portfolio 1.70% 0.89% 2.59% $80 $292 AllianceBernstein Utility Income Portfolio 1.70% 1.02% 2.72% $82 $305 AllianceBernstein Value Portfolio (Class B) 1.70% 1.20% 2.90% $83 $322 Worldwide Privatization Portfolio 1.70% 0.95% 2.65% $81 $298
For more detailed information, see "Fee Tables" in the prospectus. ================================================================================ 6. TAXES ================================================================================ Unlike taxable investments where earnings are taxed in the year they are earned, taxes on amounts earned in a non-qualified contract (one that is established with after tax dollars) are deferred until they are withdrawn. In a qualified contract (one that is established with before tax dollars like an IRA), all amounts are taxable when they are withdrawn. When you begin taking distributions or withdrawals from your contract, earnings are considered to be taken out first and will be taxed at your ordinary income rate. You may be subject to a 10% tax penalty for distributions or withdrawals before age 59 1/2. 4 ================================================================================ 7. ACCESS TO YOUR MONEY ================================================================================ You may withdraw free of a surrender charge an amount that is equal to the free withdrawal amount in your contract as of the date you make the withdrawal. Your free withdrawal amount is equal to the greater of (1) the Contract Value less premium paid or (2) 10% of premium paid less the amount of any prior surrender. Withdrawals in excess of the free withdrawal amount will be assessed a surrender charge. Withdrawals may be made from your contract in the amount of $500 or more. If you make a withdrawal in an amount greater than your free withdrawal amount during the twenty-four month period following receipt of a Premium Enhancement, we will reduce the Premium Enhancement in the same proportion as the withdrawal bears to the Contract Value, less the Premium Enhancement, and deduct that amount from your Contract Value. This reduction does not apply to withdrawals you make as part of our systematic surrender program. Under the systematic surrender program, you may withdraw money from your Contract Value on a systematic basis. Surrender charges are not imposed on withdrawals under this program. The minimum withdrawal amount under this program is $200 per withdrawal. You must have at least $24,000 in Contract Value to participate in the systematic surrender program. There is no surrender charge on that portion of your money that you have invested in your contract for at least seven full years. Of course, you may have to pay income tax on any amount withdrawn and a 10% tax penalty may apply if you are under age 59 1/2. ================================================================================ 8. PERFORMANCE ================================================================================ The following chart shows total returns for each variable investment option for each of the calendar years shown. These numbers reflect the maximum insurance charges, including the optional benefit charge, and the investment charges. Surrender charges are not reflected in the chart. If a surrender charge were reflected, the performance would be lower. Past performance is not a guarantee of future results. 5 SUMMARY OF PERFORMANCE
2001 2000 1999 1998 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- ---- ---- ---- ---- Global Bond Subaccount -1.87% 0.43% -7.56% 12.39% -0.87% 4.59% 22.88% -6.69% 10.27% Global Dollar Government Subaccount 7.64% 12.28% 24.18% -22.94% 11.52% 23.02% 21.15% N/A N/A Growth Subaccount (Class B) -24.92% -19.07% 32.46% 26.80% 28.07% 26.56% 33.23% N/A N/A Growth and Income Subaccount (Class B) -1.45% -11.82% 9.68% 19.07% 26.87% 22.22% 33.76% -1.91% 10.03% High-Yield Subaccount 1.40% -6.38% -4.37% -5.17% N/A N/A N/A N/A N/A International Subaccount -23.64% -21.17% 38.15% 11.31% 1.75% 5.61% 8.20% 5.07% N/A AllianceBernstein International Value Subaccount N/A N/A N/A N/A N/A N/A N/A N/A N/A Money Market Subaccount (Class B) 1.67% 3.98% 3.08% 3.38% 3.51% 3.09% 3.41% 1.61% N/A Americas Government Income Subaccount 1.94% 10.63% 7.25% 2.48% 7.96% 17.15% 20.65% N/A N/A Premier Growth Subaccount (Class B) -18.76% -18.08% 30.34% 45.78% 31.86% 20.85% 43.17% -4.76% N/A Quasar Subaccount -14.18% -7.59% 15.31% -5.96% 16.81% N/A N/A N/A N/A AllianceBernstein Real Estate Investment 9.04% 24.74% -6.57% -20.27% N/A N/A N/A N/A N/A Subaccount AllianceBernstein Small Cap Value Subaccount N/A N/A N/A N/A N/A N/A N/A N/A N/A Technology Subaccount (Class B) -26.70% 22.90% 73.13% 61.37% 4.85% N/A N/A N/A N/A Total Return Subaccount 0.64% 10.77% 4.91% 15.22% 19.29% 13.42% 21.82% N/A N/A U.S. Government/High Grade Securities Subaccount 6.17% 9.34% -3.95% 6.57% 7.03% 0.97% 17.46% -5.50% N/A AllianceBernstein Utility Income Subaccount -23.78% 9.71% 17.60% 22.04% 23.83% 6.23% 19.64% N/A N/A AllianceBernstein Value Subaccount (Class B) N/A N/A N/A N/A N/A N/A N/A N/A N/A Worldwide Privatization Subaccount -18.65% -24.26% 56.49% 9.15% 9.07% 16.72% 9.20% N/A N/A
================================================================================ 9. DEATH BENEFIT ================================================================================ If you die during the accumulation phase, the surviving joint owner or, if none, the beneficiary will receive a death benefit. If no named beneficiary is living at the time a death benefit becomes payable, we will pay the death benefit to the last surviving owner's estate. Unless you indicate otherwise, we will pay the traditional death benefit. You may select from the death benefit options described below at the time you purchase your contract. Once we issue your contract, you cannot add death benefit options. You should discuss with your financial representative which option is best for you. Additional information is available in the prospectus. Traditional Death Benefit The traditional death benefit is equal to the greatest of: (1) the Contract Value, less any Premium Enhancement paid during the twenty-four months prior to the date of death; (2) the total of all premium paid, reduced proportionally by any surrenders in the same proportion that the Contract Value was reduced on the date of a surrender; or (3) the greatest Contract Value at any seventh Contract Anniversary, less any Premium Enhancement paid during the twenty-four months prior to the date of death, reduced proportionally by any surrenders subsequent to that Contract Anniversary in the same proportion that the Contract Value was reduced on the date of a surrender, plus any premium paid subsequent to that Contract Anniversary. The traditional death benefit will be paid if no other death benefit is selected. 6 Optional Death Benefit There is a charge for the optional death benefit as described under "Expenses" above. Annual Ratchet Plan. We will pay a death benefit equal to the greatest of: (1) the Contract Value, less any Premium Enhancement paid during the twenty-four months prior to the date of death; (2) the total of all premium paid reduced proportionally by any surrenders in the same proportion that the Contract Value was reduced on the date of a surrender; or (3) the greatest Contract Value at any Contract Anniversary, less any Premium Enhancement paid during the twenty-four months prior to the date of death, reduced proportionally by any surrenders subsequent to that Contract Anniversary in the same proportion that the Contract Value was reduced on the date of a surrender, plus any premium paid subsequent to that Contract Anniversary. ================================================================================ 10. OTHER INFORMATION ================================================================================ Right to Examine and Cancel: You may cancel your contract within ten days (or longer if your state requires a longer period) by mailing it to our Administrative Office. Your contract will be treated as void on the date we receive it and we will pay you an amount equal to the value of your contract less any Premium Enhancement (unless otherwise required by state law). Its value may be more or less than the money you initially invested. Dollar Cost Averaging: If selected, this program allows you to invest in the portfolios gradually over time at a fixed dollar amount or a certain percentage each month. This type of investing will cover various market cycles. Your Contract Value must be at least $12,000 to elect this option. Asset Rebalancing: If selected, this program seeks to keep your investment in line with your goals. We will maintain your specified allocation mix among the subaccounts that you selected. The Contract Value allocated to each subaccount will grow or decline in value at different rates during the quarter. Asset rebalancing automatically reallocates according to the allocation percentages you selected. Your Contract Value must be at least $12,000 to elect this option. Systematic Surrender Program: If selected, this program allows you to receive monthly, quarterly, semiannual, or annual withdrawals during the accumulation phase. Of course, surrenders may be taxable and a 10% tax penalty may apply if you are under age 59 1/2. Your Contract Value must be at least $24,000 to elect this option. We will not reduce any Premium Enhancement as a result of a surrender under this program. 7 Confirmations and Quarterly Statements: You will receive a confirmation of each financial transaction within your contract. On a quarterly basis, you will receive a complete statement of your transactions over the past quarter and a summary of your Contract Value. ================================================================================ 11. INQUIRIES ================================================================================ If you have questions about your contract or need to make changes, call your financial representative or contact us at: American International Life Assurance Company of New York c/o Delaware Valley Financial Services, Inc. P.O. Box 3031 Berwyn, PA 19312-0031 1-800-255-8402 8 PROSPECTUS OVATION PLUS VARIABLE ANNUITY issued by AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK through its VARIABLE ACCOUNT A This prospectus describes a variable annuity contract being offered to individuals and groups. It is a flexible premium, deferred annuity contract with a fixed investment option. Please read this prospectus carefully before investing and keep it for future reference. The contract has twenty investment options to which you can allocate your money - - nineteen variable investment options listed below and one fixed investment option. The fixed investment option is part of our general account, which earns a minimum of 3% interest. The variable investment options are portfolios of the Alliance Variable Products Series Fund, Inc. Alliance Variable Products Series Fund, Inc. (managed by Alliance Capital Management L.P.) Global Bond Portfolio Global Dollar Government Portfolio Growth Portfolio (Class B) Growth and Income Portfolio (Class B) High-Yield Portfolio International Portfolio AllianceBernstein International Value Portfolio Money Market Portfolio (Class B) Americas Government Income Portfolio Premier Growth Portfolio (Class B) Quasar Portfolio AllianceBernstein Real Estate Investment Portfolio AllianceBernstein Small Cap Value Portfolio Technology Portfolio (Class B) Total Return Portfolio U.S. Government/High Grade Securities Portfolio AllianceBernstein Utility Income Portfolio AllianceBernstein Value Portfolio (Class B) Worldwide Privatization Portfolio We will add a credit to your Contract Value for each premium payment you make equal to a maximum of 4% of that premium payment. We call this a Premium Enhancement and fund it from our general account. Charges for a contract with a Premium Enhancement may be higher than those for a contract without a Premium Enhancement. Over time, the amount of a Premium Enhancement may be more than offset by the charges associated with the Premium Enhancement. To learn more about the contract, you can obtain a copy of the Statement of Additional Information ("SAI") dated May 1, 2002. The SAI has been filed with the Securities and Exchange Commission ("SEC") and is incorporated by reference into this prospectus. The table of contents of the SAI appears on the last page of this prospectus. For a free copy of the SAI, call us at (800) 255-8402 or write to us at American International Life Assurance Company of New York, Attention: Variable Products, One Alico Plaza, 600 King Street, Wilmington, Delaware 19801. In addition, the SEC maintains a website at http://www.sec.gov that contains the prospectus, SAI, materials incorporated by reference and other information that we have filed electronically with the SEC. Variable annuities involve risks, including possible loss of principal. They are not a deposit of any bank or insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The SEC has not approved or disapproved of the contract or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. May 1, 2002 2 ================================================================================ TABLE OF CONTENTS ================================================================================ DEFINITIONS................................................................... FEE TABLES.................................................................... CONDENSED FINANCIAL INFORMATION............................................... THE CONTRACT.................................................................. INVESTMENT OPTIONS............................................................ CHARGES AND DEDUCTIONS........................................................ ACCESS TO YOUR MONEY.......................................................... ANNUITY PAYMENTS.............................................................. DEATH BENEFIT................................................................. PERFORMANCE................................................................... TAXES......................................................................... OTHER INFORMATION............................................................. FINANCIAL STATEMENTS.......................................................... TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION...................... 3 ================================================================================ DEFINITIONS ================================================================================ We have capitalized certain terms used in this prospectus. To help you understand these terms, we have defined them in this glossary. Accumulation Unit - An accounting unit of measure used to calculate your Contract Value prior to the Annuity Date. Administrative Office - The Annuity Service Office, c/o Delaware Valley Financial Services, Inc., P.O. Box 3031, Berwyn, Pennsylvania 19312-0031. Annuitant - The person you designate to receive annuity payments and whose life determines the duration of annuity payments involving life contingencies. Certain annuity options under the contract may permit a Joint Annuitant. Annuity Date - The date on which annuity payments begin. Annuity Unit - An accounting unit of measure used to calculate annuity payments after the Annuity Date. Contract Anniversary - An anniversary of the date we issued your contract. Contract Value - The dollar value as of any Valuation Date of all amounts accumulated under your contract. Contract Year - Each period of twelve months commencing with the date we issued your contract. Premium Enhancement - The credit added to your Contract Value equal to a maximum of 4% of your premium payment. A Premium Enhancement is not a premium payment or considered part of your premium payment under the contract. It is funded by our general account. At our discretion we may discontinue offering Premium Enhancements on additional premium payments. Premium Year - Any period of twelve months commencing with the date we receive a premium payment and ending on the same date in each succeeding twelve-month period thereafter. Valuation Date - Each day that the New York Stock Exchange is open for trading. Valuation Period - The period between the close of business on any Valuation Date and the close of business for the next succeeding Valuation Date. 4 ================================================================================ FEE TABLES ================================================================================ Owner Transaction Expenses Sales Load.................................................................None Surrender Charge (as a percentage of premium surrendered) Premium Year 1......................................................... 6% Premium Year 2......................................................... 6% Premium Year 3......................................................... 5% Premium Year 4......................................................... 5% Premium Year 5......................................................... 4% Premium Year 6......................................................... 3% Premium Year 7......................................................... 2% Thereafter.............................................................None Transfer Fee First 12 Per Contract Year........................................... None Thereafter........................................................... $10 Standard Variable Account Annual Expenses (as a percentage of average account value) Mortality and Expense Risk Charge................................... 1.25% Administrative Charge............................................... 0.15% Distribution Charge................................................. 0.20% ===== Total Standard Variable Account Annual Expenses..................... 1.60% Optional Variable Account Annual Expenses (as a percentage of average account value) Annual Ratchet Plan................................................. 0.10% 5 Annual Portfolio Expenses After Waivers/Reimbursement (as a percentage of average net assets)
Total Annual Management Other 12b-1 Portfolio Fees Expenses Fees Expenses(1) Alliance Variable Products Series Fund, Inc. Global Bond Portfolio 0.65% 0.42% 0.00% 1.07% Global Dollar Government Portfolio 0.00% 0.95% 0.00% 0.95% Growth Portfolio (Class B) 0.75% 0.11% 0.25% 1.11% Growth and Income Portfolio (Class B) 0.63% 0.04% 0.25% 0.92% High-Yield Portfolio 0.49% 0.46% 0.00% 0.95% International Portfolio 0.61% 0.34% 0.00% 0.95% AllianceBernstein International Value Portfolio 0.00% 0.95% 0.00% 0.95% Money Market Portfolio (Class B) 0.50% 0.15% 0.25% 0.90% Americas Government Income Portfolio 0.61% 0.34% 0.00% 0.95% Premier Growth Portfolio (Class B) 1.00% 0.04% 0.25% 1.29% Quasar Portfolio 0.82% 0.13% 0.00% 0.95% AllianceBernstein Real Estate Investment Portfolio 0.58% 0.37% 0.00% 0.95% AllianceBernstein Small Cap Value Portfolio 0.00% 0.95% 0.00% 0.95% Technology Portfolio (Class B) 1.00% 0.08% 0.25% 1.33% Total Return Portfolio 0.63% 0.15% 0.00% 0.78% U.S. Government/High Grade Securities Portfolio 0.60% 0.29% 0.00% 0.89% AllianceBernstein Utility Income Portfolio 0.75% 0.27% 0.00% 1.02% AllianceBernstein Value Portfolio (Class B) 0.00% 0.95% 0.25% 1.20% Worldwide Privatization Portfolio 0.46% 0.49% 0.00% 0.95%
(1) Total annual expenses for the following portfolios before waivers and reimbursement by Alliance Capital Management L.P. for the year ended December 31, 2001, were as follows: Global Dollar Government Portfolio............................2.37% High-Yield Portfolio..........................................1.51% International Portfolio.......................................1.44% AllianceBernstein International Value Portfolio...............8.41% Americas Government Income Portfolio..........................1.15% Quasar Portfolio..............................................1.16% AllianceBernstein Real Estate Investment Portfolio............1.39% AllianceBernstein Small Cap Value Portfolio...................2.65% AllianceBernstein Value Portfolio (Class B)...................2.47% Worldwide Privatization Portfolio.............................1.65% 6 Examples You would pay the following maximum expenses on a $1,000 investment, assuming 5% growth:
If you surrender after: 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Alliance Variable Products Series Fund, Inc. Global Bond Portfolio $82 $131 $182 $310 Global Dollar Government Portfolio $81 $127 $177 $298 Growth Portfolio (Class B) $82 $132 $184 $314 Growth and Income Portfolio (Class B) $81 $126 $175 $295 High-Yield Portfolio $81 $127 $177 $298 International Portfolio $81 $127 $177 $298 AllianceBernstein International Value Portfolio $81 $127 $177 $298 Money Market Portfolio (Class B) $80 $126 $174 $293 Americas Government Income Portfolio $81 $127 $177 $298 Premier Growth Portfolio (Class B) $84 $137 $193 $331 Quasar Portfolio $81 $127 $177 $298 AllianceBernstein Real Estate Investment Portfolio $81 $127 $177 $298 AllianceBernstein Small Cap Value Portfolio $81 $127 $177 $298 Technology Portfolio (Class B) $85 $139 $195 $335 Total Return Portfolio $79 $122 $168 $282 U.S. Government/High Grade Securities Portfolio $80 $126 $174 $292 AllianceBernstein Utility Income Portfolio $82 $129 $180 $305 AllianceBernstein Value Portfolio (Class B) $83 $135 $189 $322 Worldwide Privatization Portfolio $81 $127 $177 $298 If you annuitize or do not surrender after: 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Alliance Variable Products Series Fund, Inc. Global Bond Portfolio $28 $86 $146 $310 Global Dollar Government Portfolio $27 $82 $141 $298 Growth Portfolio (Class B) $28 $87 $148 $314 Growth and Income Portfolio (Class B) $27 $81 $139 $295 High-Yield Portfolio $27 $82 $141 $298 International Portfolio $27 $82 $141 $298 AllianceBernstein International Value Portfolio $27 $82 $141 $298 Money Market Portfolio (Class B) $26 $81 $138 $293 Americas Government Income Portfolio $27 $82 $141 $298 Premier Growth Portfolio (Class B) $30 $92 $157 $331 Quasar Portfolio $27 $82 $141 $298 AllianceBernstein Real Estate Investment Portfolio $27 $82 $141 $298 AllianceBernstein Small Cap Value Portfolio $27 $82 $141 $298 Technology Portfolio (Class B) $31 $94 $159 $335 Total Return Portfolio $25 $77 $132 $282 U.S. Government/High Grade Securities Portfolio $26 $81 $138 $292 AllianceBernstein Utility Income Portfolio $28 $84 $144 $305 AllianceBernstein Value Portfolio (Class B) $29 $90 $153 $322 Worldwide Privatization Portfolio $27 $82 $141 $298
7 If you do not select the optional death benefit, you would pay the following expenses on a $1,000 investment, assuming 5% growth:
If you surrender after: 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Alliance Variable Products Series Fund, Inc. Global Bond Portfolio $81 $128 $177 $300 Global Dollar Government Portfolio $80 $124 $172 $289 Growth Portfolio (Class B) $81 $129 $179 $304 Growth and Income Portfolio (Class B) $80 $123 $170 $286 High-Yield Portfolio $80 $124 $172 $289 International Portfolio $80 $124 $172 $289 AllianceBernstein International Value Portfolio $80 $124 $172 $289 Money Market Portfolio (Class B) $79 $123 $169 $284 Americas Government Income Portfolio $80 $124 $172 $289 Premier Growth Portfolio (Class B) $83 $134 $188 $321 Quasar Portfolio $80 $124 $172 $289 AllianceBernstein Real Estate Investment Portfolio $80 $124 $172 $289 AllianceBernstein Small Cap Value Portfolio $80 $124 $172 $289 Technology Portfolio (Class B) $84 $136 $190 $325 Total Return Portfolio $78 $119 $163 $272 U.S. Government/High Grade Securities Portfolio $79 $123 $169 $283 AllianceBernstein Utility Income Portfolio $81 $126 $175 $295 AllianceBernstein Value Portfolio (Class B) $82 $132 $184 $313 Worldwide Privatization Portfolio $80 $124 $172 $289 If you annuitize or do not surrender after: 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Alliance Variable Products Series Fund, Inc. Global Bond Portfolio $27 $83 $141 $300 Global Dollar Government Portfolio $26 $79 $136 $289 Growth Portfolio (Class B) $27 $84 $143 $304 Growth and Income Portfolio (Class B) $26 $78 $134 $286 High-Yield Portfolio $26 $79 $136 $289 International Portfolio $26 $79 $136 $289 AllianceBernstein International Value Portfolio $26 $79 $136 $289 Money Market Portfolio (Class B) $25 $78 $133 $284 Americas Government Income Portfolio $26 $79 $136 $289 Premier Growth Portfolio (Class B) $29 $89 $152 $321 Quasar Portfolio $26 $79 $136 $289 AllianceBernstein Real Estate Investment Portfolio $26 $79 $136 $289 AllianceBernstein Small Cap Value Portfolio $26 $79 $136 $289 Technology Portfolio (Class B) $30 $91 $154 $325 Total Return Portfolio $24 $74 $127 $272 U.S. Government/High Grade Securities Portfolio $25 $78 $137 $283 AllianceBernstein Utility Income Portfolio $27 $81 $139 $295 AllianceBernstein Value Portfolio (Class B) $28 $87 $148 $313 Worldwide Privatization Portfolio $26 $79 $136 $289
8 The purpose of the tables and examples above is to assist you in understanding the various costs and expenses that you will bear directly or indirectly. The examples reflect expenses of the variable account and the portfolios, but do not reflect a deduction for premium taxes. The first set of examples assumes the maximum variable account charges in the amount of 1.70%, including the optional benefit charge. The second set of examples reflects expenses of the variable account in the amount of 1.60%, which does not include the optional benefit charge. The examples should not be considered a representation of past or future expenses. Actual expenses may be greater or less than those shown. ================================================================================ CONDENSED FINANCIAL INFORMATION ================================================================================ Historical accumulation unit values are contained in the appendix. ================================================================================ THE CONTRACT ================================================================================ General Description An annuity is a contract between you, as the owner, and a life insurance company. The contract provides tax deferral for your earnings, which means your earnings accumulate on a tax-deferred basis until you take money out of your contract. It also provides a death benefit and a guaranteed income in the form of annuity payments beginning on a date you select. Until you, or another person you select as the Annuitant, begin to receive annuity payments, your annuity is in the accumulation phase. The income phase starts when we begin making annuity payments. If you die during the accumulation phase, we guarantee a death benefit to the surviving joint owner, if applicable, or to your beneficiary. The contract is called a variable annuity because you can allocate your money among variable investment options. Each subaccount of our variable account invests in shares of a corresponding portfolio of a mutual fund. Depending on market conditions, the various portfolios may make or lose money. If you allocate money to the portfolios, your Contract Value during the accumulation phase will depend on their investment performance. In addition, the amount of the variable annuity payments you may receive will depend on the investment performance of the portfolios you select for the income phase. The contract also has a fixed investment option that is part of our general account. Premium you allocate to the fixed investment option will earn interest at a fixed rate that we set. We guarantee the interest rate will never be less than 3%. Your Contract Value in the general account during the accumulation phase will depend on the total interest we credit. During the income phase, each annuity payment you receive from the fixed portion of your contract will be for the same amount. Purchasing a Contract Premium is the money you give us as payment to buy the contract, as well as any additional money you give us to invest in the contract after you own it. The minimum initial investment for both qualified and 9 non-qualified contracts is $50,000. You may add premium payments of $1,000 or more to your contract at any time during the accumulation phase. You can pay scheduled subsequent premium of $100 or more per month by enrolling in an automatic investment plan. We may refuse any premium. In general, we will not issue a contract to anyone who is over age 80. Allocation of Premium When you purchase a contract, you will tell us how to allocate your initial premium among the investment options. We will allocate additional premium in the same way unless you tell us otherwise. At the time of application, we must receive your initial premium at our Administrative Office before the contract will be effective. We will issue your contract and allocate your initial premium within two business days. If you do not give us all the necessary information we need to issue the contract, we will contact you to obtain it. If we are unable to complete this process within five business days, we will send your money back unless you allow us to keep it until we get all the necessary information. Premium Enhancement For each premium payment you make, we will add a Premium Enhancement to your contract equal to a maximum of 4% of that premium payment. We will allocate the Premium Enhancement pro rata among the investment options in the same proportion as the corresponding premium payment. We may discontinue offering a Premium Enhancement on additional premium payments at our discretion. Premium Enhancements are not part of the amount refunded to you if you cancel your contract during the right to examine period. Premium Enhancements are not included in amounts payable as a death benefit or upon surrender during the first twenty-four months after receipt. If you make a partial surrender during the twenty-four month period following receipt of a Premium Enhancement, except as part of our systematic surrender program, we will reduce the Premium Enhancement in the same proportion and deduct it from your Contract Value. Under certain circumstances, receipt of the Premium Enhancement may have a negative effect on the investment performance of the portion of your contract allocated to the variable investment options. If your Contract Value decreases due to market conditions during the twenty-four months after receipt of a Premium Enhancement and, during that time, you surrender your contract or you die, the amount payable will be lower than it would have been had you not received a Premium Enhancement. In the case of a partial surrender under those conditions and during that time, the Contract Value that remains after the partial surrender will be lower than it would have been had you not received a Premium Enhancement. The contract has an additional .20% distribution charge that is not deducted as part of a similar contract we offer without a Premium Enhancement. This charge is additional revenue to us and we use it to recover our costs in providing the Premium Enhancement. Right to Examine Contract If you change your mind about owning this contract, you can cancel it within ten days after receiving it (or longer if required by state law) by mailing it back to our Administrative Office c/o Delaware Valley Financial Services, Inc., P.O. Box 3031, Berwyn, PA 19312-0031. You will receive your Contract Value, less any Premium Enhancement, as of the day we receive your request, which may be more or less than the money you initially invested. 10 In certain states or if you purchase your contract as an individual retirement annuity, we may be required to return your premium. If you cancel your contract during the right to examine period, we will return to you an amount equal to your premium payments less any partial surrender. Accumulation Units The value of an Accumulation Unit may go up or down from day to day. When you pay a premium, we credit your contract with Accumulation Units. The number of Accumulation Units credited is determined by dividing the amount of premium allocated to a subaccount by the value of the Accumulation Unit for that subaccount. We calculate the value of an Accumulation Unit as of the close of business of the New York Stock Exchange ("NYSE") on each day that the NYSE is open for trading. Except in the case of initial premium, we credit Accumulation Units to your contract at the value next calculated after we receive your premium at our Administrative Office. The Accumulation Unit value for each portfolio will vary from one valuation period to the next based on the investment experience of the assets in the portfolio and the deduction of certain charges and expenses. The SAI contains a detailed explanation of how Accumulation Units are valued. Your value in any portfolio is determined by multiplying its unit value by the number of units you own. Your value within the variable investment options is the sum of your values in all the portfolios. The total value of your contract, referred to as the Contract Value, equals your value in the variable investment options plus your value in the fixed investment option. Transfers During the Accumulation Phase You can transfer money among the investment options by written request or by telephone. You can make twelve transfers every Contract Year without charge. There is a $10 transfer fee for each transfer over twelve in a Contract Year. Transfers as a result of dollar cost averaging or asset rebalancing are not counted against your twelve free transfers. The minimum amount you can transfer is the lesser of $1,000 or the entire value in the investment option. You cannot make a partial transfer if, after the transfer, there would be less than $1,000 in the investment option from which the transfer is being made. Your transfer request must clearly state which investment options are involved and the amount of the transfer. We will accept transfers by telephone from you, your representative or anyone else designated by you. Neither we nor the fund will be liable for following telephone instructions we reasonably believe to be genuine or for any loss, damage, cost or expense in acting on such instructions. We have procedures in place to provide reasonable assurance that telephone instructions are genuine. We reserve the right to modify, suspend or terminate the transfer provisions at any time. Dollar Cost Averaging The contract has a feature that allows you to dollar cost average your allocations to the portfolios by authorizing us to make periodic allocations of Contract Value from either the money market portfolio or the fixed investment option to one or more of the other portfolios. Dollar cost averaging is a systematic method of investing in which securities are purchased at regular intervals in fixed dollar amounts so that the cost of the securities gets averaged over time and possibly over various market cycles. It will result in the reallocation of Contract Value to one or more portfolios and these amounts will be credited at the Accumulation Unit value as of the Valuation Dates on which the exchanges are effected. The amounts 11 exchanged from a portfolio will result in a debiting of a greater number of units when the Accumulation Unit value is low and a lower number of units when the Accumulation Unit value is high. To elect dollar cost averaging, your Contract Value must be at least $12,000. You must send us a completed dollar cost averaging request form, which is available from the Administrative Office. We will not consider your request unless your Contract Value is at least the required amount or the premium submitted is at least $12,000. There is no charge for the dollar cost averaging program. In addition, your periodic transfers under the dollar cost averaging program are not counted against your twelve free transfers per Contract Year. We reserve the right to modify, suspend or terminate the dollar cost averaging program at any time. Dollar cost averaging does not guarantee profits, nor does it assure that you will not have losses. Asset Rebalancing Once your premium has been allocated among the investment options, the earnings may cause the percentage invested in each investment option to differ from your allocation instructions. You can direct us to automatically rebalance your contract to return to your allocation percentages by selecting our asset rebalancing program. Rebalancing may be on a monthly, quarterly, semi annual or annual basis. To elect asset rebalancing, your Contract Value must be at least $12,000. There is no charge for asset rebalancing. In addition, a rebalancing is not counted against your twelve free transfers each Contract Year. We reserve the right to modify, suspend or terminate this program at anytime. ================================================================================ INVESTMENT OPTIONS ================================================================================ Variable Investment Options Variable Account A Our board of directors authorized the organization of the variable account in 1986. The variable account is maintained pursuant to New York insurance law and is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the "1940 Act"). However, the SEC does not supervise the management or the investment practices of the variable account. We own the assets in the variable account and use them to support the variable portion of your contract and other variable annuity contracts described in other prospectuses. The variable account's assets are separate from our other assets and are not chargeable with liabilities arising out of any other business we conduct. Income, gains or losses, whether or not realized, are credited to or charged against the subaccounts of the variable account without regard to income, gains or losses arising out of any of our other business. As a result, the investment performance of each subaccount of the variable account is entirely independent of the investment performance of our general account and of any of our other variable accounts. The variable account is divided into subaccounts, each of which invests in shares of a different portfolio of a mutual fund. The variable account maintains subaccounts that are not available under the contract. We may, from time to time, add or remove subaccounts and the corresponding portfolios. No substitution 12 of shares of one portfolio for another will be made until you have been notified and the SEC has approved the change. If deemed to be in the best interest of persons having voting rights under the contract, the variable account may be operated as a management company under the 1940 Act, may be deregistered under that Act in the event such registration is no longer required, or may be combined with one or more other variable accounts. The Fund and Its Portfolios The Alliance Variable Products Series Fund, Inc. is a mutual fund registered with the SEC. It has additional portfolios that are not available under the contract. You should carefully read the fund's prospectus before investing. The fund prospectus is attached to this prospectus and contains information regarding management of the portfolios, investment objectives, investment advisory fees and other charges. The prospectus also discusses the risks involved in investing in the portfolios. Below is a summary of the investment objectives of the portfolios available under the contract. There is no assurance that any of these portfolios will achieve its stated objectives. Global Bond Portfolio seeks a high level of return from a combination of current income and capital appreciation by investing in a globally diversified portfolio of high quality debt securities denominated in the U.S. dollar and a range of foreign currencies Global Dollar Government Portfolio seeks a high level of current income and, secondarily, capital appreciation. Growth Portfolio (Class B) seeks to provide long-term growth of capital. Current income is incidental to the portfolio's objective. Growth and Income Portfolio (Class B) seeks reasonable current income and reasonable opportunities for appreciation through investments primarily in dividend-paying common stocks of good quality. High-Yield Portfolio seeks to earn the highest level of current income without assuming undue risk by investing principally in high-yielding fixed income securities rated Baa or lower by Moody's or BBB or lower by S&P, Duff & Phelps or Fitch or, if unrated, of comparable quality. International Portfolio seeks to obtain a total return on its assets from long-term growth of capital principally through a broad portfolio of marketable securities of established non-U.S. companies (or companies incorporated outside the U.S.), companies participating in foreign economies with prospects for growth, and foreign government securities. AllianceBernstein International Value Portfolio seeks long-term growth of capital by investing primarily in a diversified portfolio of non-U.S. equity securities with an emphasis on companies that the adviser believes are undervalued. Money Market Portfolio (Class B) seeks safety of principal, excellent liquidity and maximum current income to the extent consistent with the first two objectives. Americas Government Income Portfolio seeks the highest level of current income, consistent with what Alliance considers to be prudent investment risk, that is available from a portfolio of debt securities issued or guaranteed by the governments of the United States, Canada or Mexico, their political subdivisions (including Canadian Provinces, but excluding states of the United States), agencies, instrumentalities or authorities. 13 Premier Growth Portfolio (Class B) seeks growth of capital by pursuing aggressive investment policies. Quasar Portfolio seeks growth of capital by pursuing aggressive investment policies. Current income is incidental to the portfolio's objective. AllianceBernstein Real Estate Investment Portfolio seeks total return from long-term growth of capital and income principally through investing in equity securities of companies that are primarily engaged in or related to the real estate industry. AllianceBernstein Small Cap Value Portfolio seeks long-term growth of capital by investing primarily in a diversified portfolio of equity securities of companies with small market capitalizations with an emphasis on companies that the adviser believes are undervalued. Technology Portfolio (Class B) seeks growth of capital. Current income is incidental to the portfolio's objective. Total Return Portfolio seeks to achieve a high return through a combination of current income and capital appreciation. U.S. Government/High Grade Securities Portfolio seeks high current income consistent with preservation of capital. AllianceBernstein Utility Income Portfolio seeks current income and capital appreciation by investing primarily in equity and fixed-income securities of companies in the utilities industry. AllianceBernstein Value Portfolio (Class B) seeks long-term growth of capital by investing primarily in a diversified portfolio of equity securities of companies with relatively large market capitalizations that the adviser believes are undervalued. Worldwide Privatization Portfolio seeks long-term capital appreciation. Alliance Capital Management L.P. may compensate us for providing administrative services in connection with the portfolios that are offered under the contract. Such compensation is paid from its assets. Fixed Investment Option Premium you allocate to the fixed investment option is guaranteed and goes into our general account. The general account is not registered with the SEC. The general account is invested in assets permitted by state insurance law. It is made up of all of our assets other than assets attributable to our variable accounts. Unlike our variable account assets, assets in the general account are subject to claims of owners like you, as well as claims made by our other creditors. The Premium Enhancement is funded from our general account. We credit money allocated to the fixed investment option with interest on a daily basis at the guaranteed rate then in effect. The rate of interest to be credited to the general account is determined wholly within our discretion. However, the rate will not be changed more than once per year. The interest rate will never be less than 3%. 14 If you allocate premium to the fixed investment option, the fixed portion of your Contract Value during the accumulation phase will depend on the total interest we credit to your contract. During the income phase, each annuity payment you receive from the fixed portion of your contract will be for the same amount. We reserve the right to delay any payment from the general account for up to six months from the date we receive the request at our Administrative Office, as permitted by law. ================================================================================ CHARGES AND DEDUCTIONS ================================================================================ Insurance Charges Each day, we deduct insurance charges from your Contract Value. This is done as part of our calculation of the value of Accumulation Units during the accumulation phase and of Annuity Units during the income phase. The insurance charges are the mortality and expense risk charge, the administrative charge, and the charges for the optional death benefits described under "Death Benefit." Mortality and Expense Risk Charge The mortality and expense risk charge is equal, on an annual basis, to 1.25% of the daily value of the variable portion of your contract. We will not increase this charge. It compensates us for assuming the risks associated with our obligations to make annuity payments, provide the death benefit, and cover the cost of administering the contract. If the charges under the contract are not sufficient, we will bear the loss. If the charges are sufficient, we will keep the balance of this charge as profit. Administrative Charge The administrative charge is equal, on an annual basis, to 0.15% of the daily value of the variable portion of your contract. It compensates us for our administrative expenses, which include preparing the contract, confirmations and statements, and maintaining contract records. If this charge is not enough to cover the costs of administering the contract, we will bear the loss. Distribution Charge The distribution charge is equal, on an annual basis, to 0.20% of the daily value of the variable portion of your contract. It compensates us for certain sales distribution expenses relating to the contract. If this charge is not enough to cover these costs, we will bear the loss. Optional Death Benefit Charge If you elect the optional death benefit, we will calculate and deduct a charge against the assets in the variable account equal to an annual charge as shown below. Annual Ratchet Plan 0.10% 15 Surrender Charge If you surrender your contract prior to the Annuity Date during the first seven years after a premium payment, we will assess a surrender charge as a percentage of the amount of premium you request to be withdrawn as shown below: - ------------------------------------------------------------------------------ Premium Year 1 2 3 4 5 6 7 Thereafter - ------------------------------------------------------------------------------ Surrender Charge 6% 6% 5% 5% 4% 3% 2% None - ------------------------------------------------------------------------------ For purposes of calculating the surrender charge, we treat surrenders as coming from the oldest premiums first (i.e., first-in, first-out). However, we will not assess a surrender charge on that portion of a surrender equal to the greater of: (1) the Contract Value less premium paid, or (2) up to 10% of premium paid, less the amount of any prior surrender. You will not receive the benefit of this "free withdrawal amount" if you participate in the systematic surrender program. If you make a partial surrender, we will deduct the surrender charge, if any, pro rata from the remaining value in your contract. If insufficient value remains in your contract, then we will deduct the surrender charge from the amount you are to receive as a result of your surrender request. Likewise, we will deduct a surrender charge on a full surrender from the amount you are to receive. Premium Taxes We will deduct from your Contract Value any premium tax imposed by the state or locality where you reside. Premium taxes currently imposed on the contract by various states range from 0% to 3.5% of premiums paid. These taxes are due either when premium is paid or when annuity payments begin. It is our current practice to charge you for these taxes when annuity payments begin or if you surrender the contract in full. In the future, we may discontinue this practice and assess the tax when it is due or upon the payment of the death benefit. Income Taxes Although we do not currently deduct any charges for income taxes attributable to your contract, we reserve the right to do so in the future. Fund Expenses There are deductions from and expenses paid out of the assets of the various portfolios. These charges are described in the prospectus for the Alliance Variable Products Series Fund, Inc. and are summarized in the fee table. Reduction or Elimination of Certain Charges and Additional Amounts Credited We may reduce or eliminate the surrender charge or the administrative charge or change the minimum premium requirement when the contract is sold to groups of individuals under circumstances that reduce our sales expenses. We may also vary the Premium Enhancement paid. We will determine the eligibility of such groups by considering factors such as: 16 (1) the size of the group; (2) the total amount of premium we expect to receive from the group; (3) the nature of the purchase and the persistency we expect in that group; (4) the purpose of the purchase and whether that purpose makes it likely that expenses will be reduced; and (5) any other circumstances that we believe are relevant in determining whether reduced sales expenses may be expected. We may also waive or reduce the surrender charge in connection with contracts sold to employees, employees of affiliates, registered representatives, employees of broker-dealers which have a current selling agreement with us, and immediate family members of those persons. Any reduction or waiver may be withdrawn or modified by us. ================================================================================ ACCESS TO YOUR MONEY ================================================================================ Generally Contract Value, less any Premium Enhancement paid during the prior twenty-four months, is available in the following ways: o by surrendering all or part of your Contract Value during the accumulation phase; o by receiving annuity payments during the income phase; o when we pay a death benefit. Surrenders Generally, surrenders are subject to a surrender charge and, if it is a full surrender, premium taxes. Surrenders may also be subject to income tax and a penalty tax. To make a surrender you must send a complete and detailed written request to our Administrative Office. We will calculate your surrender as of the close of business of the NYSE at the value next determined after we receive your request. To surrender your entire Contract Value, you must also send us your contract. Under most circumstances, partial surrenders must be for a minimum of $500. We require that your Contract Value be at least $2,000 after the partial surrender. If the Contract Value would be less than $2,000 as a result of a partial surrender, we may cancel the contract. Unless you provide us with different instructions, partial surrenders will be made pro rata from each investment option in which your contract is invested. If you make a partial surrender in an amount greater than your free withdrawal amount during the twenty-four month period following receipt of a Premium Enhancement, we will reduce the Premium Enhancement in the same proportion and deduct it from your Contract Value. This reduction does not apply to withdrawals you make as part of our systematic surrender program. 17 We may be required to suspend or postpone the payment of a surrender for an undetermined period of time when: o the NYSE is closed (other than a customary weekend and holiday closings); o trading on the NYSE is restricted; o an emergency exists such that disposal of or determination of the value of shares of the portfolios is not reasonably practicable; o the SEC, by order, so permits for the protection of owners. Systematic Surrender Program The systematic surrender program allows you to make regularly scheduled withdrawals from your Contract Value of at least $200 each on a monthly, quarterly, semiannual, or annual basis. In order to initiate the program, your Contract Value must be at least $24,000. The minimum withdrawal amount under this program is $200 per withdrawal. Surrender charges are not imposed on withdrawals under this program, nor is there any charge for participating in this program. We will not reduce any Premium Enhancement as a result of a withdrawal under this program. You may not elect this program if you have made a partial surrender earlier in the same Contract Year. In addition, the free withdrawal amount is not available in connection with partial surrenders you make while participating in the systematic surrender program. You will be entitled to the free withdrawal amount on and after the Contract Anniversary next following the termination of the systematic surrender program. Systematic surrenders will begin on the first scheduled withdrawal date selected by you following the date we process your request. In the event that your value in a specified portfolio or the fixed investment option is not sufficient to make a withdrawal or if your request for systematic surrender does not specify the investment options from which to deduct withdrawals, withdrawals will be deducted pro rata from your Contract Value in each portfolio and the fixed investment option. You may cancel the systematic surrender program at any time by written request. It will be cancelled automatically if your Contract Value falls below $1,000. In the event the systematic surrender program is canceled, you may not elect to participate in the program again until the next Contract Anniversary. If your contract is issued in connection with an individual retirement annuity or 403(b) Plan, you are cautioned that your rights to implement a systematic surrender program may be subject to the terms and conditions of your plan, regardless of the terms and conditions of your contract. Moreover, implementation of the systematic surrender program may subject you to adverse tax consequences, including a 10% tax penalty if you are under age 59 1/2. See "Taxes" for a discussion of the various tax consequences. For information, including the necessary enrollment form, please check with our Administrative Office. We reserve the right to modify, suspend or terminate this program at any time. 18 ================================================================================ ANNUITY PAYMENTS ================================================================================ Generally Beginning on the Annuity Date, the Annuitant will receive monthly annuity payments. You may choose annuity payments that are fixed, variable, or a combination of fixed and variable. You select the Annuity Date, which must be the first day of a month and must be at least one year after we issue your contract. You may change the Annuity Date at least 30 days before payments are to begin. However, annuity payments must begin by the first day of the month following the Annuitant's 90th birthday. Certain states may require that annuity payments begin prior to such date and we must comply with those requirements. You may change the Annuitant at any time prior to the Annuity Date. If you are not the Annuitant and the Annuitant dies before the Annuity Date, you must notify us and designate a new Annuitant. Annuity Options The contract offers three annuity options described below. Other annuity options may be made available, including other guarantee periods and options without life contingencies, subject to our discretion. If you do not choose an annuity option, we will make annuity payments in accordance with option 2. However, if the annuity payments are for joint lives, we will make payments in accordance with option 3. Where permitted by state law, we may pay the annuity in one lump sum if your Contract Value is less than $2,000. In addition, if your annuity payments would be less than $100 per month, we have the right to change the frequency of your payment to be on a semiannual or annual basis so that the payments are at least $100. Option 1 - Life Income Under this option, we will make monthly annuity payments as long as the Annuitant is alive. Annuity payments stop when the Annuitant dies. Option 2 - Life Income With 10 Year Guarantee Under this option, we will make monthly annuity payments as long as the Annuitant is alive with the additional guarantee that payments will be made for a period you select of at least 10 years. If the Annuitant dies before all guaranteed payments have been made, the rest will be paid to the beneficiary for the remainder of the period. Option 3 - Joint and Last Survivor Annuity Under this option, we will make monthly annuity payments as long as either the Annuitant or Joint Annuitant is alive. Upon the death of the Annuitant, we will continue to make annuity payments so long as the Joint Annuitant is alive. If your contract is issued as an individual retirement annuity, payments under this option will be made only to you as Annuitant or to your spouse. Upon the death of either of you, we will continue to make annuity payments so long as the survivor is alive. 19 Variable Annuity Payments If you choose to have any portion of your annuity payments based on the variable investment options, the amount of your payments will depend upon: o your Contract Value in the portfolios on the Annuity Date; o the 5% assumed investment rate used in the annuity table for the contract; o the performance of the portfolios you selected; o the annuity option you selected. If the actual performance exceeds the 5% assumed rate, the annuity payments will increase. Similarly, if the actual rate is less than 5%, the annuity payments will decrease. The SAI contains more information. Transfers During Income Phase Transfers during the income phase are subject to the same limitations as transfers during the accumulation phase. See "The Contract - Transfers During Accumulation Phase." However, you may only make one transfer each month and you may only transfer money among the variable investment options. You may not transfer money from the fixed investment option to the variable investment options or from the variable investment options to the fixed investment option. Deferment of Payments We may defer making fixed annuity payments for up to six months subject to state law. We will credit interest to you during the deferral period. ================================================================================ DEATH BENEFIT ================================================================================ Death of Owner Before the Annuity Date If you die before the Annuity Date and the contract is jointly owned, the death benefit is payable to the surviving joint owner. If you die before the Annuity Date and there is no surviving joint owner, the benefit is payable to the beneficiary. We will determine the value of the death benefit as of the date we receive proof of death in a form acceptable to us. If ownership is changed from one natural person to another natural person, the death benefit will equal the Contract Value. If the surviving joint owner, if any, or designated beneficiary is your spouse, he or she can elect to continue the contract and become the owner. We determine the amount of the death benefit based on the death benefit option you select at the time of application, if any, and calculate it in accordance with the terms of that option as described below. The amount of the death benefit will never be less than the traditional death benefit. If you select the annual ratchet plan, the death benefit will be the greater of the traditional death benefit or the annual ratchet plan. The annual ratchet plan may not be available in all states. Traditional Death Benefit Under the traditional death benefit, we will pay the amount equal to the greatest of: 20 (1) the Contract Value, less any Premium Enhancement paid during the twenty-four months prior to the date of death; (2) the total of all premium paid reduced proportionally by any surrenders in the same proportion that the Contract Value was reduced on the date of a surrender; or (3) the greatest Contract Value at any seventh Contract Anniversary, less any Premium Enhancement paid during the twenty-four months prior to the date of death, reduced proportionally by any surrenders subsequent to that Contract Anniversary in the same proportion that the Contract Value was reduced on the date of a surrender, plus any premiums paid subsequent to that Contract Anniversary. The traditional death benefit will be paid unless you specify otherwise. Optional Death Benefit Annual Ratchet Plan. We will pay a death benefit equal to the greatest of: (1) the Contract Value, less any Premium Enhancement paid during the twenty-four months prior to the date of death; (2) the total of all premium paid reduced proportionally by any surrenders in the same proportion that the Contract Value was reduced on the date of a surrender; or (3) the greatest Contract Value at any Contract Anniversary, less any Premium Enhancement paid during the twenty-four months prior to the date of death, reduced proportionally by any surrenders subsequent to that Contract Anniversary in the same proportion that the Contract Value was reduced on the date of a surrender, plus any premiums paid subsequent to that Contract Anniversary. The annual ratchet plan will be in effect if: (1) you select it on your application; and (2) the charge for the annual ratchet plan is shown in your contract. The annual ratchet plan will cease to be in effect when we receive your written request to discontinue it. Payment to Surviving Joint Owner or Beneficiary Upon your death if prior to the Annuity Date, the surviving joint owner or the beneficiary, as applicable, may elect the death benefit to be paid as follows: (1) payment of the entire death benefit within five years of the date of your death; or (2) payment over the recipient's lifetime with distribution beginning within one year of your date of death. 21 If no payment option is elected within sixty days of our receipt of proof of your death, a single sum settlement will be made at the end of the sixty-day period following such receipt. Upon payment of a death benefit, the contract will end. Death of Owner After the Annuity Date If you are not the Annuitant, and if your death occurs on or after the Annuity Date, no death benefit will be payable under the contract. Any guaranteed payments remaining unpaid will continue to be paid to the Annuitant pursuant to the annuity option in force at the date of your death. If the contract is not owned by an individual, the Annuitant will be treated as the owner and any change of the named Annuitant will be treated as if the owner died. Death of Annuitant Before the Annuity Date If you are not the Annuitant, and if the Annuitant dies before the Annuity Date, you may name a new Annuitant. If you do not name a new Annuitant within sixty days after we are notified of the Annuitant's death, we will deem you to be the new Annuitant. After the Annuity Date If an Annuitant dies after the Annuity Date, the remaining payments, if any, will be as specified in the annuity option in effect when the Annuitant died. We will require proof of the Annuitant's death. The remaining benefit, if any, will be paid to the beneficiary at least as rapidly as under the method of distribution in effect at the Annuitant's death. If you were not the Annuitant and no beneficiary survives the Annuitant, we will pay any remaining benefit to you. ================================================================================ PERFORMANCE ================================================================================ Occasionally, we may advertise certain performance information for one or more subaccounts, including average annual total return and yield information. A subaccount's performance information is based on its past performance only and is not intended as an indication of future performance. When we advertise the average annual total return of a subaccount, it will be calculated for one, five, and ten year periods or, where a subaccount has been in existence for a period of less than one, five, or ten years, for such lesser period. Average annual total return is measured by comparing the value of the investment in a subaccount at the beginning of the relevant period to the value of the investment at the end of the period. It assumes the deduction of any surrender charge that would be payable if the contract was surrendered at the end of the period. Then the average annual compounded rate of return is calculated to produce the value of the investment at the end of the period. We may simultaneously present returns that do not reflect all of the contract charges or assume a surrender and, therefore, do not deduct a surrender charge. When we advertise the yield of a subaccount we will calculate it based upon a given thirty-day period. The yield is determined by dividing the net investment income earned per Accumulation Unit during the period by the value of an Accumulation Unit on the last day of the period. 22 When we advertise the performance of the money market subaccount we may advertise the yield or the effective yield in addition to the average annual total return. The yield of the money market subaccount refers to the income generated by an investment in that subaccount over a seven-day period. The income is then annualized (i.e., the amount of income generated by the investment during that week is assumed to be generated each week over a 52-week period and is shown as a percentage of the investment). The effective yield is calculated similarly but when annualized the income earned by an investment in the money market subaccount is assumed to be reinvested. The effective yield will be slightly higher than the yield because of the compounding effect of this assumed reinvestment during a 52-week period. Average annual total return at the variable account level is lower than at the underlying portfolio level because it is reduced by all contract charges except optional benefit charges (i.e., surrender charge, mortality and expense risk charge, administrative charge, and distribution charge). Similarly, yield and effective yield at the variable account level are lower than at the portfolio level because they are also reduced by all contract charges except optional benefit charges. Performance information for a subaccount may be compared to: (1) the Standard & Poor's 500 Stock Index, Dow Jones Industrial Average, Donoghue Money Market Institutional Averages, indices measuring corporate bond and government security prices as prepared by Lehman Brothers, Inc. and Salomon Brothers, or other indices measuring performance of a pertinent group of securities so that investors may compare a portfolio's results with those of a group of securities widely regarded by investors as representative of the securities markets in general; (2) other variable annuity separate accounts or other investment products tracked by Lipper Analytical Services (a widely used independent research firm which ranks mutual funds and other investment companies by overall performance, investment objectives, and assets), or tracked by other ratings services, companies, publications, or persons who rank separate accounts or other investment products on overall performance or other criteria; (3) the Consumer Price Index (measure for inflation) to assess the real rate of return from an investment in the contract; and (4) indices or averages of alternative financial products available to prospective investors, including the Bank Rate Monitor which monitors average returns of various bank instruments. ================================================================================ TAXES =============================================================================== Introduction The following discussion of federal income tax treatment is general in nature and is not intended as tax advice. This discussion is based on current law and interpretations, which may change. For a discussion of federal income taxes as they relate to the fund, please see the accompanying fund prospectus. No attempt is made to consider any applicable state or other tax laws. We do not guarantee the tax status of your contract. 23 Annuity Contracts in General The Internal Revenue Code (the "Code") provides special rules regarding the tax treatment of annuity contracts. Generally, you will not be taxed on the earnings in an annuity contract until you take the money out. Different rules apply depending on how you take the money out and whether your contract is qualified or non-qualified, as explained below. If you do not purchase your contract under a retirement arrangement entitled to favorable federal income tax treatment, your contract is referred to as a non-qualified contract. If you purchase your contract under a retirement arrangement entitled to favorable federal income tax treatment, your contract is referred to as a qualified contract. Tax Treatment of Distributions -- Non-Qualified Contracts If you make a withdrawal from a non-qualified contract or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of premium, until all gain has been withdrawn. For annuity payments, any portion of each payment that is considered a return of your premium will not be taxed. There is a 10% tax penalty on any taxable amount you receive unless the amount received is paid: (1) after you reach age 59 1/2; (2) to your beneficiary after you die; (3) after you become disabled; (4) as part of a series of substantially equal periodic payments made at least annually over the life or life expectancy of the owner, or the joint life expectancies of the owner and the beneficiary, provided such payments are made for the longer of five years or until the owner reaches age 59 1/2, and the distribution method is not changed during that time; or (5) under an immediate annuity. Distributions under the contract, including withdrawals, full surrenders, payments upon death, and annuity payments, are subject to tax as ordinary income when received. Assignments If you assign all or part of the contract as collateral for a loan, the part assigned will be treated as a withdrawal taxable as ordinary income to the extent there is gain in the contract. Please consult your tax adviser prior to making an assignment of the contract. Gifts of Contracts If you transfer a contract for less than full consideration, such as by gift, you will generally trigger tax on the gain in the contract. This rule does not apply to those transfers between spouses or incident to divorce. Contracts Owned by Non-Natural Persons If the contract is held by a non-natural person (for example, a corporation or trust), the contract is generally not treated as an annuity contract for federal income tax purposes, and the income on the contract (generally the excess of the Contract Value over the premium) is includable in income each year. 24 The rule does not apply where the non-natural person is only the nominal owner, such as a trust or other entity acting as an agent for a natural person, and in other limited circumstances. Distribution at Death Rules Upon the death of the first owner of the contract to die, certain rules apply: o If the owner dies on or after the Annuity Date, and before the entire interest in the contract has been distributed, the remaining portion must be distributed at least as quickly as the method in effect on the owner's death. o If the owner dies before the Annuity Date, the entire interest must generally be distributed within five years after the date of death. o If the beneficiary is a natural person, the interest may be annuitized over the life of that individual or over a period not extending beyond the life expectancy of that individual, so long as distributions commence within one year after the date of death. o If the beneficiary is the spouse of the owner, the contract may be continued in the name of the spouse as owner. o If the owner is not an individual, the death of the "primary annuitant" (as defined under the Code) is treated as the death of the owner. In addition, when the owner is not an individual, a change in the primary annuitant is treated as the death of the owner. Section 1035 Exchanges Code Section 1035 generally provides that no gain or loss shall be recognized on the exchange of an annuity contract for another annuity contract unless money or other property is distributed as part of the exchange. A replacement contract obtained in a tax-free exchange of contracts succeeds to the status of the surrendered contract. Special rules and procedures apply to Section 1035 transactions. Prospective owners wishing to take advantage of Section 1035 of the Code should consult their tax advisers. Tax Treatment of Distributions -- Qualified Contracts If you purchase your contract under a tax-favored retirement plan or account, your contract is referred to as a qualified contract. Examples of qualified plans or accounts are: o Individual Retirement Annuities ("IRAs"); o Roth IRAs; o Tax Deferred Annuities (governed by Code Section 403(b) and referred to as "403(b) Plans"); o Keogh Plans; and o Employer-sponsored pension and profit sharing arrangements such as 401(k) plans. Withdrawals in General 25 Generally, with the exception of a Roth IRA, you have not paid any taxes on the premium used to buy a qualified contract or on any earnings. Therefore, any amount you take out as a withdrawal or as annuity payments will be taxable income. In addition, a 10% tax penalty may apply to the taxable part of a withdrawal received before age 59 1/2. Limited exceptions are provided, such as where amounts are paid in the form of a qualified life annuity, upon death or disability of the employee, to pay certain medical expenses, or, in some cases, upon separation from service on or after age 55. Individual Retirement Annuities Code Section 408 permits eligible individuals to contribute to an IRA. By attachment of an endorsement that reflects the limits of Code Section 408(b), the Contracts may be issued as an IRA. Contracts issued in connection with an IRA are subject to limitations on eligibility, maximum contributions, and time of distribution. Certain distributions from certain retirement plans qualifying for federal tax advantages may be rolled over into an IRA. In addition, distributions from an IRA may be rolled over to another IRA, provided certain conditions are met. Most IRAs cannot accept contributions after the owner reaches 70 1/2, and must also begin required distributions at that age. Sales of the contract for use with IRAs are subject to special requirements, including the requirement that informational disclosure be given to each person desiring to establish an IRA. That person must be given the opportunity to affirm or reverse a decision to purchase the contract. Contracts offered by this prospectus in connection with an IRA are not available in all states. The accidental death benefit is not available under a contract issued in connection with an IRA. Roth IRAs Code Section 408A provides special rules for "Roth IRAs." The basic distinction between a Roth IRA and a traditional IRA is that contributions to a Roth IRA are not deductible and "qualified distributions" from a Roth IRA are not includable in gross income for federal income tax purposes. Other differences include the ability to make contributions to a Roth IRA after age 70 1/2 and to defer distributions beyond age 70 1/2. Taxpayers whose adjusted gross incomes exceed certain levels are not eligible for Roth IRAs. 403(b) Plans The contracts are also available for use in connection with a previously established 403(b) plan. Code Section 403(b) imposes certain restrictions on your ability to surrender and make partial withdrawals from a contract used in connection with a 403(b) Plan, if attributable to premium paid under a salary reduction agreement. Specifically, an owner may surrender the contract or make a partial withdrawal only (a) when the employee attains age 59 1/2, separates from service, dies, or becomes disabled, or (b) in the case of hardship. In the case of hardship, only an amount equal to the premium paid may be withdrawn. 403(b) Plans are subject to additional requirements, including eligibility, limits on contributions, minimum distributions, and nondiscrimination requirements applicable to the employer. In particular, distributions generally must commence by April 1 of the calendar year following the later of the year in which the employee (a) attains age 70 1/2, or (b) retires. Owners and their employers are responsible for compliance with these rules. Contracts offered by this prospectus in connection with a 403(b) Plan are not available in all states. Rollovers Distributions from a 401(a) qualified plan or 403(b) plan (other than non-taxable distributions representing a return of capital, distributions meeting the minimum distribution requirement, distributions for the life or life expectancy of the recipient(s) or distributions that are made over a period of more than 10 years) are eligible for tax-free rollover within 60 days of the date of distribution, but are also subject to federal income tax withholding at a 20% rate unless paid directly to another qualified plan, 403(b) plan or IRA. For tax years beginning in 2002, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) expands the range of eligible tax-free rollover distributions that may be made among qualified contracts. A prospective owner considering use of the contract in connection with a rollover should consult a competent tax adviser with regard to the suitability of the contract for this purpose and for information concerning the tax law provisions applicable to qualified plans, 403(b) plans, and IRAs. 26 IRA. A prospective owner considering use of the contract in connection with a rollover should consult a competent tax adviser with regard to the suitability of the contract for this purpose and for information concerning the tax law provisions applicable to qualified plans, 403(b) plans, and IRAs. Diversification and Investor Control The Code imposes certain diversification requirements on the underlying investments for a variable annuity to be treated as an annuity contract for tax purposes. We believe that the portfolios are being managed so as to comply with these requirements. The tax regulations do not provide guidance as to the circumstances under which you, because of the degree of control you exercise over the underlying investments, would be considered the owner of the shares of the portfolios. If any guidance on this point is provided which is considered a new position, then the guidance would generally be applied prospectively. However, if such guidance is considered not to be a new position, it may be applied retroactively. This would mean you, as the owner of the contract, could be treated as the owner of assets in the portfolios. We reserve the right to make changes to the contract we think necessary to see that it qualifies as a variable annuity contract for tax purposes. Treatment of Charges for Optional Death Benefit We believe that the optional death benefits available under the contract are part of the annuity contract since these benefits provide investment protection to you. There is a risk, however, that the Internal Revenue Service would take the position that one or more of the optional death benefits are not part of the annuity contract. In such a case, charges against the variable account value of the annuity contract or charges withheld from a rollover for the benefits would be considered distributions subject to tax, including penalty taxes, and charges withheld from the premium for the contract would not be deductible in the case of a qualified contract and would not be included in the investment in the contract in the case of a non-qualified contract. Under qualified contracts, the Internal Revenue Service may treat certain optional death benefits as exceeding the allowable limits for incidental death benefits or as violating the rule against providing life insurance within an IRA. This contract offers death benefits that may exceed the greater of the premiums paid or the contract value. If the Internal Revenue Service determines that these benefits constitute life insurance and does not apply such determination on a prospective basis, then your contract may not qualify as an IRA. You should consult with a competent tax adviser with regard to the suitability of optional death benefits under a qualified plan. Withholding We are required to withhold federal income taxes on withdrawals, lump sum distributions, and annuity payments that include taxable income unless the payee elects to not have any withholding or in certain other circumstances. If you do not provide a social security number or other taxpayer identification number, you will not be permitted to elect out of withholding. Special withholding rules apply to payments made to non-resident aliens. For lump-sum distributions or withdrawals, we are required to withhold 10% of the taxable portion of any withdrawal or lump sum distribution unless you elect out of withholding. For annuity payments, the company will withhold on the taxable portion of annuity payments based on a withholding certificate you file with us. If you do not file a certificate, you will be treated, for purposes of determining your withholding rates, as a married person with three exemptions. You are liable for payment of federal income taxes on the taxable portion of any withdrawal, distribution, or annuity payment. You may be subject to penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient to discharge your tax liability. 27 ================================================================================ OTHER INFORMATION ================================================================================ American International Life Assurance Company of New York We are a stock life insurance company organized under the laws of New York. We were incorporated in 1962. Our principal business address is 80 Pine Street, New York, New York 10005. We provide a full range of life insurance and annuity plans. We are a subsidiary of American International Group, Inc. ("AIG"), which serves as the holding company for a number of companies engaged in the international insurance business in approximately 130 countries and jurisdictions around the world. We may occasionally publish in advertisements, sales literature and reports the ratings and other information assigned to AIG by one or more independent rating organizations such as A.M. Best Company, Moody's and Standard & Poor's. The purpose of the ratings is to reflect the rating organization's opinion of our financial strength and should not be considered as bearing on the investment performance of assets held in the variable account. The ratings are not recommendations to purchase our life insurance or annuity products or to hold or sell these products, nor do the ratings comment on the suitability of such products for a particular investor. There can be no assurance that any rating will remain in effect for any given period of time or that any rating will not be lowered or withdrawn entirely by a rating organization if, in such organization's judgment, future circumstances so warrant. The ratings do not reflect the investment performance of the variable account or the degree of risk associated with an investment in the variable account. Ownership This prospectus describes both individual flexible premium deferred variable annuity contracts and group flexible premium deferred variable annuity contracts. The individual and group contracts described in this prospectus are identical except that the individual contract is issued directly to the individual owner. A group contract is issued to a contract holder for the benefit of the participants in the group. If you are a participant in the group you will receive a certificate evidencing your ownership. You, either as the owner of an individual contract or as the owner of a certificate, are entitled to all the rights and privileges of ownership. As used in this prospectus, the term contract is equally applicable to an individual contract or to a certificate. Voting Rights To the extent required by law, we will vote the portfolio shares held in the variable account at shareholder meetings in accordance with instructions received from persons having a voting interest in the portfolio. However, if legal requirements or our interpretation of present law changes to permit us to vote the portfolio shares in our own right, we may elect to do so. Prior to the Annuity Date, you hold a voting interest in each portfolio in whose corresponding subaccount you have Contract Value. We determine the number of portfolio shares that are attributable to you by dividing the corresponding value in a particular portfolio by the net asset value of one portfolio share. After the Annuity Date, we determine the number of portfolio shares that are attributable to you by dividing the reserve maintained in a particular portfolio to meet the obligations under the contract by the net asset value of one portfolio share. The number of votes that you will have a right to cast will be determined as of the record date established by each portfolio. 28 We will solicit voting instructions by mail prior to the shareholder meeting. Each person having a voting interest in a portfolio will receive proxy material, reports and other materials relating to the appropriate portfolios. We will vote shares in accordance with instructions received from the person having a voting interest. We will vote shares for which we receive no timely instructions and any shares not attributable to owners in proportion to the voting instructions we have received. The voting rights relate only to amounts invested in the variable account. There are no voting rights with respect to funds allocated to the fixed investment option. Administration of the Contract While we have primary responsibility for all administration of the contract and the variable account, we have retained the services of Delaware Valley Financial Services, Inc. ("DVFS") pursuant to an administrative agreement. These administrative services include issuance of the contract and maintenance of owner records. DVFS serves as the administrator to various insurance companies offering variable annuity contracts and variable life insurance policies. Legal Proceedings There are no pending legal proceedings that, in our judgment, are material with respect to the variable account. ================================================================================ FINANCIAL STATEMENTS ================================================================================ Financial statements of American International Life Assurance Company of New York and of the Variable Account are included in the SAI, which may be obtained without charge by calling (800) 255-8402 or writing to American International Life Assurance Company of New York, Attention: Variable Products, One Alico Plaza, 600 King Street, Wilmington, Delaware 19801. The financial statements have also been filed electronically with the SEC and can be obtained through its website at http://www.sec.gov. 29 ================================================================================ APPENDIX ================================================================================ CONDENSED FINANCIAL INFORMATION AIL OVATION PLUS VARIABLE ACCOUNT A ACCUMULATION UNIT VALUES 2001 ---------- ALLIANCE VARIABLE PRODUCTS SERIES FUND GLOBAL BOND PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 13.01 Accum Units o/s @ end of period 87,368.37 GLOBAL DOLLAR GOVERNMENT PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 18.91 Accum Units o/s @ end of period 104,669.97 GROWTH PORTFOLIO (CLASS B) Accumulation Unit Value Beginning of Period N/A End of Period 23.33 Accum Units o/s @ end of period 73,965.26 GROWTH & INCOME PORTFOLIO (CLASS B) Accumulation Unit Value Beginning of Period N/A End of Period 34.87 Accum Units o/s @ end of period 112,352.69 HIGH YIELD PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 8.93 Accum Units o/s @ end of period 205,170.96 INTERNATIONAL PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 12.28 Accum Units o/s @ end of period 539,574.31 MONEY MARKET PORTFOLIO (CLASS B) Accumulation Unit Value Beginning of Period N/A End of Period 12.90 Accum Units o/s @ end of period 233,701.51 NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 16.65 Accum Units o/s @ end of period 349,119.64 PREMIER GROWTH PORTFOLIO (CLASS B) Accumulation Unit Value Beginning of Period N/A End of Period 7.71 Accum Units o/s @ end of period 332,906.73 QUASAR PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 10.72 Accum Units o/s @ end of period 718,113.71 BERNSTEIN REAL ESTATE INVESTMENT PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 12.40 Accum Units o/s @ end of period 216,931.09 TECHNOLOGY PORTFOLIO (CLASS B) Accumulation Unit Value Beginning of Period N/A End of Period 7.13 Accum Units o/s @ end of period 160,981.33 TOTAL RETURN PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 21.89 Accum Units o/s @ end of period 712,271.45 U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 14.75 Accum Units o/s @ end of period 618,869.20 BERNSTEIN UTILITY INCOME PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 18.55 Accum Units o/s @ end of period 332,091.40 WORLDWIDE PRIVATIZATION PORTFOLIO Accumulation Unit Value Beginning of Period N/A End of Period 14.89 Accum Units o/s @ end of period 350,202.20 ================================================================================ TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION ================================================================================ GENERAL INFORMATION.......................................................... American International Life Assurance Company of New York.............. Independent Accountants................................................ Legal Counsel.......................................................... Distributor............................................................ Potential Conflicts.................................................... CALCULATION OF PERFORMANCE DATA.............................................. Yield and Effective Yield Quotations for the Money Market Subaccount... Yield Quotations for Other Subaccounts................................. Standardized Performance Data.......................................... Tax Deferred Accumulation.............................................. ANNUITY PROVISIONS........................................................... Variable Annuity Payments.............................................. Annuity Unit Value..................................................... Net Investment Factor.................................................. Additional Provisions.................................................. FINANCIAL STATEMENTS......................................................... STATEMENT OF ADDITIONAL INFORMATION May 1, 2002 OVATION PLUS VARIABLE ANNUITY issued by AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK through its VARIABLE ACCOUNT A This statement of additional information is not a prospectus. It should be read in conjunction with the prospectus describing the flexible premium deferred annuity contract. The prospectus concisely sets forth information that a prospective investor should know before investing. For a copy of the prospectus dated May 1, 2002, call us at (800) 255-8402 or write to us at American International Life Assurance Company of New York, Attention: Variable Products, One Alico Plaza, 600 King Street, Wilmington, Delaware 19801. ================================================================================ TABLE OF CONTENTS ================================================================================ GENERAL INFORMATION.......................................................... 3 American International Life Assurance Company of New York.............. 3 Independent Accountants................................................ 3 Legal Counsel.......................................................... 3 Distributor............................................................ 3 Potential Conflicts.................................................... 3 CALCULATION OF PERFORMANCE DATA.............................................. 4 Yield and Effective Yield Quotations for the Money Market Subaccount... 4 Yield Quotations for Other Subaccounts................................. 5 Standardized Performance Data.......................................... 5 Tax Deferred Accumulation.............................................. 8 ANNUITY PROVISIONS........................................................... 9 Variable Annuity Payments.............................................. 9 Annuity Unit Value..................................................... 9 Net Investment Factor.................................................. 10 Additional Provisions.................................................. 11 FINANCIAL STATEMENTS......................................................... 11 2 ================================================================================ GENERAL INFORMATION ================================================================================ American International Life Assurance Company of New York A description of American International Life Assurance Company of New York and its ownership is contained in the prospectus. We will provide for the safekeeping of the assets of Variable Account A. Independent Accountants Our financial statements have been audited by PricewaterhouseCoopers LLP, independent certified public accountants, whose offices are located in Florham Park, NJ. Legal Counsel Legal matters relating to the federal securities laws in connection with the contract described herein and in the prospectus are being passed upon by Morgan, Lewis & Bockius LLP, Washington, D.C. Distributor Our affiliate, AIG Equity Sales Corp. ("AIGESC"), 70 Pine Street, New York, New York, acts as the distributor of the contract. AIGESC is a wholly owned subsidiary of American International Group, Inc. Commissions not to exceed 7% of premiums will be paid to entities that sell the contract. Additional payments may be made for other services not directly related to the sale of the contract, including the recruitment and training of personnel, production of promotional literature and similar services. Commissions are paid by Variable Account A directly to selling dealers and representatives on behalf of AIGESC. Aggregate commissions were $1,621,708 in 2001, $4,114,883 in 2000, and $2,379,279 in 1999. Commissions retained by AIGESC were $0 in 2001, 2000, and 1999. Potential Conflicts Shares of the funds may be sold only to separate accounts of life insurance companies. They may be sold to our other separate accounts, as well as to separate accounts of other affiliated or unaffiliated life insurance companies, to fund variable annuity contracts and variable life insurance policies. It is conceivable that, in the future, it may be disadvantageous for variable life insurance separate accounts and variable annuity separate accounts to invest in a fund simultaneously. Although neither we nor the funds currently foresee any such disadvantages, either to variable life insurance policy owners or to variable annuity owners, each fund's board of directors will monitor events in order to identify any material irreconcilable conflicts which may possibly arise and to determine what action, if any, should be taken. If a material 3 irreconcilable conflict were to occur, we will take whatever steps are deemed necessary, at our expense, to remedy or eliminate the irreconcilable material conflict. As a result, one or more insurance company separate accounts might withdraw their investments in the fund. This might force the fund to sell securities at disadvantageous prices. ================================================================================ CALCULATION OF PERFORMANCE DATA ================================================================================ Yield and Effective Yield Quotations for the Money Market Subaccount The yield quotation for the money market subaccount will be for the seven days ended on the date of the most recent balance sheet of Variable Account A included in the registration statement. It will be computed by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one Accumulation Unit in the money market subaccount at the beginning of the period, subtracting a hypothetical charge reflecting deductions from owner accounts, dividing the difference by the value of the account at the beginning of the base period to obtain the base period return, and multiplying the base period return by (365/7) with the resulting figure carried to at least the nearest hundredth of one percent. Any effective yield quotation for the money market subaccount will be for the seven days ended on the date of the most recent balance sheet of Variable Account A included in the registration statement and will be carried at least to the nearest hundredth of one percent. It will be computed by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one Accumulation Unit in the money market subaccount at the beginning of the period, subtracting a hypothetical charge reflecting deductions from owner accounts, dividing the difference by the value of the account at the beginning of the base period to obtain the base period return, and then compounding the base period return by adding 1, raising the sum to a power equal to 365 divided by 7, and subtracting 1 from the result, according to the following formula: Effective Yield = [(Base Period Return + 1)365/7]-1 For purposes of the yield and effective yield quotations, the hypothetical charge reflects all deductions that are charged to all owner accounts in proportion to the length of the base period. For any fees that vary with the size of the account, the account size is assumed to be the money market subaccount's mean account size. The yield and effective yield quotations do not reflect the surrender charge that may be assessed at the time of withdrawal in an amount ranging up to 6% of the requested withdrawal amount, with the specific percentage applicable to a particular withdrawal depending on the length of time the premium was held under the contract and whether withdrawals had been previously made during that Contract Year. No deductions or sales loads are assessed upon annuitization under the contract. Realized gains and losses from 4 the sale of securities and unrealized appreciation and depreciation of the money market subaccount and the corresponding portfolio are excluded from the calculation of yield. Yield Quotations for Other Subaccounts Yield quotations will be based on the thirty-day period ended on the date of the most recent balance sheet of Variable Account A included in the registration statement, and are computed by dividing the net investment income per Accumulation Unit earned during the period by the maximum offering price per unit on the last day of the period, according to the following formula: Yield = 2[(a - b + 1)^6 - 1] ----- cd Where: a = net investment income earned during the period by the portfolio attributable to shares owned by the Subaccount. b = expenses accrued for the period (net of reimbursements) c = the average daily number of Accumulation Units outstanding during the period. d = the maximum offering price per Accumulation Unit on the last day of the period Yield quotations for a subaccount reflect all recurring contract charges (except surrender charge). For any charge that varies with the size of the account, the account size is assumed to be the respective subaccount's mean account size. A surrender charge may be assessed at the time of withdrawal in an amount ranging up to 6% of the requested withdrawal amount, with the specific percentage applicable to a particular withdrawal depending on the length of time the premium was held under the contract, and whether withdrawals had previously been made during that Contract Year. Standardized Performance Data The total return quotations for all of the subaccounts will be average annual total return quotations for one, five, and ten year periods (or, where a subaccount has been in existence for a period of less than one, five or ten years, for such lesser period) ended on the date of the most recent balance sheet of Variable Account A and for the period from the date monies were first placed into the subaccounts until the aforesaid date. This type of performance information is referred to as standardized performance and is based on the life of the subaccount. The quotations are computed by finding the average annual compounded rates of return over the 5 relevant periods that would equate the initial amount invested to the ending redeemable value, according to the following formula: P(1+T)^n = ERV Where: P = a hypothetical initial payment of $1,000 T = average annual total return n = number of years ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of the particular period at the end of the particular period The average annual total return quotations reflect all portfolio expenses and all contract charges except optional benefit charges and assume a total surrender at the end of the particular period. For any charge that varies with the size of the account, the account size is assumed to be the respective subaccount's mean account size. The average annual total return quotations also reflect receipt of the Premium Enhancement described in the prospectus. 6 Standardized Average Annual Total Return This table reflects historical subaccount investment results as of December 31, 2001, based on a $1,000 hypothetical investment over the periods indicated below. The returns reflect all portfolio expenses and all variable account charges except optional benefit charges. The variable account charges include the mortality and expense risk charge, administrative charge, distribution charge, and any surrender charge applicable if an owner surrendered the contract at the end of the relevant period. The returns also reflect receipt of the Premium Enhancement. The portfolio charges include management fees and other operating expenses.
--------------------------------------------------------------------------------------------------------- 10 YEARS SUBACCOUNT OR SINCE SUBACCOUNT INCEPTION DATE 1 YEAR 5 YEARS INCEPTION ========================================================================================================= Global Bond Subaccount 7/8/92 -7.21 -0.57 2.98 --------------------------------------------------------------------------------------------------------- Global Dollar Government Subaccount 4/20/94 2.30 4.66 8.46 --------------------------------------------------------------------------------------------------------- Growth Subaccount (Class B) 8/16/94 -30.26 4.92 11.97 --------------------------------------------------------------------------------------------------------- Growth and Income Subaccount (Class B) 7/8/92 -6.79 12.34 14.00 --------------------------------------------------------------------------------------------------------- High-Yield Subaccount 10/24/97 -3.94 N/A -3.80 --------------------------------------------------------------------------------------------------------- International Subaccount 10/1/93 -28.98 -1.92 1.69 --------------------------------------------------------------------------------------------------------- Money Market Subaccount (Class B) 2/3/93 -3.73 2.48 2.70 --------------------------------------------------------------------------------------------------------- Americas Government Income Subaccount 4/11/94 -3.40 5.45 6.62 --------------------------------------------------------------------------------------------------------- Premier Growth Subaccount (Class B) 2/3/93 -24.10 10.32 12.78 --------------------------------------------------------------------------------------------------------- Quasar Subaccount 8/2/96 -19.52 0.32 0.63 --------------------------------------------------------------------------------------------------------- AllianceBernstein Real Estate Investment Subaccount 1/2/97 3.70 N/A 3.62 --------------------------------------------------------------------------------------------------------- Technology Subaccount (Class B) 1/10/96 -32.04 10.16 10.08 --------------------------------------------------------------------------------------------------------- Total Return Subaccount 8/26/94 -4.70 9.48 10.91 --------------------------------------------------------------------------------------------------------- U.S. Government/High Grade Securities Subaccount 8/20/93 0.83 4.35 4.24 --------------------------------------------------------------------------------------------------------- AllianceBernstein Utility Income Subaccount 4/20/94 -29.12 7.75 8.39 --------------------------------------------------------------------------------------------------------- Worldwide Privatization Subaccount 8/16/94 -23.98 2.18 5.33 --------------------------------------------------------------------------------------------------------- Alliance Bernstein International Value Subaccount 5/1/01 N/A N/A -11.41 --------------------------------------------------------------------------------------------------------- Alliance Bernstein Small Cap Value Subaccount 5/1/01 N/A N/A 7.89 --------------------------------------------------------------------------------------------------------- Alliance Bernstein Value Subaccount (Class B) 5/1/01 N/A N/A -8.59 ---------------------------------------------------------------------------------------------------------
7 Non-Standardized Average Annual Total Return This table reflects adjusted historical portfolio investment results as of December 31, 2001, based on a $1,000 hypothetical investment over the periods indicated below. The returns reflect all portfolio charges and certain variable account charges. The variable account charges include the mortality and expense risk charge, the administrative charge and the distribution charge. The returns do not reflect the surrender charge, or optional benefit charges. If reflected, those charges would reduce the performance quoted. Nor do they reflect the receipt of Premium Enhancement described in the prospectus. The portfolio charges include management fees and other operating expenses.
-------------------------------------------------------------------------------------------------------------------- 10 YEARS PORTFOLIO OR SINCE PORTFOLIO INCEPTION DATE 1 YEAR 3 YEARS 5 YEARS INCEPTION ==================================================================================================================== Global Bond Portfolio 7/8/92 -1.87 -3.35 0.09 2.96 -------------------------------------------------------------------------------------------------------------------- Global Dollar Government Portfolio 4/20/94 7.64 14.46 5.19 8.43 -------------------------------------------------------------------------------------------------------------------- Growth Portfolio (Class B) 8/16/94 -24.92 -7.03 5.44 11.94 -------------------------------------------------------------------------------------------------------------------- Growth and Income Portfolio (Class B) 7/8/92 -1.45 6.45 12.72 13.95 -------------------------------------------------------------------------------------------------------------------- High-Yield Portfolio 10/24/97 1.40 -3.19 N/A -2.86 -------------------------------------------------------------------------------------------------------------------- International Portfolio 10/1/93 -23.64 -5.96 -1.22 1.67 -------------------------------------------------------------------------------------------------------------------- Money Market Portfolio (Class B) 2/3/93 1.67 2.82 3.06 2.68 -------------------------------------------------------------------------------------------------------------------- Americas Government Income Portfolio 4/11/94 1.94 6.52 5.96 6.60 -------------------------------------------------------------------------------------------------------------------- Premier Growth Portfolio (Class B) 2/3/93 -18.76 -4.63 10.74 12.74 -------------------------------------------------------------------------------------------------------------------- Quasar Portfolio 8/2/96 -14.18 -2.95 0.06 1.09 -------------------------------------------------------------------------------------------------------------------- AllianceBernstein Real Estate Investment Portfolio 1/2/97 9.44 8.29 N/A 4.20 -------------------------------------------------------------------------------------------------------------------- Technology Portfolio (Class B) 1/10/96 -26.70 -0.72 10.59 10.32 -------------------------------------------------------------------------------------------------------------------- Total Return Portfolio 8/26/94 0.64 5.33 9.92 10.88 -------------------------------------------------------------------------------------------------------------------- U.S. Government/High Grade Securities Portfolio 8/20/93 6.17 3.67 4.89 4.21 -------------------------------------------------------------------------------------------------------------------- AllianceBernstein Utility Income Portfolio 4/20/94 23.38 -0.57 8.21 8.36 -------------------------------------------------------------------------------------------------------------------- Worldwide Privatization Portfolio 8/16/94 -18.65 -1.21 2.77 5.31 -------------------------------------------------------------------------------------------------------------------- Alliance Bernstein International Value Portfolio 5/1/01 N/A N/A N/A -3.51 -------------------------------------------------------------------------------------------------------------------- Alliance Bernstein Small Cap Value Portfolio 5/1/01 N/A N/A N/A 16.31 -------------------------------------------------------------------------------------------------------------------- Alliance Bernstein Value Portfolio (Class B) 5/1/01 N/A N/A N/A -0.61 --------------------------------------------------------------------------------------------------------------------
8 Tax Deferred Accumulation In reports or other communications to you or in advertising or sales materials, we may also describe the effects of tax deferred compounding on Variable Account A's investment returns or upon returns in general. These effects may be illustrated in charts or graphs and may include comparisons at various points in time of returns under the contract or in general on a tax-deferred basis with the returns on a taxable basis. Different tax rates may be assumed. In general, individuals who own annuity contracts are not taxed on increases in the value under the annuity contract until some form of distribution is made from the contract. Thus, the annuity contract will benefit from tax deferral during the accumulation phase, which generally will have the effect of permitting an investment in an annuity contract to grow more rapidly than a comparable investment under which increases in value are taxed on a current basis. The chart shows accumulations on an initial investment or premium of a given amount, assuming hypothetical gross annual returns compounded annually, and a stated assumed rate. The values shown for the taxable investment do not include any deduction for management fees or other expenses but assume that taxes are deducted annually from investment returns. The values shown for the variable annuity in a chart reflect the deduction of contractual expenses such as the 1.25% mortality and expense risk charge, the 0.15% administrative charge, and the 0.20% distribution charge, but not the expenses of an underlying investment portfolio. In addition, these values assume that the owner does not surrender the contract or make any partial surrenders until the end of the period shown. The chart assumes a full surrender at the end of the period shown and the payment of taxes at the 31% rate on the amount in excess of the premium. In developing tax-deferral charts, we will follow these general principles: (1) the assumed rate of earnings will be realistic; (2) the chart will depict accurately the effect of all fees and charges or provide a narrative that prominently discloses all fees and charges; (3) comparative charts for accumulation values for tax-deferred and non-tax-deferred investments will depict the implications of any surrender; and (4) a narrative accompanying the chart will disclose prominently that there may be a 10% tax penalty on a surrender by an owner who has not reached age 59 1/2. The rates of return illustrated are hypothetical and are not an estimate or guaranty of performance. Actual tax rates may vary for different taxpayers. 9 ================================================================================ ANNUITY PROVISIONS ================================================================================ Variable Annuity Payments A variable annuity is an annuity with payments which are not predetermined as to dollar amount and will vary in amount with the net investment results of the applicable subaccounts. At the Annuity Date, the Contract Value in each subaccount will be applied to the applicable annuity tables contained in the contract. The annuity table used will depend upon the payment option chosen. The same Contract Value amount applied to each payment option may produce a different initial annuity payment. If, as of the Annuity Date, the then current annuity rates applicable to contract will provide a larger income than that guaranteed for the same form of annuity under the contract, the larger amount will be paid. The first annuity payment for each subaccount is determined by multiplying the amount of the Contract Value allocated to that subaccount by the factor shown in the table for the option selected, divided by 1000. The dollar amount of subsequent annuity payments is determined as follows: (a) The dollar amount of the first annuity payment is divided by the Annuity Unit value as of the Annuity Date. This establishes the number of Annuity Units for each monthly payment. The number of Annuity Units remains fixed during the annuity payment period, subject to any transfers. (b) The fixed number of Annuity Units is multiplied by the Annuity Unit value for the Valuation Period fourteen days prior to the date of payment. The total dollar amount of each variable annuity payment is the sum of all subaccount variable annuity payments less the pro rata amount of the administrative charge. Annuity Unit Value The value of an Annuity Unit for each subaccount was arbitrarily set initially at $10. This was done when the first portfolio shares were purchased. The Annuity Unit value at the end of any subsequent Valuation Period is determined by multiplying the subaccount's Annuity Unit value for the immediately preceding Valuation Period by the quotient of (a) and (b) where: (a) is the net investment factor for the Valuation Period for which the Annuity Unit value is being determined; and (b) is the assumed investment factor for such Valuation Period. The assumed investment factor adjusts for the interest assumed in determining the first variable annuity payment. Such factor for any Valuation Period shall be the accumulated value, at the end of such period, of $1.00 deposited at the beginning of such period at the assumed investment rate of 5%. 10 Net Investment Factor The net investment factor is used to determine how investment results of a portfolio affect the Annuity Unit value of the subaccount from one Valuation Period to the next. The net investment factor for each subaccount for any Valuation Period is determined by dividing (a) by (b) and subtracting (c) from the result, where: (a) is equal to: (i) the net asset value per share of the portfolio held in the subaccount determined at the end of that Valuation Period, plus (ii) the per share amount of any dividend or capital gain distribution made by the portfolio held in the subaccount if the "ex-dividend" date occurs during that same Valuation Period, plus or minus (iii) a per share charge or credit, which we determine, for changes in tax reserves resulting from investment operations of the subaccount. (b) is equal to: (i) the net asset value per share of the portfolio held in the subaccount determined as of the end of the prior Valuation Period, plus or minus (ii) the per share charge or credit for any change in tax reserves for the prior Valuation Period. (c) is equal to: (i) the percentage factor representing the mortality and expense risk charge, plus (ii) the percentage factor representing the administrative charge. The net investment factor may be greater or less than the assumed investment factor. Therefore, the Annuity Unit value may increase or decrease from Valuation Period to Valuation Period. 11 Additional Provisions We will require proof of age and sex of the Annuitant before making any life annuity payment provided for by the contract. If the age or sex of the Annuitant has been misstated, we will compute the amount payable based on the correct age and sex. If annuity payments have begun, any underpayment that may have been made will be paid in full with the next annuity payment, including interest at the minimum annual rate of 3%. Any overpayments, including interest at the minimum annual rate of 3%, unless repaid to us in one sum, will be deducted from future annuity payments until we are repaid in full. If a contract provision requires that a person be alive, we may require due proof that the person is alive before we act under that provision. We will give the payee under an annuity payment option a settlement contract for the payment option. You may assign the contract prior to the Annuity Date. You must send a dated and signed written request to our Administrative Office accompanied by a duly executed copy of any assignment. We are not responsible for the validity of any assignment. ================================================================================ FINANCIAL STATEMENTS ================================================================================ Our financial statements and those of Variable Account A are included herein. The financial statements have also been filed electronically with the SEC and can be obtained through its website at http://www.sec.gov. Our financial statements shall be considered only as bearing upon our ability to meet our obligations under the contract. 12 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (a wholly-owned subsidiary of American International Group, Inc.) REPORT ON AUDITS OF FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999 Report of Independent Accountants To the Stockholders and Board of Directors American International Life Assurance Company of New York: In our opinion, the accompanying balance sheets and the related statements of income, capital funds, cash flows and comprehensive income present fairly, in all material respects, the financial position of American International Life Assurance Company (a wholly-owned subsidiary of American International Group, Inc.) at December 31, 2001 and 2000, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As discussed in Note 1(h) to the financial statements, the Company adopted Statement of Financial Accounting Standards No. 133 "Accounting for Derivative Instruments and Hedging Activities" in 2001. Also, as discussed in Note 1(h) to the financial statements, the Company adopted EITF No. 99-20 "Recognition of Interest Income and Impairment on Purchased and Retained beneficial Interests in Securitized Financial Assets" in 2001. PricewaterhouseCoopers LLP February 4, 2002 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK BALANCE SHEETS (in thousands)
December 31, December 31, 2001 2000 ------------ ------------ Assets Investments and cash: Fixed maturities: Bonds available for sale, at market value $6,171,000 $5,167,357 (cost: 2001 - $6,111,388; 2000 - $5,198,196) Equity securities: Common stock (cost: 2001 - $1; 2000 - $13,408) 225 29,991 Non-redeemable preferred stocks (cost: 2001 - $24,512; 2000 - $24,610) 22,331 24,514 Mortgage loans on real estate, net of allowance (2001 - $19,000; 2000 - $19,000) 383,481 472,576 Real estate, net of accumulated depreciation of $8,277 in 2001 and $7,626 in 2000 37,126 15,500 Policy loans 10,212 10,481 Other invested assets 117,788 177,002 Derivative assets, at market 2,416 -- Short-term investments, at cost (approximates market value) 68,620 23,505 Cash 12 9 ---------- ---------- Total investments and cash 6,813,211 5,920,935 Amounts due from related parties 27,113 9,598 Investment income due and accrued 96,854 89,363 Premium and insurance balances receivable 16,122 11,325 Reinsurance assets 195,857 351,726 Deferred policy acquisition costs 45,784 48,334 Federal income tax receivable 12,084 -- Deferred income taxes 12,959 12,412 Separate and variable accounts 297,407 386,675 Other assets 615 656 ---------- ---------- Total assets $7,518,006 $6,831,024 ========== ==========
See accompanying notes to financial statements. 2 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK BALANCE SHEETS (in thousands, except share amounts)
December 31, December 31, 2001 2000 ------------ ------------ Liabilities Policyholder contract deposits $4,210,524 $3,675,472 Future policy benefits for life and accident and health insurance contracts 2,202,712 1,990,030 Reserve for unearned premiums 7,188 6,999 Policy and contract claims 157,777 191,432 Reserve for commissions, expenses and taxes 5,070 5,751 Insurance balances payable 7,659 6,208 Federal income tax payable -- 1,940 Amounts due to related parties 2,215 3,105 Separate and variable accounts 297,407 386,675 Other liabilities 54,454 62,562 ---------- ---------- Total liabilities 6,945,006 6,330,174 ---------- ---------- Capital funds Common stock, $200 par value; 16,125 shares authorized, issued and outstanding 3,225 3,225 Additional paid-in capital 197,025 197,025 Retained earnings 333,626 264,977 Accumulated other comprehensive income 39,124 35,623 ---------- ---------- Total capital funds 573,000 500,850 ---------- ---------- Total liabilities and capital funds $7,518,006 $6,831,024 ========== ==========
See accompanying notes to financial statements. 3 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK STATEMENTS OF INCOME (in thousands)
Years ended December 31, ----------------------------------------------- 2001 2000 1999 ----------- ------------ ----------- Revenues: Premium income $ 503,560 $ 236,174 $ 189,448 Net investment income 483,261 454,863 462,215 Realized capital gains (losses) 55,478 (60,266) (13,103) ----------- ----------- ----------- Total revenues 1,042,299 630,771 638,560 ----------- ----------- ----------- Benefits and expenses: Death and other benefits 297,624 263,403 244,895 Increase in future policy benefits and policyholder contract deposits 500,715 280,852 239,635 Acquisition and insurance expenses 111,490 74,829 65,533 ----------- ----------- ----------- Total benefits and expenses 909,829 619,084 550,063 ----------- ----------- ----------- Income before income taxes 132,470 11,687 88,497 ----------- ----------- ----------- Income taxes (benefits): Current 48,632 13,372 15,263 Deferred (2,052) (8,833) 16,354 ----------- ----------- ----------- Total income taxes 46,580 4,539 31,617 ----------- ----------- ----------- Net Income before cumulative effect 85,890 7,148 56,880 Cumulative effect of accounting changes, net of tax (17,241) -- -- ----------- ----------- ----------- Net income $ 68,649 $ 7,148 $ 56,880 =========== =========== ===========
See accompanying notes to financial statements. 4 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK STATEMENTS OF CAPITAL FUNDS (in thousands)
Years ended December 31, ----------------------------------------------- 2001 2000 1999 ----------- ----------- ----------- Common stock Balance at beginning of year $ 3,225 $ 3,225 $ 3,225 ----------- ----------- ----------- Balance at end of year 3,225 3,225 3,225 ----------- ----------- ----------- Additional paid-in capital Balance at beginning of year 197,025 197,025 197,025 ----------- ----------- ----------- Balance at end of year 197,025 197,025 197,025 ----------- ----------- ----------- Retained earnings Balance at beginning of year 264,977 277,829 220,949 Net income 68,649 7,148 56,880 Dividends to stockholders -- (20,000) -- ----------- ----------- ----------- Balance at end of year 333,626 264,977 277,829 ----------- ----------- ----------- Accumulated other comprehensive income Balance at beginning of year 35,623 (59,831) 194,918 Unrealized appreciation (depreciation) of investments - net of reclassification adjustments 5,006 146,932 (400,842) Deferred income tax (expense) benefit on changes and future policy benefits (1,505) (51,478) 146,093 ----------- ----------- ----------- Balance at end of year 39,124 35,623 (59,831) ----------- ----------- ----------- Total capital funds $ 573,000 $ 500,850 $ 418,248 =========== =========== ===========
See accompanying notes to financial statements. 5 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK STATEMENTS OF CASH FLOWS (in thousands)
Years ended December 31, ----------------------------------------------- 2001 2000 1999 ----------- ----------- ----------- Cash flows from operating activities: Net income $ 68,649 $ 7,148 $ 56,880 ----------- ----------- ----------- Adjustments to reconcile net income to net cash provided by operating activities: Non-cash revenues, expenses, gains and losses included in income: Change in insurance reserves 179,216 133,793 45,730 Change in accounting principles 26,524 -- -- Change in premiums and insurance balances receivable and payable -net (3,344) 4,662 (5,697) Change in reinsurance assets 155,870 (45,063) (279,429) Change in deferred policy acquisition costs 2,552 (1,680) (5,234) Change in investment income due and accrued (7,491) (6,861) (799) Realized capital (gains) losses (55,478) 60,266 13,103 Change in current and deferred income taxes -net (16,076) (295) 2,133 Change in reserves for commissions, expenses and taxes (825) 568 135 Change in other assets and liabilities - net (54,963) 35,850 2,969 ----------- ----------- ----------- Total adjustments 225,985 181,240 (227,089) ----------- ----------- ----------- Net cash provided by (used in) operating activities 294,634 188,388 (170,209) ----------- ----------- ----------- Cash flows from investing activities: Cost of fixed maturities, sold 1,684,605 281,411 913,262 Cost of fixed maturities, matured or redeemed 423,471 462,195 641,409 Cost of equity securities sold 18,572 3,047 1,149 Cost of real estate sold 1,522 2,786 -- Realized capital gains (losses) 53,778 (60,266) (13,103) Purchase of fixed maturities (3,053,470) (848,607) (1,815,447) Purchase of equity securities (5,068) (1,182) (14,641) Purchase of real estate (23,799) -- -- Mortgage loans granted (20,175) (108,183) (64,782) Repayments of mortgage loans 109,270 96,067 148,799 Change in policy loans 269 (496) 296 Change in short-term investments (45,114) 120,260 108,799 Change in other invested assets 16,324 (28,228) (22,632) Other - net 10,134 (21,027) (4,525) ----------- ----------- ----------- Net cash used in investing activities (829,682) (102,223) (121,416) ----------- ----------- ----------- Cash flows from financing activities: Change in policyholder contract deposits 535,051 (66,401) 134,683 Dividends to stockholders -- (20,000) -- ----------- ----------- ----------- Net cash provided by financing activities 535,051 (86,401) 134,683 ----------- ----------- ----------- Change in cash 3 (236) (156,942) Cash at beginning of year 9 245 157,187 ----------- ----------- ----------- Cash at end of year $ 12 $ 9 $ 245 =========== =========== ===========
See accompanying notes to financial statements. 6 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK STATEMENTS OF COMPREHENSIVE INCOME (in thousands)
Years ended December 31, ----------------------------------------- 2001 2000 1999 -------- --------- ---------- Comprehensive income Net income $ 68,649 $ 7,148 $ 56,880 -------- --------- ---------- Other comprehensive income Unrealized appreciation (depreciation) of investments - net of reclassification adjustments 2,590 146,932 (400,842) Changes due to deferred income tax (expense) benefit on changes in future policy benefits (659) (51,478) 146,093 Net derivative gains arising from cash flow hedging activities 2,416 -- -- Changes due to deferred income tax expense on changes in hedging activities (846) -- -- -------- --------- ---------- Other comprehensive income (loss) 3,501 95,454 (254,749) -------- --------- ---------- Comprehensive income (loss) $ 72,150 $ 102,602 $ (197,869) ======== ========= ==========
See accompanying notes to financial statements. 7 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies (a) Basis of Presentation: American International Life Assurance Company of New York (the "Company") is a wholly owned subsidiary of American International Group, Inc. (the "Parent"). The financial statements of the Company have been prepared on the basis of 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 expenses during the reporting periods. Actual results could differ from those estimates. The Company is licensed to sell life and accident & health insurance in the District of Columbia and all states except Arizona, Connecticut and Maryland. The Company is also licensed in America Samoa, the Virgin Islands and Guam. The Company also files financial statements prepared in accordance with statutory practices prescribed or permitted by the Insurance Department of the State of New York. Financial statements prepared in accordance with GAAP differ in certain respects from the practices prescribed or permitted by regulatory authorities. The significant differences are: (1) statutory financial statements do not reflect fixed maturities available for sale at market value; (2) policy acquisition costs, charged against operations as incurred for regulatory purposes, have been deferred and are being amortized over the anticipated life of the contracts; (3) individual life and annuity policy reserves based on statutory requirements have been adjusted based upon mortality, lapse and interest assumptions applicable to these coverages, including provisions for reasonable adverse deviations; these assumptions reflect the Company's experience and industry standards; (4) deferred income taxes have been provided for temporary differences between the bases of assets and liabilities for financial reporting purposes and tax purposes without the limitations required for statutory purposes; (5) for regulatory purposes, future policy benefits, policyholder contract deposits, policy and contract claims and reserve for unearned premiums are presented net of ceded reinsurance; and (6) an asset valuation reserve and interest maintenance reserve using National Association of Insurance Commissioners (NAIC) formulas are set up for regulatory purposes. (b) Investments: Fixed maturities available for sale, where the company may not have the ability or positive intent to hold these securities until maturity, are carried at current market value. Interest income with respect to fixed maturity securities is accrued currently. Included in fixed maturities available for sale are collateralized mortgage obligations (CMOs). Premiums and discounts arising from the purchase of CMOs are treated as yield adjustments over their estimated lives. Common and non-redeemable preferred stocks are carried at current market values. Dividend income is generally recognized when receivable. Short-term investments are carried at cost, which approximates market. Unrealized gains and losses from investments in equity securities and fixed maturities available for sale are reflected as a separate component of comprehensive income, net of deferred income taxes and future policy benefits in capital funds currently. Realized capital gains and losses are determined principally by specific identification. Where declines in values of securities below cost or amortized cost are considered to be other than temporary, a charge is reflected in income for the difference between cost or amortized cost and estimated net realizable value. 8 1. Summary of Significant Accounting Policies - (continued) (b) Investments: (continued) Mortgage loans on real estate are carried at the unpaid principal balance less unamortized loan origination fees and costs and an allowance for uncollectible loans. Interest income on such loans is accrued currently. Real estate is carried at depreciated cost and is depreciated on a straight-line basis over 31.5 years. Expenditures for maintenance and repairs are charged to income as incurred. Expenditures for betterments are capitalized and depreciated over their estimated lives. Policy loans are carried at the aggregate unpaid principal balance. Other invested assets consist primarily of limited partnerships and other investments not classified elsewhere herein. These assets are recorded using either the cost or the equity method depending on the type of investment. (c) Income Taxes: The Company joins in a consolidated federal income tax return with the Parent and its domestic subsidiaries. The Company and the Parent have a written tax allocation agreement whereby the Parent agrees not to charge the Company a greater portion of the consolidated tax liability than would have been paid by the Company if it had filed a separate return. Additionally, the Parent agrees to reimburse the Company for any tax benefits arising out of its net losses within ninety days after the filing of that consolidated tax return for the year in which these losses are utilized. Deferred federal income taxes are provided for temporary differences related to the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. (d) Premium Recognition and Related Benefits and Expenses: Premiums for traditional life insurance and life contingent annuity contracts are recognized when due. Revenues for universal life and investment-type products consist of policy charges for the cost of insurance, administration and surrenders during the period. Premiums on accident and health insurance are reported as earned over the contract term. The portion of accident and health premiums which is not earned at the end of a reporting period is recorded as unearned premiums. Estimates of premiums due but not yet collected are accrued. Policy benefits and expenses are associated with earned premiums on long-duration contracts resulting in a level recognition of profits over the anticipated life of the contracts. Policy acquisition costs for traditional life insurance products are generally deferred and amortized over the premium paying period of the policy. Deferred policy acquisition costs and policy initiation costs related to universal life and investment-type products are amortized in relation to expected gross profits over the life of the policies (see Note 3). The liability for future policy benefits and policyholder contract deposits is established using assumptions described in Note 4. (e) Policy and Contract Claims: Policy and contract claims include amounts representing: (1) the actual in-force amounts for reported life claims and an estimate of incurred but unreported claims; and, (2) an estimate, based upon prior experience, for accident and health reported and incurred but unreported losses. The methods of making such estimates and establishing the resulting reserves are continually reviewed and updated and any adjustments resulting therefrom are reflected in income currently. (f) Separate and Variable Accounts: These accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders. Each account has specific investment objectives, and the assets are carried at market value. The assets of 9 1. Summary of Significant Accounting Policies - (continued) each account are legally segregated and are not subject to claims which arise out of any other business of the Company. (g) Reinsurance Assets: Reinsurance assets include the balances due from both reinsurance and insurance companies under the terms of the Company's reinsurance arrangements for ceded unearned premiums, future policy benefits for life and accident and health insurance contracts, policyholder contract deposits and policy and contract claims. It also includes funds held under reinsurance treaties. (h) New Accounting Standards: In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 133 "Accounting for Derivative Instruments and Hedging Activities" (FASB 133). In June 2000, FASB issued Statement of Financial Accounting Standards No. 138 "Accounting for Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133" (FASB 138). Together, these Statements require the Company to recognize all derivatives in the balance sheet at fair value. The financial statement recognition of the change in the fair value of a derivative depends on a number of factors, including the intended use of the derivative and the extent to which it is effective as part of a hedge transaction. AI Life did not hold any derivatives at January 1, 2001 and as a result did not have a cumulative effect of accounting change. On the date the derivative contract is entered into, the Company designates the derivative as a hedge of the subsequent changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value" hedge). The gain or loss in the fair value of a derivative that is designated, qualifies and is highly effective as a fair value hedge is recorded in current period earnings, along with the loss or gains on the hedged item attributed to the hedged risk. In January 2001, the Emerging Issues Task Force ("EITF") issued EITF 99-20, "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets." EITF 99-20 provides guidance on the calculation of interest income and the recognition of impairments related to beneficial interests held in an investment portfolio. Beneficial interests are investments that represent rights to receive specified cash flows from a pool of underlying assets (i.e. collateralized debt obligations). In accordance with the transition provisions of EITF 99-20, the Company recorded in its income statement for 2001 a loss of $17.2 million. In June 2001, FASB issued Statement of Financial Accounting Standard No. 141 "Business Combinations" (FASB 141). FASB 141 requires the Company to apply the purchase method of accounting for all acquisitions initiated after June 30, 2001. In June 2001, FASB issued Statement of Financial Accounting Standard No. 142 "Goodwill and other Intangible Assets" (FASB 142). FASB 142 requires the Company to discontinue the amortization of goodwill in its income statement. However, FASB 142 requires goodwill to be subject to an assessment of impairments on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred. FASB 142 is effective for the year commencing January 1, 2002. The impact of the 10 1. Summary of Significant Accounting Policies - (continued) adoption of FASB 142, with respect to the Company's results of operations and financial condition is deemed insignificant. 2. Investment Information (a) Statutory Deposits: Securities with a carrying value of $4,108,000 and $16,652,000 were deposited by the Company under requirements of regulatory authorities as of December 31, 2001 and 2000, respectively. (b) Net Investment Income: An analysis of net investment income is as follows (in thousands):
Years ended December 31, -------------------------------------- 2001 2000 1999 -------- -------- -------- Fixed maturities $424,858 $398,501 $392,878 Equity securities 2,986 3,074 2,309 Mortgage loans 41,159 40,595 45,173 Real estate 4,297 1,979 2,113 Policy loans 752 742 750 Cash and short-term investments 3,348 5,829 7,507 Other invested assets 12,246 9,055 16,026 -------- -------- -------- Total investment income 489,646 459,775 466,756 Investment expenses 6,385 4,912 4,541 -------- -------- -------- Net investment income $483,261 $454,863 $462,215 ======== ======== ========
(c) Investment Gains and Losses: The net realized capital gains (losses) and change in unrealized appreciation (depreciation) of investments for 2001, 2000 and 1999 are summarized below (in thousands):
Years ended December 31, --------------------------------------- 2001 2000 1999 --------- --------- --------- Realized gains (losses) on investments: Fixed maturities $ 13,081 $ (57,820) $ (15,407) equity securities 17,722 340 1,702 Real Estate (1,522) (2,786) -- Other invested assets 26,526 -- -- Other (329) -- 602 --------- --------- --------- Realized gains (losses) $ 55,478 $ (60,266) $ (13,103) ========= ========= ========= Change in unrealized appreciation (depreciation) of investments: Fixed maturities $ 90,451 $ 72,175 $(369,679) Equity securities (18,446) 5,341 (3,812) Other invested assets (69,416) 69,416 (27,351) Derivative assets 2,417 -- -- --------- --------- --------- Change in unrealized appreciation (depreciation) of investments $ 5,006 $ 146,932 $(400,842) ========= ========= =========
Proceeds from the sale of investments in fixed maturities during 2001, 2000 and 1999 were $1,684,605,000, $281,411,000 and $913,263,000, respectively. 11 2. Investment Information - (continued) During 2001, 2000 and 1999, gross gains of $84,375,000, $4,565,000 and $8,369,000, respectively, and gross losses of $71,294,000, $62,385,000 and $23,776,000, respectively, were realized on dispositions of fixed maturities. The 2001 losses include writedowns of $24.8 million for certain securities available for sale, which experienced a decline in value that are deemed other than temporary. During 2001, 2000 and 1999, gross gains of $17,722,000, $340,000 and $1,712,000, respectively, and gross losses of $0, $0 and $10,000, respectively, were realized on dispositions of equity securities. (d) Market Value of Fixed Maturities and Unrealized Appreciation of Investments: At December 31, 2001 and 2000, unrealized appreciation of investments in equity securities (before applicable taxes) included gross gains of $1,012,000 and $19,335,000 and gross losses of $2,969,000 and $2,848,000, respectively. The amortized cost and estimated market values of investments in fixed maturities at December 31, 2001 and 2000 are as follows (in thousands):
Gross Gross Estimated Amortized Unrealized Unrealized Market 2001 Cost Gains Losses Value ---- ---------- ---------- ---------- ---------- Fixed maturities: U.S. Government and government agencies and authorities $ 55,629 $ 9,702 $ 7 $ 65,324 States, municipalities and political subdivisions 279,902 18,289 479 297,712 All other corporate 5,775,857 183,861 151,754 5,807,964 ---------- ---------- ---------- ---------- Total fixed maturities $6,111,388 $ 211,852 $ 152,240 $6,171,000 ========== ========== ========== ========== Gross Gross Estimated Amortized Unrealized Unrealized Market 2000 Cost Gains Losses Value ---- ---------- ---------- ---------- ---------- Fixed maturities: U.S. Government and government agencies and authorities $ 70,479 $ 21,557 $ -- $ 92,036 States, municipalities and political subdivisions 573,588 26,906 125 600,369 Foreign governments 8,794 490 -- 9,284 All other corporate 4,545,335 121,556 201,223 4,465,668 ---------- ---------- ---------- ---------- Total fixed maturities $5,198,196 $ 170,509 $ 201,348 $5,167,357 ========== ========== ========== ==========
The amortized cost and estimated market value of fixed maturities available for sale at December 31, 2001, by contractual maturity, are shown below (in thousands). Actual maturities could differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. 12 2. Investment Information - (continued)
Estimated Amortized Market Cost Value ---------- ---------- Due in one year or less $ 319,090 $ 324,929 Due after one year through five years 1,751,608 1,769,951 Due after five years through ten years 1,736,707 1,728,834 Due after ten years 2,303,983 2,347,286 ---------- ---------- $6,111,388 $6,171,000 ========== ==========
(e) CMOs: CMOs are U.S. Government and Government agency backed and triple A-rated securities. CMOs are included in other corporate fixed maturities. At December 31, 2001 and 2000, the market value of the CMO portfolio was $1,085,543,000 and $775,942,000, respectively; the estimated amortized cost was approximately $1,067,915,000 in 2001 and $759,121,000 in 2000. The Company's CMO portfolio is readily marketable. There were no derivative (high risk) CMO securities contained in the portfolio at December 31, 2001. (f) Fixed Maturities Below Investment Grade: At December 31, 2001 and 2000, the fixed maturities held by the Company that were below investment grade had an aggregate amortized cost of $546,951,000 and $524,457,000, respectively, and an aggregate market value of $480,045,000 and $405,543,000, respectively. (g) Non-income Producing Assets: Non-income producing assets were insignificant. (h) Investments Greater than 10% Equity: The market value of investments in the following company exceeded 10% of the Company's total capital funds at December 31, 2001 (in thousands). Countrywide Home Loans $93,087 Tower Funding 86,055 Washington Mutual 69,920 3. Deferred Policy Acquisition Costs The following reflects the deferred policy acquisition costs (commissions, direct solicitation and other costs) which will be amortized against future income and the related current amortization charged to income, excluding certain amounts deferred and amortized in the same period (in thousands): Years ended December 31, ------------------------------------ 2001 2000 1999 -------- ----- ------- Balance at beginning of year $ 48,334 $46,655 $41,421 Acquisition costs deferred 6,896 7,986 9,166 Amortization charged to income (9,446) (6,307) (3,932) -------- ------- ------- Balance at end of year $ 45,784 $48,334 $46,655 ======== ======= ======= 4. Future Policy Benefits and Policyholder Contract Deposits (a) The analysis of the future policy benefits and policyholder contract deposits liabilities as at December 31, 2001 and 2000 follows (in thousands):
2001 2000 ---------- ---------- Future policy benefits: Long duration contracts $2,171,185 $1,963,603 Short duration contracts 31,527 26,427 ---------- ---------- $2,202,712 $1,990,030 ========== ========== Policyholder contract deposits: Annuities $3,517,347 $2,875,838 Guaranteed investment contracts (GICs) 533,379 653,004 Universal life 107,830 105,241 Corporate owned life insurance 29,294 27,717 Other investment contracts 22,674 13,672 ---------- ---------- $4,210,524 $3,675,472 ========== ==========
13 4. Future Policy Benefits and Policyholder Contract Deposits - (continued) (b) Long duration contract liabilities included in future policy benefits, as presented in the table above, result from traditional life and annuity products. Short duration contract liabilities are primarily accident and health products. The liability for future policy benefits has been established based upon the following assumptions: (i) Interest rates (exclusive of immediate/terminal funding annuities), which vary by year of issuance and products, range from 3.0 percent to 10.0 percent. Interest rates on immediate/terminal funding annuities are at a maximum of 12.2 percent and grade to not greater than 7.5 percent. (ii) Mortality and withdrawal rates are based upon actual experience modified to allow for variations in policy form. The weighted average lapse rate for individual life, including surrenders, approximated 1.5 percent. (c) The liability for policyholder contract deposits has been established based on the following assumptions: (i) Interest rates credited on deferred annuities vary by year of issuance and range from 4.0 percent to 8.0 percent. Credited interest rate guarantees are generally for a period of one year. Withdrawal charges generally range from 3.0 percent to 10.0 percent grading to zero over a period of 5 to 10 years. (ii) GICs have market value withdrawal provisions for any funds withdrawn other than benefit responsive payments. Interest rates credited generally range from 5.4 percent to 7.6 percent and maturities range from 3 to 7 years. (iii)Interest rates on corporate-owned life insurance business are guaranteed at 4.0 percent and the weighted average rate credited in 2001 was 6.2 percent. (iv) The universal life funds, exclusive of corporate-owned life insurance business, have credited interest rates of 5.0 percent to 6.7 percent and guarantees ranging from 4.0 percent to 5.5 percent depending on the year of issue. Additionally, universal life funds are subject to surrender charges that amount to 11.0 percent of the fund balance and grade to zero over a period not longer than 20 years. 5. Income Taxes (a) The Federal income tax rate applicable to ordinary income is 35% for 2001, 2000 and 1999. Actual tax expense on income from operations differs from the "expected" amount computed by applying the Federal income tax rate because of the following (in thousands except percentages):
Years ended December 31, ----------------------------------------------------------------- 2001 2000 1999 ------------------- ------------------ ------------------ Percent Percent Percent of of of pre-tax pre-tax pre-tax operating operating operating Amount Income Amount Income Amount Income ------------------- ------------------ ------------------ "Expected" income tax expense $46,365 35.0% $4,090 35.0% $30,974 35.0% State income tax 748 0.6 751 6.4 418 0.5 Other (533) (0.4) (302) (2.6) 225 0.3 ------- ---- ------ ---- ------- ---- Actual income tax expense $46,580 35.2% $4,539 38.8% $31,617 35.8% ======= ==== ====== ==== ======= ====
14 5. Income Taxes - (continued) (b) The components of the net deferred tax asset were as follows (in thousands):
Years ended December 31, ------------------------ 2001 2000 ------ ------ Deferred tax assets: Adjustments to mortgage loans and investment income due and accrued $11,214 $ 8,050 Adjustment to life policy reserves 24,250 39,200 Deferred policy acquisition costs 1,287 -- Fixed maturities premium 9,716 -- Other 2,110 129 ------- ------- 48,577 47,379 ------- ------- Deferred tax liabilities: Unrealized appreciation on investments $30,232 $19,357 Deferred policy acquisition costs -- 2,361 Fixed maturities discount -- 8,457 Other 5,386 4,792 ------- ------- 35,618 34,967 ------- ------- Net deferred tax asset $12,959 $12,412 ======= =======
(c) At December 31, 2001, accumulated earnings of the Company for Federal income tax purposes include approximately $2,879,000 of "Policyholders' Surplus" as defined under the Code. Under provisions of the Code, "Policyholders' Surplus" has not been currently taxed but would be taxed at current rates if distributed to the Parent. There is no present intention to make cash distributions from "Policyholders' Surplus" and accordingly, no provision has been made for taxes on this amount. (d) Income taxes paid in 2001, 2000, and 1999 amounted to $51,569,000, $3,413,000, and $28,174,000, respectively. 6. Commitments and Contingent Liabilities The Company, in common with the insurance industry in general, is subject to litigation, including claims for punitive damages, in the normal course of their business. The Company does not believe that such litigation will have a material effect on its operating results and financial condition. The Company is a limited partner in the Chardon/Hato Rey Partnership (Puerto Rico). The partnership agreement requires the Company to make an additional capital contribution of up to $3,000,000 to cover construction cost overruns or operating deficits. Construction was completed in 1992 and the building is currently fully leased and profitable; therefore, no demands are foreseen. 15 6. Commitments and Contingent Liabilities - (continued) During 1997, the Company entered into a partnership agreement with Private Equity Investors III, L.P. As of December 31, 2001, the Company's unused capital commitment was $955,000. Contributions totaling $24,090,000 have been made through December 31, 2001. During 1998, the Company entered into a partnership agreement with Sankaty High Yield Asset Partners, L.P. The agreement requires the Company to make capital contributions totaling $3,000,000. Contributions totaling $3,000,000 have been made through December 31, 2001. During 1999, the Company entered into a partnership agreement with G2 Opportunity Fund, LP. The agreement requires the Company to make capital contributions totaling $12,500,000. Contributions totaling $12,108,000 have been made through December 31, 2001. During 1999, the Company entered into a partnership agreement with Private Equity Investors IV, L.P. The agreement requires the Company to make capital contributions totaling $73,000,000. Contributions totaling $34,624,000 have been made through December 31, 2001. During 2000, the Company entered into a partnership agreement with G3 Strategic Investment L.P. The agreement requires the Company to make capital contributions totaling $12,500,000. Contributions totaling $7,037,000 have been made through December 31, 2001. 7. Fair Value of Financial Instruments (a) Statement of Financial Accounting Standards No. 107 "Disclosures about Fair Value of Financial Instruments" (FASB 107) requires disclosure of fair value information about financial instruments for which it is practicable to estimate such fair value. These financial instruments may or may not be recognized in the balance sheet. In the measurement of the fair value of certain of the financial instruments, quoted market prices were not available and other valuation techniques were utilized. These derived fair value estimates are significantly affected by the assumptions used. FASB 107 excludes certain financial instruments, including those related to insurance contracts. The following methods and assumptions were used by the Company in estimating the fair value of the financial instruments presented: Cash and short-term investments: The carrying amounts reported in the balance sheet for these instruments approximate fair value. Fixed maturities: Fair values for fixed maturity securities carried at market value are generally based upon quoted market prices. For certain fixed maturities for which market prices were not readily available, fair values were estimated using values obtained from independent pricing services. Equity securities: Fair values for equity securities were based upon quoted market prices. Mortgage and policy loans: Where practical, the fair values of loans on real estate were estimated using discounted cash flow calculations based upon the Company's current incremental lending rates for similar type loans. The fair values of policy loans were not calculated as the Company believes it would have to expend excessive costs for the benefits derived. Therefore, the fair value of policy loans was estimated at carrying value. Policyholder contract deposits: Fair values of policyholder contract deposits were estimated using discounted cash flow calculations based upon interest rates currently being offered for similar contracts consistent with those remaining for the contracts being valued. 16 7. Fair Value of Financial Instruments - (continued) (b) The fair value and carrying amounts of financial instruments is as follows (in thousands):
2001 ---- Fair Carrying Value Amount ---------- ---------- Cash and short-term investments $ 68,632 $ 68,632 Fixed maturities 6,171,000 6,171,000 Equity securities 22,556 22,556 Mortgage and policy loans 421,518 393,693 Policyholder contract deposits $4,479,142 $4,210,524 2000 ---- Fair Carrying Value Amount ---------- ---------- Cash and short-term investments $ 23,514 $ 23,514 Fixed maturities 5,167,357 5,167,357 Equity securities 54,505 54,505 Mortgage and policy loans 509,282 483,057 Policyholder contract deposits $3,769,539 $3,675,472
8. Capital Funds (a) The Company may not distribute dividends to the Parent without prior approval of regulatory agencies. Generally, this limits the payment of such dividends to an amount which, in the opinion of the regulatory agencies, is warranted by the financial condition of the Company. There were no dividends paid in 2001 and 1999. During 2000, the Company paid dividends of $20,000,000 to its stockholders. (b) The Company's capital funds, as determined in accordance with statutory accounting practices, were $338,699,000 at December 31, 2001 and $358,209,000 at December 31, 2000. Statutory net (loss) income amounted to $(19,238,000), $(3,668,000) and $66,418,000 for 2001, 2000 and 1999, respectively. These financial statements vary in certain respects from those prepared using statutory accounting practices prescribed and permitted by the New York Insurance Department. In 1998, the NAIC adopted the Codification of Statutory Accounting Principles ("Codification") guidance, which will replace the current Accounting Practices and Procedures manual as the NAIC's primary guidance on statutory accounting. Codification provides guidance for areas where statutory accounting has been silent and changes current statutory accounting in some areas, such as deferred income taxes. Effective December 31, 2000, the Company implemented the Codification guidelines, resulting in an increase of $65.2 million in statutory surplus. (c) Statement of Accounting Standards No. 130 "Comprehensive Income" (FASB 130) was adopted by the Company effective January 1, 1998. FASB 130 establishes standards for reporting comprehensive income and its components as part of capital funds. The reclassification 17 8. Capital Funds - (continued) adjustments with respect to available for sale securities were $28,954,000, $(60,266,000), and $(13,103,000) for December 31, 2001, 2000 and 1999, respectively. 9. Employee Benefits (a) The Company participates with its affiliates in a qualified, non-contributory, defined benefit pension plan which is administered by the Parent. All qualified employees who have attained age 21 and completed twelve months of continuous service are eligible to participate in this plan. An employee with 5 or more years of service is entitled to pension benefits beginning at normal retirement age 65. Benefits are based upon a percentage of average final compensation multiplied by years of credited service limited to 44 years of credited service. The average final compensation is subject to certain limitations. Annual funding requirements are determined based on the "projected unit credit" cost method which attributes a pro rata portion of the total projected benefit payable at normal retirement to each year of credited service. Pension expense for current service costs, retirement and termination benefits for the years ended December 31, 2001, 2000 and 1999 were approximately $4,000, $11,000 and $153,000, respectively. The Parent's plans do not separately identify projected benefit obligations and plan assets attributable to employees of participating affiliates. The plan assets exceeded the projected benefit obligations at December 31, 2001 by $101,000,000. The Parent has adopted a Supplemental Executive Retirement Program (Supplemental Plan) to provide additional retirement benefits to designated executives and key employees. Under the Supplemental Plan, the annual benefit, not to exceed 60 percent of average final compensation, accrues at a percentage of average final pay multiplied for each year of credited service reduced by any benefits from the current and any predecessor retirement plans, Social Security, if any, and from any qualified pension plan of prior employers. The Supplemental Plan also provides a benefit equal to the reduction in benefits payable under the AIG retirement plan as a result of Federal limitations on benefits payable thereunder. Currently, the Supplemental Plan is unfunded. (b) The Parent also sponsors a voluntary savings plan for domestic employees (a 401(k) plan), which during the three years ended December 31, 2001, provided for salary reduction contributions by employees and matching contributions by the Parent of up to 6 percent of annual salary depending on the employees' years of service. (c) On April 1, 1985, the Parent terminated and replaced its then existing U.S. pension plan, a contributory qualified defined benefit plan, with the current non-contributory qualified defined benefit plan. Settlement of the obligations of the prior plan was accomplished through the purchase of annuities from the Company for accrued benefits as of the date of termination. Future policy benefits reserves in the accompanying balance sheet that relate to these annuity contracts are $75,661,000 at December 31, 2001 and $77,027,000 at December 31, 2000. (d) In addition to the Parent's defined benefit pension plan, the Parent and its subsidiaries provide a post-retirement benefit program for medical care and life insurance. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and reaching a specified age. (e) The Parent applies APB Opinion 25 "Accounting for Stock issued to Employees" and related interpretations in accounting for its stock-based compensation plans. Employees of the Company participate in certain stock option and stock purchase plans of the Parent. In general, under the stock option plan, officers and other key employees are granted options to purchase AIG common stock at a price not less 18 9. Employee Benefits - (continued) than fair market value at the date of grant. In general, the stock purchase plan provides for eligible employees to receive privileges to purchase AIG common stock at a price equal to 85% of the fair market value on the date of grant of the purchase privilege. The Parent has not recognized compensation costs for either plan. The effect of the compensation costs, as determined consistent with FASB 123, was not computed on a subsidiary basis, but rather on a consolidated basis for all subsidiaries of the Parent and, therefore, are not presented herein. 10. Leases (a) The Company occupies leased space in many locations under various long-term leases and has entered into various leases covering the long-term use of data processing equipment. At December 31, 2001, the future minimum lease payments under operating leases were as follows: Year Payments ---- -------- 2002 $1,264 2003 1,129 2004 619 2005 342 2006 -- Later Years -- ------ Total $3,354 ====== Rent expense approximated $1,427,000, $1,644,000 and $1,667,000 for the years ended December 31, 2001, 2000 and 1999, respectively. 11. Reinsurance (a) The Company reinsures portions of its life and accident and health insurance risks with unaffiliated companies. Life insurance risks are reinsured primarily under coinsurance and yearly renewable term treaties. Accident and health insurance risks are reinsured primarily under coinsurance, excess of loss and quota share treaties. Amounts recoverable from reinsurers are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of reinsurance assets. A contingent liability exists with respect to reinsurance ceded to the extent that any reinsurer is unable to meet the obligations assumed under the reinsurance agreements. The Company also reinsures portions of its life and accident and health insurance risks with affiliated companies (see Note 12). The effect of all reinsurance contracts, including reinsurance assumed, is as follows (in thousands, except percentages):
December 31, 2001 Percentage ----------------- of Amount Assumed Gross Ceded Assumed Net to Net ----- ----- ------- --- ------------ Life Insurance in Force $38,290,767 $20,815,247 $21,274,270 $38,749,790 54.9% =========== =========== =========== =========== Premiums: Life 110,567 3,291 1,297 108,573 1.2% Accident and Health 27,368 13,050 25,370 39,688 63.9% Annuity 355,299 -- -- 355,299 -- ----------- ----------- ----------- ----------- Total Premiums $ 493,234 $ 16,341 $ 26,667 $ 503,560 5.3% =========== =========== =========== ===========
19 11. Reinsurance - (continued)
December 31, 2000 Percentage ----------------- of Amount Assumed Gross Ceded Assumed Net to Net ----- ----- ------- --- ------------ Life Insurance in Force $35,128,181 $25,210,909 $25,384,029 $35,301,301 71.9% =========== =========== =========== =========== Premiums: Life 105,500 3,147 764 103,117 0.7% Accident and Health 22,832 10,655 29,278 41,455 70.6% Annuity 91,602 -- -- 91,602 -- ----------- ----------- ----------- ----------- Total Premiums $ 219,934 $ 13,802 $ 30,042 $ 236,174 12.7% =========== =========== =========== =========== December 31, 1999 Percentage ----------------- of Amount Assumed Gross Ceded Assumed Net to Net ----- ----- ------- --- ------------ Life Insurance in Force $32,831,967 $ 604,100 $ 2,573 $32,230,440 -- =========== =========== =========== =========== Premiums: Life 98,471 2,925 64 95,610 0.7% Accident and Health 18,940 8,431 31,393 41,902 74.9% Annuity 51,936 -- -- 51,936 -- ----------- ----------- ----------- ----------- Total Premiums $ 169,347 $ 11,356 $ 31,457 $ 189,448 16.6% =========== =========== =========== ===========
(b) The maximum amount retained on any one life by the Company is $1,000,000. (c) Reinsurance recoveries, which reduced death and other benefits, approximated $137,984,000, $19,191,000 and $287,073,000 respectively, for the years ended December 31, 2001, 2000 and 1999. The Company's reinsurance arrangements do not relieve it from its direct obligation to its insureds. 12. Transactions with Related Parties (a) The Company is party to several reinsurance agreements with its affiliates covering certain life and accident and health insurance risks. Premium income and commission ceded to affiliates amounted to $448,000 and $1,000, respectively, for the year ended December 31, 2001. Premium income and commission ceded for 2000 amounted to $539,000 and $0, respectively. Premium income and commission ceded for 20 12. Transactions with Related Parties - (continued) 1999 amounted to $277,263,000 and $0, respectively. Premium income and ceding commission expense assumed from affiliates aggregated $23,842,000 and $1,745,000, respectively, for 2001, compared to $24,434,000 and $691,000, respectively, for 2000, and $25,496,000 and $88,000, respectively, for 1999. (b) The Company provides life insurance coverage to employees of the Parent and its domestic subsidiaries in connection with the Parent's employee benefit plans. The statement of income includes $6,056,000 in premiums relating to this business for 2001, $5,715,000 for 2000, and $5,366,000 for 1999. (c) The Company is party to several cost sharing agreements with its affiliates. Generally, these agreements provide for the allocation of costs upon either the specific identification basis or a proportional cost allocation basis which management believes to be reasonable. For the years ended December 31, 2001, 2000 and 1999, the Company was charged $29,063,000, $32,138,000 and $27,700,000, respectively, for expenses attributed to the Company but incurred by affiliates. During the same period, the Company received reimbursements from affiliates aggregating $34,536,000, $36,462,000 and $32,219,000, respectively, for costs incurred by the Company but attributable to affiliates. (d) During 1999, the Company entered into a reinsurance treaty with Lexington Insurance Company whereby the Company ceded a block of Ordinary Life business and transferred cash and securities valued at $276,917,000. 13. Restructuring Charges In connection with the Parent's merger with America General during 2001, the Company has incurred $3.5 million in restructuring costs. These costs have been paid as of December 31, 2001. 14. Subsequent events Effective January 1, 2002, the Company transferred a block of Group A&H business to National Union Fire Insurance Company of the Domestic Brokerage Group, an affiliated insurer. Written premium on this block was approximately $15.7 million as of December 31, 2001. REPORT OF INDEPENDENT ACCOUNTANTS To the Contract Holders of American International Life Assurance Company of New York Variable Account A In our opinion, the accompanying statements of assets and liabilities of American International Life Assurance Company of New York Variable Account A (comprising eighty-three subaccounts, hereafter collectively referred to as "Variable Account A") and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of Variable Account A at December 31, 2001, the results of its operations for the year then ended and the changes in its net assets for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of Variable Account A's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2001 by correspondence with the custodians, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP March 15, 2002 AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2001 ================================================================================
ASSETS: Investments at Market Value: Shares Cost Market Value -------------- ------------ ------------ AIM Capital Appreciation Fund ................................ 21,881.711 $ 676,032 $ 475,271 International Equity Fund ................................ 14,820.390 340,238 220,972 Alliance Bernstein International Value Portfolio .................. 7,469.629 71,483 73,725 Bernstein Real Estate Investment Portfolio ............... 236,013.293 2,429,295 2,714,154 Bernstein Small Cap Value Portfolio ...................... 101,511.463 1,081,547 1,134,898 Bernstein Utility Income Portfolio ....................... 366,268.847 7,282,694 6,160,642 Bernstein Value Portfolio ................................ 210,889.367 2,080,453 2,123,656 Global Bond Portfolio .................................... 104,608.203 1,170,885 1,143,353 Global Dollar Government Portfolio ....................... 186,234.947 1,944,301 1,979,677 Growth Portfolio ......................................... 1,905,088.876 45,676,408 31,269,937 Growth & Income Portfolio ................................ 2,865,717.391 62,297,209 63,481,274 High Yield Portfolio ..................................... 243,963.992 2,002,272 1,832,170 International Portfolio .................................. 569,750.906 9,614,962 6,660,388 Money Market Portfolio ................................... 20,925,974.000 20,925,974 20,925,974 North American Government Income Portfolio ............... 477,779.545 5,979,635 5,814,577 Premier Growth Portfolio ................................. 2,123,788.652 68,522,878 53,418,160 Quasar Portfolio ......................................... 787,104.344 9,367,792 7,878,947 Technology Portfolio ..................................... 1,737,740.102 51,261,934 29,952,674 Total Return Portfolio ................................... 898,987.245 16,034,294 15,867,125 U.S. Government/High Grade Securities Portfolio .......... 775,831.639 9,092,981 9,309,207 Worldwide Privatization Portfolio ........................ 428,386.572 7,449,259 5,217,750 Brinson Tactical Allocation Portfolio ............................ 46,873.152 740,746 596,695 Dreyfus Small Company Stock Portfolio ............................ 12,903.172 224,652 229,547 Stock Index Fund ......................................... 99,521.842 3,260,004 2,921,961 Fidelity Asset Manager Portfolio .................................. 75,843.675 1,237,902 1,100,492 Contrafund Portfolio ..................................... 30,049.081 744,309 604,888 Growth Portfolio ......................................... 99,692.796 4,415,495 3,350,724 High Income Portfolio .................................... 47,754.634 511,493 306,107 Investment Grade Bond Portfolio .......................... 48,750.721 602,522 629,859 Money Market Portfolio ................................... 3,287,656.000 3,287,656 3,287,656 Overseas Portfolio ....................................... 10,844.622 201,130 150,544 Mercury HW International VIP Portfolio .............................. 1,995.935 22,466 19,341 Merrill Lynch Basic Value Focus Fund ................................... 5,909.955 79,094 79,607 Core Bond Focus Fund ..................................... 5,763.020 64,180 66,793 Developing Capital Markets Fund .......................... 972.543 9,739 7,158 Global Allocation Focus Fund ............................. 3,912.272 52,330 38,106 Global Growth Focus Fund ................................. 1,100.661 12,795 9,807 High Current Income Fund ................................. 3,775.298 35,464 28,428 Large Cap Core Focus Fund ................................ 493.942 16,979 11,618 Van Eck Worldwide Emerging Markets Fund .......................... 1,710.617 17,864 13,924 Worldwide Hard Assets Fund ............................... 749.811 9,124 8,015 ------------ ------------ Total Investments ........................................ $340,848,472 $281,115,803 Total Assets .......................................... $281,115,803 ============ NET ASSETS ATTRIBUTABLE TO VARIABLE ANNUITY CONTRACT HOLDERS: Accumulation Reserves .................................... $280,831,495 Annuity Reserves ......................................... 284,308 ------------ $281,115,803 ============ See Accompanying Notes to Financial Statements
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A STATEMENT OF OPERATIONS For The Years Ended December 31, 2001 and December 31, 2000
2001 AIM AIM ---- Capital International Appreciation Equity Total Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 23,400,253 $ 38,297 $ 6,567 Expenses: Mortality & Expense Risk Fees ................. 4,030,122 7,079 2,912 Daily Administrative Charges .................. 481,816 850 349 -------------- -------------- -------------- Net Investment Income (Loss) .................... 18,888,315 30,368 3,306 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 4,026,607 11,567 (36,275) Change in Unrealized Appreciation (Depreciation) .............................. (72,614,562) (215,038) (33,106) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (68,587,955) (203,471) (69,381) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (49,699,640) $ (173,103) $ (66,075) ============== ============== ============== Alliance Alliance Alliance Bernstein Bernstein Bernstein Real Small International Estate Cap Value Investment Value Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 0 $ 91,823 $ 0 Expenses: Mortality & Expense Risk Fees ................. 131 32,795 2,812 Daily Administrative Charges .................. 16 3,908 337 -------------- -------------- -------------- Net Investment Income (Loss) .................... (147) 55,120 (3,149) -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (44) (38,651) (10,643) Change in Unrealized Appreciation (Depreciation) .............................. 2,242 217,913 53,351 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 2,198 179,262 42,708 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 2,051 $ 234,382 $ 39,559 ============== ============== ==============
Alliance Bernstein Alliance Alliance Utility Bernstein Conservative Income Value Investors Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 389,655 $ 0 $ 1,117,324 Expenses: Mortality & Expense Risk Fees ................. 105,754 4,256 11,793 Daily Administrative Charges .................. 12,685 511 1,415 -------------- -------------- -------------- Net Investment Income (Loss) .................... 271,216 (4,767) 1,104,116 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 502,669 (622) (1,324,266) Change in Unrealized Appreciation (Depreciation) .............................. (3,078,934) 43,203 174,129 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (2,576,265) 42,581 (1,150,137) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (2,305,049) $ 37,814 $ (46,021) ============== ============== ============== Alliance Alliance Global Global Dollar Alliance Bond Government Growth Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 0 $ 222,591 $ 5,974,703 Expenses: Mortality & Expense Risk Fees ................. 17,813 26,237 486,034 Daily Administrative Charges .................. 2,137 3,148 58,257 -------------- -------------- -------------- Net Investment Income (Loss) .................... (19,950) 193,206 5,430,412 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (18,492) (187,137) 522,279 Change in Unrealized Appreciation (Depreciation) .............................. 12,147 144,401 (18,309,643) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (6,345) (42,736) (17,787,364) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (26,295) $ 150,470 $ (12,356,952) ============== ============== ==============
Alliance Growth Alliance Alliance & Growth High Income Investors Yield Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,473,140 $ 685,023 $ 167,743 Expenses: Mortality & Expense Risk Fees ................. 869,685 4,628 26,642 Daily Administrative Charges .................. 103,384 555 3,200 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,500,071 679,840 137,901 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 2,007,383 (1,087,257) (237,493) Change in Unrealized Appreciation (Depreciation) .............................. (5,573,508) 351,883 134,413 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (3,566,125) (735,374) (103,080) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (1,066,054) $ (55,534) $ 34,821 ============== ============== ============== Alliance North Alliance American Alliance Money Government International Market Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 480,964 $ 632,149 $ 584,370 Expenses: Mortality & Expense Risk Fees ................. 99,115 238,182 100,542 Daily Administrative Charges .................. 11,827 28,514 12,041 -------------- -------------- -------------- Net Investment Income (Loss) .................... 370,022 365,453 471,787 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (504,151) 0 72,977 Change in Unrealized Appreciation (Depreciation) .............................. (2,235,651) 0 (353,181) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (2,739,802) 0 (280,204) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (2,369,780) $ 365,453 $ 191,583 ============== ============== ==============
Alliance Alliance Premier Alliance Short-Term Growth Quasar Multi-Market Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,672,372 $ 295,330 $ 111,272 Expenses: Mortality & Expense Risk Fees ................. 819,199 109,616 781 Daily Administrative Charges .................. 97,861 13,141 92 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,755,312 172,573 110,399 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 4,114,704 (233,660) (123,152) Change in Unrealized Appreciation (Depreciation) .............................. (22,035,571) (1,473,224) 14,190 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (17,920,867) (1,706,884) (108,962) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (15,165,555) $ (1,534,311) $ 1,437 ============== ============== ============== Alliance US Government/ Alliance High Alliance Total Grade Technology Return Securities Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,075,384 $ 853,830 $ 347,982 Expenses: Mortality & Expense Risk Fees ................. 460,484 226,374 109,083 Daily Administrative Charges .................. 55,241 27,107 13,070 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,559,659 600,349 225,829 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 783,080 170,087 87,713 Change in Unrealized Appreciation (Depreciation) .............................. (16,204,643) (779,810) 209,759 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (15,421,563) (609,723) 297,472 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (12,861,904) $ (9,374) $ 523,301 ============== ============== ==============
Alliance Brinson Worldwide Brinson Global Privatization Balanced Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 425,883 $ 9,854 $ 0 Expenses: Mortality & Expense Risk Fees ................. 87,279 425 268 Daily Administrative Charges .................. 10,474 51 36 -------------- -------------- -------------- Net Investment Income (Loss) .................... 328,130 9,378 (304) -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (385,185) (11,869) 651 Change in Unrealized Appreciation (Depreciation) .............................. (1,505,458) 3,701 (498) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (1,890,643) (8,168) 153 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (1,562,513) $ 1,210 $ (151) ============== ============== ============== Brinson Brinson Growth Brinson High & Tactical Income Income Allocation Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 4,099 $ 7,698 $ 49,679 Expenses: Mortality & Expense Risk Fees ................. 566 293 7,859 Daily Administrative Charges .................. 68 32 942 -------------- -------------- -------------- Net Investment Income (Loss) .................... 3,465 7,373 40,878 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (25,850) (8,704) (5,691) Change in Unrealized Appreciation (Depreciation) .............................. 17,979 455 (135,525) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (7,871) (8,249) (141,216) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (4,406) $ (876) $ (100,338) ============== ============== ==============
Dreyfus Small Dreyfus Fidelity Company Stock Asset Stock Index Manager Portfolio Fund Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 211 $ 50,841 $ 60,256 Expenses: Mortality & Expense Risk Fees ................. 3,589 41,458 13,029 Daily Administrative Charges .................. 431 4,973 1,563 -------------- -------------- -------------- Net Investment Income (Loss) .................... (3,809) 4,410 45,664 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 11,929 93,196 (25,050) Change in Unrealized Appreciation (Depreciation) .............................. (26,611) (619,823) (80,159) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (14,682) (526,627) (105,209) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (18,491) $ (522,217) $ (59,545) ============== ============== ============== Fidelity Fidelity Fidelity High Contrafund Growth Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 26,124 $ 304,782 $ 43,970 Expenses: Mortality & Expense Risk Fees ................. 9,011 47,551 4,193 Daily Administrative Charges .................. 1,081 5,706 503 -------------- -------------- -------------- Net Investment Income (Loss) .................... 16,032 251,525 39,274 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (18,986) (19,076) (26,849) Change in Unrealized Appreciation (Depreciation) .............................. (108,018) (1,119,505) (57,119) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (127,004) (1,138,581) (83,968) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (110,972) $ (887,056) $ (44,694) ============== ============== ==============
Fidelity Investment Fidelity Grade Money Fidelity Bond Market Overseas Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 30,525 $ 128,013 $ 23,889 Expenses: Mortality & Expense Risk Fees ................. 7,387 39,327 2,157 Daily Administrative Charges .................. 886 4,710 259 -------------- -------------- -------------- Net Investment Income (Loss) .................... 22,252 83,976 21,473 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 2,395 0 (16,955) Change in Unrealized Appreciation (Depreciation) .............................. 14,014 0 (50,187) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 16,409 0 (67,142) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 38,661 $ 83,976 $ (45,669) ============== ============== ============== Merrill Merrill Mercury Lynch Lynch HW Basic Core International Value Bond VIP Focus Focus Portfolio Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 904 $ 4,675 $ 3,737 Expenses: Mortality & Expense Risk Fees ................. 170 976 839 Daily Administrative Charges .................. 21 117 101 -------------- -------------- -------------- Net Investment Income (Loss) .................... 713 3,582 2,797 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (18) (40) 97 Change in Unrealized Appreciation (Depreciation) .............................. (3,125) (1,375) 472 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (3,143) (1,415) 569 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (2,430) $ 2,167 $ 3,366 ============== ============== ==============
Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Allocation Growth Markets Focus Focus Fund Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 66 $ 574 $ 104 Expenses: Mortality & Expense Risk Fees ................. 87 487 135 Daily Administrative Charges .................. 10 58 16 -------------- -------------- -------------- Net Investment Income (Loss) .................... (31) 29 (47) -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................. (42) (229) (31) Change in Unrealized Appreciation (Depreciation) ............................ 78 (4,100) (3,040) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 36 (4,329) (3,071) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 5 $ (4,300) $ (3,118) ============== ============== ============== Merrill Merrill Merrill Lynch Lynch Lynch Large High International Cap Current Equity Core Income Focus Focus Fund Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,092 $ 348 $ 97 Expenses: Mortality & Expense Risk Fees ................. 364 92 146 Daily Administrative Charges .................. 44 11 18 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,684 245 (67) -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (86) (6,681) (104) Change in Unrealized Appreciation (Depreciation) .............................. (1,887) 4,248 (936) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (1,973) (2,433) (1,040) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 711 $ (2,188) $ (1,107) ============== ============== ==============
Van Eck Van Eck Worldwide Worldwide Emerging Hard Markets Assets Fund Fund -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 0 $ 313 Expenses: Mortality & Expense Risk Fees ................. 164 323 Daily Administrative Charges .................. 20 39 -------------- -------------- Net Investment Income (Loss) .................... (184) (49) -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (104) (727) Change in Unrealized Appreciation (Depreciation) .............................. (365) (3,100) -------------- -------------- Net Gain (Loss) on Investments ................ (469) (3,827) -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (653) $ (3,876) ============== ============== See Accompanying Notes to Financial Statements
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A STATEMENT OF OPERATIONS For The Years Ended December 31, 2001 and December 31, 2000
2000 AIM AIM ---- Capital International Appreciation Equity Total Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 29,527,656 $ 20,323 $ 18,747 Expenses: Mortality & Expense Risk Fees ................. 5,196,461 8,857 4,367 Daily Administrative Charges .................. 621,689 1,063 524 -------------- -------------- -------------- Net Investment Income (Loss) .................... 23,709,506 10,403 13,856 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................. 26,127,052 23,711 49,252 Change in Unrealized Appreciation (Depreciation) ............................ (91,727,883) (154,590) (172,381) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (65,600,831) (130,879) (123,129) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (41,891,325) $ (120,476) $ (109,273) ============== ============== ============== Alliance Alliance Alliance Growth Money Premier & Market Growth Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 822,550 $ 5,250,250 $ 5,002,545 Expenses: Mortality & Expense Risk Fees ................. 178,354 1,227,332 872,059 Daily Administrative Charges .................. 21,402 146,646 103,687 -------------- -------------- -------------- Net Investment Income (Loss) .................... 622,794 3,876,272 4,026,799 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................. 0 9,046,764 3,532,170 Change in Unrealized Appreciation (Depreciation) ............................ 0 (31,124,910) 484,498 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 0 (22,078,146) 4,016,668 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 622,794 $ (18,201,874) $ 8,043,467 ============== ============== ==============
Alliance Alliance Alliance Short-Term Global International Multi-Market Bond Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 1,109,755 $ 42,716 $ 69,018 Expenses: Mortality & Expense Risk Fees ................. 155,426 6,179 22,005 Daily Administrative Charges .................. 18,536 732 2,639 -------------- -------------- -------------- Net Investment Income (Loss) .................... 935,793 35,805 44,374 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 479,036 (12,178) (32,539) Change in Unrealized Appreciation (Depreciation) .............................. (4,304,338) (10,871) (29,507) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (3,825,302) (23,049) (62,046) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (2,889,509) $ 12,756 $ (17,672) ============== ============== ============== Alliance US Alliance Government/ Alliance North High Global American Grade Dollar Government Securities Government Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 467,130 $ 224,873 $ 679,058 Expenses: Mortality & Expense Risk Fees ................. 97,551 22,980 94,598 Daily Administrative Charges .................. 11,697 2,759 11,357 -------------- -------------- -------------- Net Investment Income (Loss) .................... 357,882 199,134 573,103 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (112,815) (111,766) (51,457) Change in Unrealized Appreciation (Depreciation) .............................. 461,801 128,085 269,485 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 348,986 16,319 218,028 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 706,868 $ 215,453 $ 791,131 ============== ============== ==============
Alliance Alliance Alliance Utility Conservative Growth Income Investors Investors Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 547,928 $ 864,114 $ 634,533 Expenses: Mortality & Expense Risk Fees ................. 109,892 83,649 34,240 Daily Administrative Charges .................. 13,189 10,043 4,111 -------------- -------------- -------------- Net Investment Income (Loss) .................... 424,847 770,422 596,182 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 357,414 121,210 12,209 Change in Unrealized Appreciation (Depreciation) .............................. 63,353 (597,694) (706,399) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 420,767 (476,484) (694,190) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 845,614 $ 293,938 $ (98,008) ============== ============== ============== Alliance Alliance Alliance Total Worldwide Growth Return Privatization Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 6,400,948 $ 914,440 $ 827,067 Expenses: Mortality & Expense Risk Fees ................. 787,904 134,810 148,824 Daily Administrative Charges .................. 94,365 16,131 17,868 -------------- -------------- -------------- Net Investment Income (Loss) .................... 5,518,679 763,499 660,375 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 4,419,368 351,624 564,242 Change in Unrealized Appreciation (Depreciation) .............................. (22,202,339) 120,531 (4,468,051) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (17,782,971) 472,155 (3,903,809) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (12,264,292) $ 1,235,654 $ (3,243,434) ============== ============== ==============
Alliance Real Alliance Alliance Estate Technology Quasar Investment Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,802,021 $ 349,464 $ 85,105 Expenses: Mortality & Expense Risk Fees ................. 794,434 142,466 25,240 Daily Administrative Charges .................. 95,376 17,104 3,013 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,912,211 189,894 56,852 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 6,809,669 442,303 (67,962) Change in Unrealized Appreciation (Depreciation) .............................. (25,513,026) (1,549,304) 454,269 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (18,703,357) (1,107,001) 386,307 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (15,791,146) $ (917,107) $ 443,159 ============== ============== ============== Dreyfus Alliance Dreyfus Zero High Stock Coupon Yield Index 2000 Portfolio Fund Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 206,891 $ 102,632 $ 1,991 Expenses: Mortality & Expense Risk Fees ................. 29,579 50,519 475 Daily Administrative Charges .................. 3,551 6,065 57 -------------- -------------- -------------- Net Investment Income (Loss) .................... 173,761 46,048 1,459 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (103,468) 135,817 (546) Change in Unrealized Appreciation (Depreciation) .............................. (206,424) (635,787) 688 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (309,892) (499,970) 142 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (136,131) $ (453,922) $ 1,601 ============== ============== ==============
Dreyfus Small Fidelity Fidelity Company Money Asset Stock Market Manager Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 487 $ 187,330 $ 144,449 Expenses: Mortality & Expense Risk Fees ................. 3,607 38,156 16,077 Daily Administrative Charges .................. 433 4,581 1,930 -------------- -------------- -------------- Net Investment Income (Loss) .................... (3,553) 144,593 126,442 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 8,557 0 (8,533) Change in Unrealized Appreciation (Depreciation) .............................. 9,411 0 (181,745) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 17,968 0 (190,278) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 14,415 $ 144,593 $ (63,836) ============== ============== ============== Fidelity Fidelity Investment Fidelity High Grade Growth Income Bond Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 510,369 $ 41,596 $ 40,119 Expenses: Mortality & Expense Risk Fees ................. 64,950 6,799 7,370 Daily Administrative Charges .................. 7,798 816 885 -------------- -------------- -------------- Net Investment Income (Loss) .................... 437,621 33,981 31,864 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 270,409 (66,987) (3,339) Change in Unrealized Appreciation (Depreciation) .............................. (1,428,250) (99,416) 25,208 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (1,157,841) (166,403) 21,869 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (720,220) $ (132,422) $ 53,733 ============== ============== ==============
Merrill Lynch Basic Fidelity Fidelity Value Overseas Contrafund Focus Portfolio Portfolio Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 31,500 $ 75,260 $ 7,969 Expenses: Mortality & Expense Risk Fees ................. 3,603 8,947 892 Daily Administrative Charges .................. 433 1,074 107 -------------- -------------- -------------- Net Investment Income (Loss) .................... 27,464 65,239 6,970 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 23,051 23,239 (17) Change in Unrealized Appreciation (Depreciation) .............................. (116,985) (147,655) 790 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (93,934) (124,416) 773 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (66,470) $ (59,177) $ 7,743 ============== ============== ============== Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Growth Strategy Markets Focus Focus Fund Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 69 $ 913 $ 6,475 Expenses: Mortality & Expense Risk Fees ................. 116 187 571 Daily Administrative Charges .................. 14 22 69 -------------- -------------- -------------- Net Investment Income (Loss) .................... (61) 704 5,835 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (9) 44 (14) Change in Unrealized Appreciation (Depreciation) .............................. (2,955) (3,245) (11,002) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (2,964) (3,201) (11,016) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (3,025) $ (2,497) $ (5,181) ============== ============== ==============
Merrill Merrill Lynch Lynch Merrill High International Lynch Current Equity Prime Income Focus Bond Fund Fund Fund -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 2,945 $ 1,467 $ 3,610 Expenses: Mortality & Expense Risk Fees ................. 367 334 686 Daily Administrative Charges .................. 44 40 82 -------------- -------------- -------------- Net Investment Income (Loss) .................... 2,534 1,093 2,842 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (30) 54 (7) Change in Unrealized Appreciation (Depreciation) .............................. (5,039) (6,566) 2,422 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (5,069) (6,512) 2,415 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (2,535) $ (5,419) $ 5,257 ============== ============== ============== Merrill Mitchell Lynch Mitchell Hutchins Quality Hutchins Global Equity Balanced Income Fund Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 3,824 $ 5,459 $ 862 Expenses: Mortality & Expense Risk Fees ................. 178 463 344 Daily Administrative Charges .................. 21 56 41 -------------- -------------- -------------- Net Investment Income (Loss) .................... 3,625 4,940 477 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 10 (174) (86) Change in Unrealized Appreciation (Depreciation) .............................. (5,224) (5,016) 547 -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (5,214) (5,190) 461 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (1,589) $ (250) $ 938 ============== ============== ==============
Mitchell Mitchell Hutchins Mitchell Hutchins Growth Hutchins High & Tactical Income Income Allocation Portfolio Portfolio Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 6,260 $ 1,224 $ 11,236 Expenses: Mortality & Expense Risk Fees ................. 651 224 6,841 Daily Administrative Charges .................. 78 27 820 -------------- -------------- -------------- Net Investment Income (Loss) .................... 5,531 973 3,575 -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... (677) 19 2,095 Change in Unrealized Appreciation (Depreciation) .............................. (14,317) (1,749) (23,221) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ (14,994) (1,730) (21,126) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ (9,463) $ (757) $ (17,551) ============== ============== ============== Van Eck Van Eck WP&G Worldwide Worldwide Tomorrow Hard Emerging Short Assets Markets Term Fund Fund Portfolio -------------- -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 134 $ 0 $ 0 Expenses: Mortality & Expense Risk Fees ................. 258 208 1,877 Daily Administrative Charges .................. 31 25 225 -------------- -------------- -------------- Net Investment Income (Loss) .................... (155) (233) (2,102) -------------- -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 530 213 12,310 Change in Unrealized Appreciation (Depreciation) .............................. 1,476 (7,886) (5,040) -------------- -------------- -------------- Net Gain (Loss) on Investments ................ 2,006 (7,673) 7,270 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 1,851 $ (7,906) $ 5,168 ============== ============== ==============
WP&G WP&G Tomorrow Tomorrow Medium Long Term Term Portfolio Portfolio -------------- -------------- Investment Income (Loss): Dividends ..................................... $ 0 $ 0 Expenses: Mortality & Expense Risk Fees ................. 789 226 Daily Administrative Charges .................. 95 27 -------------- -------------- Net Investment Income (Loss) .................... (884) (253) -------------- -------------- Realized & Unrealized Gain (Loss) on Investments: Realized Gain (Loss) on Investment Activity .................................... 10,740 3,596 Change in Unrealized Appreciation (Depreciation) .............................. (6,967) (2,548) -------------- -------------- Net Gain (Loss) on Investments ................ 3,773 1,048 -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ..................... $ 2,889 $ 795 ============== ============== See Accompanying Notes to Financial Statements
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A STATEMENT OF CHANGES IN NET ASSETS For The Years Ended December 31, 2001 and December 31, 2000
2001 ---- AIM AIM Capital International Appreciation Equity Total Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 18,888,315 $ 30,368 $ 3,306 Realized Gain (Loss) on Investment Activity ... 4,026,607 11,567 (36,275) Change in Unrealized Appreciation (Depreciation) of Investments ............... (72,614,562) (215,038) (33,106) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (49,699,640) (173,103) (66,075) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 22,641,256 29,936 21,358 Administrative Charges ........................ (193,974) (552) (406) Transfers ..................................... 1,802,181 (41,000) 8,780 Contract Withdrawals .......................... (61,862,211) (34,348) (19,521) Deferred Sales Charges ........................ (958,261) (1,222) (332) Death Benefits ................................ (1,955,570) 0 0 Annuity Payments .............................. (75,946) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (40,602,525) (47,186) 9,879 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (90,302,165) (220,289) (56,196) Net Assets, at Beginning of Year ................ 371,417,968 695,560 277,168 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 281,115,803 $ 475,271 $ 220,972 ============== ============== ============== Alliance Alliance Alliance Bernstein Bernstein Bernstein Real Small International Estate Cap Value Investment Value Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (147) $ 55,120 $ (3,149) Realized Gain (Loss) on Investment Activity ... (44) (38,651) (10,643) Change in Unrealized Appreciation (Depreciation) of Investments ............... 2,242 217,913 53,351 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 2,051 234,382 39,559 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 67,356 301,686 307,607 Administrative Charges ........................ (5) (1,193) (137) Transfers ..................................... 4,323 179,541 803,582 Contract Withdrawals .......................... 0 (466,564) (15,713) Deferred Sales Charges ........................ 0 (11,079) 0 Death Benefits ................................ 0 (2,370) 0 Annuity Payments .............................. 0 (223) 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 71,674 (202) 1,095,339 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 73,725 234,180 1,134,898 Net Assets, at Beginning of Year ................ 0 2,479,974 0 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 73,725 $ 2,714,154 $ 1,134,898 ============== ============== ==============
Alliance Bernstein Alliance Alliance Utility Bernstein Conservative Income Value Investors Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 271,216 $ (4,767) $ 1,104,116 Realized Gain (Loss) on Investment Activity ... 502,669 (622) (1,324,266) Change in Unrealized Appreciation (Depreciation) of Investments ............... (3,078,934) 43,203 174,129 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (2,305,049) 37,814 (46,021) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 1,309,671 528,330 0 Administrative Charges ........................ (3,873) (322) (220) Transfers ..................................... (415,462) 1,580,428 (6,200,862) Contract Withdrawals .......................... (1,884,331) (22,578) (16,460) Deferred Sales Charges ........................ (15,931) (16) (98) Death Benefits ................................ (78,820) 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (1,088,746) 2,085,842 (6,217,640) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (3,393,795) 2,123,656 (6,263,661) Net Assets, at Beginning of Year ................ 9,554,437 0 6,263,661 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 6,160,642 $ 2,123,656 $ 0 ============== ============== ============== Alliance Alliance Global Global Dollar Alliance Bond Government Growth Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (19,950) $ 193,206 $ 5,430,412 Realized Gain (Loss) on Investment Activity ... (18,492) (187,137) 522,279 Change in Unrealized Appreciation (Depreciation) of Investments ............... 12,147 144,401 (18,309,643) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (26,295) 150,470 (12,356,952) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 53,105 52,049 1,718,385 Administrative Charges ........................ (616) (1,003) (24,436) Transfers ..................................... (47,246) 18,336 (2,500,227) Contract Withdrawals .......................... (437,053) (158,365) (6,983,635) Deferred Sales Charges ........................ (4,549) (1,456) (87,157) Death Benefits ................................ (15,144) (30,378) (225,270) Annuity Payments .............................. (397) 0 (6,934) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (451,900) (120,817) (8,109,274) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (478,195) 29,653 (20,466,226) Net Assets, at Beginning of Year ................ 1,621,548 1,950,024 51,736,163 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 1,143,353 $ 1,979,677 $ 31,269,937 ============== ============== ==============
Alliance Growth Alliance Alliance & Growth High Income Investors Yield Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,500,071 $ 679,840 $ 137,901 Realized Gain (Loss) on Investment Activity ... 2,007,383 (1,087,257) (237,493) Change in Unrealized Appreciation (Depreciation) of Investments ............... (5,573,508) 351,883 134,413 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (1,066,054) (55,534) 34,821 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 3,607,041 0 327,691 Administrative Charges ........................ (39,302) (132) (1,214) Transfers ..................................... 1,528,497 (2,382,286) 6,063 Contract Withdrawals .......................... (11,833,917) (15,953) (590,268) Deferred Sales Charges ........................ (163,541) (266) (18,278) Death Benefits ................................ (314,059) 0 (128,468) Annuity Payments .............................. (4,132) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (7,219,413) (2,398,637) (404,474) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (8,285,467) (2,454,171) (369,653) Net Assets, at Beginning of Year ................ 71,766,741 2,454,171 2,201,823 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 63,481,274 $ 0 $ 1,832,170 ============== ============== ============== Alliance North Alliance American Alliance Money Government International Market Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 370,022 $ 365,453 $ 471,787 Realized Gain (Loss) on Investment Activity ... (504,151) 0 72,977 Change in Unrealized Appreciation (Depreciation) of Investments ............... (2,235,651) 0 (353,181) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (2,369,780) 365,453 191,583 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 578,705 4,362,781 413,416 Administrative Charges ........................ (4,852) (12,657) (4,231) Transfers ..................................... (462,355) 10,019,898 (743,495) Contract Withdrawals .......................... (1,318,287) (9,100,204) (1,458,383) Deferred Sales Charges ........................ (13,651) (146,706) (20,414) Death Benefits ................................ (85,203) (66,534) (293,314) Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (1,305,643) 5,056,578 (2,106,421) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (3,675,423) 5,422,031 (1,914,838) Net Assets, at Beginning of Year ................ 10,335,811 15,503,943 7,729,415 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 6,660,388 $ 20,925,974 $ 5,814,577 ============== ============== ==============
Alliance Alliance Premier Alliance Short-Term Growth Quasar Multi-Market Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,755,312 $ 172,573 $ 110,399 Realized Gain (Loss) on Investment Activity ... 4,114,704 (233,660) (123,152) Change in Unrealized Appreciation (Depreciation) of Investments ............... (22,035,571) (1,473,224) 14,190 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (15,165,555) (1,534,311) 1,437 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 3,331,236 305,383 0 Administrative Charges ........................ (41,407) (4,669) (16) Transfers ..................................... (5,808,810) (383,257) (409,315) Contract Withdrawals .......................... (9,270,654) (1,420,101) (913) Deferred Sales Charges ........................ (122,834) (39,003) (12) Death Benefits ................................ (295,408) (61,999) 0 Annuity Payments .............................. (2,940) (14,656) 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (12,210,817) (1,618,302) (410,256) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (27,376,372) (3,152,613) (408,819) Net Assets, at Beginning of Year ................ 80,794,532 11,031,560 408,819 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 53,418,160 $ 7,878,947 $ 0 ============== ============== ============== Alliance US Government/ Alliance High Alliance Total Grade Technology Return Securities Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,559,659 $ 600,349 $ 225,829 Realized Gain (Loss) on Investment Activity ... 783,080 170,087 87,713 Change in Unrealized Appreciation (Depreciation) of Investments ............... (16,204,643) (779,810) 209,759 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (12,861,904) (9,374) 523,301 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 1,938,193 1,207,323 748,916 Administrative Charges ........................ (24,508) (9,792) (4,309) Transfers ..................................... (3,560,585) 7,284,408 3,880,358 Contract Withdrawals .......................... (4,179,669) (5,288,060) (3,578,476) Deferred Sales Charges ........................ (85,105) (70,730) (70,913) Death Benefits ................................ (141,685) (64,974) (26,120) Annuity Payments .............................. (9,973) 0 (219) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (6,063,332) 3,058,175 949,237 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (18,925,236) 3,048,801 1,472,538 Net Assets, at Beginning of Year ................ 48,877,910 12,818,324 7,836,669 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 29,952,674 $ 15,867,125 $ 9,309,207 ============== ============== ==============
Alliance Brinson Worldwide Brinson Global Privatization Balanced Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 328,130 $ 9,378 $ (304) Realized Gain (Loss) on Investment Activity ... (385,185) (11,869) 651 Change in Unrealized Appreciation (Depreciation) of Investments ............... (1,505,458) 3,701 (498) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (1,562,513) 1,210 (151) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 291,116 0 0 Administrative Charges ........................ (4,346) (49) (20) Transfers ..................................... (1,190,748) (41,271) (25,450) Contract Withdrawals .......................... (1,278,771) 0 (2,091) Deferred Sales Charges ........................ (21,942) 0 0 Death Benefits ................................ (37,121) 0 0 Annuity Payments .............................. (300) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (2,242,112) (41,320) (27,561) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (3,804,625) (40,110) (27,712) Net Assets, at Beginning of Year ................ 9,022,375 40,110 27,712 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 5,217,750 $ 0 $ 0 ============== ============== ============== Brinson Brinson Growth Brinson High & Tactical Income Income Allocation Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 3,465 $ 7,373 $ 40,878 Realized Gain (Loss) on Investment Activity ... (25,850) (8,704) (5,691) Change in Unrealized Appreciation (Depreciation) of Investments ............... 17,979 455 (135,525) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (4,406) (876) (100,338) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 57,039 Administrative Charges ........................ (43) (33) (817) Transfers ..................................... (50,577) (26,518) 27,372 Contract Withdrawals .......................... (2,265) (472) (22,737) Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (52,885) (27,023) 60,857 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (57,291) (27,899) (39,481) Net Assets, at Beginning of Year ................ 57,291 27,899 636,176 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 0 $ 0 $ 596,695 ============== ============== ==============
Dreyfus Small Dreyfus Fidelity Company Stock Asset Stock Index Manager Portfolio Fund Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (3,809) $ 4,410 $ 45,664 Realized Gain (Loss) on Investment Activity ... 11,929 93,196 (25,050) Change in Unrealized Appreciation (Depreciation) of Investments ............... (26,611) (619,823) (80,159) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (18,491) (522,217) (59,545) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 1,213 50,562 44,595 Administrative Charges ........................ (152) (2,267) (658) Transfers ..................................... (66,829) (343,920) 110,097 Contract Withdrawals .......................... (18,353) (185,965) (80,768) Deferred Sales Charges ........................ (162) (4,915) (1,801) Death Benefits ................................ 0 (8,294) (16,552) Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (84,283) (494,799) 54,913 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (102,774) (1,017,016) (4,632) Net Assets, at Beginning of Year ................ 332,321 3,938,977 1,105,124 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 229,547 $ 2,921,961 $ 1,100,492 ============== ============== ============== Fidelity Fidelity Fidelity High Contrafund Growth Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 16,032 $ 251,525 $ 39,274 Realized Gain (Loss) on Investment Activity ... (18,986) (19,076) (26,849) Change in Unrealized Appreciation (Depreciation) of Investments ............... (108,018) (1,119,505) (57,119) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (110,972) (887,056) (44,694) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 29,531 62,581 2,104 Administrative Charges ........................ (787) (2,584) (192) Transfers ..................................... (100,966) (418,679) 1,498 Contract Withdrawals .......................... (7,942) (145,349) (8,427) Deferred Sales Charges ........................ (207) (3,594) 0 Death Benefits ................................ 0 0 (5,951) Annuity Payments .............................. 0 (24,843) 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (80,371) (532,468) (10,968) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (191,343) (1,419,524) (55,662) Net Assets, at Beginning of Year ................ 796,231 4,770,248 361,769 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 604,888 $ 3,350,724 $ 306,107 ============== ============== ==============
Fidelity Investment Fidelity Grade Money Fidelity Bond Market Overseas Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 22,252 $ 83,976 $ 21,473 Realized Gain (Loss) on Investment Activity ... 2,395 0 (16,955) Change in Unrealized Appreciation (Depreciation) of Investments ............... 14,014 0 (50,187) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 38,661 83,976 (45,669) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 891,845 0 Administrative Charges ........................ (325) (1,441) (117) Transfers ..................................... 57,257 1,489,764 19,169 Contract Withdrawals .......................... (24,560) (1,951,876) (21,592) Deferred Sales Charges ........................ (80) (51,743) (375) Death Benefits ................................ 0 (57,906) 0 Annuity Payments .............................. 0 0 (11,329) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 32,292 318,643 (14,244) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 70,953 402,619 (59,913) Net Assets, at Beginning of Year ................ 558,906 2,885,037 210,457 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 629,859 $ 3,287,656 $ 150,544 ============== ============== ============== Merrill Merrill Mercury Lynch Lynch HW Basic Core International Value Bond VIP Focus Focus Portfolio Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 713 $ 3,582 $ 2,797 Realized Gain (Loss) on Investment Activity ... (18) (40) 97 Change in Unrealized Appreciation (Depreciation) of Investments ............... (3,125) (1,375) 472 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (2,430) 2,167 3,366 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 0 Administrative Charges ........................ (17) (79) (50) Transfers ..................................... 21,788 0 (1,304) Contract Withdrawals .......................... 0 0 (543) Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 21,771 (79) (1,897) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 19,341 2,088 1,469 Net Assets, at Beginning of Year ................ 0 77,519 65,324 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 19,341 $ 79,607 $ 66,793 ============== ============== ==============
Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Allocation Growth Markets Focus Focus Fund Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (31) $ 29 $ (47) Realized Gain (Loss) on Investment Activity ... (42) (229) (31) Change in Unrealized Appreciation (Depreciation) of Investments ............... 78 (4,100) (3,040) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 5 (4,300) (3,118) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 0 Administrative Charges ........................ (8) (37) (10) Transfers ..................................... 0 0 0 Contract Withdrawals .......................... 0 0 0 Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (8) (37) (10) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (3) (4,337) (3,128) Net Assets, at Beginning of Year ................ 7,161 42,443 12,935 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 7,158 $ 38,106 $ 9,807 ============== ============== ============== Merrill Merrill Merrill Lynch Lynch Lynch Large High International Cap Current Equity Core Income Focus Focus Fund Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,684 $ 245 $ (67) Realized Gain (Loss) on Investment Activity ... (86) (6,681) (104) Change in Unrealized Appreciation (Depreciation) of Investments ............... (1,887) 4,248 (936) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 711 (2,188) (1,107) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 0 Administrative Charges ........................ (28) (7) (11) Transfers ..................................... 0 (21,789) 0 Contract Withdrawals .......................... 0 0 0 Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (28) (21,796) (11) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 683 (23,984) (1,118) Net Assets, at Beginning of Year ................ 27,745 23,984 12,736 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 28,428 $ 0 $ 11,618 ============== ============== ==============
Van Eck Van Eck Worldwide Worldwide Emerging Hard Markets Assets Fund Fund -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (184) $ (49) Realized Gain (Loss) on Investment Activity ... (104) (727) Change in Unrealized Appreciation (Depreciation) of Investments ............... (365) (3,100) -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (653) (3,876) -------------- -------------- Capital Transactions: Contract Deposits ............................. 500 0 Administrative Charges ........................ (18) (26) Transfers ..................................... 3,973 0 Contract Withdrawals .......................... 0 (17,047) Deferred Sales Charges ........................ 0 (149) Death Benefits ................................ 0 0 Annuity Payments .............................. 0 0 -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 4,455 (17,222) -------------- -------------- Total Increase (Decrease) in Net Assets ......... 3,802 (21,098) Net Assets, at Beginning of Year ................ 10,122 29,113 -------------- -------------- Net Assets, at End of Year ...................... $ 13,924 $ 8,015 ============== ============== See Accompanying Notes to Financial Statements
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A STATEMENT OF CHANGES IN NET ASSETS For The Years Ended December 31, 2001 and December 31, 2000
2000 ---- AIM AIM Capital International Appreciation Equity Total Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 23,709,506 $ 10,403 $ 13,856 Realized Gain (Loss) on Investment Activity ... 26,127,052 23,711 49,252 Change in Unrealized Appreciation (Depreciation) of Investments ............... (91,727,883) (154,590) (172,381) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (41,891,325) (120,476) (109,273) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 57,843,004 116,738 127,194 Administrative Charges ........................ (167,865) (214) (210) Transfers ..................................... 2,436,604 248,468 (5,921) Contract Withdrawals .......................... (49,877,046) (22,375) (112,954) Deferred Sales Charges ........................ (975,674) (711) (3,746) Death Benefits ................................ (3,038,701) 0 0 Annuity Payments .............................. (98,704) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 6,121,618 341,906 4,363 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (35,769,707) 221,430 (104,910) Net Assets, at Beginning of Year ................ 407,187,675 474,130 382,078 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 371,417,968 $ 695,560 $ 277,168 ============== ============== ============== Alliance Alliance Alliance Growth Money Premier & Market Growth Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 622,794 $ 3,876,272 $ 4,026,799 Realized Gain (Loss) on Investment Activity ... 0 9,046,764 3,532,170 Change in Unrealized Appreciation (Depreciation) of Investments ............... 0 (31,124,910) 484,498 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 622,794 (18,201,874) 8,043,467 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 6,556,221 13,616,978 7,035,605 Administrative Charges ........................ (8,186) (40,053) (29,105) Transfers ..................................... (5,339,096) (974,030) (1,658,985) Contract Withdrawals .......................... (3,452,057) (12,057,127) (10,666,096) Deferred Sales Charges ........................ (64,867) (223,977) (262,722) Death Benefits ................................ (350,246) (680,958) (863,857) Annuity Payments .............................. 0 (3,277) (3,243) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (2,658,231) (362,444) (6,448,403) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (2,035,437) (18,564,318) 1,595,064 Net Assets, at Beginning of Year ................ 17,539,380 99,358,850 70,171,677 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 15,503,943 $ 80,794,532 $ 71,766,741 ============== ============== ==============
Alliance Alliance Alliance Short-Term Global International Multi-Market Bond Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 935,793 $ 35,805 $ 44,374 Realized Gain (Loss) on Investment Activity ... 479,036 (12,178) (32,539) Change in Unrealized Appreciation (Depreciation) of Investments ............... (4,304,338) (10,871) (29,507) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (2,889,509) 12,756 (17,672) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 1,696,260 0 30,914 Administrative Charges ........................ (4,948) (175) (538) Transfers ..................................... 586,954 (40,223) (126,108) Contract Withdrawals .......................... (1,669,398) (177,185) (187,818) Deferred Sales Charges ........................ (20,432) (4,575) (2,421) Death Benefits ................................ (244,786) 0 (14,370) Annuity Payments .............................. 0 0 (410) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 343,650 (222,158) (300,751) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (2,545,859) (209,402) (318,423) Net Assets, at Beginning of Year ................ 12,881,670 618,221 1,939,971 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 10,335,811 $ 408,819 $ 1,621,548 ============== ============== ============== Alliance US Alliance Government/ Alliance North High Global American Grade Dollar Government Securities Government Income Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 357,882 $ 199,134 $ 573,103 Realized Gain (Loss) on Investment Activity ... (112,815) (111,766) (51,457) Change in Unrealized Appreciation (Depreciation) of Investments ............... 461,801 128,085 269,485 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 706,868 215,453 791,131 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 284,325 173,116 666,031 Administrative Charges ........................ (2,943) (810) (3,308) Transfers ..................................... (925,676) 31,210 430,043 Contract Withdrawals .......................... (1,140,345) (190,443) (718,006) Deferred Sales Charges ........................ (17,563) (2,628) (9,895) Death Benefits ................................ (93,709) (15,533) (78,311) Annuity Payments .............................. (209) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (1,896,120) (5,088) 286,554 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (1,189,252) 210,365 1,077,685 Net Assets, at Beginning of Year ................ 9,025,921 1,739,659 6,651,730 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 7,836,669 $ 1,950,024 $ 7,729,415 ============== ============== ==============
Alliance Alliance Alliance Utility Conservative Growth Income Investors Investors Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 424,847 $ 770,422 $ 596,182 Realized Gain (Loss) on Investment Activity ... 357,414 121,210 12,209 Change in Unrealized Appreciation (Depreciation) of Investments ............... 63,353 (597,694) (706,399) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 845,614 293,938 (98,008) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 1,241,388 0 0 Administrative Charges ........................ (2,823) (2,743) (1,138) Transfers ..................................... 41,806 (33,648) (285,503) Contract Withdrawals .......................... (721,369) (825,015) (310,195) Deferred Sales Charges ........................ (6,489) (14,171) (4,361) Death Benefits ................................ (51,548) (201,836) 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 500,965 (1,077,413) (601,197) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 1,346,579 (783,475) (699,205) Net Assets, at Beginning of Year ................ 8,207,858 7,047,136 3,153,376 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 9,554,437 $ 6,263,661 $ 2,454,171 ============== ============== ============== Alliance Alliance Alliance Total Worldwide Growth Return Privatization Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 5,518,679 $ 763,499 $ 660,375 Realized Gain (Loss) on Investment Activity ... 4,419,368 351,624 564,242 Change in Unrealized Appreciation (Depreciation) of Investments ............... (22,202,339) 120,531 (4,468,051) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (12,264,292) 1,235,654 (3,243,434) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 6,367,001 1,358,159 2,092,673 Administrative Charges ........................ (25,034) (3,534) (4,818) Transfers ..................................... (1,561,591) 1,533,986 (1,062,248) Contract Withdrawals .......................... (7,509,236) (1,479,199) (1,242,723) Deferred Sales Charges ........................ (124,074) (36,935) (13,251) Death Benefits ................................ (176,100) (31,355) (32,320) Annuity Payments .............................. (9,412) 0 (426) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (3,038,446) 1,341,122 (263,113) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (15,302,738) 2,576,776 (3,506,547) Net Assets, at Beginning of Year ................ 67,038,901 10,241,548 12,528,922 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 51,736,163 $ 12,818,324 $ 9,022,375 ============== ============== ==============
Alliance Real Alliance Alliance Estate Technology Quasar Investment Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,912,211 $ 189,894 $ 56,852 Realized Gain (Loss) on Investment Activity ... 6,809,669 442,303 (67,962) Change in Unrealized Appreciation (Depreciation) of Investments ............... (25,513,026) (1,549,304) 454,269 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (15,791,146) (917,107) 443,159 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 13,065,263 1,108,237 266,481 Administrative Charges ........................ (23,983) (4,139) (685) Transfers ..................................... 10,185,557 1,022,247 184,844 Contract Withdrawals .......................... (5,019,310) (614,569) (162,156) Deferred Sales Charges ........................ (107,553) (14,550) (4,312) Death Benefits ................................ (132,538) 0 0 Annuity Payments .............................. (15,021) (19,128) (208) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 17,952,415 1,478,098 283,964 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 2,161,269 560,991 727,123 Net Assets, at Beginning of Year ................ 46,716,641 10,470,569 1,752,851 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 48,877,910 $ 11,031,560 $ 2,479,974 ============== ============== ============== Dreyfus Alliance Dreyfus Zero High Stock Coupon Yield Index 2000 Portfolio Fund Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 173,761 $ 46,048 $ 1,459 Realized Gain (Loss) on Investment Activity ... (103,468) 135,817 (546) Change in Unrealized Appreciation (Depreciation) of Investments ............... (206,424) (635,787) 688 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (136,131) (453,922) 1,601 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 297,755 287,715 0 Administrative Charges ........................ (908) (1,749) (15) Transfers ..................................... (642,394) 347,326 (44,991) Contract Withdrawals .......................... (244,231) (151,162) (5,604) Deferred Sales Charges ........................ (2,267) (3,771) (84) Death Benefits ................................ 0 (40,131) 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (592,045) 438,228 (50,694) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (728,176) (15,694) (49,093) Net Assets, at Beginning of Year ................ 2,929,999 3,954,671 49,093 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 2,201,823 $ 3,938,977 $ 0 ============== ============== ==============
Dreyfus Small Fidelity Fidelity Company Money Asset Stock Market Manager Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (3,553) $ 144,593 $ 126,442 Realized Gain (Loss) on Investment Activity ... 8,557 0 (8,533) Change in Unrealized Appreciation (Depreciation) of Investments ............... 9,411 0 (181,745) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 14,415 144,593 (63,836) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 10,883 370,942 53,089 Administrative Charges ........................ (114) (888) (576) Transfers ..................................... 116,136 698,859 (202,371) Contract Withdrawals .......................... (47,176) (654,627) (38,825) Deferred Sales Charges ........................ (1,334) (16,684) (976) Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 78,395 397,602 (189,659) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 92,810 542,195 (253,495) Net Assets, at Beginning of Year ................ 239,511 2,342,842 1,358,619 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 332,321 $ 2,885,037 $ 1,105,124 ============== ============== ============== Fidelity Fidelity Investment Fidelity High Grade Growth Income Bond Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 437,621 $ 33,981 $ 31,864 Realized Gain (Loss) on Investment Activity ... 270,409 (66,987) (3,339) Change in Unrealized Appreciation (Depreciation) of Investments ............... (1,428,250) (99,416) 25,208 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (720,220) (132,422) 53,733 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 583,441 8,187 45,033 Administrative Charges ........................ (2,114) (188) (257) Transfers ..................................... 259,056 (118,656) (54,827) Contract Withdrawals .......................... (251,642) (22,321) (26,828) Deferred Sales Charges ........................ (7,186) (254) (10) Death Benefits ................................ (31,103) 0 0 Annuity Payments .............................. (32,291) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 518,161 (133,232) (36,889) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (202,059) (265,654) 16,844 Net Assets, at Beginning of Year ................ 4,972,307 627,423 542,062 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 4,770,248 $ 361,769 $ 558,906 ============== ============== ==============
Merrill Lynch Basic Fidelity Fidelity Value Overseas Contrafund Focus Portfolio Portfolio Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 27,464 $ 65,239 $ 6,970 Realized Gain (Loss) on Investment Activity ... 23,051 23,239 (17) Change in Unrealized Appreciation (Depreciation) of Investments ............... (116,985) (147,655) 790 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (66,470) (59,177) 7,743 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 120,894 0 Administrative Charges ........................ (150) (361) (72) Transfers ..................................... (50,124) 216,269 0 Contract Withdrawals .......................... (59,571) (56,461) 0 Deferred Sales Charges ........................ (1,964) (1,755) 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. (15,079) 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (126,888) 278,586 (72) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (193,358) 219,409 7,671 Net Assets, at Beginning of Year ................ 403,815 576,822 69,848 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 210,457 $ 796,231 $ 77,519 ============== ============== ============== Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Growth Strategy Markets Focus Focus Fund Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (61) $ 704 $ 5,835 Realized Gain (Loss) on Investment Activity ... (9) 44 (14) Change in Unrealized Appreciation (Depreciation) of Investments ............... (2,955) (3,245) (11,002) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (3,025) (2,497) (5,181) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 0 Administrative Charges ........................ (9) (15) (46) Transfers ..................................... 0 0 0 Contract Withdrawals .......................... 0 0 0 Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (9) (15) (46) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (3,034) (2,512) (5,227) Net Assets, at Beginning of Year ................ 10,195 15,447 47,670 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 7,161 $ 12,935 $ 42,443 ============== ============== ==============
Merrill Merrill Lynch Lynch Merrill High International Lynch Current Equity Prime Income Focus Bond Fund Fund Fund -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 2,534 $ 1,093 $ 2,842 Realized Gain (Loss) on Investment Activity ... (30) 54 (7) Change in Unrealized Appreciation (Depreciation) of Investments ............... (5,039) (6,566) 2,422 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (2,535) (5,419) 5,257 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 15,138 Administrative Charges ........................ (30) (27) (46) Transfers ..................................... 0 0 0 Contract Withdrawals .......................... 0 0 0 Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (30) (27) 15,092 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (2,565) (5,446) 20,349 Net Assets, at Beginning of Year ................ 30,310 29,430 44,975 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 27,745 $ 23,984 $ 65,324 ============== ============== ============== Merrill Mitchell Lynch Mitchell Hutchins Quality Hutchins Global Equity Balanced Income Fund Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 3,625 $ 4,940 $ 477 Realized Gain (Loss) on Investment Activity ... 10 (174) (86) Change in Unrealized Appreciation (Depreciation) of Investments ............... (5,224) (5,016) 547 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (1,589) (250) 938 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 5,391 0 Administrative Charges ........................ (15) (40) (28) Transfers ..................................... 0 0 0 Contract Withdrawals .......................... 0 (2,401) (2,541) Deferred Sales Charges ........................ 0 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (15) 2,950 (2,569) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... (1,604) 2,700 (1,631) Net Assets, at Beginning of Year ................ 14,340 37,410 29,343 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 12,736 $ 40,110 $ 27,712 ============== ============== ==============
Mitchell Mitchell Hutchins Mitchell Hutchins Growth Hutchins High & Tactical Income Income Allocation Portfolio Portfolio Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ 5,531 $ 973 $ 3,575 Realized Gain (Loss) on Investment Activity ... (677) 19 2,095 Change in Unrealized Appreciation (Depreciation) of Investments ............... (14,317) (1,749) (23,221) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... (9,463) (757) (17,551) -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 25,044 6,294 208,251 Administrative Charges ........................ (50) (25) (680) Transfers ..................................... 5,475 11,067 45,125 Contract Withdrawals .......................... (3,230) (491) (20,618) Deferred Sales Charges ........................ 0 (1) 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ................... 27,239 16,844 232,078 -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 17,776 16,087 214,527 Net Assets, at Beginning of Year ................ 39,515 11,812 421,649 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 57,291 $ 27,899 $ 636,176 ============== ============== ============== Van Eck Van Eck WP&G Worldwide Worldwide Tomorrow Hard Emerging Short Assets Markets Term Fund Fund Portfolio -------------- -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (155) $ (233) $ (2,102) Realized Gain (Loss) on Investment Activity ... 530 213 12,310 Change in Unrealized Appreciation (Depreciation) of Investments ............... 1,476 (7,886) (5,040) -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 1,851 (7,906) 5,168 -------------- -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 2,363 0 Administrative Charges ........................ (20) (6) (28) Transfers ..................................... 19,412 3,880 (267,434) Contract Withdrawals .......................... (6,330) (1,023) (3,838) Deferred Sales Charges ........................ (156) 0 0 Death Benefits ................................ 0 0 0 Annuity Payments .............................. 0 0 0 -------------- -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... 12,906 5,214 (271,300) -------------- -------------- -------------- Total Increase (Decrease) in Net Assets ......... 14,757 (2,692) (266,132) Net Assets, at Beginning of Year ................ 14,356 12,814 266,132 -------------- -------------- -------------- Net Assets, at End of Year ...................... $ 29,113 $ 10,122 $ 0 ============== ============== ==============
WP&G WP&G Tomorrow Tomorrow Medium Long Term Term Portfolio Portfolio -------------- -------------- Increase (Decrease) in Net Assets Operations: Net Investment Income (Loss) .................. $ (884) $ (253) Realized Gain (Loss) on Investment Activity ... 10,740 3,596 Change in Unrealized Appreciation (Depreciation) of Investments ............... (6,967) (2,548) -------------- -------------- Increase (Decrease) in Net Assets Resulting From Operations ............................... 2,889 795 -------------- -------------- Capital Transactions: Contract Deposits ............................. 0 0 Administrative Charges ........................ (3) (18) Transfers ..................................... (124,010) (33,280) Contract Withdrawals .......................... (550) 0 Deferred Sales Charges ........................ 0 1 Death Benefits ................................ 0 0 Annuity Payments .............................. 0 0 -------------- -------------- Increase (Decrease) in Net Assets Resulting From Capital Transactions ..................... (124,563) (33,297) -------------- -------------- Total Increase (Decrease) in Net Assets ......... (121,674) (32,502) Net Assets, at Beginning of Year ................ 121,674 32,502 -------------- -------------- Net Assets, at End of Year ...................... $ 0 $ 0 ============== ============== See Accompanying Notes to Financial Statements
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS 1. History Variable Account A (the "Account") is a separate investment account established under the provisions of New York Insurance Law by American International Life Assurance Company of New York (the "Company"), a wholly-owned subsidiary of American International Group, Inc. The Account operates as a unit investment trust registered under the Investment Company Act of 1940, as amended, and supports the operations of the Company's individual single purchase payment deferred variable annuity contracts, individual flexible premium deferred variable annuity contracts and group flexible premium deferred variable annuity contracts (the "contracts"). The following products are offered by the Account: Profile, Ovation, Ovation Plus, Ovation Advisor, Trilogy and Paradigm. The Alliance Gallery product has been discontinued as of April 30, 2000. The Account invests in shares of AIM Variable Insurance Fund ("AIM Fund"), Alliance Variable Products Series Fund, Inc. ("Alliance Fund"), Alliance Variable Products Series Fund B, Inc. ("Alliance Fund B"), Brinson Series Trust ("Brinson Trust" formerly Mitchell Hutchins Trust, "Mitchell Hutchins Series Trust"), Dreyfus Variable Investment Fund ("Dreyfus Fund"), Fidelity Investments Variable Insurance Products Fund ("Fidelity Trust"), Fidelity Investments Variable Insurance Products Fund II ("Fidelity Trust II"), Mercury HW Variable Trust ("Mercury HW Trust" formerly Hotchkis & Wiley Variable Trust, "Hotchkis & Wiley Trust"), Mercury Asset Management V.I.P. Funds, Inc. ("Mercury Fund"), Merrill Lynch Variable Series Funds ("Merrill Lynch Fund") and Van Eck Investment Trust ("Van Eck Trust"). The assets in the policies may be invested in the following subaccounts:
AIM Fund: Dreyfus Fund: Capital Appreciation Fund Small Company Stock Portfolio International Equity Fund Stock Index Fund Zero Coupon 2000 Portfolio (Fund Closed 12/29/00) Alliance Fund: Bernstein International Value Portfolio Fidelity Trust: Bernstein Real Estate Investment Portfolio ** Growth Portfolio Bernstein Small Cap Value Portfolio High Income Portfolio Bernstein Utility Income Portfolio ** Money Market Portfolio Conservative Investors Portfolio (Fund Closed 02/23/01) Overseas Portfolio Global Bond Portfolio Global Dollar Government Portfolio Fidelity Trust II: Growth Portfolio Asset Manager Portfolio Growth & Income Portfolio Contrafund Portfolio Growth Investors Portfolio (Fund Closed 02/23/01) Investment Grade Bond Portfolio High Yield Portfolio International Portfolio Mercury HW Trust: Money Market Portfolio International VIP Portfolio * North American Government Income Portfolio Low Duration VIP Portfolio (Fund Closed 10/30/01) Premier Growth Portfolio Quasar Portfolio Mercury Fund: Short-Term Multi-Market Portfolio (Fund Closed U.S. Large Cap Fund 02/23/01) Technology Portfolio Merrill Lynch Fund: Total Return Portfolio American Balanced Focus Fund * U.S. Government/High Grade Securities Portfolio Basic Value Focus Fund Worldwide Privatization Portfolio Capital Focus Fund * Core Bond Focus Fund (Formerly Prime Bond Fund) Alliance Fund B: Developing Capital Markets Fund Bernstein Value Portfolio Domestic Money Market Fund Growth Portfolio Global Allocation Focus Fund (Formerly Global Strategy Growth & Income Portfolio Focus Fund) Money Market Portfolio Global Growth Focus Fund Premier Growth Portfolio High Current Income Fund Technology Portfolio International Equity Focus Fund * U.S. Government/High Grade Securities Portfolio Large Cap Core Focus Fund (Formerly Quality Equity Fund) Natural Resources Focus Fund Brinson Trust: Small Cap Value Focus Fund Balanced Portfolio *** Utilities and Telecom Focus Fund Global Income Portfolio *** Growth Portfolio *** Van Eck Trust: Growth & Income Portfolio *** Worldwide Emerging Markets Fund High Income Portfolio *** Worldwide Hard Assets Fund Small Cap Portfolio *** Strategic Income Portfolio *** WP&G Tomorrow Fund: Tactical Allocation Portfolio Tomorrow Long Term Portfolio (Fund Closed 07/31/00) Tomorrow Medium Term Portfolio (Fund Closed 07/31/00) Tomorrow Short Term Portfolio (Fund Closed 07/31/00)
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) * On 05/01/01 the Merrill Lynch Capital Focus Fund merged with the Merrill Lynch American Balanced Focus Fund. The Merrill Lynch International Equity Focus Fund merged with the Mercury HW International VIP Portfolio. ** On 10/26/01 the Alliance Real Estate Investment Portfolio merged with the Bernstein Real Estate Investment Portfolio. The Alliance Utility Income Portfolio merged with the Bernstein Utility Income Portfolio. *** On 10/30/01 the Brinson Balanced Portfolio merged with the Alliance Total Return Portfolio. The Brinson Global Income Portfolio merged with the Alliance Global Bond Portfolio. The Brinson Growth Portfolio merged with the Alliance Growth Portfolio. The Brinson Growth & income Portfolio merged with the Alliance Growth & Income Portfolio. The Brinson High Income Portfolio merged with the Alliance High Yield Portfolio. The Brinson Small Cap Portfolio merged with the Alliance Quasar Portfolio. The Brinson Strategic Income Portfolio merged with the Alliance Global Bond Portfolio. The assets of the Account are the property of the Company. The portion of the Account's assets applicable to the contracts are not chargeable with liabilities arising out of any other business conducted by the Company. In addition to the Account, a contract holder may also allocate funds to the Guaranteed Account, which is part of the Company's general account. Amounts allocated to the Guaranteed Account are credited with a guaranteed rate of interest for a selected period. Because of exemptive and exclusionary provisions, interests in the Guaranteed Account have not been registered under the Securities Act of 1933, and the Guaranteed Account has not been registered as an investment company under the Investment Company Act of 1940. 2. Summary of Significant Accounting Policies The following is a summary of significant accounting policies followed by the Account in preparation of the financial statements in conformity with generally accepted accounting principles. A. Investment Valuation - The investments in the respective funds and trusts are stated at market value, which is the net asset value of each of the respective series as determined by the Fund at the close of business on the last business day of the period. B. Accounting for Investments - Investment transactions are accounted for on the date the investments are purchased or sold. Dividend income is recorded on the ex-dividend date. C. Federal Income Taxes - The Company is taxed under federal law as a life insurance company. The Account is part of the Company's total operations and is not taxed separately. Under existing federal law, no taxes are payable on investment income or realized capital gains of the Account. D. The preparation of the accompanying financial statements required management to make estimates and assumptions that affect the reported values of assets and liabilities and the reported amounts from operations and policy transactions. Actual results could differ from those estimates. E. Realized gains and losses on the sales of investments are computed on the basis of the identified cost of the investment sold. 3. Contract Charges Daily charges for mortality and expense risks assumed by the Company are assessed through the daily unit value calculation and are equivalent, on an annual basis, to 1.25% of the value of the contracts. Daily charges for administrative expenses are assessed through the daily unit value calculation and are equivalent, on an annual basis, to 0.15% of the value of the contracts. In addition, an annual administrative expense charge of $30 may be assessed against each contract on its anniversary date by surrendering units. Daily charges for distribution expenses are assessed on all contracts issued under the Ovation Plus product and are equivalent, on an annual basis, to 0.20% of the value of the contracts. These charges are included as part of the administrative charges line of the Statement of Changes in Net Assets. Daily charges for the Accidental Death Benefit (ADB) option are assessed through the daily unit value calculation on all contracts that have elected this option and are equivalent, on an annual basis, to 0.05% of the value of the contracts. These charges are included as part of the mortality and expense risk fees line of the Statement of Operations. Daily charges for the Annual Ratchet Plan option are assessed on all contracts that have elected this option and are equivalent, on an annual basis, to 0.10% of the value of the contracts. These charges are included as part of the administrative charges line of the Statement of Changes in Net Assets. Daily charges for the Equity Assurance Plan option are assessed on all contracts that have elected this option and are equivalent, on an annual basis, to a maximum 0.20% of the value of the contracts. These charges are included as part of the administrative charges line of the Statement of Changes in Net Assets. AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) In the event that a contract holder withdraws all or a portion of the contract value within the surrender charge period, the contracts provide that they will be assessed a deferred sales charge. The deferred sales charge is based on a table of charges, of which the maximum charge is 6% of the contract value subject to a maximum of 8.5% of premiums paid for single premium contracts and a maximum charge of 6% of premiums paid for flexible premium contracts. Contracts under the Ovation Advisor product are not subjected to surrender charges. Certain states impose premium taxes upon contracts. The Company intends to advance premium taxes due until the contract is surrendered or annuitized. 4. Annuity Reserves Annuity reserves are computed for contracts currently payable according to the 83 IAM or Annuity 2000 Mortality Tables. The assumed interest rate is 5%. Charges to annuity reserves for mortality and expense risks experience are reimbursed to the Company if the reserves required are less than originally estimated. If additional reserves are required, the Company reimburses the variable annuity account. AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) 5. Purchases and Sales of Investments For the year ended December 31, 2001, investment activity in the Account was as follows:
Cost of Proceeds Shares of Purchases From Sales --------- ----------- ----------- AIM Capital Appreciation Fund ............................... $ 169,494 $ 186,313 International Equity Fund ............................... 84,631 71,447 Alliance Bernstein International Value Portfolio ................. 71,949 423 Bernstein Real Estate Investment Portfolio .............. 707,439 652,525 Bernstein Small Cap Value Portfolio ..................... 1,188,414 96,225 Bernstein Utility Income Portfolio ...................... 2,111,196 2,928,729 Bernstein Value Portfolio ............................... 2,102,259 21,184 Conservative Investors Portfolio ........................ 1,117,324 6,230,845 Global Bond Portfolio ................................... 203,671 675,533 Global Dollar Government Portfolio ...................... 551,640 479,253 Growth Portfolio ........................................ 8,732,723 11,411,601 Growth & Income Portfolio ............................... 12,713,199 17,432,642 Growth Investors Portfolio .............................. 685,022 2,403,823 High Yield Portfolio .................................... 1,281,402 1,547,976 International Portfolio ................................. 1,268,763 2,204,383 Money Market Portfolio .................................. 24,274,311 18,852,281 North American Government Income Portfolio ........................................... 4,278,214 5,912,849 Premier Growth Portfolio ................................ 10,198,167 19,653,737 Quasar Portfolio ........................................ 1,114,354 2,560,114 Short-Term Multi-Market Portfolio ....................... 111,279 411,135 Technology Portfolio .................................... 7,401,841 10,905,585 Total Return Portfolio .................................. 11,810,173 8,151,654 U.S. Government/High Grade Securities Portfolio ............................................. 7,337,197 6,162,133 Worldwide Privatization Portfolio ....................... 754,549 2,668,528 Brinson Balanced Portfolio ...................................... 9,854 41,795 Global Income Portfolio ................................. 0 27,864 High Income Portfolio ................................... 4,099 53,518 Growth & Income Portfolio ............................... 7,698 27,348 Tactical Allocation Portfolio ........................... 161,391 59,658 Dreyfus Small Company Stock Portfolio ........................... 11,562 99,657 Stock Index Fund ........................................ 188,093 678,479 Fidelity Asset Manager Portfolio ................................. 245,970 145,392 Contrafund Portfolio .................................... 72,195 136,534 Growth Portfolio ........................................ 571,368 852,360 High Income Portfolio ................................... 61,275 32,966 Investment Grade Bond Portfolio ......................... 146,626 92,081 Money Market Portfolio .................................. 2,910,574 2,507,953 Overseas Portfolio ...................................... 89,352 82,147 Mercury HW International VIP Portfolio ............................. 22,691 208 Merrill Lynch Basic Value Focus Fund .................................. 4,674 1,171 Core Bond Focus Fund .................................... 3,737 2,835 Developing Capital Markets Fund ......................... 65 105 Global Allocation Focus Fund ............................ 574 584 Global Growth Focus Fund ................................ 103 162 High Current Income Fund ................................ 3,091 437 International Equity Focus Fund ......................... 348 21,899 Large Cap Core Focus Fund ............................... 97 176 Van Eck Worldwide Emerging Markets Fund ......................... 4,461 191 Worldwide Hard Assets Fund .............................. 313 17,584
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) 5. Purchases and Sales of Investments For the year ended December 31, 2000, investment activity in the Account was as follows:
Cost of Proceeds Shares of Purchases From Sales --------- ----------- ----------- AIM Capital Appreciation Fund ............................... $ 411,025 $ 58,713 International Equity Fund ............................... 212,961 194,743 Alliance Money Market Portfolio .................................. 20,718,939 22,754,378 Premier Growth Portfolio ................................ 18,555,837 15,041,585 Growth & Income Portfolio ............................... 11,996,119 14,417,438 International Portfolio ................................. 3,543,615 2,264,157 Short-Term Multi-Market Portfolio ....................... 60,511 246,865 Global Bond Portfolio ................................... 119,972 376,322 U.S. Government/High Grade Securities Portfolio ............................................. 1,128,845 2,667,079 Global Dollar Government Portfolio ...................... 478,317 284,272 North American Government Income Portfolio ............................................. 2,548,299 1,688,644 Utility Income Portfolio ................................ 1,838,906 913,093 Conservative Investors Portfolio ........................ 1,101,903 1,408,893 Growth Investors Portfolio .............................. 693,682 698,695 Growth Portfolio ........................................ 11,964,621 9,484,179 Total Return Portfolio .................................. 4,802,286 2,697,666 Worldwide Privatization Portfolio ....................... 3,576,972 3,179,695 Technology Portfolio .................................... 31,518,685 10,653,482 Quasar Portfolio ........................................ 3,618,981 1,950,791 Real Estate Investment Portfolio ........................ 622,653 281,830 High Yield Portfolio .................................... 704,151 1,122,435 Dreyfus Stock Index Fund ........................................ 850,688 366,405 Zero Coupon 2000 Portfolio .............................. 1,991 50,767 Small Company Stock Portfolio ........................... 154,273 79,431 Fidelity Money Market Portfolio .................................. 2,824,206 2,282,012 Asset Manager Portfolio ................................. 211,324 274,541 Growth Portfolio ........................................ 1,751,525 795,423 High Income Portfolio ................................... 57,664 156,915 Investment Grade Bond Portfolio ......................... 129,511 134,537 Overseas Portfolio ...................................... 31,610 130,888 Contrafund Portfolio .................................... 468,502 124,677 Merrill Lynch Basic Value Focus Fund .................................. 7,968 1,071 Developing Capital Markets Fund ......................... 69 138 Global Growth Focus Fund ................................ 913 224 Global Strategy Focus Fund .............................. 6,475 686 High Current Income Fund ................................ 2,944 441 International Equity Focus Fund ......................... 1,466 401 Prime Bond Fund ......................................... 18,746 813 Quality Equity Fund ..................................... 3,824 214 Mitchell Hutchins Balanced Portfolio ...................................... 11,047 3,156 Global Income Portfolio ................................. 863 2,955 High Income Portfolio ................................... 36,766 3,997 Growth & Income Portfolio ............................... 18,631 814 Tactical Allocation Portfolio ........................... 264,487 28,829 Van Eck Worldwide Hard Assets Fund .............................. 19,542 6,790 Worldwide Emerging Markets Fund ......................... 19,988 15,008 Weiss, Peck & Greer Tomorrow Short Term Portfolio ........................... 0 272,293 Tomorrow Medium Term Portfolio .......................... 0 125,168 Tomorrow Long Term Portfolio ............................ 0 33,378
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) 6. Net Increase (Decrease) in Accumulation Units For the year ended December 31, 2001, transactions in accumulation units of the account were as follows:
Alliance AIM AIM Bernstein Capital International International Appreciation Equity Value 2 Fund 2 Fund 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 2,364.69 1,806.17 7,169.65 Units Withdrawn ................................. (3,120.53) (2,020.41) (0.53) Units Transferred Between Funds ................. (5,398.21) 1,710.85 370.93 Units Transferred From (To) AI Life ............. 1,407.38 (250.34) 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (4,746.67) 1,246.27 7,540.05 Units, at Beginning of the Year ................. 49,079.73 21,708.16 0.00 -------------- -------------- -------------- Units, at End of the Year ....................... 44,333.06 22,954.43 7,540.05 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 10.72 $ 9.63 $ 9.78 ============== ============== ============== Alliance Alliance Alliance Bernstein Bernstein Bernstein Real Real Small Estate Estate Cap Investment Investment Value 1 Portfolio 3 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 25,895.68 0.00 29,665.09 Units Withdrawn ................................. (40,688.78) (0.72) (1,518.03) Units Transferred Between Funds ................. 14,287.60 506.48 73,959.20 Units Transferred From (To) AI Life ............. 409.40 0.00 360.91 -------------- -------------- -------------- Net Increase (Decrease) ......................... (96.10) 505.76 102,467.17 Units, at Beginning of the Year ................. 217,027.19 1,124.42 0.00 -------------- -------------- -------------- Units, at End of the Year ....................... 216,931.09 1,630.18 102,467.17 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.40 $ 12.50 $ 11.08 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Bernstein Bernstein Alliance Utility Utility Bernstein Income Income Value 1 Portfolio 3 Portfolio 5 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 61,650.20 0.00 54,803.08 Units Withdrawn ................................. (99,176.89) (0.24) (2,349.33) Units Transferred Between Funds ................. (28,576.09) 0.00 160,420.64 Units Transferred From (To) AI Life ............. 4,605.76 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (61,497.02) (0.24) 212,874.39 Units, at Beginning of the Year ................. 393,588.42 90.37 0.00 -------------- -------------- -------------- Units, at End of the Year ....................... 332,091.40 90.13 212,874.39 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 18.55 $ 17.95 $ 9.98 ============== ============== ============== Alliance Alliance Alliance Conservative Conservative Global Investors Investors Bond 1 Portfolio 2 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 4,139.35 Units Withdrawn ................................. (997.26) (69.54) (35,195.88) Units Transferred Between Funds ................. (385,709.64) (9,173.56) (3,744.57) Units Transferred From (To) AI Life ............. 0.00 0.00 1,231.38 -------------- -------------- -------------- Net Increase (Decrease) ......................... (386,706.90) (9,243.10) (33,569.72) Units, at Beginning of the Year ................. 386,706.90 9,243.10 120,938.09 -------------- -------------- -------------- Units, at End of the Year ....................... (0.00) 0.00 87,368.37 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 15.73 $ 14.09 $ 13.01 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Global Global Dollar Alliance Bond Government Growth 2 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 2,877.65 11,945.23 Units Withdrawn ................................. (104.90) (10,632.58) (282,120.20) Units Transferred Between Funds ................. (1,295.28) 1,238.75 (89,843.82) Units Transferred From (To) AI Life ............. 0.00 0.00 5,659.89 -------------- -------------- -------------- Net Increase (Decrease) ......................... (1,400.18) (6,516.18) (354,358.90) Units, at Beginning of the Year ................. 1,536.29 111,186.15 1,562,901.11 -------------- -------------- -------------- Units, at End of the Year ....................... 136.11 104,669.97 1,208,542.21 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 10.08 $ 18.91 $ 23.48 ============== ============== ============== Alliance Alliance Alliance Growth Growth Growth 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (3,543.93) (0.34) (4.19) Units Transferred Between Funds ................. (13,468.07) (2,689.29) 440.94 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (17,012.00) (2,689.63) 436.75 Units, at Beginning of the Year ................. 90,246.42 4,155.61 79.35 -------------- -------------- -------------- Units, at End of the Year ....................... 73,234.42 1,465.98 516.10 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 15.00 $ 23.70 $ 23.43 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Growth Alliance Alliance & Growth Growth Income 5 Portfolio 6 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 54,281.73 0.00 13,603.25 Units Withdrawn ................................. (506.45) (41.35) (332,874.08) Units Transferred Between Funds ................. (23,243.09) (443.56) 30,838.11 Units Transferred From (To) AI Life ............. 7,262.30 0.00 5,634.06 -------------- -------------- -------------- Net Increase (Decrease) ......................... 37,794.49 (484.91) (282,798.66) Units, at Beginning of the Year ................. 36,170.77 484.91 1,896,833.03 -------------- -------------- -------------- Units, at End of the Year ....................... 73,965.26 (0.00) 1,614,034.37 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 23.33 $ 23.27 $ 35.08 ============== ============== ============== Alliance Alliance Alliance Growth Growth Growth & & & Income Income Income 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (13,662.40) (3,825.95) (7.27) Units Transferred Between Funds ................. 12,411.67 520.41 788.69 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (1,250.73) (3,305.54) 781.42 Units, at Beginning of the Year ................. 104,448.04 19,646.22 81.60 -------------- -------------- -------------- Units, at End of the Year ....................... 103,197.31 16,340.68 863.02 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 22.17 $ 35.41 $ 35.00 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Growth Growth Alliance & & Growth Income Income Investors 5 Portfolio 6 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 86,585.07 0.00 0.00 Units Withdrawn ................................. (1,631.49) (73.96) (444.71) Units Transferred Between Funds ................. (22,211.43) (793.38) (121,008.46) Units Transferred From (To) AI Life ............. 10,148.20 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... 72,890.35 (867.34) (121,453.17) Units, at Beginning of the Year ................. 39,462.34 867.34 121,453.17 -------------- -------------- -------------- Units, at End of the Year ....................... 112,352.69 (0.00) 0.00 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 34.87 $ 34.80 $ 18.85 ============== ============== ============== Alliance Alliance Growth High Alliance Investors Yield International 2 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 36,088.81 45,881.13 Units Withdrawn ................................. (482.16) (81,100.78) (109,179.08) Units Transferred Between Funds ................. (6,340.46) (535.61) (41,686.83) Units Transferred From (To) AI Life ............. 0.00 214.01 4,080.96 -------------- -------------- -------------- Net Increase (Decrease) ......................... (6,822.62) (45,333.57) (100,903.82) Units, at Beginning of the Year ................. 6,822.62 250,504.53 640,478.13 -------------- -------------- -------------- Units, at End of the Year ....................... 0.00 205,170.96 539,574.31 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 15.89 $ 8.93 $ 12.28 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Alliance Money Money International Market Market 3 Portfolio 1 Portfolio 3 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 4,238.26 0.00 Units Withdrawn ................................. (750.47) (700,957.59) (0.80) Units Transferred Between Funds ................. (356.68) 865,599.23 1,660.33 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (1,107.15) 168,879.90 1,659.53 Units, at Beginning of the Year ................. 3,909.52 1,208,991.25 488.62 -------------- -------------- -------------- Units, at End of the Year ....................... 2,802.37 1,377,871.15 2,148.15 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.39 $ 12.98 $ 13.11 ============== ============== ============== Alliance North Alliance American Alliance Money Government Premier Market Income Growth 5 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 337,315.83 24,676.13 22,902.36 Units Withdrawn ................................. (21,577.20) (105,656.49) (295,647.97) Units Transferred Between Funds ................. (45,192.71) (46,731.52) (212,333.27) Units Transferred From (To) AI Life ............. (47,322.03) 2,818.85 9,328.31 -------------- -------------- -------------- Net Increase (Decrease) ......................... 223,223.89 (124,893.03) (475,750.57) Units, at Beginning of the Year ................. 10,477.62 474,012.67 2,088,447.24 -------------- -------------- -------------- Units, at End of the Year ....................... 233,701.51 349,119.64 1,612,696.67 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.90 $ 16.65 $ 31.14 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Alliance Premier Premier Premier Growth Growth Growth 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (3,652.01) (1,804.45) (36.45) Units Transferred Between Funds ................. (14,280.83) 369.30 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (17,932.84) (1,435.15) (36.45) Units, at Beginning of the Year ................. 42,733.80 9,475.56 462.67 -------------- -------------- -------------- Units, at End of the Year ....................... 24,800.96 8,040.41 426.22 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 13.39 $ 31.44 $ 31.07 ============== ============== ============== Alliance Premier Alliance Alliance Growth Quasar Quasar 5 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 300,957.28 27,512.51 0.00 Units Withdrawn ................................. (2,139.85) (135,397.45) (462.50) Units Transferred Between Funds ................. 359.03 (43,354.70) (315.51) Units Transferred From (To) AI Life ............. 33,730.27 3,283.55 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... 332,906.73 (147,956.09) (778.01) Units, at Beginning of the Year ................. 0.00 866,069.80 13,749.47 -------------- -------------- -------------- Units, at End of the Year ....................... 332,906.73 718,113.71 12,971.46 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 7.71 $ 10.72 $ 10.44 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Short-Term Short-Term Alliance Multi-Market Multi-Market Technology 1 Portfolio 3 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 32,221.88 Units Withdrawn ................................. (76.16) 0.00 (218,656.02) Units Transferred Between Funds ................. (32,663.40) (478.61) (212,510.95) Units Transferred From (To) AI Life ............. 0.00 0.00 9,282.29 -------------- -------------- -------------- Net Increase (Decrease) ......................... (32,739.56) (478.61) (389,662.80) Units, at Beginning of the Year ................. 32,739.56 478.61 1,927,579.01 -------------- -------------- -------------- Units, at End of the Year ....................... (0.00) (0.00) 1,537,916.21 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.35 $ 12.45 $ 18.27 ============== ============== ============== Alliance Alliance Alliance Technology Technology Technology 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (1,196.98) (0.22) (15.89) Units Transferred Between Funds ................. (5,546.62) 626.10 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (6,743.60) 625.88 (15.89) Units, at Beginning of the Year ................. 46,969.17 56.37 252.96 -------------- -------------- -------------- Units, at End of the Year ....................... 40,225.57 682.25 237.07 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 16.43 $ 17.47 $ 18.23 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance Alliance Total Total Technology Return Return 5 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 151,592.67 55,334.35 0.00 Units Withdrawn ................................. (519.75) (245,185.72) (6,332.51) Units Transferred Between Funds ................. 9,908.41 303,730.71 21,262.28 Units Transferred From (To) AI Life ............. 0.00 13,097.38 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... 160,981.33 126,976.72 14,929.77 Units, at Beginning of the Year ................. 0.00 585,294.73 6,734.82 -------------- -------------- -------------- Units, at End of the Year ....................... 160,981.33 712,271.45 21,664.59 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 7.13 $ 21.89 $ 10.83 ============== ============== ============== Alliance U.S. Alliance Alliance Government/ Total Total High Grade Return Return Securities 3 Portfolio 4 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 52,311.32 Units Withdrawn ................................. (0.34) (0.47) (252,413.53) Units Transferred Between Funds ................. 0.00 0.00 268,156.86 Units Transferred From (To) AI Life ............. 0.00 0.00 9,603.15 -------------- -------------- -------------- Net Increase (Decrease) ......................... (0.34) (0.47) 77,657.80 Units, at Beginning of the Year ................. 2,260.95 127.48 541,211.40 -------------- -------------- -------------- Units, at End of the Year ....................... 2,260.61 127.01 618,869.20 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 17.20 $ 21.84 $ 14.75 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Alliance Alliance U.S. U.S. Government/ Government/ Alliance High Grade High Grade Worldwide Securities Securities Privatization 3 Portfolio 5 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 17,117.59 Units Withdrawn ................................. (8.54) (345.99) (84,789.40) Units Transferred Between Funds ................. 1,051.12 (12,388.70) (79,668.53) Units Transferred From (To) AI Life ............. 0.00 0.00 3,643.77 -------------- -------------- -------------- Net Increase (Decrease) ......................... 1,042.58 (12,734.69) (143,696.57) Units, at Beginning of the Year ................. 682.04 23,248.02 493,898.77 -------------- -------------- -------------- Units, at End of the Year ....................... 1,724.62 10,513.33 350,202.20 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 14.89 $ 14.65 $ 14.89 ============== ============== ============== Brinson Brinson Brinson Global High Balanced Income Income 1 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (3.58) (185.94) (214.35) Units Transferred Between Funds ................. (3,046.78) (2,230.08) (5,029.13) Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (3,050.36) (2,416.02) (5,243.48) Units, at Beginning of the Year ................. 3,050.36 2,416.02 5,243.48 -------------- -------------- -------------- Units, at End of the Year ....................... 0.00 0.00 0.00 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 13.54 $ 11.41 $ 10.06 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Brinson Growth Brinson Brinson & Tactical Tactical Income Allocation Allocation 1 Portfolio 1 Portfolio 4 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 3,301.21 0.00 Units Withdrawn ................................. (30.96) (1,470.03) (88.41) Units Transferred Between Funds ................. (1,689.62) 2,413.19 0.00 Units Transferred From (To) AI Life ............. 0.00 (922.19) 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (1,720.58) 3,322.18 (88.41) Units, at Beginning of the Year ................. 1,720.58 36,747.70 947.00 -------------- -------------- -------------- Units, at End of the Year ....................... (0.00) 40,069.88 858.59 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 15.69 $ 14.58 $ 14.56 ============== ============== ============== Dreyfus Small Dreyfus Fidelity Company Stock Asset Stock Index Manager 2 Portfolio 2 Fund 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 112.86 2,719.77 3,103.00 Units Withdrawn ................................. (1,746.72) (10,950.76) (6,992.85) Units Transferred Between Funds ................. (6,927.77) (20,911.58) 7,735.87 Units Transferred From (To) AI Life ............. 166.26 588.98 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (8,395.37) (28,553.59) 3,846.02 Units, at Beginning of the Year ................. 29,093.94 199,237.82 72,561.97 -------------- -------------- -------------- Units, at End of the Year ....................... 20,698.57 170,684.23 76,407.99 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 11.09 $ 17.12 $ 14.40 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Fidelity Fidelity Fidelity High Contrafund Growth Income 2 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 2,260.14 3,449.48 227.53 Units Withdrawn ................................. (684.72) (8,405.27) (1,626.57) Units Transferred Between Funds ................. (8,880.32) (27,586.41) 343.69 Units Transferred From (To) AI Life ............. 688.83 2,058.42 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (6,616.07) (30,483.78) (1,055.35) Units, at Beginning of the Year ................. 54,217.60 231,985.56 37,980.70 -------------- -------------- -------------- Units, at End of the Year ....................... 47,601.53 201,501.78 36,925.35 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.71 $ 16.29 $ 8.29 ============== ============== ============== Fidelity Investment Fidelity Grade Money Fidelity Bond Market Overseas 2 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 72,378.92 0.00 Units Withdrawn ................................. (1,850.40) (168,075.60) (1,646.52) Units Transferred Between Funds ................. 4,000.20 121,862.30 1,507.20 Units Transferred From (To) AI Life ............. 170.56 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... 2,320.36 26,165.62 (139.32) Units, at Beginning of the Year ................. 43,178.98 239,422.60 10,632.12 -------------- -------------- -------------- Units, at End of the Year ....................... 45,499.34 265,588.22 10,492.80 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 13.84 $ 12.38 $ 11.43 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Merrill Merrill Mercury Lynch Lynch HW Basic Core International Value Bond VIP Focus Focus 1 Portfolio 1 Fund 1 Fund VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (1.75) (5.48) (50.53) Units Transferred Between Funds ................. 2,643.74 0.00 (113.22) Units Transferred From (To) AI Life ............. (606.85) 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... 2,035.14 (5.48) (163.75) Units, at Beginning of the Year ................. 0.00 5,486.36 5,858.56 -------------- -------------- -------------- Units, at End of the Year ....................... 2,035.14 5,480.88 5,694.81 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 9.50 $ 14.52 $ 11.73 ============== ============== ============== Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Allocation Growth Markets Focus Focus 1 Fund 1 Fund 1 Fund VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (0.91) (3.71) (1.19) Units Transferred Between Funds ................. 0.00 0.00 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (0.91) (3.71) (1.19) Units, at Beginning of the Year ................. 914.47 3,709.84 1,188.29 -------------- -------------- -------------- Units, at End of the Year ....................... 913.56 3,706.13 1,187.10 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 7.84 $ 10.28 $ 8.26 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
Merrill Merrill Lynch Lynch Lynch Large High International Cap Current Equity Core Income Focus Focus 1 Fund 1 Fund 1 Fund VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (3.06) (0.71) (0.96) Units Transferred Between Funds ................. 0.00 (2,124.60) 597.30 Units Transferred From (To) AI Life ............. 0.00 0.00 (597.30) -------------- -------------- -------------- Net Increase (Decrease) ......................... (3.06) (2,125.31) (0.96) Units, at Beginning of the Year ................. 3,065.38 2,125.31 956.93 -------------- -------------- -------------- Units, at End of the Year ....................... 3,062.32 (0.00) 955.97 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 9.28 $ 10.25 $ 12.15 ============== ============== ============== Van Eck Van Eck Worldwide Worldwide Emerging Hard Markets Assets 2 Fund 2 Fund VARIABLE ANNUITY -------------- -------------- Units Purchased ................................. 79.61 0.00 Units Withdrawn ................................. (2.67) (2,148.01) Units Transferred Between Funds ................. 29.86 0.00 Units Transferred From (To) AI Life ............. 517.69 0.00 -------------- -------------- Net Increase (Decrease) ......................... 624.49 (2,148.01) Units, at Beginning of the Year ................. 1,483.66 3,121.16 -------------- -------------- Units, at End of the Year ....................... 2,108.15 973.15 ============== ============== Unit Value at December 31, 2001 ................. $ 6.61 $ 8.24 ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option.
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) 7. Net Increase (Decrease) in Annuity Units For the quarter ended December 31, 2001, transactions in annuity units of the account were as follows:
Alliance Bernstein Real Alliance Estate Global Alliance Investment Bond Growth 1 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (6.42) (10.08) (428.50) Units Transferred Between Funds ................. 0.00 0.00 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (6.42) (10.08) (428.50) Units, at Beginning of the Year ................. 323.30 513.05 1,771.12 -------------- -------------- -------------- Units, at End of the Year ....................... 316.88 502.97 1,342.62 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 10.54 $ 11.05 $ 14.17 ============== ============== ============== Alliance Growth Alliance & Premier Alliance Income Growth Quasar 1 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (61.89) (47.47) (1,366.65) Units Transferred Between Funds ................. 0.00 0.00 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (61.89) (47.47) (1,366.65) Units, at Beginning of the Year ................. 1,475.02 1,123.09 5,774.40 -------------- -------------- -------------- Units, at End of the Year ....................... 1,413.13 1,075.62 4,407.75 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 29.82 $ 26.47 $ 9.87 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Trilogy and Paradigm products. Footnote 2 are the funds under the Profile product.
Alliance U.S. Government/ Alliance Alliance High Grade Technology Technology Securities 1 Portfolio 2 Portfolio 1 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (37.42) (479.75) (4.97) Units Transferred Between Funds ................. 0.00 0.00 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (37.42) (479.75) (4.97) Units, at Beginning of the Year ................. 804.85 2,044.29 256.39 -------------- -------------- -------------- Units, at End of the Year ....................... 767.43 1,564.54 251.42 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 15.52 $ 15.52 $ 12.53 ============== ============== ============== Alliance Worldwide Fidelity Fidelity Privatization Growth Overseas 1 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY -------------- -------------- -------------- Units Purchased ................................. 0.00 0.00 0.00 Units Withdrawn ................................. (6.20) (1,396.67) (874.13) Units Transferred Between Funds ................. 0.00 0.00 0.00 Units Transferred From (To) AI Life ............. 0.00 0.00 0.00 -------------- -------------- -------------- Net Increase (Decrease) ......................... (6.20) (1,396.67) (874.13) Units, at Beginning of the Year ................. 318.31 5,839.01 3,710.78 -------------- -------------- -------------- Units, at End of the Year ....................... 312.11 4,442.34 2,836.65 ============== ============== ============== Unit Value at December 31, 2001 ................. $ 12.65 $ 15.39 $ 10.80 ============== ============== ============== Footnote 1 are the funds under the Ovation, Ovation Plus, Trilogy and Paradigm products. Footnote 2 are the funds under the Profile product.
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) NOTE 8 - Financial Highlights (Net Assets and Units Outstanding for the Year ended December 31, 2001):
Alliance AIM AIM Bernstein Capital International International Appreciation Equity Value 2 Fund 2 Fund 1 Portfolio VARIABLE ANNUITY(a) ------------ ------------- ------------- Net Assets $ ..................................... 475,271 220,972 73,725 Units, at End of the Year ........................ 44,333.06 22,954.43 7,540.05 Unit Value ....................................... 10.72 9.63 9.78 Total Return %(b) ................................ (24.3) (24.6) (2.2) Ratio of Net Investment Income to Average Net Assets % ........................ 6.5 2.6 0.0 Alliance Alliance Alliance Bernstein Bernstein Bernstein Real Real Small Estate Estate Cap Investment Investment Value 1 Portfolio 3 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ----------- ---------- ------------- Net Assets $ ..................................... 2,690,444 20,370 1,134,898 Units, at End of the Year ........................ 216,931.09 1,630.18 102,467.17 Unit Value ....................................... 12.40 12.50 11.08 Total Return %(b) ................................ 9.3 9.4 10.8 Ratio of Net Investment Income to Average Net Assets % ........................ 3.5 3.7 0.0 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Bernstein Bernstein Alliance Utility Utility Bernstein Income Income Value 1 Portfolio 3 Portfolio 5 Portfolio VARIABLE ANNUITY(a) ----------- ---------- ------------ Net Assets $ ..................................... 6,159,024 1,618 2,123,656 Units, at End of the Year ........................ 332,091.40 90.13 212,874.39 Unit Value ....................................... 18.55 17.95 9.98 Total Return %(b) ................................ (23.6) (23.5) (0.2) Ratio of Net Investment Income to Average Net Assets % ........................ 5.0 13.2 0.0 Alliance Alliance Alliance Global Global Global Dollar Bond Bond Government 1 Portfolio 2 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ----------- --------- ----------- Net Assets $ ..................................... 1,136,421 1,372 1,979,677 Units, at End of the Year ........................ 87,368.37 136.11 104,669.97 Unit Value ....................................... 13.01 10.08 18.91 Total Return %(b) ................................ (1.7) (1.7) 7.8 Ratio of Net Investment Income to Average Net Assets % ........................ 0.0 0.0 11.3 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Growth Growth Growth 1 Portfolio 2 Portfolio 3 Portfolio VARIABLE ANNUITY(a) ---------- --------- ------------- Net Assets $ ..................................... 28,380,513 1,098,284 34,750 Units, at End of the Year ........................ 1,208,542.21 73,234.42 1,465.98 Unit Value ....................................... 23.48 15.00 23.70 Total Return %(b) ................................ (24.5) (24.5) (24.4) Ratio of Net Investment Income to Average Net Assets % ........................ 14.3 15.1 7.0 Alliance Growth Alliance Alliance & Growth Growth Income 4 Portfolio 5 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ---------- --------- ------------- Net Assets $ ..................................... 12,093 1,725,274 56,624,075 Units, at End of the Year ........................ 516.10 73,965.26 1,614,034.37 Unit Value ....................................... 23.43 23.33 35.08 Total Return %(b) ................................ (24.6) (24.7) (1.0) Ratio of Net Investment Income to Average Net Assets % ........................ 4.2 16.1 5.1 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Growth Growth Growth & & & Income Income Income 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY(a) ----------- ----------- ---------- Net Assets $ ..................................... 2,288,150 578,656 30,210 Units, at End of the Year ........................ 103,197.31 16,340.68 863.02 Unit Value ....................................... 22.17 35.41 35.00 Total Return %(b) ................................ (1.1) (0.9) (1.1) Ratio of Net Investment Income to Average Net Assets % ........................ 5.0 4.8 0.9 Alliance Growth Alliance & High Alliance Income Yield International 5 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ----------- ----------- ------------- Net Assets $ ..................................... 3,918,050 1,832,170 6,625,653 Units, at End of the Year ........................ 112,352.69 205,170.96 539,574.31 Unit Value ....................................... 34.87 8.93 12.28 Total Return %(b) ................................ (1.2) 1.6 (23.4) Ratio of Net Investment Income to Average Net Assets % ........................ 5.3 8.3 5.7 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Money Money International Market Market 3 Portfolio 1 Portfolio 3 Portfolio VARIABLE ANNUITY(a) ------------- ------------- ----------- Net Assets $ ..................................... 34,735 17,883,292 28,153 Units, at End of the Year ........................ 2,802.37 1,377,871.15 2,148.15 Unit Value ....................................... 12.39 12.98 13.11 Total Return %(b) ................................ (23.3) 2.1 2.3 Ratio of Net Investment Income to Average Net Assets % ........................ 4.9 3.5 2.6 Alliance North Alliance American Alliance Money Government Premier Market Income Growth 5 Portfolio 1 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ----------- ------------- ------------- Net Assets $ ..................................... 3,014,530 5,814,577 50,224,293 Units, at End of the Year ........................ 233,701.51 349,119.64 1,612,696.67 Unit Value ....................................... 12.90 16.65 31.14 Total Return %(b) ................................ 1.9 2.1 (18.4) Ratio of Net Investment Income to Average Net Assets % ........................ 3.6 8.6 5.5 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Premier Premier Premier Growth Growth Growth 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY(a) ----------- ----------- ----------- Net Assets $ ..................................... 332,198 252,757 13,245 Units, at End of the Year ........................ 24,800.96 8,040.41 426.22 Unit Value ....................................... 13.39 31.44 31.07 Total Return %(b) ................................ (18.4) (18.2) (18.4) Ratio of Net Investment Income to Average Net Assets % ........................ 6.3 5.0 5.2 Alliance Premier Alliance Alliance Growth Quasar Quasar 5 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ---------- ----------- ----------- Net Assets $ ..................................... 2,567,198 7,700,003 135,458 Units, at End of the Year ........................ 332,906.73 718,113.71 12,971.46 Unit Value ....................................... 7.71 10.72 10.44 Total Return %(b) ................................ (22.9) (13.9) (14.0) Ratio of Net Investment Income to Average Net Assets % ........................ 2.5 3.1 4.4 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Technology Technology Technology 1 Portfolio 2 Portfolio 3 Portfolio VARIABLE ANNUITY(a) ------------- ----------- ---------- Net Assets $ ..................................... 28,090,819 660,967 11,922 Units, at End of the Year ........................ 1,537,916.21 40,225.57 682.25 Unit Value ....................................... 18.27 16.43 17.47 Total Return %(b) ................................ (26.3) (26.3) (26.2) Ratio of Net Investment Income to Average Net Assets % ........................ 7.8 8.1 16.2 Alliance Alliance Alliance Total Technology Technology Return 4 Portfolio 5 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ------------- ------------ ----------- Net Assets $ ..................................... 4,321 1,148,444 15,590,809 Units, at End of the Year ........................ 237.07 160,981.33 712,271.45 Unit Value ....................................... 18.23 7.13 21.89 Total Return %(b) ................................ (26.3) (28.7) 0.8 Ratio of Net Investment Income to Average Net Assets % ........................ 7.6 3.9 5.9 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Alliance Alliance Total Total Total Return Return Return 2 Portfolio 3 Portfolio 4 Portfolio VARIABLE ANNUITY(a) ----------- ---------- --------- Net Assets $ ..................................... 234,655 38,887 2,774 Units, at End of the Year ........................ 21,664.59 2,260.61 127.01 Unit Value ....................................... 10.83 17.20 21.84 Total Return %(b) ................................ 0.8 1.0 0.8 Ratio of Net Investment Income to Average Net Assets % ........................ 8.8 4.4 4.3 Alliance Alliance Alliance U.S. U.S. U.S. Government/ Government/ Government/ High Grade High Grade High Grade Securities Securities Securities 1 Portfolio 3 Portfolio 5 Portfolio VARIABLE ANNUITY(a) ----------- ----------- ----------- Net Assets $ ..................................... 9,126,357 25,672 154,028 Units, at End of the Year ........................ 618,869.20 1,724.62 10,513.33 Unit Value ....................................... 14.75 14.89 14.65 Total Return %(b) ................................ 6.4 6.6 6.1 Ratio of Net Investment Income to Average Net Assets % ........................ 4.0 2.6 7.2 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance Brinson Brinson Worldwide Tactical Tactical Privatization Allocation Allocation 1 Portfolio 1 Portfolio 4 Portfolio VARIABLE ANNUITY(a) ------------- ---------- ---------- Net Assets $ ..................................... 5,213,801 584,198 12,497 Units, at End of the Year ........................ 350,202.20 40,069.88 858.59 Unit Value ....................................... 14.89 14.58 14.56 Total Return %(b) ................................ (18.5) (13.6) (13.7) Ratio of Net Investment Income to Average Net Assets % ........................ 6.0 8.1 8.0 Dreyfus Small Dreyfus Fidelity Company Stock Asset Stock Index Manager 2 Portfolio 2 Fund 2 Portfolio VARIABLE ANNUITY(a) ---------- ----------- ----------- Net Assets $ ..................................... 229,547 2,921,961 1,100,492 Units, at End of the Year ........................ 20,698.57 170,684.23 76,407.99 Unit Value ....................................... 11.09 17.12 14.40 Total Return %(b) ................................ (2.9) (13.4) (5.4) Ratio of Net Investment Income to Average Net Assets % ........................ 0.1 1.5 5.5 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Fidelity Fidelity Fidelity High Contrafund Growth Income 2 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ---------- ----------- ----------- Net Assets $ ..................................... 604,888 3,282,357 306,107 Units, at End of the Year ........................ 47,601.53 201,501.78 36,925.35 Unit Value ....................................... 12.71 16.29 8.29 Total Return %(b) ................................ (13.5) (18.8) (12.9) Ratio of Net Investment Income to Average Net Assets % ........................ 3.7 7.7 13.2 Fidelity Investment Fidelity Grade Money Fidelity Bond Market Overseas 2 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ---------- ----------- ----------- Net Assets $ ..................................... 629,859 3,287,656 119,916 Units, at End of the Year ........................ 45,499.34 265,588.22 10,492.80 Unit Value ....................................... 13.84 12.38 11.43 Total Return %(b) ................................ 7.0 2.7 (22.3) Ratio of Net Investment Income to Average Net Assets % ........................ 5.1 4.1 17.3 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Merrill Merrill Mercury Lynch Lynch HW Basic Core International Value Bond VIP Focus Focus 1 Portfolio 1 Fund 1 Fund VARIABLE ANNUITY(a) -------------- -------- -------- Net Assets $ ..................................... 19,341 79,607 66,793 Units, at End of the Year ........................ 2,035.14 5,480.88 5,694.81 Unit Value ....................................... 9.50 14.52 11.73 Total Return %(b) ................................ (14.1) 2.8 5.2 Ratio of Net Investment Income to Average Net Assets % ........................ 4.7 6.0 5.7 Merrill Merrill Merrill Lynch Lynch Lynch Developing Global Global Capital Allocation Growth Markets Focus Focus 1 Fund 1 Fund 1 Fund VARIABLE ANNUITY(a) ----------- ----------- ---------- Net Assets $ ..................................... 7,158 38,106 9,807 Units, at End of the Year ........................ 913.56 3,706.13 1,187.10 Unit Value ....................................... 7.84 10.28 8.26 Total Return %(b) ................................ 0.1 (10.1) (24.1) Ratio of Net Investment Income to Average Net Assets % ........................ 0.9 1.4 0.9 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Merrill Merrill Lynch Lynch Large Van Eck High Cap Worldwide Current Core Emerging Income Focus Markets 1 Fund 1 Fund 2 Fund VARIABLE ANNUITY(a) --------- -------- ----------- Net Assets $ ..................................... 28,428 11,618 13,924 Units, at End of the Year ........................ 3,062.32 955.97 2,108.15 Unit Value ....................................... 9.28 12.15 6.61 Total Return %(b) ................................ 2.6 (8.7) (3.2) Ratio of Net Investment Income to Average Net Assets % ........................ 11.0 0.8 0.0 Van Eck Worldwide Hard Assets 2 Fund VARIABLE ANNUITY(a) ---------- Net Assets $ ..................................... 8,015 Units, at End of the Year ........................ 973.15 Unit Value ....................................... 8.24 Total Return %(b) ................................ (11.7) Ratio of Net Investment Income to Average Net Assets % ........................ 1.7 Footnote 1 are the funds under the Ovation, Ovation Plus, Ovation Advisor, Trilogy, Paradigm products. Footnote 2 are the funds under the Profile product. Footnote 3 are the funds under the Alliance Gallery product. Footnote 4 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm and Profile products that have elected the Accidental Death Benefit option. Footnote 5 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subjected to 12B-1 fees. Footnote 6 are the funds under the Ovation Plus, Ovation Advisor, Trilogy, Paradigm, and Profile products that are subject to 12B-1 fees and have elected the Accidental Death Benefit option. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK (AI LIFE) VARIABLE ACCOUNT A NOTES TO FINANCIAL STATEMENTS (continued) NOTE 9 - Financial Highlights (Net Assets and Units Outstanding for the Year ended December 31, 2001):
Alliance Bernstein Real Alliance Estate Global Alliance Investment Bond Growth 1 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ------------ ---------- ---------- Net Assets $ ..................................... 3,340 5,560 19,023 Units, at End of the Year ........................ 316.88 502.97 1,342.62 Unit Value ....................................... 10.54 11.05 14.17 Total Return %(b) ................................ 4.1 (6.4) (28.2) Ratio of Net Investment Income to Average Net Assets % ........................ 0.0 0.0 0.0 Alliance Growth Alliance & Premier Alliance Income Growth Quasar 1 Portfolio 1 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ---------- ---------- --------- Net Assets $ ..................................... 42,133 28,469 43,487 Units, at End of the Year ........................ 1,413.13 1,075.62 4,407.75 Unit Value ....................................... 29.82 26.47 9.87 Total Return %(b) ................................ (5.8) (22.3) (18.1) Ratio of Net Investment Income to Average Net Assets % ........................ 0.0 0.0 0.0 Footnote 1 are the funds under the Ovation, Ovation Plus, Trilogy and Paradigm products. Footnote 2 are the funds under the Profile product. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
Alliance U.S. Government/ High Alliance Alliance Grade Technology Technology Securities 1 Portfolio 2 Portfolio 1 Portfolio VARIABLE ANNUITY(a) ----------- ----------- ------------- Net Assets $ ..................................... 11,913 24,288 3,151 Units, at End of the Year ........................ 767.43 1,564.54 251.42 Unit Value ....................................... 15.52 15.52 12.53 Total Return %(b) ................................ (29.8) (29.8) 1.3 Ratio of Net Investment Income to Average Net Assets % ........................ 0.0 0.0 0.0 Alliance Worldwide Fidelity Fidelity Privatization Growth Overseas 1 Portfolio 2 Portfolio 2 Portfolio VARIABLE ANNUITY(a) ------------- ---------- ---------- Net Assets $ ..................................... 3,949 68,367 30,628 Units, at End of the Year ........................ 312.11 4,442.34 2,836.65 Unit Value ....................................... 12.65 15.39 10.80 Total Return %(b) ................................ (22.4) (22.7) (26.0) Ratio of Net Investment Income to Average Net Assets % ........................ 0.0 0.0 0.0 Footnote 1 are the funds under the Ovation, Ovation Plus, Trilogy and Paradigm products. Footnote 2 are the funds under the Profile product. (a)Expenses as a percent of net assets are 1.40% (1.45% if Accidental Death Benefit Option selected) excluding expenses of the underlying funds, deductions from premiums, deductions from cash value and surrender charges. (b)Total Return % is calculated by taking the change in unit value from year end 2000 to 2001 divided by the year end 2000 unit value, unless the fund opened in 2001, in which case the initial unit value replaces the year end 2000 unit value.
PART C OTHER INFORMATION Item 24. Financial Statements and Exhibits. (a) Financial Statements Audited Statements of American International Life Assurance Company of New York for the year ended December 31, 2001, are included in Part B of the registration statement. (b) Exhibits 1. Certificate of Resolution for American International Life Assurance Company of New York dated June 5, 1986, authorizing the issuance and sale of variable and fixed annuity contracts.* 2. N/A 3. (a) Principal Underwriter's Agreement between American International Life Assurance Company of New York and American International Fund Distributors, dated August 1, 1988;* (b) Broker/Dealer Agreement between American International Life Assurance Company of New York and American International Fund Distributors, dated August 1, 1988;* (c) Selling Agreement between American International Life Assurance Company of New York, AIG Life Insurance Company and AIG Equity Sales Corporation, dated October 1998* (d) Distribution Agreement between American International Life Assurance Company of New York, AIG Life Insurance Company and Alliance Fund Distributors, dated June 11, 1991;* (e) Buy Sell Agreement between American International Life Assurance Company of New York and Morgan Stanley Universal Funds, Inc., Morgan Stanley Asset Management, Inc., Miller Anderson & Sherrerd, dated May 15, 1998 **** (f) Buy Sell Agreement between American International Life Assurance Company of New York and The Vanguard Group, Inc. dated December 27, 2001 **** (g) Form of Buy Sell Agreement between American International Life Assurance Company of New York and Alliance Global Investor Services, Inc. dated February, 2002##### (h) Form of Buy Sell Agreement between American International Life Assurance Company of New York and American Funds Distributors, Inc. dated February, 2002##### (i) Form of Buy Sell Agreement between American International Life Assurance Company of New York and Franklin Templeton Funds dated February, 2002##### (j) Form of Buy Sell Agreement between American International Life Assurance Company of New York and Liberty Funds Services, Inc. dated February, 2002##### (k) Form of Buy Sell Agreement between American International Life Assurance Company of New York and MFS Fund Distributors, Inc. dated February, 2002##### (l) Form of Buy Sell Agreement between American International Life Assurance Company of New York and Oppenheimer Funds Distributor, Inc. dated February, 2002##### (m) Form of Buy Sell Agreement between American International Life Assurance Company of New York and Putnam Retail management, L.P. dated February, 2002##### 4. (a) Form of Individual Variable Annuity Single Purchase Payment Policy (45649 - 4/87)* (b) Form of Individual Variable Annuity Policy (21VAN0896NY)* (c) Form of Group Variable Annuity Policy (21GVAN897NY)* (d) Form of Variable Annuity Certificate of Coverage(26GVAN897NY)* (e) Form of Group Immediate Variable Annuity Contract (21GVIA1000)## (f) Form of Individual Variable Annuity Policy (26GVIA1000) and Certificate Schedule## (g) Form of Group Variable Annuity Group Contract (21GVAN999)### (h) Form of Variable Annuity Certificate of Coverage (26GVAN999NY)### (i) Form of Immediate Variable Annuity Certificate of Coverage and Contract (26GVIA1000)**** (j) Form of Variable Annuity Certificate of Coverage and Contract (26GNSVAN800)#### 5. (a) Form of Single Premium Variable Annuity application (52971 11/96)* (b) Form of Group Variable Annuity application (24GVAN897)* 6. (a) By-Laws of American International Life Assurance Company of New York as amended on 3/25/75;* (b) Certificate of Incorporation of American International Life Assurance Company of New York, dated March 5, 1962;* (c) Certificate of Amendment of the Certificate of Incorporation of American International Life Assurance Company of New York, dated February 4, 1972;* (d) Certificate of Amendment of the Certificate of Incorporation of American International Life Assurance Company of New York, dated January 18, 1985;* (e) Certificate of Amendment of the Certificate of Incorporation of American International Life Assurance Company of New York, dated June 1, 1987;* (f) Certificate of Amendment of the Certificate of Incorporation of American International Life Assurance Company of New York, dated March 22, 1989;* (g) Certificate of Amendment of the Certificate of Incorporation of American International Life Assurance Company of New York, dated June 27, 1991* (7) N/A (8) Delaware Valley Financial Services, Inc. Administrative Agreement, appointing Delaware Valley Financial Services, Inc. by AIG Life Insurance Company and American International Life Assurance Company of New York, dated October 1, 1986* (9) Opinion and Consent of Counsel. (filed electronically herewith) (10) (a) Consent of Morgan, Lewis & Bockius LLP. (filed electronically herewith) (b) Consent of Independent Accountants. (filed electronically herewith) (11) N/A (12) N/A (13) Form of Schedule for Performance Computations# (14) (a) Powers of Attorney ** (b) Power of Attorney *** (c) Power of Attorney (filed electronically herewith) * Incorporated by reference to Registrant's Post-Effective Amendment No. 10 to Form N-4 (File No. 33-39170), filed on October 27, 1998. ** Incorporated by reference to Registrant's Post-Effective Amendment No. 2 to Form N-4 (File No. 33-90686) filed on May 2, 1997. *** Incorporated by reference to Registrant's Post-Effective Amendment No. 12 to Form N-4 (File No. 33-39170) filed on May 1, 2000. **** Incorporated by reference to Registrant's Registration Statement on Form N-4 (File No. 333-63412) filed on December 28, 2001. # Incorporated by reference to Registrant's Registration Statement Post-Effective Amendment No. 2 to Form N-4 (File No. 333-63730) filed on October 29, 2001. ## Incorporated by reference to Registrant's Registration Statement to N.4 (File No. 33-63412) filed on June 20, 2001. ### Incorporated by reference to Registrant's Registration Statement on Form N-4 (File No. 333-63730) filed on June 25, 2001. #### Incorporated by reference to Registrant's Registration Statement on Form N-4 (File No. 333-67866) filed on August 17, 2001. ##### Incorporated by reference to Registrant's Registration Statement on Form N-4 (File No. 333-63412) filed on December 28, 2001. Item 25. Directors and Officers of the Depositor. The following are the Principal Officers and Directors of the Company: OFFICERS AND DIRECTORS ---------------------- NAME TITLE ---- ----- Rodney O. Martin, Jr.(1) Chairman of the Board of Directors and President Nicholas Alexander O'Kulich(2) Vice Chairman of the Board of Directors David L. Herzog(1) Executive Vice President and Chief Financial Officer and Director R. Kendall Nottingham(4) Director M. Bernard Aidinoff(1) Director Gary D. Reddick(1) Executive Vice President and Director Robert M. Beuerlein(1) Senior Vice President and Chief Actuary Pauletta P. Cohn(1) Senior Vice President and Co-General Counsel David J. Dietz(5) Senior Vice President and Director Marion E. Fajen(6) Director Patrick J. Foley(7) Director Cecil C. Gamwell, III(8) Director Jack R. Harnes(2) Director John I. Howell(9) Director William M. Keeler(10) Director Robert Michael Goldbloom(3) Senior Vice President Robert F. Herbert, Jr.(1) Senior Vice President and Director Kyle L. Jennings(1) Senior Vice President and Co-General Counsel Arshad Hasan Qureshi(4) Senior Vice President Kenneth D. Walma(4) Vice President Elizabeth Margaret Tuck(2) Secretary (1) Business Address is 2929 Allen Parkway, Houston, Texas 77019. (2) Business Address is 70 Pine Street, New York, New York 10270. (3) Business Address is 80 Pine Street, New York, New York 10005. (4) Business Address is One Alico Plaza, 600 King Street, Wilmington, Delaware 19901. (5) Business Address is 390 Park Avenue, New York, New York 10022. (6) Business Address is 5608 North Waterbury Road, Des Moines, Iowa 50312. (7) Business Address is 88 Pine Street, New York, New York 10005. (8) Business Address is 419 West Beach Road, Charleston, Rhode Island 02813. (9) Business Address is 263 Glenville Road, Greenwich, Connecticut 06831. (10) Business Address is 3600 Route 66, Neptune, New Jersey 07757. Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant Incorporated by reference to the Form 10-K, Exhibit 21 filed by American International Group (parent of registrant) for the year ended December 31, 2001. Item 27. Number of Contractowners Not applicable. Item 28. Indemnification Incorporated by reference to Principal Underwriter's Agreement between AIG Life Insurance Company and American International Fund Distributors, dated August 1, 1988, and filed electronically on October 27, 1998 as an exhibit to post-effective amendment no. 12 to the registration statement on Form N-4 (File No. 33-39171). Item 29. Principal Underwriter (a) AIG Equity Sales Corp., the principal underwriter for Variable Account A, also acts as the principal underwriter for other separate accounts of the Depositor, and for the separate accounts of AIG Life Insurance Company, an affiliated company. (b) The following information is provided for each director and officer of the principal underwriter: Name and Principal Business Address* Positions and Offices with Underwriter ------------------------------------ -------------------------------------- Kevin Clowe Director Ernest T. Patrikis Director Walter R. Josiah Director and President Ronald Alan Latz Director, Vice President and Financial Operations Principal Jerome Thomas Muldowney Director Helen Stefanis Director Martinnette J. Witrick Vice President and Compliance Director Kenneth F. Judkowitz Vice President Elizabeth M. Tuck Secretary * Business address is 70 Pine Street, New York, New York 10270. (c) Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commission Redemption Commissions Compensation ----------- ---------- ---------- ----------- ------------ AIG Equity $0 $0 $0 $0 Sales Corp. Item 30. Location of Accounts and Records. Kenneth F. Judkowitz, Vice President of American International Life Assurance Company of New York, whose address is 70 Pine Street, New York, New York 10270, maintains physical possession of the accounts, books, or documents of Variable Account A required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder. Item 31. Management Services. Not applicable. Item 32. Undertakings (a) Registrant hereby undertakes 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 16 months old for so long as payments under the variable annuity contracts may be accepted. (b) Registrant hereby undertakes 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 postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Registrant represents that in connection with 403(b) Plans, it is relying on the November 28, 1988 no-action letter issued by the SEC to the American Council of Life Insurance. (e) Registrant represents that the fees and charges deducted under the contracts offered by this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by 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 Registration Statement and has caused this Registration Statement to be signed on its behalf, in the City of Wilmington, and State of Delaware on this day of 1st day of May, 2002. Variable Account A By: American International Life Assurance Company of New York By: /s/ Kenneth D. Walma ---------------------------------------- Kenneth D. Walma, Vice President American International Life Assurance Company of New York By: /s/ Kenneth D. Walma ---------------------------------------- Kenneth D. Walma, Vice President As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
OFFICERS AND DIRECTORS ---------------------- NAME TITLE ---- ----- Rodney O. Martin, Jr.* Chairman of the Board of May 1, 2002 --------------------------- Directors and President Rodney O. Martin, Jr. Nicholas Alexander O'Kulich** Vice Chairman of the Board of May 1, 2002 --------------------------- Directors Nicholas Alexander O'Kulich David L. Herzog* Executive Vice President and May 1, 2002 --------------------------- Chief Financial Officer and David L. Herzog Director R. Kendall Nottingham** Director May 1, 2002 --------------------------- R. Kendall Nottingham M. Bernard Aidinoff* Director May 1, 2002 --------------------------- M. Bernard Aidinoff Gary D. Reddick* Executive Vice President and May 1, 2002 --------------------------- Director Gary D. Reddick David J. Dietz* Senior Vice President and May 1, 2002 --------------------------- Director David J. Dietz Marion E. Fajen** Director May 1, 2002 --------------------------- Marion E. Fajen Patrick J. Foley** Director May 1, 2002 --------------------------- Patrick J. Foley Cecil C. Gamwell, III** Director May 1, 2002 --------------------------- Cecil C. Gamwell, III Jack R. Harnes** Director May 1, 2002 --------------------------- Jack R. Harnes John I. Howell** Director May 1, 2002 --------------------------- John I. Howell William M. Keeler** Director May 1, 2002 --------------------------- William M. Keeler Robert F. Herbert, Jr.* Senior Vice President and May 1, 2002 --------------------------- Director Robert F. Herbert, Jr. Elizabeth Margaret Tuck** Secretary May 1, 2002 --------------------------- Elizabeth Margaret Tuck *By: /s/ Pauletta P. Cohn ---------------------- Pauletta P. Cohn Attorney in Fact **By: /s/ Kenneth D. Walma --------------------------- Kenneth D. Walma Attorney in Fact ---------- * Have Powers of Attorney
INDEX TO EXHIBITS Exhibit b(9) Opinion and Consent of Counsel b(10)(a) Consent of Morgan, Lewis & Bockius LLP b(10)(b) Consent of Independent Accountants b(14)(c) Powers of Attorney