485BPOS 1 n4access.txt REGISTRATION STATEMENT As Filed with the Securities and Exchange Commission on February 12, 2002 Registration Nos. 333-28769, 811-5626 ----------------------------------------------------------------------------- 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. 15 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 145 [X] (Check appropriate box or boxes) SEPARATE ACCOUNT B (Exact Name of Registrant) GOLDEN AMERICAN LIFE INSURANCE COMPANY (Name of Depositor) 1475 Dunwoody Drive West Chester, Pennsylvania 19380-1478 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (610) 425-3400 Marilyn Talman, Esq. Golden American Life Insurance Company 1475 Dunwoody Drive West Chester, PA 19380-1478 (610) 425-3516 (Name and Address of Agent for Service) Approximate Date of Proposed Public Offering: As soon as practical after the effective date of the Registration Statement It is proposed that this filing will become effective (check appropriate box): [X] immediately upon filing pursuant to paragraph (b) of Rule 485 [ ] on (date) pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on (date) pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Being Registered: Deferred Combination Variable and Fixed Annuity Contracts PART A ING VARIABLE ANNUITIES Golden American Life Insurance Company Separate Account B of Golden American Life Insurance Company Profile of GOLDENSELECT ACCESS/R/ Deferred Combination Variable and Fixed Annuity Contract February 12, 2002 1. The Annuity Contract The Contract offered in this prospectus is a deferred combination variable and fixed annuity contract between you and Golden American Life Insurance Company. The Contract provides a means for you to invest on a tax-deferred basis in (i) one or more of the mutual fund investment portfolios through our Separate Account B and/or (ii) in a Fixed Account of Golden American with guaranteed interest periods. The mutual fund portfolios are listed on page 4. The Fixed Account is described in a separate prospectus titled GoldenSelect Fixed Account. Generally, the investment portfolios are designed to offer a better return than the Fixed Account. However, this is NOT guaranteed. You may not make any money, and you can even lose the money you invest. The Contract offers a choice of death benefit options. You may choose the Standard Death Benefit or one of the enhanced death benefit options, described on page 10. Your choice of death benefit will affect your mortality and expense risk charge. Subject to state availability, you may also elect, for an additional charge, an earnings multiplier benefit rider. Please see page 5 for a description of the applicable charge. The earnings multiplier benefit rider provides a separate death benefit in addition to the death benefit option you select. The earnings multiplier benefit rider is available for non-qualified contracts only. For a description of the earnings multiplier benefit rider, please see page 11. To find out about availability, check with our Customer Service Center. Access Profile Prospectus begins after 121360 Page 14 of this Profile Your death benefit and mortality and expense risk charge depend on the category of contract owners to which you belong and on the death benefit that you choose. There are four categories of contract owners covered by this prospectus. For ease of reference, they are called Pre-2000, Yr-2000, Yr-2001 and May-2001 contract owners. If you are a contract owner, the category of your contract is indicated on your quarterly statements beginning with the June 30, 2001 statement. If you are unsure which category applies to you, please call our Customer Service Center. The telephone number is (800) 366-0066. The following is a general description of the categories: Pre-2000: a) all contracts purchased prior to February 1, 2000; b) contracts purchased on or after February 1, 2000 which offer three death benefit options (as approved in the state of issue at the time of purchase); Yr-2000: Contracts purchased on or after February 1, 2000 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Max 7 Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit to age 80; Yr-2001: Contracts purchased on or after January 2, 2001 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Annual Ratchet Enhanced Death Benefit to age 90, and contain new Special Funds language; May-2001: Contracts purchased on or after May 1, 2001 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Annual Ratchet Enhanced Death Benefit to age 90, and have an earnings multiplier option benefit (in states where approved). Other than as specifically noted, this Profile and Prospectus describe the benefits applicable to all categories of contract owners. Subject to state availability, you may also elect, for an additional charge, one of three other optional riders offering specified benefits featured in the prospectus for the contract. The three optional benefit riders are listed on page 12. The optional benefit riders can provide protection under certain circumstances in the event that unfavorable investment performance has lowered your value below certain targeted growth. These riders do not guarantee the performance of your investment portfolios. Separate charges are assessed for the optional riders. Please see page 5 for a description of the applicable charges. You should carefully analyze and completely evaluate each rider before you purchase any. Be aware that the benefit provided by any of the riders will be affected by certain later actions you may take -- such as withdrawals and transfers. The riders are not available to Contracts issued before January 2, 2001. To find out about availability, check with our Customer Service Center. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the income phase. The accumulation phase is the period between the contract date and the date on which you start receiving the annuity payments under your Contract. The amounts you accumulate during the accumulation phase will determine the amount of annuity payments you will receive. The income phase begins on the annuity start date, which is the date you start receiving regular annuity payments from your Contract. You determine (1) the amount and frequency of premium payments, (2) the investments, (3) transfers between investments, (4) the type of annuity to be paid after the accumulation phase, (5) the beneficiary who will receive the death benefits, (6) the type of death benefit, and (7) the amount and frequency of withdrawals. 121360 2 Access Profile 2. Your Annuity Payments (The Income Phase) Annuity payments are the periodic payments you will begin receiving on the annuity start date. You may choose one of the following annuity payment options: ----------------------------------------------------------------------------------------------------------------- ANNUITY OPTIONS ----------------------------------------------------------------------------------------------------------------- Option 1 Income for a fixed Payments are made for a specified number of years to you or your period beneficiary. ------------------- ----------------------- --------------------------------------------------------------------- Option 2 Income for life with Payments are made for the rest of your life or longer for a a period certain specified period such as 10 or 20 years or until the total amount used to buy this option has been repaid. This option comes with an added guarantee that payments will continue to your beneficiary for the remainder of such period if you should die during the period. ------------------- ----------------------- --------------------------------------------------------------------- Option 3 Joint life income Payments are made for your life and the life of another person (usually your spouse). ------------------- ----------------------- --------------------------------------------------------------------- Option 4 Annuity plan Any other annuitization plan that we choose to offer on the annuity start date. ------------------- ----------------------- ---------------------------------------------------------------------
Annuity payments under Options 1, 2 and 3 are fixed. Annuity payments under Option 4 may be fixed or variable. If variable and subject to the Investment Company Act of 1940, it will comply with the requirements of such Act. Once you elect an annuity option and begin to receive payments, it cannot be changed. 3. Purchase (Beginning of the Accumulation Phase) You may purchase the Contract with an initial payment of $10,000 or more ($1,500 for a qualified Contract) up to and including age 90. You may make additional payments of $500 or more ($50 for a qualified Contract) at any time before you turn 85 during the accumulation phase. Under certain circumstances, we may waive the minimum initial and additional premium payment requirement. Any initial or additional premium payment that would cause the contract value of all annuities that you maintain with us to exceed $1,000,000 requires our prior approval. Who may purchase this Contract? The Contract may be purchased by individuals as part of a personal retirement plan (a "non-qualified Contract"), or as a Contract that qualifies for special tax treatment when purchased as either an Individual Retirement Annuity (IRA) or in connection with a qualified retirement plan (each a "qualified Contract"). IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other benefits including death benefits and the ability to receive a lifetime income. See "Expenses" in this profile. The Contract is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes. The tax-deferred feature is more attractive to people in high federal and state tax brackets. YOU SHOULD NOT BUY THIS CONTRACT: (1) IF YOU ARE LOOKING FOR A SHORT-TERM INVESTMENT; (2) IF YOU CANNOT RISK GETTING BACK LESS MONEY THAN YOU PUT IN; OR (3) IF YOUR ASSETS ARE IN A PLAN WHICH PROVIDES FOR TAX-DEFERRAL AND YOU SEE NO OTHER REASON TO PURCHASE THIS CONTRACT. 121360 3 Access Profile 4. THE INVESTMENT PORTFOLIOS You can direct your money into (1) the Fixed Account, and/or (2) into any one or more of the following mutual fund investment portfolios through our Separate Account B. The investment portfolios are described in the prospectuses for the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Prudential Series Fund, the Pilgrim Variable Products Trust, the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust and the INVESCO Variable Investment Funds, Inc. Keep in mind that while an investment in the Fixed Account earns a fixed interest rate, an investment in any investment portfolio, depending on market conditions, may cause you to make or lose money. The investment portfolios available under your Contract are: THE GCG TRUST Liquid Asset Series Real Estate Series Capital Growth Series Limited Maturity Bond Series Value Equity Series Capital Appreciation Series Core Bond Series (formerly Investors Series Small Cap Series Global Fixed Income Series) International Equity Series Mid-Cap Growth Series Fully Managed Series Rising Dividends Series Strategic Equity Series Total Return Series Managed Global Series Special Situations Asset Allocation Growth Series Large Cap Value Series Growth Series Equity Income Series Hard Assets Series Developing World Series All Cap Series Diversified Mid-Cap Series Internet TollkeeperSM Series Growth and Income Series Research Series THE PIMCO VARIABLE INSURANCE TRUST PILGRIM VARIABLE INSURANCE TRUST PIMCO High Yield Bond Portfolio (FORMERLY ING VARIABLE INSURANCE TRUST) PIMCO StocksPLUS Growth Pilgrim VIT Worldwide Growth and Income Portfolio (formerly Pilgrim Global Brand Names Fund) PRUDENTIAL SERIES FUND PILGRIM VARIABLE PRODUCTS TRUST Prudential Jennison Portfolio Pilgrim VP MagnaCap Portfolio SP Jennison International Growth Pilgrim VP SmallCap Opportunities Portfolio Portfolio Pilgrim VP Growth Opportunities Portfolio PROFUNDS ProFund VP Bull AIM VARIABLE INSURANCE FUNDS ProFund VP Small-Cap AIM V.I. Dent Demographic Trends Fund ProFund VP Europe 30 INVESCO VARIABLE INVESTMENT FUNDS, INC. PIONEER VARIABLE CONTRACTS TRUST INVESCO VIF-- Financial Services Fund Pioneer Fund VCT Portfolio INVESCO VIF-- Health Sciences Fund Pioneer Mid-Cap Value VCT Portfolio INVESCO VIF-- Utilities Fund
Internet TollkeeperSM is a service mark of Goldman, Sachs & Co. RESTRICTED FUNDS. We may designate any investment option as a Restricted Fund and limit the amount you may allocate or transfer to a Restricted Fund. We may establish any such limitation, at our discretion, as a percentage of premium or contract value or as a specified dollar amount and change the limitation at any time. Currently, we have not designated any investment option as a Restricted Fund. We may, with 30 days notice to you, designate any investment portfolio as a Restricted Fund or change the limitations on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. For more detailed information, see "Restricted Funds" in the prospectus for the Contract. 121360 4 Access Profile 5. EXPENSES The Contract has insurance features and investment features, and there are charges related to each. For the insurance features, the Company deducts a mortality and expense risk charge, an asset-based administrative charge, and an annual contract administrative charge of $40. We deduct the mortality and expense risk charge and the asset-based administrative charges daily directly from your contract value in the investment portfolios. The mortality and expense risk charge for May-2001 contract owners (depending on the death benefit you choose) and the asset-based administrative charge, on an annual basis, are as follows: ---------------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH BENEFIT ANNUAL RATCHET 7% SOLUTION MAX 7 ---------------------------------------------------------------------------------------- Mortality & Expense Risk Charge 1.65% 1. 90% 2.00% 2.10% Asset-Based Administrative Charge 0.15% 0.15% 0.15% 0.15% Total 1.80% 2.05% 2.15% 2.25% -----------------------------------------------------------------------------------------
Please see Appendix C of the prospectus for a description of the death benefits and mortality and expense risk charges for Pre-2000, Yr-2000 and Yr-2001 contract owners. EARNINGS MULTIPLIER BENEFIT RIDER CHARGES If you choose to purchase the earnings multiplier benefit rider, we will deduct a separate quarterly charge for the rider on each quarterly contract anniversary and pro rata when the rider terminates. We deduct the rider charge directly from your contract value in the investment portfolios; if the value in the investment portfolios is insufficient, the rider charge will be deducted from the Fixed Account. The quarterly rider charge is 0.075% of the contract value (0.30% annually). OPTIONAL BENEFIT RIDER CHARGES If you choose to purchase one of the other optional benefit riders we offer, we will deduct a separate quarterly charge for the rider on each quarterly contract anniversary and pro-rata when the rider terminates. We deduct the rider charges directly from your contract value in the investment portfolios; if the value in the investment portfolios is insufficient, rider charges will be deducted from the Fixed Account. The rider charges are as follows: Minimum Guaranteed Accumulation Benefit (MGAB) rider Waiting Period Quarterly Charge -------------- ---------------- 10 Year.......................... 0.125% of the MGAB Charge Base*(0.50% annually) 20 Year.......................... 0.125% of the MGAB Charge Base (0.50% annually) Minimum Guaranteed Income Benefit (MGIB) rider MGIB Rate Quarterly Charge --------- ---------------- 7%............................... 0.125% of the MGIB Charge Base* (0.50% annually) Minimum Guaranteed Withdrawal Benefit (MGWB) rider Quarterly Charge ---------------- 0.125% of the MGWB Eligible Payment Amount* (0.50% annually)
* See prospectus for a description. We do not deduct any surrender charges for withdrawals. 121360 5 Access Profile Each investment portfolio has charges for investment management fees and other expenses. These charges, which vary by investment portfolio, currently range from 0.55% to 1.86% annually (see following table) of the portfolio's average daily net asset balance. If you withdraw money from your Contract, or if you begin receiving annuity payments, we may deduct a premium tax of 0%-3.5% to pay to your state. The following table is designed to help you understand the Contract charges. The "Total Annual Insurance Charges" column is divided into two: One part reflects the maximum mortality and expense risk charge (based on the Max 7 Enhanced Death Benefit), the asset-based administrative charge, the annual contract administrative charge as 0.05% (based on an average contract value of $75,000), the earnings multiplier benefit rider charge of 0.30%, and the highest optional rider charge assumed to be 0.75%, where the rider base is equal to the initial premium and increases by 7% each year. The second part reflects the same insurance charges, but without any rider charges. The "Total Annual Investment Portfolio Charges" column reflects the portfolio charges for each portfolio and is based on actual expenses as of December 31, 2000, except for (i) portfolios that commenced operations during 2000 or 2001 where the charges have been estimated, and (ii) newly formed portfolios where the charges have been estimated. The column "Total Annual Charges" reflects the sum of the previous two columns. The columns under the heading "Examples" show you how much you would pay under the Contract for a 1-year period and for a 10-year period. As required by the Securities and Exchange Commission, the examples assume that you invested $1,000 in a Contract that earns 5% annually and that you withdraw your money at the end of Year 1 or at the end of Year 10 (based on the Max 7 Enhanced Death Benefit). For Years 1 and 10, the examples show the total annual charges assessed during that time and assume that you have elected the Max 7 Enhanced Death Benefit. For these examples, the premium tax is assumed to be 0%. 121360 6 Access Profile ------------------------------------------------------------------------------------------------------------------------- EXAMPLES: --------- TOTAL ANNUAL TOTAL ANNUAL TOTAL CHARGES AT THE END OF: INSURANCE CHARGES CHARGES 1 YEAR 10 YEARS ---------------- ---------------- -------------- --------------- WITH W/O TOTAL ANNUAL WITH W/O WITH W/O WITH W/O THE ANY INVESTMENT THE ANY THE ANY THE ANY RIDER RIDER PORTFOLIO RIDER RIDER RIDER RIDER RIDER RIDER INVESTMENT PORTFOLIO CHARGES CHARGE CHARGES CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE ------------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset 3.35% 2.30% 0.55% 3.90% 2.85% $39 $29 $412 $318 Limited Maturity Bond 3.35% 2.30% 0.55% 3.90% 2.85% $39 $29 $412 $318 Core Bond 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 Fully Managed 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Total Return 3.35% 2.30% 0.89% 4.24% 3.19% $43 $32 $440 $349 Asset Allocation Growth 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 Equity Income 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 All Cap 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 Growth and Income 3.35% 2.30% 1.11% 4.46% 3.41% $45 $34 $458 $369 Real Estate 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Value Equity 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Investors 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 International Equity 3.35% 2.30% 1.26% 4.61% 3.56% $46 $36 $470 $383 Rising Dividends 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Managed Global 3.35% 2.30% 1.26% 4.61% 3.56% $46 $36 $470 $383 Large Cap Value 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 Hard Assets 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Diversified Mid-Cap 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 Research 3.35% 2.30% 0.89% 4.24% 3.19% $43 $32 $440 $349 Capital Growth 3.35% 2.30% 1.00% 4.35% 3.30% $44 $33 $449 $359 Capital Appreciation 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Small Cap 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Mid-Cap Growth 3.35% 2.30% 0.89% 4.24% 3.19% $43 $32 $440 $349 Strategic Equity 3.35% 2.30% 0.95% 4.30% 3.25% $43 $33 $445 $355 Special Situations 3.35% 2.30% 1.11% 4.46% 3.41% $45 $34 $458 $369 Growth 3.35% 2.30% 1.00% 4.35% 3.30% $44 $33 $449 $359 Developing World 3.35% 2.30% 1.76% 5.11% 4.06% $51 $41 $508 $426 Internet Tollkeeper 3.35% 2.30% 1.86% 5.21% 4.16% $52 $42 $516 $434 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond 3.35% 2.30% 0.75% 4.10% 3.05% $41 $31 $429 $336 PIMCO StocksPLUS Growth and Income 3.35% 2.30% 0.65% 4.00% 2.95% $40 $30 $421 $327 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth 3.35% 2.30% 1.23% 4.58% 3.53% $46 $36 $468 $380 THE PRUDENTIAL SERIES FUND Prudential Jennison 3.35% 2.30% 1.04% 4.39% 3.34% $44 $34 $453 $363 SP Jennison International Growth 3.35% 2.30% 1.64% 4.99% 3.94% $50 $40 $499 $416 PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap 3.35% 2.30% 1.10% 4.45% 3.40% $45 $34 $457 $368 Pilgrim VP SmallCap Opportunities 3.35% 2.30% 1.10% 4.45% 3.40% $45 $34 $457 $368 Pilgrim VP Growth Opportunities 3.35% 2.30% 1.10% 4.45% 3.40% $45 $34 $457 $368
121360 7 Access Profile ------------------------------------------------------------------------------------------------------------------------- EXAMPLES: --------- TOTAL ANNUAL TOTAL ANNUAL TOTAL CHARGES AT THE END OF: INSURANCE CHARGES CHARGES 1 YEAR 10 YEARS ---------------- ---------------- -------------- --------------- WITH W/O TOTAL ANNUAL WITH W/O WITH W/O WITH W/O THE ANY INVESTMENT THE ANY THE ANY THE ANY RIDER RIDER PORTFOLIO RIDER RIDER RIDER RIDER RIDER RIDER INVESTMENT PORTFOLIO CHARGES CHARGE CHARGES CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE ------------------------------------------------------------------------------------------------------------------------- PROFUNDS ProFund VP Bull 3.35% 2.30% 1.80% 5.15% 4.10% $51 $41 $511 $429 ProFund VP Small-Cap 3.35% 2.30% 1.80% 5.15% 4.10% $51 $41 $511 $429 ProFund VP Europe 30 3.35% 2.30% 1.75% 5.10% 4.05% $51 $41 $507 $425 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends 3.35% 2.30% 1.45% 4.80% 3.75% $48 $38 $485 $399 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT 3.35% 2.30% 0.93% 4.28% 3.23% $43 $33 $444 $353 Pioneer Mid-Cap Value VCT 3.35% 2.30% 1.01% 4.36% 3.31% $44 $33 $450 $360 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services 3.35% 2.30% 1.09% 4.44% 3.39% $45 $34 $457 $368 INVESCO VIF-- Health Sciences 3.35% 2.30% 1.07% 4.42% 3.37% $44 $34 $455 $366 INVESCO VIF-- Utilities 3.35% 2.30% 1.41% 4.76% 3.71% $48 $37 $482 $396
The "Total Annual Investment Portfolio Charges" column above reflects current expense reimbursements for applicable investment portfolios. For more detailed information, see "Fees and Expenses" in the prospectus for the Contract. 6. TAXES Under a qualified Contract, your premiums are generally pre-tax contributions and accumulate on a tax-deferred basis. Premiums and earnings are generally taxed as income when you make a withdrawal or begin receiving annuity payments, presumably when you are in a lower tax bracket. Under a non-qualified Contract, premiums are paid with after-tax dollars, and any earnings will accumulate tax-deferred. You will generally be taxed on these earnings, but not on premiums, when you make a withdrawal or begin receiving annuity payments. For owners of most qualified Contracts, when you reach age 70 1/2 (or, in some cases, retire), you will be required by federal tax laws to begin receiving payments from your annuity or risk paying a penalty tax. In those cases, we can calculate and pay you the minimum required distribution amounts at your request. If you are younger than 59 1/2 when you take money out, in most cases, you will be charged a 10% federal penalty tax on the taxable amount withdrawn. 7. WITHDRAWALS You can withdraw your money at any time during the accumulation phase. You may elect in advance to take systematic withdrawals which are described on page 13. We will apply a market value adjustment if you withdraw your money from the Fixed Account more than 30 days before the applicable maturity date. Income taxes and a penalty tax may apply to amounts withdrawn. 121360 8 Access Profile 8. PERFORMANCE The value of your Contract will fluctuate depending on the investment performance of the portfolio(s) you choose. The following chart shows average annual total return for each portfolio that was in operation for the entire year of 2000. These numbers reflect the deduction of the mortality and expense risk charge (based on the Max 7 Enhanced Death Benefit), the asset-based administrative charge, the annual contract fee, the earnings multiplier benefit rider charge and the maximum optional benefit rider charge on a rider base that accumulates at 7%. Please keep in mind that past performance is not a guarantee of future results.
CALENDAR YEAR INVESTMENT PORTFOLIO 2000 1999 1998 Managed by A I M Capital Management, Inc. Capital Appreciation(1) -17.88% 20.85% 9.22% Strategic Equity(2) -15.15% 51.53% -2.29% Managed by Alliance Capital Management L.P. Capital Growth(2) -19.74% 21.72% 8.53% Managed by Baring International Investment Limited Developing World(2) -35.95% 56.85% -- Hard Assets(2) -7.72% 19.64% -31.88% Managed by Capital Guardian Trust Company Managed Global(3) -17.24% 58.39% 25.41% Small Cap(3) -20.80% 46.08% 17.29% Managed by Eagle Asset Management, Inc. Value Equity 5.42% -2.60% -1.61% Managed by ING Investment Management, LLC Limited Maturity Bond 4.41% -2.01% 3.57% Liquid Asset 2.78% 1.50% 1.80% Managed by Janus Capital Corporation Growth(2) -24.45% 72.87% 22.98% Managed by Massachusetts Financial Services Company Mid-Cap Growth 4.90% 73.73% 19.08% Research -7.48% 20.43% 19.31% Total Return 12.94% 0.17% 8.17% Managed By Pacific Investment Management Company Core Bond(4) -2.18% -11.50% 8.42% Managed by T. Rowe Price Associates, Inc. Equity Income(2) 9.45% -3.80% 4.93% Fully Managed 18.26% 3.63% 2.63% Managed by Van Kampen Real Estate(5) 27.05% -6.81% -16.19% Rising Dividends(6) -5.15% 12.33% 10.64% Managed By Pacific Investment Management Company PIMCO High Yield Bond -3.94% -0.17% -- PIMCO StocksPLUS Growth and Income -12.31% 16.19% --
---------------------- (1) Prior to April 1, 1999, a different firm managed the Portfolio. (2) Prior to March 1, 1999, a different firm managed the Portfolio. (3) Prior to February 1, 2000, a different firm managed the Portfolio. (4) Prior to May 1, 2001, a different firm managed the Portfolio using a different investment style. (5) Prior to December 17, 2001, a different firm managed the Portfolio. (6) Prior to January 30, 2002, a different firm managed the Portfolio. 121360 9 Access Profile 9. DEATH BENEFIT The death benefit, and earnings multiplier benefit, if elected, is payable when the first of the following persons dies: the contract owner, joint owner, or annuitant (if a contract owner is not an individual). Assuming you are the contract owner, if you die during the accumulation phase, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. The death benefit paid depends on the death benefit you have chosen. The death benefit value is calculated at the close of the business day on which we receive written notice and due proof of death, as well as required claim forms, at our Customer Service Center. If your beneficiary elects to delay receipt of the death benefit until a date after the time of your death, the amount of the benefit payable in the future may be affected. If you die after the annuity start date and you are the annuitant, your beneficiary will receive the death benefit you chose under the annuity option then in effect. The death benefit may be subject to certain mandatory distribution rules required by federal tax law. THE FOLLOWING IS A DESCRIPTION OF THE DEATH BENEFIT OPTIONS FOR CONTRACT OWNERS IN MAY-2001. IF YOU ARE A PRE-2000, YR-2000, OR YR-2001 CONTRACT OWNER, PLEASE SEE APPENDIX C TO THE PROSPECTUS FOR A DESCRIPTION OF THE CALCULATION OF DEATH BENEFITS APPLICABLE TO YOUR CONTRACT. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. You may choose (i) the Standard Death Benefit, (ii) the Annual Ratchet Enhanced Death Benefit, (iii) the 7% Solution Enhanced Death Benefit, or (iv) the Max 7 Enhanced Death Benefit. The Annual Ratchet Enhanced Death Benefit, the 7% Solution Enhanced Death Benefit and the Max 7 Enhanced Death Benefit are available only if the contract owner or the annuitant (if the contract owner is not an individual) is not more than 79 years old at the time of purchase. The Annual Ratchet, 7% Solution, and Max 7 Enhanced Death Benefits may not be available where a Contract is held by joint owners. Base Death Benefit. We use the Base Death Benefit to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The Base Death Benefit is equal to the greater of: 1) the contract value; and 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATER of the Base Death Benefit and the sum of 1) and 2) where: 1) is the contract value allocated to Special Funds; and 2) is the Standard Minimum Guaranteed Death Benefit for amounts allocated to Non-Special Funds as further described in the prospectus. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Base Death Benefit and the Enhanced Death Benefit option elected. For purposes of calculating the Enhanced Death Benefits, certain investment portfolios and the Fixed Account are designated as "Special Funds." In addition to the Fixed Account, the investment portfolios designated currently as Special Funds are the Liquid Asset Portfolio and the Limited Maturity Bond Portfolio. Selecting a Special Fund may limit or reduce the enhanced death benefit. You will automatically receive the Standard Death Benefit unless you elect one of the enhanced death benefit options. The enhanced death benefit options are available only at the time you purchase your Contract. The enhanced death benefit options are not available where a Contract is owned by joint owners. Once you choose a death benefit, it cannot be changed. We may in the future stop or suspend offering any of the enhanced death benefit options to new Contracts. A change in ownership of the Contract may affect the amount of the death benefit and the enhanced death benefit. The MGWB rider may also affect the death benefit. See "Minimum Guaranteed Withdrawal Benefit (MGWB) Rider -- Death Benefit during Automatic Periodic Benefit Status." 121360 10 Access Profile Each of the enhanced death benefit options is based on a minimum guaranteed death benefit for that option. Please see "Death Benefit Choices" in the prospectus for details on the calculation of the minimum guaranteed death benefit for each enhanced death benefit and further details on the effect of withdrawals and transfers on the calculation of the enhanced death benefits. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the GREATER of: 1) the Standard Death Benefit; and 2) the sum of the contract value allocated to Special Funds and the Annual Ratchet Minimum Guaranteed Death Benefit for amounts allocated to Non-Special Funds as further described in the prospectus. The 7% SOLUTION ENHANCED DEATH BENEFIT, equals the GREATER of: 1) the Standard Death Benefit; and 2) the sum of the contract value allocated to Special Funds and the 7% Solution Minimum Guaranteed Death Benefit for amounts allocated to Non-Special Funds as further described in the prospectus. The MAX 7 ENHANCED DEATH BENEFIT equals the GREATER of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit. Under this benefit option, the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit are calculated in the same manner as if each were the elected benefit. Note:In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Keep in mind that selecting a Special Fund may limit or reduce the Enhanced Death Benefit. For the period during which a portion of the contract value is allocated to a Special Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during the period contract value is allocated to a Special Fund. EARNINGS MULTIPLIER BENEFIT RIDER. The earnings multiplier benefit rider is an optional rider that provides a separate death benefit in addition to the death benefit provided under the death benefit options described above. The rider is subject to state availability and is available only for issues ages 75 or under. It may be added at issue of the Contract or on the next contract anniversary following introduction of the rider in a state, if later. The rider provides a benefit equal to a percentage of the gain under the Contract, up to a gain equal to 150% of premiums adjusted for withdrawals ("Maximum Base"). Currently, where the rider is added at issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: 1) the Maximum Base; and 2) the contract value on the date we receive written notice and due proof of death, as well as required claims forms, minus premiums adjusted for withdrawals. If the rider is added to a Contract after issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: 1) 150% of the contract value on the rider effective date, plus subsequent premiums adjusted for subsequent withdrawals; and 2) the contract value on the date we receive written notice and due proof of death, as well as required claims forms, minus the contract value on the rider effective date, minus subsequent premiums adjusted for subsequent withdrawals. The adjustment to the benefit for withdrawals is pro rata, meaning that the benefit will be reduced by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. 121360 11 Access Profile There is an extra charge for this feature and once selected, it may not be revoked. The earnings multiplier benefit rider does not provide a benefit if there is no gain under the Contract. As such, the Company would continue to assess a charge for the rider, even though no benefit would be payable at death under the rider if there are no gains under the Contract. Please see page 5 for a description of the earnings multiplier benefit rider charge. The rider is available for both non-qualified and qualified contracts. Please see the discussions of possible tax consequences in sections titled "Individual Retirement Annuities," "Taxation of Non-Qualified Contracts," and "Taxation of Qualified Contracts," in the prospectus. The rider is available for both non-qualified and qualified contracts. Please see the discussions of possible tax consequences in sections titled "Individual Retirement Annuities," "Taxation of Non-Qualified Contracts," and "Taxation of Qualified Contracts," in the prospectus. 10. OTHER INFORMATION FREE LOOK. If you cancel the Contract within 10 days after you receive it, you will receive a refund of your adjusted contract value. We determine your contract value at the close of business on the day we receive your written refund request. For purposes of the refund during the free look period, (i) we adjust your contract value for any market value adjustment (if you have invested in the Fixed Account), and (ii) then we include a refund of any charges deducted from your contract value. Because of the market risks associated with investing in the portfolios and the potential positive or negative effect of the market value adjustment, the contract value returned may be greater or less than the premium payment you paid. Some states require us to return to you the amount of the paid premium (rather than the contract value) in which case you will not be subject to investment risk during the free look period. Also, in some states, you may be entitled to a longer free look period. TRANSFERS AMONG INVESTMENT PORTFOLIOS AND THE FIXED ACCOUNT. You can make transfers among your investment portfolios and your investment in the Fixed Account as frequently as you wish without any current tax implications. The minimum amount for a transfer is $100. There is currently no charge for transfers, and we do not limit the number of transfers allowed. The Company may, in the future, charge a $25 fee for any transfer after the twelfth transfer in a contract year or limit the number of transfers allowed. Keep in mind that a transfer or withdrawal from your Fixed Account may cause a market value adjustment. (See the GoldenSelect Fixed Account I prospectus.) Keep in mind that transfers between Special Funds and Non-Special Funds will impact your death benefit and benefits under an optional benefit rider, if any. Also, a transfer to a Restricted Fund will not be permitted to the extent that it would increase the contract value in the Restricted Fund to more than the applicable limits following the transfer. Transfers from Restricted Funds are not limited. If the result of multiple transfers is to lower the percentage of total contract value in the Restricted Fund, the reallocation will be permitted even if the percentage of contract value in the Restricted Fund is greater than the limit. See "Restricted Funds" in the prospectus for more information. NO PROBATE. In most cases, when you die, the person you choose as your beneficiary will receive the death benefit without going through probate. See "Federal Tax Considerations -- Taxation of Death Benefit Proceeds" in the prospectus for the Contract. OPTIONAL RIDERS. Subject to state availability, you may purchase one of three optional benefit riders for an additional charge. You may not add more than one of these three riders to your Contract. There is a separate charge each rider. Once elected, the riders generally may not be cancelled. This means once added the rider may not be removed and charges will be assessed regardless of the performance of your Contract. THE FOLLOWING DESCRIBES THE OPTIONAL RIDERS FOR CONTRACT OWNERS PURCHASING CONTRACTS ON OR AFTER JANUARY 2, 2001. IF YOU PURCHASED YOUR CONTRACT PRIOR TO THAT DATE, PLEASE SEE APPENDIX D TO THE PROSPECTUS FOR A DESCRIPTION OF THE CALCULATION OF THE OPTIONAL RIDER BENEFITS APPLICABLE UNDER YOUR CONTRACT. Minimum Guaranteed Accumulation Benefit (MGAB) Rider. The MGAB is an optional benefit which offers you the ability to receive a one-time adjustment to your contract value in the event your contract value on a specified date is below the MGAB rider guarantee. When added at issue, the MGAB 121360 12 Access Profile rider guarantees that your contract value will at least equal your initial premium payment at the end of ten years, or, at least equal two times your initial premium payment at the end of twenty years, depending on the waiting period you select, reduced pro-rata for withdrawals and certain transfers. The MGAB rider offers a ten-year option and a twenty-year option, of which you may purchase only one. Investment in Special Funds may limit or reduce the benefits provided under the rider. As is more fully described in the prospectus, rider benefits are generally based on the contract value for allocations to Special Funds. The MGAB rider may offer you protection in the event of a lower contract value that may result from unfavorable investment performance of your Contract. There are exceptions, conditions, eligibility requirements, and important considerations associated with the MGAB rider. See "Optional Riders" in the prospectus for more complete information. Minimum Guaranteed Income Benefit (MGIB) Rider. The MGIB rider is an optional benefit which guarantees a minimum amount of income that will be available to you upon annuitization, regardless of fluctuating market conditions. Ordinarily, the amount of income that will be available to you upon annuitization is based upon your contract value, the annuity option you selected and the guaranteed or then current income factors in effect. If you purchase the MGIB rider, the minimum amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greater of the amounts that are ordinarily available to you under your Contract and the MGIB annuity benefit, which is based on your MGIB Base, the MGIB annuity option you selected and the MGIB guaranteed income factors specified in your rider. Your MGIB Base generally depends on the amount of premiums you pay during the first five contract years after you purchase the rider, when you pay them, accumulated at the MGIB rate, less pro rata adjustments for withdrawals and transfers. Investment in Special Funds may limit or reduce the benefits provided under the rider. As is more fully described in the prospectus, rider benefits are generally based on the contract value for allocations to Special Funds. There are exceptions, conditions, eligibility requirements, and important considerations associated with the MGIB rider. You should read the prospectus for more complete information. Minimum Guaranteed Withdrawal Benefit (MGWB) Rider. The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero you will receive annual periodic payments, which, when added together, equal all premium payments paid during the first two contract years, less adjustments for any prior withdrawals and adjusted by transfers to Special Funds. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. (Of course, any applicable income and penalty taxes will apply to amounts withdrawn.) Your original Eligible Payment Amount is your premium payments received during the first two contract years. Withdrawals that you make in excess of the above periodic payment amount may substantially reduce the guarantee. Investment in Special Funds may limit or reduce the benefits provided under the rider. As is more fully described in the prospectus, rider benefits are generally based on the contract value for allocations to Special Funds. There are exceptions, conditions, eligibility requirements, and important considerations associated with the MGWB rider. You should read the prospectus for more information. ADDITIONAL FEATURES. This Contract has other features you may be interested in. These include: Dollar Cost Averaging. This is a program that allows you to invest a fixed amount of money in the investment portfolios each month. It may give you a lower average cost per unit over time than a single one-time purchase. Dollar cost averaging requires regular investments regardless of fluctuating price levels, and does not guarantee profits or prevent losses in a declining market. This option is currently available only if you have $1,200 or more in the Limited Maturity Bond or the Liquid Asset investment portfolios or in the Fixed Account with a 1-year guaranteed interest period. Transfers from the Fixed Account under this program will not be subject to a market value adjustment. See Fixed Account prospectus. If you invest in Restricted Funds, your ability to dollar cost average may be limited. Please see "Transfers Among Your Investments" in the prospectus for more complete information. Systematic Withdrawals. During the accumulation phase, you can arrange to have money sent to you at regular intervals throughout the year. These withdrawals will not result in any surrender charges. Withdrawals from your money in the Fixed Account under this program are not subject to a 121360 13 Access Profile market value adjustment. Of course, any applicable income and penalty taxes will apply on amounts withdrawn. See Fixed Account prospectus. If you invest in Restricted Funds, your systematic withdrawals may be affected. Please see "Withdrawals" in the prospectus for more complete information. Automatic Rebalancing. If your contract value is $10,000 or more, you may elect to have the Company automatically readjust the money between your investment portfolios periodically to keep the blend you select. Investments in the Fixed Account are not eligible for automatic rebalancing. See the GoldenSelect Fixed Account I prospectus. If you invest in Restricted Funds, automatic rebalancing may be affected. Please see "Transfers Among Your Investments" in the prospectus for more complete information. 11. Inquiries If you need more information after reading this profile and the prospectus, please contact us at: Customer Service Center P.O. Box 2700 West Chester, Pennsylvania 19380 (800) 366-0066 or your registered representative. 121360 14 Access Profile -------------------------------------------------------------------------------- Golden American Life Insurance Company Separate Account B of Golden American Life Insurance Company Deferred Combination Variable and Fixed Annuity Prospectus GOLDENSELECT ACCESS/R/ -------------------------------------------------------------------------------- FEBRUARY 12, 2002 This prospectus describes GoldenSelect Access, a deferred group and individual variable annuity contract (the "Contract") offered by Golden American Life Insurance Company ("Golden American," the "Company," "we" or "our"). The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("qualified Contracts") as well as those that do not qualify for such treatment ("non-qualified Contracts"). The Contract provides a means for you to invest your premium payments in one or more of the available mutual fund investment portfolios. You may also allocate premium payments to our Fixed Account with guaranteed interest periods. Your contract value will vary daily to reflect the investment performance of the investment portfolio(s) you select and any interest credited to your allocations in the Fixed Account. The investment portfolios available under your Contract and the portfolio managers are listed on the back of this cover. For Contracts sold in some states, some guaranteed interest periods or subaccounts may not be available. You have a right to return a Contract within 10 days after you receive it for a refund of the adjusted contract value (which may be more or less than the premium payments you paid), or if required by your state, the original amount of your premium payment. Longer free look periods apply in some states. This prospectus provides information that you should know before investing and should be kept for future reference. A Statement of Additional Information ("SAI"), dated, February 12, 2002, has been filed with the Securities and Exchange Commission ("SEC"). It is available without charge upon request. To obtain a copy of this document, write to our Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania 19380 or call (800) 366-0066, or access the SEC's website (http://www.sec.gov). The table of contents of the SAI is on the last page of this prospectus and the SAI is made part of this prospectus by reference. THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN ANY SUBACCOUNT THROUGH THE GCG TRUST, THE PIMCO VARIABLE INSURANCE TRUST, THE PILGRIM VARIABLE INSURANCE TRUST, THE PRUDENTIAL SERIES FUND, THE PILGRIM VARIABLE PRODUCTS TRUST, THE PROFUNDS, THE AIM VARIABLE INSURANCE FUNDS, THE PIONEER VARIABLE CONTRACTS TRUST OR THE INVESCO VARIABLE INVESTMENT FUNDS, INC. IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY ANY BANK OR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE GCG TRUST, THE PIMCO VARIABLE INSURANCE TRUST, THE PILGRIM VARIABLE INSURANCE TRUST, THE PRUDENTIAL SERIES FUND, THE PILGRIM VARIABLE PRODUCTS TRUST, THE PROFUNDS, THE AIM VARIABLE INSURANCE FUNDS, THE PIONEER VARIABLE CONTRACTS TRUST OR THE INVESCO VARIABLE INVESTMENT FUNDS, INC. A LIST OF THE INVESTMENT PORTFOLIOS AND THE MANAGERS ARE LISTED ON THE BACK OF THIS COVER. -------------------------------------------------------------------------------- ACC - 121360 The investment portfolios available under your Contract and the portfolio managers are: A I M CAPITAL MANAGEMENT, INC. SALOMON BROTHERS ASSET MANAGEMENT, INC Capital Appreciation Series All Cap Series Strategic Equity Series Investors Series ALLIANCE CAPITAL MANAGEMENT L. P. T. ROWE PRICE ASSOCIATES, INC. Capital Growth Series Equity Income Series BARING INTERNATIONAL INVESTMENT LIMITED Fully Managed Series (AN AFFILIATE) VAN KAMPEN Developing World Series Real Estate Series Hard Assets Series Rising Dividends Series CAPITAL GUARDIAN TRUST COMPANY PACIFIC INVESTMENT MANAGEMENT COMPANY Large Cap Value Series PIMCO High Yield Bond Portfolio Managed Global Series PIMCO StocksPLUS Growth and Income Portfolio Small Cap Series JENNISON ASSOCIATES LLC EAGLE ASSET MANAGEMENT, INC Prudential Jennison Portfolio Value Equity Series SP Jennison International Growth Portfolio FIDELITY MANAGEMENT & RESEARCH COMPANY ING PILGRIM INVESTMENTS, LLC Asset Allocation Growth Series (AN AFFILIATE) Diversified Mid-Cap Series Pilgrim VIT Worldwide Growth GOLDMAN SACHS ASSET MANAGEMENT (formerly Pilgrim Global Brand Names Fund) Internet TollkeeperSM Series Pilgrim VP MagnaCap Portfolio ING INVESTMENT MANAGEMENT, LLC Pilgrim VP SmallCap Opportunities Portfolio (AN AFFILIATE) Pilgrim VP Growth Opportunities Portfolio Limited Maturity Bond Series PROFUND ADVISORS LLC Liquid Asset Series ProFund VP Bull ING PILGRIM INVESTMENTS, LLC ProFund VP Europe 30 (AN AFFILIATE) ProFund VP Small-Cap International Equity Series A I M ADVISORS, INC. JANUS CAPITAL CORPORATION AIM V.I. Dent Demographic Trends Fund Growth Series PIONEER INVESTMENT MANAGEMENT, INC. Growth and Income Series Pioneer Fund VCT Portfolio Special Situations Series Pioneer Mid-Cap Value VCT Portfolio MASSACHUSETTS FINANCIAL SERVICES COMPANY INVESCO FUNDS GROUP, INC. Mid-Cap Growth Series INVESCO VIF-- Financial Services Fund Research Series INVESCO VIF-- Health Sciences Fund Total Return Series INVESCO VIF-- Utilities Fund PACIFIC INVESTMENT MANAGEMENT COMPANY Core Bond Series (formerly Global Fixed Income Series)
ACC - 121360 -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- PAGE Index of Special Terms..................................... 1 Fees and Expenses.......................................... 2 Performance Information.................................... 11 Accumulation Unit.................................... 11 Net Investment Factor................................ 11 Condensed Financial Information...................... 12 Financial Statements................................. 12 Performance Information.............................. 12 Golden American Life Insurance Company..................... 13 The Trusts................................................. 13 Golden American Separate Account B......................... 14 The Investment Portfolios.................................. 15 Investment Objectives................................ 15 Investment Management Fees........................... 20 Restricted Funds..................................... 22 Special Funds.............................................. 23 The Annuity Contract....................................... 23 Contract Date and Contract Year ..................... 23 Annuity Start Date................................... 23 Contract Owner....................................... 23 Annuitant............................................ 24 Beneficiary.......................................... 24 Purchase and Availability of the Contract............ 25 Crediting of Premium Payments........................ 25 Administrative Procedures............................ 27 Contract Value....................................... 27 Cash Surrender Value................................. 27 Surrendering to Receive the Cash Surrender Value..... 27 The Subaccounts...................................... 28 Addition, Deletion or Substitution of Subaccounts and Other Changes................................ 28 The Fixed Account.................................... 28 Optional Riders...................................... 28 Rider Date....................................... 29 No Cancellation.................................. 29 Termination...................................... 29 Minimum Guaranteed Accumulation Benefit Rider.... 29 Minimum Guaranteed Income Benefit Rider.......... 31 Minimum Guaranteed Withdrawal Benefit Rider...... 34 Other Contracts...................................... 36 Other Important Provisions........................... 36 Withdrawals................................................ 37 Regular Withdrawals.................................. 37 Systematic Withdrawals............................... 37 IRA Withdrawals...................................... 39 Transfers Among Your Investments........................... 40 Transfers by Third Parties........................... 40 Dollar Cost Averaging................................ 41 Automatic Rebalancing................................ 42 ACC - 121360 i -------------------------------------------------------------------------------- TABLE OF CONTENTS (CONTINUED) -------------------------------------------------------------------------------- PAGE Death Benefit Choices...................................... 42 Death Benefit During the Accumulation Phase.......... 42 Standard Death Benefit........................... 44 Enhanced Death Benefit Options................... 44 Earnings Multiplier Benefit Rider................ 46 Death Benefit During the Income Phase................ 47 Continuation After Death-- Spouse.................... 47 Continuation After Death-- Non Spouse................ 47 Required Distributions Upon Contract Owner's Death... 48 Charges and Fees........................................... 48 Charge Deduction Subaccount.......................... 49 Charges Deducted from the Contract Value............. 49 No Surrender Charge.............................. 49 Premium Taxes.................................... 49 Administrative Charge............................ 49 Transfer Charge.................................. 49 Charges Deducted from the Subaccounts................ 49 Mortality and Expense Risk Charge................ 49 Asset-Based Administrative Charge................ 49 Earnings Multiplier Benefit Charge............... 50 Optional Rider Charges........................... 50 Trust Expenses....................................... 51 The Annuity Options........................................ 51 Annuitization of Your Contract....................... 51 Selecting the Annuity Start Date..................... 52 Frequency of Annuity Payments........................ 52 The Annuity Options.................................. 52 Income for a Fixed Period........................ 52 Income for Life with a Period Certain............ 52 Joint Life Income................................ 53 Annuity Plan..................................... 53 Payment When Named Person Dies....................... 53 Other Contract Provisions.................................. 53 Reports to Contract Owners........................... 53 Suspension of Payments............................... 53 In Case of Errors in Your Application................ 53 Assigning the Contract as Collateral................. 54 Contract Changes-Applicable Tax Law.................. 54 Free Look............................................ 54 Group or Sponsored Arrangements...................... 54 Selling the Contract................................. 54 Other Information.......................................... 55 Voting Rights........................................ 55 State Regulation..................................... 56 Legal Proceedings.................................... 56 Legal Matters........................................ 56 Experts.............................................. 56 ACC - 121360 ii -------------------------------------------------------------------------------- TABLE OF CONTENTS (CONTINUED) -------------------------------------------------------------------------------- PAGE Federal Tax Considerations................................. 56 Statement of Additional Information Table of Contents....................................... 64 Appendix A Condensed Financial Information......................... A1 Appendix B Withdrawal Adjustment for 7% Solution Death Benefit Examples..................................... B1 Appendix C Death Benefits for Pre-2000, Yr-2000, or Yr-2001 Contract Owners...................................... C1 Appendix D Optional Rider Benefits for Pre-2000 and Yr-2000 Contract Owners...................................... D1 ACC - 121360 iii This page intentionally left blank. -------------------------------------------------------------------------------- INDEX OF SPECIAL TERMS -------------------------------------------------------------------------------- The following special terms are used throughout this prospectus. Refer to the page(s) listed for an explanation of each term: SPECIAL TERM PAGE Accumulation Unit 11 Annual Ratchet Enhanced Death Benefit 47 Annuitant 27 Annuity Start Date 26 Cash Surrender Value 30 Contract Date 26 Contract Owner 26 Contract Value 29 Contract Year 26 Earnings Multiplier Benefit 47 Fixed Interest Allocation 22 Market Value Adjustment 24 Max 7 Enhanced Death Benefit 47 Net Investment Factor 11 Restricted Fund 22 Rider Date 31 7% Solution Enhanced Death Benefit 46 Special Fund 25 Standard Death Benefit 45 The following terms as used in this prospectus have the same or substituted meanings as the corresponding terms currently used in the Contract: TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT Accumulation Unit Value Index of Investment Experience Annuity Start Date Annuity Commencement Date Contract Owner Owner or Certificate Owner Contract Value Accumulation Value Transfer Charge Excess Allocation Charge Fixed Interest Allocation Fixed Allocation Free Look Period Right to Examine Period Guaranteed Interest Period Guarantee Period Subaccount(s) Division(s) Net Investment Factor Experience Factor Regular Withdrawals Conventional Partial Withdrawals Withdrawals Partial Withdrawals ACC - 121360 1 -------------------------------------------------------------------------------- FEES AND EXPENSES -------------------------------------------------------------------------------- CONTRACT OWNER TRANSACTION EXPENSES* Surrender Charge....................... None Transfer Charge........................ $25 per transfer, if you make more than 12 transfers in a contract year ** * If you invested in a Fixed Interest Allocation, a Market Value Adjustment may apply to certain transactions. This may increase or decrease your contract value and/or your transfer or surrender amount. ** We currently do not impose this charge, but may do so in the future. ANNUAL CONTRACT ADMINISTRATIVE CHARGE* Administrative Charge.................. $40 (We waive this charge if the total of your premium payments is $100,000 or more or if your contract value at the end of a contract year is $100,000 or more.) * We deduct this charge on each contract anniversary and on surrender. SEPARATE ACCOUNT ANNUAL CHARGES*
------------------------------------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH BENEFIT ANNUAL RATCHET 7% SOLUTION MAX 7 ------------------------------------------------------------------------------------------------------------- Mortality & Expense Risk Charge** 1.65% 1.90% 2.00% 2.10% Asset-Based Administrative Charge 0.15% 0.15% 0.15% 0.15% Total 1.80% 2.05% 2.15% 2.25% -------------------------------------------------------------------------------------------------------------
* As a percentage of average daily assets in each subaccount. The mortality and expense risk charge and the asset-based administrative charge are deducted daily. ** These charges are applicable to May-2001 contract owners. Please see Appendix C for the mortality and expense risk charges applicable to Pre-2000, Yr-2000, and Yr-2001 contract owners. EARNINGS MULTIPLIER BENEFIT RIDER CHARGE* Quarterly Charge......................... 0.075% of contract value (0.30% annually) * We deduct the rider charge from the subaccounts in which you are invested on each quarterly contract anniversary and pro rata on termination of the Contract; if the value in the subaccounts is insufficient, the rider charge will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. ACC - 121360 2 OPTIONAL RIDER CHARGES* Minimum Guaranteed Accumulation Benefit rider:
Waiting Period Quarterly Charge -------------- ---------------- 10 Year.......................... 0.125% of the MGAB Charge Base(1) (0.50% annually) 20 Year.......................... 0.125% of the MGAB Charge Base (0.50% annually) Minimum Guaranteed Income Benefit rider: MGIB Rate Quarterly Charge --------- ---------------- 7%............................... 0.125% of the MGIB Charge Base(2) (0.50% annually) Minimum Guaranteed Withdrawal Benefit rider: Quarterly Charge ---------------- 0.125% of the MGWB Eligible Payment Amount(3) (0.50% annually)
* We deduct optional rider charges from the subaccounts in which you are invested on each quarterly contract anniversary and pro rata on termination of the Contract; if the value in the subaccounts is insufficient, the optional rider charges will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. (1) The MGAB Charge Base is the total of premiums added during the 2-year period commencing on the rider date if you purchase the rider on the contract date, or, your contract value on the rider date plus premiums added during the 2-year period commencing on the rider date if you purchased the rider after the contract date, reduced pro rata for all withdrawals taken while the MGAB rider is in effect, and reduced pro rata for transfers made during the three year period before the MGAB Benefit Date. The MGAB Charge Base is tracked separately for Special and Non-Special Funds, based on initial allocation of premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers may reduce the Charge Base by more than the amount withdrawn or transferred. (2) The MGIB Charge Base generally depends on the amount of premiums you pay during the first five contract years after you purchase the rider, when you pay them, less a pro rata deduction for any withdrawal made while the MGIB rider is in effect and accumulated at the MGIB Rate (7%). The MGIB Charge Base is tracked separately for Special and Non-Special Funds, based on initial allocation of premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers between Special and Non-Special Funds may reduce the MGIB Charge Base by more than the amount withdrawn or transferred. (3) The MGWB Eligible Payment Amount is (i) the total of premiums paid during the 2-year period commencing on the rider date if you purchase the rider on the contract date; or (ii) your contract value on the rider date plus subsequent premiums paid during the two-year period commencing on the rider date. ACC - 121360 3 THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily net assets of a portfolio): ----------------------------------------------------------------------------- MANAGEMENT OTHER TOTAL PORTFOLIO FEE(1) EXPENSES(2) EXPENSES(3) ----------------------------------------------------------------------------- Liquid Asset 0.54% 0.01% 0.55% Limited Maturity Bond 0.54% 0.01% 0.55% Core Bond 1.00% 0.01% 1.01% Fully Managed 0.94% 0.01% 0.95% Total Return 0.88% 0.01% 0.89% Asset Allocation Growth 1.00% 0.01% 1.01% Equity Income 0.94% 0.01% 0.95% All Cap 1.00% 0.01% 1.01% Growth and Income 1.10% 0.01% 1.11% Real Estate 0.94% 0.01% 0.95% Value Equity 0.94% 0.01% 0.95% Investors 1.00% 0.01% 1.01% International Equity 1.25% 0.01% 1.26% Rising Dividends 0.94% 0.01% 0.95% Managed Global 1.25% 0.01% 1.26% Large Cap Value 1.00% 0.01% 1.01% Hard Assets 0.94% 0.01% 0.95% Diversified Mid-Cap 1.00% 0.01% 1.01% Research 0.88% 0.01% 0.89% Capital Growth 0.99% 0.01% 1.00% Capital Appreciation 0.94% 0.01% 0.95% Small Cap 0.94% 0.01% 0.95% Mid-Cap Growth 0.88% 0.01% 0.89% Strategic Equity 0.94% 0.01% 0.95% Special Situations 1.10% 0.01% 1.11% Growth 0.99% 0.01% 1.00% Developing World 1.75% 0.01% 1.76% Internet Tollkeeper 1.85% 0.01% 1.86% ----------------------------------------------------------------------------- (1) Fees decline as the total assets of certain combined portfolios increase. See the prospectus for the GCG Trust for more information. (2) Other expenses generally consist of independent trustees fees and certain expenses associated with investing in international markets. Other expenses are based on actual expenses for the year ended December 31, 2000, except for (i) portfolios that commenced operations in 2000 and 2001, and (ii) newly formed portfolios where the charges have been estimated. (3) Total Expenses are based on actual expenses for the fiscal year ended December 31, 2000. ACC - 121360 4 THE PIMCO VARIABLE INSURANCE TRUST ANNUAL EXPENSES (as a percentage of the average daily net assets of a portfolio):
-------------------------------------------------------------------------------------------------------------------------- OTHER EXPENSES TOTAL EXPENSES MANAGEMENT SERVICE OTHER AFTER EXPENSE AFTER EXPENSE PORTFOLIO FEE FEE EXPENSES(1) REIMBURSEMENT(2) REIMBURSEMENT(2) -------------------------------------------------------------------------------------------------------------------------- PIMCO High Yield Bond 0.25% 0.15% 0.35% 0.35% 0.75% PIMCO StocksPLUS Growth and Income 0.40% 0.15% 0.11% 0.10% 0.65% --------------------------------------------------------------------------------------------------------------------------
(1) "Other Expenses" reflects a 0.35% administrative fee for the High Yield Bond Portfolio and a 0.10% administrative fee and 0.01% representing organizational expenses and pro rata Trustees' fees for the StocksPLUS Growth and Income Portfolio. (2) PIMCO has contractually agreed to reduce total annual portfolio operating expenses to the extent they would exceed, due to the payment of organizational expenses and Trustees' fees, 0.75% and 0.65% of average daily net assets for the PIMCO High Yield Bond and StocksPLUS Growth and Income Portfolios, respectively. Without such reductions, Total Annual Expenses for the fiscal year ended December 31, 2000 would have been 0.75% and 0.66% for the PIMCO High Yield Bond and StocksPLUS Growth and Income Portfolios, respectively. Under the Expense Limitation Agreement, PIMCO may recoup these waivers and reimbursements in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. PILGRIM VARIABLE INSURANCE TRUST ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio)(1):
------------------------------------------------------------------------------------------------------------------------- INVESTMENT TOTAL TOTAL NET MANAGEMENT 12B-1 OTHER PORTFOLIO WAIVER BY PORTFOLIO PORTFOLIO FEE FEE EXPENSES EXPENSES ADVISER(2) EXPENSES ------------------------------------------------------------------------------------------------------------------------- Pilgrim VIT Worldwide Growth 1.00% 0.25% 1.72% 2.97% 1.74% 1.23% -------------------------------------------------------------------------------------------------------------------------
(1) The table shows the estimated operating expenses for the Portfolio as a ratio of expenses to average daily net assets. These estimates are based on the Portfolio's actual operating expenses for its most recent complete fiscal year and fee waivers to which the Adviser has agreed for the Portfolio. (2) ING Pilgrim Investments, LLC, upon becoming the Portfolio's Investment Manager, assumed all rights, responsibilities and obligations of its predecessor, ING Mutual Funds Management Co. LLC. ING Mutual Funds Management Co. LLC, entered into a written expense limitation agreement with the Portfolio, under which the Portfolio's Investment Manager will limit expenses of the Portfolio, excluding interest, taxes, brokerage and extraordinary expenses, subject to possible reimbursement to the Portfolio's Investment Manager within three years. The amount of the Portfolio's expenses waived or reimbursed during 2000 by the Portfolio's Investment Manager is shown under the heading "Waiver by Adviser." The expense limits are expected to continue through at least December 31, 2002. THE PRUDENTIAL SERIES FUND ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio):
------------------------------------------------------------------------------------------ MANAGEMENT OTHER TOTAL PORTFOLIO FEE 12B-1 FEE(1) EXPENSES(2) EXPENSES(2) ------------------------------------------------------------------------------------------ Prudential Jennison 0.60% 0.25% 0.19% 1.04% SP Jennison International Growth 0.85% 0.25% 0.54% 1.64% ------------------------------------------------------------------------------------------
(1) The 12b-1 fees for the Prudential Jennison Portfolio and the SP Jennison International Growth Portfolio are imposed to enable the portfolios to recover certain sales expenses, including compensation to broker-dealers, the cost of printing prospectuses for delivery to prospective investors and advertising ACC - 121360 5 costs for the portfolio. Over a long period of time, the total amount of 12b-1 fees paid may exceed the amount of sales charges imposed by the product. (2) Since the SP Jennison International Growth Portfolio had not commenced operations as of December 31, 1999, expenses as shown are based on estimates of the portfolio's operating expenses for the portfolio's first fiscal year. PILGRIM VARIABLE PRODUCTS TRUST ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio)(1):
------------------------------------------------------------------------------------------------------------------------- INVESTMENT TOTAL TOTAL NET MANAGEMENT SERVICE OTHER PORTFOLIO WAIVERS BY PORTFOLIO PORTFOLIO FEES FEES EXPENSES(2) EXPENSES ADVISER(3) EXPENSES(3) ------------------------------------------------------------------------------------------------------------------------- Pilgrim VP MagnaCap 0.75% 0.25% 7.15% 8.15% 7.05% 1.10% Pilgrim VP SmallCap Opportunities 0.75% 0.25% 0.23% 1.23% 0.13% 1.10% Pilgrim VP Growth Opportunities 0.75% 0.25% 1.44% 2.44% 1.34% 1.10% -------------------------------------------------------------------------------------------------------------------------
(1) The table shows the estimated operating expenses for Class S shares of each Portfolio as a ratio of expenses to average daily net assets. These estimates are based on each Portfolio's actual operating expenses for Class R shares for the fiscal year 2000 and fee waivers to which ING Pilgrim Investments, LLC, the Portfolios' Adviser, has agreed for each Portfolio. (2) Because Class S shares are new for each Portfolio, the Other Expenses for each Portfolio are based on Class R expenses of the Portfolio. (3) ING Pilgrim Investments, LLC has entered into written expense limitation agreements with each Portfolio which it advises under which it will limit expenses of the Portfolio, excluding interest, taxes, brokerage and extraordinary expenses, subject to possible reimbursement to ING Pilgrim Investments, LLC within three years. The expense limit for each such Portfolio is shown as "Total Net Portfolio Expenses." For each Portfolio, the expense limits are expected to continue through at least December 31, 2001. PROFUNDS ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio):
----------------------------------------------------------------------------------------------------------------------- MANAGEMENT OTHER TOTAL PORTFOLIO FEE 12B-1 FEE EXPENSES(2) EXPENSES(2) ----------------------------------------------------------------------------------------------------------------------- ProFund VP Bull 0.75% 0.25% 0.80% 1.80% ProFund VP Small-Cap 0.75% 0.25% 0.80% 1.80% ProFund VP Europe 30(1) 0.75% 0.25% 0.75% 1.75% -----------------------------------------------------------------------------------------------------------------------
(1) Management fees and expenses for the ProFund VP Europe 30 are for the 12-month period ending December 12, 2000. (2) Other expenses for the ProFund VP Bull and ProFund VP Small-Cap are estimates as these ProFund Portfolios had not commenced operations as of December 31, 2000. ACC - 121360 6 AIM VARIABLE INSURANCE FUNDS ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio)(1)(2):
------------------------------------------------------------------------------------------------------------------------- TOTAL FEE WAIVER AND EXPENSE TOTAL NET MANAGEMENT 12B-1 OTHER PORTFOLIO REIMBURSEMENTS PORTFOLIO PORTFOLIO FEES FEES EXPENSES EXPENSES EXPENSES ------------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trends 0.85% 0.25% 0.61% 1.71% 0.26% 1.45% -------------------------------------------------------------------------------------------------------------------------
(1) Figures shown in the table are estimates for the current year and are expressed as a percentage of the Portfolio's average daily net assets. (2) The Portfolio's adviser has contractually agreed to waive advisory fees (excluding interest, taxes, dividend expense on short sales, extraordinary items and increases in expenses due to expense offset arrangements, if any) to the extent necessary to limit the total of the Management Fees and Other Expenses to 1.30%. Further the Portfolio's distributor has agreed to reimburse Rule 12b-1 Distribution Plan fees to the extent necessary to limit Total Net Portfolio Expenses to 1.45%. PIONEER VARIABLE CONTRACTS TRUST ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio)(1):
------------------------------------------------------------------------------------------------------------------------- INVESTMENT TOTAL MANAGEMENT 12B-1 OTHER PORTFOLIO PORTFOLIO FEE FEE EXPENSES EXPENSES ------------------------------------------------------------------------------------------------------------------------- Pioneer Fund VCT 0.65% 0.25% 0.03% 0.93% Pioneer Mid-Cap Value VCT 0.65% 0.25% 0.11% 1.01% -------------------------------------------------------------------------------------------------------------------------
(1) Fees and expenses based on portfolio's latest fiscal year ended December 31, 2000. INVESCO VARIABLE INVESTMENT FUNDS, INC. ANNUAL EXPENSES (as a percentage of the average daily net assets of the portfolio):
------------------------------------------------------------------------------------------------------------------------- MANAGEMENT 12B-1 OTHER TOTAL PORTFOLIO FEES FEES(1) EXPENSES(2)(3) EXPENSES ------------------------------------------------------------------------------------------------------------------------- INVESCO VIF-- Financial Services 0.75% 0.00% 0.34% 1.09% INVESCO VIF-- Health Sciences 0.75% 0.00% 0.32% 1.07% INVESCO VIF-- Utilities 0.60% 0.00% 0.81% 1.41% -------------------------------------------------------------------------------------------------------------------------
(1) Although the Funds may deduct a distribution or 12b-1 fee, the Funds currently do not. (2) The Funds' actual Other Expenses and Total Expenses were lower than the figures shown because its custodian fees were reduced under an expense offset agreement. (3) Certain expenses of the Funds were absorbed voluntarily by INVESCO Funds Group Inc. ("INVESCO") pursuant to a commitment between the Funds and INVESCO. This commitment may be changed at any time following consultation with the board of directors. After absorption, but excluding any expense offset arrangements, the INVESCO VIF - Financial Services and the INVESCO VIF - Health Sciences portfolios' Other Expenses and Total Expenses for the fiscal year ended December 31, 2000 were reduced by insignificant amounts. For the INVESCO VIF - Utilities portfolio, after absorption, but excluding any expense offset arrangements, the portfolio's Other Expenses and Total Expenses for the fiscal year ended December 31, 2000 were 0.62% and 1.22%, respectively. The purpose of the foregoing tables is to help you understand the various costs and expenses that you will bear directly and indirectly. See the prospectuses of the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Prudential Series Fund, the Pilgrim Variable Products Trust, the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust and the INVESCO ACC - 121360 7 Variable Investment Funds, Inc. for additional information on management or advisory fees and in some cases on other portfolio expenses. Premium taxes (which currently range from 0% to 3.5% of premium payments) may apply, but are not reflected in the tables above or in the examples below. EXAMPLES: The following two examples are designed to show you the expenses you would pay on a $1000 investment that earns 5% annually if you are a May-2001 contract owner. Each example assumes election of the Max 7 Enhanced Death Benefit. The examples reflect the deduction of a mortality and expense risk charge, an asset-based administrative charge, and an annual contract administrative charge as an annual charge of 0.05% of assets (based on an average contract value of $75,000). Example 1 also assumes you elected the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. In addition, Example 1 assumes you elected an optional benefit rider with the highest cost, an assumed charge of 0.75% annually, where the rider base is equal to the initial premium and increases by 7% annually and assumes the rider charge is assessed each quarter on a base equal to the hypothetical $1,000 premium increasing at 7% per year. The annual charge of 0.75% results from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 0.75% represents an annual charge over the 10-year period which is equivalent to an increasing charge of 0.125% per quarter over the same period. Each example also assumes that any applicable expense reimbursements of underlying portfolio expenses will continue for the periods shown. If the Standard Death Benefit, the Annual Ratchet Enhanced Death Benefit, or the 7% Solution Enhanced Death Benefit is elected instead of the Max 7 Enhanced Death Benefit used in the examples, the actual expenses will be less than those represented in the examples. Please see Appendix C for expense examples applicable to Pre-2000, Yr-2000, and Yr-2001 contract owners. ACC - 121360 8 Example 1: If you elected both the earnings multiplier benefit rider and another optional benefit rider with the highest charge, you would pay the following expenses for each $1,000 invested, whether or not you surrender your Contract or annuitize at the end of the applicable time period:
-------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $39 $119 $200 $412 Limited Maturity Bond $39 $119 $200 $412 Core Bond $44 $132 $222 $450 Fully Managed $43 $130 $219 $445 Total Return $43 $129 $216 $440 Asset Allocation Growth $44 $132 $222 $450 Equity Income $43 $130 $219 $445 All Cap $44 $132 $222 $450 Growth and Income $45 $135 $226 $458 Real Estate $43 $130 $219 $445 Value Equity $43 $130 $219 $445 Investors $44 $132 $222 $450 International Equity $46 $139 $233 $470 Rising Dividends $43 $130 $219 $445 Managed Global $46 $139 $233 $470 Large Cap Value $44 $132 $222 $450 Hard Assets $43 $130 $219 $445 Diversified Mid-Cap $44 $132 $222 $450 Research $43 $129 $216 $440 Capital Growth $44 $132 $221 $449 Capital Appreciation $43 $130 $219 $445 Small Cap $43 $130 $219 $445 Mid-Cap Growth $43 $129 $216 $440 Strategic Equity $43 $130 $219 $445 Special Situations $45 $135 $226 $458 Growth $44 $132 $221 $449 Developing World $51 $153 $255 $508 Internet Tollkeeper $52 $156 $259 $516 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $41 $125 $210 $429 PIMCO StocksPLUS Growth and Income $40 $122 $206 $421 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $46 $138 $231 $468 THE PRUDENTIAL SERIES FUND Prudential Jennison $44 $133 $223 $453 SP Jennison International Growth $50 $150 $250 $499 PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap $45 $135 $226 $457 Pilgrim VP SmallCap Opportunities $45 $135 $226 $457 Pilgrim VP Growth Opportunities $45 $135 $226 $457 PROFUNDS ProFund VP Bull $51 $154 $257 $511 ProFund VP Small-Cap $51 $154 $257 $511 ProFund VP Europe 30 $51 $153 $254 $507 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 9
-------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $48 $144 $241 $485 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $43 $130 $218 $444 Pioneer Mid-Cap Value VCT $44 $132 $222 $450 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $45 $134 $225 $457 INVESCO VIF-- Health Sciences $44 $134 $224 $455 INVESCO VIF-- Utilities $48 $143 $239 $482 --------------------------------------------------------------------------------------------------------------------
Example 2: If you did not elect the earnings multiplier benefit rider or any other optional benefit rider, you would pay the following expenses for each $1,000 invested, whether or not you surrender your contract or annuitize at the end of the applicable time period:
-------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $29 $ 88 $150 $318 Limited Maturity Bond $29 $ 88 $150 $318 Core Bond $33 $102 $173 $360 Fully Managed $33 $100 $170 $355 Total Return $32 $ 98 $167 $349 Asset Allocation Growth $33 $102 $173 $360 Equity Income $33 $100 $170 $355 All Cap $33 $102 $173 $360 Growth and Income $34 $105 $177 $369 Real Estate $33 $100 $170 $355 Value Equity $33 $100 $170 $355 Investors $33 $102 $173 $360 International Equity $36 $109 $185 $383 Rising Dividends $33 $100 $170 $355 Managed Global $36 $109 $185 $383 Large Cap Value $33 $102 $173 $360 Hard Assets $33 $100 $170 $355 Diversified Mid-Cap $33 $102 $173 $360 Research $32 $ 98 $167 $349 Capital Growth $33 $102 $172 $359 Capital Appreciation $33 $100 $170 $355 Small Cap $33 $100 $170 $355 Mid-Cap Growth $32 $ 98 $167 $349 Strategic Equity $33 $100 $170 $355 Special Situations $34 $105 $177 $369 Growth $33 $102 $172 $359 Developing World $41 $124 $208 $426 Internet Tollkeeper $42 $126 $212 $434 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $31 $ 94 $160 $336 PIMCO StocksPLUS Growth and Income $30 $ 91 $155 $327 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 10
-------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $36 $108 $183 $380 THE PRUDENTIAL SERIES FUND Prudential Jennison $34 $103 $174 $363 SP Jennison International Growth $40 $120 $202 $416 PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap $34 $104 $177 $368 Pilgrim VP SmallCap Opportunities $34 $104 $177 $368 Pilgrim VP Growth Opportunities $34 $104 $177 $368 PROFUNDS ProFund VP Bull $41 $125 $210 $429 ProFund VP Small-Cap $41 $125 $210 $429 ProFund VP Europe 30 $41 $123 $207 $425 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $38 $115 $193 $399 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $33 $ 99 $169 $353 Pioneer Mid-Cap Value VCT $33 $102 $173 $360 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $34 $104 $176 $368 INVESCO VIF-- Health Sciences $34 $104 $176 $366 INVESCO VIF-- Utilities $37 $113 $192 $396 --------------------------------------------------------------------------------------------------------------------
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT. Compensation is paid for the sale of the Contracts. For information about this compensation, see "Selling the Contract." -------------------------------------------------------------------------------- PERFORMANCE INFORMATION -------------------------------------------------------------------------------- ACCUMULATION UNIT We use accumulation units to calculate the value of a Contract. Each subaccount of Separate Account B has its own accumulation unit value. The accumulation units are valued each business day that the New York Stock Exchange is open for trading. Their values may increase or decrease from day to day according to a Net Investment Factor, which is primarily based on the investment performance of the applicable investment portfolio. Shares in the investment portfolios are valued at their net asset value. THE NET INVESTMENT FACTOR The Net Investment Factor is an index number which reflects certain charges under the Contract and the investment performance of the subaccount. The Net Investment Factor is calculated for each subaccount as follows: 1) We take the net asset value of the subaccount at the end of each business day. 2) We add to (1) the amount of any dividend or capital gains distribution declared for the subaccount and reinvested in such subaccount. We subtract from that amount a charge for our taxes, if any. ACC - 121360 11 3) We divide (2) by the net asset value of the subaccount at the end of the preceding business day. 4) We then subtract the applicable daily mortality and expense risk charge and the daily asset-based administrative charge from the subaccount. Calculations for the subaccounts are made on a per share basis. CONDENSED FINANCIAL INFORMATION Tables containing (i) the accumulation unit value history of each subaccount of Golden American Separate Account B offered in this prospectus and (ii) the total investment value history of each such subaccount are presented in Appendix A -- Condensed Financial Information. In the future, we present four sets of tables to reflect the varying death benefits and mortality expense risk charges, which affect the accumulation unit values. FINANCIAL STATEMENTS The audited financial statements of Separate Account B for the year ended December 31, 2000 are included in the Statement of Additional Information. The unaudited condensed financial statements of Golden American for the nine months ended September 30, 2001, and the audited consolidated financial statements of Golden American for the years ended December 31, 2000, 1999 and 1998 are included in this prospectus. PERFORMANCE INFORMATION From time to time, we may advertise or include in reports to contract owners performance information for the subaccounts of Separate Account B, including the average annual total return performance, yields and other nonstandard measures of performance. Such performance data will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Except for the Liquid Asset subaccount, quotations of yield for the subaccounts will be based on all investment income per unit (contract value divided by the accumulation unit) earned during a given 30-day period, less expenses accrued during such period. Information on standard total average annual return performance will include average annual rates of total return for 1, 5 and 10 year periods, or lesser periods depending on how long Separate Account B has been investing in the portfolio. We may show other total returns for periods of less than one year. Total return figures will be based on the actual historic performance of the subaccounts of Separate Account B, assuming an investment at the beginning of the period when the separate account first invested in the portfolios, withdrawal of the investment at the end of the period, adjusted to reflect the deduction of all applicable portfolio and current contract charges. We may also show rates of total return on amounts invested at the beginning of the period with no withdrawal at the end of the period. Total return figures which assume no withdrawals at the end of the period will reflect all recurring charges. In addition, we may present historic performance data for the investment portfolios since their inception reduced by some or all of the fees and charges under the Contract. Such adjusted historic performance includes data that precedes the inception dates of the subaccounts of Separate Account B. This data is designed to show the performance that would have resulted if the Contract had been in existence before the separate account began investing in the portfolios. Current yield for the Liquid Asset subaccount is based on income received by a hypothetical investment over a given 7-day period, less expenses accrued, and then "annualized" (i.e., assuming that the 7-day yield would be received for 52 weeks). We calculate "effective yield" for the Liquid Asset subaccount in a manner similar to that used to calculate yield, but when annualized, the income earned by the investment is assumed to be reinvested. The "effective yield" will thus be slightly higher than the "yield" because of the compounding effect of earnings. We calculate quotations of yield for the remaining subaccounts on all investment income per accumulation unit earned during a given 30-day period, after subtracting fees and expenses accrued during the period, assuming no surrender and the selection of the Max 7 Enhanced Death Benefit and the MGIB optional benefit rider. We may compare performance information for a subaccount to: (i) the Standard & Poor's 500 Stock Index, Dow Jones Industrial Average, Donoghue Money Market Institutional Averages, or any other applicable market indices, (ii) other variable annuity separate accounts or other investment products tracked by Lipper ACC - 121360 12 Analytical Services (a widely used independent research firm which ranks mutual funds and other investment companies), or any other rating service, and (iii) the Consumer Price Index (measure for inflation) to determine the real rate of return of an investment in the Contract. Our reports and promotional literature may also contain other information including the style-box assignments for any subaccount, the risk rank of any subaccount relative to any other subaccount and the ranking of any subaccount based on rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by similar rating services. Performance information reflects only the performance of a hypothetical contract and should be considered in light of other factors, including the investment objective of the investment portfolio and market conditions. Please keep in mind that past performance is not a guarantee of future results. -------------------------------------------------------------------------------- GOLDEN AMERICAN LIFE INSURANCE COMPANY -------------------------------------------------------------------------------- Golden American Life Insurance Company is a Delaware stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. Golden American is a wholly owned subsidiary of Equitable of Iowa Companies, Inc. ("Equitable of Iowa"). Equitable of Iowa is a wholly owned subsidiary of Equitable Life Insurance Company of Iowa which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. Golden American is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. In May 1996, Golden American established a subsidiary, First Golden American Life Insurance Company of New York ("First Golden"), which is authorized to sell annuities in New York and Delaware. Golden American's consolidated financial statements appear in this prospectus. It is anticipated that First Golden will be merged into ReliaStar Life Insurance Company of New York, another wholly owned subsidiary of ING and an affiliate, on April 1, 2002 or shortly thereafter. Equitable of Iowa is the holding company for Golden American, Directed Services, Inc., the investment manager of the GCG Trust and the distributor of the Contracts, and other interests. ING also owns ING Pilgrim Investments, LLC, a portfolio manager of the GCG Trust, and the investment manager of the Pilgrim Variable Insurance Trust and the Pilgrim Variable Products Trust. ING also owns: Baring International Investment Limited, another portfolio manager of the GCG Trust, and ING Investment Management Advisors B.V., a portfolio manager of the Pilgrim Variable Insurance Trust. Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. -------------------------------------------------------------------------------- THE TRUSTS -------------------------------------------------------------------------------- The GCG Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity and variable life insurance policies offered by Golden American and other affiliated insurance companies. The GCG Trust may also sell its shares to separate accounts of insurance companies not affiliated with Golden American. Pending SEC approval, shares of the GCG Trust may also be sold to certain qualified pension and retirement plans. The address of the GCG Trust is 1475 Dunwoody Drive, West Chester, PA 19380. The PIMCO Variable Insurance Trust is also a mutual fund whose shares are available to separate accounts of insurance companies, including Golden American, for both variable annuity contracts and variable life insurance policies and to qualified pension and retirement plans. The address of the PIMCO Variable Insurance Trust is 840 Newport Center Drive, Suite 300, Newport Beach, CA 92660. The Pilgrim Variable Insurance Trust (formerly the ING Variable Insurance Trust) is also a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by Golden American and other insurance companies, both affiliated and unaffiliated with Golden American. The address of Pilgrim Variable Insurance Trust is 40 North Central Avenue, Suite 1200, Phoenix, AZ 85004. ACC - 121360 13 The Prudential Series Fund, Inc. is also a mutual fund whose shares are available to separate accounts funding variable annuity and variable life insurance polices offered by The Prudential Insurance Company of America, its affiliated insurers and other life insurance companies not affiliated with Prudential, including Golden American. The address of the Prudential Series Fund is 751 Broad Street, Newark, NJ 07102. The Pilgrim Variable Products Trust is also a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by Golden American and other insurance companies, both affiliated and unaffiliated with Golden American. The address of Pilgrim Variable Products Trust is 40 North Central Avenue, Suite 1200, Phoenix, AZ 85004. The ProFunds is also a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by Golden American and other insurance companies, both affiliated and unaffiliated with Golden American. The address of ProFunds is 3435 Stelzer Road, Suite 1000, PO Box 182100, Columbus, OH 43218-2000. The AIM Variable Insurance Funds is also a mutual fund whose shares are available to separate accounts of life insurance companies, including Golden American. The address of AIM Variable Insurance Funds is 11 Greenway Plaza, Suite 100, Houston, TX 77046-1173. The Pioneer Variable Contracts Trust is also a mutual fund whose shares are available to separate accounts of life insurance companies, including Golden American. The address of Pioneer Variable Contracts Trust is 60 State Street, Boston, MA 02109. INVESCO Variable Investment Funds, Inc. is also a mutual fund whose shares are available to separate accounts of life insurance companies, including Golden American. The address of the INVESCO Variable Investment Funds, Inc. is 7800 East Union Avenue, Denver, CO. In the event that, due to differences in tax treatment or other considerations, the interests of contract owners of various contracts participating in the Trusts conflict, we, the Boards of Trustees of the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Pilgrim Variable Products Trust, the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust, the Boards of Directors of the Prudential Series Fund, the INVESCO Variable Investment Funds, Inc., and the management of Directed Services, Inc., Pacific Investment Management Company, The Prudential Insurance Company of America, ING Pilgrim Investments, LLC, ProFunds Advisors LLC, A I M Advisors, Inc., Pioneer Investment Management, Inc. and INVESCO Funds Group, Inc. and any other insurance companies participating in the Trusts will monitor events to identify and resolve any material conflicts that may arise. YOU WILL FIND MORE DETAILED INFORMATION ABOUT THE GCG TRUST, THE PIMCO VARIABLE INSURANCE TRUST, THE PILGRIM VARIABLE INSURANCE TRUST, THE PRUDENTIAL SERIES FUND, THE PILGRIM VARIABLE PRODUCTS TRUST, THE PROFUNDS, THE AIM VARIABLE INSURANCE FUNDS, THE PIONEER VARIABLE CONTRACTS TRUST AND THE INVESCO VARIABLE INVESTMENT FUNDS, INC. IN THE ACCOMPANYING PROSPECTUS FOR EACH TRUST. YOU SHOULD READ THEM CAREFULLY BEFORE INVESTING. -------------------------------------------------------------------------------- GOLDEN AMERICAN SEPARATE ACCOUNT B -------------------------------------------------------------------------------- Golden American Separate Account B ("Separate Account B") was established as a separate account of the Company on July 14, 1988. It is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 as amended (the "1940 Act"). Separate Account B is a separate investment account used for our variable annuity contracts. We own all the assets in Separate Account B but such assets are kept separate from our other accounts. Separate Account B is divided into subaccounts. Each subaccount invests exclusively in shares of one investment portfolio of the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Prudential Series Fund, the Pilgrim Variable Products Trust the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust, or the INVESCO Variable Investment Funds, Inc. ACC - 121360 14 Each investment portfolio has its own distinct investment objectives and policies. Income, gains and losses, realized or unrealized, of a portfolio are credited to or charged against the corresponding subaccount of Separate Account B without regard to any other income, gains or losses of the Company. Assets equal to the reserves and other contract liabilities with respect to each are not chargeable with liabilities arising out of any other business of the Company. They may, however, be subject to liabilities arising from subaccounts whose assets we attribute to other variable annuity contracts supported by Separate Account B. If the assets in Separate Account B exceed the required reserves and other liabilities, we may transfer the excess to our general account. We are obligated to pay all benefits and make all payments provided under the Contracts. NOTE: We currently offer other variable annuity contracts that invest in Separate Account B but are not discussed in this prospectus. Separate Account B may also invest in other investment portfolios which are not available under your Contract. Under certain circumstances, we may make certain changes to the subaccounts. For more information, see "The Annuity Contract -- Addition, Deletion, or Substitution of Subaccounts and Other Changes." -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS -------------------------------------------------------------------------------- During the accumulation phase, you may allocate your premium payments and contract value to any of the investment portfolios listed in the section below. YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE TO ANY INVESTMENT PORTFOLIO, AND YOU MAY LOSE YOUR PRINCIPAL. INVESTMENT OBJECTIVES The investment objective of each investment portfolio is set forth below. You should understand that there is no guarantee that any portfolio will meet its investment objectives. Meeting objectives depends on various factors, including, in certain cases, how well the portfolio managers anticipate changing economic and market conditions. Separate Account B also has other subaccounts investing in other portfolios which are not available to the Contract described in this prospectus. YOU CAN FIND MORE DETAILED INFORMATION ABOUT THE INVESTMENT PORTFOLIOS IN THE PROSPECTUSES FOR THE GCG TRUST, THE PIMCO VARIABLE INSURANCE TRUST, THE PILGRIM VARIABLE INSURANCE TRUST, THE PRUDENTIAL SERIES FUND, THE PILGRIM VARIABLE PRODUCTS TRUST, THE PROFUNDS, THE AIM VARIABLE INSURANCE FUNDS, THE PIONEER VARIABLE CONTRACTS TRUST, AND THE INVESCO VARIABLE INVESTMENT FUNDS, INC. YOU SHOULD READ THESE PROSPECTUSES BEFORE INVESTING. INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- THE GCG TRUST Liquid Asset Seeks high level of current income consistent with the preservation of capital and liquidity. Invests primarily in obligations of the U.S. Government and its agencies and instrumentalities, bank obligations, commercial paper and short-term corporate debt securities. All securities will mature in less than one year. ----------------------------------- Limited Maturity Bond Seeks highest current income consistent with low risk to principal and liquidity. Also seeks to enhance its total return through capital appreciation when market factors, such as falling interest rates and rising bond prices, indicate that capital appreciation may be available without significant risk to principal. Invests primarily in diversified limited maturity debt securities with average maturity dates of five years or shorter and in no cases more than seven years. ----------------------------------- ACC - 121360 15 INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- CoreBond (formerly Seeks maximum total return, Global Fixed Income) consistent with preservation of capital and prudent investment management. Invests primarily in a diversified portfolio of fixed income instruments of varying maturities. The average portfolio duration of the Portfolio normally varies within a three- to six-year time frame. ----------------------------------- Fully Managed Seeks, over the long term, a high total investment return consistent with the preservation of capital and with prudent investment risk. Invests primarily in the common stocks of established companies believed by the portfolio manager to have above-average potential for capital growth. ----------------------------------- Total Return Seeks above-average income (compared to a portfolio entirely invested in equity securities) consistent with the prudent employment of capital. Growth of capital and income is a secondary goal. Invests primarily in a combination of equity and fixed income securities. ----------------------------------- Asset Allocation Growth Seeks to maximize total return over the long-term by allocating assets among stocks, bonds, short-term instruments and other investments. Allocates investments primarily in a neutral mix over time of 70% of its assets in stocks, 25% of its assets in bonds, and 5% of its assets in short-term and money market investments. ----------------------------------- Equity Income Seeks substantial dividend income as well as long-term growth of capital. Invests primarily in common stocks of well established companies paying above-average dividends. ----------------------------------- All Cap Seeks capital appreciation through investment in securities which the portfolio manager believes have above-average capital appreciation potential. Invests primarily in equity securities of U.S. companies of any size. ----------------------------------- Growth and Income Seeks long-term capital growth and current income. Normally invests up to 75% of its assets in equity securities selected primarily for their growth potential and at least 25% of its assets in securities the portfolio manager believes have income potential. ----------------------------------- Real Estate Seeks capital appreciation. Current income is a secondary objective. Invests primarily in publicly traded real estate equity securities. ----------------------------------- Value Equity Seeks capital appreciation. Dividend income is a secondary objective. Invests primarily in common stocks of domestic and foreign issuers which meet quantitative standards relating to financial soundness and high intrinsic value relative to price. ----------------------------------- Investors Seeks long-term growth of capital. Current income is a secondary objective. Invests primarily in equity securities of U.S. companies and to a lesser degree, debt securities. ----------------------------------- ACC - 121360 16 INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- International Equity Seeks long-term growth of capital. Invests at least 65% of its net assets in equity securities of issuers located in countries outside of the United States. The Portfolio generally invests at least 75% of its total assets in common and preferred stocks, warrants and convertible securities. ----------------------------------- Rising Dividends Seeks capital appreciation. A secondary objective is dividend income. Invests in equity securities that meet the following quality criteria: regular dividend increases; 35% of earnings reinvested annually; and a credit rating of "A" to "AAA." ----------------------------------- Managed Global Seeks capitalappreciation. Current income is only an incidental consideration. Invests primarily in common stocks traded in securities markets throughout the world. ----------------------------------- Large Cap Value Seeks long-term growth of capital and income. Invests primarily in equity and equity-related securities of companies with market capitalization greater than $1 billion. ----------------------------------- Hard Assets Seeks long-term capital appreciation. Invests primarily in hard asset securities. Hard asset companies produce a commodity which the portfolio manager is able to price on a daily or weekly basis. ----------------------------------- Diversified Mid-Cap Seeks long-term capital growth. Normally invests at least 65% of its total assets in common stocks of companies with medium market capitalizations. ----------------------------------- Research Seeks long-term growth of capital and future income. Invests primarily in common stocks or securities convertible into common stocks of companies believed to have better than average prospects for long-term growth. ----------------------------------- Capital Growth Seeks long-term total return. Invests primarily in common stocks of companies where the potential for change (earnings acceleration) is significant. ----------------------------------- Capital Appreciation Seeks long-term capital growth. Invests primarily in equity securities believed by the portfolio manager to be undervalued. ----------------------------------- Small Cap Seeks long-term capital appreciation. Invests primarily in equity securities of companies that have a total market capitalization within the range of companies in the Russell 2000 Growth Index or the Standard & Poor's Small-Cap 600 Index. ----------------------------------- Mid-Cap Growth Seeks long-term growth of capital. Invests primarily in equity securities of companies with medium market capitalization which the portfolio manager believes have above-average growth potential. ----------------------------------- ACC - 121360 17 INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- Strategic Equity Seeks capital appreciation. Invests primarily in common stocks of medium- and small-sized companies. ----------------------------------- Special Situations Seeks capital appreciation. Invests primarily in common stocks selected for their capital appreciation potential. The Portfolio emphasizes "special situation" companies that the portfolio manager believes have been overlooked or undervalued by other investors. ----------------------------------- Growth Seeks capital appreciation. Invests primarily in common stocks of growth companies that have favorable relationships between price/earnings ratios and growth rates in sectors offering the potential for above-average returns. ----------------------------------- Developing World Seeks capital appreciation. Invests primarily in equity securities of companies in developing or emerging countries. ----------------------------------- Internet Tollkeeper Seeks long-term growth of capital. Invests primarily in equity securities of "Internet Tollkeeper" companies, which are companies in sectors which provide access, infrastructure, content and services to Internet companies and customers, and which have developed, or are seeking to develop predictable, sustainable or recurring revenue by increasing "traffic," or customers and sales, and raising "tolls," or prices in connection with the growth of the Internet. ----------------------------------- THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond Seeks to maximize total return, consistent with preservation of capital and prudent investment management. Invests at least 65% of its assets in a diversified portfolio of junk bonds rated at least B by Moody's Investor Services, Inc. or Standard & Poor's or, if unrated, determined by the portfolio manager to be of comparable quality. ----------------------------------- PIMCO StocksPLUS Seeks to achieve a total return Growth and Income which exceeds the total return performance of the Standard & Poor's 500 Stock Index. Invests primarily in common stocks, options, futures, options on futures and swaps. ----------------------------------- PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Seeks to provide investors with Growth (formerly Pilgrim long-term capital appreciation. Global Brand Names Fund) Invests at least 65% of its total assets in equity securities of companies that have a well recognized franchise, a global presence and derive most of their revenues from sales of consumer goods. ----------------------------------- ACC - 121360 18 INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- THE PRUDENTIAL SERIES FUND Prudential Jennison Seeks long-term growth of capital. Invests primarily in companies that have shown growth in earnings and sales, high return on equity and assets or other strong financial data and are also attractively valued in the opinion of the manager. Dividend income from investments will be incidental. ----------------------------------- SP Jennison International Growth Seeks long-term growth of capital. Invests primarily in equity-related securities of issuers located in at least five different foreign countries. ----------------------------------- PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap Seeks growth of capital, with dividend income as a secondary consideration. Invests primarily in equity securities of companies meeting investment policy criteria of consistent and substantially increasing dividends, strong balance sheet and attractive price. Invests primarily in companies included in the largest 500 U.S. companies. ----------------------------------- Pilgrim VP SmallCap Seeks long-term capital Opportunities appreciation. Invests primarily in the common stock of smaller, lesser-known U.S. companies that the portfolio manager believes have above average prospects for growth. ----------------------------------- Pilgrim VP Growth Seeks long-term growth of capital. Opportunities Invests primarily in U.S. companies that the portfolio manager believes have above average prospects for growth. ----------------------------------- PROFUNDS ProFund VP Bull Seeks daily investment results that correspond to the performance of the Standard & Poor's 500 Stock Index. Invests in securities and other financial instruments, such as futures and options on futures in pursuit of the portfolio's objective regardless of market conditions, trends or direction and seeks to provide correlation with the benchmark on a daily basis. ----------------------------------- ProFund VP Small-Cap Seeks daily investment results that correspond to the performance of the Russell 2000 Index. Invests in securities and other financial instruments, such as futures and options on futures in pursuit of the portfolio's objective regardless of market conditions, trends or direction and seeks to provide correlation with the benchmark on a daily basis. ----------------------------------- ProFund VP Europe 30 Seeks daily investment results that correspond to the performance of the ProFunds Europe 30 Index. Invests in securities and other financial instruments, such as futures and options on futures and American Depository Receipts in pursuit of the portfolio's objective regardless of market conditions, trends or direction and seeks to provide correlation with the benchmark on a daily basis. ----------------------------------- ACC - 121360 19 INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE -------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends Seeks long-term growth of capital. Fund Invests primarily in securities that are likely to benefit from changing demographic, economic and lifestyle trends. ----------------------------------- PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT Portfolio Seeks reasonable income and capital growth. Invests a major portion of its assets in equity securities of primarily U.S. companies, that are reasonably priced rather than priced to reflect premium resulting from companies' current market popularity. ----------------------------------- Pioneer Mid-Cap Value VCT Portfolio Seeks capital appreciation. Invests primarily in common stocks of mid-size companies with market values within the range of market values of companies included in Standard & Poor's MidCap 400 Index. ----------------------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services Seeks growth. Fund Aggressively managed and invests primarily in equity securities of companies involved in the financial services sector. ----------------------------------- INVESCO VIF -- Health Sciences Seeks growth. Fund Aggressively managed and invests primarily in equity securities of companies that develop, produce or distribute products or services related to health care. ----------------------------------- INVESCO VIF -- Utilities Fund Seeks growth and current income. Aggressively managed and invests primarily in equity securities of companies that produce, generate, transmit or distribute natural gas or electricity, as well as, in companies that provide telecommunications services, including local, long distance and wireless, and excluding broadcasting. ----------------------------------- INVESTMENT MANAGEMENT FEES Directed Services, Inc. serves as the overall manager to each portfolio of the GCG Trust. The GCG Trust pays Directed Services a monthly fee for its investment advisory and management services. The monthly fee is based on the average daily net assets of an investment portfolio, and in some cases, the combined total assets of certain grouped portfolios. Directed Services provides or procures, at its own expense, the services necessary for the operation of the portfolio, including retaining portfolio managers to manage the assets of the various portfolios. Directed Services (and not the GCG Trust) pays each portfolio manager a monthly fee for managing the assets of a portfolio, based on the annual rates of the average daily net assets of a portfolio. For a list of the portfolio managers, see the front cover of this prospectus. Directed Services does not bear the expense of brokerage fees and other transactional expenses for securities, taxes (if any) paid by a portfolio, interest on borrowing, fees and expenses of the independent trustees, and extraordinary expenses, such as litigation or indemnification expenses. Pacific Investment Management Company ("PIMCO") serves as investment advisor to each portfolio of the PIMCO Variable Insurance Trust. PIMCO provides the overall business management and administrative services necessary for each portfolio's operation. PIMCO provides or procures, at its own expense, the services and information necessary for the proper conduct of business and ordinary operation of each ACC - 121360 20 portfolio. The PIMCO Variable Insurance Trust pays PIMCO a monthly advisory fee and a separate monthly administrative fee per year, each fee based on the average daily net assets of each of the investment portfolios, for managing the assets of the portfolios and for administering the PIMCO Variable Insurance Trust. PIMCO does not bear the expense of brokerage fees and other transactional expenses for securities, taxes (if any) paid by a portfolio, interest on borrowing, fees and expense of the independent trustees, and extraordinary expenses, such as litigation or indemnification expenses. ING Pilgrim Investments, LLC ("ING Pilgrim") serves as the overall manager of Pilgrim Variable Insurance Trust and Pilgrim Variable Products Trust. ING Pilgrim supervises all aspects of the Trusts' operations and provides investment advisory services to the portfolios of the Trusts, including engaging portfolio managers, as well as monitoring and evaluating the management of the assets of each portfolio by its portfolio manager. ING Pilgrim, as well as each portfolio manager it engages, is a wholly owned indirect subsidiary of ING Groep N.V. Except for agreements to reimburse certain expenses of the portfolio, ING Pilgrim does not bear any portfolio expenses. The Prudential Insurance Company of America ("Prudential") and its subsidiary, Prudential Investments Fund Management LLC ("PIFM") serve as the overall investment advisers to the Prudential Series Fund. Prudential and PIFM are responsible for the management of the Prudential Series Fund and provide investment advice and related services. For the Prudential Jennison Portfolio and SP Jennison International Growth Portfolio, Prudential and PIFM engage Jennison Associates LLC to serve as sub-adviser and to provide day-to-day management. Prudential and PIFM pay the sub-adviser out of the fee they receive from the Prudential Series Fund. Each portfolio pays its own administrative costs. ProFunds Advisors LLC serves as the investment advisor of the ProFunds. The ProFunds pay ProFunds Advisors LLC a monthly advisory fee based on the average daily net assets of each investment portfolio. Each portfolio pays its own administrative costs. A I M Advisors, Inc. ("AIM") serves as the overall investment advisor to the AIM Variable Insurance Funds and is responsible for day-to-day management. AIM supervises all aspects of fund operations. AIM has engaged H.S. Dent Advisor, Inc. to serve as subadvisor and provide AIM with microeconomic, thematic, demographic, lifestyle trends and sector research, custom reports and investment and market capitalization recommendations to the fund. Pioneer Investment Management, Inc. ("Pioneer") serves as investment adviser to the Pioneer Variable Contracts Trust. The Pioneer Variable Contracts Trust pays Pioneer a monthly advisory fee based on the daily net assets of each portfolio. INVESCO Funds Group, Inc. ("INVESCO") serves as investment adviser for the INVESCO Variable Investment Funds, Inc. INVESCO, with its affiliated companies, directs all aspects of the management of the INVESCO Variable Investment Funds, Inc. The INVESCO Variable Investment Funds, Inc. pays INVESCO a monthly advisory fee based on the average daily net assets of each portfolio. Each portfolio deducts portfolio management fees and charges from the amounts you have invested in the portfolios. In addition, five portfolios deduct a service fee, which is used to compensate service providers for administrative and contract holder services provided on behalf of the portfolios, and nine portfolios deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of shares of the applicable portfolio. There are an additional three portfolios that may deduct a distribution or 12b-1 fee but currently do not. Based on actual portfolio experience in 2000, together with estimated costs for new portfolios, total estimated portfolio fees and charges for 2001 range from 0.55% to 1.86%. See "Fees and Expenses" in this prospectus. We may receive compensation from the investment advisors, administrators and distributors or directly from the portfolios in connection with administrative, distribution or other services and cost savings attributable to our services. It is anticipated that such compensation will be based on assets of the particular portfolios attributable to the Contract. The compensation paid by advisors, administrators or distributors may vary. ACC - 121360 21 YOU CAN FIND MORE DETAILED INFORMATION ABOUT EACH PORTFOLIO INCLUDING ITS MANAGEMENT FEES IN THE PROSPECTUS FOR EACH TRUST. YOU SHOULD READ THESE PROSPECTUSES BEFORE INVESTING. RESTRICTED FUNDS We may designate any investment option as a Restricted Fund and limit the amount you may allocate or transfer to a Restricted Fund. We may establish any such limitation, at our discretion, as a percentage of premium or contract value or as a specified dollar amount and change the limitation at any time. Currently, we have not designated any investment option as a Restricted Fund. We may, with 30 days notice to you, designate any investment portfolio as a Restricted Fund or change the limitations on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. If a change is made with regard to designation as a Restricted Fund or applicable limitations, such change will apply only to transactions effected after such change. We limit your investment in the Restricted Funds on both an aggregate basis for all Restricted Funds and for each individual Restricted Fund. The aggregate limits for investment in all Restricted Funds are expressed as a percentage of contract value, percentage of premium and maximum dollar amount. Currently, your investment in two or more Restricted Funds would be subject to each of the following three limitations: no more than 30 percent of contract value, up to 100 percent of each premium and no more than $999,999,999. We may change these limits, in our discretion, for new contracts, premiums, transfers or withdrawals. We also limit your investment in each individual Restricted Fund. The limits for investment in each Restricted Fund are expressed as a percentage of contract value, percentage of premium and maximum dollar amount. Currently, the limits for investment in an individual Restricted Fund are the same as the aggregate limits set forth above. We may change these limits, in our discretion, for new contracts, premiums, transfers or withdrawals. We monitor the aggregate and individual limits on investments in Restricted Funds for each transaction (e.g. premium payments, reallocations, withdrawals, dollar cost averaging). If the contract value in the Restricted Fund has increased beyond the applicable limit due to market growth, we will not require the reallocation or withdrawal of contract value from the Restricted Fund. However, if an aggregate limit has been exceeded, withdrawals must be taken either from the Restricted Funds or taken pro rata from all investment options in which contract value is allocated, so that the percentage of contract value in the Restricted Funds following the withdrawal is less than or equal to the percentage of contract value in the Restricted Funds prior to the withdrawal. We will not permit a transfer to the Restricted Funds to the extent that it would increase the contract value in the Restricted Fund or in all Restricted Funds to more than the applicable limits set forth above. We will not limit transfers from Restricted Funds. If the result of multiple reallocations is to lower the percentage of total contract value in Restricted Funds, the reallocation will be permitted even if the percentage of contract value in a Restricted Fund is greater than its limit. Please see "Withdrawals" and "Transfers Among Your Investments" in this prospectus for more information on the effect of Restricted Funds. ACC - 121360 22 -------------------------------------------------------------------------------- SPECIAL FUNDS -------------------------------------------------------------------------------- We use the term Special Funds in the discussion of the enhanced death benefit options and the optional riders. The Special Funds currently include the Liquid Asset subaccount, Limited Maturity Bond subaccount and the Fixed Interest Allocations. The Company may, at any time, designate new and/or existing subaccounts as a Special Fund with 30 days notice with respect to new premiums added or transfers to such subaccounts. Such subaccounts will include those that, due to their volatility, are excluded from the death benefit and/or living benefit guarantees that may otherwise be provided. Allocations to Special Funds will not affect the death benefit that may be available under the earnings multiplier benefit rider. Designation of a subaccount as a Special Fund may vary by benefit. For example, a subaccount may be designated a Special Fund for purposes of calculating a living benefit, but not a death benefit or for calculating one death benefit and not another. -------------------------------------------------------------------------------- THE ANNUITY CONTRACT -------------------------------------------------------------------------------- The Contract described in this prospectus is a deferred combination variable and fixed annuity contract. The Contract provides a means for you to invest in one or more of the available mutual fund portfolios of the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Prudential Series Fund, the Pilgrim Variable Products Trust, the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust and the INVESCO Variable Investment Funds, Inc. through Separate Account B. It also provides a means for you to invest in a Fixed Interest Allocation through the Fixed Account. See the GoldenSelect Fixed Account I prospectus for more information on the Fixed Interest Allocation and Fixed Account. CONTRACT DATE AND CONTRACT YEAR The date the Contract became effective is the contract date. Each 12- month period following the contract date is a contract year. ANNUITY START DATE The annuity start date is the date you start receiving annuity payments under your Contract. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the income phase. The accumulation phase is the period between the contract date and the annuity start date. The income phase begins when you start receiving regular annuity payments from your Contract on the annuity start date. CONTRACT OWNER You are the contract owner. You are also the annuitant unless another annuitant is named in the application. You have the rights and options described in the Contract. One or more persons may own the Contract. If there are multiple owners named, the age of the oldest owner will determine the applicable death benefit if such death benefit is available for multiple owners. The death benefit becomes payable when you die. In the case of a sole contract owner who dies before the income phase begins, we will pay the beneficiary the death benefit then due. The sole contract owner's estate will be the beneficiary if no beneficiary has been designated or the beneficiary has predeceased the contract owner. In the case of a joint owner of the Contract dying before the income phase begins, we will designate the surviving contract owner as the beneficiary. This will override any previous beneficiary designation. If the contract owner is a trust and a beneficial owner of the trust has been designated, the beneficial owner will be treated as the contract owner for determining the death benefit. If a beneficial owner is changed or added after the contract date, this will be treated as a change of contract owner for determining the death benefit. If no beneficial owner of the Trust has been designated, the availability of enhanced death benefits will be based on the age of the annuitant at the time you purchase the Contract. ACC - 121360 23 JOINT OWNER. For non-qualified Contracts only, joint owners may be named in a written request before the Contract is in effect. Joint owners may independently exercise transfers and other transactions allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. All rights of a joint owner end at death of that owner if the other joint owner survives. The entire interest of the deceased joint owner in the Contract will pass to the surviving joint owner and the death benefit will be payable. Joint owners may only select the Standard Death Benefit option. The earnings multiplier benefit rider is not available when there are joint owners. Any addition or deletion of a joint owner is treated as a change of owner which may affect the amount of the death benefit. See "Change of Contract Owner or Beneficiary" below. If you have elected an enhanced death benefit, and you add a joint owner, if the older joint owner is attained age 85 or under, the enhanced death benefit from the date of change will end, and the Standard Death Benefit will apply. For all death benefit options, if the older joint owner's attained age is 86 or over on the date of the ownership change, the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. If you elected the earnings multiplier benefit rider, it will terminate if a joint owner is added. Note that returning a Contract to single owner status will not restore any Enhanced Death Benefit or the earnings multiplier benefit. Unless otherwise specified, the term "age" when used for joint owners shall mean the age of the oldest owner. ANNUITANT The annuitant is the person designated by you to be the measuring life in determining annuity payments. The annuitant's age determines when the income phase must begin and the amount of the annuity payments to be paid. You are the annuitant unless you choose to name another person. The annuitant may not be changed after the Contract is in effect. The contract owner will receive the annuity benefits of the Contract if the annuitant is living on the annuity start date. If the annuitant dies before the annuity start date and a contingent annuitant has been named, the contingent annuitant becomes the annuitant (unless the contract owner is not an individual, in which case the death benefit becomes payable). If there is no contingent annuitant when the annuitant dies before the annuity start date, the contract owner will become the annuitant. The contract owner may designate a new annuitant within 60 days of the death of the annuitant. If there is no contingent annuitant when the annuitant dies before the annuity start date and the contract owner is not an individual, we will pay the designated beneficiary the death benefit then due. If a beneficiary has not been designated, or if there is no designated beneficiary living, the contract owner will be the beneficiary. If the annuitant was the sole contract owner and there is no beneficiary designation, the annuitant's estate will be the beneficiary. Regardless of whether a death benefit is payable, if the annuitant dies and any contract owner is not an individual, distribution rules under federal tax law will apply. You should consult your tax advisor for more information if you are not an individual. BENEFICIARY The beneficiary is named by you in a written request. The beneficiary is the person who receives any death benefit proceeds and who becomes the successor contract owner if the contract owner (or the annuitant if the contract owner is other than an individual) dies before the annuity start date. We pay death benefits to the primary beneficiary (unless there are joint owners, in which case death proceeds are payable to the surviving owner(s)). If the beneficiary dies before the annuitant or the contract owner, the death benefit proceeds are paid to the contingent beneficiary, if any. If there is no surviving beneficiary, we pay the death benefit proceeds to the contract owner's estate. ACC - 121360 24 One or more persons may be a beneficiary or contingent beneficiary. In the case of more than one beneficiary, we will assume any death benefit proceeds are to be paid in equal shares to the surviving beneficiaries. You have the right to change beneficiaries during the annuitant's lifetime unless you have designated an irrevocable beneficiary. When an irrevocable beneficiary has been designated, you and the irrevocable beneficiary may have to act together to exercise some of the rights and options under the Contract. CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's lifetime, you may transfer ownership of a non-qualified Contract. A change in ownership may affect the amount of the death benefit, the guaranteed minimum death benefit and/or the death benefit applied to the contract, the amount of the earnings multiplier benefit, if applicable, and the continuation of any other optional rider that you have elected. The new owner's age, as of the date of the change, will be used as the basis for determining the applicable benefits and charges. The new owner's death will determine when a death benefit is payable. If you have elected the Standard Death Benefit option, the minimum guaranteed death benefit will continue if the new owner is age 85 or under on the date of the ownership change. For the enhanced death benefit options, if the new owner is age 79 or under on the date that ownership changes, the minimum guaranteed death benefit will continue. If the new owner is age 80 to 85, the enhanced death benefit will end, and the death benefit will become the Standard Death Benefit. For all death benefit options, if the new owner's attained age is 86 or over on the date of the ownership change, the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. Please note that once a death benefit has been changed due to a change in owner, a subsequent change to a younger owner will not restore any Enhanced Death Benefits. If you have elected the earnings multiplier benefit rider, and the new owner is under age 76, the rider will continue. The benefit and charge will be adjusted to reflect the attained age of the new owner as the issue age. The Maximum Base and Benefit Base percentages in effect on the original rider date will be used to calculate the benefit. If the new owner is age 76 or over, the rider will terminate. If you have not elected the earnings multiplier benefit rider, the new owner may not add the rider upon the change of ownership. If you have elected another optional rider, the rider will terminate upon a change of ownership. You may also change the beneficiary. All requests for changes must be in writing and submitted to our Customer Service Center in good order. The change will be effective as of the day you sign the request. The change will not affect any payment made or action taken by us before recording the change. A change of owner may have tax consequences. PURCHASE AND AVAILABILITY OF THE CONTRACT We will issue a Contract only if both the annuitant and the contract owner are not older than age 90. The initial premium payment must be $10,000 or more ($1,500 for qualified Contracts). You may make additional payments of at least $500 or more ($50 for qualified Contracts) at any time after the free look period before you turn age 85. Under certain circumstances, we may waive the minimum premium payment requirement. We may also change the minimum initial or additional premium requirements for certain group or sponsored arrangements. Any initial or additional premium payment that would cause the contract value of all annuities that you maintain with us to exceed $1,000,000 requires our prior approval. IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other benefits including death benefits and the ability to receive a lifetime income. See "Fees and Expenses" in this prospectus. CREDITING OF PREMIUM PAYMENTS We will process your initial premium within 2 business days after receipt, if the application and all information necessary for processing the Contract are complete. Subsequent premium payments will be processed within 1 business day if we receive all information necessary. In certain states we also accept initial and additional premium payments by wire order. Wire transmittals must be accompanied by ACC - 121360 25 sufficient electronically transmitted data. We may retain your initial premium payment for up to 5 business days while attempting to complete an incomplete application. If the application cannot be completed within this period, we will inform you of the reasons for the delay. We will also return the premium payment immediately unless you direct us to hold the premium payment until the application is completed. We will allocate your initial payment according to the instructions you specified. If a subaccount is not available or requested in error, we will make inquiry about a replacement subaccount. If we are unable to reach you or your representative, we will consider the application incomplete. For initial premium payments, the payment will be credited at the accumulation unit value next determined after we receive your premium payment and the completed application. Once the completed application is received, we will allocate the payment to the subaccount(s) and/or Fixed Interest Allocation(s) specified by you within 2 business days. We will make inquiry to discover any missing information related to subsequent payments. We will allocate the subsequent payment(s) pro-rata according to the current variable subaccount allocation unless you specify otherwise. Any fixed allocation(s) will not be considered in the pro-rata calculations. If a subaccount is no longer available or requested in error, we will allocate the subsequent payment(s) proportionally among the other subaccount(s) in your current allocation or your allocation instructions. For any subsequent premium payments, the payment will be credited at the accumulation unit value next determined after receipt of your premium payment and instructions. Once we allocate your premium payment to the subaccounts selected by you, we convert the premium payment into accumulation units. We divide the amount of the premium payment allocated to a particular subaccount by the value of an accumulation unit for the subaccount to determine the number of accumulation units of the subaccount to be held in Separate Account B with respect to your Contract. The net investment results of each subaccount vary with its investment performance. If your premium payment was transmitted by wire order from your broker-dealer, we will follow one of the following two procedures after we receive and accept the wire order and investment instructions. The procedure we follow depends on state availability and the procedures of your broker-dealer. (1) If either your state or broker-dealer do not permit us to issue a Contract without an application, we reserve the right to rescind the Contract if we do not receive and accept a properly completed application or enrollment form within 5 days of the premium payment. If we do not receive the application or form within 5 days of the premium payment, we will refund the contract value plus any charges we deducted, and the Contract will be voided. Some states require that we return the premium paid, in which case we will comply. (2) If your state and broker-dealer allow us to issue a Contract without an application, we will issue and mail the Contract to you, or your representative, together with an Application Acknowledgement Statement for your execution. Until our Customer Service Center receives the executed Application Acknowledgement Statement, neither you nor the broker-dealer may execute any financial transactions on your Contract unless they are requested in writing by you. We may require additional information before complying with your request (e.g., signature guarantee). In some states, we may require that an initial premium designated for a subaccount of Separate Account B or the Fixed Account be allocated to a subaccount specially designated by the Company (currently, the Liquid Asset subaccount) during the free look period. After the free look period, we will convert your contract value (your initial premium plus any earnings less any expenses) into accumulation units of the subaccounts you previously selected. The accumulation units will be allocated based on the accumulation unit value next computed for each subaccount. Initial premiums designated for Fixed Interest Allocations will be allocated to a Fixed Interest Allocation with the guaranteed interest period you have chosen; however, in the fututre we may allocate the premiums to the specially designated subaccount during the free look period. ACC - 121360 26 ADMINISTRATIVE PROCEDURES We may accept a request for Contract service in writing, by telephone, or other approved electronic means, subject to our administrative procedures, which vary depending on the type of service requested and may include proper completion of certain forms, providing appropriate identifying information, and/or other administrative requirements. We will process your request at the contract value next determined only after you have met all administrative requirements. CONTRACT VALUE We determine your contract value on a daily basis beginning on the contract date. Your contract value is the sum of (a) the contract value in the Fixed Interest Allocations, and (b) the contract value in each subaccount in which you are invested. CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract value in the subaccount in which you are invested is equal to the initial premium paid and designated to be allocated to the subaccount. On the contract date, we allocate your contract value to each subaccount and/or a Fixed Interest Allocation specified by you, unless the Contract is issued in a state that requires the return of premium payments during the free look period, in which case, the portion of your initial premium not allocated to a Fixed Interest Allocation may be allocated to a subaccount specially designated by the Company during the free look period for this purpose (currently, the Liquid Asset subaccount). On each business day after the contract date, we calculate the amount of contract value in each subaccount as follows: (1) We take the contract value in the subaccount at the end of the preceding business day. (2) We multiply (1) by the subaccount's Net Investment Factor since the preceding business day. (3) We add (1) and (2). (4) We add to (3) any additional premium payments, and then add or subtract any transfers to or from that subaccount. (5) We subtract from (4) any withdrawals, and then subtract any contract fees (including any rider charges) and premium taxes. CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value will fluctuate daily based on the investment results of the subaccounts in which you are invested and interest credited to Fixed Interest Allocations and any Market Value Adjustment. See the GoldenSelect Fixed Account I prospectus for description of the calculation of values under any Fixed Interest Allocation. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your contract value, then we adjust for any Market Value Adjustment, then we deduct any charge for premium taxes, the annual contract administrative fee (unless waived), and any optional benefit rider charge, and any other charges incurred but not yet deducted. SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE You may surrender the Contract at any time while the annuitant is living and before the annuity start date. A surrender will be effective on the date your written request and the Contract are received at our Customer Service Center. We will determine and pay the cash surrender value at the price next determined after receipt of all paperwork required in order for us to process your surrender. Once paid, all benefits under the Contract will be terminated. For administrative purposes, we will transfer your money to a specially designated subaccount (currently the Liquid Asset subaccount) prior to processing the surrender. This transfer will have no effect on your cash surrender value. You may receive the cash surrender value in a single sum payment or apply it under one or more annuity options. We will usually pay the cash surrender value within 7 days. ACC - 121360 27 Consult your tax adviser regarding the tax consequences associated with surrendering your Contract. A surrender made before you reach age 59 1/2 may result in a 10% tax penalty. See "Federal Tax Considerations" for more details. THE SUBACCOUNTS Each of the subaccounts of Separate Account B offered under this prospectus invests in an investment portfolio with its own distinct investment objectives and policies. Each subaccount of Separate Account B invests in a corresponding portfolio of the GCG Trust, the PIMCO Variable Insurance Trust, the Pilgrim Variable Insurance Trust, the Prudential Series Fund, the Pilgrim Variable Products Trust, the ProFunds, the AIM Variable Insurance Funds, the Pioneer Variable Contracts Trust or the INVESCO Variable Investment Funds, Inc. ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES We may make additional subaccounts available to you under the Contract. These subaccounts will invest in investment portfolios we find suitable for your Contract. We may amend the Contract to conform to applicable laws or governmental regulations. If we feel that investment in any of the investment portfolios has become inappropriate to the purposes of the Contract, we may, with approval of the SEC (and any other regulatory agency, if required) substitute another portfolio for existing and future investments. If you have elected the dollar cost averaging, systematic withdrawals, or automatic rebalancing programs or if you have other outstanding instructions, and we substitute or otherwise eliminate a portfolio which is subject to those instructions, we will execute your instructions using the substituted or proposed replacement portfolio, unless you request otherwise. The substitute or proposed replacement portfolio may have higher fees and charges than any portfolio it replaces. We also reserve the right to: (i) deregister Separate Account B under the 1940 Act; (ii) operate Separate Account B as a management company under the 1940 Act if it is operating as a unit investment trust; (iii) operate Separate Account B as a unit investment trust under the 1940 Act if it is operating as a managed separate account; (iv) restrict or eliminate any voting rights as to Separate Account B; and (v) combine Separate Account B with other accounts. We will, of course, provide you with written notice before any of these changes are effected. THE FIXED ACCOUNT The Fixed Account is a segregated asset account which contains the assets that support a contract owner's Fixed Interest Allocations. See the GoldenSelect Fixed Account I prospectus for more information. OPTIONAL RIDERS Subject to state availability, you may elect one of the three optional benefit riders discussed below. You may not add more than one of these three riders to your Contract. There is a separate charge for each rider. Once elected, the riders generally may not be cancelled. This means once you add the rider, you may not remove it, and charges will be assessed regardless of the performance of your Contract. Please see "Charges and Fees -- Optional Rider Charges" for information on rider charges. The following describes the optional riders for Contracts in the Yr-2001 and May-2001 categories. Please see Appendix D for a description of the calculation of the optional rider benefits applicable under your Contract if another category applies. THE OPTIONAL RIDERS MAY NOT BE AVAILABLE FOR ALL INVESTORS. YOU SHOULD ANALYZE EACH RIDER THOROUGHLY AND UNDERSTAND IT COMPLETELY BEFORE YOU SELECT ANY. THE OPTIONAL RIDERS DO NOT GUARANTEE ANY RETURN OF PRINCIPAL OR PREMIUM PAYMENTS AND DO NOT GUARANTEE PERFORMANCE OF ANY SPECIFIC INVESTMENT PORTFOLIO UNDER THE CONTRACT. YOU SHOULD CONSULT A QUALIFIED FINANCIAL ADVISER IN EVALUATING THE RIDERS. THE OPTIONAL RIDERS MAY NOT BE APPROVED IN ALL STATES. CHECK WITH OUR CUSTOMER SERVICE CENTER FOR AVAILABILITY IN YOUR STATE. THE TELEPHONE NUMBER IS (800) 366-0066. ACC - 121360 28 RIDER DATE. We use the term rider date in the discussion of the optional benefit riders below. The rider date is the date an optional benefit rider becomes effective. The rider date is also the contract date if the rider was purchased at the time the Contract is issued. NO CANCELLATION. Once you purchase a rider, the rider may not be cancelled, unless you cancel the Contract during the Contract's free look period, surrender, annuitize, or otherwise terminate the Contract which automatically cancels any attached rider. Once the Contract continues beyond the free look period, you may not at any time cancel the rider, except with respect to a one-time right to cancel the twenty-year option of the Minimum Guaranteed Accumulation Benefit rider under specified conditions. The Company may, at its discretion, cancel and/or replace a rider at your request in order to renew or reset a rider. TERMINATION. The optional riders are "living benefits." This means that the guaranteed benefits offered by the riders are intended to be available to you while you are living and while your Contract is in the accumulation phase. The optional riders automatically terminate (and all benefits under the rider will cease) if you annuitize, surrender or otherwise terminate your Contract or die (first owner to die if there are multiple contract owners, or at death of annuitant if contract owner is not a natural person), unless your spouse beneficiary elects to continue the Contract, during the accumulation phase. The optional rider will also terminate if there is a change in contract ownership (other than a spousal beneficiary continuation on your death). Other circumstances which may cause a particular optional rider to terminate automatically are discussed below with the applicable rider. MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB) RIDER. The MGAB rider is an optional benefit which provides you with an MGAB benefit intended to guarantee a minimum contract value at the end of a specified waiting period. The MGAB is a one-time adjustment to your contract value in the event your contract value on the MGAB Benefit Date is less than a specified amount. The MGAB rider may offer you protection in the event your Contract loses value during the MGAB waiting period. For discussion of the charges we deduct under the MGAB rider, see "Optional Rider Charges." The MGAB rider offers a ten-year option and a twenty-year option, of which you may purchase only one. The ten-year option has a waiting period of ten years and, other than for allocations to Special Funds, guarantees that your contract value at the end of ten years will at least equal your initial premium payment, reduced pro-rata for withdrawals. Transfers made within 3 years prior to the MGAB Benefit Date will also reduce the benefit pro-rata. The twenty-year option has a waiting period of twenty years and, other than allocations to Special Funds, guarantees that your contract value at the end of twenty years will at least equal two times your initial premium payment, reduced pro-rata for withdrawals and reduced for transfers made within 3 years prior to the MGAB Benefit Date. If you add the 20 year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special Funds, may prevent the MGAB Base from doubling over the waiting period. On the MGAB Benefit Date, which is the next business day after the applicable waiting period, we calculate your Minimum Guaranteed Accumulation Benefit. CALCULATING THE MGAB. We calculate your MGAB as follows: 1. WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. The MGAB Base is tracked separately for Special and Non-Special Funds, based on the initial allocation of premium (or contract value), subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The aggregate MGAB Base is used to determine the MGAB on the MGAB Benefit Date. THE AGGREGATE MGAB BASE EQUALS THE SUM OF (1) THE LESSER OF THE MGAB BASE ALLOCATED TO SPECIAL FUNDS AND THE CONTRACT VALUE IN THE SPECIAL FUNDS; AND (2) THE MGAB BASE FOR NON-SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGAB BENEFIT. HOWEVER, THE MGAB BASE IS ALSO SUBJECT TO A "FLOOR" WHICH MAY PARTIALLY OFFSET THE EFFECTS OF INVESTING IN SPECIAL FUNDS. ACC - 121360 29 If you purchased the MGAB rider on the contract date, and (i) elected the ten-year option, your MGAB Base for Special and Non-Special Funds is equal to your initial premium plus any additional premium added to your Contract during the 2-year period after your rider date, reduced pro-rata for any withdrawals and any transfers made within 3 years prior to the MGAB Benefit Date; or (ii) elected the twenty-year option your MGAB Base for Special and Non-Special Funds is equal to your initial premium, plus any additional premium added to your Contract during the 2-year period after your contract date, accumulated at the MGAB Rate reduced pro-rata for any withdrawals and reduced for any transfers made within 3 years prior to the MGAB Benefit Date. The MGAB Rate is the annual effective rate of 3.5265%. Accumulation of eligible additional premiums starts on the date the premium was received. If you purchased the MGAB rider after the contract date, your MGAB Base is equal to your contract value on the rider date, plus premiums added during the 2-year period after your rider date, accumulated at the MGAB Rate (if applicable, as described above) and adjusted pro-rata for withdrawals and transfers as described below. Only premiums added to your Contract during the 2-year period after your rider date are included in the MGAB Base. Any additional premium payments you added to your contract after the second rider anniversary are not included in the MGAB Base. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary. Withdrawals taken while the MGAB rider is in effect, as well as transfers made within 3 years prior to the MGAB Benefit Date, will reduce the value of your MGAB Base pro rata. This means that the MGAB Base (and the MGAB Charge Base) will be reduced by the same percent as the percent of contract value that was withdrawn (or transferred). We will look to your contract value immediately before the withdrawal or transfer when we determine this percent. Net transfers from Special Funds to Non-Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Special Funds on a pro rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Non-Special Funds equal to the lesser of the reduction in the MGAB Base for Special Funds and the net contract value transferred. Net transfers from Non-Special Funds to Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Non-Special Funds on a pro rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Special Funds equal to the reduction in the MGAB Base for Non-Special Funds. 2. THEN WE DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGAB Base described above, except as follows: For the ten-year option, all investments will be treated as Non-Special Funds. For the twenty-year option, if you transfer contract value to a Special Fund more than 3 years before the Benefit Date, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the MGAB Rate described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals and other transfers will reduce the floor as described for the MGAB Base above. ACC - 121360 30 3. WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB BENEFIT DATE FROM THE GREATER OF THE FLOOR AND YOUR AGGREGATE MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 4. ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it to the subaccounts in which you are invested pro-rata based on the proportions of your then contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Benefit Date, we will allocate the MGAB to the Liquid Asset subaccount on your behalf. After the crediting of the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. PURCHASE. To purchase the MGAB rider, you must be age 80 or younger on the rider date if you choose the ten-year option and age 65 or younger on the rider date if you choose the twenty-year option. The waiting period must end at or before your annuity start date. The MGAB rider may be purchased (i) on the contract date, and (ii) within 30 days following the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. THE MGAB BENEFIT DATE. If you purchased the MGAB rider on the contract date or added the MGAB rider within 30 days following the contract date, the MGAB Benefit Date is your 10th contract anniversary for the ten-year option or 20th contract anniversary for the twenty-year option. If you added the MGAB rider during the 30-day period preceding your first contract anniversary after the date of this prospectus, your MGAB Benefit Date will be the first contract anniversary occurring after 10 years (for the ten-year option) or 20 years (for the twenty-year option) after the rider date. The MGAB rider is not available if the MGAB Benefit Date would fall beyond the latest annuity start date. CANCELLATION. If you elected the twenty-year option, you have a one-time right to cancel the MGAB rider on your first contract anniversary that is at least 10 years after the rider date. If you purchased the MGAB rider during the 30-day period following the contract date, your one-time right to cancel the rider occurs on the tenth anniversary of your contract date. To cancel, you need to send written notice to our Customer Service Center at least 30 days before such anniversary date. If the MGAB rider is terminated before the MGAB Benefit Date, you will not be credited with the MGAB and we assess the pro-rata portion of the MGAB rider changes for the current quarter. NOTIFICATION. Any crediting of the MGAB will be reported in your first quarterly statement following the MGAB Benefit Date. MINIMUM GUARANTEED INCOME BENEFIT (MGIB) RIDER. The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Benefit Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to the Special Funds, the MGIB Rate, the adjustment for Special Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds may limit the MGIB benefit. However, the MGIB Benefit Base is also subject to a "floor" which may partially offset the effects of investing in Special Funds. For a discussion of the charges we deduct under the MGIB rider, see "Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greatest of: ACC - 121360 31 (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the Golden American Fixed Account prospectus) on the MGIB Benefit Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; (ii) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the Golden American Fixed Account prospectus) on the MGIB Benefit Date applied to the then current income factors in effect for the annuity option you selected; and (iii)the MGIB annuity income based on the greater of the floor and your MGIB Benefit Base on the MGIB Benefit Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust both the floor and the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the Golden American Fixed Account prospectus) that would otherwise apply at annuitization. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Benefit Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Benefit Date. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BENEFIT BASE. The MGIB Benefit Base is only a calculation used to determine the MGIB. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. The MGIB Base is tracked separately for Special and Non-Special Funds, based on initial allocation of eligible premium (or contract value) and subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The MGIB Benefit Base equals the sum of (1) the contract value of Special Funds, and (2) the MGIB Base for Non-Special Funds. The MGIB Base is equal to the lesser of (i) and (ii) where: (a) is your initial premium (or contract value on the rider date if you purchased the MGIB rider after the contract date), plus any eligible additional premiums added to your Contract, reduced pro-rata by all withdrawals taken while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and reaching the MGIB Base Maximum, and at 0% thereafter; and (b) is the MGIB Base Maximum, which equals 200% of allocated eligible premiums, adjusted for withdrawals and transfers. Eligible additional premium payments are those added more than 5 years before the earliest MGIB Benefit Date and are included in the MGIB Base. Premiums paid after that are excluded from the MGIB Base. Net transfers from Special Funds to Non-Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Special Funds on a pro rata basis. The resulting increase in the MGIB Base for Non-Special Funds will equal the lesser of the reduction in the MGIB Base for Special Funds and the net contract value transferred. The increase in the MGIB Base Maximum for Non-Special Funds equals the reduction in the MGIB Base Maximum for Special Funds. ACC - 121360 32 Net transfers from Non-Special Funds to Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Non-Special Funds on a pro rata basis. The resulting increase in the MGIB Base and the MGIB Base Maximum for Special Funds equals the reduction in the MGIB Base and MGIB Base Maximum for Non-Special Funds. Transfers to one or more Special Funds could reduce the MGIB Benefit. The MGIB Rate is currently 7%. The Company may at its discretion discontinue offering this rate. The MGIB Rate is an annual effective rate. 2. WE THEN DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGIB Base described above, except as follows: If you transfer contract value to a Special Fund, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the MGIB Rate described above, subject to the age limit and the Maximum described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the MGIB Base above. 3. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING THE GREATER OF THE MINIMUM FLOOR AND YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT AND PREMIUM TAXES) BY THE APPLICABLE INCOME FACTOR, AND THEN DIVIDING BY $1,000. The MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10-30 Year Certain; (ii) Income for a 20-30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the greater of the floor and the MGIB Benefit Base under the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten-year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before the MGIB rider can be exercised. THE MGIB BENEFIT DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Benefit Date is the contract anniversary next following or is incident with exercise of your option to annuitize after a ten-year waiting period from the contract date. If you added the MGIB rider at any other time, your MGIB Benefit Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuities under the MGIB rider. ACC - 121360 33 NO CHANGE OF ANNUITANT. Once the MGIB rider is purchased, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Benefit Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise. The actual amount of the MGIB annuity benefit will be determined as of the MGIB Benefit Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN THE MORE FAVORABLE STREAM OF INCOME PAYMENTS UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB) RIDER. The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments equal to all premium payments paid during the first two contract years (Eligible Payment Amount) adjusted for any prior withdrawals. To maintain this guarantee, withdrawals in any contract year may not exceed 7% of your adjusted Eligible Payment Amount. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. For a discussion of the charges we deduct under the MGWB rider, see "Optional Rider Charges." Your original Eligible Payment Amount depends on when you purchase the MGWB rider and is: (i) if you purchased the MGWB rider on the contract date, your premium payments received during the first two contract years; or (ii) if you purchased the MGWB rider after the contract date, your contract value on the rider date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the rider date. THE MGWB WITHDRAWAL ACCOUNT. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount, tracked separately for Special and Non-Special Funds, adjusted for any withdrawals and transfers between Special and Non-Special Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO NON-SPECIAL FUNDS, AND (B) THE LESSER OF (1) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO SPECIAL FUNDS AND (2) THE CONTRACT VALUE IN THE SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. However, the MGWB Withdrawal Account is also subject to a "floor" which may partially offset the effects of investing in Special Funds. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal for Non-Special Funds and pro rata for Special Funds, based on the source of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Special and Non-Special Funds by the proportion that the withdrawal bears to the Contract Value of the Special and Non-Special Funds, respectively, at the time of the withdrawal. If a single withdrawal involves both Special and Non-Special Funds and causes the 7% to be exceeded, the withdrawal will be treated as taken first from Non- ACC - 121360 34 Special Funds. Any withdrawals greater than 7% per year of the Eligible Payment Amount will also cause a reduction in the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB Withdrawal Account is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the MGWB Withdrawal Account is greater than the floor and a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Special Funds to Non-Special Funds will reduce the MGWB Withdrawal Account allocated to Special Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Non-Special Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Special Funds and the net contract value transferred. Net transfers from Non-Special Funds to Special Funds will reduce the MGWB Withdrawal Account allocated to Non-Special Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Special Funds equals the reduction in the MGWB Withdrawal Account for Non-Special Funds. THE FLOOR FOR YOUR MGWB WITHDRAWAL ACCOUNT is equal to the Eligible Payment Amount adjusted for any withdrawals. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the floor by the dollar amount of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the floor for the MGWB Withdrawal Account and the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The floor is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the floor is greater than the MGWB Withdrawal Account and a withdrawal reduces the floor to zero, the MGWB rider terminates and no further benefits are payable under the rider. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." Making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider, will remain in force, and you may continue to make withdrawals so long as: (i) your contract value is greater than zero; (ii) your MGWB Withdrawal Account or the floor is greater than zero; (iii)your latest allowable annuity start date has not been reached; (iv) you have not elected to annuitize your Contract; and (v) you have not died (unless your spouse has elected to continue the contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero your Contract is given what we refer to as Automatic Periodic Benefit Status if the following conditions exist: (i) your MGWB Withdrawal Account or the floor is greater than zero; (ii) your latest allowable annuity start date has not been reached; (iii)you have not elected to annuitize your Contract; and (iv) you have not died, changed the ownership of the Contract or surrendered the Contract. ACC - 121360 35 Once your Contract is given Automatic Periodic Benefit Status, the greater of the floor and the MGWB Withdrawal Account will be treated as the MGWB Withdrawal Account to determine any rider benefits. We will pay you the annual MGWB periodic payments, beginning on the next contract anniversary equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount until the earliest of (i) your contract's latest annuity start date, (ii) the death of the owner; or (iii) until your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status (that is, your contract value is zero), we will not accept any additional premium payments in your Contract, and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, and (ii) payment of the Commuted Value (defined below) or (iii) the owner's death has occurred. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury Strips as quoted by a national quoting service for period(s) applicable to the remaining payments. Once the last MGWB periodic payment is made or we pay you the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. If you have never withdrawn more than 7% per year of the Eligible Payment Amount and you elected the 7% Solution Enhanced Death Benefit in your Contract (or you elected the Max 7 Enhanced Death Benefit resulting in the 7% Solution Enhanced Death Benefit as the actual benefit), the death benefit otherwise payable under the terms of your Contract will remain in force during any Automatic Periodic Benefit Status. In determining the amount of the death benefit during the Automatic Periodic Benefit Status, we deem your contract value to be zero and treat the MGWB periodic payments as withdrawals. In all other cases, the death benefit payable during Automatic Periodic Benefit Status is the greater of the floor and your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. If you elected the Max 7 Enhanced Death Benefit, then the 7% Solution and the Annual Ratchet components shall each be calculated as if each were the elected death benefit option. PURCHASE. To purchase the MGWB rider, your must be age 80 or younger on the rider date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval whichever is later. OTHER CONTRACTS We offer other variable annuity contracts that also invest in the same portfolios of the Trusts. These contracts have different charges that could affect their performance, and may offer different benefits more suitable to your needs. To obtain more information about these other contracts, contact our Customer Service Center or your registered representative. OTHER IMPORTANT PROVISIONS See "Withdrawals," "Transfers Among Your Investments," "Death Benefit Choices," "Charges and Fees," "The Annuity Options" and "Other Contract Provisions" in this prospectus for information on other important provisions in your Contract. ACC - 121360 36 -------------------------------------------------------------------------------- WITHDRAWALS -------------------------------------------------------------------------------- Any time during the accumulation phase and before the death of the contract owner, except under certain qualified contracts you may withdraw all or part of your money. Keep in mind that if you request a withdrawal for more than 90% of the cash surrender value, we will treat it as a request to surrender the Contract. You need to submit to us a written request specifying the Fixed Interest Allocations or subaccounts from which amounts are to be withdrawn, otherwise the withdrawal will be made on a pro rata basis from all of the subaccounts in which you are invested. If there is not enough contract value in the subaccounts, we will deduct the balance of the withdrawal from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until we have honored your request. We will apply a Market Value Adjustment to any withdrawal from the Fixed Interest Allocation taken more than 30 days before its maturity date. We will determine the contract value as of the close of business on the day we receive your withdrawal request at our Customer Service Center. The contract value may be more or less than the premium payments made. If the aggregate percentage cap on allocations to the Restricted Funds has been exceeded, any subsequent withdrawals must be taken so that the percentage of contract value in the Restricted Funds following the withdrawal would not be greater than the percentage of contract value in the Restricted Funds prior to the withdrawal. If a requested withdrawal would cause the percentage cap to be exceeded, the amount of the withdrawal in excess of the cap would be taken pro rata from all variable subaccounts. For administrative purposes, we will transfer your money to a specially designated subaccount (currently, the Liquid Asset subaccount) prior to processing the withdrawal. This transfer will not affect the withdrawal amount you receive. Please be aware that the benefit we pay under certain optional benefit riders will be reduced by any withdrawals you take while the rider is in effect. See "Optional Riders." We offer the following three withdrawal options: REGULAR WITHDRAWALS After the free look period, you may make regular withdrawals. Each withdrawal must be a minimum of $100. We will apply a Market Value Adjustment to any regular withdrawal from a Fixed Interest Allocation that is taken more than 30 days before its maturity date. See the Golden American Fixed Account prospectus for more information on the application of Market Value Adjustment. SYSTEMATIC WITHDRAWALS You may choose to receive automatic systematic withdrawal payments (1) from the contract value in the subaccounts in which you are invested, or (2) from the interest earned in your Fixed Account Allocations. Systematic withdrawals may be taken monthly, quarterly or annually. If you have contract value allocated to one or more Restricted Funds, and you elect to receive systematic withdrawals from the subaccounts in which you are invested, the systematic withdrawals must be taken pro rata from all subaccounts in which contract value is invested. If you do not have contract value allocated to a Restricted Fund and choose systematic withdrawals on a non pro rata basis, we will monitor the withdrawals annually. If you subsequently allocate contract value to one or more Restricted Funds, we will require you to take your systematic withdrawals on a pro rata basis from all subaccounts in which contract value is invested. Systematic withdrawals do not create transfers and do not count toward the 12 transfer limit on free transfers. You decide when you would like systematic payments to start as long as it is at least 28 days after your contract date. You also select the date on which the systematic withdrawals will be made, but this date cannot be later than the 28th day of the month. If you have elected to receive systematic withdrawals but have not chosen a date, we will make the withdrawals on the same calendar day of each month as your ACC - 121360 37 contract date. If your contract date is after the 28th day of the month, your systematic withdrawal will be made on the 28th day of each month. Each systematic withdrawal amount must be a minimum of $100. The amount of your systematic withdrawal can either be (1) a fixed dollar amount, or (2) an amount based on a percentage of your contract value. Both forms of systematic withdrawals are subject to the following maximum, which is calculated on each withdrawal date: MAXIMUM PERCENTAGE FREQUENCY OF CONTRACT VALUE Monthly 1.25% Quarterly 3.75% Annually 15.00% If your systematic withdrawal is a fixed dollar amount and the amount to be withdrawn would exceed the applicable maximum percentage of your contract value on any withdrawal date, we will automatically reduce the amount withdrawn so that it equals such percentage. Thus, your fixed dollar systematic withdrawals will never exceed the maximum percentage. If you want fixed dollar systematic withdrawals to exceed the maximum percentage, consider the Fixed Dollar Systematic Withdrawal Feature which you may add to your regular fixed dollar systematic withdrawal program. If your withdrawal is based on a percentage of your contract value and the amount to be systematically withdrawn based on that percentage would be less than $100, we will automatically increase the amount to $100 as long as it does not exceed the maximum percentage. If the systematic withdrawal would exceed the maximum percentage, we will send the amount, and then automatically cancel your systematic withdrawal option. Systematic withdrawals from Fixed Interest Allocations are limited to interest earnings during the prior month, quarter, or year, depending on the frequency you chose. Systematic withdrawals are not subject to a Market Value Adjustment, unless you have added the Fixed Dollar Systematic Withdrawal Feature discussed below and the payments exceed interest earnings. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. A Fixed Interest Allocation may not participate in both the systematic withdrawal option and the dollar cost averaging program at the same time. You may change the amount or percentage of your systematic withdrawal once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. If you submit a subsequent premium payment after you have applied for systematic withdrawals, we will not adjust future withdrawals under the systematic withdrawal program unless you specifically request that we do so. The systematic withdrawal option may commence in a contract year where a regular withdrawal has been taken but you may not change the amount or percentage of your withdrawals in any contract year during which you have previously taken a regular withdrawal. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. FIXED DOLLAR SYSTEMATIC WITHDRAWAL FEATURE. You may add the Fixed Dollar Systematic Withdrawal Feature to your regular fixed dollar systematic withdrawal program. This feature allows you to receive a systematic withdrawal in a fixed dollar amount regardless of any Market Value Adjustments. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. You choose the amount of the fixed systematic withdrawals, which may total up to a maximum of 15% of your contract value as determined on the day we receive your election of this feature. The maximum limit will not be recalculated when you make additional premium payments, unless you instruct us to do so. We will assess a Market Value Adjustment on the withdrawal date if the withdrawal from a Fixed Interest Allocation exceeds your interest earnings on the withdrawal date. We will apply any Market Value Adjustment directly to your ACC - 121360 38 contract value (rather than to the withdrawal) so that the amount of each systematic withdrawal remains fixed. Flat dollar systematic withdrawals which are intended to satisfy the requirements of Section 72(q) or 72(t) of the Tax Code may exceed the maximum. Such withdrawals are subject to Market Value Adjustments when they exceed the applicable maximum percentage. IRA WITHDRAWALS If you have a non-Roth IRA Contract and will be at least age 70 1/2 during the current calendar year, you may elect to have distributions made to you to satisfy requirements imposed by federal tax law. IRA withdrawals provide payout of amounts required to be distributed by the Internal Revenue Service ("IRS") rules governing mandatory distributions under qualified plans. We will send you a notice before your distributions commence. You may elect to take IRA withdrawals at that time, or at a later date. You may not elect IRA withdrawals and participate in systematic withdrawals at the same time. If you do not elect to take IRA withdrawals, and distributions are required by federal tax law, distributions adequate to satisfy the requirements imposed by federal tax law may be made. Thus, if you are participating in systematic withdrawals, distributions under that option must be adequate to satisfy the mandatory distribution rules imposed by federal tax law. You may choose to receive IRA withdrawals on a monthly, quarterly or annual basis. Under this option, you may elect payments to start as early as 28 days after the contract date. You select the day of the month when the withdrawals will be made, but it cannot be later than the 28th day of the month. If no date is selected, we will make the withdrawals on the same calendar day of the month as the contract date. You may request that we calculate for you the amount that is required to be withdrawn from your Contract each year based on the information you give us and various choices you make. For information regarding the calculation and choices you have to make, see the SAI. Or, we will accept your written instructions regarding the calculated amount required to be withdrawn from your Contract each year. The minimum dollar amount you can withdraw is $100. When we determine the required IRA withdrawal amount for a taxable year based on the frequency you select, if that amount is less than $100, we will pay $100. At any time where the IRA withdrawal amount is greater than the contract value, we will cancel the Contract and send you the amount of the cash surrender value. You may change the payment frequency of your IRA withdrawals once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. An IRA withdrawal from a Fixed Interest Allocation in excess of the amount allowed under systematic withdrawals will be subject to a Market Value Adjustment. CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED WITH TAKING WITHDRAWALS. You are responsible for determining that withdrawals comply with applicable law. A withdrawal made before the taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See "Federal Tax Considerations" for more details. ACC - 121360 39 -------------------------------------------------------------------------------- TRANSFERS AMONG YOUR INVESTMENTS -------------------------------------------------------------------------------- You may transfer your contract value among the subaccounts in which you are invested and your Fixed Interest Allocations at the end of the free look period until the annuity start date. We currently do not charge you for transfers made during a contract year, but reserve the right to charge $25 for each transfer after the twelfth transfer in a contract year. We also reserve the right to limit the number of transfers you may make and may otherwise modify or terminate transfer privileges if required by our business judgement or in accordance with applicable law. We will apply a Market Value Adjustment to transfers from a Fixed Interest Allocation taken more than 30 days before its maturity date, unless the transfer is made under the dollar cost averaging program. Keep in mind that transfers between Special Funds and other investment portfolios may negatively impact your death benefit or rider benefits. If you allocate contract value to an investment option that has been designated as a Restricted Fund, your ability to transfer contract value to the Restricted Fund may be limited. A transfer to the Restricted Funds will not be permitted to the extent that it would increase the contract value in the Restricted Fund to more than the applicable limits following the transfer. We do not limit transfers from Restricted Funds. If the result of multiple reallocations is to lower the percentage of total contract value in the Restricted Fund, the reallocation will be permitted even if the percentage of contract value in the Restricted Fund is greater than the limit. Please be aware that the benefit we pay under an optional benefit rider may be affected by certain transfers you make while the rider is in effect. Transfers, including those involving Special Funds, may also affect your optional rider base. See "The Annuity Contract -- Optional Riders." Transfers will be based on values at the end of the business day in which the transfer request is received at our Customer Service Center. The minimum amount that you may transfer is $100 or, if less, your entire contract value held in a subaccount or a Fixed Interest Allocation. To make a transfer, you must notify our Customer Service Center and all other administrative requirements must be met. Any transfer request received after 4:00 p.m. eastern time or the close of the New York Stock Exchange will be effected on the next business day. Separate Account B and the Company will not be liable for following instructions communicated by telephone or other approved electronic means that we reasonably believe to be genuine. We may require personal identifying information to process a request for transfer made over the telephone, over the internet or other approved electronic means. TRANSFERS BY THIRD PARTIES As a convenience to you, we currently allow you to give third parties the right to effect transfers on your behalf. However, when the third party makes transfers for many contract owners, the result can be simultaneous transfers involving large amounts of contract values. Such transfers can disrupt the orderly management of the investment portfolios available to the Contract, can result in higher costs to contract owners, and may not be compatible with the long term goals of contract owners. We require third parties making multiple, simultaneous or large volume transfers to execute a third party service agreement with us prior to executing such transfers. Therefore, we may at any time exercise our business judgment and limit or discontinue accepting transfers made by a third party. We will notify any third party whose transfers are limited or discontinued by telephone, facsimile or email according to our records, followed by a letter. These limits may be based on, among other criteria, the amount of the aggregate trade or the available investment options for which third parties may make trades on behalf of multiple contract owners. For example, we currently require that orders from third parties received via facsimile to effect transactions in subaccounts that invest in ProFund portfolios be received at our Customer Service Center no later than 3 p.m. eastern time. We may establish additional procedures or change existing procedures at any time in the exercise of our business judgment. ACC - 121360 40 DOLLAR COST AVERAGING You may elect to participate in our dollar cost averaging program if you have at least $1,200 of contract value in the (i) Limited Maturity Bond subaccount or the Liquid Asset subaccount, or (ii) a Fixed Interest Allocation with a 1-year guaranteed interest period. These subaccounts or Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other subaccounts selected by you. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to other subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. You elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. If your source account is the Limited Maturity Bond subaccount, the Liquid Asset subaccount or A 1-year Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 12. You may change the transfer amount once each contract year. Transfers from a Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. Transfers under the dollar cost averaging program do not count toward the 12 transfer limit on free transfers. If you do not specify the subaccounts to which the dollar amount of the source account is to be transferred, we will transfer the money to the subaccounts in which you are invested on a proportional basis. The transfer date is the same day each month as your contract date. If, on any transfer date, your contract value in a source account is equal or less than the amount you have elected to have transferred, the entire amount will be transferred and the program will end. You may terminate the dollar cost averaging program at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next transfer date. A Fixed Interest Allocation may not participate in the dollar cost averaging program and in systematic withdrawals at the same time. You are permitted to transfer contract value to a Restricted Fund, subject to the limitations described above in this section and in "The Investment Portfolios." Compliance with the individual and aggregate Restricted Fund limits will be reviewed when the dollar cost averaging program is established. Transfers under the dollar cost averaging program must be within those limits. We will not review again your dollar cost averaging election for compliance with the individual and aggregate limits for investment in the Restricted Funds except in the case of the transactions described below. o Amount added to source account: If you add amounts to the source account which would increase the amount to be transferred under the dollar cost averaging program, we will review the amounts to be transferred to ensure that the individual and aggregate limits are not being exceeded. If such limits would be exceeded, we will require that the dollar cost averaging transfer amounts be changed to ensure that the transfers are within the limits based on the then current allocation of contract value to the Restricted Fund(s) and the then current value of the amount designated to be transferred to that Restricted Fund(s). o Additional premium paid: Up to the individual Restricted Fund percentage limit may be allocated to a Restricted Fund. If more than the individual limit has been requested to be allocated to a Restricted Fund, we will look at the aggregate limit, subtract the current allocation to Restricted Funds, and subtract the current value of amounts to be transferred under the dollar cost averaging program to Restricted Funds. The excess, if any, is the maximum that may be allocated pro rata to Restricted Funds. ACC - 121360 41 o Reallocation request is made while the dollar cost averaging program is active: If the reallocation would increase the amount allocated to Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to Restricted Funds and less the current value of any remaining amounts to be transferred under the dollar cost averaging program to the Restricted Funds. We may in the future offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program or otherwise modify, suspend or terminate this program. Of course, such change will not affect any dollar cost averaging programs in operation at the time. AUTOMATIC REBALANCING If you have at least $10,000 of contract value invested in the subaccounts of Separate Account B, you may elect to have your investments in the subaccounts automatically rebalanced You are permitted to reallocate between Restricted and non-Restricted Funds, subject to the limitations described above in this section and in "The Investment Portfolios." If the reallocation would increase the amount allocated to the Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to all Restricted Funds. Transfers made pursuant to automatic rebalancing do not count toward the 12 transfer limit on free transfers. We will transfer funds under your Contract on a quarterly, semi-annual, or annual calendar basis among the subaccounts to maintain the investment blend of your selected subaccounts. The minimum size of any allocation must be in full percentage points. Rebalancing does not affect any amounts that you have allocated to the Fixed Account. The program may be used in conjunction with the systematic withdrawal option only if withdrawals are taken pro-rata. Automatic rebalancing is not available if you participate in dollar cost averaging. Automatic rebalancing will not take place during the free look period. To participate in automatic rebalancing, send satisfactory notice to our Customer Service Center. We will begin the program on the last business day of the period in which we receive the notice. You may cancel the program at any time. The program will automatically terminate if you choose to reallocate your contract value among the subaccounts or if you make an additional premium payment or partial withdrawal on other than a pro-rata basis. Additional premium payments and partial withdrawals effected on a pro-rata basis will not cause the automatic rebalancing program to terminate. -------------------------------------------------------------------------------- DEATH BENEFIT CHOICES -------------------------------------------------------------------------------- DEATH BENEFIT DURING THE ACCUMULATION PHASE During the accumulation phase, a death benefit, and earnings multiplier benefit, if elected, is payable when either the annuitant (when contract owner is not an individual), the contract owner or the first of joint owners dies. Assuming you are the contract owner, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. The death benefit value is calculated at the close of the business day on which we receive written notice and due proof of death, as well as any required paperwork, at our Customer Service Center. If your beneficiary elects to delay receipt of the death benefit until a date after the time of death, the amount of benefit payable in the future may be affected. The proceeds may be received in a single sum or applied to any of the annuity options. If we do not receive a request to apply the death benefit proceeds to an annuity option, we will make a single sum distribution. We will generally pay death benefit proceeds within 7 days after our Customer Service Center has received sufficient information to make the payment. For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." Your death benefit and mortality and expense risk charge depend on the category of contract owners to which you belong and on the death benefit that you choose. There are four categories of contract owners covered by this prospectus. For ease of reference, they are called Pre-2000, Yr-2000, Yr-2001 and May-2001 contract owners. If you are a contract owner, the category of your contract is indicated on your quarterly ACC - 121360 42 statements beginning with the June 30, 2001 statement. If you are unsure which category applies to you, please call our Customer Service Center. The telephone number is (800) 366-0066. The following is a general description of the categories: Pre-2000: a) all contracts purchased prior to February 1, 2000; b) contracts purchased on or after February 1, 2000 which offer three death benefit options (as approved in the state of issue at the time of purchase); Yr-2000: Contracts purchased on or after February 1, 2000 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Max 7 Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit to age 80; Yr-2001: Contracts purchased on or after January 2, 2001 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Annual Ratchet Enhanced Death Benefit to age 90, and contain new Special Funds language; May-2001: Contracts purchased on or after May 1, 2001 which offer four death benefit options (as approved in the state of issue at the time of purchase), including the Annual Ratchet Enhanced Death Benefit to age 90, and have an earnings multiplier benefit option (in states where approved). Other than as specifically noted, this Prospectus describes the benefits applicable to all categories of contract owners. THE FOLLOWING DESCRIBES THE DEATH BENEFIT OPTIONS FOR CONTRACT OWNERS IN MAY-2001. IF YOU ARE A PRE-2000, YR-2000, OR YR-2001 CONTRACT OWNER, PLEASE SEE APPENDIX C FOR A DESCRIPTION OF THE CALCULATION OF THE DEATH BENEFITS APPLICABLE UNDER YOUR CONTRACT. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. You may choose one of the following Death Benefits: (a) the Standard Death Benefit, (b) the 7% Solution Enhanced Death Benefit, (c) the Annual Ratchet Enhanced Death Benefit or (d) the Max 7 Enhanced Death Benefit. The 7% Solution Enhanced Death Benefit, the Annual Ratchet Enhanced Death Benefit and the Max 7 Enhanced Death Benefit are available only if the contract owner or the annuitant (if the contract owner is not an individual) is not more than 79 years old at the time of purchase. The 7% Solution, Annual Ratchet and Max 7 Enhanced Death Benefits may not be available where a Contract is held by joint owners. You must choose a death benefit. An application will not be considered in good order if no death benefit has been selected. Once you choose a death benefit, it cannot be changed. We may in the future stop or suspend offering any of the Enhanced Death Benefit options to new Contracts. A change in ownership of the Contract may affect the amount of the death benefit and the Enhanced Death Benefit. The MGWB rider may also affect the death benefit. See "Minimum Guaranteed Withdrawal Benefit (MGWB) Rider -- Death Benefit during Automatic Periodic Benefit Status." The Enhanced Death Benefits are available only at the time you purchase your Contract. The enhanced death benefits are not available where a Contract is owned by joint owners. The death benefit, and earnings multiplier benefit, if elected, is payable when the first of the following persons dies: the contract owner, joint owner, or annuitant (if a contract owner is not an individual). Assuming you are the contract owner, if you die during the accumulation phase, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. The death benefit paid depends on the death benefit you have chosen. The death benefit value is calculated at the close of the business day on which we receive written notice and due proof of death, as well as required claim forms, at our Customer Service Center. If your beneficiary elects to delay receipt of the death benefit until a date after the time of your death, the amount of the benefit payable in the future may be affected. If you die after the annuity start date and you are the annuitant, your beneficiary will receive the death benefit you chose under the annuity option then in effect. The death benefit may be subject to certain mandatory distribution rules required by federal tax law. ACC - 121360 43 We use the Base Death Benefit to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The Base Death Benefit is equal to the greater of: 1) the contract value; and 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATEST of the Base Death Benefit, the floor, and the SUM of: 1) the contract value allocated to Special Funds; and 2) the Standard Minimum Guaranteed Death Benefit for amounts allocated to Non-Special Funds. The Standard Minimum Guaranteed Death Benefit equals: 1) the initial premium payment allocated to Special and Non-Special Funds, respectively; 2) increased by premium payments and adjusted for transfers, allocated to Special and Non-Special Funds, respectively, after issue; and 3) reduced by a pro rata adjustment for any withdrawal or transfer taken from the Special and Non-Special Funds, respectively. In the event of transfers from Special to Non-Special funds, the increase in the Minimum Guaranteed Death Benefit of the Non-Special Fund will equal the lesser of the reduction in the Minimum Guaranteed Death Benefit in the Special Fund and the contract value transferred. In the event of transfers from Non-Special to Special Funds, the increase in the Minimum Guaranteed Death Benefit of the Special Fund will equal the reduction in the Minimum Guaranteed Death Benefit in the Non-Special Fund. THE FLOOR FOR THE DEATH BENEFIT IS the total premium payments made under the Contract reduced by a pro-rata adjustment for any withdrawal. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Base Death Benefit and the Enhanced Death Benefit option elected. For purposes of calculating the Enhanced Death Benefits, certain investment portfolios, and the Fixed Account are designated as "Special Funds." In addition to the Fixed Account, the investment portfolios designated currently as Special Funds are the Liquid Asset Portfolio and the Limited Maturity Bond Portfolio. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Selecting a Special Fund may limit or reduce the enhanced death benefit. For the period during which a portion of the contract value is allocated to a Special Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during that period. The 7% SOLUTION ENHANCED DEATH BENEFIT, equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the 7% Solution Minimum Guaranteed Death Benefit for Non-Special Funds. The 7% Solution Minimum Guaranteed Death Benefit for Special and Non-Special Funds equals the lesser of: ACC - 121360 44 1) premiums, adjusted for withdrawals and transfers, accumulated at 7% until the earlier of attainment of age 80 or reaching the cap (equal to 3 times all premium payments, as reduced by adjustments for withdrawals) and thereafter at 0%, subject to a floor as described below, and 2) the cap. Withdrawals of up to 7% per year of cumulative premiums are referred to as special withdrawals. Special withdrawals reduce the 7% Solution Minimum Guaranteed Death Benefit by the amount of contract value withdrawn. For any other withdrawals (withdrawals in excess of the amount available as a special withdrawal), a pro rata adjustment to the 7% Solution Minimum Guaranteed Death Benefit is made. The amount of the pro rata adjustment for withdrawals from Non-Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Non-Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non-Special Funds before the withdrawal. The amount of the pro rata adjustment for withdrawals from Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Please see Appendix B for examples of the pro rata withdrawal adjustment for withdrawals other than special withdrawals. Transfers from Special to Non-Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap for Special Funds on a pro rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit in the Non-Special Funds will equal the lesser of the reduction in the 7% Solution Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. The increase in the cap for Non-Special Funds will equal the reduction in the cap for Special Funds. Transfers from Non-Special to Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap in the Non-Special Funds on a pro rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Special Funds will equal the reduction in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Non-Special Funds. THE FLOOR FOR THE 7 % SOLUTION ENHANCED DEATH BENEFIT is determined by the same calculations described above for the 7% Solution Minimum Guaranteed Death Benefit except as follows: If you transfer contract value to a Special Fund, the minimum floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the 7% annual effective rate as described above, subject to the age limit and the cap described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the minimum guaranteed death benefit above. Your death benefit will be the greater of the floor and the death benefit determined as described above. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the Annual Ratchet Minimum Guaranteed Death Benefit allocated to Non-Special Funds. The Annual Ratchet Minimum Guaranteed Death Benefit equals: 1) the initial premium allocated at issue to Special and Non-Special Funds, respectively; 2) increased dollar for dollar by any premium allocated after issue to Special and Non-Special funds, respectively; ACC - 121360 45 3) for Non-Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Non-Special Funds, and transfers between Special and Non-Special Funds) and the current contract value allocated to Non-Special Funds; 4) for Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Special Funds, and transfers between Special and Non-Special Funds) and the current contract value allocated to Special Funds. Withdrawals reduce the Annual Ratchet Minimum Guaranteed Death Benefit on a pro rata basis, based on the amount withdrawn from the Special and Non-Special Funds, respectively. The amount of the pro rata adjustment for withdrawals from Non-Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non-Special Funds before withdrawal. The amount of the pro rata adjustment for Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Transfers from Special to Non-Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds on a pro rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit in the Non-Special Funds will equal the lesser of the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. Transfers from Non-Special to Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds on a pro rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit for the Special Funds will equal the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit for the Non-Special Funds. THE FLOOR FOR THE ANNUAL RATCHET ENHANCED DEATH BENEFIT is determined as described above for the Annual Ratchet Minimum Guaranteed Death Benefit except that all investments will be treated as Non-Special Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit. Under this death benefit option, the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit are calculated in the same manner as if each were the elected benefit. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. EARNINGS MULTIPLIER BENEFIT RIDER. The earnings multiplier benefit rider is an optional rider that provides a separate death benefit in addition to the death benefit provided under the death benefit options described above. The rider is subject to state availability and is available only for issues ages 75 or under. It may be added at issue of the Contract or on the next contract anniversary following introduction of the rider in a state, if later. The rider provides a benefit equal to a percentage of the gain under the Contract, up to a gain equal to 150% of premiums adjusted for withdrawals ("Maximum Base"). Currently, where the rider is added at issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: 1) the Maximum Base; and 2) the contract value on the date we receive written notice and due proof of death, as well as required claims forms, minus premiums adjusted for withdrawals. If the rider is added to a Contract after issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: 1) 150% of the contract value on the rider effective date, plus subsequent premiums adjusted for subsequent withdrawals; and 2) the contract value on the date we receive written notice and due proof of ACC - 121360 46 death, as well as required claims forms, minus the contract value on the rider effective date, minus subsequent premiums adjusted for subsequent withdrawals. The adjustment to the benefit for withdrawals is pro rata, meaning that the benefit will be reduced by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. There is an extra charge for the earnings multiplier benefit rider and once selected, it may not be revoked. The earnings multiplier benefit rider does not provide a benefit if there is no gain under the Contract. As such, the Company would continue to assess a charge for the rider, even though no benefit would be payable at death under the rider if there are no gains under the Contract. Please see page 2 of this prospectus for a description of the charge. The rider is available for both non-qualified and qualified contracts. Please see the discussions of possible tax consequences in sections titled "Individual Retirement Annuities," "Taxation of Non-Qualified Contracts," and "Taxation of Qualified Contracts," in this prospectus. DEATH BENEFIT DURING THE INCOME PHASE If any contract owner or the annuitant dies after the annuity start date, the Company will pay the beneficiary any certain benefit remaining under the annuity in effect at the time. CONTINUATION AFTER DEATH -- SPOUSE If, at the contract owner's death, the surviving spouse of the deceased contract owner is the beneficiary and such surviving spouse elects to continue the contract as his or her own the following will apply: If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value also on that date, is greater than zero, we will add such difference to the contract value. Such addition will be allocated to the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the addition will be allocated to the Liquid Asset subaccount, or its successor. Such addition to contract value will not affect the guaranteed death benefit or any living benefit rider values. The death benefits under each of the available options will continue, based on the surviving spouse's age on the date that ownership changes. Any addition to contract value, as described above, is available only to the spouse of the owner as of the date of death of the owner if such spouse under the provisions of the Contract elects to continue the Contract as his or her own. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, the benefit will be added to the contract value and allocated among the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the benefit will be allocated to the Liquid Asset subaccount, or its successor. The earnings multiplier benefit rider will continue, if the surviving spouse is eligible based on his or her attained age. If the surviving spouse is older than the maximum rider issue age, the rider will terminate. The Maximum Base and the percentages will be reset based on the adjusted contract value. The calculation of the benefit going forward will be: 1) based on the attained age of the spouse at the time of the ownership change using current values as of that date; 2) computed as if the rider was added to the Contract after issue and after the increase; and 3) based on the Maximum Base and percentages in effect on the original rider date. However, we may in the future permit the surviving spouse to elect to use the then current Maximum Base and percentages in the benefit calculation. CONTINUATION AFTER DEATH -- NON SPOUSE If the beneficiary or surviving joint owner is not the spouse of the owner, the Contract may continue in force subject to the required distribution rules of the Internal Revenue Code. See next section, "Required Distributions upon Contract Owner's Death." ACC - 121360 47 If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, the benefit will be added to the contract value and allocated among the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the benefit will be allocated to the Liquid Asset subaccount, or its successor. The earnings multiplier benefit rider then terminates, whether or not a benefit was payable under the terms of the rider. REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH We will not allow any payment of benefits provided under a non-qualified Contract which do not satisfy the requirements of Section 72(s) of the Code. If any owner of a non-qualified contract dies before the annuity start date, the death benefit payable to the beneficiary will be distributed as follows: (a) the death benefit must be completely distributed within 5 years of the contract owner's date of death; or (b) the beneficiary may elect, within the 1-year period after the contract owner's date of death, to receive the death benefit in the form of an annuity from us, provided that (i) such annuity is distributed in substantially equal installments over the life of such beneficiary or over a period not extending beyond the life expectancy of such beneficiary; and (ii) such distributions begin not later than 1 year after the contract owner's date of death. Notwithstanding (a) and (b) above, if the sole contract owner's beneficiary is the deceased owner's surviving spouse, then such spouse may elect to continue the Contract under the same terms as before the contract owner's death. Upon receipt of such election from the spouse at our Customer Service Center: (1) all rights of the spouse as contract owner's beneficiary under the Contract in effect prior to such election will cease; (2) the spouse will become the owner of the Contract and will also be treated as the contingent annuitant, if none has been named and only if the deceased owner was the annuitant; and (3) all rights and privileges granted by the Contract or allowed by us will belong to the spouse as contract owner of the Contract. This election will be deemed to have been made by the spouse if such spouse makes a premium payment to the Contract or fails to make a timely election as described in this paragraph. If the owner's beneficiary is a nonspouse, the distribution provisions described in subparagraphs (a) and (b) above, will apply even if the annuitant and/or contingent annuitant are alive at the time of the contract owner's death. If we do not receive an election from a nonspouse owner's beneficiary within the 1-year period after the contract owner's date of death, then we will pay the death benefit to the owner's beneficiary in a cash payment within five years from date of death. We will determine the death benefit as of the date we receive proof of death. We will make payment of the proceeds on or before the end of the 5-year period starting on the owner's date of death. Such cash payment will be in full settlement of all our liability under the Contract. If the contract owner dies after the annuity start date, we will continue to distribute any benefit payable at least as rapidly as under the annuity option then in effect. All of the contract owner's rights granted under the Contract or allowed by us will pass to the contract owner's beneficiary. If a Contract has joint owners we will consider the date of death of the first joint owner as the death of the contract owner and the surviving joint owner will become the contract owner of the Contract. If any contract owner is not an individual, the death of an annuitant shall be treated as the death of a contract owner. -------------------------------------------------------------------------------- CHARGES AND FEES -------------------------------------------------------------------------------- We deduct the Contract charges described below to cover our costs and expenses, services provided and risks assumed under the Contracts. We incur certain costs and expenses for distributing and administrating the Contracts, including compensation and expenses paid in connection with sales of the Contracts, for paying the benefits payable under the Contracts and for bearing various risks associated with the Contracts. The amount of a Contract charge will not always correspond to the actual costs associated with the charge. In the event there are any profits from fees and charges deducted under the Contract, we may use such profits to finance the distribution of Contracts. ACC - 121360 48 CHARGE DEDUCTION SUBACCOUNT You may elect to have all charges against your contract value deducted directly from a single subaccount designated by the Company. Currently we use the Liquid Asset subaccount for this purpose. If you do not elect this option, or if the amount of the charges is greater than the amount in the designated subaccount, the charges will be deducted as discussed below. You may cancel this option at any time by sending satisfactory notice to our Customer Service Center. CHARGES DEDUCTED FROM THE CONTRACT VALUE We deduct the following charges from your contract value: NO SURRENDER CHARGE. We do not deduct any surrender charges for withdrawals. PREMIUM TAXES. We may make a charge for state and local premium taxes depending your state of residence. The tax can range from 0% to 3.5% of the premium payment. We have the right to change this amount to conform with changes in the law or if you change your state of residence. We deduct the premium tax from your contract value (or from the MGIB Base, if exercised) on the annuity start date. However, some jurisdictions impose a premium tax at the time that initial and additional premiums are paid, regardless of when the annuity payments begin. In those states, we may defer collection of the premium taxes from your contract value and deduct it when you surrender the Contract or on the annuity start date. ADMINISTRATIVE CHARGE. We deduct an annual administrative charge on each Contract anniversary, or if you surrender your Contract prior to a Contract anniversary, at the time we determine the cash surrender value payable to you. The amount deducted is $40 per Contract. This charge is waived if your contract value is $100,000 or more at the end of a contract year or the total of your premium payments is $100,000 or more or under other conditions established by Golden American. We deduct the charge proportionately from all subaccounts in which you are invested. If there is no contract value in those subaccounts, we will deduct the charge from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until the charge has been paid. TRANSFER CHARGE. We currently do not deduct any charges for transfers made during a contract year. We have the right, however, to assess up to $25 for each transfer after the twelfth transfer in a contract year. If such a charge is assessed, we would deduct the charge from the subaccounts and the Fixed Interest Allocation from which each such transfer is made in proportion to the amount being transferred from each such subaccount the Fixed Interest Allocation unless you have chosen to have all charges deducted from a single subaccount. The charge will not apply to any transfers due to the election of dollar cost averaging, auto rebalancing and transfers we make to and from any subaccount specially designated by the Company for such purpose. CHARGES DEDUCTED FROM THE SUBACCOUNTS MORTALITY AND EXPENSE RISK CHARGE. The mortality and expense risk charge is deducted each business day. The amount of the mortality and expense risk charge depends on the death benefit you have elected and on the category of contract owner to which you belong. The charge is deducted on each business day based on the assets you have in each subaccount. The charge for each death benefit option, on an annual basis, for May-2001 contract owners, is equal to 1.65% for the Standard Death Benefit, 1.90% for the Annual Ratchet Enhanced Death Benefit, 2.00% for the 7% Solution Enhanced Death Benefit or 2.10% for the Max 7 Enhanced Death Benefit, of the assets you have in each subaccount. The charge is deducted each business day at the rate of .004558% (Standard), .005255% (Annual Ratchet), .005535% (7% Solution), or .005815% (Max 7), respectively, for each day since the previous business day. In the event there are any profits from the mortality and expense risk charge, we may use such profits to finance the distribution of contracts. Please see Appendix C for a description of the death benefits and mortality and expense risk charges for Pre-2000, Yr-2000, or Yr-2001 contract owners. ASSET-BASED ADMINISTRATIVE CHARGE. The amount of the asset-based administrative charge, on an annual basis, is equal to 0.15% of the assets you have in each subaccount. The charge is deducted on each ACC - 121360 49 business day at the rate of .000411% for each day since the previous business day. This charge is deducted daily from your assets in each subaccount. EARNINGS MULTIPLIER BENEFIT CHARGE. Subject to state availability, you may purchase the earnings multiplier benefit rider for a non-qualified Contract either at issue or on the next contract anniversary following the introduction of the benefit in your state, if later. So long as the rider is in effect, we will deduct a separate quarterly charge for the rider through a pro rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccounts, we will deduct the charges from your Fixed Interest Allocations starting with the allocation nearest its maturity date. If that is insufficient, we will deduct the charge from the allocation next nearest its maturity date, and so on. We deduct the rider charge on each quarterly contract anniversary in arrears, meaning the first charge will be deducted on the first quarterly anniversary following the rider date. If you surrender or annuitize your Contract, we will deduct a pro rata portion of the charge for the current quarter based on the current contract value immediately prior to the surrender or annuitization. The quarterly charge for the earnings multiplier benefit rider is 0.075% (0.30% annually). For a description of the rider, see "The Earnings Multiplier Benefit Rider." OPTIONAL RIDER CHARGES. In addition to the earnings multiplier benefit rider, subject to state availability, you may purchase one of three optional benefit riders that you may elect at issue. So long as the rider is in effect, we will deduct a separate quarterly charge for each optional benefit rider through a pro-rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccount, we will deduct the charges from your Fixed Interest Allocations nearest their maturity date. We deduct each rider charge on each quarterly contract anniversary in arrears, meaning the first charge will be deducted on the first quarterly anniversary following rider date. For a description of the riders and the defined terms used in connection with the riders, see "The Annuity Contract -- Optional Riders." Minimum Guaranteed Accumulation Benefit (MGAB). The quarterly charge for the MGAB rider is as follows: Waiting Period Quarterly Charge -------------- ---------------- 10 Year............ 0.125% of the MGAB Charge Base (0.50% annually) 20 Year............ 0.125% of the MGAB Charge Base (0.50% annually) The MGAB Charge Base is the total of (i) the MGAB Base on the rider date, and (ii) premiums during the 2-year period commencing on the rider date, reduced pro-rata for withdrawals and reduced for transfers made within the last 3 years prior to the MGAB Benefit Date. We will deduct charges only during your ten-year or twenty-year waiting period, as applicable. If you surrender or annuitize your Contract, we will deduct a pro rata portion of the charge for the current quarter based on the current quarterly charge rate and MGAB Charge Base immediately prior to the surrender or annuitization. The MGAB Charge Base is adjusted for transfers between Special and Non-Special Funds. MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The quarterly charge for the MGIB rider is as follows: MGIB Rate Quarterly Charge --------- ---------------- 7%............ 0.125% of the MGIB Charge Base (0.50% annually) The MGIB Charge Base is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date, reduced pro-rata for all withdrawals taken while the MGIB rider is in effect, and accumulated at the MGIB Rate (7%) to the earlier of age 80 and reaching the MGIB Base Maximum. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the ACC - 121360 50 current quarterly charge rate and your MGIB Charge Base immediately prior to the surrender or annuitization. The MGIB Charge Base is adjusted for transfers between Special and Non-Special Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Premium Amount. The original MGWB Eligible Payment Amount is equal to all premiums paid during the first two contract years following the rider date. When we calculate the MGWB rider charge, we do not reduce the Eligible Payment Amount by the amount of any withdrawals taken while the MGWB rider is in effect. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. TRUST EXPENSES Each portfolio deducts portfolio management fees and charges from the amounts you have invested in the portfolios. In addition, five portfolios deduct a service fee, which is used to compensate service providers for administrative and contract holder services provided on behalf of the portfolios, and nine portfolios deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of shares of the applicable portfolio. There are an additional three portfolios that may deduct a distribution or 12b-1 fee but currently do not. Based on actual portfolio experience in 2000, together with estimated costs for new portfolios, total estimated portfolio fees and charges for 2001 range from 0.55% to 1.86%. See "Fees and Expenses" in this prospectus. Additionally, we may receive compensation from the investment advisers, administrators or distributors of the portfolios in connection with administrative, distribution, or other services and cost savings experienced by the investment advisers, administrators or distributors. It is anticipated that such compensation will be based on assets of the particular portfolios attributable to the Contract. Some advisers, administrators or distributors may pay us more than others. -------------------------------------------------------------------------------- THE ANNUITY OPTIONS -------------------------------------------------------------------------------- ANNUITIZATION OF YOUR CONTRACT If the annuitant and contract owner are living on the annuity start date, we will begin making payments to the contract owner under an income plan. We will make these payments under the annuity option you chose. You may change an annuity option by making a written request to us at least 30 days before the annuity start date. The amount of the payments will be determined by applying your contract value, adjusted for any applicable Market Value Adjustment, on the annuity start date in accordance with the annuity option you chose. The MGIB annuity benefit may be available if you have purchased the MGIB rider, provided the waiting period and other specified conditions have been met. You may also elect an annuity option on surrender of the Contract for its cash surrender value or you may choose one or more annuity options for the payment of death benefit proceeds while it is in effect and before the annuity start date. If, at the time of the contract owner's death or the annuitant's death (if the contract owner is not an individual), no option has been chosen for paying death benefit proceeds, the beneficiary may choose an annuity option within 60 days. In all events, payments of death benefit proceeds must comply with the distribution requirements of applicable federal tax law. The minimum monthly annuity income payment that we will make is $20. We may require that a single sum payment be made if the contract value is less than $2,000 or if the calculated monthly annuity income payment is less than $20. For each annuity option we will issue a separate written agreement putting the annuity option into effect. Before we pay any annuity benefits, we require the return of your Contract. If your Contract has been lost, we will require that you complete and return the applicable lost Contract form. Various factors will affect the ACC - 121360 51 level of annuity benefits, such as the annuity option chosen, the applicable payment rate used and the investment performance of the portfolios and interest credited to the Fixed Interest Allocations. Our current annuity options provide only for fixed payments. Fixed annuity payments are regular payments, the amount of which is fixed and guaranteed by us. Some fixed annuity options provide fixed payments either for a specified period of time or for the life of the annuitant. The amount of life income payments will depend on the form and duration of payments you chose, the age of the annuitant or beneficiary (and gender, where appropriate) under applicable law, the total contract value applied to periodic income payments and the applicable payment rate. Our approval is needed for any option where: (1) The person named to receive payment is other than the contract owner or beneficiary; (2) The person named is not a natural person, such as a corporation; or (3) Any income payment would be less than the minimum annuity income payment allowed. SELECTING THE ANNUITY START DATE You select the annuity start date, which is the date on which the annuity payments commence. The annuity start date must be at least 5 years from the contract date but before the month immediately following the annuitant's 90th birthday, or 10 years from the contract date, if later. If you do not select an annuity start date, it will automatically begin in the month following the annuitant's 90th birthday, or 10 years from the contract date, if later. If the annuity start date occurs when the annuitant is at an advanced age, such as over age 85, it is possible that the Contract will not be considered an annuity for federal tax purposes. For more information, see "Federal Tax Considerations" and the SAI. For a Contract purchased in connection with a qualified plan, other than a Roth IRA, distributions must commence not later than April 1st of the calendar year following the calendar year in which you reach age 70 1/2 (or, in some cases, retire). Distributions may be made through annuitization or withdrawals. You should consult a tax adviser for tax advice before investing. FREQUENCY OF ANNUITY PAYMENTS You choose the frequency of the annuity payments. They may be monthly, quarterly, semi-annually or annually. If we do not receive written notice from you, we will make the payments monthly. There may be certain restrictions on minimum payments that we will allow. THE ANNUITY OPTIONS We offer the 4 annuity options shown below. Payments under Options 1, 2 and 3 are fixed. Payments under Option 4 may be fixed or variable. For a fixed annuity option, the contract value in the subaccounts is transferred to the Company's general account. OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make monthly payments in equal installments for a fixed number of years based on the contract value on the annuity start date. We guarantee that each monthly payment will be at least the amount stated in your Contract. If you prefer, you may request that payments be made in annual, semi-annual or quarterly installments. We will provide you with illustrations if you ask for them. If the cash surrender value or contract value is applied under this option, a 10% penalty tax may apply to the taxable portion of each income payment until the contract owner reaches age 59 1/2. OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Under this option, we make payments for the life of the annuitant in equal monthly installments and guarantee the income for at least a period certain such as 10 or 20 years. Other periods certain may be available to you on request. You may choose a refund period instead. Under this arrangement, income is guaranteed until payments equal the amount applied. If the person named lives beyond the guaranteed period, we will continue payments until his or her death. We guarantee that each payment will be at least the amount specified in the Contract corresponding to the ACC - 121360 52 person's age on his or her last birthday before the annuity start date. Amounts for ages not shown in the Contract are available if you ask for them. If you do not choose an annuity option, we will select this option with a 10-year period certain for you. OPTION 3. JOINT LIFE INCOME. This option is available when there are 2 persons named to determine annuity payments. At least one of the persons named must be either the contract owner or beneficiary of the Contract. We guarantee monthly payments will be made as long as at least one of the named persons is living. There is no minimum number of payments. Monthly payment amounts are available if you ask for them. OPTION 4. ANNUITY PLAN. Under this option, your contract value can be applied to any other annuitization plan that we choose to offer on the annuity start date. Annuity payments under Option 4 may be fixed or variable. If variable and subject to the 1940 Act, it will comply with the requirements of such Act. PAYMENT WHEN NAMED PERSON DIES When the person named to receive payment dies, we will pay any amounts still due as provided in the annuity agreement between you and Golden American. The amounts we will pay are determined as follows: (1) For Option 1, or any remaining guaranteed payments under Option 2, we will continue payments. Under Options 1 and 2, the discounted values of the remaining guaranteed payments may be paid in a single sum. This means we deduct the amount of the interest each remaining guaranteed payment would have earned had it not been paid out early. The discount interest rate is never less than 3% for Option 1 and Option 2 per year. We will, however, base the discount interest rate on the interest rate used to calculate the payments for Options 1 and 2 if such payments were not based on the tables in your Contract. (2) For Option 3, no amounts are payable after both named persons have died. (3) For Option 4, the annuity option agreement will state the amount we will pay, if any. -------------------------------------------------------------------------------- OTHER CONTRACT PROVISIONS -------------------------------------------------------------------------------- REPORTS TO CONTRACT OWNERS We will send you a quarterly report within 31 days after the end of each calendar quarter. The report will show the contract value, cash surrender value, and the death benefit as of the end of the calendar quarter. The report will also show the allocation of your contract value and reflects the amounts deducted from or added to the contract value since the last report. You have 30 days to notify our Customer Service Center of any errors or discrepancies contained in the report or in any confirmation notices. We will also send you copies of any shareholder reports of the investment portfolios in which Separate Account B invests, as well as any other reports, notices or documents we are required by law to furnish to you. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange is closed; (2) when trading on the New York Stock Exchange is restricted; (3) when an emergency exists as determined by the SEC so that the sale of securities held in Separate Account B may not reasonably occur or so that the Company may not reasonably determine the value of Separate Account B's net assets; or (4) during any other period when the SEC so permits for the protection of security holders. We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. IN CASE OF ERRORS IN YOUR APPLICATION If an age or gender given in the application or enrollment form is misstated, the amounts payable or benefits provided by the Contract shall be those that the premium payment would have bought at the correct age or gender. ACC - 121360 53 ASSIGNING THE CONTRACT AS COLLATERAL You may assign a non-qualified Contract as collateral security for a loan but understand that your rights and any beneficiary's rights may be subject to the terms of the assignment. An assignment may have federal tax consequences. You should consult a tax adviser for tax advice. You must give us satisfactory written notice at our Customer Service Center in order to make or release an assignment. We are not responsible for the validity of any assignment. CONTRACT CHANGES -- APPLICABLE TAX LAW We have the right to make changes in the Contract to continue to qualify the Contract as an annuity under applicable federal tax law. You will be given advance notice of such changes. FREE LOOK You may cancel your Contract within your 10-day free look period. We deem the free look period to expire 15 days after we mail the Contract to you. Some states may require a longer free look period. To cancel, you need to send your Contract to our Customer Service Center or to the agent from whom you purchased it. We will refund the contract value. For purposes of the refund during the free look period, (i) we adjust your contract value for any market value adjustment (if you have invested in the Fixed Account), and (ii) then we include a refund of any charges deducted from your contract value. Because of the market risks associated with investing in the portfolios and the potential positive or negative effect of the market value adjustment, the contract value returned may be greater or less than the premium payment you paid. Some states require us to return to you the amount of the paid premium (rather than the contract value) in which case you will not be subject to investment risk during the free look period. In these states, your premiums designated for investment in the subaccounts may be allocated during the free look period to a subaccount specially designated by the Company for this purpose (currently, the Liquid Asset subaccount). We may, in our discretion, require that premiums designated for investment in the subaccounts from all other states as well as premiums designated for a Fixed Interest Allocation be allocated to the specially designated subaccount during the free look period. Your Contract is void as of the day we receive your Contract and cancellation request. We determine your contract value at the close of business on the day we receive your written request. If you keep your Contract after the free look period and the investment is allocated to a subaccount specially designated by the Company, we will put your money in the subaccount(s) chosen by you, based on the accumulation unit value next computed for each subaccount, and /or in the Fixed Interest Allocation chosen by you. GROUP OR SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, we may reduce any administration and mortality and expense risk charges. We may also change the minimum initial and additional premium requirements, or offer an alternative or reduced death benefit. SELLING THE CONTRACT Directed Services, Inc. is the principal underwriter and distributor of the Contract as well as for other contracts issued through Separate Account B and other separate accounts of Golden American. The principal address of Directed Services is 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. Directed Services is a corporation organized under the laws of New York and is a wholly owned subsidiary of Equitable of Iowa. Directed Services is registered as a broker-dealer with the SEC under the Securities Exchange Act of 1934, as well as with securities commissions in the states in which it operates, and is a member of the National Association of Securities Dealers, Inc. ("NASD"). Directed Services has the authority to enter into selling agreements with other firms. Directed Services has entered into selling agreements with broker-dealers to sell the Contracts through registered representatives. Those representatives are registered with the NASD, and if applicable, also with the states in which they do business. They also are licensed as insurance agents in the states in which they do business. Golden American and DSI are party to in excess of 620 sales agreements with broker-dealers to sell this and other Golden American contracts. Seven of these ACC - 121360 54 broker-dealers, Locust Street Securities, Inc., Vestax Securities Corporation, Compu Life Investors Services, Inc., IFG Network Securities, Inc., Multi-Financial Securities Corporation, Primevest Financial Services and Washington Square Securities, Inc. are affiliates of Golden American. We pay sales commissions to Directed Services for the sale of the Contracts. Directed Services passes through the entire amount of the sales commission to the broker-dealer whose registered representative sold the Contract. The maximum sales commission payable will be approximately 2.5% of the initial and any additional premium payment. This commission may be returned if the Contract is not continued through the first Contract Year.
-------------------------------------------------------------------------------------------- UNDERWRITER COMPENSATION -------------------------------------------------------------------------------------------- NAME OF PRINCIPAL UNDERWRITER AMOUNT OF COMMISSION TO BE OTHER PAID COMPENSATION Directed Services, Inc. The equivalent of a Reimbursement of any ------------------------------ covered expenses combination of a percentage incurred of premium payments and a by registered percentage of the contract representatives value up to a maximum of 2.5% in connection in the first year and a with the percentage of the contract distribution value up to 1.5% in of the Contracts. subsequent years. ------------------------------ ------------------------------- -----------------------------
Certain sales agreements may provide for a combination of a certain percentage of commission at the time of sale and an annual trail commission which when combined could exceed the above commission. We may make additional cash payments to broker-dealers for marketing and educational expenses and for the reimbursement of certain expenses incurred by registered representatives in connection with the distribution of the Contracts. We do not pay any additional commissions on the sale or exercise of any of the optional benefit riders offered in this prospectus. -------------------------------------------------------------------------------- OTHER INFORMATION -------------------------------------------------------------------------------- VOTING RIGHTS We will vote the shares of a Trust owned by Separate Account B according to your instructions. However, if the 1940 Act or any related regulations should change, or if interpretations of it or related regulations should change, and we decide that we are permitted to vote the shares of a Trust in our own right, we may decide to do so. We determine the number of shares that you have in a subaccount by dividing the Contract's contract value in that subaccount by the net asset value of one share of the portfolio in which a subaccount invests. We count fractional votes. We will determine the number of shares you can instruct us to vote 180 days or less before a Trust shareholder meeting. We will ask you for voting instructions by mail at least 10 days before the meeting. If we do not receive your instructions in time, we will vote the shares in the same proportion as the instructions received from all contracts in that subaccount. We will also vote shares we hold in Separate Account B which are not attributable to contract owners in the same proportion. ACC - 121360 55 STATE REGULATION We are regulated by the Insurance Department of the State of Delaware. We are also subject to the insurance laws and regulations of all jurisdictions where we do business. The Contract offered by this prospectus has been approved where required by those jurisdictions. We are required to submit annual statements of our operations, including financial statements, to the Insurance Departments of the various jurisdictions in which we do business to determine solvency and compliance with state insurance laws and regulations. LEGAL PROCEEDINGS The Company, like other insurance companies, may be involved in lawsuits, including class action lawsuits. In some class action and other lawsuits involving insurers, substantial damages have been sought and/or material settlement payments have been made. We believe that currently there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on the Company or Separate Account B. LEGAL MATTERS The legal validity of the Contracts was passed on by ING Counsel. EXPERTS The audited consolidated financial statements of Golden American at December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000, and Separate Account B at December 31, 2000 and the related statements of operations and changes in net assets for the periods disclosed in the financial statements, appearing in this prospectus or in the SAI and Registration Statement have been audited by Ernst & Young LLP, independent auditors, as set forth in their reports thereon appearing in this prospectus or in the SAI and in the Registration Statement, and are included or incorporated by reference in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing. -------------------------------------------------------------------------------- FEDERAL TAX CONSIDERATIONS -------------------------------------------------------------------------------- The following summary provides a general description of the federal income tax considerations associated with this Contract and does not purport to be complete or to cover all tax situations. This discussion is not intended as tax advice. You should consult your counsel or other competent tax advisers for more complete information. This discussion is based upon our understanding of the present federal income tax laws. We do not make any representations as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the IRS. TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED The Contract may be purchased on a non-tax-qualified basis or purchased on a tax-qualified basis. Qualified Contracts are designed for use by individuals whose premium payments are comprised solely of proceeds from and/or contributions under retirement plans that are intended to qualify as plans entitled to special income tax treatment under Sections 401(a), 403(b), 408, or 408A of the Code. The ultimate effect of federal income taxes on the amounts held under a Contract, or annuity payments, depends on the type of retirement plan, on the tax and employment status of the individual concerned, and on our tax status. In addition, certain requirements must be satisfied in purchasing a qualified Contract with proceeds from a tax-qualified plan and receiving distributions from a qualified Contract in order to continue receiving favorable tax treatment. Some retirement plans are subject to distribution and other requirements that are not incorporated into our Contract administration procedures. Contract owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law. Therefore, you should seek competent legal and tax advice regarding the suitability of a Contract for your particular situation. The following discussion assumes that qualified Contracts are purchased with proceeds from and/or contributions under retirement plans that qualify for the intended special federal income tax treatment. ACC - 121360 56 TAX STATUS OF THE CONTRACTS DIVERSIFICATION REQUIREMENTS. The Code requires that the investments of a variable account be "adequately diversified" in order for non-qualified Contracts to be treated as annuity contracts for federal income tax purposes. It is intended that Separate Account B, through the subaccounts, will satisfy these diversification requirements. INVESTOR CONTROL. In certain circumstances, owners of variable annuity contracts have been considered for federal income tax purposes to be the owners of the assets of the separate account supporting their contracts due to their ability to exercise investment control over those assets. When this is the case, the contract owners have been currently taxed on income and gains attributable to the separate account assets. There is little guidance in this area, and some features of the Contracts, such as the flexibility of a contract owner to allocate premium payments and transfer contract values, have not been explicitly addressed in published rulings. While we believe that the Contracts do not give contract owners investment control over Separate Account B assets, we reserve the right to modify the Contracts as necessary to prevent a contract owner from being treated as the owner of the Separate Account B assets supporting the Contract. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for federal income tax purposes, the Code requires any non-qualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of your death. The non-qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise. See "Death Benefit Choices" for additional information on required distributions from non-qualified contracts. Other rules may apply to Qualified Contracts. The following discussion assumes that the Contracts will qualify as annuity contracts for federal income tax purposes. TAX TREATMENT OF ANNUITIES IN GENERAL. We believe that if you are a natural person you will generally not be taxed on increases in the value of a Contract until a distribution occurs or until annuity payments begin. (For these purposes, the agreement to assign or pledge any portion of the contract value, and, in the case of a qualified Contract, any portion of an interest in the qualified plan, generally will be treated as a distribution.) TAXATION OF NON-QUALIFIED CONTRACTS NON-NATURAL PERSON. The owner of any annuity contract who is not a natural person generally must include in income any increase in the excess of the contract value over the "investment in the contract" (generally, the premiums or other consideration you paid for the contract less any nontaxable withdrawals)during the taxable year. There are some exceptions to this rule and a prospective contract owner that is not a natural person may wish to discuss these with a tax adviser. The following discussion generally applies to Contracts owned by natural persons. WITHDRAWALS. When a withdrawal from a non-qualified Contract occurs (including amounts paid to you under the MGWB rider), the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the contract value immediately before the distribution over the contract owner's investment in the Contract at that time. The tax treatment of market value adjustments is uncertain. You should consult a tax adviser if you are considering taking a withdrawal from your Contract in circumstances where a market value adjustment would apply. In the case of a surrender under a non-qualified Contract, the amount received generally will be taxable only to the extent it exceeds the contract owner's investment in the Contract. SEPARATE ACCOUNT CHARGES. It is possible that the Internal Revenue Service may take a position that charges for certain optional benefits and riders are deemed to be taxable distributions to you. In particular, ACC - 121360 57 the Internal Revenue Service may treat the quarterly charges deducted for the earnings multiplier benefit rider as taxable withdrawals, which might also be subject to a tax penalty if the withdrawal occurs before you reach age 59 1/2. Although we do not believe that the charges we deduct for the earnings multiplier benefit rider or any other optional benefit or rider provided under the Contract should be treated as taxable withdrawals, you should consult your tax advisor prior to selecting any optional benefit or rider under the Contract. PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution from a non-qualified Contract, there may be imposed a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 59 1/2; o made on or after the death of a contract owner; o attributable to the taxpayer's becoming disabled; or o made as part of a series of substantially equal periodic payments for the life (or life expectancy) of the taxpayer. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. A tax adviser should be consulted with regard to exceptions from the penalty tax. ANNUITY PAYMENTS. Although tax consequences may vary depending on the payment option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the Contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the Contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed from a Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under a payment option, they are taxed in the same way as annuity payments. TRANSFERS, ASSIGNMENTS, EXCHANGES AND ANNUITY DATES OF A CONTRACT. A transfer or assignment of ownership of a Contract, the designation of an annuitant, or payee other than an owner, the selection of certain dates for commencement of the annuity phase, or the exchange of a Contract may result in certain tax consequences to you that are not discussed herein. A contract owner contemplating any such transfer, assignment, designation or exchange, should consult a tax advisor as to the tax consequences. WITHHOLDING. Annuity distributions are generally subject to withholding for the recipient's federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions. MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts that are issued by us (or our affiliates) to the same contract owner during any calendar year are treated as one non-qualified deferred one annuity contract for purposes of determining the amount includible in such contract owner's income when a taxable distribution occurs. TAXATION OF QUALIFIED CONTRACTS The Contracts are designed for use with several types of qualified plans. The tax rules applicable to participants in these qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59 1/2 (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and in other specified circumstances. Therefore, no attempt ACC - 121360 58 is made to provide more than general information about the use of the Contracts with the various types of qualified retirement plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these qualified retirement plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract, but we shall not be bound by the terms and conditions of such plans to the extent such terms contradict the Contract, unless the Company consents. DISTRIBUTIONS. Annuity payments are generally taxed in the same manner as under a non-qualified Contract. When a withdrawal from a qualified Contract occurs, a pro-rata portion of the amount received is taxable, generally based on the ratio of the contract owner's investment in the Contract (generally, the premiums or other consideration paid for the Contract) to the participant's total accrued benefit balance under the retirement plan. For qualified Contracts, the investment in the Contract can be zero. For Roth IRAs, distributions are generally not taxed, except as described below. For qualified plans under Section 401(a) and 403(b), the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the contract owner (or plan participant) (i) reaches age 70 1/2 or (ii) retires, and must be made in a specified form or manner. If the plan participant is a "5 percent owner" (as defined in the Code), distributions generally must begin no later than April 1 of the calendar year following the calendar year in which the contract owner (or plan participant) reaches age 70 1/2. For IRAs described in Section 408, distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the contract owner (or plan participant) reaches age 70 1/2. Roth IRAs under Section 408A do not require distributions at any time before the contract owner's death. SEPARATE ACCOUNT CHARGES. It is possible that the Internal Revenue Service may take a position that charges for certain optional benefits and riders are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat the quarterly charges deducted for the earnings multiplier benefit rider as taxable withdrawals, which might also be subject to a tax penalty if the withdrawal occurs before you reach age 59 1/2. Although we do not believe that the charges we deduct for the earnings multiplier benefit rider or any other optional benefit or rider provided under the Contract should be treated as taxable withdrawals, you should consult your tax advisor prior to selecting any optional benefit or rider under the Contract. WITHHOLDING. Distributions from certain qualified plans generally are subject to withholding for the contract owner's federal income tax liability. The withholding rates vary according to the type of distribution and the contract owner's tax status. The contract owner may be provided the opportunity to elect not to have tax withheld from distributions. "Eligible rollover distributions" from section 401(a) plans and section 403(b) tax-sheltered annuities are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is the taxable portion of any distribution from such a plan, except certain distributions that are required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, if the contract owner chooses a "direct rollover" from the plan to another tax-qualified plan or IRA. Brief descriptions of the various types of qualified retirement plans in connection with a Contract follow. We will endorse the Contract as necessary to conform it to the requirements of such plan. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS Section 401(a) of the Code permits corporate employers to establish various types of retirement plans for employees, and permits self-employed individuals to establish these plans for themselves and their employees. These retirement plans may permit the purchase of the Contracts to accumulate retirement savings under the plans. Adverse tax or other legal consequences to the plan, to the participant, or to both may result if this Contract is assigned or transferred to any individual as a means to provide benefit payments, unless the plan complies with all legal requirements applicable to such benefits before transfer of the Contract. Employers intending to use the Contract with such plans should seek competent advice. ACC - 121360 59 INDIVIDUAL RETIREMENT ANNUITIES Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an "Individual Retirement Annuity" or "IRA." These IRAs are subject to limits on the amount that can be contributed, the deductible amount of the contribution, the persons who may be eligible, and the time when distributions commence. Also, distributions from certain other types of qualified retirement plans may be "rolled over" or transferred on a tax-deferred basis into an IRA. There are significant restrictions on rollover or transfer contributions from Savings Incentive Match Plans for Employees (SIMPLE), under which certain employers may provide contributions to IRAs on behalf of their employees, subject to special restrictions. Employers may establish Simplified Employee Pension (SEP) Plans to provide IRA contributions on behalf of their employees. Sales of the Contract for use with IRAs may be subject to special requirements of the IRS. IRA's generally may not invest in life insurance contracts. We do not believe a death benefit under an annuity contract that is equal to the greater of premiums paid (less withdrawals) or contact value will be treated as life insurance. However, the enhanced death benefits and earnings enhancement benefit under this Contract may exceed the greater of premiums paid (less withdrawals) and contract value. We have previously received IRS approval of the form of the Contract, including the enhanced death benefit feature, for use as an IRA. THE CONTRACT WITH BOTH ENHANCED DEATH BENEFITS AND THE EARNINGS MULTIPLIER BENEFIT HAS BEEN FILED WITH THE IRS FOR APPROVAL FOR USE AS AN IRA. HOWEVER, THERE IS NO ASSURANCE THAT THE IRS WILL GIVE THIS APPROVAL OR THAT THE CONTRACT MEETS THE QUALIFICATION REQUIREMENTS FOR AN IRA. Although we regard the enhanced death benefit options and earnings multiplier benefit as investment protection features that should not have an adverse tax effect, it is possible that the IRS could take a contrary position regarding tax qualification, which could result in the immediate taxation of amounts held in the Contract and the imposition of penalty taxes. YOU SHOULD CONSULT YOUR TAX ADVISOR IF YOU ARE CONSIDERING ADDING AN ENHANCED DEATH BENEFIT OR EARNINGS MULTIPLIER BENEFIT TO YOUR CONTRACT IF IT IS AN IRA. ROTH IRA Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA, which are subject to certain limits on the amount of the contribution and the persons who may be eligible to contribute, are not deductible, and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax, and other special rules may apply. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any IRA. A 10% penalty may apply to amounts attributable to a conversion from an IRA to a Roth IRA if the amounts are distributed during the five taxable years beginning with the year in which a conversion was made. TAX SHELTERED ANNUITIES Section 403(b) of the Code allows employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a Contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (Social Security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, separation from service, death or disability. Salary reduction contributions may also be distributed upon hardship, but would generally be subject to penalties. LOANS Loans may be available if you are under age 70 1/2 and purchased your contract in connection with a non-ERISA plan qualified under Section 403(b) of the Code ("TSA"). If your contract was issued in connection with a TSA and the terms of your plan permit, you may take a loan from us, using your Cash Surrender Value as collateral for the loan. Loans are subject to the terms of the Contract, the plan and the Code. You are responsible for monitoring the amount and number of loans outstanding at any one time under your TSA, whether under our contracts or those of other carriers. We may modify the terms of a loan to comply ACC - 121360 60 with changes in applicable law. WE URGE YOU TO CONSULT WITH A QUALIFIED TAX ADVISOR PRIOR TO EFFECTING A LOAN TRANSACTION UNDER YOUR CONTRACT. LOAN PROCEDURES. You must complete a loan application in order to effect a loan. You may submit a loan application at any time after the free look period and before the annuity start date. There is a loan fee (currently $25) per loan, payable at the time of the loan. If the loan amount plus the loan fee exceeds the maximum loan amount, the fee will be deducted from the loan proceeds. In order to secure your loan, on the effective date of your loan, we will transfer an amount equal to the principal amount of your loan into an account called the "TSA Special Fixed Account." You must indicate your choice of variable and Fixed Accounts from which amounts will be transferred to the TSA Special Fixed Account. If no choice is indicated, amounts will be transferred on a pro-rata basis from your variable accounts. If amounts allocated to the variable accounts are not sufficient, amounts will be transferred from the Fixed Accounts on a nearest to maturity basis. Amounts transferred from the TSA Special Fixed Account upon loan repayments will be transferred to the variable accounts in proportion to the contract value so allocated. If no contract value is allocated to the variable accounts, such transfers will be made to the Liquid Asset subaccount. No withdrawals are permitted unless there has been a Distributable Event. Distributable Events are the following: 1) attainment of age 59 1/2; 2) separation from service; 3) death; or 4) disability. You must notify us when a separation from service has occurred. No withdrawals are permitted from the TSA Special Fixed Account, other than an automatic withdrawal to pay off a defaulted loan. See "Loan Default," below. MINIMUM AND MAXIMUM LOAN AMOUNTS. You may borrow a minimum of $1,000, unless we are required by law to allow a lesser minimum amount. We currently allow no more than 2 loans per Contract at any time. The maximum loan amount for a new loan is the lesser of (1) and (2), minus any outstanding loan balance, where 1) is 50% of the Cash Surrender Value, and 2) is $50,000 minus the excess of the highest outstanding loan balance during the past 12 months over the loan balance on the date of the new loan. INTEREST. The balance in the TSA Special Fixed Account is credited with interest until the loan is repaid in full. The current annual effective interest rate is 3.5%. The guaranteed minimum interest rate is 3%. Rates are guaranteed for one year. Each loan will have a separate TSA Special Fixed Account, and each may have a different interest crediting rate. You will be charged interest on the outstanding loan balance at an annual effective interest rate of 6%. Interest will be charged in arrears. Interest charges accrue on your outstanding loan balance daily beginning on the effective date of your loan. LOAN REPAYMENT. Loans must be repaid within 5 years. However, if the loan is used to purchase your principal residence, it must be repaid within 15 years. You must identify your payments as premium payments or they will be treated as loan repayments. You may choose whether to make your loan repayments quarterly or monthly. Currently, loans must be repaid by electronic funds transfer ("EFT") or pre-authorized check ("PAC"), unless we have approved another form of payment. ACC - 121360 61 If your loan repayment is late, and the loan would otherwise be in default, we will make a withdrawal in an amount sufficient to keep the loan from going into default. The withdrawals will be made on a pro-rata basis from all of the variable accounts to which contract value is then allocated. If there is not enough contract value in the variable accounts, the withdrawal will be made from the Fixed Interest Allocations on a nearest to maturity basis, and any amount withdrawn may be subject to a Market Value Adjustment. This will only be done if: 1) there has been a Distributable Event; 2) the amount available for withdrawal is equal to or exceeds the necessary amount plus any applicable withdrawal charges; and 3) you have authorized us to do so in the loan agreement. If any of these conditions is not met, the loan will be considered to be in default, and default procedures will be performed. LOAN DEFAULT. When your loan is in default, you may pay off the loan, or the loan will be repaid through an automatic withdrawal from your contract value, as described below. 1. Loan Repaid For loans in default status, we will accept repayment only in the amount necessary to pay off the loan balance in full. 2. Loan Not Repaid The defaulted loan balance continues to accrue interest until there has been a Distributable Event, at which time the defaulted loan balance plus accrued interest will be repaid by automatic withdrawal. The defaulted loan balance will be considered a Deemed Distribution. If a Distributable Event has occurred prior to default, the defaulted loan balance plus accrued interest is repaid by automatic withdrawal upon default. The automatic withdrawal will apply first to the TSA Special Fixed Account, then pro-rata to the variable accounts and then to the Fixed Accounts on a nearest to maturity basis. Surrender charges and any market value adjustments will be applied as applicable to such withdrawals. In either case the Deemed Distribution or withdrawal will be considered a currently taxable event, and may be subject to federal income tax withholding and the federal early withdrawal penalty tax. OVERLOANS. An overloan occurs when the total outstanding loan balance(s) exceeds the Cash Surrender Value. If this occurs, we will send you a letter requesting payment of an amount which will take the loan out of overloan status. If after 30 days, the overloan status has not been corrected, the loan will be considered in default. If a Distributable Event occurred, the Contract will terminate without value. If a Distributable Event has not occurred, the Contract will continue in force, interest continues to accrue and the loan continues. Upon the occurrence of a Distributable Event while the loan is still in overloan status, the Contract will terminate without value. EFFECT OF LOAN ON OTHER CONTRACT FEATURES. The following contract features will be impacted by any outstanding loan balance: 1) Withdrawals and Charges: The rules concerning maximum withdrawal amounts, free partial withdrawals, systematic withdrawals and waiver of administrative charges will be determined by reducing the otherwise applicable amounts by the amount of any outstanding loan balance. 2) Death Benefit, Earnings multiplier Benefit, Annuitization and Surrenders: The outstanding loan balance is deducted from any amounts otherwise payable and in determining the amount available for annuitization. 3) Riders: ACC - 121360 62 a) Minimum Guaranteed Income Benefit ("MGIB") Rider. Upon exercising the MGIB rider, the MGIB Base is reduced by an amount equal to the ratio of the outstanding loan balance to the contract value multiplied by the MGIB Base. b) Minimum Guaranteed Withdrawal Benefit ("MGWB") Rider. The portion of the contract value used to pay off the outstanding loan balance will reduce the MGWB Withdrawal Account. We do not recommend the MGWB rider if loans are contemplated. c) Minimum Guaranteed Accumulation Benefit ("MGAB") Rider. Generally, loan repayment periods should not extend into the 3-year period preceding the end of the Waiting Period, because transfers made within such 3-year period reduce the MGAB Base and the MGAB Charge Base pro rata based on the percentage of contract value transferred. Transfers between the TSA Special Fixed Account and the variable accounts will not be excluded from this treatment. TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT THE CONTRACT INCLUDES AN ENHANCED DEATH BENEFIT THAT IN SOME CASES MAY EXCEED THE GREATER OF THE PREMIUM PAYMENTS OR THE CONTRACT VALUE. THE IRS HAS NOT RULED WHETHER AN ENHANCE DEATH BENEFIT COULD BE CHARACTERIZED AS AN INCIDENTAL BENEFIT, THE AMOUNT OF WHICH IS LIMITED IN ANY CODE SECTION 401(A) PENSION OR PROFIT-SHARING PLAN OR CODE SECTION 403(B) TAX-SHELTERED ANNUITY. EMPLOYERS USING THE CONTRACT MAY WANT TO CONSULT THEIR TAX ADVISER REGARDING SUCH LIMITATION. FURTHER, THE INTERNAL REVENUE SERVICE HAS NOT ADDRESSED IN A RULING OF GENERAL APPLICABILITY WHETHER A DEATH BENEFIT PROVISION SUCH AS THE ENHANCED DEATH BENEFIT PROVISION IN THE CONTRACT COMPORTS WITH IRA OR ROTH IRA QUALIFICATION REQUIREMENTS. A TAX ADVISOR SHOULD BE CONSULTED. OTHER TAX CONSEQUENCES As noted above, the foregoing comments about the federal tax consequences under the Contracts are not exhaustive, and special rules are provided with respect to other tax situations not discussed in this prospectus. Further, the federal income tax consequences discussed herein reflect our understanding of current law, and the law may change. Federal estate and state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a Contract depend on the individual circumstances of each contract owner or recipient of the distribution. A competent tax adviser should be consulted for further information. POSSIBLE CHANGES IN TAXATION Although the likelihood of legislative change is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or other means. It is also possible that any change could be retroactive (that is, effective before the date of the change). You should consult a tax adviser with respect to legislative developments and their effect on the Contract. ACC - 121360 63 This page intentionally left blank. -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION -------------------------------------------------------------------------------- TABLE OF CONTENTS ITEM PAGE Introduction......................................... 1 Description of Golden American Life Insurance Company........................................... 1 Safekeeping of Assets................................ 1 The Administrator.................................... 1 Independent Auditors................................. 1 Distribution of Contracts............................ 1 Performance Information.............................. 2 IRA Partial Withdrawal Option........................ 9 Other Information.................................... 9 Financial Statements of Separate Account B and Golden American Life Insurance Company............. 10 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER; THE ADDRESS IS SHOWN ON THE PROSPECTUS COVER. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT B. Please Print or Type: -------------------------------------------------- NAME -------------------------------------------------- SOCIAL SECURITY NUMBER -------------------------------------------------- STREET ADDRESS -------------------------------------------------- CITY, STATE, ZIP ACC-121360 02/12/2002 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ACC-121360 This page intentionally left blank. -------------------------------------------------------------------------------- APPENDIX A -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION--PRE-2000 AND YR-2000 Except for the International Equity Portfolio, AIM V.I. Dent Demographic Trends Fund, the Pioneer Fund VCT Portfolio, the Pioneer Mid-Cap Value VCT Portfolio, the INVESCO VIF -- Financial Services Fund, the INVESCO VIF -- Health Sciences Fund and the INVESCO -- Utilities Fund subaccounts which did not commence operations as of September 30, 2001, the following tables give (1) the accumulation unit value ("AUV"), (2) the total number of accumulation units, and (3) the total accumulation unit value, for each subaccount of Golden American Separate Account B available under the Contract for the indicated periods. The date on which the subaccount became available to investors and the starting accumulation unit value are indicated on the last row of each table. If you do not know your contract category, it now appears on your quarterly statement. CONTRACT CATEGORY: PRE-2000
LIQUID ASSET ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $15.81 1,253,548 $ 19,817 $15.51 162,786 $2,525 $ 15.19 298,296 $4,531 2000 15.47 1,882,788 29,128 15.19 136,169 2,069 14.90 180,291 2,686 1999 14.79 1,335,241 19,754 14.55 171,595 2,497 14.29 341,263 4,877 1998 14.33 114,958 1,647 14.11 55,847 788 13.88 101,998 1,416 1997 13.83 3,498 48 13.65 -- -- 13.44 72,123 969 10/1/97 13.71 -- -- 13.53 -- -- 13.33 -- -- ----------------------------------------------------------------------------------------------------------------------------
LIMITED MATURITY BOND ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $19.08 68,078 $ 1,299 $18.72 16,099 $ 301 $ 18.33 56,167 $1,030 2000 17.76 44,713 794 17.45 12,060 210 17.11 42,631 $729 1999 16.72 74,720 1,249 16.45 15,174 250 16.15 48,448 783 1998 16.77 59,954 1,005 16.52 24,212 400 16.25 27,265 443 1997 15.91 -- -- 15.70 -- -- 15.47 6,594 102 10/1/97 15.72 -- -- 15.52 -- -- 15.29 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A1
CORE BOND (FORMERLY GLOBAL FIXED INCOME) ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $11.94 46,144 $551 $11.81 8,995 $ 106 $ 11.69 42,101 $ 492 2000 11.74 11,906 140 11.62 7,006 81 11.51 14,336 165 1999 11.79 10,000 118 11.70 6,732 79 11.60 16,001 186 1998 13.09 6,756 88 13.00 973 13 12.92 13,635 176 1997 11.87 -- -- 11.81 -- -- 11.75 -- -- 10/1/97 11.99 -- -- 11.93 -- -- 11.87 -- -- ----------------------------------------------------------------------------------------------------------------------------
FULLY MANAGED ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $26.89 60,628 $ 1,631 $26.38 18,398 $ 485 $ 25.84 82,844 $2,141 2000 26.04 53,971 1,405 25.57 14,662 375 25.07 74,754 1,874 1999 21.65 59,627 1,291 21.29 16,637 354 20.91 88,167 1,844 1998 20.53 36,730 754 20.23 5,645 114 19.90 54,221 1,079 1997 19.66 5,900 116 19.40 -- -- 19.11 927 18 10/1/97 19.49 -- -- 19.24 -- -- 18.96 -- -- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $19.48 234,328 $4,564 $19.27 29,878 $576 $ 19.06 186,314 $3,552 2000 20.75 260,099 5,396 20.55 37,113 763 20.35 164,366 3,345 1999 18.06 337,234 6,090 17.91 38,114 683 17.77 210,313 3,737 1998 17.72 148,128 2,624 17.60 21,490 378 17.49 131,812 2,305 1997 16.10 10,470 169 16.02 -- -- 15.94 4,594 73 10/1/97 15.82 -- -- 15.75 -- -- 15.68 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A2
ASSET ALLOCATION GROWTH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 8.11 -- -- $ 8.10 758 $ 6 $ 8.09 12,340 $100 2000 9.38 -- -- 9.37 -- -- 9.37 7,476 70 10/2/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $22.24 48,494 $1,079 $21.82 28,479 $621 $21.37 58,881 $1,258 2000 23.91 50,767 1,214 23.49 16,808 395 23.03 55,601 1,281 1999 21.47 82,137 1,764 21.12 21,450 453 20.74 58,908 1,222 1998 21.94 20,873 458 21.61 10,722 232 21.26 30,935 658 1997 20.55 1,008 21 20.28 -- -- 19.97 951 19 10/1/97 20.55 -- -- 20.29 -- -- 19.99 -- -- ----------------------------------------------------------------------------------------------------------------------------
ALL CAP ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $10.49 31,179 $327 $10.46 26,769 $280 $ 10.44 69,671 $727 2000 $11.59 20,518 238 11.58 9,849 114 11.56 28,833 333 2/1/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 8.30 860 $ 7 $ 8.29 3.841 $32 $ 8.28 21,531 $178 2000 9.94 -- -- 9.94 1,130 11 9.94 1,474 15 10/2/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A3
REAL ESTATE ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $27.43 8,192 $225 $26.91 5,581 $ 150 $ 26.36 19,301 $509 2000 26.64 6,516 174 26.16 5,466 143 25.65 22,147 568 1999 20.62 5,842 120 20.28 4,131 84 19.92 21,680 432 1998 21.74 4,904 107 21.42 3,606 77 21.07 18,094 381 1997 25.48 318 8 25.14 744 19 24.76 949 23 10/1/97 25.25 -- -- 24.92 -- -- 24.56 -- -- ----------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $16.44 39,989 $657 $16.27 12,984 $211 $16.08 37,276 $599 2000 19.46 48,316 940 19.29 12,723 245 19.08 37,083 708 1999 18.14 43,052 781 18.01 12,137 219 17.84 54,847 979 1998 18.31 38,546 706 18.20 13,015 237 18.06 39,739 718 1997 18.28 8,379 153 18.20 2,735 50 18.09 1,848 33 10/1/97 18.85 -- -- 18.78 -- -- 18.67 -- -- ----------------------------------------------------------------------------------------------------------------------------
INVESTORS ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 9.65 6,661 $64 $ 9.63 4,017 $ 39 $ 9.60 5,782 $56 2000 11.26 2,291 26 11.25 963 10 11.23 491 6 2/1/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A4
RISING DIVIDENDS ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $19.61 141,754 $2,780 $19.37 46,162 $ 894 $ 19.11 159,847 $3,055 2000 24.94 167,032 4,165 24.67 54,145 1,336 24.36 181,802 4,429 1999 25.83 187,702 4,849 25.59 50,429 1,291 25.31 235,428 5,959 1998 22.61 127,282 2,878 22.43 38,436 862 22.22 135,474 3,011 1997 20.09 4,422 89 19.96 2,343 47 19.81 9,754 193 10/1/97 19.30 -- -- 19.19 -- -- 19.05 -- -- ----------------------------------------------------------------------------------------------------------------------------
MANAGED GLOBAL ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $15.47 85,264 $ 1,319 $15.26 57,210 $ 873 $15.03 126,460 $1,901 2000 20.19 99,153 2,002 19.94 59,997 1,197 19.67 135,545 2,666 1999 23.97 130,506 3,128 23.71 47,060 1,116 23.42 139,357 3,263 1998 14.88 97,572 1,452 14.75 15,757 232 14.59 67,979 992 1997 11.67 5,054 59 11.58 2,459 28 11.47 3,479 40 10/1/97 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 8.60 12,016 $103 $ 8.58 5,622 $ 48 $ 8.56 76,320 $653 2000 10.55 9,433 99 10.53 9,953 105 10.52 10,630 112 2/1/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A5
HARD ASSETS ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $13.37 853 $ 11 $13.11 2,178 $ 29 $ 12.84 1,067 $ 14 2000 16.32 3,275 53 16.03 2,018 32 15.72 2,086 33 1999 17.37 6,833 119 17.09 2,719 46 16.78 6,235 105 1998 14.28 892 13 14.07 1,478 21 13.84 5,166 71 1997 20.57 331 7 20.29 -- -- 19.99 2,508 50 10/1/97 24.00 -- -- 23.68 -- -- 23.34 -- -- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MID-CAP ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 7.70 4,638 $36 $ 7.69 -- $ -- $ 7.68 8,929 $ 69 2000 9.88 2,028 20 9.87 9,856 97 9.87 1,732 17,100 10/2/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
RESEARCH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $18.28 127,012 $2,321 $18.07 121,784 $2,201 $ 17.88 126,970 $2,271 2000 26.39 150,291 3,967 26.13 129,843 3,393 25.89 138,087 3,575 1999 28.04 150,823 4,229 27.80 127,318 3,540 27.58 181,319 5,001 1998 22.89 110,714 2,534 22.73 31,874 725 22.59 133,399 3,013 1997 18.87 11,013 208 18.77 188 4 18.67 7,799 146 10/1/97 19.33 -- -- 19.24 -- -- 19.15 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A6
CAPITAL GROWTH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $11.87 138,350 $1,642 $11.77 49,349 $ 581 $ 11.67 101,439 $1,184 2000 17.21 157,772 2,715 17.09 69,354 1,185 16.96 114,090 1,935 1999 21.06 167,529 3,528 20.94 48,822 1,022 20.82 120,704 2,513 1998 17.01 96,954 1,649 16.94 20,590 349 16.87 81,019 1,367 1997 15.41 22,054 340 15.36 393 6 15.32 7,777 119 10/1/97 15.99 -- -- 15.95 -- -- 15.92 -- -- ----------------------------------------------------------------------------------------------------------------------------
CAPITAL APPRECIATION ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $19.66 46,566 $ 916 $19.38 20,599 $399 $ 19.08 75,167 $1,434 2000 25.17 56,629 1,425 24.85 23,640 587 24.48 92,525 2,265 1999 30.11 46,533 1,401 29.77 13,334 397 29.38 71,439 2,099 1998 24.50 22,645 555 24.26 5,934 144 23.98 27,469 659 1997 22.05 664 15 21.87 295 6 21.65 2,706 59 10/1/97 21.95 -- -- 21.78 -- -- 21.57 -- -- ----------------------------------------------------------------------------------------------------------------------------
SMALL CAP ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $14.17 152,949 $2,168 $14.05 42,004 $590 $ 13.93 106,030 $1,477 2000 18.40 135,798 2,498 18.26 46,074 841 18.12 122,678 2,223 1999 22.82 105,241 2,402 22.68 36,816 835 22.55 123,524 2,785 1998 15.37 50,890 782 15.30 17,135 262 15.23 53,468 814 1997 12.88 1,196 15 12.84 -- -- 12.81 6,051 77 10/1/97 13.85 -- -- 13.82 -- -- 13.78 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A7
MID-CAP GROWTH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $25.56 92,148 $2,355 $25.33 106,772 $2,704 $ 25.06 106,582 $2,671 2000 42.23 128,296 5,418 41.89 114,827 4,811 41.50 127,691 5,299 1999 39.59 106,799 4,229 39.34 95,422 3,753 39.02 91,512 3,571 1998 22.43 36,892 827 22.31 11,475 256 22.17 27,846 617 1997 18.52 813 15 18.45 1,826 34 18.36 178 3 10/1/97 18.94 -- -- 18.88 -- -- 18.79 -- -- ----------------------------------------------------------------------------------------------------------------------------
STRATEGIC EQUITY ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $11.70 49,705 $ 582 $11.60 24,922 $ 289 $ 11.48 62,578 $ 718 2000 18.92 71,053 1,345 18.78 29,949 562 18.60 109,011 2,028 1999 21.92 40,286 883 21.78 15,633 341 21.61 103,635 2,240 1998 14.23 34,803 495 14.16 2,507 36 14.07 78,636 1,107 1997 14.31 -- -- 14.26 -- -- 14.20 -- -- 10/1/97 14.14 -- -- 14.10 -- -- 14.04 -- -- ----------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 7.29 5,898 $43 $ 7.27 3,689 $ 27 $ 7.26 4,897 $36 2000 8.89 6,139 55 8.89 3,337 30 8.88 4,546 40 10/2/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A8
GROWTH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $13.81 276,498 $ 3,819 $13.69 127,640 $1,748 $ 13.58 277,038 $3,762 2000 22.02 332,958 7,331 21.86 182,709 3,993 21.70 306,662 6,654 1999 28.62 435,689 12,470 28.46 152,492 4,339 28.29 291,231 8,240 1998 16.29 73,358 1,195 16.22 19,004 308 16.16 89,016 1,438 1997 13.03 4,054 53 12.99 10,033 130 12.96 11,500 149 10/1/97 15.18 -- -- 15.14 -- -- 15.10 -- -- ----------------------------------------------------------------------------------------------------------------------------
DEVELOPING WORLD ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 5.62 41,148 $231 $ 5.59 21,818 $ 122 $ 5.56 34,577 $192 2000 7.58 18,014 137 7.55 9,706 73 7.51 19,723 148 1999 11.61 19,689 229 11.58 13,759 159 11.54 10,065 116 1998 7.28 350 3 7.27 1,768 13 7.26 616 4 2/19/98 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
INTERNET TOLLKEEPER ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 6.18 -- -- $ 6.18 266 $ 2 $ 6.18 -- -- 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PIMCO HIGH YIELD BOND ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 9.68 118,208 $ 1,144 $ 9.63 32,716 $ 315 $ 9.58 85,099 $ 815 2000 10.01 127,141 1,273 9.97 32,704 326 9.93 73,421 729 1999 10.24 145,283 1,488 10.21 35,651 364 10.19 109,159 1,112 1998 10.08 59,318 598 10.07 10,615 107 10.06 70,508 709 5/1/98 10.00 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A9
PIMCO STOCKSPLUS GROWTH AND INCOME ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 9.32 119,848 $1,116 $ 9.27 53,270 $494 $ 9.22 248,666 $2,293 2000 11.72 133,610 1,566 11.67 59,574 695 11.62 269,136 3,129 1999 13.13 126,402 1,660 13.10 31,651 415 13.06 280,781 3,668 1998 11.11 22,136 246 11.10 817 9 11.09 33,250 369 5/1/98 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PILGRIM VIT WORLDWIDE GROWTH (FORMERLY, PILGRIM GLOBAL BRAND NAMES) ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 6.35 3,895 $25 $ 6.34 288 $ 2 $ 6.32 1,973 $12 2000 8.75 -- -- 8.75 301 3 8.74 472 4 5/1/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PRUDENTIAL JENNISON ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 5.40 3,635 $20 $ 5.39 3,993 $ 22 $ 5.38 663 $ 4 2000 7.85 5,251 41 7.84 -- -- 7.83 7,926 62 5/1/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
SP JENNISON INTERNATIONAL GROWTH ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 5.02 1,146 $ 6 $ 5.01 -- -- $ 5.00 1,777 $ 9 2000 8.56 -- -- 8.56 -- -- 8.56 -- -- 10/2/00 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A10
PILGRIM VP MAGNA CAP ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 8.60 -- -- $ 8.60 -- -- $ 8.59 19,525 $ 168 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PILGRIM VP SMALL CAP OPPORTUNITIES ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 7.13 89 $ 1 $ 7.13 23 $ 0* $ 7.12 -- -- 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
* Less than $500.
PILGRIM VP GROWTH OPPORTUNITIES ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 6.75 -- -- $ 6.75 -- -- $ 6.74 -- -- 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PROFUNDS VP BULL ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 8.13 -- -- $ 8.13 -- -- $ 8.12 150 $ 1 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A11
PROFUNDS VP SMALL-CAP ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 7.99 -- -- $ 7.98 -- -- $ 7.98 -- -- 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
PROFUNDS VP EUROPE 30 ---------------------------------------------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT 7% SOLUTION ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $ 7.81 -- -- $ 7.80 -- -- $ 7.80 -- -- 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
ACC - 121360 A12 CONTRACT CATEGORIES: YR-2000 AND YR-2001
LIQUID ASSET -------------------------------------------------------------------------------------- YR-2000 -------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $15.64 1,912,802 $29,909 $15.34 150,916 $2,315 2000 15.31 2,307,052 35,317 15.03 191,312 2,876 2/1/00 14.70 -- -- 14.45 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.95 1,346,203 $20,123 $14.76 117,983 $1,741 2000 14.67 49,920 732 14.50 73,853 1,071 2/1/00 14.13 -- -- 13.97 -- -- --------------------------------------------------------------------------------------
LIMITED MATURITY BOND -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.90 94,085 $1,778 $18.54 32,122 $595 2000 17.60 45,296 797 17.29 27,971 483 2/1/00 16.56 -- -- 16.28 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.07 82,114 $1,484 $17.84 43,029 $767 2000 16.87 3,837 65 16.67 10,293 172 2/1/00 15.92 -- -- 15.74 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A13
CORE BOND (FORMERLY GLOBAL FIXED INCOME) -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.90 75,945 $904 $11.77 11,560 $136 2000 11.70 25,693 3001 11.59 11,027 128 2/1/00 11.44 -- -- 11.35 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.61 111,035 $1,289 $11.52 11,307 $130 2000 11.44 4,897 56 11.37 7,186 82 2/1/00 11.23 -- -- 11.17 -- -- --------------------------------------------------------------------------------------
FULLY MANAGED -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $26.69 53,650 $1,432 $26.18 21,880 $573 2000 25.84 18,533 479 25.38 13,377 340 2/1/00 20.89 -- -- 20.54 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $25.51 73,976 $1,887 $25.18 25,191 $634 2000 24.77 9,867 244 24.47 14,436 353 2/1/00 20.08 -- -- 19.06 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A14
TOTAL RETURN -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $19.40 225,308 $4,372 $19.20 39,076 $750 2000 20.68 101,418 2,097 20.48 37,412 766 2/1/00 17.46 -- -- 17.32 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.93 127,010 $2,404 $18.80 54,375 $1,022 2000 20.22 18,662 377 20.10 23,205 466 2/1/00 17.13 -- -- 17.04 -- -- --------------------------------------------------------------------------------------
ASSET ALLOCATION GROWTH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.11 91,017 $738 $8.10 5,273 $43 2000 9.38 13,340 125 9.37 4,094 38 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.08 47,579 $385 $8.07 2,978 $24 2000 9.37 414 4 9.37 2,028 19 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A15
EQUITY INCOME -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $22.07 45,263 $999 $21.65 25,756 $558 2000 23.74 22,218 527 23.31 10,901 254 2/1/00 20.18 -- -- 19.85 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $21.10 54,587 $1,152 $20.83 18,208 $379 2000 22.75 10,344 235 22.48 12,701 285 2/1/00 19.41 -- -- 19.19 -- -- --------------------------------------------------------------------------------------
ALL CAP -------------------------------------------------------------------------------------- STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $10.48 134,936 $1,414 $10.46 43,738 $457 2000 11.59 81,144 940 11.57 33,359 386 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $10.42 165,427 $1,724 $10.40 124,327 $1,293 2000 11.55 69,580 804 11.54 51,207 591 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A16
GROWTH AND INCOME -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.30 58,715 $487 $8.28 31,802 $263 2000 9.94 8,419 84 9.94 10,679 106 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.27 61,691 $510 $8.26 84,516 $698 2000 9.93 3,096 31 9.93 6,664 66 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
REAL ESTATE -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $27.22 21,454 $584 $26.70 2,632 $70 2000 26.44 7,445 197 25.97 2,636 68 2/1/00 20.64 -- -- 20.30 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $26.02 16,117 $419 $25.69 6,659 $171 2000 25.34 4,138 105 25.04 4,567 114 2/1/00 19.85 -- -- 19.63 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A17
VALUE EQUITY -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $16.36 48,825 $799 $16.20 6,818 $110 2000 19.38 19,915 386 19.20 5,496 106 2/1/00 17.48 -- -- 17.35 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $15.98 22,490 $359 $15.87 12,993 $206 2000 18.97 6,859 130 18.85 3,119 59 2/1/00 17.17 -- -- 17.08 -- -- --------------------------------------------------------------------------------------
INVESTORS -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.64 41,817 $403 $9.62 10,279 $99 2000 11.26 11,814 133 11.24 7,405 83 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.59 49,887 $478 $9.57 38,296 $367 2000 11.22 2,820 32 11.21 19,386 217 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A18
RISING DIVIDENDS -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $19.50 103,235 $2,013 $19.27 25,256 $487 2000 24.81 71,151 1,765 24.54 25,276 620 2/1/00 25.53 -- -- 25.28 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- YR-2000 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.96 61,432 $1,165 $18.80 51,059 $960 2000 24.18 26,297 636 24.00 37,658 903 2/1/00 24.96 -- -- 24.80 -- -- --------------------------------------------------------------------------------------
MANAGED GLOBAL -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $15.38 329,842 $5,072 $15.17 50,782 $770 2000 20.08 103,869 2,086 19.83 44,114 875 5/1/00 22.29 -- -- 22.04 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.90 247,673 $3,689 $14.76 80,868 $1,194 2000 19.51 57,873 1,129 19.34 59,264 1,146 5/1/00 21.72 -- -- 21.56 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A19
LARGE CAP VALUE -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.59 246,366 $2,117 $8.57 52,360 $449 2000 10.54 102,777 1,083 10.53 43,073 453 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.54 186,122 $1,590 $8.53 123,111 $1,050 2000 10.51 50,965 535 10.50 36,021 378 2/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
HARD ASSETS -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.26 5,129 $68 $13.01 2,419 $31 2000 16.20 4,582 74 15.91 818 13 2/1/00 16.12 -- -- 15.85 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $12.68 6,764 $86 $12.52 2,087 $26 2000 15.53 3,662 57 15.34 1,434 22 2/1/00 15.50 -- -- 15.33 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A20
DIVERSIFIED MID-CAP -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.70 57,442 $442 $7.68 13,065 $100 2000 9.88 7,594 75 9.87 62 1 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- YR-2000 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.67 49,615 $380 $7.66 39,450 $302 2000 9.87 1,091 11 9.87 3,629 36 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
RESEARCH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.20 92,473 $1,683 $18.01 22,825 $411 2000 26.30 76,661 2,016 26.05 26,695 695 2/1/00 26.94 -- -- 26.72 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $17.76 51,838 $920 $17.63 56,698 $1,000 2000 25.72 25,176 648 25.56 44,388 1,135 2/1/00 26.43 -- -- 26.29 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A21
CAPITAL GROWTH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.83 57,626 $682 $11.74 20,584 $242 2000 17.17 55,376 951 17.04 26,619 454 2/1/00 20.13 -- -- 20.01 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.60 46,562 $540 $11.54 28,198 $325 2000 16.88 19,326 326 16.80 18,742 315 2/1/00 19.86 -- -- 19.78 -- -- --------------------------------------------------------------------------------------
CAPITAL APPRECIATION -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $19.54 117,805 $2,302 $19.26 22,312 $430 2000 25.03 74,815 1,872 24.70 29,608 731 2/1/00 29.44 -- -- 29.09 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.90 69,322 $1,310 $18.72 45,054 $843 2000 24.27 27,404 665 24.06 29,429 708 2/1/00 28.64 -- -- 28.41 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A22
SMALL CAP -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.13 186,570 $2,636 $14.01 27,563 $386 2000 18.35 75,488 1,385 18.21 25,452 464 2/1/00 23.69 -- -- 23.54 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.85 257,874 $3,570 $13.76 70,064 $964 2000 18.03 31,396 566 17.94 28,771 516 2/1/00 23.35 -- -- 23.25 -- -- --------------------------------------------------------------------------------------
MID-CAP GROWTH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $25.51 188,097 $4,798 $25.24 38,523 $ 972 2000 42.16 120,112 5,064 41.76 36,742 1,534 2/1/00 38.56 -- -- 38.25 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $24.88 71,598 $1,782 $24.71 92,853 $2,294 2000 41.24 37,305 1,538 40.98 62,447 2,559 2/1/00 37.84 -- -- 37.63 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A23
STRATEGIC EQUITY -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.65 72,363 $ 843 $11.55 24,985 $289 2000 18.85 71,171 1,342 18.70 25,268 473 2/1/00 21.70 -- -- 21.56 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.41 51,162 $584 $11.34 52,784 $ 598 2000 18.50 25,891 479 18.40 55,344 1,019 2/1/00 21.37 -- -- 21.27 -- -- --------------------------------------------------------------------------------------
SPECIAL SITUATIONS -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.28 4,830 $35 $7.27 1,482 $11 2000 8.89 1,554 14 8.88 118 1 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.26 14,769 $107 $7.25 18,748 $136 2000 8.88 558 5 8.88 6,836 61 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A24
GROWTH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.77 296,093 $4,078 $13.66 100,271 $1,369 2000 21.96 194,584 4,273 21.80 92,527 2,017 2/1/00 29.12 -- -- 28.95 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.50 207,416 $2,801 $13.43 171,648 $2,305 2000 21.59 148,220 3,201 21.49 128,111 2,753 2/1/00 28.72 -- -- 28.61 -- -- --------------------------------------------------------------------------------------
DEVELOPING WORLD -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.61 339,387 $1,905 $5.58 20,655 $115 2000 7.57 15,576 118 7.54 8,257 62 2/1/00 11.66 -- -- 11.63 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.54 71,379 $395 $5.52 31,199 $172 2000 7.49 5,648 42 7.47 3,920 29 2/1/00 11.58 -- -- 11.56 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A25
INTERNET TOLLKEEPER -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.18 339 $2 $6.18 957 $6 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.17 6,321 $39 $6.17 709 $4 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PIMCO HIGH YIELD BOND -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.66 88,350 $853 $9.61 15,966 $153 2000 10.00 69,128 691 9.96 9,906 99 2/1/00 10.16 -- -- 10.13 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.54 107,982 $1,030 $9.51 30,708 $292 2000 9.90 17,884 177 9.88 10,008 99 2/1/00 10.09 -- -- 10.07 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A26
PIMCO STOCKSPLUS GROWTH AND INCOME -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.30 159,731 $1,485 $9.25 19,509 $180 2000 11.70 73,801 864 11.66 16,898 197 2/1/00 12.52 -- -- 12.49 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.19 61,451 $565 $9.16 80,151 $734 2000 11.59 24,282 282 11.56 56,240 650 2/1/00 12.45 -- -- 12.42 -- -- --------------------------------------------------------------------------------------
PILGRIM VIT WORLDWIDE GROWTH (FORMERLY, PILGRIM GLOBAL BRAND NAMES) -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.35 29,727 $189 $6.33 15,254 $97 2000 8.75 11,885 104 8.74 16,394 143 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.31 20,233 $128 $6.31 5,143 $32 2000 8.73 3,037 27 8.72 2,591 23 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A27
PRUDENTIAL JENNISON -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.40 29,230 $158 $5.39 16,666 $90 2000 7.84 5,968 47 7.84 17,170 135 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.37 42,072 $226 $5.36 27,602 $148 2000 7.82 4,023 31 7.82 17,947 140 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
SP JENNISON INTERNATIONAL GROWTH -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.02 24,532 $123 $5.01 4,799 $24 2000 8.56 -- -- 8.56 4,799 41 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.00 84,148 $421 $4.99 13,643 $68 2000 8.55 -- -- 8.55 1,645 14 10/2/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A28
PILGRIM VP MAGNACAP -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.60 -- -- $8.60 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.59 38,948 $335 $8.59 789 $7 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PILGRIM VP SMALLCAP OPPORTUNITIES -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.13 1,304 $ 9 $ 7.12 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.12 11,959 $85 $ 7.11 466 $3 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A29
PILGRIM VP GROWTH OPPORTUNITIES -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.75 -- -- $6.75 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.74 2,665 $18 $6.74 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PROFUND VP BULL -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.13 1,734 $14 $8.13 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.12 4,345 $35 $8.12 322 $3 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A30
PROFUND VP SMALL-CAP ---------------------------------------------------------------------------------------------------------------------------- YR-2001 YR-2000 ANNUAL RATCHET STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT ENHANCED DEATH BENEFIT ---------------------------------------------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) ---------------------------------------------------------------------------------------------------------------------------- 9/28/01 $7.99 2,385 $19 $7.98 738 $6 $7.97 875 $7 5/1/01 10.00 -- -- 10.00 -- -- 10.00 -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.98 109,324 $872 $7.97 -- -- 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PROFUND VP EUROPE 30 -------------------------------------------------------------------------------------- YR-2000 STANDARD DEATH BENEFIT ANNUAL RATCHET DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.81 238,429 $1,861 $ 7.80 -- -- 5/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.79 352,485 $2,747 $ 7.79 -- -- 5/1/00 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A31 CONTRACT CATEGORY: MAY-2001 CONTRACT CATEGORY: MAY-2001
LIQUID ASSET -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.95 1,346,203 $20,123 $14.52 159,690 $2,319 5/1/01 * 14.43 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.33 92,925 $1,332 $14.15 254,546 $3,601 5/1/01 14.25 -- -- 14.07 -- -- --------------------------------------------------------------------------------------
LIMITED MATURITY BOND -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.07 82,114 $1,484 $17.52 17,940 $314 5/1/01 * 16.79 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $17.30 5,616 $97 $17.08 18,638 $318 5/1/01 16.58 -- -- 16.37 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A32
CORE BOND (FORMERLY GLOBAL FIXED INCOME) -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.61 111,035 $1,289 $11.40 30,262 $345 5/1/01 * 10.88 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.32 49,444 $560 $11.24 21,872 $246 5/1/01 10.81 -- -- 10.78 -- -- --------------------------------------------------------------------------------------
FULLY MANAGED -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $25.51 73,976 $1,887 $24.70 14,155 $350 5/1/01 * 25.63 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $24.38 18,077 $441 $24.07 43,596 $1,049 5/1/01 25.31 -- -- 25.00 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A33
TOTAL RETURN -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.93 127,010 $2,404 $18.60 23,295 $433 5/1/01 * 19.98 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.46 34,666 $640 $18.33 37,681 $691 5/1/01 19.84 -- -- 19.71 -- -- --------------------------------------------------------------------------------------
ASSET ALLOCATION GROWTH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.08 47,579 $385 $8.06 7,635 $62 5/1/01 * 8.97 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.05 3,379 $27 $8.04 15,194 $122 5/1/01 8.97 -- -- 8.96 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A34
EQUITY INCOME -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $21.10 54,587 $1,152 $20.43 8,905 $182 5/1/01 * 22.18 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $20.17 14,648 $295 $19.91 13,162 $262 5/1/01 21.91 -- -- 21.63 -- -- --------------------------------------------------------------------------------------
ALL CAP -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $10.42 165,427 $1,724 $10.38 38,180 $396 5/1/01 * 12.15 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $10.36 22,284 $231 $10.34 70,617 $730 5/1/01 12.13 -- -- 12.11 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A35
GROWTH AND INCOME -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.27 61,691 $510 $8.25 12,701 $105 5/1/01 * 9.55 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.24 8,055 $66 $8.23 21,084 $174 5/1/01 9.55 -- -- 9.54 -- -- --------------------------------------------------------------------------------------
REAL ESTATE -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $26.02 16,117 $419 $25.20 5,058 $127 5/1/01 * 24.26 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $24.87 3,768 $94 $24.55 13,022 $320 5/1/01 23.95 -- -- 23.66 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A36
VALUE EQUITY -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $15.98 22,490 $359 $15.71 8,661 $136 5/1/01 * 19.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $15.60 4,881 $76 $15.49 10,195 $158 5/1/01 18.88 -- -- 18.76 -- -- --------------------------------------------------------------------------------------
INVESTORS -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.59 49,887 $478 $ 9.55 4,389 $42 5/1/01 * 11.36 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 9.53 11,165 $106 $ 9.51 32,542 $310 5/1/01 11.34 -- -- 11.33 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A37
RISING DIVIDENDS -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.96 61,432 $1,165 $18.58 13,511 $251 5/1/01 * 21.46 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.43 7,346 $135 $18.28 8,922 $163 5/1/01 21.30 -- -- 21.13 -- -- --------------------------------------------------------------------------------------
MANAGED GLOBAL -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.90 247,673 $3,689 $14.56 9,093 $132 5/1/01 * 18.97 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $14.43 12,423 $179 $14.30 31,322 $448 5/1/01 18.81 -- -- 18.64 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A38
LARGE CAP VALUE -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $8.54 186,122 $1,590 $ 8.51 35,630 $303 5/1/01 * 10.41 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 8.49 31,779 $270 $ 8.48 74,872 $635 5/1/01 10.40 -- -- 10.38 -- -- --------------------------------------------------------------------------------------
HARD ASSETS -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $12.68 6,764 $86 $12.28 9,104 $112 5/1/01 * 15.32 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $12.12 2,575 $31 $11.96 1,028 $12 5/1/01 15.13 -- -- 14.94 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A39
DIVERSIFIED MID-CAP -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.67 49,615 $380 $7.65 10,145 $78 5/1/01 * 9.41 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.64 13,184 $101 $7.63 7,515 $57 5/1/01 9.40 -- -- 9.40 -- -- --------------------------------------------------------------------------------------
RESEARCH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $17.76 51,838 $920 $17.44 12,669 $221 5/1/01 * 22.97 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $17.32 9,308 $161 $17.20 19,519 $336 5/1/01 22.82 -- -- 22.67 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A40
CAPITAL GROWTH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.60 46,562 $540 $11.44 10,447 $120 5/1/01 * 15.91 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.38 3,913 $45 $11.32 10,771 $122 5/1/01 15.83 -- -- 15.75 -- -- --------------------------------------------------------------------------------------
CAPITAL APPRECIATION -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.90 69,322 $1,310 $18.45 15,006 $277 5/1/01 * 22.73 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $18.27 5,598 $102 $18.10 17,480 $316 5/1/01 22.52 -- -- 22.31 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A41
SMALL CAP -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.85 257,874 $3,570 $13.64 19,055 $260 5/1/01 * 17.46 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.56 7,094 $96 $13.49 24,807 $335 5/1/01 17.37 -- -- 17.27 -- -- --------------------------------------------------------------------------------------
MID-CAP GROWTH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $24.88 71,598 $1,782 $24.44 12,867 $315 5/1/01 * 38.88 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $24.27 12,577 $305 $24.10 19,324 $466 5/1/01 38.62 -- -- 38.36 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A42
STRATEGIC EQUITY -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.41 51,162 $584 $11.23 4,006 $45 5/1/01 * 16.21 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $11.17 5,137 $57 $11.10 3,466 $38 5/1/01 16.12 -- -- 16.03 -- -- --------------------------------------------------------------------------------------
SPECIAL SITUATIONS -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.26 14,769 $107 $7.24 3,038 $22 5/1/01 * 8.92 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $7.23 3,123 $23 $7.22 4,538 $33 5/1/01 8.92 -- -- 8.91 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A43
GROWTH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.50 207,416 $2,801 $13.32 15,833 $211 5/1/01 * 18.75 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $13.24 21,376 $283 $13.17 23,940 $315 5/1/01 18.65 -- -- 18.55 -- -- --------------------------------------------------------------------------------------
DEVELOPING WORLD -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.54 71,379 $395 $5.49 28,130 $154 5/1/01 * 7.30 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.47 6,824 $37 $5.45 2,649 $14 5/1/01 7.27 -- -- 7.25 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A44
INTERNET TOLLKEEPER -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 6.17 6,321 $39 $ 6.17 5,208 $32 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 6.16 1,677 $10 $ 6.16 2,872 $18 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PIMCO HIGH YIELD BOND -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.54 107,982 $1,030 $9.46 30,484 $288 5/1/01 * 9.79 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.43 15,339 $145 $9.39 51,019 $479 5/1/01 9.76 -- -- 9.73 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A45
PIMCO STOCKSPLUS GROWTH AND INCOME -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.19 61,451 $565 $9.11 5,656 $52 5/1/01 * 10.81 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $9.08 2,035 $18 $9.04 12,310 $111 5/1/01 10.77 -- -- 10.74 -- -- --------------------------------------------------------------------------------------
PILGRIM VIT WORLDWIDE GROWTH (FORMERLY, PILGRIM GLOBAL BRAND NAMES) -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.31 20,233 $128 $6.29 15,560 $98 5/1/01 * 8.19 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $6.28 4,491 $28 $6.27 4,879 $31 5/1/01 8.18 -- -- 8.18 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A46
PRUDENTIAL JENNISON -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.37 42,072 $226 $5.35 1,930 $10 5/1/01 * 7.08 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.34 7,412 $40 $5.34 19,897 $106 5/1/01 7.07 -- -- 7.07 -- -- --------------------------------------------------------------------------------------
SP JENNISON INTERNATIONAL GROWTH -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT * ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $5.00 84,148 $421 $4.99 4,424 $22 5/1/01 * 7.27 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $4.98 2,963 $15 $4.98 6,285 $31 5/1/01 7.27 -- -- 7.26 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A47
PILGRIM VP MAGNACAP -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 8.59 38,948 $335 $ 8.58 10,753 $92 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 8.58 5,705 $49 $ 8.57 3,153 $27 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PILGRIM VP SMALLCAP OPPORTUNITIES -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.12 11,959 $85 $ 7.11 1,652 $12 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.11 5,961 $42 $ 7.10 1,730 $12 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
* For historical values of Standard Death Benefit, see Categories Yr-2000 and Yr-2001, 7% Solution Enhanced Death Benefit. ACC - 121360 A48
PILGRIM VP GROWTH OPPORTUNITIES -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 6.74 2,665 $18 $ 6.73 3,179 $21 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 6.73 2,658 $18 $ 6.73 1,108 $7 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PROFUND VP BULL -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 8.12 4,345 $35 $ 8.11 2,251 $18 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 8.11 142 $1 $ 8.10 842 $7 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A49
PROFUND VP SMALL-CAP -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.98 109,324 $872 $ 7.98 $ 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.96 272 $2 $ 7.96 1,462 $12 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
PROFUND VP EUROPE 30 -------------------------------------------------------------------------------------- ANNUAL RATCHET STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.79 352,485 $2,747 $ 7.79 1,210 $9 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- 7% SOLUTION ENHANCED DEATH BENEFIT MAX 7 DEATH BENEFIT -------------------------------------------------------------------------------------- AUV AT TOTAL # OF AUV AT TOTAL # OF PERIOD/ ACCUMULATION PERIOD/ ACCUMULATION YEAR END UNITS AT TOTAL YEAR END UNITS AT TOTAL (AND AT PERIOD/YEAR AUV AT (AND AT PERIOD/YEAR AUV AT BEGINNING END(AND AT PERIOD/ BEGINNING END(AND AT PERIOD/ OF BEGINNING OF YEAR END OF BEGINNING OF YEAR END FOLLOWING FOLLOWING (IN FOLLOWING FOLLOWING (IN YEAR) YEAR) THOUSANDS) YEAR) YEAR) THOUSANDS) -------------------------------------------------------------------------------------- 9/28/01 $ 7.79 -- -- $ 7.78 4,752 $37 5/1/01 10.00 -- -- 10.00 -- -- --------------------------------------------------------------------------------------
ACC - 121360 A50 ------------------------------------------------------------------------------- APPENDIX B ------------------------------------------------------------------------------- WITHDRAWAL ADJUSTMENT FOR 7% SOLUTION DEATH BENEFIT EXAMPLES EXAMPLE #1: THE CONTRACT VALUE (AV) IS LOWER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $87,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $80,000 ($87,000 - $7,000) The Pro rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro rata Withdrawal Adjustment to MGDB = $30,000 ($120,000 * ($20,000 / $80,000)) MGDB after Pro rata Withdrawal = $90,000 ($120,000 - $30,000) AV after Pro rata Withdrawal = $60,000 ($80,000 - $20,000) EXAMPLE #2: THE CONTRACT VALUE (AV) IS GREATER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $167,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $160,000 ($167,000 - $7,000) The Pro rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro rata Withdrawal Adjustment to MGDB = $15,000 ($120,000 * ($20,000 / $160,000)) MGDB after Pro rata Withdrawal = $105,000 ($120,000 - $15,000) AV after Pro rata Withdrawal = $140,000 ($160,000 - $20,000) ACC - 121360 B1 EXAMPLE #3: THE CONTRACT VALUE (AV) IS EQUAL TO THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $127,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $120,000 ($127,000 - $7,000) The Pro rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro rata Withdrawal Adjustment to MGDB = $20,000 ($120,000 * ($20,000 / $120,000)) MGDB after Pro rata Withdrawal = $100,000 ($120,000 - $20,000) AV after Pro rata Withdrawal = $100,000 ($120,000 - $20,000) ACC - 121360 B2 -------------------------------------------------------------------------------- APPENDIX C -------------------------------------------------------------------------------- DEATH BENEFITS FOR PRE-2000, YR-2000 OR YR-2001 CONTRACT OWNERS Your death benefits and mortality and expense risk charge depend on the category of contract owners to which you belong and on the death benefit that you chose. There are four categories of contract owners covered by this prospectus. For ease of reference, they are called Pre-2000, Yr-2000, Yr-2001 and Category May-2001. Pre-2000: a) All contracts purchased prior to February 2, 2000; and b) Contracts purchased on or after February 2, 2000 which offer three death benefit options (as approved in the state of issue at the time of purchase). Yr-2000: Contracts purchased on or after February 2, 2000 which offer four death benefit options (as approved in the state of issue at the time of purchase) including the Max 7 Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit to age 80. Yr-2001: Contracts purchased on or after January 2, 2001 which offer four death benefit options (as approved in the state of issue at the time of purchase) including the Max 7 Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit to age 90, and contain new Special Funds language. May-2001: Contracts purchased on or after May 1, 2001 which offer four death benefit options, including the Annual Ratchet Enhanced Death benefit to age 90, and have an earning multiplier benefit option (in states where approved). The purpose of this Appendix D is to describe the death benefits and the mortality and expense risk charges applicable to contract owners in Pre-2000, Yr-2000 and Yr-2001. Other than where noted, the DEATH BENEFITS described in this Appendix apply to Pre-2000 and Yr-2000. The death benefits for contract owners in Yr-2001 and May-2001 are described in the Prospectus. The MORTALITY AND EXPENSE RISK CHARGES for contract owners in Pre-2000, Yr-2000 and Yr-2001 are described in this Appendix. The mortality and expense risk charges for contract owners in May-2001 are described in the Prospectus. The following is a description of the death benefit options for contract owners in Pre-2000 and Yr-2000. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A FULL DESCRIPTION OF YOUR DEATH BENEFIT OPTIONS AND OTHER CONTRACT FEATURES. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. DEATH BENEFIT Under the STANDARD DEATH BENEFIT, if you die before the annuity start date, your beneficiary will receive the greatest of: 1) the contract value; 2) the total premium payments made under the Contract reduced by a pro rata adjustment for any withdrawal*; or 3) the cash surrender value. * For contracts in Pre-2000, total premium payments less any withdrawals. ACC - 121360 C1 Under the 7% SOLUTION ENHANCED DEATH BENEFIT, if you die before the annuity start date, your beneficiary will receive the greatest of: 1) the contract value; 2) the total premium payments reduced by a pro rata adjustment for any withdrawals*; 3) the cash surrender value; or 4) the enhanced death benefit, which we determine as follows: IF YOU ARE IN PRE-2000: We credit interest each business day at the 7% annual effective rate to the enhanced death benefit from the preceding day (which would be the initial premium if the preceding day is the contract date), then we add additional premiums paid since the preceding day, then we subtract any withdrawals (including any market value adjustment applied to such withdrawal) since the preceding day, and then we subtract any associated surrender charges. The maximum enhanced death benefit is 2 times all premium payments, less an amount to reflect withdrawals. Note: The actual interest rate used for calculating the death benefit for the Liquid Asset and Limited Maturity Bond investment portfolios will be the lesser of the 7% annual effective rate or the net rate of return for such portfolios during the applicable period. The interest rate used for calculating the death benefit for your investment in the fixed account will be the lesser of the 7% annual effective rate or the interest credited to such investment during the applicable period. Thus, selecting these investments may limit the enhanced death benefit. IF YOU ARE IN YR-2000: We credit interest each business day at the 7% annual effective rate to the enhanced death benefit from the preceding day (which would be the initial premium if the preceding day is the contract date), then we add additional premiums paid since the preceding day, then we adjust for any withdrawals (including any market value adjustment applied to such withdrawal and any associated surrender charges) since the preceding day. Special withdrawals are withdrawals of up to 7% per year of cumulative premiums. Special withdrawals shall reduce the 7% Solution Enhanced Death Benefit by the amount of contract value withdrawn. For any withdrawals in excess of the amount available as a special withdrawal, a pro rata adjustment to the death benefit is made. The maximum enhanced death benefit is 3 times all premium payments, adjusted to reflect withdrawals. Each accumulated initial or additional premium payment will continue to grow at the 7% annual effective rate until the maximum enhanced death is reached or the contract owner attains age 80, if earlier. Note for current Special Funds: Certain investment portfolios and the Fixed Account are designated as "Special Funds" for purposes of calculating the 7% Solution Enhanced Death Benefit. In addition to the Fixed Account, the investment portfolios designated currently as Special Funds are the Liquid Asset Portfolio and the Limited Maturity Bond Portfolio. The actual interest rate used for calculating the 7% Solution Enhanced Death Benefit for Special Funds will be the lesser of (1) 7% and (2) the interest rate, positive or negative, providing a yield on the enhanced death benefit for Special Funds equal to the net return for the current valuation period on the contract value allocated to Special Funds. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Thus selecting these investment portfolios and/or the Fixed Account may limit or reduce the enhanced death benefit. * For contracts in Pre-2000, total premium payments less any withdrawals. ACC - 121360 C2 Under the ANNUAL RATCHET ENHANCED DEATH BENEFIT, if you die before the annuity start date, your beneficiary will receive the greatest of: 1) the contract value; 2) the total premium payments reduced by a pro rata adjustment for any withdrawal*; 3) the cash surrender value; or 4) the enhanced death benefit, which is determined as follows: On each contract anniversary that occurs on or before the contract owner turns age 80, we compare the prior enhanced death benefit to the contract value and select the larger amount as the new enhanced death benefit. On all other days, the enhanced death benefit is the following amount: On a daily basis we first take the enhanced death benefit from the preceding day (which would be the initial premium added if the preceding day is the contract date), then we add additional premiums paid since the preceding day, and then reduce the enhanced death benefit pro rata for any contract value withdrawn.** That amount becomes the new enhanced death benefit. * For contracts in Pre-2000, total premium payments less any withdrawals. ** For contracts in Pre-2000, we subtract withdrawals made (including any market value adjustment applied to such withdrawal) since the preceding day. Under the MAX 7 ENHANCED DEATH BENEFIT, if you die before the annuity start date, your beneficiary will receive the greater of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit. Under this benefit option, the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit are calculated in the same manner as if each were the elected benefit. THE MAX 7 ENHANCED DEATH BENEFIT IS NOT AVAILABLE TO PRE-2000 CONTRACT OWNERS. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. ALL ENHANCED DEATH BENEFITS MAY NOT BE AVAILABLE IN EVERY STATE OR UNDER ALL CONTRACTS. MORTALITY AND EXPENSE RISK CHARGE The mortality and expense risk charge depends on the category of contract owners to which you belong and on the death benefit that you chose. The mortality and expense risk charge (depending on the death benefit you chose) and the asset-based administrative charge, on an annual basis, for Pre-2000, Yr-2000 and Yr-2001 contract owners are as follows: PRE-2000: --------------------------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH BENEFIT ANNUAL RATCHET 7% SOLUTION --------------------------------------------------------------------------------------------------- Mortality & Expense Risk Charge 1.25% 1.40% 1.55% Asset-Based Administrative Charge 0.15% 0.15% 0.15% Total 1.40% 1.55% 1.70% ---------------------------------------------------------------------------------------------------
The charge is deducted each business day at the rate of .003446% (Standard); .003863% (Annual Ratchet); or .004280% (7% Solution), respectively, for each day since the previous business day. ACC - 121360 C3 EXPENSE EXAMPLES FOR PRE-2000 The following two examples are designed to show you the expenses you would pay on a $1,000 investment that earns 5% annually. Each example assumes election of the 7% Solution Enhanced Death Benefit. The examples reflect the deduction of a mortality and expense risk charge, an asset-based administrative charge, and the annual contract administrative charge as an annual charge of 0.06% of assets (based on an average contract value of $75,000). Example 1 also assumes you elected the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. In addition, Example 1 assumes you elected an optional benefit rider with the highest cost, an assumed charge of 0.75% annually, where the rider base is equal to the initial premium and increases by 7% annually, except for the Liquid Asset and Limited Maturity Bond portfolios, where the assumed charge is 0.50% annually and assume the rider charge is assessed each quarter on a base equal to the hypothetical $1,000 premium increasing by 7% per year (or by 5%, the assumed net rate for the Liquid Asset and Limited Maturity Bond portfolios). The annual charge of 0.75% results from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 0.75% represents an annual charge over the 10-year period which is equivalent to an increasing charge of 0.125% per quarter over the same period. If the Standard Death Benefit or the Annual Ratchet Enhanced Death Benefit is elected instead of the 7% Solution Enhanced Death Benefit used in the examples, the actual expenses will be less than those represented in the examples. Example 1: If you elected both the earnings multiplier benefit rider and another optional benefit rider with the highest charge, you would pay the following expenses for each $1,000 invested, whether or not you surrender your Contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $31 $ 96 $163 $341 Limited Maturity Bond $31 $ 96 $163 $341 Core Bond $38 $116 $196 $404 Fully Managed $38 $115 $193 $399 Total Return $37 $113 $191 $394 Asset Allocation Growth $38 $116 $196 $404 Equity Income $38 $115 $193 $399 All Cap $38 $116 $196 $404 Growth and Income $39 $119 $201 $413 Real Estate $38 $115 $193 $399 Value Equity $38 $115 $193 $399 Investors $38 $116 $196 $404 International Equity $41 $124 $208 $426 Rising Dividends $38 $115 $193 $399 Managed Global $41 $124 $208 $426 Large Cap Value $38 $116 $196 $404 Hard Assets $38 $115 $193 $399 Diversified Mid-Cap $38 $116 $196 $404 Research $37 $113 $191 $394 Capital Growth $38 $116 $196 $404 Capital Appreciation $38 $115 $193 $399 Small Cap $38 $115 $193 $399 Mid-Cap Growth $37 $113 $191 $394 Strategic Equity $38 $115 $193 $399 Special Situations $39 $119 $201 $413 Growth $38 $116 $196 $404 Developing World $46 $138 $231 $466 Internet Tollkeeper $47 $141 $235 $474 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C4 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $36 $109 $184 $382 PIMCO StocksPLUS Growth and Income $35 $106 $179 $373 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $40 $123 $206 $423 THE PRUDENTIAL SERIES FUND Prudential Jennison $39 $117 $198 $407 SP Jennison International Growth $45 $134 $225 $457 PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap $39 $119 $200 $412 Pilgrim VP SmallCap Opportunities $39 $119 $200 $412 Pilgrim VP Growth Opportunities $39 $119 $200 $412 PROFUNDS ProFund VP Bull $46 $139 $232 $469 ProFund VP Small-Cap $46 $139 $232 $469 ProFund VP Europe 30 $46 $137 $230 $465 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $43 $129 $217 $442 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $38 $114 $193 $398 Pioneer Mid-Cap Value VCT $38 $117 $197 $405 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $39 $119 $200 $412 INVESCO VIF-- Health Sciences $39 $118 $200 $410 INVESCO VIF-- Utilities $42 $128 $215 $438 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C5 Example 2: If you did not elect the earnings multiplier benefit rider or any other optional benefit rider, you would pay the following expenses for each $1,000 invested, whether or not you surrender your contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $23 $ 72 $123 $264 Limited Maturity Bond $23 $ 72 $123 $264 Core Bond $28 $ 86 $146 $309 Fully Managed $27 $ 84 $143 $303 Total Return $27 $ 82 $140 $297 Asset Allocation Growth $28 $ 86 $146 $309 Equity Income $27 $ 84 $143 $303 All Cap $28 $ 86 $146 $309 Growth and Income $29 $ 89 $151 $319 Real Estate $27 $ 84 $143 $303 Value Equity $27 $ 84 $143 $303 Investors $28 $ 86 $146 $309 International Equity $30 $ 93 $158 $333 Rising Dividends $27 $ 84 $143 $303 Managed Global $30 $ 93 $158 $333 Large Cap Value $28 $ 86 $146 $309 Hard Assets $27 $ 84 $143 $303 Diversified Mid-Cap $28 $ 86 $146 $309 Research $27 $ 82 $140 $297 Capital Growth $28 $ 85 $145 $308 Capital Appreciation $27 $ 84 $143 $303 Small Cap $27 $ 84 $143 $303 Mid-Cap Growth $27 $ 82 $140 $297 Strategic Equity $27 $ 84 $143 $303 Special Situations $29 $ 89 $151 $319 Growth $28 $ 85 $145 $308 Developing World $35 $108 $182 $378 Internet Tollkeeper $36 $111 $187 $387 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $25 $ 78 $133 $284 PIMCO StocksPLUS Growth and Income $24 $ 75 $128 $274 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $30 $ 92 $157 $330 THE PRUDENTIAL SERIES FUND Prudential Jennison $28 $ 87 $147 $312 SP Jennison International Growth $34 $104 $176 $368 PILGRIM VARIABLE PRODUCTS TRUST Pilgrim VP MagnaCap $29 $ 88 $150 $318 Pilgrim VP SmallCap Opportunities $29 $ 88 $150 $318 Pilgrim VP Growth Opportunities $29 $ 88 $150 $318 PROFUNDS ProFund VP Bull $36 $109 $184 $382 ProFund VP Small-Cap $36 $109 $184 $382 ProFund VP Europe 30 $35 $107 $182 $377 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C6 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $32 $99 $168 $351 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $27 $84 $142 $302 Pioneer Mid-Cap Value VCT $28 $86 $146 $310 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $29 $88 $150 $318 INVESCO VIF-- Health Sciences $29 $88 $149 $316 INVESCO VIF-- Utilities $32 $97 $165 $347 --------------------------------------------------------------------------------------------------------------------
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT. YR-2000: ------------------------------------------------------------------------------------------------ STANDARD ENHANCED DEATH BENEFITS DEATH BENEFIT ANNUAL RATCHET 7% SOLUTION MAX 7 ------------------------------------------------------------------------------------------------ Mortality & Expense Risk Charge 1.30% 1.45% 1.65% 1.75% Asset-Based Administrative Charge 0.15% 0.15% 0.15% 0.15% Total 1.45% 1.60% 1.80% 1.90% ------------------------------------------------------------------------------------------------
The charge is deducted each business day at the rate of .003585% (Standard); .004002% (Annual Ratchet); .004558% (7% Solution); or .004837% (Max 7), respectively, for each day since the previous business day. EXPENSE EXAMPLES FOR YR-2000 The following two examples are designed to show you the expenses you would pay on a $1,000 investment that earns 5% annually. Each example assumes election of the Max 7 Enhanced Death Benefit. The examples reflect the deduction of a mortality and expense risk charge, an asset-based administrative charge, and the annual contract administrative charge as an annual charge of 0.06% of assets (based on an average contract value of $75,000). Example 1 also assumes you elected the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. In addition, Example 1 assumes you elected an optional benefit rider with the highest cost, an assumed charge of 0.75% annually, where the rider base is equal to the initial premium and increases by 7% annually, except for the Liquid Asset and Limited Maturity Bond portfolios, where the assumed charge is 0.50% annually and assume the rider charge is assessed each quarter on a base equal to the hypothetical $1,000 premium increasing by 7% per year (or by 5%, the assumed net rate for the Liquid Asset and Limited Maturity Bond portfolios). The annual charge of 0.75% results from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 0.75% represents an annual charge over the 10-year period which is equivalent to an increasing charge of 0.125% per quarter over the same period. If the Standard Death Benefit, the Annual Ratchet Enhanced Death Benefit, or the 7% Solution Enhanced Death Benefit is elected instead of the Max 7 Enhanced Death Benefit used in the examples, the actual expenses will be less than those represented in the examples. ACC - 121360 C7 If you elected both the earnings multiplier benefit rider and another optional benefit rider with the highest charge, you would pay the following expenses for each $1,000 invested, whether or not you surrender your Contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $33 $102 $172 $359 Limited Maturity Bond $33 $102 $172 $359 Core Bond $40 $122 $206 $421 Fully Managed $40 $120 $203 $416 Total Return $39 $119 $200 $411 Asset Allocation Growth $40 $122 $206 $421 Equity Income $40 $120 $203 $416 All Cap $40 $122 $206 $421 Growth and Income $41 $125 $210 $430 Real Estate $40 $120 $203 $416 Value Equity $40 $120 $203 $416 Investors $40 $122 $206 $421 International Equity $43 $129 $217 $442 Rising Dividends $40 $120 $203 $416 Managed Global $43 $129 $217 $442 Large Cap Value $40 $122 $206 $421 Hard Assets $40 $120 $203 $416 Diversified Mid-Cap $40 $122 $206 $421 Research $39 $119 $200 $411 Capital Growth $40 $122 $205 $421 Capital Appreciation $40 $120 $203 $416 Small Cap $40 $120 $203 $416 Mid-Cap Growth $39 $119 $200 $411 Strategic Equity $40 $120 $203 $416 Special Situations $41 $125 $210 $430 Growth $40 $122 $205 $421 Developing World $48 $143 $239 $482 Internet Tollkeeper $49 $146 $244 $489 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $38 $115 $193 $399 PIMCO StocksPLUS Growth and Income $37 $112 $189 $391 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $42 $128 $216 $440 THE PRUDENTIAL SERIES FUND Prudential Jennison $41 $123 $207 $424 SP Jennison International Growth $46 $140 $234 $472 PILGRIM VARIABLE PRODUCT TRUST Pilgrim VP MagnaCap $41 $125 $210 $429 Pilgrim VP SmallCap Opportunities $41 $125 $210 $429 Pilgrim VP Growth Opportunities $41 $125 $210 $429 PROFUNDS ProFund VP Bull $48 $144 $241 $485 ProFund VP Small-Cap $48 $144 $241 $485 ProFund VP Europe 30 $48 $143 $239 $481 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C8 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $45 $135 $226 $458 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $40 $120 $202 $416 Pioneer Mid-Cap Value VCT $40 $122 $206 $422 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $41 $125 $210 $429 INVESCO VIF-- Health Sciences $41 $124 $209 $427 INVESCO VIF-- Utilities $44 $133 $224 $454 --------------------------------------------------------------------------------------------------------------------
Example 2: If you did not elect the earnings multiplier benefit rider or any other optional benefit rider, you would pay the following expenses for each $1,000 invested, whether or not you surrender your contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $25 $ 78 $133 $284 Limited Maturity Bond $25 $ 78 $133 $284 Core Bond $30 $ 92 $156 $328 Fully Managed $29 $ 90 $153 $322 Total Return $29 $ 88 $150 $317 Asset Allocation Growth $30 $ 92 $156 $328 Equity Income $29 $ 90 $153 $322 All Cap $30 $ 92 $156 $328 Growth and Income $31 $ 95 $161 $337 Real Estate $29 $ 90 $153 $322 Value Equity $29 $ 90 $153 $322 Investors $30 $ 92 $156 $328 International Equity $32 $ 99 $168 $351 Rising Dividends $29 $ 90 $153 $322 Managed Global $32 $ 99 $168 $351 Large Cap Value $30 $ 92 $156 $328 Hard Assets $29 $ 90 $153 $322 Diversified Mid-Cap $30 $ 92 $156 $328 Research $29 $ 88 $150 $317 Capital Growth $30 $ 91 $155 $327 Capital Appreciation $29 $ 90 $153 $322 Small Cap $29 $ 90 $153 $322 Mid-Cap Growth $29 $ 88 $150 $317 Strategic Equity $29 $ 90 $153 $322 Special Situations $31 $ 95 $161 $337 Growth $30 $ 91 $155 $327 Developing World $37 $113 $192 $396 Internet Tollkeeper $38 $116 $196 $404 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $28 $ 84 $143 $303 PIMCO StocksPLUS Growth and Income $26 $ 81 $138 $293 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $32 $ 98 $166 $348 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C9 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE PRUDENTIAL SERIES FUND Prudential Jennison $30 $ 92 $157 $434 SP Jennison International Growth $36 $110 $186 $385 PILGRIM VARIABLE PRODUCT TRUST Pilgrim VP MagnaCap $31 $ 94 $160 $336 Pilgrim VP SmallCap Opportunities $31 $ 94 $160 $336 Pilgrim VP Growth Opportunities $31 $ 94 $160 $336 PROFUNDS ProFund VP Bull $38 $115 $193 $399 ProFund VP Small-Cap $38 $115 $193 $399 ProFund VP Europe 30 $37 $113 $193 $395 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $34 $105 $177 $369 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $29 $ 89 $152 $321 Pioneer Mid-Cap Value VCT $30 $ 92 $156 $329 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $31 $ 94 $160 $336 INVESCO VIF-- Health Sciences $31 $ 94 $159 $335 INVESCO VIF-- Utilities $34 $103 $175 $365 --------------------------------------------------------------------------------------------------------------------
C10 THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT. YR-2001: ---------------------------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH BENEFIT ANNUAL RATCHET 7% SOLUTION MAX 7 ---------------------------------------------------------------------------------------------------- Mortality & Expense Risk Charge 1.30% 1.55% 1.65% 1.75% Asset-Based Administrative Charge 0.15% 0.15% 0.15% 0.15% Total 1.45% 1.70% 1.80% 1.90% ----------------------------------------------------------------------------------------------------
The charge is deducted each business day at the rate of .003585% (Standard); .004280% (Annual Ratchet); .004558% (7% Solution); or .004837% (Max 7), respectively, for each day since the previous business day. EXPENSE EXAMPLES FOR YR-2001 The following two examples are designed to show you the expenses you would pay on a $1,000 investment that earns 5% annually. Each example assumes election of the Max 7 Enhanced Death Benefit. The examples reflect the deduction of a mortality and expense risk charge , an asset-based administrative charge, and an annual contract administrative charge as an annual charge of 0.06% of assets (based on an average contract value of $75,000). Example 1 also assumes you elected the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. In addition, Examples 1 and 2 assume you elected an optional benefit rider with the highest charge (0.75% annually where the rider base is equal to the initial premium and increases by 7% annually) and assume the rider charge is assessed each quarter on a base equal to the hypothetical $1,000 premium increasing at 7% per year. The annual charge of 0.75% results ACC - 121360 C10 from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 0.75% represents an annual charge over the 10-year period which is equivalent to an increasing charge of 0.125% per quarter over the same period. Each example also assumes that any applicable expense reimbursements of underlying protfolio expenses will continue for the periods shown. If the Standard Death Benefit, the Annual Ratchet Enhanced Death Benefit, or the 7% Solution Enhanced Death Benefit is elected instead of the Max 7 Enhanced Death Benefit used in the examples, the actual expenses will be less than those represented in the examples. Example 1: If you elected both the earnings multiplier benefit rider and another optional benefit rider with the highest charge, you would pay the following expenses for each $1,000 invested, whether or not you surrender your Contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $36 $109 $184 $382 Limited Maturity Bond $36 $109 $184 $382 Core Bond $40 $122 $206 $421 Fully Managed $40 $120 $203 $416 Total Return $39 $119 $200 $411 Asset Allocation Growth $40 $122 $206 $421 Equity Income $40 $120 $203 $416 All Cap $40 $122 $206 $421 Growth and Income $41 $125 $210 $430 Real Estate $40 $120 $203 $416 Value Equity $40 $120 $203 $416 Investors $40 $122 $206 $421 International Equity $43 $129 $217 $442 Rising Dividends $40 $120 $203 $416 Managed Global $43 $129 $217 $442 Large Cap Value $40 $122 $206 $421 Hard Assets $40 $120 $203 $416 Diversified Mid-Cap $40 $122 $206 $421 Research $39 $119 $200 $411 Capital Growth $40 $122 $205 $421 Capital Appreciation $40 $120 $203 $416 Small Cap $40 $120 $203 $416 Mid-Cap Growth $39 $119 $200 $411 Strategic Equity $40 $120 $203 $416 Special Situations $41 $125 $210 $430 Growth $40 $122 $205 $421 Developing World $48 $143 $239 $482 Internet Tollkeeper $49 $146 $244 $489 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $38 $115 $193 $399 PIMCO StocksPLUS Growth and Income $37 $112 $189 $391 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $42 $128 $216 $440 THE PRUDENTIAL SERIES FUND Prudential Jennison $41 $123 $207 $424 SP Jennison International Growth $46 $140 $234 $472 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C11 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- PILGRIM VARIABLE PRODUCT TRUST Pilgrim VP MagnaCap $41 $125 $210 $429 Pilgrim VP SmallCap Opportunities $41 $125 $210 $429 Pilgrim VP Growth Opportunities $41 $125 $210 $429 PROFUNDS ProFund VP Bull $48 $144 $241 $485 ProFund VP Small-Cap $48 $144 $241 $485 ProFund VP Europe 30 $48 $143 $239 $481 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $45 $135 $226 $458 PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $40 $120 $202 $416 Pioneer Mid-Cap Value VCT $40 $122 $206 $422 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $41 $125 $210 $429 INVESCO VIF-- Health Sciences $41 $124 $209 $427 INVESCO VIF-- Utilities $44 $133 $224 $454 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C12 Example 2: If you did not elect the earnings multiplier benefit rider or any other optional benefit rider, you would pay the following expenses for each $1,000 invested, whether or not you surrender your contract or annuitize at the end of the applicable time period: -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- THE GCG TRUST Liquid Asset $25 $ 78 $133 $284 Limited Maturity Bond $25 $ 78 $133 $284 Core Bond $30 $ 92 $156 $328 Fully Managed $29 $ 90 $153 $322 Total Return $29 $ 88 $150 $317 Asset Allocation Growth $30 $ 92 $156 $328 Equity Income $29 $ 90 $153 $322 All Cap $30 $ 92 $156 $328 Growth and Income $31 $ 95 $161 $337 Real Estate $29 $ 90 $153 $322 Value Equity $29 $ 90 $153 $322 Investors $30 $ 92 $156 $328 International Equity $32 $ 99 $168 $351 Rising Dividends $29 $ 90 $153 $322 Managed Global $32 $ 99 $168 $351 Large Cap Value $30 $ 92 $156 $328 Hard Assets $29 $ 90 $153 $322 Diversified Mid-Cap $30 $ 92 $156 $328 Research $29 $ 88 $150 $317 Capital Growth $30 $ 91 $155 $327 Capital Appreciation $29 $ 90 $153 $322 Small Cap $29 $ 90 $153 $322 Mid-Cap Growth $29 $ 88 $150 $317 Strategic Equity $29 $ 90 $153 $322 Special Situations $31 $ 95 $161 $337 Growth $30 $ 91 $155 $327 Developing World $37 $113 $192 $396 Internet Tollkeeper $38 $116 $196 $404 THE PIMCO VARIABLE INSURANCE TRUST PIMCO High Yield Bond $28 $ 84 $143 $303 PIMCO StocksPLUS Growth and Income $26 $ 81 $138 $293 PILGRIM VARIABLE INSURANCE TRUST Pilgrim VIT Worldwide Growth $32 $ 98 $166 $348 THE PRUDENTIAL SERIES FUND Prudential Jennison $30 $ 92 $157 $434 SP Jennison International Growth $36 $110 $186 $385 PILGRIM VARIABLE PRODUCT TRUST Pilgrim VP MagnaCap $31 $ 94 $160 $336 Pilgrim VP SmallCap Opportunities $31 $ 94 $160 $336 Pilgrim VP Growth Opportunities $31 $ 94 $160 $336 PROFUNDS ProFund VP Bull $38 $115 $193 $399 ProFund VP Small-Cap $38 $115 $193 $399 ProFund VP Europe 30 $37 $113 $193 $395 AIM VARIABLE INSURANCE FUNDS AIM V.I. Dent Demographic Trends $34 $105 $177 $369 --------------------------------------------------------------------------------------------------------------------
ACC - 121360 C13 -------------------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST Pioneer Fund VCT $29 $ 89 $152 $321 Pioneer Mid-Cap Value VCT $30 $ 92 $156 $329 INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO VIF-- Financial Services $31 $ 94 $160 $336 INVESCO VIF-- Health Sciences $31 $ 94 $159 $335 INVESCO VIF-- Utilities $34 $103 $175 $365 --------------------------------------------------------------------------------------------------------------------
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT. DEATH BENEFIT FOR EXCLUDED FUNDS FOR PRE-2000 AND YR-2000 We will be designating certain investment portfolios as "Excluded Funds." Excluded Funds will include certain investment portfolios that, due to their volatility, will be excluded from the death benefit guarantees that might otherwise be provided. We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact your death benefit. For the period of time, and to the extent, that you allocate premium or contract value to Excluded Funds, your death benefit attributable to that allocation will equal the contract value of that allocation. Any guarantee of death benefit in excess of contract value otherwise provided with regard to allocations to Non-Excluded Funds, does not apply to allocations to Excluded Funds. The death benefit provided under the Contract may be reduced to the extent that you allocate premium or contract value to Excluded Funds. Transfers from Excluded Funds to Non-Excluded funds will reduce all death benefit components for Excluded Funds on a pro rata basis. Except with respect to any maximum guaranteed death benefit, the resulting increase in the Non-Excluded Funds death benefit component will equal the lesser of the reduction in the death benefit for Excluded Funds and the contract value transferred. With respect to the maximum guaranteed death benefit, where applicable, the resulting increase in the Non-Excluded Funds maximum guaranteed death benefit will equal the reduction in the maximum guaranteed death benefit for Excluded Funds. Transfers from Non-Excluded Funds to Excluded Funds will reduce the Non-Excluded Funds death benefit components on a pro-rata basis. The resulting increase in the death benefit components of Excluded Funds will equal the reduction in the Non-Excluded Funds death benefit components. Adjustments for transfers involving both Excluded Funds and Special Funds will be calculated separately from adjustments for transfers involving Excluded Funds and Non-Special Funds, where applicable. ACC - 121360 C14 -------------------------------------------------------------------------------- APPENDIX D -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFITS FOR PRE-2000 AND YR-2000 CONTRACT OWNERS The following is a description of the optional rider benefits for Pre-2000 and Yr-2000 contract owners who elected an optional rider benefit. We may be designating certain investment portfolios as "Excluded Funds." We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact the benefit under any optional rider that you have elected. IF YOU NEVER INVEST IN EXCLUDED FUNDS, YOUR RIDER BENEFITS WILL BE UNAFFECTED. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A COMPLETE DESCRIPTION OF YOUR OPTIONAL RIDER BENEFITS. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. OPTIONAL RIDER BENEFITS For the period of time, and to the extent, that you allocate premium or contract value to Excluded Funds, any guarantee of an optional rider benefit does not apply to those amounts. The optional rider benefit provided under the Contract may be reduced to the extent that you allocate premium or contract value to Excluded Funds. For each rider benefit component contained in your rider, a corresponding component will be created for allocations to Excluded Funds. Transfers from Excluded Funds to Non-Excluded funds will reduce all rider benefit components for Excluded Funds on a pro rata basis. Except with respect to any maximum guaranteed rider benefit, the resulting increase in the Non-Excluded Funds rider benefit component will equal the lesser of the reduction in the rider benefit component for Excluded Funds and the contract value transferred. With respect to the maximum guaranteed benefit, where applicable, the resulting increase in the Non-Excluded Funds maximum guaranteed benefit will equal the reduction in the maximum guaranteed benefit for Excluded Funds. Transfers from Non-Excluded Funds to Excluded Funds will reduce the Non-Excluded Funds rider benefit component on a pro rata basis. The resulting increase in the rider benefit components of Excluded Funds will equal the reduction in the Non-Excluded Funds benefit. Adjustments for transfers involving both Excluded Funds and Special Funds will be calculated separately from adjustments for transfers involving Excluded Funds and Non-Special Funds, where applicable. OPTIONAL RIDER BENEFIT FOR NON-EXCLUDED FUNDS A. MINIMUM GUARANTEED ACCUMULATION BENEFIT ("MGAB"). We calculate your MGAB as follows: 1. WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. The MGAB Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. If you purchased the MGAB rider on the contract date, and (i) elected the ten-year option, your MGAB Base is equal to your initial premium and credit, plus any additional premium and credit added to your Contract during the 2-year periodafter your rider date, reduced pro rata for any withdrawals and ACC - 121360 D1 reduced for any transfers made within the last 3 years prior to the MGAB Benefit Date; or (ii) elected the twenty-year option, except for the Special Funds which require special calculations, your MGAB Base is equal to your initial premium and credit, plus any additional premium and credit added to your Contract during the 2-year period after your contract date, accumulated at the MGAB Base Rate, reduced pro rata for any withdrawals and reduced for any transfers made within the last 3 years prior to the MGAB Benefit Date. The MGAB Base Rate for allocations other than allocations to the Special Funds is the annual effective rate of 3.5265%. Accumulation of eligible additional premiums starts on the date the premium was received. ONLY PREMIUMS AND CREDITS ADDED TO YOUR CONTRACT DURING THE 2-YEAR PERIOD AFTER YOUR RIDER DATE ARE INCLUDED IN THE MGAB BASE. ANY ADDITIONAL PREMIUM PAYMENTS YOU ADDED TO YOUR CONTRACT AFTER THE SECOND RIDER ANNIVERSARY ARE NOT INCLUDED IN THE MGAB BASE. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary. If you purchased the MGAB rider after the contract date, your MGAB Base is equal to your contract value on the rider date, plus premiums and credits added during the 2-year period after your rider date. Withdrawals taken while the MGAB rider is in effect, as well as transfers made within 3 years prior to the MGAB Benefit Date, will reduce the value of your MGAB Base pro rata. This means that the MGAB Base (and the MGAB Charge Base) will be reduced by the same percent as the percent of contract value that was withdrawn (or transferred). We will look to your contract value immediately before the withdrawal or transfer when we determine this percent. For any Special Fund under the twenty-year option, if the actual interest credited to and/or the investment earnings of the contract value allocated to the Special Fund over the calculation period is less than the amount calculated under the formula above, that lesser amount becomes the increase in your MGAB Base for the Special Fund for that period. THE MGAB BASE RATE FOR EACH SPECIAL FUND MAY BE POSITIVE OR NEGATIVE. Thus, investing in the Special Funds may limit the MGAB benefit. If you add the 20 year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special Funds, may prevent the MGAB Base from doubling over the waiting period. 2. WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB BENEFIT DATE FROM YOUR MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 3. ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it on the MGAB Benefit Date to the subaccounts in which you are invested pro rata based on the proportion of your contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Benefit Date, we will allocate the MGAB to the Liquid Asset subaccount on your behalf. After the crediting of the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. B. MINIMUM GUARANTEED INCOME BENEFIT ("MGIB"). On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BASE. The MGIB Base is only a calculation used to determine the MGIB. The MGIB Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the ACC - 121360 D2 amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. (i) If you purchased the MGIB rider on the contract date, except for the Special Funds which require special calculations, the MGIB Base is equal to your initial premium and credit, plus any additional premiums and credits added to your Contract during the 5-year period after your contract date, accumulated at the MGIB Base Rate (7% for all portfolios except the Special Funds), reduced pro rata by all withdrawals taken while the MGIB rider is in effect. Premiums and credits paid less than 5 years prior to the earliest MGIB Benefit Date are excluded from the MGIB Base. (ii) If you purchased the MGIB rider after the contract date, except for the Special Funds which require special calculations, your MGIB Base is equal to your contract value on the rider date plus any eligible premiums and credits added to your Contract during the 5-year period after your rider date, accumulated at the MGIB Base Rate (7% for all portfolios except the Special Funds), reduced pro rata by all withdrawals taken while the MGIB rider is in effect. Eligible additional premium payments and credits are those added more than 5 years before the earliest MGIB Benefit Date and are included in the MGIB Base. Premiums and credits paid after the 5th rider anniversary are excluded from the MGIB Base. (iii)For any Special Fund, if the actual earnings and/or the interest credited to the contract value allocated to the Special Fund over the calculation period is less than the amount determined under the formula above, that lesser amount becomes the change in your MGIB Base for the Special Fund. THE MGIB BASE RATE FOR EACH SPECIAL FUND MAY BE POSITIVE OR NEGATIVE. Thus, investing in the Special Funds may limit the MGIB benefit. Of course, regardless of when purchased or how you invest, withdrawals will reduce the value of your MGIB Base pro rata to the percentage of the contract value withdrawn. We offer a 7% MGIB Base Rate, except for the Special Funds. The Company may at its discretion discontinue offering this rate. The MGIB Base Rate is an annual effective rate. The MGIB Base is subject to the MGIB Base Maximum. The MGIB Base Maximum is the amount calculated above until the earlier of: (i) the date the oldest contract owner reaches age 80, or (ii) the date the MGIB Base reaches two times the MGIB Eligible Premiums and credits, adjusted for any withdrawals. MGIB Eligible Premiums is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date. 2. Then we determine the MGIB annuity income by multiplying your MGIB Base (adjusted for any Market Value Adjustment, surrender charge and premium taxes) by the income factor, and then divide by $1,000. Two MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10-30 Year Certain; (ii) Income for a 20-30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the MGIB Base using the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract guarantee for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. ACC - 121360 D3 C. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB) RIDER. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments under the MGWB rider. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount adjusted for any withdrawals. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in both the MGWB Withdrawal Account and the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB Withdrawal Account is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." However, making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider will remain in force and you may continue to make withdrawals each year so long as: (i) your contract value is greater than zero; (ii) your MGWB Withdrawal Account is greater than zero; (iii)your latest allowable annuity start date has not been reached; (iv) you have not elected to annuitize your Contract; and (v) you have not died (unless your spouse has elected to continue the contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. WITHDRAWAL ADJUSTMENTS. We will reduce the MGWB Withdrawal Account by the dollar amount of any withdrawal taken up to 7% per year of the Eligible Payment Amount. Any withdrawal taken in excess of 7% per year of the Eligible Payment Amount will reduce both the MGWB Withdrawal Account and the Eligible Payment Amount pro rata in proportion to the percentage of contract value withdrawn. If a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero your Contract is given what we refer to as Automatic Periodic Benefit Status, if: (i) your MGWB Withdrawal Account is greater than zero; (ii) your latest allowable annuity start date has not been reached; (iii)you have not elected to annuitize your Contract; and (iv) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, we will pay you the annual MGWB periodic payments, beginning on the next contract anniversary, equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount until the earliest of (i) your contract's latest annuity start date, (ii) the death of the owner; or (iii) until your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status, we will not accept any additional premium payments in your Contract and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of ACC - 121360 D4 (i) payment of all MGWB periodic payments (ii) payment of the Commuted Value (defined below) or (iii) the owner's death has occurred. On the contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury Strips as quoted by a national quoting service for period(s) applicable to the remaining payments. Once the last MGWB periodic payment is made or we pay you the Commuted Value, your Contract and the MGWB rider terminate. ACC - 121360 D5 This page intentionally left blank. This page intentionally left blank. | | | | | | | | | | | | | | | | | ING VARIABLE ANNUITIES | GOLDEN AMERICAN LIFE INSURANCE COMPANY | | Golden American Life Insurance Company is a stock company domiciled in Delaware| -------------------------------------------------------------------------------- ACC - 121360 02/12/2002| PART B STATEMENT OF ADDITIONAL INFORMATION GOLDENSELECT ACCESS Statement of Additional Information GOLDENSELECT ACCESS DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY CONTRACT ISSUED BY SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE COMPANY This Statement of Additional Information is not a prospectus. The information contained herein should be read in conjunction with the Prospectus for the Golden American Life Insurance Company Deferred Variable Annuity Contract, which is referred to herein. The Prospectus sets forth information that a prospective investor ought to know before investing. For a copy of the Prospectus, send a written request to Golden American Life Insurance Company, Customer Service Center, P.O. Box 2700, West Chester, Pennsylvania 19380-1478 or telephone 1-800-366-0066. DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION: February 12, 2002 TABLE OF CONTENTS ITEM PAGE Introduction 1 Description of Golden American Life Insurance Company 1 Safekeeping of Assets 1 The Administrator 1 Independent Auditors 1 Distribution of Contracts 1 Performance Information 2 IRA Partial Withdrawal Option 9 Other Information 9 Unaudited Financial Statements of Golden American Life Insurance Company 10 Financial Statements of Golden American Life Insurance Company 23 Unaudited Financial Statements of Separate Account B 50 Financial Statements of Separate Account B 276 i INTRODUCTION This Statement of Additional Information provides background information regarding Separate Account B. DESCRIPTION OF GOLDEN AMERICAN LIFE INSURANCE COMPANY Golden American Life Insurance Company ("Golden American") is a stock life insurance company organized under the laws of the State of Delaware. On August 13, 1996, Equitable of Iowa Companies, Inc. (formerly Equitable of Iowa Companies) ("Equitable of Iowa") acquired all of the interest in Golden American and Directed Services, Inc. Effective December 31, 2001, Golden American became a wholly owned subsidiary of Equitable Life Insurance Company of Iowa, another wholly owned subsidiary of Equitable of Iowa. On October 24, 1997, Equitable of Iowa and ING Groep, N.V. ("ING") completed a merger agreement, and Equitable of Iowa became a wholly owned subsidiary of ING. ING, headquartered in The Netherlands, is a global financial services holding company with approximately $605 billion in assets as of December 31, 2000. As of December 31, 2000, Golden American had approximately $617.1 million in stockholder's equity and approximately $11.9 billion in total assets, including approximately $9.8 billion of separate account assets. As of September 30, 2001, Golden American had approximately $760.694 million in stockholder's equity and approximately $12.03 billion in total assets, including approximately $9.2 billion of separate account assets. Golden American is authorized to do business in all jurisdictions except New York. Golden American offers variable insurance products. Golden American formed a subsidiary, First Golden American Life Insurance Company of New York ("First Golden"), who is licensed to do variable annuity business in the states of New York and Delaware. It is anticipated that on April 1, 2002, or shortly thereafter, First Golden will be merged into ReliaStar Life Insurance Company of New York, an affiliate. SAFEKEEPING OF ASSETS Golden American acts as its own custodian for Separate Account B. THE ADMINISTRATOR Effective January 1, 1997, Equitable Life Insurance Company of Iowa ("Equitable Life") and Golden American became parties to a service agreement pursuant to which Equitable Life agreed to provide certain accounting, actuarial, tax, underwriting, sales, management and other services to Golden American. Expenses incurred by Equitable Life in relation to this service agreement were reimbursed by Golden American on an allocated cost basis. Equitable Life billed Golden American $232,000 for the nine months ended September 30, 2001. Equitable Life billed Golden American $1,270,000 and $1,251,000 pursuant to the service agreement in 2000 and 1999, respectively. INDEPENDENT AUDITORS Ernst & Young LLP, independent auditors, performs annual audits of Golden American and Separate Account B. DISTRIBUTION OF CONTRACTS The offering of contracts under the prospectus associated with this Statement of Additional Information is continuous. Directed Services, Inc., an affiliate of Golden American, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) of the variable insurance products (the "variable insurance products") issued by Golden American. The variable insurance products were sold primarily through two broker/dealer institutions during the year ended December 31, 1998 and December 31, 1999. For the year ended December 31, 2000 only a single broker/dealer institution sold more than 10% of Golden American's variable insurance products. For the nine months ended September 30, 2001 and for the years ended 2000, 1999, 1998 commissions paid by Golden American, including amounts paid by its subsidiary, First Golden American Life Insurance Company of 1 New York, to Directed Services, Inc. aggregated $159,949,000, $208,883,000, $181,536,000 and $117,470,000, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the contracts. Directed Services, Inc. is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478. Under a management services agreement, last amended in 1995, Golden American provides to Directed Services, Inc. certain of its personnel to perform management, administrative and clerical services and the use of certain facilities. Golden American charges Directed Services, Inc. for such expenses and all other general and administrative costs, first on the basis of direct charges when identifiable, and the remainder allocated based on the estimated amount of time spent by Golden American's employees on behalf of Directed Services, Inc. In the opinion of management, this method of cost allocation is reasonable. This fee, calculated as a percentage of average assets in the variable separate accounts, was $17,282,000, $21,296,000, $10,136,000 and $4,771,000 for the nine months ended September 30, 2001 and the years ended 2000, 1999, 1998, respectively. PERFORMANCE INFORMATION Performance information for the subaccounts of Separate Account B, including yields, standard annual returns and other non-standard measures of performance of all subaccounts, may appear in reports or promotional literature to current or prospective owners. Such non-standard measures of performance will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Negative values are denoted by minus signs ("-"). Performance information for measures other than total return do not reflect any applicable premium tax that can range from 0% to 3.5%. As described in the prospectus, four death benefit options are available. The following performance values reflect the election at issue of the Max 7 Enhanced Death Benefit, thus providing values reflecting the highest aggregate contract charges. In addition, the performance values reflect the selection of the most costly optional benefit rider. If one of the other death benefit options had been elected, or if another optional benefit rider or no rider had been elected, the historical performance values would be higher than those represented in the examples. SEC STANDARD MONEY MARKET SUBACCOUNT YIELDS Current yield for the Liquid Asset Subaccount will be based on the change in the value of a hypothetical investment (exclusive of capital changes or income other than investment income) over a particular 7-day period, less a pro rata share of subaccount expenses which includes deductions for the mortality and expense risk charge and the administrative charge accrued over that period (the "base period"), and stated as a percentage of the investment at the start of the base period (the "base period return"). The base period return is then annualized by multiplying by 365/7, with the resulting yield figure carried to at least the nearest hundredth of one percent. Calculation of "effective yield" begins with the same "base period return" used in the calculation of yield, which is then annualized to reflect weekly compounding pursuant to the following formula: Effective Yield = [(Base Period Return) +1)^365/7] - 1 The current yield and effective yield of the Liquid Asset Subaccount for the 7-day period December 25, 2000 to December 31, 2000 were 3.92% and 3.99% respectively. SEC STANDARD 30-DAY YIELD FOR NON-MONEY MARKET SUBACCOUNTS Quotations of yield for the remaining subaccounts will be based on all investment income per subaccount earned during a particular 30-day period, less expenses accrued during the period ("net investment income"), and will be computed by dividing net investment income by the value of an accumulation unit on the last day of the period, according to the following formula: Yield = 2 x [((a - b)/(c x d) + 1)^6 - 1] 2 Where: [a] equals the net investment income earned during the period by the investment portfolio attributable to shares owned by a subaccount [b] equals the expenses accrued for the period (net of reimbursements) [c] equals the average daily number of units outstanding during the period based on the accumulation unit value [d] equals the value (maximum offering price) per accumulation unit value on the last day of the period Yield on subaccounts of Separate Account B is earned from the increase in net asset value of shares of the investmenr portfolio in which the subaccount invests and from dividends declared and paid by the investment portfolio, which are automatically reinvested in shares of the investment portfolio. SEC STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS Quotations of average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)^(n)=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) All total return figures reflect the deduction of the maximum sales load, the administrative charges, the mortality and expense risk charges and maximum optional benefit rider charge. The Securities and Exchange Commission (the "SEC") requires that an assumption be made that the contract owner surrenders the entire contract at the end of the one, five and 10 year periods (or, if less, up to the life of the security) for which performance is required to be calculated. This assumption may not be consistent with the typical contract owner's intentions in purchasing a contract and may adversely affect returns. Quotations of total return may simultaneously be shown for other periods, as well as quotations of total return that do not take into account certain contractual charges such as sales load. Except for the International Equity Portfolio, AIM V.I. Dent Demographic Trends Fund, Pioneer Fund VCT Portfolio, Pioneer Mid-Cap Value VCT Portfolio, INVESCO VIF-Financial Services Fund, INVESCO VIF-Health Sciences Fund, INVESCO VIF-Utilities Fundsubaccounts which had not commenced operations as of September 28, 2001, Average Annual Total Return for the Subaccounts presented on a standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10% administrative charges of 0.15%, contract administration charge annualized at 0.05%, living benefit rider charge annualized at 0.75% for all portfolios, the earnings multiplier benefit rider charge annualized at 0.30%, for the nine months ended September 28, 2001 were as follows: 3
Average Annual Total Return for Periods Ending 09/28/01 - Standardized with Rider Charges ----------------------------------------------------------------------------------------- FROM INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE THE GCG TRUST Liquid Asset 1.65 1.86 1.32 1.91 01/25/1989 Limited Maturity Bond 8.07 3.32 2.78 3.43 01/25/1989 Core Bond 4.12 -1.37 n/a 0.75 10/07/1994 Fully Managed 10.14 8.54 7.02 6.21 01/25/1989 Total Return -2.78 6.97 n/a 8.24 10/07/1994 Asset Allocation Growth n/a n/a n/a -20.28 10/02/2000 Equity Income -0.98 3.78 4.12 4.65 01/25/1989 All Cap -11.30 n/a n/a 1.19 02/01/2000 Growth and Income n/a n/a n/a -18.43 10/02/2000 Real Estate 5.37 7.34 9.35 6.37 01/25/1989 Value Equity -14.92 2.21 n/a 5.92 01/01/1995 Investors -15.00 n/a n/a -3.80 02/01/2000 Rising Dividends -24.54 3.96 n/a 7.04 10/04/1993 Managed Global -30.72 6.97 n/a 3.10 10/21/1992 Large Cap Value -20.70 n/a n/a -10.31 02/01/2000 Hard Assets -19.61 -7.55 0.62 0.42 01/25/1989 Diversified Mid-Cap n/a n/a n/a -24.35 10/02/2000 Research -40.71 2.07 n/a 7.33 10/07/1994 Capital Growth -41.01 -1.30 n/a 1.52 04/01/1996 Cap. Appreciation -30.12 1.79 n/a 5.69 05/04/1992 Small Cap -38.99 1.67 n/a 4.55 01/02/1996 Mid-Cap Growth -47.22 8.64 n/a 12.69 10/07/1994 Strategic Equity -52.62 -0.70 n/a 0.96 10/02/1995 Special Situations n/a n/a n/a -28.45 10/02/2000 Growth -51.03 3.38 n/a 4.38 04/01/1996 Developing World -37.58 n/a n/a -16.42 02/18/1998 Internet Tollkeeper n/a n/a n/a -38.69 05/01/2001 The Pimco Trust High Yield Bond * -7.09 n/a n/a -2.74 05/01/1998 StocksPLUS Growth and Income * -28.54 n/a n/a -3.75 05/01/1998 Pilgrim Variable Insurance Trust Pilgrim VIT Worldwide Growth -32.88 n/a n/a -28.85 05/01/2000 The Prudential Series Fund, Inc. Prudential Jennison -44.23 n/a n/a -36.62 05/01/2000 SP Jennison International Growth n/a n/a n/a -50.80 10/02/2000 Pilgrim Variable Products Trust Pilgrim VP MagnaCap n/a n/a n/a -14.64 05/01/2001 Pilgrim VP SmallCap Opportunities n/a n/a n/a -29.29 05/01/2001 Pilgrim VP Growth Opportunities n/a n/a n/a -33.05 05/01/2001 ProFunds ProFund VP Bull n/a n/a n/a -19.33 05/01/2001 ProFund VP Small-Cap n/a n/a n/a -20.74 05/01/2001 ProFund VP Europe 30 n/a n/a n/a -22.56 05/01/2001
* Total return calculation reflects certain waivers of portfolio fees and expenses. The Average Annual Total Return for the same subaccounts presented on a standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, contract administration charge annualized at 0.05%, but without the rider charges, for the nine months ended September 28, 2001 were as follows, respectively: 4
Average Annual Total Return for Periods Ending 09/28/01 - Standardized without Rider Charges --------------------------------------------------------------------------------------------- FROM INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE THE GCG TRUST Liquid Asset 2.46 2.68 2.13 2.73 01/25/1989 Limited Maturity Bond 8.93 4.15 3.60 4.27 01/25/1989 Core Bond 4.97 -0.46 n/a 1.65 10/07/1994 Fully Managed 10.99 9.38 7.90 7.14 01/25/1989 Total Return -1.99 7.78 n/a 9.04 10/07/1994 Asset Allocation Growth n/a n/a n/a -19.56 10/02/2000 Equity Income -0.18 4.61 5.01 5.55 01/25/1989 All Cap -10.55 n/a n/a 2.02 02/01/2000 Growth and Income n/a n/a n/a -17.71 10/02/2000 Real Estate 6.22 8.17 10.14 7.30 01/25/1989 Value Equity -14.20 3.01 n/a 6.68 01/01/1995 Investors -14.27 n/a n/a -2.98 02/01/2000 Rising Dividends -23.85 4.72 n/a 7.81 10/04/1993 Managed Global -30.07 7.73 n/a 4.04 10/21/1992 Large Cap Value -20.00 n/a n/a -9.51 02/01/2000 Hard Assets -18.90 -6.64 1.49 1.38 01/25/1989 Diversified Mid-Cap n/a n/a n/a -23.67 10/02/2000 Research -40.10 2.82 n/a 8.05 10/07/1994 Capital Growth -40.40 -0.55 n/a 2.24 04/01/1996 Cap. Appreciation -29.45 2.55 n/a 6.48 05/04/1992 Small Cap -38.36 2.46 n/a 5.32 01/02/1996 Mid-Cap Growth -46.67 9.39 n/a 13.40 10/07/1994 Strategic Equity -52.08 0.05 n/a 1.72 10/02/1995 Special Situations n/a n/a n/a -27.77 10/02/2000 Growth -50.46 4.10 n/a 5.10 04/01/1996 Developing World -36.96 n/a n/a -15.52 02/18/1998 Internet Tollkeeper n/a n/a n/a -38.39 05/01/2001 The Pimco Trust High Yield Bond * -6.30 n/a n/a -1.86 05/01/1998 StocksPLUS Growth and Income * -27.86 n/a n/a -2.94 05/01/1998 Pilgrim Variable Insurance Trust Pilgrim VIT Worldwide Growth -32.23 n/a n/a -28.12 05/01/2000 The Prudential Series Fund, Inc. Prudential Jennison -43.63 n/a n/a -35.91 05/01/2000 SP Jennison International Growth n/a n/a n/a -50.24 10/02/2000 Pilgrim Variable Products Trust Pilgrim VP MagnaCap n/a n/a n/a -14.27 05/01/2001 Pilgrim VP SmallCap Opportunities n/a n/a n/a -28.96 05/01/2001 Pilgrim VP Growth Opportunities n/a n/a n/a -32.73 05/01/2001 ProFunds ProFund VP Bull n/a n/a n/a -18.97 05/01/2001 ProFund VP Small-Cap n/a n/a n/a -20.39 05/01/2001 ProFund VP Europe 30 n/a n/a n/a -22.20 05/01/2001
* Total return calculation reflects certain waivers of portfolio fees and expenses. NON-STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS Quotations of non-standard average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)^(n)]=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) assuming certain loading and charges are zero. 5 All total return figures reflect the deduction of the mortality and expense risk charge for the Max 7 Enhanced Death Benefit, the administrative charges and the optional benefit rider charge but not the deduction of the annual contract fee. Except for the International Equity Portfolio, AIM V.I. Dent Demographic Trends Fund, Pioneer Fund VCT Portfolio, Pioneer Mid-Cap Value VCT Portfolio, INVESCO VIF-Financial Services Fund, INVESCO VIF-Health Sciences Fund, INVESCO VIF-Utilities Fund subaccounts which had not commenced operations as of September 28, 2001, Average Annual Total Return for the Subaccounts presented on a non-standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, living benefit rider charge annualized at 0.75%, and the earnings multiplier benefit rider charge annualized at 0.30%, for the nine months ended September 28, 2001 were as follows:
Average Annual Total Return for Periods Ending 09/28/01 - Non-Standardized with Rider Charges --------------------------------------------------------------------------------------------- FROM INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE THE GCG TRUST Liquid Asset 1.70 1.91 1.37 1.95 01/25/1989 Limited Maturity Bond 8.12 3.37 2.82 3.47 01/25/1989 Core Bond 4.17 -1.31 n/a 0.79 10/07/1994 Fully Managed 10.19 8.58 7.06 6.25 01/25/1989 Total Return -2.72 7.01 n/a 8.27 10/07/1994 Asset Allocation Growth n/a n/a n/a -20.28 10/02/2000 Equity Income -0.92 3.83 4.17 4.69 01/25/1989 All Cap -11.25 n/a n/a 1.22 02/01/2000 Growth and Income n/a n/a n/a -18.43 10/02/2000 Real Estate 5.42 7.38 9.39 6.41 01/25/1989 Value Equity -14.87 2.25 n/a 5.95 01/01/1995 Investors -14.95 n/a n/a -3.78 02/01/2000 Rising Dividends -24.49 4.00 n/a 7.07 10/04/1993 Managed Global -30.67 7.01 n/a 3.15 10/21/1992 Large Cap Value -20.65 n/a n/a -10.28 02/01/2000 Hard Assets -19.56 -7.49 0.66 0.47 01/25/1989 Diversified Mid-Cap n/a n/a n/a -24.35 10/02/2000 Research -40.66 2.11 n/a 7.36 10/07/1994 Capital Growth -40.95 -1.26 n/a 1.55 04/01/1996 Cap. Appreciation -30.07 1.84 n/a 5.72 05/04/1992 Small Cap -38.94 1.72 n/a 4.59 01/02/1996 Mid-Cap Growth -47.17 8.68 n/a 12.72 10/07/1994 Strategic Equity -52.57 -0.65 n/a 0.99 10/02/1995 Special Situations n/a n/a n/a -28.45 10/02/2000 Growth -50.98 3.42 n/a 4.41 04/01/1996 Developing World -37.53 n/a n/a -16.38 02/18/1998 Internet Tollkeeper n/a n/a n/a -38.69 05/01/2001 The Pimco Trust High Yield Bond * -7.04 n/a n/a -2.70 05/01/1998 StocksPLUS Growth and Income * -28.48 n/a n/a -3.71 05/01/1998 Pilgrim Variable Insurance Trust Pilgrim VIT Worldwide Growth -32.82 n/a n/a -28.82 05/01/2000 The Prudential Series Fund, Inc. Prudential Jennison -44.18 n/a n/a -36.58 05/01/2000 SP Jennison International Growth n/a n/a n/a -50.80 10/02/2000 Pilgrim Variable Products Trust Pilgrim VP MagnaCap n/a n/a n/a -14.64 05/01/2001 Pilgrim VP SmallCap Opportunities n/a n/a n/a -29.29 05/01/2001 Pilgrim VP Growth Opportunities n/a n/a n/a -33.05 05/01/2001 ProFunds ProFund VP Bull n/a n/a n/a -19.33 05/01/2001 ProFund VP Small-Cap n/a n/a n/a -20.74 05/01/2001 ProFund VP Europe 30 n/a n/a n/a -22.56 05/01/2001
* Total return calculation reflects certain waivers of portfolio fees and expenses. 6 The Average Annual Total Return for the same subaccounts presented on a non-standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, but without the rider charges, for the nine months ended September 28, 2001 were as follows:
Average Annual Total Return for Periods Ending 09/28/01 - Non-Standardized without Rider Charges ------------------------------------------------------------------------------------------------ FROM INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE THE GCG TRUST Liquid Asset 2.52 2.73 2.18 2.78 01/25/1989 Limited Maturity Bond 8.99 4.20 3.65 4.31 01/25/1989 Core Bond 5.02 -0.40 n/a 1.69 10/07/1994 Fully Managed 11.05 9.43 7.94 7.17 01/25/1989 Total Return -1.93 7.83 n/a 9.07 10/07/1994 Asset Allocation Growth n/a n/a n/a -19.56 10/02/2000 Equity Income -0.13 4.66 5.05 5.58 01/25/1989 All Cap -10.50 n/a n/a 2.05 02/01/2000 Growth and Income n/a n/a n/a -17.71 10/02/2000 Real Estate 6.27 8.22 10.17 7.34 01/25/1989 Value Equity -14.15 3.05 n/a 6.71 01/01/1995 Investors -14.22 n/a n/a -2.96 02/01/2000 Rising Dividends -23.80 4.76 n/a 7.84 10/04/1993 Managed Global -30.01 7.77 n/a 4.08 10/21/1992 Large Cap Value -19.95 n/a n/a -9.49 02/01/2000 Hard Assets -18.85 -6.58 1.53 1.42 01/25/1989 Diversified Mid-Cap n/a n/a n/a -23.67 10/02/2000 Research -40.04 2.86 n/a 8.08 10/07/1994 Capital Growth -40.35 -0.51 n/a 2.27 04/01/1996 Cap. Appreciation -29.40 2.59 n/a 6.51 05/04/1992 Small Cap -38.31 2.50 n/a 5.35 01/02/1996 Mid-Cap Growth -46.61 9.43 n/a 13.43 10/07/1994 Strategic Equity -52.02 0.09 n/a 1.75 10/02/1995 Special Situations n/a n/a n/a -27.77 10/02/2000 Growth -50.41 4.14 n/a 5.14 04/01/1996 Developing World -36.91 n/a n/a -15.49 02/18/1998 Internet Tollkeeper n/a n/a n/a -38.39 05/01/2001 The Pimco Trust High Yield Bond * -6.25 n/a n/a -1.81 05/01/1998 StocksPLUS Growth and Income * -27.80 n/a n/a -2.90 05/01/1998 Pilgrim Variable Insurance Trust Pilgrim VIT Worldwide Growth -32.18 n/a n/a -28.09 05/01/2000 The Prudential Series Fund, Inc. Prudential Jennison -43.58 n/a n/a -35.88 05/01/2000 SP Jennison International Growth n/a n/a n/a -50.24 10/02/2000 Pilgrim Variable Products Trust Pilgrim VP MagnaCap n/a n/a n/a -14.27 05/01/2001 Pilgrim VP SmallCap Opportunities n/a n/a n/a -28.96 05/01/2001 Pilgrim VP Growth Opportunities n/a n/a n/a -32.73 05/01/2001 ProFunds ProFund VP Bull n/a n/a n/a -18.97 05/01/2001 ProFund VP Small-Cap n/a n/a n/a -20.39 05/01/2001 ProFund VP Europe 30 n/a n/a n/a -22.20 05/01/2001
* Total return calculation reflects certain waivers of portfolio fees and expenses. Performance information for a subaccount may be compared, in reports and promotional literature, to: (i) the Standard & Poor's 500 Stock Index ("S&P 500"), Dow Jones Industrial Average ("DJIA"), Donoghue Money Market Institutional Averages, or other indices that measure performance of a pertinent group of securities so that investors may compare a subaccount's results with those of a group of securities widely regarded by investors as representative of the securities markets in general; (ii) other groups of 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 7 tracked by other services, companies, publications, or persons who rank such investment companies on overall performance or other criteria; and (iii) the Consumer Price Index (measure for inflation) to assess the real rate of return from an investment in the contract. Unmanaged indices may assume the reinvestment of dividends but generally do not reflect deductions for administrative and management costs and expenses. Performance information for any subaccount reflects only the performance of a hypothetical contract under which contract value is allocated to a subaccount during a particular time period on which the calculations are based. Performance information should be considered in light of the investment objectives and policies, characteristics and quality of the investment portfolio of the Trust in which the Separate Account B subaccounts invest, and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future. Reports and promotional literature may also contain other information including the ranking of any subaccount derived from rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by other rating services, companies, publications, or other persons who rank separate accounts or other investment products on overall performance or other criteria. PUBLISHED RATINGS From time to time, the rating of Golden American as an insurance company by A.M. Best may be referred to in advertisements or in reports to contract owners. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best's Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. Best's ratings range from A+ + to F. An A++ and A+ ratings mean, in the opinion of A.M. Best, that the insurer has demonstrated the strongest ability to meet its respective policyholder and other contractual obligations. ACCUMULATION UNIT VALUE The calculation of the Accumulation Unit Value ("AUV") is discussed in the prospectus for the Contracts under Performance Information. Note that in your Contract, accumulation unit value is referred to as the Index of Investment Experience. The following illustrations show a calculation of a new AUV and the purchase of Units (using hypothetical examples). Note that the examples below are calculated for a Contract issued with the Max 7 Enhanced Death Benefit Option, the death benefit option with the highest mortality and expense risk charge. The mortality and expense risk charge associated with the 7% Solution Enhanced Death Benefit, the Annual Ratchet Enhanced Death Benefit Option and the Standard Death Benefit are lower than that used in the examples and would result in higher AUV's or contract values. ILLUSTRATION OF CALCULATION OF AUV EXAMPLE 1. 1. AUV, beginning of period $10.00000000 2. Value of securities, beginning of period $10.00000000 3. Change in value of securities 0.10000000 4. Gross investment return (3) divided by (2) 0.01000000 5. Less daily mortality and expense charge 0.00005815 6. Less daily asset based administrative charge 0.00000411 7. Net investment return (4) minus (5) minus (6) 0.00993774 8. Net investment factor (1.000000) plus (7) 1.00993774 9. AUV, end of period (1) multiplied by (8) $ 10.09937740 8 ILLUSTRATION OF PURCHASE OF UNITS (ASSUMING NO STATE PREMIUM TAX) EXAMPLE 2. 1. Initial premium payment $1,000.00 2. AUV on effective date of purchase (see Example 1) $10.00000000 3. Number of units purchased (1) divided by (2) 100.00000000 4. AUV for valuation date following purchase (see Example 1) $10.09937740 5. Contract Value in account for valuation date following purchase (3) multiplied by (4) $1,009.94 IRA PARTIAL WITHDRAWAL OPTION If the contract owner has an IRA contract and will attain age 70 1/2 in the current calendar year, distributions will be made in accordance with the requirements of Federal tax law. This option is available to assure that the required minimum distributions from qualified plans under the Internal Revenue Code (the "Code") are made. Under the Code, distributions must begin no later than April 1st of the calendar year following the calendar year in which the contract owner attains age 70 1/2. If the required minimum distribution is notwithdrawn, there may be a penalty tax in an amount equal to 50% of the difference between the amount required to be withdrawn and the amount actually withdrawn. Even if the IRA Partial Withdrawal Option is not elected, distributions must nonetheless be made in accordance with the requirements of Federal tax law. Golden American notifies the contract owner of these regulations with a letter mailed on January 1st of the calendar year in which the contract owner reaches age 70 1/2 which explains the IRA Partial Withdrawal Option and supplies an election form. If electing this option, the owner specifies whether the withdrawal amount will be based on a life expectancy calculated on a single life basis (contract owner's life only) or, if the contract owner is married, on a joint life basis (contract owner's and spouse's lives combined). The contract owner selects the payment mode on a monthly, quarterly or annual basis. If the payment mode selected on the election form is more frequent than annually, the payments in the first calendar year in which the option is in effect will be based on the amount of payment modes remaining when Golden American receives the completed election form. Golden American calculates the IRA Partial Withdrawal amount each year based on the minimum distribution rules. We do this by dividing the contract value by the life expectancy. In the first year withdrawals begin, we use the contract value as of the date of the first payment. Thereafter, we use the contract value on December 31st of each year. The life expectancy is recalculated each year. Certain minimum distribution rules govern payouts if the designated beneficiary is other than the contract owner's spouse and the beneficiary is more than ten years younger than the contract owner. OTHER INFORMATION Registration statements have been filed with the SEC under the Securities Act of 1933, as amended, with respect to the Contracts discussed in this Statement of Additional Information. Not all of the information set forth in the registration statements, amendments and exhibits thereto has been included in this Statement of Additional Information. Statements contained in this Statement of Additional Information concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC. 9 UNAUDITED FINANCIAL STATEMENTS OF GOLDEN AMERICAN LIFE INSURANCE COMPANY The unaudited financial statements of Golden American Life Insurance Company for the nine months ending September 30, 2001 are listed below and are included in this Statement of Additional Information: Unaudited Financial Statements Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Statements of Operations (Unaudited) Condensed Consolidated Statements of Cash Flows (Unaudited) Notes to Condensed Consolidated Financial Statements (Unaudited) -------------------------------------------------------------------------------- UNAUDITED FINANCIAL STATEMENTS OF GOLDEN AMERICAN LIFE INSURANCE COMPANY -------------------------------------------------------------------------------- For the Nine Months Ended September 30, 2001 10 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except per share data)
September 30, 2001 December 31, 2000 ------------------ ----------------- ASSETS Investments: Fixed maturities, available for sale, at fair value (cost: 2001 - $1,301,768; 2000 - $798,751)........................ $ 1,329,414 $ 792,578 Equity securities, at fair value (cost: 2001 - $66; 2000 - $8,611)................................... 52 6,791 Mortgage loans on real estate....................................... 215,059 99,916 Policy loans........................................................ 14,454 13,323 Short-term investments.............................................. -- 17,102 -------------- ------------- Total investments...................................................... 1,558,979 929,710 Cash and cash equivalents.............................................. 272,826 152,880 Reinsurance recoverable................................................ 21,891 19,331 Reinsurance recoverable from affiliate................................. 60,500 14,642 Due from affiliates.................................................... 10 38,786 Accrued investment income.............................................. 18,326 9,606 Deferred policy acquisition costs...................................... 635,737 635,147 Value of purchased insurance in force ................................. 17,286 25,942 Current income taxes recoverable....................................... 3 511 Deferred income tax asset.............................................. 4,757 9,047 Property and equipment, less allowances for depreciation of $9,337 in 2001 and $5,638 in 2000................................... 11,248 14,404 Goodwill, less accumulated amortization of $14,798 in 2001 and $11,964 in 2000................................................. 136,329 139,163 Other assets........................................................... 48,989 32,019 Separate account assets................................................ 9,244,329 9,831,489 -------------- ------------- Total assets........................................................... $ 12,031,210 $ 11,852,677 ============== ============= LIABILITIES AND STOCKHOLDER'S EQUITY Policy liabilities and accruals: Future policy benefits: Annuity and interest sensitive life products...................... $ 1,667,756 $ 1,062,891 Unearned revenue reserve.......................................... 6,436 6,817 Other policy claims and benefits.................................... 810 82 -------------- ------------- 1,675,002 1,069,790 Surplus notes.......................................................... 245,000 245,000 Revolving note payable................................................. 1,400 -- Due to affiliates...................................................... 9,429 19,887 Other liabilities...................................................... 95,356 69,374 Separate account liabilities........................................... 9,244,329 9,831,489 -------------- ------------- 11,270,516 11,235,540 Commitments and contingencies Stockholder's equity: Common stock, par value $10 per share, authorized, issued, and outstanding 250,000 shares...................................... 2,500 2,500 Additional paid-in capital.......................................... 714,640 583,640 Accumulated other comprehensive income (loss)....................... 5,067 (4,046) Retained earnings .................................................. 38,487 35,043 -------------- ------------- Total stockholder's equity............................................. 760,694 617,137 -------------- ------------- Total liabilities and stockholder's equity............................. $ 12,031,210 $ 11,852,677 ============== =============
11 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands) For the Nine For the Nine Months Ended Months Ended September 30, 2001 September 30, 2000 ------------------ ------------------ Revenues: Annuity and interest sensitive life product charges....... $ 117,308 $ 103,923 Management fee revenue.................................... 18,675 16,827 Net investment income..................................... 67,020 47,896 Realized losses on investments............................ (1,529) (4,546) ----------- ---------- 201,474 164,100 Insurance benefits and expenses: Annuity and interest sensitive life benefits: Interest credited to account balances..................... 124,061 146,672 Guaranteed benefits reserve change........................ 16,615 -- Benefit claims incurred in excess of account balances..... (5,557) 1,680 Underwriting, acquisition, and insurance expenses: Commissions............................................... 160,752 160,105 General expenses.......................................... 84,551 61,194 Insurance taxes, state licenses, and fees................. 5,030 4,047 Policy acquisition costs deferred....................... (60,031) (87,753) Amortization: Deferred policy acquisition costs..................... 40,214 49,527 Value of purchased insurance in force................... 4,097 3,181 Goodwill................................................ 2,834 2,834 Expense and charges reimbursed under modified coinsurance agreements (194,043) (220,249) ----------- ---------- 181,523 121,238 Interest expense............................................. 14,438 14,976 ----------- ---------- 195,961 136,214 ----------- ---------- Income before income taxes................................... 5,513 27,886 Income taxes................................................. 2,069 9,802 ----------- ---------- Net income................................................... $ 3,444 $ 18,084 =========== ==========
See accompanying notes. 12 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)
For the Nine For the Nine Months Ended Months Ended September 30, 2001 September 30, 2000 ------------------ ------------------ NET CASH PROVIDED BY OPERATING ACTIVITIES................... $ 190,373 $ 142,933 INVESTING ACTIVITIES Sale, maturity, or repayment of investments: Fixed maturities - available for sale.................... 406,428 158,731 Equity securities........................................ 6,956 5,196 Mortgage loans on real estate............................ 126,940 5,118 Policy loans - net....................................... -- 837 Short-term investments - net............................. 17,102 17,880 ------------- ------------ 557,426 187,762 Acquisition of investments: Fixed maturities - available for sale.................... (910,534) (105,606) Mortgage loans on real estate............................ (242,357) (9,786) Policy loans - net....................................... (1,131) -- ------------- ------------ (1,154,022) (115,392) Net purchases of property and equipment..................... (745) (1,898) Issuance of reciprocal loan agreement receivables........... -- (16,900) Receipt of repayment of reciprocal loan agreement receivables.............................................. -- 16,900 ------------- ------------ Net cash provided by(used in) investing activities......... (597,341) 70,472 FINANCING ACTIVITIES Proceeds from reciprocal loan agreement borrowings.......... 29,300 177,900 Repayment of reciprocal loan agreement borrowings........... (29,300) (177,900) Proceeds from revolving note payable........................ 1,400 66,100 Repayment of revolving note payable......................... -- (67,500) Receipts from annuity and interest sensitive life policies credited to account balances.................... 1,074,755 506,412 Return of account balances on annuity and interest sensitive life policies..................... (109,462) (126,803) Net reallocations to Separate Accounts...................... (570,779) (620,568) Contribution from parent ................................... 131,000 80,000 ------------- ------------ Net cash provided by (used in) financing activities......... 526,914 (162,359) ------------- ------------ Increase in cash and cash equivalents...................... 119,946 51,046 Cash and cash equivalents at beginning of period............ 152,880 76,690 ------------- ------------ Cash and cash equivalents at end of period.................. $ 272,826 $ 127,736 ============= ============ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for Interest................................................. $ 14,949 $ 18,068 Taxes.................................................... $ 1 $ 28
See accompanying notes. 13 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2001 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments were of a normal recurring nature, unless otherwise noted in Management's Discussion and Analysis and the Notes to Financial Statements. Operating results for the nine months ended September 30, 2001 are not necessarily indicative of the results that may be expected for the year ending December 31, 2001. These financial statements should be read in conjunction with the financial statements and related footnotes included in the Golden American Life Insurance Company's annual report on Form 10-K for the year ended December 31, 2000. CONSOLIDATION The condensed consolidated financial statements include Golden American Life Insurance Company ("Golden American") and its wholly owned subsidiary, First Golden American Life Insurance Company of New York ("First Golden," and with Golden American, collectively, the "Companies"). All significant intercompany accounts and transactions have been eliminated. ORGANIZATION Golden American is a wholly owned subsidiary of Equitable of Iowa Companies, Inc. ("EIC" or the "Parent"). EIC is an indirect wholly owned subsidiary of ING Groep N.V., a global financial services holding company based in The Netherlands. SIGNIFICANT ACCOUNTING POLICIES New Accounting Standards: As of January 1, 2001, the Companies adopted FAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended and interpreted by FAS No. 137, Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133, FAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities - an Amendment of FASB Statement No. 133, and certain FAS No. 133 implementation issues. This standard, as amended, requires companies to record all derivatives on the balance sheet as either assets or liabilities and measure those instruments at fair value. The manner in which companies are to record gains or losses resulting from changes in the fair values of those derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. Adoption of FAS No. 133 did not have a material effect on the Companies' financial position or results of operations given the Companies' limited derivative and embedded derivative holdings. The Companies chose to elect a transition date of January 1, 1999 for embedded derivatives. Therefore, only those derivatives embedded in hybrid instruments issued, acquired or substantively modified by the entity on or after January 1, 1999 are recognized as separate assets or liabilities. The cumulative effect of the accounting change upon adoption was not material. Accounting for Derivative Instruments and Hedging Activities: The Companies may from time to time utilize various derivative instruments to manage interest rate and price risk (collectively, market risk). The Companies have appropriate controls in place, and financial exposures are monitored and managed by the Companies as an integral part of their overall risk management program. Derivatives are recognized on the balance sheet at their fair value. The Companies occasionally purchase a financial instrument that contains a derivative instrument that is "embedded" in the instrument. The Companies' insurance products are also reviewed to determine whether they contain an embedded derivative. The Companies assess whether the economic characteristics of the 14 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2001 1. BASIS OF PRESENTATION (continued) embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument or insurance product (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. In cases where the host contract is measured at fair value, with changes in fair value reported in current period earnings, or the Companies are unable to reliably identify and measure the embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at fair value and is not designated as a hedging instrument. Pending Accounting Standards: In June 2001, the Financial Accounting Standards Board issued Statements of Financial Accounting Standards No. 141, "Business Combinations", and No. 142, "Goodwill and Other Intangible Assets", effective for fiscal years beginning after December 15, 2001. Under the new rules, goodwill and intangible assets deemed to have indefinite lives will no longer be amortized but will be subject to annual impairment tests in accordance with the Statements. Other intangible assets will continue to be amortized over their useful lives. The Companies are required to adopt the new rules effective January 1, 2002. The Companies are evaluating the impact of the adoption of these standards and have not yet determined the effect of adoption on their financial position and results of operations. STATUTORY Net loss for Golden American as determined in accordance with statutory accounting practices was $206,801,000 and $6,017,000 for the nine months ended September 30, 2001 and 2000, respectively. Total statutory capital and surplus was $323,288,000 at September 30, 2001 and $406,923,000 at December 31, 2000. The National Association of Insurance Commissioners has revised the Accounting Practices and Procedures Manual, the guidance that defines statutory accounting principles. The revised manual was effective January 1, 2001, and has been adopted, at least in part, by the States of Delaware and New York, which are the states of domicile for Golden American and First Golden, respectively. The revised manual has resulted in changes to the accounting practices that the Companies use to prepare their statutory-basis financial statements. The impact of these changes to the Companies' statutory-basis capital and surplus as of January 1, 2001 was not significant. RECLASSIFICATIONS Certain amounts in the prior period financial statements have been reclassified to conform to the September 30, 2001 financial statement presentation. 2. COMPREHENSIVE INCOME Comprehensive income includes all changes in stockholder's equity during a period except those resulting from investments by and distributions to the stockholder. During the third quarters of 2001 and 2000, total comprehensive income (loss) for the Companies amounted to $(4.8) million and $14.8 million, respectively, and $12.6 million and $21.8 million for the nine months ended September 30, 2001 and 2000, respectively. Other comprehensive income (loss) excludes net investment gains (losses) included in net income which merely represent transfers from unrealized to realized gains and losses. These amounts totaled $231,000 and $(834,000) during the third quarters of 2001 and 2000, respectively, and $45,000 and $(1.4) million for the nine months ended September 30, 2001 and 2000, respectively. Such amounts, which have been measured through the date of sale, are net of income taxes and adjustments for the value of purchased insurance in 15 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 2. COMPREHENSIVE INCOME (continued) force and deferred policy acquisition costs totaling $160,000 and $(1,080,000) for the third quarters of 2001 and 2000, respectively, and $56,000 and $(3,121,000) for the nine months ended September 30, 2001 and 2000, respectively. 3. INVESTMENTS Investment Diversifications: The Companies' investment policies related to the investment portfolio require diversification by asset type, company, and industry and set limits on the amount which can be invested in an individual issuer. Such policies are at least as restrictive as those set forth by regulatory authorities. The following percentages relate to holdings at September 30, 2001 and December 31, 2000. Fixed maturities included investments in basic industrials (63% in 2001, 29% in 2000), conventional mortgage-backed securities (10% in 2001, 20% in 2000), financial companies (8% in 2001, 14% in 2000), and other asset-backed securities (1% in 2001, 20% in 2000). Mortgage loans on real estate have been analyzed by geographical location with concentrations by state identified as Ohio (20% in 2001 and 4% in 2000) and California (15% in 2001 and 15% in 2000). There are no other concentrations of mortgage loans on real estate in any state exceeding ten percent at September 30, 2001. Mortgage loans on real estate have also been analyzed by collateral type with significant concentrations identified in office buildings (22% in 2001 and 29% in 2000), industrial buildings (18% in 2001 and 11% in 2000), retail facilities (20% in 2001 and 18% in 2000), and multi-family apartments (36% in 2001 and 10% in 2000). Investment Valuation Analysis: The Companies analyze the investment portfolio at least quarterly in order to determine if the carrying value of any investment has been impaired. The carrying value of debt and equity securities is written down to fair value by a charge to realized losses when impairment in value appears to be other than temporary. During the first nine months of 2001, Golden American determined that the carrying value of four bonds exceeded their estimated net realizable value. As a result, during the nine months ended September 30, 2001, Golden American recognized a total pre-tax loss of $1,279,000 to reduce the carrying value of the bonds to their combined net realizable value of $565,000. 4. DERIVATIVE INSTRUMENTS The Companies may from time to time utilize various derivative instruments to manage interest rate and price risk (collectively, market risk). The Companies have appropriate controls in place, and financial exposures are monitored and managed by the Companies as an integral part of their overall risk management program. Derivatives are recognized on the balance sheet at their fair value. At September 30, 2001, the Companies did not utilize any such derivatives. The estimated fair values and carrying amounts of the Companies' embedded derivatives at September 30, 2001 were $0, net of reinsurance. The estimated fair values and carrying amounts of the embedded derivatives on a direct basis, before reinsurance, were $4.9 million. The fair value of these instruments was estimated based on quoted market prices, dealer quotations or internal estimates. 5. RELATED PARTY TRANSACTIONS Operating Agreements: Directed Services, Inc. ("DSI"), an affiliate, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) and distributor of the variable insurance products issued by the Companies. DSI is authorized to enter into agreements with broker/dealers to distribute the Companies' variable insurance products and appoint representatives of the broker/dealers as agents. The Companies paid commissions to DSI totaling $51,551,000 and $159,949,000 in the third quarter and the first nine months of 2001, respectively ($47,073,000 and $156,325,000, respectively, for the same periods of 2000). 16 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 5. RELATED PARTY TRANSACTIONS (continued) Golden American provides certain managerial and supervisory services to DSI. The fee paid by DSI for these services is calculated as a percentage of average assets in the variable separate accounts. For the third quarter and nine months ended September 30, 2001, the fee was $5,749,000 and $17,282,000, respectively ($6,521,000 and $15,579,000, respectively, for the same periods of 2000). The Companies have an asset management agreement with ING Investment Management LLC ("ING IM"), an affiliate, in which ING IM provides asset management and accounting services. Under the agreement, the Companies record a fee based on the value of the assets managed by ING IM. The fee is payable quarterly. For the third quarter and the first nine months of 2001, the Companies incurred fees of $1,204,000 and $2,905,000, respectively, under this agreement ($596,000 and $1,870,000, respectively, for the same periods of 2000). Golden American has a guaranty agreement with Equitable Life Insurance Company of Iowa ("Equitable Life"), an affiliate. In consideration of an annual fee, payable June 30, Equitable Life guarantees to Golden American that it will make funds available, if needed, to Golden American to pay the contractual claims made under the provisions of Golden American's life insurance and annuity contracts. The agreement is not, and nothing contained therein or done pursuant thereto by Equitable Life shall be deemed to constitute, a direct or indirect guaranty by Equitable Life of the payment of any debt or other obligation, indebtedness, or liability, of any kind or character whatsoever, of Golden American. The agreement does not guarantee the value of the underlying assets held in separate accounts in which funds of variable life insurance and variable annuity policies have been invested. The calculation of the annual fee is based on risk based capital. For the nine months ended September 30, 2001 and 2000, Golden American incurred a fee of $12,000 and $7,000, respectively, under this agreement. Golden American provides certain advisory, computer, and other resources and services to Equitable Life. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $1,360,000 and $4,079,000 for the third quarter and nine months ended September 30, 2001, respectively ($1,534,000 and $4,810,000, respectively, for the same periods of 2000). The Companies have a service agreement with Equitable Life in which Equitable Life provides administrative and financial related services. Under this agreement with Equitable Life, the Companies incurred expenses of $80,000 and $232,000 for the third quarter and nine months ended September 30, 2001, respectively ($339,000 and $1,006,000, respectively, for the same periods in 2000). During 2001, the State of Delaware Insurance Department approved expense sharing agreements with ING America Insurance Holdings for administrative, management, financial, and information technology services. Under these agreements with ING America Insurance Holdings, Golden American incurred expenses of $20.7 million for the nine months ended September 30, 2001. First Golden provides resources and services to DSI. Revenues for these services, which reduced general expenses incurred by First Golden, totaled $5,000 and $139,000 for the third quarter and nine months ended September 30, 2001, respectively ($54,000 and $162,000, respectively, for the same periods in 2000). Golden American provides resources and services to ING Mutual Funds Management Co., LLC, an affiliate. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $0 and $478,000 for the third quarter and nine months ended September 30, 2001, respectively ($117,000 and $387,000, respectively, for the same periods in 2000). Golden American provides resources and services to United Life & Annuity Insurance Company, an affiliate. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $93,000 and $292,000 for the third quarter and nine months ended September 30, 2001, respectively ($145,000 and $463,000, respectively, for the same periods in 2000). 17 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 5. RELATED PARTY TRANSACTIONS (continued) Golden American provides resources and services to Security Life of Denver Insurance Company, an affiliate. Revenues for these services, which reduced general expenses incurred by the Companies, totaled $112,000 and $245,000 for the third quarter and nine months ended September 30, 2001, respectively ($65,000 and $173,000, respectively, for the same periods in 2000). The Companies provide resources and services to Southland Life Insurance Company, an affiliate. Revenues for these services, which reduced general expenses incurred by the Companies, totaled $34,000 and $97,000 for the third quarter and nine months ended September 30, 2001, respectively ($26,000 and $78,000, respectively, for the same periods in 2000). For the third quarter of 2001, the Companies received premiums, net of reinsurance, for variable products sold through eight affiliates, Locust Street Securities, Inc. ("LSSI"), Vestax Securities Corporation ("Vestax"), DSI, Multi-Financial Securities Corporation ("Multi-Financial"), IFG Network Securities, Inc. ("IFG"), Washington Square Securities, Inc. ("Washington Square"), PrimeVest Financial ("PrimeVest"), and Compulife Investor Services, Inc. ("Compulife") of $28.8 million, $8.7 million, $0.2 million, $6.6 million, $3.1 million, $25.0 million, $9.8 million and $1.5 million, respectively ($6.0 million, $0.7 million, $0, $2.1 million, $2.7 million, $0, $0, and $0, respectively, for the same period of 2000). For the first nine months of 2001, the Companies received premiums, net of reinsurance for variable products sold through eight affiliates, LSSI, Vestax, DSI, Multi-Financial, IFG, Washington Square, PrimeVest, and Compulife of $66.7 million, $21.6 million, $0.6 million, $15.6 million, $8.6 million, $53.9 million, $20.7 million, and $5.3 million, respectively ($73.0 million, $29.0 million, $0.8 million, $23.2 million, $11.0 million, $0, $0, and $0, respectively, for the same period of 2000). For the third quarter and nine months ended September 30, 2001, First Golden received premiums for fixed annuities products sold through Washington Square of approximately $0.3 million and $0.8 million, respectively. Modified Coinsurance Agreement: On June 30, 2000, effective January 1, 2000, Golden American entered into a modified coinsurance agreement with Equitable Life, an affiliate, covering a considerable portion of Golden American's variable annuities issued after January 1, 2000, excluding those with an interest rate guarantee. The financial statements are presented net of the effects of the agreement. Under this agreement, Golden American received a net reimbursement of expenses and charges of $31.6 million and $192.5 million for the third quarter and the nine months ended September 30, 2001, respectively ($102.9 million and $214.7 million for the same periods in 2000). This was offset by a decrease in deferred acquisition costs of $50.1 million and $210.9 million, respectively, for the third quarter and the nine months ended September 30, 2001 ($103.7 million and $213.0 million for the same periods in 2000). At September 30, 2001, Golden American had a receivable from Equitable Life of $1.9 million due to the timing of the cash settlement for the modified coinsurance agreement. As at December 31, 2000, Golden American had a payable of $16.3 million under the agreement. Reinsurance Agreement Covering Minimum Guaranteed Benefits: On December 28, 2000, Golden American entered into a reinsurance agreement with Security Life of Denver International Limited, an affiliate, covering minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. An irrevocable letter of credit was obtained through Bank of New York in the amount of $60.0 million related to this agreement. Under this agreement, Golden American recorded a reinsurance recoverable of $60.5 million and $14.6 million at September 30, 2001 and December 31, 2000, respectively. 18 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 5. RELATED PARTY TRANSACTIONS (continued) Reciprocal Loan Agreement: Golden American maintains a reciprocal loan agreement with ING America Insurance Holdings, Inc. ("ING AIH"), a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which became effective January 1, 1998 and expires December 31, 2007, Golden American and ING AIH can borrow up to $65,000,000 from one another. Prior to lending funds to ING AIH, Golden American must obtain the approval of the Department of Insurance of the State of Delaware. Interest on any Golden American borrowings is charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Interest on any ING AIH borrowings is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under this agreement, Golden American incurred interest expense of $0 and $91,000 for the third quarters of 2001 and 2000, respectively, and $25,000 and $427,000 for the nine months ended September 30, 2001 and 2000, respectively. At September 30, 2001, Golden American did not have any borrowings or receivables from ING AIH under this agreement. Surplus Notes: On December 30, 1999, Golden American issued an 8.179% surplus note in the amount of $50,000,000 to Equitable Life. The note matures on December 29, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $1,031,000 and $1,020,000 for the third quarters of 2001 and 2000, respectively, and $3,059,000 and $3,076,000 for the nine months ended September 30, 2001 and 2000, respectively. On December 8, 1999, Golden American issued a 7.979% surplus note in the amount of $35,000,000 to First Columbine Life Insurance Company ("First Columbine"), an affiliate. The note matures on December 7, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $704,000 and $696,000 for the third quarters of 2001 and 2000, respectively, and $2,089,000 and $2,271,000 for the first nine months of 2001 and 2000, respectively. On September 30, 1999, Golden American issued a 7.75% surplus note in the amount of $75,000,000 to ING AIH. The note matures on September 29, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $1,465,000 and $1,449,000 for the third quarters of 2001 and 2000, respectively, and $4,347,000 and $4,355,000 for the first nine months of 2001 and 2000, respectively. On December 30, 1999, ING AIH assigned the note to Equitable Life. On December 30, 1998, Golden American issued a 7.25% surplus note in the amount of $60,000,000 to Equitable Life. The note matures on December 29, 2028. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $1,096,000 and $1,088,000 for the third quarters of 2001 and 2000, respectively, and $3,254,000 and $3,263,000 for the first nine months of 2001 and 2000, respectively. 19 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 5. RELATED PARTY TRANSACTIONS (continued) On December 17, 1996, Golden American issued an 8.25% surplus note in the amount of $25,000,000 to Equitable of Iowa Companies. The note matures on December 17, 2026. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors of Golden American. Any payment of principal made is subject to the prior approval of the Delaware Insurance Commissioner. Golden American incurred interest totaling $516,000 for the third quarters of 2001 and 2000, respectively, and $1,547,000 for the first nine months of 2001 and 2000, respectively. Stockholder's Equity: During the third quarter and the first nine months of 2001, Golden American received capital contributions from its Parent of $124,000,000 and $131,000,000, respectively ($0 and $80,000,000, respectively, for the same periods in 2000). 6. COMMITMENTS AND CONTINGENCIES Reinsurance: At September 30, 2001, the Companies had reinsurance treaties with five unaffiliated reinsurers and three affiliated reinsurers covering a significant portion of the minimum guaranteed death and living benefits under its variable contracts as of September 30, 2001. Golden American remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. At September 30, 2001 and December 31, 2000, the Companies had net receivables of $82,391,000 and $33,973,000, respectively, for reinsurance claims, reserve credits, or other receivables from these reinsurers. These net receivables were comprised of $2,955,000 and $1,820,000, respectively, for claims recoverable from reinsurers, $4,024,000 and $4,007,000, respectively, for a payable for reinsurance premiums, $60,500,000 and $14,642,000, respectively, for reserve credits, and $22,960,000 and $21,518,000, respectively, for a receivable from an unaffiliated reinsurer. Included in the accompanying financial statements are net considerations to reinsurers of $8,593,000 for the third quarter of 2001 and $21,211,000 for the first nine months of 2001 compared to $6,564,000 and $14,472,000 for the same periods in 2000. Also included in the accompanying financial statements are net policy benefits of $13,314,000 for the third quarter of 2001 and $25,091,000 for the first nine months of 2001 compared to $1,122,000 and $2,957,000 for the same period in 2000. On June 30, 2000, effective January 1, 2000, Golden American entered into a modified coinsurance agreement with Equitable Life, an affiliate, covering a considerable portion of Golden American's variable annuities issued after January 1, 2000, excluding those with an interest rate guarantee. For the nine months ended September 30, 2001, Golden American had received a total settlement of $192.5 million under this agreement, compared to $214.7 million for the same period in 2000. The carrying value of the separate account liabilities covered under this agreement represent 26.3% of total separate account liabilities outstanding at September 30, 2001, compared to 17.1% at September 30, 2000. Golden American remains liable to the extent Equitable Life does not meet its obligations under the agreement. The accompanying financial statements are presented net of the effects of the agreement. On December 28, 2000, Golden American entered into a reinsurance agreement with Security Life of Denver International Limited, an affiliate, covering minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. An irrevocable letter of credit was obtained through Bank of New York in the amount of $60,000,000 related to this agreement. On December 29, 2000, First Golden entered into a reinsurance treaty with London Life Reinsurance Company of Pennsylvania, an unaffiliated reinsurer, covering the minimum guaranteed death benefits of First Golden's variable annuities issued after January 1, 2000. Effective June 1, 1994, Golden American entered into a modified coinsurance agreement with an unaffiliated reinsurer. The accompanying financial statements are presented net of the effects of the treaty. 20 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) September 30, 2001 6. COMMITMENTS AND CONTINGENCIES (continued) Investment Commitments: At September 30, 2001, outstanding commitments to fund mortgage loans totaled $35,000,000. There were no outstanding commitments to fund mortgage loans at December 31, 2000. Guaranty Fund Assessments: Assessments are levied on the Companies by life and health guaranty associations in most states in which the Companies are licensed to cover losses of policyholders of insolvent or rehabilitated insurers. In some states, these assessments can be partially offset through a reduction in future premium taxes. The Companies cannot predict whether and to what extent legislative initiatives may affect the right to offset. The associated cost for a particular insurance company can vary significantly based upon its fixed account premium volume by line of business and state premiums as well as its potential for premium tax offset. The Companies have established an undiscounted reserve to cover such assessments, review information regarding known failures, and revise estimates of future guaranty fund assessments. The Companies charged to expense $2,000 in guaranteed fund assessments in the first nine months of 2001 and 2000. At September 30, 2001 and December 31, 2000, the Companies have an undiscounted reserve $2,430,000 to cover future assessments (net of related anticipated premium tax offsets), and have established an asset totaling $691,000 and $733,000, respectively, for assessments paid which may be recoverable through future premium tax offsets. The Companies believe this reserve is sufficient to cover expected future guaranty fund assessments based upon previous premiums and known insolvencies at this time. Litigation: The Companies, like other insurance companies, may be named or otherwise involved in lawsuits, including class action lawsuits and arbitrations. In some class action and other actions involving insurers, substantial damages have been sought and/or material settlement or award payments have been made. The Companies currently believe no pending or threatened lawsuits or actions exist that are reasonably likely to have a material adverse impact on the Companies. Vulnerability from Concentrations: The Companies have various concentrations in the investment portfolio. As of September 30, 2001, the Companies had one investment (other than bonds issued by agencies of the United States government) exceeding ten percent of stockholder's equity. The Companies' asset growth, net investment income, and cash flow are primarily generated from the sale of variable and fixed insurance products and associated future policy benefits and separate account liabilities. Substantial changes in tax laws that would make these products less attractive to consumers and extreme fluctuations in interest rates or stock market returns, which may result in higher lapse experience than assumed, could cause a severe impact on the Companies' financial condition. One broker/dealer generated 10% of the Companies' net sales during the third quarter of 2001 (27% by two broker/dealers in the same period of 2000). One broker/dealer generated 10% of the Companies' net sales during the first nine months of 2001 (12% by one broker/dealer in the same period of 2000). The Premium Plus product generated 47% and 50% of the Companies' sales during the third quarter of 2001 and the first nine months of 2001 (73% and 74% in the same periods of 2000). The ES II product generated 16% of the Companies' sales during the third and the first nine months of 2001 (12% in the same periods of 2000). The Guarantee product, introduced in the fourth quarter of 2000, generated 11% and 16% of the Companies' sales during the third quarter and the first nine months of 2001. Revolving Note Payable: To enhance short-term liquidity, the Companies established revolving notes payable with SunTrust Bank, Atlanta (the "Bank"). These revolving notes payable were amended and restated in April 2001 with an expiration date of May 31, 2002. The note was approved by the Boards of Directors of Golden American and First Golden on August 5, 1998 and September 29, 1998, respectively. The total amount the Companies may have outstanding is $85,000,000, of which Golden American and First Golden have individual credit sublimits of $75,000,000 and $10,000,000, respectively. The notes accrue interest at an annual rate equal to: (1) the cost of funds for the Bank for the period applicable for the advance plus 0.225% or (2) a rate quoted by the Bank to the Companies for the advance. The terms of the agreement require the Companies to maintain the minimum level of Company Action Level Risk Based Capital as established by applicable state law or regulation. During the third quarters ended September 30, 2001 and 2000, the 21 Companies incurred interest expense of $118,000 and $0, respectively. During the nine months ended September 30, 2001 and 2000, the Companies incurred interest expense of $117,000 and $36,000, respectively. At September 30, 2001 and December 31, 2000, the Companies had borrowings of $1,400,000 and $0, respectively, under these agreements. 7. MERGER OF FIRST GOLDEN WITH RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK On September 25, 2001, the Board of Directors of First Golden approved a plan of merger to merge First Golden into ReliaStar Life Insurance Company of New York ("ReliaStar of NY"). The merger is anticipated to be effective on January 1, 2002 (the "merger date"), subject to the approval of the Insurance Department of the State of New York, which has the discretion, as deemed necessary, to hold a public hearing with regard to the merger. If approved, on the merger date, First Golden will cease to exist and will be succeeded by ReliaStar of NY. SUBSEQUENT EVENT. Subsequent to the filing with the Securities and Exchange Commission of the Golden American Life Insurance Company Form 10-Q as of September 30, 2001, the anticipated effective date of the proposed merger of First Golden American Life Insurance Company of New York into ReliaStar Life Insurance Company of New York ("RLNY") was moved to April 1, 2002, or shortly thereafter, subject to the approval of the Insurance Departments of the States of New York, Delaware and Minnesota. 22 FINANCIAL STATEMENTS OF GOLDEN AMERICAN LIFE INSURANCE COMPANY The audited financial statements of Golden American Life Insurance Company are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Audited Financial Statements Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statement of Changes in Stockholder's Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements -------------------------------------------------------------------------------- FINANCIAL STATEMENTS OF GOLDEN AMERICAN LIFE INSURANCE COMPANY -------------------------------------------------------------------------------- REPORT OF INDEPENDENT AUDITORS The Board of Directors and Stockholder Golden American Life Insurance Company We have audited the accompanying consolidated balance sheets of Golden American Life Insurance Company as of December 31, 2000 and 1999, and the related consolidated statements of operations, changes in stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2000. These financial statements are the responsibility of the Companies' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Golden American Life Insurance Company at December 31, 2000 and 1999, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Atlanta, Georgia March 12, 2001 23 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data)
December 31, December 31, 2000 1999 ----------- ----------- ASSETS Investments: Fixed maturities, available for sale, at fair value (cost: 2000 - $798,751; 1999 - $858,052) ............ $ 792,578 $ 835,321 Equity securities, at fair value (cost: 2000 - $8,611; 1999 - $14,952) ..................................... 6,791 17,330 Mortgage loans on real estate .......................... 99,916 100,087 Policy loans ........................................... 13,323 14,157 Short-term investments ................................. 106,775 80,191 ----------- ----------- Total investments ......................................... 1,019,383 1,047,086 Cash and cash equivalents ................................. 63,207 14,380 Reinsurance recoverable ................................... 19,331 14,834 Reinsurance recoverable from affiliates ................... 14,642 -- Due from affiliates ....................................... 38,786 637 Accrued investment income ................................. 9,606 11,198 Deferred policy acquisition costs ......................... 635,147 528,957 Value of purchased insurance in force ..................... 25,942 31,727 Current income taxes recoverable .......................... 511 35 Deferred income tax asset ................................. 9,047 21,943 Property and equipment, less allowances for depreciation of $5,638 in 2000 and $3,229 in 1999 ...................... 14,404 13,888 Goodwill, less accumulated amortization of $11,964 in 2000 and $8,186 in 1999 ..................................... 139,163 142,941 Other assets .............................................. 32,019 2,514 Separate account assets ................................... 9,831,489 7,562,717 ----------- ----------- Total assets .............................................. $11,852,677 $ 9,392,857 =========== ===========
See accompanying notes. 24 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (CONTINUED) (Dollars in thousands, except per share data)
December 31, December 31, 2000 1999 ------------ ------------ LIABILITIES AND STOCKHOLDER'S EQUITY Policy liabilities and accruals: Future policy benefits: Annuity and interest sensitive life products .......... $ 1,062,891 $ 1,033,701 Unearned revenue reserve .............................. 6,817 6,300 Other policy claims and benefits ......................... 82 8 ------------ ------------ 1,069,790 1,040,009 Surplus notes ............................................... 245,000 245,000 Revolving note payable ...................................... -- 1,400 Due to affiliates ........................................... 19,887 12,650 Other liabilities ........................................... 69,374 53,232 Separate account liabilities ................................ 9,831,489 7,562,717 ------------ ------------ 11,235,540 8,915,008 Commitments and contingencies Stockholder's equity: Common stock, par value $10 per share, authorized, issued, and outstanding 250,000 shares ........................ 2,500 2,500 Additional paid-in capital ............................... 583,640 468,640 Accumulated other comprehensive loss ..................... (4,046) (9,154) Retained earnings ........................................ 35,043 15,863 ------------ ------------ Total stockholder's equity .................................. 617,137 477,849 ------------ ------------ Total liabilities and stockholder's equity .................. $ 11,852,677 $ 9,392,857 ============ ============
See accompanying notes. 25 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands)
Year Ended December 31 2000 1999 1998 --------- --------- --------- REVENUES: Annuity and interest sensitive life product charges .................................... $ 144,877 $ 82,935 $ 39,119 Management fee revenue ........................ 22,982 11,133 4,771 Net investment income ......................... 64,140 59,169 42,485 Realized losses on investments ................ (6,554) (2,923) (1,491) --------- --------- --------- 225,445 150,314 84,884 Insurance benefits and expenses: Annuity and interest sensitive life benefits: Interest credited to account balances ...... 195,088 175,257 94,845 Benefit claims incurred in excess of account balances ................................ 4,943 6,370 2,123 Underwriting, acquisition and insurance expenses: Commissions ................................... 213,719 188,383 121,171 General expenses .............................. 84,936 60,205 37,612 Insurance taxes, state licenses, and fees ..... 4,528 3,976 4,140 Policy acquisition costs deferred ............. (168,444) (346,396) (197,796) Amortization: Deferred policy acquisition costs .......... 55,154 33,119 5,148 Value of purchased insurance in force ...... 4,801 6,238 4,724 Goodwill ................................... 3,778 3,778 3,778 Expenses and charges reimbursed under modified coinsurance agreements ............ (225,787) (9,247) (5,604) --------- --------- --------- 172,716 121,683 70,141 Interest expense ................................. 19,867 8,894 4,390 --------- --------- --------- 192,583 130,577 74,531 --------- --------- --------- Income before income taxes ....................... 32,862 19,737 10,353 Income taxes ..................................... 13,682 8,523 5,279 --------- --------- --------- Net income ....................................... $ 19,180 $ 11,214 $ 5,074 ========= ========= =========
See accompanying notes. 26 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (Dollars in thousands)
Additional Accumulated Other Retained Total Common Paid-in Comprehensive Earnings Stockholder's Stock Capital Income (Loss) (Deficit) Equity -------------------------------------------------------------------- Balance at December 31, 1997 ..... $ 2,500 $ 224,997 $ 241 $ (425) $ 227,313 Comprehensive income: Net income ................. -- -- -- 5,074 5,074 Change in net unrealized investment gains (losses) -- -- (1,136) -- (1,136) --------- Comprehensive income .......... 3,938 Contribution of capital ....... -- 122,500 -- -- 122,500 Other ......................... -- 143 -- -- 143 --------- --------- --------- --------- --------- Balance at December 31, 1998 ..... 2,500 347,640 (895) 4,649 353,894 Comprehensive income: Net income ................. -- -- -- 11,214 11,214 Change in net unrealized investment gains (losses) -- -- (8,259) -- (8,259) --------- Comprehensive income .......... 2,955 Contribution of capital ....... -- 121,000 -- -- 121,000 --------- --------- --------- --------- --------- Balance at December 31, 1999 ..... $ 2,500 $ 468,640 $ (9,154) $ 15,863 $ 477,849 Comprehensive income: Net income ................. -- -- -- 19,180 19,180 Change in net unrealized investment gains (losses) -- -- 5,108 -- 5,108 --------- Comprehensive income .......... 24,288 Contribution of capital ....... -- 115,000 -- -- 115,000 --------- --------- --------- --------- --------- Balance at December 31, 2000 ..... $ 2,500 $ 583,640 $ (4,046) $ 35,043 $ 617,137 ========= ========= ========= ========= =========
See accompanying notes. 27 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
Year Ended December 31 2000 1999 1998 --------- --------- --------- OPERATING ACTIVITIES Net income .......................................... $ 19,180 $ 11,214 $ 5,074 Adjustments to reconcile net income to net cash provided by (used in) operations: Adjustments related to annuity and interest sensitive life products: Interest credited and other charges on interest sensitive products ......................... 195,088 175,257 94,845 Charges for mortality and administration ...... (313) 524 (233) Change in unearned revenues ................... 517 2,460 2,651 Increase (decrease) in policy liabilities and accruals ...................................... 74 8 (10) Decrease (increase) in accrued investment income ........................................ 1,592 (1,553) (3,222) Policy acquisition costs deferred ................ (168,444) (346,396) (197,796) Amortization of deferred policy acquisition costs 55,154 33,119 5,148 Amortization of value of purchased insurance in force ...................................... 4,801 6,238 4,724 Change in other assets, due to/from affiliates, other liabilities and accrued income taxes .... (63,840) 24,845 9,979 Provision for depreciation and amortization ...... 8,616 8,850 8,147 Provision for deferred income taxes .............. 13,728 8,523 5,279 Realized losses on investments ................... 6,554 2,923 1,491 --------- --------- --------- Net cash provided by (used in) operating activities . 72,707 (73,988) (63,923) --------- --------- --------- INVESTING ACTIVITIES Sale, maturity, or repayment of investments: Fixed maturities - available for sale ............ 205,136 220,547 145,253 Mortgage loans on real estate .................... 12,701 6,572 3,791 Equity securities ................................ 6,128 -- -- Policy loans - net ............................... 834 -- -- --------- --------- --------- 224,799 227,119 149,044 Acquisition of investments: Fixed maturities - available for sale ............ (154,028) (344,587) (476,523) Equity securities ................................ -- -- (10,000) Mortgage loans on real estate .................... (12,887) (9,659) (16,390) Policy loans - net ............................... -- (2,385) (2,940) Short-term investments - net ..................... (26,584) (39,039) (26,692) --------- --------- --------- (193,499) (395,670) (532,545) Issuance of reciprocal loan agreement receivables ... (16,900) -- -- Receipt of repayment of reciprocal loan agreement receivables ...................................... 16,900 -- -- Net purchase of property and equipment .............. (3,285) (8,968) (6,485) --------- --------- --------- Net cash provided by (used in) investing activities . 28,015 (177,519) (389,986)
See accompanying notes. 28 GOLDEN AMERICAN LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Dollars in thousands)
Year Ended December 31 2000 1999 1998 --------- --------- --------- FINANCING ACTIVITIES Proceeds from reciprocal loan agreement borrowings ..................................... $ 178,900 $ 396,350 $ 500,722 Repayment of reciprocal loan agreement borrowings ..................................... (178,900) (396,350) (500,722) Proceeds from revolving note payable .............. 67,200 220,295 108,495 Repayment of revolving note payable ............... (68,600) (218,895) (108,495) Proceeds from surplus note ........................ -- 160,000 60,000 Repayment of line of credit borrowings ............ -- -- (5,309) Receipts from annuity and interest sensitive life policies credited to account balances ..... 801,793 773,685 593,428 Return of account balances on annuity and interest sensitive life policies ........... (141,440) (146,607) (72,649) Net reallocations to separate accounts ............ (825,848) (650,270) (239,671) Contributions of capital by parent ................ 115,000 121,000 103,750 --------- --------- --------- Net cash provided by (used in) financing activities (51,895) 259,208 439,549 --------- --------- --------- Increase (decrease) in cash and cash equivalents .................................... 48,827 7,701 (14,360) Cash and cash equivalents at beginning of period ......................................... 14,380 6,679 21,039 --------- --------- --------- Cash and cash equivalents at end of period ........ $ 63,207 $ 14,380 $ 6,679 ========= ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for: Interest ....................................... $ 22,444 $ 6,392 $ 4,305 Income taxes ................................... 957 -- 99 Non-cash financing activities: Non-cash adjustment to additional paid-in capital for adjusted merger costs ........... -- -- 143 Contribution of capital from parent to repay line of credit borrowings ............. -- -- 18,750
See accompanying notes. 29 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES CONSOLIDATION The consolidated financial statements include Golden American Life Insurance Company ("Golden American") and its wholly owned subsidiary, First Golden American Life Insurance Company of New York ("First Golden," and collectively with Golden American, the "Companies"). All significant intercompany accounts and transactions have been eliminated. ORGANIZATION Golden American, a wholly owned subsidiary of Equitable of Iowa Companies, Inc., offers variable insurance products and is licensed as a life insurance company in the District of Columbia and all states except New York. First Golden is licensed to sell insurance products in New York and Delaware. The Companies' variable annuity products are marketed by broker/dealers, financial institutions, and insurance agents. The Companies' primary customers are consumers and corporations. On October 24, 1997 ("the merger date"), PFHI Holding, Inc. ("PFHI"), a Delaware corporation, acquired all of the outstanding capital stock of Equitable of Iowa Companies ("Equitable") according to the terms of an Agreement and Plan of Merger dated July 7, 1997 among Equitable, PFHI, and ING Groep N.V. ("ING"). PFHI is a wholly owned subsidiary of ING, a global financial services holding company based in The Netherlands. As a result of this transaction, Equitable was merged into PFHI, which was simultaneously renamed Equitable of Iowa Companies, Inc. ("EIC" or the "Parent"), a Delaware corporation. INVESTMENTS Fixed Maturities: The Companies account for their investments under the Statement of Financial Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in Debt and Equity Securities," which requires fixed maturities to be designated as either "available for sale," "held for investment," or "trading." Sales of fixed maturities designated as "available for sale" are not restricted by SFAS No. 115. Available for sale securities are reported at fair value and unrealized gains and losses on these securities are included directly in stockholder's equity, after adjustment for related changes in value of purchased insurance in force ("VPIF"), deferred policy acquisition costs ("DPAC"), and deferred income taxes. At December 31, 2000 and 1999, all of the Companies' fixed maturities are designated as available for sale, although the Companies are not precluded from designating fixed maturities as held for investment or trading at some future date. Securities determined to have a decline in value that is other than temporary are written down to estimated fair value, which becomes the new cost basis by a charge to realized losses in the Companies' Statements of Operations. Premiums and discounts are amortized/accrued utilizing a method which results in a constant yield over the securities' expected lives. Amortization/accrual of premiums and discounts on mortgage and other asset-backed securities incorporates a prepayment assumption to estimate the securities' expected lives. Equity Securities: Equity securities are reported at estimated fair value if readily marketable. The change in unrealized appreciation and depreciation of marketable equity securities (net of related deferred income taxes, if any) is included directly in stockholder's equity. Equity securities determined to have a decline in value that is other than temporary are written down to estimated fair value, which becomes the new cost basis by a charge to realized losses in the Companies' Statements of Operations. Mortgage Loans on Real Estate: Mortgage loans on real estate are reported at cost adjusted for amortization of premiums and accrual of discounts. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable the Companies will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the present value of expected future cash flows from the loan discounted at the loan's effective interest rate, or to the loan's observable market price, or the fair value of the underlying collateral. The carrying value of impaired loans is 30 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) reduced by the establishment of a valuation allowance, which is adjusted at each reporting date for significant changes in the calculated value of the loan. Changes in this valuation allowance are charged or credited to income. Other Investments: Policy loans are reported at unpaid principal. Short-term investments are reported at cost, adjusted for amortization of premiums and accrual of discounts. Realized Gains and Losses: Realized gains and losses are determined on the basis of specific identification. Fair Values: Estimated fair values, as reported herein, of conventional mortgage-backed securities not actively traded in a liquid market are estimated using a third party pricing process. This pricing process uses a matrix calculation assuming a spread over U.S. Treasury bonds based upon the expected average lives of the securities. Estimated fair values of publicly traded fixed maturities are reported by an independent pricing service. Fair values of private placement bonds are estimated using a matrix that assumes a spread (based on interest rates and a risk assessment of the bonds) over U.S. Treasury bonds. Estimated fair values of equity securities, which consist of the Companies' investment in its registered separate accounts, are based upon the quoted fair value of the securities comprising the individual portfolios underlying the separate accounts. CASH AND CASH EQUIVALENTS For purposes of the accompanying Statements of Cash Flows, the Companies consider all demand deposits and interest-bearing accounts not related to the investment function to be cash equivalents. All interest-bearing accounts classified as cash equivalents have original maturities of three months or less. DEFERRED POLICY ACQUISITION COSTS Certain costs of acquiring new insurance business, principally first year commissions and interest bonuses, premium credit, and other expenses related to the production of new business ($63.8 million during 2000, $153.0 million during 1999, and $73.4 million during 1998), have been deferred. Acquisition costs for variable insurance products are being amortized generally in proportion to the present value (using the assumed crediting rate) of expected future gross profits. This amortization is adjusted retrospectively when the Companies revise their estimate of current or future gross profits to be realized from a group of products. DPAC is adjusted to reflect the pro forma impact of unrealized gains and losses on fixed maturities the Companies have designated as "available for sale" under SFAS No. 115. VALUE OF PURCHASED INSURANCE IN FORCE As a result of the merger, a portion of the purchase price was allocated to the right to receive future cash flows from existing insurance contracts. This allocated cost represents VPIF, which reflects the value of those purchased policies calculated by discounting actuarially determined expected future cash flows at the discount rate determined by the purchaser. Amortization of VPIF is charged to expense in proportion to expected gross profits of the underlying business. This amortization is adjusted retrospectively when the Companies revise the estimate of current or future gross profits to be realized from the insurance contracts acquired. VPIF is adjusted to reflect the pro forma impact of unrealized gains and losses on available for sale fixed maturities. PROPERTY AND EQUIPMENT Property and equipment primarily represent leasehold improvements, office furniture, certain other equipment, and capitalized computer software and are not considered to be significant to the Companies' overall operations. Property and equipment are reported at cost less allowances for depreciation. Depreciation 31 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) expense is computed primarily on the basis of the straight-line method over the estimated useful lives of the assets. GOODWILL Goodwill was established as a result of the merger and is being amortized over 40 years on a straight-line basis. FUTURE POLICY BENEFITS Future policy benefits for divisions of the variable products with fixed interest guarantees are established utilizing the retrospective deposit accounting method. Policy reserves represent the premiums received plus accumulated interest, less mortality and administration charges. Interest credited to these policies ranged from 3.00% to 14.00% during 2000, 3.00% to 11.00% during 1999, and 3.00% to 10.00% during 1998. The unearned revenue reserve represents unearned distribution fees. These distribution fees have been deferred and are amortized over the life of the contracts in proportion to expected gross profits. SEPARATE ACCOUNTS Assets and liabilities of the separate accounts reported in the accompanying Balance Sheets represent funds separately administered principally for variable contracts. Contractholders, rather than the Companies, bear the investment risk for the variable insurance products. At the direction of the contractholders, the separate accounts invest the premiums from the sale of variable insurance products in shares of specified mutual funds. The assets and liabilities of the separate accounts are clearly identified and segregated from other assets and liabilities of the Companies. The portion of the separate account assets equal to the reserves and other liabilities of variable contracts cannot be charged with liabilities arising out of any other business the Companies may conduct. Variable separate account assets are carried at fair value of the underlying investments and generally represent contractholder investment values maintained in the accounts. Variable separate account liabilities represent account balances for the variable contracts invested in the separate accounts; the fair value of these liabilities is equal to their carrying amount. Net investment income and realized and unrealized capital gains and losses related to separate account assets are not reflected in the accompanying Statements of Operations. Product charges recorded by the Companies from variable insurance products consist of charges applicable to each contract for mortality and expense risk, cost of insurance, contract administration, and surrender charges. In addition, some variable annuity and all variable life contracts provide for a distribution fee collected for a limited number of years after each premium deposit. Revenue recognition of collected distribution fees is amortized over the life of the contract in proportion to its expected gross profits. The balance of unrecognized revenue related to the distribution fees is reported as an unearned revenue reserve. DEFERRED INCOME TAXES Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate. Deferred tax assets or liabilities are adjusted to reflect the pro forma impact of unrealized gains and losses on equity securities and fixed maturities the Companies have designated as available for sale under SFAS No. 115. Changes in deferred tax assets or liabilities resulting from this SFAS No. 115 adjustment are charged or credited directly to stockholder's equity. Deferred income tax expenses or credits reflected in the Companies' Statements of Operations are based on the changes in the deferred tax asset or liability from period to period (excluding the SFAS No. 115 adjustment). 32 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) DIVIDEND RESTRICTIONS Golden American's ability to pay dividends to its Parent is restricted. Prior approval of insurance regulatory authorities is required for payment of dividends to the stockholder which exceed an annual limit. During 2001, Golden American cannot pay dividends to its Parent without prior approval of statutory authorities. Under the provisions of the insurance laws of the State of New York, First Golden cannot distribute any dividends to its stockholder, Golden American, unless a notice of its intent to declare a dividend and the amount of the dividend has been filed with the New York Insurance Department at least thirty days in advance of the proposed declaration. If the Superintendent of the New York Insurance Department finds the financial condition of First Golden does not warrant the distribution, the Superintendent may disapprove the distribution by giving written notice to First Golden within thirty days after the filing. SEGMENT REPORTING The Companies manage their business as one segment, the sale of variable insurance products designed to meet customer needs for tax-advantaged saving for retirement and protection from death. Variable insurance products are sold to consumers and corporations throughout the United States. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions affecting the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management is required to utilize historical experience and assumptions about future events and circumstances in order to develop estimates of material reported amounts and disclosures. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates and assumptions are: (1) estimates of fair values of investments in securities and other financial instruments, as well as fair values of policyholder liabilities, (2) policyholder liabilities, (3) deferred policy acquisition costs and value of purchased insurance in force, (4) fair values of assets and liabilities recorded as a result of merger, (5) asset valuation allowances, (6) guaranty fund assessment accruals, (7) deferred tax benefits (liabilities), and (8) estimates for commitments and contingencies including legal matters, if a liability is anticipated and can be reasonably estimated. Estimates and assumptions regarding all of the preceding items are inherently subject to change and are reassessed periodically. Changes in estimates and assumptions could materially impact the financial statements. PENDING ACCOUNTING STANDARDS: DERIVATIVE FINANCIAL INSTRUMENTS During 1998, the Financial Accounting Standards Board issued Statement No. 133 ("SFAS 133"), Accounting for Derivative Financial Instruments and Hedging Activities. SFAS 133 requires that all derivative instruments, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet and measured at its fair value. The change in a derivative's fair value is generally to be recognized in current period earnings. If certain conditions are met, a derivative may be specifically designated as a hedge of an exposure to changes in fair value, variability of cash flows, or certain foreign currency exposures. When designated as a hedge, the fair value should be recognized currently in earnings or other comprehensive income, depending on whether such designation is considered a fair value or as a cash flow hedge. With respect to fair value hedges, the fair value of the derivative, as well as changes in the fair value of the hedged item, are reported in earnings. For cash flow hedges, changes in the derivatives fair value are reported in other comprehensive income and subsequently reclassified into earnings when the hedged item affects earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. The Companies 33 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) adopted SFAS 133 on January 1, 2000. The cumulative effect of the accounting change upon adoption was not material. RECLASSIFICATIONS Certain amounts in the 1999 and 1998 financial statements have been reclassified to conform to the 2000 financial statement presentation. 2. BASIS OF FINANCIAL REPORTING The financial statements of the Companies differ from related statutory-basis financial statements principally as follows: (1) acquisition costs of acquiring new business are deferred and amortized over the life of the policies rather than charged to operations as incurred; (2) an asset representing the present value of future cash flows from insurance contracts acquired was established as a result of the merger/acquisition and is amortized and charged to expense; (3) future policy benefit reserves for divisions with fixed interest guarantees of the variable insurance products are based on full account values, rather than the greater of cash surrender value or amounts derived from discounting methodologies utilizing statutory interest rates; (4) reserves are reported before reduction for reserve credits related to reinsurance ceded and a receivable is established, net of an allowance for uncollectible amounts, for these credits rather than presented net of these credits; (5) fixed maturity investments are designated as "available for sale" and valued at fair value with unrealized appreciation/depreciation, net of adjustments to value of purchased insurance in force, deferred policy acquisition costs, and deferred income taxes (if applicable), credited/charged directly to stockholder's equity rather than valued at amortized cost; (6) the carrying value of fixed maturities is reduced to fair value by a charge to realized losses in the Statements of Operations when declines in carrying value are judged to be other than temporary, rather than through the establishment of a formula-determined statutory investment reserve (carried as a liability), changes in which are charged directly to surplus; (7) deferred income taxes are provided for the difference between the financial statement and income tax bases of assets and liabilities; (8) net realized gains or losses attributed to changes in the level of interest rates in the market are recognized when the sale is completed rather than deferred and amortized over the remaining life of the fixed maturity security; (9) a liability is established for anticipated guaranty fund assessments, net of related anticipated premium tax credits, rather than capitalized when assessed and amortized in accordance with procedures permitted by insurance regulatory authorities; (10) revenues for variable insurance products consist of policy charges applicable to each contract for the cost of insurance, policy administration charges, amortization of policy initiation fees, and surrender charges assessed rather than premiums received; (11) the financial statements of Golden American's wholly owned subsidiary are consolidated rather than recorded at the equity in net assets; (12) surplus notes are reported as liabilities rather than as surplus; and (13) assets and liabilities are restated to fair values when a change in ownership occurs, with provisions for goodwill and other intangible assets, rather than continuing to be presented at historical cost. The net loss for Golden American as determined in accordance with statutory accounting practices was $71,134,000 in 2000, $85,578,000 in 1999, $68,002,000 in 1998. Total statutory capital and surplus was $406,923,000 and $368,928,000 at December 31, 2000 and 1999, respectively. The National Association of Insurance Commissioners has revised the Accounting Practices and Procedures Manual, the guidance that defines statutory accounting principles. The revised manual will be effective January 1, 2001, and has been adopted, at least in part, by the States of Delaware and New York, which are the states of domicile for Golden American and First Golden, respectively. The revised manual will result in changes to the accounting practices that the Companies use to prepare their statutory-basis financial statements. Management believes the impact of these changes to the Companies' statutory-basis capital and surplus as of January 1, 2001 will not be significant. 34 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 3. INVESTMENT OPERATIONS INVESTMENT RESULTS Major categories of net investment income are summarized below: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Fixed maturities ...................... $ 55,302 $ 50,352 $ 35,224 Equity securities ..................... 248 515 -- Mortgage loans on real estate ......... 7,832 7,074 6,616 Policy loans .......................... 516 485 619 Short-term investments ................ 2,253 2,583 1,311 Other, net ............................ 543 388 246 -------- -------- -------- Gross investment income ............... 66,694 61,397 44,016 Less investment expenses .............. (2,554) (2,228) (1,531) -------- -------- -------- Net investment income ................. $ 64,140 $ 59,169 $ 42,485 ======== ======== ======== Realized losses on investments follows: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Fixed maturities, available for sale .. $ (6,289) $ (2,910) $ (1,428) Equity securities ..................... (213) -- -- Mortgage loans on real estate ......... (52) (13) (63) -------- -------- -------- Realized losses on investments ........ $ (6,554) $ (2,923) $ (1,491) ======== ======== ======== The change in unrealized appreciation (depreciation) of securities at fair value follows: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Fixed maturities, available for sale .. $ 16,558 $(24,944) $ 1,100 Equity securities ..................... (4,198) 5,301 (2,390) -------- -------- -------- Unrealized appreciation (depreciation) of securities ...................... $ 12,360 $(19,643) $ (1,290) ======== ======== ======== 35 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 3. INVESTMENT OPERATIONS (continued) At December 31, 2000 and December 31, 1999, amortized cost, gross unrealized gains and losses, and estimated fair values of fixed maturities, all of which are designated as available for sale, follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------- -------- -------- -------- (Dollars in thousands) December 31, 2000 ----------------- U.S. government and governmental agencies and authorities .... $ 18,607 $ 580 $ (16) $ 19,171 Public utilities ............... 54,132 294 (1,600) 52,826 Corporate securities ........... 355,890 1,318 (8,006) 349,202 Other assets-backed securities . 223,787 2,166 (1,831) 224,122 Mortgage-backed securities ..... 146,335 1,465 (543) 147,257 -------- -------- -------- -------- Total .......................... $798,751 $ 5,823 $(11,996) $792,578 ======== ======== ======== ======== December 31, 1999 ----------------- U.S. government and governmental agencies and authorities .... $ 21,363 -- $ (260) $ 21,103 Public utilities ............... 53,754 $ 25 (2,464) 51,315 Corporate securities ........... 396,494 53 (12,275) 384,272 Other assets-backed securities . 207,044 850 (4,317) 203,577 Mortgage-backed securities ..... 179,397 39 (4,382) 175,054 -------- -------- -------- -------- Total .......................... $858,052 $ 967 $(23,698) $835,321 ======== ======== ======== ======== Short-term investments with maturities of 30 days or less have been excluded from the above schedules. Amortized cost approximates fair value for these securities. At December 31, 2000, net unrealized investment loss on fixed maturities designated as available for sale totaled $6,173,000. Depreciation of $1,447,000 was included in stockholder's equity at December 31, 2000 (net of adjustments of $801,000 to VPIF, $3,146,000 to DPAC, and $779,000 to deferred income taxes). At December 31, 1999, net unrealized investment loss on fixed maturities designated as available for sale totaled $22,731,000. Depreciation of $6,955,000 was included in stockholder's equity at December 31, 1999 (net of adjustments of $1,785,000 to VPIF, $10,246,000 to DPAC, and $3,745,000 to deferred income taxes). At December 31, 2000, net unrealized depreciation on equity securities was comprised entirely of gross depreciation of $1,820,000. At December 31, 1999, net unrealized appreciation on equity securities was comprised entirely of gross appreciation of $2,378,000. Amortized cost and estimated fair value of fixed maturities designated as available for sale, by contractual maturity, at December 31, 2000 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. 36 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 3. INVESTMENT OPERATIONS (continued) Amortized Estimated December 31, 2000 Cost Fair Value ----------------- --------- ---------- (Dollars in thousands) Due within one year ......................... $ 51,001 $ 50,836 Due after one year through five years ....... 323,753 317,862 Due after five years through ten years ...... 45,812 44,891 Due after ten years ......................... 8,063 7,610 -------- -------- 428,629 421,199 Other asset-backed securities ............... 223,787 224,122 Mortgage-backed securities .................. 146,335 147,257 -------- -------- Total ....................................... $798,751 $792,578 ======== ======== An analysis of sales, maturities, and principal repayments of the Companies' fixed maturities portfolio follows:
Gross Gross Proceeds Amortized Realized Realized From Cost Gains Losses Sale -------- -------- -------- -------- (Dollars in thousands) For the year ended December 31, 2000: Scheduled principal repayments, calls, and tenders ............................... $ 91,158 $ 122 $ (1) $ 91,279 Sales .................................... 120,125 285 (6,553) 113,857 -------- -------- -------- -------- Total .................................... $211,283 $ 407 $ (6,554) $205,136 ======== ======== ======== ======== For the year ended December 31, 1999: Scheduled principal repayments, calls, and tenders ............................... $141,346 $ 216 (174) $141,388 Sales .................................... 80,472 141 $ (1,454) 79,159 -------- -------- -------- -------- Total .................................... $221,818 $ 357 $ (1,628) $220,547 ======== ======== ======== ======== For the year ended December 31, 1998: Scheduled principal repayments, calls, and tenders ............................... $102,504 $ 60 $ (3) $102,561 Sales .................................... 43,204 518 (1,030) 42,692 -------- -------- -------- -------- Total .................................... $145,708 $ 578 $ (1,033) $145,253 ======== ======== ======== ========
37 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 3. INVESTMENT OPERATIONS (continued) Investment Valuation Analysis: The Companies analyze the investment portfolio at least quarterly in order to determine if the carrying value of any investment has been impaired. The carrying value of debt and equity securities is written down to fair value by a charge to realized losses when an impairment in value appears to be other than temporary. During the second quarter of 2000, Golden American determined that the carrying value of an impaired bond exceeded its estimated net realizable value. As a result, on June 30, 2000, Golden American recognized a total pre-tax loss of approximately $142,000 to reduce the carrying value of the bond to its net realizable value of $315,000 at December 31, 2000. During the fourth quarter of 1998, Golden American determined that the carrying value of two bonds exceeded their estimated net realizable value. As a result, at December 31, 1998, Golden American recognized a total pre-tax loss of $973,000 to reduce the carrying value of the bonds to their combined net realizable value of $2,919,000. During the second quarter of 1999, further information was received regarding these bonds and Golden American determined that the carrying value of the two bonds exceeded their estimated net realizable value. As a result, at June 30, 1999, Golden American recognized a total pre-tax loss of $1,639,000 to further reduce the carrying value of the bonds to their combined net realizable value of $1,137,000. During the year 2000, these bonds had no further reduction in carrying value. Investments on Deposit: At December 31, 2000 and 1999, affidavits of deposits covering bonds with a par value of $6,870,000 and $6,470,000, respectively, were on deposit with regulatory authorities pursuant to certain statutory requirements. Investment Diversifications: The Companies' investment policies related to the investment portfolio require diversification by asset type, company, and industry and set limits on the amount which can be invested in an individual issuer. Such policies are at least as restrictive as those set forth by regulatory authorities. The following percentages relate to holdings at December 31, 2000 and December 31, 1999. Fixed maturities included investments in basic industrials (29% in 2000, 29% in 1999), conventional mortgage-backed securities (20% in 2000, 22% in 1999), financial companies (14% in 2000, 16% in 1999), and other asset-backed securities (20% in 2000, 19% in 1999). Mortgage loans on real estate have been analyzed by geographical location with concentrations by state identified as California (15% in 2000, 12% in 1999) and Utah (9% in 2000, 10% in 1999). There are no other concentrations of mortgage loans on real estate in any state exceeding ten percent at December 31, 2000 and 1999. Mortgage loans on real estate have also been analyzed by collateral type with significant concentrations identified in office buildings (29% in 2000, 34% in 1999), industrial buildings (35% in 2000, 33% in 1999), retail facilities (18% in 2000, 19% in 1999), and multi-family apartments (10% in 2000, 10% in 1999). Equity securities are not significant to the Companies' overall investment portfolio. No investment in any person or its affiliates (other than bonds issued by agencies of the United States government) exceeded ten percent of stockholder's equity at December 31, 2000. 4. COMPREHENSIVE INCOME Comprehensive income includes all changes in stockholder's equity during a period except those resulting from investments by and distributions to the stockholder. Total comprehensive income (loss) for the Companies includes $606,000 for the year ended December 31, 2000 for First Golden and $(452,000) and $1,015,000 for the years ended December 31, 1999 and 1998, respectively. Other comprehensive income excludes net investment gains (losses) included in net income, which merely represent transfers from unrealized to realized gains and losses. These amounts total $(2,670,000), $(1,468,000) and $(2,133,000) in the years ended December 31, 2000, 1999 and 1998, respectively. Such amounts, which have been measured through the date of sale, are net of income taxes and adjustments to VPIF and DPAC totaling $(4,742,000), $(1,441,000) and $705,000 in the years ended December 31, 2000, 1999 and 1998, respectively. 38 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 5. FAIR VALUES OF FINANCIAL INSTRUMENTS SFAS No. 107, "Disclosures about Fair Value of Financial Instruments," requires disclosure of estimated fair value of all financial instruments, including both assets and liabilities recognized and not recognized in a company's balance sheet, unless specifically exempted. SFAS No. 119, "Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments," requires additional disclosures about derivative financial instruments. Most of the Companies' investments, investment contracts, and debt fall within the standards' definition of a financial instrument. Fair values for the Companies' insurance contracts other than investment contracts are not required to be disclosed. In cases where quoted market prices are not available, estimated fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accounting, actuarial, and regulatory bodies are continuing to study the methodologies to be used in developing fair value information, particularly as it relates to such things as liabilities for insurance contracts. Accordingly, care should be exercised in deriving conclusions about the Companies' business or financial condition based on the information presented herein. The Companies closely monitor the composition and yield of invested assets, the duration and interest credited on insurance liabilities, and resulting interest spreads and timing of cash flows. These amounts are taken into consideration in the Companies' overall management of interest rate risk, which attempts to minimize exposure to changing interest rates through the matching of investment cash flows with amounts expected to be due under insurance contracts. These assumptions may not result in values consistent with those obtained through an actuarial appraisal of the Companies' business or values that might arise in a negotiated transaction. The following compares carrying values as shown for financial reporting purposes with estimated fair values:
December 31 2000 1999 ----------------------- ----------------------- Estimated Estimated Carrying Fair Carrying Fair Value Value Value Value ---------- ---------- ---------- ---------- (Dollars in thousands) ASSETS Fixed maturities, available for sale .. $ 792,578 $ 792,578 $ 835,321 $ 835,321 Equity securities ..................... 6,791 6,791 17,330 17,330 Mortgage loans on real estate ......... 99,916 100,502 100,087 95,524 Policy loans .......................... 13,323 13,323 14,157 14,157 Short-term investments ................ 106,775 106,775 80,191 80,191 Cash and cash equivalents ............. 63,207 63,207 14,380 14,380 Separate account assets ............... 9,831,489 9,831,489 7,562,717 7,562,717 LIABILITIES Annuity products ...................... 1,047,932 962,810 1,017,105 953,546 Surplus notes ......................... 245,000 204,455 245,000 226,100 Revolving note payable ................ -- -- 1,400 1,400 Separate account liabilities .......... 9,831,489 9,831,489 7,562,717 7,562,717
39 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 5. FAIR VALUES OF FINANCIAL INSTRUMENTS (continued) The following methods and assumptions were used by the Companies in estimating fair values. Fixed maturities: Estimated fair values of conventional mortgage-backed securities not actively traded in a liquid market and publicly traded securities are estimated using a third party pricing process. This pricing process uses a matrix calculation assuming a spread over U.S. Treasury bonds based upon the expected average lives of the securities. Equity securities: Estimated fair values of equity securities, which consist of the Companies' investment in the portfolios underlying its separate accounts, are based upon the quoted fair value of individual securities comprising the individual portfolios. For equity securities not actively traded, estimated fair values are based upon values of issues of comparable returns and quality. Mortgage loans on real estate: Fair values are estimated by discounting expected cash flows, using interest rates currently offered for similar loans. Policy loans: Carrying values approximate the estimated fair value for policy loans. Short-term investments and cash and cash equivalents: Carrying values reported in the Companies' historical cost basis balance sheet approximate estimated fair value for these instruments due to their short-term nature. Separate account assets: Separate account assets are reported at the quoted fair values of the individual securities in the separate accounts. Annuity products: Estimated fair values of the Companies' liabilities for future policy benefits for the divisions of the variable annuity products with fixed interest guarantees and for supplemental contracts without life contingencies are stated at cash surrender value, the cost the Companies would incur to extinguish the liability. Surplus notes: Estimated fair value of the Companies' surplus notes were based upon discounted future cash flows using a discount rate approximating the current market value. Revolving note payable: Carrying value reported in the Companies' historical cost basis balance sheet approximates estimated fair value for this instrument, as the agreement carries a variable interest rate provision. Separate account liabilities: Separate account liabilities are reported at full account value in the Companies' historical cost balance sheet. Estimated fair values of separate account liabilities are equal to their carrying amount. 6. VALUE OF PURCHASED IN FORCE As a result of the merger, a portion of the purchase price was allocated to the right to receive future cash flows from existing insurance contracts. This allocated cost represents VPIF, which reflects the value of those purchased policies calculated by discounting actuarially determined expected future cash flows at the discount rate determined by the purchaser. Interest was accrued at a rate of 7.32% during 2000 (7.33% during 1999, and 7.29% during 1998). 40 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 6. VALUE OF PURCHASED IN FORCE (continued) A reconciliation of the change in the VPIF asset follows: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Beginning balance ......................... $ 31,727 $ 35,977 $ 43,174 Accretion of interest .................. 2,016 2,372 2,802 Amortization of asset .................. (6,817) (8,610) (7,526) Adjustment for unrealized gains (losses) (984) 1,988 (203) Purchase price adjustment to opening balance sheet ....................... -- -- (2,270) -------- -------- -------- Ending balance ............................ $ 25,942 $ 31,727 $ 35,977 ======== ======== ======== Based on current conditions and assumptions as to the impact of future events on acquired policies in force, the expected approximate net amortization relating to VPIF as of December 31, 2000, is $3.9 million in 2001, $3.6 million in 2002, $3.0 million in 2003, $2.4 million in 2004, and $1.9 million in 2005. Actual amortization may vary based upon changes in assumptions and experience. 7. INCOME TAXES Golden American files a consolidated federal income tax return. Under the Internal Revenue Code, a newly acquired insurance company cannot file as part of the Parent's consolidated tax return for 5 years. At December 31, 2000, the Companies have net operating loss ("NOL") carryforwards for federal income tax purposes of approximately $189,656,000. Approximately $5,094,000, $3,354,000, $50,449,000, $94,078,000 and $36,681,000 of these NOL carryforwards are available to offset future taxable income of the Companies through the years 2011, 2012, 2018, 2019 and 2020, respectively. INCOME TAX EXPENSE (BENEFIT) Income tax expense (benefit) included in the consolidated financial statements follows: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Current ................................... $ (46) $ -- $ -- Deferred .................................. 13,728 8,523 5,279 -------- -------- -------- $ 13,682 $ 8,523 $ 5,279 ======== ======== ======== 41 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 7. INCOME TAXES (continued) The effective tax rate on income before income taxes is different from the prevailing federal income tax rate. A reconciliation of this difference follows: Year Ended December 31 2000 1999 1998 -------- -------- -------- (Dollars in thousands) Income before income taxes ................ $ 32,862 $ 19,737 $ 10,353 ======== ======== ======== Income tax at federal statutory rate ...... $ 11,502 $ 6,908 $ 3,624 Tax effect of: Goodwill amortization ................. 1,322 1,322 1,322 Meals and entertainment ............... 292 199 157 Other items ........................... 566 94 176 -------- -------- -------- Income tax expense ........................ $ 13,682 $ 8,523 $ 5,279 ======== ======== ======== DEFERRED INCOME TAXES The tax effect of temporary differences giving rise to the Companies' deferred income tax assets and liabilities at December 31, 2000 and 1999 follows:
December 31 2000 1999 --------- --------- (Dollars in thousands) Deferred tax assets: Net unrealized depreciation of securities at fair value .......... $ 637 $ -- Net unrealized depreciation of available for sale fixed maturities 779 3,745 Future policy benefits ........................................... 163,691 133,494 Goodwill ......................................................... 15,111 16,323 Net operating loss carryforwards ................................. 66,380 56,630 Other ............................................................ 1,333 1,333 --------- --------- 247,931 $ 211,525 Deferred tax liabilities: Net unrealized appreciation of securities at fair value .......... -- (832) Fixed maturity securities ........................................ (17,774) (17,774) Deferred policy acquisition costs ................................ (184,743) (154,706) Mortgage loans on real estate .................................... (715) (715) Value of purchased insurance in force ............................ (8,512) (10,462) Other ............................................................ (25,724) (1,348) --------- --------- (237,468) (185,837) --------- --------- Valuation allowance ................................................. (1,416) (3,745) --------- --------- Deferred income tax asset ........................................... $ 9,047 $ 21,943 ========= =========
At December 31, 2000, the Company reported, for financial statement purposes, unrealized losses on certain investments, which have not been recognized for tax purposes. Since it is uncertain as to whether these capital losses, if ever realized, could be utilized to offset capital gains, a valuation allowance has been established for the tax effect of the financial statement losses. 42 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 8. RETIREMENT PLANS AND EMPLOYEE STOCK COMPENSATION DEFINED BENEFIT PLANS In 2000, 1999 and 1998, the Companies were allocated their share of the pension liability associated with their employees. The Companies' employees are covered by the employee retirement plan of an affiliate, Equitable Life. Further, Equitable Life sponsors a defined contribution plan that is qualified under Internal Revenue Code Section 401(k). The following tables summarize the benefit obligations and the funded status for pension benefits over the two-year period ended December 31, 2000: 2000 1999 ------- ------- (Dollars in thousands) Change in benefit obligation: Benefit obligation at January 1 ............... $ 4,221 $ 4,454 Service cost .................................. 1,569 1,500 Interest cost ................................. 554 323 Actuarial (gain) loss ......................... 1,562 (2,056) ------- ------- Benefit obligation at December 31 ............. $ 7,906 $ 4,221 ======= ======= Funded status: Funded status at December 31 .................. $(7,906) $(4,221) Unrecognized past service cost ................ 141 -- Unrecognized net loss ......................... 1,627 210 ------- ------- Net amount recognized ......................... $(6,138) $(4,011) ======= ======= The Companies' plan assets were held by Equitable Life, an affiliate. During 1998, the Equitable Life Employee Pension Plan began investing in an undivided interest of the ING-NA Master Trust (the "Master Trust"). Boston Safe Deposit and Trust Company holds the Master Trust's investment assets. The weighted-average assumptions used in the measurement of the Companies' benefit obligation follows: December 31 2000 1999 ------ ------ Discount rate .................................... 7.75% 8.00% Expected return on plan assets ................... 9.25 9.25 Rate of compensation increase .................... 5.00 5.00 The following table provides the net periodic benefit cost for the fiscal years 2000, 1999, and 1998: Year Ended December 31 2000 1999 1998 ------ ------ ------ (Dollars in thousands) Service cost ............................... $1,569 $1,500 $1,138 Interest cost .............................. 554 323 97 ------ ------ ------ Net periodic benefit cost .................. $2,123 $1,823 $1,235 ====== ====== ====== 43 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 8. RETIREMENT PLANS AND EMPLOYEE STOCK COMPENSATION (continued) There were no gains or losses resulting from curtailments or settlements during 2000, 1999, or 1998. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $7,906,000, $4,701,000, and $0, respectively, as of December 31, 2000 and $4,221,000, $2,488,000, and $0, respectively, as of December 31, 1999. PHANTOM STOCK OPTION PLAN The Phantom Stock Option Plan (the "Phantom Plan"), which covers certain key employees, is similar to a standard stock option plan; however, the phantom share option entitles the holder to a cash benefit in Dutch Guilders linked to the rise in value of ING ordinary shares on the Amsterdam Stock Exchange. The plan participants are entitled to any appreciation in the value of ING ordinary shares over the Phantom Plan option price (strike price) of 53.85 Euros for options issued on July 1, 1999, 140.40 Dutch Guilders for options issued on May 26, 1998, and 85.10 Dutch Guilders for options issued on May 23, 1997, not the ordinary shares themselves. Options are granted at fair value on the date of grant. Options in the Phantom Plan are subject to forfeiture to ING should the individuals terminate their relationship with ING before the three-year initial retention period has elapsed. All options expire five years from the date of grant. On July 1, 1999, ING issued 34,750 options to employees of Golden American related to this plan at a strike price of 53.85 Euros. On May 26, 1998, ING issued 42,400 options related to this plan at a strike price of 140.40 Dutch Guilders. Since the strike price at December 31, 1998 was higher than the ING share price, there was no compensation expense related to these options in 1998. On May 23, 1997, ING issued 3,500 options related to this plan at a strike price of 85.10 Dutch Guilders. Since the strike price was lower than the ING share price at December 31, 1998, Golden American incurred $46,000 of compensation expense related to these options during 1998. No expense was recognized in 1999 related to the above options. As of December 31, 1999, 58,250 options remain outstanding. During 2000, the Phantom Plan liability was transferred to ING. As of December 31, 2000, the Companies held no liabilities under the Phantom Plan. There were no expenses incurred related to this plan during the year ended December 31, 2000. 9. RELATED PARTY TRANSACTIONS Operating Agreements: Directed Services, Inc. ("DSI"), an affiliate, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) and distributor of the variable insurance products issued by the Companies. DSI is authorized to enter into agreements with broker/dealers to distribute the Companies' variable insurance products and appoint representatives of the broker/dealers as agents. For the years ended December 31, 2000, 1999 and 1998, the Companies paid commissions to DSI totaling $208,883,000, $181,536,000, and $117,470,000, respectively. Golden American provides certain managerial and supervisory services to DSI. The fee paid by DSI for these services is calculated as a percentage of average assets in the variable separate accounts. For the years ended December 31, 2000, 1999 and 1998, the fee was $21,296,000, $10,136,000, and $4,771,000, respectively. 44 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 9. RELATED PARTY TRANSACTIONS (continued) Effective January 1, 1998, the Companies have an asset management agreement with ING Investment Management LLC ("ING IM"), an affiliate, in which ING IM provides asset management and accounting services. Under the agreement, the Companies record a fee based on the value of the assets under management. The fee is payable quarterly. For the years ended December 31, 2000, 1999 and 1998, the Companies incurred fees of $2,521,000, $2,227,000 and $1,504,000, respectively, under this agreement. Golden American has a guaranty agreement with Equitable Life Insurance Company of Iowa ("Equitable Life"), an affiliate. In consideration of an annual fee, payable June 30, Equitable Life guarantees to Golden American that it will make funds available, if needed, to Golden American to pay the contractual claims made under the provisions of Golden American's life insurance and annuity contracts. The agreement is not, and nothing contained therein or done pursuant thereto by Equitable Life shall be deemed to constitute, a direct or indirect guaranty by Equitable Life of the payment of any debt or other obligation, indebtedness, or liability, of any kind or character whatsoever, of Golden American. The agreement does not guarantee the value of the underlying assets held in separate accounts in which funds of variable life insurance and variable annuity policies have been invested. The calculation of the annual fee is based on risk based capital. On June 30, 2000, Golden American incurred a fee of $7,000 under this agreement. No annual fee was paid in 1999. Golden American provides certain advisory, computer, and other resources and services to Equitable Life. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $6,193,000, $6,107,000 and $5,833,000 for the years ended December 31, 2000, 1999 and 1998, respectively. The Companies have a service agreement with Equitable Life in which Equitable Life provides administrative and financial related services. Under this agreement, the Companies incurred expenses of $1,270,000, $1,251,000 and $1,058,000 for the years ended December 31, 2000, 1999 and 1998, respectively. First Golden provided resources and services to DSI. Revenues for these services, which reduce general expenses incurred by the Companies, totaled $223,000, $387,000, and $75,000 for the years ended December 31, 2000, 1999 and 1998, respectively. Golden American provides resources and services to ING Mutual Funds Management Co., LLC, an affiliate. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $455,000 and $244,000 for the years ended December 31, 2000 and 1999, respectively. Golden American provides resources and services to United Life & Annuity Insurance Company, an affiliate. Revenues for these services, which reduced general expenses incurred by Golden American, totaled $593,000 and $460,000 for the years ended December 31, 2000 and 1999, respectively. The Companies provide resources and services to Security Life of Denver Insurance Company, an affiliate. Revenues for these services, which reduced general expenses incurred by the Companies, totaled $261,000 and $216,000 for the years ended December 31, 2000 and 1999, respectively. The Companies provide resources and services to Southland Life Insurance Company, an affiliate. Revenues for these services, which reduce general expenses incurred by the Companies, totaled $115,000 and $103,000 for the years ended December 31, 2000 and 1999, respectively. 45 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 9. RELATED PARTY TRANSACTIONS (continued) In 2000, 1999, and 1998, the Companies received 11.3%, 10.0%, and 9.6% of total premiums, net of reinsurance, for variable products sold through eight affiliates as noted in the following table: Year Ended December 31 2000 1999 1998 ------- ------- ------- (Dollars in thousands) LSSI ....................................... $ 127.0 $ 168.5 $ 122.9 Vestax Securities Corporation .............. 47.2 88.1 44.9 DSI ........................................ 1.4 2.5 13.6 Multi-Financial Securities Corporation ..... 38.6 44.1 13.4 IFG Network Securities, Inc. ............... 23.1 25.8 3.7 Washington Square .......................... 44.6 -- -- Primevest .................................. 6.2 -- -- Compulife .................................. 2.7 -- -- ------- ------- ------- Total ...................................... $ 290.8 $ 329.0 $ 198.5 ======= ======= ======= Modified Coinsurance Agreement: On June 30, 2000, effective January 1, 2000, Golden American entered into a modified coinsurance agreement with Equitable Life, an affiliate, covering a considerable portion of Golden American's variable annuities issued on or after January 1, 2000, excluding those with an interest rate guarantee. The financial statements are presented net of the effects of the agreement. Under this agreement, Golden American received a net reimbursement of expenses and charges of $218.8 million. This was offset by a decrease in deferred acquisition costs of $223.7 million. As at December 31, 2000, Golden American also had a payable to Equitable Life of $16.3 million due to the overpayment by Equitable Life of the cash settlement for the modified coinsurance agreement. Reinsurance Agreement Covering Minimum Guaranteed Benefits: On December 28, 2000, Golden American entered into a reinsurance agreement with Security Life of Denver International Limited, an affiliate, covering variable annuity minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued on or after January 1, 2000. An irrevocable letter of credit was obtained through Bank of New York in the amount of $10,500,000 related to this agreement. Under this agreement, Golden American recorded a reinsurance recoverable of $14.6 million at December 31, 2000. Reciprocal Loan Agreement: Golden American maintains a reciprocal loan agreement with ING America Insurance Holdings, Inc. ("ING AIH"), a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which became effective January 1, 1998 and expires December 31, 2007, Golden American and ING AIH can borrow up to $65,000,000 from one another. Prior to lending funds to ING AIH, Golden American must obtain the approval from the Department of Insurance of the State of Delaware. Interest on any Golden American borrowings is charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Interest on any ING AIH borrowings is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under this agreement, Golden American incurred interest expense of $481,000, $815,000 and $1,765,000 for the years ended December 31, 2000, 1999 and 1998, respectively. At December 31, 2000, 1999 and 1998, Golden American did not have any borrowings or receivables from ING AIH under this agreement. 46 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 9. RELATED PARTY TRANSACTIONS (continued) Line of credit: Golden American maintained a line of credit agreement with Equitable to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which became effective December 1, 1996 and expired December 31, 1997, Golden American could borrow up to $25,000,000. Interest on any borrowings was charged at the rate of Equitable's monthly average aggregate cost of short-term funds plus 1.00%. Under this agreement, Golden American incurred interest expense of $211,000 for the year ended December 31, 1998. The outstanding balance was paid by a capital contribution and with funds borrowed from ING AIH. Surplus Notes: On December 30, 1999, Golden American issued an 8.179% surplus note in the amount of $50,000,000 to Equitable Life. The note matures on December 29, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $4,112,000 for the year ended December 31, 2000. Golden American incurred no interest expense during the year ended December 31, 1999. On December 8, 1999, Golden American issued a 7.979% surplus note in the amount of $35,000,000 to First Columbine Life Insurance Company ("First Columbine"), an affiliate. The note matures on December 7, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $2,961,000 and $0 for the years ended December 31, 2000 and 1999, respectively. On September 30, 1999, Golden American issued a 7.75% surplus note in the amount of $75,000,000 to ING AIH. The note matures on September 29, 2029. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $5,813,000 in 2000 and $1,469,000 in 1999. On December 30, 1999, ING AIH assigned the note to Equitable Life. On December 30, 1998, Golden American issued a 7.25% surplus note in the amount of $60,000,000 to Equitable Life. The note matures on December 29, 2028. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Under this agreement, Golden American incurred interest expense of $4,350,000 in 2000 and 1999. Golden American incurred no interest in 1998. On December 17, 1996, Golden American issued an 8.25% surplus note in the amount of $25,000,000 to Equitable. The note matures on December 17, 2026. Payment of the note and related accrued interest is subordinate to payments due to policyholders, claimant, and beneficiary claims, as well as debts owed to all other classes of debtors of Golden American. Any payment of principal made is subject to the prior approval of the Delaware Insurance Commissioner. Golden American incurred interest totaling $2,063,000 in 2000, unchanged from 1999 and 1998. On December 17, 1996, Golden American contributed the $25,000,000 to First Golden acquiring 200,000 shares of common stock (100% of outstanding stock). 47 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 9. RELATED PARTY TRANSACTIONS (continued) Stockholder's Equity: During 2000, 1999 and 1998, Golden American received capital contributions from its Parent of $80,000,000, $121,000,000 and $122,500,000, respectively. As at December 31, 2000, Golden American also had a receivable of $35,000,000 from capital contributions made by its Parent. 10. COMMITMENTS AND CONTINGENCIES Reinsurance: At December 31, 2000, the Companies had reinsurance treaties with six unaffiliated reinsurers and three affiliated reinsurers covering a significant portion of the mortality risks and guaranteed death and living benefits under its variable contracts. Golden American remains liable to the extent reinsurers do not meet their obligations under the reinsurance agreements. Reinsurance ceded in force for life mortality risks were $105,334,000, and $119,575,000 at December 31, 2000 and 1999, respectively. At December 31, 2000 and 1999, the Companies have a net receivable of $33,973,000 and $14,834,000, respectively, for reserve credits, reinsurance claims, or other receivables from these reinsurers comprised of $16,462,000 and $493,000, respectively, for claims recoverable from reinsurers, $4,007,000 and $1,201,000, respectively, for a payable for reinsurance premiums, and $21,518,000 and $15,542,000, respectively, for a receivable from an unaffiliated reinsurer. Included in the accompanying financial statements, excluding the modified coinsurance agreements, are net considerations to reinsurers of $21,655,000, $9,883,000 and $4,797,000 and net policy benefits recoveries of $8,927,000, $3,059,000 and $2,170,000 for the years ended December 31, 2000, 1999 and 1998, respectively. On June 30, 2000, effective January 1, 2000, Golden American entered into a modified coinsurance agreement with Equitable Life, an affiliate, covering a considerable portion of Golden American's variable annuities issued on or after January 1, 2000, excluding those with an interest rate guarantee. At December 31, 2000, Golden American had received a total settlement of $218.8 million under this agreement. The carrying value of the separate account liabilities covered under this agreement represent 17.6% of total separate account liabilities outstanding at December 31, 2000. Golden American remains liable to the extent Equitable Life does not meet its obligations under the agreement. The accompanying statement of operations, statement of changes in stockholder's equity and statement of cash flows are presented net of the effects of the agreement. On December 28, 2000, Golden American entered into a reinsurance agreement with Security Life of Denver International Limited, an affiliate, covering variable annuity minimum guaranteed death benefits and guaranteed living benefits of variable annuities issued on or after January 1, 2000. An irrevocable letter of credit was obtained through Bank of New York in the amount of $10,500,000 related to this agreement. On December 29, 2000, First Golden entered into a reinsurance treaty with London Life Reinsurance Company of Pennsylvania, an unaffiliated reinsurer, covering the minimum guaranteed death benefits of First Golden's variable annuities issued on or after January 1, 2000. Effective June 1, 1994, Golden American entered into a modified coinsurance agreement with an unaffiliated reinsurer. The accompanying financial statements are presented net of the effects of the treaty which increased income by $736,000, $1,729,000, $1,022,000 for the years ended December 31, 2000, 1999 and 1998, respectively. Guaranty Fund Assessments: Assessments are levied on the Companies by life and health guaranty associations in most states in which the Companies are licensed to cover losses of policyholders of insolvent or rehabilitated insurers. In some states, these assessments can be partially recovered through a reduction in future premium taxes. The Companies cannot predict whether and to what extent legislative initiatives may affect the right to offset. The associated cost for a particular insurance company can vary significantly based upon its fixed account premium volume by line of business and state premiums as well as its potential for 48 GOLDEN AMERICAN LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2000 10. COMMITMENTS AND CONTINGENCIES (continued) premium tax offset. The Companies have established an undiscounted reserve to cover such assessments, review information regarding known failures, and revise estimates of future guaranty fund assessments. Accordingly, the Companies accrued and charged to expense an additional $3,000, $3,000 and $1,123,000 for the years ended December 31, 2000, 1999 and 1998, respectively. At December 31, 2000 and 1999, the Companies have an undiscounted reserve of $2,430,000, and $2,444,000, respectively, to cover estimated future assessments (net of related anticipated premium tax credits) and have established an asset totaling $733,000, and $618,000, respectively, for assessments paid which may be recoverable through future premium tax offsets. The Companies believe this reserve is sufficient to cover expected future guaranty fund assessments based upon previous premiums and known insolvencies at this time. Litigation: The Companies, like other insurance companies, may be named or otherwise involved in lawsuits, including class action lawsuits and arbitrations. In some class action and other actions involving insurers, substantial damages have been sought and/or material settlement or award payments have been made. The Companies currently believe no pending or threatened lawsuits or actions exist that are reasonably likely to have a material adverse impact on the Companies. Vulnerability from Concentrations: The Companies have various concentrations in the investment portfolio (see Note 3 for further information). The Companies' asset growth, net investment income, and cash flow are primarily generated from the sale of variable insurance products and associated future policy benefits and separate account liabilities. Substantial changes in tax laws that would make these products less attractive to consumers and extreme fluctuations in interest rates or stock market returns, which may result in higher lapse experience than assumed, could cause a severe impact to the Companies' financial condition. A broker/dealer, having at least ten percent of total net premiums, generated 11% of the Companies' sales in 2000 (28% and 26% by two broker/dealers during 1999 and 1998, respectively). Two broker dealers, having at least ten percent of total gross premiums, generated 21% of the Companies' sales in 2000 (30% and 27% by two broker/dealers during 1999 and 1998, respectively). The Premium Plus product generated 71% of the Companies' sales during 2000 (79% during 1999 and 63% during 1998). Leases: The Companies lease their home office space, certain other equipment, and capitalized computer software under operating leases which expire through 2020. During the years ended December 31, 2000, 1999 and 1998, rent expense totaled $2,874,000, $2,273,000, and $1,241,000, respectively. At December 31, 2000, minimum rental payments due under all non-cancelable operating leases with initial terms of one year or more are: 2001 - $3,790,000; 2002 - $3,257,000; 2003 - $2,611,000; 2004 - $2,419,000; 2005 - $2,419,000, and 2006 and thereafter - $38,700,000. Revolving Note Payable: To enhance short-term liquidity, the Companies established a revolving note payable with SunTrust Bank, Atlanta (the "Bank") which expires July 30, 2001. The note was approved by the Boards of Directors of Golden American and First Golden on August 5, 1998 and September 29, 1998, respectively. The total amount the Companies may have outstanding is $85,000,000, of which Golden American and First Golden have individual credit sublimits of $75,000,000 and $10,000,000, respectively. The note accrues interest at an annual rate equal to: (1) the cost of funds for the Bank for the period applicable for the advance plus 0.225% or (2) a rate quoted by the Bank to the Companies for the advance. The terms of the agreement require the Companies to maintain the minimum level of Company Action Level Risk Based Capital as established by applicable state law or regulation. During the years ended December 31, 2000, 1999 and 1998, the Companies incurred interest expense of $87,000, $198,000 and $352,000, respectively. At December 31, 2000, there were no amounts outstanding under this agreement. At December 31, 1999, the Companies had a $1,400,000 note payable to the Bank under this agreement. 49 UNAUDITED FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B The unaudited financial statements of Separate Account B for the nine months ending September 30, 2001 are listed below and are included in this Statement of Additional Information: Unaudited Financial Statements Statements of Assets and Liabilities (Unaudited) Statements of Operations(Unaudited) Statements of Changes in Net Assets (Unaudited) Notes to Financial Statements (Unaudited) -------------------------------------------------------------------------------- UNAUDITED FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B -------------------------------------------------------------------------------- For the Nine Months Ended September 30, 2001 FINANCIAL STATEMENTS - UNAUDITED Golden American Life Insurance Company Separate Account B AS OF SEPTEMBER 30, 2001 50 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B FINANCIAL STATEMENTS - UNAUDITED PERIOD ENDED SEPTEMBER 30, 2001 CONTENTS Statements of Assets and Liabilities.......................................... Statements of Operations...................................................... Statements of Changes in Net Assets........................................... Notes to Financial Statements................................................. 51
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) LIMITED LIQUID ASSET MATURITY BOND LARGE CAP HARD ASSETS ALL CAP REAL ESTATE SERIES SERIES VALUE SERIES SERIES SERIES SERIES -------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $1,175,660 $372,151 $182,170 $34,833 $217,079 $119,605 -------------------------------------------------------------------------------------------------- Total assets............. 1,175,660 372,151 182,170 34,833 217,079 119,605 -------------------------------------------------------------------------------------------------- NET ASSETS...................... $1,175,660 $372,151 $182,170 $34,833 $217,079 $119,605 ================================================================================================== NET ASSETS: Accumulation units....... $1,175,597 $371,924 $182,170 $34,788 $217,079 $119,494 Contracts in payout (annuitization) period.. 58 227 - 45 - 111 Retained in Separate Account B by Golden American Life Insurance Company....... 5 - - - - - -------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $1,175,660 $372,151 $182,170 $34,833 $217,079 $119,605 ================================================================================================== Total number of shares........... 1,175,660 32,559,181 20,890,988 3,777,995 20,733,404 7,555,606 ================================================================================================== Cost............................ $1,175,660 $357,016 $218,155 $41,355 $245,127 $116,361 ================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
52
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) FULLY EQUITY CAPITAL RISHING MANAGED INCOME APPRECIATION DIVIDENDS VALUE EQUITY STRATEGIC SERIES SERIES SERIES SERIES SERIES EQUITY SERIES ------------------------------------------------------------------------------------------------ ASSETS Investments in mutual funds at market value... $538,636 $336,484 $385,316 $661,330 $164,587 $201,208 ------------------------------------------------------------------------------------------------ Total assets............. 538,636 336,484 385,316 661,330 164,587 201,208 ------------------------------------------------------------------------------------------------ NET ASSETS...................... $538,636 $336,484 $385,316 $661,330 $164,587 $201,208 ================================================================================================ NET ASSETS: Accumulation units....... $537,813 $335,584 $384,778 $661,123 $164,562 $200,895 Contracts in payout (annuitization) period.. 793 895 534 203 21 313 Retained in Separate Account B by Golden American Life Insurance Company....... 30 5 4 4 4 - ------------------------------------------------------------------------------------------------ TOTAL NET ASSETS................. $538,636 $336,484 $385,316 $661,330 $164,587 $201,208 ================================================================================================ Total number of shares........... 31,045,323 30,673,191 29,892,605 35,365,172 11,607,998 19,280,750 ================================================================================================ Cost............................ $522,365 $365,588 $549,136 $795,146 $187,862 $343,513 ================================================================================================ (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
53
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) MID-CAP CAPITAL SMALL CAP MANAGED GROWTH GROWTH RESEARCH TOTAL RETURN SERIES GLOBAL SERIES SERIES SERIES SERIES SERIES ------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $351,882 $211,482 $712,516 $307,314 $557,376 $701,319 ------------------------------------------------------------------------------------------------- Total assets............. 351,882 211,482 712,516 307,314 557,376 701,319 ------------------------------------------------------------------------------------------------- NET ASSETS...................... $351,882 $211,482 $712,516 $307,314 $557,376 $701,319 ================================================================================================= NET ASSETS: Accumulation units....... $351,802 $211,329 $712,372 $307,314 $557,376 $701,310 Contracts in payout (annuitization) period.. 76 148 140 - - - Retained in Separate Account B by Golden American Life Insurance Company....... 4 5 4 - - 9 ------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $351,882 $211,482 $712,516 $307,314 $557,376 $701,319 ================================================================================================= Total number of shares........... 42,242,723 23,112,681 62,391,877 29,836,259 38,020,209 43,479 ================================================================================================= Cost............................ $436,408 $245,619 $1,074,959 $483,113 $819,278 $713,155 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
54
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) ASSET DIVERSIFIED GROWTH CORE BOND DEVELOPING ALLOCATION MID-CAP INVESTORS SERIES SERIES WORLD SERIES GROWTH SERIES SERIES SERIES ----------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $888,516 $85,251 $57,548 $31,758 $35,195 $64,530 ----------------------------------------------------------------------------------------------- Total assets............. 888,516 85,251 57,548 31,758 35,195 64,530 ----------------------------------------------------------------------------------------------- NET ASSETS...................... $888,516 $85,251 $57,548 $31,758 $35,195 $64,530 =============================================================================================== NET ASSETS: Accumulation units....... $888,512 $85,247 $57,452 $31,754 $35,195 $64,530 Contracts in payout (annuitization) period.. - - 96 - - - Retained in Separate Account B by Golden American Life Insurance Company....... 4 4 - 4 - - ----------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $888,516 $85,251 $57,548 $31,758 $35,195 $64,530 =============================================================================================== Total number of shares........... 70,854,533 8,641,903 10,113,894 3,863,544 4,517,877 6,735,896 =============================================================================================== Cost............................ $1,474,414 $83,268 $67,102 $34,621 $42,159 $74,678 =============================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
55
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SPECIAL INTERNET WORLDWIDE GROWTH GROWTH AND SITUATIONS TOLLKEEPER GROWTH OPPORTUNITIES MAGNACAP INCOME SERIES SERIES SERIES FUND PORTFOLIO (a) PORTFOLIO (a) ------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $64,334 $17,797 $2,037 $13,455 $2,069 $2,849 ------------------------------------------------------------------------------------------------- Total assets............. 64,334 17,797 2,037 13,455 2,069 2,849 ------------------------------------------------------------------------------------------------- NET ASSETS...................... $64,334 $17,797 $2,037 $13,455 $2,069 $2,849 ================================================================================================= NET ASSETS: Accumulation units....... $64,334 $17,797 $2,037 $13,455 $2,069 $2,849 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - ------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $64,334 $17,797 $2,037 $13,455 $2,069 $2,849 ================================================================================================= Total number of shares........... 7,641,106 2,411,489 327,567 2,082,787 436,470 344,075 ================================================================================================= Cost............................ $72,875 $21,691 $2,810 $16,424 $2,573 $3,122 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
56
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMALL CAP CONVERTIBLE GROWTH AND LARGE CAP PIMCO HIGH PIMCO STOCKSPLUS OPPORTUNITES CLASS INCOME GROWTH YIELD BOND GROWTH AND INCOME PORTFOLIO (a) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO PORTFOLIO --------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $5,399 $49 $101 $169 $210,497 $204,143 --------------------------------------------------------------------------------------------------- Total assets............. 5,399 49 101 169 210,497 204,143 --------------------------------------------------------------------------------------------------- NET ASSETS...................... $5,399 $49 $101 $169 $210,497 $204,143 =================================================================================================== NET ASSETS: Accumulation units....... $5,399 $49 $101 $169 $210,497 $204,143 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - --------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $5,399 $49 $101 $169 $210,497 $204,143 =================================================================================================== Total number of shares........... 335,774 4,991 10,726 19,470 27,444,252 23,813,075 =================================================================================================== Cost............................ $6,727 $49 $106 $187 $230,338 $300,808 =================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
57
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SP JENNISON SMITH BARNEY SMITH BARNEY PRUDENTIAL INTERNATIONAL SMITH BARNEY LARGE CAP INTERNATIONAL JENNISON GROWTH APPRECIATION HIGH INCOME VALUE EQUITY PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $17,409 $8,349 $696 $355 $534 $267 --------------------------------------------------------------------------------------------------- Total assets............. 17,409 8,349 696 355 534 267 --------------------------------------------------------------------------------------------------- NET ASSETS...................... $17,409 $8,349 $696 $355 $534 $267 =================================================================================================== NET ASSETS: Accumulation units....... $17,409 $8,349 $696 $355 $534 $267 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - --------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $17,409 $8,349 $696 $355 $534 $267 =================================================================================================== Total number of shares........... 1,103,942 1,662,813 35,256 43,771 30,477 25,146 =================================================================================================== Cost............................ $20,690 $9,306 $747 $530 $626 $397 =================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
58
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMITH BARNEY MONEY INTERNATIONAL ASSET GROWTH & HIGH QUALITY MARKET EQUITY ALLOCATION EQUITY INCOME BOND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $225 $150,506 $1,215 $763 $209 $148 --------------------------------------------------------------------------------------------- Total assets............. 225 150,506 1,215 763 209 148 --------------------------------------------------------------------------------------------- NET ASSETS...................... $225 $150,506 $1,215 $763 $209 $148 ============================================================================================= NET ASSETS: Accumulation units....... $225 $150,506 $1,215 $763 $209 $148 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - --------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $225 $150,506 $1,215 $763 $209 $148 ============================================================================================= Total number of shares........... 224,935 19,648,966 86,257 53,819 21,706 13,874 ============================================================================================= Cost............................ $225 $163,374 $1,492 $1,172 $242 $142 ============================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
59
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMALL COMPANY ALLIANCEBERNSTEIN GROWTH AND PREMIER VALUE GROWTH VALUE PORTFOLIO INCOME GROWTH GET FUND OPPORTUNITY PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) SERIES N (b) PORTFOLIO (b) ------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $67 $250 $473 $350 $32,590 $125 ------------------------------------------------------------------------------------------------- Total assets............. 67 250 473 350 32,590 125 ------------------------------------------------------------------------------------------------- NET ASSETS...................... $67 $250 $473 $350 $32,590 $125 ================================================================================================= NET ASSETS: Accumulation units....... $67 $250 $473 $350 $32,590 $125 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - ------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $67 $250 $473 $350 $32,590 $125 ================================================================================================= Total number of shares........... 7,062 26,823 23,707 16,034 3,227,195 10,095 ================================================================================================= Cost............................ $93 $263 $506 $365 $32,514 $138 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
60
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) INDEX PLUS INDEX PLUS INDEX PLUS TACTICAL EQUITY- LARGE CAP MID CAP SMALL CAP ALLOCATION INCOME GROWTH PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) ----------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $254 $288 $163 $192 $600 $267 ----------------------------------------------------------------------------------------------- Total assets............. 254 288 163 192 600 267 ----------------------------------------------------------------------------------------------- NET ASSETS...................... $254 $288 $163 $192 $600 $267 =============================================================================================== NET ASSETS: Accumulation units....... $254 $288 $163 $192 $600 $267 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - ----------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $254 $288 $163 $192 $600 $267 =============================================================================================== Total number of shares........... 19,786 24,304 16,527 16,645 29,032 9,343 =============================================================================================== Cost............................ $261 $315 $172 $194 $637 $291 =============================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
61
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) PPI MFS FINANCIAL HEALTH WORLDWIDE CAPITAL CONTRAFUND SERVICES SCIENCES UTILITIES GROWTH OPPORTUNITIES PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) -------------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $583 $160 $363 $68 $397 $173 -------------------------------------------------------------------------------------------------- Total assets............. 583 160 363 68 397 173 -------------------------------------------------------------------------------------------------- NET ASSETS...................... $583 $160 $363 $68 $397 $173 ================================================================================================== NET ASSETS: Accumulation units....... $583 $160 $363 $68 $397 $173 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - -------------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $583 $160 $363 $68 $397 $173 ================================================================================================== Total number of shares........... 31,165 13,783 21,076 4,917 15,753 7,581 ================================================================================================== Cost............................ $570 $166 $368 $71 $417 $199 ================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
62
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMALL PIONEER COMPANY GROWTH AND FUND VCT VCT SMALL- INCOME PORTFOLIO (b) PORTFOLIO (b) BULL (a) CAP (a) EUROPE 30 (a) FUND (b) ---------------------------------------------------------------------------------------------- ASSETS Investments in mutual funds at market value... $99 $383 $4,901 $4,865 $6,297 $143 ---------------------------------------------------------------------------------------------- Total assets............. 99 383 4,901 4,865 6,297 143 ---------------------------------------------------------------------------------------------- NET ASSETS...................... $99 $383 $4,901 $4,865 $6,297 $143 ============================================================================================== NET ASSETS: Accumulation units....... $99 $383 $4,901 $4,865 $6,297 $143 Contracts in payout (annuitization) period.. - - - - - - Retained in Separate Account B by Golden American Life Insurance Company....... - - - - - - ---------------------------------------------------------------------------------------------- TOTAL NET ASSETS................. $99 $383 $4,901 $4,865 $6,297 $143 ============================================================================================== Total number of shares........... 5,672 40,614 199,719 201,705 295,817 6,495 ============================================================================================== Cost............................ $106 $430 $5,509 $5,403 $6,225 $147 ============================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
63 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF ASSETS AND LIABILTIES - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) INTERNATIONAL GROWTH AND INCOME VOYAGER FUND (B) FUND (B) -------------------------------------- ASSETS Investments in mutual funds at market value... $195 $147 -------------------------------------- Total assets............. 195 147 -------------------------------------- NET ASSETS...................... $195 $147 ====================================== NET ASSETS: Accumulation units....... $195 $147 Contracts in payout (annuitization) period.. - - Retained in Separate Account B by Golden American Life Insurance Company....... - - -------------------------------------- TOTAL NET ASSETS................. $195 $147 ====================================== Total number of shares........... 21,578 36,308 ====================================== Cost............................ $205 $151 ====================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES. 64 (This page intentionally left blank.) 65
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) LIQUID LIMITED HARD REAL ASSET MATURITY LARGE CAP ASSETS ALL CAP ESTATE SERIES BOND SERIES VALUE SERIES SERIES SERIES SERIES -------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $25,995 $- $- $- $- $- -------------------------------------------------------------------------------------- Total investment income........... 25,995 - - - - - Expenses: Mortality and expense risk and other charges............ 9,725 2,867 1,834 453 2,168 1,085 Annual administrative charges. 252 54 26 11 38 29 Minimum death benefit guarantee charges............ 4 - - 1 - - Contingent deferred sales charges...................... 12,870 276 94 34 176 76 Other contract charges........ 211 50 100 3 101 20 Amort of deferred charges related to: Deferred sales load.... 95 21 - 4 1 8 Premium taxes.......... 31 1 1 - - - -------------------------------------------------------------------------------------- Total expenses.................... 23,188 3,269 2,055 506 2,484 1,218 -------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 2,807 (3,269) (2,055) (506) (2,484) (1,218) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... - 1,695 (342) (268) (526) 3,975 Capital gains distribution.... - - - - - - -------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... - 1,695 (342) (268) (526) 3,975 Net unrealized appreciation (depreciation) of investments.................. - 19,352 (35,286) (6,882) (26,704) (1,652) -------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $2,807 $17,778 $(37,683) $(7,656) $(29,714) $1,105 ====================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
66
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) FULLY EQUITY CAPITAL RISING EMERGING MARKET MANAGED INCOME APPRECIATION DIVIDENDS MARKETS MANAGER SERIES SERIES SERIES SERIES SERIES SERIES --------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $59 $19 --------------------------------------------------------------------------------- Total investment income........... - - - - 59 19 Expenses: Mortality and expense risk and other charges............ 4,991 3,526 5,260 8,901 93 545 Annual administrative charges. 116 96 137 227 4 - Minimum death benefit guarantee charges............ 1 3 - - - - Contingent deferred sales charges...................... 482 398 505 886 5 - Other contract charges........ 78 53 104 107 1 - Amort of deferred charges related to: Deferred sales load.... 45 55 40 79 3 19 Premium taxes.......... 1 1 2 2 - - --------------------------------------------------------------------------------- Total expenses.................... 5,714 4,132 6,048 10,202 106 564 --------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (5,714) (4,132) (6,048) (10,202) (47) (545) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... 10,113 (6,411) (7,053) 17,532 (1,106) 60 Capital gains distribution.... - - - - - 3,369 --------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... 10,113 (6,411) (7,053) 17,532 (1,106) 3,429 Net unrealized appreciation (depreciation) of investments.................. (1,233) (17,180) (98,390) (193,893) 898 (3,695) --------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $3,166 $(27,723) $(111,491) $(186,563) $(255) $(811) ================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
67
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) VALUE STRATEGIC MANAGED MID-CAP CAPITAL EQUITY EQUITY SMALL CAP GLOBAL GROWTH GROWTH SERIES SERIES SERIES SERIES SERIES SERIES ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ 2,208 3,508 5,147 2,708 12,428 5,051 Annual administrative charges. 54 95 138 58 322 137 Minimum death benefit guarantee charges............ - - - - 1 - Contingent deferred sales charges...................... 194 369 446 173 1,189 633 Other contract charges........ 28 104 106 96 268 64 Amort of deferred charges related to: Deferred sales load.... 21 7 12 35 46 8 Premium taxes.......... - - 1 1 ------------------------------------------------------------------------------- Total expenses.................... 2,505 4,083 5,849 3,071 14,255 5,893 ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (2,505) (4,083) (5,849) (3,071) (14,255) (5,893) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (1,962) (76,668) (279,948) (88,352) (565,361) (15,219) Capital gains distribution.... - - - - - - ------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (1,962) (76,668) (279,948) (88,352) (565,361) (15,219) Net unrealized appreciation (depreciation) of investments.................. (30,964) (52,348) 176,997 30,761 92,959 (126,795) ------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(35,431) $(133,099) $ (108,800) $(60,662) $(486,657) $(147,907) =============================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
68
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) TOTAL DEVELOPING ASSET RESEARCH RETURN GROWTH CORE BOND WORLD ALLOCATION SERIES SERIES SERIES SERIES SERIES GROWTH SERIES ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ---------------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ 8,334 7,811 14,556 567 856 205 Annual administrative charges. 210 173 434 9 24 1 Minimum death benefit guarantee charges............ - - 1 - - - Contingent deferred sales charges...................... 786 876 1,696 38 60 10 Other contract charges........ 151 121 284 16 20 14 Amort of deferred charges related to: Deferred sales load.... 18 16 20 - 5 - Premium taxes.......... 2 2 2 ---------------------------------------------------------------------------------------- Total expenses.................... 9,501 8,999 16,993 630 965 230 ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (9,501) (8,999) (16,993) (630) (965) (230) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (10,175) 1,015 (429,442) (1,232) (12,389) (13) Capital gains distribution.... - - - - - - ---------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (10,175) 1,015 (429,442) (1,232) (12,389) (13) Net unrealized appreciation (depreciation) of investments.................. (233,511) (39,324) (116,092) 3,879 (7,234) (2,847) ---------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(253,187) $(47,308) $(562,527) $2,017 $(20,588) $(3,090) ======================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
69
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) DIVERSIFIED GROWTH AND SPECIAL INTERNET WORLDWIDE MID-CAP INVESTORS INCOME SITUATIONS TOLLKEEPER GROWTH SERIES SERIES SERIES SERIES SERIES FUND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ 283 585 490 178 9 122 Annual administrative charges. 2 8 2 2 - 2 Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... 9 46 14 9 - 9 Other contract charges........ 20 28 29 10 - 8 Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... 1 - - ------------------------------------------------------------------------------- Total expenses.................... 314 667 536 199 9 141 ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (314) (667) (536) (199) (9) (141) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (150) (359) (116) (257) (33) (845) Capital gains distribution.... - - - - - - ------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (150) (359) (116) (257) (33) (845) Net unrealized appreciation (depreciation) of investments.................. (7,094) (9,913) (8,466) (3,540) (773) (2,754) ------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(7,558) $(10,939) $(9,118) $(3,996) $(815) $(3,740) =============================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
70
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) GROWTH SMALL CAP CONVERTIBLE GROWTH AND LARGE CAP OPPORTUNITIES MAGNACAP OPPORTUNITES CLASS INCOME GROWTH PORTFOLIO (a) PORTFOLIO (a) PORTFOLIO (a) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) ------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $1 $- $- $- $- ------------------------------------------------------------------------------------------- Total investment income........... - 1 - - - - Expenses: Mortality and expense risk and other charges............ 8 10 25 - - - Annual administrative charges. - - - - - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... - - 3 - - - Other contract charges........ - - 2 - - - Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ------------------------------------------------------------------------------------------- Total expenses.................... 8 10 30 - - - ------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (8) (9) (30) - - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (79) (6) (581) - - - Capital gains distribution.... - - - - - - ------------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (79) (6) (581) - - - Net unrealized appreciation (depreciation) of investments.................. (504) (273) (1,328) - (5) (18) ------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(591) $(288) $(1,939) $- $(5) $(18) =========================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
71
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) PIMCO STOCKSPLUS SP JENNISON SMITH PIMCO HIGH GROWTH AND PRUDENTIAL INTERNATIONAL BARNEY HIGH YIELD BOND INCOME JENNISON GROWTH APPRECIATION HIGH INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $12,232 $7,641 $- $19 $9 $50 ---------------------------------------------------------------------------------------- Total investment income........... 12,232 7,641 - 19 9 50 Expenses: Mortality and expense risk and other charges............ 2,448 2,884 194 84 9 4 Annual administrative charges. 48 67 2 1 - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... 286 341 37 11 - - Other contract charges........ 50 42 11 4 - - Amort of deferred charges related to: Deferred sales load.... 3 2 - - - - Premium taxes.......... - 1 - - - - ---------------------------------------------------------------------------------------- Total expenses.................... 2,835 3,337 244 100 9 4 ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 9,397 4,304 (244) (81) - 46 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (9,991) (12,367) (5,735) (2,658) - (29) Capital gains distribution.... - - 189 - - - ---------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (9,991) (12,367) (5,546) (2,658) - (29) Net unrealized appreciation (depreciation) of investments.................. (8,254) (47,658) (1,090) (859) (113) (55) ---------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(8,848) $(55,721) $(6,880) $(3,598) $ (113) $(38) ======================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
72
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMITH BARNEY SMITH BARNEY SMITH BARNEY LARGE CAP INTERNATIONAL MONEY INTERNATIONAL ASSET VALUE EQUITY MARKET EQUITY ALLOCATION EQUITY PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $9 $- $6 $- $23 $- ----------------------------------------------------------------------------------------- Total investment income........... 9 - 6 - 23 - Expenses: Mortality and expense risk and other charges............ 7 4 2 2,144 15 11 Annual administrative charges. - - - 48 - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... - - 16 227 4 5 Other contract charges........ - - - 32 - - Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ----------------------------------------------------------------------------------------- Total expenses.................... 7 4 18 2,451 19 16 ----------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 2 (4) (12) (2,451) 4 (16) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (8) 1 - (63,460) (10) (27) Capital gains distribution.... 22 - - - - - ----------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... 14 1 - (63,460) (10) (27) Net unrealized appreciation (depreciation) of investments.................. (112) (176) - 12,266 (208) (277) ----------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(96) $(179) $(12) $(53,645) $(214) $(320) ========================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
73
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) GROWTH & HIGH QUALITY SMALL COMPANY GROWTH AND PREMIER INCOME BOND GROWTH ALLIANCEBERNSTEIN INCOME GROWTH PORTFOLIO PORTFOLIO PORTFOLIO VALUE PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) ------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $5 $- $- $ - $- ------------------------------------------------------------------------------------------------ Total investment income........... - 5 - - - - Expenses: Mortality and expense risk and other charges............ 3 1 1 - - - Annual administrative charges. - - - - - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... - - - - - - Other contract charges........ - - - - - - Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ------------------------------------------------------------------------------------------------ Total expenses.................... 3 1 1 - - - ------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME (LOSS)...... (3) 4 (1) - - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (6) 1 (1) (3) (1) - Capital gains distribution.... - - - - - - ------------------------------------------------------------------------------------------------ Total realized gain (loss) on investments and capital gains distribution........... (6) 1 (1) (3) (1) - Net unrealized appreciation (depreciation) of investments.................. (39) 3 (15) (13) (33) (15) ------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(48) $8 $(17) $(16) $(34) $(15) ================================================================================================ (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
74
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) VALUE INDEX PLUS INDEX PLUS INDEX PLUS TACTICAL GET FUND OPPORTUNITY LARGE CAP MID CAP SMALL CAP ALLOCATION SERIES N (b) PORTFOLIO(b) PORTFOLIO(b) PORTFOLIO(b) PORTFOLIO(b) PORTFOLIO(b) ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ---------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ 14 - - - - - Annual administrative charges. - - - - - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... 1 - - - - - Other contract charges........ - - - - - - Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ---------------------------------------------------------------------------------- Total expenses.................... 15 - - - - - ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (15) - - - - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (1) - - (4) (3) - Capital gains distribution.... - - - - - - ---------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (1) - - (4) (3) - Net unrealized appreciation (depreciation) of investments.................. 76 (13) (7) (27) (9) (2) ---------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $60 $(13) $(7) $(31) $(12) $(2) ================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
75
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) EQUITY- FINANCIAL HEALTH INCOME GROWTH CONTRAFUND SERVICES SCIENCES UTILITIES PORTFOLIO(b) PORTFOLIO(b) PORTFOLIO(b) FUND (b) FUND (b) FUND (b) ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ---------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ 1 - - - - - Annual administrative charges. - - - - - - Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... - - - - - - Other contract charges........ - - - - - - Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ---------------------------------------------------------------------------------- Total expenses.................... 1 - - - - - ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (1) - - - - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... - - (5) - - - Capital gains distribution.... - - - - - - ---------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... - - (5) - - - Net unrealized appreciation (depreciation) of investments.................. (37) (24) 13 (6) (5) (3) ---------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(38) $(24) $8 $(6) $(5) $ (3) ================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
76
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) PPI MFS PIONEER FUND SMALL WORLDWIDE CAPITAL VCT COMPANY GROWTH OPPORTUNITIES PORTFOLIO VCT SMALL-CAP PORTFOLIO (a) PORTFOLIO (b) (b) PORTFOLIO (b) BULL (a) (a) ------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $- $- $- ------------------------------------------------------------------------------------- Total investment income........... - - - - - - Expenses: Mortality and expense risk and other charges............ - - - 1 36 50 Annual administrative charges. - - - - - 1 Minimum death benefit guarantee charges............ - - - - - - Contingent deferred sales charges...................... - - - - - 2 Other contract charges........ - - - - 2 1 Amort of deferred charges related to: Deferred sales load.... - - - - - - Premium taxes.......... - - - - - - ------------------------------------------------------------------------------------- Total expenses.................... - - - 1 38 54 ------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... - - - (1) (38) (54) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... - (2) - - (530) (1,434) Capital gains distribution.... - - - - - - ------------------------------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... - (2) - - (530) (1,434) Net unrealized appreciation (depreciation) of investments.................. (20) (26) (7) (47) (608) (538) ------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(20) $(28) $(7) $(48) $(1,176) $(2,026) ===================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
77
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) INTERNATIONAL GROWTH AND GROWTH EUROPE 30 INCOME AND INCOME VOYAGER (a) FUND (b) FUND (b) FUND (b) ---------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends..................... $- $- $- $ - ---------------------------------------------------------------- Total investment income........... - - - - Expenses: Mortality and expense risk and other charges............ 56 - - - Annual administrative charges. - - - - Minimum death benefit guarantee charges............ - - - - Contingent deferred sales charges...................... 2 - - - Other contract charges........ - - - - Amort of deferred charges related to: Deferred sales load.... - - - - Premium taxes.......... - - - - ---------------------------------------------------------------- Total expenses.................... 58 - - - ---------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (58) - - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments............... (3,657) - (3) - Capital gains distribution.... - - - - ---------------------------------------------------------------- Total realized gain (loss) on investments and capital gains distribution........... (3,657) - (3) - Net unrealized appreciation (depreciation) of investments.................. 72 (4) (10) (4) ---------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(3,643) $(4) $(13) $(4) ================================================================ (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
78
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) LIMITED LIQUID ASSET MATURITY BOND LARGE CAP HARD ASSETS ALL GROWTH ALL CAP SERIES SERIES VALUE SERIES SERIES SERIES SERIES ----------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $679,666 $200,958 $98,545 $41,509 $- $104,883 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... 2,807 (3,269) (2,055) (506) 1 (2,484) Net realized gain (loss) and capital distribution....... - 1,695 (342) (268) - (526) Net unrealized appreciation (depreciation)............. - 19,352 (35,286) (6,882) - (26,704) ----------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. 2,807 17,778 (37,683) (7,656) 1 (29,714) Changes from principal transactions: Purchase payments........... 434,260 67,516 85,035 5,587 41 84,601 Contract distributions and terminations............... (348,120) (10,739) (3,834) (1,403) 86 (6,196) Transfer payments from (to) Fixed Accounts and other Divisions.................. 407,046 96,638 40,107 (3,204) (128) 63,505 Additions to assets retained in the Account by Golden American Life Insurance Company.................... 1 - - - - - ----------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 493,187 153,415 121,308 980 (1) 141,910 ----------------------------------------------------------------------------------------------- Total increase (decrease)........ 495,994 171,193 83,625 (6,676) - 112,196 ----------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $1,175,660 $372,151 $182,170 $34,833 $- $217,079 =============================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
79
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) FULLY EQUITY CAPITAL RISING EMERGING REAL ESTATE MANAGED INCOME APPRECIATION DIVIDENDS MARKETS SERIES SERIES SERIES SERIES SERIES SERIES ------------------------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001..... $100,303 $345,651 $291,793 $477,934 $860,338 $19,953 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (1,218) (5,714) (4,132) (6,048) (10,202) (47) Net realized gain (loss) and capital distribution....... 3,975 10,113 (6,411) (7,053) 17,532 (1,106) Net unrealized appreciation (depreciation)............. (1,652) (1,233) (17,180) (98,390) (193,893) 898 ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations................. 1,105 3,166 (27,723) (111,491) (186,563) (255) Changes from principal transactions: Purchase payments........... 15,748 99,633 56,018 60,421 57,593 305 Contract distributions and terminations............... (3,201) (18,088) (14,461) (16,164) (28,517) (578) Transfer payments from (to) Fixed Accounts and other Divisions.................. 5,650 108,267 30,856 (25,385) (41,522) (19,424) Additions to assets retained in the Account by Golden American Life Insurance Company.................... - 7 1 1 1 - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions..... 18,197 189,819 72,414 18,873 (12,445) (19,697) ------------------------------------------------------------------------------------------------ Total increase (decrease)........ 19,302 192,985 44,691 (92,618) (199,008) (19,952) ------------------------------------------------------------------------------------------------ NET ASSETS AT SEPTEMBER 30, 2001.. $119,605 $538,636 $336,484 $385,316 $661,330 $1 ================================================================================================ (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
80
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) MARKET STRATEGIC MANAGED MID-CAP MANAGER VALUE EQUITY EQUITY SMALL CAP GLOBAL GROWTH SERIES SERIES SERIES SERIES SERIES SERIES ------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $6,619 $180,722 $359,734 $422,097 $228,347 $1,158,061 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (545) (2,505) (4,083) (5,849) (3,071) (14,255) Net realized gain (loss) and capital distribution....... 3,429 (1,962) (76,668) (279,948) (88,352) (565,361) Net unrealized appreciation (depreciation)............. (3,695) (30,964) (52,348) 176,997 30,761 92,959 ------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (811) (35,431) (133,099) (108,800) (60,662) (486,657) Changes from principal transactions: Purchase payments........... (168) 23,665 33,494 55,463 44,946 149,874 Contract distributions and terminations............... (10) (6,652) (10,507) (13,866) (7,724) (35,423) Transfer payments from (to) Fixed Accounts and other Divisions.................. (5,630) 2,282 (48,414) (3,013) 6,574 (73,340) Additions to assets retained in the Account by Golden American Life Insurance Company.................... - 1 - 1 1 1 ------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... (5,808) 19,296 (25,427) 38,585 43,797 41,112 ------------------------------------------------------------------------------------------- Total increase (decrease)........ (6,619) (16,135) (158,526) (70,215) (16,865) (445,545) ------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $- $164,587 $201,208 $351,882 $211,482 $712,516 =========================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
81
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) CAPITAL GROWTH RESEARCH TOTAL RETURN GROWTH CORE BOND DEVELOPING SERIES SERIES SERIES SERIES SERIES WORLD SERIES ----------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $463,399 $800,528 $608,868 $1,474,980 $40,000 $54,398 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (5,893) (9,501) (8,999) (16,993) (630) (965) Net realized gain (loss) and capital distribution....... (15,219) (10,175) 1,015 (429,442) (1,232) (12,389) Net unrealized appreciation (depreciation)............. (126,795) (233,511) (39,324) (116,092) 3,879 (7,234) ----------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (147,907) (253,187) (47,308) (562,527) 2,017 (20,588) Changes from principal transactions: Purchase payments........... 31,378 82,916 132,846 128,177 23,539 9,254 Contract distributions and terminations............... (16,419) (23,406) (27,130) (41,115) (1,795) (2,354) Transfer payments from (to) Fixed Accounts and other Divisions.................. (23,137) (49,475) 34,041 (111,000) 21,489 16,838 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - 2 1 1 - ----------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... (8,178) 10,035 139,759 (23,937) 43,234 23,738 ----------------------------------------------------------------------------------------------- Total increase (decrease)........ (156,085) (243,152) 92,451 (586,464) 45,251 3,150 ----------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $307,314 $557,376 $701,319 $888,516 $85,251 $57,548 =============================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
82
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) ASSET DIVERSIFIED GROWTH AND SPECIAL INTERNET ALLOCATION MID-CAP INVESTORS INCOME SITUATIONS TOLLKEEPER GROWTH SERIES SERIES SERIES SERIES SERIES SERIES -------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $4,696 $11,358 $21,558 $12,726 $5,891 $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (230) (314) (667) (536) (199) (9) Net realized gain (loss) and capital distribution....... (13) (150) (359) (116) (257) (33) Net unrealized appreciation (depreciation)............. (2,847) (7,094) (9,913) (8,466) (3,540) (773) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (3,090) (7,558) (10,939) (9,118) (3,996) (815) Changes from principal transactions: Purchase payments........... 21,077 23,665 31,319 40,356 10,130 1,977 Contract distributions and terminations............... (379) (499) (1,513) (947) (373) (10) Transfer payments from (to) Fixed Accounts and other Divisions.................. 9,453 8,229 24,105 21,317 6,145 885 Additions to assets retained in the Account by Golden American Life Insurance Company.................... 1 - - - - - -------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 30,152 31,395 53,911 60,726 15,902 2,852 -------------------------------------------------------------------------------------------------- Total increase (decrease)........ 27,062 23,837 42,972 51,608 11,906 2,037 -------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $31,758 $35,195 $64,530 $64,334 $17,797 $2,037 ================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
83
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) GROWTH SMALL CAP CONVERTIBLE GROWTH AND WORLDWIDE OPPORTUNITIES MAGNACAP OPPORTUNITES CLASS PORTFOLIO INCOME GROWTH FUND PORTFOLIO (a) PORTFOLIO (a) PORTFOLIO (a) (b) PORTFOLIO (b) -------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $5,554 $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (141) (8) (9) (30) - - Net realized gain (loss) and capital distribution....... (845) (79) (6) (581) - - Net unrealized appreciation (depreciation)............. (2,754) (504) (273) (1,328) - (5) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (3,740) (591) (288) (1,939) - (5) Changes from principal transactions: Purchase payments........... 9,019 1,566 2,481 3,803 49 104 Contract distributions and terminations............... (280) (10) (67) (57) - - Transfer payments from (to) Fixed Accounts and other Divisions.................. 2,902 1,104 723 3,592 - 2 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - -------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 11,641 2,660 3,137 7,338 49 106 -------------------------------------------------------------------------------------------------- Total increase (decrease)........ 7,901 2,069 2,849 5,399 49 101 -------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $13,455 $2,069 $2,849 $5,399 $49 $101 ================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
84
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) PIMCO STOCKSPLUS SP JENNISON LARGE CAP PIMCO HIGH GROWTH AND PRUDENTIAL INTERNATIONAL GROWTH YIELD BOND INCOME JENNISON GROWTH APPRECIATION PORTFOLIO (b) PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $- $162,857 $258,484 $7,732 $2,720 $831 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... - 9,397 4,304 (244) (81) - Net realized gain (loss) and capital distribution....... - (9,991) (12,367) (5,546) (2,658) - Net unrealized appreciation (depreciation)............. (18) (8,254) (47,658) (1,090) (859) (113) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (18) (8,848) (55,721) (6,880) (3,598) (113) Changes from principal transactions: Purchase payments........... 187 44,360 27,558 10,673 5,936 5 Contract distributions and terminations............... - (8,663) (8,960) (633) (404) (10) Transfer payments from (to) Fixed Accounts and other Divisions.................. - 20,791 (17,218) 6,517 3,695 (17) Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - -------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 187 56,488 1,380 16,557 9,227 (22) -------------------------------------------------------------------------------------------------- Total increase (decrease)........ 169 47,640 (54,341) 9,677 5,629 (135) -------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $169 $210,497 $204,143 $17,409 $8,349 $696 ================================================================================================== (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
85
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMITH BARNEY SMITH BARNEY SMITH BARNEY LARGE CAP INTERNATIONAL SMITH BARNEY INTERNATIONAL ASSET HIGH INCOME VALUE EQUITY MONEY MARKET EQUITY ALLOCATION PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $446 $692 $455 $156 $194,618 $1,387 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... 46 2 (4) (12) (2,451) 4 Net realized gain (loss) and capital distribution....... (29) 14 1 - (63,460) (10) Net unrealized appreciation (depreciation)............. (55) (112) (176) - 12,266 (208) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (38) (96) (179) (12) (53,645) (214) Changes from principal transactions: Purchase payments........... - - - - 17,303 115 Contract distributions and terminations............... (22) (15) (4) (237) (5,763) (65) Transfer payments from (to) Fixed Accounts and other Divisions.................. (31) (47) (5) 318 (2,007) (8) Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... (53) (62) (9) 81 9,533 42 ------------------------------------------------------------------------------------------------- Total increase (decrease)........ (91) (158) (188) 69 (44,112) (172) ------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $355 $534 $267 $225 $150,506 $1,215 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
86
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) SMALL GROWTH & HIGH QUALITY COMPANY GROWTH AND EQUITY INCOME BOND GROWTH ALLIANCEBERNSTEIN INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO VALUE PORTFOLIO (b) PORTFOLIO (b) ------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $1,071 $284 $78 $72 $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (16) (3) 4 (1) - - Net realized gain (loss) and capital distribution....... (27) (6) 1 (1) (3) (1) Net unrealized appreciation (depreciation)............. (277) (39) 3 (15) (13) (33) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (320) (48) 8 (17) (16) (34) Changes from principal transactions: Purchase payments........... 98 48 28 8 259 513 Contract distributions and terminations............... (74) (10) (4) - - - Transfer payments from (to) Fixed Accounts and other Divisions.................. (12) (65) 38 4 7 (6) Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 12 (27) 62 12 266 507 ------------------------------------------------------------------------------------------------- Total increase (decrease)........ (308) (75) 70 (5) 250 473 ------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $763 $209 $148 $67 $250 $473 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
87
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) VALUE INDEX PLUS INDEX PLUS INDEX PLUS PREMIER GROWTH GET FUND OPPORTUNITY LARGE CAP MID CAP SMALL CAP PORTFOLIO (b) SERIES N (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) ------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $- $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... - (15) - - - - Net realized gain (loss) and capital distribution....... - (1) - - (4) (3) Net unrealized appreciation (depreciation)............. (15) 76 (13) (7) (27) (9) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (15) 60 (13) (7) (31) (12) Changes from principal transactions: Purchase payments........... 351 1,799 133 258 301 165 Contract distributions and terminations............... - (27) - (1) - - Transfer payments from (to) Fixed Accounts and other Divisions.................. 14 30,758 5 4 18 10 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 365 32,530 138 261 319 175 ------------------------------------------------------------------------------------------------- Total increase (decrease)........ 350 32,590 125 254 288 163 ------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $350 $32,590 $125 $254 $288 $163 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
88
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) TACTICAL EQUITY- FINANCIAL HEALTH ALLOCATION INCOME GROWTH CONTRAFUND SERVICES FUND SCIENCES PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) (b) FUND (b) ------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $- $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... - (1) - - - - Net realized gain (loss) and capital distribution....... - - - (5) - - Net unrealized appreciation (depreciation)............. (2) (37) (24) 13 (6) (5) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (2) (38) (24) 8 (6) (5) Changes from principal transactions: Purchase payments........... 194 627 291 570 162 326 Contract distributions and terminations............... - - - - - - Transfer payments from (to) Fixed Accounts and other Divisions.................. - 11 - 5 4 42 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 194 638 291 575 166 368 ------------------------------------------------------------------------------------------------- Total increase (decrease)........ 192 600 267 583 160 363 ------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $192 $600 $267 $583 $160 $363 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
89
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) PPI MFS WORLDWIDE CAPITAL PIONEER SMALL UTILITIES GROWTH OPPORTUNITIES FUND VCT COMPANY VCT FUND (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) PORTFOLIO (b) BULL (a) ------------------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $- $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... - - - - (1) (38) Net realized gain (loss) and capital distribution....... - - (2) - - (530) Net unrealized appreciation (depreciation)............. (3) (20) (26) (7) (47) (608) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (3) (20) (28) (7) (48) (1,176) Changes from principal transactions: Purchase payments........... 66 406 204 95 417 1,871 Contract distributions and terminations............... - - - - - (88) Transfer payments from (to) Fixed Accounts and other Divisions.................. 5 11 (3) 11 14 4,294 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - - ------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 71 417 201 106 431 6,077 ------------------------------------------------------------------------------------------------- Total increase (decrease)........ 68 397 173 99 383 4,901 ------------------------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $68 $397 $173 $99 $383 $4,901 ================================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
90
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS - UNAUDITED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001, EXCEPT AS NOTED (DOLLARS IN THOUSANDS) GROWTH AND INTERNATIONAL INCOME GROWTH AND INCOME VOYAGER SMALL-CAP (a) EUROPE 30 (a) FUND (b) FUND (b) FUND (b) --------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001..... $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income....... (54) (58) - - - Net realized gain (loss) and capital distribution....... (1,434) (3,657) - (3) - Net unrealized appreciation (depreciation)............. (538) 72 (4) (10) (4) --------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. (2,026) (3,643) (4) (13) (4) Changes from principal transactions: Purchase payments........... 1,084 610 145 210 140 Contract distributions and terminations............... (99) (275) - - - Transfer payments from (to) Fixed Accounts and other Divisions.................. 5,906 9,605 2 (2) 11 Additions to assets retained in the Account by Golden American Life Insurance Company.................... - - - - - --------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions..... 6,891 9,940 147 208 151 --------------------------------------------------------------------------------- Total increase (decrease)........ 4,865 6,297 143 195 147 --------------------------------------------------------------------------------- NET ASSETS AT SEPTEMBER 30, 2001.. $4,865 $6,297 $143 $195 $147 ================================================================================= (a) Commencement of operations, May 1, 2001. (b) Commencement of operations, July 16, 2001. SEE ACCOMPANYING NOTES.
91 (This page intentional left blank.) 92 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 NOTE 1 - ORGANIZATION Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American") to support the operations of variable annuity contracts ("Contracts"). Golden American is primarily engaged in the issuance of variable insurance products and is licensed as a life insurance company in the District of Columbia and all states except New York. The Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. Golden American provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account or the Golden American Guaranteed Interest Division, the Golden American Fixed Interest Division, and the Fixed Separate Account, which are not part of the Account, as directed by the Contractowners. The portion of the Account's assets applicable to Contracts will not be chargeable with liabilities arising out of any other business Golden American may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of Golden American. The assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Golden American. During 2001, the Account had GoldenSelect Contracts, Granite PrimElite Contracts and SmartDesign VA Contracts. GoldenSelect Contracts sold by Golden American during 2001 include DVA Plus, Access, Premium Plus, ES II, Value, Access One, Generations, and Landmark. At September 30, 2001, the Account had, under GoldenSelect Contracts, forty-four investment divisions: Liquid Asset, Limited Maturity Bond, Large Cap Value, Hard Assets, All Cap, Real Estate, Fully Managed, Equity Income, Capital Appreciation, Rising Dividends, Value Equity, Strategic Equity, Small Cap, Managed Global, Mid-Cap Growth, Capital Growth, Research, Total Return, Growth, Core Bond (formerly Global Fixed Income), Developing World, Asset Allocation, Diversified Mid Cap, Investors, Growth & Income, Special Situations, Internet Tollkeeper, Worldwide Growth (formerly ING Global Brand Names), Growth Opportunities, MagnaCap, Small Cap, PIMCO High Yield Bond, PIMCO StocksPLUS Growth & Income, Jennison, SP Jennison International Growth, International Equity, Asset Allocation, Equity, Growth & Income, High Quality Bond, Small Company Growth, ProFund Bull, ProFund Small Cap and Europe30 Divisions ("Divisions"). The Account had, under SmartDesign Contracts, thirty-six investment divisions: Liquid Asset, Value Equity, Research, Total Return, Core Bond (formerly Global Fixed Income), Growth & Income, Worldwide Growth (formerly ING Global Brand Names), MagnaCap, Convertible Class, Growth and Income, LargeCap Growth, PIMCO High Yield Bond, Jennison, SP Jennison International Growth, AllianceBernstein Value, Alliance Growth and Income, Premier Growth, GET Fund Series N, Value Opportunity, Index Plus Large Cap, Index Plus Mid Cap, Index Plus Small Cap, Tactical Allocation, Equity-Income, Growth, Contrafund, Financial Services, Health Sciences, Utilities, Worldwide Growth, PPI MFS Capital Opportunites, Pioneer Fund VCT, Small Company VCT, Putnam Growth & Income, International Growth & Income and Voyager Divisions ("Divisions"). The Account also had, under Granite PrimElite Contracts, eight investments divisions: Mid-Cap Growth, Research, Total Return, Appreciation, Smith Barney High Income, Smith Barney Large Cap Value, Smith Barney International Equity, and Smith Barney Money Market Divisions (collectively with the divisions noted above, "Divisions"). The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio") of mutual funds, The GCG Trust, Pilgrim Variable Insurance Trust, Pilgrim Variable Products Trust, PIMCO Variable Insurance Trust, Prudential Series Fund Inc., Greenwich Street Series Fund Inc., Travelers Series Fund Inc., Credit Suisse Warburg Pincus Trust, The Galaxy VIP Fund, Alliance Variable Products Series Fund Inc., Aetna Variable Portfolios Inc., Brinson Series Trust, INVESCO Variable Investment Funds Inc., Janus Aspen Series, Portfolio Partners Inc., Pioneer Variable Contracts Trust, The ProFunds VP, or Putnam Variable Trust (the "Trusts"). The Account also includes The Fund For Life Division, which is not included in the accompanying financial statements, and which ceased to accept new Contracts effective December 31, 1994. The Market Manager Division was open for investment for only a brief period during 1994 and 1995. This Division is now closed and Contractowners are not permitted to direct their investments into this Division. 93 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies of the Account: USE OF ESTIMATES: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. INVESTMENTS: Investments are made in shares of a Series or Portfolio of the Trusts and are valued at the net asset value per share of the respective Series or Portfolio of the Trusts. Investment transactions in each Series or Portfolio of the Trusts are recorded on the trade date. Distributions of net investment income and capital gains from each Series or Portfolio of the Trusts are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Series or Portfolio of the Trusts are determined on the specific identification basis. FEDERAL INCOME TAXES: Operations of the Account form a part of, and are taxed with, the total operations of Golden American which is taxed as a life insurance company under the Internal Revenue Code. Earnings and realized capital gains of the Account attributable to the Contractowners are excluded in the determination of the federal income tax liability of Golden American. NOTE 3 - CHARGES AND FEES Prior to February 1, 2000, DVA Plus, Access, and the Premium Plus each had three different death benefit options referred to as Standard, Annual Ratchet, and 7% Solution; however, in the state of Washington, the 5.5% Solution is offered instead of the 7% Solution. After February 1, 2000 DVA Plus, Access and Premium Plus each had four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. Prior to 2001, ES II had only one death benefit option. During 2001, ESII had seven death benefit options referred to as Standard, Deferred Ratchet, Annual Ratchet, 5.5% Solution, 7% Solution, Max 5.5 and Max 7. Generations has five death benefit options referred to as Standard, Deferred Ratchet, Annual Ratchet, 7% Solution, and Max 7. Landmark has six death benefit options referred to as Standard, Annual Ratchet, 5.5% Solution, 7% Solution, Max 5.5, and Max 7. VA has three death benefit options referred to as Option I, Option II, and Option III. Golden American discontinued external sales of DVA 80 in May 1991. Golden American has also discontinued external sales of DVA 100, DVA Series 100, and Granite PremElite. Under the terms of the Contract, certain charges are allocated to the Contracts to cover Golden American's expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges: MORTALITY AND EXPENSE RISK CHARGES: Golden American assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges deducted at annual rates to cover these risks follows: Series Annual Rates ------ ------------ DVA 80 0.80% DVA 0.90 DVA Series 100 1.25 DVA Plus (pre February 2000) - Standard 1.10 DVA Plus (post January 2000) - Standard 1.15 DVA Plus (post 2000) - Standard 1.15 DVA Plus (pre February 2000) - Annual Ratchet 1.25 DVA Plus (pre February 2000) - 5.5% Solution 1.25 DVA Plus (post January 2000) - 5.5% Solution 1.25 DVA Plus (post January 2000) - Annual Ratchet 1.30 DVA Plus (post 2000) - 5.5% Solution 1.30 94 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 3 - CHARGES AND FEES (CONTINUED) DVA Plus (pre February 2000) - 7% Solution 1.40 DVA Plus (post January 2000) - Max 5.5 1.40 DVA Plus (post 2000) - Annual Ratchet 1.40 DVA Plus (post 2000) - Max 5.5 1.45 DVA Plus (post January 2000) - 7% Solution 1.50 DVA Plus (post 2000) - 7% Solution 1.50 DVA Plus (post January 2000) - Max 7 1.60 DVA Plus (post 2000) - Max 7 1.60 Access (pre February 2000) - Standard 1.25 Access (post January 2000) - Standard 1.30 Access (post 2000) - Standard 1.30 Access (pre February 2000) - Annual Ratchet 1.40 Access (pre February 2000) - 5.5% Solution 1.40 Access (post January 2000) - Annual Ratchet 1.45 Access (post January 2000) - 5.5% Solution 1.45 Access (post 2000) - 5.5% Solution 1.45 Access (pre February 2000) - 7% Solution 1.55 Access (post January 2000) - Max 5.5 1.55 Access (post 2000) - Annual Ratchet 1.55 Access (post 2000) - Max 5.5 1.60 Access (post January 2000) - 7% Solution 1.65 Access (post 2000) - 7% Solution 1.65 Access (post April 2001) - Standard 1.65 Access (post January 2000) - Max 7 1.75 Access (post 2000) - Max 7 1.75 Access (post April 2001) - 5.5% Solution 1.80 Access (post April 2001) - Annual Ratchet 1.90 Access (post April 2001) - Max 5.5 1.95 Access (post April 2001) - 7% Solution 2.00 Access (post April 2001) - Max 7 2.10 Premium Plus (pre February 2000) - Standard 1.25 Premium Plus (post January 2000) - Standard 1.30 Premium Plus (post 2000) - Standard 1.30 Premium Plus (pre February 2000) - Annual Ratchet 1.40 Premium Plus (pre February 2000) - 5.5% Solution 1.40 Premium Plus (post January 2000) - Annual Ratchet 1.45 Premium Plus (post January 2000) - 5.5% Solution 1.45 Premium Plus (post 2000) - 5.5% Solution 1.45 Premium Plus (pre February 2000) - 7% Solution 1.55 Premium Plus (post January 2000) - Max 5.5 1.55 Premium Plus (post 2000) - Annual Ratchet 1.55 Premium Plus (post 2000) - Max 5.5 1.60 Premium Plus (post January 2000) - 7% Solution 1.65 Premium Plus (post 2000) - 7% Solution 1.65 Premium Plus (post January 2000) - Max 7 1.75 Premium Plus (post 2000) - Max 7 1.75 95 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 3 - CHARGES AND FEES (CONTINUED) ES II (pre 2001) 1.25 ES II (post 2000) - Standard 1.25 ES II (post 2000) - Deferred Ratchet 1.30 ES II (post 2000) - 5.5% Solution 1.40 ES II (post 2000) - Annual Ratchet 1.50 ES II (post 2000) - Max 5.5 1.55 ES II (post 2000) - 7% Solution 1.60 ES II (post 2000) - Max 7 1.70 Value - Standard 0.75 Access One 0.35 Granite PrimElite - Standard 1.10 Granite PrimElite - Annual Ratchet 1.25 Generations - Standard 1.25 Generations - Deferred Ratchet 1.30 Generations - Annual Ratchet 1.50 Generations - 7% Solution 1.60 Generations - Max 7 1.70 Landmark - Standard 1.50 Landmark - 5.5% Solution 1.65 Landmark - Annual Ratchet 1.75 Landmark - Max 5.5 1.80 Landmark - 7% Solution 1.85 Landmark - Max 7 1.95 VA Option I 0.80 VA Option II 1.10 VA Option III 1.25 VA Bonus Option I 1.30 VA Bonus Option II 1.60 VA Bonus Option III 1.75 ASSET BASED ADMINISTRATIVE CHARGES: A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA 100 and DVA Series 100 Contracts. A daily charge at an annual rate of 0.15% is deducted from the assets attributable to the DVA Plus, Access, Premium Plus, ESII, Value, Access One, Granite PrimElite, Generations, Landmark, and VA Contracts. ADMINISTRATIVE CHARGES: An administrative charge is deducted from the accumulation value of Deferred Annuity Contracts to cover ongoing administrative expenses. The charge is $30 per Contract year for ES II, Value, and VA contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts the charge is $40. The charge is incurred at the beginning of the Contract processing period and deducted at the end of the Contract processing period. This charge had been waived for certain offerings of the Contracts. MINIMUM DEATH BENEFIT GUARANTEE CHARGES: For certain Contracts, a minimum death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death benefit per Contract year is deducted from the accumulation value of Deferred Annuity Contracts on each Contract anniversary date. 96 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 3 - CHARGES AND FEES (CONTINUED) CONTINGENT DEFERRED SALES CHARGES: Under DVA 80, DVA 100, DVA Plus, Premium Plus, ES II, Value, and Granite PrimElite Contracts, a contingent deferred sales charge ("Surrender Charge") is imposed as a percentage of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken. The following table reflects the surrender charge that is assessed based upon the date a premium payment is received.
SURRENDER CHARGE --------------------------------------------------------------------------------------------------- COMPLETE YEARS ELAPSED SINCE DVA 80 DVA PREMIUM ES II & GRANITE PREMIUM PAYMENT & 100 PLUS PLUS GENERATIONS VALUE PRIMELITE LANDMARK VA ------------------------------------------------------------------------------------------------------------------------------- 0........ 6% 7% 8% 8% 6% 7% 6% 7% 1........ 5 7 8 7 6 7 5 7 2........ 4 6 8 6 6 6 4 6 3........ 3 5 8 5 5 5 - 6 4........ 2 4 7 4 4 4 - 5 5........ 1 3 6 3 3 3 - 4 6........ - 1 5 2 1 1 - 3 7........ - - 3 1 - - - - 8........ - - 1 - - - - - 9+....... - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------
OTHER CONTRACT CHARGES: Under DVA 80, DVA 100, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contracts taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA 100 Contracts, annual distribution fees are deducted from the Contract accumulation values. DEFERRED SALES LOAD: Under Contracts offered prior to October 1995, a sales load of up to 7.5 % was assessed against each premium payment for sales-related expenses as specified in the Contracts. For DVA Series 100, the sales load is deducted in equal annual installments over the period the Contract is in force, not to exceed 10 years. For DVA 80 and DVA 100 Contracts, although the sales load is chargeable to each premium when it is received by Golden American, the amount of such charge is initially advanced by Golden American to Contractowners and included in the accumulation value and then deducted in equal installments on each Contract anniversary date over a period of six years. Upon surrender of the Contract, the unamortized deferred sales load is deducted from the accumulation value. In addition, when partial withdrawal limits are exceeded, a portion of the unamortized deferred sales load is deducted. PREMIUM TAXES: For certain Contracts, premium taxes are deducted, where applicable, from the accumulation value of each Contract. The amount and timing of the deduction depend on the annuitant's state of residence and currently ranges up to 3.5% of premiums. FEES WAIVED BY GOLDEN AMERICAN: Certain charges and fees for various types of Contracts are currently waived by Golden American. Golden American reserves the right to discontinue these waivers at its discretion or to conform with changes in the law. A summary of the net assets retained in the Account at September 30l 2001, representing the unamortized deferred sales load and premium taxes advanced by Golden American previously noted, follows: Balance at beginning of year............................ $678 Sales load advanced..................................... 20 Amortization of deferred sales load and premium tax..... (612) ------------- Balance at end of year.................................. $ 86 ============= 97 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments during 2001 follows:
------------------------------------- PURCHASES SALES ------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust: Liquid Asset Series $4,225,108 $3,729,114 Limited Maturity Bond Series 266,809 116,663 Large Cap Value Series 132,651 13,398 Hard Assets Series 8,377 7,903 All Cap Series 155,724 16,298 Real Estate Series 53,235 36,256 Fully Managed Series 260,871 76,766 Equity Income Series 134,331 66,049 Capital Appreciation Series 105,598 92,773 Rising Dividends Series 30,265 52,912 Emerging Markets Series 49,902 69,646 Market Manager Series 3,388 8,410 Value Equity Series 84,606 67,814 Strategic Equity Series 131,020 160,530 Small Cap Series 285,875 253,139 Managed Global Series 710,426 669,700 Mid-Cap Growth Series 618,317 591,460 Capital Growth Series 113,764 127,835 Research Series 138,976 138,442 Total Return Series 186,283 55,523 Growth Series 583,960 624,891 Core Bond Series 58,427 15,822 Developing World Series 393,769 370,996 Asset Allocation Growth Series 30,276 353 Diversified Mid-Cap Series 33,900 2,819 Investors Series 59,270 6,026 Growth and Income Series 61,720 1,530 Special Situation Series 17,036 1,333 Internet Tollkeeper Series 2,941 98 Pilgrim Variable Insurance Trust: Worldwide Growth Fund 16,696 5,197 Pilgrim Variable Products Trust: Growth Opportunities Portfolio 3,951 1,299 MagnaCap Portfolio 3,242 114 Small Cap Opportunities Portfolio 11,213 3,905 Convertible Class Portfolio 49 - Growth and Income Portfolio 106 - LargeCap Growth Portfolio 187 - PIMCO Variable Insurance Trust: PIMCO High Yield Bond Portfolio 141,454 75,568 PIMCO StocksPLUS Growth and Income Portfolio 41,514 35,830 Prudential Series Fund, Inc.: Prudential Jennison Portfolio 101,367 84,865 SP Jennison International Growth Portfolio 60,756 51,610 Greenwich Street Series Fund Inc.: Appreciation Portfolio 53 75
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GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED) Travelers Series Fund Inc.: Smith Barney High Income Portfolio 51 57 Smith Barney Large Cap Value Portfolio 30 68 Smith Barney International Equity Portfolio 3 17 Smith Barney Money Market Portfolio 193 124 Credit Suisse Warburg Pincus Trust: International Equity Portfolio 1,019,936 1,014,515 The Galaxy VIP Fund: Asset Allocation Portfolio 208 162 Equity Portfolio 130 134 Growth & Income Portfolio 59 88 High Quality Bond Portfolio 83 17 Small Company Growth Portfolio 17 6 Alliance Variable Products Series Fund, Inc.: AllianceBernstein Value Portfolio 293 27 Growth and Income Portfolio 512 5 Premier Growth Portfolio 365 - Aetna Variable Portfolios, Inc.: GET Fund Series N 32,575 60 Value Opportunity Portfolio 138 - Index Plus Large Cap Portfolio 261 - Index Plus Mid Cap Portfolio 356 37 Index Plus Small Cap Portfolio 198 23 Brinson Series Trust: Tactical Allocation Portfolio 194 - Fidelity Variable Insurance Products: Equity-Income Portfolio 637 - Growth Portfolio 291 - Contrafund Portfolio 634 59 INVESCO Variable Investment Funds, Inc.: Financial Services Fund 167 1 Health Sciences Fund 371 3 Utilities Fund 71 - Janus Aspen Series: Worldwide Growth Portfolio 417 - Portfolio Partners, Inc.: PPI MFS Capital Opportunities Portfolio 207 6 Pioneer Variable Contracts Trust: Pioneer Fund VCT Portfolio 106 - Small Company VCT Portfolio 430 - ProFund: Bull 24,938 18,899 Small-Cap 109,470 102,633 Europe 30 79,967 70,085 Putnam: Growth and Income Fund 147 - International Growth and Income Fund 230 22 Voyager Fund 151 - ------------------------------------- COMBINED $10,591,249 $8,840,010 =====================================
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GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS Contractowners' transactions shown in the following table reflect gross inflows ("Purchases") and outflows ("Sales") in units for each Division for the nine months ended September 30, 2001. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted in both a sale (surrender of the old Contract) and a purchase (acquisition of the new Contract). All of the purchases transactions for the Market Manager Division resulted from such updates. ------------------------------------- PURCHASES SALES ------------------------------------- The GCG Trust: Liquid Asset Series 299,314,928 267,856,089 Limited Maturity Bond Series 17,530,029 9,119,102 Large Cap Value Series 14,586,622 2,677,955 Hard Assets Series 810,729 734,319 All Cap Series 14,999,833 3,287,962 Real Estate Series 2,505,703 1,873,454 Fully Managed Series 11,678,227 4,651,083 Equity Income Series 7,519,063 4,427,467 Capital Appreciation Series 6,602,957 5,903,248 Rising Dividends Series 3,745,849 4,439,612 Emerging Markets Series 7,053,917 9,615,850 Market Manager Series - 238,516 Value Equity Series 5,630,499 4,866,122 Strategic Equity Series 11,585,081 13,353,855 Small Cap Series 19,760,548 17,800,022 Managed Global Series 40,008,269 37,555,663 Mid-Cap Growth Series 19,368,202 18,831,212 Capital Growth Series 8,900,047 9,887,744 Research Series 7,836,134 7,590,506 Total Return Series 11,957,159 5,119,619 Growth Series 37,584,332 40,138,513 Core Bond Series 5,603,216 1,793,942 Developing World Series 57,772,799 54,702,951 Asset Allocation Growth Series 3,629,478 205,891 Diversified Mid-Cap Series 4,208,108 775,224 Investors Series 6,040,985 1,243,840 Growth and Income Series 7,288,886 797,047 Special Situations Series 2,351,583 566,119 Internet Tollkeeper Series 366,631 36,686 Pilgrim Variable Insurance Trust Worldwide Growth Fund 2,451,388 960,683 Pilgrim Variable Products Trust Growth Opportunities Portfolio 482,611 175,818 MagnaCap Portfolio 366,628 35,097 Small Cap Opportunities Portfolio 1,289,899 531,734 Convertible Class Portfolio 5,004 - Growth and Income Portfolio 10,757 - LargeCap Growth Portfolio 19,529 - PIMCO Variable Insurance Trust: PIMCO High Yield Bond Portfolio 15,878,822 10,319,656 PIMCO StocksPLUS Growth and Income Portfolio 4,830,446 4,936,276 Prudential Series Fund, Inc. Prudential Jennison Portfolio 14,471,265 12,223,516 SP Jennison International Growth Portfolio 9,998,163 8,649,087
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GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS (CONTINUED) Greenwich Street Series Fund Inc.: Appreciation Portfolio 2,583 4,086 Travelers Series Fund Inc.: Smith Barney High Income Portfolio 85 4,303 Smith Barney Large Cap Value Portfolio 4 3,219 Smith Barney International Equity Portfolio 245 1,012 Smith Barney Money Market Portfolio 15,005 9,744 Credit Suisse Warburg Pincus Trust International Equity Portfolio 108,196,999 106,553,695 The Galaxy VIP Fund: Asset Allocation Portfolio 17,780 15,516 Equity Portfolio 11,632 12,070 Growth & Income Portfolio 5,585 8,959 High Quality Bond Portfolio 6,965 1,408 Small Company Growth Portfolio 1,162 327 Alliance Variable Products Series Fund, Inc. AllianceBernstein Value Portfolio 31,559 4,705 Growth and Income Portfolio 55,507 1,268 Premier Growth Portfolio 41,826 55 Aetna Variable Portfolios, Inc. GET Fund Series N 3,253,814 7,515 Value Opportunity Portfolio 14,775 - Index Plus Large Cap Portfolio 29,367 - Index Plus Mid Cap Portfolio 37,585 4,480 Index Plus Small Cap Portfolio 23,410 4,516 Brinson Series Trust Tactical Allocation Portfolio 22,398 - Fidelity Variable Insurance Products Equity-Income Portfolio 72,845 4,700 Growth Portfolio 33,480 6 Contrafund Portfolio 70,658 6,645 INVESCO Variable Investment Funds, Inc. Financial Services Fund 18,538 247 Health Sciences Fund 37,775 419 Utilities Fund 8,604 - Janus Aspen Series Worldwide Growth Portfolio 47,594 - Portfolio Partners, Inc. PPI MFS Capital Opportunities Portfolio 23,800 805 Pioneer Variable Contracts Trust Pioneer Fund VCT Portfolio 11,491 - Small Company VCT Portfolio 46,582 365 The ProFunds VP: Bull 2,673,831 2,070,621 Small-Cap 11,213,179 10,603,935 Europe 30 10,850,217 10,042,804 Putnam Variable Trust Growth and Income Fund 16,005 - International Growth and Income Fund 25,562 3,458 Voyager Fund 20,541 - ------------------------------------- COMBINED 822,983,314 697,292,363 =====================================
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GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS The following schedule summarizes expense ratios, excluding expenses of underlying funds,. and total return for the nine-month period ended September 30, 2001 and the years ended December 31, 2000, 1999, 1998, and 1997. MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIQUID ASSET SERIES - DVA 80 September 30, 2001 242,499 $17.04 $4,131 0.80% 2.59% December 31, 2000 254,024 16.61 4,219 0.80% 5.26% December 31, 1999 431,148 15.78 6,805 0.80% 3.88% December 31, 1998 374,624 15.19 5,691 0.80% 4.18% December 31, 1997 367,567 14.58 5,359 0.80% 4.26% LIQUID ASSET SERIES - DVA September 30, 2001 1,005,245 $16.62 $16,707 1.00% 2.53% December 31, 2000 943,073 16.21 15,289 1.00% 4.99% December 31, 1999 2,111,976 15.44 32,610 1.00% 3.69% December 31, 1998 1,767,965 14.89 26,328 1.00% 3.98% December 31, 1997 1,598,949 14.32 22,894 1.00% 4.05% LIQUID ASSET SERIES - DVA SERIES 100 September 30, 2001 51,972 $15.89 $826 1.35% 2.25% December 31, 2000 72,995 15.54 1,134 1.35% 4.65% December 31, 1999 65,836 14.85 978 1.35% 3.27% December 31, 1998 50,601 14.38 727 1.35% 3.68% December 31, 1997 37,946 13.87 526 1.35% 3.66% LIQUID ASSET SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 871,090 $16.11 $14,033 1.25% 2.29% December 31, 2000 713,224 15.75 11,234 1.25% 4.72% December 31, 1999 683,989 15.04 10,287 1.25% 3.44% December 31, 1998 489,531 14.54 7,118 1.25% 3.71% December 31, 1997 227,427 14.02 3,188 1.25% 3.81% LIQUID ASSET SERIES - DVA PLUS - STANDARD (POST JANUARY 2000 AND POST 2000) September 30, 2001 317,658 $15.94 $5,064 1.30% 2.25% December 31, 2000 146,440 15.59 2,283 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
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GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIQUID ASSET SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION (PRE FEBRUARY 2000 & POST JANUARY 2000), ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II (PRE 2001), ES II STANDARD (POST 2000), GENERATIONS - STANDARD September 30, 2001 19,805,407 $15.81 $313,124 1.40% 2.20% December 31, 2000 14,214,983 15.47 219,919 1.40% 4.60% December 31, 1999 13,701,797 14.79 202,706 1.40% 3.21% December 31, 1998 3,587,645 14.33 51,394 1.40% 3.62% December 31, 1997 353,076 13.83 4,883 1.40% 3.62% LIQUID ASSET SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), DVA PLUS - 5.5% SOLUTION (POST 2000), ACCESS - STANDARD (POST JANUARY 2000 AND POST 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000 AND POST 2000), ES II - DEFERRED RATCHET (POST 2000), GENERATIONS - DEFERRED RATCHET September 30, 2001 12,906,412 $15.63 $201,727 1.45% 2.09% December 31, 2000 7,270,477 15.31 111,297 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), DVA PLUS - ANNUAL RATCHET (POST 2000), DVA PLUS - MAX 5.5 (POST JANUARY 2000), ACCESS - ANNUAL RATCHET (PRE FEBRUARY 2000), & 5.5% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION (PRE FEBRUARY 2000), ES II - 5.5% SOLUTION (POST 2000) September 30, 2001 8,604,258 $15.51 $133,452 1.55% 2.11% December 31, 2000 5,535,946 15.19 84,117 1.55% 4.40% December 31, 1999 7,668,618 14.55 111,594 1.55% 3.12% December 31, 1998 2,964,038 14.11 41,830 1.55% 3.37% December 31, 1997 1,132,057 13.65 15,447 1.55% 3.50% LIQUID ASSET SERIES - DVA PLUS - 5.5 % SOLUTION (POST 2000), ACCESS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - 5.5% SOLUTION (POST JANUARY 2000 AND POST 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - 5.5% SOLUTION (POST JANUARY 2000 AND POST 2000) September 30, 2001 3,143,686 $15.33 $48,193 1.60% 2.00% December 31, 2000 2,183,030 15.03 32,816 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000 AND POST 2000), ES II - ANNUAL RATCHET (POST 2000), GENERATIONS - ANNUAL RATCHET, LANDMARK - STANDARD September 30, 2001 1,004,909 $15.24 $15,315 1.65% 2.01% December 31, 2000 302,892 14.94 4,527 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
103
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIQUID ASSET SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (POST 2000), ACCESS - MAX 5.5 (POST JANUARY 2000), DVA PLUS - ANNUAL RATCHET (POST 2000), ES II - MAX 5.5 (POST 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST 2000), PREMIUM PLUS - MAX 5.5 (POST JANUARY 2000) September 30, 2001 13,027,011 $15.19 $197,880 1.70% 1.95% December 31, 2000 7,933,969 14.90 118,208 1.70% 4.27% December 31, 1999 11,002,421 14.29 157,230 1.70% 2.95% December 31, 1998 3,069,965 13.88 42,610 1.70% 3.27% December 31, 1997 370,411 13.44 4,979 1.70% * LIQUID ASSET SERIES - ACCESS - MAX 5.5 (POST 2000), DVA PLUS - MAX 7 (POST JANUARY 2000 AND POST 2000), ES II - 7% SOLUTION (POST 2000), GENERATIONS - 7% SOLUTION, PREMIUM PLUS - MAX 5.5 (POST JANUARY 2000) September 30, 2001 1,247,831 $15.05 $18,780 1.75% 1.96% December 31, 2000 293,515 14.76 4,333 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000 AND POST 2000), ACCESS - STANDARD (POST APRIL 2001), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000 AND POST 2000), LANDMARK - 5.5% SOLUTION September 30, 2001 6,536,074 $14.95 $97,714 1.80% 1.91% December 31, 2000 2,657,053 14.67 38,987 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - MAX 7 (POST JANUARY 2000 AND POST 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000 AND POST 2000), LANDMARK - ANNUAL RATCHET September 30, 2001 6,140,645 $14.76 $90,636 1.90% 1.79% December 31, 2000 2,132,811 14.50 30,917 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VALUE September 30, 2001 35,897 $16.83 $604 0.90% 2.56% December 31, 2000 23,532 16.41 386 0.90% 5.12% December 31, 1999 7,391 15.61 116 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
104
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIQUID ASSET SERIES - VA OPTION II September 30, 2001 1,176 $16.09 $19 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VA OPTION III September 30, 2001 30,696 $15.78 $484 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VA BONUS OPTION I September 30, 2001 30,126 $15.68 $472 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VA BONUS OPTION II September 30, 2001 8,678 $15.09 $131 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VA BONUS OPTION III September 30, 2001 38,934 $14.80 $576 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 303,435 $14.90 $4,521 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
105
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIQUID ASSET SERIES - LANDMARK - 7% SOLUTION September 30, 2001 178,189 $14.61 $2,602 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 159,690 $14.52 $2,319 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 97,276 $14.43 $1,404 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 92,925 $14.33 $1,332 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 254,546 $14.15 $3,602 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIQUID ASSET SERIES - VA OPTION I September 30, 2001 688 $16.72 $12 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
106
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIMITED MATURITY BOND SERIES - DVA 80 September 30, 2001 26,843 $20.55 $552 0.80% 7.87% December 31, 2000 30,320 19.05 578 0.80% 6.90% December 31, 1999 61,527 17.82 1,097 0.80% 0.28% December 31, 1998 99,955 17.77 1,776 0.80% 6.03% December 31, 1997 70,318 16.76 1,179 0.80% 5.81% LIMITED MATURITY BOND SERIES - DVA September 30, 2001 1,046,211 $20.03 $20,956 1.00% 7.69% December 31, 2000 1,097,008 18.60 20,401 1.00% 6.65% December 31, 1999 1,624,763 17.44 28,329 1.00% 0.11% December 31, 1998 2,087,318 17.42 36,352 1.00% 5.83% December 31, 1997 2,370,299 16.46 39,020 1.00% 5.59% LIMITED MATURITY BOND SERIES - DVA SERIES 100 September 30, 2001 11,055 $19.15 $212 1.35% 7.40% December 31, 2000 11,209 17.83 200 1.35% 6.32% December 31, 1999 15,728 16.77 264 1.35% -0.24% December 31, 1998 22,995 16.81 387 1.35% 5.39% December 31, 1997 22,582 15.95 360 1.35% 5.24% LIMITED MATURITY BOND SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 376,618 $19.45 $7,325 1.25% 7.58% December 31, 2000 322,729 18.08 5,837 1.25% 6.35% December 31, 1999 279,468 17.00 4,751 1.25% -0.12% December 31, 1998 263,074 17.02 4,478 1.25% 5.52% December 31, 1997 139,323 16.13 2,247 1.25% 5.34% LIMITED MATURITY BOND SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 313,568 $19.27 $6,042 1.30% 7.53% December 31, 2000 53,158 17.92 953 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION (PRE FEBRUARY 2000 & POST FEBRUARY 2000), ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II (PRE 2001), ES II STANDARD (POST 2000), GENERATIONS - STANDARD September 30, 2001 5,672,189 $19.08 $108,225 1.40% 7.43% December 31, 2000 3,621,501 17.76 64,327 1.40% 6.22% December 31, 1999 2,938,050 16.72 49,127 1.40% -0.30% December 31, 1998 1,557,946 16.77 26,124 1.40% 5.41% December 31, 1997 133,461 15.91 2,124 1.40% 5.16%
107
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIMITED MATURITY BOND SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,246,901 $18.90 $42,466 1.45% 7.39% December 31, 2000 849,473 17.60 14,952 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 2,541,844 $18.72 $47,583 1.55% 7.28% December 31, 2000 1,769,355 17.45 30,867 1.55% 6.08% December 31, 1999 1,835,680 16.45 30,192 1.55% -0.42% December 31, 1998 1,121,400 16.52 18,525 1.55% 5.22% December 31, 1997 462,583 15.70 7,263 1.55% 5.01% LIMITED MATURITY BOND SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 534,880 $18.54 $9,917 1.60% 7.23% December 31, 2000 321,370 17.29 5,555 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 302,493 $18.42 $5,572 1.65% 7.22% December 31, 2000 $49,754 17.18 855 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 3,722,820 $18.33 $68,239 1.70% 7.13% December 31, 2000 2,442,970 17.11 41,790 1.70% 5.94% December 31, 1999 2,267,799 16.15 36,630 1.70% -0.62% December 31, 1998 937,378 16.25 15,230 1.70% 5.04% December 31, 1997 19,171 15.47 296 1.70% *
108
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIMITED MATURITY BOND SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 295,077 $18.18 $5,364 1.75% 7.13% December 31, 2000 73,720 16.97 1,251 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,325,545 $18.07 $23,953 1.80% 7.11% December 31, 2000 507,893 16.87 8,569 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,144,536 $17.83 $20,407 1.90% 6.96% December 31, 2000 273,264 16.67 4,555 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - VALUE September 30, 2001 89,615 $20.31 $1,820 0.90% 7.80% December 31, 2000 13,071 18.84 246 0.90% 6.74% December 31, 1999 655 17.65 11 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS ONE September 30, 2001 1,261 $21.38 $27 0.50% 8.14% December 31, 2000 1,095 19.77 22 0.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 101,559 $17.98 $1,826 1.85% * December 31, 2000 - - - - - December 31, 1999 $0 - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
109
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LIMITED MATURITY BOND SERIES - LANDMARK - 7% SOLUTION September 30, 2001 10,261 $17.64 $181 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS ONE ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 17,940 $17.52 $314 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS ONE ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 43,347 $17.41 $755 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS ONE ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 5,616 $17.30 $97 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LIMITED MATURITY BOND SERIES - ACCESS ONE ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 18,638 $17.08 $318 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA September 30, 2001 24,227 $8.66 $210 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
110
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LARGE CAP VALUE SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 106,885 $8.62 $921 1.25% -18.37% December 31, 2000 81,093 10.56 856 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 304,575 $8.62 $2,625 1.30% -18.29% December 31, 2000 147,571 10.55 1,557 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 2,795,723 $8.60 $24,043 1.40% -18.48% December 31, 2000 2,138,096 10.55 22,546 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,700,335 $8.59 $31,786 1.45% -18.50% December 31, 2000 1,537,946 10.54 16,210 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 1,419,030 $8.58 $12,175 1.55% -18.52% December 31, 2000 770,213 10.53 8,111 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
111
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LARGE CAP VALUE SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,251,747 $8.57 $10,727 1.60% -18.61% December 31, 2000 942,003 10.53 9,915 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,015,387 $8.56 $8,692 1.65% -18.63% December 31, 2000 181,541 10.52 1,910 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 2,379,453 $8.56 $20,368 1.70% -18.63% December 31, 2000 961,611 10.52 10,112 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,168,976 $8.55 $9,995 1.75% -18.65% December 31, 2000 177,361 10.51 1,864 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 2,943,357 $8.54 $25,136 1.80% -18.74% December 31, 2000 1,403,629 10.51 14,747 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 3,446,273 $8.53 $29,397 1.90% -18.76% December 31, 2000 993,651 10.50 10,430 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
112
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LARGE CAP VALUE SERIES - VALUE September 30, 2001 62,128 $8.67 $538 0.90% -18.13% December 31, 2000 27,079 10.59 287 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS ONE September 30, 2001 185 $8.73 $2 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS ONE ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 335,110 $8.54 $2,862 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - LANDMARK - 7% SOLUTION September 30, 2001 $44,959 $8.51 $382 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS ONE ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 35,630 $8.51 $303 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS ONE ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 129,802 $8.50 $1,103 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
113
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LARGE CAP VALUE SERIES - ACCESS ONE ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 31,779 $8.49 $270 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGE CAP VALUE SERIES - ACCESS ONE ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 74,873 $8.48 $635 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - DVA 80 September 30, 2001 35,787 $14.41 $515 0.80% -17.75% December 31, 2000 37,384 17.52 655 0.80% -5.50% December 31, 1999 47,687 18.54 884 0.80% 22.38% December 31, 1998 59,349 15.15 899 0.80% -30.12% December 31, 1997 109,104 21.68 2,366 0.80% 5.30% HARD ASSETS SERIES - DVA September 30, 2001 260,551 $14.05 $3,661 1.00% -17.84% December 31, 2000 309,343 17.10 5,290 1.00% -5.68% December 31, 1999 447,125 18.13 8,107 1.00% 22.09% December 31, 1998 752,975 14.85 11,178 1.00% -30.28% December 31, 1997 1,137,136 21.30 24,217 1.00% 5.12% HARD ASSETS SERIES - DVA SERIES 100 September 30, 2001 10,369 $13.43 $139 1.35% -18.06% December 31, 2000 $11,245 16.39 184 1.35% -6.02% December 31, 1999 21,674 17.44 378 1.35% 21.70% December 31, 1998 23,997 14.33 344 1.35% -30.54% December 31, 1997 32,428 20.63 669 1.35% 4.72% HARD ASSETS SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 75,858 $13.62 $1,033 1.25% -18.05% December 31, 2000 83,792 16.62 1,392 1.25% -5.89% December 31, 1999 112,564 17.66 1,988 1.25% 21.79% December 31, 1998 146,678 14.50 2,126 1.25% -30.46% December 31, 1997 154,417 20.85 3,219 1.25% 4.85%
114
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ HARD ASSETS SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 11,321 $13.52 $153 1.30% -18.06% December 31, 2000 2,937 16.50 49 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 290,026 $13.37 $3,878 1.40% -18.08% December 31, 2000 309,819 16.32 5,056 1.40% -6.04% December 31, 1999 355,052 17.37 6,168 1.40% 21.64% December 31, 1998 258,034 14.28 3,685 1.40% -30.58% December 31, 1997 90,379 20.57 1,859 1.40% 4.68% HARD ASSETS SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 104,369 $13.26 $1,384 1.45% -18.15% December 31, 2000 57,353 16.20 929 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - - HARD ASSETS SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 520,690 $13.11 $6,826 1.55% -18.22% December 31, 2000 598,436 16.03 9,592 1.55% -6.20% December 31, 1999 696,931 17.09 11,909 1.55% 21.46% December 31, 1998 609,087 14.07 8,570 1.55% -30.66% December 31, 1997 637,191 20.29 12,932 1.55% 4.50% HARD ASSETS SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 22,879 $13.01 $298 1.60% -18.23% December 31, 2000 17,608 15.91 280 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
115
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ HARD ASSETS SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 16,658 $12.92 $215 1.65% -18.28% December 31, 2000 5,200 15.81 82 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 732,161 $12.84 $9,401 1.70% -18.32% December 31, 2000 861,668 15.72 13,543 1.70% -6.32% December 31, 1999 565,255 16.78 9,486 1.70% 21.24% December 31, 1998 210,821 13.84 2,917 1.70% -30.77% December 31, 1997 13,179 19.99 263 1.70% * HARD ASSETS SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 31,882 $12.76 $407 1.75% -18.31% December 31, 2000 18,820 15.62 294 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 85,067 $12.68 $1,079 1.80% -18.35% December 31, 2000 42,632 15.53 662 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 355,543 $12.52 $4,451 1.90% -18.38% December 31, 2000 227,856 15.34 3,495 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - VALUE September 30, 2001 26,703 $14.23 $380 90.00% -17.79% December 31, 2000 337 17.31 6 90.00% -5.56% December 31, 1999 497 18.33 9 90.00% * December 31, 1998 - - - - - December 31, 1997 - - - - -
116
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ HARD ASSETS SERIES - ACCESS ONE, ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 64,012 $12.60 $806 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - LANDMARK - 7% SOLUTION September 30, 2001 $2,368 $12.35 $29 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 9,104 $12.28 $112 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 1,890 $12.20 $23 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 2,575 $12.12 $31 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HARD ASSETS SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 1,027 $11.96 $12 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
117
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ALL CAP SERIES - DVA September 30, 2001 35,906 $10.56 $379 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA SERIES 100 September 30, 2001 3,381 $10.50 $36 1.35% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 103,204 $10.52 $1,086 1.25% -9.39% December 31, 2000 $51,500 11.61 598 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 19,417 $10.51 $2,306 1.30% -9.47% December 31, 2000 80,308 11.61 932 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE 2000), ES II September 30, 2001 3,626,349 $10.49 $38,041 1.40% -9.49% December 31, 2000 2,182,516 11.59 25,306 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,038,199 $10.48 $31,840 1.45% -9.58% December 31, 2000 1,200,520 11.59 13,913 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
118
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ALL CAP SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 1,802,723 $10.47 $18,875 1.55% -9.59% December 31, 2000 1,155,496 11.58 13,379 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,105,848 $10.46 $11,567 1.60% -9.59% December 31, 2000 819,316 11.57 9,482 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 576,525 $10.45 $6,025 1.65% -9.68% December 31, 2000 70,600 11.57 817 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 3,411,689 $10.44 $35,618 1.70% -9.69% December 31, 2000 1,620,720 11.56 18,740 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 630,743 $10.43 $6,579 1.75% -9.78% December 31, 2000 98,842 11.56 1,142 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 2,173,258 $10.42 $22,645 1.80% -9.78% December 31, 2000 780,053 11.55 9,011 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
119
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ALL CAP SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 3,448,130 $10.40 $35,861 1.90% -9.88% December 31, 2000 986,100 11.54 11,381 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - VALUE September 30, 2001 42,237 $10.58 $447 0.90% -9.18% December 31, 2000 15,599 11.65 182 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 281,784 $10.41 $2,933 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 548 $10.39 $6 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - LANDMARK - 7% SOLUTION September 30, 2001 52,334 $10.39 $544 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 38,180 $10.38 $396 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
120
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ALL CAP SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 90,084 $10.37 $934 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 22,285 $10.36 $231 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALL CAP SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 70,617 $10.34 $730 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - DVA 80 September 30, 2001 13,854 $29.58 $410 0.80% 3.46% December 31, 2000 16,523 28.59 472 0.80% 29.95% December 31, 1999 17,899 22.00 394 0.80% -4.60% December 31, 1998 34,664 23.06 799 0.80% -14.15% December 31, 1997 88,628 26.86 2,380 0.80% 21.83% REAL ESTATE SERIES - DVA September 30, 2001 377,151 $28.83 $10,873 1.00% 3.30% December 31, 2000 464,383 27.91 12,962 1.00% 29.69% December 31, 1999 703,624 21.52 15,144 1.00% -4.78% December 31, 1998 1,158,462 22.60 26,182 1.00% -14.33% December 31, 1997 1,522,527 26.38 40,160 1.00% 21.57% REAL ESTATE SERIES - DVA SERIES 100 September 30, 2001 6,418 $27.57 $177 1.35% 3.03% December 31, 2000 6,470 26.76 173 1.35% 29.28% December 31, 1999 7,595 20.70 157 1.35% -5.13% December 31, 1998 9,562 21.82 209 1.35% -14.60% December 31, 1997 22,395 25.55 572 1.35% 21.11%
121
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 114,811 $27.96 $3,210 1.25% 3.10% December 31, 2000 130,114 27.12 3,529 1.25% 29.39% December 31, 1999 136,122 20.96 2,854 1.25% -5.03% December 31, 1998 170,494 22.07 3,763 1.25% -14.52% December 31, 1997 173,241 25.82 4,473 1.25% 21.25% REAL ESTATE SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 24,318 $27.75 $675 1.30% 3.04% December 31, 2000 7,229 26.93 195 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 890,819 $27.43 $24,435 1.40% 2.97% December 31, 2000 1,006,919 26.64 5,589 1.40% 29.19% December 31, 1999 534,577 20.62 11,024 1.40% -5.15% December 31, 1998 436,867 21.74 9,498 1.40% -14.68% December 31, 1997 135,993 25.48 3,465 1.40% 21.09% REAL ESTATE SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 470,755 $27.22 $12,814 1.45% 2.95% December 31, 2000 211,380 26.44 26,821 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 721,802 $26.91 $19,424 1.55% 2.87% December 31, 2000 738,550 26.16 19,321 1.55% 28.99% December 31, 1999 742,363 20.28 15,059 1.55% -5.32% December 31, 1998 914,501 21.42 19,588 1.55% -14.80% December 31, 1997 897,320 25.14 22,556 1.55% 20.90%
122
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 116,522 $26.70 $3,111 1.60% 2.81% December 31, 2000 86,644 25.97 2,250 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 55,167 $26.53 $1,464 1.65% 2.79% December 31, 2000 12,612 25.81 326 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 901,067 $26.36 $23,752 1.70% 2.77% December 31, 2000 826,871 25.65 21,212 1.70% 28.77% December 31, 1999 554,454 19.92 11,045 1.70% -5.46% December 31, 1998 426,516 21.07 8,985 1.70% -14.90% December 31, 1997 45,472 24.76 1,125 1.70% * REAL ESTATE SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 70,909 $26.19 $1,857 1.75% 2.71% December 31, 2000 25,056 25.50 639 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 217,926 $26.02 $5,671 1.80% 2.68% December 31, 2000 77,442 25.34 1,963 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 367,699 $25.69 $9,446 1.90% 2.60% December 31, 2000 192,508 25.04 4,820 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
123
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE SERIES - VALUE September 30, 2001 19,118 $29.21 $559 0.90% 3.40% December 31, 2000 1,113 28.25 31 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS ONE September 30, 2001 74 $30.74 $2 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 43,248 $25.86 $1,118 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - LANDMARK - 7% SOLUTION September 30, 2001 896 $25.36 $23 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 5,058 $25.20 $128 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 1,662 $25.03 $42 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
124
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 3,768 $24.87 $94 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - REAL ESTATE SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 13,021 $24.55 $320 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - DVA 80 September 30, 2001 37,562 $29.00 $1,089 0.80% 3.76% December 31, 2000 41,530 27.95 1,160 0.80% 21.00% December 31, 1999 56,149 23.10 1,297 0.80% 6.06% December 31, 1998 98,853 21.78 2,153 0.80% 5.07% December 31, 1997 130,310 20.73 2,701 0.80% 14.44% FULLY MANAGED SERIES - DVA September 30, 2001 1,460,868 $28.27 $41,299 1.00% 3.63% December 31, 2000 1,795,012 27.28 48,972 1.00% 20.76% December 31, 1999 2,766,340 22.59 62,500 1.00% 5.86% December 31, 1998 4,133,650 21.34 88,227 1.00% 4.81% December 31, 1997 5,032,148 20.36 102,451 1.00% 14.20% FULLY MANAGED SERIES - DVA SERIES 100 September 30, 2001 26,010 $27.02 $703 1.35% 3.33% December 31, 2000 26,037 26.15 681 1.35% 20.34% December 31, 1999 28,071 21.73 610 1.35% 5.43% December 31, 1998 33,313 20.61 686 1.35% 4.51% December 31, 1997 36,340 19.72 717 1.35% 13.76% FULLY MANAGED SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 450,920 $27.41 $12,360 1.25% 3.39% December 31, 2000 473,557 26.51 12,553 1.25% 20.45% December 31, 1999 549,088 22.01 12,084 1.25% 5.61% December 31, 1998 544,623 20.84 11,351 1.25% 4.57% December 31, 1997 418,686 19.93 8,345 1.25% 13.91%
125
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ FULLY MANAGED SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 117,448 $27.21 $3,196 1.30% 3.38% December 31, 2000 30,174 26.32 794 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 4,154,049 $26.89 $111,703 1.40% 3.26% December 31, 2000 3,264,322 26.04 84,988 1.40% 20.28% December 31, 1999 2,546,588 21.65 55,126 1.40% 5.46% December 31, 1998 1,628,157 20.53 33,431 1.40% 4.43% December 31, 1997 414,805 19.66 8,157 1.40% 13.71% FULLY MANAGED SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,762,048 $26.69 $47,029 1.45% 3.29% December 31, 2000 507,008 25.84 13,103 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 3,559,113 $26.39 $93,925 1.55% 3.21% December 31, 2000 3,165,782 25.57 80,951 1.55% 20.10% December 31, 1999 3,304,306 21.29 70,358 1.55% 5.24% December 31, 1998 2,780,652 20.23 56,246 1.55% 4.28% December 31, 1997 1,766,390 19.40 34,271 1.55% 13.55% FULLY MANAGED SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 458,283 $26.18 $11,998 1.60% 3.15% December 31, 2000 185,069 25.38 4,697 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
126
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ FULLY MANAGED SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 336,189 $26.01 $8,744 1.65% 3.09% December 31, 2000 61,545 25.23 1,552 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 4,403,937 $25.84 $113,798 1.70% 3.07% December 31, 2000 3,237,449 25.07 81,175 1.70% 19.89% December 31, 1999 3,118,319 20.91 65,207 1.70% 5.08% December 31, 1998 1,727,706 19.90 34,373 1.70% 4.13% December 31, 1997 108,930 19.11 2,082 1.70% * FULLY MANAGED SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 322,690 $25.68 $8,287 1.75% 3.05% December 31, 2000 15,600 24.92 389 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,555,255 $25.51 $39,675 1.80% 2.99% December 31, 2000 400,243 24.77 9,915 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,451,822 $25.18 $36,557 1.90% 2.90% December 31, 2000 183,884 24.47 4,500 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - VALUE September 30, 2001 36,677 $28.63 $1,050 0.90% 3.66% December 31, 2000 8,003 27.62 221 0.90% 20.88% December 31, 1999 1,564 22.85 36 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
127
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ FULLY MANAGED SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 166,487 $25.35 $4,221 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - LANDMARK - 7% SOLUTION September 30, 2001 14,489 $24.86 $360 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 14,156 $24.70 $350 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 32,683 $24.54 $802 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 18,077 $24.38 $441 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FULLY MANAGED SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 43,596 $24.07 $1,049 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
128
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY INCOME SERIES - DVA 80 September 30, 2001 133,850 $23.98 $3,209 0.80% -6.58% December 31, 2000 163,007 25.67 4,184 0.80% 12.05% December 31, 1999 227,648 22.91 5,216 0.80% -1.50% December 31, 1998 420,357 23.26 9,778 0.80% 7.39% December 31, 1997 551,677 21.66 11,950 0.80% 16.48% EQUITY INCOME SERIES - DVA September 30, 2001 2,598,808 $23.38 $60,760 1.00% -6.70% December 31, 2000 3,173,809 25.06 79,531 1.00% 11.83% December 31, 1999 5,014,068 22.41 112,377 1.00% -1.71% December 31, 1998 7,799,102 22.80 177,844 1.00% 7.14% December 31, 1997 9,651,400 21.28 205,341 1.00% 16.28% EQUITY INCOME SERIES - DVA SERIES 100 September 30, 2001 38,296 $22.35 $856 1.35% -6.95% December 31, 2000 41,479 24.02 996 1.35% 11.41% December 31, 1999 52,427 21.56 1,130 1.35% -2.04% December 31, 1998 64,749 22.01 1,425 1.35% 6.79% December 31, 1997 86,050 20.61 1,773 1.35% 15.84% EQUITY INCOME SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 296,678 $22.67 $6,725 1.25% -6.90% December 31, 2000 324,404 24.35 7,898 1.25% 11.54% December 31, 1999 381,468 21.83 8,327 1.25% -1.98% December 31, 1998 395,764 22.27 8,812 1.25% 6.91% December 31, 1997 328,740 20.83 6,847 1.25% 15.98% EQUITY INCOME SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 77,461 $22.50 $1,743 1.30% -6.91% December 31, 2000 24,472 24.17 591 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 2,615,214 $22.25 $58,189 1.40% -6.94% December 31, 2000 2,309,476 23.91 55,228 1.40% 11.36% December 31, 1999 2,014,453 21.47 43,259 1.40% -2.14% December 31, 1998 800,489 21.94 17,560 1.40% 6.76% December 31, 1997 255,396 20.55 5,248 1.40% 15.79%
129
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY INCOME SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,229,523 $22.07 $27,135 1.45% -7.03% December 31, 2000 470,889 23.74 11,178 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 2,317,425 $21.82 $50,566 1.55% -7.11% December 31, 2000 2,237,389 23.49 52,548 1.55% 11.22% December 31, 1999 2,523,887 21.12 53,311 1.55% -2.27% December 31, 1998 1,980,779 21.61 42,806 1.55% 6.56% December 31, 1997 1,485,966 20.28 30,129 1.55% 15.64% EQUITY INCOME SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 371,630 $21.65 $8,045 1.60% -7.12% December 31, 2000 225,138 23.31 5,248 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 299,389 $21.51 $6,440 1.65% -7.16% December 31, 2000 79,161 23.17 1,834 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 2,985,218 $21.37 $63,794 1.70% -7.21% December 31, 2000 2,552,792 23.03 58,792 1.70% 11.04% December 31, 1999 2,294,950 20.74 47,606 1.70% -2.45% December 31, 1998 744,366 21.26 15,822 1.70% 6.46% December 31, 1997 35,953 19.97 718 1.70% * EQUITY INCOME SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 245,234 $21.24 $5,208 1.75% -7.21% December 31, 2000 30,890 22.89 707 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
130
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY INCOME SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 876,051 $21.10 $18,484 1.80% -7.25% December 31, 2000 311,484 22.75 7,087 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 981,078 $20.83 $20,435 1.90% -7.34% December 31, 2000 238,986 22.48 5,372 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - VALUE September 30, 2001 28,406 $23.68 $672 0.90% -6.62% December 31, 2000 22,752 25.36 577 0.90% 11.92% December 31, 1999 2,555 22.66 58 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ACCESS ONE September 30, 2001 875 $24.92 $22 0.50% -6.35% December 31, 2000 833 26.61 22 0.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 109,862 $20.96 $2,302 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - LANDMARK - 7% SOLUTION September 30, 2001 20,704 $20.56 $426 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
131
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY INCOME SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 8,906 $20.43 $182 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 36,139 $20.30 $734 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 14,648 $20.17 $295 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY INCOME SERIES - September 30, 2001 13,162 $19.91 $262 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - DVA 80 September 30, 2001 17,442 $20.78 $363 0.80% -21.56% December 31, 2000 18,401 26.49 487 0.80% -15.90% December 31, 1999 54,304 31.50 1,710 0.80% 23.67% December 31, 1998 90,966 25.47 2,317 0.80% 11.76% December 31, 1997 125,546 22.79 2,861 0.80% 27.92% CAPITAL APPRECIATION SERIES - DVA September 30, 2001 1,570,888 $20.40 $32,046 1.00% -21.63% December 31, 2000 2,026,254 26.03 52,747 1.00% -16.06% December 31, 1999 3,034,250 31.01 94,106 1.00% 23.40% December 31, 1998 4,689,939 25.13 117,875 1.00% 11.54% December 31, 1997 5,724,823 22.53 128,989 1.00% 27.66%
132
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL APPRECIATION SERIES - DVA SERIES 100 September 30, 2001 22,015 $19.72 $434 1.35% -21.87% December 31, 2000 25,937 25.24 655 1.35% -16.37% December 31, 1999 29,781 30.18 899 1.35% 22.93% December 31, 1998 49,076 24.55 1,205 1.35% 11.19% December 31, 1997 46,932 22.08 1,036 1.35% 27.20% CAPITAL APPRECIATION SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 369,488 $19.94 $7,368 1.25% -21.80% December 31, 2000 453,894 25.50 11,575 1.25% -16.28% December 31, 1999 431,150 30.46 13,132 1.25% 23.07% December 31, 1998 413,115 24.75 10,223 1.25% 11.29% December 31, 1997 353,774 22.24 7,868 1.25% 27.35% CAPITAL APPRECIATION SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 152,791 $19.82 $3,029 1.30% -21.85% December 31, 2000 97,043 25.36 2,461 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 3,351,110 $19.66 $65,883 1.40% -21.89% December 31, 2000 3,626,696 25.17 91,289 1.40% -16.41% December 31, 1999 2,412,721 30.11 72,649 1.40% 22.90% December 31, 1998 1,342,757 24.50 32,897 1.40% 11.11% December 31, 1997 312,229 22.05 6,885 1.40% 27.14% CAPITAL APPRECIATION SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,731,016 $19.54 $33,824 1.45% -21.93% December 31, 2000 1,210,622 25.03 30,300 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
133
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL APPRECIATION SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 3,806,839 $19.38 $73,777 1.55% -22.01% December 31, 2000 4,174,489 24.85 103,716 1.55% -16.53% December 31, 1999 3,839,680 29.77 114,290 1.55% 22.71% December 31, 1998 2,787,732 24.26 67,619 1.55% 10.93% December 31, 1997 1,772,316 21.87 38,752 1.55% 26.99% CAPITAL APPRECIATION SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 923,423 $19.26 $17,785 1.60% -22.02% December 31, 2000 847,242 24.70 20,927 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 283,338 $19.17 $5,432 1.65% -22.04% December 31, 2000 124,676 24.59 3,066 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - September 30, 2001 4,148,488 $19.08 $79,154 1.70% -22.06% December 31, 2000 4,496,266 24.48 110,086 1.70% -16.68% December 31, 1999 3,574,164 29.38 104,999 1.70% 22.52% December 31, 1998 1,023,964 23.98 24,551 1.70% 10.76% December 31, 1997 69,624 21.65 1,507 1.70% * CAPITAL APPRECIATION SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 347,985 $18.99 $6,608 1.75% -22.11% December 31, 2000 109,154 24.38 2,661 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,426,977 $18.90 $26,970 1.80% -22.13% December 31, 2000 981,676 24.27 23,825 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
134
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL APPRECIATION SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,568,864 $18.72 $29,369 1.90% -22.19% December 31, 2000 969,120 24.06 23,314 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - VALUE September 30, 2001 38,940 $20.59 $802 0.90% -21.59% December 31, 2000 31,436 26.26 825 0.90% -15.99% December 31, 1999 5,832 31.26 182 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - VALUE ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 68,629 $18.81 $1,310 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - LANDMARK - 7% SOLUTION September 30, 2001 10,568 $18.54 $196 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 15,006 $18.45 $277 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 14,730 $18.36 $271 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
135
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL APPRECIATION SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 5,598 $18.27 $102 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL APPRECIATION SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 17,480 $18.10 $316 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - DVA 80 September 30, 2001 21,750 $20.55 $447 0.80% -21.02% December 31, 2000 36,302 26.02 944 0.80% -2.87% December 31, 1999 48,495 26.79 1,299 0.80% 14.93% December 31, 1998 139,495 23.31 3,251 0.80% 13.27% December 31, 1997 185,857 20.58 3,826 0.80% 28.75% RISING DIVIDENDS SERIES - DVA September 30, 2001 1,634,016 $20.22 $33,040 1.00% -21.14% December 31, 2000 2,135,681 25.64 54,757 1.00% -3.10% December 31, 1999 3,167,912 26.46 83,810 1.00% 14.74% December 31, 1998 4,465,604 23.06 102,983 1.00% 12.98% December 31, 1997 4,885,378 20.41 99,708 1.00% 28.53% RISING DIVIDENDS SERIES - DVA SERIES 100 September 30, 2001 42,790 $19.66 $841 1.35% -21.33% December 31, 2000 51,586 24.99 1,289 1.35% -3.44% December 31, 1999 62,149 25.88 1,608 1.35% 14.31% December 31, 1998 92,161 22.64 2,086 1.35% 12.58% December 31, 1997 85,890 20.11 1,727 1.35% 28.11% RISING DIVIDENDS SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 1,020,054 $19.84 $20,238 1.25% -21.30% December 31, 2000 1,150,706 25.21 29,006 1.25% -3.30% December 31, 1999 1,251,144 26.07 32,623 1.25% 14.39% December 31, 1998 1,199,087 22.79 27,323 1.25% 12.71% December 31, 1997 795,321 20.22 16,079 1.25% 28.23%
136
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RISING DIVIDENDS SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 172,141 $19.74 $3,398 1.30% -21.32% December 31, 2000 95,313 25.09 2,391 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 7,381,618 $19.61 $144,753 1.40% -21.37% December 31, 2000 8,035,273 24.94 200,360 1.40% -3.45% December 31, 1999 7,496,161 25.83 193,646 1.40% 15.16% December 31, 1998 4,591,470 22.61 103,810 1.40% 11.65% December 31, 1997 853,473 20.09 17,146 1.40% 28.01% RISING DIVIDENDS SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,598,556 $19.50 $31,172 1.45% -21.40% December 31, 2000 1,073,372 24.81 26,632 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 8,734,394 $19.38 $169,273 1.55% -21.44% December 31, 2000 9,797,332 24.67 241,653 1.55% -3.60% December 31, 1999 10,160,317 25.59 260,024 1.55% 14.09% December 31, 1998 7,386,288 22.43 165,696 1.55% 12.37% December 31, 1997 3,706,709 19.96 73,999 1.55% 27.79% RISING DIVIDENDS SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 514,097 $19.27 $9,907 1.60% -21.48% December 31, 2000 440,779 24.54 10,816 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
137
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RISING DIVIDENDS SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 700,642 $19.19 $13,445 1.65% -21.51% December 31, 2000 428,500 24.45 10,477 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 9,084,472 $19.11 $173,604 1.70% -21.55% December 31, 2000 9,922,551 24.36 241,712 1.70% -3.75% December 31, 1999 9,473,482 25.31 239,807 1.70% 13.91% December 31, 1998 4,305,084 22.22 95,669 1.70% 12.17% December 31, 1997 179,402 19.81 3,553 1.70% * RISING DIVIDENDS SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 384,494 $19.04 $7,321 1.75% -21.55% December 31, 2000 119,426 24.27 2,898 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,331,758 $18.95 $25,237 1.80% -21.63% December 31, 2000 803,307 24.18 19,425 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,357,290 $18.80 $25,517 1.90% -21.67% December 31, 2000 713,282 24.00 17,122 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - VALUE September 30, 2001 37,004 $20.39 $754 0.90% -21.06% December 31, 2000 33,143 25.83 856 0.90% -2.97% December 31, 1999 10,416 26.62 277 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
138
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RISING DIVIDENDS SERIES - ACCESS ONE September 30, 2001 48 $21.05 $1 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 53,470 $18.88 $1,010 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 44 $18.73 $1 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - LANDMARK - 7% SOLUTION September 30, 2001 20,629 $18.65 $385 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 13,511 $18.58 $251 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 23,644 $18.50 $437 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
139
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RISING DIVIDENDS SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 7,346 $18.43 $135 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RISING DIVIDENDS SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 8,922 $18.28 $163 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - DVA 80 September 30, 2001 6,381 $17.10 $109 0.80% -15.14% December 31, 2000 7,265 20.15 146 0.80% 7.93% December 31, 1999 17,173 18.67 321 0.80% -0.32% December 31, 1998 29,442 18.73 552 0.80% 0.75% December 31, 1997 58,265 18.59 1,083 0.80% 26.27% VALUE EQUITY SERIES - DVA September 30, 2001 329,441 $16.87 $5,558 1.00% -15.27% December 31, 2000 402,922 19.91 8,021 1.00% 7.68% December 31, 1999 650,130 18.49 12,018 1.00% -0.48% December 31, 1998 1,052,008 18.58 19,542 1.00% 0.54% December 31, 1997 1,369,251 18.48 25,301 1.00% 26.02% VALUE EQUITY SERIES - DVA SERIES 100 September 30, 2001 13,109 $16.47 $216 1.35% -15.50% December 31, 2000 11,002 19.49 214 1.35% 7.32% December 31, 1999 13,030 18.16 237 1.35% -0.87% December 31, 1998 20,539 18.32 376 1.35% 0.22% December 31, 1997 24,986 18.28 457 1.35% 25.53% VALUE EQUITY SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 333,410 $16.61 $5,538 1.25% -15.38% December 31, 2000 373,943 19.63 7,342 1.25% 7.39% December 31, 1999 433,555 18.28 7,924 1.25% -0.71% December 31, 1998 454,942 18.41 8,377 1.25% 0.27% December 31, 1997 372,681 18.36 6,843 1.25% 25.68%
140
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VALUE EQUITY SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 49,277 $16.53 $815 1.30% -15.45% December 31, 2000 23,912 19.55 468 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 2,304,705 $16.44 $37,889 1.40% -15.52% December 31, 2000 2,586,369 19.46 50,333 1.40% 7.28% December 31, 1999 1,825,971 18.14 33,129 1.40% -0.93% December 31, 1998 1,415,540 18.31 25,913 1.40% 0.16% December 31, 1997 469,649 18.28 8,586 1.40% 25.49% VALUE EQUITY SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 729,601 $16.36 $11,936 1.45% -15.58% December 31, 2000 472,034 19.38 9,146 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 2,453,994 $16.27 $39,927 1.55% -15.66% December 31, 2000 2,589,777 19.29 49,949 1.55% 7.11% December 31, 1999 2,709,066 18.01 48,787 1.55% -1.04% December 31, 1998 2,736,310 18.20 49,797 1.55% 0.00% December 31, 1997 1,793,172 18.20 32,639 1.55% 25.30% VALUE EQUITY SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 235,486 $16.20 $3,815 1.60% -15.63% December 31, 2000 143,195 19.20 2,749 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
141
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VALUE EQUITY SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 140,781 $16.14 $2,272 1.65% -15.67% December 31, 2000 41,973 19.14 803 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 2,266,972 $16.08 $36,453 1.70% -15.72% December 31, 2000 2,230,349 19.08 42,553 1.70% 6.95% December 31, 1999 1,956,244 17.84 34,902 1.70% -1.22% December 31, 1998 1,201,314 18.06 21,692 1.70% -0.17% December 31, 1997 118,902 18.09 2,150 1.70% * VALUE EQUITY SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 109,804 $16.03 $1,760 1.75% -15.76% December 31, 2000 10,293 19.03 196 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 538,987 $15.98 $8,613 1.80% -15.76% December 31, 2000 298,983 18.97 5,672 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 498,678 $15.87 $7,867 1.90% -15.81% December 31, 2000 162,505 18.85 3,064 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - VALUE September 30, 2001 7,755 $16.98 $132 0.90% -15.18% December 31, 2000 3,296 20.02 66 0.90% 7.75% December 31, 1999 3,333 18.58 62 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
142
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VALUE EQUITY SERIES - VALUE VA OPTION II September 30, 2001 510 $16.58 $9 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - VALUE VA BONUS OPTION I September 30, 2001 669 $16.36 $11 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - VALUE ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 46,949 $15.92 $748 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - LANDMARK - 7% SOLUTION September 30, 2001 14,013 $15.76 $221 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 8,661 $15.71 $136 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - VALUE ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 20,935 $15.65 $328 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
143
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VALUE EQUITY SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 4,882 $15.60 $76 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE EQUITY SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 10,195 $15.49 $158 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - DVA 80 September 30, 2001 19,549 $12.12 $237 0.80% -37.88% December 31, 2000 33,313 19.51 650 0.80% -13.13% December 31, 1999 18,395 22.46 413 0.80% 55.00% December 31, 1998 53,353 14.49 773 0.80% 0.00% December 31, 1997 102,523 14.49 1,485 0.80% 22.18% STRATEGIC EQUITY SERIES - DVA September 30, 2001 206,413 $11.97 $2,471 1.00% -37.98% December 31, 2000 277,049 19.30 5,348 1.00% -13.34% December 31, 1999 419,542 22.27 9,345 1.00% 54.65% December 31, 1998 772,105 14.40 11,117 1.00% -0.14% December 31, 1997 1,011,370 14.42 14,587 1.00% 21.89% STRATEGIC EQUITY SERIES - DVA SERIES 100 September 30, 2001 9,145 $11.72 $107 1.35% -38.15% December 31, 2000 9,208 18.95 174 1.35% -13.63% December 31, 1999 6,159 21.94 135 1.35% 54.18% December 31, 1998 22,096 14.23 315 1.35% -0.56% December 31, 1997 34,778 14.31 498 1.35% 21.50% STRATEGIC EQUITY SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 375,177 $11.81 $4,431 1.25% -38.07% December 31, 2000 469,023 19.07 8,946 1.25% -13.55% December 31, 1999 455,696 22.06 10,053 1.25% 54.27% December 31, 1998 508,588 14.30 7,272 1.25% -0.42% December 31, 1997 406,747 14.36 5,840 1.25% 21.64%
144
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ STRATEGIC EQUITY SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 130,332 $11.76 $1,533 1.30% -38.11% December 31, 2000 107,927 19.00 2,051 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 3,821,905 $11.70 $44,716 1.40% -38.16% December 31, 2000 4,824,610 18.92 91,300 1.40% -13.69% December 31, 1999 2,450,796 21.92 53,725 1.40% 54.04% December 31, 1998 1,105,850 14.23 15,735 1.40% -0.56% December 31, 1997 554,068 14.31 7,929 1.40% 21.43% STRATEGIC EQUITY SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,058,082 $11.65 $23,976 1.45% -38.20% December 31, 2000 1,797,957 18.85 33,893 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 2,756,353 $11.60 $31,973 1.55% -38.23% December 31, 2000 3,565,530 18.78 66,946 1.55% -13.77% December 31, 1999 2,655,079 21.78 57,835 1.55% 53.81% December 31, 1998 1,731,615 14.16 24,521 1.55% -0.70% December 31, 1997 1,361,070 14.26 19,414 1.55% 21.22% STRATEGIC EQUITY SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,080,367 $11.55 $12,478 1.60% -38.24% December 31, 2000 1,149,145 18.70 21,490 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
145
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ STRATEGIC EQUITY SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 299,449 $11.51 $3,446 1.65% -38.28% December 31, 2000 185,121 18.65 3,453 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 3,552,138 $11.47 $40,743 1.70% -38.33% December 31, 2000 4,283,689 18.60 79,684 1.70% -13.93% December 31, 1999 3,050,564 21.61 65,934 1.70% 53.59% December 31, 1998 827,477 14.07 11,644 1.70% -0.92% December 31, 1997 49,579 14.20 704 1.70% * STRATEGIC EQUITY SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 280,083 $11.44 $3,204 1.75% -38.33% December 31, 2000 149,363 18.55 2,771 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,348,902 $11.41 $15,391 1.80% -38.32% December 31, 2000 1,203,898 18.50 22,276 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,382,523 $11.34 $15,678 1.90% -38.37% December 31, 2000 1,103,423 18.40 20,308 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - VALUE September 30, 2001 - - - - - December 31, 2000 22,904 $19.41 $444 0.90% -13.23% December 31, 1999 3,862 22.37 86 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
146
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ STRATEGIC EQUITY SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 44,201 $11.37 $502 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 62 $11.30 $1 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - LANDMARK - 7% SOLUTION September 30, 2001 14,522 $11.27 $164 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 4,007 $11.23 $45 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 1,553 $11.20 $17 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - STRATEGIC EQUITY SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 5,137 $11.17 $57 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
147
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ STRATEGIC EQUITY SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 3,466 $11.10 $38 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - DVA 80 September 30, 2001 17,663 $14.67 $259 0.80% -22.63% December 31, 2000 21,812 18.96 413 0.80% -18.91% December 31, 1999 21,044 23.38 492 0.80% 49.39% December 31, 1998 46,417 15.65 726 0.80% 20.02% December 31, 1997 42,479 13.04 554 0.80% 9.45% SMALL CAP SERIES - DVA September 30, 2001 281,641 $14.50 $4,084 1.00% -22.75% December 31, 2000 372,242 18.77 6,987 1.00% -19.06% December 31, 1999 506,667 23.19 11,751 1.00% 49.13% December 31, 1998 701,203 15.55 10,908 1.00% 19.71% December 31, 1997 895,702 12.99 11,632 1.00% 9.25% SMALL CAP SERIES - DVA SERIES 100 September 30, 2001 11,734 $14.21 $167 1.35% -22.94% December 31, 2000 14,421 18.44 266 1.35% -19.37% December 31, 1999 14,018 22.87 320 1.35% 48.60% December 31, 1998 18,405 15.39 283 1.35% 19.30% December 31, 1997 38,537 12.90 497 1.35% 8.88% SMALL CAP SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 412,273 $14.30 $5,895 1.25% -22.87% December 31, 2000 457,260 18.54 8,476 1.25% -19.25% December 31, 1999 453,438 22.96 10,411 1.25% 48.70% December 31, 1998 446,934 15.44 6,900 1.25% 19.50% December 31, 1997 401,090 12.92 5,183 1.25% 8.94% SMALL CAP SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 180,617 $14.25 $2,574 1.30% -22.93% December 31, 2000 86,622 18.49 1,601 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
148
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 6,525,292 $14.17 $92,463 1.40% -22.99% December 31, 2000 6,884,993 18.40 126,665 1.40% -19.37% December 31, 1999 5,053,919 22.82 115,340 1.40% 48.47% December 31, 1998 2,476,498 15.37 38,058 1.40% 19.33% December 31, 1997 559,014 12.88 7,202 1.40% 8.76% SMALL CAP SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,366,622 $14.13 $33,440 1.45% -23.00% December 31, 2000 1,586,595 18.35 29,116 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 4,906,195 $14.05 $68,932 1.55% -23.06% December 31, 2000 5,436,276 18.26 99,255 1.55% -19.49% December 31, 1999 4,514,345 22.68 102,399 1.55% 48.24% December 31, 1998 3,086,639 15.30 47,219 1.55% 19.16% December 31, 1997 2,049,765 12.84 26,326 1.55% 8.58% SMALL CAP SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,196,347 $14.01 $16,761 1.60% -23.06% December 31, 2000 1,058,396 18.21 19,276 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 403,719 $13.97 $5,640 1.65% -23.12% December 31, 2000 184,093 18.17 3,344 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
149
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 4,683,539 $13.93 $65,241 1.70% -23.12% December 31, 2000 4,812,017 18.12 87,196 1.70% -19.65% December 31, 1999 3,698,983 22.55 83,400 1.70% 48.06% December 31, 1998 1,326,706 15.23 20,204 1.70% 18.89% December 31, 1997 106,014 12.81 1,357 1.70% * SMALL CAP SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 392,432 $13.89 $5,451 1.75% -23.13% December 31, 2000 140,651 18.07 2,542 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,804,449 $13.84 $24,974 1.80% -23.24% December 31, 2000 1,163,996 18.03 20,986 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,528,325 $13.76 $21,030 1.90% -23.30% December 31, 2000 825,516 17.94 14,808 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - VALUE September 30, 2001 91,493 $14.59 $1,335 0.90% -22.64% December 31, 2000 60,739 18.86 1,146 0.90% -18.99% December 31, 1999 13,606 23.28 316 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS ONE September 30, 2001 1,141 $14.93 $17 0.50% -22.44% December 31, 2000 1,040 19.25 20 0.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
150
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 162,353 $13.81 $2,242 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - LANDMARK - 7% SOLUTION September 30, 2001 10,459 $13.68 $143 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 19,056 $13.64 $260 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 39,944 $13.60 $543 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 7,094 $13.56 $96 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 24,807 $13.49 $335 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
151
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MANAGED GLOBAL SERIES - DVA 80 September 30, 2001 14,955 $16.33 $244 0.80% -23.04% December 31, 2000 17,976 21.22 381 0.80% -15.26% December 31, 1999 33,553 25.04 840 0.80% 61.97% December 31, 1998 31,963 15.46 494 0.80% 28.30% December 31, 1997 51,316 12.05 618 0.80% 11.28% MANAGED GLOBAL SERIES - DVA September 30, 2001 1,532,710 $16.04 $24,585 1.00% -23.18% December 31, 2000 1,887,266 20.88 39,408 1.00% -15.40% December 31, 1999 2,715,682 24.68 67,035 1.00% 61.62% December 31, 1998 3,944,829 15.27 60,230 1.00% 28.00% December 31, 1997 5,055,107 11.93 60,290 1.00% 11.08% MANAGED GLOBAL SERIES - DVA SERIES 100 September 30, 2001 31,605 $15.55 $491 1.35% -23.40% December 31, 2000 34,905 20.30 709 1.35% -15.70% December 31, 1999 38,870 24.08 936 1.35% 61.07% December 31, 1998 47,894 14.95 716 1.35% 27.56% December 31, 1997 76,803 11.72 900 1.35% 10.68% MANAGED GLOBAL SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 506,121 $15.68 $7,936 1.25% -23.29% December 31, 2000 583,929 20.44 11,937 1.25% -15.64% December 31, 1999 605,044 24.23 14,658 1.25% 61.32% December 31, 1998 649,216 15.02 9,753 1.25% 27.72% December 31, 1997 525,356 11.76 6,180 1.25% 10.73% MANAGED GLOBAL SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 186,596 $15.59 $2,909 1.30% -23.32% December 31, 2000 110,792 20.33 2,253 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,655,375 $15.47 $25,609 1.40% -23.38% December 31, 2000 1,348,843 20.19 27,236 1.40% -15.77% December 31, 1999 676,401 23.97 16,211 1.40% 61.09% December 31, 1998 610,300 14.88 9,084 1.40% 27.51% December 31, 1997 443,665 11.67 5,179 1.40% 10.57%
152
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MANAGED GLOBAL SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,726,244 $15.38 $26,550 1.45% -23.41% December 31, 2000 965,140 20.08 19,382 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 3,214,210 $15.26 $49,049 1.55% -23.47% December 31, 2000 3,496,637 19.94 69,740 1.55% -15.90% December 31, 1999 3,306,922 23.71 78,402 1.55% 60.75% December 31, 1998 3,354,682 14.75 49,469 1.55% 27.37% December 31, 1997 2,721,529 11.58 31,522 1.55% 10.41% MANAGED GLOBAL SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 775,245 $15.17 $11,760 1.60% -23.50% December 31, 2000 648,150 19.83 12,855 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 715,835 $15.10 $10,809 1.65% -23.54% December 31, 2000 406,790 19.75 8,034 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 797,712 $15.03 $11,989 1.70% -23.59% December 31, 2000 565,653 19.67 11,126 1.70% -16.01% December 31, 1999 139,357 23.42 3,263 1.70% 60.52% December 31, 1998 67,979 14.59 992 1.70% 27.20% December 31, 1997 3,479 11.47 40 1.70% * MANAGED GLOBAL SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 294,237 $14.96 $4,402 1.75% -23.63% December 31, 2000 138,197 19.59 2,707 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
153
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MANAGED GLOBAL SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,134,099 $14.89 $16,887 1.80% -23.68% December 31, 2000 621,115 19.51 12,116 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 978,251 $14.76 $14,439 1.90% -23.68% December 31, 2000 522,271 19.34 10,103 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - VALUE September 30, 2001 67,679 $16.16 $1,094 0.90% -23.08% December 31, 2000 16,170 21.01 340 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS ONE September 30, 2001 953 $16.75 $16 0.50% -22.88% December 31, 2000 953 21.72 20 0.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 85,421 $14.83 $1,267 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - LANDMARK - 7% SOLUTION September 30, 2001 12,266 $14.63 $179 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
154
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MANAGED GLOBAL SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 9,092 $14.56 $132 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 35,042 $14.49 $508 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 12,423 $14.43 $179 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MANAGED GLOBAL SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 31,322 $14.30 $448 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - DVA 80 September 30, 2001 28,621 $26.70 $764 0.80% -39.21% December 31, 2000 34,806 43.92 1,529 0.80% 7.33% December 31, 1999 5,425 40.92 222 0.80% 77.60% December 31, 1998 31,935 23.04 736 0.80% 21.84% December 31, 1997 14,078 18.91 266 0.80% 18.69% MID-CAP GROWTH SERIES - DVA September 30, 2001 905,561 $26.32 $23,834 1.00% -39.31% December 31, 2000 1,208,636 43.37 52,417 1.00% 7.09% December 31, 1999 328,684 40.50 13,310 1.00% 77.32% December 31, 1998 315,603 22.84 7,210 1.00% 21.55% December 31, 1997 239,052 18.79 4,492 1.00% 18.42%
155
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MID-CAP GROWTH SERIES - DVA SERIES 100 September 30, 2001 14,616 $25.68 $375 1.35% -39.46% December 31, 2000 21,975 42.42 932 1.35% 6.72% December 31, 1999 9,549 39.75 380 1.35% 76.67% December 31, 1998 12,309 22.50 277 1.35% 21.16% December 31, 1997 10,361 18.57 193 1.35% 18.02% MID-CAP GROWTH SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 467,588 $25.87 $12,097 1.25% -39.41% December 31, 2000 519,800 42.70 22,193 1.25% 6.83% December 31, 1999 287,598 39.97 11,494 1.25% 76.86% December 31, 1998 173,070 22.60 3,912 1.25% 21.24% December 31, 1997 85,870 18.64 1,600 1.25% 18.18% MID-CAP GROWTH SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 218,378 $25.78 $5,630 1.30% -39.43% December 31, 2000 122,975 42.56 5,234 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 6,476,393 $25.56 $165,537 1.40% -39.47% December 31, 2000 7,313,425 42.23 308,877 1.40% 6.67% December 31, 1999 4,873,150 39.59 192,951 1.40% 76.50% December 31, 1998 1,905,008 22.43 42,722 1.40% 21.11% December 31, 1997 177,125 18.52 3,280 1.40% 17.99% MID-CAP GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,836,927 $25.51 $72,370 1.45% -39.49% December 31, 2000 1,992,588 42.16 84,008 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
156
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MID-CAP GROWTH SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 5,056,654 $25.33 $128,085 1.55% -39.53% December 31, 2000 5,926,552 41.89 248,288 1.55% 6.48% December 31, 1999 3,717,260 39.34 146,221 1.55% 76.33% December 31, 1998 1,527,664 22.31 34,087 1.55% 20.92% December 31, 1997 518,640 18.45 9,571 1.55% 17.78% MID-CAP GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,316,003 $25.24 $33,216 1.60% -39.56% December 31, 2000 1,290,685 41.76 53,902 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 480,584 $25.15 $12,087 1.65% -39.59% December 31, 2000 186,073 41.63 7,746 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 5,768,581 $25.06 $144,561 1.70% -39.61% December 31, 2000 6,423,421 41.50 266,562 1.70% 6.36% December 31, 1999 4,433,019 39.02 172,992 1.70% 76.00% December 31, 1998 1,235,724 22.17 27,396 1.70% 20.75% December 31, 1997 48,346 18.36 888 1.70% * MID-CAP GROWTH SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 455,958 $24.97 $11,385 1.75% -39.64% December 31, 2000 162,554 41.37 6,725 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,825,791 $24.88 $45,426 1.80% -39.67% December 31, 2000 1,240,675 41.24 51,162 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
157
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MID-CAP GROWTH SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,987,445 $24.70 $49,090 1.90% -39.73% December 31, 2000 1,099,617 40.98 45,058 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - GRANITE PRIMELITE - STANDARD September 30, 2001 3,169 $25.87 $82 1.25% -39.41% December 31, 2000 3,616 42.70 155 1.25% 6.83% December 31, 1999 3,692 39.97 148 1.25% 76.86% December 31, 1998 981 22.60 22 1.25% 21.24% December 31, 1997 202 18.64 4 1.25% * MID-CAP GROWTH SERIES - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 25,059 $25.56 $641 1.40% -39.47% December 31, 2000 27,638 42.23 1,167 1.40% 6.67% December 31, 1999 27,138 39.59 1,075 1.40% 76.50% December 31, 1998 23,659 22.43 531 1.40% 21.11% December 31, 1997 4,122 18.52 76 1.40% * MID-CAP GROWTH SERIES - VALUE September 30, 2001 69,022 $26.52 $1,830 0.90% -39.23% December 31, 2000 48,259 43.64 2,106 0.90% 7.20% December 31, 1999 10,373 40.71 422 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS ONE September 30, 2001 53 $27.27 $1 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 120,860 $24.79 $2,997 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
158
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MID-CAP GROWTH SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 29 $24.62 $1 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS ONE 200 September 30, 2001 17,778 $24.53 $436 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 12,867 $24.44 $315 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 40,447 $24.36 $985 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 12,577 $24.27 $305 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MID-CAP GROWTH SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 19,324 $24.10 $466 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
159
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL GROWTH SERIES - DVA 80 September 30, 2001 4,116 $12.27 $50 0.80% -30.72% December 31, 2000 4,517 17.71 80 0.80% -17.78% December 31, 1999 3,348 21.54 72 0.80% 24.58% December 31, 1998 9,045 17.29 156 0.80% 11.05% December 31, 1997 41,266 15.57 643 0.80% 24.14% CAPITAL GROWTH SERIES - DVA September 30, 2001 222,658 $12.13 $2,701 1.00% -30.84% December 31, 2000 310,535 17.54 5,447 1.00% -17.96% December 31, 1999 390,759 21.38 8,354 1.00% 24.30% December 31, 1998 486,360 17.20 8,365 1.00% 10.90% December 31, 1997 559,791 15.51 8,685 1.00% 23.85% CAPITAL GROWTH SERIES - DVA SERIES 100 September 30, 2001 6,943 $11.90 $83 1.35% -31.01% December 31, 2000 10,129 17.25 175 1.35% -18.25% December 31, 1999 11,902 21.10 251 1.35% 23.90% December 31, 1998 9,399 17.03 160 1.35% 10.44% December 31, 1997 9,355 15.42 144 1.35% 23.47% CAPITAL GROWTH SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 539,160 $11.96 $6,448 1.25% -30.99% December 31, 2000 603,420 17.33 10,460 1.25% -18.18% December 31, 1999 598,663 21.18 12,678 1.25% 24.00% December 31, 1998 537,480 17.08 9,180 1.25% 10.55% December 31, 1997 325,440 15.45 5,027 1.25% 23.61% CAPITAL GROWTH SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 115,080 11.93 1,373 1.30% -31.00% December 31, 2000 87,080 17.29 1,506 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 6,217,395 $11.87 $73,800 140.00% -31.03% December 31, 2000 6,881,891 17.21 118,442 140.00% -18.28% December 31, 1999 5,870,532 21.06 123,629 140.00% 23.81% December 31, 1998 3,297,314 17.01 56,089 140.00% 10.38% December 31, 1997 438,636 15.41 6,758 140.00% 23.42%
160
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,554,649 $11.83 $18,391 1.45% -31.10% December 31, 2000 1,239,023 17.17 21,271 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 5,781,412 $11.77 $68,047 1.55% -31.13% December 31, 2000 6,622,519 17.09 113,149 1.55% -18.39% December 31, 1999 6,210,698 20.94 130,038 1.55% 23.61% December 31, 1998 3,474,459 16.94 58,850 1.55% 10.29% December 31, 1997 1,288,333 15.36 19,795 1.55% 23.17% CAPITAL GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 762,872 $11.73 $8,948 1.60% -31.16% December 31, 2000 740,611 17.04 12,623 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 308,685 $11.70 $3,611 1.65% -31.18% December 31, 2000 181,294 17.00 3,083 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 7,402,690 $11.67 $86,389 1.70% -31.19% December 31, 2000 8,274,067 16.96 140,348 1.70% -18.54% December 31, 1999 7,450,249 20.82 155,103 1.70% 23.41% December 31, 1998 2,741,015 16.87 46,233 1.70% 10.12% December 31, 1997 253,936 15.32 3,891 1.70% *
161
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL GROWTH SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 287,233 $11.64 $3,343 1.75% -31.21% December 31, 2000 116,196 16.92 1,966 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,431,262 $11.60 $16,602 1.80% -31.28% December 31, 2000 1,171,869 16.88 19,782 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,349,664 $11.54 $15,575 1.90% -31.31% December 31, 2000 874,247 16.80 14,687 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - VALUE September 30, 2001 44,814 $12.20 $547 0.90% -30.80% December 31, 2000 21,556 17.63 380 0.90% -17.85% December 31, 1999 5,650 21.46 121 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 55,696 $11.57 $644 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - LANDMARK - 7% SOLUTION September 30, 2001 11,884 $11.48 $136 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
162
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CAPITAL GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 10,446 $11.44 $119 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 29,913 $11.41 $341 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 3,914 $11.38 $44 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CAPITAL GROWTH SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 10,771 $11.32 $122 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - DVA 80 September 30, 2001 6,180 $19.05 $118 0.80% -30.45% December 31, 2000 6,559 27.39 180 0.80% -5.32% December 31, 1999 6,633 28.93 192 0.80% 23.26% December 31, 1998 14,054 23.47 330 0.80% 22.05% December 31, 1997 22,953 19.23 441 0.80% * RESEARCH SERIES - DVA September 30, 2001 235,242 $18.79 $4,420 1.00% -30.54% December 31, 2000 345,241 27.05 9,340 1.00% -5.49% December 31, 1999 431,562 28.62 12,353 1.00% 22.99% December 31, 1998 488,822 23.27 11,377 1.00% 21.77% December 31, 1997 310,066 19.11 5,924 1.00% *
163
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RESEARCH SERIES - DVA SERIES 100 September 30, 2001 15,773 $18.33 $289 1.35% -30.73% December 31, 2000 18,310 26.46 484 1.35% -5.84% December 31, 1999 18,345 28.10 515 1.35% 22.55% December 31, 1998 20,718 22.93 475 1.35% 21.39% December 31, 1997 10,225 18.89 193 1.35% * RESEARCH SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 545,421 $18.46 $10,069 1.25% -30.68% December 31, 2000 604,614 26.63 16,103 1.25% -5.73% December 31, 1999 565,925 28.25 15,988 1.25% 22.67% December 31, 1998 437,189 23.03 10,068 1.25% 21.53% December 31, 1997 223,067 18.95 4,227 1.25% * RESEARCH SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 151,062 $18.40 $2,780 1.30% -30.70% December 31, 2000 86,539 26.55 2,298 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 7,280,053 $18.28 $133,079 1.40% -30.73% December 31, 2000 8,149,685 26.39 215,099 1.40% -5.88% December 31, 1999 6,431,948 28.04 180,345 1.40% 22.50% December 31, 1998 3,902,974 22.89 89,339 1.40% 21.30% December 31, 1997 268,126 18.87 5,058 1.40% * RESEARCH SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,235,494 $18.20 $40,686 1.45% -30.80% December 31, 2000 1,500,906 26.30 39,472 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
164
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RESEARCH SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 6,928,877 $18.07 $125,205 1.55% -30.85% December 31, 2000 7,760,199 26.13 202,800 1.55% -6.01% December 31, 1999 7,240,463 27.80 201,318 1.55% 22.31% December 31, 1998 3,875,695 22.73 88,107 1.55% 21.10% December 31, 1997 816,216 $18.77 $15,317 1.55% * RESEARCH SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,004,999 $18.01 $18,100 1.60% -30.86% December 31, 2000 973,963 26.05 25,373 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 729,950 $17.95 $13,103 1.65% -30.88% December 31, 2000 378,215 25.97 9,822 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 7,797,528 $17.88 $139,420 1.70% -30.94% December 31, 2000 8,763,559 25.89 226,859 1.70% -6.13% December 31, 1999 8,143,207 27.58 224,622 1.70% 22.09% December 31, 1998 3,674,201 22.59 82,990 1.70% 21.00% December 31, 1997 162,677 18.67 3,038 1.70% * RESEARCH SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 471,282 $17.82 $8,398 1.75% -30.96% December 31, 2000 160,258 25.81 4,135 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 156,645 $17.76 $27,717 1.80% -30.95% December 31, 2000 1,007,294 25.72 25,911 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
165
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RESEARCH SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,579,059 $17.64 $27,855 1.90% -30.99% December 31, 2000 807,166 25.56 20,632 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - GRANITE PRIMELITE - STANDARD September 30, 2001 3,050 $18.46 $56 1.25% -30.68% December 31, 2000 3,075 26.63 82 1.25% -5.73% December 31, 1999 2,544 28.25 72 1.25% 22.67% December 31, 1998 3,070 23.03 71 1.25% 21.53% December 31, 1997 102 18.95 2 1.25% * RESEARCH SERIES - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 32,664 $18.28 $597 1.45% -30.73% December 31, 2000 36,485 26.39 963 1.45% -5.88% December 31, 1999 37,387 28.04 1,048 1.45% 22.50% December 31, 1998 38,692 22.89 886 1.45% 21.30% December 31, 1997 11,534 18.87 218 1.45% * RESEARCH SERIES - VALUE September 30, 2001 79,883 $18.92 $1,512 0.90% -30.52% December 31, 2000 35,827 27.23 975 0.90% -5.39% December 31, 1999 10,661 28.78 307 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - VA OPTION II September 30, 2001 109 $18.46 $2 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - VA OPTION III September 30, 2001 241 $18.26 $4 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
166
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RESEARCH SERIES - VA BONUS OPTION I September 30, 2001 1,403 $18.20 $26 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - VA BONUS OPTION II September 30, 2001 2,107 $17.82 $38 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - VA BONUS OPTION III September 30, 2001 64 $17.63 $1 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 111,644 $17.70 $1,976 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - LANDMARK - 7% SOLUTION September 30, 2001 8,156 $17.51 $143 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 12,669 $17.44 $221 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
167
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ RESEARCH SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 60,583 $17.38 $1,053 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 9,308 $17.32 $161 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 19,519 $17.20 $336 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - RESEARCH SERIES - VA OPTION I September 30, 2001 558 $18.85 $11 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - DVA 80 September 30, 2001 3,875 $20.31 $79 0.80% -5.71% December 31, 2000 8,319 21.54 179 0.80% 15.56% December 31, 1999 9,043 18.64 168 0.80% 2.59% December 31, 1998 2,035 18.17 37 0.80% 10.66% December 31, 1997 4,765 16.42 78 0.80% * TOTAL RETURN SERIES - DVA September 30, 2001 243,640 $20.03 $4,880 1.00% -5.83% December 31, 2000 329,747 21.27 7,013 1.00% 15.35% December 31, 1999 399,197 18.44 7,361 1.00% 2.33% December 31, 1998 431,678 18.02 7,778 1.00% 10.48% December 31, 1997 206,943 16.31 3,375 1.00% *
168
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN SERIES - DVA SERIES 100 September 30, 2001 4,553 $19.54 $89 1.35% -6.06% December 31, 2000 7,790 20.80 162 1.35% 14.92% December 31, 1999 5,119 18.10 93 1.35% 1.97% December 31, 1998 6,695 17.75 119 1.35% 10.11% December 31, 1997 4,909 16.12 79 1.35% * TOTAL RETURN SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 734,252 $19.68 $14,450 1.25% -6.02% December 31, 2000 768,269 20.94 16,086 1.25% 15.05% December 31, 1999 831,642 18.20 15,135 1.25% 2.08% December 31, 1998 616,433 17.83 10,989 1.25% 10.20% December 31, 1997 224,763 16.18 3,636 1.25% * TOTAL RETURN SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 274,056 $19.61 $5,374 1.30% -6.04% December 31, 2000 96,349 20.87 2,011 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 9,108,962 $19.48 $177,443 1.40% -6.12% December 31, 2000 9,222,546 20.75 191,336 1.40% 14.89% December 31, 1999 8,274,089 18.06 149,429 1.40% 1.92% December 31, 1998 3,982,960 17.72 70,569 1.40% 10.06% December 31, 1997 286,032 16.10 4,606 1.40% * TOTAL RETURN SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,249,037 $19.41 $63,064 1.45% -6.14% December 31, 2000 1,350,560 20.68 27,924 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
169
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 6,379,123 $19.27 $122,926 1.55% -6.23% December 31, 2000 6,431,976 20.55 132,146 1.55% 14.74% December 31, 1999 6,739,205 17.91 120,710 1.55% 1.76% December 31, 1998 3,973,034 17.60 69,922 1.55% 9.86% December 31, 1997 746,754 16.02 11,962 1.55% * TOTAL RETURN SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 848,279 $19.20 $16,287 1.60% -6.25% December 31, 2000 597,315 20.48 12,233 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 702,859 $19.13 $13,446 1.65% -6.32% December 31, 2000 205,502 20.42 4,195 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 9,439,672 $19.06 $179,920 1.70% -6.34% December 31, 2000 9,095,578 20.35 185,107 1.70% 14.52% December 31, 1999 9,101,947 17.77 161,738 1.70% 1.60% December 31, 1998 3,874,737 17.49 67,753 1.70% 9.72% December 31, 1997 152,264 15.94 2,427 1.70% * TOTAL RETURN SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 643,581 $19.00 $12,228 1.75% -6.36% December 31, 2000 102,750 20.29 2,084 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 2,216,637 $18.93 $41,961 1.80% -6.38% December 31, 2000 836,664 20.22 16,920 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
170
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 2,003,804 $18.79 $37,651 1.90% -6.52% December 31, 2000 506,976 20.10 10,188 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - GRANITE PRIMELITE - STANDARD September 30, 2001 3,886 $19.68 $76 1.25% -6.02% December 31, 2000 4,433 20.94 93 1.20% 15.05% December 31, 1999 4,770 18.20 87 1.25% 2.08% December 31, 1998 10,098 17.83 180 1.25% 10.20% December 31, 1997 63 16.18 1 1.25% * TOTAL RETURN SERIES - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 24,458 $19.48 $476 1.40% -6.12% December 31, 2000 27,675 20.75 574 1.40% 14.89% December 31, 1999 33,383 18.06 603 1.40% 1.92% December 31, 1998 32,769 17.72 581 1.40% 10.06% December 31, 1997 4,893 16.10 79 1.40% * TOTAL RETURN SERIES - VALUE September 30, 2001 96,366 $20.17 $1,944 0.90% -5.75% December 31, 2000 28,821 21.40 617 0.90% 15.43% December 31, 1999 3,045 18.54 56 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS ONE September 30, 2001 243 $20.75 $5 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - VA OPTION II September 30, 2001 4,288 $19.68 $84 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
171
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN SERIES - VA OPTION III September 30, 2001 280 $19.47 $5 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - VA BONUS OPTION I September 30, 2001 16,988 $19.40 $330 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - VA BONUS OPTION II September 30, 2001 14,672 $18.99 $279 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - VA BONUS OPTION III September 30, 2001 5,561 $18.79 $104 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 199,300 $18.86 $3,759 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 360 $18.73 $7 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
172
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN SERIES - LANDMARK - 7% SOLUTION September 30, 2001 51,044 $18.66 $952 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 23,295 $18.60 $433 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 90,079 $18.53 $1,669 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 34,665 $18.46 $640 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 37,681 $18.33 $691 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TOTAL RETURN SERIES - VA OPTION I September 30, 2001 3,332 $20.10 $67 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
173
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH SERIES - DVA 80 September 30, 2001 29,459 $14.28 $421 0.80% -36.95% December 31, 2000 33,891 22.65 768 0.80% -22.62% December 31, 1999 47,480 29.27 1,390 0.80% 76.64% December 31, 1998 35,295 16.57 585 0.80% 25.82% December 31, 1997 41,904 13.17 552 0.80% * GROWTH SERIES - DVA September 30, 2001 520,610 $14.12 $7,351 1.00% -37.08% December 31, 2000 776,539 22.44 17,425 1.00% -22.75% December 31, 1999 818,663 29.05 23,785 1.00% 76.38% December 31, 1998 299,829 16.47 4,940 1.00% 25.53% December 31, 1997 230,798 13.12 3,028 1.00% * GROWTH SERIES - DVA SERIES 100 September 30, 2001 20,302 $13.85 $281 1.35% -37.25% December 31, 2000 28,302 22.07 624 1.35% -23.02% December 31, 1999 28,942 28.67 830 1.35% 75.78% December 31, 1998 11,112 16.31 181 1.35% 25.08% December 31, 1997 2,137 13.04 28 1.35% * GROWTH SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 766,352 $13.93 $10,675 1.25% -37.17% December 31, 2000 913,550 22.17 20,257 1.25% -22.97% December 31, 1999 758,379 28.78 21,827 1.25% 75.92% December 31, 1998 362,210 16.36 5,926 1.25% 25.27% December 31, 1997 161,235 13.06 2,106 1.25% * GROWTH SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 447,747 $13.89 $6,219 1.30% -37.21% December 31, 2000 325,133 22.12 7,192 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 16,208,148 $13.81 $223,836 1.40% -37.28% December 31, 2000 18,211,995 22.02 400,965 1.40% -23.06% December 31, 1999 14,289,972 28.62 408,990 1.40% 75.69% December 31, 1998 3,293,704 16.29 53,670 1.40% 25.02% December 31, 1997 343,006 13.03 4,470 1.40% *
174
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 5,983,525 $13.77 $82,393 1.45% -37.30% December 31, 2000 4,730,311 21.96 103,884 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 11,389,310 $13.70 $156,034 1.55% -37.33% December 31, 2000 13,563,137 21.86 296,433 1.55% -23.19% December 31, 1999 11,168,535 28.46 317,801 1.55% 75.46% December 31, 1998 2,452,149 16.22 39,786 1.55% 24.87% December 31, 1997 763,169 12.99 9,917 1.55% * GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 3,071,660 $13.65 $41,928 1.60% -37.39% December 31, 2000 3,020,949 21.80 65,867 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,077,752 $13.62 $14,679 1.65% -37.38% December 31, 2000 693,052 21.75 15,074 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 15,516,505 $13.58 $210,714 1.70% -37.42% December 31, 2000 18,166,964 21.70 394,196 1.70% -23.29% December 31, 1999 15,200,894 28.29 430,081 1.70% 75.06% December 31, 1998 2,354,360 16.16 38,039 1.70% 24.69% December 31, 1997 238,200 12.96 3,087 1.70% * GROWTH SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 914,364 $13.54 $12,381 1.75% -37.46% December 31, 2000 437,723 21.65 9,475 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
175
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 4,782,438 $13.50 $64,563 1.80% -37.47% December 31, 2000 3,791,737 21.59 81,880 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 3,782,348 $13.43 $50,797 1.90% -37.51% December 31, 2000 2,741,325 21.49 58,911 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - VALUE September 30, 2001 108,342 $14.20 $1,539 0.90% -37.03% December 31, 2000 89,147 22.55 2,010 0.90% -22.67% December 31, 1999 27,642 29.16 806 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS ONE September 30, 2001 808 $14.52 $12 0.50% -36.81% December 31, 2000 808 22.98 19 0.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 190,726 $13.47 $2,569 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 59 $13.39 $1 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
176
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH SERIES - LANDMARK - 7% SOLUTION September 30, 2001 29,936 $13.35 $400 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 15,833 $13.32 $211 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 68,842 $13.28 $914 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 21,376 $13.24 $283 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 23,940 $13.17 $315 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - DVA 80 September 30, 2001 1 $12.46 - 0.80% 2.21% December 31, 2000 1 12.19 - 0.80% * December 31, 1999 - - - - -* December 31, 1998 1,419 13.42 19 0.80% * December 31, 1997 - - - - -
177
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CORE BOND SERIES - DVA September 30, 2001 27,157 $12.28 $334 1.00% 2.08% December 31, 2000 23,535 12.03 283 1.00% -0.08% December 31, 1999 24,119 12.04 291 1.00% -9.54% December 31, 1998 13,446 13.31 179 1.00% * December 31, 1997 - - - - - CORE BOND SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 85,379 $12.07 $1,031 1.25% 1.86% December 31, 2000 59,545 11.85 705 1.25% -0.25% December 31, 1999 35,081 11.88 417 1.25% -9.79% December 31, 1998 6,337 13.17 83 1.25% * December 31, 1997 - - - - - CORE BOND SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 52,003 $12.03 $626 1.30% 1.86% December 31, 2000 16,337 11.81 193 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 1,570,471 $11.94 $18,752 1.40% 1.70% December 31, 2000 1,222,759 11.74 14,352 1.40% -0.42% December 31, 1999 753,003 11.79 8,880 1.40% -9.93% December 31, 1998 396,068 13.09 5,184 1.40% 10.28% December 31, 1997 10,655 11.87 126 1.40% * CORE BOND SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,021,300 $11.90 $12,154 1.45% 1.71% December 31, 2000 380,506 11.70 4,451 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
178
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CORE BOND SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 755,903 $11.82 $8,935 1.55% 1.72% December 31, 2000 490,596 11.62 5,703 1.55% -0.68% December 31, 1999 382,609 11.70 4,475 1.55% -10.00% December 31, 1998 119,924 13.00 1,560 1.55% 10.08% December 31, 1997 310 11.81 4 1.55% * CORE BOND SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 230,279 $11.77 $2,710 1.60% 1.55% December 31, 2000 149,939 11.59 1,738 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 129,309 $11.73 $1,517 1.65% 1.56% December 31, 2000 14,625 11.55 169 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 1,301,011 $11.69 $15,209 1.70% 1.56% December 31, 2000 774,315 11.51 8,916 1.70% -0.78% December 31, 1999 619,047 11.60 7,183 1.70% -10.22% December 31, 1998 194,008 12.92 2,506 1.70% 9.96% December 31, 1997 6,455 11.75 76 1.70% * CORE BOND SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 217,461 $11.65 $2,533 1.75% 1.48% December 31, 2000 16,854 11.48 194 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 601,854 $11.61 $6,988 1.80% 1.49% December 31, 2000 183,296 11.44 2,097 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
179
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CORE BOND SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 796,864 $11.52 $9,180 1.90% 1.32% December 31, 2000 101,438 11.37 1,153 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VALUE September 30, 2001 14,554 $12.37 $180 0.90% 2.15% December 31, 2000 3,821 12.11 46 0.90% 0.00% December 31, 1999 982 12.11 12 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VA OPTION II September 30, 2001 7,070 $12.07 $85 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VA OPTION III September 30, 2001 1,641 $11.94 $20 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VA BONUS OPTION I September 30, 2001 38,207 $11.90 $455 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VA BONUS OPTION II September 30, 2001 45,272 $11.65 $527 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
180
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CORE BOND SERIES - VA BONUS OPTION III September 30, 2001 10,421 $11.52 $120 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 68,308 $11.57 $790 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - LANDMARK - 7% SOLUTION September 30, 2001 68,969 $11.44 $789 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 300,262 $11.40 $345 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 91,233 $11.36 $1,036 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 49,444 $11.32 $560 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
181
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CORE BOND SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 21,872 $11.24 $246 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CORE BOND SERIES - VA OPTION I September 30, 2001 10,596 $12.32 $131 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA 80 September 30, 2001 15,780 $5.75 $91 0.80% -25.42% December 31, 2000 1,553 7.71 12 0.80% -34.33% December 31, 1999 390 11.74 5 0.80% 60.38% December 31, 1998 3,368 7.32 25 0.80% * December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA September 30, 2001 616,226 $5.71 $3,519 1.00% -25.55% December 31, 2000 27,070 7.67 208 1.00% -34.44% December 31, 1999 21,139 11.70 247 1.00% 60.05% December 31, 1998 4,598 7.31 34 1.00% * December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA SERIES 100 September 30, 2001 18,852 $5.63 $106 1.35% * December 31, 2000 - - - - -* December 31, 1999 27,991 11.64 326 1.35% * December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 271,468 $5.65 $1,534 1.25% -25.76% December 31, 2000 48,529 7.61 369 1.25% -34.62% December 31, 1999 683 11.62 8 1.25% 59.67% December 31, 1998 617 7.29 5 1.25% * December 31, 1997 - - - - -
182
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DEVELOPING WORLD SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 149,489 $5.64 $843 1.30% -25.79% December 31, 2000 43,664 7.60 332 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 2,267,539 $5.63 $12,766 1.40% -25.73% December 31, 2000 2,014,773 7.58 15,271 1.40% -34.71% December 31, 1999 2,133,907 11.61 24,775 1.40% 59.48% December 31, 1998 417,221 7.28 3,039 1.40% * December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,442,447 $5.61 $8,092 1.45% -25.89% December 31, 2000 760,057 7.57 5,752 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 1,655,997 $5.59 $9,257 1.55% -25.96% December 31, 2000 991,863 7.55 7,485 1.55% -34.80% December 31, 1999 926,115 11.58 10,722 1.55% 59.28% December 31, 1998 82,414 7.27 599 1.55% * December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 780,175 $5.58 $4,353 1.60% -25.99% December 31, 2000 609,636 7.54 4,594 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
183
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DEVELOPING WORLD SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 187,133 $5.57 $1,042 1.65% -25.93% December 31, 2000 52,533 7.52 395 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 1,462,243 $5.56 $8,130 1.70% -25.97% December 31, 2000 1,788,603 7.51 13,439 1.70% -34.92% December 31, 1999 1,344,878 11.54 15,526 1.70% 58.95% December 31, 1998 11,872 7.26 812 1.70% * December 31, 1997 - - - - - DEVELOPING WORLD SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 131,220 $5.55 $728 1.75% -26.00% December 31, 2000 35,033 7.50 263 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 676,075 $5.54 $3,745 1.80% -26.03% December 31, 2000 549,427 7.49 4,116 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 459,454 $5.52 $2,536 1.90% -26.10% December 31, 2000 259,187 7.47 1,936 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - VALUE September 30, 2001 37,986 $5.73 $218 0.90% -25.49% December 31, 2000 29,347 7.69 226 0.90% -34.39% December 31, 1999 5,500 11.72 64 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - -
184
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DEVELOPING WORLD SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 20,737 $5.53 $115 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - LANDMARK - 7% SOLUTION September 30, 2001 4,949 $5.50 $27 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 28,130 $5.49 $154 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 45,771 $5.48 $251 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 6,824 $5.47 $37 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DEVELOPING WORLD SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 2,649 $5.45 $14 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
185
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ASSET ALLOCATION GROWTH SERIES - DVA September 30, 2001 3,254 $8.15 $27 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 33,038 $8.13 $269 1.25% -13.33% December 31, 2000 9,294 9.38 87 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 33,441 $8.12 $272 1.30% -13.43% December 31, 2000 5,894 9.38 55 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 410,574 $8.11 $3,330 1.40% -13.54% December 31, 2000 41,334 9.38 388 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 805,607 $8.11 $6,534 1.45% -13.54% December 31, 2000 123,421 9.38 1,157 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
186
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ASSET ALLOCATION GROWTH SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 113,064 $8.10 $916 1.55% -13.55% December 31, 2000 25,334 9.37 238 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 173,350 $8.10 $1,404 1.60% -13.55% December 31, 2000 101,509 9.37 951 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 173,728 $8.09 $1,405 1.65% -13.66% December 31, 2000 7,201 9.37 68 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 425,795 $8.09 $3,445 1.70% -13.66% December 31, 2000 36,958 9.37 346 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 213,294 $8.09 $1,726 1.75% -13.66% December 31, 2000 11,921 9.37 112 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 568,801 $8.08 $4,596 1.80% -13.77% December 31, 2000 66,092 9.37 619 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
187
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ASSET ALLOCATION GROWTH SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 717,619 $8.07 $5,953 1.90% -13.87% December 31, 2000 72,072 9.37 675 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - VALUE September 30, 2001 4,456 $8.16 $36 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 93,423 $8.08 $755 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - LANDMARK - 7% SOLUTION September 30, 2001 11,876 $8.07 $96 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 7,635 $8.06 $62 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 97,088 $8.06 $783 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
188
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ASSET ALLOCATION GROWTH SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 3,379 $8.05 $27 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION GROWTH SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 15,195 $8.04 $122 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA September 30, 2001 3,532 $7.73 $27 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 32,248 $7.71 $249 1.25% -21.96% December 31, 2000 6,748 9.88 66 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 43,184 $7.71 $333 1.30% -21.96% December 31, 2000 5,137 9.88 50 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 598,545 $7.70 $4,609 1.40% -22.06% December 31, 2000 290,230 9.88 2,867 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
189
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED MID-CAP SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 811,709 $7.70 $6,250 1.45% -22.06% December 31, 2000 131,431 9.88 1,298 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 214,593 $7.69 $1,650 1.55% -22.09% December 31, 2000 185,852 9.87 1,835 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 150,420 $7.68 $1,155 1.60% -22.19% December 31, 2000 80,992 9.87 799 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 287,617 $7.68 $2,209 1.65% -22.19% December 31, 2000 9,164 9.87 90 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 539,905 $7.67 $4,141 1.70% -22.29% December 31, 2000 285,263 9.87 2,816 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
190
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED MID-CAP SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 217,807 $7.67 $1,671 1.75% -22.29% December 31, 2000 10,627 9.87 109 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 559,634 $7.67 $4,599 1.80% -22.29% December 31, 2000 55,360 9.87 546 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 855,130 $7.66 $6,550 1.90% -22.39% December 31, 2000 89,462 9.87 882 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - VALUE September 30, 2001 4,946 $7.74 $38 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 151,180 $7.66 $1,158 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - LANDMARK - 7% SOLUTION September 30, 2001 8,778 $7.65 $67 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
191
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED MID-CAP SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 10,145 $7.65 $78 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 33,078 $7.64 $253 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 13,184 $7.64 $101 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - DIVERSIFIED MID-CAP SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 7,515 $7.63 $57 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA September 30, 2001 387 $9.72 $4 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 41,046 $9.68 $397 1.25% -14.18% December 31, 2000 13,281 11.28 150 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
192
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INVESTORS SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 122,216 $9.67 $1,182 1.30% -14.20% December 31, 2000 29,577 11.27 333 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 833,619 $9.65 $8,044 1.40% -14.30% December 31, 2000 539,461 11.26 6,075 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,038,765 $9.65 $10,024 1.45% -14.30% December 31, 2000 313,828 11.26 3,533 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 482,420 $9.63 $4,646 1.55% -14.40% December 31, 2000 198,869 11.25 2,236 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 328,509 $9.62 $3,160 1.60% -14.41% December 31, 2000 202,765 11.24 2,280 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
193
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INVESTORS SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 243,387 $9.61 $2,339 1.65% -14.50% December 31, 2000 21,065 11.24 237 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 1,067,720 $9.60 $10,250 1.70% -14.51% December 31, 2000 234,838 11.23 2,637 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 256,064 $9.60 $2,458 1.75% -14.51% December 31, 2000 11,867 11.23 133 1.57% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 658,298 $9.59 $6,313 1.80% -14.53% December 31, 2000 145,735 11.22 1,635 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,376,521 $9.57 $13,173 1.90% -14.63% December 31, 2000 191,223 11.21 2,144 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - VALUE September 30, 2001 31,895 $9.73 $310 0.90% -13.97% December 31, 2000 14,613 11.31 165 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
194
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INVESTORS SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 125,761 $9.58 $1,205 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 597 $9.56 $6 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - LANDMARK - 7% SOLUTION September 30, 2001 11,144 $9.56 $106 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 4,389 $9.55 $42 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 47,822 $9.54 $456 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INVESTORS SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 11,165 $9.53 $106 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
195
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INVESTORS SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 32,542 $9.51 $309 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA September 30, 2001 10,133 $8.33 $84 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 71,178 $8.31 $591 1.25% -16.48% December 31, 2000 3,617 9.95 36 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 567,663 $8.30 $4,711 1.30% -16.58% December 31, 2000 23,267 9.95 231 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 275,548 $8.30 $2,287 1.40% -16.50% December 31, 2000 274,785 9.94 2,733 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 472,680 $8.29 $3,918 1.45% -16.60% December 31, 2000 170,460 9.94 1,695 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
196
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 500,666 $8.27 $4,140 1.55% -16.80% December 31, 2000 88,531 9.94 880 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 865,472 $8.27 $7,157 1.60% -16.80% December 31, 2000 128,409 9.94 1,276 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 20,818 $8.27 $172 1.65% -16.80% December 31, 2000 19,469 9.94 193 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 1,615,747 $8.26 $13,346 1.70% -16.90% December 31, 2000 283,250 9.94 2,815 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 169,871 $8.28 $1,406 1.75% -16.70% December 31, 2000 21,427 9.94 213 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 158,659 $8.26 $1,310 1.80% -16.82% December 31, 2000 148,807 9.93 1,478 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
197
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 285,223 $8.26 $2,356 1.90% -16.82% December 31, 2000 113,353 9.93 1,126 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - GRANITE PRIMELITE - STANDARD September 30, 2001 9,623 $8.31 $80 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 1,191,203 $8.30 $9,887 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - VALUE September 30, 2001 5,022 $8.38 $42 0.90% -15.86% December 31, 2000 5,022 9.96 50 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - VA OPTION II September 30, 2001 61,130 $8.31 $508 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - VA OPTION III September 30, 2001 16,169 $8.30 $134 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
198
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME SERIES - VA BONUS OPTION I September 30, 2001 318,224 $8.38 $2,635 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - VA BONUS OPTION II September 30, 2001 973,268 $8.27 $8,049 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 32,966 $8.25 $272 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - 5.5% SOLUTION (POST APRIL 2001), LANDMARK - MAX 5.5% September 30, 2001 12,702 $8.25 $105 1.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - LANDMARK - 7% SOLUTION September 30, 2001 67,455 $8.24 $556 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 8,054 $8.24 $66 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
199
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 21,084 $8.23 $173 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 21,886 $8.34 $183 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 9,896 $8.34 $83 * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME SERIES - VA OPTION I September 30, 2001 9,896 $8.34 $83 9.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 24,573 $7.30 $179 1.25% -17.89% December 31, 2000 2,315 8.89 21 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 51,293 $7.29 $374 1.30% -18.00% December 31, 2000 18,016 8.89 160 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
200
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SPECIAL SITUATIONS SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 335,769 $7.29 $2,448 1.40% -18.00% December 31, 2000 121,670 8.89 1,081 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 420,456 $7.28 $3,061 1.45% -18.11% December 31, 2000 76,347 8.89 678 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 150,282 $7.27 $1,092 1.55% -18.22% December 31, 2000 85,716 8.89 762 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 129,364 $7.27 $940 1.60% -18.13% December 31, 2000 66,473 8.88 591 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 131,429 $7.27 $955 1.65% -18.13% December 31, 2000 9,174 8.88 81 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
201
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SPECIAL SITUATIONS SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 387,974 $7.26 $2,817 1.70% -18.24% December 31, 2000 131,190 8.88 1,165 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 146,628 $7.26 $1,065 1.75% -18.24% December 31, 2000 5,866 8.88 52 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 270,654 $7.26 $1,965 1.80% -18.24% December 31, 2000 62,575 8.88 556 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 298,340 $7.25 $2,163 1.90% -18.36% December 31, 2000 83,761 8.88 744 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - VALUE September 30, 2001 1,947 $7.32 $14 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 61,875 $7.25 $449 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
202
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SPECIAL SITUATIONS SERIES - LANDMARK - 7% SOLUTION September 30, 2001 11,971 $7.24 $87 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 3,038 $7.24 $22 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 15,222 $7.23 $110 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 3,214 $7.23 $23 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SPECIAL SITUATIONS SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 4,538 $7.22 $33 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA September 30, 2001 367 $6.19 $2 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
203
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNET TOLLKEEPER SERIES - DVA SERIES 100 September 30, 2001 1,522 $6.18 $9 1.35% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 174 $6.19 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,305 $6.19 $20 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 36,526 $6.18 $226 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 36,930 $6.18 $228 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
204
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNET TOLLKEEPER SERIES - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 10,102 $6.18 $62 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,873 $6.18 $12 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 27,546 $6.18 $170 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 31,199 $6.18 $193 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 26,102 $6.17 $161 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 23,653 $6.17 $146 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
205
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNET TOLLKEEPER SERIES - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 93,162 $6.17 $575 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - VALUE September 30, 2001 612 $6.20 $4 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 18,914 $6.17 $117 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - LANDMARK - 7% SOLUTION September 30, 2001 1,754 $6.17 $11 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 5,208 $6.17 $32 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 6,446 $6.17 $40 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
206
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNET TOLLKEEPER SERIES - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 1,678 $6.16 $10 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNET TOLLKEEPER SERIES - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 2,872 $6.16 $18 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 10,150 $6.37 $65 1.25% -27.28% December 31, 2000 10,619 8.76 93 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 38,713 $6.36 $246 1.30% -27.40% December 31, 2000 8,037 8.76 70 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 268,018 $6.35 $1,708 1.40% -27.43% December 31, 2000 110,552 8.75 968 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 382,459 $6.35 $2,429 1.45% -27.43% December 31, 2000 169,871 8.75 1,486 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
207
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ WORLDWIDE GROWTH FUND - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 98,794 $6.34 $626 1.55% -27.54% December 31, 2000 21,575 8.75 189 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 130,183 $6.33 $824 1.60% -27.57% December 31, 2000 85,307 8.74 746 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 110,827 $6.33 $702 1.65% -27.57% December 31, 2000 39,547 8.74 346 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 195,210 $6.32 $1,234 1.70% -27.69% December 31, 2000 28,853 8.74 252 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 129,023 $6.32 $815 1.75% -27.61% December 31, 2000 7,369 8.73 64 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 257,778 $6.31 $1,627 1.80% -27.72% December 31, 2000 84,578 8.73 738 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
208
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ WORLDWIDE GROWTH FUND - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 386,097 $6.31 $2,436 1.90% -27.64% December 31, 2000 68,648 8.72 599 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - VALUE September 30, 2001 16,993 $6.40 $109 0.90% -27.11% December 31, 2000 336 8.78 3 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - VA OPTION II September 30, 2001 1,294 $6.37 $8 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - VA OPTION III September 30, 2001 545 $6.35 $3 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - VA BONUS OPTION I September 30, 2001 1,621 $6.35 $10 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - VA BONUS OPTION II September 30, 2001 3,192 $6.32 $20 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
209
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ WORLDWIDE GROWTH FUND - VA BONUS OPTION III September 30, 2001 184 $6.31 $1 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 44,319 $6.31 $280 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - LANDMARK - 7% SOLUTION September 30, 2001 10,013 $6.30 $63 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 15,560 $6.29 $98 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 14,653 $6.29 $92 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH FUND - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 4,492 $6.28 $28 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
210
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ WORLDWIDE GROWTH FUND - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 4,879 $6.27 $31 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA September 30, 2001 508 $6.76 $3 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 128 $6.76 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,151 $6.75 $15 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 31,070 $6.75 $210 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 74,945 $6.75 $506 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
211
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 14,157 $6.75 $96 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 9,147 $6.75 $62 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 20,211 $6.74 $136 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 22,736 $6.74 $153 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 11,733 $6.74 $79 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 36,330 $6.74 $245 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
212
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 59,324 $6.74 $400 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - VALUE September 30, 2001 628 $6.77 $4 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 7,662 $6.74 $52 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 3,577 $6.73 $24 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 3,179 $6.73 $21 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 5,541 $6.73 $37 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
213
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 2,658 $6.73 $18 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH OPPORTUNITIES PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 1,108 $6.73 $7 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA September 30, 2001 15,145 $8.62 $131 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 103 $8.61 $1 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 27,111 $8.60 $233 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 61,800 $8.60 $531 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
214
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MAGNACAP PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 4,264 $8.60 $37 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 3,204 $8.60 $28 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 6,222 $8.59 $53 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 31,258 $8.59 $268 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 7,304 $8.59 $63 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 70,446 $8.59 $605 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
215
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MAGNACAP PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 62,404 $8.59 $536 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - VA BONUS OPTION I September 30, 2001 86 $8.60 $1 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 14,069 $8.59 $121 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 1,888 $8.58 $16 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 10,753 $8.58 $92 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 6,520 $8.58 $56 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
216
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ MAGNACAP PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 5,705 $8.58 $49 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 3,153 $8.57 $27 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - MAGNACAP PORTFOLIO - VA OPTION I September 30, 2001 96 $8.62 $1 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA September 30, 2001 1,545 $7.14 $11 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 4,034 $7.13 $29 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 12,412 $7.13 $89 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
217
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 97,081 $7.13 $692 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 143,198 $7.13 $1,021 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 23,104 $7.13 $165 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 7,085 $7.12 $50 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 43,324 $7.12 $309 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
218
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 85,946 $7.12 $612 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 37,297 $7.12 $266 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 89,096 $7.12 $634 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 128,130 $7.11 $911 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - VALUE September 30, 2001 1,702 $7.14 $12 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 44,841 $7.12 $319 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
219
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL CAP OPPORTUNITIES PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 15,342 $7.11 $109 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 1,652 $7.11 $12 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 14,685 $7.11 $104 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 5,961 $7.11 $42 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL CAP OPPORTUNITIES PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 1,730 $7.10 $12 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONVERTIBLE CLASS PORTFOLIO - VA OPTION II September 30, 2001 3,472 $9.82 $34 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
220
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CONVERTIBLE CLASS PORTFOLIO - VA BONUS OPTION I September 30, 2001 1,454 $9.82 $14 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONVERTIBLE CLASS PORTFOLIO - VA BONUS OPTION II September 30, 2001 78 $9.81 $1 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA OPTION II September 30, 2001 8,148 $9.46 $77 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA BONUS OPTION I September 30, 2001 63 $9.46 - 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA BONUS OPTION II September 30, 2001 2,323 $9.45 $22 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA OPTION I September 30, 2001 223 $9.47 $2 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
221
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ LARGECAP GROWTH PORTFOLIO - VA OPTION II September 30, 2001 1,127 $8.66 $10 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGECAP GROWTH PORTFOLIO - VA BONUS OPTION I September 30, 2001 13,954 $8.65 $121 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGECAP GROWTH PORTFOLIO - VA BONUS OPTION II September 30, 2001 2,433 $8.65 $21 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - LARGECAP GROWTH PORTFOLIO - VA OPTION I September 30, 2001 2,015 $8.66 $17 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA 80 September 30, 2001 1 $9.88 - 0.80% -2.85% December 31, 2000 1 10.17 - 0.80% -1.64% December 31, 1999 1,147 10.34 12 0.80% 2.17% December 31, 1998 2,973 10.12 30 0.80% * December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA September 30, 2001 104,617 $9.81 $1,026 1.00% -3.06% December 31, 2000 126,903 10.12 1,284 1.00% -1.84% December 31, 1999 151,044 10.31 1,557 1.00% 1.98% December 31, 1998 107,998 10.11 1,092 1.00% * December 31, 1997 - - - - -
222
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO HIGH YIELD BOND PORTFOLIO - DVA SERIES 100 September 30, 2001 944 $9.70 $9 1.35% -3.29% December 31, 2000 948 10.03 10 1.35% -2.15% December 31, 1999 951 10.25 10 1.35% * December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 295,138 $9.73 $2,872 1.25% -3.18% December 31, 2000 362,732 10.05 3,645 1.25% -2.14% December 31, 1999 400,821 10.27 4,115 1.25% 1.78% December 31, 1998 213,774 10.09 2,157 1.25% * December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 154,614 $9.71 $1,501 1.30% -3.29% December 31, 2000 63,647 10.04 639 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 5,535,157 $9.67 $53,525 1.40% -3.40% December 31, 2000 5,140,417 10.01 51,454 1.40% -2.25% December 31, 1999 5,053,973 10.24 51,749 1.40% 1.59% December 31, 1998 1,630,971 10.08 16,440 1.40% * December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,219,094 $9.66 $21,436 1.45% -3.11% December 31, 2000 908,512 9.97 9,082 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
< 223
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 3,242,279 $9.63 $31,223 1.55% -3.41% December 31, 2000 3,158,188 9.97 31,485 1.55% -2.35% December 31, 1999 3,194,935 10.21 32,631 1.55% 1.39% December 31, 1998 1,066,219 10.07 10,737 1.55% * December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 684,691 $9.61 $6,580 1.60% -3.51% December 31, 2000 498,509 9.96 4,963 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 477,989 $9.59 $4,584 1.65% -3.52% December 31, 2000 111,021 9.94 1,104 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 5,212,425 $9.58 $49,935 1.70% -3.52% December 31, 2000 4,861,887 9.93 48,273 1.70% -2.55% December 31, 1999 5,486,600 10.19 55,895 1.70% 1.29% December 31, 1998 1,558,466 10.06 15,678 1.70% * December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 392,947 $9.56 $3,756 1.75% -3.63% December 31, 2000 64,046 9.92 635 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,653,482 $9.54 $15,774 1.80% -3.64% December 31, 2000 631,991 9.90 6,258 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
224
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,606,023 $9.51 $15,273 1.90% -3.74% December 31, 2000 386,288 9.88 3,815 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VALUE September 30, 2001 36,999 $9.85 $364 0.90% -2.96% December 31, 2000 20,732 10.15 210 0.90% -1.74% December 31, 1999 8,722 10.33 90 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS ONE September 30, 2001 178 $9.98 $2 0.50% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VA OPTION II September 30, 2001 488 $9.73 $5 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VA OPTION III September 30, 2001 387 $9.68 $4 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VA BONUS OPTION I September 30, 2001 6,606 $9.66 $64 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
225
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO HIGH YIELD BOND PORTFOLIO - VA BONUS OPTION II September 30, 2001 912 $9.56 $9 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VA BONUS OPTION III September 30, 2001 2,321 $9.51 $22 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 98,491 $9.53 $938 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 21,091 $9.48 $200 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 30,485 $9.46 $288 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 50,520 $9.44 $477 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
226
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 15,339 $9.43 $144 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 51,019 $9.39 $479 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO HIGH YIELD BOND PORTFOLIO - VA OPTION I September 30, 2001 751 $9.83 $7 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA 80 September 30, 2001 398 $9.51 $4 0.80% -20.15% December 31, 2000 399 11.91 5 0.80% -10.18% December 31, 1999 651 13.26 9 0.80% 18.82% December 31, 1998 13,664 11.16 152 0.80% * December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA September 30, 2001 95,553 $9.44 $902 1.00% -20.34% December 31, 2000 117,131 11.85 1,388 1.00% -10.36% December 31, 1999 116,144 13.22 1,535 1.00% 18.67% December 31, 1998 160,283 11.14 1,786 1.00% * December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA SERIES 100 September 30, 2001 2,451 $9.33 $23 1.35% -20.46% December 31, 2000 2,489 11.73 29 1.35% -10.73% December 31, 1999 292 13.14 4 1.35% * December 31, 1998 - - - - - December 31, 1997 - - - - -
227
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 241,750 $9.36 $2,263 1.25% -20.48% December 31, 2000 281,922 11.77 3,317 1.25% -10.56% December 31, 1999 284,260 13.16 3,742 1.25% 18.35% December 31, 1998 112,706 11.12 1,253 1.25% * December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 118,406 $9.35 $1,107 1.30% -20.43% December 31, 2000 86,637 11.75 1,018 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 5,430,120 $9.32 $50,609 1.40% -20.48% December 31, 2000 6,006,923 11.72 70,399 1.40% -10.74% December 31, 1999 4,797,771 13.13 62,999 1.40% 18.18% December 31, 1998 1,527,697 11.11 16,975 1.40% * December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,808,459 $9.30 $16,819 1.50% -20.51% December 31, 2000 1,178,840 11.70 13,797 1.50% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 4,091,864 $9.26 $37,891 1.55% -20.65% December 31, 2000 4,659,705 11.67 54,389 1.55% -10.92% December 31, 1999 4,371,570 13.10 57,257 1.55% 18.02% December 31, 1998 942,738 11.10 10,465 1.55% * December 31, 1997 - - - - -
228
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 612,716 $9.25 $5,668 1.60% -20.67% December 31, 2000 624,891 11.66 7,284 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 341,040 $9.24 $3,151 1.65% -20.62% December 31, 2000 187,618 11.64 2,184 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 6,133,577 $9.22 $56,552 1.70% -20.65% December 31, 2000 6,921,410 11.62 80,461 1.70% -11.03% December 31, 1999 7,320,301 13.06 95,636 1.70% 17.76% December 31, 1998 1,910,695 11.09 21,188 1.70% * December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 339,021 $9.20 $3,101 1.75% -20.76% December 31, 2000 70,828 11.61 822 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,547,285 $9.19 $14,219 1.80% -20.71% December 31, 2000 1,176,897 11.59 13,644 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 1,137,718 $9.16 $10,421 1.90% -20.76% December 31, 2000 829,397 11.56 9,589 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
229
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - VALUE September 30, 2001 15,764 $9.48 $149 0.90% -20.20% December 31, 2000 13,298 11.88 158 0.90% -10.27% December 31, 1999 3,634 13.24 48 0.90% * December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 89,700 $9.17 $823 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 7,629 $9.12 $69 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 5,655 $9.11 $51 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 21,104 $9.09 $192 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 2,035 $9.08 $18 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
230
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 12,310 $9.04 $111 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA September 30, 2001 6,030 $5.43 $33 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 1,982 $5.41 $11 1.25% -31.08% December 31, 2000 2,731 7.85 21 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 108,538 $5.41 $587 1.30% -31.08% December 31, 2000 37,201 7.85 292 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 439,827 $5.40 $2,375 1.40% -31.21% December 31, 2000 194,916 7.85 1,529 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 593,433 $5.40 $3,205 1.45% -31.12% December 31, 2000 242,694 7.84 1,902 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
231
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 212,082 $5.39 $1,143 1.55% -31.25% December 31, 2000 64,129 7.84 503 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 166,067 $5.39 $895 1.60% -31.25% December 31, 2000 92,165 7.84 722 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 112,727 $5.38 $606 1.65% -31.29% December 31, 2000 15,840 7.83 124 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 351,946 $5.38 $1,893 1.70% -31.29% December 31, 2000 75,572 7.83 592 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 165,116 $5.37 $887 1.75% -31.42% December 31, 2000 19,630 7.83 154 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 342,319 $5.37 $1,838 1.80% -31.33% December 31, 2000 89,929 7.82 704 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
232
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PRUDENTIAL JENNISON PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 621,419 $5.36 $3,331 1.90% -31.46% December 31, 2000 152,003 7.82 1,189 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - VALUE September 30, 2001 3,917 $5.44 $21 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - VA BONUS OPTION II September 30, 2001 7,723 $5.37 $41 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - VA BONUS OPTION III September 30, 2001 1,263 $5.36 $7 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 25,797 $5.37 $139 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 18,729 $5.35 $100 2.00% * December 31, 2000 - - - 0.00% - December 31, 1999 - - - 0.00% - December 31, 1998 - - - 0.00% - December 31, 1997 - - - 0.00% -
233
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PRUDENTIAL JENNISON PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 1,929 $5.35 $10 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 26,406 $5.35 $141 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 7,412 $5.34 $40 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PRUDENTIAL JENNISON PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 19,897 $5.34 $106 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA September 30, 2001 305 $5.04 $2 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 17,728 $5.03 $89 1.25% -41.31% December 31, 2000 7,751 8.57 66 1.25% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
234
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 63,285 $5.02 $318 1.30% -41.42% December 31, 2000 6,381 8.57 55 1.30% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 255,320 $5.02 $1,282 1.40% -41.36% December 31, 2000 65,551 8.56 561 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 315,860 $5.02 $1,586 1.45% -41.36% December 31, 2000 44,024 8.56 377 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 109,712 $5.01 $550 1.55% -41.47% December 31, 2000 64,843 8.56 555 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 38,992 $5.01 $195 1.60% -41.47% December 31, 2000 58,710 8.56 503 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
235
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 54,573 $5.01 $274 1.65% -41.47% December 31, 2000 3,557 8.56 30 1.65% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 195,389 $5.00 $977 1.70% -41.59% December 31, 2000 15,695 8.56 134 1.70% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 108,649 $5.00 $543 1.75% -41.59% December 31, 2000 7,516 8.56 64 1.75% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 206,875 $5.00 $1,035 1.80% -41.52% December 31, 2000 12,698 8.55 109 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 216,863 $4.99 $1,082 1.90% -41.64% December 31, 2000 28,074 8.55 240 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - VALUE September 30, 2001 15,037 $5.04 $76 0.90% -41.19% December 31, 2000 2,995 8.57 26 0.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
236
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - VA BONUS OPTION III September 30, 2001 466 $4.99 $2 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 8,200 $5.00 $41 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - LANDMARK - 7% SOLUTION September 30, 2001 3,503 $4.99 $18 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 4,424 $4.99 $22 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 42,442 $4.98 $211 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 2,963 $4.98 $15 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
237
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SP JENNISON INTERNATIONAL GROWTH PORTFOLIO - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 6,285 $4.98 $31 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - APPRECIATION PORTFOLIO - GRANITE PRIMELITE - STANDARD September 30, 2001 415 $15.74 $7 1.25% -13.33% December 31, 2000 419 18.16 8 1.25% -1.68% December 31, 1999 711 18.47 13 1.25% 11.74% December 31, 1998 1,108 16.53 18 1.25% * December 31, 1997 - - - - - APPRECIATION PORTFOLIO - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 44,156 $15.61 $689 1.40% -13.42% December 31, 2000 45,655 18.03 823 1.40% -1.80% December 31, 1999 52,802 18.36 970 1.40% 11.48% December 31, 1998 58,107 16.47 957 1.40% 17.56% December 31, 1997 18,759 14.01 263 1.40% * SMITH BARNEY HIGH INCOME PORTFOLIO - GRANITE PRIMELITE - STANDARD September 30, 2001 4,246 $11.35 $48 1.25% -9.63% December 31, 2000 4,903 12.56 62 1.25% -9.25% December 31, 1999 5,981 13.84 83 1.25% 1.32% December 31, 1998 12,711 13.66 174 1.25% -0.80% December 31, 1997 73 13.77 1 1.25% * SMITH BARNEY HIGH INCOME PORTFOLIO - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 27,291 $11.24 $307 1.40% -9.79% December 31, 2000 30,852 12.46 384 1.40% -9.32% December 31, 1999 33,782 13.74 464 1.40% 1.18% December 31, 1998 46,593 13.58 633 1.40% -1.02% December 31, 1997 15,160 13.72 208 1.40% * SMITH BARNEY LARGE CAP VALUE PORTFOLIO - GRANITE PRIMELITE - STANDARD September 30, 2001 2,930 $18.29 $54 1.25% -14.29% December 31, 2000 3,364 21.34 72 1.25% 11.67% December 31, 1999 4,123 19.11 79 1.25% -1.24% December 31, 1998 1,600 19.35 31 1.25% * December 31, 1997 - - - 1.25% -
238
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMITH BARNEY LARGE CAP VALUE PORTFOLIO - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 26,504 $18.11 $480 1.40% -14.41% December 31, 2000 29,285 21.16 620 1.40% 11.49% December 31, 1999 29,721 18.98 564 1.40% -1.35% December 31, 1998 34,859 19.24 671 1.40% * December 31, 1997 12,137 17.77 216 1.40% - SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO - GRANITE PRIMELITE - STANDARD September 30, 2001 1,970 $10.82 $21 1.25% -39.52% December 31, 2000 2,260 17.89 40 1.25% -24.77% December 31, 1999 2,572 23.78 61 1.25% 65.71% December 31, 1998 2,885 14.35 41 1.25% 5.13% December 31, 1997 130 13.65 2 1.25% * SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 22,920 $10.72 $246 1.40% -39.57% December 31, 2000 23,397 17.74 415 1.40% -24.86% December 31, 1999 20,133 23.61 476 1.40% 65.34% December 31, 1998 19,916 14.28 285 1.40% 5.08% December 31, 1997 6,948 13.59 94 1.40% * SMITH BARNEY MONEY MARKET PORTFOLIO - GRANITE PRIMELITE - STANDARD September 30, 2001 9,765 $12.65 $123 1.25% 2.18% December 31, 2000 10,771 12.38 133 1.25% 4.74% December 31, 1999 10,885 11.82 129 1.25% 3.41% December 31, 1998 2,017 11.43 23 1.25% * December 31, 1997 - - - - - SMITH BARNEY MONEY MARKET PORTFOLIO - GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 8,106 $12.53 $102 1.40% 2.12% December 31, 2000 1,839 12.27 23 1.40% 4.51% December 31, 1999 38,389 11.74 450 1.40% 3.25% December 31, 1998 25,941 11.37 295 1.40% 3.65% December 31, 1997 16,571 10.97 182 1.40% * INTERNATIONAL EQUITY PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 5,218,702 $8.03 $41,911 1.40% -29.38% December 31, 2000 5,535,477 11.37 62,958 1.40% -26.97% December 31, 1999 4,666,041 15.57 72,629 1.40% 51.31% December 31, 1998 2,422,075 10.29 24,919 1.40% 3.94% December 31, 1997 90,783 9.90 899 1.40% *
239
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,058,984 $8.07 $24,686 1.45% -29.40% December 31, 2000 1,257,278 11.43 14,365 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 2,226,022 $8.02 $17,853 1.55% -29.46% December 31, 2000 2,474,742 11.37 28,140 1.55% -26.97% December 31, 1999 1,959,322 15.57 30,538 1.55% 50.87% December 31, 1998 680,861 10.32 7,025 1.55% 3.72% December 31, 1997 36,098 9.95 359 1.55% * INTERNATIONAL EQUITY PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 982,192 $7.87 $7,730 1.90% -29.61% December 31, 2000 685,944 11.18 7,669 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 55,251 $7.98 $441 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 4,897,434 $7.96 $38,984 1.70% -29.50% December 31, 2000 5,326,265 11.29 60,130 1.70% -27.16% December 31, 1999 4,663,701 15.50 72,274 1.70% 50.93% December 31, 1998 1,736,713 10.27 17,841 1.70% 3.53% December 31, 1997 72,955 9.92 724 1.70% * INTERNATIONAL EQUITY PORTFOLIO - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 69,737 $7.93 $553 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
240
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 983,178 $8.00 $7,866 1.60% -29.45% December 31, 2000 804,897 11.34 9,130 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,218,081 $7.91 $9,635 1.80% -29.56% December 31, 2000 1,033,869 11.23 11,615 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - VALUE September 30, 2001 54,556 $8.32 $454 0.90% -29.07% December 31, 2000 52,151 11.73 611 0.90% * December 31, 1999 8,033 15.97 128 0.90% - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL EQUITY PORTFOLIO - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 49,790 $7.89 $393 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 12,391 $9.29 $115 1.40% -13.82% December 31, 2000 10,075 10.78 109 1.40% 0.75% December 31, 1999 4,460 10.70 48 1.40% * December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 72,758 $9.28 $675 1.45% -13.91% December 31, 2000 70,287 10.78 757 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
241
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ASSET ALLOCATION PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 6,214 $9.27 $57 1.55% -13.85% December 31, 2000 4,515 10.76 49 1.55% 0.56% December 31, 1999 832 10.70 9 1.55% * December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 9,691 $9.26 $90 1.60% -13.94% December 31, 2000 6,792 10.76 73 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 18,040 $9.24 $167 1.70% -13.97% December 31, 2000 18,669 10.74 200 1.70% 0.37% December 31, 1999 7,153 10.70 76 1.70% * December 31, 1998 - - - - - December 31, 1997 - - - - - ASSET ALLOCATION PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 12,024 $9.22 $111 1.80% -14.07% December 31, 2000 18,516 10.73 199 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 9,562 $8.18 $78 1.40% -28.31% December 31, 2000 10,577 11.41 121 1.40% -3.22% December 31, 1999 8,936 11.79 105 1.40% * December 31, 1998 - - - - - December 31, 1997 - - - - -
242
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 48,730 $8.17 $398 1.45% -28.40% December 31, 2000 46,533 11.41 531 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 11,460 $8.15 $94 1.55% -28.45% December 31, 2000 12,157 11.39 138 1.55% -3.39% December 31, 1999 11,848 11.79 140 1.55% * December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 3,113 $8.15 $25 1.60% -28.38% December 31, 2000 3,426 11.38 39 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 5,845 $8.13 $48 1.70% -28.50% December 31, 2000 6,672 11.37 76 1.70% -3.48% December 31, 1999 4,420 11.78 52 1.70% * December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 14,840 $8.11 $120 1.80% -28.61% December 31, 2000 14,623 11.36 166 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
243
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH & INCOME PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II, GRANITE PRIMELITE - ANNUAL RATCHET September 30, 2001 8,525 $9.30 $79 1.40% -15.30% December 31, 2000 9,132 10.98 100 1.40% 4.08% December 31, 1999 8,512 10.55 90 1.40% * December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH & INCOME PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 7,227 $9.29 $67 1.45% -15.39% December 31, 2000 4,780 10.98 52 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH & INCOME PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 920 $9.27 $9 1.55% -15.42% December 31, 2000 992 10.96 11 1.55% 3.89% December 31, 1999 1,122 10.55 12 1.55% * December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH & INCOME PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 1,438 $9.26 $13 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH & INCOME PORTFOLIO - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 3,603 $9.24 $33 1.70% -15.54% December 31, 2000 3,904 10.94 43 1.70% 3.80% December 31, 1999 493 10.54 5 1.70% * December 31, 1998 - - - - - December 31, 1997 - - - - -
244
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH & INCOME PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 807 $9.22 $8 1.80% -15.65% December 31, 2000 7,086 10.93 78 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HIGH QUALITY BOND PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 8,162 $11.74 $96 1.40% 6.24% December 31, 2000 4,745 11.05 53 1.40% 11.28% December 31, 1999 2,756 9.93 27 1.40% * December 31, 1998 - - - - - December 31, 1997 - - - - - HIGH QUALITY BOND PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 2,004 $11.73 $24 1.45% 6.25% December 31, 2000 2,299 11.04 25 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HIGH QUALITY BOND PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 959 $11.70 $11 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HIGH QUALITY BOND PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 1,476 $11.65 $17 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
245
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL COMPANY GROWTH PORTFOLIO - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 1,744 $10.66 $19 1.40% -20.15% December 31, 2000 1,744 13.35 23 1.40% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY GROWTH PORTFOLIO - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 1,143 $10.65 $12 1.45% -20.16% December 31, 2000 1,108 13.34 15 1.45% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY GROWTH PORTFOLIO - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 1,508 $10.63 $16 1.55% -20.20% December 31, 2000 1,380 13.32 19 1.55% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY GROWTH PORTFOLIO - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 973 $10.62 $10 1.60% -20.27% December 31, 2000 466 13.32 6 1.60% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY GROWTH PORTFOLIO - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 792 $10.58 $9 1.80% -20.33% December 31, 2000 627 13.28 8 1.80% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
246
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL COMPANY GROWTH PORTFOLIO - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 100 $10.56 $1 1.90% -20.42% December 31, 2000 100 13.27 1 1.90% * December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA OPTION II September 30, 2001 1,087 $9.29 $10 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA OPTION III September 30, 2001 706 $9.29 $7 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA BONUS OPTION I September 30, 2001 5,503 $9.29 $51 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA BONUS OPTION II September 30, 2001 13,142 $9.28 $122 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA BONUS OPTION III September 30, 2001 131 $9.28 $1 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
247
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VALUE PORTFOLIO - VA OPTION I September 30, 2001 6,285 $9.30 $59 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA OPTION II September 30, 2001 8,345 $8.71 $73 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA OPTION III September 30, 2001 260 $8.71 $2 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA BONUS OPTION I September 30, 2001 18,597 $8.71 $163 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA BONUS OPTION II September 30, 2001 17,005 $8.70 $148 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME PORTFOLIO - VA BONUS OPTION III September 30, 2001 489 $8.70 $4 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
248
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME PORTFOLIO - VA OPTION I September 30, 2001 9,543 $8.72 $83 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PREMIER GROWTH PORTFOLIO - VA OPTION II September 30, 2001 19,640 $8.37 $165 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PREMIER GROWTH PORTFOLIO - VA BONUS OPTION I September 30, 2001 2,297 $8.36 $19 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PREMIER GROWTH PORTFOLIO - VA BONUS OPTION II September 30, 2001 18,077 $8.36 $151 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PREMIER GROWTH PORTFOLIO - VA OPTION I September 30, 2001 1,757 $8.37 $15 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GET FUND SERIES N - VA OPTION II September 30, 2001 256,985 $10.04 $2,580 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
249
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GET FUND SERIES N - VA OPTION III September 30, 2001 120,777 $10.04 $1,213 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GET FUND SERIES N - VA BONUS OPTION I September 30, 2001 1,214,067 $10.04 $12,194 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GET FUND SERIES N - VA BONUS OPTION II September 30, 2001 759,884 $10.03 $7,622 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GET FUND SERIES N - VA BONUS OPTION III September 30, 2001 516,613 $10.03 $5,182 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GET FUND SERIES N - VA OPTION I September 30, 2001 377,973 $10.05 $3,799 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VALUE OPPORTUNITY PORTFOLIO - VA BONUS OPTION I September 30, 2001 1,005 $8.45 $9 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
250
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VALUE OPPORTUNITY PORTFOLIO - VA BONUS OPTION II September 30, 2001 13,770 $8.45 $116 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS LARGE CAP PORTFOLIO - VA OPTION II September 30, 2001 955 $8.67 $8 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS LARGE CAP PORTFOLIO - VA OPTION III September 30, 2001 3 $8.66 - 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS LARGE CAP PORTFOLIO - VA BONUS OPTION I September 30, 2001 15,895 $8.66 $138 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS LARGE CAP PORTFOLIO - VA BONUS OPTION II September 30, 2001 2,067 $8.66 $18 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS LARGE CAP PORTFOLIO - VA BONUS OPTION III September 30, 2001 2,208 $8.65 $19 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
251
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INDEX PLUS LARGE CAP PORTFOLIO - VA OPTION I September 30, 2001 8,239 $8.67 $71 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS MID CAP PORTFOLIO - VA OPTION II September 30, 2001 6,355 $8.71 $55 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS MID CAP PORTFOLIO - VA OPTION III September 30, 2001 657 $8.71 $6 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS MID CAP PORTFOLIO - VA BONUS OPTION I September 30, 2001 2,354 $8.71 $20 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS MID CAP PORTFOLIO - VA BONUS OPTION II September 30, 2001 14,345 $8.70 $125 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS MID CAP PORTFOLIO - VA BONUS OPTION III September 30, 2001 872 $8.70 $8 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
252
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INDEX PLUS MID CAP PORTFOLIO - VA OPTION I September 30, 2001 8,522 $8.72 $74 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS SMALL CAP PORTFOLIO - VA OPTION II September 30, 2001 83 $8.63 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS SMALL CAP PORTFOLIO - VA OPTION III September 30, 2001 591 $8.63 $5 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS SMALL CAP PORTFOLIO - VA BONUS OPTION I September 30, 2001 10,044 $8.63 $87 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS SMALL CAP PORTFOLIO - VA BONUS OPTION II September 30, 2001 649 $8.63 $6 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INDEX PLUS SMALL CAP PORTFOLIO - VA BONUS OPTION III September 30, 2001 880 $8.62 $7 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
253
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INDEX PLUS SMALL CAP PORTFOLIO - VA OPTION I September 30, 2001 6,647 $8.64 $57 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TACTICAL ALLOCATION PORTFOLIO - VA OPTION II September 30, 2001 147 $8.55 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TACTICAL ALLOCATION PORTFOLIO - VA BONUS OPTION I September 30, 2001 4,021 $8.54 $35 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TACTICAL ALLOCATION PORTFOLIO - VA BONUS OPTION II September 30, 2001 9,728 $8.54 $83 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TACTICAL ALLOCATION PORTFOLIO - VA BONUS OPTION III September 30, 2001 4,485 $8.53 $38 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - TACTICAL ALLOCATION PORTFOLIO - VA OPTION I September 30, 2001 4,017 $8.55 $35 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
254
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EQUITY-INCOME PORTFOLIO - VA OPTION II September 30, 2001 9,550 $8.81 $84 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY-INCOME PORTFOLIO - VA OPTION III September 30, 2001 857 $8.81 $8 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY-INCOME PORTFOLIO - VA BONUS OPTION I September 30, 2001 23,780 $8.81 $210 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY-INCOME PORTFOLIO - VA BONUS OPTION II September 30, 2001 21,647 $8.80 $190 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY-INCOME PORTFOLIO - VA BONUS OPTION III September 30, 2001 1,166 $8.80 $10 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EQUITY-INCOME PORTFOLIO - VA OPTION I September 30, 2001 11,145 $8.82 $98 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
255
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH PORTFOLIO - VA OPTION II September 30, 2001 6,843 $7.97 $55 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH PORTFOLIO - VA BONUS OPTION I September 30, 2001 11,726 $7.97 $93 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH PORTFOLIO - VA BONUS OPTION II September 30, 2001 9,850 $7.96 $78 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH PORTFOLIO - VA BONUS OPTION III September 30, 2001 235 $7.96 $2 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH PORTFOLIO - VA OPTION I September 30, 2001 4,820 $7.98 $39 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONTRAFUND PORTFOLIO - VA OPTION II September 30, 2001 7,572 $9.12 $69 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
256
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ CONTRAFUND PORTFOLIO - VA BONUS OPTION I September 30, 2001 19,943 $9.12 $182 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONTRAFUND PORTFOLIO - VA BONUS OPTION II September 30, 2001 18,907 $9.11 $172 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONTRAFUND PORTFOLIO - VA BONUS OPTION III September 30, 2001 14,239 $9.11 $130 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - CONTRAFUND PORTFOLIO - VA OPTION I September 30, 2001 3,262 $9.13 $30 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FINANCIAL SERVICES FUND - VA OPTION II September 30, 2001 5,770 $8.74 $51 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FINANCIAL SERVICES FUND - VA BONUS OPTION I September 30, 2001 3,356 $8.73 $29 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
257
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ FINANCIAL SERVICES FUND - VA BONUS OPTION II September 30, 2001 1,503 $8.73 $13 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FINANCIAL SERVICES FUND - VA BONUS OPTION III September 30, 2001 3,589 $8.72 $31 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - FINANCIAL SERVICES FUND - VA OPTION I September 30, 2001 4,073 $8.74 $36 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HEALTH SCIENCES FUND - VA OPTION II September 30, 2001 582 $9.73 $6 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HEALTH SCIENCES FUND - VA OPTION III September 30, 2001 248 $9.73 $2 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HEALTH SCIENCES FUND - VA BONUS OPTION I September 30, 2001 2,993 $9.73 $29 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
258
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ HEALTH SCIENCES FUND - VA BONUS OPTION II September 30, 2001 7,179 $9.72 $70 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HEALTH SCIENCES FUND - VA BONUS OPTION III September 30, 2001 22,414 $9.72 $218 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - HEALTH SCIENCES FUND - VA OPTION I September 30, 2001 3,940 $9.74 $38 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - UTILITIES FUND - VA OPTION II September 30, 2001 1,325 $7.89 $10 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - UTILITIES FUND - VA BONUS OPTION II September 30, 2001 318 $7.88 $3 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - UTILITIES FUND - VA BONUS OPTION III September 30, 2001 4,981 $7.87 $39 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
259
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ UTILITIES FUND - VA OPTION I September 30, 2001 1,980 $7.89 $16 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH PORTFOLIO - VA OPTION II September 30, 2001 5,656 $8.34 $47 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH PORTFOLIO - VA OPTION III September 30, 2001 2,386 $8.34 $20 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH PORTFOLIO - VA BONUS OPTION I September 30, 2001 17,529 $8.34 $146 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH PORTFOLIO - VA BONUS OPTION II September 30, 2001 4,021 $8.34 $33 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - WORLDWIDE GROWTH PORTFOLIO - VA BONUS OPTION III September 30, 2001 7,383 $8.33 $62 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
260
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ WORLDWIDE GROWTH PORTFOLIO - VA OPTION I September 30, 2001 10,619 $8.35 $89 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA OPTION II September 30, 2001 7,081 $7.53 $53 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA OPTION III September 30, 2001 1,204 $7.53 $9 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA BONUS OPTION I September 30, 2001 6,212 $7.53 $47 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA BONUS OPTION II September 30, 2001 8,173 $7.52 $62 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA BONUS OPTION III September 30, 2001 283 $7.52 $2 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
261
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO - VA OPTION I September 30, 2001 42 $7.53 - 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIONEER FUND VCT PORTFOLIO - VA OPTION II September 30, 2001 4,332 $8.62 $37 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIONEER FUND VCT PORTFOLIO - VA OPTION III September 30, 2001 522 $8.62 $5 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIONEER FUND VCT PORTFOLIO - VA BONUS OPTION I September 30, 2001 513 $8.62 $4 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIONEER FUND VCT PORTFOLIO - VA BONUS OPTION II September 30, 2001 1,234 $8.61 $11 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - PIONEER FUND VCT PORTFOLIO - VA BONUS OPTION III September 30, 2001 4,340 $8.61 $37 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
262
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ PIONEER FUND VCT PORTFOLIO - VA OPTION I September 30, 2001 550 $8.63 $5 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY VCT PORTFOLIO - VA OPTION II September 30, 2001 2,740 $8.30 $23 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY VCT PORTFOLIO - VA BONUS OPTION I September 30, 2001 13,287 $8.30 $110 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY VCT PORTFOLIO - VA BONUS OPTION II September 30, 2001 17,318 $8.29 $144 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY VCT PORTFOLIO - VA BONUS OPTION III September 30, 2001 10,527 $8.29 $87 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL COMPANY VCT PORTFOLIO - VA OPTION I September 30, 2001 2,345 $8.31 $19 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
263
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ BULL - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 2,589 $8.14 $22 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 3,141 $8.14 $26 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 104,706 $8.13 $851 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS STANDARD (POST JANUARY 2000) September 30, 2001 90,768 $8.13 $738 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 97,293 $8.13 $791 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
264
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ BULL - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 28,195 $8.13 $229 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 13,949 $8.12 $113 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 89,645 $8.12 $727 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 12,447 $8.12 $101 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 114,628 $8.12 $931 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 35,702 $8.12 $290 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
265
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ BULL - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 6,034 $8.12 $49 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - LANDMARK - 7% SOLUTION September 30, 2001 538 $8.11 $4 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 2,251 $8.11 $18 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 420 $8.11 $3 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 142 $8.11 $1 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - BULL - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 842 $8.10 $7 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
266
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL-CAP - DVA September 30, 2001 384 $8.00 $3 1.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - STANDARD (PRE FEBRUARY 2000) September 30, 2001 31,590 $7.99 $253 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 4,475 $7.99 $36 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 61,663 $7.99 $493 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 96,420 $7.99 $770 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
267
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL-CAP - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 73,672 $7.98 $588 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - ANNUAL RATCHET (POST JANUARY 2000), PREMIUM PLUS - ANNUAL RATCHET (POST JANUARY 2000) September 30, 2001 27,076 $7.98 $216 1.60% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 10,401 $7.98 $83 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 100,828 $7.98 $805 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 2,758 $7.98 $22 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 152,799 $7.98 $1,219 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
268
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL-CAP - ACCESS - MAX 7 (POST JANUARY 2000), PREMIUM PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 27,199 $7.97 $217 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - VALUE September 30, 2001 1,462 $7.96 $2 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 5,022 $7.97 $40 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - LANDMARK - 7% SOLUTION September 30, 2001 847 $7.97 $7 2.00% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 876 $7.97 $7 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - MAX 5.5 (POST APRIL 2001), LANDMARK - MAX 7 September 30, 2001 11,283 $7.97 $90 2.10% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
269
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ SMALL-CAP - ACCESS - 7% SOLUTION (POST APRIL 2001) September 30, 2001 272 $7.96 $2 2.15% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - SMALL-CAP - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 1,462 $7.96 $12 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - DVA PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 113 $7.81 $1 1.30% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - DVA PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) & 5.5% SOLUTION, ACCESS - STANDARD (PRE FEBRUARY 2000), PREMIUM PLUS - STANDARD (PRE FEBRUARY 2000), ES II September 30, 2001 4,392 $7.81 $34 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - DVA PLUS - ANNUAL RATCHET (POST JANUARY 2000), ACCESS - STANDARD (POST JANUARY 2000), PREMIUM PLUS - STANDARD (POST JANUARY 2000) September 30, 2001 259,160 $7.81 $2,024 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
270
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EUROPE 30 - DVA PLUS - 7% SOLUTION (PRE FEBRUARY 2000), ACCESS - ANNUAL RATCHET (PREFEBRUARY 2000) AND 5.5% SOLUTION, PREMIUM PLUS - ANNUAL RATCHET (PRE FEBRUARY 2000) AND 5.5% SOLUTION September 30, 2001 3,227 $7.80 $25 1.55% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - DVA PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 12,799 $7.80 $100 1.65% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ACCESS - 7% SOLUTION (PRE FEBRUARY 2000), PREMIUM PLUS - 7% SOLUTION (PRE FEBRUARY 2000) September 30, 2001 131,030 $7.80 $1,022 1.70% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - DVA PLUS - MAX 7 (POST JANUARY 2000) September 30, 2001 24,737 $7.80 $193 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 355,969 $7.79 $2,773 1.80% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ACCESS - 7% SOLUTION (POST JANUARY 2000), PREMIUM PLUS - 7% SOLUTION (POST JANUARY 2000) September 30, 2001 7,148 $7.79 $56 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
271
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ EUROPE 30 - VALUE September 30, 2001 240 $7.82 $2 0.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ES II, MAX 7 (POST 2000), GENERATIONS - MAX 7 September 30, 2001 2,635 $7.79 $21 1.85% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ACCESS - ANNUAL RATCHET (POST APRIL 2001) September 30, 2001 1,211 $7.79 $9 2.05% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - EUROPE 30 - ACCESS - MAX 7 (POST APRIL 2001) September 30, 2001 4,752 $7.78 $37 2.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME FUND - VA OPTION II September 30, 2001 1,716 $8.93 $15 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME FUND - VA BONUS OPTION I September 30, 2001 6,306 $8.92 $56 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
272
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INCOME FUND - VA BONUS OPTION II September 30, 2001 3,738 $8.92 $34 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME FUND - VA BONUS OPTION III September 30, 2001 349 $8.91 $3 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - GROWTH AND INCOME FUND - VA OPTION I September 30, 2001 3,886 $8.93 $35 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL GROWTH AND INCOME FUND - VA OPTION II September 30, 2001 89 $8.79 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL GROWTH AND INCOME FUND - VA OPTION III September 30, 2001 1,097 $8.79 $10 1.40% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL GROWTH AND INCOME FUND - VA BONUS OPTION I September 30, 2001 8,564 $8.79 $75 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
273
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL GROWTH AND INCOME FUND - VA BONUS OPTION II September 30, 2001 673 $8.78 $6 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL GROWTH AND INCOME FUND - VA BONUS OPTION III September 30, 2001 7,566 $8.78 $67 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - INTERNATIONAL GROWTH AND INCOME FUND - VA OPTION I September 30, 2001 4,115 $8.80 $36 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VOYAGER FUND - VA OPTION II September 30, 2001 132 $7.18 $1 1.25% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VOYAGER FUND - VA BONUS OPTION I September 30, 2001 15,152 $7.18 $109 1.45% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VOYAGER FUND - VA BONUS OPTION II September 30, 2001 1,379 $7.17 $10 1.75% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - -
274
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS - UNAUDITED SEPTEMBER 30, 2001 (CONTINUED) NOTE 6 - SUMMARY OF INVESTMENT AND EXPENSE RATIOS (CONTINUED) MORTALITY, EXPENSE UNIT NET ASSETS RISK & ASSET BASED TOTAL DIVISION/CONTRACT UNITS VALUE (000S) ADMIN CHARGES RETURN ------------------------------------------------------------------------------------------------------------------------------ VOYAGER FUND - VA BONUS OPTION III September 30, 2001 1,318 $7.17 $9 1.90% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - VOYAGER FUND - VA OPTION I September 30, 2001 2,560 $7.18 $18 0.95% * December 31, 2000 - - - - - December 31, 1999 - - - - - December 31, 1998 - - - - - December 31, 1997 - - - - - * Year of commencement of operations.
275 FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B For the Year Ended December 31, 2000 The financial statements of Separate Account B are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Financial Statements Statement of Net Assets as of December 31, 2000 Statements of Operations for the year ended December 31, 2000 Statements of Changes in Net Assets for the years ended December 31, 2000 and 1999 Notes to Financial Statements -------------------------------------------------------------------------------- FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B -------------------------------------------------------------------------------- FINANCIAL STATEMENTS GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Year ended December 31, 2000 with Report of Independent Auditors GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2000 CONTENTS Report of Independent Auditors.................................................1 Audited Financial Statements Statement of Net Assets........................................................2 Statements of Operations.......................................................4 Statements of Changes in Net Assets...........................................12 Notes to Financial Statements.................................................20 Report of Independent Auditors The Board of Directors and Participants Golden American Life Insurance Company We have audited the accompanying statement of net assets of Golden American Life Insurance Company Separate Account B (comprised of the Liquid Asset, Limited Maturity Bond, Large Cap, Hard Assets, All-Growth, All Cap, Real Estate, Fully Managed, Equity Income, Capital Appreciation, Rising Dividends, Emerging Markets, Market Manager, Value Equity, Strategic Equity, Small Cap, Managed Global, Mid-Cap Growth, Capital Growth, Research, Total Return, Growth, Global Fixed Income, Developing World, Growth Opportunities, Asset Allocation Growth, Diversified Mid Cap, Investors, Growth and Income, Special Situation, ING Global Brand Names, PIMCO High Yield Bond, PIMCO StocksPLUS Growth and Income, Prudential Jennison, SP Jennison International Growth, Appreciation, Smith Barney High Income, Smith Barney Large Cap Value, Smith Barney International Equity, Smith Barney Money Market, International Equity, Asset Allocation, Equity, Growth & Income, High Quality Bond, and Small Company Growth Divisions) as of December 31, 2000 and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2000, by correspondence with the mutual funds' transfer agents. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Golden American Life Insurance Company Separate Account B at December 31, 2000 and the results of its operations and changes in its net assets for the periods described above, in conformity with accounting principles generally accepted in the United States. s/ Ernst & Young LLP Atlanta, Georgia February 19, 2001 1
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENT OF NET ASSETS DECEMBER 31, 2000 (Dollars in thousands) COMBINED --------------- ASSETS Investments at net asset value: The GCG Trust: Liquid Asset Series, 679,666,317 shares (cost - $679,666) $679,666 Limited Maturity Bond Series, 19,084,290 shares (cost - $205,175) 200,958 Large Cap Value Series, 9,314,285 shares (cost $99,244) 98,545 Hard Assets Series, 3,726,113 shares (cost - $41,149) 41,509 All Cap Series, 9,160,079 shares (cost - $106,227) 104,883 Real Estate Series, 6,594,529 shares (cost - $95,407) 100,303 Fully Managed Series, 20,797,318 shares (cost - $328,147) 345,651 Equity Income Series, 25,003,760 shares (cost - $303,717) 291,793 Capital Appreciation Series, 29,267,229 shares (cost - $543,364) 477,934 Rising Dividends Series, 36,563,443 shares (cost - $800,261) 860,338 Emerging Markets Series, 2,463,146 shares (cost - $21,164) 19,953 Market Manager Series, 369,777 shares (cost - $4,962) 6,619 Value Equity Series, 10,880,300 shares (cost - $173,032) 180,722 Strategic Equity Series, 21,515,205 shares (cost - $449,691) 359,734 Small Cap Series, 39,448,306 shares (cost - $683,620) 422,097 Managed Global Series, 19,318,619 shares (cost - $293,245) 228,347 Mid-Cap Growth Series, 62,027,934 shares (cost - $1,613,463) 1,158,061 Capital Growth Series, 31,353,137 shares (cost - $512,403) 463,399 Research Series, 38,211,371 shares (cost - $828,919) 800,528 Total Return Series, 35,815,792 shares (cost - $581,380) 608,868 Growth Series, 74,569,267 shares (cost - $1,944,787) 1,474,980 Global Fixed Income Series, 4,171,868 shares (cost - $41,895) 40,000 Developing World Series, 7,167,044 shares (cost - $56,718) 54,398 Asset Allocation Growth Series, 499,555 shares (cost - $4,711) 4,696 Diversified Mid Cap Series, 1,148,409 shares (cost - $11,228) 11,358 Investors Series, 1,949,173 shares (cost - $21,793) 21,558 Growth & Income Series, 1,276,476 shares (cost - $12,801) 12,726 Special Situation Series, 661,201 shares (cost - $6,245) 5,891 ING Variable Insurance Trust: ING Global Brand Names Series, 630,468 shares (cost - $5,770) 5,554 PIMCO Variable Insurance Trust: PIMCO High Yield Bond Portfolio, 19,550,686 shares (cost - $174,443) 162,857 PIMCO StocksPLUS Growth and Income Portfolio, 23,290,726 shares (cost - $307,491) 258,484 Prudential Series Fund Inc.: Prudential Jennison Portfolio, 337,959 shares (cost - $9,923) 7,732 SP Jennison International Growth Portfolio, 320,402 shares (cost - $2,818) 2,720 Greenwich Street Series Fund Inc.: Appreciation Portfolio, 36,421 shares (cost - $769) 831 Travelers Series Fund Inc.: Smith Barney High Income Portfolio, 44,108 shares (cost - $565) 446 Smith Barney Large Cap Value Portfolio, 32,543 shares (cost - $672) 692 Smith Barney International Equity Portfolio, 26,196 shares (cost - $410) 455 Smith Barney Money Market Portfolio, 155,637 shares (cost - $156) 156 Warburg Pincus Trust: International Equity Portfolio, 18,138,783 shares (cost - $221,413) 194,618 2
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENT OF NET ASSETS DECEMBER 31, 2000 (CONTINUED) (DOLLARS IN THOUSANDS) COMBINED --------------- The Galaxy VIP Fund: Asset Allocation Portfolio, 83,544 shares (cost - $1,456) 1,387 Equity Portfolio, 54,055 shares (cost - $1,203) 1,071 Growth & Income Portfolio, 25,185 shares (cost - $277) 284 High Quality Bond Portfolio, 7,532 shares (cost - $75) 78 Small Company Growth Portfolio, 6,192 shares (cost - $83) 72 --------------- TOTAL NET ASSETS (cost - $11,191,938) $9,712,952 =============== NET ASSETS For variable annuity insurance contracts $9,712,274 Retained in Separate Account B by Golden American Life Insurance Company 678 --------------- TOTAL NET ASSETS $9,712,952 ===============
3
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (Dollars in thousands) LIMITED LIQUID MATURITY LARGE CAP HARD ALL- ASSET BOND VALUE ASSETS GROWTH ALL CAP DIVISION DIVISION DIVISION (b) DIVISION DIVISION DIVISION (b) -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $31,117 $12,292 $851 $221 $71,415 $2,338 Capital gains distributions...... - - - - 252 - -------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 31,117 12,292 851 221 71,667 2,338 Expenses: Mortality and expense risk and other charges.............. 7,819 2,279 551 610 149 516 Annual administrative charges.... 214 42 4 14 5 5 Minimum death benefit guarantee charges........................ 6 1 - 1 - - Contingent deferred sales charges........................ 3,708 34 15 14 - 20 Other contract charges........... 24 8 14 3 1 11 Amortization of deferred charges related to: Deferred sales load............ 459 86 - 28 23 - Premium taxes.................. 2 - - - - - -------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 12,232 2,450 584 670 178 552 -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 18,885 9,842 267 (449) 71,489 1,786 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... - (105) 239 (889) (18,152) 242 Net unrealized appreciation (depreciation) of investments.. - (15) (699) (651) (51,150) (1,344) -------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $18,885 $9,722 $(193) $(1,989) $2,187 $684 ============================================================================================ (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 4
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) REAL FULLY EQUITY CAPITAL RISING EMERGING ESTATE MANAGED INCOME APPRECIATION DIVIDENDS MARKETS DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $4,110 $15,364 $15,316 $6,303 $4,532 $- Capital gains distributions...... - 15,744 7,209 10,783 22,363 - -------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 4,110 31,108 22,525 17,086 26,895 - Expenses: Mortality and expense risk and other charges.............. 1,018 3,984 3,561 7,009 13,009 354 Annual administrative charges.... 24 102 113 127 256 12 Minimum death benefit guarantee charges........................ - 1 4 1 1 1 Contingent deferred sales charges........................ 12 55 37 111 219 3 Other contract charges........... 4 9 13 30 32 2 Amortization of deferred charges related to: Deferred sales load............ 46 171 310 205 329 55 Premium taxes.................. - - 4 - - - -------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 1,104 4,322 4,042 7,483 13,846 427 -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 3,006 26,786 18,483 9,603 13,049 (427) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... (6,745) 11,021 (3,402) 17,565 33,219 (1,161) Net unrealized appreciation (depreciation) of investments.. 20,074 15,994 13,813 (117,226) (79,215) (9,340) -------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $16,335 $53,801 $28,894 $(90,058) $(32,947) $(10,928) ============================================================================================ (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 5
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) MARKET VALUE STRATEGIC SMALL MANAGED MID-CAP MANAGER EQUITY EQUITY CAP GLOBAL GROWTH DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $97 $2,011 $- $141,802 $52,156 $403,747 Capital gains distributions...... 497 739 14,167 27,322 14,643 34,872 ---------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 594 2,750 14,167 169,124 66,799 438,619 Expenses: Mortality and expense risk and other charges.............. 1 2,362 5,333 6,763 2,946 15,568 Annual administrative charges.... - 49 73 107 55 247 Minimum death benefit guarantee charges........................ - - - 1 1 1 Contingent deferred sales charges........................ - 41 74 93 32 247 Other contract charges........... - 5 38 32 26 78 Amortization of deferred charges related to: Deferred sales load............ 25 51 41 44 185 190 Premium taxes.................. - - - - - 1 ---------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 26 2,508 5,559 7,040 3,245 16,332 ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 568 242 8,608 162,084 63,554 422,287 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... 386 (2,971) 50,573 65,908 (6,564) 186,968 Net unrealized appreciation (depreciation) of investments.. (868) 13,904 (146,317) (336,905) (91,449) (585,733) ---------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $86 $11,175 $(87,136) $(108,913) $(34,459) $23,522 ============================================================================================== (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 6
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) GLOBAL CAPITAL TOTAL FIXED DEVELOPING GROWTH RESEARCH RETURN GROWTH INCOME WORLD DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION --------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $6,399 $9,386 $26,998 $79,262 $2,164 $226 Capital gains distributions...... 9,560 78,382 17,904 27,487 - 213 --------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 15,959 87,768 44,902 106,749 2,164 439 Expenses: Mortality and expense risk and other charges.............. 7,347 12,000 7,653 25,237 406 981 Annual administrative charges.... 135 211 160 382 6 10 Minimum death benefit guarantee charges........................ - - - 1 - - Contingent deferred sales charges........................ 131 184 198 385 6 11 Other contract charges........... 26 37 13 114 - 6 Amortization of deferred charges related to: Deferred sales load............ 29 49 28 80 2 2 Premium taxes.................. - - - - - - --------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 7,668 12,481 8,052 26,199 420 1,010 --------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 8,291 75,287 36,850 80,550 1,744 (571) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... 3,118 9,952 3,673 276,219 (159) (14,693) Net unrealized appreciation (depreciation) of investments.. (108,099) (144,747) 31,039 (808,716) (1,223) (9,975) --------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(96,690) $(59,508) $71,562 $(451,947) $362 $(25,239) ============================================================================================= (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 7
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) ASSET GROWTH ALLOCATION DIVERSIFIED GROWTH SPECIAL OPPORTUNITIES GROWTH MID CAP INVESTORS AND INCOME SITUATION DIVISION DIVISION (f) DIVISION (e) DIVISION (g) DIVISION (e) DIVISION (e) -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $340 $4 $23 $615 $10 $6 Capital gains distributions...... 36 - - - - - -------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 376 4 23 615 10 6 Expenses: Mortality and expense risk and other charges.............. 8 7 25 119 24 14 Annual administrative charges.... - - 1 2 - - Minimum death benefit guarantee charges....................... - - - - - - Contingent deferred sales charges........................ - - 1 1 - - Other contract charges........... - - - 2 - - Amortization of deferred charges related to: Deferred sales load............ - - - - - - Premium taxes.................. - - - - - - -------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 8 7 27 124 24 14 -------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 368 (3) (4) 491 (14) (8) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... (304) (8) (172) 124 (41) (5) Net unrealized appreciation (depreciation) of investments.. (460) (15) 130 (235) (75) (354) -------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(396) $(26) $(46) $380 $(130) $(367) ============================================================================================ (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 8
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) PIMCO PIMCO ING GLOBAL HIGH STOCKSPLUS SP JENNISON BRAND YIELD GROWTH AND PRUDENTIAL INTERNATIONAL NAMES BOND INCOME JENNISON GROWTH APPRECIATION DIVISION (d) DIVISION DIVISION DIVISION (c) DIVISION (c) DIVISION ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $15 $13,212 $17,726 - - $7 Capital gains distributions...... - - 9,541 $938 - 13 ---------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 15 13,212 27,267 938 - 20 Expenses: Mortality and expense risk and other charges.............. 24 2,329 3,972 39 $7 13 Annual administrative charges.... - 40 61 - - - Minimum death benefit guarantee charges........................ - - - - - - Contingent deferred sales charges........................ - 34 59 5 - - Other contract charges........... - 7 13 - - - Amortization of deferred charges related to: Deferred sales load............ - 6 7 - - - Premium taxes.................. - - - - - - ---------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... 24 2,416 4,112 44 7 13 ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... (9) 10,796 23,155 894 (7) 7 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... (220) (7,571) 2,713 (13) 49 24 Net unrealized appreciation (depreciation) of investments.. (216) (6,847) (55,206) (2,191) (98) (57) ---------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(445) $(3,622) $(29,338) $(1,310) $(56) $(26) ============================================================================================== (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 9 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) SMITH SMITH SMITH SMITH BARNEY BARNEY BARNEY BARNEY HIGH LARGE CAP INTERNATIONAL MONEY INTERNATIONAL ASSET INCOME VALUE EQUITY MARKET EQUITY ALLOCATION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ $45 $8 $4 $12 $5,642 $22 Capital gains distributions...... - 15 - - 21,362 26 ---------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 45 23 4 12 27,004 48 Expenses: Mortality and expense risk and other charges.............. - 2 8 3 3,334 12 Annual administrative charges.... - 1 - - 40 - Minimum death benefit guarantee charges........................ - - - - - - Contingent deferred sales charges........................ - - - 11 31 - Other contract charges........... - - - - 14 - Amortization of deferred charges related to: Deferred sales load............ - - - - - - Premium taxes.................. - - - - - - ---------------------------------------------------------------------------------------------- TOTAL EXPENSES.................... - 3 8 14 3,419 12 ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 45 20 (4) (2) 23,585 36 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... (20) (3) 15 - (25,607) 1 Net unrealized appreciation (depreciation) of investments.. (66) 57 (162) - (52,548) (70) ---------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(41) $74 $(151) $(2) $(54,570) $(33) ============================================================================================== (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 10
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000, EXCEPT AS NOTED (continued) (Dollars in thousands) HIGH SMALL QUALITY COMPANY EQUITY GROWTH & BOND GROWTH DIVISION INCOME DIVISION DIVISION DIVISION (a) COMBINED ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends........................ - - $2 - $925,800 Capital gains distributions...... $85 $4 - $5 314,162 ---------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME........... 85 4 2 5 1,239,962 Expenses: Mortality and expense risk and other charges.............. 10 3 - 1 137,410 Annual administrative charges.... - - - - 2,498 Minimum death benefit guarantee charges........................ - - - - 20 Contingent deferred sales charges........................ - - - - 5,772 Other contract charges........... - - - - 562 Amortization of deferred charges related to: Deferred sales load............ - - - - 2,451 Premium taxes.................. - - - - 7 ---------------------------------------------------------------------------------- TOTAL EXPENSES.................... 10 3 - 1 148,720 ---------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)...... 75 1 2 4 1,091,242 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................... - 1 - - 573,205 Net unrealized appreciation (depreciation) of investments.. (137) 5 3 (11) (2,517,401) ---------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(62) $7 $5 $(7) $(852,954) ================================================================================== (a) Commencement of operations, January 3, 2000. (b) Commencement of operations, February 1,2000. (c) Commencement of operations, May 5, 2000. (d) Commencement of operations, May 8, 2000. (e) Commencement of operations, October 2, 2000. (f) Commencement of operations, October 3, 2000. (g) Commencement of operations, October 4, 2000. See accompanying notes. 11
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (Dollars in thousands) LIMITED LIQUID MATURITY LARGE CAP HARD ALL- ASSET BOND VALUE ASSETS GROWTH ALL CAP DIVISION DIVISION DIVISION(e) DIVISION DIVISION DIVISION(e) ------------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 1999........... $175,759 $102,832 $- $29,703 $81,807 $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 6,762 3,033 - (460) 26,166 - Net realized gain (loss) on investments....................... - (153) - (9,098) 12,611 - Net unrealized appreciation (depreciation) of investments..... - (3,486) - 15,365 41,917 - ------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. 6,762 (606) - 5,807 80,694 - Changes from principal transactions: Purchase payments................... 466,501 67,604 - 7,898 9,526 - Contract distributions and terminations...................... (123,045) (15,384) - (5,361) (15,134) - Transfer payments from (to) Fixed Accounts and other Divisions...... (3,655) (4,046) - 881 (11,033) - Addition to assets retained in the Account by Golden American Life Insurance Company................. 4 1 - 1 3 - ------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... 339,805 48,175 - 3,419 (16,638) - ------------------------------------------------------------------------------------ Total increase (decrease)............. 346,567 47,569 - 9,226 64,056 - ------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 1999....... 522,326 150,401 - 38,929 145,863 - INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 18,885 9,842 $267 (449) 71,489 $1,786 Net realized gain (loss) on investments....................... - (105) 239 (889) (18,152) 242 Net unrealized appreciation (depreciation) of investments..... - (15) (699) (651) (51,150) (1,344) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. 18,885 9,722 (193) (1,989) 2,187 684 Changes from principal transactions: Purchase payments................... 596,489 36,148 55,323 7,384 22 41,432 Contract distributions and terminations...................... (474,039) (10,071) (1,282) (2,536) (2,005) (1,349) Transfer payments from (to) Fixed Accounts and other Divisions...... 16,005 14,758 44,697 (279) (146,067) 64,116 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - - ------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... 138,455 40,835 98,738 4,569 (148,050) 104,199 ------------------------------------------------------------------------------------ Total increase (decrease)............. 157,340 50,557 98,545 2,580 (145,863) 104,883 ------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2000....... $679,666 $200,958 $98,545 $41,509 $- $104,883 ==================================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 12
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) REAL FULLY EQUITY CAPITAL RISING EMERGING ESTATE MANAGED INCOME APPRECIATION DIVIDENDS MARKETS DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ------------------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 1999........... $68,995 $226,366 $273,910 $256,578 $500,616 $22,254 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 2,686 15,541 23,408 37,666 9,576 (115) Net realized gain (loss) on investments....................... 452 4,586 604 12,525 12,658 (839) Net unrealized appreciation (depreciation) of investments..... (6,895) (8,712) (30,854) 16,816 60,461 17,638 ------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. (3,757) 11,415 (6,842) 67,007 82,695 16,684 Changes from principal transactions: Purchase payments................... 9,108 62,680 62,880 107,357 245,047 1,445 Contract distributions and terminations...................... (9,074) (30,839) (54,241) (44,732) (59,723) (3,546) Transfer payments from (to) Fixed Accounts and other Divisions...... (9,597) (2,413) (4,436) 15,746 44,445 (1,366) Addition to assets retained in the Account by Golden American Life Insurance Company................. 2 9 13 11 14 1 ------------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... (9,561) 29,437 4,216 78,382 229,783 (3,466) ------------------------------------------------------------------------------------------ Total increase (decrease)............. (13,318) 40,852 (2,626) 145,389 312,478 13,218 ------------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 1999....... 55,677 267,218 271,284 401,967 813,094 35,472 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 3,006 26,786 18,483 9,603 13,049 (427) Net realized gain (loss) on investments....................... (6,745) 11,021 (3,402) 17,565 33,219 (1,161) Net unrealized appreciation (depreciation) of investments..... 20,074 15,994 13,813 (117,226) (79,215) (9,340) ------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. 16,335 53,801 28,894 (90,058) (32,947) (10,928) Changes from principal transactions: Purchase payments................... 10,381 37,354 37,977 156,864 138,073 3,076 Contract distributions and terminations...................... (4,280) (17,995) (20,552) (27,188) (49,067) (2,533) Transfer payments from (to) Fixed Accounts and other Divisions...... 22,190 5,271 (25,811) 36,346 (8,823) (5,134) Addition to assets retained in the Account by Golden American Life Insurance Company................. - 2 1 3 8 - ------------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... 28,291 24,632 (8,385) 166,025 80,191 (4,591) ------------------------------------------------------------------------------------------ Total increase (decrease)............. 44,626 78,433 20,509 75,967 47,244 (15,519) ------------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2000....... $100,303 $345,651 $291,793 $477,934 $860,338 $19,953 ========================================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 13
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) MARKET VALUE STRATEGIC SMALL MANAGED MID-CAP MANAGER EQUITY EQUITY CAP GLOBAL GROWTH DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ---------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 1999........... $7,707 $126,194 $71,348 $124,245 $130,684 $116,844 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 1,043 1,468 (1,052) 6,069 22,518 40,271 Net realized gain (loss) on investments....................... 861 5,066 5,704 30,614 42,644 27,166 Net unrealized appreciation (depreciation) of investments..... (880) (9,606) 54,916 54,213 6,404 122,970 ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 1,024 (3,072) 59,568 90,896 71,566 190,407 Changes from principal transactions: Purchase payments................... 77 33,542 56,281 94,650 8,846 167,461 Contract distributions and terminations...................... (1,399) (13,124) (11,518) (11,971) (21,244) (15,116) Transfer payments from (to) Fixed Accounts and other Divisions...... (325) (6,161) 21,844 26,607 (8,510) 79,613 Addition to assets retained in the Account by Golden American Life Insurance Company................. - 1 3 2 3 6 ---------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... (1,647) 14,258 66,610 109,288 (20,905) 231,964 ---------------------------------------------------------------------------------------- Total increase (decrease)............. (623) 11,186 126,178 200,184 50,661 422,371 ---------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 1999....... 7,084 137,380 197,526 324,429 181,345 539,215 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 568 242 8,608 162,084 63,554 422,287 Net realized gain (loss) on investments....................... 386 (2,971) 50,573 65,908 (6,564) 186,968 Net unrealized appreciation (depreciation) of investments..... (868) 13,904 (146,317) (336,905) (91,449) (585,733) ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 86 11,175 (87,136) (108,913) (34,459) 23,522 Changes from principal transactions: Purchase payments................... 32 21,970 159,024 158,999 83,233 355,851 Contract distributions and terminations...................... (214) (7,690) (15,811) (19,691) (13,929) (51,535) Transfer payments from (to) Fixed Accounts and other Divisions...... (369) 17,887 106,131 67,271 12,151 291,004 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - 2 6 4 ---------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... (551) 32,167 249,344 206,581 81,461 595,324 ---------------------------------------------------------------------------------------- Total increase (decrease)............. (465) 43,342 162,208 97,668 47,002 618,846 ---------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2000....... $6,619 $180,722 $359,734 $422,097 $228,347 $1,158,061 ======================================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 14
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS Noted (continued) (Dollars in thousands) GLOBAL CAPITAL TOTAL FIXED DEVELOPING GROWTH RESEARCH RETURN GROWTH INCOME WORLD DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ----------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 1999........... $178,950 $285,529 $227,835 $143,068 $9,528 $4,512 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 18,209 2,922 8,500 6,048 81 1,125 Net realized gain (loss) on investments....................... 3,969 2,750 531 46,796 (939) 2,134 Net unrealized appreciation (depreciation) of investments..... 50,167 99,090 (4,991) 324,922 (662) 7,506 ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 72,345 104,762 4,040 377,766 (1,520) 10,765 Changes from principal transactions: Purchase payments................... 158,765 232,103 191,000 444,759 10,947 14,639 Contract distributions and terminations...................... (16,970) (24,594) (22,055) (28,748) (1,341) (740) Transfer payments from (to) Fixed Accounts and other Divisions...... 37,151 40,954 54,551 268,657 3,644 22,497 Addition to assets retained in the Account by Golden American Life Insurance Company................. 5 6 9 8 - - ----------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... 178,951 248,469 223,505 684,676 13,250 36,396 ----------------------------------------------------------------------------------------- Total increase (decrease)............. 251,296 353,231 227,545 1,062,442 11,730 47,161 ----------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 1999....... 430,246 636,760 455,380 1,205,510 21,258 51,673 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 8,291 75,287 36,850 80,550 1,744 (571) Net realized gain (loss) on investments....................... 3,118 9,952 3,673 276,219 (159) (14,693) Net unrealized appreciation (depreciation) of investments..... (108,099) (144,747) 31,039 (808,716) (1,223) (9,975) ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. (96,690) (59,508) 71,562 (451,947) 362 (25,239) Changes from principal transactions: Purchase payments................... 119,650 184,644 92,211 640,780 10,963 36,474 Contract distributions and terminations...................... (21,267) (32,193) (25,842) (71,995) (1,185) (3,361) Transfer payments from (to) Fixed Accounts and other Divisions...... 31,458 70,825 15,551 152,627 8,600 (5,151) Addition to assets retained in the Account by Golden American Life Insurance Company................. 2 - 6 5 2 2 ----------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... 129,843 223,276 81,926 721,417 18,380 27,964 ----------------------------------------------------------------------------------------- Total increase (decrease)............. 33,153 163,768 153,488 269,470 18,742 2,725 ----------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2000....... $463,399 $800,528 $608,868 $1,474,980 $40,000 $54,398 ========================================================================================= (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 15
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) ASSET GROWTH ALLOCATION DIVERSIFIED GROWTH AND SPECIAL OPPORTUNITIES GROWTH MID CAP INVESTORS INCOME SITUATION DIVISION IVISION(i) DIVISION(h) DIVISION(j) DIVISION(h) DIVISION(h) ----------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 1999........... $4,131 $- $- $- $- $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 193 - - - - - Net realized gain (loss) on investments....................... 732 - - - - - Net unrealized appreciation (depreciation) of investments..... 111 - - - - - ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 1,036 - - - - - Changes from principal transactions: Purchase payments................... 1,833 - - - - - Contract distributions and terminations...................... (256) - - - - - Transfer payments from (to) Fixed Accounts and other Divisions...... (81) - - - - - Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - ----------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... 1,496 - - - - - ----------------------------------------------------------------------------------------- Total increase (decrease)............. 2,532 - - - - - ----------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 1999....... 6,663 - - - - - - INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 368 $(3) (4) 491 $(14) (8) Net realized gain (loss) on investments....................... (304) (8) (172) 124 (41) (5) Net unrealized appreciation (depreciation) of investments..... (460) (15) 130 (235) (75) (354) ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. (396) (26) (46) 380 (130) (367) Changes from principal transactions: Purchase payments................... 7 3,166 3,403 8,798 5,771 2,383 Contract distributions and terminations...................... (10) (8) (53) (368) (45) (43) Transfer payments from (to) Fixed Accounts and other Divisions...... (6,264) 1,564 8,054 12,748 7,130 3,918 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - - ----------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... (6,267) 4,722 11,404 21,178 12,856 6,258 ----------------------------------------------------------------------------------------- Total increase (decrease)............. (6,663) 4,696 11,358 21,558 12,726 5,891 ----------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2000....... $- $4,696 $11,358 $21,558 $12,726 $5,891 ========================================================================================= (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 16
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) ING PIMCO GLOBAL PIMCO STOCKSPLUS SP JENNISON BRAND HIGH YIELD GROWTH AND PRUDENTIAL INTERNATIONAL APPRE- NAMES BOND INCOME JENNISON GROWTH CIATION DIVISION(g) DIVISION DIVISION DIVISION(f) DIVISION(f) DIVISION ------------------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 1999........... $- $46,118 $51,802 $- $- $974 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ - 6,684 16,907 - - 7 Net realized gain (loss) on investments....................... - (974) 4,397 - - 23 Net unrealized appreciation (depreciation) of investments..... - (4,721) 1,944 - - 76 ------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. - 989 23,248 - - 106 Changes from principal transactions: Purchase payments................... - 73,017 122,580 - - 40 Contract distributions and terminations...................... - (6,247) (5,161) - - (149) Transfer payments from (to) Fixed Accounts and other Divisions...... - 32,181 28,758 - - 12 Addition to assets retained in the Account by Golden American Life Insurance Company................. - 1 3 - - - ------------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... - 98,952 146,180 - - (97) ------------------------------------------------------------------------------------------ Total increase (decrease)............. - 99,941 169,428 - - 9 ------------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 1999....... - 146,057 221,230 - - 983 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ (9) 10,796 23,155 894 (7) 7 Net realized gain (loss) on investments....................... (220) (7,571) 2,713 (13) 49 24 Net unrealized appreciation (depreciation) of investments..... (216) (6,847) (55,206) (2,191) (98) (57) ------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations.. (445) (3,622) (29,338) (1,310) (56) (26) Changes from principal transactions: Purchase payments................... 4,326 36,532 73,805 6,264 1,189 16 Contract distributions and terminations...................... (39) (7,991) (13,426) (138) (45) (11) Transfer payments from (to) Fixed Accounts and other Divisions...... 1,712 (8,121) 6,213 2,916 1,632 (131) Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - - ------------------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions...................... 5,999 20,420 66,592 9,042 2,776 (126) ------------------------------------------------------------------------------------------ Total increase (decrease)............. 5,554 16,798 37,254 7,732 2,720 (152) ------------------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2000....... $5,554 $162,857 $258,484 $7,732 $2,720 $831 ========================================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 17
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) SMITH SMITH SMITH BARNEY BARNEY BARNEY SMITH HIGH LARGE CAP INTERNATIONAL BARNEY INTERNATIONAL ASSET INCOME VALUE EQUITY MONEY EQUITY ALLOCATION DIVISION DIVISION DIVISION MARKET DIVISION DIVISION (b) -------------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 1999........... $806 $701 $326 $318 $49,765 $- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 43 19 (4) 8 (48) 2 Net realized gain (loss) on investments....................... (48) 10 20 - 30,975 - Net unrealized appreciation (depreciation) of investments..... 10 (47) 214 - 24,199 1 -------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 5 (18) 230 8 55,126 3 Changes from principal transactions: Purchase payments................... 3 42 18 210 55,479 127 Contract distributions and terminations...................... (77) (59) (5) (11) (3,729) - Transfer payments from (to) Fixed Accounts and other Divisions...... (190) (23) (32) 54 18,928 3 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - - -------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... (264) (40) (19) 253 70,678 130 -------------------------------------------------------------------------------------- Total increase (decrease)............. (259) (58) 211 261 125,804 133 -------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 1999....... 547 643 537 579 175,569 133 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 45 20 (4) (2) 23,585 36 Net realized gain (loss) on investments....................... (20) (3) 15 - (25,607) 1 Net unrealized appreciation (depreciation) of investments..... (66) 57 (162) - (52,548) (70) -------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. (41) 74 (151) (2) (54,570) (33) Changes from principal transactions: Purchase payments................... 5 - 10 - 78,906 1,153 Contract distributions and terminations...................... (22) (8) (6) (700) (9,015) (8) Transfer payments from (to) Fixed Accounts and other Divisions...... (43) (17) 65 279 3,728 142 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - - - -------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... (60) (25) 69 (421) 73,619 1,287 -------------------------------------------------------------------------------------- Total increase (decrease)............. (101) 49 (82) (423) 19,049 1,254 -------------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2000....... $446 $692 $455 $156 $194,618 $1,387 ====================================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 18
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999, EXCEPT AS NOTED (continued) (Dollars in thousands) SMALL GROWTH & HIGH QUALITY COMPANY EQUITY INCOME BOND GROWTH DIVISION(b) DIVISION(a) DIVISION(c) DIVISION(d) COMBINED ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 1999........... $- $- $- $- $3,318,205 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 7 1 - - 255,284 Net realized gain (loss) on investments....................... - - $(1) - 235,776 Net unrealized appreciation (depreciation) of investments..... 5 2 - - 828,093 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. 12 3 (1) - 1,319,153 Changes from principal transactions: Purchase payments................... 281 98 127 - 2,706,971 Contract distributions and terminations...................... - - (4) - (545,597) Transfer payments from (to) Fixed Accounts and other Divisions...... 4 6 (95) - 644,573 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - 106 ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... 285 104 28 - 2,806,053 ------------------------------------------------------------------------------- Total increase (decrease)............. 297 107 27 - 4,125,206 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 1999....... 297 107 27 - 7,443,411 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)........ 75 1 2 4 1,091,242 Net realized gain (loss) on investments....................... - 1 - - 573,205 Net unrealized appreciation (depreciation) of investments..... (137) 5 3 (11) (2,517,401) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations.. (62) 7 5 (7) (852,954) Changes from principal transactions: Purchase payments................... 817 138 33 50 3,211,126 Contract distributions and terminations...................... (11) (11) (6) - (909,574) Transfer payments from (to) Fixed Accounts and other Divisions...... 30 43 19 29 820,900 Addition to assets retained in the Account by Golden American Life Insurance Company................. - - - - 43 ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions...................... 836 170 46 79 3,122,495 ------------------------------------------------------------------------------- Total increase (decrease)............. 774 177 51 72 2,269,541 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2000....... $1,071 $284 $78 $72 $9,712,952 =============================================================================== (a) Commencement of operations, October 25, 1999. (b) Commencement of operations, November 1, 1999. (c) Commencement of operations, December 3, 1999. (d) Commencement of operations, January 3, 2000. (e) Commencement of operations, February 1, 2000. (f) Commencement of operations, May 5, 2000. (g) Commencement of operations, May 8, 2000. (h) Commencement of operations, October 2, 2000. (i) Commencement of operations, October 3, 2000. (j) Commencement of operations, October 4, 2000. See accompanying notes. 19
GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 NOTE 1 - ORGANIZATION Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American") to support the operations of variable annuity contracts ("Contracts"). Golden American is primarily engaged in the issuance of variable insurance products and is licensed as a life insurance company in the District of Columbia and all states except New York. The Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. Golden American provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account or the Golden American Guaranteed Interest Division, the Golden American Fixed Interest Division, and the Fixed Separate Account, which are not part of the Account, as directed by the Contractowners. The portion of the Account's assets applicable to Contracts will not be chargeable with liabilities arising out of any other business Golden American may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of Golden American. The assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Golden American. During 2000, the Account had GoldenSelect Contracts and Granite PrimElite Contracts. GoldenSelect Contracts sold by Golden American during 2000 include DVA Plus, Access, Premium Plus, ESII, Value, and Access One. The Account discontinued offering DVA 80 in May 1991 and discontinued registering DVA 100 and DVA Series 100 for sale to the public as of May 1, 2000. At December 31, 2000, the Account had, under GoldenSelect Contracts, thirty-eight investment divisions: Liquid Asset, Limited Maturity Bond, Hard Assets, Real Estate, Fully Managed, Equity Income, Capital Appreciation, Rising Dividends, Emerging Markets, Market Manager, Value Equity, Strategic Equity, Small Cap, Managed Global, Mid-Cap Growth, Capital Growth, Research, Total Return, Growth, Global Fixed Income, Developing World, Growth Opportunities, Asset Allocation, Diversified Mid Cap, Investors, Growth & Income, Special Situation, ING Global Brand Names, PIMCO High Yield Bond, PIMCO StocksPLUS Growth & Income, Prudential Jennison, SP Jennison International Growth, International Equity, Asset Allocation, Equity, Growth & Income, and High Quality Bond Divisions ("Divisions"). The Account also had, under Granite PrimElite Contracts, eight investments divisions: Mid-Cap Growth, Research, Total Return, Appreciation, Smith Barney High Income, Smith Barney Large Cap Value, Smith Barney International Equity, and Smith Barney Money Market Divisions (collectively with the divisions noted above, "Divisions"). The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio") of mutual funds, The GCG Trust, ING Variable Insurance Trust, PIMCO Variable Insurance Trust, Prudential Series Fund Inc., Greenwich Street Series Fund Inc., Travelers Series Fund Inc., Warburg Pincus Trust, or The Galaxy VIP Fund (the "Trusts"). The Account also includes The Fund For Life Division, which is not included in the accompanying financial statements, and which ceased to accept new Contracts effective December 31, 1994. 20 NOTE 1 - ORGANIZATION (CONTINUED) The Market Manager Division was open for investment for only a brief period during 1994 and 1995. This Division is now closed and Contractowners are not permitted to direct their investments into this Division. On January 28, 2000, the consolidation of the All Growth and Growth Opportunities Series into the Mid Cap Growth Series took place at no cost to current contract holders. Shares of Mid-Cap Growth Series were substituted for shares of All Growth and Growth Opportunities Series. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies of the Account: USE OF ESTIMATES: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. INVESTMENTS: Investments are made in shares of a Series or Portfolio of the Trusts and are valued at the net asset value per share of the respective Series or Portfolio of the Trusts. Investment transactions in each Series or Portfolio of the Trusts are recorded on the trade date. Distributions of net investment income and capital gains from each Series or Portfolio of the Trusts are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Series or Portfolio of the Trusts are determined on the specific identification basis. FEDERAL INCOME TAXES: Operations of the Account form a part of, and are taxed with, the total operations of Golden American which is taxed as a life insurance company under the Internal Revenue Code. Earnings and realized capital gains of the Account attributable to the Contractowners are excluded in the determination of the federal income tax liability of Golden American. NOTE 3 - CHARGES AND FEES Prior to February 1, 2000, DVA Plus, Access, and the Premium Plus each had three different death benefit options referred to as Standard, Annual Ratchet, and 7% Solution; however, in the state of Washington, the 5.5% Solution is offered instead of the 7% Solution. After February 1, 2000 DVA Plus, Access and Premium Plus each had four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. Golden American discontinued external sales of DVA 80 in May 1991. Golden American has also discontinued external sales of DVA 100, DVA Series 100, and Granite PremElite. Under the terms of the Contract, certain charges are allocated to the Contracts to cover Golden American's expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges: MORTALITY AND EXPENSE RISK CHARGES: Golden American assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges deducted at annual rates to cover these risks follows: SERIES ANNUAL RATES ------ ------------ DVA 80.................................................. 0.80% DVA 100................................................. 0.90 DVA Series 100.......................................... 1.25 DVA Plus (pre February 2000) - Standard................. 1.10 DVA Plus (pre February 2000) - Annual Ratchet........... 1.25 DVA Plus (pre February 2000) - 5.5% Solution............ 1.25 DVA Plus (pre February 2000) - 7% Solution.............. 1.40 DVA Plus (post February 2000) - Standard................ 1.15 DVA Plus (post February 2000) - Annual Ratchet.......... 1.30 DVA Plus (post February 2000) - 5.5% Solution........... 1.30 DVA Plus (post February 2000) - Max 5.5................. 1.40 DVA Plus (post February 2000) - 7% Solution............. 1.50 DVA Plus (post February 2000) - Max 7................... 1.60 Access (pre February 2000) - Standard................... 1.25 Access (pre February 2000) - Annual Ratchet............. 1.40 Access (pre February 2000) - 5.5% Solution.............. 1.40 Access (pre February 2000) - 7% Solution................ 1.55 Access (post February 2000) - Standard.................. 1.30 Access (post February 2000) - Annual Ratchet............ 1.45 Access (post February 2000) - 5.5% Solution............. 1.45 21 NOTE 3 - CHARGES AND FEES (CONTINUED) SERIES ANNUAL RATES ------ ------------ Access (post February 2000) - Max 5.5................... 1.55 Access (post February 2000) - 7% Solution............... 1.65 Access (post February 2000) - Max 7..................... 1.75 Premium Plus (pre February 2000) - Standard............. 1.25 Premium Plus (pre February 2000) - Annual Ratchet....... 1.40 Premium Plus (pre February 2000)- 5.5% Solution......... 1.40 Premium Plus (pre February 2000) - 7% Solution.......... 1.55 Premium Plus (post February 2000) - Standard............ 1.30 Premium Plus (post February 2000) - Annual Ratchet...... 1.45 Premium Plus (post February 2000) - 7% Solution......... 1.65 Premium Plus (post February 2000) - Max 7............... 1.75 ESII.................................................... 1.25 Value................................................... 0.75 Access One.............................................. 0.35 Granite PrimElite - Standard............................ 1.10 Granite PrimElite - Annual Ratchet...................... 1.25 ASSET BASED ADMINISTRATIVE CHARGES: A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA 100 and DVA Series 100 Contracts. A daily charge at an annual rate of 0.15% is deducted from the assets attributable to the DVA Plus, Access, Premium Plus, ESII, Value, Access One, and Granite PrimElite Contracts. ADMINISTRATIVE CHARGES: An administrative charge is deducted from the accumulation value of Deferred Annuity Contracts to cover ongoing administrative expenses. The charge is $30 per Contract year for ES II and Value contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts the charge is $40. The charge is incurred at the beginning of the Contract processing period and deducted at the end of the Contract processing period. This charge had been waived for certain offerings of the Contracts. MINIMUM DEATH BENEFIT GUARANTEE CHARGES: For certain Contracts, a minimum death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death benefit per Contract year is deducted from the accumulation value of Deferred Annuity Contracts on each Contract anniversary date. CONTINGENT DEFERRED SALES CHARGES: Under DVA 80, DVA 100, DVA Plus, Premium Plus, ES II, Value, and Granite PrimElite Contracts, a contingent deferred sales charge ("Surrender Charge") is imposed as a percentage of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken. The following table reflects the surrender charge that is assessed based upon the date a premium payment is received.
Complete Years Elapsed Surrender Charge Since Premium Payment ------------------------------- ---------------------------------------------------------------------------------------------------- DVA 80 & 100 DVA PLUS PREMIUM PLUS ES II VALUE GRANITE PRIMELITE ------------ -------- ------------ ----- ----- ----------------- 0............. 6% 7% 8% 8% 6% 7% 1............. 5 7 8 7 6 7 2............. 4 6 8 6 6 6 3............. 3 5 8 5 5 5 4............. 2 4 7 4 4 4 5............. 1 3 6 3 3 3 6............. - 1 5 2 1 1 7............. - - 3 1 - - 8............. - - 1 - - - 9+............ - - - - - -
OTHER CONTRACT CHARGES: Under DVA 80, DVA 100, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contracts taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA 100 Contracts, annual distribution fees are deducted from the Contract accumulation values. 22 NOTE 3 - CHARGES AND FEES (CONTINUED) DEFERRED SALES LOAD: Under Contracts offered prior to October 1995, a sales load of up to 7.5 % was assessed against each premium payment for sales-related expenses as specified in the Contracts. For DVA Series 100, the sales load is deducted in equal annual installments over the period the Contract is in force, not to exceed 10 years. For DVA 80 and DVA 100 Contracts, although the sales load is chargeable to each premium when it is received by Golden American, the amount of such charge is initially advanced by Golden American to Contractowners and included in the accumulation value and then deducted in equal installments on each Contract anniversary date over a period of six years. Upon surrender of the Contract, the unamortized deferred sales load is deducted from the accumulation value. In addition, when partial withdrawal limits are exceeded, a portion of the unamortized deferred sales load is deducted. PREMIUM TAXES: For certain Contracts, premium taxes are deducted, where applicable, from the accumulation value of each Contract. The amount and timing of the deduction depend on the annuitant's state of residence and currently ranges up to 3.5% of premiums. FEES WAIVED BY GOLDEN AMERICAN: Certain charges and fees for various types of Contracts are currently waived by Golden American. Golden American reserves the right to discontinue these waivers at its discretion or to conform with changes in the law. A summary of the net assets retained in the Account, representing the unamortized deferred sales load and premium taxes advanced by Golden American previously noted, follows:
YEAR ENDED DECEMBER 31 -------------------------------------------- 2000 1999 -------------------- ------------------- (Dollars in thousands) Balance at beginning of year............................ $3,093 $9,003 Sales load advanced..................................... 43 105 Amortization of deferred sales load and premium tax..... (2,458) (6,015) -------------------- ------------------- Balance at end of year.................................. $678 $3,093 ==================== ===================
NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments follows:
YEAR ENDED DECEMBER 31 ---------------------------------------------------------------- 2000 1999 ---------------------------- ------------------------------- PURCHASES SALES PURCHASES SALES ---------------------------- ------------------------------- (Dollars in thousands) The GCG Trust: Liquid Asset Series.................................. $5,009,626 $4,852,286 $1,632,496 $1,285,868 Limited Maturity Bond Series......................... 100,400 49,723 81,290 30,122 Large Cap Value Series.............................. 104,683 5,678 - - Hard Assets Series................................... 40,084 35,964 41,433 38,490 All-Growth Series.................................... 71,697 148,258 46,095 36,607 All Cap Series...................................... 111,560 5,575 - - Real Estate Series................................... 96,209 64,912 20,497 27,401 Fully Managed Series................................. 112,464 61,046 68,756 23,879 Equity Income Series................................. 98,938 88,840 70,767 43,280 Capital Appreciation Series.......................... 227,251 51,623 148,975 33,036 Rising Dividends Series.............................. 151,463 58,223 261,711 22,554 Emerging Markets Series.............................. 62,812 67,830 9,244 12,838 Market Manager Series................................ 594 813 1,084 1,813 Value Equity Series.................................. 126,574 94,165 43,808 28,137 Strategic Equity Series.............................. 404,992 147,040 90,233 24,704 Small Cap Series..................................... 668,534 299,869 225,813 110,509 Managed Global Series................................ 773,452 628,437 178,228 176,669 Mid-Cap Growth Series................................ 1,570,684 553,073 391,543 119,357 Capital Growth Series................................ 163,005 24,871 220,384 23,307 23 NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED) YEAR ENDED DECEMBER 31 ---------------------------------------------------------------- 2000 1999 ---------------------------- ------------------------------- PURCHASES SALES PURCHASES SALES ---------------------------- ------------------------------- (Dollars in thousands) Research Series...................................... 332,012 33,449 270,703 19,426 Total Return Series.................................. 177,368 58,592 236,379 4,467 Growth Series........................................ 2,357,943 1,555,976 860,731 170,066 Global Fixed Income Series........................... 21,953 1,829 26,185 12,857 Developing World Series.............................. 224,227 196,834 58,318 20,799 Growth Opportunities Series.......................... 397 6,296 7,288 5,600 Asset Allocation Growth Series....................... 4,913 194 - - Diversified Mid-Cap Series........................... 16,411 5,011 - - Investors Series..................................... 37,309 15,640 - - Growth and Income Series............................. 15,051 2,209 - - Special Situation Series............................. 6,296 46 - - ING Variable Insurance Trust: ING Global Brand Names Series........................ 8,467 2,477 - - PIMCO Variable Insurance Trust: PIMCO High Yield Bond Portfolio...................... 104,012 72,796 124,005 18,385 PIMCO StocksPLUS Growth and Income Portfolio......... 128,021 38,274 188,819 25,749 Prudential Series Fund Inc.: Prudential Jennison Portfolio........................ 10,354 418 - - SP Jennison International Growth Portfolio........... 13,316 10,547 - - Greenwich Street Series Fund Inc.: Appreciation Portfolio............................. 136 255 111 202 Travelers Series Fund Inc.: Smith Barney High Income Portfolio................... 78 93 98 320 Smith Barney Large Cap Value Portfolio............... 77 82 167 189 Smith Barney International Equity Portfolio.......... 111 46 44 67 Smith Barney Money Market Portfolio.................. 13 436 483 222 Warburg Pincus Trust: International Equity Portfolio....................... 1,216,239 1,119,035 696,223 625,613 The Galaxy VIP Fund: Asset Allocation Portfolio........................... 1,340 17 141 9 Equity Portfolio..................................... 946 35 292 - Growth & Income Portfolio............................ 185 14 105 - High Quality Bond Portfolio.......................... 58 10 127 99 Small Company Growth Portfolio....................... 84 1 - - ---------------------------------------------------------------- COMBINED.................................................. $14,572,339 $10,358,838 $6,002,576 $2,942,641 ================================================================ 24
NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS Contractowners' transactions shown in the following table reflect gross inflows ("Purchases") and outflows ("Sales") in units for each Division. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted in both a sale (surrender of the old Contract) and a purchase (acquisition of the new Contract). All of the purchases transactions for the Market Manager Division resulted from such updates.
YEAR ENDED DECEMBER 31 --------------------------------------------------------------------------- 2000 1999 ---------------------------------- ---------------------------------- PURCHASES SALES PURCHASES SALES ---------------------------------- ---------------------------------- Liquid Asset Division............................ 359,367,174 350,362,386 124,478,649 101,109,842 Limited Maturity Bond Division................... 6,653,002 4,238,782 6,043,778 3,110,174 Large Cap Value Series........................... 10,510,495 1,148,728 - - Hard Assets Division............................. 2,834,446 2,496,801 2,900,594 2,714,660 All-Growth Division.............................. 1,772 4,534,313 1,593,344 2,299,652 All Cap Series................................... 10,302,677 1,241,107 - - Real Estate Division............................. 4,319,128 3,211,948 1,107,500 1,561,932 Fully Managed Division........................... 4,937,015 3,912,225 3,844,658 2,421,187 Equity Income Division........................... 5,587,065 5,891,560 4,105,827 3,799,977 Capital Appreciation Division.................... 9,788,554 3,977,530 6,021,915 3,037,582 Rising Dividends Division........................ 8,048,967 4,882,590 12,519,925 3,029,038 Emerging Markets Division........................ 6,972,719 7,369,824 1,467,567 1,902,732 Market Manager Division.......................... - 26,641 435 75,755 Value Equity Division............................ 7,941,727 6,192,411 2,852,986 2,154,579 Strategic Equity Division........................ 19,709,430 9,587,363 6,344,054 2,305,045 Small Cap Division............................... 26,260,160 17,429,511 14,347,399 8,174,181 Managed Global Division.......................... 34,701,368 30,852,410 9,633,015 10,824,049 Mid-Cap Growth Division.......................... 29,199,551 15,272,144 14,316,514 5,846,579 Capital Growth Division.......................... 9,504,070 2,906,917 12,561,878 2,575,149 Research Division................................ 10,607,414 2,858,194 12,204,579 1,771,319 Total Return Division............................ 9,344,159 5,124,311 13,447,324 976,323 Growth Division.................................. 90,088,344 64,904,288 46,544,853 13,013,005 Global Fixed Income Division..................... 2,067,425 444,699 2,406,215 1,322,576 Developing World Division........................ 25,929,101 23,178,428 6,615,294 2,774,781 Growth Opportunities Division.................... 2,653 586,755 726,528 570,950 Asset Allocation Growth Series................... 536,932 35,902 - - Diversified Mid-Cap Series....................... 1,738,197 587,931 - - Investors Series................................. 3,506,979 1,589,857 - - Growth and Income Series......................... 1,550,837 270,440 - - Special Situation Series......................... 696,811 33,708 - - ING Global Brand Names Series.................... 966,161 330,869 - - PIMCO High Yield Bond Division................... 11,171,609 9,133,980 12,707,468 2,989,676 PIMCO StocksPLUS Growth and Income Division............................... 10,253,524 4,989,762 15,418,741 3,191,901 Prudential Jennison Portfolio.................... 1,167,863 181,053 - - SP Jennison International Growth Portfolio....... 1,516,731 1,198,936 - - Appreciation Division............................ 6,545 13,984 5,856 11,558 Smith Barney High Income Division................ 2,416 6,424 3,730 23,271 Smith Barney Large Cap Value Division............ 2,886 4,081 6,907 9,522 Smith Barney International Equity Division....... 4,883 1,931 2,838 2,934 Smith Barney Money Market Division............... - 36,664 40,398 19,082 International Equity Division.................... 92,849,675 86,976,149 63,405,114 56,947,666 Asset Allocation Division........................ 117,695 1,286 13,289 844 Equity Division.................................. 71,978 3,194 26,039 835 Growth & Income Division......................... 16,903 1,136 11,266 1,139 High Quality Bond Division....................... 5,210 922 12,671 9,915 Small Company Growth Portfolio................... 5,427 2 - - ---------------------------------- ---------------------------------- COMBINED......................................... 820,867,678 678,030,077 397,739,148 240,579,410 ================================== ================================== 25
NOTE 6 - NET ASSETS Investments at net asset value less the payable to Golden American for charges and fees at December 31, 2000 consisted of the following:
LIMITED LIQUID MATURITY LARGE CAP HARD ALL- ASSET BOND VALUE ASSETS GROWTH ALL CAP DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION --------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $644,880 $174,673 $98,738 $35,044 $(100,519) $104,199 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 34,786 30,502 506 6,105 100,519 2,028 Net unrealized appreciation (depreciation) of investments... - (4,217) (699) 360 - (1,344) --------------------------------------------------------------------------------------------- $679,666 $200,958 $98,545 $41,509 $- $104,883 ============================================================================================= REAL FULLY EQUITY CAPITAL RISING EMERGING ESTATE MANAGED INCOME APPRECIATION DIVIDENDS MARKETS DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION --------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $69,992 $221,658 $130,422 $391,281 $704,927 $38,618 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 25,415 106,489 173,295 152,083 95,334 (17,454) Net unrealized appreciation (depreciation) of investments... 4,896 17,504 (11,924) (65,430) 60,077 (1,211) --------------------------------------------------------------------------------------------- $100,303 $345,651 $291,793 $477,934 $860,338 $19,953 ============================================================================================= MARKET VALUE STRATEGIC SMALL MANAGED MID-CAP MANAGER EQUITY EQUITY CAP GLOBAL GROWTH DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION --------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $44 $155,667 $377,532 $419,412 $150,916 $931,007 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 4,918 17,365 72,159 264,208 142,329 682,456 Net unrealized appreciation (depreciation) of investments... 1,657 7,690 (89,957) (261,523) (64,898) (455,402) --------------------------------------------------------------------------------------------- $6,619 $180,722 $359,734 $422,097 $228,347 $1,158,061 ============================================================================================= CAPITAL TOTAL GLOBAL DEVELOPING GROWTH RESEARCH RETURN GROWTH FIXED INCOME WORLD DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION --------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $471,766 $726,148 $521,837 $1,530,906 $40,770 $69,011 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 40,637 102,771 59,543 413,881 1,125 (12,293) Net unrealized appreciation (depreciation) of investments... (49,004) (28,391) 27,488 (469,807) (1,895) (2,320) --------------------------------------------------------------------------------------------- $463,399 $800,528 $608,868 $1,474,890 $40,000 $54,398 ============================================================================================= 26
NOTE 6 - NET ASSETS (CONTINUED) ASSET GROWTH ALLOCATION DIVERSIFIED GROWTH SPECIAL OPPORTUNITIES GROWTH MID CAP INVESTORS AND INCOME SITUATIONS DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ----------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $(746) $4,722 $11,404 $21,178 $12,856 $6,258 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 746 (11) (176) 615 (55) (13) Net unrealized appreciation (depreciation) of investments... - (15) 130 (235) (75) (354) ----------------------------------------------------------------------------------------------- $- $4,696 $11,358 $21,558 $12,726 $5,891 =============================================================================================== PIMCO PIMCO STOCKSPLUS PRUDENTIAL JENNISON ING GLOBAL HIGH YIELD GROWTH AND JENNISON INTERNATIONAL BRAND NAMES BOND INCOME PORTFOLIO GROWTH APPRECIATION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ----------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $5,999 $165,009 $259,602 $9,042 $2,776 $659 Accumulated net investment income (loss) and net realized gain (loss) on investments...... (229) 9,434 47,889 881 42 110 Net unrealized appreciation (depreciation) of investments... (216) (11,586) (49,007) (2,191) (98) 62 ----------------------------------------------------------------------------------------------- $5,554 $162,857 $258,484 $7,732 $2,720 $831 =============================================================================================== SMITH SMITH SMITH SMITH BARNEY BARNEY BARNEY BARNEY HIGH LARGE CAP INTERNATIONAL MONEY INTERNATIONAL ASSET INCOME VALUE EQUITY MARKET EQUITY ALLOCATION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION ---------------------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $501 $611 $387 $136 $193,174 $1,417 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 64 61 23 20 28,239 39 Net unrealized appreciation (depreciation) of investments... (119) 20 45 - (26,795) (69) ---------------------------------------------------------------------------------------------- $446 $692 $455 $156 $194,618 $1,387 ============================================================================================== HIGH SMALL GROWTH & QUALITY COMPANY EQUITY INCOME BOND GROWTH DIVISION DIVISION DIVISION DIVISION COMBINED ------------------------------------------------------------------------------- (Dollars in thousands) Unit transactions.................. $1,121 $274 $74 $79 $8,605,462 Accumulated net investment income (loss) and net realized gain (loss) on investments...... 82 3 1 4 2,586,476 Net unrealized appreciation (depreciation) of investments... (132) 7 3 (11) (1,478,986) ------------------------------------------------------------------------------- $1,071 $284 $78 $72 $9,712,952 =============================================================================== 27
NOTE 7 - UNIT VALUES Accumulation unit value information for units outstanding, by Contract type, as of December 31, 2000 follows: UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) LIQUID ASSET Currently payable annuity products: DVA 80 ................................................................ 209 16.61 $3 DVA 100 ............................................................... 3,872 16.21 63 Contracts in accumulation period: DVA 80 ................................................................ 253,815 16.61 4,216 DVA 100 ............................................................... 939,201 16.21 15,226 DVA Series 100......................................................... 72,995 15.54 1,134 DVA Plus - Standard (pre February 2000)................................ 713,224 15.75 11,234 DVA Plus- Standard (post February 2000)................................ 146,440 15.59 2,283 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II.................................. 14,214,983 15.47 219,919 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)....................................................... 7,270,477 15.31 111,297 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution................... 5,535,946 15.19 84,117 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000).................................. 2,183,030 15.03 32,816 DVA Plus - 7% Solution (post February 2000)............................ 302,892 14.94 4,527 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000)......................................... 7,933,969 14.90 118,208 DVA Plus - Max 7 (post February 2000).................................. 293,515 14.76 4,333 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)........................................ 2,657,053 14.67 38,987 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 2,132,811 14.50 30,917 Value.................................................................. 23,532 16.41 386 ------------------- $679,666 LIMITED MATURITY BOND Currently payable annuity products: DVA 80 ................................................................ 3,466 19.05 $66 DVA 100 ............................................................... 8,666 18.60 161 Contracts in accumulation period: DVA 80................................................................. 26,854 19.05 512 DVA 100 ............................................................... 1,088,342 18.60 20,240 DVA Series 100......................................................... 11,209 17.83 200 DVA Plus - Standard (pre February 2000)................................ 322,729 18.08 5,837 DVA Plus- Standard (post February 2000) ............................... 53,158 17.92 953 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II.................................. 3,621,501 17.76 64,327 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)....................................................... 849,473 17.60 14,952 28
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution................... 1,769,355 17.45 30,867 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 321,370 17.29 5,555 DVA Plus - 7% Solution (post February 2000)............................ 49,754 17.18 855 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ..................................... 2,442,970 17.11 41,790 DVA Plus - Max 7 (post February 2000).................................. 73,720 16.97 1,251 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 507,893 16.87 8,569 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 273,264 16.67 4,555 Value.................................................................. 13,071 18.84 246 Access One ............................................................ 1,095 19.77 22 ------------------- $200,958 LARGE CAP VALUE Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 81,093 10.56 $856 DVA Plus- Standard (post February 2000)................................ 147,571 10.55 1,557 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 2,138,069 10.55 22,546 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,537,946 10.54 16,210 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 770,213 10.53 8,111 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 942,003 10.53 9,915 DVA Plus - 7% Solution (post February 2000)............................ 181,541 10.52 1,910 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000)...................................... 961,611 10.52 10,112 DVA Plus - Max 7 (post February 2000).................................. 177,361 10.51 1,864 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 1,403,629 10.51 14,747 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 993,651 10.50 10,430 Value.................................................................. 27,079 10.59 287 ------------------- $98,545 HARD ASSETS Currently payable annuity products: DVA 100 ............................................................... 3,703 17.10 $63 Contracts in accumulation period: DVA 80................................................................. 37,384 17.52 655 DVA 100................................................................ 305,640 17.10 5,227 DVA Series 100 ........................................................ 11,245 16.39 184 DVA Plus - Standard (pre February 2000)................................ 83,792 16.62 1,392 DVA Plus- Standard (post February 2000)................................ 2,937 16.50 49 29
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 309,819 16.32 5,056 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 57,353 16.20 929 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 598,436 16.03 9,592 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 17,608 15.91 280 DVA Plus - 7% Solution (post February 2000) ........................... 5,200 15.81 82 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 861,668 15.72 13,543 DVA Plus - Max 7 (post February 2000) ................................. 18,820 15.62 294 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 42,632 15.53 662 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 227,856 15.34 3,495 Value ................................................................. 337 17.31 6 ------------------- $41,509 ALL CAP Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 51,500 11.61 $598 DVA Plus- Standard (post February 2000)................................ 80,308 11.61 932 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 2,182,516 11.59 25,306 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000).. 1,200,520 11.59 13,913 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 1,155,496 11.58 13,379 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 819,316 11.57 9,482 DVA Plus - 7% Solution (post February 2000) ........................... 70,600 11.57 817 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 1,620,720 11.56 18,740 DVA Plus - Max 7 (post February 2000).................................. 98,842 11.56 1,142 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 780,053 11.55 9,011 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 986,100 11.54 11,381 Value.................................................................. 15,599 11.65 182 ------------------- $104,883 REAL ESTATE Currently payable annuity products: DVA 80 ................................................................ 280 28.59 $8 DVA 100 ............................................................... 3,858 27.91 108 30
NOTE 7 - UNIT VALUES (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Contracts in accumulation period: DVA 80................................................................. 16,243 28.59 464 DVA 100 ............................................................... 460,525 27.91 12,854 DVA Series 100......................................................... 6,470 26.76 173 DVA Plus - Standard (pre February 2000)................................ 130,114 27.12 3,529 DVA Plus- Standard (post February 2000)................................ 7,229 26.93 195 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet ..... 1,006,919 26.64 26,821 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000).. 211,380 26.44 5,589 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 738,550 26.16 19,321 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 86,644 25.97 2,250 DVA Plus - 7% Solution (post February 2000) ........................... 12,612 25.81 326 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 826,871 25.65 21,212 DVA Plus - Max 7 (post February 2000).................................. 25,056 25.50 639 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 77,442 25.34 1,963 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 192,508 25.04 4,820 Value ................................................................. 1,113 28.25 31 ------------------- $100,303 FULLY MANAGED Currently payable annuity products: DVA 80 ................................................................ 839 27.95 $ 23 DVA 100 ............................................................... 30,484 27.28 832 Contracts in accumulation period: DVA 80 ................................................................ 40,691 27.95 1,137 DVA 100................................................................ 1,764,528 27.28 48,140 DVA Series 100 ........................................................ 26,037 26.15 681 DVA Plus - Standard (pre February 2000),............................... 473,557 26.51 12,553 DVA Plus- Standard (post February 2000)................................ 30,174 26.32 794 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 3,264,322 26.04 84,988 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 507,008 25.84 13,103 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 3,165,782 25.57 80,951 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 185,069 25.38 4,697 DVA Plus - 7% Solution (post February 2000)............................ 61,545 25.23 1,552 31
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ................................................. 3,237,449 25.07 81,175 DVA Plus - Max 7 (post February 2000).................................. 15,600 24.92 389 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 400,243 24.77 9,915 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 183,884 24.47 4,500 Value ................................................................. 8,003 27.62 221 ------------------- $345,651 EQUITY INCOME Currently payable annuity products: DVA 80 ................................................................ 4,863 25.67 $125 DVA 100 ............................................................... 38,356 25.06 961 Contracts in accumulation period: DVA 80................................................................. 158,144 25.67 4,059 DVA 100................................................................ 3,135,453 25.06 78,570 DVA Series 100 ........................................................ 41,479 24.02 996 DVA Plus - Standard (pre February 2000)................................ 324,404 24.35 7,898 DVA Plus- Standard (post February 2000)................................ 24,472 24.17 591 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet...... 2,309,476 23.91 55,228 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000).. 470,889 23.74 11,178 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 2,237,389 23.49 52,548 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ................................. 225,138 23.31 5,248 DVA Plus - 7% Solution (post February 2000) ........................... 79,161 23.17 1,834 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ................................................. 2,552,792 23.03 58,792 DVA Plus - Max 7 (post February 2000) ................................. 30,890 22.89 707 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 311,484 22.75 7,087 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 238,986 22.48 5,372 Value ................................................................. 22,752 25.36 577 Access One ............................................................ 833 26.61 22 ------------------- $291,793 CAPITAL APPRECIATION Currently payable annuity products: DVA 100 ............................................................... 30,808 26.03 $802 Contracts in accumulation period: DVA 80 ................................................................ 18,401 26.49 487 DVA 100................................................................ 1,995,446 26.03 51,945 DVA Series 100 ........................................................ 25,937 25.24 655 DVA Plus - Standard (pre February 2000)................................ 453,894 25.50 11,575 32
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus- Standard (post February 2000)................................ 97,043 25.36 2,461 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 3,626,696 25.17 91,289 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,210,622 25.03 30,300 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 4,174,489 24.85 103,716 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 847,242 24.70 20,927 DVA Plus - 7% Solution (post February 2000)............................ 124,676 24.59 3,066 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 4,496,266 24.48 110,086 DVA Plus - Max 7 (post February 2000) ................................. 109,154 24.38 2,661 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 981,676 24.27 23,825 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 969,120 24.06 23,314 Value ................................................................. 31,436 26.26 825 ------------------- $477,934 RISING DIVIDENDS Currently payable annuity products: DVA 80 ................................................................ 2,315 26.02 $60 DVA 100 ............................................................... 10,311 25.64 264 Contracts in accumulation period: DVA 80................................................................. 33,987 26.02 884 DVA 100................................................................ 2,125,370 25.64 54,493 DVA Series 100......................................................... 51,586 24.99 1,289 DVA Plus - Standard (pre February 2000)................................ 1,150,706 25.21 29,006 DVA Plus- Standard (post February 2000)................................ 95,313 25.09 2,391 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 8,035,273 24.94 200,360 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,073,372 24.81 26,632 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 9,797,232 24.67 241,653 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 440,779 24.54 10,816 DVA Plus - 7% Solution (post February 2000)............................ 428,500 24.45 10,477 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 9,922,551 24.36 241,712 DVA Plus - Max 7 (post February 2000).................................. 119,426 24.27 2,898 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 803,307 24.18 19,425 33
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 713,282 24.00 17,122 Value.................................................................. 33,143 25.83 856 ------------------- $860,338 EMERGING MARKETS Currently payable annuity products: DVA 100 ............................................................... 18,228 7.98 $146 Contracts in accumulation period: DVA 80................................................................. 15,618 8.09 127 DVA 100 ............................................................... 726,252 7.98 5,792 DVA Series 100......................................................... 19,358 7.77 151 DVA Plus - Standard (pre February 2000)................................ 265,114 7.84 2,079 DVA Plus- Standard (post February 2000)................................ 34,186 7.80 267 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet....... 268,805 7.76 2,085 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 79,970 7.72 617 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 976,884 7.67 7,494 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 6,725 7.63 52 DVA Plus - 7% Solution (post February 2000)............................ 64,473 7.61 491 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 36,306 7.58 275 DVA Plus - Max 7 (post February 2000).................................. 37,058 7.55 280 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 6,252 7.52 47 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 6,704 7.47 50 ------------------- $19,953 MARKET MANAGER Contracts in accumulation period: DVA 100................................................................ 238,516 27.75 $6,619 VALUE EQUITY Currently payable annuity products: DVA 80 ................................................................ 296 20.15 $6 DVA 100 ............................................................... 1,103 19.91 22 Contracts in accumulation period: DVA 80 ................................................................ 6,969 20.15 140 DVA 100 ............................................................... 401,819 19.91 7,999 DVA Series 100......................................................... 11,002 19.49 214 DVA Plus - Standard (pre February 2000)................................ 373,943 19.63 7,342 DVA Plus- Standard (post February 2000) ............................... 23,912 19.55 468 34
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 2,586,369 19.46 50,333 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 472,034 19.38 9,146 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 2,589,777 19.29 49,949 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 143,195 19.20 2,749 DVA Plus - 7% Solution (post February 2000)............................ 41,973 19.14 803 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 2,230,349 19.08 42,553 DVA Plus - Max 7 (post February 2000).................................. 10,293 19.03 196 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 298,983 18.97 5,672 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 162,505 18.85 3,064 Value ................................................................. 3,296 20.02 66 ------------------- $180,722 STRATEGIC EQUITY Currently payable annuity products: DVA 100 ............................................................... 29,192 19.30 $563 Contracts in accumulation period: DVA 80 ................................................................ 33,313 19.51 $650 DVA 100 ............................................................... 247,857 19.30 4,785 DVA Series 100......................................................... 9,208 18.95 174 DVA Plus - Standard (pre February 2000)................................ 469,023 19.07 8,946 DVA Plus- Standard (post February 2000) ............................... 107,927 19.00 2,051 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 4,824,610 18.92 91,300 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,797,957 18.85 33,893 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 3,565,530 18.78 66,946 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 1,149,145 18.70 21,490 DVA Plus - 7% Solution (post February 2000)............................ 185,121 18.65 3,453 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 4,283,689 18.60 79,684 DVA Plus - Max 7 (post February 2000).................................. 149,363 18.55 2,771 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 1,203,898 18.50 22,276 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 1,103,423 18.40 20,308 Value.................................................................. 22,904 19.41 444 ------------------- $359,734 34
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) SMALL CAP Currently payable annuity products: DVA 100 ............................................................... 6,108 18.77 $115 Contracts in accumulation period: DVA 80................................................................. 21,812 18.96 413 DVA 100................................................................ 366,134 18.77 6,872 DVA Series 100......................................................... 14,421 18.44 266 DVA Plus - Standard (pre February 2000)................................ 457,260 18.54 8,476 DVA Plus- Standard (post February 2000)................................ 86,622 18.49 1,601 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 6,884,993 18.40 126,665 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,586,595 18.35 29,116 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 5,436,276 18.26 99,255 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 1,058,396 18.21 19,276 DVA Plus - 7% Solution (post February 2000)............................ 184,093 18.17 3,344 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ................................................. 4,812,017 18.12 87,196 DVA Plus - Max 7 (post February 2000).................................. 140,651 18.07 2,542 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 1,163,996 18.03 20,986 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000.................................................. 825,516 17.94 14,808 Value ................................................................. 60,739 18.86 1,146 Access One ............................................................ 1,040 19.25 20 ------------------- $422,097 MANAGED GLOBAL Currently payable annuity products: DVA 100 ............................................................... 10,419 20.88 $218 Contracts in accumulation period: DVA 80................................................................. 17,976 21.22 381 DVA 100 ............................................................... 1,876,847 20.88 39,190 DVA Series 100......................................................... 34,905 20.30 709 DVA Plus - Standard (pre February 2000)................................ 583,929 20.44 11,937 DVA Plus- Standard (post February 2000)................................ 110,792 20.33 2,253 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 1,348,843 20.19 27,236 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 965,140 20.08 19,382 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 3,496,637 19.94 69,740
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 648,150 19.83 12,855 DVA Plus - 7% Solution (post February 2000)............................ 406,790 19.75 8,034 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 565,653 19.67 11,126 DVA Plus - Max 7 (post February 2000).................................. 138,197 19.59 2,707 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 621,115 19.51 12,116 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 522,271 19.34 10,103 Value.................................................................. 16,170 21.01 340 Access One ............................................................ 953 21.72 20 ------------------- $228,347 MID-CAP GROWTH Currently payable annuity products: DVA 80 ................................................................ 464 43.92 $20 DVA 100 ............................................................... 6,727 43.37 292 Contracts in accumulation period: DVA 80................................................................. 34,342 43.92 1,509 DVA 100................................................................ 1,201,909 43.37 52,125 DVA Series 100 ........................................................ 21,975 42.42 932 DVA Plus - Standard (pre February 2000)................................ 519,800 42.70 22,193 DVA Plus- Standard (post February 2000)................................ 122,975 42.56 5,234 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 7,313,425 42.23 308,877 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,992,588 42.16 84,008 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 5,926,552 41.89 248,288 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 1,290,685 41.76 53,902 DVA Plus - 7% Solution (post February 2000) ........................... 186,073 41.63 7,746 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 6,423,421 41.50 266,562 DVA Plus - Max 7 (post February 2000) ................................. 162,554 41.37 6,725 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 1,240,675 41.24 51,162 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 1,099,617 40.98 45,058 Granite PrimElite - Standard .......................................... 3,616 42.70 155 Granite PrimElite - Annual Ratchet..................................... 27,638 42.23 1,167 Value.................................................................. 48,259 43.64 2,106 ------------------- $1,158,061 CAPITAL GROWTH Contracts in accumulation period: DVA 80................................................................. 4,517 17.71 $80 DVA 100................................................................ 310,535 17.54 5,447 37
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Series 100......................................................... 10,129 17.25 175 DVA Plus - Standard (pre February 2000)................................ 603,420 17.33 10,460 DVA Plus- Standard (post February 2000)................................ 87,080 17.29 1,506 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II,.......................................... 6,881,891 17.21 118,442 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,239,023 17.17 21,271 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 6,622,519 17.09 113,149 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 740,611 17.04 12,623 DVA Plus - 7% Solution (post February 2000)............................ 181,294 17.00 3,083 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 8,274,067 16.96 140,348 DVA Plus - Max 7 (post February 2000).................................. 116,196 16.92 1,966 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 1,171,869 16.88 19,782 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 874,247 16.80 14,687 Value.................................................................. 21,556 17.63 380 ------------------- $463,399 RESEARCH Contracts in accumulation period: DVA 80 ................................................................ 6,559 27.39 $180 DVA 100................................................................ 345,241 27.05 9,340 DVA Series 100 ........................................................ 18,310 26.46 484 DVA Plus - Standard (pre February 2000)................................ 604,614 26.63 16,103 DVA Plus- Standard (post February 2000)................................ 86,539 26.55 2,298 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 8,149,685 26.39 215,099 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,500,906 26.30 39,472 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 7,760,199 26.13 202,800 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 973,963 26.05 25,373 DVA Plus - 7% Solution (post February 2000)............................ 378,215 25.97 9,822 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 8,763,559 25.89 226,859 DVA Plus - Max 7 (post February 2000).................................. 160,258 25.81 4,135 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 1,007,294 25.72 25,911 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 807,166 25.56 20,632 38
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Granite PrimElite - Standard........................................... 3,075 26.63 82 Granite PrimElite - Annual Ratchet..................................... 36,485 26.39 963 Value.................................................................. 35,827 27.23 975 ------------------- $800,528 TOTAL RETURN Contracts in accumulation period: DVA 80................................................................. 8,319 21.54 $179 DVA 100................................................................ 329,747 21.27 7,013 DVA Series 100......................................................... 7,790 20.80 162 DVA Plus - Standard (pre February 2000)................................ 768,269 20.94 16,086 DVA Plus- Standard (post February 2000)................................ 96,349 20.87 2,011 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 9,222,564 20.75 191,336 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000).... 1,350,560 20.68 27,924 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 6,431,976 20.55 132,146 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 597,315 20.48 12,233 DVA Plus - 7% Solution (post February 2000)............................ 205,502 20.42 4,195 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ................................................. 9,095,578 20.35 185,107 DVA Plus - Max 7 (post February 2000) ................................. 102,750 20.29 2,084 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 836,664 20.22 16,920 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 506,976 20.10 10,188 Granite PrimElite - Standard........................................... 4,433 20.94 93 Granite PrimElite - Annual Ratchet .................................... 27,675 20.75 574 Value ................................................................. 28,821 21.40 617 ------------------- $608,868 GROWTH Contracts in accumulation period: DVA 80................................................................. 33,891 22.65 $768 DVA 100................................................................ 776,539 22.44 17,425 DVA Series 100......................................................... 28,302 22.07 624 DVA Plus - Standard (pre February 2000) ............................... 913,550 22.17 20,257 DVA Plus- Standard (post February 2000)................................ 325,133 22.12 7,192 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II .......................................... 18,211,995 22.02 400,965 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 4,730,311 21.96 103,884 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 13,563,137 21.86 296,433 39
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 3,020,949 21.80 65,867 DVA Plus - 7% Solution (post February 2000)............................ 693,052 21.75 15,074 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 18,166,964 21.70 394,196 DVA Plus - Max 7 (post February 2000).................................. 437,723 21.65 9,475 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 3,791,737 21.59 81,880 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 2,741,325 21.49 58,911 Value.................................................................. 89,147 22.55 2,010 Access One ............................................................ 808 22.98 19 ------------------- $1,474,980 GLOBAL FIXED INCOME Contracts in accumulation period: DVA 80................................................................. 1 12.19 $- DVA 100................................................................ 23,535 12.03 283 DVA Plus - Standard (pre February 2000)................................ 59,545 11.85 705 DVA Plus- Standard (post February 2000)................................ 16,337 11.81 193 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II .......................................... 1,222,759 11.74 14,352 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000).. 380,506 11.70 4,451 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 490,596 11.62 5,703 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 149,939 11.59 1,738 DVA Plus - 7% Solution (post February 2000)............................ 14,625 11.55 169 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 774,315 11.51 8,916 DVA Plus - Max 7 (post February 2000).................................. 16,854 11.48 194 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 183,296 11.44 2,097 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 101,438 11.37 1,153 Value.................................................................. 3,821 12.11 46 ------------------- $40,000 DEVELOPING WORLD Contracts in accumulation period: DVA 80 ................................................................ 1,553 7.71 $12 DVA 100................................................................ 27,070 7.67 208 DVA Plus - Standard (pre February 2000)................................ 48,529 7.61 369 DVA Plus- Standard (post February 2000)................................ 43,664 7.60 332 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 2,014,773 7.58 15,271 40
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 760,058 7.57 5,752 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 991,863 7.55 7,485 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 609,636 7.54 4,594 DVA Plus - 7% Solution (post February 2000)............................ 52,533 7.52 395 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 1,788,603 7.51 13,439 DVA Plus - Max 7 (post February 2000).................................. 35,033 7.50 263 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 549,427 7.49 4,116 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 259,187 7.47 1,936 Value.................................................................. 29,347 7.69 226 ------------------- $54,398 ASSET ALLOCATION GROWTH Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 9,294 9.38 $87 DVA Plus- Standard (post February 2000)................................ 5,894 9.38 55 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 41,334 9.38 388 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 123,421 9.38 1,157 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 25,334 9.37 238 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 101,509 9.37 951 DVA Plus - 7% Solution (post February 2000)............................ 7,201 9.37 68 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 36,958 9.37 346 DVA Plus - Max 7 (post February 2000).................................. 11,921 9.37 112 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 66,092 9.37 619 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 72,072 9.37 675 ------------------- $4,696 DIVERSIFIED MID CAP Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 6,748 9.88 $66 DVA Plus- Standard (post February 2000)................................ 5,137 9.88 50 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 290,230 9.88 2,867 41
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 131,431 9.88 1,298 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 185,852 9.87 1,835 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 80,992 9.87 799 DVA Plus - 7% Solution (post February 2000)............................ 9,164 9.87 90 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000) ................................................. 285,263 9.87 2,816 DVA Plus - Max 7 (post February 2000).................................. 10,627 9.87 109 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 55,360 9.87 546 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000) ................................................ 89,462 9.87 882 ------------------- $11,358 INVESTORS SERIES Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 13,281 11.28 $150 DVA Plus- Standard (post February 2000)................................ 29,577 11.27 333 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II .......................................... 539,461 11.26 6,075 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 313,828 11.26 3,533 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 198,869 11.25 2,236 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 202,765 11.24 2,280 DVA Plus - 7% Solution (post February 2000)............................ 21,065 11.24 237 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 234,838 11.23 2,637 DVA Plus - Max 7 (post February 2000).................................. 11,867 11.23 133 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 145,735 11.22 1,635 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 191,223 11.21 2,144 Value.................................................................. 14,613 11.31 165 ------------------- $21,558 GROWTH & INCOME SERIES Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 3,617 9.95 $36 DVA Plus- Standard (post February 2000) ............................... 23,267 9.95 231 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 274,785 9.94 2,733 42
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 170,460 9.94 1,695 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 88,531 9.94 880 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 128,409 9.94 1,276 DVA Plus - 7% Solution (post February 2000)............................ 19,469 9.94 193 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 283,250 9.94 2,815 DVA Plus - Max 7 (post February 2000).................................. 21,427 9.94 213 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 148,807 9.93 1,478 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 113,353 9.93 1,126 Value.................................................................. 5,022 9.96 50 ------------------- $12,726 SPECIAL SITUATIONS Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 2,315 8.89 $21 DVA Plus- Standard (post February 2000)................................ 18,016 8.89 160 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 121,670 8.89 1,081 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 76,347 8.89 678 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 85,716 8.89 762 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 66,473 8.88 591 DVA Plus - 7% Solution (post February 2000)............................ 9,174 8.88 81 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 131,190 8.88 1,165 DVA Plus - Max 7 (post February 2000).................................. 5,866 8.88 52 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 62,575 8.88 556 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 83,761 8.88 744 ------------------- $5,891 ING GLOBAL BRAND NAMES Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 10,619 8.76 $93 DVA Plus- Standard (post February 2000)................................ 8,037 8.76 70 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 110,552 8.75 968 43
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 169,871 8.75 1,486 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 21,575 8.75 189 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 85,307 8.74 746 DVA Plus - 7% Solution (post February 2000)............................ 39,547 8.74 346 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 28,853 8.74 252 DVA Plus - Max 7 (post February 2000).................................. 7,369 8.73 64 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 84,578 8.73 738 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 68,648 8.72 599 Value.................................................................. 336 8.78 3 ------------------- $5,554 PIMCO HIGH YIELD BOND Contracts in accumulation period: DVA 80................................................................. 1 10.17 - DVA 100................................................................ 126,903 10.12 $1,284 DVA Series 100......................................................... 948 10.03 10 DVA Plus - Standard (pre February 2000)................................ 362,732 10.05 3,645 DVA Plus- Standard (post February 2000)................................ 63,647 10.04 639 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 5,140,417 10.01 51,454 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 908,512 9.97 9,082 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 3,158,188 9.97 31,485 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 498,509 9.96 4,963 DVA Plus - 7% Solution (post February 2000)............................ 111,021 9.94 1,104 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 4,861,887 9.93 48,273 DVA Plus - Max 7 (post February 2000).................................. 64,046 9.92 635 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 631,991 9.90 6,258 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 386,288 9.88 3,815 Value.................................................................. 20,732 10.15 210 ------------------- $162,857 PIMCO STOCKSPLUS GROWTH AND INCOME Contracts in accumulation period: DVA 80................................................................. 399 11.91 $5 DVA 100................................................................ 117,131 11.85 1,388 44
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) DVA Series 100......................................................... 2,489 11.73 29 DVA Plus - Standard (pre February 2000)................................ 281,922 11.77 3,317 DVA Plus- Standard (post February 2000) ............................... 86,637 11.75 1,018 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 6,006,923 11.72 70,399 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,178,840 11.70 13,797 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 4,659,705 11.67 54,389 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 624,891 11.66 7,284 DVA Plus - 7% Solution (post February 2000)............................ 187,618 11.64 2,184 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 6,921,410 11.62 80,461 DVA Plus - Max 7 (post February 2000).................................. 70,828 11.61 822 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 1,176,897 11.59 13,644 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 829,397 11.56 9,589 Value.................................................................. 13,298 11.88 158 ------------------- $258,484 PRUDENTIAL JENNISON PORTFOLIO Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 2,731 7.85 $21 DVA Plus- Standard (post February 2000)................................ 37,201 7.85 292 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 194,916 7.85 1,529 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 242,694 7.84 1,902 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution ................................. 64,129 7.84 503 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 92,165 7.84 722 DVA Plus - 7% Solution (post February 2000)............................ 15,840 7.83 124 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 75,572 7.83 592 DVA Plus - Max 7 (post February 2000).................................. 19,630 7.83 154 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 89,929 7.82 704 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 152,003 7.82 1,189 ------------------- $7,732 45
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) SP JENNISON INTERNATIONAL PORTFOLIO Contracts in accumulation period: DVA Plus - Standard (pre February 2000)................................ 7,751 8.57 $66 DVA Plus- Standard (post February 2000)................................ 6,381 8.57 55 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II........................................... 65,551 8.56 561 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 44,024 8.56 377 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 64,843 8.56 555 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000) ........................................ 58,710 8.56 503 DVA Plus - 7% Solution (post February 2000)............................ 3,557 8.56 30 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 15,695 8.56 134 DVA Plus - Max 7 (post February 2000) ................................. 7,516 8.56 64 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000) ................................................ 12,698 8.55 109 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 28,074 8.55 240 Value.................................................................. 2,995 8.57 26 ------------------- $2,720 SMITH BARNEY APPRECIATION Contracts in accumulation period: Granite PrimElite - Standard........................................... 419 18.16 $8 Granite PrimElite - Annual Ratchet..................................... 45,655 18.03 823 ------------------- $831 SMITH BARNEY HIGH INCOME Contracts in accumulation period: Granite PrimElite - Standard........................................... 4,903 12.56 $62 Granite PrimElite - Annual Ratchet..................................... 30,852 12.46 384 ------------------- $446 SMITH BARNEY LARGE CAP VALUE Contracts in accumulation period: Granite PrimElite - Standard........................................... 3,364 21.34 $72 Granite PrimElite - Annual Ratchet..................................... 29,285 21.16 620 ------------------- $692 SMITH BARNEY INTERNATIONAL EQUITY Contracts in accumulation period: Granite PrimElite - Standard........................................... 2,260 17.89 $ 40 Granite PrimElite - Annual Ratchet..................................... 23,397 17.74 415 ------------------- $455 SMITH BARNEY MONEY MARKET Contracts in accumulation period: Granite PrimElite - Standard........................................... 10,771 12.38 $133 Granite PrimElite - Annual Ratchet..................................... 1,839 12.27 23 ------------------- $156 46
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) INTERNATIONAL EQUITY Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet....... 5,535,477 11.37 $62,958 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 2,474,742 11.37 28,140 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 5,326,265 11.29 60,130 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 685,944 11.18 7,669 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 1,257,278 11.43 14,365 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 804,897 11.34 9,130 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 1,033,869 11.23 11,615 Value.................................................................. 52,151 11.73 611 ------------------- $194,618 ASSET ALLOCATION Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet....... 10,075 10.78 $109 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 4,515 10.76 49 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 18,669 10.74 200 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 70,287 10.78 757 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 6,792 10.76 73 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 18,516 10.73 199 ------------------- $1,387 EQUITY Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet....... 10,577 11.41 $ 121 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 12,157 11.39 138 47
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 6,672 11.37 76 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 46,533 11.41 531 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 3,426 11.38 39 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 14,623 11.36 166 ------------------- $1,071 GROWTH & INCOME Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet...... 9,132 10.98 $100 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 992 10.96 11 Access - 7% Solution (pre February 2000), Premium Plus - 7% Solution (pre February 2000).................................................. 3,904 10.94 43 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 4,780 10.98 52 Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 7,086 10.93 78 ------------------- $284 HIGH QUALITY BOND Contracts in accumulation period: DVA Plus - Annual Ratchet & 5.5% Solution, Access - Standard, Premium Plus - Standard, ES II............................. 4,745 11.05 $53 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 2,299 11.04 25 ------------------- $78 SMALL COMPANY GROWTH Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution, Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II, Granite PrimElite - Annual Ratchet....... 1,744 13.35 $23 DVA Plus - 7% Solution (pre February 2000), Access - Annual Ratchet (pre February 2000) & 5.5% Solution, Premium Plus - Annual Ratchet (pre February 2000) & 5.5% Solution.................................. 1,380 13.32 19 DVA Plus - Annual Ratchet (post February 2000), Access - Standard (post February 2000), Premium Plus - Standard (post February 2000)... 1,108 13.34 15 Access - Annual Ratchet (post February 2000), Premium Plus - Annual Ratchet (post February 2000)......................................... 466 13.32 6 48
NOTE 7 - UNIT VALUES (CONTINUED) UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------------- (In thousands) Access - 7% Solution (post February 2000), Premium Plus - 7% Solution (post February 2000)................................................. 627 13.28 8 Access - Max 7 (post February 2000), Premium Plus - Max 7 (post February 2000)................................................. 100 13.27 1 ------------------- $72 ------------------- COMBINED.................................................................. 483,096,286 $9,712,952 =============== =================== 49
276 PART C -- OTHER INFORMATION ITEM 24: FINANCIAL STATEMENTS (a) (1) All financial statements are included in the Statement of Additional Information as indicated therein (2) Schedules I, III and IV follow. All other schedules to the consolidated financial statements required by Article 7 of Regulation S-X are omitted because they are not applicable or because the information is included elsewhere in the consolidated financial statements or notes thereto.
SCHEDULE I SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES (Dollars in thousands) BALANCE SHEET DECEMBER 31, 2000 COST(1) VALUE AMOUNT ------------------------------------------------------------------------------------------------------------------------------ TYPE OF INVESTMENT Fixed maturities, available for sale: Bonds: United States government and governmental agencies and authorities......................................................... $18,607 $19,171 $19,171 Public utilities...................................................... 54,132 52,826 52,826 Corporate securities.................................................. 355,890 349,202 349,202 Other asset-backed securities......................................... 223,787 224,122 224,122 Mortgage-backed securities............................................ 146,335 147,257 147,257 -------------------------------------------- Total fixed maturities, available for sale............................ 798,751 792,578 792,578 Equity securities: Common stocks: industrial, miscellaneous, and all other............... 8,611 6,791 6,791 Mortgage loans on real estate......................................... 99,916 99,916 Policy loans.......................................................... 13,323 13,323 Short-term investments................................................ 106,775 106,775 --------------- ------------- Total investments..................................................... $1,027,376 $1,019,383 =============== =============
Note 1: Cost is defined as original cost for common stocks, amortized cost for bonds and short-term investments, and unpaid principal for policy loans and mortgage loans on real estate, adjusted for amortization of premiums and accrual of discounts.
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Dollars in thousands) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I COLUMN J COLUMN K ------------------------------------------------------------------------------------------------------------------------------------ FUTURE POLICY AMORTIZA- BENEFITS, OTHER BENEFITS TION OF LOSSES, POLICY CLAIMS, DEFERRED DEFERRED CLAIMS CLAIMS INSURANCE LOSSES POLICY POLICY AND UNEARNED AND PREMIUMS NET AND ACQUI- OTHER ACQUISITION LOSS REVENUE BENEFITS AND INVESTMENT SETTLEMENT SITION OPERATING PREMIUMS SEGMENT COSTS EXPENSES RESERVE PAYABLE CHARGES INCOME EXPENSES COSTS EXPENSES* WRITTEN ------------------------------------------------------------------------------------------------------------------------------------ YEAR ENDED DECEMBER 31, 2000: Life insurance $635,147 $1,062,891 $6,817 $82 $144,877 $64,140 $200,031 $55,154 $143,300 -- YEAR ENDED DECEMBER 31, 1999: Life insurance 528,957 1,033,701 6,300 8 82,935 59,169 182,221 33,119 (83,827) -- YEAR ENDED DECEMBER 31, 1998: Life insurance 204,979 881,112 3,840 -- 39,119 42,485 96,968 5,148 (26,406) -- * This includes policy acquisition costs deferred for first year commissions and interest bonuses, premium credit, and other expenses related to the production of new business. The costs related to first year interest bonuses and the premium credit are included in benefits claims, losses, and settlement expenses.
SCHEDULE IV REINSURANCE COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F -------------------------------------------------------------------------------------------------------------------------------- PERCENTAGE CEDED TO ASSUMED OF AMOUNT GROSS OTHER FROM OTHER NET ASSUMED AMOUNT COMPANIES COMPANIES AMOUNT TO NET -------------------------------------------------------------------------------------------------------------------------------- AT DECEMBER 31, 2000: Life insurance in force................. $196,334,000 $105,334,000 -- $91,000,000 -- ================================================================================ At December 31, 1999: Life insurance in force................. $225,000,000 $119,575,000 -- $105,425,000 -- ================================================================================ AT DECEMBER 31, 1998: Life insurance in force................. $181,456,000 $111,552,000 -- $69,904,000 -- ================================================================================
(b) EXHIBITS (1) Resolution of the board of directors of Depositor authorizing the establishment of the Registrant incorporated herein by reference to Item 24(b)(1) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (2) N/A (3)(a) Distribution Agreement between the Depositor and Directed Services, Inc. incorporated herein by reference to Item 24(b) (3)(a) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (b) Dealers Agreement incorporated herein by reference to Item 24(b) (3)(b) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (c) Organizational Agreement incorporated herein by reference to Item 24(b)(3)(c) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (d) Assignment Agreement for Organizational Agreement incorporated herein by reference to Item 24(b)(3)(d) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (4)(a) Individual Deferred Combination Variable and Fixed Annuity Contract incorporated herein by reference to Item 24(b)(4)(a) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (b) Group Deferred Combination Variable and Fixed Annuity Contract incorporated herein by reference to Item 24(b)(4)(b) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (c) Individual Deferred Variable Annuity Contract incorporated herein by reference to Item 24(b)(4)(c) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (d) Individual Retirement Annuity Rider Page incorporated herein by reference to Item 24(b)(4)(d) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). (e) ROTH Individual Retirement Annuity Rider incorporated herein by reference to Item 24(b)(4)(e) of Post-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on February 11, 1998 (File Nos. 333-28769, 811-5626). (f) Minimum Guaranteed Accumulation Benefit Rider (REV) incorporated herein by reference to Item 24(b)(4)(f) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (g) Minimum Guaranteed Income Benefit Rider (REV) incorporated herein by reference to Item 24(b)(4)(g) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (h) Minimum Guaranteed Withdrawal Benefit Rider (REV) incorporated herein by reference to Item 24(b)(4)(h) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (i) Living Benefit Rider Endorsement (Inforce Riders) incorporated herein by reference to Item 24(b)(4)(i) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (j) Death Benefit Endorsement No.1 (REV)(7% Solution Enhanced) incorporated herein by reference to Item 24(b)(4)(j) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (k) Death Benefit Endorsement No.2 (REV)(Ratchet Enhanced) incorporated herein by reference to Item 24(b)(4)(k) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (l) Death Benefit Endorsement No.3 (REV)(Standard) incorporated herein by reference to Item 24(b)(4)(l) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (m) Death Benefit Endorsement No.4 (REV)(Max 7 Enhanced) incorporated herein by reference to Item 24(b)(4)(m) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (n) Death Benefit Endorsement No.5 (Base Death Benefit) incorporated herein by reference to Item 24(b)(4)(n) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (o) Death Benefit Endorsement No.6 (Inforce Contracts) incorporated herein by reference to Item 24(b)(4)(o) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (p) Earnings Enhancement Death Benefit Rider incorporated herein by reference to Item 24(b)(4)(p) of Post-Effective Amendment No. 11 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on February 23, 2001 (File Nos. 333-28769, 811-5626). (5)(a) Individual Deferred Combination Variable and Fixed Annuity Application incorporated herein by reference to Item 24(b)(5)(a) of Post-Effective Amendment No. 4 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on December 3, 1999 (File Nos. 333-28769, 811-5626). (b) Group Deferred Combination Variable and Fixed Annuity Enrollment Form incorporated herein by reference to Item 24(b)(5)(b) of Post-Effective Amendment No. 4 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on December 3, 1999 (File Nos. 333-28769, 811-5626). (c) Individual Deferred Variable Annuity Application incorporated herein by reference to Item 24(b)(5)(c) of Post-Effective Amendment No. 4 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on December 3, 1999 (File Nos. 333-28769, 811-5626). (6)(a) Certificate of Amendment of the Restated Articles of Incorporation of Golden American, dated (03/01/95) incorporated herein by reference to Item 24(b)(6)(a) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (b) By-Laws of Golden American, dated (01/07/94) incorporated herein by reference to Item 24(b)(6)(b) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (c) Resolution of the board of directors for Powers of Attorney, dated (04/23/99) incorporated herein by reference to Item 24(b)(6)(c) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (7) Not applicable (8)(a) Participation Agreement between Golden American and The PIMCO Variable Insurance Trust incorporated herein by reference to Item 24(b)(8)(a) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (b) Administrative Services Agreement between Golden American and Equitable Life Insurance Company of Iowa incorporated herein by reference to Item 24(b)(8)(b) of Post-Effective Amendment No. 2 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 30, 1998 (File Nos. 333-28769, 811-5626). (c) Service Agreement between Golden American and Directed Services, Inc. incorporated herein by reference to Item 24(b)(8)(c) of Post-Effective Amendment No. 2 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 30, 1998 (File Nos. 333-28769, 811-5626). (d) Asset Management Agreement between Golden American and ING Investment Management LLC incorporated herein by reference to Item 24(b)(8)(d) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (e) Reciprocal Loan Agreement between Golden American and ING America Insurance Holdings, Inc. incorporated herein by reference to Item 24(b)(8)(e) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (f) Revolving Note Payable between Golden American and SunTrust Bank incorporated herein by reference to Item 24(b)(8)(f) of Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). (g) Surplus Note, dated, 12/17/96, between Golden American and Equitable of Iowa Companies incorporated herein by reference to Item 24(b)(8)(g) of Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). (h) Surplus Note, dated, 12/30/98, between Golden American and Equitable Life Insurance Company of Iowa incorporated herein by reference to Item 24(b)(8)(h) of Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). (i) Surplus Note, dated, 09/30/99, between Golden American and ING AIH incorporated herein by reference to Item 24(b)(8)(i) of Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). (j) Surplus Note, dated, 12/08/99, between Golden American and First Columbine Life Insurance Company incorporated herein by reference to Item 24(b)(8)(j) of Post-Effective Amendment No. 5 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on January 27, 2000 (File Nos. 333-28769, 811-5626). (k) Surplus Note, dated, 12/30/99, between Golden American and Equitable Life Insurance Company of Iowa incorporated herein by reference to Item 24(b)(8)(k) of Post-Effective Amendment No. 5 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on January 27, 2000 (File Nos. 333-28769, 811-5626). (l) Participation Agreement between Golden American and The Prudential Series Fund, Inc. incorporated herein by reference to Item 24(b)8(l) of Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). (m) Participation Agreement between Golden American and ING Variable Insurance Trust incorporated herein by reference to Item 24(b)(8)(m) of Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). (n) Amendment to the Participation Agreement between Golden American and The Prudential Series Fund, Inc. incorporated herein by reference to Item 24(b)(8)(n) of Post-Effective Amendment No. 10 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on December 15, 2000 (File Nos. 333-28769, 811-5626). (o) Reinsurance Agreement, dated 06/30/00, between Golden American and Equitable Life Insurance Company of Iowa Incorporated herein by reference to Item 24(b)(8)(o) of Post-Effective Amendment No. 7 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on September 13, 2000 (File Nos. 333-28769, 811-5626). (p) Reinsurance Agreement, effective 01/01/00, between Golden American and Security Life of Denver International Limited incorporated herein by reference to Item 24(b)(8)(p) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (q) Letter of Credit between Security Life of Denver International Limited and The Bank of New York for the benefit of Golden American incorporated herein by reference to Item 24(b)(8)(q) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (r) Form of Participation Agreement between Golden American and Pilgrim Variable Products Trustincorporated herein by reference to Item 24(b)(8)(r) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (s) Form of Participation Agreement between Golden American and ProFunds incorporated herein by reference to Item 24(b)(8)(s) of Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-28769, 811-5626). (t) Amendment to the Reinsurance Agreement, amended 09/28/01, between Golden American and Security Life of Denver International Limited incorporated herein by reference to Item 24(b)(8)(t) of Post-Effective Amendment No. 13 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about November 1, 2001 (File Nos. 333-28769, 811-5626). (u) Renewal of Revolving Note Payable between Golden American and SunTrust Bank as of April 30, 2001 and expiring May 31, 2002 incorporated herein by reference to Item 24(b)(8)(u) of Post-Effective Amendment No. 13 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about November 1, 2001 (File Nos. 333-28769, 811-5626). (v) Form of Participation Agreement with AIM Advisors, Inc. and AIM Variable Insurance Funds incorporated herein by reference to Item 24(b)(8)(v) of Post-Effective Amendment No. 13 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about November 1, 2001 (File Nos. 333-28769, 811-5626). (w) Form of Participation Agreement with INVESCO Funds Group, Inc. and INVESCO Variable Investment Funds, Inc. incorporated herein by reference to Item 24(b)(8)(w) of Post-Effective Amendment No. 13 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about November 1, 2001 (File Nos. 333-28769, 811-5626). (x) Participation Agreement between Golden American Life Insurance Company and AIM Advisors, Inc. incorporated herein by reference to Item 24(b)(8)(x) of Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about December 14, 2001 (File Nos. 333-28769, 811-5626). (y) Form of Services Agreement among Golden American Life Insurance Company and ING affiliated Insurance Companies incorporated herein by reference to Item 24(b)(8)(y) of Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about December 14, 2001 (File Nos. 333-28769, 811-5626). (z) Form of Services Agreement between Golden American Life Insurance Company and ING North American Insurance Corporation, Inc. incorporated herein by reference to Item 24(b)(8)(z) Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about December 14, 2001 (File Nos. 333-28769, 811-5626). (aa)Form of Shared Services Center Agreement among ING North American Insurance Corporation, Inc. and ING affiliated Insurance Companies incorporated herein by reference to Item 24(b)(8)(aa) of Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about December 14, 2001 (File Nos. 333-28769, 811-5626). (9) Opinion and Consent of Counsel (10)(a)Consent of Ernst & Young LLP, Independent Auditors (b)Consent of Counsel, incorporated in Item 9 of this Part C, together with the Opinion of Counsel. (11) Not applicable (12) Not applicable (13) Not applicable (14) Not applicable (15) Powers of Attorney (16) Subsidiaries of ING Groep N.V. incorporated herein by reference to Item 24(b)(16) of Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about December 14, 2001 (File Nos. 333-28769, 811-5626). ITEM 25: DIRECTORS AND OFFICERS OF THE DEPOSITOR Principal Position(s) Name Business Address with Depositor ---- ---------------- -------------- Robert C. Salipante ReliaStar Financial Corp. Director and Chief 20 Washington Avenue South Executive Officer Minneapolis, MN 55402 Chris D. Schreier ReliaStar Financial Corp. President 20 Washington Avenue South Minneapolis, MN 55402 Thomas J. McInerney ING Aetna Financial Services Director 151 Farmington Avenue Hartford, CT 06156 Mark A. Tullis ING Insurance Operations Director 5780 Powers Ferry Road Atlanta, GA 30327-4390 Phillip R. Lowery ING Insurance Operations Director 5780 Powers Ferry Road Atlanta, GA 30327-4390 Wayne R. Huneke ING Insurance Operations Director and Chief 5780 Powers Ferry Road Financial Officer Atlanta, GA 30327-4390 Kimberly J. Smith Golden American Life Ins. Co. Executive Vice President, 1475 Dunwoody Drive General Counsel and West Chester, PA 19380 Assistant Secretary James R. McInnis Golden American Life Ins. Co. Executive Vice President 1475 Dunwoody Drive and Chief Marketing West Chester, PA 19380 Officer Stephen J. Preston Golden American Life Ins. Co. Executive Vice President 1475 Dunwoody Drive and Chief Actuary West Chester, PA 19380 Steven G. Mandel Golden American Life Ins. Co. Senior Vice President and 1475 Dunwoody Drive Chief Information Officer West Chester, PA 19380 David L. Jacobson Golden American Life Ins. Co. Senior Vice President and 1475 Dunwoody Drive Assistant Secretary West Chester, PA 19380 William L. Lowe Equitable of Iowa Companies Senior Vice President, 909 Locust Street Sales & Marketing Des Moines, IA 50309 David S. Pendergrass ING Insurance Operations Vice President and 5780 Powers Ferry Road Treasurer Atlanta, GA 30327-4390 Paula Cludray-Engelke ReliaStar Financial Corp. Secretary 20 Washington Avenue South Minneapolis, MN 55402 ITEM 26: PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The Depositor owns 100% of the stock of a New York company, First Golden American Life Insurance Company of New York ("First Golden"). The primary purpose for the formation of First Golden was to offer variable products in the state of New York. It is anticipated that First Golden will be merged into ReliaStar Life Insurance Company of New York, an affiliate of the Depositor on April 1, 2002, or shortly thereafter. The following persons control or are under common control with the Depositor: DIRECTED SERVICES, INC. ("DSI") - This corporation is a general business corporation organized under the laws of the State of New York, and is wholly owned by ING Groep, N.V. ("ING"). The primary purpose of DSI is to act as a broker-dealer in securities. It acts as the principal underwriter and distributor of variable insurance products including variable annuities as required by the SEC. The contracts are issued by the Depositor. DSI also has the power to carry on a general financial, securities, distribution, advisory or investment advisory business; to act as a general agent or broker for insurance companies and to render advisory, managerial, research and consulting services for maintaining and improving managerial efficiency and operation. DSI is also registered with the SEC as an investment adviser. The registrant is a segregated asset account of the Company and is therefore owned and controlled by the Company. All of the Company's outstanding stock is owned and controlled by ING. Various companies and other entities controlled by ING may therefore be considered to be under common control with the registrant or the Company. Such other companies and entities, together with the identity of their controlling persons (where applicable), are set forth on the following organizational chart. The subsidiaries of ING Groep N.V., as of December 3, 2001, are included in this Registration Statement as Exhibit 16. ITEM 27: NUMBER OF CONTRACT OWNERS As of January 31, 2002, there are 78,217 qualified contract owners and 93,305 non-qualified contract owners in Golden American's Separate Account B. ITEM 28: INDEMNIFICATION Golden American shall indemnify (including therein the prepayment of expenses) any person who is or was a director, officer or employee, or who is or was serving at the request of Golden American as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise for expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him with respect to any threatened, pending or completed action, suit or proceedings against him by reason of the fact that he is or was such a director, officer or employee to the extent and in the manner permitted by law. Golden American may also, to the extent permitted by law, indemnify any other person who is or was serving Golden American in any capacity. The Board of Directors shall have the power and authority to determine who may be indemnified under this paragraph and to what extent (not to exceed the extent provided in the above paragraph) any such person may be indemnified. Golden American or its parents may purchase and maintain insurance on behalf of any such person or persons to be indemnified under the provision in the above paragraphs, against any such liability to the extent permitted by law. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Registrant, as provided above or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification by the Depositor is against public policy, as expressed in the Securities Act of 1933, and therefore may be unenforceable. In the event that a claim of such indemnification (except insofar as it provides for the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted against the Depositor by such director, officer or controlling person and the SEC is still of the same opinion, the Depositor or Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by the Depositor is against public policy as expressed by the Securities Act of 1933 and will be governed by the final adjudication of such issue. ITEM 29: PRINCIPAL UNDERWRITER (a) At present, Directed Services, Inc. ("DSI"), the Registrant's Distributor, also serves as principal underwriter for all contracts issued by Golden American. DSI is the principal underwriter for Separate Account A, Separate Account B, Equitable Life Insurance Company of Iowa Separate Account A, First Golden American Life Insurance Company of New York Separate Account NY-B, Alger Separate Account A of Golden American and The GCG Trust. (b) The following information is furnished with respect to the principal officers and directors of Directed Services, Inc., the Registrant's Distributor. The principal business address for each officer and director following is 1475 Dunwoody Drive, West Chester, PA 19380-1478, unless otherwise noted. Name and Principal Positions and Offices Business Address with Underwriter ------------------- --------------------- James R. McInnis President Barnett Chernow Director and Executive Vice President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Kimberly J. Smith Executive Vice President, Secretary and General Counsel Stephen J. Preston Executive Vice President David S. Pendergrass Vice President and Treasurer ING Insurance Operations 5780 Powers Ferry Road Atlanta, GA 30327-4390 David L. Jacobson Senior Vice President and Assistant Secretary (c) 2000 Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commissions Redemption Commissions Compensation ----------- ------------ ---------- ----------- ------------ DSI $208,883,000 $0 $0 $0 9/30/01 Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commissions Redemption Commissions Compensation ----------- ------------ ---------- ----------- ------------ DSI $159,949,000 $0 $0 $0 ITEM 30: LOCATION OF ACCOUNTS AND RECORDS Accounts and records are maintained by Golden American Life Insurance Company at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478, ING Americas at 5780 Powers Ferry Road, N.W., Atlanta, GA 30327-4390 and by Equitable Life Insurance Company of Iowa, an affiliate, at 909 Locust Street, Des Moines, Iowa 50309. ITEM 31: MANAGEMENT SERVICES None. ITEM 32: UNDERTAKINGS (a) Registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as it is necessary to ensure that the audited financial statements in the registration statement are never more that 16 months old 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 post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and, (c) 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. REPRESENTATIONS 1. The account meets definition of a "separate account" under federal securities laws. 2. Golden American Life Insurance Company hereby represents that the fees and charges deducted under the Contract described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses 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, Separate Account B, has duly caused this Registration Statement to be signed on its behalf in the City of West Chester, Commonwealth of Pennsylvania, on the 12th day of February, 2002. SEPARATE ACCOUNT B (Registrant) By: GOLDEN AMERICAN LIFE INSURANCE COMPANY (Depositor) By: -------------------- Robert C. Salipante* Chief Executive Officer Attest: /s/ Marilyn Talman ------------------------ Marilyn Talman Vice President, Associate General Counsel and Assistant Secretary of Depositor As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on February 12, 2002. Signature Title --------- ----- Director and Chief Executive -------------------- Officer of Depositor Robert C. Salipante* Director, Senior Vice President -------------------- and Chief Financial Officer Wayne R. Huneke* DIRECTORS OF DEPOSITOR ---------------------- Robert C. Salipante* ---------------------- Thomas J. McInerney* ---------------------- Wayne R. Huneke* ---------------------- Mark A. Tullis* ---------------------- Phillip R. Lowery* Attest: /s/ Marilyn Talman ------------------------ Marilyn Talman Vice President, Associate General Counsel and Assistant Secretary of Depositor *Executed by Marilyn Talman on behalf of those indicated pursuant to Power of Attorney. EXHIBIT INDEX ITEM EXHIBIT PAGE # ---- ------- ------ 9 Opinion and Consent of Counsel EX-99.B9 10(a) Consent of Ernst & Young LLP, Independent Auditors EX-99.B10A 15 Powers of Attorney EX-99.B15