485BPOS 1 n4access.txt REGISTRATION STATEMENT As filed with the Securities and Exchange Commission on February 13, 2004 Registration Nos. 333-28769; 811-05626 ------------------------------------------------------------------------------- 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. 25 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. [X] (Check appropriate box or boxes) SEPARATE ACCOUNT B (Exact Name of Registrant) ING USA ANNUITY AND 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 Linda E. Senker, Esq. Kimberly J. Smith, Esq. ING ING 1475 Dunwoody Drive 1475 Dunwoody Drive West Chester, PA 19380-1478 West Chester, PA 19380-1478 (610) 425-4139 (610) 425-3427 (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 ------------------------------------------------------------------------------- Approximate date of Proposed Public Offering: As soon as practicable after the effectiveness of this Registration Statement. Title of Securities Being Registered: Interests in a separate account under flexible premium deferred variable annuity contracts. -------------------------------------------------------------------------------- PART A ING USA ANNUITY AND LIFE INSURANCE COMPANY Separate Account B of ING USA Annuity and Life Insurance Company Deferred Combination Variable and Fixed Annuity Prospectus ING GOLDENSELECT ACCESS(R) -------------------------------------------------------------------------------- FEBRUARY 13, 2004 This prospectus describes ING GoldenSelect Access, a group and individual deferred variable annuity contract (the "Contract") offered by ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we," "us" or "our") (formerly, Golden American Life Insurance Company). 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 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. For Contracts sold in some states, not all Fixed Interest Allocations or subaccounts are available. The investment portfolios available under your Contract and the portfolio managers are listed on the next page. 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 and in certain situations. REPLACING AN EXISTING ANNUITY WITH THE CONTRACT MAY NOT BE BENEFICIAL TO YOU. YOUR EXISTING ANNUITY MAY BE SUBJECT TO FEES OR PENALTIES ON SURRENDER, AND THE CONTRACT MAY HAVE NEW CHARGES. 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 13, 2004, 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 9271, Des Moines, Iowa 50306-9271 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 A TRUST OR FUND 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. The investment portfolios and the managers are listed on the next page. -------------------------------------------------------------------------------- Access - 131180 The investment portfolios available under your Contract and the portfolio managers are:
A I M ADVISORS, INC. J.P. MORGAN INVESTMENT MANAGEMENT, INC. AIM V.I. Dent Demographic Trends Fund (Class II) ING JPMorgan Small Cap Equity Portfolio (Class S) (1) A I M CAPITAL MANAGEMENT, INC. JANUS CAPITAL MANAGEMENT LLC ING AIM Mid Cap Growth Portfolio (Class S) (1) ING Janus Growth and Income Portfolio (Class S) (1) ALLIANCE CAPITAL MANAGEMENT L.P. ING Janus Special Equity Portfolio (Class S) (1) ING Alliance Mid Cap Growth Portfolio (Class S) (1) JENNISON ASSOCIATES LLC BARING INTERNATIONAL INVESTMENT LIMITED ING Jennison Equity Opportunities Portfolio (Class S) (1) ING Hard Assets Portfolio (Class S) (1) Jennison Portfolio (Class II) (5) CAPITAL GUARDIAN TRUST COMPANY SP Jennison International Growth Portfolio (Class II) (5) ING Capital Guardian Large Cap Value Portfolio (Class S)(1) JULIUS BAER INVESTMENT MANAGEMENT, INC. ING Capital Guardian Managed Global Portfolio (Class S)(1) ING Julius Baer Foreign Portfolio(1) ING Capital Guardian Small Cap Portfolio (Class S) (1) MARSICO CAPITAL MANAGEMENT, LLC CAPITAL RESEARCH AND MANAGEMENT COMPANY ING Marsico Growth Portfolio (Class S) (1) ING American Funds Growth Portfolio(2) MASSACHUSETTS FINANCIAL SERVICES COMPANY ING American Funds Growth-Income Portfolio(2) ING MFS Mid Cap Growth Portfolio (Class S) (1) ING American Funds International Portfolio(2) ING MFS Research Portfolio (Class S) (1) COLUMBIA MANAGEMENT ADVISERS, INC. ING MFS Total Return Portfolio (Class S) (1) Colonial Small Cap Value Fund (Class B) MERCURY ADVISORS EAGLE ASSET MANAGEMENT, INC. ING Mercury Focus Value Portfolio (Class S) (1) ING Eagle Asset Value Equity Portfolio (Class S) (1) ING Mercury Fundamental Growth Portfolio (Class S) (1) FIDELITY(R)MANAGEMENT & Research Co. PACIFIC INVESTMENT MANAGEMENT COMPANY LLC Fidelity(R)VIP Equity-Income Portfolio (Class S2) ING PIMCO Core Bond Portfolio (Class S) (1) Fidelity(R)VIP Growth Portfolio (Class S2) PIMCO High Yield Portfolio ING FMRSM Diversified Mid Cap Portfolio (Class S) (1) PIONEER INVESTMENT MANAGEMENT, INC. GOLDMAN SACHS ASSET MANAGEMENT, L.P. Pioneer Fund VCT Portfolio (Class II) ING Goldman Sachs Internet TollkeeperSM Portfolio Pioneer Mid-Cap Value VCT Portfolio (Class II) (Class S) (1)(3) PROFUND ADVISORS LLC IIM B.V. ProFund VP Bull ING Developing World Portfolio (Class S) (1) ProFund VP Europe 30 ING INVESTMENT MANAGEMENT, LLC ProFund VP Rising Rates Opportunity ING Liquid Assets Portfolio (Class S) (1) ProFund VP Small-Cap ING INVESTMENTS, LLC SALOMON BROTHERS ASSET MANAGEMENT, INC. ING International Portfolio (Class S) (1) ING Salomon Brothers All Cap Portfolio (Class S) (1) ING VP Bond Portfolio (Class S) ING Salomon Brothers Investors Portfolio (Class S) (1) ING VP Growth Opportunities Portfolio (Class S) ING Salomon Brothers Aggressive Growth Portfolio ING VP Index Plus LargeCap Portfolio (Class S) (Class S)(2) ING VP MagnaCap Portfolio (Class S) T. ROWE PRICE ASSOCIATES, INC. ING VP SmallCap Opportunities Portfolio (Class S) ING T. Rowe Price Capital Appreciation Portfolio ING VP Worldwide Growth Portfolio (Class S) (Class S) (1) INVESCO FUNDS GROUP, INC. ING T. Rowe Price Equity Income Portfolio (Class S) (1) INVESCO VIF-- Financial Services Fund UBS GLOBAL ASSET MANAGEMENT INVESCO VIF-- Health Sciences Fund ING UBS US Balanced Portfolio (Class S) (1) INVESCO VIF-- Leisure Fund VAN KAMPEN INVESCO VIF-- Utilities Fund ING Van Kampen Equity Growth Portfolio (Class S) (1) J.P. MORGAN FLEMING ASSET MANAGEMENT (LONDON) ING Van Kampen Global Franchise Portfolio (Class S) (1) LLC. ING Van Kampen Growth and Income Portfolio (Class S)(1) ING JPMorgan Fleming International Portfolio (Class S)(4) ING Van Kampen Real Estate Portfolio (Class S) (1)
(1) The investment adviser for this portfolio is Directed Services, Inc. The portfolio manager listed is the sub-adviser. Directed Services, Inc. is an affiliated Company of ING Groep, N.V. (2) The investment adviser for this portfolio is ING Investments, LLC. The portfolio manager listed is the sub-advisor. (3) Internet TollkeeperSM Series is a service mark of Goldman, Sachs & Co. (4) The investment adviser for this portfolio is ING Life Insurance and Annuity Company. The portfolio manager listed is the sub-adviser. (5) The investment adviser for this portfolio is Prudential Investments LLC. The portfolio manager listed is the sub-adviser. The above mutual fund investment portfolios are purchased and held by corresponding divisions of our Separate Account B. We refer to the divisions as "subaccounts" and the money you place in the Fixed Account's guaranteed interest periods as "Fixed Interest Allocations" in this prospectus. Access - 131180
------------------------------------------------------------------------------------------------------------------------------------ TABLE OF CONTENTS ------------------------------------------------------------------------------------------------------------------------------------ Page Page Index of Special Terms.............................. ii Death Benefit During the Accumulation Phase....... 35 Fees and Expenses................................... 1 Standard Death Benefit........................ 35 Condensed Financial Information..................... 4 Enhanced Death Benefit Options................ 36 Accumulation Unit................................. 4 Earnings Multiplier Benefit Rider............. 38 The Net Investment Factor..................... 4 Death Benefit During the Income Phase............. 38 Performance Information........................... 4 Continuation After Death-- Spouse................. 39 Financial Statements.............................. 5 Continuation After Death-- Not a Spouse........... 39 ING USA Annuity and Life Insurance Company.......... 6 Required Distributions Upon Contract ING USA Separate Account B.......................... 6 Owner's Death................................. 39 The Trusts and Funds................................ 7 The Annuity Options................................. 40 Restricted Funds.................................... 8 Other Contract Provisions........................... 43 Covered Funds, Special Funds and Excluded Other Information................................... 45 Funds ........................................... 9 Federal Tax Considerations.......................... 46 Charges and Fees.................................... 9 Statement of Additional Information Charge Deduction Subaccount....................... 9 Table of Contents................................. 54 Charges Deducted from the Contract Value.......... 9 Appendix A No Surrender Charge........................... 9 Condensed Financial Information................... A1 Premium Taxes................................. 9 Appendix B Administrative Charge......................... 10 The Investment Portfolios......................... B1 Transfer Charge............................... 10 Appendix C Charges Deducted from the Subaccounts............. 10 Fixed Account I................................... C1 Mortality and Expense Risk Charge............. 10 Appendix D Asset-Based Administrative Charge............. 10 Fixed Interest Division........................... D1 Earnings Multiplier Benefit Charge............ 10 Appendix E Optional Rider Charges........................ 11 Withdrawal Adjustment for 7% Solution Trust and Fund Expenses........................... 11 Death Benefit Element Examples................ E1 Appendix F The Annuity Contract................................ 12 Special Funds and Excluded Funds Examples......... F1 Contract Date and Contract Year .................. 12 Appendix G Contract Owner.................................... 12 MGWB Excess Withdrawal Amount Examples......... G1 Annuity Start Date................................ 14 Appendix H Annuitant......................................... 14 Death Benefits for Pre-2000 and Yr-2000 Beneficiary....................................... 14 Contract Owners............................... H1 Purchase and Availability of the Contract......... 15 Appendix I Crediting of Premium Payments..................... 16 Death Benefits for Yr-2001 and May-2001 Administrative Procedures......................... 17 Contract Owners............................... I1 Contract Value.................................... 17 Appendix J Cash Surrender Value.............................. 18 Death Benefits for May-2002 and Yr-2003 Addition, Deletion or Substitution of Contract Owners............................... J1 Subaccounts and Other Changes................. 18 Appendix K The Fixed Account................................. 19 Optional Rider Benefits for Pre-2000 and Optional Riders................................... 19 Yr-2000 Contract Owners....................... K1 Rider Date.................................... 19 Appendix L No Cancellation............................... 19 Optional Rider Benefits for Yr-2001 and Termination................................... 19 May-2001 Contract Owners...................... L1 Minimum Guaranteed Income Appendix M Benefit Rider.............................. 22 Optional Rider Benefit Charges and Minimum Guaranteed Withdrawal Optional Rider Benefits for May-2002 Benefit Rider.............................. 26 Contract Owners............................... M1 Other Contracts................................... 28 Appendix N Withdrawals......................................... 29 Optional Rider Benefit Charges and Transfers Among Your Investments.................... 32 Optional Rider Benefits for May-2002 Death Benefit Choices............................... 35 and Yr-2003 Contract Owners................... N1
Access - 131180 -------------------------------------------------------------------------------- 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 4 Annuitant 14 Annuity Start Date 14 Cash Surrender Value 18 Claim Date 35 Contract Date 12 Contract Owner 12 Contract Value 17 Contract Year 12 Covered Fund 9 Earnings Multiplier Benefit 38 Excluded Fund 10 Max 7 Enhanced Death Benefit 38 Net Investment Factor 4 Net Rate of Return 4 Quarterly Ratchet Enhanced Death Benefit 37 Restricted Fund 8 Rider Date 19 7% Solution Death Benefit Element 36 Special Fund 9 Standard Death Benefit 35
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
-------------------------------------------------------------------------------- Access - 131180 -------------------------------------------------------------------------------- FEES AND EXPENSES -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or transfer contract value between investment options. State premium taxes may also be deducted. CONTRACT OWNER TRANSACTION EXPENSES 1 Surrender Charge................. None Transfer Charge 2........ $25 per transfer, if you make more than 12 transfers in a contract year 1 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. 2 We currently do not impose this charge, but may do so in the future. The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including Trust or Fund fees and expenses. ANNUAL CONTRACT ADMINISTRATIVE CHARGE 3.........$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.) 3 We deduct this charge on each contract anniversary and on surrender.
SEPARATE ACCOUNT ANNUAL CHARGES 4 -------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH ------------------------ BENEFIT QUARTERLY RATCHET MAX 7 -------------------------------------------------------------------------------- Mortality & Expense Risk Charge 5 1.65% 1.90% 2.10% Asset-Based Administrative Charge 0.15% 0.15% 0.15% Total 1.80% 2.05% 2.25% --------------------------------------------------------------------------------
4 As a percentage of average daily assets in each subaccount. The Separate Account Annual Charges are deducted daily. 5 Please see the applicable appendix for the mortality and expense risk charge applicable to Pre-2000, Yr-2000 and Yr-2001 contract owners.
EARNINGS MULTIPLIER BENEFIT RIDER CHARGE 6 --------------------------------------------- ---------------------------------- As an Annual Charge As a Quarterly Charge --------------------------------------------- ---------------------------------- 0.30% of contract value 0.075% of contract value --------------------------------------------- ----------------------------------
6 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. Access - 131180 OPTIONAL RIDER CHARGES 7
Minimum Guaranteed Income Benefit rider: ----------- -------------------------------- ---------------------------------- MGIB Rate As an Annual Charge As a Quarterly Charge ----------- -------------------------------- ---------------------------------- 7% 0.75% of the MGIB Charge Base8 0.1875% of the MGIB Charge Base8 ----------- -------------------------------- ----------------------------------
Minimum Guaranteed Withdrawal Benefit rider: -------------------------------- ----------------------------------------------- As an Annual Charge As a Quarterly Charge -------------------------------- ----------------------------------------------- 0.35% of contract value 0.0875% of contract value -------------------------------- -----------------------------------------------
7 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. 8 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 the premiums, less a pro-rata deduction for any withdrawal made while the MGIB rider is in effect and accumulated at the MGIB Rate. The MGIB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers between Covered, Special and Excluded Funds may reduce the applicable MGIB Charge Base by more than the amount withdrawn or transferred. TRUST OR FUND EXPENSES The next item shows the minimum and maximum total operating expenses charged by the Trust or Fund that you may pay periodically during the time that you own the Contract. More detail concerning each Trust or Fund's fees and expenses is contained in the prospectus for each Trust or Fund.
---------------------------------------------------------------------- ------------------ ----------------- TOTAL ANNUAL TRUST OR FUND OPERATING EXPENSES MINIMUM MAXIMUM ---------------------------------------------------------------------- ------------------ ----------------- (expenses that are deducted from Trust or Fund assets, including management fees, distribution and/or service (12b-1) fees9, and other 0.53% 3.96% expenses): ---------------------------------------------------------------------- ------------------ -----------------
9 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in the Fund or Trust prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. The following table shows the annual operating expenses separately for each Trust or Fund. FUND EXPENSE TABLE1 The column labeled "Total Fund Annual Expenses Without Waivers or Reductions" shows the total annual operating expenses charged by a Trust or Fund, absent expense reimbursement or fee waiver arrangements. The column labeled "Net Fund Annual Expenses After Waivers or Reductions" shows such Access - 131180 total annual operating expenses after applicable expense reimbursement or fee waiver arrangements where such reimbursement or waiver is expected to continue through December 31, 2004. Expenses shown are actual expenses as of 12/31/02 unless otherwise noted.
Fund Name Investment Distribution Other Total Fund Total Net Fund Annual Annual and/or Expenses Expenses Service Without Waivers After Advisory (12b-1) Waivers or or Waivers or Fees Fee Expenses Reductions Reductions Reductions ------------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trends Fund (Series II) 0.85% 0.25% 0.58% 1.68% 0.00% 1.68% Colonial Small Cap Value Fund (Class B) 0.80% 0.25% 0.34% 1.39% 0.29% 1.10% Fidelity(R)VIP Equity-Income Portfolio (Service Class 2) 0.48% 0.25% 0.10% 0.83% 0.00% 0.83% Fidelity(R)VIP Growth Portfolio (Service Class 2) 0.58% 0.25% 0.10% 0.93% 0.00% 0.93% ING AIM Mid-Cap Growth Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Alliance Mid-Cap Growth Portfolio (Service Class) 0.78% 0.25% 0.02% 1.05% 0.00% 1.05% ING American Funds Growth Portfolio 2 0.38% 0.75% 0.05% 1.18% 0.00% 1.18% ING American Funds Growth-Income Portfolio 2 0.34% 0.75% 0.04% 1.13% 0.00% 1.13% ING American Funds International Portfolio 2 0.57% 0.75% 0.09% 1.41% 0.00% 1.41% ING Capital Guardian Large Cap Value Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Capital Guardian Managed Global Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Capital Guardian Small Cap Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Developing World Portfolio (Service Class) 1.50% 0.25% 0.01% 1.76% 0.00% 1.76% ING Eagle Asset Value Equity Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING FMRSM Diversified Mid-Cap Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Goldman Sachs Internet TollkeeperSM Portfolio (Service Class) 1.60% 0.25% 0.01% 1.86% 0.00% 1.86% ING Hard Assets Portfolio (Service Class) 0.69% 0.25% 0.01% 0.94% 0.00% 0.94% ING International Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Janus Growth and Income Portfolio (Service Class) 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Janus Special Equity Portfolio (Service Class) 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Jennison Equity Opportunities Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING JPMorgan Fleming International Portfolio (Service Class) 0.80% 0.25% 0.20% 1.25% 0.00% 1.25% ING JPMorgan Small Cap Equity Portfolio (Service Class) 0.90% 0.25% 0.01% 1.16% 0.00% 1.16% ING Julius Baer Foreign Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Liquid Assets Portfolio (Service Class) 0.27% 0.25% 0.01% 0.53% 0.00% 0.53% ING Marsico Growth Portfolio (Service Class) 0.78% 0.25% 0.01% 1.04% 0.00% 1.04% ING Mercury Focus Value Portfolio (Service Class) 0.80% 0.25% 0.01% 1.06% 0.00% 1.06% ING Mercury Fundamental Growth Portfolio (Service Class) 0.80% 0.25% 0.01% 1.06% 0.00% 1.06% ING MFS Mid-Cap Growth Portfolio (Service Class) 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING MFS Research Portfolio (Service Class) 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING MFS Total Return Portfolio (Service Class) 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING PIMCO Core Bond Portfolio (Service Class) 0.66% 0.25% 0.02% 0.93% 0.00% 0.93% ING Salomon Brothers Aggressive Growth Portfolio (Service Class) 0.69% 0.25% 0.13% 1.07% 0.00% 1.07% ING Salomon Brothers All Cap Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Salomon Brothers Investors Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING T. Rowe Price Capital Appreciation Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING T. Rowe Price Equity Income Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING UBS U.S. Balanced Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Van Kampen Equity Growth Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Van Kampen Global Franchise Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Van Kampen Growth and Income Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% Access - 131180 ING Van Kampen Real Estate Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING VP Bond Portfolio (Class S) 0.40% 0.25% 0.09% 0.74% 0.00% 0.74% ING VP Growth Opportunities Portfolio (Service Class) 0.75% 0.25% 0.58% 1.58% 0.48% 1.10% ING VP Index Plus LargeCap Portfolio (Class S) 0.35% 0.25% 0.11% 0.71% 0.00% 0.71% ING VP MagnaCap Portfolio (Service Class) 0.75% 0.25% 0.45% 1.45% 0.35% 1.10% ING VP SmallCap Opportunities Portfolio (Service Class) 0.75% 0.25% 0.49% 1.49% 0.39% 1.10% ING VP Worldwide Growth Portfolio 1.00% 0.25% 0.82% 2.07% 0.84% 1.23% INVESCO VIF-- Financial Services Fund 0.75% 0.00% 0.34% 1.09% 0.00% 1.09% INVESCO VIF-- Health Sciences Fund 0.75% 0.00% 0.32% 1.07% 0.00% 1.07% INVESCO VIF-- Leisure Fund 0.75% 0.00% 3.21% 3.96% 2.67% 1.29% INVESCO VIF-- Utilities Fund 0.60% 0.00% 0.58% 1.18% 0.00% 1.18% Jennison Portfolio (Class II) 0.60% 0.25% 0.16% 1.01% 0.00% 1.01% PIMCO High Yield Portfolio (Admin Class) 0.25% 0.15% 0.36% 0.76% 0.00% 0.76% PIMCO StocksPlus Growth and Income Portfolio (Admin Class) 0.40% 0.15% 0.11% 0.66% 0.00% 0.66% Pioneer Fund VCT Portfolio (Class II) 0.65% 0.25% 0.16% 1.06% 0.00% 1.06% Pioneer Mid Cap Value VCT Portfolio (Class II) 0.65% 0.25% 0.17% 1.07% 0.00% 1.07% ProFund VP Bull 0.75% 0.25% 0.91% 1.91% 0.00% 1.91% ProFund VP Europe 30 0.75% 0.25% 1.03% 2.03% 0.00% 2.03% ProFund Rising Rates Opportunity 0.75% 0.25% 1.13% 2.13% 0.00% 2.13% ProFund VP Small-Cap 0.75% 0.25% 0.97% 1.97% 0.00% 1.97% SP Jennison International Growth Portfolio (Class II) 0.85% 0.25% 0.70% 1.80% 0.00% 1.80%
Footnotes to the "Fund Expense Table" 1 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in this Fund Expense Table and the fund prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. See "Fees -- Fund Expenses" for additional information. 2 Because these portfolios are new, "Other Expenses", shown above, are estimated for 2003. This table reflects the aggregate annual operating expenses of each portfolio and its corresponding master fund. Premium taxes (which currently range from 0% to 3.5% of premium payments) may apply, but are not reflected in the above table or in the example below. EXAMPLE: This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and Trust or Fund fees and expenses. The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum fees and expenses of any of the Trusts or Funds. Specifically, the Example assumes election of the Max 7 Enhanced Death Benefit and election of the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. The Example reflects 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 0.03% of assets. The Example also assumes you elected an optional benefit rider with the highest cost, an assumed charge of 1.14% annually, where the rider base is equal to the initial premium Access - 131180 and increases by 7% annually, and the rider charge is assessed each quarter on a base equal to the hypothetical $10,000 premium increasing at 7% per year. The assumed annual rider charge of 1.14% 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, 1.14% represents an annual charge over the 10-year period which is equivalent to a charge of 0.1875% of rider base per quarter over the same period. The Example reflects the maximum charges for February-2004 contract owners. If you elect different options or are not a February-2004 contract owner, your expenses will be lower. The example also takes into account contractual limitations on Trust or Fund expenses that require reimbursement or waiver of expenses, but only for the period of the contractual limitation. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
------------------------------------------------------------------------------- If you surrender or annuitize your contract at the end of the applicable time period: ------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years $583 $2,065 $3,469 $6,663 --------------------- -------------------- -------------------- ---------------
Compensation is paid for the sale of the Contracts. For information about this compensation, see "Selling the Contract." -------------------------------------------------------------------------------- CONDENSED FINANCIAL 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. Tables containing (i) the accumulation unitvalue history of each subaccount of ING USA 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. The numbers show the year-end unit values of each subaccount from the time purchase payments were first received in the subaccounts under the Contract. 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. 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. Access - 131180 Calculations for the subaccounts are made on a per share basis. The Net Rate of Return equals the Net Investment Factor minus one. 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 Assets 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. We will base total return figures 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, and 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 Assets 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 Assets 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 the selection of the Max 7 Enhanced Death Benefit and the MGIB optional benefit rider. YOU SHOULD BE AWARE THAT THERE IS NO GUARANTEE THAT THE LIQUID ASSETS SUBACCOUNT WILL HAVE A POSITIVE OR LEVEL RETURN. 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 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 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. FINANCIAL STATEMENTS The following statements for Golden American Separate Account B (now ING USA Annuity and Life Insurance Company Separate Account B) are included in the Statement of Additional Information: the statement of assets and liabilities as of December 31, 2002, along with the related statement of operations for the year then ended and the statements of changs in net assets for each of the two years then ended; also, the statement of assets and liabilities as of September 30, 2003, along with the statements of operations and changes in net assets for the nine months then ended. The following consolidated financial statements for Golden American (now ING USA Annuity and Life Insurance Company) are included in the Statement of Additional Information: the consolidated balance sheets for the years ended December 31, 2002 and 2001, along with the consolidated income statements, statements of changes in shareholder's equity, and statements of cash flows for the three years ended December 31, 2002; also, the condensed consolidated balance sheet as of September 30, 2003, along with the condensed consolidated statement of income for the three and nine months ended September 30, 2003 and 2002, and the condensed consolidated statements of changes in shareholder's equity and statements of cash flows for the nine months ended September 30, 2003 and 2002. The financial statements of Golden American presented have not been restated for the effects of Golden's merger in 2004 with United Life and Annuity Insurance Company, USG Annuity and Life Insurance Company and Equitable of Iowa Life Insurance Company. Access - 131180 -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY -------------------------------------------------------------------------------- ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in the Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. Lion Connecticut is the holding company for Directed Services, Inc., the investment manager of the ING Investors Trust and the distributor of the Contracts, and other interests. ING also owns ING Investments, LLC and ING Investment Management, LLC, portfolio managers of the ING Investors Trust, and the investment managers of the ING Variable Insurance Trust and ING Variable Products Trust and ING Variable Product Portfolios, respectively. ING also owns Baring International Investment Limited, another portfolio manager of the ING Investors Trust. Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. -------------------------------------------------------------------------------- ING USA SEPARATE ACCOUNT B -------------------------------------------------------------------------------- ING USA Separate Account B (formerly 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 a Trust or Fund. 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." Access - 131180 -------------------------------------------------------------------------------- THE TRUSTS AND FUNDS -------------------------------------------------------------------------------- You will find information about the Trusts and Funds currently available under your Contract in Appendix B -- The Investment Portfolios. A prospectus containing more complete information on each Trust or Fund may be obtained by calling our Customer Service Center at 800-366-0066. You should read the prospectus carefully before investing. If, due to differences in tax treatment or other considerations, the interests of contract owners of various contracts participating in the Trusts or Funds conflict, we, the Boards of Trustees or Directors of the Trusts or Funds, and any other insurance companies participating in the Trusts or Funds will monitor events to identify and resolve any material conflicts that may arise. -------------------------------------------------------------------------------- RESTRICTED FUNDS -------------------------------------------------------------------------------- We may, with 30 days notice to you, designate any investment option as a Restricted Fund and limit the amount you may allocate or transfer to a Restricted Fund. We may also change the limitations on existing contracts with respect to new premiums added to investment portfolios and with respect to new transfers to investment portfolios. We may establish any limitations, 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. If we designate an investment option as a Restricted Fund or set applicable limitations, such change will apply only to transactions made after the designation. We limit your investment in the Restricted Funds on an aggregate basis for all Restricted Funds and for each individual Restricted Fund. Currently, we limit an investment in Restricted Funds to the following limitations: no more than $999,999,999, and no more than 30 percent of contract value. 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 Funds has increased beyond the applicable limit due to market growth, we will not require the reallocation or withdrawal of contract value from the Restricted Funds. However, if the contract value in the Restricted Funds exceeds the aggregate limit, if you take a withdrawal, it must come from either the Restricted Funds or 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 if 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 multiple reallocations lower the percentage of total contract value in Restricted Funds, we will permit the reallocation 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. Access - 131180 -------------------------------------------------------------------------------- COVERED FUNDS, SPECIAL FUNDS AND EXCLUDED FUNDS -------------------------------------------------------------------------------- For purposes of determining death benefits and benefits under the optional benefit riders (but not the earnings multiplier benefit rider), we assign the investment options to one of three categories of funds. The categories are: 1) Covered Funds; 2) Special Funds; and 3) Excluded Funds. Allocations to Covered Funds participate fully in all guaranteed benefits. Allocations to Special Funds could affect the death benefit and/or optional benefit rider guarantee that may otherwise be provided. Allocations to Excluded Funds do not participate in any guaranteed benefits, due to their potential for volatility. No investment options are currently designated as Excluded Funds. Designation of investment options under these categories may vary by benefit. For example, we may designate an investment option a Special Fund for purposes of calculating a benefit under an optional benefit rider, but not a death benefit, or for calculating one death benefit and not another. We may, with 30 days notice to you, designate any investment option as a Special or Excluded Fund with respect to new premiums added to such investment option and also with respect to new transfers to such investment option. Please see Appendix F for examples. -------------------------------------------------------------------------------- CHARGES AND FEES -------------------------------------------------------------------------------- We deduct the Contract charges described below to compensate us for our costs and expenses, services provided and risks assumed under the Contracts. We incur certain costs and expenses for distributing and administering 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. If there are any profits from fees and charges deducted under the Contract, including the mortality and expense risk charge and rider and benefit charges, we may use such profits to finance the distribution of Contracts. 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 Assets 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, we will deduct the charges 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 charge for state and local premium taxes depending on your state of residence. These taxes 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 initial and additional Access - 131180 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. If you surrender your Contract prior to a Contract anniversary, we deduct an administrative charge when we determine the cash surrender value payable to you. The charge is $40 per Contract. We waive this charge 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 ING USA. 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. The charge will not apply to any transfers due to the election of dollar cost averaging or automatic rebalancing. CHARGES DEDUCTED FROM THE SUBACCOUNTS MORTALITY AND EXPENSE RISK CHARGE. 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. We deduct the charge each business day based on the assets you have in each subaccount. If there are any profits from the mortality and expense risk charge, we may use such profits to finance the distribution of contracts. <
---------------------------- ----------------------------- ---------------------------- Quarterly Ratchet Max 7 Standard Enhanced Enhanced Death Benefit Death Benefit Death Benefit --------------- ------------- -------------- -------------- ------------- -------------- Annual Annual Annual Charge Charge Charge Expressed Expressed as Expressed as Annual Charge as Daily Annual Charge Daily Rate Annual Daily Rate Rate Charge 1.65% 0.004558% 1.90% 0.005255% 2.10% 0.005815% ---------------- ------------- -------------- -------------- ------------- --------------
A description of the mortality and expense risk charges for contract owners other than Yr-2004 contract owners is included in the appendices. See "The Annuity Contract -- Contract Owner Categories." PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. 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. We deduct the charge from your assets in each subaccount on each business day at the rate of 0.000411% for each day since the previous business day. 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, Access - 131180 and so on. We deduct the rider charge on each quarterly contract anniversary in arrears, meaning we deduct the first charge 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 "Earnings Multiplier Benefit Rider." Optional Rider Charges. In addition to the earnings multiplier benefit rider, subject to state availability, you may purchase one of two 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 we deduct the first charge on the first quarterly anniversary following the 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 INCOME BENEFIT (MGIB). The charge for the MGIB rider is as follows:
------------- -------------------------------- ------------------------------- MGIB Rate As an Annual Charge As a Quarterly Charge ------------- -------------------------------- ------------------------------- 7% 0.75% of the MGIB Charge Base 0.1875% of the MGIB Charge Base ------------- -------------------------------- -------------------------------
MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The annual charge for the MGWB rider is 0.35% (0.0875% quarterly) of the contract value. The charge is deducted from the contract value on each quarterly contract anniversary date, in arrears. 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 immediately prior to the surrender or annuitization. Please see the appendix that is applicable to you for the optional rider charges under your Contract. TRUST AND FUND EXPENSES Each portfolio deducts portfolio management fees and charges from the amounts you have invested in the portfolios. In addition, certain 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 certain 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. See "Fees and Expenses -- Trust or Fund Expenses." -------------------------------------------------------------------------------- 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 Trusts and Funds through Separate Account B. It also provides a means for you to invest in a Fixed Interest Allocation through the Fixed Account. See Appendix C and the Fixed Account I prospectus for more information on the 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. Access - 131180 CONTRACT OWNER You are the contract owner. 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 annuity start date, 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 annuity start date, 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, we will treat this as a change of contract owner for determining the death benefit (likely a taxable event). 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. CONTRACT OWNER CATEGORIES. There are seven categories of contract owners covered by this prospectus. For ease of reference, they are called Pre-2000, Yr-2000, Yr-2001, May-2001, May-2002, Yr-2003 and Yr-2004 contract owners. If you are a contract owner, the category of your Contract is indicated on your quarterly statements. If you are unsure which category applies to you, please call our Customer Service Center. The telephone number is (800) 366-0066. Access - 131180 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 available 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, including the Max 7 Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit to age 80 (as available in the state of issue at the time of purchase). ---------------- ------------------------------------------------------------ YR-2001: Contracts purchased on or after January 2, 2001 which offer four death benefit options, including the Annual Ratchet Enhanced Death Benefit to age 90, and under which the determination of benefits when there are allocations to Special Funds is based on the better of the original Yr-2001 benefit calculation and the Special Funds "floor"(as available in the state of issue at the time of purchase). ---------------- ------------------------------------------------------------ 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, offer an earnings multiplier benefit option, and under which the determination of benefits when there are allocations to Special Funds is based on the better of the original May-2001 benefit calculation and the Special Funds "floor" (as available in the state of issue at the time of purchase). ---------------- ------------------------------------------------------------ MAY-2002: Contracts purchased on or after May 1, 2002, which offer four death benefit options, including the Annual Ratchet Enhanced Death Benefit to age 90, offer an earnings multiplier benefit option, and under which the determination of benefits when there are allocations to Special Funds is the same as the Special Funds "floor," but all withdrawals are pro-rata (as available in the state of issue at the time of purchase). ---------------- ------------------------------------------------------------ YR-2003: Contracts purchased on or after February 4, 2003 which have the same death benefits and living benefits as May-2002 Contracts, but have a different calculation of the Minimum Guaranteed Income Benefit and higher charges for all three living benefit optional riders (as available in the state of issue at the time of purchase). ---------------- ------------------------------------------------------------ YR-2004: Contracts purchased on or after February 13, 2004 which offer the Quarterly Ratchet Death Benefit, do not offer the 7% Solution Death Benefit, do not offer the Minimum Guaranteed Accumulation Benefit and offer a Minimum Guaranteed Withdrawal Benefit with reset and step-up benefit options (as available in the state of issue at the time of purchase). --------------------------------------------------------------------------------
A description of benefits and charges for Pre-2000, Yr-2000, Yr-2001, May-2001, May-2002 and Yr-2003 contract owners is included in the appendices to this prospectus, to the extent they differ from those described in this prospectus for Yr-2004 contract owners. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. 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 Access - 131180 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, the Enhanced Death Benefit from the date of change will end. If the older joint owner is attained age 85 or under, the Standard Death Benefit will apply. If the older joint owner is attained age 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 you add a joint owner. 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. 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. ANNUITANT The annuitant is the person designated by you to be the measuring life in determining annuity payments. You are the annuitant unless you name another annuitant in the application. The annuitant's age determines when the income phase must begin and the amount of the annuity payments to be paid. The contract owner will receive the annuity benefits of the Contract if the annuitant is living on the annuity start date. You may not change the annuitant after the Contract is in effect. If the contract owner is an individual, and the annuitant dies before the annuity start date and you have named a contingent annuitant, the contingent annuitant becomes the annuitant. If the annuitant dies before the annuity start date and there is no contingent annuitant, 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 the annuitant was the sole contract owner and there is no beneficiary designation, the annuitant's estate will be the beneficiary. If the contract owner is not an individual, and the annuitant dies before the annuity start date, 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. 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 adviser 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. 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, we pay the death benefit proceeds to the contingent beneficiary, if any. If there is no surviving beneficiary, we pay the death benefit proceeds to the contract owner's estate. 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. Access - 131180 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 option 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, 1) if the new owner's attained age is 86 or over on the date of the ownership change, or 2) if the new owner is not an individual (other than a trust for the benefit of the owner or annuitant), 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 will be adjusted to reflect the attained age of the new owner as the issue age. We will use the Maximum Base and Benefit Base percentages in effect on the original rider date 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. A change of owner likely has tax consequences. See "Federal Tax Considerations" in this prospectus. You have the right to change beneficiaries during the annuitant's lifetime unless you have designated an irrevocable beneficiary. If you have designated an irrevocable beneficiary, you and the irrevocable beneficiary may have to act together to exercise some of the rights and options under the Contract. You may also restrict a beneficiary's right to elect an annuity option or receive a lump sum payment. If so, such rights or options will not be available to the beneficiary. All requests for changes must be in writing and submitted to our Customer Service Center. 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. PURCHASE AND AVAILABILITY OF THE CONTRACT We will issue a Contract only if both the annuitant and the contract owner are age 90 or younger. The initial premium payment must be $10,000 or more ($1,500 for qualified Contracts). You may make additional payments of $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. An 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. The Contract may not be available to all ages through all broker dealers. 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: (i) if you are looking for a short-term investment; (ii) if you cannot risk getting back less money than you put in; or (iii) if your assets are in a plan which provides for tax-deferral and you see no other reason to purchase this Contract. Access - 131180 IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other features and benefits including death benefits and the ability to receive a lifetime income. You should not purchase a qualified Contract unless you want these other features and benefits, taking into account their cost. See "Fees and Expenses" in this prospectus. IF YOU ARE CONSIDERING AN ENHANCED DEATH BENEFIT OPTION AND/OR THE EARNINGS MULTIPLIER BENEFIT RIDER AND YOUR CONTRACT WILL BE AN IRA, SEE "TAXATION OF QUALIFIED CONTRACTS -- INDIVIDUAL RETIREMENT ANNUITIES" AND "TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT" IN THIS PROSPECTUS. We and our affiliates offer other variable products that may offer some of the same investment portfolios. These products have different benefits and charges, and may or may not better match your needs. If you are interested in learning more about these other products, contact our Customer Service Center or your registered representative. 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. We will process subsequent premium payments 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 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 designated for a subaccount of Separate Account B, we will credit the payment 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 subaccounts of Separate Account B specified by you within 2 business days. We will ask about 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, we will credit the payment designated for a subaccount of Separate Account B 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 Access - 131180 refund the contract value plus any charges we deducted, and the Contract will be voided. Some states require that we return the premium paid. 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 Assets 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 future we may allocate the premiums to the specially designated subaccount during the free look period. We may also refuse to accept certain forms of premium payments or loan repayments, if applicable, (traveler's checks, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $5,000, for example). In addition, we may require information as to why a particular form of payment was used (third party checks, for example) and the source of the funds of such payment in order to determine whether or not we will accept it. Use of an unacceptable form of payment may result in us returning your premium payment and not issuing the contract. 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 (i) the contract value in the Fixed Interest Allocations, and (ii) the contract value in each subaccount in which you are invested. CONTRACT VALUE IN FIXED INTEREST ALLOCATIONS. The contract value in your Fixed Interest Allocation is the sum of premium payments allocated to the Fixed Interest Allocation under the Contract, plus contract value transferred to the Fixed Interest Allocation, plus credited interest, minus any transfers and withdrawals from the Fixed Interest Allocation (including any Market Value Adjustment applied to such withdrawal), contract fees (including, in some cases, fees for optional benefit riders) and premium taxes. 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 Assets subaccount). Access - 131180 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 Rate of Return 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 any related charges, 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 Appendix C and the Fixed Account I prospectus for a description of the calculation of the surrender value 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, adjust for any Market Value Adjustment, and then we deduct any charge for premium taxes, the annual contract administrative fee (unless waived), 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 is effective on the date we receive your written request and the Contract at our Customer Service Center. After we receive all paperwork required for us to process your surrender, we will determine and pay the cash surrender value at the price next determined. Once paid, all benefits under the Contract will terminate. For administrative purposes, we will transfer your money to a specially designated subaccount (currently the Liquid Assets 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. 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. 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 also withdraw or substitute investment portfolios, subject to the conditions in your Contract and compliance with regulatory requirements. 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 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 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 will provide you with written notice before we make these changes. Access - 131180 We 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 provide you with written notice before we make any of these changes. 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 Appendix C and the Fixed Account I prospectus for more information. OPTIONAL RIDERS Subject to state availability, you may elect one of the two optional benefit riders discussed below. You may add only one of these two riders to your Contract. Each rider has a separate charge. Once elected, the riders generally may not be cancelled. You may not remove the rider 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-2004 category. A description of the optional rider benefits for all other contract owners is included in the appendices to this prospectus, to the extent they differ from those described in the prospectus for Yr-2004 Contract owners. Please retain this prospectus and the appendix that is applicable to you so you will have it for future reference. THE OPTIONAL RIDERS MAY NOT BE AVAILABLE FOR ALL INVESTORS. YOU SHOULD ANALYZE EACH RIDER THOROUGHLY AND UNDERSTAND IT COMPLETELY BEFORE YOU SELECT ONE. 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. RIDER DATE. The rider date is the date an optional benefit rider becomes effective. The rider date is also the contract date if you purchase the rider when the Contract is issued. NO CANCELLATION. Once you purchase a rider, you may not cancel it unless you cancel the Contract during the Contract's free look period, surrender, annuitize or otherwise terminate the Contract. These events automatically cancel any rider. Once the Contract continues beyond the free look period, you may not cancel the rider. 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," which means 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 if you: o annuitize, surrender or otherwise terminate your Contract during the accumulation phase; or o die during the accumulation phase (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. The optional riders 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 each rider. Access - 131180 MINIMUM GUARANTEED INCOME BENEFIT RIDER (MGIB). 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 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 Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB. The following investment options are designated as Special Funds for purposes of calculating the MGIB: the ING Liquid Assets Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. For a discussion of the charges we deduct under the MGIB rider, see "Charges and Fees -- 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 Date is the greatest of: 1) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account I prospectus) on the MGIB Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; 2) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account I prospectus) on the MGIB Date applied to the then-current income factors in effect for the annuity option you selected; or 3) the MGIB annuity income based on your MGIB Base on the MGIB 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 the MGIB Base for any premium tax recovery and Market Value Adjustment (see Appendix C and the Fixed Account I prospectus) that would otherwise apply at annuitization. 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. The MGIB Benefit Base is only a calculation used to determine the MGIB annuity income. 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 Benefit Base or Maximum MGIB Base. The MGIB Benefit Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value) and credits, and subsequently allocated eligible premiums and any credits we add, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. Access - 131180 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 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 Date. DETERMINING THE MGIB CHARGE BASE: The MGIB Charge Base is the greater of the MGIB Rollup Base and the MGIB Ratchet Base. (i) The MGIB Rollup Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; (b) is the MGIB Rollup Base for Special Funds; (c) is the MGIB Rollup Base for Excluded Funds; and (ii) The MGIB Ratchet Base is equal to the sum of (a) and (b) where: (a)is the MGIB Ratchet Base for Covered and Special Funds; and (b) is the MGIB Ratchet Base for Excluded Funds. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Date, we calculate your MGIB annuity income as follows: 1) WE FIRST DETERMINE YOUR MGIB BENEFIT BASE: The MGIB Benefit Base is equal to the greater of the MGIB Rollup Benefit Base and the MGIB Ratchet Benefit Base. (i) The MGIB Rollup Benefit Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; (b) is the MGIB Rollup Base for Special Funds; (c) is the contract value allocated to Excluded Funds; and (ii) The MGIB Ratchet Benefit Base is equal to the sum of (a) and (b) where: (a) is the MGIB Ratchet Base for Covered and Special Funds; and (b) is the contract value allocated to Excluded Funds. The Maximum MGIB Base is 300% of eligible premiums and credits adjusted pro-rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category and credits. A) CALCULATION OF MGIB ROLLUP BENEFIT BASE THE MGIB ROLLUP BASE ALLOCATED TO COVERED FUNDS equals the eligible premiums and credits allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rollup Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS equals the eligible premiums and credits allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS. Access - 131180 THE MGIB ROLLUP BASE ALLOCATED TO EXCLUDED FUNDS equals the eligible premiums and credits allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. The MGIB Rollup Base allocated to Excluded Funds is used only for transfer adjustments and rider charges. It is not used to determine benefits. Eligible premiums and credits are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid and credits after that are excluded from the MGIB Rollup Base. The MGIB Rollup Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rollup Rate is an annual effective rate. Withdrawals reduce the MGIB Rollup Base on a pro-rata basis. The percentage reduction in the MGIB Rollup Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Rollup Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Rollup Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Rollup Base allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Rollup Base allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Rollup Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Special Funds, as applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Rollup Base allocated to Excluded Funds. B) CALCULATION OF MGIB RATCHET BENEFIT BASE The MGIB RATCHET BASE FOR COVERED FUNDS AND SPECIAL FUNDS equals: o on the rider date, eligible premiums plus credits, or the contract value,if applicable, allocated to Covered Funds and Special Funds; o on each "quarterly anniversary date" prior to attainment of age 90, the MGIB Ratchet Base for Covered Funds and Special Funds is set equal to the greater of : 1) the current contract value allocated to Covered Funds and Special Funds (after any deductions occurring on that date); and 2) the MGIB Ratchet Base for Covered Funds and Special Funds from the most recent prior quarterly anniversary date, adjusted for any new eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. o at other times, the MGIB Ratchet Base for Covered Funds and Special Funds is the MGIB Ratchet Base from the prior quarterly anniversary date, adjusted for Access - 131180 subsequent eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. The MGIB RATCHET BASE FOR EXCLUDED FUNDs is calculated the same as for Covered Funds and Special Funds, but for premiums, credits, allocations, withdrawals or transfers attributable to Excluded Funds. Effect of Transfers on MGIB Ratchet Base: Net transfers from Covered or Special Funds to Excluded Funds will reduce the MGIB Ratchet Base allocated to Covered and Special Funds on a pro-rata basis. The resulting increase in the MGIB Ratchet Base allocated to Excluded Funds will equal the reduction in the MGIB Ratchet Base allocated to Covered and Special Funds. Net transfers from Excluded Funds to Covered or Special Funds will reduce the MGIB Ratchet Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Ratchet Base allocated to Covered and Special Funds will equal the lesser of the net contract value transferred and the change in the MGIB Ratchet Base allocated to Excluded Funds. A "quarterly anniversary date" is the date three months from the contract date that falls on the same date in the month as the contract date. For example, if the contract date is February 12, the quarterly anniversary date is May 12. If there is no corresponding date in the month, the quarterly anniversary date will be the last date of such month. If the quarterly anniversary date falls on a weekend or holiday, we will use the value as of the subsequent business day. 2) THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT, SURRENDER CHARGE AND PREMIUM TAXES) BY THE INCOME FACTOR, AND THEN DIVIDE BY $1,000. MGIB INCOME OPTIONS The following are the MGIB Income Options available under the MGIB Rider: a) Income for Life (Single Life or Joint with 100% Survivor) and 10-20 year certain; b) Income for a 20-30 year period certain; c) Any other income plan offered by the Company in conjunction with the MGIB rider on the MGIB Benefit Date. You may elect to have payments under MGIB Income Options (a) and (b) increase annually at 1%, 2% or 3%. Once during the life of the Contract, you have the option to elect to apply up to 50% of the MGIB Benefit Base to one of the MGIB Income Options available under the Rider. This option may only be exercised on a contract anniversary at or after the end of the waiting period. The portion of the MGIB Benefit Base so applied will be used to determine the MGIB income, as is otherwise described in the prospectus. The Contract Value will be reduced on a pro-rata basis. Any subsequent exercise of your right to receive payments under the MGIB rider must be for 100% of the remaining value. The amount applied to the partial annuitization will be treated as a withdrawal for purposes of adjusting contract and rider values. PLEASE NOTE THAT IF YOU ELECT PARTIAL ANNUITIZATION, INCOME PAYMENTS RECEIVED WILL BE TAXED AS WITHDRAWALS. PLEASE CONSULT YOUR TAX ADVISER BEFORE MAKING THIS ELECTION, AS THE TAXATION OF PARTIAL ANNUITIZATION IS UNCERTAIN. 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 Access - 131180 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 you can annuitize under the MGIB rider. This could reduce the MGIB. THE MGIB 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 Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuitize under the MGIB rider. NO CHANGE OF ANNUITANT. Once you purchase the MGIB rider, 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 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 it. We will determine the actual amount of the MGIB annuity benefit as of the MGIB 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 A MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, 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 RIDER (MGWB). The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments. The amount of the periodic payments is based on the amount in the MGWB Withdrawal Account. The guarantee provides that, subject to the conditions described below, the amount you will receive in periodic payments is equal to your Eligible Payment Amount adjusted for any prior withdrawals. Your Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) if you purchased the MGWB rider on the contract date: your premium payments received during the first two contract years 2) 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. To maintain the guarantee, withdrawals in any contract year may not exceed 7% of your Eligible Payment Amount adjusted, as defined below. 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. The MGWB Withdrawal Account is equal to the Eligible Payment Amount adjusted for any withdrawals and transfers between Covered and Excluded Funds. The MGWB Withdrawal Account is tracked separately for Covered and Excluded Funds. The MGWB Withdrawal Account equals the sum of (a) the MGWB Withdrawal Account allocated to Covered Funds, and (b) the lesser of (i) the MGWB Withdrawal Account allocated to Excluded Funds and (ii) the contract value in Excluded Funds. Thus, investing in Access - 131180 the Excluded Funds may limit the MGWB Withdrawal Account. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. The Maximum Annual Withdrawal Amount (or "MAW") is equal to 7% of the Eligible Payment Amount. Withdrawals from Covered Funds of up to the MAW will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal. Any withdrawals from Covered Funds greater than the MAW will cause a reduction in the MGWB Withdrawal Account allocated to Covered Funds by the proportion that the excess withdrawal bears to the remaining contract value in Covered Funds after the withdrawal of the MAW. All withdrawals from Excluded Funds will reduce the value of the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered Funds. Any withdrawals greater than the MAW will also cause a reduction in the Eligible Payment Amount by the proportion that the excess portion of the withdrawal bears to the contract value remaining after withdrawal of the MAW at the time of the withdrawal. Once your contract value is zero, any periodic payments paid under the MGWB rider also reduce the MGWB Withdrawal Account by the dollar amount of the payments. If 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 Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds and the net contract value transferred. YOU SHOULD NOT MAKE ANY WITHDRAWALS IF YOU WISH TO RETAIN THE OPTION TO ELECT THE STEP-UP BENEFIT (SEE BELOW). 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. 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 the MAW will reduce the Eligible Payment Amount 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: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) 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. Access - 131180 AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero, your Contract is given Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) 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 until the earliest of (i) your Contract's latest annuity start date, (ii) the death of the owner; or (iii) your MGWB Withdrawal Account is exhausted. These payments are equal to the lesser of the remaining MGWB Withdrawal Account or the MAW. 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 (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. 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 we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. RESET OPTION. Beginning on the fifth contract anniversary following the Rider Date, if the contract value is greater than the MGWB Withdrawal Account, you may choose to reset the MGWB Rider. The effect will be to terminate the existing MGWB Rider and add a new MGWB Rider ("New Rider"). The MGWB Withdrawal Account under the New Rider will equal the contract value on the date the New Rider is effective. The charge for the MGWB under the New Rider and any right to reset again will be based on the terms of the New Rider when it is issued. We reserve the right to limit the reset election to contract anniversaries only. If you elect the reset option, the step-up benefit is not available. STEP-UP BENEFIT. If the Rider Date is the same as the Contract Date, beginning on the fifth contract anniversary following the Rider Date, if you have not made any previous withdrawals, you may elect to increase the MGWB Withdrawal Account, the adjusted Eligible Payment Amount and the MAW by a factor of 20%. This option is available whether or not the contract value is greater than the MGWB Withdrawal Account. If you elect the Step-Up Benefit: 1) we reserve the right to increase the charge for the MGWB Rider; 2) you must wait at least five years from the Step-Up date to elect the Reset Option. The Step-Up Benefit may be elected only one time under the MGWB Rider. DEATH OF OWNER BEFORE AUTOMATIC PERIODIC BENEFIT STATUS. The MGWB rider terminates on the first owner's date of death (death of annuitant, if there is a non-natural owner), but the death benefit is payable. However, if the beneficiary is the owner's spouse, the spouse elects to continue the Contract, and the contract value steps up to the minimum guaranteed death benefit, the MGWB Withdrawal Account and MAW are also reset. The MGWB charge will continue at the existing rate. Reset upon spousal continuation does not affect any then existing reset option. Access - 131180 DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you 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. If the rider is not yet 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. For a discussion of the charges we deduct under the MGWB rider, see "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. OTHER CONTRACTS We offer other variable annuity contracts that also invest in the same portfolios of the Trusts or Funds. 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. -------------------------------------------------------------------------------- WITHDRAWALS -------------------------------------------------------------------------------- Except under certain qualified contracts, you may withdraw all or part of your money any time during the accumulation phase and before the death of the contract owner. If you request a withdrawal for more than 90% of the cash surrender value, and the remaining cash surrender value after the withdrawal is less than $2,500, 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 to withdraw amounts, otherwise we will make the withdrawal 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 your Fixed Interest Allocation taken more than 30 days before its maturity date. Definitive guidance on the proper federal tax treatment of the Market Value Adjustment has not been issued. You may want to discuss the potential tax consequences of a Market Value Adjustment with your tax adviser. 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 Assets 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 optional benefit rider is in effect. See "Optional Riders." We offer the following three withdrawal options: Access - 131180 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 you take from a Fixed Interest Allocation more than 30 days before its maturity date. See Appendix C and the Fixed Account I prospectus for more information on the application of the Market Value Adjustment. SYSTEMATIC WITHDRAWALS You may choose to receive automatic systematic withdrawal payments (i) from the contract value in the subaccounts in which you are invested, or (ii) from the interest earned in your Fixed Interest Allocations. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. 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. 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 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 (i) a fixed dollar amount or (ii) 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 discussed below which you may add to your regular fixed dollar systematic withdrawal program. If your systematic withdrawal is based on a percentage of your contract value and the amount to be 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. We limit systematic withdrawals from Fixed Interest Allocations 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 Access - 131180 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. Subject to availability, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the beneficiary's lifetime ("stretch"). Stretch payments will be subject to the same limitations as systematic withdrawals, and non-qualified stretch payments will be reported on the same basis as other systematic 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. We will not recalculate the maximum limit 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 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 Internal Revenue Code (the "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. 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. If your contract date is after the 28th day of the month, your IRA withdrawal will be made on the 28th day of each month. You may request us to calculate the amount you are required to withdraw from your Contract each year based on the information you give us and various choices you make. For information regarding the Access - 131180 calculation and choices you have, 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. -------------------------------------------------------------------------------- TRANSFERS AMONG YOUR INVESTMENTS -------------------------------------------------------------------------------- Between the end of the free look period and the annuity start date, you may transfer your contract value among the subaccounts in which you are invested and your Fixed Interest Allocations. We currently do not charge you for transfers made during a contract year, but reserve the right to charge 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 JUDGMENT 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 Covered Funds, Special Funds and Excluded Funds 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." 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. We will determine transfer values at the end of the business day on which we receive the transfer request at our Customer Service Center. If we receive your transfer request after 4 p.m. eastern time or the close of regular trading of the New York Stock Exchange, we will make the transfer 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. Access - 131180 LIMITS IMPOSED BY UNDERLYING FUNDS. Orders for the purchase of fund shares may be subject to acceptance or rejection by the underlying fund. We reserve the right to reject, without prior notice, any allocation of a premium payment to a subaccount if the subaccount's investment in its corresponding fund is not accepted by the fund for any reason. LIMITS ON FREQUENT OR DISRUPTIVE TRANSFERS. The Contract is not designed to serve as a vehicle for frequent trading. Frequent trading can disrupt management of a fund and raise its expenses. This in turn can have an adverse effect on fund performance. Accordingly, individuals or organizations that use market-timing investment strategies and make frequent transfers should not purchase the Contract. We reserve the right to restrict, in our sole discretion and without prior notice, transfers initiated by a market-timing organization or individual or other party authorized to give transfer instructions on behalf of multiple contract owners. Such restrictions could include: (1) not accepting transfer instructions from an agent acting on behalf of more than one contract owner; and (2) not accepting preauthorized transfer forms from market timers or other entities acting on behalf of more than one contract owner at a time. We monitor transfer activity. With regard to frequent transfers, in the event that an individual's or organization's transfer activity: 1. exceeds our then-current monitoring standard for frequent trading; 2. is identified as problematic by an underlying fund even if the activity does not exceed our monitoring standard for frequent trading; or 3. if we determine in our sole discretion that such transfer activity may not be in the best interests of other contract owners, we reserve the right to take any necessary action to deter such activity. Such actions may include, but are not limited to, the suspension of trading privileges via facsimile, telephone, email and internet, and the limiting of trading privileges to submission by regular U.S. mail. Our current definition of frequent trading is more than one purchase and sale of the same underlying fund within a 30-day period. We reserve the right to modify our general standard, or the standard as it may apply to a particular fund, at any time without prior notice, depending on the needs of the underlying fund(s) and/or state or federal regulatory requirements. In addition, if, due to the excessive dollar amounts of trades, even though not within our then current definition of frequent trading, an individual's or organization's transfer activity is determined, in our sole discretion, to be disruptive, we may take the same actions as are described above to limit frequent transfers. The Company does not allow waivers to the above policy. We currently require that orders 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. 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 (i) the Liquid Assets subaccount, or (ii) a Fixed Interest Allocation with either a 6-month or 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. We also may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively for use with the dollar cost averaging program. The DCA Fixed Interest Allocations require a minimum premium payment of $1,200 directed into a DCA Fixed Interest Allocation. A Fixed Interest Allocation or DCA Fixed Interest Allocation may not participate in the dollar cost averaging program and in systematic withdrawals at the same time. Access - 131180 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. Unless you have a DCA Fixed Interest Allocation, 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 Liquid Assets 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. If your source account is a 6-month Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 6. You may change the transfer amount once each contract year. If you have a DCA Fixed Interest Allocation, there is no minimum or maximum transfer amount. We will transfer all your money allocated to that source account into the subaccount(s) in equal payments over the selected 6-month or 1-year period. The last payment will include earnings accrued over the course of the selected period. If you make an additional premium payment into a Fixed Interest Allocation subject to dollar cost averaging, the amount of your transfers under the dollar cost averaging program remains the same, unless you instruct us to increase the transfer amount. Transfers from a Fixed Interest Allocation or a DCA Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. However, if you terminate the dollar cost averaging program for a DCA Fixed Interest Allocation and there is money remaining in the DCA Fixed Interest Allocation, we will transfer the remaining money to the Liquid Assets subaccount. Such transfer will trigger a Market Value Adjustment if the transfer is made more than 30 days before the maturity date of the DCA Fixed Interest Allocation. If you do not specify to which subaccounts you want to transfer the dollar amount of the source account, 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. You are permitted to transfer contract value to a Restricted Fund, subject to the limitations described above in this section and in "Appendix B -- 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 you request more than the individual limit 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 the Restricted Funds. Access - 131180 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 offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program, stop offering DCA Fixed Interest Allocations or otherwise modify, suspend or terminate this program. 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. Automatic rebalancing is not available if you participate in dollar cost averaging. Automatic rebalancing will not take place during the free look period. Transfers made pursuant to automatic rebalancing do not count toward the 12-transfer limit on free transfers. You are permitted to reallocate between Restricted and non-Restricted Funds, subject to the limitations described above, in this section and in appendix B -- 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. 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. 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 made 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 contract owner, or the first of joint owners or the annuitant (when a contract owner is not an individual) dies. Assuming you are the contract owner, or the first of joint owners or your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. We calculate the death benefit value as of 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 ("claim date"). If your beneficiary wants to receive the death benefit on a date later than this, it may affect the amount of the benefit payable in the future. The proceeds may be received in a single sum, applied to any of the annuity options, or, if available, paid over the beneficiary's lifetime. (See "Systematic Withdrawals" above). A beneficiary's right to elect an annuity option or receive a lump-sum payment may have been restricted by the contract owner. If so, such rights or options will not be available to the beneficiary. 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 Access - 131180 payment. For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." THE FOLLOWING DESCRIBES THE DEATH BENEFIT OPTIONS FOR CONTRACT OWNERS IN THE YR-2004 CATEGORY. FOR A DESCRIPTION OF THE DEATH BENEFITS APPLICABLE UNDER YOUR CONTRACT IF YOU ARE IN A DIFFERENT CATEGORY, PLEASE SEE THE APPLICABLE APPENDIX. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. 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: (i) the Standard Death Benefit, (ii) the Quarterly Ratchet Enhanced Death Benefit or (iii) the Max 7 Enhanced Death Benefit. The Quarterly 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 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. If you do not choose a death benefit, your death benefit will be the Standard Death Benefit. ONCE YOU CHOOSE A DEATH BENEFIT, you cannot change it. We may 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. The death benefit may be subject to certain mandatory distribution rules required by federal tax law. 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; or 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATER of: 1) the Base Death Benefit; and 2) the Standard Minimum Guaranteed Death Benefit ("Standard MGDB") for amounts allocated to Covered Funds plus the contract value allocated to Excluded Funds. The Standard MGDB allocated to Covered Funds equals premiums allocated to Covered Funds less pro-rata adjustments for any withdrawals and transfers. The Standard MGDB allocated to Excluded Funds equals premiums allocated to Excluded Funds less pro-rata adjustments for any withdrawals and transfers. This calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the Standard MGDB on a pro-rata basis. The percentage reduction in the Standard MGDB for each Fund category (i.e. Covered or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall Standard MGDB. o Net transfers from Covered Funds to Excluded Funds will reduce the Standard MGDB in the Covered Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Excluded Funds will equal the decrease in the Standard MGDB in Covered Funds. o Net transfers from Excluded Funds to Covered Funds will reduce the Standard MGDB in Excluded Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Covered Access - 131180 Funds will equal the lesser of the net contract value transferred and the decrease in the Standard MGDB in Excluded Funds. 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 Standard Death Benefit or the Enhanced Death Benefit option elected. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund or Excluded 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 or Excluded 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 or Excluded 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 QUARTERLY RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Quarterly Ratchet Minimum Guaranteed Death Benefit ("Quarterly Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds. No funds are currently designated as Excluded Funds for purposes of the Quarterly Ratchet MGDB. The Quarterly Ratchet MGDB allocated to Covered Funds on the contract date equals the premium allocated to Covered Funds. On each quarterly anniversary (three months from the contract date and each three month anniversary of that date) that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in Covered Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Covered Funds is equal to the Quarterly Ratchet MGDB in the Covered Funds from the last quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. The Quarterly Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On each quarterly anniversary that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in the Excluded Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Excluded Funds is equal to the Quarterly Ratchet MGDB in the Excluded Funds from the last Quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Quarterly Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the Quarterly Ratchet MGDB in Covered Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Access - 131180 Special or Excluded Funds, as applicable, will equal the decrease in the Quarterly Ratchet MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Quarterly Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the reduction in the Quarterly Ratchet MGDB in Excluded Funds The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the Quarterly Ratchet Enhanced Death Benefit and the 7% Solution Death Benefit Element. Each element of the Max 7 Enhanced Death Benefit is determined independently of the other at all times. The 7% SOLUTION DEATH BENEFIT ELEMENT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); and b) the SUM OF the 7% Solution Minimum Guaranteed Death Benefit Element ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Death Benefit Element, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. Access - 131180 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 issue ages 75 or under. You may add it at issue of the Contract or, if not yet available in your state, on the next contract anniversary following introduction of the rider in your state. The date on which the rider is added is referred to as the "rider effective date." If the rider is added at issue, 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, if added at issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) the Maximum Base; and ii) the contract value on the claim date minus premiums adjusted for withdrawals. If added after issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) 150% of the contract value on the rider effective date, plus subsequent premiums adjusted for subsequent withdrawals; and ii) the contract value on the claim date 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 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 "Charges and Fees -- Earnings Multiplier Benefit Charge" 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 "Federal Tax Considerations," "Individual Retirement Annuities," "Taxation of Qualified Contracts," and "Tax Consequences of Enhanced Death Benefit," in this prospectus. DEATH BENEFIT DURING THE INCOME PHASE If any contract owner or the annuitant dies after the annuity start date, we 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 on that date is greater than zero, we will add such difference to the contract value. We will allocate such addition to the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the addition to the Liquid Assets subaccount, or its successor. Such addition to contract value will not affect the guaranteed death benefit or any living benefit rider values. Any addition to contract value 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. The death benefits under each of the available options will continue, based on the surviving spouse's age on the date that ownership changes. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in Access - 131180 proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Liquid Assets 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: (i) based on the attained age of the spouse at the time of the ownership change using current values as of that date; (ii) computed as if the rider were added to the Contract after issue and after the increase; and (iii) based on the Maximum Base and percentages in effect on the original rider date. However, we may permit the surviving spouse to elect to use the then-current Maximum Base and percentages in the benefit calculation. CONTINUATION AFTER DEATH -- NOT A 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 Code. See next section, "Required Distributions Upon Contract Owner's Death." 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 Assets subaccount, or its successor. The death benefit will then terminate. At subsequent surrender, any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner will be waived. No additional premium payments may be made. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Liquid Assets 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 contract owner of a non-qualified contract dies before the annuity start date, we will distribute the death benefit payable to the beneficiary 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: (i) all rights of the spouse as contract owner's beneficiary under the Contract in effect prior to such election will cease; (ii) 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 (iii) all rights and privileges granted by the Contract or allowed by us will belong to the spouse as contract owner of the Contract. We deem the spouse to have made this election 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 not a spouse, the distribution provisions described in subparagraphs (a) and (b) above, will Access - 131180 apply even if the annuitant and/or contingent annuitant are alive at the time of the contract owner's death. Subject to availability, and our then current rules, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the life expectancy of the beneficiary ("stretch"). "Stretch" payments will be subject to the same limitations as systematic withdrawals, and non-qualified "stretch" payments will be reported on the same basis as other systematic withdrawals. If we do not receive an election from an owner's beneficiary who is not a spouse 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 the date of death. We will determine the death benefit as of the date we receive proof of death. Such cash payment will be in full settlement of all our liability under the Contract. If a contract owner dies after the annuity start date, 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 beneficiary 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. EFFECT OF MGWB ON DEATH BENEFIT If you die before Automatic Periodic Benefit Status under the MGWB rider, the death benefit is payable, but the rider terminates. However, if the beneficiary is the owner's spouse, and the spouse elects to continue the Contract, the death benefit is not payable until the spouse's death. Please see "Minimum Guaranteed Withdrawal Benefit Rider-Death of Owner" for a description of the impact of the owner's death on the MGWB Rider. If you die during Automatic Periodic Benefit Status, the death benefit payable is your MGWB Withdrawal Account, which equals the sum of the remaining MGWB periodic payments. Please see "Minimum Guaranteed Withdrawal Benefit Rider". -------------------------------------------------------------------------------- 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. Access - 131180 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 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. BENEFICIARY RIGHTS A beneficiary's right to elect an annuity option or receive a lump sum may have been restricted by the contract owner. If so, such options will not be available to the beneficiary. 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, although only fixed payments are currently available. 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, Access - 131180 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 of your Contract. 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 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. 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 ING USA. 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. We will base the discount interest rate on the interest rate used to calculate the payments for Options 1 and 2. 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 and in any confirmation notice. 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. Access - 131180 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 (i) when the New York Stock Exchange is closed; (ii) when trading on the New York Stock Exchange is restricted; (iii) 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 (iv) 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 had the age or gender not been misstated. ASSIGNING THE CONTRACT AS COLLATERAL You may assign a non-qualified Contract as collateral security for a loan but you should understand that your rights and any beneficiary's rights may be subject to the terms of the assignment. An assignment likely has 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. We will give you 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 Assets 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 in good order. We determine your contract value at the close of business on the day we void your Contract. 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. SPECIAL ARRANGEMENTS We may reduce or waive any Contract, rider, or benefit fees or charges for certain group or sponsored arrangements, under special programs, and for certain employees, agents, and related persons of our parent corporation and its affiliates. We reduce or waive these items based on expected economies, and the variations are based on differences in costs or services. Access - 131180 SELLING THE CONTRACT Our affiliate Directed Services, Inc. ("DSI"), 1475 Dunwoody Dr., West Chester, PA 19380 is the principal underwriter and distributor of the Contract as well as for other ING USA contracts. DSI, a New York corporation, is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and is a member of the National Association of Securities Dealers, Inc. ("NASD"). DSI does not retain any commissions or compensation paid to it by ING USA for Contract sales. DSI enters into selling agreements with affiliated and unaffiliated broker/dealers to sell the Contracts through their registered representatives who are licensed to sell securities and variable insurance products. Selling firms are also registered with the SEC and are NASD member firms. DSI pays selling firms for Contract sales according to one or more schedules. This compensation is generally based on a percentage of premium payments. Selling firms may receive commissions of up to 3.0% of premium payments. In addition, selling firms may receive ongoing annual compensation of up to 1.40% of all, or a portion, of values of Contracts sold through the firm. Individual representatives may receive all or a portion of compensation paid to their selling firm, depending on the firm's practices. Commissions and annual compensation, when combined, could exceed 3.0% of total premium payments. DSI may also compensate wholesalers/distributors, and their sales management personnel, for Contract sales within the wholesale/distribution channel. This compensation may be based on a percentage of premium payments, and/or a percentage of Contract values. Affiliated selling firms may include Aeltus Capital, Inc., BancWest Investment Services, Inc., Baring Investment Services, Inc., Compulife Investor Services, Inc., Financial Network Investment Corporation, Financial Northeastern Corporation, Granite Investment Services, Inc. Guaranty Brokerage Services, Inc., IFG Network Securities, Inc., ING America Equities, Inc., ING Barings Corp., ING Brokers Network, LLC, ING Direct Funds Limited, ING DIRECT Securities, Inc., ING Financial Advisers LLC, ING Furman Selz Financial Services LLC, ING Funds Distributor, LLC, ING TT&S (U.S.) Securities, Inc., Investors Financial Group, LLC, Locust Street Securities, Inc., Multi-Financial Securities Corporation, PrimeVest Financial Services, Inc., Systematized Benefits Administrators, Inc., United Variable Services, Inc., VESTAX Securities Corporation, and Washington Square Securities, Inc. We may also make additional payments to broker/dealers for marketing and educational expenses and to reimburse certain expenses of registered representatives relating to sales of Contracts. We do not pay any additional compensation on the sale or exercise of any of the Contract's 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. Access - 131180 STATE REGULATION We are regulated by the Insurance Department of the State of Iowa. 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 We are not aware of any pending legal proceedings which involve Separate Account B as a party. We are, or may be in the future, a defendant in various legal proceedings in connection with the normal conduct of our insurance operations. Some of these cases may seek class action status and may include a demand for punitive damages as well as for compensatory damages. In the opinion of management, the ultimate resolution of any existing legal proceeding is not likely to have a material adverse effect on our ability to meet our obligations under the contract. Directed Services, Inc., the principal underwriter and distributor of the contract, is not involved in any legal proceeding which, in the opinion of management, is likely to have a material adverse effect on its ability to distribute the contract. INDUSTRY DEVELOPMENTS - TRADING As with many financial services companies, the Company and affiliates of the Company have received requests for information from various governmental and self-regulatory agencies in connection with investigations related to trading in investment company shares. In each case, full cooperation and responses are being provided. The Company is also reviewing its policies and procedures in this area. LEGAL MATTERS The legal validity of the Contracts was passed on by Kimberly J. Smith, Assistant Secretary of ING USA. EXPERTS The audited consolidated financial statements and schedules of Golden American as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002, along with the statement of assets and liabilities of Separate Account B as of December 31, 2002 and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, appearing in the SAI and Registration Statement have been audited by Ernst & Young LLP, independent auditors, as set forth in their reports thereon appearing in the SAI and in the Registration Statement, and are included in reliance on such reports given on 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. Access - 131180 This summary references enhanced death benefits and earnings multiplier benefits that may not be available under your Contract. Please see your Contract, and "The Annuity Contract -- Optional Riders" and "Death Benefit Choices" in this prospectus. 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. 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. It is possible that these Contract features may exceed the limits imposed by the tax law. If so, you would be treated as the owner of the Separate Account B assets that underlie your Contract and thus subject to current taxation on the income and gains from those assets. 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. Qualified Contracts are subject to special rules -- see below. The following discussion assumes that the Contracts will qualify as annuity contracts for federal income tax purposes. 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, Access - 131180 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. DELAYED ANNUITY STARTING DATE. If the Contract's annuity starting date occurs (or is scheduled to occur) at a time when the annuitant has reached an advanced age (e.g., age 85), it is possible that the Contract would not be treated as an annuity for federal income tax purposes. In that event, the income and gains under the Contract could be currently includible in your income. 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 (unreduced by the amount of any surrender charge) immediately before the distribution over the contract owner's investment in the Contract at that time. The contract value that applies for this purpose is unclear in some respects. For example, the living benefits provided under the Contract, i.e., the MGAB, MGWB and MGIB, as well as the market value adjustment could increase the contract value that applies. Thus, the income on the Contracts could be higher than the amount of income that would be determined without regard to such benefits. As a result, you could have higher amounts of income than will be reported to you. 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. The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. Certain charges are imposed with respect to the death benefit. It is possible that these charges (or some portion thereof) could be treated for federal tax purposes as a distribution from the Contract. PENALTY TAX ON CERTAIN WITHDRAWALS. A distribution from a non-qualified Contract may be subject to 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. The tax treatment of partial annuitizations is unclear. We Access - 131180 currently treat any partial annuitizations, such as those associated with the MGIB benefit, as withdrawals rather than as annuity payments. Please consult your tax adviser before electing a partial annuitization. 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. Special rules may apply to amounts distributed after a Beneficiary has elected to maintain Contract value and receive payments. TRANSFERS, ASSIGNMENTS AND EXCHANGES. A transfer or assignment of ownership of a Contract, the designation of an annuitant or payee other than an owner, 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 adviser as to the tax consequences. 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 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 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. 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 plan participant for whose benefit the contract is purchased (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 plan participant reaches age 70 1/2. For IRAs described in Section 408, distributions generally must commence no later than by April 1 of the calendar year following the calendar year in which the individual contract owner reaches age 70 1/2. Roth IRAs under Section 408A do not require distributions at any time before the contract owner's death. PLEASE NOTE THAT REQUIRED MINIMUM DISTRIBUTIONS UNDER QUALIFIED CONTRACTS MAY BE SUBJECT TO SURRENDER CHARGE AND/OR MARKET VALUE ADJUSTMENT, IN ACCORDANCE WITH THE TERMS OF THE CONTRACT. THIS COULD AFFECT THE AMOUNT THAT MUST BE TAKEN FROM THE CONTRACT IN ORDER TO SATISFY REQUIRED MINIMUM DISTRIBUTIONS. DIRECT ROLLOVERS. If the Contract is used in connection with a pension, profit-sharing, or annuity plan qualified under sections 401(a) or 403(a) of the Code, or is a tax-sheltered annuity under section 403(b) of the Code, or is used with an eligible deferred compensation plan that has a government sponsor and that is qualified under section 457(b), any "eligible rollover distribution" from the Contract will be subject to direct rollover and mandatory withholding requirements. An eligible rollover distribution generally is any taxable distribution from a qualified pension plan under section 401(a) of the Code, Access - 131180 qualified annuity plan under section 403(a) of the Code, section 403(b) annuity or custodial account, or an eligible section 457(b) deferred compensation plan that has a government sponsor, excluding certain amounts (such as minimum distributions required under section 401(a)(9) of the Code, distributions which are part of a "series of substantially equal periodic payments" made for life or a specified period of 10 years or more, or hardship distributions as defined in the tax law). Under these requirements, federal income tax equal to 20% of the eligible rollover distribution will be withheld from the amount of the distribution. Unlike withholding on certain other amounts distributed from the Contract, discussed below, you cannot elect out of withholding with respect to an eligible rollover distribution. However, this 20% withholding will not apply if, instead of receiving the eligible rollover distribution, you elect to have it directly transferred to certain qualified plans. Prior to receiving an eligible rollover distribution, you will receive a notice (from the plan administrator or us) explaining generally the direct rollover and mandatory withholding requirements and how to avoid the 20% withholding by electing a direct rollover. 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. 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" on a tax-deferred basis into an IRA. Also, amounts in another IRA or individual retirement account can be rolled over or transferred tax-free to 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. If you make a tax-free rollover of a distribution from any of these IRAs, you may not make another tax-free rollover from the IRA within a 1-year period. Sales of the Contract for use with IRAs may be subject to special requirements of the IRS. DISTRIBUTIONS - IRAS. All distributions from a traditional IRA are taxed as received unless either one of the following is true: o The distribution is rolled over to a plan eligible to receive rollovers or to another traditional IRA or certain qualified plans in accordance with the Tax Code; or o You made after-tax contributions to the IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code. To avoid certain tax penalties, you and any designated beneficiary must also meet the minimum distribution requirements imposed by the Tax Code. The requirements do not apply to Roth IRA contracts while the owner is living. These rules may dictate one or more of the following: o Start date for distributions; o The time period in which all amounts in your account(s) must be distributed; or o Distribution amounts. Access - 131180 Generally, you must begin receiving distributions from a traditional IRA by April 1 of the calendar year following the calendar year in which you attain age 70 1/2. We must pay out distributions from the contract over one of the following time periods: o Over your life or the joint lives of you and your designated beneficiary; or o Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary. The amount of each periodic distribution must be calculated in accordance with IRS regulations. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not distributed. The following applies to the distribution of death proceeds under 408(b) and 408A (Roth IRA - See below) plans. Different distribution requirements apply after your death. If your death occurs after you begin receiving minimum distributions under the contract, distributions must be made at least as rapidly as under the method in effect at the time of your death. Code section 401(a)(9) provides specific rules for calculating the minimum required distributions at your death. The death benefit under the contract and also certain other contract benefits, such as living benefits, may affect the amount of the required minimum distribution that must be taken. If your death occurs before you begin receiving minimum distributions under the contract, your entire balance must be distributed by December 31 of the calendar year containing the fifth anniversary of the date of your death. For example, if you die on September 1, 2004, your entire balance must be distributed to the designated beneficiary by December 31, 2009. However, if the distributions begin by December 31 of the calendar year following the calendar year of your death, and you have named a designated beneficiary, then payments may be made over either of the following time-frames: o Over the life of the designated beneficiary; or o Over a period not extending beyond the life expectancy of the designated beneficiary. If the designated beneficiary is your spouse, distributions must begin on or before the later of the following: o December 31 of the calendar year following the calendar year of your death; or o December 31 of the calendar year in which you would have attained age 70 1/2. In lieu of taking a distribution under these rules, a spouse who is the sole beneficiary may elect to treat the account as his or her own IRA. In such case, the surviving spouse will be able to make contributions to the account, make rollovers from the account, and defer taking a distribution until his or her age 70 1/2. The surviving spouse is deemed to have made such an election if the surviving spouse makes a rollover to or from the account, makes additional contributions to the account, or fails to take a distribution within the required time period. 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 limits on the amount of the contributions 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. Certain qualifying individuals may convert an IRA, SEP, or SIMPLE IRA, to a Roth IRA. Such rollovers and conversions are subject to tax, and other special rules may apply. If you make a tax-free rollover of a distribution from a Roth IRA to another Roth IRA, you may not make another tax-free rollover from the Roth IRA from which the rollover was made within a 1-year period. A 10% penalty may apply to amounts attributable to a conversion to a Roth IRA if the amounts are distributed during the five taxable years beginning with the year in which the conversion was made. Access - 131180 DISTRIBUTIONS -- ROTH IRAS. A qualified distribution from a Roth IRA is not taxed when it is received. A qualified distribution is a distribution: o Made after the five-taxable year period beginning with the first taxable year for which a contribution was made to a Roth IRA of the owner; and o Made after you attain age 59 1/2, die, become disabled as defined in the Tax Code, or for a qualified first-time home purchase. If a distribution is not qualified, it will be taxable to the extent of the accumulated earnings. Under special ordering rules, a partial distribution will first be treated generally as a return of contributions which is not taxable and then as taxable accumulated earnings. 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, severance from employment, death or disability. Distributions allocable to salary reduction contributions, but not earnings on such contributions, may also be distributed upon hardship. Certain penalties may apply. TSAS -- LOANS. Loans may be available if you purchased your contract in connection with a non-ERISA plan qualified under Section 403(b) of the Code ("TSA"). We do not currently permit loans under Section 403(b) Contracts that are subject to ERISA. 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 surrender value as collateral for the loan. Loans are subject to the terms of the Contract, your 403(b) plan, and the Code. The amount and number of loans outstanding at any one time under your TSA are limited, whether under our contracts or those of other carriers. We may modify the terms of a loan to comply with changes in applicable law. Various mandatory repayment requirements apply to loans, and failure to repay generally would result in income to you and the potential application of tax penalties. We urge you to consult with a qualified tax advisor prior to effecting a loan transaction under your Contract. We may apply additional restrictions or limitations on loans, and you must make loan requests in accordance with our administrative practices and loan request procedures in effect at the time you submit your request. Read the terms of the loan agreement before submitting any request. Any outstanding loan balance impacts the following: 1) Withdrawals and Charges: We determine amounts available for maximum withdrawal amounts, free partial withdrawals, systematic withdrawals and waiver of administrative charges by reducing the otherwise applicable amounts by the amount of any outstanding loan balance. 2) Death Benefits, Annuitization and Surrenders: We deduct the outstanding loan balance from any amounts otherwise payable and in determining the amount available for annuitization. 3) Riders: a) Minimum Guaranteed Income Benefit ("MGIB") Rider. If you exercise the MGIB rider, we reduce the MGIB Base 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, Access - 131180 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. TSAS-- DISTRIBUTIONS. All distributions from Section 403(b) plans are taxed as received unless either of the following are true: o The distribution is rolled over to another plan eligible to receive rollovers or to a traditional individual retirement annuity/account (IRA) in accordance with the Tax Code; or o You made after-tax contributions to the plan. In this case, the amount will be taxed according to rules detailed in the Tax Code. Generally, you must begin receiving distributions by April 1 of the calendar year following the calendar year in which you attain age 70 1/2 or retire, whichever occurs later, unless you had amounts under the contract as of December 31, 1986. In this case, distribution of these amounts generally must begin by the end of the calendar year in which you attain age 75 or retire, if later. The death benefit under the contract and also certain other contract benefits, such as the living benefits, may affect the amount of the required minimum distribution that must be taken. If you take any distributions in excess of the minimum required amount, then special rules require that some or all of the December 31, 1986 balance be distributed earlier. TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. It is possible that the IRS could characterize such a death benefit as an incidental death benefit. There are limitations on the amount of incidental benefits that may be provided under pension and profit sharing plans. In addition, the provision of such benefits may result in currently taxable income to participants. Also, as stated above, the presence of the death benefit, as well as certain other contract benefits, could affect the amount of required minimum distributions. 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. FEDERAL INCOME TAX WITHHOLDING We will withhold and remit to the U.S. government a part of the taxable portion of each distribution made under a Contract unless the distributee notifies us at or before the time of the distribution that he or she elects not to have any amounts withheld. In certain circumstances, we may be required to withhold tax, as explained above. The withholding rates applicable to the taxable portion of periodic annuity payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. In addition, a 10% withholding rate applies to the taxable portion of Access - 131180 non-periodic payments (including withdrawals prior to the annuity starting date) and conversions of, and rollovers from, non-Roth IRAs to Roth IRAs. Regardless of whether you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the payment. As discussed above, the withholding rate applicable to eligible rollover distributions is 20%. -------------------------------------------------------------------------------- Access - 131180 -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION -------------------------------------------------------------------------------- TABLE OF CONTENTS Item Introduction Description of ING USA Annuity and Life Insurance Company Safekeeping of Assets The Administrator Independent Auditors Distribution of Contracts Performance Information IRA Partial Withdrawal Option Other Information Financial Statements of Golden American Life Insurance Company Financial Statements of Golden American Separate Account B Please tear off, complete and return the form below to order a free Statement of Additional Information for the Contracts offered under the prospectus. Send the form to our Customer Service Center at the address 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 Access - 131180 02/13/2004 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Access - 131180 -------------------------------------------------------------------------------- APPENDIX A -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION Except for subaccounts which did not commence operations as of December 31, 2002, the following tables give (1) the accumulation unit value ("AUV") at the beginning of the period, (2) the AUV at the end of the period and (3) the total number of accumulation units outstanding at the end of the period for each subaccount of Golden American Separate Account B, (now ING USA Annuity and Life Insurance Company Separate Account B) available under the Contract for the indicated periods.
2002 2001 2000 1999 1998 1997 1996 1995 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.40% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.99 $10.00 (11) AUV at End of Period $7.34 $10.99 Number of Accumulation Units Outstanding at End of 218,094 16,786 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.59 $10.00 (12) AUV at End of Period $7.83 $9.59 Number of Accumulation Units Outstanding at End of 478,395 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.27 $10.00 (12) AUV at End of Period $6.37 $9.27 Number of Accumulation Units Outstanding at End of 523,176 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.71 $18.92 $21.92 $14.23 $14.31 $11.78 $10.01 $10.00 (1) AUV at End of Period $9.91 $14.71 $18.92 $21.92 $14.23 $14.31 $11.78 $10.01 Number of Accumulation Units Outstanding at End of 2,906,118 3,787,157 4,824,609 2,450,796 1,105,850 554,068 231,567 47,478 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.64 $17.21 $21.06 $17.01 $15.41 $12.49 $10.00 (3) AUV at End of Period $10.10 $14.64 $17.21 $21.06 $17.01 $15.41 $12.49 Number of Accumulation Units Outstanding at End of 5,368,761 6,450,280 6,881,891 5,870,533 3,297,314 438,636 38,037 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $10.02 $10.55 $10.00 (7) AUV at End of Period $7.53 $10.02 $10.55 Number of Accumulation Units Outstanding at End of 4,513,819 3,900,663 2,138,069 Period ING Capital Guardian Managed Global AUV at Beginning of Period $17.54 $20.19 $23.97 $14.88 $11.67 $10.55 $9.53 $9.28 (1) AUV at End of Period $13.80 $17.54 $20.19 $23.97 $14.88 $11.67 $10.55 $9.53 Number of Accumulation Units Outstanding at End of 1,965,666 1,757,559 1,348,844 676,402 610,300 443,665 231,774 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.87 $18.40 $22.82 $15.37 $12.88 $11.84 $10.00 $10.00 (2) AUV at End of Period $13.14 $17.87 $18.40 $22.82 $15.37 $12.88 $11.84 $10.00 Number of Accumulation Units Outstanding at End of 5,592,680 7,129,680 6,884,892 5,053,919 2,476,498 559,014 227,347 -- Period ING Developing World AUV at Beginning of Period $7.08 $7.58 $11.61 $7.28 $10.00 (6) AUV at End of Period $6.23 $7.08 $7.58 $11.61 $7.28 Number of Accumulation Units Outstanding at End of 1,925,891 2,270,962 2,014,772 2,133,907 417,221 Period Access - 131180 ING Eagle Asset Value Equity AUV at Beginning of Period $18.34 $19.46 $18.14 $18.31 $18.28 $14.57 $13.36 $12.41 (1) AUV at End of Period $15.00 $18.34 $19.46 $18.14 $18.31 $18.28 $14.57 $13.36 Number of Accumulation Units Outstanding at End of 2,314,070 2,404,425 2,586,368 1,825,971 1,415,540 469,649 249,994 23,394 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.09 $9.88 $10.00 (9) AUV at End of Period $7.23 $9.09 $9.88 Number of Accumulation Units Outstanding at End of 1,436,694 685,331 290,230 Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.62 $10.00 (10) AUV at End of Period $4.65 $7.62 Number of Accumulation Units Outstanding at End of 387,486 47,818 Period ING Hard Assets AUV at Beginning of Period $14.14 $16.32 $17.37 $14.28 $20.57 $19.65 $14.96 $14.71 (1) AUV at End of Period $14.05 $14.14 $16.32 $17.37 $14.28 $20.57 $19.65 $14.96 Number of Accumulation Units Outstanding at End of 575,255 295,871 309,819 355,052 258,034 90,379 43,232 2,847 Period ING International Equity AUV at Beginning of Period $8.66 $11.37 $15.57 $10.29 $9.90 $10.28 (5) AUV at End of Period $7.16 $8.66 $11.37 $15.57 $10.29 $9.90 Number of Accumulation Units Outstanding at End of 4,449,069 5,060,321 5,535,477 4,666,041 2,422,075 90,783 Period ING Janus Growth and Income AUV at Beginning of Period $8.87 $9.94 $10.00 (9) AUV at End of Period $7.05 $8.87 $9.94 Number of Accumulation Units Outstanding at End of 1,676,923 1,073,857 274,785 Period ING Janus Special Equity AUV at Beginning of Period $8.32 $8.89 $10.00 (9) AUV at End of Period $6.08 $8.32 $8.89 Number of Accumulation Units Outstanding at End of 464,522 368,091 121,670 Period ING Jennison Equity Opportunities AUV at Beginning of Period $21.60 $25.17 $30.11 $24.50 $22.05 $17.34 $14.63 $14.23 (1) AUV at End of Period $15.06 $21.60 $25.17 $30.11 $24.50 $22.05 $17.34 $14.63 Number of Accumulation Units Outstanding at End of 2,929,610 3,606,212 3,626,696 2,412,721 1,342,756 312,229 174,592 16,369 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.22 Number of Accumulation Units Outstanding at End of 72,898 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.85 Number of Accumulation Units Outstanding at End of 169,670 Period ING Limited Maturity Bond AUV at Beginning of Period $19.06 $17.76 $16.72 $16.77 $15.91 $15.13 $14.71 $14.35 (1) AUV at End of Period $20.16 $19.06 $17.76 $16.72 $16.77 $15.91 $15.13 $14.71 Number of Accumulation Units Outstanding at End of 6,261,694 4,325,602 3,621,501 2,938,050 1,557,946 133,461 46,293 11,834 Period ING Liquid Assets AUV at Beginning of Period $15.84 $15.47 $14.79 $14.33 $13.83 $13.35 $12.89 $12.76 (1) AUV at End of Period $15.84 $15.84 $15.47 $14.79 $14.33 $13.83 $13.35 $12.89 Number of Accumulation Units Outstanding at End of 12,089,343 14,053,31614,214,982 13,701,796 3,587,644 353,076 84,960 62,084 Period Access - 131180 ING Marsico Growth AUV at Beginning of Period $15.14 $22.02 $28.62 $16.29 $13.03 $11.42 $10.00 (4) AUV at End of Period $10.52 $15.14 $22.02 $28.62 $16.29 $13.03 $11.42 Number of Accumulation Units Outstanding at End of 12,372,395 16,739,73118,211,995 14,289,972 3,293,705 343,006 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.37 Number of Accumulation Units Outstanding at End of 93,268 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.97 Number of Accumulation Units Outstanding at End of 44,773 Period ING MFS Mid Cap Growth AUV at Beginning of Period $31.80 $42.23 $39.59 $22.43 $18.52 $15.70 $13.21 $12.95 (3) AUV at End of Period $16.05 $31.80 $42.23 $39.59 $22.43 $18.52 $15.70 $13.21 Number of Accumulation Units Outstanding at End of 5,485,147 6,612,249 7,313,425 4,873,150 1,905,009 177,125 28,223 Period ING MFS Research AUV at Beginning of Period $20.44 $26.39 $28.04 $22.89 $18.87 $15.93 $13.10 $12.25 (4) AUV at End of Period $15.14 $20.44 $26.39 $28.04 $22.89 $18.87 $15.93 $13.10 Number of Accumulation Units Outstanding at End of 5,913,309 7,316,946 8,149,686 6,431,949 3,902,975 268,126 Period ING MFS Total Return AUV at Beginning of Period $20.56 $20.75 $18.06 $17.72 $16.10 $13.51 $12.05 $11.41 (4) AUV at End of Period $19.23 $20.56 $20.75 $18.06 $17.72 $16.10 $13.51 $12.05 Number of Accumulation Units Outstanding at End of 9,138,045 9,253,396 9,222,565 8,274,090 3,982,961 286,032 Period ING PIMCO Core Bond AUV at Beginning of Period $11.86 $11.74 $11.79 $13.09 $11.87 $11.96 $11.55 $11.20 (6) AUV at End of Period $12.71 $11.86 $11.74 $11.79 $13.09 $11.87 $11.96 $11.55 Number of Accumulation Units Outstanding at End of 4,410,375 1,669,195 1,224,547 753,003 396,067 10,655 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.65 $11.59 $10.00 (7) AUV at End of Period $8.55 $11.65 $11.59 Number of Accumulation Units Outstanding at End of 3,519,149 4,280,223 2,182,516 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.63 $11.26 $10.00 (7) AUV at End of Period $8.07 $10.63 $11.26 Number of Accumulation Units Outstanding at End of 1,177,892 952,473 539,461 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $28.22 $26.04 $21.65 $20.53 $19.66 $17.29 $15.07 $14.62 (1) AUV at End of Period $27.96 $28.22 $26.04 $21.65 $20.53 $19.66 $17.29 $15.07 Number of Accumulation Units Outstanding at End of 5,326,018 4,592,780 3,264,322 2,546,589 1,628,158 414,805 173,475 13,988 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $23.90 $23.91 $21.47 $21.94 $20.55 $17.75 $16.55 $15.94 (1) AUV at End of Period $20.45 $23.90 $23.91 $21.47 $21.94 $20.55 $17.75 $16.55 Number of Accumulation Units Outstanding at End of 2,796,772 3,366,042 2,309,478 2,014,454 800,490 255,396 150,732 21,073 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of 124,181 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.85 Number of Accumulation Units Outstanding at End of 220,958 Period Access - 131180 ING Van Kampen Growth & Income AUV at Beginning of Period $21.65 $24.94 $25.83 $22.61 $20.09 $15.69 $13.19 $12.12 (1) AUV at End of Period $18.19 $21.65 $24.94 $25.83 $22.61 $20.09 $15.69 $13.19 Number of Accumulation Units Outstanding at End of 6,183,621 7,290,571 8,035,274 7,496,161 4,591,471 853,473 355,191 36,100 Period ING Van Kampen Real Estate AUV at Beginning of Period $28.40 $26.64 $20.62 $21.74 $25.48 $21.04 $15.78 $14.91 (1) AUV at End of Period $28.06 $28.40 $26.64 $20.62 $21.74 $25.48 $21.04 $15.78 Number of Accumulation Units Outstanding at End of 1,167,126 887,731 1,006,919 534,577 436,867 135,993 42,710 2,910 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (12) AUV at End of Period $10.64 Number of Accumulation Units Outstanding at End of 719,279 Period ING VP Growth Opportunities AUV at Beginning of Period $7.79 $10.00 (10) AUV at End of Period $5.26 $7.79 Number of Accumulation Units Outstanding at End of 143,307 82,839 Period ING VP MagnaCap AUV at Beginning of Period $9.35 $10.00 (10) AUV at End of Period $7.10 $9.35 Number of Accumulation Units Outstanding at End of 211,733 38,846 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.33 $10.00 (10) AUV at End of Period $4.62 $8.33 Number of Accumulation Units Outstanding at End of 774,557 180,638 Period ING VP Worldwide Growth AUV at Beginning of Period $7.02 $8.75 $10.00 (8) AUV at End of Period $5.21 $7.02 $8.75 Number of Accumulation Units Outstanding at End of 467,247 306,137 110,552 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.27 $10.00 (11) AUV at End of Period $7.65 $10.27 Number of Accumulation Units Outstanding at End of 351,424 20,414 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.44 Number of Accumulation Units Outstanding at End of 69,607 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.37 $10.00 (11) AUV at End of Period $7.86 $9.37 Number of Accumulation Units Outstanding at End of 584,089 28,966 Period Invesco VIF--Utilities AUV at Beginning of Period $8.11 $10.00 (11) AUV at End of Period $6.37 $8.11 Number of Accumulation Units Outstanding at End of 127,145 5,341 Period Jennison Portfolio AUV at Beginning of Period $6.30 $7.85 $10.00 (11) AUV at End of Period $4.27 $6.30 $7.85 Number of Accumulation Units Outstanding at End of 1,009,408 1,264,693 194,916 Period Pimco High Yield Portfolio AUV at Beginning of Period $10.10 $10.01 $10.24 $10.08 $10.00 (6) AUV at End of Period $9.84 $10.10 $10.01 $10.24 $10.08 Number of Accumulation Units Outstanding at End of 6,193,058 5,836,177 5,140,416 5,053,972 1,630,971 Period Access - 131180 Pimco StocksPLUS Growth & Income AUV at Beginning of Period $10.23 $11.72 $13.13 $11.11 $10.00 (6) AUV at End of Period $8.05 $10.23 $11.72 $13.13 $11.11 Number of Accumulation Units Outstanding at End of 4,911,149 5,825,877 6,006,923 4,797,771 1,527,698 Period Pioneer Fund VCT AUV at Beginning of Period $9.39 $10.00 (11) AUV at End of Period $7.47 $9.39 Number of Accumulation Units Outstanding at End of 291,461 27,047 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.72 $10.00 (11) AUV at End of Period $9.36 $10.72 Number of Accumulation Units Outstanding at End of 983,243 170,276 Period ProFund VP Bull AUV at Beginning of Period $8.90 $10.00 (10) AUV at End of Period $6.67 $8.90 Number of Accumulation Units Outstanding at End of 1,231,933 805,047 Period ProFund VP Europe 30 AUV at Beginning of Period $8.27 $10.00 (10) AUV at End of Period $6.05 $8.27 Number of Accumulation Units Outstanding at End of 257,910 8,429 Period ProFund VP Small Cap AUV at Beginning of Period $9.43 $10.00 (10) AUV at End of Period $7.21 $9.43 Number of Accumulation Units Outstanding at End of 1,755,936 1,134,989 Period SP Jennison International Growth AUV at Beginning of Period $5.41 $8.56 $10.00 (9) AUV at End of Period $4.12 $5.41 $8.56 Number of Accumulation Units Outstanding at End of 535,933 294,591 65,551 Period Footnotes (1) Fund First Available during October 1995 (2) Fund First Available during January 1996 (3) Fund First Available during September 1996 (4) Fund First Available during February 1997 (5) Fund First Available during October 1997 (6) Fund First Available during May 1998 (7) Fund First Available during February 2000 (8) Fund First Available during May 2000 (9) Fund First Available during October 2000 (10) Fund First Available during May 2001 (11) Fund First Available during November 2001 (12) Fund First Available during May 2002 2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.45% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.99 $10.00 (5) AUV at End of Period $7.34 $10.99 Number of Accumulation Units Outstanding at End of 226,139 23,503 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.59 $10.00 (7) AUV at End of Period $7.83 $9.59 Number of Accumulation Units Outstanding at End of 321,872 Period Access - 131180 Fidelity(R) VIP Growth AUV at Beginning of Period $9.27 $10.00 (7) AUV at End of Period $6.37 $9.27 Number of Accumulation Units Outstanding at End of 534,217 Period Galaxy VIP Asset Allocation AUV at Beginning of Period $9.83 $10.78 $10.52 AUV at End of Period $8.14 $9.83 $10.78 Number of Accumulation Units Outstanding at End of 41,974 72,907 70,287 Period Galaxy VIP Equity Fund AUV at Beginning of Period $9.20 $11.41 $11.52 AUV at End of Period $6.56 $9.20 $11.41 Number of Accumulation Units Outstanding at End of 41,998 48,568 46,533 Period Galaxy VIP Growth & Income AUV at Beginning of Period $10.39 $10.98 $10.27 AUV at End of Period $7.55 $10.39 $10.98 Number of Accumulation Units Outstanding at End of 6,936 7,205 4,780 Period Galaxy VIP Quality Plus Bond AUV at Beginning of Period $11.69 $11.04 $9.95 AUV at End of Period $12.72 $11.69 $11.04 Number of Accumulation Units Outstanding at End of 2,441 2,442 2,299 Period Galaxy VIP Small Company Growth AUV at Beginning of Period $13.12 $13.34 $15.07 AUV at End of Period $8.67 $13.12 $13.34 Number of Accumulation Units Outstanding at End of 1,318 1,322 1,108 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.64 $18.85 $21.70 (1) AUV at End of Period $9.86 $14.64 $18.85 Number of Accumulation Units Outstanding at End of 1,870,965 2,160,544 1,797,957 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.59 $17.17 $20.13 (1) AUV at End of Period $10.06 $14.59 $17.17 Number of Accumulation Units Outstanding at End of 1,918,853 1,780,512 1,239,023 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $10.01 $10.54 $10.00 (1) AUV at End of Period $7.52 $10.01 $10.54 Number of Accumulation Units Outstanding at End of 6,465,372 4,561,875 1,537,946 Period ING Capital Guardian Managed Global AUV at Beginning of Period $17.43 $20.08 $22.29 (1) AUV at End of Period $13.71 $17.43 $20.08 Number of Accumulation Units Outstanding at End of 2,246,690 1,775,926 965,140 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.82 $18.35 $23.69 (1) AUV at End of Period $13.09 $17.82 $18.35 Number of Accumulation Units Outstanding at End of 2,987,431 2,714,045 1,586,595 Period ING Developing World AUV at Beginning of Period $7.07 $7.57 $11.66 (1) AUV at End of Period $6.22 $7.07 $7.57 Number of Accumulation Units Outstanding at End of 1,365,017 1,495,431 760,058 Period Access - 131180 ING Eagle Asset Value Equity AUV at Beginning of Period $18.25 $19.38 $17.48 (1) AUV at End of Period $14.92 $18.25 $19.38 Number of Accumulation Units Outstanding at End of 1,201,589 833,753 472,034 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.09 $9.88 $10.00 (3) AUV at End of Period $7.22 $9.09 $9.88 Number of Accumulation Units Outstanding at End of 1,947,601 959,092 131,431 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (8) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.61 $10.00 (4) AUV at End of Period $4.64 $7.61 Number of Accumulation Units Outstanding at End of 519,244 89,535 Period ING Hard Assets AUV at Beginning of Period $14.03 $16.20 $16.12 (1) AUV at End of Period $13.94 $14.03 $16.20 Number of Accumulation Units Outstanding at End of 436,185 144,214 57,353 Period ING International Equity AUV at Beginning of Period $8.70 $11.43 $15.02 (6) AUV at End of Period $7.19 $8.70 $11.43 Number of Accumulation Units Outstanding at End of 1,834,152 1,624,384 1,257,278 Period ING Janus Growth and Income AUV at Beginning of Period $8.87 $9.94 $10.00 (3) AUV at End of Period $7.04 $8.87 $9.94 Number of Accumulation Units Outstanding at End of 2,831,574 1,698,201 170,460 Period ING Janus Special Equity AUV at Beginning of Period $8.32 $8.89 $10.00 (3) AUV at End of Period $6.07 $8.32 $8.89 Number of Accumulation Units Outstanding at End of 610,059 538,057 76,347 Period ING Jennison Equity Opportunities AUV at Beginning of Period $21.46 $25.03 $29.44 (1) AUV at End of Period $14.96 $21.46 $25.03 Number of Accumulation Units Outstanding at End of 1,951,375 1,862,499 1,210,622 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.22 Number of Accumulation Units Outstanding at End of 106,211 Period Access - 131180 ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.84 Number of Accumulation Units Outstanding at End of 209,858 Period ING Limited Maturity Bond AUV at Beginning of Period $18.88 $17.60 $16.56 (1) AUV at End of Period $19.95 $18.88 $17.60 Number of Accumulation Units Outstanding at End of 3,840,533 2,416,706 849,473 Period ING Liquid Assets AUV at Beginning of Period $15.67 $15.31 $14.70 (1) AUV at End of Period $15.66 $15.67 $15.31 Number of Accumulation Units Outstanding at End of 10,877,063 12,017,917 7,270,477 Period ING Marsico Growth AUV at Beginning of Period $15.10 $21.96 $29.12 (1) AUV at End of Period $10.48 $15.10 $21.96 Number of Accumulation Units Outstanding at End of 5,599,657 6,476,226 4,730,311 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.37 Number of Accumulation Units Outstanding at End of 91,571 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.97 Number of Accumulation Units Outstanding at End of 27,664 Period ING MFS Mid Cap Growth AUV at Beginning of Period $31.73 $42.16 $38.56 (1) AUV at End of Period $16.01 $31.73 $42.16 Number of Accumulation Units Outstanding at End of 3,084,372 3,144,090 1,992,588 Period ING MFS Research AUV at Beginning of Period $20.35 $26.30 $26.94 (1) AUV at End of Period $15.07 $20.35 $26.30 Number of Accumulation Units Outstanding at End of 2,475,752 2,427,133 1,500,906 Period ING MFS Total Return AUV at Beginning of Period $20.47 $20.68 $17.46 (1) AUV at End of Period $19.15 $20.47 $20.68 Number of Accumulation Units Outstanding at End of 4,962,123 3,612,214 1,350,560 Period ING PIMCO Core Bond AUV at Beginning of Period $11.81 $11.70 $11.44 (1) AUV at End of Period $12.65 $11.81 $11.70 Number of Accumulation Units Outstanding at End of 4,516,490 1,400,922 381,139 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.64 $11.59 $10.00 (1) AUV at End of Period $8.54 $11.64 $11.59 Number of Accumulation Units Outstanding at End of 4,205,676 3,977,598 1,200,520 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.62 $11.26 $10.00 (1) AUV at End of Period $8.06 $10.62 $11.26 Number of Accumulation Units Outstanding at End of 1,674,081 1,224,296 313,828 Period Access - 131180 ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $27.99 $25.84 $20.89 (1) AUV at End of Period $27.72 $27.99 $25.84 Number of Accumulation Units Outstanding at End of 4,380,117 2,279,908 507,008 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $23.71 $23.74 $20.18 (1) AUV at End of Period $20.28 $23.71 $23.74 Number of Accumulation Units Outstanding at End of 2,137,260 1,599,946 470,889 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of 115,969 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.84 Number of Accumulation Units Outstanding at End of 255,201 Period ING Van Kampen Growth & Income AUV at Beginning of Period $21.53 $24.81 $25.53 (1) AUV at End of Period $18.08 $21.53 $24.81 Number of Accumulation Units Outstanding at End of 1,951,607 1,737,220 1,073,372 Period ING Van Kampen Real Estate AUV at Beginning of Period $28.18 $26.44 $20.64 (1) AUV at End of Period $27.82 $28.18 $26.44 Number of Accumulation Units Outstanding at End of 947,490 414,152 211,380 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.64 Number of Accumulation Units Outstanding at End of 665,314 Period ING VP Growth Opportunities AUV at Beginning of Period $7.79 $10.00 (4) AUV at End of Period $5.26 $7.79 Number of Accumulation Units Outstanding at End of 297,926 83,427 Period ING VP MagnaCap AUV at Beginning of Period $9.35 $10.00 (4) AUV at End of Period $7.10 $9.35 Number of Accumulation Units Outstanding at End of 307,643 91,138 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.33 $10.00 (4) AUV at End of Period $4.62 $8.33 Number of Accumulation Units Outstanding at End of 1,042,746 268,186 Period ING VP Worldwide Growth AUV at Beginning of Period $7.02 $8.75 $10.00 (2) AUV at End of Period $5.20 $7.02 $8.75 Number of Accumulation Units Outstanding at End of 859,281 479,640 169,871 Period Access - 131180 Invesco VIF Health Sciences AUV at Beginning of Period $10.27 $10.00 (5) AUV at End of Period $7.65 $10.27 Number of Accumulation Units Outstanding at End of 481,393 38,465 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.44 Number of Accumulation Units Outstanding at End of 132,019 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.36 $10.00 (5) AUV at End of Period $7.85 $9.36 Number of Accumulation Units Outstanding at End of 491,869 37,443 Period Invesco VIF--Utilities AUV at Beginning of Period $8.11 $10.00 (5) AUV at End of Period $6.37 $8.11 Number of Accumulation Units Outstanding at End of 152,798 8,161 Period Jennison Portfolio AUV at Beginning of Period $6.29 $7.84 $10.00 (2) AUV at End of Period $4.27 $6.29 $7.84 Number of Accumulation Units Outstanding at End of 1,366,874 1,272,891 242,694 Period Pimco High Yield Portfolio AUV at Beginning of Period $10.08 $10.00 $10.16 (1) AUV at End of Period $9.82 $10.08 $10.00 Number of Accumulation Units Outstanding at End of 3,925,320 2,641,283 908,512 Period Pimco StocksPLUS Growth & Income AUV at Beginning of Period $10.21 $11.70 $12.52 (1) AUV at End of Period $8.03 $10.21 $11.70 Number of Accumulation Units Outstanding at End of 2,241,996 2,222,192 1,178,840 Period Pioneer Fund VCT AUV at Beginning of Period $9.38 $10.00 (5) AUV at End of Period $7.47 $9.38 Number of Accumulation Units Outstanding at End of 295,688 5,663 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.36 $10.71 Number of Accumulation Units Outstanding at End of 728,410 98,183 Period ProFund VP Bull AUV at Beginning of Period $8.89 $10.00 (4) AUV at End of Period $6.66 $8.89 Number of Accumulation Units Outstanding at End of 1,271,888 267,236 Period ProFund VP Europe 30 AUV at Beginning of Period $8.26 $10.00 (4) AUV at End of Period $6.05 $8.26 Number of Accumulation Units Outstanding at End of 1,365,500 568,994 Period ProFund VP Small Cap AUV at Beginning of Period $9.43 $10.00 (4) AUV at End of Period $7.21 $9.43 Number of Accumulation Units Outstanding at End of 1,133,339 403,215 Period ccess - 131180 SP Jennison International Growth AUV at Beginning of Period $5.41 $8.56 $10.00 (3) AUV at End of Period $4.11 $5.41 $8.56 Number of Accumulation Units Outstanding at End of 519,700 385,101 44,024 Period FOOTNOTES (1) Fund First Available during October 1993 (2) Fund First Available during January 1995 (3) Fund First Available during October 1995 (4) Fund First Available during January 1996 (5) Fund First Available during September 1996 (6) Fund First Available during February 1997 (7) Fund First Available during May 1998 (8) Fund First Available during October 2000 (9) Fund First Available during May 2001 2002 2001 2000 1999 1998 1997 1996 1995 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.55% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.99 $10.00 (11) AUV at End of Period $7.33 $10.99 Number of Accumulation Units Outstanding at End of 43,074 77,645 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.58 $10.00 (12) AUV at End of Period $7.82 $9.58 Number of Accumulation Units Outstanding at End of 185,665 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.27 $10.00 (12) AUV at End of Period $6.36 $9.27 Number of Accumulation Units Outstanding at End of 219,815 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.57 $18.78 $21.78 $14.16 $14.26 $11.76 $10.01 $10.00 (1) AUV at End of Period $9.80 $14.57 $18.78 $21.78 $14.16 $14.26 $11.76 $10.01 Number of Accumulation Units Outstanding at End of 1,999,022 2,640,192 3,565,531 2,655,079 1,731,615 1,361,070 968,694 152,633 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.51 $17.09 $20.94 $16.94 $15.36 $12.47 $10.00 (3) AUV at End of Period $9.99 $14.51 $17.09 $20.94 $16.94 $15.36 $12.47 Number of Accumulation Units Outstanding at End of 4,478,808 5,716,524 6,622,519 6,210,698 3,474,460 1,288,333 173,758 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.99 $10.53 $10.00 (7) AUV at End of Period $7.50 $9.99 $10.53 Number of Accumulation Units Outstanding at End of 2,128,387 1,783,085 770,213 Period ING Capital Guardian Managed Global AUV at Beginning of Period $17.30 $19.94 $23.71 $14.75 $11.58 $10.49 $9.49 $9.24 (1) AUV at End of Period $13.59 $17.30 $19.94 $23.71 $14.75 $11.58 $10.49 $9.49 Number of Accumulation Units Outstanding at End of 2,796,758 3,208,566 3,496,637 3,306,922 3,354,682 2,721,529 1,375,023 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.71 $18.26 $22.68 $15.30 $12.84 $11.82 $10.00 $10.00 (2) AUV at End of Period $13.00 $17.71 $18.26 $22.68 $15.30 $12.84 $11.82 $10.00 Number of Accumulation Units Outstanding at End of 4,048,976 4,908,965 5,436,275 4,514,345 3,086,639 2,049,765 1,316,663 -- Period Access - 131180 ING Developing World AUV at Beginning of Period $7.04 $7.55 $11.58 $7.27 $10.00 (6) AUV at End of Period $6.19 $7.04 $7.55 $11.58 $7.27 Number of Accumulation Units Outstanding at End of 1,372,716 1,610,890 991,863 926,115 82,414 Period ING Eagle Asset Value Equity AUV at Beginning of Period $18.15 $19.29 $18.01 $18.20 $18.20 $14.53 $13.34 $12.40 (1) AUV at End of Period $14.82 $18.15 $19.29 $18.01 $18.20 $18.20 $14.53 $13.34 Number of Accumulation Units Outstanding at End of 2,133,007 2,428,124 2,589,777 2,709,066 2,736,311 1,793,172 1,052,064 179,453 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.08 $9.87 $10.00 (9) AUV at End of Period $7.21 $9.08 $9.87 Number of Accumulation Units Outstanding at End of 504,098 261,790 185,852 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (13) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 (14) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.61 $10.00 (10) AUV at End of Period $4.64 $7.61 Number of Accumulation Units Outstanding at End of 109,776 36,477 Period ING Hard Assets AUV at Beginning of Period $13.87 $16.03 $17.09 $14.07 $20.29 $19.42 $14.80 $14.57 (1) AUV at End of Period $13.76 $13.87 $16.03 $17.09 $14.07 $20.29 $19.42 $14.80 Number of Accumulation Units Outstanding at End of 561,650 458,820 598,435 696,930 609,087 637,191 341,711 26,605 Period ING International Equity AUV at Beginning of Period $8.65 $11.37 $15.59 $10.32 $9.95 $10.34 $10.00 (5) AUV at End of Period $7.14 $8.65 $11.37 $15.59 $10.32 $9.95 $10.34 Number of Accumulation Units Outstanding at End of 1,745,092 2,043,470 2,474,741 1,959,321 680,861 36,098 Period ING Janus Growth and Income AUV at Beginning of Period $8.86 $9.94 $10.00 (9) AUV at End of Period $7.03 $8.86 $9.94 Number of Accumulation Units Outstanding at End of 719,851 470,484 88,531 Period ING Janus Special Equity AUV at Beginning of Period $8.31 $8.89 $10.00 (9) AUV at End of Period $6.06 $8.31 $8.89 Number of Accumulation Units Outstanding at End of 162,394 158,129 85,716 Period ING Jennison Equity Opportunities AUV at Beginning of Period $21.28 $24.85 $29.77 $24.26 $21.87 $17.22 $14.55 $14.16 (1) AUV at End of Period $14.82 $21.28 $24.85 $29.77 $24.26 $21.87 $17.22 $14.55 Number of Accumulation Units Outstanding at End of 2,915,536 3,688,603 4,174,489 3,839,680 2,787,732 1,772,316 1,106,359 326,610 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.22 Number of Accumulation Units Outstanding at End of 33,208 Period Access - 131180 ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.84 Number of Accumulation Units Outstanding at End of 31,084 Period ING Limited Maturity Bond AUV at Beginning of Period $18.69 $17.45 $16.45 $16.52 $15.70 $14.95 $14.56 $14.20 (1) AUV at End of Period $19.73 $18.69 $17.45 $16.45 $16.52 $15.70 $14.95 $14.56 Number of Accumulation Units Outstanding at End of 3,063,485 2,547,141 1,769,356 1,835,681 1,121,401 462,583 349,417 136,553 Period ING Liquid Assets AUV at Beginning of Period $15.54 $15.19 $14.55 $14.11 $13.65 $13.19 $12.76 $12.63 (1) AUV at End of Period $15.51 $15.54 $15.19 $14.55 $14.11 $13.65 $13.19 $12.76 Number of Accumulation Units Outstanding at End of 5,577,966 7,210,822 5,535,947 7,668,618 2,964,038 1,132,057 383,231 93,239 Period ING Marsico Growth AUV at Beginning of Period $15.01 $21.86 $28.46 $16.22 $12.99 $11.40 $10.00 (4) AUV at End of Period $10.41 $15.01 $21.86 $28.46 $16.22 $12.99 $11.40 Number of Accumulation Units Outstanding at End of 8,151,064 11,192,04113,563,138 11,168,535 2,452,150 763,169 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.36 Number of Accumulation Units Outstanding at End of 69,302 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.97 Number of Accumulation Units Outstanding at End of 18,057 Period ING MFS Mid Cap Growth AUV at Beginning of Period $31.50 $41.89 $39.34 $22.31 $18.45 $15.66 $13.19 $12.93 (3) AUV at End of Period $15.88 $31.50 $41.89 $39.34 $22.31 $18.45 $15.66 $13.19 Number of Accumulation Units Outstanding at End of 3,781,798 4,965,396 5,926,553 3,717,261 1,527,665 518,640 56,163 Period ING MFS Research AUV at Beginning of Period $20.21 $26.13 $27.80 $22.73 $18.77 $15.87 $13.07 $12.23 (4) AUV at End of Period $14.95 $20.21 $26.13 $27.80 $22.73 $18.77 $15.87 $13.07 Number of Accumulation Units Outstanding at End of 4,975,285 6,799,019 7,760,199 7,240,462 3,875,695 816,216 Period ING MFS Total Return AUV at Beginning of Period $20.33 $20.55 $17.91 $17.60 $16.02 $13.46 $12.03 $11.39 (4) AUV at End of Period $18.99 $20.33 $20.55 $17.91 $17.60 $16.02 $13.46 $12.03 Number of Accumulation Units Outstanding at End of 5,740,870 6,331,856 6,431,976 6,739,205 3,973,034 746,754 Period ING PIMCO Core Bond AUV at Beginning of Period $11.73 $11.63 $11.70 $13.00 $11.81 $11.91 $11.53 $11.18 (6) AUV at End of Period $12.55 $11.73 $11.63 $11.70 $13.00 $11.81 $11.91 $11.53 Number of Accumulation Units Outstanding at End of 2,142,595 813,599 490,810 382,608 119,924 310 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.62 $11.58 $10.00 (7) AUV at End of Period $8.51 $11.62 $11.58 Number of Accumulation Units Outstanding at End of 1,646,987 2,043,716 1,155,496 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.60 $11.25 $10.00 (7) AUV at End of Period $8.04 $10.60 $11.25 Number of Accumulation Units Outstanding at End of 590,391 533,884 198,869 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $27.67 $25.57 $21.29 $20.23 $19.40 $17.08 $14.91 $14.47 (1) AUV at End of Period $27.37 $27.67 $25.57 $21.29 $20.23 $19.40 $17.08 $14.91 Number of Accumulation Units Outstanding at End of 4,093,955 3,679,280 3,165,782 3,304,307 2,780,652 1,766,390 952,517 184,364 Period Access - 131180 ING T. Rowe Price Equity Income AUV at Beginning of Period $23.43 $23.49 $21.12 $21.61 $20.28 $17.54 $16.38 $15.78 (1) AUV at End of Period $20.03 $23.43 $23.49 $21.12 $21.61 $20.28 $17.54 $16.38 Number of Accumulation Units Outstanding at End of 2,226,228 2,377,259 2,237,388 2,523,887 1,980,778 1,485,966 1,117,238 370,515 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (12) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 36,457 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.84 Number of Accumulation Units Outstanding at End of 135,600 Period ING Van Kampen Growth & Income AUV at Beginning of Period $21.38 $24.67 $25.59 $22.43 $19.96 $15.62 $13.15 $12.09 (1) AUV at End of Period $17.94 $21.38 $24.67 $25.59 $22.43 $19.96 $15.62 $13.15 Number of Accumulation Units Outstanding at End of 6,933,409 8,520,621 9,797,232 10,160,317 7,386,288 3,706,709 1,663,079 300,820 Period ING Van Kampen Real Estate AUV at Beginning of Period $27.85 $26.16 $20.28 $21.42 $25.14 $20.79 $15.61 $14.76 (1) AUV at End of Period $27.47 $27.85 $26.16 $20.28 $21.42 $25.14 $20.79 $15.61 Number of Accumulation Units Outstanding at End of 784,788 715,123 738,551 742,364 914,501 897,320 384,928 61,143 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (12) AUV at End of Period $10.63 Number of Accumulation Units Outstanding at End of 290,354 Period ING VP Growth Opportunities AUV at Beginning of Period $7.78 $10.00 (10) AUV at End of Period $5.25 $7.78 Number of Accumulation Units Outstanding at End of 134,512 19,161 Period ING VP MagnaCap AUV at Beginning of Period $9.34 $10.00 (10) AUV at End of Period $7.08 $9.34 Number of Accumulation Units Outstanding at End of 20,062 7,517 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.32 $10.00 (10) AUV at End of Period $4.61 $8.32 Number of Accumulation Units Outstanding at End of 139,362 61,322 Period ING VP Worldwide Growth AUV at Beginning of Period $7.01 $8.75 $10.00 (8) AUV at End of Period $5.19 $7.01 $8.75 Number of Accumulation Units Outstanding at End of 142,058 112,981 21,575 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.26 $10.00 (11) AUV at End of Period $7.63 $10.26 Number of Accumulation Units Outstanding at End of 166,543 110,902 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (12) AUV at End of Period $8.43 Number of Accumulation Units Outstanding at End of 28,020 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.36 $10.00 (11) AUV at End of Period $7.84 $9.36 Number of Accumulation Units Outstanding at End of 117,511 23,862 Period Access - 131180 Invesco VIF--Utilities AUV at Beginning of Period $8.10 $10.00 (11) AUV at End of Period $6.36 $8.10 Number of Accumulation Units Outstanding at End of 86,524 18,795 Period Jennison Portfolio AUV at Beginning of Period $6.28 $7.84 $10.00 (11) AUV at End of Period $4.26 $6.28 $7.84 Number of Accumulation Units Outstanding at End of 322,010 417,346 64,129 Period Pimco High Yield Portfolio AUV at Beginning of Period $10.04 $9.97 $10.21 $10.07 $10.00 (6) AUV at End of Period $9.77 $10.04 $9.97 $10.21 $10.07 Number of Accumulation Units Outstanding at End of 3,053,446 3,198,237 3,158,188 3,194,935 1,066,219 Period Pimco StocksPLUS Growth & Income AUV at Beginning of Period $10.18 $11.67 $13.10 $11.10 $10.00 (6) AUV at End of Period $7.99 $10.18 $11.67 $13.10 $11.10 Number of Accumulation Units Outstanding at End of 3,392,261 4,054,658 4,659,705 4,371,570 942,738 Period Pioneer Fund VCT AUV at Beginning of Period $9.38 $10.00 (11) AUV at End of Period $7.46 $9.38 Number of Accumulation Units Outstanding at End of 144,234 14,633 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (11) AUV at End of Period $9.35 $10.71 Number of Accumulation Units Outstanding at End of 509,210 27,109 Period ProFund VP Bull AUV at Beginning of Period $8.89 $10.00 (10) AUV at End of Period $6.65 $8.89 Number of Accumulation Units Outstanding at End of 194,394 256,467 Period ProFund VP Europe 30 AUV at Beginning of Period $8.26 $10.00 (10) AUV at End of Period $6.04 $8.26 Number of Accumulation Units Outstanding at End of 156,756 5,726 Period ProFund VP Small Cap AUV at Beginning of Period $9.42 $10.00 (10) AUV at End of Period $7.19 $9.42 Number of Accumulation Units Outstanding at End of 269,440 67,787 Period SP Jennison International Growth AUV at Beginning of Period $5.40 $8.56 $10.00 (9) AUV at End of Period $4.10 $5.40 $8.56 Number of Accumulation Units Outstanding at End of 120,333 101,972 64,843 Period (1) Fund First Available during October 1995 (2) Fund First Available during January 1996 (3) Fund First Available during September 1996 (4) Fund First Available during February 1997 (5) Fund First Available during October 1997 (6) Fund First Available during May 1998 (7) Fund First Available during February 2000 (8) Fund First Available during May 2000 (9) Fund First Available during October 2000 (10) Fund First Available during May 2001 (11) Fund First Available during November 2001 (12) Fund First Available during May 2002 (13) Fund First Available during September 2002 (14) Fund First Available during December 2002 2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.60% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.99 $10.00 (5) AUV at End of Period $7.32 $10.99 Number of Accumulation Units Outstanding at End of 25,793 1,821 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.58 $10.00 (7) AUV at End of Period $7.81 $9.58 Number of Accumulation Units Outstanding at End of 70,102 -- Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.26 $10.00 (7) AUV at End of Period $6.35 $9.26 Number of Accumulation Units Outstanding at End of 69,148 -- Period Galaxy VIP Asset Allocation AUV at Beginning of Period $9.79 $10.76 $10.51 AUV at End of Period $8.10 $9.79 $10.76 Number of Accumulation Units Outstanding at End of 7,686 9,458 6,792 Period Galaxy VIP Equity Fund AUV at Beginning of Period $9.17 $11.38 $11.52 AUV at End of Period $6.53 $9.17 $11.38 Number of Accumulation Units Outstanding at End of 2,533 3,013 3,426 Period Galaxy VIP Growth & Income AUV at Beginning of Period $10.35 $10.96 $10.26 AUV at End of Period $7.51 $10.35 $10.96 Number of Accumulation Units Outstanding at End of 942 1,438 -- Period Galaxy VIP Quality Plus Bond AUV at Beginning of Period $11.65 $11.02 $9.95 AUV at End of Period $12.65 $11.65 $11.02 Number of Accumulation Units Outstanding at End of 1,265 959 -- Period Galaxy VIP Small Company Growth AUV at Beginning of Period $13.08 $13.32 $15.06 AUV at End of Period $8.63 $13.08 $13.32 Number of Accumulation Units Outstanding at End of 507 973 466 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.50 $18.70 $21.56 (1) AUV at End of Period $9.75 $14.50 $18.70 Number of Accumulation Units Outstanding at End of 748,019 1,052,847 1,149,145 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.47 $17.04 $20.01 (1) AUV at End of Period $9.96 $14.47 $17.04 Number of Accumulation Units Outstanding at End of 749,731 826,424 740,611 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.98 $10.53 $10.00 (1) AUV at End of Period $7.48 $9.98 $10.53 Number of Accumulation Units Outstanding at End of 1,328,529 1,370,681 942,003 Period ING Capital Guardian Managed Global AUV at Beginning of Period $17.19 $19.83 $22.04 (1) AUV at End of Period $13.50 $17.19 $19.83 Number of Accumulation Units Outstanding at End of 629,168 726,954 648,150 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.66 $18.21 $23.54 (1) AUV at End of Period $12.95 $17.66 $18.21 Number of Accumulation Units Outstanding at End of 1,000,667 1,205,577 1,058,396 Period ING Developing World AUV at Beginning of Period $7.02 $7.54 $11.63 (1) AUV at End of Period $6.17 $7.02 $7.54 Number of Accumulation Units Outstanding at End of 474,427 673,091 609,636 Period ING Eagle Asset Value Equity AUV at Beginning of Period $18.06 $19.20 $17.35 (1) AUV at End of Period $14.74 $18.06 $19.20 Number of Accumulation Units Outstanding at End of 259,140 252,946 143,195 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.07 $9.87 $10.00 (3) AUV at End of Period $7.20 $9.07 $9.87 Number of Accumulation Units Outstanding at End of 239,616 264,852 80,992 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (8) AUV at End of Period $10.07 Number of Accumulation Units Outstanding at End of 1,558,992 Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.61 $10.00 (4) AUV at End of Period $4.63 $7.61 Number of Accumulation Units Outstanding at End of 18,672 12,070 Period ING Hard Assets AUV at Beginning of Period $13.76 $15.91 $15.85 (1) AUV at End of Period $13.64 $13.76 $15.91 Number of Accumulation Units Outstanding at End of 62,771 22,850 17,608 Period ING International Equity AUV at Beginning of Period $8.62 $11.34 $14.93 (6) AUV at End of Period $7.11 $8.62 $11.34 Number of Accumulation Units Outstanding at End of 700,470 812,676 804,897 Period ING Janus Growth and Income AUV at Beginning of Period $8.85 $9.94 $10.00 (3) AUV at End of Period $7.02 $8.85 $9.94 Number of Accumulation Units Outstanding at End of 315,170 295,864 128,409 Period ING Janus Special Equity AUV at Beginning of Period $8.30 $8.88 $10.00 (3) AUV at End of Period $6.05 $8.30 $8.88 Number of Accumulation Units Outstanding at End of 123,276 132,268 66,473 Period Access - 131180 ING Jennison Equity Opportunities AUV at Beginning of Period $21.15 $24.70 $29.09 (1) AUV at End of Period $14.72 $21.15 $24.70 Number of Accumulation Units Outstanding at End of 692,997 938,385 847,242 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.21 Number of Accumulation Units Outstanding at End of 4,278 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.83 Number of Accumulation Units Outstanding at End of 14,675 Period ING Limited Maturity Bond AUV at Beginning of Period $18.51 $17.29 $16.28 (1) AUV at End of Period $19.53 $18.51 $17.29 Number of Accumulation Units Outstanding at End of 629,611 497,060 321,370 Period ING Liquid Assets AUV at Beginning of Period $15.36 $15.03 $14.45 (1) AUV at End of Period $15.33 $15.36 $15.03 Number of Accumulation Units Outstanding at End of 2,297,033 2,858,557 2,183,030 Period ING Marsico Growth AUV at Beginning of Period $14.97 $21.80 $28.95 (1) AUV at End of Period $10.37 $14.97 $21.80 Number of Accumulation Units Outstanding at End of 2,302,847 3,005,289 3,020,949 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.36 Number of Accumulation Units Outstanding at End of 22,198 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.96 Number of Accumulation Units Outstanding at End of 755 Period ING MFS Mid Cap Growth AUV at Beginning of Period $31.38 $41.76 $38.25 (1) AUV at End of Period $15.81 $31.38 $41.76 Number of Accumulation Units Outstanding at End of 1,067,108 1,323,824 1,290,685 Period ING MFS Research AUV at Beginning of Period $20.13 $26.05 $26.72 (1) AUV at End of Period $14.88 $20.13 $26.05 Number of Accumulation Units Outstanding at End of 838,520 1,029,431 973,963 Period ING MFS Total Return AUV at Beginning of Period $20.25 $20.48 $17.32 (1) AUV at End of Period $18.91 $20.25 $20.48 Number of Accumulation Units Outstanding at End of 859,682 856,471 597,315 Period Access - 131180 ING PIMCO Core Bond AUV at Beginning of Period $11.68 $11.59 $11.35 (1) AUV at End of Period $12.49 $11.68 $11.59 Number of Accumulation Units Outstanding at End of 689,475 227,627 150,099 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.60 $11.57 $10.00 (1) AUV at End of Period $8.50 $11.60 $11.57 Number of Accumulation Units Outstanding at End of 957,912 1,200,300 819,316 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.59 $11.24 $10.00 (1) AUV at End of Period $8.02 $10.59 $11.24 Number of Accumulation Units Outstanding at End of 330,088 353,861 202,765 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $27.45 $25.38 $20.54 (1) AUV at End of Period $27.14 $27.45 $25.38 Number of Accumulation Units Outstanding at End of 639,977 495,196 185,069 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $23.25 $23.31 $19.85 (1) AUV at End of Period $19.86 $23.25 $23.31 Number of Accumulation Units Outstanding at End of 375,191 398,072 225,138 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 16,318 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.83 Number of Accumulation Units Outstanding at End of 27,705 Period ING Van Kampen Growth & Income AUV at Beginning of Period $21.26 $24.54 $25.28 (1) AUV at End of Period $17.83 $21.26 $24.54 Number of Accumulation Units Outstanding at End of 478,280 529,164 440,779 Period ING Van Kampen Real Estate AUV at Beginning of Period $27.63 $25.97 $20.30 (1) AUV at End of Period $27.24 $27.63 $25.97 Number of Accumulation Units Outstanding at End of 149,145 107,794 86,644 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.63 Number of Accumulation Units Outstanding at End of 48,128 Period ING VP Growth Opportunities AUV at Beginning of Period $7.78 $10.00 (4) AUV at End of Period $5.24 $7.78 Number of Accumulation Units Outstanding at End of 30,250 17,747 Period ING VP MagnaCap AUV at Beginning of Period $9.34 $10.00 (4) AUV at End of Period $7.08 $9.34 Number of Accumulation Units Outstanding at End of 17,210 4,692 Period Access - 131180 ING VP SmallCap Opportunities AUV at Beginning of Period $8.32 $10.00 (4) AUV at End of Period $4.61 $8.32 Number of Accumulation Units Outstanding at End of 48,063 59,196 Period ING VP Worldwide Growth AUV at Beginning of Period $7.00 $8.74 $10.00 (2) AUV at End of Period $5.18 $7.00 $8.74 Number of Accumulation Units Outstanding at End of 116,508 135,472 85,307 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.26 $10.00 (5) AUV at End of Period $7.63 $10.26 Number of Accumulation Units Outstanding at End of 35,810 3,133 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.43 Number of Accumulation Units Outstanding at End of 1,464 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.36 $10.00 (5) AUV at End of Period $7.83 $9.36 Number of Accumulation Units Outstanding at End of 44,676 8,703 Period Invesco VIF--Utilities AUV at Beginning of Period $8.10 $10.00 (5) AUV at End of Period $6.35 $8.10 Number of Accumulation Units Outstanding at End of 18,052 960 Period Jennison Portfolio AUV at Beginning of Period $6.27 $7.84 $10.00 (2) AUV at End of Period $4.25 $6.27 $7.84 Number of Accumulation Units Outstanding at End of 222,330 244,934 92,165 Period Pimco High Yield Portfolio AUV at Beginning of Period $10.03 $9.96 $10.13 (1) AUV at End of Period $9.75 $10.03 $9.96 Number of Accumulation Units Outstanding at End of 657,118 673,993 498,509 Period Pimco StocksPLUS Growth & Income AUV at Beginning of Period $10.16 $11.66 $12.49 (1) AUV at End of Period $7.97 $10.16 $11.66 Number of Accumulation Units Outstanding at End of 562,721 614,802 624,891 Period Pioneer Fund VCT AUV at Beginning of Period $9.38 $10.00 (5) AUV at End of Period $7.45 $9.38 Number of Accumulation Units Outstanding at End of 62,576 4,756 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.34 $10.71 Number of Accumulation Units Outstanding at End of 113,225 4,960 Period Access - 131180 ProFund VP Bull AUV at Beginning of Period $8.88 $10.00 (4) AUV at End of Period $6.64 $8.88 Number of Accumulation Units Outstanding at End of 117,319 117,895 Period ProFund VP Europe 30 AUV at Beginning of Period $8.26 $10.00 (4) AUV at End of Period $6.03 $8.26 Number of Accumulation Units Outstanding at End of 42,457 4,340 Period ProFund VP Small Cap AUV at Beginning of Period $9.42 $10.00 (4) AUV at End of Period $7.19 $9.42 Number of Accumulation Units Outstanding at End of 72,217 43,781 Period SP Jennison International Growth AUV at Beginning of Period $5.40 $8.56 $10.00 (3) AUV at End of Period $4.10 $5.40 $8.56 Number of Accumulation Units Outstanding at End of 46,748 42,844 58,710 Period Footnotes (1) Fund First Available during October 1993 (2) Fund First Available during January 1995 (3) Fund First Available during October 1995 (4) Fund First Available during January 1996 (5) Fund First Available during September 1996 (6) Fund First Available during February 1997 (7) Fund First Available during May 1998 (8) Fund First Available during October 2000 (9) Fund First Available during May 2001 2002 2001 2000 1999 1998 1997 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.70% AIM VI Dent Demographic Trends AUV at Beginning of $10.99 $10.00 (8) Period AUV at End of Period $7.32 $10.99 Number of Accumulation Units Outstanding at End of 94,533 51,753 Period Fidelity(R)VIP Equity--Income AUV at Beginning of $9.58 (9) Period AUV at End of Period $7.80 Number of Accumulation Units Outstanding at End of 338,456 Period Fidelity(R) VIP Growth AUV at Beginning of $9.26 (9) Period AUV at End of Period $6.34 Number of Accumulation Units Outstanding at End of 256,321 Period Galaxy VIP Asset Allocation AUV at Beginning of $9.77 $10.74 $10.70 Period AUV at End of Period $8.07 $9.77 $10.74 $10.70 Number of Accumulation Units Outstanding at End of 3,095 17,516 18,669 7,153 Period Access - 131180 Galaxy VIP Equity Fund AUV at Beginning of $9.14 $11.37 $11.78 Period AUV at End of Period $6.50 $9.14 $11.37 $11.78 Number of Accumulation Units Outstanding at End of 2,843 5,671 6,673 4,420 Period Galaxy VIP Growth & Income AUV at Beginning of $10.33 $10.94 $10.54 Period AUV at End of Period $7.49 $10.33 $10.94 $10.54 Number of Accumulation Units Outstanding at End of 2,055 3,508 3,904 493 Period Galaxy VIP Quality Plus Bon AUV at Beginning of $11.62 $11.01 $9.92 Period AUV at End of Period $12.61 $11.62 $11.01 $9.92 Number of Accumulation Units Outstanding at End of 262 -- -- -- Period Galaxy VIP Small Co. Growth AUV at Beginning of $13.05 $13.30 $14.86 Period AUV at End of Period $13.05 $13.30 $14.86 Number of Accumulation Units Outstanding at End of -- -- -- -- Period ING AIM Mid Cap Growth AUV at Beginning of $14.41 $18.60 $21.61 $14.07 $14.20 $14.04 (1) Period AUV at End of Period $9.68 $14.41 $18.60 $21.61 $14.07 $14.20 Number of Accumulation Units Outstanding at End of 2,578,304 3,613,809 4,283,690 3,050,566 827,478 49,579 Period ING Alliance Mid Cap Growth AUV at Beginning of $14.38 $16.96 $20.82 $16.87 $15.32 $15.92 (1) Period AUV at End of Period $9.89 $14.38 $16.96 $20.82 $16.87 $15.32 Number of Accumulation Units Outstanding at End of 6,139,683 7,379,706 8,274,067 7,450,250 2,741,016 253,937 Period ING Capital Guardian Large Cap Value AUV at Beginning of $9.96 $10.52 $10.00 (4) Period AUV at End of Period $7.46 $9.96 $10.52 Number of Accumulation Units Outstanding at End of 4,117,977 3,260,905 961,611 Period ING Capital Guardian Managed Global AUV at Beginning of $17.03 $19.67 $23.42 $14.59 $11.47 $12.34 (1) Period AUV at End of Period $13.36 $17.03 $19.67 $23.42 $14.59 $11.47 Number of Accumulation Units Outstanding at End of 1,143,491 922,271 565,653 139,357 67,979 3,479 Period ING Capital Guardian Small Cap AUV at Beginning of $17.55 $18.12 $22.55 $15.23 $12.81 $13.78 (1) Period AUV at End of Period $12.86 $17.55 $18.12 $22.55 $15.23 $12.81 Number of Accumulation Units Outstanding at End of 4,163,678 4,881,594 4,812,017 3,698,983 1,326,706 106,014 Period ING Developing World AUV at Beginning of $7.00 $7.51 $11.54 $7.26 $10.00 (2) Period AUV at End of Period $6.14 $7.00 $7.51 $11.54 $7.26 Number of Accumulation Units Outstanding at End of 1,283,289 1,380,292 1,788,602 1,344,877 111,872 Period ING Eagle Asset Value Equity AUV at Beginning of $17.92 $19.08 $17.84 $18.06 $18.09 $18.67 (1) Period AUV at End of Period $14.61 $17.92 $19.08 $17.84 $18.06 $18.09 Number of Accumulation Units Outstanding at End of 2,165,514 2,414,646 2,230,349 1,956,244 1,201,314 118,902 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of $9.06 $9.87 $10.00 (6) Period AUV at End of Period $7.18 $9.06 $9.87 Number of Accumulation Units Outstanding at End of 1,210,499 722,319 285,263 Period Access - 131180 ING GET Fund -- Series T AUV at Beginning of Period $ 10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of $7.60 $10.00 (7) Period AUV at End of Period $4.63 $7.60 Number of Accumulation Units Outstanding at End of 151,985 87,897 Period ING Hard Assets AUV at Beginning of $13.58 $15.72 $16.78 $13.84 $19.99 $23.34 (1) Period AUV at End of Period $13.45 $13.58 $15.72 $16.78 $13.84 $19.99 Number of Accumulation Units Outstanding at End of 968,858 474,626 861,668 565,254 210,821 13,179 Period ING International Equity AUV at Beginning of $8.57 $11.29 $15.50 $10.27 $9.92 $11.60 (1) Period AUV at End of Period $7.07 $8.57 $11.29 $15.50 $10.27 $9.92 Number of Accumulation Units Outstanding at End of 4,107,916 4,631,066 5,326,265 4,663,701 1,736,713 72,955 Period ING Janus Growth and Income AUV at Beginning of $8.84 $9.94 $10.00 (6) Period AUV at End of Period $7.00 $8.84 $9.94 Number of Accumulation Units Outstanding at End of 1,909,357 1,431,165 283,250 Period ING Janus Special Equity AUV at Beginning of $8.29 $8.88 $10.00 (6) Period AUV at End of Period $6.04 $8.29 $8.88 Number of Accumulation Units Outstanding at End of 327,690 389,304 131,190 Period ING Jennison Equity Opportunities AUV at Beginning of $20.94 $24.48 $29.38 $23.98 $21.65 $21.57 (1) Period AUV at End of Period $14.56 $20.94 $24.48 $29.38 $23.98 $21.65 Number of Accumulation Units Outstanding at End of 3,453,225 4,160,509 4,496,266 3,574,165 1,023,965 69,625 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of $10.00 (9) Period AUV at End of Period $8.21 Number of Accumulation Units Outstanding at End of 52,606 Period ING JP Morgan Fleming SmallCap AUV at Beginning of $10.00 (9) Period AUV at End of Period $7.83 Number of Accumulation Units Outstanding at End of 166,809 Period ING Limited Maturity Bond AUV at Beginning of $18.30 $17.11 $16.15 $16.25 $15.47 $15.29 (1) Period AUV at End of Period $19.29 $18.30 $17.11 $16.15 $16.25 $15.47 Number of Accumulation Units Outstanding at End of 4,436,723 3,653,891 2,442,971 2,267,799 937,378 19,171 Period Access - 131180 ING Liquid Assets AUV at Beginning of $15.21 $14.90 $14.29 $13.88 $13.44 $13.33 (1) Period AUV at End of Period $15.17 $15.21 $14.90 $14.29 $13.88 $13.44 Number of Accumulation Units Outstanding at End of 8,964,021 10,759,451 7,933,970 11,002,422 3,069,965 370,411 Period ING Marsico Growth AUV at Beginning of $14.88 $21.70 $28.29 $16.16 $12.96 $15.10 (1) Period AUV at End of Period $10.30 $14.88 $21.70 $28.29 $16.16 $12.96 Number of Accumulation Units Outstanding at End of 11,094,010 15,394,399 18,166,96415,200,893 2,354,359 238,200 Period ING Mercury Focus Value AUV at Beginning of $10.00 (9) Period AUV at End of Period $8.35 Number of Accumulation Units Outstanding at End of 94,260 Period ING Mercury Fundamental Growth AUV at Beginning of $10.00 (9) Period AUV at End of Period $7.96 Number of Accumulation Units Outstanding at End of 44,257 Period ING MFS Mid Cap Growth AUV at Beginning of $31.15 $41.50 $39.02 $22.17 $18.36 $18.79 (1) Period AUV at End of Period $15.68 $31.15 $41.50 $39.02 $22.17 $18.36 Number of Accumulation Units Outstanding at End of 4,651,810 5,852,720 6,423,422 4,433,020 1,235,725 48,347 Period ING MFS Research AUV at Beginning of $19.98 $25.89 $27.58 $22.59 $18.67 $19.15 (1) Period AUV at End of Period $14.76 $19.98 $25.89 $27.58 $22.59 $18.67 Number of Accumulation Units Outstanding at End of 6,172,512 7,706,339 8,763,560 8,143,208 3,674,201 162,677 Period ING MFS Total Return AUV at Beginning of $20.10 $20.35 $17.77 $17.49 $15.94 $15.68 (1) Period AUV at End of Period $18.75 $20.10 $20.35 $17.77 $17.49 $15.94 Number of Accumulation Units Outstanding at End of 8,722,390 9,559,263 9,095,577 9,101,946 3,874,736 152,264 Period ING PIMCO Core Bond AUV at Beginning of $11.60 $11.52 $11.60 $12.92 $11.75 $11.87 (1) Period AUV at End of Period $12.39 $11.60 $11.52 $11.60 $12.92 $11.75 Number of Accumulation Units Outstanding at End of 4,423,426 1,576,247 774,738 619,047 194,008 6,455 Period ING Salomon Brothers All Cap AUV at Beginning of $11.58 $11.56 $10.00 (4) Period AUV at End of Period $8.47 $11.58 $11.56 Number of Accumulation Units Outstanding at End of 3,652,428 3,995,359 1,620,720 Period ING Salomon Brothers Investors AUV at Beginning of $10.57 $11.23 $10.00 (4) Period AUV at End of Period $8.00 $10.57 $11.23 Number of Accumulation Units Outstanding at End of 1,371,277 1,410,056 234,838 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of $27.09 $25.07 $20.91 $19.90 $19.11 $18.96 (1) Period AUV at End of Period $26.76 $27.09 $25.07 $20.91 $19.90 $19.11 Number of Accumulation Units Outstanding at End of 5,387,391 4,693,130 3,237,449 3,118,319 1,727,706 108,930 Period ING T. Rowe Price Equity Income AUV at Beginning of $22.94 $23.03 $20.74 $21.26 $19.97 $19.99 (1) Period AUV at End of Period $19.58 $22.94 $23.03 $20.74 $21.26 $19.97 Number of Accumulation Units Outstanding at End of 3,360,009 3,203,914 2,552,793 2,294,951 744,367 35,954 Period Access - 131180 ING Van Kampen Equity Growth AUV at Beginning of $10.00 (9) Period AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 62,876 Period ING Van Kampen Global Franchise AUV at Beginning of $10.00 (9) Period AUV at End of Period $8.83 Number of Accumulation Units Outstanding at End of 222,557 Period ING Van Kampen Growth & Income AUV at Beginning of $21.08 $24.36 $25.31 $22.22 $19.81 $19.05 (1) Period AUV at End of Period $17.67 $21.08 $24.36 $25.31 $22.22 $19.81 Number of Accumulation Units Outstanding at End of 7,350,028 8,865,678 9,922,551 9,473,482 4,305,084 179,402 Period ING Van Kampen Real Estate AUV at Beginning of $27.27 $25.65 $19.92 $21.07 $24.76 $24.56 (1) Period AUV at End of Period $26.86 $27.27 $25.65 $19.92 $21.07 $24.76 Number of Accumulation Units Outstanding at End of 977,818 801,893 826,871 554,454 426,516 45,472 Period ING VP Bond Portfolio AUV at Beginning of $10.00 (9) Period AUV at End of Period $10.62 Number of Accumulation Units Outstanding at End of 707,083 Period ING VP Growth Opportunities AUV at Beginning of $7.78 $10.00 (7) Period AUV at End of Period $5.23 $7.78 Number of Accumulation Units Outstanding at End of 151,543 51,380 Period ING VP MagnaCap AUV at Beginning of $9.33 $10.00 (7) Period AUV at End of Period $7.07 $9.33 Number of Accumulation Units Outstanding at End of 125,575 76,114 Period ING VP SmallCap Opportunities AUV at Beginning of $8.31 $10.00 (7) Period AUV at End of Period $4.60 $8.31 Number of Accumulation Units Outstanding at End of 483,572 188,338 Period ING VP Worldwide Growth AUV at Beginning of $6.99 $8.74 $10.00 (5) Period AUV at End of Period $5.16 $6.99 $8.74 Number of Accumulation Units Outstanding at End of 361,647 247,751 28,853 Period Invesco VIF Health Sciences AUV at Beginning of $10.26 $10.00 (8) Period AUV at End of Period $7.62 $10.26 Number of Accumulation Units Outstanding at End of 493,958 367,187 Period Invesco VIF Leisure Fund AUV at Beginning of $10.00 (9) Period AUV at End of Period $8.42 Number of Accumulation Units Outstanding at End of 30,007 Period Access - 131180 Invesco VIF--Financial Services AUV at Beginning of $9.35 $10.00 (8) Period AUV at End of Period $7.82 $9.35 Number of Accumulation Units Outstanding at End of 182,156 45,911 Period Invesco VIF--Utilities AUV at Beginning of $8.10 $10.00 (8) Period AUV at End of Period $6.34 $8.10 Number of Accumulation Units Outstanding at End of 103,374 6,689 Period Jennison Portfolio AUV at Beginning of $6.26 $7.83 $10.00 (5) Period AUV at End of Period $4.24 $6.26 $7.83 Number of Accumulation Units Outstanding at End of 840,344 1,001,520 75,572 Period Pimco High Yield Portfolio AUV at Beginning of $9.99 $9.93 $10.19 $10.06 $10.00 (3) Period AUV at End of Period $9.70 $9.99 $9.93 $10.19 $10.06 Number of Accumulation Units Outstanding at End of 5,428,136 5,191,930 4,861,886 5,486,600 1,558,466 Period Pimco StocksPLUS Growth & Income AUV at Beginning of $10.12 $11.62 $13.06 $11.09 $10.00 (3) Period AUV at End of Period $7.94 $10.12 $11.62 $13.06 $11.09 Number of Accumulation Units Outstanding at End of 5,327,508 6,170,622 6,920,736 7,321,127 1,911,521 Period Pioneer Fund VCT II AUV at Beginning of $9.37 $10.00 (8) Period AUV at End of Period $7.44 $9.37 Number of Accumulation Units Outstanding at End of 297,005 27,155 Period Pioneer Mid Cap Value II AUV at Beginning of $10.71 $10.00 (8) Period AUV at End of Period $9.33 $10.71 Number of Accumulation Units Outstanding at End of 796,391 55,679 Period ProFund VP Bull AUV at Beginning of $8.88 $10.00 (7) Period AUV at End of Period $6.63 $8.88 Number of Accumulation Units Outstanding at End of 342,070 353,534 Period ProFund VP Europe 30 AUV at Beginning of $8.25 $10.00 (7) Period AUV at End of Period $6.02 $8.25 Number of Accumulation Units Outstanding at End of 181,953 13,357 Period ProFund VP Small Cap AUV at Beginning of $9.41 $10.00 (7) Period AUV at End of Period $7.17 $9.41 Number of Accumulation Units Outstanding at End of 499,606 128,298.0 Period SP Jennison Int. Growth AUV at Beginning of $5.39 $8.56 $10.00 (6) Period AUV at End of Period $4.09 $5.39 $8.56 Number of Accumulation Units Outstanding at End of 393,653 214,255 15,695 Period Access - 131180 FOOTNOTES (1) Fund First Available during October 1997 (2) Fund First Available during February 1998 (3) Fund First Available during May 1998 (4) Fund First Available during February 2000 (5) Fund First Available during May 2000 (6) Fund First Available during October 2000 (7) Fund First Available during May 2001 (8) Fund First Available during November 2001 (9) Fund First Available during May 2002 (10) Fund First Available during September 2002 (11) Fund First Available during December 2002 2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.75 % AIM VI Dent Demographic Trends AUV at Beginning of Period $10.99 $10.00 (5) AUV at End of Period $7.31 $10.99 Number of Accumulation Units Outstanding at End of 76,299 4,183 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.79 $9.57 Number of Accumulation Units Outstanding at End of 139,297 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.26 $10.00 (7) AUV at End of Period $6.34 $9.26 Number of Accumulation Units Outstanding at End of 138,235 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.37 $18.55 $21.42 (1) AUV at End of Period $9.64 $14.37 $18.55 Number of Accumulation Units Outstanding at End of 398,841 327,852 149,363 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.34 $16.92 $19.90 (1) AUV at End of Period $9.86 $14.34 $16.92 Number of Accumulation Units Outstanding at End of 616,586 395,575 116,196 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.95 $10.51 $10.00 (1) AUV at End of Period $7.45 $9.95 $10.51 Number of Accumulation Units Outstanding at End of 2,719,021 1,513,414 177,361 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.95 $19.59 $21.80 (1) AUV at End of Period $13.29 $16.95 $19.59 Number of Accumulation Units Outstanding at End of 592,153 361,440 138,197 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.49 $18.07 $23.40 (1) AUV at End of Period $12.82 $17.49 $18.07 Number of Accumulation Units Outstanding at End of 857,078 525,394 140,651 Period Access - 131180 ING Developing World AUV at Beginning of Period $6.98 $7.50 $11.60 (1) AUV at End of Period $6.13 $6.98 $7.50 Number of Accumulation Units Outstanding at End of 256,922 138,408 35,033 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.87 $19.03 $17.21 (1) AUV at End of Period $14.56 $17.87 $19.03 Number of Accumulation Units Outstanding at End of 307,027 174,298 10,293 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.05 $9.87 $10.00 (3) AUV at End of Period $7.17 $9.05 $9.87 Number of Accumulation Units Outstanding at End of 839,244 335,910 10,627 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (8) AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of 171,909 Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.60 $10.00 (4) AUV at End of Period $4.62 $7.60 Number of Accumulation Units Outstanding at End of 181,315 69,117 Period ING Hard Assets AUV at Beginning of Period $13.49 $15.62 $15.59 (1) AUV at End of Period $13.36 $13.49 $15.62 Number of Accumulation Units Outstanding at End of 120,308 30,794 18,820 Period ING International Equity AUV at Beginning of Period $8.55 $11.26 $14.84 (6) AUV at End of Period $7.04 $8.55 $11.26 Number of Accumulation Units Outstanding at End of 261,177 100,590 Period ING Janus Growth and Income AUV at Beginning of Period $8.83 $9.94 $10.00 (3) AUV at End of Period $6.99 $8.83 $9.94 Number of Accumulation Units Outstanding at End of 1,307,256 638,396 21,427 Period ING Janus Special Equity AUV at Beginning of Period $8.29 $8.88 $10.00 (3) AUV at End of Period $6.03 $8.29 $8.88 Number of Accumulation Units Outstanding at End of 292,321 197,279 5,866 Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.84 $24.38 $28.75 (1) AUV at End of Period $14.48 $20.84 $24.38 Number of Accumulation Units Outstanding at End of 577,200 446,323 109,154 Period Access - 131180 ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.21 Number of Accumulation Units Outstanding at End of 9,890 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.83 Number of Accumulation Units Outstanding at End of 72,176 Period ING Limited Maturity Bond AUV at Beginning of Period $18.15 $16.97 $16.01 (1) AUV at End of Period $19.12 $18.15 $16.97 Number of Accumulation Units Outstanding at End of 1,001,053 342,317 73,720 Period ING Liquid Assets AUV at Beginning of Period $15.06 $14.76 $14.21 (1) AUV at End of Period $15.01 $15.06 $14.76 Number of Accumulation Units Outstanding at End of 1,590,576 1,500,979 293,515 Period ING Marsico Growth AUV at Beginning of Period $14.84 $21.65 $28.78 (1) AUV at End of Period $10.27 $14.84 $21.65 Number of Accumulation Units Outstanding at End of 1,379,116 1,104,093 437,723 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.35 Number of Accumulation Units Outstanding at End of 16,519 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.96 Number of Accumulation Units Outstanding at End of 16,838 Period ING MFS Mid Cap Growth AUV at Beginning of Period $31.04 $41.37 $37.94 (1) AUV at End of Period $15.61 $31.04 $41.37 Number of Accumulation Units Outstanding at End of 911,394 577,692 162,554 Period ING MFS Research AUV at Beginning of Period $19.91 $25.81 $26.51 (1) AUV at End of Period $14.70 $19.91 $25.81 Number of Accumulation Units Outstanding at End of 792,216 588,415 160,258 Period ING MFS Total Return AUV at Beginning of Period $20.03 $20.29 $17.18 (1) AUV at End of Period $18.68 $20.03 $20.29 Number of Accumulation Units Outstanding at End of 1,806,441 934,682 102,750 Period ING PIMCO Core Bond AUV at Beginning of Period $11.56 $11.48 $11.26 (1) AUV at End of Period $12.34 $11.56 $11.48 Number of Accumulation Units Outstanding at End of 1,446,385 328,948 16,895 Period Access - 131180 ING Salomon Brothers All Cap AUV at Beginning of Period $11.57 $11.56 $10.00 (1) AUV at End of Period $8.46 $11.57 $11.56 Number of Accumulation Units Outstanding at End of 1,438,659 902,603 98,842 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.56 $11.23 $10.00 (1) AUV at End of Period $7.99 $10.56 $11.23 Number of Accumulation Units Outstanding at End of 534,293 384,799 11,867 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $26.91 $24.92 $20.20 (1) AUV at End of Period $26.57 $26.91 $24.92 Number of Accumulation Units Outstanding at End of 1,345,841 531,690 15,600 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $22.79 $22.89 $19.52 (1) AUV at End of Period $19.44 $22.79 $22.89 Number of Accumulation Units Outstanding at End of 773,224 387,753 30,890 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.80 Number of Accumulation Units Outstanding at End of 20,988 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.83 Number of Accumulation Units Outstanding at End of 53,323 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.99 $24.27 $25.04 (1) AUV at End of Period $17.58 $20.99 $24.27 Number of Accumulation Units Outstanding at End of 616,373 485,828 119,426 Period ING Van Kampen Real Estate AUV at Beginning of Period $27.09 $25.50 $19.96 (1) AUV at End of Period $26.67 $27.09 $25.50 Number of Accumulation Units Outstanding at End of 271,009 101,334 25,056 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.62 Number of Accumulation Units Outstanding at End of 218,867 Period ING VP Growth Opportunities AUV at Beginning of Period $7.77 $10.00 (4) AUV at End of Period $5.23 $7.77 Number of Accumulation Units Outstanding at End of 149,494 27,449 Period ING VP MagnaCap AUV at Beginning of Period $9.33 $10.00 (4) AUV at End of Period $7.06 $9.33 Number of Accumulation Units Outstanding at End of 102,496 24,770 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.31 $10.00 (4) AUV at End of Period $4.59 $8.31 Number of Accumulation Units Outstanding at End of 454,392 79,268 Period Access - 131180 ING VP Worldwide Growth AUV at Beginning of Period $6.98 $8.73 $10.00 (2) AUV at End of Period $5.16 $6.98 $8.73 Number of Accumulation Units Outstanding at End of 349,871 169,312 7,369 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.26 $10.00 (5) AUV at End of Period $7.61 $10.26 Number of Accumulation Units Outstanding at End of 271,523 16,016 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.42 Number of Accumulation Units Outstanding at End of 41,608 Period Invesco VIF Financial Services AUV at Beginning of Period $9.35 $10.00 (5) AUV at End of Period $7.82 $9.35 Number of Accumulation Units Outstanding at End of 110,702 3,522 Period Invesco VIF Utilities AUV at Beginning of Period $8.09 $10.00 (5) AUV at End of Period $6.34 $8.09 Number of Accumulation Units Outstanding at End of 94,266 3,860 Period Jennison Portfolio AUV at Beginning of Period $6.26 $7.83 $10.00 (2) AUV at End of Period $4.23 $6.26 $7.83 Number of Accumulation Units Outstanding at End of 565,738 273,112 19,630 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.97 $9.92 $10.10 (1) AUV at End of Period $9.68 $9.97 $9.92 Number of Accumulation Units Outstanding at End of 1,004,330 489,627 64,046 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $10.10 $11.61 $12.46 (1) AUV at End of Period $7.92 $10.10 $11.61 Number of Accumulation Units Outstanding at End of 777,892 441,295 70,828 Period Pioneer Fund VCT AUV at Beginning of Period $9.37 $10.00 (5) AUV at End of Period $7.43 $9.37 Number of Accumulation Units Outstanding at End of 135,708 2,197 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.32 $10.71 Number of Accumulation Units Outstanding at End of 218,154 5,378 Period ProFund VP Bull AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.63 $8.87 Number of Accumulation Units Outstanding at End of 185,752 27,580 Period Access - 131180 ProFund VP Europe 30 AUV at Beginning of Period $8.25 $10.00 (4) AUV at End of Period $6.02 $8.25 Number of Accumulation Units Outstanding at End of 105,640 38,959 Period ProFund VP Small Cap AUV at Beginning of Period $9.41 $10.00 (4) AUV at End of Period $7.17 $9.41 Number of Accumulation Units Outstanding at End of 182,536 19,151 Period SP Jennison International Growth AUV at Beginning of Period $5.39 $8.56 $10.00 (3) AUV at End of Period $4.08 $5.39 $8.56 Number of Accumulation Units Outstanding at End of 235,552 146,027 7,516 Period Footnotes (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.80% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (5) AUV at End of Period $7.31 $10.98 Number of Accumulation Units Outstanding at End of 144,579 7,111 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.79 $9.57 Number of Accumulation Units Outstanding at End of 178,752 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.25 $10.00 (7) AUV at End of Period $6.33 $9.25 Number of Accumulation Units Outstanding at End of 244,586 652 Period Galaxy VIP Asset Allocation AUV at Beginning of Period $9.75 $10.73 $10.51 AUV at End of Period $8.05 $9.75 $10.73 Number of Accumulation Units Outstanding at End of 6,393 11,977 18,516 Period Galaxy VIP Equity Fund AUV at Beginning of Period $9.12 $11.36 $11.51 AUV at End of Period $6.48 $9.12 $11.36 Number of Accumulation Units Outstanding at End of 9,491 14,708 14,623 Period Access - 131180 Galaxy VIP Growth & Income AUV at Beginning of Period $10.31 $10.93 $10.25 AUV at End of Period $7.46 $10.31 $10.93 Number of Accumulation Units Outstanding at End of 778 785 7,086 Period Galaxy VIP Quality Plus Bond AUV at Beginning of Period $11.60 $10.99 $9.94 AUV at End of Period $12.57 $11.60 $10.99 Number of Accumulation Units Outstanding at End of 2,995 1,476 -- Period Galaxy VIP Small Company Growth AUV at Beginning of Period $13.02 $13.28 $15.05 AUV at End of Period $8.57 $13.02 $13.28 Number of Accumulation Units Outstanding at End of 1,382 793 627 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.32 $18.50 $21.37 (1) AUV at End of Period $9.61 $14.32 $18.50 Number of Accumulation Units Outstanding at End of 1,196,567 1,447,650 1,203,898 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.30 $16.88 $19.86 (1) AUV at End of Period $9.82 $14.30 $16.88 Number of Accumulation Units Outstanding at End of 1,761,535 1,586,391 1,171,869 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.94 $10.51 $10.00 (1) AUV at End of Period $7.44 $9.94 $10.51 Number of Accumulation Units Outstanding at End of 5,103,821 3,603,942 1,403,629 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.87 $19.51 $21.72 (1) AUV at End of Period $13.23 $16.87 $19.51 Number of Accumulation Units Outstanding at End of 1,564,288 1,137,846 621,115 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.44 $18.03 $23.35 (1) AUV at End of Period $12.77 $17.44 $18.03 Number of Accumulation Units Outstanding at End of 2,319,410 1,876,959 1,163,996 Period ING Developing World AUV at Beginning of Period $6.97 $7.49 $11.58 (1) AUV at End of Period $6.11 $6.97 $7.49 Number of Accumulation Units Outstanding at End of 690,414 640,405 549,427 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.80 $18.97 $17.17 (1) AUV at End of Period $14.50 $17.80 $18.97 Number of Accumulation Units Outstanding at End of 923,702 706,803 298,983 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.05 $9.87 $10.00 (3) AUV at End of Period $7.17 $9.05 $9.87 Number of Accumulation Units Outstanding at End of 1,611,467 815,848 55,360 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (8) AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of 508,431 Period Access - 131180 ING GET Fund -- Series U AUV at Beginning of Period $10.00 (9) AUV at End of Period $10.00 Number of Accumulation Units Outstanding at End of 1,187 Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.60 $10.00 (4) AUV at End of Period $4.62 $7.60 Number of Accumulation Units Outstanding at End of 220,935 46,906 Period ING Hard Assets AUV at Beginning of Period $13.40 $15.53 $15.50 (1) AUV at End of Period $13.26 $13.40 $15.53 Number of Accumulation Units Outstanding at End of 302,602 94,214 42,632 Period ING International Equity AUV at Beginning of Period $8.52 $11.23 $14.81 (6) AUV at End of Period $7.02 $8.52 $11.23 Number of Accumulation Units Outstanding at End of 1,565,175 1,182,590 1,033,869 Period ING Janus Growth and Income AUV at Beginning of Period $8.83 $9.93 $10.00 (3) AUV at End of Period $6.99 $8.83 $9.93 Number of Accumulation Units Outstanding at End of 2,513,592 1,282,147 148,807 Period ING Janus Special Equity AUV at Beginning of Period $8.28 $8.88 $10.00 (3) AUV at End of Period $6.02 $8.28 $8.88 Number of Accumulation Units Outstanding at End of 401,444 319,420 62,575 Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.74 $24.27 $28.64 (1) AUV at End of Period $14.41 $20.74 $24.27 Number of Accumulation Units Outstanding at End of 1,643,362 1,587,677 981,676 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of 51,442 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of 95,249 Period ING Limited Maturity Bond AUV at Beginning of Period $18.03 $16.87 $15.92 (1) AUV at End of Period $18.99 $18.03 $16.87 Number of Accumulation Units Outstanding at End of 2,793,640 1,730,153 507,893 Period ING Liquid Assets AUV at Beginning of Period $14.96 $14.67 $14.13 (1) AUV at End of Period $14.91 $14.96 $14.67 Number of Accumulation Units Outstanding at End of 10,613,768 9,752,616 2,657,053 Period Access - 131180 ING Marsico Growth AUV at Beginning of Period $14.79 $21.59 $28.72 (1) AUV at End of Period $10.23 $14.79 $21.59 Number of Accumulation Units Outstanding at End of 4,731,610 5,132,970 3,791,737 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.35 Number of Accumulation Units Outstanding at End of 53,879 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.95 Number of Accumulation Units Outstanding at End of 27,465 Period ING MFS Mid Cap Growth AUV at Beginning of Period $30.92 $41.24 $37.84 (1) AUV at End of Period $15.55 $30.92 $41.24 Number of Accumulation Units Outstanding at End of 2,356,960 2,066,676 1,240,675 Period ING MFS Research AUV at Beginning of Period $19.84 $25.72 $26.43 (1) AUV at End of Period $14.64 $19.84 $25.72 Number of Accumulation Units Outstanding at End of 2,132,959 1,666,295 1,007,294 Period ING MFS Total Return AUV at Beginning of Period $19.96 $20.22 $17.13 (1) AUV at End of Period $18.60 $19.96 $20.22 Number of Accumulation Units Outstanding at End of 3,921,173 2,673,135.0836,664.0 Period ING PIMCO Core Bond AUV at Beginning of Period $11.51 $11.44 $11.23 (1) AUV at End of Period $12.29 $11.51 $11.44 Number of Accumulation Units Outstanding at End of 3,457,226 958,057 183,531 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.56 $11.55 $10.00 (1) AUV at End of Period $8.45 $11.56 $11.55 Number of Accumulation Units Outstanding at End of 3,308,447 2,722,089 780,053 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.55 $11.22 $10.00 (1) AUV at End of Period $7.98 $10.55 $11.22 Number of Accumulation Units Outstanding at End of 1,333,387 820,331 145,735 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $26.74 $24.77 $20.08 (1) AUV at End of Period $26.38 $26.74 $24.77 Number of Accumulation Units Outstanding at End of 3,716,910 1,927,531 400,243 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $22.64 $22.75 $19.41 (1) AUV at End of Period $19.30 $22.64 $22.75 Number of Accumulation Units Outstanding at End of 1,769,554 1,103,377.0311,484.0 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.80 Number of Accumulation Units Outstanding at End of 37,952 Period Access - 131180 ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of 133,794 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.91 $24.18 $24.96 (1) AUV at End of Period $17.50 $20.91 $24.18 Number of Accumulation Units Outstanding at End of 1,678,851 1,489,476 803,307 Period ING Van Kampen Real Estate AUV at Beginning of Period $26.91 $25.34 $19.85 (1) AUV at End of Period $26.48 $26.91 $25.34 Number of Accumulation Units Outstanding at End of 639,504 310,014 77,442 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.62 Number of Accumulation Units Outstanding at End of 616,917 Period ING VP Growth Opportunities AUV at Beginning of Period $7.77 $10.00 (4) AUV at End of Period $5.23 $7.77 Number of Accumulation Units Outstanding at End of 178,992 74,652 Period ING VP MagnaCap AUV at Beginning of Period $9.33 $10.00 (4) AUV at End of Period $7.05 $9.33 Number of Accumulation Units Outstanding at End of 190,988 102,246 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.31 $10.00 (4) AUV at End of Period $4.59 $8.31 Number of Accumulation Units Outstanding at End of 696,664 222,328 Period ING VP Worldwide Growth AUV at Beginning of Period $6.98 $8.73 $10.00 (2) AUV at End of Period $5.15 $6.98 $8.73 Number of Accumulation Units Outstanding at End of 598,428 468,772 84,578 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.25 $10.00 (5) AUV at End of Period $7.61 $10.25 Number of Accumulation Units Outstanding at End of 375,102 25,836 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.42 Number of Accumulation Units Outstanding at End of 54,250 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.35 $10.00 (5) AUV at End of Period $7.81 $9.35 Number of Accumulation Units Outstanding at End of 284,060 18,560 Period Access - 131180 Invesco VIF--Utilities AUV at Beginning of Period $8.09 $10.00 (5) AUV at End of Period $6.33 $8.09 Number of Accumulation Units Outstanding at End of 167,758 16,134 Period Jennison Portfolio AUV at Beginning of Period $6.25 $7.82 $10.00 (2) AUV at End of Period $4.23 $6.25 $7.82 Number of Accumulation Units Outstanding at End of 934,116 1,102,268 89,929 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.95 $9.90 $10.09 (1) AUV at End of Period $9.66 $9.95 $9.90 Number of Accumulation Units Outstanding at End of 3,639,545 1,847,566 631,991 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $10.08 $11.59 $12.45 (1) AUV at End of Period $7.90 $10.08 $11.59 Number of Accumulation Units Outstanding at End of 1,932,333 1,789,954 1,176,897 Period Pioneer Fund VCT AUV at Beginning of Period $9.37 $10.00 (5) AUV at End of Period $7.43 $9.37 Number of Accumulation Units Outstanding at End of 229,508 22,142 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.32 $10.71 Number of Accumulation Units Outstanding at End of 503,892 23,811 Period ProFund VP Bull AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.62 $8.87 Number of Accumulation Units Outstanding at End of 475,785 244,571 Period ProFund VP Europe 30 AUV at Beginning of Period $8.24 $10.00 (4) AUV at End of Period $6.01 $8.24 Number of Accumulation Units Outstanding at End of 103,963 39,270 Period ProFund VP Small Cap AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.16 $9.40 Number of Accumulation Units Outstanding at End of 420,431 132,361 Period SP Jennison International Growth AUV at Beginning of Period $5.38 $8.55 $10.00 (3) AUV at End of Period $4.08 $5.38 $8.55 Number of Accumulation Units Outstanding at End of 360,089 212,147 12,698 Period Footnotes (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.90% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (5) AUV at End of Period $7.30 $10.98 Number of Accumulation Units Outstanding at End of 237,698 119,539 Period Fidelity(R) VIP Equity--Income AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.78 $9.57 Number of Accumulation Units Outstanding at End of 250,947 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.25 $10.00 (7) AUV at End of Period $6.33 $9.25 Number of Accumulation Units Outstanding at End of 473,547 Period Galaxy VIP Asset Allocation AUV at Beginning of Period $9.72 $10.71 $10.50 AUV at End of Period $9.72 $10.71 Number of Accumulation Units Outstanding at End of -- -- -- Period Galaxy VIP Equity Fund AUV at Beginning of Period $9.10 $11.34 $11.50 AUV at End of Period $6.46 $9.10 $11.34 Number of Accumulation Units Outstanding at End of 2,067 -- -- Period Galaxy VIP Growth & Income AUV at Beginning of Period $10.28 $10.92 $10.25 AUV at End of Period $7.44 $10.28 $10.92 Number of Accumulation Units Outstanding at End of 520 -- -- Period Galaxy VIP Quality Plus Bond AUV at Beginning of Period $11.57 $10.98 $9.93 AUV at End of Period $11.57 $10.98 Number of Accumulation Units Outstanding at End of -- -- -- Period Galaxy VIP Small Company Growth AUV at Beginning of Period $12.99 $13.27 $15.05 AUV at End of Period $8.55 $12.99 $13.27 Number of Accumulation Units Outstanding at End of 98 99 100 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.23 $18.40 $21.27 (1) AUV at End of Period $9.54 $14.23 $18.40 Number of Accumulation Units Outstanding at End of 1,357,779 1,475,163 1,103,423 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.21 $16.80 $19.78 (1) AUV at End of Period $9.76 $14.21 $16.80 Number of Accumulation Units Outstanding at End of 1,863,528 1,557,259 874,247 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.92 $10.50 $10.00 (1) AUV at End of Period $7.42 $9.92 $10.50 Number of Accumulation Units Outstanding at End of 6,279,537 4,320,851 993,651 Period Access - 131180 ING Capital Guardian Managed Global AUV at Beginning of Period $16.72 $19.34 $21.56 (1) AUV at End of Period $13.09 $16.72 $19.34 Number of Accumulation Units Outstanding at End of 1,515,003 1,118,604 522,271 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.34 $17.94 $23.25 (1) AUV at End of Period $12.68 $17.34 $17.94 Number of Accumulation Units Outstanding at End of 2,389,036 1,918,122 825,516 Period ING Developing World AUV at Beginning of Period $6.94 $7.47 $11.56 (1) AUV at End of Period $6.08 $6.94 $7.47 Number of Accumulation Units Outstanding at End of 847,173 509,513 259,187 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.68 $18.85 $17.08 (1) AUV at End of Period $14.38 $17.68 $18.85 Number of Accumulation Units Outstanding at End of 983,703 665,936 162,505 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.04 $9.87 $10.00 (3) AUV at End of Period $7.15 $9.04 $9.87 Number of Accumulation Units Outstanding at End of 2,302,131 1,385,134 89,462 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 (8) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.59 $10.00 (4) AUV at End of Period $4.61 $7.59 Number of Accumulation Units Outstanding at End of 447,885 162,626 Period ING Hard Assets AUV at Beginning of Period $13.22 $15.34 $15.33 (1) AUV at End of Period $13.08 $13.22 $15.34 Number of Accumulation Units Outstanding at End of 932,327 315,574 227,856 Period ING International Equity AUV at Beginning of Period $8.47 $11.18 $14.76 (6) AUV at End of Period $6.97 $8.47 $11.18 Number of Accumulation Units Outstanding at End of 1,470,429 1,055,368 685,944 Period ING Janus Growth and Income AUV at Beginning of Period $8.82 $9.93 $10.00 (3) AUV at End of Period $6.97 $8.82 $9.93 Number of Accumulation Units Outstanding at End of 3,186,621 2,016,515 113,353 Period ING Janus Special Equity AUV at Beginning of Period $8.27 $8.88 $10.00 (3) AUV at End of Period $6.01 $8.27 $8.88 Number of Accumulation Units Outstanding at End of 520,898 420,371 83,761 Period Access - 131180 ING Jennison Equity Opportunities AUV at Beginning of Period $20.53 $24.06 $28.41 (1) AUV at End of Period $14.25 $20.53 $24.06 Number of Accumulation Units Outstanding at End of 2,091,213 1,748,122 969,120 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of 138,594 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of 155,620 Period ING Limited Maturity Bond AUV at Beginning of Period $17.80 $16.67 $15.74 (1) AUV at End of Period $18.72 $17.80 $16.67 Number of Accumulation Units Outstanding at End of 2,647,005 1,441,971 273,264 Period ING Liquid Assets AUV at Beginning of Period $14.77 $14.50 $13.97 (1) AUV at End of Period $14.70 $14.77 $14.50 Number of Accumulation Units Outstanding at End of 7,015,870 6,235,817 2,132,811 Period ING Marsico Growth AUV at Beginning of Period $14.71 $21.49 $28.61 (1) AUV at End of Period $10.16 $14.71 $21.49 Number of Accumulation Units Outstanding at End of 4,149,074 4,093,894 2,741,325 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.34 Number of Accumulation Units Outstanding at End of 94,083 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.95 Number of Accumulation Units Outstanding at End of 62,915 Period ING MFS Mid Cap Growth AUV at Beginning of Period $30.70 $40.98 $37.63 (1) AUV at End of Period $15.42 $30.70 $40.98 Number of Accumulation Units Outstanding at End of 2,751,561 2,275,455 1,099,617 Period ING MFS Research AUV at Beginning of Period $19.69 $25.56 $26.29 (1) AUV at End of Period $14.51 $19.69 $25.56 Number of Accumulation Units Outstanding at End of 2,110,645 1,829,741 807,166 Period ING MFS Total Return AUV at Beginning of Period $19.81 $20.10 $17.04 (1) AUV at End of Period $18.44 $19.81 $20.10 Number of Accumulation Units Outstanding at End of 4,012,552 2,637,734 506,976 Period Access - 131180 ING PIMCO Core Bond AUV at Beginning of Period $11.43 $11.37 $11.17 (1) AUV at End of Period $12.19 $11.43 $11.37 Number of Accumulation Units Outstanding at End of 5,600,337 1,352,337 101,577 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.54 $11.54 $10.00 (1) AUV at End of Period $8.42 $11.54 $11.54 Number of Accumulation Units Outstanding at End of 5,615,264 4,291,401 986,100 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.53 $11.21 $10.00 (1) AUV at End of Period $7.95 $10.53 $11.21 Number of Accumulation Units Outstanding at End of 2,079,377 1,766,107 191,223 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $26.39 $24.47 $19.86 (1) AUV at End of Period $26.01 $26.39 $24.47 Number of Accumulation Units Outstanding at End of 3,927,375 1,940,881 183,884 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $22.35 $22.48 $19.19 (1) AUV at End of Period $19.03 $22.35 $22.48 Number of Accumulation Units Outstanding at End of 2,273,204 1,364,874 238,986 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.79 Number of Accumulation Units Outstanding at End of 67,606 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of 201,786 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.73 $24.00 $24.80 (1) AUV at End of Period $17.34 $20.73 $24.00 Number of Accumulation Units Outstanding at End of 1,920,555 1,546,448 713,282 Period ING Van Kampen Real Estate AUV at Beginning of Period $26.56 $25.04 $19.63 (1) AUV at End of Period $26.11 $26.56 $25.04 Number of Accumulation Units Outstanding at End of 768,503 474,135 192,508 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.61 Number of Accumulation Units Outstanding at End of 456,891 Period ING VP Growth Opportunities AUV at Beginning of Period $7.76 $10.00 (4) AUV at End of Period $5.22 $7.76 Number of Accumulation Units Outstanding at End of 355,700 182,159 Period ING VP MagnaCap AUV at Beginning of Period $9.32 $10.00 (4) AUV at End of Period $7.04 $9.32 Number of Accumulation Units Outstanding at End of 295,511 117,705 Period Access - 131180 ING VP SmallCap Opportunities AUV at Beginning of Period $8.30 $10.00 (4) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of 1,196,797 253,382 Period ING VP Worldwide Growth AUV at Beginning of Period $6.96 $8.72 $10.00 (2) AUV at End of Period $5.14 $6.96 $8.72 Number of Accumulation Units Outstanding at End of 1,083,707 477,958 68,648 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.25 $10.00 (5) AUV at End of Period $7.59 $10.25 Number of Accumulation Units Outstanding at End of 736,096 289,358 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.41 Number of Accumulation Units Outstanding at End of 100,699 Period Invesco VIF--Financial Services AUV at Beginning of Period $9.34 $10.00 (5) AUV at End of Period $7.80 $9.34 Number of Accumulation Units Outstanding at End of 407,036 18,432 Period Invesco VIF--Utilities AUV at Beginning of Period $8.09 $10.00 (5) AUV at End of Period $6.32 $8.09 Number of Accumulation Units Outstanding at End of 173,346 23,627 Period Jennison Portfolio AUV at Beginning of Period $6.24 $7.82 $10.00 (2) AUV at End of Period $4.22 $6.24 $7.82 Number of Accumulation Units Outstanding at End of 1,916,839 1,029,815 152,003 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.91 $9.88 $10.07 (1) AUV at End of Period $9.61 $9.91 $9.88 Number of Accumulation Units Outstanding at End of 3,093,339 1,858,684 386,288 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $10.04 $11.56 $12.42 (1) AUV at End of Period $7.86 $10.04 $11.56 Number of Accumulation Units Outstanding at End of 1,702,075 1,325,932 829,397 Period Pioneer Fund VCT AUV at Beginning of Period $9.36 $10.00 (5) AUV at End of Period $7.42 $9.36 Number of Accumulation Units Outstanding at End of 562,117 47,468 Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.31 $10.71 Number of Accumulation Units Outstanding at End of 740,867 72,420 Period ProFund VP Bull AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.61 $8.87 Number of Accumulation Units Outstanding at End of 491,042 103,369 Period ProFund VP Europe 30 AUV at Beginning of Period $8.24 $10.00 (4) AUV at End of Period $6.00 $8.24 Number of Accumulation Units Outstanding at End of 218,083 19,682 Period ProFund VP Small Cap AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.15 $9.40 Number of Accumulation Units Outstanding at End of 374,258 47,995 Period SP Jennison International Growth AUV at Beginning of Period $5.37 $8.55 $10.00 (3) AUV at End of Period $4.07 $5.37 $8.55 Number of Accumulation Units Outstanding at End of 636,058 320,126 28,074 Period Footnotes (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.95% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.29 $10.98 Number of Accumulation Units Outstanding at End of 2,381 -- Period Fidelity(R)VIP Equity--Income AUV at Beginning of Period $9.57 (4) AUV at End of Period $7.77 Number of Accumulation Units Outstanding at End of 9,459 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.25 (4) AUV at End of Period $6.32 Number of Accumulation Units Outstanding at End of 7,613 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.19 $16.41 (1) AUV at End of Period $9.50 $14.19 Number of Accumulation Units Outstanding at End of 431 32 Period Access - 131180 ING Alliance Mid Cap Growth AUV at Beginning of Period $14.17 $16.21 (1) AUV at End of Period $14.17 Number of Accumulation Units Outstanding at End of -- -- Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.91 $10.53 (1) AUV at End of Period $7.41 $9.91 Number of Accumulation Units Outstanding at End of 686 -- Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.64 $19.44 (1) AUV at End of Period $16.64 Number of Accumulation Units Outstanding at End of -- -- Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.28 $17.66 (1) AUV at End of Period $12.64 $17.28 Number of Accumulation Units Outstanding at End of 1,453 -- Period ING Developing World AUV at Beginning of Period $6.93 $7.35 (1) AUV at End of Period $6.93 Number of Accumulation Units Outstanding at End of -- -- Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.61 $19.31 (1) AUV at End of Period $14.32 $17.61 Number of Accumulation Units Outstanding at End of 5,517 -- Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.03 $9.47 (1) AUV at End of Period $7.14 $9.03 Number of Accumulation Units Outstanding at End of 1,419 -- Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of 402,294 Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.59 $10.00 (1) AUV at End of Period $7.59 Number of Accumulation Units Outstanding at End of -- -- Period ING Hard Assets AUV at Beginning of Period $13.14 $15.45 (1) AUV at End of Period $13.14 Number of Accumulation Units Outstanding at End of -- -- Period ING International Equity AUV at Beginning of Period $8.45 $9.82 (3) AUV at End of Period $8.45 Number of Accumulation Units Outstanding at End of -- -- Period Access - 131180 ING Janus Growth and Income AUV at Beginning of Period $8.81 $9.65 (1) AUV at End of Period $6.96 $8.81 Number of Accumulation Units Outstanding at End of 5,288 -- Period ING Janus Special Equity AUV at Beginning of Period $8.27 $8.98 (1) AUV at End of Period $8.27 Number of Accumulation Units Outstanding at End of -- -- Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.43 $23.18 (1) AUV at End of Period $20.43 Number of Accumulation Units Outstanding at End of -- -- Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of 467 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of 2,108 Period ING Limited Maturity Bond AUV at Beginning of Period $17.71 $17.02 (1) AUV at End of Period $18.62 $17.71 Number of Accumulation Units Outstanding at End of 6,405 994 Period ING Liquid Assets AUV at Beginning of Period $14.72 $14.61 (1) AUV at End of Period $14.64 $14.72 Number of Accumulation Units Outstanding at End of 19,321 92 Period ING Marsico Growth AUV at Beginning of Period $14.66 $19.14 (1) AUV at End of Period $10.13 $14.66 Number of Accumulation Units Outstanding at End of 1,801 30 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING MFS Mid Cap Growth AUV at Beginning of Period $30.58 $39.64 (1) AUV at End of Period $15.35 $30.58 Number of Accumulation Units Outstanding at End of 1,308 15 Period Access - 131180 ING MFS Research AUV at Beginning of Period $19.62 $23.34 (1) AUV at End of Period $14.45 $19.62 Number of Accumulation Units Outstanding at End of 1,027 23 Period ING MFS Total Return AUV at Beginning of Period $19.74 $20.20 (1) AUV at End of Period $18.37 $19.74 Number of Accumulation Units Outstanding at End of 19,958 470 Period ING PIMCO Core Bond AUV at Beginning of Period $11.39 $10.99 (1) AUV at End of Period $12.13 $11.39 Number of Accumulation Units Outstanding at End of 32,108 -- Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.53 $12.25 (1) AUV at End of Period $8.41 $11.53 Number of Accumulation Units Outstanding at End of 3,105 778 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.52 $11.49 (1) AUV at End of Period $7.94 $10.52 Number of Accumulation Units Outstanding at End of 2,596 847 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $26.21 $26.07 (1) AUV at End of Period $25.83 $26.21 Number of Accumulation Units Outstanding at End of 12,095 -- Period ING T. Rowe Price Equity Income AUV at Beginning of Period $22.20 $22.61 (1) AUV at End of Period $18.90 $22.20 Number of Accumulation Units Outstanding at End of 193 -- Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.64 $21.93 (1) AUV at End of Period $17.26 $20.64 Number of Accumulation Units Outstanding at End of 835 23 Period ING Van Kampen Real Estate AUV at Beginning of Period $26.39 $24.63 (1) AUV at End of Period $25.92 $26.39 Number of Accumulation Units Outstanding at End of 696 -- Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period Access - 131180 ING VP Growth Opportunities AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of -- -- Period ING VP MagnaCap AUV at Beginning of Period $9.32 $10.11 (1) AUV at End of Period $9.32 Number of Accumulation Units Outstanding at End of -- -- Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of 345 -- Period ING VP Worldwide Growth AUV at Beginning of Period $6.96 $8.35 (1) AUV at End of Period $5.13 $6.96 Number of Accumulation Units Outstanding at End of 1,003 -- Period Invesco VIF Health Sciences AUV at Beginning of Period $10.25 $10.00 (2) AUV at End of Period $7.59 $10.25 Number of Accumulation Units Outstanding at End of 2,088 -- Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.41 Number of Accumulation Units Outstanding at End of 758 Period Invesco VIF Financial Services AUV at Beginning of Period $9.34 $10.00 (2) AUV at End of Period $7.79 $9.34 Number of Accumulation Units Outstanding at End of 667 -- Period Invesco VIF Utilities AUV at Beginning of Period $8.09 $10.00 (2) AUV at End of Period $6.32 $8.09 Number of Accumulation Units Outstanding at End of 2,188 -- Period Jennison Portfolio AUV at Beginning of Period $6.24 $7.20 (1) AUV at End of Period $4.21 $6.24 Number of Accumulation Units Outstanding at End of 5,385 -- Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.90 $9.83 (1) AUV at End of Period $9.59 $9.90 Number of Accumulation Units Outstanding at End of 4,447 -- Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $10.03 $11.01 (1) AUV at End of Period $10.03 Number of Accumulation Units Outstanding at End of -- -- Period Access - 131180 Pioneer Fund VCT AUV at Beginning of Period $9.36 $10.00 (2) AUV at End of Period $7.41 $9.36 Number of Accumulation Units Outstanding at End of 6,687 -- Period Pioneer Mid Cap Value AUV at Beginning of Period $10.71 $10.00 (2) AUV at End of Period $10.71 Number of Accumulation Units Outstanding at End of -- -- Period ProFund VP Bull AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.61 $8.86 Number of Accumulation Units Outstanding at End of 305 -- Period ProFund VP Europe 30 AUV at Beginning of Period $8.24 $10.05 (1) AUV at End of Period $8.24 Number of Accumulation Units Outstanding at End of -- -- Period ProFund VP Small Cap AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $9.39 Number of Accumulation Units Outstanding at End of -- -- Period SP Jennison Int. Growth AUV at Beginning of Period $5.37 $7.30 (1) AUV at End of Period $4.06 $5.37 Number of Accumulation Units Outstanding at End of 3,559 -- Period Footnotes (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.05% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.28 $10.98 Number of Accumulation Units Outstanding at End of 36,436 270 Period Fidelity(R)VIP Equity--Income AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of 18,936 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.24 (4) AUV at End of Period $6.31 Number of Accumulation Units Outstanding at End of 4,842 Period Access - 131180 ING AIM Mid Cap Growth AUV at Beginning of Period $14.10 $16.32 (1) AUV at End of Period $9.43 $14.10 Number of Accumulation Units Outstanding at End of 22,032 9,284 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.09 $16.13 (1) AUV at End of Period $9.66 $14.09 Number of Accumulation Units Outstanding at End of 30,975 13,857 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.89 $10.52 (1) AUV at End of Period $7.39 $9.89 Number of Accumulation Units Outstanding at End of 153,495 64,872 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.48 $19.28 (1) AUV at End of Period $12.89 $16.48 Number of Accumulation Units Outstanding at End of 44,003 24,750 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.18 $17.56 (1) AUV at End of Period $12.55 $17.18 Number of Accumulation Units Outstanding at End of 61,290 28,016 Period ING Developing World AUV at Beginning of Period $6.90 $7.33 (1) AUV at End of Period $6.04 $6.90 Number of Accumulation Units Outstanding at End of 45,609 32,140 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.49 $19.19 (1) AUV at End of Period $14.21 $17.49 Number of Accumulation Units Outstanding at End of 20,452 15,882 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.02 $9.47 (1) AUV at End of Period $7.12 $9.02 Number of Accumulation Units Outstanding at End of 78,294 30,405 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.58 $10.00 (1) AUV at End of Period $4.60 $7.58 Number of Accumulation Units Outstanding at End of 41,859 9,038 Period ING Hard Assets AUV at Beginning of Period $12.96 $15.25 (1) AUV at End of Period $12.80 $12.96 Number of Accumulation Units Outstanding at End of 23,532 8,523 Period Access - 131180 ING International Equity AUV at Beginning of Period $8.40 $9.77 (3) AUV at End of Period $6.90 $8.40 Number of Accumulation Units Outstanding at End of 8,795 -- Period ING Janus Growth and Income AUV at Beginning of Period $8.80 $9.64 (1) AUV at End of Period $6.95 $8.80 Number of Accumulation Units Outstanding at End of 132,024 41,232 Period ING Janus Special Equity AUV at Beginning of Period $8.25 $8.97 (1) AUV at End of Period $5.99 $8.25 Number of Accumulation Units Outstanding at End of 13,630 7,008 Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.23 $22.97 (1) AUV at End of Period $14.02 $20.23 Number of Accumulation Units Outstanding at End of 41,942 17,631 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of 1,613 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 5,346 Period ING Limited Maturity Bond AUV at Beginning of Period $17.48 $16.81 (1) AUV at End of Period $18.36 $17.48 Number of Accumulation Units Outstanding at End of 115,925 33,099 Period ING Liquid Assets AUV at Beginning of Period $14.53 $14.43 (1) AUV at End of Period $14.43 $14.53 Number of Accumulation Units Outstanding at End of 327,509 329,210 Period ING Marsico Growth AUV at Beginning of Period $14.58 $19.04 (1) AUV at End of Period $10.06 $14.58 Number of Accumulation Units Outstanding at End of 60,337 37,525 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.33 Number of Accumulation Units Outstanding at End of 5,396 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period Access - 131180 ING MFS Mid Cap Growth AUV at Beginning of Period $30.36 $39.38 (1) AUV at End of Period $15.22 $30.36 Number of Accumulation Units Outstanding at End of 59,471 32,214 Period ING MFS Research AUV at Beginning of Period $19.48 $23.19 (1) AUV at End of Period $14.33 $19.48 Number of Accumulation Units Outstanding at End of 52,294 25,925 Period ING MFS Total Return AUV at Beginning of Period $19.59 $20.07 (1) AUV at End of Period $18.21 $19.59 Number of Accumulation Units Outstanding at End of 108,560 48,787 Period ING PIMCO Core Bond AUV at Beginning of Period $11.30 $10.92 (1) AUV at End of Period $12.03 $11.30 Number of Accumulation Units Outstanding at End of 134,070 45,492 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.50 $12.23 (1) AUV at End of Period $8.39 $11.50 Number of Accumulation Units Outstanding at End of 186,269 101,330 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.49 $11.48 (1) AUV at End of Period $7.92 $10.49 Number of Accumulation Units Outstanding at End of 88,534 50,349 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $25.87 $25.75 (1) AUV at End of Period $25.46 $25.87 Number of Accumulation Units Outstanding at End of 122,476 43,670 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $21.91 $22.33 (1) AUV at End of Period $18.63 $21.91 Number of Accumulation Units Outstanding at End of 69,736 27,313 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.81 Number of Accumulation Units Outstanding at End of 5,968 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.47 $21.76 (1) AUV at End of Period $17.09 $20.47 Number of Accumulation Units Outstanding at End of 40,928 20,784 Period ING Van Kampen Real Estate AUV at Beginning of Period $26.04 $24.32 (1) AUV at End of Period $25.56 $26.04 Number of Accumulation Units Outstanding at End of 28,955 8,514 Period Access - 131180 ING VP Bond Portfolio AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.60 Number of Accumulation Units Outstanding at End of 9,277 Period ING VP Growth Opportunities AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $5.20 $7.76 Number of Accumulation Units Outstanding at End of 4,918 6,308 Period ING VP MagnaCap AUV at Beginning of Period $9.31 $10.11 (1) AUV at End of Period $7.02 $9.31 Number of Accumulation Units Outstanding at End of 18,132 11,483 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.57 $8.30 Number of Accumulation Units Outstanding at End of 54,433 21,418 Period ING VP Worldwide Growth AUV at Beginning of Period $6.95 $8.34 (1) AUV at End of Period $5.12 $6.95 Number of Accumulation Units Outstanding at End of 39,021 30,234 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.24 $10.00 (2) AUV at End of Period $7.58 $10.24 Number of Accumulation Units Outstanding at End of 15,338 332 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.40 Number of Accumulation Units Outstanding at End of 3,612 Period Invesco VIF Financial Services AUV at Beginning of Period $9.34 $10.00 (2) AUV at End of Period $7.78 $9.34 Number of Accumulation Units Outstanding at End of 36,848 -- Period Invesco VIF Utilities AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.31 $8.08 Number of Accumulation Units Outstanding at End of 814 -- Period Jennison Portfolio AUV at Beginning of Period $6.23 $7.19 (1) AUV at End of Period $4.20 $6.23 Number of Accumulation Units Outstanding at End of 22,367 21,785 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.86 $9.80 (1) AUV at End of Period $9.54 $9.86 Number of Accumulation Units Outstanding at End of 186,396 54,726 Period Access - 131180 PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $9.99 $10.97 (1) AUV at End of Period $7.80 $9.99 Number of Accumulation Units Outstanding at End of 24,969 10,158 Period Pioneer Fund VCT AUV at Beginning of Period $9.36 $10.00 (2) AUV at End of Period $7.40 $9.36 Number of Accumulation Units Outstanding at End of 8,141 -- Period Pioneer Mid Cap Value AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.29 $10.70 Number of Accumulation Units Outstanding at End of 28,194 660 Period ProFund VP Bull AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.59 $8.86 Number of Accumulation Units Outstanding at End of 29,583 5,613 Period ProFund VP Europe 30 AUV at Beginning of Period $8.23 $10.05 (1) AUV at End of Period $5.98 $8.23 Number of Accumulation Units Outstanding at End of 8,144 15,188 Period ProFund VP Small Cap AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.13 $9.39 Number of Accumulation Units Outstanding at End of 7,373 12,960 Period SP Jennison International Growth AUV at Beginning of Period $5.36 $7.29 (1) AUV at End of Period $4.05 $5.36 Number of Accumulation Units Outstanding at End of 34,977 11,906 Period Footnotes (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.10% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.28 $10.98 Number of Accumulation Units Outstanding at End of 11,618 -- Period Fidelity(R)VIP Equity--Income AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.75 Number of Accumulation Units Outstanding at End of 54,904 Period Access - 131180 Fidelity(R) VIP Growth AUV at Beginning of Period $9.24 (4) AUV at End of Period $6.31 Number of Accumulation Units Outstanding at End of 107,165 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.05 $16.27 (1) AUV at End of Period $9.40 $14.05 Number of Accumulation Units Outstanding at End of 63,802 21,990 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.05 $16.08 (1) AUV at End of Period $9.62 $14.05 Number of Accumulation Units Outstanding at End of 184,179 63,924 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.88 $10.51 (1) AUV at End of Period $7.37 $9.88 Number of Accumulation Units Outstanding at End of 916,295 261,939 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.41 $19.19 (1) AUV at End of Period $12.82 $16.41 Number of Accumulation Units Outstanding at End of 210,411 72,320 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.12 $17.51 (1) AUV at End of Period $12.50 $17.12 Number of Accumulation Units Outstanding at End of 350,649 77,139 Period ING Developing World AUV at Beginning of Period $6.89 $7.32 (1) AUV at End of Period $6.02 $6.89 Number of Accumulation Units Outstanding at End of 87,622 52,358 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.43 $19.13 (1) AUV at End of Period $14.15 $17.43 Number of Accumulation Units Outstanding at End of 131,099 34,231 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.01 $9.46 (1) AUV at End of Period $7.12 $9.01 Number of Accumulation Units Outstanding at End of 492,026 76,525 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.58 $10.00 (1) AUV at End of Period $4.59 $7.58 Number of Accumulation Units Outstanding at End of 141,023 23,594 Period ING Hard Assets AUV at Beginning of Period $12.88 $15.16 (1) AUV at End of Period $12.71 $12.88 Number of Accumulation Units Outstanding at End of 43,248 2,531 Period Access - 131180 ING International Equity AUV at Beginning of Period $8.37 $9.74 (3) AUV at End of Period $6.87 $8.37 Number of Accumulation Units Outstanding at End of 132,383 2,399 Period ING Janus Growth and Income AUV at Beginning of Period $8.79 $9.64 (1) AUV at End of Period $6.94 $8.79 Number of Accumulation Units Outstanding at End of 584,691 164,770 Period ING Janus Special Equity AUV at Beginning of Period $8.25 $8.97 (1) AUV at End of Period $5.98 $8.25 Number of Accumulation Units Outstanding at End of 96,355 38,065 Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.13 $22.86 (1) AUV at End of Period $13.94 $20.13 Number of Accumulation Units Outstanding at End of 132,556 41,070 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of 6,369 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 37,674 Period ING Limited Maturity Bond AUV at Beginning of Period $17.36 $16.70 (1) AUV at End of Period $18.23 $17.36 Number of Accumulation Units Outstanding at End of 187,662 63,527 Period ING Liquid Assets AUV at Beginning of Period $14.43 $14.34 (1) AUV at End of Period $14.33 $14.43 Number of Accumulation Units Outstanding at End of 514,409 261,606 Period ING Marsico Growth AUV at Beginning of Period $14.53 $18.99 (1) AUV at End of Period $10.02 $14.53 Number of Accumulation Units Outstanding at End of 311,442 126,140 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.33 Number of Accumulation Units Outstanding at End of 15,878 Period Access - 131180 ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.94 Number of Accumulation Units Outstanding at End of 8,896 Period ING MFS Mid Cap Growth AUV at Beginning of Period $30.25 $39.25 (1) AUV at End of Period $15.16 $30.25 Number of Accumulation Units Outstanding at End of 309,801 93,233 Period ING MFS Research AUV at Beginning of Period $19.40 $23.11 (1) AUV at End of Period $14.27 $19.40 Number of Accumulation Units Outstanding at End of 215,283 85,348 Period ING MFS Total Return AUV at Beginning of Period $19.52 $20.00 (1) AUV at End of Period $18.14 $19.52 Number of Accumulation Units Outstanding at End of 687,305 203,036 Period ING PIMCO Core Bond AUV at Beginning of Period $11.26 $10.88 (1) AUV at End of Period $11.98 $11.26 Number of Accumulation Units Outstanding at End of 836,451 221,684 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.49 $12.23 (1) AUV at End of Period $8.37 $11.49 Number of Accumulation Units Outstanding at End of 892,250 225,937 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.48 $11.47 (1) AUV at End of Period $7.91 $10.48 Number of Accumulation Units Outstanding at End of 294,204 136,482 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $25.70 $25.59 (1) AUV at End of Period $25.28 $25.70 Number of Accumulation Units Outstanding at End of 442,657 92,605 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $21.77 $22.19 (1) AUV at End of Period $18.50 $21.77 Number of Accumulation Units Outstanding at End of 425,112 107,272 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.78 Number of Accumulation Units Outstanding at End of 10,422 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.80 Number of Accumulation Units Outstanding at End of 40,258 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.39 $21.68 (1) AUV at End of Period $17.01 $20.39 Number of Accumulation Units Outstanding at End of 180,352 51,722 Period Access - 131180 ING Van Kampen Real Estate AUV at Beginning of Period $25.87 $24.17 (1) AUV at End of Period $25.38 $25.87 Number of Accumulation Units Outstanding at End of 77,757 7,350 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.59 Number of Accumulation Units Outstanding at End of 20,543 Period ING VP Growth Opportunities AUV at Beginning of Period $7.75 $10.11 (1) AUV at End of Period $5.20 $7.75 Number of Accumulation Units Outstanding at End of 68,491 6,269 Period ING VP MagnaCap AUV at Beginning of Period $9.31 $10.11 (1) AUV at End of Period $7.02 $9.31 Number of Accumulation Units Outstanding at End of 41,229 10,474 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.29 $10.01 (1) AUV at End of Period $4.57 $8.29 Number of Accumulation Units Outstanding at End of 249,714 45,115 Period ING VP Worldwide Growth AUV at Beginning of Period $6.94 $8.34 (1) AUV at End of Period $5.11 $6.94 Number of Accumulation Units Outstanding at End of 138,853 46,282 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.24 $10.00 (2) AUV at End of Period $7.57 $10.24 Number of Accumulation Units Outstanding at End of 151,077 466 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.40 Number of Accumulation Units Outstanding at End of 40,592 Period Invesco VIF Financial Services AUV at Beginning of Period $9.33 $10.00 (2) AUV at End of Period $7.78 $9.33 Number of Accumulation Units Outstanding at End of 84,291 3,260 Period Invesco VIF Utilities AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.30 $8.08 Number of Accumulation Units Outstanding at End of 52,671 -- Period Jennison Portfolio AUV at Beginning of Period $6.22 $7.19 (1) AUV at End of Period $4.19 $6.22 Number of Accumulation Units Outstanding at End of 265,344 70,772 Period Access - 131180 PIMCO High Yield Portfolio AUV at Beginning of Period $9.84 $9.79 (1) AUV at End of Period $9.52 $9.84 Number of Accumulation Units Outstanding at End of 423,832 118,177 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $9.97 $10.95 (1) AUV at End of Period $7.79 $9.97 Number of Accumulation Units Outstanding at End of 218,962 61,575 Period Pioneer Fund VCT AUV at Beginning of Period $9.35 $10.00 (2) AUV at End of Period $7.39 $9.35 Number of Accumulation Units Outstanding at End of 57,294 -- Period Pioneer Mid Cap Value AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.29 $10.70 Number of Accumulation Units Outstanding at End of 145,463 -- Period ProFund VP Bull AUV at Beginning of Period $8.85 $10.00 (1) AUV at End of Period $6.59 $8.85 Number of Accumulation Units Outstanding at End of 23,783 1,814 Period ProFund VP Europe 30 AUV at Beginning of Period $8.23 $10.05 (1) AUV at End of Period $5.98 $8.23 Number of Accumulation Units Outstanding at End of 17,650 -- Period ProFund VP Small Cap AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.13 $9.39 Number of Accumulation Units Outstanding at End of 68,579 12,110 Period SP Jennison International Growth AUV at Beginning of Period $5.36 $7.29 (1) AUV at End of Period $4.05 $5.36 Number of Accumulation Units Outstanding at End of 156,994 86,394 Period Footnotes (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.15% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.27 $10.98 Number of Accumulation Units Outstanding at End of 8,919 228 Period Access - 131180 Fidelity(R)VIP Equity--Income AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.75 Number of Accumulation Units Outstanding at End of 46,318 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.24 (4) AUV at End of Period $6.30 Number of Accumulation Units Outstanding at End of 72,401 Period ING AIM Mid Cap Growth AUV at Beginning of Period $14.01 $16.23 (1) AUV at End of Period $9.36 $14.01 Number of Accumulation Units Outstanding at End of 20,219 11,976 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $14.01 $16.04 (1) AUV at End of Period $9.59 $14.01 Number of Accumulation Units Outstanding at End of 58,703 45,184 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.87 $10.50 (1) AUV at End of Period $7.36 $9.87 Number of Accumulation Units Outstanding at End of 190,461 82,699 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.33 $19.11 (1) AUV at End of Period $12.75 $16.33 Number of Accumulation Units Outstanding at End of 59,805 32,608 Period ING Capital Guardian Small Cap AUV at Beginning of Period $17.07 $17.47 (1) AUV at End of Period $12.46 $17.07 Number of Accumulation Units Outstanding at End of 54,702 21,559 Period ING Developing World AUV at Beginning of Period $6.87 $7.30 (1) AUV at End of Period $6.01 $6.87 Number of Accumulation Units Outstanding at End of 14,127 9,241 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.36 $19.07 (1) AUV at End of Period $14.09 $17.36 Number of Accumulation Units Outstanding at End of 19,840 7,195 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $9.01 $9.46 (1) AUV at End of Period $7.11 $9.01 Number of Accumulation Units Outstanding at End of 74,631 17,789 Period ING GET Fund -- Series T AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period Access - 131180 ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.58 $10.00 (1) AUV at End of Period $4.59 $7.58 Number of Accumulation Units Outstanding at End of 23,046 14,867 Period ING Hard Assets AUV at Beginning of Period $12.79 $15.06 (1) AUV at End of Period $12.62 $12.79 Number of Accumulation Units Outstanding at End of 11,015 6,076 Period ING International Equity AUV at Beginning of Period $8.35 $9.72 (3) AUV at End of Period $6.85 $8.35 Number of Accumulation Units Outstanding at End of 28,442 -- Period ING Janus Growth and Income AUV at Beginning of Period $8.79 $9.64 (1) AUV at End of Period $6.93 $8.79 Number of Accumulation Units Outstanding at End of 103,609 26,573 Period ING Janus Special Equity AUV at Beginning of Period $8.24 $8.97 (1) AUV at End of Period $5.97 $8.24 Number of Accumulation Units Outstanding at End of 7,583 5,305 Period ING Jennison Equity Opportunities AUV at Beginning of Period $20.03 $22.76 (1) AUV at End of Period $13.87 $20.03 Number of Accumulation Units Outstanding at End of 34,166 10,853 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.18 Number of Accumulation Units Outstanding at End of 4,137 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of 47 Period ING Limited Maturity Bond AUV at Beginning of Period $17.25 $16.60 (1) AUV at End of Period $18.10 $17.25 Number of Accumulation Units Outstanding at End of 102,238 14,995 Period ING Liquid Assets AUV at Beginning of Period $14.34 $14.25 (1) AUV at End of Period $14.23 $14.34 Number of Accumulation Units Outstanding at End of 102,402 131,130 Period ING Marsico Growth AUV at Beginning of Period $14.49 $18.95 (1) AUV at End of Period $9.99 $14.49 Number of Accumulation Units Outstanding at End of 62,460 50,456 Period Access - 131180 ING Mercury Focus Value AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.33 Number of Accumulation Units Outstanding at End of 20,649 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.93 Number of Accumulation Units Outstanding at End of 297 Period ING MFS Mid Cap Growth AUV at Beginning of Period $30.14 $39.11 (1) AUV at End of Period $15.10 $30.14 Number of Accumulation Units Outstanding at End of 60,108 29,442 Period ING MFS Research AUV at Beginning of Period $19.33 $23.03 (1) AUV at End of Period $14.21 $19.33 Number of Accumulation Units Outstanding at End of 58,224 35,638 Period ING MFS Total Return AUV at Beginning of Period $19.45 $19.93 (1) AUV at End of Period $18.06 $19.45 Number of Accumulation Units Outstanding at End of 123,964 62,233 eriod ING PIMCO Core Bond AUV at Beginning of Period $11.22 $10.84 (1) AUV at End of Period $11.93 $11.22 Number of Accumulation Units Outstanding at End of 299,610 75,861 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.48 $12.22 (1) AUV at End of Period $8.36 $11.48 Number of Accumulation Units Outstanding at End of 142,958 31,699 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.47 $11.46 (1) AUV at End of Period $7.89 $10.47 Number of Accumulation Units Outstanding at End of 33,194 16,003 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $25.53 $25.43 (1) AUV at End of Period $25.10 $25.53 Number of Accumulation Units Outstanding at End of 164,221 43,006 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $21.62 $22.05 (1) AUV at End of Period $18.37 $21.62 Number of Accumulation Units Outstanding at End of 90,035 25,078 Period ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period Access - 131180 ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.80 Number of Accumulation Units Outstanding at End of 1,758 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.30 $21.59 (1) AUV at End of Period $16.93 $20.30 Number of Accumulation Units Outstanding at End of 38,925 13,112 Period ING Van Kampen Real Estate AUV at Beginning of Period $25.70 $24.02 (1) AUV at End of Period $25.20 $25.70 Number of Accumulation Units Outstanding at End of 17,947 6,621 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.59 Number of Accumulation Units Outstanding at End of 45,162 Period ING VP Growth Opportunities AUV at Beginning of Period $7.75 $10.11 (1) AUV at End of Period $5.19 $7.75 Number of Accumulation Units Outstanding at End of 11,587 2,926 Period ING VP MagnaCap AUV at Beginning of Period $9.31 $10.11 (1) AUV at End of Period $7.01 $9.31 Number of Accumulation Units Outstanding at End of 12,376 4,684 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.29 $10.01 (1) AUV at End of Period $4.56 $8.29 Number of Accumulation Units Outstanding at End of 46,046 6,290 Period ING VP Worldwide Growth AUV at Beginning of Period $6.93 $8.33 (1) AUV at End of Period $5.10 $6.93 Number of Accumulation Units Outstanding at End of 57,393 20,405 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.24 $10.00 (2) AUV at End of Period $7.57 $10.24 Number of Accumulation Units Outstanding at End of 9,189 1,063 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.40 Number of Accumulation Units Outstanding at End of 17,360 Period Invesco VIF Financial Services AUV at Beginning of Period $9.33 $10.00 (2) AUV at End of Period $7.77 $9.33 Number of Accumulation Units Outstanding at End of 8,074 3,752 Period Invesco VIF Utilities AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.30 $8.08 Number of Accumulation Units Outstanding at End of 24,927 -- Period Access - 131180 Jennison Portfolio AUV at Beginning of Period $6.22 $7.18 (1) AUV at End of Period $4.19 $6.22 Number of Accumulation Units Outstanding at End of 78,264 14,542 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.82 $9.77 (1) AUV at End of Period $9.50 $9.82 Number of Accumulation Units Outstanding at End of 64,823 27,443 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $9.95 $10.94 (1) AUV at End of Period $7.77 $9.95 Number of Accumulation Units Outstanding at End of 59,533 20,309 Period Pioneer Fund VCT AUV at Beginning of Period $9.35 $10.00 (2) AUV at End of Period $7.39 $9.35 Number of Accumulation Units Outstanding at End of 19,166 -- Period Pioneer Mid Cap Value AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.28 $10.70 Number of Accumulation Units Outstanding at End of 25,875 -- Period ProFund VP Bull AUV at Beginning of Period $8.85 $10.00 (1) AUV at End of Period $6.58 $8.85 Number of Accumulation Units Outstanding at End of 32,743 900 Period ProFund VP Europe 30 AUV at Beginning of Period $8.22 $10.05 (1) AUV at End of Period $5.97 $8.22 Number of Accumulation Units Outstanding at End of 1,104 7,153 Period ProFund VP Small Cap AUV at Beginning of Period $9.38 $10.00 (1) AUV at End of Period $7.12 $9.38 Number of Accumulation Units Outstanding at End of 12,461 4,031 Period SP Jennison Int. Growth AUV at Beginning of Period $5.36 $7.29 (1) AUV at End of Period $4.05 $5.36 Number of Accumulation Units Outstanding at End of 16,084 3,450 Period Footnotes (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 Access - 131180 2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.25% AIM VI Dent Demographic Trends AUV at Beginning of Period $10.97 $10.00 (2) AUV at End of Period $7.27 $10.97 Number of Accumulation Units Outstanding at End of 109,981 724 Period Fidelity(R)VIP Equity--Income AUV at Beginning of Period $9.55 (4) AUV at End of Period $7.74 Number of Accumulation Units Outstanding at End of 7,498 Period Fidelity(R) VIP Growth AUV at Beginning of Period $9.23 (4) AUV at End of Period $6.29 Number of Accumulation Units Outstanding at End of 13,477 Period ING AIM Mid Cap Growth AUV at Beginning of Period $13.92 $16.13 (1) AUV at End of Period $9.29 $13.92 Number of Accumulation Units Outstanding at End of 28,984 32,366 Period ING Alliance Mid Cap Growth AUV at Beginning of Period $13.93 $15.96 (1) AUV at End of Period $9.52 $13.93 Number of Accumulation Units Outstanding at End of 67,393 35,302 Period ING Capital Guardian Large Cap Value AUV at Beginning of Period $9.86 $10.49 (1) AUV at End of Period $7.34 $9.86 Number of Accumulation Units Outstanding at End of 486,302 172,888 Period ING Capital Guardian Managed Global AUV at Beginning of Period $16.18 $18.94 (1) AUV at End of Period $12.62 $16.18 Number of Accumulation Units Outstanding at End of 102,390 55,217 Period ING Capital Guardian Small Cap AUV at Beginning of Period $16.97 $17.37 (1) AUV at End of Period $12.37 $16.97 Number of Accumulation Units Outstanding at End of 69,008 36,881 Period ING Developing World AUV at Beginning of Period $6.85 $7.28 (1) AUV at End of Period $5.98 $6.85 Number of Accumulation Units Outstanding at End of 39,283 28,075 Period ING Eagle Asset Value Equity AUV at Beginning of Period $17.24 $18.95 (1) AUV at End of Period $13.98 $17.24 Number of Accumulation Units Outstanding at End of 48,682 50,098 Period ING FMRSM Diversified Mid--Cap AUV at Beginning of Period $8.99 $9.46 (1) AUV at End of Period $7.09 $8.99 Number of Accumulation Units Outstanding at End of 181,302 78,758 Period Access - 131180 ING GET Fund -- Series T AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING GET Fund -- Series U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING Goldman Sachs Internet Tollkeeper AUV at Beginning of Period $7.57 $10.00 (1) AUV at End of Period $4.58 $7.57 Number of Accumulation Units Outstanding at End of 80,240 12,668 Period ING Hard Assets AUV at Beginning of Period $12.63 $14.88 (1) AUV at End of Period $12.44 $12.63 Number of Accumulation Units Outstanding at End of 23,773 9,098 Period ING International Equity AUV at Beginning of Period $8.30 $9.67 (3) AUV at End of Period $6.80 $8.30 Number of Accumulation Units Outstanding at End of 28,307 -- Period ING Janus Growth and Income AUV at Beginning of Period $8.78 $9.63 (1) AUV at End of Period $6.91 $8.78 Number of Accumulation Units Outstanding at End of 255,764 80,339 Period ING Janus Special Equity AUV at Beginning of Period $8.23 $8.96 (1) AUV at End of Period $5.96 $8.23 Number of Accumulation Units Outstanding at End of 19,023 5,941 Period ING Jennison Equity Opportunities AUV at Beginning of Period $19.84 $22.55 (1) AUV at End of Period $13.72 $19.84 Number of Accumulation Units Outstanding at End of 61,196 49,630 Period ING JP Morgan Fleming International Enhanced EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.18 Number of Accumulation Units Outstanding at End of 3,184 Period ING JP Morgan Fleming SmallCap AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.80 Number of Accumulation Units Outstanding at End of 8,559 Period ING Limited Maturity Bond AUV at Beginning of Period $17.02 $16.39 (1) AUV at End of Period $17.84 $17.02 Number of Accumulation Units Outstanding at End of 117,720 33,665 Period Access - 131180 ING Liquid Assets AUV at Beginning of Period $14.15 $14.07 (1) AUV at End of Period $14.03 $14.15 Number of Accumulation Units Outstanding at End of 300,238 255,667 Period ING Marsico Growth AUV at Beginning of Period $14.41 $18.85 (1) AUV at End of Period $9.92 $14.41 Number of Accumulation Units Outstanding at End of 134,110 58,239 Period ING Mercury Focus Value AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.32 Number of Accumulation Units Outstanding at End of 8,470 Period ING Mercury Fundamental Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of -- Period ING MFS Mid Cap Growth AUV at Beginning of Period $29.91 $38.85 (1) AUV at End of Period $14.97 $29.91 Number of Accumulation Units Outstanding at End of 106,352 50,086 Period ING MFS Research AUV at Beginning of Period $19.19 $22.88 (1) AUV at End of Period $14.09 $19.19 Number of Accumulation Units Outstanding at End of 87,205 49,977 Period ING MFS Total Return AUV at Beginning of Period $19.30 $19.80 (1) AUV at End of Period $17.91 $19.30 Number of Accumulation Units Outstanding at End of 192,907 77,305 Period ING PIMCO Core Bond AUV at Beginning of Period $11.14 $10.77 (1) AUV at End of Period $11.83 $11.14 Number of Accumulation Units Outstanding at End of 390,105 70,210 Period ING Salomon Brothers All Cap AUV at Beginning of Period $11.46 $12.20 (1) AUV at End of Period $8.34 $11.46 Number of Accumulation Units Outstanding at End of 381,030 202,778 Period ING Salomon Brothers Investors AUV at Beginning of Period $10.45 $11.45 (1) AUV at End of Period $7.87 $10.45 Number of Accumulation Units Outstanding at End of 215,195 96,447 Period ING T. Rowe Price Capital Appreciation AUV at Beginning of Period $25.20 $25.11 (1) AUV at End of Period $24.75 $25.20 Number of Accumulation Units Outstanding at End of 217,796 93,509 Period ING T. Rowe Price Equity Income AUV at Beginning of Period $21.34 $21.78 (1) AUV at End of Period $18.11 $21.34 Number of Accumulation Units Outstanding at End of 94,236 36,453 Period Access - 131180 ING Van Kampen Equity Growth AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.78 Number of Accumulation Units Outstanding at End of 852 Period ING Van Kampen Global Franchise AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.80 Number of Accumulation Units Outstanding at End of 34,646 Period ING Van Kampen Growth & Income AUV at Beginning of Period $20.13 $21.43 (1) AUV at End of Period $16.77 $20.13 Number of Accumulation Units Outstanding at End of 69,528 27,685 Period ING Van Kampen Real Estate AUV at Beginning of Period $25.36 $23.72 (1) AUV at End of Period $24.84 $25.36 Number of Accumulation Units Outstanding at End of 48,341 16,849 Period ING VP Bond Portfolio AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.58 Number of Accumulation Units Outstanding at End of 93,174 Period ING VP Growth Opportunities AUV at Beginning of Period $7.75 $10.11 (1) AUV at End of Period $5.19 $7.75 Number of Accumulation Units Outstanding at End of 49,553 5,215 Period ING VP MagnaCap AUV at Beginning of Period $9.30 $10.11 (1) AUV at End of Period $7.00 $9.30 Number of Accumulation Units Outstanding at End of 27,970 11,700 Period ING VP SmallCap Opportunities AUV at Beginning of Period $8.28 $10.01 (1) AUV at End of Period $4.55 $8.28 Number of Accumulation Units Outstanding at End of 177,135 29,300 Period ING VP Worldwide Growth AUV at Beginning of Period $6.92 $8.32 (1) AUV at End of Period $5.09 $6.92 Number of Accumulation Units Outstanding at End of 78,478 27,011 Period Invesco VIF Health Sciences AUV at Beginning of Period $10.23 $10.00 (2) AUV at End of Period $7.56 $10.23 Number of Accumulation Units Outstanding at End of 45,837 5,379 Period Invesco VIF Leisure Fund AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.39 Number of Accumulation Units Outstanding at End of 7,579 Period Access - 131180 Invesco VIF Financial Services AUV at Beginning of Period $9.33 $10.00 (2) AUV at End of Period $7.76 $9.33 Number of Accumulation Units Outstanding at End of 32,860 107 Period Invesco VIF Utilities AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.29 $8.08 Number of Accumulation Units Outstanding at End of 2,946 -- Period Jennison Portfolio AUV at Beginning of Period $6.21 $7.17 (1) AUV at End of Period $4.18 $6.21 Number of Accumulation Units Outstanding at End of 158,536 88,316 Period PIMCO High Yield Portfolio AUV at Beginning of Period $9.79 $9.74 (1) AUV at End of Period $9.45 $9.79 Number of Accumulation Units Outstanding at End of 218,538 92,431 Period PIMCO StocksPLUS Growth & Income AUV at Beginning of Period $9.91 $10.90 (1) AUV at End of Period $7.73 $9.91 Number of Accumulation Units Outstanding at End of 103,647 74,639 Period Pioneer Fund VCT AUV at Beginning of Period $9.35 $10.00 (2) AUV at End of Period $7.38 $9.35 Number of Accumulation Units Outstanding at End of 21,067 -- Period Pioneer Mid Cap Value AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.27 $10.70 Number of Accumulation Units Outstanding at End of 74,644 598 Period ProFund VP Bull AUV at Beginning of Period $8.84 $10.00 (1) AUV at End of Period $6.57 $8.84 Number of Accumulation Units Outstanding at End of 19,327 4,584 Period ProFund VP Europe 30 AUV at Beginning of Period $8.22 $10.05 (1) AUV at End of Period $5.96 $8.22 Number of Accumulation Units Outstanding at End of 30,092 15,212 Period ProFund VP Small Cap AUV at Beginning of Period $9.38 $10.00 (1) AUV at End of Period $7.11 $9.38 Number of Accumulation Units Outstanding at End of 83,442 3,530 Period SP Jennison International Growth AUV at Beginning of Period $5.35 $7.28 (1) AUV at End of Period $4.04 $5.35 Number of Accumulation Units Outstanding at End of 39,549 24,815 Period
Footnotes (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 Access - 131180 -------------------------------------------------------------------------------- Appendix B -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS During the accumulation phase, you may allocate your premium payments and contract value to any of the investment portfolios available under this Contract. They are listed in this appendix. You bear the entire investment risk for amounts you allocate to any investment portfolio, and you may lose your principal. The investment results of the mutual funds (funds) are likely to differ significantly and there is no assurance that any of the funds will achieve their respective investment objectives. Shares of the funds will rise and fall in value and you could lose money by investing in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the Investment Company Act of 1940. Please refer to the fund prospectuses for additional information. Fund prospectuses may be obtained free of charge, from our Customer Service Center at the address and telephone number listed in the prospectus, by accessing the SEC's web site or by contacting the SEC Public Reference Room. Certain funds offered under the contracts have investment objectives and policies similar to other funds managed by the fund's investment adviser. The investment results of a fund may be higher or lower than those of other funds managed by the same adviser. There is no assurance and no representation is made that the investment results of any fund will be comparable to those of another fund managed by the same investment adviser.
FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE ----------------------------------------------------------------- ------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ING INVESTORS TRUST 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 ----------------------------------------------------------------- ------------------------------------------------------------- ING AIM MID-CAP GROWTH PORTFOLIO (CLASS S) Seeks capital appreciation. The Portfolio seeks to meet its Investment Adviser: Directed Services, Inc. objective by investing, normally, at least 80% of its Investment Subadviser: A I M Capital Management, Inc. assets in equity securities of mid-capitalization companies. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING ALLIANCE MID-CAP GROWTH PORTFOLIO Seeks long-term total return. The Portfolio invests (Class S) primarily in common stocks of middle capitalization Investment Adviser: Directed Services, Inc. companies. The Portfolio normally invests substantially all Investment Subadviser: Alliance Capital Management, L.P. of its assets in high-quality common stocks that Alliance expects to increase in value. ----------------------------------------------------------------- ------------------------------------------------------------- Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------ ING AMERICAN FUNDS GROWTH PORTFOLIO Invests all of its assets in shares of the Growth Fund, a Investment Adviser: ING Investments, LLC series of American Funds Insurance Series, a registered Investment Subadviser: Capital Research and Management open-end investment company. The Growth Fund seeks to make Company the shareholders' investment grow by investing primarily in common stocks of companies that appear to ffer superior opportunities for growth of capital. The Growth Fund is designed for investors seeking long term capital appreciation through stocks. ----------------------------------------------------------------- ------------------------------------------------------------ ----------------------------------------------------------------- ------------------------------------------------------------ ING AMERICAN FUNDS GROWTH-INCOME PORTFOLIO Invests all of its assets in shares of the Growth-Income Investment Adviser: ING Investments, LLC Fund, a series of American Funds Insurance Series, a Investment Subadviser: Capital Research and Management registered open-end investment company. The Growth-Income Company Fund seeks to make shareholders' investment grow and to provide share holderswith income over time by investing primarily incommon stocks or othersecurities whichdemonstrate the potential for appreciationand/or dividends. TheGrowth-Income Fund is designed for investors seeking both capitalappreciation and income. ----------------------------------------------------------------- ------------------------------------------------------------ ----------------------------------------------------------------- ------------------------------------------------------------ ING American Funds International Portfolio Invests all of its assets in shares of the International Investment Adviser: ING Investments, LLC Fund, a series of American Funds Insurance Series, a Investment Subadviser: Capital Research and Management registered open-end investment company. The International Company Fund seeks to make shareholders' investment grow over time by investing primarily in common stocks of companies located outside the United States. The International Fund is designed for investors seeking capital appreciation through stocks. ----------------------------------------------------------------- ------------------------------------------------------------ ----------------------------------------------------------------- ------------------------------------------------------------- ING Capital Guardian Large Cap Value Portfolio (Class S) Seeks long-term growth of capital and income. The Portfolio Investment Adviser: Directed Services, Inc. Manager seeks to achieve the Portfolio's investment Investment Subadviser: Capital Guardian Trust Company objective by investing, under normal market conditions, at least 80% of its assets in equity and equity-related securities of companies with market capitalizations greater than $1 billion at the time of investment. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Capital Guardian Managed Global Portfolio (Class S) Seeks capital appreciation. Current income is only an Investment Adviser: Directed Services, Inc. incidental consideration. This portfolio is not Investment Subadviser: Capital Guardian Trust Company diversified. The Portfolio invests primarily in common stocks traded in securities markets throughout the world. The Portfolio may invest up to 100% of its total assets in securities traded in securities markets outside the United States. The Portfolio generally invests at least 65% of its total assets in at least three different countries, one of which may be the United States. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Capital Guardian Small Cap Portfolio (Class S) Seeks long-term capital appreciation. The Portfolio invests Investment Adviser: Directed Services, Inc. at least 80% of its assets in equity securities of small Investment Subadviser: Capital Guardian Trust Company capitalization ("small-cap") companies. Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Developing World Portfolio (Class S) The Portfolio normally invests at least 80% of its assets Investment Adviser: Directed Services, Inc. in securities of issuers located in at least three Investment Subadviser: IIM B.V. countries with emerging securities markets. The Portfolio will provide shareholders with at least 60 days prior notice of any change in this investment policy. The Portfolio may invest up to 20% of its assets in securities of U.S. and other developed market issuers, including investment-grade debt securities of U.S. issuers. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Eagle Asset Value Equity Portfolio Seeks capital appreciation. Dividend income is a secondary (Class S) objective. The Portfolio normally invests at least 80% of Investment Adviser: Directed Services, Inc. its assets in equity securities of domestic and foreign Investment Subadviser: Eagle Asset Management, Inc. issuers that meet quantitative standards relating to financial soundness and high intrinsic value relative to price. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING FMRSM Diversified Mid-Cap Portfolio Seeks long-term growth of capital. The Portfolio Manager (Class S) normally invests the Portfolio's assets primarily in common Investment Adviser: Directed Services, Inc. stocks. The Portfolio Manager normally invests at least 80% Investment Subadviser: Fidelity Management & Research of the Portfolio's assets in securities of companies with Co. medium market capitalizations. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Goldman Sachs Internet TollkeeperSM Portfolio* (Class S) Seeks long-term growth of capital. The Portfolio invests, under normal circumstances, at least 80% of its net assets * Goldman Sachs Internet TollkeeperSM is a service mark of plus any borrowings for investment purposes (measured at Goldman Sachs & Co time of investment) in equity investments in "Internet Investment Adviser: Directed Services, Inc. Tollkeeper" companies, which are companies in the media, Investment Subadviser: Goldman Sachs Asset telecommunications, technology and internet sectors, which Management, L.P. provide access, infrastructure, content and services to internet companies and internet users. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Hard Assets Portfolio (Class S) A nondiversified Portfolio that seeks long-term capital Investment Adviser: Directed Services, Inc. appreciation. The Portfolio normally invests at least 80% Investment Subadviser: Baring International Investment of its assets in the equities of producers of commodities. Limited ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING International Portfolio (Class S) Seeks long-term growth of capital. Under normal conditions, Investment Adviser: Directed Services, Inc. the Portfolio invests at least 80% of its net assets and Investment Subadviser: ING Investments, LLC borrowings for investment purposes in equity securities of issuers located in countries outside of the United States. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Janus Growth and Income Portfolio (Class S) Seeks long-term capital growth and current income. The Investment Adviser: Directed Services, Inc. Portfolio normally emphasizes investments in common stocks. Investment Subadviser: Janus Capital Management, LLC It will normally invest 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. Because of this investment strategy, the Portfolio is not designed for investors who need consistent income. Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Janus Special Equity Portfolio (Class S) A nondiversified Portfolio that seeks capital appreciation. Investment Adviser: Directed Services, Inc. The Portfolio invests, under normal circumstances, at least Investment Subadviser: Janus Capital Management, LLC 80% of its net assets (plus borrowings for investment purposes) in equity securities with the potential for long-term growth of capital. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Jennison Equity Opportunities Portfolio (Class S) Seeks long-term capital growth. The Portfolio normally Investment Adviser: Directed Services, Inc. invests at least 80% of its net assets (plus any borrowings Investment Subadviser: Jennison Associates, LLC for investment purposes) in attractively valued equity securities of companies with current or emerging earnings growth the Portfolio Manager believes to be not fully appreciated or recognized by the market. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING JPMorgan Small Cap Equity Portfolio (Class S) A nondiversified Portfolio that seeks capital growth over Investment Adviser: Directed Services, Inc. the long term. Under normal market conditions, the Investment Subadviser: J.P. Morgan Investment Portfolio invests at least 80% of its total assets in Management, Inc. equity securities of small-cap companies. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Julius Baer Foreign Portfolio (Class S) A nondiversified Portfolio that seeks total return from Investment Adviser: Directed Services, Inc. long-term capital growth and income. Under normal Investment Subadviser: Julius Baer Investment conditions, the Portfolio will invest at least 80% of its Management, Inc. total assets in a broad portfolio of equity securities of established foreign companies of various sizes, including foreign subsidiaries of U.S. companies, based in countries that are represented in the Morgan Stanley Capital International, Europe, Australia and Far East Index (the "EAFE Index"). ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Liquid Assets Portfolio (Class S) Seeks high level of current income consistent with the Investment Adviser: Directed Services, Inc. preservation of capital and liquidity. The Portfolio Investment Subadviser: ING Investment Management, LLC Manager strives to maintain a stable $1 per share net asset value and its investment strategy focuses on safety of principal, liquidity and yield, in order of importance, to achieve this goal. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Marsico Growth Portfolio (Class S) Seeks capital appreciation. The Portfolio invests primarily Investment Adviser: Directed Services, Inc. in equity securities selected for their growth potential. Investment Subadviser: Marsico Capital Management, LLC The Portfolio may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. Access - 131180 ---------------------------------------------------------------- ------------------------------------------------------------- ---------------------------------------------------------------- ------------------------------------------------------------- ING Mercury Focus Value Portfolio (Class S) Seeks long-term growth of capital. The Portfolio tries to Investment Adviser: Directed Services, Inc. achieve its investment objective by investing primarily in Investment Subadviser: Mercury Advisors a diversified portfolio consisting of equity securities that the Portfolio Manager believes are undervalued relative to its assessment of the current or prospective condition of the issuer. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Mercury Fundamental Growth Portfolio Seeks long-term growth of capital. The Portfolio invests in (Class S) a diversified portfolio consisting primarily of common Investment Adviser: Directed Services, Inc. stocks. The Portfolio will generally invest at least 65% of Investment Subadviser: Mercury Advisors its total assets in the following equity securities: common stock,convertible preferred stock, securities convertible into common stock and rights and warrants to subscribe to common stock. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS Mid-Cap Growth Portfolio (Class S) A nondiversified Portfolio that seeks long-term growth of Investment Adviser: Directed Services, Inc. capital. The Portfolio normally invests at least 80% of its Investment Subadviser: Massachusetts Financial Services net assets in common stocks and related securities (such as Company preferred stocks, convertible securities and depositary receipts) of companies with medium market capitalizations (or "mid-cap companies") which the Portfolio Manager believes have above-average growth potential. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS Research Portfolio (Class S) Seeks long-term growth of capital and future income. The Investment Adviser: Directed Services, Inc. Portfolio normally invests at least 80% of its net assets Investment Subadviser: Massachusetts Financial Services in common stocks and related securities (such as preferred Company stocks, convertible securities and depositary receipts). The Portfolio focuses on companies that the Portfolio Manager believes have favorable prospects for long-term growth, attractive valuations based on current and expected earnings or cash flow, dominant or growing market share and superior management. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS Total Return Portfolio (Class S) Seeks above-average income (compared to a portfolio Investment Adviser: Directed Services, Inc. entirely invested in equity securities) consistent with the Investment Subadviser: Massachusetts Financial Services prudent employment of capital. Secondarily seeks reasonable Company opportunity for growth of capital and income. The Portfolio is a "balanced fund," and invests in a combination of equity and fixed income securities. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING PIMCO Core Bond Portfolio (Class S) Seeks maximum total return, consistent with preservation of Investment Adviser: Directed Services, Inc. capital and prudent investment management. The Portfolio is Investment Subadviser: Pacific Investment Management diversified and seeks to achieve its investment objective Company, LLC by investing under normal circumstances at least 80% of its net assets (plus borrowings for investment purposes) in a diversified portfolio of fixed income instruments of varying maturities. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Salomon Brothers All Cap Portfolio A nondiversified Portfolio that seeks capital appreciation (Class S) through investment in securities which the Subadviser Investment Adviser: Directed Services, Inc. believes have above-average capital appreciation potential. Investment Subadviser: Salomon Brothers Asset The Portfolio invests primarily in common stocks and common Management, Inc. stock equivalents, such as preferred stocks and securities convertible into common stocks, of companies the Portfolio Manager believes are undervalued in the marketplace. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Salomon Brothers Investors Portfolio (Class S) Seeks long-term growth of capital. Secondarily seeks Investment Adviser: Directed Services, Inc. current income. The Portfolio invests primarily in equity Investment Subadviser: Salomon Brothers Asset securities of U.S. companies. The Portfolio may also invest Management, Inc. in other equity securities. To a lesser degree, the Portfolio invests in income producing securities such as debt securities. Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING T. Rowe Price Capital Appreciation Portfolio (Class S) Seeks, over the long-term, a high total investment return, Investment Adviser: Directed Services, Inc. consistent with the preservation of capital and prudent Investment Subadviser: T. Rowe Price Associates, Inc. investment risk. The Portfolio pursues an active asset allocation strategy whereby investments are allocated among three asset classes - equity securities, debt securities and money market instruments. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING T. Rowe Price Equity Income Portfolio (Class S) Seeks substantial dividend income as well as long-term Investment Adviser: Directed Services, Inc. growth of capital. The Portfolio normally invests at least Investment Subadviser: T. Rowe Price Associates, Inc. 80% of its assets in common stocks, with 65% in the common stocks of well-established companies paying above-average dividends. The Portfolio may also invest in convertible securities warrants and preferred stocks. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING UBS U.S. Balanced Portfolio (Class S) Seeks to maximize total return over the long term by Investment Adviser: Directed Services, Inc. allocating its assets among stocks, bonds, short-term Investment Subadviser: UBS Global Asset Management instruments and other investments. The Portfolio Manager (Americas) Inc. allocates the Portfolio's assets among the following classes, or types, of investments: stocks, bonds, and short-term money market debt obligations. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Van Kampen Equity Growth Portfolio (Class S) Seeks long-term capital appreciation. The Portfolio Manager Investment Adviser: Directed Services, Inc. seeks to maximize long-term capital appreciation by Investment Subadviser: Van Kampen investing primarily in growth-oriented equity securities of large-capitalization U.S. and, to a limited extent, foreign companies that are listed on U.S. exchanges or traded in U.S. markets. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Van Kampen Global Franchise Portfolio (Class S) A nondiversified Portfolio that seeks long-term capital Investment Adviser: Directed Services, Inc. appreciation. The Portfolio Manager seeks long-term capital Investment Subadviser: Van Kampen appreciation by investing primarily in equity securities of issuers located throughout the world that it believes have, among other things, resilient business franchises and growth potential. The Portfolio may invest of in the securities of companies of any size. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Van Kampen Growth and Income Portfolio (Class S) Seeks long-term growth of capital and income. Under normal Investment Adviser: Directed Services, Inc. market conditions, the Portfolio Manager seeks to achieve Investment Subadviser: Van Kampen the Portfolio's investment objective by investing primarily in what it believes to be income-producing equity securities, including common stocks and convertible securities; although investments are also made in non-convertible preferred stocks and debt securities rated "investment grade," which are securities rated within the four highest grades assigned by Standard & Poor's ("S&P") or by Moody's Investors Service, Inc. ("Moody's"). ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Van Kampen Real Estate Portfolio A nondiversified Portfolio that seeks capital appreciation. (Class S) Secondarily seeks current income. The Portfolio invests at Investment Adviser: Directed Services, Inc. least 80% of its assets in equity securities of companies Investment Subadviser: Van Kampen in the U.S. real estate industry that are listed on national exchanges or the National Association of Securities Dealers Automated Quotation System ("NASDAQ"). Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Partners, Inc. 151 Farmington Avenue, Hartford, CT 06156-8962 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING JPMorgan Fleming International Portfolio (Class S) Seeks long-term growth of capital. Invests primarily (at Investment Adviser: ING Life Insurance and Annuity least 65% of total assets) in the equity securities of Company foreign companies that the subadviser believes have high Investment Subadviser: J.P. Morgan Fleming Asset Management growth potential. Will normally invest in securities of at (London) Ltd. least three different countries other than the U.S. and will invest in both developed and developing markets. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Salomon Brothers Aggressive Growth Portfolio Seeks long-term growth of capital. Invests primarily (at (Service Class) least 80% of net assets under normal circumstances) in Investment Adviser: ING Life Insurance and Annuity common stocks and related securities, such as preferred Company stocks, convertible securities and depositary receipts, of Investment Subadviser: Salomon Brothers Asset emerging growth companies. Management, Inc. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Variable Insurance Trust 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING VP Worldwide Growth Portfolio Seeks long-term capital appreciation. A nondiversified Investment Adviser: ING Investments, LLC Portfolio that under normal conditions, invests at least 65% of net assets in equity securities of issuers located in at least three countries, one of which may be the U.S. Generally invests at least 75% of total assets in common and preferred stocks, warrants and convertible securities. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Variable Portfolios, Inc. 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING VP Bond Portfolio (Class S) Seeks to maximize total return as is consistent with Investment Adviser: ING Investments, LLC reasonable risk, through investment in a diversified Investment Subadviser: Aeltus Investment portfolio consisting of debt securities. Under normal Management, Inc. market conditions, invests at least 80% of net assets in high-grade corporate bonds, mortgage-related and other asset-backed securities, and securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The Portfolio may invest up to 15% of total assets in high-yield instruments and up to 25% of total assets in foreign debt securities. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING VP Index Plus LargeCap Portfolio Seeks to outperform the total return performance of the (Class S) Standard & Poor's 500 Composite Index (S&P 500), while Investment Adviser: ING Investments, LLC maintaining a market level of risk. Invests at least 80% of Investment Subadviser: Aeltus Investment net assets in stocks included in the S&P 500. The Management, Inc. subadviser's objective is to overweight those stocks in the S&P 500 that they believe will outperform the index and underweight or avoid those stocks in the S&P 500 that they believe will underperform the index. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING Variable Products Trust 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING VP Growth Opportunities Portfolio Seeks long-term growth of capital. Invests primarily in (Service Class) common stock of U.S. companies that the portfolio managers Investment Adviser: ING Investments, LLC feel have above average prospects for growth. Under normal market conditions, invests at least 65% of total assets in securities purchased on the basis of the potential for capital appreciation. These securities may be from large-cap, mid-cap or small-cap companies. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Access - 131180 ING VP MagnaCap Portfolio (Service Class) Seeks growth of capital, with dividend income as a Investment Adviser: ING Investments, LLC secondary consideration. Normally invests at least 80% of assets in common stocks of large companies, which are those included in the 500 largest U.S. companies, as measured by total revenues, net assets, cash flow or earnings, or the 1,000 largest companies as measured by equity market capitalization. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ING VP SmallCap Opportunities Portfolio Seeks long-term capital appreciation. Normally invests at (Service Class) least 80% of assets in the common stock of smaller, Investment Adviser: ING Investments, LLC lesser-known U.S. companies that are believed to have above average prospects for growth. For this Portfolio, smaller companies are those with market capitalizations that fall within the range of companies in the Russell 2000 Index. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- AIM Variable Insurance Funds 11 Greenway Plaza, Suite 100, Houston, TX 77046-1173 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- AIM V.I. Dent Demographic Trends Fund (Series II) Seeks long-term growth of capital. Seeks to meet its Investment Adviser: A I M Advisors, Inc. objective by investing in securities of companies that are Investment Subadviser: H.S. Dent Advisors, Inc. likely to benefit from changing demographic, economic and lifestyle trends. These securities may include common stocks, convertible bonds, convertible preferred stocks and warrants of companies within a broad range of market capitalizations. ----------------------------------------------------------------- ------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- Fidelity(R) Variable Insurance Products Portfolio 82 Devonhire Street, Boston, MA 02109 ------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Fidelity(R)VIP Equity-Income Portfolio (Service Seeks reasonable income. Also considers the potential for Class 2) capital appreciation. Seeks to achieve a yield which Investment Adviser: Fidelity Management & Research Co. exceeds the composite yield on the securities comprising Investment Subadviser: Subadviser: FMR Co., Inc. the Standard & Poor's 500 Index. Normally invests at least 80% of total assets in income-producing equity securities (which tends to lead to investments in large cap "value" stocks). ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Fidelity(R)VIP Growth Portfolio (Service Class 2) Seeks to achieve capital appreciation. Normally invests Investment Adviser: Fidelity Management & Research primarily in common stocks of companies the investment Co. adviser believes have above-average growth potential (often Investment Subadviser: Subadviser: FMR Co., Inc. called "growth" stocks). Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO Variable Investment Funds, Inc. 7800 East Union Avenue, Denver, CO 80237 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- Financial Services Fund Seeks capital growth. The Fund normally invests at least Investment Adviser: INVESCO Variable Investment Funds, Inc. 80% of its net assets in the equity securities and Investment Subadviser: INVESCO Funds Group, Inc. equity-related instruments of companies involved in the financial services sector. These companies include, but are not limited to, banks (regional and money centers), insurance companies (life, property and casualty, and multi-line), investment and miscellaneous industries (asset managers, brokerage firms, and government sponsored agencies) and suppliers to financial services companies. At any given time, 20% of the Fund's assets is not required to be invested in the sector. In general, the Fund emphasizes companies that INVESCO believes are strongly managed and will generate above-average long-term capital appreciation. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- Health Sciences Fund Seeks capital growth by normally investing at least 80% of Investment Adviser: INVESCO Variable Investment Funds, Inc. its net assets in the equity securities and equity-related Investment Subadviser: INVESCO Funds Group, Inc. instruments of companies that develop, produce, or distribute products or services related to health care. These companies include, but are not limited to, medical equipment or supplies, pharmaceuticals, biotechnology, and health care providers and services companies. At any given time, 20% of the Fund's assets is not required to be invested in the sector. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- Leisure Fund Seeks capital growth. The Fund normally invests at least Investment Adviser: INVESCO Variable Investment Funds, Inc. 80% of its net assets in the equity securities and Investment Subadviser: INVESCO Funds Group, Inc. equity-related instruments of companies engaged in the design, production, and distribution of products related to leisure activities. These industries include, but are not limited to, hotels/gaming, publishing, advertising, beverages, audio/video, broadcasting-radio/TV, cable & satellite operators, cable & satellite programmers, motion pictures & TV, recreation services/entertainment, retail, and toys. At any given time, 20% of the Fund's assets is not required to be invested in the sector. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- Utilities Fund Seeks capital growth. It also seeks current income. The Investment Adviser: INVESCO Variable Investment Funds, Inc. Fund normally invests at least 80% of its net assets in the Investment Subadviser: INVESCO Funds Group, Inc. equity securities and equity-related instruments of companies engaged in utilities-related industries. These include, but are not limited to, 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. A portion of the Fund's assets are not required to be invested in the sector. Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Liberty Variable Insurance Trust 600 Atlantic Avenue, Boston, MA 02210 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Colonial Small Cap Value Fund (Class B) Seeks long-term growth by investing primarily in small Investment Adviser: Columbia Management capitalization equities. Advisers, Inc. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO Variable Insurance Trust 840 Newport Center Drive, Suite 300, Newport Beach, CA 92660 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO High Yield Portfolio Seeks maximum total return, consistent with preservation of Investment Adviser: Pacific Investment capital and prudent investment management. Management Co. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO StocksPLUS Growth and Income Portfolio Seeks total return which exceeds that of the S&P 500. Investment Adviser: Pacific Investment Management Co. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Pioneer Variable Contracts Trust 60 State Street, Boston, MA 02109 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Pioneer Fund VCT Portfolio (Class II) Seeks reasonable income and capital growth. Invests in a Investment Adviser: Pioneer Investment Management, Inc. broad list of carefully selected, reasonably priced securities rather than in securities whose prices reflect a premium resulting from their current market popularity. Invests the major portion of its assets in equity securities, primarily of U.S. issuers. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Pioneer Mid Cap Value VCT Portfolio (Class II) Seeks capital appreciation by investing in a diversified Investment Adviser: Pioneer Investment Management, Inc. portfolio of securities consisting primarily of common stocks. Normally, invests at least 80% of total assets in equity securities of mid-size companies, that is, companies with market values within the range of market values of companies included in the Russell Midcap(R) Value Index. ----------------------------------------------------------------- ------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- Pro Funds VP 3435 Stelzer Road, Suite 1000, P.O. Box 182100, Columbus, OH 43218-2000 ------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ProFund VP Bull Seeks daily investment results, before fees and expenses, Investment Adviser: ProFund Advisors, LLC that correspond to the daily performance of the S&P 500 Index. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ProFund VP Europe 30 Seeks daily investment results, before fees and expenses, Investment Adviser: ProFund Advisors, LLC that correspond to the daily performance of the ProFunds Europe 30 Index. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ProFund VP Rising Rates Opportunity Seeks daily investment results, before fees and expenses, Investment Adviser: ProFund Advisors, LLC that correspond to one and one-quarter times (125%) the inverse (opposite) of the daily price movement of the most recently issued 30-year U.S. Treasury Bond ("Long Bond"). ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- ProFund VP Small-Cap Seeks daily investment results, before fees and expenses, Investment Adviser: ProFund Advisors, LLC that correspond to the daily performance of the Russell 2000 Index. Access - 131180 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Prudential Series Fund, Inc. 751 Broad Street, Newark, NJ 07102 ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- Jennison Portfolio (Class II) Seeks to achieve long-term growth of capital. Invests Investment Adviser: Prudential Investments, LLC primarily in equity securities of major, established Investment Subadviser: Jennison Associates, LLC corporations that the investment adviser believes offer above-average growth prospects. May invest up to 30% of total assets in foreign securities. Normally invests 65% of total assets in common stocks and preferred stocks of companies with capitalization in excess of $1 billion. ----------------------------------------------------------------- ------------------------------------------------------------- ----------------------------------------------------------------- ------------------------------------------------------------- SP Jennison International Growth Portfolio (Class II) Seeks long-term growth of capital. Invests in Investment Adviser: Prudential Investments, LLC equity-related securities of foreign issuers that the Investment Subadviser: Jennison Associates, LLC subadviser thinks will increase in value over a period of years. Invests primarily in the common stock of large and medium-sized foreign companies. Under normal circumstances, invests at least 65% of total assets in common stock of foreign companies operating or based in at least five different countries. ----------------------------------------------------------------- --------------
Access - 131180 -------------------------------------------------------------------------------- APPENDIX C -------------------------------------------------------------------------------- FIXED ACCOUNT I Fixed Account I ("Fixed Account") is an optional fixed interest allocation offered during the accumulation phase of your variable annuity contract between you and ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we" or "our"). The Fixed Account, which is a segregated asset account of ING USA, provides a means for you to invest on a tax-deferred basis and earn a guaranteed interest for guaranteed interest periods (Fixed Interest Allocation(s)). We will credit your Fixed Interest Allocation(s) with a fixed rate of interest. We currently offer Fixed Interest Allocations with guaranteed interest periods of 5, 7 and 10 years. In addition, we may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively in connection with our dollar cost averaging program. We may offer additional guaranteed interest periods in some or all states, may not offer all guaranteed interest periods on all contracts or in all states and the rates for a given guaranteed interest period may vary among contracts. We set the interest rates periodically. We may credit a different interest rate for each interest period. The interest you earn in the Fixed Account as well as your principal is guaranteed by ING USA, as long as you do not take your money out before the maturity date for the applicable interest period. If you take your money out from a Fixed Interest Allocation more than 30 days before the applicable maturity date, we will apply a market value adjustment ("Market Value Adjustment"). A Market Value Adjustment could increase or decrease your contract value and/or the amount you take out. A surrender charge may also apply to withdrawals from your contract. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. For contracts sold in some states, not all Fixed Interest Allocations are available. You have a right to return a contract for a refund as described in the prospectus. THE FIXED ACCOUNT You may allocate premium payments and transfer your Contract value to the guaranteed interest periods of the Fixed Account during the accumulation period as described in the prospectus. Every time you allocate money to the Fixed Account, we set up a Fixed Interest Allocation for the guaranteed interest period you select. We will credit your Fixed Interest Allocation with a guaranteed interest rate for the interest period you select, so long as you do not withdraw money from that Fixed Interest Allocation before the end of the guaranteed interest period. Each guaranteed interest period ends on its maturity date which is the last day of the month in which the interest period is scheduled to expire. Your Contract value in the Fixed Account is the sum of your Fixed Interest Allocations and the interest credited as adjusted for any withdrawals, transfers or other charges we may impose, including any Market Value Adjustment. Your Fixed Interest Allocation will be credited with the guaranteed interest rate in effect for the guaranteed interest period you selected when we receive and accept your premium or reallocation of Contract value. We will credit interest daily at a rate that yields the quoted guaranteed interest rate. If you surrender, withdraw, transfer or annuitize your investment in a Fixed Interest Allocation more than 30 days before the end of the guaranteed interest period, we will apply a Market Value Adjustment to the transaction. A Market Value Adjustment could increase or decrease the amount you surrender, withdraw, transfer or annuitize, depending on current interest rates at the time of the transaction. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. GUARANTEED INTEREST RATES Each Fixed Interest Allocation will have an interest rate that is guaranteed as long as you do not take your money out until its maturity date. We do not have a specific formula for establishing the guaranteed interest rates for the different guaranteed interest periods. We determine guaranteed interest rates at our sole Access - 131180 discretion. We cannot predict the level of future interest rates. For more information see the prospectus for the Fixed Account. TRANSFERS FROM A FIXED INTEREST ALLOCATION You may transfer your Contract value in a Fixed Interest Allocation to one or more new Fixed Interest Allocations with new guaranteed interest periods, or to any of the subaccounts of ING USA's Separate Account B as described in the prospectus on the maturity date of a guaranteed interest period. The minimum amount that you can transfer to or from any Fixed Interest Allocation is $100. Transfers from a Fixed Interest Allocation may be subject to a Market Value Adjustment. If you have a special Fixed Interest Allocation that was offered exclusively with our dollar cost averaging program, cancelling dollar cost averaging will cause a transfer of the entire Contract value in such Fixed Interest Allocation to the Liquid Assets subaccount, and such a transfer will be subject to a Market Value Adjustment. Please be aware that the benefit we pay under certain optional benefit riders will be adjusted by any transfers you make to and from the Fixed Interest Allocations during specified periods while the rider is in effect. See "Optional Riders" in the prospectus. WITHDRAWALS FROM A FIXED INTEREST ALLOCATION During the accumulation phase, you may withdraw a portion of your Contract value in any Fixed Interest Allocation. You may make systematic withdrawals of only the interest earned during the prior month, quarter or year, depending on the frequency chosen, from a Fixed Interest Allocation under our systematic withdrawal option. A withdrawal from a Fixed Interest Allocation may be subject to a Market Value Adjustment and a contract surrender charge. Be aware that withdrawals may have federal income tax consequences, including a 10% penalty tax, as well as state income tax consequences. Please be aware that the benefit we pay under any of the optional benefit riders will be reduced by any withdrawals you made from the Fixed Interest Allocations during the period while the rider is in effect. See "Optional Riders" in the prospectus. MARKET VALUE ADJUSTMENT A Market Value Adjustment may decrease, increase or have no effect on your Contract value. We will apply a Market Value Adjustment (i) whenever you withdraw or transfer money from a Fixed Interest Allocation (unless made within 30 days before the maturity date of the applicable guaranteed interest period, or under the systematic withdrawal or dollar cost averaging program) and (ii) if on the annuity start date a guaranteed interest period for any Fixed Interest Allocation does not end on or within 30 days of the annuity start date. A Market Value Adjustment may be positive, negative or result in no change. In general, if interest rates are rising, you bear the risk that any Market Value Adjustment will likely be negative and reduce your Contract value. On the other hand, if interest rates are falling, it is more likely that you will receive a positive Market Value Adjustment that increases your Contract value. In the event of a full surrender, transfer or annuitization from a Fixed Interest Allocation, we will add or subtract any Market Value Adjustment from the amount surrendered, transferred or annuitized. In the event of a partial withdrawal, transfer or annuitization, we will add or subtract any Market Value Adjustment from the total amount withdrawn, transferred or annuitized in order to provide the amount requested. If a negative Market Value Adjustment exceeds your Contract value in the Fixed Interest Allocation, we will consider your request to be a full surrender, transfer or annuitization of the Fixed Interest Allocation. CONTRACT VALUE IN THE FIXED INTEREST ALLOCATIONS On the contract date, the Contract value in any Fixed Interest Allocation in which you are invested is equal to the portion of the initial premium paid and designated for allocation to the Fixed Interest Allocation. On each business day after the contract date, we calculate the amount of Contract value in each Fixed Interest Allocation as follows: Access - 131180 (1) We take the Contract value in the Fixed Interest Allocation at the end of the preceding business day. (2) We credit a daily rate of interest on (1) at the guaranteed rate since the preceding business day. (3) We add (1) and (4) We subtract from (3) any transfers from that Fixed Interest Allocation. (5) We subtract from (4) any withdrawals, and then subtract any contract fees (including any rider charges) and premium taxes. Additional premium payments and transfers allocated to the Fixed Account will be placed in a new Fixed Interest Allocation. The Contract value on the date of allocation will be the amount allocated. Several examples which illustrate how the Market Value Adjustment works are included in the prospectus for the Fixed Account CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value of amounts allocated to the Fixed Account will fluctuate daily based on the interest credited to Fixed Interest Allocations, any Market Value Adjustment, and any surrender charge. 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, and then we deduct any surrender charge, 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. DOLLAR COST AVERAGING FROM FIXED INTEREST ALLOCATIONS You may elect to participate in our dollar cost averaging program if you have at least $1,200 of Contract value in Fixed Account Interest Allocations with a guaranteed interest period of 1 year or less. The 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 Fixed Interest Allocations or contract investment portfolio 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 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. 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. 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. SUSPENSION OF PAYMENTS We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. MORE INFORMATION See the prospectus for Fixed Account I. Access - 131180 -------------------------------------------------------------------------------- APPENDIX D -------------------------------------------------------------------------------- FIXED INTEREST DIVISION A Fixed Interest Division option is available through the group and individual deferred variable annuity contracts offered by ING USA Annuity and Life Insurance Company. The Fixed Interest Division is part of the ING USA General Account. Interests in the Fixed Interest Division have not been registered under the Securities Act of 1933, and neither the Fixed Interest Division nor the General Account are registered under the Investment Company Act of 1940. Interests in the Fixed Interest Division are offered in certain states through an Offering Brochure, dated May 1, 2003. The Fixed Interest Division is different from the Fixed Account which is described in the prospectus but which is not available in your state. If you are unsure whether the Fixed Account is available in your state, please contact our Customer Service Center at (800) 366-0066. When reading through the Prospectus, the Fixed Interest Division should be counted among the various investment options available for the allocation of your premiums, in lieu of the Fixed Account. The Fixed Interest Division may not be available in some states. Some restrictions may apply. You will find more complete information relating to the Fixed Interest Division in the Offering Brochure. Please read the Offering Brochure carefully before you invest in the Fixed Interest Division. Access - 131180 -------------------------------------------------------------------------------- APPENDIX E -------------------------------------------------------------------------------- EXAMPLES OF WITHDRAWAL ADJUSTMENT FOR 7% SOLUTION DEATH BENEFIT ELEMENT These examples assume that withdrawals have not exceeded 7% of premium in any year. They apply to the 7% Solution Death Benefit Element of the Max 7 Death Benefit. 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) Access - 131180 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) Access - 131180 -------------------------------------------------------------------------------- Appendix F -------------------------------------------------------------------------------- SPECIAL FUNDS AND EXCLUDED FUNDS EXAMPLES EXAMPLE #1: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element("7% MGDB")of allocating your Contract Value to Special Funds.
----------------------------------------- --------------------------------------- -------------------------------------- 7% MGDB IF 50% INVESTED 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN SPECIAL FUNDS IN SPECIAL FUNDS IN SPECIAL FUNDS ----------------------------------------- --------------------------------------- -------------------------------------- end of yr Covered Special Total end of yr Covered Special Total end of yr Covered Special Total 0 500 500 1,000 0 1,000 -- 1,000 0 0 1000 1000 1 535 500 1,035 1 1,070 -- 1,070 1 0 1000 1000 2 572 500 1,072 2 1,145 -- 1,145 2 0 1000 1000 3 613 500 1,113 3 1,225 -- 1,225 3 0 1000 1000 4 655 500 1,155 4 1,311 -- 1,311 4 0 1000 1000 5 701 500 1,201 5 1,403 -- 1,403 5 0 1000 1000 6 750 500 1,250 6 1,501 -- 1,501 6 0 1000 1000 7 803 500 1,303 7 1,606 -- 1,606 7 0 1000 1000 8 859 500 1,359 8 1,718 -- 1,718 8 0 1000 1000 9 919 500 1,419 9 1,838 -- 1,838 9 0 1000 1000 10 984 500 1,484 10 1,967 -- 1,967 10 0 1000 1000 ----------------------------------------- --------------------------------------- --------------------------------------
----------------------------------------- --------------------------------------- 7% MGDB IF TRANSFERRED TO 7% MGDB IF TRANSFERRED TO SPECIAL FUNDS COVERED FUNDS AT THE BEGINNING OF YEAR 6 AT THE BEGINNING OF YEAR 6 ----------------------------------------- --------------------------------------- end of yr Covered Special Total end of yr Covered Special Total 0 1,000 -- 1,000 0 -- 1,000 1,000 1 1,070 -- 1,070 1 -- 1,000 1,000 2 1,145 -- 1,145 2 -- 1,000 1,000 3 1,225 -- 1,225 3 -- 1,000 1,000 4 1,311 -- 1,311 4 -- 1,000 1,000 5 1,403 -- 1,403 5 -- 1,000 1,000 6 -- 1,403 1,403 6 1,070 -- 1,070 7 -- 1,403 1,403 7 1,145 -- 1,145 8 -- 1,403 1,403 8 1,225 -- 1,225 9 -- 1,403 1,403 9 1,311 -- 1,311 10 -- 1,403 1,403 10 1,403 -- 1,403 ----------------------------------------- ---------------------------------------
Access - 131180 EXAMPLE #2: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element ("7% MGDB") of allocating your Contract Value to Excluded Funds.
----------------------------------------------------------------------------- 7% MGDB IF 50% INVESTED IN EXCLUDED FUNDS ----------------------------------------------------------------------------- Covered Excluded Total -------------------------------------------------------- End of yr 7% MGDB 7% MGDB 7% MGDB Death AV AV AV Benefit 0 500 500 500 500 1,000 1,000 1,000 1 535 510 535 510 1,045 1,020 1,045 2 572 490 572 490 1,062 980 1,062 3 613 520 613 520 1,133 1,040 1,133 4 655 550 655 550 1,205 1,100 1,205 5 701 450 701 450 1,151 900 1,151 6 750 525 750 525 1,275 1,050 1,275 7 803 600 803 600 1,403 1,200 1,403 8 859 750 859 750 1,609 1,500 1,609 9 919 500 919 500 1,419 1,000 1,419 10 984 300 984 300 1,284 600 1,284 --------------------------------------------------------------------------------
----------------------------------------- ----------------------------------------- 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN EXCLUDED FUNDS IN EXCLUDED FUNDS ----------------------------------------- ----------------------------------------- ------------------------------- Covered Excluded -------------------- --------------------- End of yr 7% MGDB Death End of yr 7% MGDB" Death AV Benefit AV Benefit 0 1,000 1,000 1,000 0 1,000 1,000 1,000 1 1,070 1,020 1,070 1 1,070 1,020 1,020 2 1,145 980 1,145 2 1,145 980 980 3 1,225 1,040 1,225 3 1,225 1,040 1,040 4 1,311 1,100 1,311 4 1,311 1,100 1,100 5 1,403 900 1,403 5 1,403 900 900 6 1,501 1,050 1,501 6 1,501 1,050 1,050 7 1,606 1,200 1,606 7 1,606 1,200 1,200 8 1,718 1,500 1,718 8 1,718 1,500 1,500 9 1,838 1,000 1,838 9 1,838 1,000 1,000 10 1,967 600 1,967 10 1,967 600 600 ----------------------------------------- -----------------------------------------
Note: AV are hypothetical illustrative values. Not a projection. "7% MGDB" for Excluded funds is notional. Not payable as a benefit. Death Benefit for Excluded Funds equals Accumulation Value (AV) Access - 131180
------------------------------------------------------------------------------- TRANSFER FROM COVERED FUNDS TO EXCLUDED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV 7% MGDB AV 7% MGDB AV Death Benefit -- 1,000 1,000 -- -- 1,000 1,000 1,000 1 1,050 1,020 -- -- 1,050 1,020 1,050 2 1,103 980 -- -- 1,103 980 1,103 3 1,158 1,040 -- -- 1,158 1,040 1,158 4 1,216 1,100 -- -- 1,216 1,100 1,216 5 1,276 900 -- -- 1,276 900 1,276 6 -- -- 1,340 1,050 1,050 1,050 1,050 7 -- -- 1,407 1,200 1,200 1,200 1,200 8 -- -- 1,477 1,500 1,500 1,500 1,500 9 -- -- 1,551 1,000 1,000 1,000 1,000 10 -- -- 1,629 600 600 600 600 --------------------------------------------------------------------------------
Note: 7% MGDB transferred to Excluded Funds equals the 7% MGDB in Covered Funds (or pro-rata portion thereof for partial transfer). Transfers from Special Funds to Excluded Funds work the same as Covered to Excluded (except 7% MGDB in Special Funds does not accumulate).
------------------------------------------------------------------------------- TRANSFER FROM EXCLUDED FUNDS TO COVERED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV 7% MGDB" AV 7% MGDB AV Death Benefit -- -- -- 1,000 1,000 1,000 1,000 1,000 1 -- -- 1,050 1,020 1,020 1,020 1,020 2 -- -- 1,103 980 980 980 980 3 -- -- 1,158 1,040 1,040 1,040 1,040 4 -- -- 1,216 1,100 1,100 1,100 1,100 5 -- -- 1,276 900 900 900 900 6 945 1,050 -- -- 945 1,050 1,050 7 992 1,200 -- -- 992 1,200 1,200 8 1,042 1,500 -- -- 1,042 1,500 1,500 9 1,094 1,000 -- -- 1,094 1,000 1,094 10 1,149 600 -- -- 1,149 600 1,149 -------------------------------------------------------------------------------
Note:7% MGDB transferred to Covered Funds is the lesser of 7% MGDB in Excluded Funds (or portion thereof for partial transfer) and AV transferred to Covered Funds. Transfers from Excluded Funds to Special Funds work the same as Excluded to Covered (except 7% MGDB in Special Funds does not accumulate). Access - 131180 -------------------------------------------------------------------------------- APPENDIX G -------------------------------------------------------------------------------- EXAMPLES OF ADJUSTMENTS TO THE MGWB WITHDRAWAL ACCOUNT AND THE MAXIMUM ANNUAL WITHDRAWAL AMOUNT FOR WITHDRAWALS IN EXCESS OF THE MAXIMUM ANNUAL WITHDRAWAL AMOUNT ("EXCESS WITHDRAWAL AMOUNT") EXAMPLE #1: OWNER HAS INVESTED ONLY IN COVERED FUNDS Assume the Contract Value ("CV") before the withdrawal is $100,000 and is invested in Covered Funds only, the Eligible Payment Amount ("EPA") is $100,000, the Maximum Annual Withdrawal Amount ("MAW") is $7,000, the MGWB Withdrawal Account allocated to Covered Funds ("Covered Withdrawal Account") is $120,000, and a withdrawal of $10,000 is made. The effect of the withdrawal is calculated as follows: The new CV is $90,000 ($100,000 - $10,000). The Excess Withdrawal Amount is $3,000 ($10,000 - $7,000). The Covered Withdrawal Account is first reduced dollar-for-dollar by the portion of the withdrawal up to the MAW to $113,000 ($120,000 - $7,000), and is then reduced pro-rata based on the ratio of the Excess Withdrawal Amount to the CV (after being reduced for the withdrawal up to the MAW) to $109,354.84 ($113,000 * (1 - $3,000 / 93,000)). The EPA is reduced pro-rata based on the ratio of the Excess Withdrawal Amount to the CV (after being reduced for the withdrawal up to the MAW) to $96,774.19 ($100,000 * (1 - $3,000 / $93,000)). The reduction to the EPA for withdrawals of Excess Withdrawal Amount is applied pro-rata regardless of whether CV is allocated to Covered or Excluded Funds. The MAW is then recalculated to be 7% of the new EPA or $6,774.19 ($96.774.19 * 7%). EXAMPLE #2: OWNER HAS INVESTED ONLY IN EXCLUDED FUNDS Assume the Contract Value ("CV") before the withdrawal is $100,000 and is invested in Excluded Funds only, the Eligible Payment Amount ("EPA") is $100,000, the Maximum Annual Withdrawal Amount ("MAW") is $7,000, the MGWB Withdrawal Account allocated to Excluded Funds ("Excluded Withdrawal Account") is $120,000, and a withdrawal of $10,000 is made. The effect of the withdrawal is calculated as follows: The new CV is $90,000 ($100,000 - $10,000). The Excess Withdrawal Amount is $3,000 ($10,000 - $7.000). The Excluded Withdrawal Account is reduced pro-rata based on the ratio of the entire amount withdrawn to the CV (before the withdrawal) to $108,000 ($120,000 * (1 - $10,000 / $100,000)). The EPA is reduced pro-rata based on the ratio of the Excess Withdrawal Amount to the CV (after being reduced for the withdrawal up to the MAW) to $96,774.19 ($100,000 * (1 - $3,000/$93,000)). The reduction to the EPA for withdrawals of Excess Withdrawal Amount is applied pro-rata regardless of whether CV is allocated to Covered or Excluded Funds. The MAW is then recalculated to be 7% of the new EPA or $6,774.19 ($96.774.19 * 7%). Access - 131180 EXAMPLE #3: OWNER HAS INVESTED IN BOTH COVERED AND EXCLUDED FUNDS Assume the Contract Value ("CV") before the withdrawal is $100,000 and is invested $60,000 in Covered Funds and $40,000 in Excluded Funds. Further assume that the Eligible Payment Amount ("EPA") is $100,000, the Maximum Annual Withdrawal Amount ("MAW") is $7,000, the MGWB Withdrawal Account allocated to Covered Funds ("Covered Withdrawal Account") is $75,000, the MGWB Withdrawal Account allocated to Excluded Funds ("Excluded Withdrawal Account") is $45,000, and a withdrawal is made of $10,000 ($8,000 from Covered Funds and $2,000 from Excluded Funds). The new CV for Covered Funds is $52,000 ($60,000 - $8,000), and the new CV for Excluded Funds is $38,000 ($40,000 - $2,000). The Covered Withdrawal Account is first reduced dollar-for-dollar by the lesser of the MAW ($7,000) and the amount withdrawn from Covered Funds ($8,000) to $68,000 ($75,000 - $7,000), and is then reduced pro-rata based on the ratio of any Excess Withdrawal Amount from Covered Funds to the CV in Covered Funds (after being reduced for the withdrawal up to the MAW) to $66,716.98 ($68,000 * (1 - $1,000 / $53,000). The Excluded Withdrawal Account is reduced pro-rata based on the ratio of the amount withdrawn from Excluded Funds to the CV in Excluded Funds (prior to the withdrawal) to $42,750 ($45,000 * (1 - $2,000 / $40,000)). The EPA is reduced pro-rata based on the ratio of the Excess Withdrawal Amount to the CV (after being reduced for the withdrawal up to the MAW) to $96,774.19 ($100,000 * (1 - $3,000 / $93,000)). The reduction to the EPA for withdrawals of Excess Withdrawal Amount is applied pro-rata regardless of whether CV is allocated to Covered or Excluded Funds. The MAW is then recalculated to be 7% of the new EPA or $6,774.19 ($96.774.19 * 7%). Access - 131180 -------------------------------------------------------------------------------- APPENDIX H -------------------------------------------------------------------------------- DEATH BENEFITS FOR PRE-2000 AND YR-2000 CONTRACT OWNERS The purpose of this appendix is to describe the death benefits and the mortality and expense risk charges applicable to contract owners in the Pre-2000 and Yr-2000 categories. 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. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. 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. 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 Assets 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: Access - 131180 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. For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio; the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. 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. 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. Access - 131180 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 and Yr-2000 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 mortality and expense risk 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.
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 mortality and expense risk 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. 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- Access - 131180 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. Access - 131180 -------------------------------------------------------------------------------- APPENDIX I -------------------------------------------------------------------------------- DEATH BENEFITS FOR YR-2001 AND MAY-2001 CONTRACT OWNERS The purpose of this appendix is to describe the death benefits applicable to contract owners in the Yr-2001 and May-2001 categories, and to describe the mortality and expense risk charges for contract owners in the Yr-2001 category. OTHER THAN AS DESCRIBED 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. AS USED IN THIS APPENDIX, "NON-SPECIAL FUNDS" HAS THE SAME MEANING AS "COVERED FUNDS" IN THE PROSPECTUS. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. DEATH BENEFITS 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 Standard 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." For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the Access - 131180 ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. 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: 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. 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 SpecialFunds 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 Access - 131180 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; 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; 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 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. Access - 131180 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. 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 Yr-2001 contract owners are as follows: 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 mortality and expense risk 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. DEATH BENEFIT FOR EXCLUDED FUNDS 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. Access - 131180 -------------------------------------------------------------------------------- APPENDIX J -------------------------------------------------------------------------------- DEATH BENEFITS FOR MAY-2002 AND YR-2003 CONTRACT OWNERS The following is a description of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit for May-2002 and Yr-2003 contract owners. Other than as described 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. The 7% SOLUTION ENHANCED DEATH BENEFIT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); and b) the sum of the 7% Solution Minimum Guaranteed Death Benefit ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Enhanced Death Benefit, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Access - 131180 Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Annual Ratchet Minimum Guaranteed Death Benefit ("Annual Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds, less any credits added within 1 year prior to death. No funds are currently designated as Excluded Funds for purposes of the Annual Ratchet MGDB. The Annual Ratchet MGDB allocated to Covered Funds on the contract date equals the premium and credits allocated to Covered Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in Covered Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Covered Funds is equal to the Annual Ratchet MGDB in the Covered Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. The Annual Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium and credits allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On the contract date, the Annual Ratchet MGDB allocated to Excluded Funds is equal to the premium and credits allocated to Excluded Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in the Excluded Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums and credits and partial withdrawals attributable to Excluded Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Excluded Funds is equal to the Annual Ratchet MGDB in the Excluded Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Annual Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the 7% MGDB in Covered Funds on a pro-rata basis. The increase in the 7% MGDB allocated to Special or Excluded Funds, as applicable, will equal the decrease in the 7% MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Annual Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Annual Ratchet MGDB allocated to Covered Funds will equal Access - 131180 the lesser of the net contract value transferred and the reduction in the Annual Ratchet MGDB in Excluded Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit or the Annual Ratchet Enhanced Death Benefit described above. Each Enhanced Death Benefit is determined independently of the other at all times. 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 Yr-2003 contract owners are as follows:
YR-2003: ------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH ANNUAL BENEFIT 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% -------------------------------------------------------------------------------
The mortality and expense risk 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. Access - 131180 -------------------------------------------------------------------------------- APPENDIX K -------------------------------------------------------------------------------- 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. 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. 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. OPTIONAL RIDER CHARGES 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 or Excluded 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 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 or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Access - 131180 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. 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, plus any additional premiumadded to your Contract during the 2-year period after your rider date, reduced pro-rata for any withdrawals and 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, plus any additional premium 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 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 Access - 131180 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 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 Assets 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 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, plus any additional premiums 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 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 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 Access - 131180 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 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, 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. 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 Access - 131180 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 (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. Access - 131180 ------------------------------------------------------------------------------- APPENDIX L -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFITS FOR YR-2001 AND MAY-2001 CONTRACT OWNERS The following is a description of the optional rider benefits for Yr-2001 and May-2001 contract owners who elected an optional rider benefit. 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. 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. OPTIONAL RIDER CHARGES 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 or Excluded 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 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 or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Access - 131180 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. OPTIONAL RIDER BENEFITS 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. 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 Access - 131180 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. 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 Assets 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 Access - 131180 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: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA 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 ING USA 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 ING USA 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 Access - 131180 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 the MGIB Base 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. 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 Access - 131180 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. 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 Access - 131180 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-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 Access - 131180 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. 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 Access - 131180 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. Access - 131180 -------------------------------------------------------------------------------- APPENDIX M ------------------------------------------------------------------------------- OPTIONAL RIDER BENEFIT CHARGES AND MINIMUM GUARANTEED INCOME BENEFIT FOR MAY-2002 CONTRACT OWNERS The following is a description of the optional rider benefits for May-2002 contract owners who elected an optional rider benefit. 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 CHARGES 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 or Excluded 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 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 or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment 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 Access - 131180 rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. OPTIONAL RIDER BENEFITS 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 Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB benefit. For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. 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: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA 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 ING USA 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 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 the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the ING USA 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. Access - 131180 The MGIB Base is tracked separately for Covered, Special and Excluded 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 lesser of (a) and (b) where: a) is the Maximum MGIB Base; and b) is the sum of: 1) the MGIB Base allocated to Covered Funds; 2) the MGIB Base allocated to Special Funds; and 3) the contract value allocated to Excluded Funds. The Maximum MGIB Base is 200% of eligible premiums, adjusted pro-rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category. The MGIB Base allocated to Covered Funds equals the eligible premiums allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. The MGIB Base allocated to Special Funds equals the eligible premiums allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB BASE ALLOCATED TO SPECIAL FUNDS. The MGIB Base allocated to Excluded Funds equals the eligible premiums allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB BASE ALLOCATED TO EXCLUDED FUNDS IS USED ONLY FOR TRANSFER ADJUSTMENTS AND RIDER CHARGES. IT IS NOT USED TO DETERMINE BENEFITS. Eligible premiums are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid after that are excluded from the MGIB Base. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. Withdrawals reduce the MGIB Base on a pro-rata basis. The percentage reduction in the MGIB Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Base allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Base allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Covered or Special Funds, as Access - 131180 applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Base allocated to Excluded Funds. 2. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING 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 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 you can annuitize under the MGIB rider. 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 on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. 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 annuitize under the MGIB rider. 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, AND DIFFERENT TAX CONSEQUENCES, 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. Access - 131180 -------------------------------------------------------------------------------- Appendix N -------------------------------------------------------------------------------- Optional Rider Benefit Charges and Optional Rider Benefits for May-2002 and Yr-2003 Contract Owners The following is a description of the Minimum Guaranteed Accumulation Benefit and the Minimum Guaranteed Withdrawal Benefit for May-2002 and Yr-2003 contract owners who elected an optional rider benefit. 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 CHARGES
Minimum Guaranteed Accumulation Benefit rider:* ---------------- ------------------------------- --------------------------------- Waiting Period As an Annual Charge As a Quarterly Charge ---------------- ------------------------------- --------------------------------- 10 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base 20 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base ---------------- ------------------------------- ---------------------------------
* The MGAB Charge Base is the total of premiums added during the two-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 two-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 Date. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers may reduce the applicable MGAB Charge Base by more than the amount withdrawn or transferred. Minimum Guaranteed Withdrawal Benefit rider:
-------------------------------- ---------------------------------------------- As an Annual Charge As a Quarterly Charge -------------------------------- ---------------------------------------------- .65% of contract value 0.1625% of the MGWB Eligible Payment Amount** -------------------------------- ----------------------------------------------
** The MGWB Eligible Payment Amount is (i) the total of premiums and credit 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 and credits applied during the two-year period commencing on the rider date. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED ACCUMULATION BENEFIT RIDER (MGAB). The MGAB rider is an optional benefit which provides you with an MGAB intended to guarantee a minimum contract value at the end of a specified waiting period. Only premiums added to your Contract during the first two-year period after your rider date are included in the MGAB Base. Any additional premium payments added 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 The MGAB is a one-time adjustment to your contract value if your contract value on the MGAB Date is less than the MGAB Base. The MGAB Date is the next business day after the applicable waiting period. We calculate your Minimum Guaranteed Accumulation Benefit on this date. The MGAB rider may offer you Access - 131180 protection if your Contract loses value during the MGAB waiting period. For a 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 Excluded Funds and certain transfers, 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 Date will also reduce the MGAB Base pro-rata. The twenty-year option has a waiting period of twenty years and, other than allocations to Special Funds or Excluded 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 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 or Excluded Funds, may prevent the MGAB Base from doubling over the waiting period. 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 Covered, Special and Excluded 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 Date. The aggregate MGAB Base equals the sum of: a) the MGAB Base allocated to Covered Funds; b) the MGAB Base allocated to Special Funds; and c) the LESSER OF the contract value allocated to Excluded Funds or MGAB Base allocated to Excluded Funds. No investment options are currently designated as Special Funds for the ten-year MGAB. The following investment options are designated as Special Funds for the twenty-year MGAB: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFund VP Rising Rates Opportunity Portfolio; the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFund VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The MGAB Base for both the Covered Funds and the Excluded Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers, accumulated until the MGAB Date at 0% for the ten-year MGAB and 3.5265% for the twenty-year MGAB. The MGAB Base for Special Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers. There is no accumulation of MGAB Base for Special Funds for either the ten-year or twenty-year MGAB. If you purchased the MGAB optional benefit rider after the contract date, your MGAB Base equals your allocated contract value, plus premiums added during the two-year period after your Access - 131180 rider date, accumulated at the appropriate MGAB rate described above, and adjusted for withdrawals and transfers. We use the MGAB Charge Base to determine the periodic MGAB rider charges. The MGAB Charge Base equals the eligible premiums, adjusted for subsequent withdrawals and transfers, as allocated by fund category. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, and separate rates may apply to each. Currently, the same deduction method and rate apply to all categories. Withdrawals reduce the MGAB Base and MGAB Charge Base on a pro-rata basis. The percentage reduction in the MGAB Base and MGAB Charge Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. Net Transfers from Covered Funds or Special Funds to Excluded Funds reduce the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds on a pro-rata basis. Any resulting increase in MGAB Base and MGAB Charge Base allocated to Excluded Funds will equal the reduction in the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Net Transfers from Excluded Funds to other funds reduce the MGAB Base and MGAB Charge Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in MGAB Base and MGAB Charge Base allocated to other funds will equal the lesser of the contract value transferred and the change in the MGAB Base and MGAB Charge Base allocated to Excluded Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Any transfer within 3 years of the MGAB Date (regardless of the funds involved) reduces the MGAB Base and MGAB Charge Base for Covered, Special or Excluded Funds, as applicable, on a pro-rata basis, based on the percentage of contract value transferred, without any corresponding increase. 2) WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB DATE FROM 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. 3) ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it on the MGAB 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 Date, we will allocate the MGAB to the Liquid Assets subaccount on your behalf. After we credit 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 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 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 Date will be the first contract anniversary occurring after 10 years (for the ten-year option) or 20 years (for the Access - 131180 twenty-year option) after the rider date. The MGAB rider is not available if the MGAB 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 you terminate the MGAB rider before the MGAB Date, we will not credit you with the MGAB and we will assess the pro-rata portion of the MGAB rider charge for the current quarter. NOTIFICATION. We will report any crediting of the MGAB in your first quarterly statement following the MGAB Date. MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER (MGWB). 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 "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. Your original Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) your premium payments received during the first two contract years, if you purchased the MGWB rider on the contract date; 2) otherwise, 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, if you purchased the MGWB rider after the contract 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 Covered and Excluded Funds, adjusted for any withdrawals and transfers between Covered and Excluded Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO COVERED FUNDS, AND (B) THE LESSER OF (I) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO EXCLUDED FUNDS AND (II) THE CONTRACT VALUE IN EXCLUDED FUNDS. THUS, INVESTING IN THE EXCLUDED FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. 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 Covered Funds and pro rata for Excluded Funds, based on the source of the withdrawal. Any withdrawals greater than the 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Covered and Excluded Funds, by the proportion that the withdrawal bears to the contract value in Covered and Excluded Funds, respectively, at the time of the withdrawal.If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered 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. Access - 131180 Once your contract value is zero, any periodic payments paid under the MGWB rider also reduce the MGWB Withdrawal Account. If 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 Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds or the net contract value transferred. 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: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) 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 Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) 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. These payments are 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) 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 (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. 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%. Access - 131180 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 we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Accountwhich equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you 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. If the rider is not yet 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. Access - 131180 ING [LOGO] ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company is a stock company domiciled in Iowa. -------------------------------------------------------------------------------- Access 02/13/2004 PART B STATEMENT OF ADDITIONAL INFORMATION GOLDENSELECT ACCESS DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY CONTRACT ISSUED BY SEPARATE ACCOUNT B OF ING USA ANNUITY AND 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 ING USA Annuity and Life Insurance Company (formerly 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 ING USA Annuity and Life Insurance Company, Customer Service Center, P.O. Box 9271 Des Moines, IA 50306-9271 or telephone 1-800-366-0066. DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION: February 13, 2004 Table of Contents Item Page Introduction....................................................... Description of ING USA Annuity and Life Insurance Company.......... Separate Account B ................................................ Safekeeping of Assets ............................................. The Administrator.................................................. Independent Auditors............................................... Distribution of Contracts.......................................... IRA Partial Withdrawal Option...................................... Other Information.................................................. Financial Statements of Golden American Life Insurance Company..... Financial Statements of Golden American Separate Account B......... 2 INTRODUCTION This Statement of Additional Information provides background information regarding Separate Account B. DESCRIPTION OF ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. As of December 31, 2002, ING USA had approximately $999.1 million in stockholder's equity and approximately $17.6 billion in total assets, including approximately $11 billion of separate account assets. ING USA is authorized to do business in all jurisdictions except New York. ING USA offers variable insurance products. ReliaStar Life Insurance Company of New York ("RLNY") an affiliate of ING is licensed to do variable annuity business in the state of New York. SEPARATE ACCOUNT B Separate Account B is a separate account established by the Company for the purpose of funding variable annuity contracts issued by the Company. The separate account is registered with the Securities and Exchange Commission (SEC) as a unit investment trust under the Investment Company act of 1940, as amended. Purchase payments to accounts under the contract may be allocated to one or more of the subaccounts. Each subaccount invests in the shares of only one of the funds offered under the contracts. We may make additions to, deletions from or substitutions of available investment options as permitted by law and subject to the conditions of the contract. The availability of the funds is subject to applicable regulatory authorization. Not all funds are available in all jurisdictions or under all contracts. SAFEKEEPING OF ASSETS ING USA acts as its own custodian for Separate Account B. THE ADMINISTRATOR Effective January 1, 1997, Equitable Life Insurance Company of Iowa ("Equitable Life") and ING USA 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 ING USA. Expenses incurred by Equitable Life in relation to this service agreement were reimbursed by ING USA on an allocated cost basis. Equitable Life billed ING USA $570,000 and $309,000 pursuant to the service agreement in 2002 and 2001, respectively. Effective January 1, 2004, Equitable Life was merged into ING USA. INDEPENDENT AUDITORS Ernst & Young LLP, independent auditors, performs annual audits of ING USA (formerly Golden American Life Insurance Company) 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. ("DSI"), an affiliate of ING USA, 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 ING USA. The contracts are distributed through registered 1 representatives of other broker-dealers who have entered into selling agreements with DSI. For the years ended 2002, 2001 and 2000 commissions paid by ING USA, including amounts paid by its affiliated Company, RLNY, to DSI aggregated $287,208,000, $223,321,000 and $208,883,000, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the contracts. DSI is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478. Under a management services agreement, last amended in 1995, ING USA provides to DSI certain of its personnel to perform management, administrative and clerical services and the use of certain facilities. ING USA charges DSI 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 ING USA's employees on behalf of DSI. 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 $25,914,000, $23,138,000, and $21,296,000 for the years ended 2002, 2001, and 2000, respectively. PUBLISHED RATINGS From time to time, the rating of ING USA 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 Condensed Financial 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 death benefit option with the highest mortality and expense risk charge. The mortality and expense risk charge associated with other death benefit options 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 $ 10.00 2. Value of securities, beginning of period $ 10.00 3. Change in value of securities $ 0.10 4. Gross investment return (3) divided by (2) 0.01 5. Less daily mortality and expense charge 0.00004280 6. Less asset based administrative charge 0.00000411 7. Net investment return (4) minus (5) minus (6) 0.009953092 8. Net investment factor (1.000000) plus (7) 1.009953092 9. AUV, end of period (1) multiplied by (8) $ 10.09953092 2 Illustration of Purchase of Units (Assuming no state premium tax) Example 2. 1. Initial premium payment $ 1,000 2. AUV on effective date of purchase (see Example 1) $ 10.00 3. Number of units purchased (1) divided by (2) 100 4. AUV for valuation date following purchase (see Example 1) $ 10.09953092 5. Contract Value in account for valuation date following purchase (3) multiplied by (4) $ 1,009.95 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 not withdrawn, 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. ING USA notifies the contract owner of these regulations with a letter mailed in 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 ING USA receives the completed election form. ING USA 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. 3 CONSOLIDATED FINANCIAL STATEMENTS OF GOLDEN AMERICAN LIFE INSURANCE COMPANY (NOW ING USA ANNUITY AND LIFE INSURANCE COMPANY) The consolidated financial statements of Golden American Life Insurance Company, (as of January 1, 2004 now named ING USA Annuity and Life Insurance Company) are listed below and are included in this Statement of Additional Information: Audited Consolidated Financial Statements Report of Independent Auditors Consolidated Income Statements for the years ended December 31, 2002, 2001 and 2000 Consolidated Balance Sheets as of December 31, 2002 and 2001 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001 and 2000 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000 Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2003 and 2002 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2003 Unaudited Condensed Consolidated Statements of Changes in Shareholder's Equity for the nine months ended September 30, 2003 and 2002 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002 Notes to Unaudited Condensed Consolidated Financial Statements Other Financial Statements and Exhibits Financial Statements of Business Acquired Unaudited Pro Forma Financial Information in Accordance with Accounting Principles Generally Accepted in the United States of America Financial Statements-Statutory Basis of Ameribest Life Insurance Company as of December 31, 2002 and 2001 Financial Statements-Statutory Basis of Equitable Life Insurance Company of Iowa as of December 31, 2002 and 2001 Financial Statements-Statutory Basis of United Life and Annuity Insurance Company as of December 31, 2002 and 2001 Financial Statements-Statutory Basis of USG Annuity & Life Company as of December 31, 2002 and 2001 FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B The audited financial statements of Golden American Life Insurance Company Separate Account B, (as of January 1, 2004 now named ING USA Annuity and Life Insurance Company) are listed below and are included in this Statement of Additional Information: Audited Financial Statements of Separate Account B Report of Independent Auditors Statement of Assets and Liabilities as of December 31, 2002 Statement of Operations for the year ended December 31, 2002 Statements of Changes in Net Assets for the years ended December 31, 2002 and 2001 Unaudited Financial Statements of Separate Account B Unaudited Statement of Assets and Liabilities as of September 30, 2003 Unaudited Statement of Operations for the nine months ended September 30, 2003 Unaudited Statement of Changes in Net Assets for the quarter ended September 30, 2003 Notes to Unaudited Financial Statements 4 Financial Statements-Unaudited Golden American Life Insurance Company Separate Account B Nine months ended September 30, 2003 This page intentionally left blank. GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Financial Statements Nine months ended September 30, 2003 Contents Statement of Assets and Liabilities-Unaudited 1 Statement of Operations-Unaudited 35 Statements of Changes in Net Assets-Unaudited 69 Notes to Financial Statements-Unaudited 112 This page intentionally left blank. GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
AIM V.I. AIM V.I. AIM V.I. Dent AIM V.I. Capital Core Demographic AIM V.I. Premier Appreciation Equity Trends Growth Equity -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 58 $ 155 $ 40,460 $ 1,759 $ 131 -------------- -------------- -------------- -------------- -------------- Total assets 58 155 40,460 1,759 131 Liabilities Payable to Golden American Life Insurance Company - - 8 - - -------------- -------------- -------------- -------------- -------------- Total liabilities - - 8 - - -------------- -------------- -------------- -------------- -------------- Net assets $ 58 $ 155 $ 40,452 $ 1,759 $ 131 ============== ============== ============== ============== ============== Net assets Accumulation units $ 58 $ 155 $ 40,452 $ 1,759 $ 131 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 58 $ 155 $ 40,452 $ 1,759 $ 131 ============== ============== ============== ============== ============== Total number of mutual fund shares 3,054 8,168 8,663,765 132,383 7,180 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 59 $ 144 $ 37,587 $ 1,606 $ 124 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 1 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Alliance Alliance Bernstein Bernstein Alliance Growth and Premier Bernstein Fidelity(R)VIP Fidelity(R)VIP Income Growth Value Contrafund(R) Equity-Income -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 7,971 $ 3,241 $ 5,197 $ 13,309 $ 87,373 -------------- -------------- -------------- -------------- -------------- Total assets 7,971 3,241 5,197 13,309 87,373 Liabilities Payable to Golden American Life Insurance Company 1 - 1 1 13 -------------- -------------- -------------- -------------- -------------- Total liabilities 1 - 1 1 13 -------------- -------------- -------------- -------------- -------------- Net assets $ 7,970 $ 3,241 $ 5,196 $ 13,308 $ 87,360 ============== ============== ============== ============== ============== Net assets Accumulation units $ 7,970 $ 3,241 $ 5,196 $ 13,308 $ 87,360 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 7,970 $ 3,241 $ 5,196 $ 13,308 $ 87,360 ============== ============== ============== ============== ============== Total number of mutual fund shares 411,523 164,6664 527,061 646,672 4,353.407 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 7,943 $ 3,045 $ 4,892 $ 12,393 $ 82,504 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 2 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Franklin Fidelity (R) Small Cap Fidelity(R) VIP VIP Value Greenwich Growth Overseas Securities Appreciation -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 123,248 $ 32 $ 200 $ 605 -------------- -------------- -------------- -------------- Total assets 123,248 32 200 605 Liabilities Payable to Golden American Life Insurance Company 18 - - - -------------- -------------- -------------- -------------- Total liabilities 18 - - - -------------- -------------- -------------- -------------- Net assets $ 123,230 $ 32 $ 200 $ 605 ============== ============== ============== ============== Net assets Accumulation units $ 123,230 $ 32 $ 200 $ 605 Contracts in payout (annuitization) period - - - - -------------- -------------- -------------- -------------- Total net assets $ 23,230 $ 32 $ 200 $ 605 ============== ============== ============== ============== Total number of mutual fund shares 4,457,431 2,424 18,555 30,587 ============== ============== ============== ============== Cost of mutual fund shares $ 15,063 $ 31 $ 197 $ 640 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 3 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING GET ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Fund- Series N Series P Series Q Series R Series S -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 25,630 $ 119,323 $ 138,451 $ 140,725 $ 173,164 -------------- -------------- -------------- -------------- -------------- Total assets 25,630 119,323 138,451 140,725 173,164 Liabilities Payable to Golden American Life Insurance Company - 23 25 18 9 -------------- -------------- -------------- -------------- -------------- Total liabilities - 23 25 18 9 -------------- -------------- -------------- -------------- -------------- Net assets 25,630 119,300 138,426 140,707 173,155 ============== ============== ============== ============== ============== Net assets Accumulation units $ 25,630 $ 119,300 $ 138,426 $ 140,707 $ 173,155 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 25,630 $ 119,300 $ 138,426 $ 149,707 $ 173,155 ============== ============== ============== ============== ============== Total number of mutual fund shares 2,517,647 11,675,397 13,274,275 13,389,654 16,539,019 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 25,375 $ 117,312 $ 133,102 $ 134,150 $ 165,782 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 4 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING GET ING GET U.S. Core ING GET ING GET ING GET U.S. Core Portfolio- Fund- Fund- Fund- Portfolio- Series 2 Series T Series U Series V Series 1 (Guaranteed) -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 170,176 $ 178,613 $ 360,499 $ 237,648 $ 2,191 -------------- -------------- -------------- -------------- -------------- Total assets 170,176 178,613 360,499 237,648 2,191 Liabilities Payable to Golden American Life Insurance Company 44 40 61 19 - -------------- -------------- -------------- -------------- -------------- Total liabilities 44 40 61 19 - -------------- -------------- -------------- -------------- -------------- Net assets 170,132 178,573 360,438 237,629 2,191 ============== ============== ============== ============== ============== Net assets Accumulation units $ 170,132 $ 178,853 $ 360,438 $ 237,629 $ 2,191 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 170,132 $ 178,573 $ 360,438 $ 237,629 $ 2,191 ============== ============== ============== ============== ============== Total number of mutual fund shares 16,238,196 17,075,854 36,936,396 23,646,550 2,191 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 25,375 $ 117,312 $ 133,102 $ 134,150 $ 165,782 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 5 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING AIM ING Alliance ING AIM Mid-Cap ING Alliance Mid-Cap ING Mid-Cap Growth Mid-Cap Growth American Growth Advisor Growth Advisor Funds -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 182,362 $ 1,756 $ 380,377 $ 2,444 $ 15,129 -------------- -------------- -------------- -------------- -------------- Total assets 182,362 1,756 380,377 2,444 15,129 Liabilities Payable to Golden American Life Insurance Company 54 - 95 - 2 -------------- -------------- -------------- -------------- -------------- Total liabilities 54 - 95 - 2 -------------- -------------- -------------- -------------- -------------- Net assets 182,308 1,756 380,282 2,444 15,127 ============== ============== ============== ============== ============== Net assets Accumulation units $ 182,141 $ 1,756 $ 380,282 $ 2,444 $ 15,127 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 182,308 $ 1,756 $ 380,282 $ 2,444 $ 15,127 ============== ============== ============== ============== ============== Total number of mutual fund shares 16,024,805 154,594 29,810,078 191,652 373,284 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 155,197 $ 1,631 $ 288,224 $ 2,197 $ 15,642 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 6 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING Capital ING Capital Guardian ING Capital ING American ING American Guardian Large Cap Guardian Funds Funds Large Cap Value Managed Growth-Income International Value Advisor Global -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 12,536 $ 4,371 $ 455,675 $ 4,732 $ 292,382 -------------- -------------- -------------- -------------- -------------- Total assets 12,536 4,371 455,675 4,732 292,382 Liabilities Payable to Golden American Life Insurance Company 1 - 85 - 58 -------------- -------------- -------------- -------------- -------------- Total liabilities 1 - 85 - 58 -------------- -------------- -------------- -------------- -------------- Net assets 12,535 4,371 455,590 4,732 292,324 ============== ============== ============== ============== ============== Net assets Accumulation units $ 12,535 $ 4,371 $ 455,590 $ 4,732 $ 292,223 Contracts in payout (annuitization) period - - - - 101 -------------- -------------- -------------- -------------- -------------- Total net assets $ 12,535 $ 4,371 $ 455,590 $ 4,732 $ 292,324 ============== ============== ============== ============== ============== Total number of mutual fund shares 417,465 369,813 48,631,305 504,501 29,623,282 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 12,794 $ 4,428 $ 454,352 $ 4,250 $ 287,934 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 7 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING Capital Guardian ING Capital ING Managed ING Capital Guardian ING Developing Global Guardian Small Cap Developing World Advisor Small Cap Advisor World Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 975 $ 450,238 $ 2,301 $ 80,397 $ 1,051 -------------- -------------- -------------- -------------- -------------- Total assets 975 450,238 2,301 80,397 1,051 Liabilities Payable to Golden American Life Insurance Company - 113 - 21 - -------------- -------------- -------------- -------------- -------------- Total liabilities - 113 - 21 - -------------- -------------- -------------- -------------- -------------- Net assets 975 450,125 2,301 80,376 1,051 ============== ============== ============== ============== ============== Net assets Accumulation units $ 975 $ 450,094 $ 2,301 $ 80,306 $ 1,051 Contracts in payout (annuitization) period - 31 - 70 - -------------- -------------- -------------- -------------- -------------- Total net assets $ 975 $ 450,125 $ 2,301 $ 80,376 $ 1,051 ============== ============== ============== ============== ============== Total number of mutual fund shares 98,930 46,368,440 236,926 9,999,679 130,998 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 911 $ 375,397 $ 2,103 $ 68,549 $ 909 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 8 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING Eagle ING FMR ING ING Eagle Asset Value ING FMR Diversified Goldman Sachs Asset Value Equity Diversified Mid-Cap Internet Equity Advisor Mid-Cap Advisor Tollkeeper -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 183,411 $ 754 $ 135,719 $ 2,646 $ 36,843 -------------- -------------- -------------- -------------- -------------- Total assets 183,411 754 135,719 2,646 36,843 Liabilities Payable to Golden American Life Insurance Company 43 - 26 - 6 -------------- -------------- -------------- -------------- -------------- Total liabilities 43 - 26 - 6 -------------- -------------- -------------- -------------- -------------- Net assets 183,368 754 135,693 2,646 36,837 ============== ============== ============== ============== ============== Net assets Accumulation units $ 183,355 $ 754 $ 135,693 $ 2,646 $ 36,837 Contracts in payout (annuitization) period 13 - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 193,368 $ 754 $ 135,693 $ 2,646 $ 36,837 ============== ============== ============== ============== ============== Total number of mutual fund shares 12,980,258 53,393 15,599,939 303,790 6,234,018 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 191,753 $ 709 $ 133,204 $ 2,427 $ 33,328 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 9 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING Goldman Sachs ING Internet ING Hard ING Tollkeeper Hard Assets ING International Advisor Assets Advisor International Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 1,432 $ 95,582 $ 1,600 $ 141,696 $ 3,005 -------------- -------------- -------------- -------------- -------------- Total assets 1,432 95,852 1,600 141,696 3,005 Liabilities Payable to Golden American Life Insurance Company - 19 - 33 - -------------- -------------- -------------- -------------- -------------- Total liabilities - 19 - 33 - -------------- -------------- -------------- -------------- -------------- Net assets 1,432 95,833 1,600 141,663 3,005 ============== ============== ============== ============== ============== Net assets Accumulation units $ 1,432 $ 95,809 $ 1,600 $ 141,663 $ 3,005 Contracts in payout (annuitization) period - 24 - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 1,432 $ 95,833 $ 1,600 $ 141,663 $ 3,005 ============== ============== ============== ============== ============== Total number of mutual fund shares 242,786 7,863,144 131,113 18,004,544 381,368 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 1,391 $ 80,721 $ 1,393 $ 135,595 $ 2,678 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 10 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Janus Growth ING Janus ING Jennison Janus Growth and Income ING Janus Special Equity Equity and Income Advisor Special Equity Advisor Opportunities -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 201,439 $ 5,427 $ 42,189 $ 445 $ 288,272 -------------- -------------- -------------- -------------- -------------- Total assets 201,439 5,427 42,189 445 288,272 Liabilities Payable to Golden American Life Insurance Company 40 1 10 - 82 -------------- -------------- -------------- -------------- -------------- Total liabilities 40 1 10 - 82 -------------- -------------- -------------- -------------- -------------- Net assets 201,399 5,426 42,179 445 288,190 ============== ============== ============== ============== ============== Net assets Accumulation units $ 201,399 $ 5,426 $ 42,179 $ 445 $ 287,990 Contracts in payout (annuitization) period - - - - 200 -------------- -------------- -------------- -------------- -------------- Total net assets $ 201,399 $ 5,426 $ 42,179 $ 445 $ 288,190 ============== ============== ============== ============== ============== Total number of mutual fund shares 25,370,136 683,527 5,138,691 54,148 25,198,617 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 211,169 $ 5,177 $ 41,558 $ 406 $ 298,818 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 11 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING JPMorgan ING Jennison ING JPMorgan Fleming ING Equity Fleming Small Cap ING Julius Baer Opportunities Small Cap Equity Julius Baer Foreign Advisor Equity Advisor Foreign Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 1,092 $ 40,914 $ 6,606 $ 18,811 $ 1,544 -------------- -------------- -------------- -------------- -------------- Total assets 1,092 40,914 6,606 18,811 1,544 Liabilities Payable to Golden American Life Insurance Company - 5 1 3 - -------------- -------------- -------------- -------------- -------------- Total liabilities - 5 1 3 - -------------- -------------- -------------- -------------- -------------- Net assets 1,092 40,909 6,605 18,808 1,544 ============== ============== ============== ============== ============== Net assets Accumulation units $ 1,092 $ 40,909 $ 6,605 $ 18,808 $ 1,544 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 1,092 $ 40,909 $ 6,605 $ 18,808 $ 1,544 ============== ============== ============== ============== ============== Total number of mutual fund shares 95,364 4,380,549 708,773 2,011,911 164,967 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 1,013 $ 37,279 $ 6,035 $ 18,150 $ 1,427 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 12 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING Limited ING Liquid ING Marisco Maturity Liquid Assets Marisco Growth Bond Assets Advisor Growth Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 570,781 $ 927,814 $ 8,382 $ 694,080 $ 5,531 -------------- -------------- -------------- -------------- -------------- Total assets 570,781 927,814 8,382 694,080 5,531 Liabilities Payable to Golden American Life Insurance Company 107 156 1 220 - -------------- -------------- -------------- -------------- -------------- Total liabilities 107 156 1 220 - -------------- -------------- -------------- -------------- -------------- Net assets 570,674 927,658 8,381 693,860 5,531 ============== ============== ============== ============== ============== Net assets Accumulation units $ 570,537 $ 927,599 $ 8,381 $ 693,860 $ 5,531 Contracts in payout (annuitization) period 137 59 - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 570,674 $ 927,658 $ 8,381 $ 693,860 $ 5,531 ============== ============== ============== ============== ============== Total number of mutual fund shares 48,659,956 927,814,340 8,382,010 58,522,729 466,719 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 553,823 $ 927,814 $ 8,382 $ 591,143 $ 5,092 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 13 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING Mercury ING Mercury Mercury Focus Mercury Fundamental ING MFS Focus Value Fundamental Growth Mid-Cap Value Advisor Growth Advisor Growth -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 17,357 $ 506 $ 9,602 $ 622 $ 568,198 -------------- -------------- -------------- -------------- -------------- Total assets 17,357 506 9,602 622 568,198 Liabilities Payable to Golden American Life Insurance Company 3 - 2 - 166 -------------- -------------- -------------- -------------- -------------- Total liabilities 3 - 2 - 166 -------------- -------------- -------------- -------------- -------------- Net assets 17,354 560 9,600 622 568,032 ============== ============== ============== ============== ============== Net assets Accumulation units $ 17,354 $ 506 $ 9,600 $ 622 $ 567,969 Contracts in payout (annuitization) period - - - - 63 -------------- -------------- -------------- -------------- -------------- Total net assets $ 17,354 $ 506 $ 9,600 $ 622 $ 568,032 ============== ============== ============== ============== ============== Total number of mutual fund shares 1,772,981 51,821 1,044,826 67,747 62,234,183 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 16,142 $ 479 $ 8,799 $ 573 $ 476,390 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 14 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING MFS ING MFS Mid-Cap ING MFS ING MFS Total Growth ING MFS Research Total Return Advisor Research Advisor Return Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 5,881 $ 45,985 $ 1,501 $ 1,036,164 $ 11,606 -------------- -------------- -------------- -------------- -------------- Total assets 5,881 45,985 1,501 1,036,164 11,606 Liabilities Payable to Golden American Life Insurance Company 1 124 - 216 1 -------------- -------------- -------------- -------------- -------------- Total liabilities 1 124 - 216 1 -------------- -------------- -------------- -------------- -------------- Net assets 5,880 454,861 1,501 1,035,948 11,605 ============== ============== ============== ============== ============== Net assets Accumulation units $ 5,880 $ 454,861 $ 1,501 $ 1,035,948 $ 11,605 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 5,880 $ 454,861 $ 1,501 $ 1,035,948 $ 11,605 ============== ============== ============== ============== ============== Total number of mutual fund shares 664,834 33,827,889 111,583 64,158,755 719,978 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 5,365 $ 496,185 $ 1,419 $ 1,041,724 $ 11,137 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 15 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Salomon ING PIMCO ING Salomon Brothers ING Salomon PIMCO Core Bond Brothers All Cap Brothers Core Bond Advisor All Cap Advisor Investors -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 514,923 $ 13,416 $ 351,608 $ 3,634 $ 116,158 -------------- -------------- -------------- -------------- -------------- Total assets 514,923 13,416 351,608 3,634 116,158 Liabilities Payable to Golden American Life Insurance Company 87 1 73 - 20 -------------- -------------- -------------- -------------- -------------- Total liabilities 87 1 73 - 20 -------------- -------------- -------------- -------------- -------------- Net assets 514,836 13,415 351,535 3,634 116,138 ============== ============== ============== ============== ============== Net assets Accumulation units $ 514,836 $ 13,415 $ 351,535 $ 3,634 $ 116,138 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 514,836 $ 13,415 $ 351,535 $ 3,634 $ 116,138 ============== ============== ============== ============== ============== Total number of mutual fund shares 47,502,114 1,237,615 33,646,652 347,418 12,490,120 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 491,004 $ 13,127 $ 366,444 $ 3,337 $ 124,909 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 16 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Salomon ING T. Rowe Price ING Brothers T. Rowe Price Capital ING T. Rowe Price Investors Capital Appreciation T. Rowe Price Equity Income Advisor Appreciation Advisor Equity Income Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 800 $ 1,152,674 $ 12,815 $ 524,204 $ 7,200 -------------- -------------- -------------- -------------- -------------- Total assets 800 1,152,674 12,815 524,204 7,200 Liabilities Payable to Golden American Life Insurance Company - 233 1 104 1 -------------- -------------- -------------- -------------- -------------- Total liabilities - 233 1 104 1 -------------- -------------- -------------- -------------- -------------- Net assets 800 1,152,441 12,814 524,100 7,199 ============== ============== ============== ============== ============== Net assets Accumulation units $ 800 $ 1,151,915 $ 12,814 $ 523,564 $ 7,199 Contracts in payout (annuitization) period - 526 - 536 - -------------- -------------- -------------- -------------- -------------- Total net assets $ 800 $ 1,152,441 $ 12,814 $ 524,100 $ 7,199 ============== ============== ============== ============== ============== Total number of mutual fund shares 85,884 672,016 60,412,659 48,627,427 668,520 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 733 $ 12,044 $ 1,062,135 $ 544,180 $ 6,775 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 17 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING UBS ING Van Kampen Van Kampen ING UBS U.S. Balanced Van Kampen Equity Growth Global U.S. Balanced Advisor Equity Growth Advisor Franchise -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 56,436 $ 318 $ 20,480 $ 4,311 $ 40,493 -------------- -------------- -------------- -------------- -------------- Total assets 56,436 318 20,480 4,311 40,493 Liabilities Payable to Golden American Life Insurance Company 12 - 3 1 6 -------------- -------------- -------------- -------------- -------------- Total liabilities 12 - 3 1 6 -------------- -------------- -------------- -------------- -------------- Net assets 56,424 318 20,477 4,310 40,487 ============== ============== ============== ============== ============== Net assets Accumulation units $ 56,424 $ 318 $ 20,477 $ 4,310 $ 40,487 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 56,424 $ 318 $ 20,477 $ 4,310 $ 40,487 ============== ============== ============== ============== ============== Total number of mutual fund shares 7,036,896 39,638 2,306,317 485,459 4,148,840 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 59,702 $ 318 $ 19,420 $ 4,139 $ 37,750 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 18 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Van Kampen ING Van Kampen ING Global Van Kampen Growth and ING Van Kampen Franchise Growth and Income Van Kampen Real Estate Advisor Income Advisor Real Estate Advisor -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 9,653 $ 617,433 $ 15,516 $ 280,831 $ 4,352 -------------- -------------- -------------- -------------- -------------- Total assets 9,653 617,433 15,516 280,831 4,352 Liabilities Payable to Golden American Life Insurance Company 1 155 2 60 - -------------- -------------- -------------- -------------- -------------- Total liabilities 1 155 2 60 - -------------- -------------- -------------- -------------- -------------- Net assets 9,652 617,278 15,514 280,771 4,352 ============== ============== ============== ============== ============== Net assets Accumulation units $ 9,652 $ 617,161 $ 15,514 $ 280,685 $ 4,352 Contracts in payout (annuitization) period - 117 - 86 - -------------- -------------- -------------- -------------- -------------- Total net assets $ 9,652 $ 617,278 $ 15,514 $ 280,771 $ 4,352 ============== ============== ============== ============== ============== Total number of mutual fund shares 990,033 31,744,629 797,726 14,772,810 228,795 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 8,976 $ 712,224 $ 14,486 $ 241,788 $ 3,815 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 19 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING American ING ING Alger Century Baron ING JPMorgan Aggressive ING Alger Small Cap Small Cap Fleming Growth Growth Value Growth International -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 342 $ 115 $ 123 $ 521 $ 2,099 -------------- -------------- -------------- -------------- -------------- Total assets 342 115 123 521 2,099 Liabilities Payable to Golden American Life Insurance Company - - - - - -------------- -------------- -------------- -------------- -------------- Total liabilities - - - - - -------------- -------------- -------------- -------------- -------------- Net assets 342 115 123 521 2,099 ============== ============== ============== ============== ============== Net assets Accumulation units $ 342 $ 115 $ 123 $ 521 $ 2,099 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 342 $ 115 $ 123 $ 521 $ 2,099 ============== ============== ============== ============== ============== Total number of mutual fund shares 52,510 14,588 12,729 49,270 233,758 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 322 $ 109 $ 113 $ 492 $ 2,127 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 20 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING JPMorgan MFS(R)Capital MFS(R)Capital ING ING Mid Cap Opportunities Opportunities MFS(R) Global MFS Research Value (Initial Class) (Service Class) Growth Equity -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 2,835 $ 1,869 $ 283 $ 568 $ 84 -------------- -------------- -------------- -------------- -------------- Total assets 2,835 1,869 283 568 84 Liabilities Payable to Golden American Life Insurance Company - - - - - -------------- -------------- -------------- -------------- -------------- Total liabilities - - - - - -------------- -------------- -------------- -------------- -------------- Net assets 2,835 1,869 283 568 84 ============== ============== ============== ============== ============== Net assets Accumulation units $ 2,835 $ 1,869 $ 283 $ 568 $ 84 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 2,835 $ 1,869 $ 283 $ 568 $ 84 ============== ============== ============== ============== ============== Total number of mutual fund shares 262,723 85,269 12,955 58,212 12,364 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 2,712 $ 1,862 $ 276 $ 531 $ 80 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 21 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING Salomon ING Salomon ING Salomon ING OpCap Brothers Brothers Brothers Balanced ING PIMCO Aggressive Fundamental Investors Value Total Return Growth Value Value -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 322 $ 1,449 $ 2,476 $ 428 $ 292 -------------- -------------- -------------- -------------- -------------- Total assets 322 1,449 2,476 428 292 Liabilities Payable to Golden American Life Insurance Company - - - - - -------------- -------------- -------------- -------------- -------------- Total liabilities - - - - - -------------- -------------- -------------- -------------- -------------- Net assets 322 1,449 2,476 428 292 ============== ============== ============== ============== ============== Net assets Accumulation units $ 322 $ 1,449 $ 2,476 $ 428 $ 292 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 322 $ 1,449 $ 2,476 $ 428 $ 292 ============== ============== ============== ============== ============== Total number of mutual fund shares 28,526 132,978 75,436 29,247 25,550 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 302 $ 1,428 $ 2,540 $ 415 $ 289 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 22 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING T. Rowe Price ING UBS ING ING VIT Growth Tactical Asset Van Kampen Worldwide ING VP Equity Allocation Comstock Growth Balanced -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 1,700 $ 46 $ 23,958 $ 41,706 $ 686 -------------- -------------- -------------- -------------- -------------- Total assets 1,700 46 23,958 41,706 686 Liabilities Payable to Golden American Life Insurance Company - - 3 9 - -------------- -------------- -------------- -------------- -------------- Total liabilities - - 3 9 - -------------- -------------- -------------- -------------- -------------- Net assets 1,700 46 23,955 41,697 686 ============== ============== ============== ============== ============== Net assets Accumulation units $ 1,700 $ 46 $ 23,955 $ 41,697 $ 686 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 1,700 $ 46 $ 23,955 $ 41,697 $ 686 ============== ============== ============== ============== ============== Total number of mutual fund shares 42,086 1,717 2,472,428 6,651,624 58,972 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 1,615 $ 43 $ 22,236 $ 40,642 $ 676 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 23 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP ING VP Index Plus Index Plus Index Plus Bond Growth LargeCap MidCap SmallCap -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 72,193 $ 267 $ 35,285 $ 11,607 $ 8,242 -------------- -------------- -------------- -------------- -------------- Total assets 72,193 267 35,285 11,607 8,242 Liabilities Payable to Golden American Life Insurance Company 14 - 4 1 1 -------------- -------------- -------------- -------------- -------------- Total liabilities 14 - 4 1 1 -------------- -------------- -------------- -------------- -------------- Net assets 72,179 267 35,281 11,606 8,241 ============== ============== ============== ============== ============== Net assets Accumulation units $ 72,179 $ 267 $ 35,281 $ 11,606 $ 8,241 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 72,179 $ 267 $ 35,281 $ 11,606 $ 8,241 ============== ============== ============== ============== ============== Total number of mutual fund shares 164,003 33,172 2,925,793 840,454 697,844 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 71,533 $ 258 $ 34,799 $ 10,436 $ 7,319 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 24 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP International Small Value ING VP Growth and Equity Company Opportunity Convertible Income -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 57 $ 660 $ 1,734 $ 3,209 $ 1,357 -------------- -------------- -------------- -------------- -------------- Total assets 57 660 1,734 3,209 1,357 Liabilities Payable to Golden American Life Insurance Company - - - - - -------------- -------------- -------------- -------------- -------------- Total liabilities - - 1 1 1 -------------- -------------- -------------- -------------- -------------- Net assets 57 660 1,734 3,209 1,357 ============== ============== ============== ============== ============== Net assets Accumulation units $ 57 $ 660 $ 1,734 $ 3,209 $ 1,357 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 57 $ 660 $ 1,734 $ 3,209 $ 1,357 ============== ============== ============== ============== ============== Total number of mutual fund shares 8,719 41,878 161,747 301,598 83,915 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 50 $ 618 $ 1,839 $ 3,067 $ 1,355 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 25 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP Growth International Large Company LargeCap ING VP Opportunities Value Value Growth MagnaCap -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 19,923 $ 361 $ 1,686 $ 1,888 $ 19,502 -------------- -------------- -------------- -------------- -------------- Total assets 19,923 361 1,686 1,888 19,502 Liabilities Payable to Golden American Life Insurance Company 4 - - - 3 -------------- -------------- -------------- -------------- -------------- Total liabilities 4 - - - 3 -------------- -------------- -------------- -------------- -------------- Net assets 19,919 361 1,686 1,888 19,499 ============== ============== ============== ============== ============== Net assets Accumulation units $ 19,919 $ 361 $ 1,686 $ 1,888 $ 19,499 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 19,919 $ 361 $ 1,686 $ 1,888 $ 19,499 ============== ============== ============== ============== ============== Total number of mutual fund shares 4,467,019 36,418 188,748 251,712 2,490,731 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 19,667 $ 311 $ 1,591 $ 1,671 $ 19,384 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 26 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
INVESCO INVESCO ING VP ING VP VIF - VIF - INVESCO MidCap SmallCap Financial Health VIF - Opportunities Opportunities Services Sciences Leisure -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 250 $ 66,685 $ 46,707 $ 66,253 $ 22,455 -------------- -------------- -------------- -------------- -------------- Total assets 250 66,685 46,707 66,253 22,455 Liabilities Payable to Golden American Life Insurance Company - 12 8 12 4 -------------- -------------- -------------- -------------- -------------- Total liabilities - 12 8 12 4 -------------- -------------- -------------- -------------- -------------- Net assets 250 66,673 46,699 66,241 22,451 ============== ============== ============== ============== ============== Net assets Accumulation units $ 250 $ 66,673 $ 46,699 $ 66,241 $ 22,451 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 250 $ 66,673 $ 46,699 $ 66,241 $ 22,451 ============== ============== ============== ============== ============== Total number of mutual fund shares 45,735 5,059,555 3,837,910 4,201,190 2,314,940 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 237 $ 67,830 $ 43,662 $ 62,961 $ 21,010 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 27 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Janus Aspen Janus Aspen INVESCO Janus Aspen Series Janus Aspen Series VIF - Series Flexible Series Worldwide Utilities Balanced Income Growth Growth -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 20,274 $ 4,261 $ 1,763 $ 832 $ 6,416 -------------- -------------- -------------- -------------- -------------- Total assets 20,274 4,261 1,763 832 6,416 Liabilities Payable to Golden American Life Insurance Company 3 - - - 1 -------------- -------------- -------------- -------------- -------------- Total liabilities 3 - - - 1 -------------- -------------- -------------- -------------- -------------- Net assets 20,371 4,261 1,763 832 6,415 ============== ============== ============== ============== ============== Net assets Accumulation units $ 20,377 $ 4,261 $ 1,763 $ 832 $ 6,415 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 20,371 $ 4,261 $ 1,763 $ 832 $ 6,415 ============== ============== ============== ============== ============== Total number of mutual fund shares 1,685,230 189,281 132,383 49,357 281,160 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 19,307 $ 4,191 $ 1,727 $ 807 $ 6,372 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 28 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Colonial Liberty Liberty Liberty Small Cap Asset Liberty Federal Small Company Value Allocation Equity Securities Growth -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 10,813 $ 560 $ 595 $ 88 $ 65 -------------- -------------- -------------- -------------- -------------- Total assets 10,813 560 595 88 65 Liabilities Payable to Golden American Life Insurance Company 1 - - - - -------------- -------------- -------------- -------------- -------------- Total liabilities 1 - - - - -------------- -------------- -------------- -------------- -------------- Net assets 10,812 560 595 88 65 ============== ============== ============== ============== ============== Net assets Accumulation units $ 10,812 $ 560 $ 595 $ 88 $ 65 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 10,812 $ 560 $ 595 $ 88 $ 65 ============== ============== ============== ============== ============== Total number of mutual fund shares 871,978 43,943 45,590 7,821 7,629 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 10,729 $ 501 $ 882 $ 86 $ 50 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 29 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
PIMCO Oppenheimer Oppenheimer PIMCO StocksPLUS Pioneer Global Strategic High Growth and Equity-Income Securities Bond Yield Income VCT -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 1,775 $ 233 $ 536,843 $ 177,771 $ 860 -------------- -------------- -------------- -------------- -------------- Total assets 1,775 233 536,843 177,771 860 Liabilities Payable to Golden American Life Insurance Company - - 92 43 - -------------- -------------- -------------- -------------- -------------- Total liabilities - - 92 43 - -------------- -------------- -------------- -------------- -------------- Net assets 1,775 230 536,751 177,728 860 ============== ============== ============== ============== ============== Net assets Accumulation units $ 1,775 $ 233 $ 536,751 $ 177,728 $ 860 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 1,775 $ 233 $ 536,751 $ 177,728 $ 860 ============== ============== ============== ============== ============== Total number of mutual fund shares 83,086 47,193 67,868,892 21,315,473 52,575 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 1,641 $ 225 $ 509,367 $ 179,074 $ 852 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 30 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Pioneer Pioneer Mid-Cap Pioneer Fund Value Small Company ProFund VP ProFund VP VCT VCT VCT Bull Europe 30 -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 46,883 $ 123,034 $ 4,803 $ 47,317 $ 13,774 -------------- -------------- -------------- -------------- -------------- Total assets 46,883 123,034 4,803 47,317 13,774 Liabilities Payable to Golden American Life Insurance Company 6 18 1 11 2 -------------- -------------- -------------- -------------- -------------- Total liabilities 6 18 1 11 2 -------------- -------------- -------------- -------------- -------------- Net assets 46,877 123,016 4,802 47,306 13,772 ============== ============== ============== ============== ============== Net assets Accumulation units $ 46,877 $ 123,016 $ 4,802 $ 47,306 $ 13,772 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 46,877 $ 123,016 $ 4,802 $ 47,306 $ 13,772 ============== ============== ============== ============== ============== Total number of mutual fund shares 2,814,122 6,955,010 467,236 2,051,915 663,473 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 44,634 $ 115,853 $ 4,778 $ 47,538 $ 13,798 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 31 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
ProFund VP SP Jennison Putnam VT Rising Rates ProFund VP Prudential International Discovery Opportunity Small Cap Jennison Growth Growth -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 13,017 $ 87,196 $ 52,041 $ 42,666 $ 2,805 -------------- -------------- -------------- -------------- -------------- Total assets 13,017 87,196 52,041 42,666 2,805 Liabilities Payable to Golden American Life Insurance Company 2 18 10 6 - -------------- -------------- -------------- -------------- -------------- Total liabilities 2 18 10 6 - -------------- -------------- -------------- -------------- -------------- Net assets 13,015 87,178 52,031 42,660 2,805 ============== ============== ============== ============== ============== Net assets Accumulation units $ 13,015 $ 87,178 $ 52,031 $ 42,660 $ 2,805 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 13,015 $ 87,178 $ 52,031 $ 42,660 $ 2,805 ============== ============== ============== ============== ============== Total number of mutual fund shares 566,190 3,145,603 3,504,456 8,333,181 656,916 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 13,539 $ 88,184 $ 47,538 $ 40,528 $ 2,732 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 32 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Putnam VT Smith Barney Putnam VT International International Smith Barney Growth and Growth and Smith Barney All Cap Large Income Income High Income Growth Cap Value -------------- -------------- -------------- -------------- -------------- Assets Investments in mutual funds at fair value $ 2,776 $ 3,407 $ 302 $ 201 $ 386 -------------- -------------- -------------- -------------- -------------- Total assets 2,776 3,407 302 201 386 Liabilities Payable to Golden American Life Insurance Company - 1 - - - -------------- -------------- -------------- -------------- -------------- Total liabilities - 1 - - - -------------- -------------- -------------- -------------- -------------- Net assets 2,776 3,406 302 201 368 ============== ============== ============== ============== ============== Net assets Accumulation units $ 2,776 $ 3,406 $ 302 $ 201 $ 368 Contracts in payout (annuitization) period - - - - - -------------- -------------- -------------- -------------- -------------- Total net assets $ 2,776 $ 3,406 $ 302 $ 201 $ 368 ============== ============== ============== ============== ============== Total number of mutual fund shares 135,396 354,146 39,039 20,039 24,856 ============== ============== ============== ============== ============== Cost of mutual fund shares $ 2,775 $ 3,215 $ 384 $ 317 $ 483 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 33 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Assets and Liabilities-Unaudited September 30, 2003 (Dollars in thousands, except for unit data)
Smith Barney UBS Tactical Money Asset Market Allocation -------------- -------------- Assets Investments in mutual funds at fair value $ 84 $ 3,253 -------------- -------------- Total assets 84 3,253 Liabilities Payable to Golden American Life Insurance Company - - -------------- -------------- Total liabilities - - -------------- -------------- Net assets 84 3,253 ============== ============== Net assets Accumulation units $ 84 $ 3,253 Contracts in payout (annuitization) period - - -------------- -------------- Total net assets $ 84 $ 3,253 ============== ============== Total number of mutual fund shares 84,300 296,311 ============== ============== Cost of mutual fund shares $ 84 $ 3,253 ============== ==============
The accompanying notes are an integral part of these financial statements. 34 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
AIM V.I. AIM V.I. AIM V.I. Dent AIM V.I. Capital Core Demographic AIM V.I. Premier Appreciation Equity Trends Growth Equity -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges - 1 299 12 1 Annual administrative charges - - 11 - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - 8 - - Other contract charges - - 51 - - -------------- -------------- -------------- -------------- -------------- Total expenses - 1 369 12 1 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) - (1) (369) (12) (1) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (6) - (738) (62) (7) Net unrealized appreciation (depreciation) of investments 6 14 5,002 237 15 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ - $ 13 $ 3,895 $ 163 $ 7 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 35 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Alliance Alliance Berntein Berntein Alliance Growth and Premier Berntein Fidelity(R)VIP Fidelity(R)VIP Income Growth Value Contrafund(R) Equity-Income -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ 50 $ - $ 32 $ 17 $ 401 -------------- -------------- -------------- -------------- -------------- Total investment income 50 - 32 17 401 Expenses: Mortality and expense risk and other charges 65 31 46 83 566 Annual administrative charges 1 1 1 2 16 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 3 1 2 1 13 Other contract charges - - - - 83 -------------- -------------- -------------- -------------- -------------- Total expenses 69 33 49 86 678 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (19) (33) (17) (69) (277) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (142) 26 (78) (2) 856 Net unrealized appreciation (depreciation) of investments 1,003 300 528 1,196 4,744 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 842 $ 293 $ 433 $ 1,125 $ 5,323 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 36 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Franklin Small Cap Galaxy VIP Fidelity(R) VIP Fidelity(R) VIP Value Greenwich Asset Growth Overseas Securities Appreciation Allocation -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ 33 $ - $ - $ - $ 4 -------------- -------------- -------------- -------------- -------------- Total investment income 33 - - - 4 Expenses: Mortality and expense risk and other charges 752 - - 6 2 Annual administrative charges 23 - - 1 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 22 - - - 1 Other contract charges 105 - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 902 - - 7 3 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (869) - - (7) 1 Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 139 5 - (15) (237 Net unrealized appreciation (depreciation) of investments 9,386 1 6 80 245 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 8,656 $ 6 $ 6 $ 58 $ 9 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 37 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Galaxy VIP Galaxy VIP Galaxy VIP ING GET ING GET Growth and High Quality Small Co. Fund- Fund- Income Bond Growth Series N Series P -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ 2 $ - $ 711 $ 3,275 -------------- -------------- -------------- -------------- -------------- Total investment income - 2 - 711 3,275 Expenses: Mortality and expense risk and other charges - 1 - 419 2,047 Annual administrative charges - - - 4 1,445 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - 20 130 Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses - 1 - 443 3,622 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) - 1 - 268 (347) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (53) 5 (37) 65 784 Net unrealized appreciation (depreciation) of investments 49 (7) 34 132 73 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ (4) $ (4) $ (3) $ 465 $ 510 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 38 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING GET ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Fund- Series Q Series R Series S Series T Series U -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ 3 $ 21 $ 181 $ 266 $ 2 -------------- -------------- -------------- -------------- -------------- Total investment income 3 21 181 266 2 Expenses: Mortality and expense risk and other charges 2,450 2,529 3,245 3,391 2,675 Annual administrative charges 29 32 37 41 43 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 149 64 76 113 37 Other contract charges - - - 4 5 -------------- -------------- -------------- -------------- -------------- Total expenses 2,628 2,625 3,258 3,549 2,760 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (2,625) (2,604) (3,177) (3,283) (2,758) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1,137 1,444 2,012 3,054 4,539 Net unrealized appreciation (depreciation) of investments 5,132 5,219 6,369 5,092 7,571 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 3,644 $ 4,059 $ 5,204 $ 4,863 $ 9,352 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 39 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING GET ING GET U.S. Core ING AIM ING GET U.S. Core Portfolio- ING AIM Mid-Cap Fund- Portfolio- Series 2 Mid-Cap Growth Series V Series 1 (Guaranteed) Growth Advisor -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 2,449 301 1 1,878 9 Annual administrative charges 72 21 - 150 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 82 9 - 65 - Other contract charges 2 - - 168 2 -------------- -------------- -------------- -------------- -------------- Total expenses 2,605 331 1 2,261 11 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (2,605) (331) (1) (2,261) (11) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (598) 5 - 8,989 3 Net unrealized appreciation (depreciation) of investments (9,327) 1,041 - 27,030 127 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ (12,530) $ 715 $ (1) $ 33,758 $ 119 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 40 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Alliance ING Alliance Mid-Cap ING American ING American Mid-Cap Growth ING American Funds Funds Growth Advisor Funds Growth-Income International -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 3,638 11 9 7 2 Annual administrative charges 233 - 2 1 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 191 - - - - Other contract charges 203 2 1 1 - -------------- -------------- -------------- -------------- -------------- Total expenses 4,265 13 12 9 2 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (4,265) (13) (12) (9) (2) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 14,705 7 - - 3 Net unrealized appreciation (depreciation) of investments 90,661 253 (513) (257) (57) -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 101,101 $ 247 $ (525) $ (266) $ (56) ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 41 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Capital ING Capital ING Capital Guardian ING Capital Guardian Guardian Large Cap Guardian Managed ING Capital Large Cap Value Managed Global Guardian Value Advisor Global Advisor Small Cap -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 4,531 32 2,933 5 4,565 Annual administrative charges 136 - 122 - 250 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 161 - 84 - 156 Other contract charges 606 8 317 1 394 -------------- -------------- -------------- -------------- -------------- Total expenses 5,434 40 3,456 6 5,365 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (5,434) (40) (3,456) (6) (5,365) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (4,567) (32) (2,801) 8 (18,250) Net unrealized appreciation (depreciation) of investments 70,125 496 46,677 66 98,880 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 60,124 $ 424 $ 40,420 $ 68 $ 75,265 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 42 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Capital ING ING Eagle Guardian ING Developing ING Eagle Asset Value Small Cap Developing World Asset Value Equity Advisor World Advisor Equity Advisor -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 13 755 5 2,075 6 Annual administrative charges - 40 - 95 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - 23 - 82 - Other contract charges 3 67 1 157 1 -------------- -------------- -------------- -------------- -------------- Total expenses 16 885 6 2,409 7 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (16) (885) (6) (2,409) (7) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1 (2,630) 2 (8,550) - Net unrealized appreciation (depreciation) of investments 197 18,404 143 25,221 48 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 182 $ 14,889 $ 139 $ 14,262 $ 41 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 43 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING FMR Goldman Goldman Sachs ING FMR Diversified Sachs Internet ING Diversified Mid-Cap Internet Tollkeeper Hard Mid-Cap Advisor Tollkeeper Advisor Assets -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 1,396 16 290 6 897 Annual administrative charges 38 - 8 - 35 Minimum death benefit guarantee charges - - - - 1 Contingent deferred sales charges 39 - 9 - 27 Other contract charges 221 4 57 1 72 -------------- -------------- -------------- -------------- -------------- Total expenses 1,694 20 364 7 1,032 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (1,694) (20) (364) (7) (1,032) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (976) - 571 6 (3,190) Net unrealized appreciation (depreciation) of investments 18,666 222 3,484 45 20,073 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 15,996 $ 202 $ 3,691 $ 44 $ 15,851 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 44 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Hard ING ING Janus Growth Assets ING International Janus Growth and Income Advisor International Advisor and Income Advisor -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 8 1,510 19 2,079 38 Annual administrative charges - 79 - 57 1 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - 55 - 72 - Other contract charges 2 102 5 323 10 -------------- -------------- -------------- -------------- -------------- Total expenses 10 1,746 24 2,531 49 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (10) (1,746) (24) (2,531) (49) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1 14,759 2 (879) 4 Net unrealized appreciation (depreciation) of investments 205 2,937 327 16,107 266 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 196 $ 15,950 $ 305 $ 12,697 $ 221 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 45 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING Janus ING Jennison JPMorgan Janus Special ING Jennison Equity Fleming Special Equity Equity Opportunities Small Cap Equity Advisor Opportunities Advisor Equity -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 349 2 3,259 6 270 Annual administrative charges 14 - 207 - 7 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 8 - 139 - 3 Other contract charges 58 1 254 1 47 -------------- -------------- -------------- -------------- -------------- Total expenses 429 3 3,859 7 327 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (429) (3) (3,859) (7) (327) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (704) 3 (47,580) 1 (85) Net unrealized appreciation (depreciation) of investments 7,982 40 83,764 79 4,046 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 7,982 $ 40 $ 32,325 $ 73 $ 3,634 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 46 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING JPMorgan Fleming ING ING Small Cap ING Julius Baer Limited ING Equity Julius Baer Foreign Maturity Liquid Advisor Foreign Advisor Bond Assets -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ 5,640 -------------- -------------- -------------- -------------- -------------- Total investment income - - - - 5,640 Expenses: Mortality and expense risk and other charges 349 136 10 7,099 11,664 Annual administrative charges 1 3 - 193 472 Minimum death benefit guarantee charges - - - 1 3 Contingent deferred sales charges - 2 - 377 20,515 Other contract charges 9 26 3 493 715 -------------- -------------- -------------- -------------- -------------- Total expenses 46 167 13 8,163 33,369 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (46) (167) (13) (8,163) (27,729) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1 952 2 6,819 - Net unrealized appreciation (depreciation) of investments 579 632 118 7,967 - -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 534 $ 1,417 $ 107 $ 6,623 $ (27,729 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 47 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING ING Mercury Liquid ING Marisco Mercury Focus Assets Marisco Growth Focus Value Advisor Growth Advisor Value Advisor -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ 20 $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income 20 - - - - Expenses: Mortality and expense risk and other charges 61 7,251 29 126 3 Annual administrative charges 1 636 - 3 - Minimum death benefit guarantee charges - - - 1 - Contingent deferred sales charges 10 361 - 3 - Other contract charges 17 499 8 22 1 -------------- -------------- -------------- -------------- -------------- Total expenses 89 8,747 37 154 4 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (69) (8,747) (37) (154) (4) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments - (13,050) 2 (66) 3 Net unrealized appreciation (depreciation) of investments - 131,609 443 1,305 29 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ (69) $ 109,812 $ 408 $ 1,085 $ 28 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 48 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING Mercury ING MFS Mercury Fundamental ING MFS Mid-Cap Fundamental Growth Mid-Cap Growth ING MFS Growth Advisor Growth Advisor Research -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 77 4 5,995 35 5,239 Annual administrative charges 2 - 468 1 327 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 3 - 248 - 263 Other contract charges 17 1 558 9 404 -------------- -------------- -------------- -------------- -------------- Total expenses 46 167 13 8,163 6,233 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (99) (5) (7,269) (45) (6,233) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (25) - (82,076) 13 (112,102) Net unrealized appreciation (depreciation) of investments 917 54 192,868 525 162,272 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 793 $ 49 $ 103,523 $ 493 $ 43,937 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 49 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING MFS ING ING MFS ING MFS Total ING PIMCO Research Total Return PIMCO Core Bond Advisor Return Advisor Core Bond Advisor -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 11 11,171 73 6,602 107 Annual administrative charges - 417 1 139 1 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - 441 - 257 - Other contract charges 2 924 18 797 29 -------------- -------------- -------------- -------------- -------------- Total expenses 13 12,953 92 7,795 137 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (13) (12,953) (92) (7,795) (137) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 3 (1,925) (6) 9,311 20 Net unrealized appreciation (depreciation) of investments 85 81,075 498 12,129 292 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 75 $ 66,197 $ 400 $ 12,129 $ 292 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 50 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Salomon ING Salomon ING ING Salomon Brothers ING Salomon Brothers T. Rowe Price Brothers All Cap Brothers Investors Capital All Cap Advisor Investors Advisor Appreciation -------------- -------------- -------------- -------------- -------------- Net investment income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 3,664 20 1,270 6 12,362 Annual administrative charges 123 - 31 - 404 Minimum death benefit guarantee charges - - - - 1 Contingent deferred sales charges 128 - 49 - 462 Other contract charges 506 5 185 1 1,276 -------------- -------------- -------------- -------------- -------------- Total expenses 4,421 25 1,535 7 14,505 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (4,421) (25) (1,535) (7) (14,505) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (7,397) 2 (4,178) - 3,824 Net unrealized appreciation (depreciation) of investments 63,667 298 18,417 66 106,633 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 51,849 $ 275 $ 12,704 $ 59 $ 95,952 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 51 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING T. Rowe Price ING Capital ING T. Rowe Price ING UBS Appreciation T. Rowe Price Equity Income ING UBS U.S. Balanced Advisor Equity Income Advisor U.S. Balanced Advisor -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 80 5,321 45 608 - Annual administrative charges 1 208 1 17 - Minimum death benefit guarantee charges - 2 - - - Contingent deferred sales charges - 167 1 18 - Other contract charges 20 545 11 91 - -------------- -------------- -------------- -------------- -------------- Total expenses 101 6,243 57 734 - -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (101) (6,243) (57) (734) - Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 30 (3,791) (10) (1,346) - Net unrealized appreciation (depreciation) of investments 791 49,307 445 5,411 - -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 720 $ 39,273 $ 378 $ 3,331 $ - ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 52 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING ING Van Kampen ING ING Van Kampen Van Kampen Global Van Kampen Van Kampen Equity Growth Global Franchise Growth and Equity Growth Advisor Franchise Advisor Income -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 140 25 316 58 6,739 Annual administrative charges 4 1 8 1 376 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 3 - 4 - 275 Other contract charges 25 6 55 15 371 -------------- -------------- -------------- -------------- -------------- Total expenses 172 32 383 74 7,761 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (172) (32) (383) (74) (7,761) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (37) 1 106 (3) (15,775) Net unrealized appreciation (depreciation) of investments 1,230 194 2,951 670 83,753 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 1,021 $ 163 $ 2,674 $ 593 $ 60,217 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 53 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Van Kampen ING Growth and ING Van Kampen ING Alger Income Van Kampen Real Estate Aggressive ING Alger Advisor Real Estate Advisor Growth Growth -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 97 2,631 24 1 - Annual administrative charges 2 107 - - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 2 104 1 - - Other contract charges 22 296 7 - - -------------- -------------- -------------- -------------- -------------- Total expenses 123 3,138 32 1 - -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (123) (3,138) (32) (1) - Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (3) (510) 1 - - Net unrealized appreciation (depreciation) of investments 1,041 54,474 538 20 10 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 915 $ 50,826 $ 507 $ 19 $ 10 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 54 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING American ING ING ING ING Century Baron JPMorgan JPMorgan MFS(R)Capital Small Cap Small Cap Fleming Mid Cap Opportunities Value Growth International Value (Initial Class) -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ 2 $ - $ 3 -------------- -------------- -------------- -------------- -------------- Total investment income - - 2 - 3 Expenses: Mortality and expense risk and other charges - 1 2 10 17 Annual administrative charges - - - - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - - 1 Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses - 1 2 10 18 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) - (1) - (10) (15) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments - - 13 7 (99) Net unrealized appreciation (depreciation) of investments 10 30 (27) 116 289 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 10 $ 29 $ (14) $ 113 $ 175 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 55 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING MFS(R) Capital ING ING Op Cap Opportunities MFS(R)Global MFS Research Balanced ING PIMCO (Service Class) Growth Equity Value Total Return -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ 6 $ 8 -------------- -------------- -------------- -------------- -------------- Total investment income - - - 6 8 Expenses: Mortality and expense risk and other charges 1 3 - 1 6 Annual administrative charges - - - - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - - 1 Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 1 3 - - 6 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (1) (3) - 5 2 Realized and unrealized gain (loss on investments Net realized gain (loss) on investments - 11 - - 2 Net unrealized appreciation (depreciation) of investments 20 38 4 25 26 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 19 $ 46 $ 4 $ 30 $ 30 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 56 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING Salomon ING Salomon ING Salomon ING Brothers Brothers Brothers T. Rowe Price ING UBS Aggressive Fundamental Investors Growth Tactical Asset Growth Value Value Equity Allocation -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ 5 $ 1 $ 2 $ - -------------- -------------- -------------- -------------- -------------- Total investment income - 5 1 2 - Expenses: Mortality and expense risk and other charges 2 1 - 4 - Annual administrative charges - - - - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - - - Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 2 1 - 4 - -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (2) 4 1 (2) - Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 10 - - (2) - Net unrealized appreciation (depreciation) of investments (65) 13 4 104 3 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ (57) $ 17 $ 5 $ 100 $ 3 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 57 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING ING VIT Van Kampen Worldwide ING VP ING VP ING VP Comstock Growth Balanced Bond Growth -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ 1,301 $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - 1,301 - Expenses: Mortality and expense risk and other charges 141 426 1 917 1 Annual administrative charges 3 13 - 21 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - 13 - 63 - Other contract charges 30 83 - 126 - -------------- -------------- -------------- -------------- -------------- Total expenses 174 535 1 1,127 1 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (174) (535) (1) 174 (1) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 37 (1,359) - 1,042 1 Net unrealized appreciation (depreciation) of investments 1,716 6,537 10 855 14 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 1,579 $ 4,643 $ 9 $ 2,071 $ 14 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 58 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP ING VP Index Plus Index Plus Index Plus International Small LargeCap MidCap SmallCap Equity Company -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 157 $ 27 $ 6 $ - $ 1 -------------- -------------- -------------- -------------- -------------- Total investment income 157 27 6 - 1 Expenses: Mortality and expense risk and other charges 139 83 60 - 2 Annual administrative charges 5 2 2 - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 3 2 2 - - Other contract charges 8 - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 155 87 64 - 2 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) 2 (60) (58) - (1) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 117 (116) 45 - (6) Net unrealized appreciation (depreciation) of investments 569 1,315 956 7 96 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 688 $ 1,139 $ 943 $ 7 $ 89 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 59 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP Value ING VP Growth and Growth International Opportunity Convertible Income Opportunities Value -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 10 $ 20 $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income 10 20 - - - Expenses: Mortality and expense risk and other charges 15 18 2 176 1 Annual administrative charges 1 - - 6 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - 3 - Other contract charges - - - 32 - -------------- -------------- -------------- -------------- -------------- Total expenses 16 18 2 217 1 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (6) 2 (2) (217) (1) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (23) (5) - (422) (2) Net unrealized appreciation (depreciation) of investments 145 193 2 2,677 40 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 116 $ 190 $ - $ 2,038 $ 37 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 60 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP Large Company LargeCap ING VP MidCap SmallCap Value Growth MagnaCap Opportunities Opportunities -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 2 $ - $ 74 $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income 2 - 74 - - Expenses: Mortality and expense risk and other charges 13 15 198 1 557 Annual administrative charges - - 5 - 16 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - 4 - 10 Other contract charges - - 28 - 117 -------------- -------------- -------------- -------------- -------------- Total expenses 13 15 235 1 700 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (11) (15) (161) (1) (700) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (110) (14) (231) - (603) Net unrealized appreciation (depreciation) of investments 253 265 2,321 17 10,840 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 132 $ 236 $ 1,929 $ 16 $ 9,537 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 61 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
INVESCO INVESCO VIF - VIF - INVESCO INVESCO Janus Aspen Financial Health VIF - VIF - Series Services Sciences Leisure Utilities Balanced -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ - $ 19 -------------- -------------- -------------- -------------- -------------- Total investment income - - - - 19 Expenses: Mortality and expense risk and other charges 394 576 162 155 11 Annual administrative charges 11 16 5 4 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 12 14 2 3 - Other contract charges 63 86 31 24 - -------------- -------------- -------------- -------------- -------------- Total expenses 480 692 200 186 11 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) 690 (186) (27) (396) (1) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 690 (186) (27) (369) (1) Net unrealized appreciation (depreciation) of investments 3,602 4,989 1,428 1,271 99 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 3,812 $ 4,111 $ 1,201 $ 716 $ 106 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 62 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Janus Aspen Janus Aspen Series Janus Aspen Series Colonial Liberty Flexible Series Worldwide Small Cap Asset Income Growth Growth Value Allocation -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 9 $ - $ 31 $ 115 $ - -------------- -------------- -------------- -------------- -------------- Total investment income 9 - 31 115 - Expenses: Mortality and expense risk and other charges 4 2 50 8 4 Annual administrative charges - - 1 2 - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - - - Other contract charges - - - 3 - -------------- -------------- -------------- -------------- -------------- Total expenses 4 2 51 13 4 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) 5 (2) (20) 102 (4) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 16 (8) 444 53 4 Net unrealized appreciation (depreciation) of investments 27 57 148 84 60 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 48 $ 47 $ 572 $ 239 $ 60 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 63 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Liberty Liberty Oppenheimer Oppenheimer Liberty Federal Small Company Global Strategic Equity Securities Growth Securities Bond -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 19 $ - $ - $ 3 $ 2 -------------- -------------- -------------- -------------- -------------- Total investment income 1 - - 3 2 Expenses: Mortality and expense risk and other charges 6 1 - 4 1 Annual administrative charges 1 - - - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - - - Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 7 1 - 4 1 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (6) (1) - (1) 1 Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (53) 1 3 (5) 5 Net unrealized appreciation (depreciation) of investments 134 2 15 173 7 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 75 $ 2 $ 18 $ 167 $ 13 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 64 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
PIMCO Pioneer PIMCO StocksPLUS Pioneer Pioneer Mid-Cap High Growth and Equity-Income Fund Value Yield Income VCT VCT VCT -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ 24,059 $ 2,108 $ 7 $ 209 $ 209 -------------- -------------- -------------- -------------- -------------- Total investment income 24,059 2,108 7 209 209 Expenses: Mortality and expense risk and other charges 5,361 2,257 3 381 978 Annual administrative charges 166 107 - 8 25 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 255 182 - 11 26 Other contract charges 486 173 - 69 140 -------------- -------------- -------------- -------------- -------------- Total expenses 6,238 2,719 3 469 1,169 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) 17,821 (611) 4 (260) (960) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (4,405) (31,574) (1) (673) (332) Net unrealized appreciation (depreciation) of investments 42,196 58,046 28 3,588 14,053 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 55,612 $ 25,861 $ 31 $ 2,655 $ 12,761 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 65 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Pioneer ProFund VP Small Company ProFund VP ProFund VP Rising Rates ProFund VP VCT Bull Europe 30 Opportunity Small Cap -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- -------------- Total investment income - - - - - Expenses: Mortality and expense risk and other charges 43 550 164 7 562 Annual administrative charges 1 16 3 2 22 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - 16 5 - 21 Other contract charges - 56 13 - 73 -------------- -------------- -------------- -------------- -------------- Total expenses 44 638 3 469 678 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (44) (638) (185) (9) (678) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (70) 4,914 1,071 (9) 6,368 Net unrealized appreciation (depreciation) of investments 554 588 317 (523) 453 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 440 $ 4,864 $ 1,203 $ (541) $ 6,143 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 66 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Putnam VT SP Jennison Putnam VT Putnam VT International Prudential International Discovery Growth and Growth and Jennison Growth Growth Income Income -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ 34 $ 51 -------------- -------------- -------------- -------------- -------------- Total investment income - - - 34 51 Expenses: Mortality and expense risk and other charges 566 285 24 22 35 Annual administrative charges 15 8 1 - 1 Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges 12 6 1 - - Other contract charges 89 41 - - - -------------- -------------- -------------- -------------- -------------- Total expenses 682 340 26 22 36 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (682) (340) (26) 12 15 Realized and unrealized gain (loss on investments Net realized gain (loss) on investments 297 2,370 (40) (64) (137) Net unrealized appreciation (depreciation) of investments 6,499 2,715 457 241 588 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 6,114 $ 4,864 $ 1,203 $ (541) $ 466 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 67 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Operations-Unaudited For the nine months ended September 30, 2003 (Dollars in thousands, except for unit data)
Smith Barney International Smith Barney Smith Barney UBS Tactical Smith Barney All Cap Large Money Asset High Income Growth Cap Value Market Allocation -------------- -------------- -------------- -------------- -------------- Net invest income (loss) Income: Dividends $ - $ - $ - $ 1 $ 15 -------------- -------------- -------------- -------------- -------------- Total investment income - - - 1 15 Expenses: Mortality and expense risk and other charges 3 2 4 1 23 Annual administrative charges - - 1 - - Minimum death benefit guarantee charges - - - - - Contingent deferred sales charges - - - 8 - Other contract charges - - - - - -------------- -------------- -------------- -------------- -------------- Total expenses 3 2 5 9 23 -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (3) (2) (5) (8) (8) Realized and unrealized gain (loss on investments Net realized gain (loss) on investments (74) (23) (37) - (42) Net unrealized appreciation (depreciation) of investments 131 48 77 - 272 -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $ 54 $ 23 $ 35 $ (8) $ 222 ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 68 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
AIM V.I. AIM V.I. AIM V.I. Dent Capital Core Demographic AIM V.I. Appreciation Equity Trends Growth -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ 3,550 $ 443 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - (159) (11) Net realized gain (loss) on investments and capital gains distributions - - (1,222) (108) Net unrealized appreciation (depreciation) of investments (7) (3) (2,117) (102) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (7) (3) (3,498) (221) Changes from contract transactions: Purchase payments 24 41 9,229 663 Contract distributions and terminations - - (223) (18) Transfer payments from (to) other Divisions (including the fixed accounts), net 10 3 2,287 (19) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 34 44 11,283 626 -------------- -------------- -------------- -------------- Total increase (decrease) 27 41 7,785 405 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 27 41 11,335 848 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (1) (369) (12) Net realized gain (loss) on investments and capital gains distributions (6) - (738) (62) Net unrealized appreciation (depreciation) of investments 6 14 5,002 237 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - 13 3,895 163 Changes from contract transactions: Purchase payments 37 97 15,481 599 Contract distributions and terminations - - (570) (30) Transfer payments from (to) other Divisions (including the fixed accounts), net (6) 4 10,311 179 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 31 101 25,222 748 -------------- -------------- -------------- -------------- Total increase (decrease) 31 114 29,117 911 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 58 $ 155 $ 40,452 $ 1,759 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 69 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Alliance Alliance AIM V.I. Bernstein Bernstein Alliance Premier Growth and Premier Bernstein Equity Income Growth Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 4,653 $ 1,091 $ 595 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - 86 (26) (24) Net realized gain (loss) on investments and capital gains distributions - (72) (413) (19) Net unrealized appreciation (depreciation) of investments (7) (1,016) (166) (241) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (7) (1,002) (605) (284) Changes from contract transactions: Purchase payments 69 3,457 942 1,019 Contract distributions and terminations - (100) (74) (44) Transfer payments from (to) other Divisions (including the fixed accounts), net 18 722 740 1,423 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 87 4,079 1,608 2,398 -------------- -------------- -------------- -------------- Total increase (decrease) 80 3,077 1,003 2,114 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 80 4,730 2,094 2,709 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (19) (33) (17) Net realized gain (loss) on investments and capital gains distributions (7) (142) 26 (78) Net unrealized appreciation (depreciation) of investments 15 1,003 300 528 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 7 842 293 433 Changes from contract transactions: Purchase payments 60 1,600 510 1,314 Contract distributions and terminations - (214) (83) (206) Transfer payments from (to) other Divisions (including the fixed accounts), net (16) 1,012 427 946 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 44 2,398 854 2,054 -------------- -------------- -------------- -------------- Total increase (decrease) 51 3,240 1,147 2,487 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 131 $ 7,970 $ 3,241 $ 5,196 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 70 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Fidelity(R) VIP Fidelity(R) VIP Fidelity(R) Fidelity(R) Contrafund(R) Equity-Income VIP Growth VIP Overseas -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 1,183 $ 1,949 $ 693 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (35) (53) (130) - Net realized gain (loss) on investments and capital gains distributions (35) (1,606) (725) - Net unrealized appreciation (depreciation) of investments (331) 62 (1,237) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (401) (1,597) (2,092) - Changes from contract transactions: Purchase payments 3,038 12,283 13,555 9 Contract distributions and terminations (57) (287) (197) - Transfer payments from (to) other Divisions (including the fixed accounts), net 675 11,503 11,253 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 3,656 23,499 24,611 9 -------------- -------------- -------------- -------------- Total increase (decrease) 3,255 21,902 22,519 9 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 4,438 23,851 23,212 9 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (69) (277) (869) - Net realized gain (loss) on investments and capital gains distributions (2) (856) 139 5 Net unrealized appreciation (depreciation) of investments 1,196 4,744 9,386 1 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 1,125 5,323 8,656 6 Changes from contract transactions: Purchase payments 6,251 41,273 56,344 98 Contract distributions and terminations (118) (1,178) (1,290) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,612 18,091 36,308 (81) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 7,745 58,186 91,362 17 -------------- -------------- -------------- -------------- Total increase (decrease) 8,870 63,509 100,018 23 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 13,308 $ 87,360 $ 123,230 $ 32 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 71 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Franklin Small Cap Galaxy VIP Galaxy VIP Value Greenwich Asset Growth and Securities Appreciation Allocation Income -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 723 $ 1,260 $ 201 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - 4 (2) Net realized gain (loss) on investments and capital gains distributions - (11) (192) (5) Net unrealized appreciation (depreciation) of investments (3) (130) (40) (42) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (3) (141) (228) (49) Changes from contract transactions: Purchase payments 20 15 1 4 Contract distributions and terminations - (5) (25) (14) Transfer payments from (to) other Divisions (including the fixed accounts), net - (3) (377) (20) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 20 7 (401) (30) -------------- -------------- -------------- -------------- Total increase (decrease) 17 (134) (629) (79) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 17 589 631 122 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (7) 1 - Net realized gain (loss) on investments and capital gains distributions - (15) (237) (53) Net unrealized appreciation (depreciation) of investments 6 80 245 49 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 6 58 9 (4) Changes from contract transactions: Purchase payments 178 5 - - Contract distributions and terminations - (18) (23) (2) Transfer payments from (to) other Divisions (including the fixed accounts), net (1) (29) (617) (116) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 177 (42) (640) (118) -------------- -------------- -------------- -------------- Total increase (decrease) 183 16 (631) (122) -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 200 $ 605 $ - $ - ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 72 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Galaxy VIP Galaxy VIP ING GET ING GET High Quality Small Co. Fund- Fund- Bond Growth Series N Series P -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 152 $ 84 $ 30,868 $ 153,045 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 4 (1) (225) (1,613) Net realized gain (loss) on investments and capital gains distributions 2 (7) 1 (70) Net unrealized appreciation (depreciation) of investments 3 (23) (538) (1,644) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 9 (31) (762) (39) Changes from contract transactions: Purchase payments - 12 (8) (437) Contract distributions and terminations (4) (5) (792) (3,496) Transfer payments from (to) other Divisions (including the fixed accounts), net (27) (3) (645) (5,227) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (31) 4 (1,445) (9,160) -------------- -------------- -------------- -------------- Total increase (decrease) 22 (27) (2,207) (9,199) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 130 57 28,661 143,846 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 1 - 268 (347) Net realized gain (loss) on investments and capital gains distributions 5 (37) 65 784 Net unrealized appreciation (depreciation) of investments (7) 34 132 73 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (1) (3) 465 510 Changes from contract transactions: Purchase payments - - (9) (67) Contract distributions and terminations - (1) (656) (3,795) Transfer payments from (to) other Divisions (including the fixed accounts), net (129) (53) (2,831) (21,194) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (129) (54) (3,496) (21,194) -------------- -------------- -------------- -------------- Total increase (decrease) (130) (57) (3,031) (24,546) -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ - $ - $ 25,630 $ 119,300 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 73 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Series Q Series R Series S Series T -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 1,904 $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 335 320 (132) (298) Net realized gain (loss) on investments and capital gains distributions (3) 48 (15) 8 Net unrealized appreciation (depreciation) of investments 217 1,356 1,013 2,300 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 549 1,724 866 2,010 Changes from contract transactions: Purchase payments 2,717 2,413 3,067 6,518 Contract distributions and terminations (2,304) (2,081) (1,591) (152) Transfer payments from (to) other Divisions (including the fixed accounts), net 166,163 168,470 216,928 229,572 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 166,576 168,802 218,404 235,938 -------------- -------------- -------------- -------------- Total increase (decrease) 167,125 170,526 219,270 237,948 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 169,029 170,526 219,270 237,948 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2,625) (2,604) (3,177) (3,283) Net realized gain (loss) on investments and capital gains distributions 1,137 1,444 2,012 3,054 Net unrealized appreciation (depreciation) of investments 5,132 5,219 6,369 5,092 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 3,644 4,059 5,204 4,863 Changes from contract transactions: Purchase payments (115) (52) (71) (240) Contract distributions and terminations (5,419) (3,143) (4,077) (5,455) Transfer payments from (to) other Divisions (including the fixed accounts), net (28,713) (30,683) (47,171) (66,984) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (34,247) (33,878) (51,319) (72,679) -------------- -------------- -------------- -------------- Total increase (decrease) (30,603) (29,819) (46,115) (67,816) -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 138,426 $ 140,707 $ 173,155 $ 170,132 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 74 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING GET ING GET U.S. Core ING GET ING GET U.S. Core Portfolio- Fund- Fund- Portfolio- Series 2 Series U Series V Series 1 (Guaranteed) -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - - - Net realized gain (loss) on investments and capital gains distributions - - - - Net unrealized appreciation (depreciation) of investments - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - - - - Changes from contract transactions: Purchase payments 466 - - - Contract distributions and terminations - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 582 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 1,048 - - - -------------- -------------- -------------- -------------- Total increase (decrease) 1,048 - - - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 1,048 - - - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2,758) (2,605) (331) (1) Net realized gain (loss) on investments and capital gains distributions 4,539 (598) 5 - Net unrealized appreciation (depreciation) of investments 7,571 (9,327) 1,041 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 9,352 (12,530) 715 (1) Changes from contract transactions: Purchase payments 5,929 12,269 6,002 96 Contract distributions and terminations (2,550) (2,437) (374) (10) Transfer payments from (to) other Divisions (including the fixed accounts), net 164,794 363,136 231,286 2,106 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 168,173 372,968 236,914 2,192 -------------- -------------- -------------- -------------- Total increase (decrease) 177,525 360,438 237,629 2,191 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 178,573 $ 360,438 $ 237,629 $ 2,191 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 75 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING AIM ING Alliance ING AIM Mid-Cap ING Alliance Mid-Cap Mid-Cap Growth Mid-Cap Growth Growth Advisor Growth Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 259,382 $ - $ 395,434 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (3,672) - (5,491) - Net realized gain (loss) on investments and capital gains distributions (113,239) - (211,562) - Net unrealized appreciation (depreciation) of investments 38,088 (1) 97,211 (6) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (78,823) (1) (119,842) (6) Changes from contract transactions: Purchase payments 15,000 61 22,649 150 Contract distributions and terminations (9,725) - (16,524) - Transfer payments from (to) other Divisions (including the fixed accounts), net (45,983) 18 (34,948) 4 Additions to assets retained in the Account by Golden American Life Insurance Company 1 - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (40,707) 79 (28,823) 154 -------------- -------------- -------------- -------------- Total increase (decrease) (119,530) 78 (148,665) 148 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 139,852 78 246,769 148 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2,261) (11) (4,265) (13) Net realized gain (loss) on investments and capital gains distributions 8,989 3 14,705 7 Net unrealized appreciation (depreciation) of investments 27,030 127 90,661 253 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 33,758 119 101,101 247 Changes from contract transactions: Purchase payments 17,220 1,504 25,377 1,816 Contract distributions and terminations (5,661) (3) (13,228) (1) Transfer payments from (to) other Divisions (including the fixed accounts), net (2,861) 58 20,263 234 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 8,698 1,559 32,412 2,049 -------------- -------------- -------------- -------------- Total increase (decrease) 42,456 1,678 133,513 2,296 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 182,308 $ 1,756 $ 380,282 $ 2,444 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 76 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Capital ING American ING American ING American Guardian Funds Funds Funds Large Cap Growth Growth-Income International Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ 275,489 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - - (4,985) Net realized gain (loss) on investments and capital gains distributions - - - (12,529) Net unrealized appreciation (depreciation) of investments - - - (66,466) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - - - (83,980) Changes from contract transactions: Purchase payments - - - 90,790 Contract distributions and terminations - - - (11,843) Transfer payments from (to) other Divisions (including the fixed accounts), net - - - 25,232 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions - - - 104,179 -------------- -------------- -------------- -------------- Total increase (decrease) - - - 20,199 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 - - - 295,688 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (12) (9) (2) (5,434) Net realized gain (loss) on investments and capital gains distributions - - 3 (4,567) Net unrealized appreciation (depreciation) of investments (513) (257) (57) 70,125 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (525) (266) (56) 60,124 Changes from contract transactions: Purchase payments 5,473 4,676 1,948 (79,043) Contract distributions and terminations (7) (5) - (12,560) Transfer payments from (to) other Divisions (including the fixed accounts), net 10,186 8,130 2,479 33,295 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 15,652 12,801 4,427 99,778 -------------- -------------- -------------- -------------- Total increase (decrease) 15,127 12,535 4,371 159,902 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 15,127 $ 12,535 $ 4,371 $ 455,590 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 77 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Capital ING Capital Guardian ING Capital Guardian Large Cap Guardian Managed ING Capital Value Managed Global Guardian Advisor Global Advisor Small Cap -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 250,388 $ - $ 480,513 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (3,977) - (7,335) Net realized gain (loss) on investments and capital gains distributions - (2,654) - (87,705) Net unrealized appreciation (depreciation) of investments (14) (50,119) (2) (39,390) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (15) (56,750) (2) (134,430) Changes from contract transactions: Purchase payments 307 48,234 31 64,429 Contract distributions and terminations - (12,917) - (23,540) Transfer payments from (to) other Divisions (including the fixed accounts), net 41 (5,872) 21 (45,826) Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 348 29,446 52 (4,937) -------------- -------------- -------------- -------------- Total increase (decrease) 333 (27,304) 50 (139,367) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 333 223,084 50 341,146 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (40) (3,456) (6) (5,365) Net realized gain (loss) on investments and capital gains distributions (32) (2,801) 8 (18,250) Net unrealized appreciation (depreciation) of investments 496 46,677 66 98,880 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 424 40,420 68 75,265 Changes from contract transactions: Purchase payments 4,080 35,583 844 41,174 Contract distributions and terminations (460) (8,721) (33) (12,700) Transfer payments from (to) other Divisions (including the fixed accounts), net 355 1,958 46 5,240 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 3,975 28,820 857 33,714 -------------- -------------- -------------- -------------- Total increase (decrease) 4,399 69,240 925 108,979 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 4,732 $ 292,324 $ 975 $ 450,125 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 78 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Capital ING Guardian ING Developing ING Eagle Small Cap Developing World Asset Value Advisor World Advisor Equity -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 71,466 $ - $ 199,039 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (1,356) - (2,233) Net realized gain (loss) on investments and capital gains distributions - 1,932 - (11,165) Net unrealized appreciation (depreciation) of investments 1 (8,556) (2) (27,107) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 1 (7,980) (2) (40,505) Changes from contract transactions: Purchase payments 85 11,601 81 24,266 Contract distributions and terminations - (4,659) - (9,725) Transfer payments from (to) other Divisions (including the fixed accounts), net 235 (10,428) - 164 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 320 (3,486) 81 14,705 -------------- -------------- -------------- -------------- Total increase (decrease) 321 (11,466) 79 (25,800) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 321 60,000 79 173,239 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (16) (885) (6) (2,409) Net realized gain (loss) on investments and capital gains distributions 1 (2,630) 2 (8,550) Net unrealized appreciation (depreciation) of investments 197 18,404 143 25,221 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 182 14,889 139 14,262 Changes from contract transactions: Purchase payments 1,634 8,037 700 15,891 Contract distributions and terminations (5) (2,362) - (6,914) Transfer payments from (to) other Divisions (including the fixed accounts), net 169 (188) 133 (13,110) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 1,798 5,487 833 (4,133) -------------- -------------- -------------- -------------- Total increase (decrease) 1,980 20,376 972 10,129 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 2,301 $ 80,376 $ 1,051 $ 183,368 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 79 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Eagle ING FMR ING Asset Value ING FMR Diversified Goldman Sachs Equity Diversified Mid-Cap Internet Advisor Mid-Cap Advisor Tollkeeper -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 57,814 $ - $ 5,389 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 1 (1,405) - (169) Net realized gain (loss) on investments and capital gains distributions - (1,645) - (3,259) Net unrealized appreciation (depreciation) of investments (3) (16,949) (4) 32 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (2) (19,999) (4) (3,396) Changes from contract transactions: Purchase payments 62 38,230 136 7,425 Contract distributions and terminations - (3,572) - (281) Transfer payments from (to) other Divisions (including the fixed accounts), net 47 18,686 88 3,665 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 109 53,344 224 10,809 -------------- -------------- -------------- -------------- Total increase (decrease) 107 33,345 220 7,413 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 107 91,159 220 12,802 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7) (1,694) (20) (364) Net realized gain (loss) on investments and capital gains distributions - (976) - 571 Net unrealized appreciation (depreciation) of investments 48 18,666 222 3,484 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 41 15,996 202 3,691 Changes from contract transactions: Purchase payments 560 29,839 2,097 13,529 Contract distributions and terminations (3) (2,745) (17) (596) Transfer payments from (to) other Divisions (including the fixed accounts), net 49 1,444 144 7,411 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 606 28,538 2,224 20,344 -------------- -------------- -------------- -------------- Total increase (decrease) 647 44,534 2,426 24,035 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 754 $ 135,693 $ 2,426 $ 36,837 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 80 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Goldman Sachs ING Internet ING Hard Tollkeeper Hard Assets ING Advisor Assets Advisor International -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 33,209 $ - $ 144,061 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (642) - (1,510) Net realized gain (loss) on investments and capital gains distributions - (2,333) - (18,218) Net unrealized appreciation (depreciation) of investments (4) (1,937) 1 (1,709) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (4) (4,912) 1 (21,437) Changes from contract transactions: Purchase payments 42 10,388 63 15,966 Contract distributions and terminations - (2,996) - (6,869) Transfer payments from (to) other Divisions (including the fixed accounts), net 15 32,064 33 (11,244) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 57 39,456 96 (2,147) -------------- -------------- -------------- -------------- Total increase (decrease) 53 34,544 96 (23,584) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 53 67,753 97 120,477 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7) (1,032) (10) (1,746) Net realized gain (loss) on investments and capital gains distributions 6 (3,190) 1 14,759 Net unrealized appreciation (depreciation) of investments 45 20,073 205 2,937 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 44 15,851 196 15,950 Changes from contract transactions: Purchase payments 1,180 8,950 1,128 13,786 Contract distributions and terminations (62) (3,673) - (3,913) Transfer payments from (to) other Divisions (including the fixed accounts), net 217 6,952 179 (4,637) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 1,335 12,229 1,307 5,236 -------------- -------------- -------------- -------------- Total increase (decrease) 1,379 28,080 1,503 21,186 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,432 $ 95,833 $ 1,600 $ 141,663 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 81 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING ING Janus Growth International Janus Growth and Income ING Janus Advisor and Income Advisor Special Equity -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 92,720 $ - $ 24,325 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 1 (1,869) - (504) Net realized gain (loss) on investments and capital gains distributions - (4,040) - (1,565) Net unrealized appreciation (depreciation) of investments - (22,039) (15) (6,229) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 1 (27,948) (15) (8,298) Changes from contract transactions: Purchase payments 218 55,155 541 6,311 Contract distributions and terminations - (4,880) - (834) Transfer payments from (to) other Divisions (including the fixed accounts), net 35 15,298 61 290 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 253 65,573 602 5,767 -------------- -------------- -------------- -------------- Total increase (decrease) 254 37,625 587 (2,531) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 254 130,345 587 21,794 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (24) (2,531) (49) (429) Net realized gain (loss) on investments and capital gains distributions 2 (879) 4 (704) Net unrealized appreciation (depreciation) of investments 327 16,107 266 7,982 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 305 12,697 221 6,849 Changes from contract transactions: Purchase payments 2,262 48,575 4,335 7,416 Contract distributions and terminations (5) (4,085) (36) (718) Transfer payments from (to) other Divisions (including the fixed accounts), net 189 13,867 319 6,838 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 2,446 58,357 4,618 13,536 -------------- -------------- -------------- -------------- Total increase (decrease) 2,751 71,054 4,839 20,385 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 3,005 $ 201,399 $ 5,426 $ 42,179 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 82 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Jennison ING JPMorgan ING Janus ING Jennison Equity Fleming Special Equity Equity Opportunities Small Cap Advisor Opportunities Advisor Equity -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 440,209 $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (5,971) - (56) Net realized gain (loss) on investments and capital gains distributions - (150,767) - (90) Net unrealized appreciation (depreciation) of investments (1) 21,921 - (411) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (1) (134,817) - (557) Changes from contract transactions: Purchase payments 36 34,448 32 5,453 Contract distributions and terminations - (17,174) - (116) Transfer payments from (to) other Divisions (including the fixed accounts), net 21 (41,715) 2 4,710 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 57 (24,438) 34 10,047 -------------- -------------- -------------- -------------- Total increase (decrease) 56 (159,255) 34 9,490 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 56 280,954 34 9,490 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (3) (3,859) (7) (327) Net realized gain (loss) on investments and capital gains distributions 3 (47,580) 1 (85) Net unrealized appreciation (depreciation) of investments 40 83,764 79 4,046 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 40 32,325 73 3,634 Changes from contract transactions: Purchase payments 276 9,978 813 18,769 Contract distributions and terminations (5) (11,857) (8) (255) Transfer payments from (to) other Divisions (including the fixed accounts), net 78 (23,210) 180 9,271 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 349 (25,089) 985 27,785 -------------- -------------- -------------- -------------- Total increase (decrease) 389 7,236 1,058 31,419 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 445 $ 288,190 $ 1,092 $ 40,909 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 83 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING JPMorgan Fleming ING ING Small Cap ING Julius Baer Limited Equity Julius Baer Foreign Maturity Advisor Foreign Advisor Bond -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ 364,062 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (24) - 8,171 Net realized gain (loss) on investments and capital gains distributions - (285) - 6,401 Net unrealized appreciation (depreciation) of investments (9) 29 (1) 9,830 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (10) (280) (1) 24,402 Changes from contract transactions: Purchase payments 462 2,749 166 96,571 Contract distributions and terminations - (61) - (30,028) Transfer payments from (to) other Divisions (including the fixed accounts), net 59 2,582 - 103,934 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 521 5,270 166 170,477 -------------- -------------- -------------- -------------- Total increase (decrease) 511 4,990 165 194,879 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 511 4,990 165 558,941 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (46) (167) (13) (8,163) Net realized gain (loss) on investments and capital gains distributions 1 952 2 6,819 Net unrealized appreciation (depreciation) of investments 579 632 118 7,967 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 534 1,417 107 6,623 Changes from contract transactions: Purchase payments 5,093 7,325 1,145 92,473 Contract distributions and terminations (38) (199) (2) (29,014) Transfer payments from (to) other Divisions (including the fixed accounts), net 505 5,275 129 (58,349) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 5,560 12,401 1,272 5,110 -------------- -------------- -------------- -------------- Total increase (decrease) 6,094 13,818 1,379 11,733 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 6,605 $ 18,808 $ 1,544 $ 570,674 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 84 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING ING Liquid ING Marisco Liquid Assets Marisco Growth Assets Advisor Growth Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 1,071,485 $ - $ 1,002,892 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (35,023) (2) (13,950) - Net realized gain (loss) on investments and capital gains distributions - - (524,085) - Net unrealized appreciation (depreciation) of investments - - 244,425 (5) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (10) (2) (293,610) (5) Changes from contract transactions: Purchase payments 454,243 3,191 56,919 68 Contract distributions and terminations (594,093) - (35,962) - Transfer payments from (to) other Divisions (including the fixed accounts), net 126,567 (1,389) (170,198) 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (13,283) 1,802 (149,241) 97 -------------- -------------- -------------- -------------- Total increase (decrease) (48,306) 1,800 (442,851) 92 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 1,023,179 1,800 560,041 92 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (27,729) (69) (8,747) (37) Net realized gain (loss) on investments and capital gains distributions - - (13,050) 2 Net unrealized appreciation (depreciation) of investments - - 131,609 443 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (27,729) (69) 109,812 408 Changes from contract transactions: Purchase payments 309,661 8,215 52,040 4,064 Contract distributions and terminations (436,427) (421) (23,310) (43) Transfer payments from (to) other Divisions (including the fixed accounts), net 58,974 (1,144) (4,723) 1,010 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (67,792) 6,650 24,007 5,031 -------------- -------------- -------------- -------------- Total increase (decrease) (95,521) 6,581 133,819 5,439 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 927,658 $ 8,381 $ 693,860 $ 5,531 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 85 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING ING Mercury ING Mercury Mercury Focus Mercury Fundamental Focus Value Fundamental Growth Value Advisor Growth Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (39) - (12) - Net realized gain (loss) on investments and capital gains distributions (201) - (17) - Net unrealized appreciation (depreciation) of investments (90) (2) (114) (5) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (330) (2) (143) (5) Changes from contract transactions: Purchase payments 3,044 23 1,709 99 Contract distributions and terminations (96) - (21) - Transfer payments from (to) other Divisions (including the fixed accounts), net 3,313 27 1,197 14 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 6,261 50 2,885 113 -------------- -------------- -------------- -------------- Total increase (decrease) 5,931 48 2,742 108 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 5,931 48 2,742 108 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (154) (4) (99) (5) Net realized gain (loss) on investments and capital gains distributions (66) 3 (25) - Net unrealized appreciation (depreciation) of investments 1,305 29 917 54 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 1,085 28 793 49 Changes from contract transactions: Purchase payments 6,465 353 4,313 339 Contract distributions and terminations (166) (1) (155) (4) Transfer payments from (to) other Divisions (including the fixed accounts), net 4,039 78 1,907 130 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 10,338 430 6,065 465 -------------- -------------- -------------- -------------- Total increase (decrease) 11,423 458 6,858 514 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 17,354 $ 506 $ 9,600 $ 622 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 86 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING MFS ING MFS Mid-Cap ING MFS Mid-Cap Growth ING MFS Research Growth Advisor Research Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 928,290 $ - $ 637,711 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (11,581) - (7,743) - Net realized gain (loss) on investments and capital gains distributions (502,998) - (159,946) - Net unrealized appreciation (depreciation) of investments 41,552 (9) 3,501 (3) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (473,027) (9) (164,188) (3) Changes from contract transactions: Purchase payments 86,280 231 51,406 254 Contract distributions and terminations (30,288) - (28,260) - Transfer payments from (to) other Divisions (including the fixed accounts), net (75,674) 327 (75,634) 75 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (19,682) 558 (52,488) 329 -------------- -------------- -------------- -------------- Total increase (decrease) (492,709) 549 (261,676) 326 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 435,581 549 421,035 326 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7,269) (45) (6,233) (13) Net realized gain (loss) on investments and capital gains distributions (82,076) 13 (112,102) 3 Net unrealized appreciation (depreciation) of investments 192,868 525 162,272 85 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 103,523 493 43,937 75 Changes from contract transactions: Purchase payments 47,877 4,345 33,995 1,029 Contract distributions and terminations (18,860) (4) (17,876) (12) Transfer payments from (to) other Divisions (including the fixed accounts), net (89) 497 (26,230) 83 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 28,928 4,838 (10,111) 1,100 -------------- -------------- -------------- -------------- Total increase (decrease) 132,451 5,331 33,826 1,175 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 568,032 $ 5,880 $ 454,861 $ 1,501 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 87 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING MFS ING ING MFS Total ING PIMCO Total Return PIMCO Core Bond Return Advisor Core Bond Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 793,394 $ - $ 114,996 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 4,052 17 4,398 15 Net realized gain (loss) on investments and capital gains distributions 704 1 2,237 1 Net unrealized appreciation (depreciation) of investments (67,592) (29) 10,717 (3) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (62,836) (11) (17,352) 13 Changes from contract transactions: Purchase payments 155,432 976 135,019 872 Contract distributions and terminations (47,311) - (11,442) - Transfer payments from (to) other Divisions (including the fixed accounts), net (14,587) (10) 169,200 107 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 122,708 966 292,777 979 -------------- -------------- -------------- -------------- Total increase (decrease) 59,872 955 310,129 992 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 853,266 955 425,125 992 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (12,953) (92) (7,795) (137) Net realized gain (loss) on investments and capital gains distributions (1,925) (6) 9,311 20 Net unrealized appreciation (depreciation) of investments 81,075 498 12,129 292 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 66,197 400 13,645 175 Changes from contract transactions: Purchase payments 130,103 8,813 124,241 12,262 Contract distributions and terminations (40,101) (16) (20,703) (130) Transfer payments from (to) other Divisions (including the fixed accounts), net 26,483 1,453 (27,472) 116 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 116,485 10,250 76,066 12,248 -------------- -------------- -------------- -------------- Total increase (decrease) 182,682 10,650 89,711 12,423 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,035,948 $ 11,605 $ 514,836 $ 13,415 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 88 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Salomon ING Salomon ING Salomon Brothers ING Salomon Brothers Brothers All Cap Brothers Investors All Cap Advisor Investors Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 299,314 $ - $ 91,400 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (5,038) - (1,156) 1 Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,693) - Net unrealized appreciation (depreciation) of investments (74,887) (1) (23,933) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (94,192) (1) (27,782) 1 Changes from contract transactions: Purchase payments 83,489 136 33,925 872 Contract distributions and terminations (12,299) - (3,916) - Transfer payments from (to) other Divisions (including the fixed accounts), net (28,572) 41 (1,491) 107 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 42,618 177 28,518 296 -------------- -------------- -------------- -------------- Total increase (decrease) (51,574) 176 736 297 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 247,740 176 92,136 297 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4,421) (25) (1,535) (7) Net realized gain (loss) on investments and capital gains distributions (7,397) 2 (4,178) - Net unrealized appreciation (depreciation) of investments 63,667 298 18,417 66 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 51,849 275 12,704 59 Changes from contract transactions: Purchase payments 45,710 2,848 16,648 349 Contract distributions and terminations (8,941) (5) (3,229) (10) Transfer payments from (to) other Divisions (including the fixed accounts), net 15,177 340 (2,121) 105 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 51,946 3,183 11,298 444 -------------- -------------- -------------- -------------- Total increase (decrease) 103,795 3,458 24,002 503 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 351,535 $ 3,634 $ 116,138 $ 800 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 89 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING T. Rowe Price ING T. Rowe Price Capital ING T. Rowe Price Capital Appreciation T. Rowe Price Equity Income Appreciation Advisor Equity Income Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 644,971 $ - $ 416,763 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1,345) 9 (1,888) 6 Net realized gain (loss) on investments and capital gains distributions 13,721 9 (13,856) 3 Net unrealized appreciation (depreciation) of investments (34,916) (20) (56,537) (20) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (22,540) (2) (72,281) (11) Changes from contract transactions: Purchase payments 223,105 900 85,631 591 Contract distributions and terminations (43,624) - (20,848) - Transfer payments from (to) other Divisions (including the fixed accounts), net 133,166 (4) 403 60 Additions to assets retained in the Account by Golden American Life Insurance Company 1 - 2 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 312,648 896 65,188 651 -------------- -------------- -------------- -------------- Total increase (decrease) 290,108 894 (7,093) 640 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 935,079 894 709,670 640 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (14,505) (101) (6,243) (57) Net realized gain (loss) on investments and capital gains distributions 3,824 30 (3,791) (10) Net unrealized appreciation (depreciation) of investments 106,633 791 49,307 445 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 95,952 720 39,273 378 Changes from contract transactions: Purchase payments 169,599 10,288 83,313 5,526 Contract distributions and terminations (43,537) (189) (17,564) (6) Transfer payments from (to) other Divisions (including the fixed accounts), net (4,652) 1,101 9,408 661 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 121,410 11,200 75,157 6,181 -------------- -------------- -------------- -------------- Total increase (decrease) 217,362 11,920 114,430 6,559 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,152,441 $ 12,814 $ 524,100 $ 7,199 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 90 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING UBS ING Van Kampen ING UBS U.S. Balanced Van Kampen Equity Growth U.S. Balanced Advisor Equity Growth Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 49,242 $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (511) - (19) (1) Net realized gain (loss) on investments and capital gains distributions (2,018) - (88) - Net unrealized appreciation (depreciation) of investments (8,019) - (170) (22) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (10,548) - (277) (23) Changes from contract transactions: Purchase payments 11,948 - 2,518 468 Contract distributions and terminations (2,730) - (48) - Transfer payments from (to) other Divisions (including the fixed accounts), net (671) - 2,169 13 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 8,547 - 4,639 481 -------------- -------------- -------------- -------------- Total increase (decrease) (2,001) - 4,362 458 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 47,241 - 4,362 458 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (734) - (172) (32) Net realized gain (loss) on investments and capital gains distributions (1,346) - (37) 1 Net unrealized appreciation (depreciation) of investments 5,411 - 1,230 194 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 3,331 - 1,021 163 Changes from contract transactions: Purchase payments 5,042 288 10,441 3,234 Contract distributions and terminations (1,536) - (155) (12) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,346 30 4,808 467 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 5,852 318 15,094 3,689 -------------- -------------- -------------- -------------- Total increase (decrease) 9,183 318 16,115 3,852 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 56,424 $ 318 $ 20,477 $ 4,310 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 91 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING ING Van Kampen ING Van Kampen Van Kampen Global Van Kampen Growth and Global Franchise Growth and Income Franchise Advisor Income Advisor -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ 732,049 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (84) (1) (6,430) 5 Net realized gain (loss) on investments and capital gains distributions (154) - (9,833) 1 Net unrealized appreciation (depreciation) of investments (208) 6 (100,836) 12 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (446) 5 (117,099) (6) Changes from contract transactions: Purchase payments 7,816 690 44,218 960 Contract distributions and terminations (161) - (36,216) - Transfer payments from (to) other Divisions (including the fixed accounts), net 7,461 13 (68,345) 36 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 15,116 703 (60,342) 996 -------------- -------------- -------------- -------------- Total increase (decrease) 14,670 708 (177,441) 990 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 14,670 708 554,608 990 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (383) (74) (7,761) (123) Net realized gain (loss) on investments and capital gains distributions 106 (3) (15,775) (3) Net unrealized appreciation (depreciation) of investments 2,951 670 83,753 1,041 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 2,674 593 60,217 915 Changes from contract transactions: Purchase payments 18,244 7,197 45,329 12,238 Contract distributions and terminations (422) (81) (25,535) (239) Transfer payments from (to) other Divisions (including the fixed accounts), net 5,321 1,235 (17,341) 1,610 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 23,143 8,351 2,453 13,609 -------------- -------------- -------------- -------------- Total increase (decrease) 25,817 8,944 62,670 14,524 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 40,487 $ 9,652 $ 617,278 $ 15,514 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 92 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING Van Kampen ING Alger Van Kampen Real Estate Aggressive ING Alger Real Estate Advisor Growth Growth -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 126,169 $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 3,164 7 - - Net realized gain (loss) on investments and capital gains distributions 5,522 2 - - Net unrealized appreciation (depreciation) of investments (16,719) (2) - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (8,033) 5 - - Changes from contract transactions: Purchase payments 44,924 243 - 43 Contract distributions and terminations (8,734) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 33,281 26 - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 69,471 269 - 43 -------------- -------------- -------------- -------------- Total increase (decrease) 61,438 276 - 39 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 187,607 276 - 39 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (3,138) (32) (1) - Net realized gain (loss) on investments and capital gains distributions (510) 1 - - Net unrealized appreciation (depreciation) of investments 54,474 538 20 10 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 50,826 507 19 10 Changes from contract transactions: Purchase payments 37,307 3,038 308 67 Contract distributions and terminations (8,960) (4) - (1) Transfer payments from (to) other Divisions (including the fixed accounts), net 13,991 535 15 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 42,338 3,569 323 66 -------------- -------------- -------------- -------------- Total increase (decrease) 93,164 4,076 342 76 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 280,771 $ 4,352 $ 342 $ 115 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 93 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING American ING Century Baron ING JPMorgan ING JPMorgan Small Cap Small Cap Fleming Mid Cap Value Growth International Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - - - Net realized gain (loss) on investments and capital gains distributions - - - (4) Net unrealized appreciation (depreciation) of investments - - - 7 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - - - 3 Changes from contract transactions: Purchase payments 2 - 7 140 Contract distributions and terminations - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - 158 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 2 - 7 298 -------------- -------------- -------------- -------------- Total increase (decrease) 2 - 7 301 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 2 - 7 301 Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (1) - (10) Net realized gain (loss) on investments and capital gains distributions - - 13 7 Net unrealized appreciation (depreciation) of investments 10 30 (27) 116 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 10 29 (14) 113 Changes from contract transactions: Purchase payments 112 477 693 1,126 Contract distributions and terminations (1) - (3) (8) Transfer payments from (to) other Divisions (including the fixed accounts), net - 15 1,416 1,303 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 111 492 2,106 2,421 -------------- -------------- -------------- -------------- Total increase (decrease) 121 521 2,092 2,534 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 123 $ 521 $ 2,099 $ 2,835 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 94 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING ING MFS(R) MFS(R) Capital Capital ING ING Opportunities Opportunities MFS(R) Global MFS Research (Initial Class) (Service Class) Growth Equity -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 698 $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (17) - - - Net realized gain (loss) on investments and capital gains distributions (59) - - - Net unrealized appreciation (depreciation) of investments (329) (13) - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (405) (13) - - Changes from contract transactions: Purchase payments 717 85 66 - Contract distributions and terminations (25) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 295 - 9 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 987 85 75 - -------------- -------------- -------------- -------------- Total increase (decrease) 582 72 75 - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 1,280 72 75 - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (15) (1) (3) - Net realized gain (loss) on investments and capital gains distributions (99) - 11 - Net unrealized appreciation (depreciation) of investments 289 20 38 4 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 175 19 46 4 Changes from contract transactions: Purchase payments 336 192 277 80 Contract distributions and terminations (38) - (6) - Transfer payments from (to) other Divisions (including the fixed accounts), net 116 - 176 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 414 192 447 80 -------------- -------------- -------------- -------------- Total increase (decrease) 589 211 493 84 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,869 $ 283 $ 568 $ 84 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 95 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Salomon ING Salomon ING OpCap Brothers Brothers Balanced ING PIMCO Aggressive Fundamental Value Total Return Growth Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - 13 - - Net realized gain (loss) on investments and capital gains distributions - 1 - - Net unrealized appreciation (depreciation) of investments (5) (5) - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (5) (9) - - Changes from contract transactions: Purchase payments 131 585 - 9 Contract distributions and terminations - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - (1) - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 131 584 - 9 -------------- -------------- -------------- -------------- Total increase (decrease) 126 593 - 9 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 126 593 - 9 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 5 2 (2) 4 Net realized gain (loss) on investments and capital gains distributions - 2 10 - Net unrealized appreciation (depreciation) of investments 25 26 (65) 13 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 60 30 (57) 17 Changes from contract transactions: Purchase payments 124 998 1,235 360 Contract distributions and terminations - (46) - - Transfer payments from (to) other Divisions (including the fixed accounts), net 42 (126) 1,298 42 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 166 826 2,533 402 -------------- -------------- -------------- -------------- Total increase (decrease) 196 856 2,476 419 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 322 $ 1,449 $ 2,476 $ 428 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 96 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING Salomon ING Brothers T. Rowe Price ING UBS ING Investors Growth Tactical Asset Van Kampen Value Equity Allocation Comstock -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - - - 2 Net realized gain (loss) on investments and capital gains distributions - - - - Net unrealized appreciation (depreciation) of investments - (19) - 7 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - (19) - 9 Changes from contract transactions: Purchase payments 4 163 - 1,591 Contract distributions and terminations - - - (13) Transfer payments from (to) other Divisions (including the fixed accounts), net - - 2 150 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 4 163 2 1,728 -------------- -------------- -------------- -------------- Total increase (decrease) 4 144 2 1,737 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 4 144 2 1,737 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 1 (2) - (174) Net realized gain (loss) on investments and capital gains distributions - (2) - 37 Net unrealized appreciation (depreciation) of investments 4 104 3 1,716 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 5 100 3 1,579 Changes from contract transactions: Purchase payments 242 1,428 43 18,950 Contract distributions and terminations (1) (12) (2) (614) Transfer payments from (to) other Divisions (including the fixed accounts), net 42 40 - 2,303 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 283 1,456 41 20,639 -------------- -------------- -------------- -------------- Total increase (decrease) 288 1,556 44 22,218 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 292 $ 1,700 $ 46 $ 23,955 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 97 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING VIT Worldwide ING VP ING VP ING VP Growth Balanced Bond Growth -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 20,014 $ - $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (536) - 1,106 - Net realized gain (loss) on investments and capital gains distributions (2,830) - 134 - Net unrealized appreciation (depreciation) of investments (4,792) - (195) (5) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (8,158) - (1,045) (5) Changes from contract transactions: Purchase payments 15,820 - 11,426 51 Contract distributions and terminations (673) - (720) - Transfer payments from (to) other Divisions (including the fixed accounts), net 355 - 37,839 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 15,502 - 48,545 51 -------------- -------------- -------------- -------------- Total increase (decrease) 7,344 - 49,590 46 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 27,358 - 49,590 46 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (535) (1) 174 (1) Net realized gain (loss) on investments and capital gains distributions (1,359) - 1,042 1 Net unrealized appreciation (depreciation) of investments 6,537 10 855 14 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 4,643 9 2,071 14 Changes from contract transactions: Purchase payments 10,202 677 30,405 201 Contract distributions and terminations (853) - (3,153) - Transfer payments from (to) other Divisions (including the fixed accounts), net 347 10 855 14 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 9,696 677 20,518 207 -------------- -------------- -------------- -------------- Total increase (decrease) 14,339 686 22,589 221 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 41,697 $ 686 $ 72,179 $ 267 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 98 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP Index Plus Index Plus Index Plus International LargeCap MidCap SmallCap Equity -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 812 $ 820 $ 680 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (31) (48) (32) - Net realized gain (loss) on investments and capital gains distributions (505) (505) (394) - Net unrealized appreciation (depreciation) of investments (104) (180) (90) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (640) (733) (516) - Changes from contract transactions: Purchase payments 3,070 4,161 3,269 - Contract distributions and terminations (85) (74) (43) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,432 1,735 615 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 4,417 5,822 3,841 - -------------- -------------- -------------- -------------- Total increase (decrease) 3,777 5,089 3,325 - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 4,589 5,909 4,005 - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 2 (60) (58) - Net realized gain (loss) on investments and capital gains distributions 117 (116) 45 - Net unrealized appreciation (depreciation) of investments 569 1,315 956 7 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 688 1,139 943 7 Changes from contract transactions: Purchase payments 18,894 4,474 2,915 - Contract distributions and terminations (271) (110) (73) - Transfer payments from (to) other Divisions (including the fixed accounts), net 11,381 194 451 7 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 30,004 4,558 3,293 50 -------------- -------------- -------------- -------------- Total increase (decrease) 30,692 5,697 4,236 57 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 35,281 $ 11,606 $ 8,241 $ 57 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 99 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP Small Value ING VP Growth and Company Opportunity Convertible Income -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 298 $ 194 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (12) 12 - Net realized gain (loss) on investments and capital gains distributions (5) (45) (15) - Net unrealized appreciation (depreciation) of investments (53) (250) (53) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (58) (307) (56) - Changes from contract transactions: Purchase payments 237 981 673 - Contract distributions and terminations - (24) (11) - Transfer payments from (to) other Divisions (including the fixed accounts), net (23) 138 234 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 214 1,095 896 - -------------- -------------- -------------- -------------- Total increase (decrease) 156 788 840 - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 156 1,086 1,034 - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (6) 2 (2) Net realized gain (loss) on investments and capital gains distributions (6) (23) (5) - Net unrealized appreciation (depreciation) of investments 96 145 193 2 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 89 116 190 - Changes from contract transactions: Purchase payments 429 475 824 1,357 Contract distributions and terminations (3) (23) (42) - Transfer payments from (to) other Divisions (including the fixed accounts), net (11) 80 1,203 - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 415 532 1,985 1,357 -------------- -------------- -------------- -------------- Total increase (decrease) 504 648 2,175 1,357 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 660 $ 1,734 $ 3,209 $ 1,357 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 100 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ING VP ING VP ING VP ING VP Growth International Large Company LargeCap Opportunities Value Value Growth -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 5,219 $ - $ 156 $ 533 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (170) - (1) (9) Net realized gain (loss) on investments and capital gains distributions (662) - (40) (292) Net unrealized appreciation (depreciation) of investments (2,425) (10) (163) (52) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (3,257) (10) (204) (353) Changes from contract transactions: Purchase payments 6,716 52 575 - Contract distributions and terminations (246) - (15) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,486 - 446 147 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 7,956 52 1,006 826 -------------- -------------- -------------- -------------- Total increase (decrease) 4,699 42 802 473 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 9,918 42 958 1,006 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (217) (1) (11) (15) Net realized gain (loss) on investments and capital gains distributions (422) (2) (110) (14) Net unrealized appreciation (depreciation) of investments 2,677 40 253 265 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 2,038 37 132 236 Changes from contract transactions: Purchase payments 6,070 293 519 544 Contract distributions and terminations (249) (1) (89) (23) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,142 (10) 166 125 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 7,963 282 596 646 -------------- -------------- -------------- -------------- Total increase (decrease) 10,001 319 728 882 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 19,919 $ 361 $ 1,686 $ 1,888 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 101 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
INVESCO ING VP ING VP VIF - ING VP MidCap SmallCap Financial MagnaCap Opportunities Opportunities Services -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 5,402 $ - $ 14,437 $ 2,404 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (96) - (493) (96) Net realized gain (loss) on investments and capital gains distributions (437) - (1,185) (1,999) Net unrealized appreciation (depreciation) of investments (2,222) (4) (12,282) (590) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (2,755) (4) (13,960) (2,685) Changes from contract transactions: Purchase payments 7,453 16 24,037 11,708 Contract distributions and terminations (335) - (584) (419) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,573 - 6,188 11,933 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 9,691 16 29,641 23,222 -------------- -------------- -------------- -------------- Total increase (decrease) 6,936 12 15,681 20,537 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 12,338 12 30,118 22,941 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (161) (1) (700) (480) Net realized gain (loss) on investments and capital gains distributions (231) - (603) 690 Net unrealized appreciation (depreciation) of investments 2,321 17 10,840 3,602 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 1,929 16 9,537 3,812 Changes from contract transactions: Purchase payments 4,649 219 21,326 14,700 Contract distributions and terminations (381) - (832) (809) Transfer payments from (to) other Divisions (including the fixed accounts), net 964 3 6,524 6,055 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 5,232 222 27,018 19,946 -------------- -------------- -------------- -------------- Total increase (decrease) 7,161 238 36,555 23,758 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 19,499 $ 250 $ 66,673 $ 46,699 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 102 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
INVESCO VIF - INVESCO INVESCO Janus Aspen Health VIF - VIF - Series Sciences Leisure Utilities Balanced -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 10,790 $ - $ 964 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (434) (40) (28) 6 Net realized gain (loss) on investments and capital gains distributions (4,162) (157) (205) (3) Net unrealized appreciation (depreciation) of investments (1,617) 16 (198) (29) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (6,213) (181) (431) (26) Changes from contract transactions: Purchase payments 14,819 4,483 2,753 548 Contract distributions and terminations (1,044) (74) (128) (2) Transfer payments from (to) other Divisions (including the fixed accounts), net 12,206 1,869 4,625 (24) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 25,981 6,278 7,250 522 -------------- -------------- -------------- -------------- Total increase (decrease) 19,768 6,097 6,819 496 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 30,558 6,097 7,783 496 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (692) (200) (186) 8 Net realized gain (loss) on investments and capital gains distributions (186) (27) (369) (1) Net unrealized appreciation (depreciation) of investments 4,989 1,428 1,271 99 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 4,111 1,201 716 106 Changes from contract transactions: Purchase payments 25,291 10,475 7,834 3,551 Contract distributions and terminations (1,174) (290) (328) (9) Transfer payments from (to) other Divisions (including the fixed accounts), net 7,455 4,968 4,366 117 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 31,572 15,153 11,872 3,659 -------------- -------------- -------------- -------------- Total increase (decrease) 35,683 16,354 12,588 3,765 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 66,241 $ 22,451 $ 20,371 $ 4,261 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 103 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Janus Aspen Janus Aspen Series Janus Aspen Series Colonial Flexible Series Worldwide Small Cap Income Growth Growth Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ 1,298 $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 5 (1) (40) - Net realized gain (loss) on investments and capital gains distributions - - (682) - Net unrealized appreciation (depreciation) of investments 10 (32) (169) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 15 (33) (891) - Changes from contract transactions: Purchase payments 270 225 3,277 - Contract distributions and terminations (1) - (141) - Transfer payments from (to) other Divisions (including the fixed accounts), net (1) - (9) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 268 225 3,127 - -------------- -------------- -------------- -------------- Total increase (decrease) 283 192 2,236 - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 283 192 3,534 - Increase (decrease) in net assets from operations Operations: Net investment income (loss) 5 (2) (20) 102 Net realized gain (loss) on investments and capital gains distributions 16 (8) 444 53 Net unrealized appreciation (depreciation) of investments 27 57 148 84 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 48 47 572 239 Changes from contract transactions: Purchase payments 1,555 679 2,874 4,912 Contract distributions and terminations (9) - (183) (37) Transfer payments from (to) other Divisions (including the fixed accounts), net (114) (86) (382) 5,6987 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 1,432 593 2,309 10,573 -------------- -------------- -------------- -------------- Total increase (decrease) 1,480 640 2,881 10,812 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,763 $ 832 $ 6,415 $ 10,812 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 104 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Liberty Liberty Liberty Asset Liberty Federal Small Company Allocation Equity Securities Growth -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 807 $ - $ - Increase (decrease) in net assets from operations Operations: Net investment income (loss) - (11) - - Net realized gain (loss) on investments and capital gains distributions - (84) - - Net unrealized appreciation (depreciation) of investments - (126) - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations - (221) - - Changes from contract transactions: Purchase payments - 15 - - Contract distributions and terminations - (33) - - Transfer payments from (to) other Divisions (including the fixed accounts), net - (81) - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions - (99) - - -------------- -------------- -------------- -------------- Total increase (decrease) - (320) - - -------------- -------------- -------------- -------------- Net assets at December 31, 2002 - 487 - - Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4) (6) (1) - Net realized gain (loss) on investments and capital gains distributions 4 (53) 1 3 Net unrealized appreciation (depreciation) of investments 60 134 2 15 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 60 75 2 18 Changes from contract transactions: Purchase payments - - - - Contract distributions and terminations (6) (9) (1) (1) Transfer payments from (to) other Divisions (including the fixed accounts), net 506 42 87 48 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 500 33 86 47 -------------- -------------- -------------- -------------- Total increase (decrease) 560 108 88 65 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 560 $ 595 $ 88 $ 65 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 105 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
PIMCO Oppenheimer Oppenheimer PIMCO StocksPLUS Global Strategic High Growth and Securities Bond Yield Income -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ - $ 236,343 $ 241,065 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) - 16,659 1,636 Net realized gain (loss) on investments and capital gains distributions (6) (1) (18,706) (63,970) Net unrealized appreciation (depreciation) of investments (38) 1 (3,581) 10,124 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (45) - (5,628) (52,210) Changes from contract transactions: Purchase payments 273 51 55,612 25,548 Contract distributions and terminations (3) - (15,056) (10,918) Transfer payments from (to) other Divisions (including the fixed accounts), net (20) (35) 33,966 (21,848) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 250 16 74,522 (7,218) -------------- -------------- -------------- -------------- Total increase (decrease) 205 16 68,894 (59,428) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 205 16 305,237 181,637 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) 1 17,821 (611) Net realized gain (loss) on investments and capital gains distributions (5) 5 (4,405) (31,574) Net unrealized appreciation (depreciation) of investments 173 7 42,196 58,046 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 167 13 55,612 25,861 Changes from contract transactions: Purchase payments 1,361 273 100,778 12,997 Contract distributions and terminations (1) 1 (18,056) (9,118) Transfer payments from (to) other Divisions (including the fixed accounts), net 43 (70) 93,180 (33,649) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 1,403 204 175,902 (29,770) -------------- -------------- -------------- -------------- Total increase (decrease) 1,570 217 231,514 (3,909) -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 1,775 $ 233 $ 536,751 $ 177,728 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 106 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Pioneer Pioneer Pioneer Mid-Cap Pioneer Equity-Income Fund Value Small Company VCT VCT VCT VCT -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ - $ 2,275 $ 5,139 $ 938 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 2 (98) (478) (39) Net realized gain (loss) on investments and capital gains distributions - (1,493) 76 (35) Net unrealized appreciation (depreciation) of investments (21) (1,359) (6,968) (577) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (19) (2,950) (7,370) (651) Changes from contract transactions: Purchase payments 198 10,991 22,661 2,180 Contract distributions and terminations - (339) (1,418) (56) Transfer payments from (to) other Divisions (including the fixed accounts), net - 10,087 34,050 1,006 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 198 20,739 55,293 3,130 -------------- -------------- -------------- -------------- Total increase (decrease) 179 17,789 47,923 2,479 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 179 20,064 53,062 3,417 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 4 (260) (960) (44) Net realized gain (loss) on investments and capital gains distributions (1) (673) (332) (70) Net unrealized appreciation (depreciation) of investments 28 3,588 14,053 554 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 31 2,655 12,761 440 Changes from contract transactions: Purchase payments 647 17,973 42,838 645 Contract distributions and terminations - (726) (1,955) (36) Transfer payments from (to) other Divisions (including the fixed accounts), net 3 6,911 16,310 336 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 650 24,158 57,193 945 -------------- -------------- -------------- -------------- Total increase (decrease) 681 26,813 69,954 1,385 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 860 $ 46,877 $ 123,016 $ 4,802 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 107 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
ProFund VP ProFund VP ProFund VP Rising Rates ProFund VP Bull Europe 30 Opportunity Small Cap -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 20,583 $ 6,312 $ - $ 19,968 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (488) (191) - (628) Net realized gain (loss) on investments and capital gains distributions (7,045) (1,793) - (6,274) Net unrealized appreciation (depreciation) of investments (1,022) (425) - (1,582) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (8,555) (2,409) - (8,484) Changes from contract transactions: Purchase payments 5,734 2,797 - 11,484 Contract distributions and terminations (1,352) (941) - (4,103) Transfer payments from (to) other Divisions (including the fixed accounts), net 14,855 9,868 - 19,747 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 19,237 11,724 - 27,128 -------------- -------------- -------------- -------------- Total increase (decrease) 10,682 9,315 - 18,644 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 31,265 15,627 - 38,612 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (638) (185) (9) (678) Net realized gain (loss) on investments and capital gains distributions 4,914 1,071 (9) 6,368 Net unrealized appreciation (depreciation) of investments 588 317 (523) 453 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 4,864 1,203 (541) 6,143 Changes from contract transactions: Purchase payments 10,256 2,597 188 11,823 Contract distributions and terminations (1,320) (504) (9) (1,575) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,241 (5,151) 13,377 32,175 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 11,177 (3,058) 13,556 42,423 -------------- -------------- -------------- -------------- Total increase (decrease) 16,041 (1,855) 13,015 48,566 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 47,306 $ 13,772 $ 13,015 $ 87,178 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 108 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
SP Jennison Putnam VT Putnam VT Prudential International Discovery Growth and Jennison Growth Growth Income -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 45,991 $ 11,310 $ 577 $ 455 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (821) (297) (20) - Net realized gain (loss) on investments and capital gains distributions (12,816) (2,827) (8) (30) Net unrealized appreciation (depreciation) of investments (2,790) (897) (431) (254) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (16,427) (4,021) (459) (284) Changes from contract transactions: Purchase payments 16,384 7,906 1,233 1,270 Contract distributions and terminations (2,130) (550) (19) (94) Transfer payments from (to) other Divisions (including the fixed accounts), net (6,070) 696 313 315 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 8,184 8,052 1,527 1,491 -------------- -------------- -------------- -------------- Total increase (decrease) (8,243) 4,031 1,068 1,207 -------------- -------------- -------------- -------------- Net assets at December 31, 2002 37,748 15,341 1,645 1,662 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (682) (340) (26) 12 Net realized gain (loss) on investments and capital gains distributions 297 2,370 (40) (64) Net unrealized appreciation (depreciation) of investments 6,499 2,715 457 241 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 6,114 4,745 391 189 Changes from contract transactions: Purchase payments 8,682 14,612 640 956 Contract distributions and terminations (1,206) (411) (54) (62) Transfer payments from (to) other Divisions (including the fixed accounts), net 693 8,403 183 31 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 8,169 22,574 769 925 -------------- -------------- -------------- -------------- Total increase (decrease) 14,283 27,319 1,160 1,114 -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 52,031 $ 42,660 $ 2,805 $ 2,776 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 109 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Putnam VT Smith Barney International International Smith Barney Growth and Smith Barney All Cap Large Cap Income High Income Growth Value -------------- -------------- -------------- -------------- Net assets at January 1, 2002 $ 604 $ 370 $ 300 $ 563 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (29) 77 (1) 11 Net realized gain (loss) on investments and capital gains distributions (12) (33) (9) (24) Net unrealized appreciation (depreciation) of investments (412) (62) (67) (133) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations (453) (18) (77) (146) Changes from contract transactions: Purchase payments 2,192 - - - Contract distributions and terminations (25) (17) (3) (9) Transfer payments from (to) other Divisions (including the fixed accounts), net (663) (16) (19) (37) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions 2,830 (33) (22) (46) -------------- -------------- -------------- -------------- Total increase (decrease) 2,377 (51) (99) (192) -------------- -------------- -------------- -------------- Net assets at December 31, 2002 2,981 319 201 371 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 15 (3) (2) (5) Net realized gain (loss) on investments and capital gains distributions (137) (74) (23) (37) Net unrealized appreciation (depreciation) of investments 588 131 48 77 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets from operations 466 54 23 35 Changes from contract transactions: Purchase payments 574 - - - Contract distributions and terminations (25) (16) (4) (18) Transfer payments from (to) other Divisions (including the fixed accounts), net (590) (55) (19) (20) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (41) (71) (23) (38) -------------- -------------- -------------- -------------- Total increase (decrease) 425 (17) - (3) -------------- -------------- -------------- -------------- Net assets at September 30, 2003 $ 3,406 $ 302 $ 201 $ 368 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 110 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Statements of Changes in Net Assets-Unaudited For the nine months ended September 30, 2003 and the year ended December 31, 2002 (Dollars in thousands, except for unit data)
Smith Barney UBS Money Tactical Market Allocation -------------- -------------- Net assets at January 1, 2002 $ 221 $ 787 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (8) (12) Net realized gain (loss) on investments and capital gains distributions - (15) Net unrealized appreciation (depreciation) of investments - (299) -------------- -------------- Net increase (decrease) in net assets from operations (8) (326) Changes from contract transactions: Purchase payments - 768 Contract distributions and terminations (174) (87) Transfer payments from (to) other Divisions (including the fixed accounts), net 104 406 Additions to assets retained in the Account by Golden American Life Insurance Company - - -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (70) 1,087 -------------- -------------- Total increase (decrease) (78) 761 -------------- -------------- Net assets at December 31, 2002 143 1,548 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (8) (8) Net realized gain (loss) on investments and capital gains distributions - (42) Net unrealized appreciation (depreciation) of investments - 272 -------------- -------------- Net increase (decrease) in net assets from operations (8) 222 Changes from contract transactions: Purchase payments - 507 Contract distributions and terminations (266) (106) Transfer payments from (to) other Divisions (including the fixed accounts), net 215 1,082 -------------- -------------- Net increase (decrease) in net assets derived from principal transactions (51) 1,483 -------------- -------------- Total increase (decrease) (59) 1,705 -------------- -------------- Net assets at September 30, 2003 $ 84 $ 3,253 ============== ==============
The accompanying notes are an integral part of these financial statements. 111 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 1. Organization Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American" or the "Company") to support the operations of variable annuity contracts ("Contracts"). The Company is an indirect wholly owned subsidiary of ING Groep, N.V., a global financial services holding company based in The Netherlands. 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 charged 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 the first nine months of 2003, the Account had GoldenSelect Contracts, SmartDesign Contracts, ING Rollover Choice Contracts, ING Focus Variable Annuity ("Focus VA")Contracts, and Wells Fargo ING Contracts. GoldenSelect Contracts sold by Golden American during 2002 included Access, Premium Plus, ESII, Access One, Landmark, Generations, and Opportunitites Contracts. SmartDesign Contracts included Variable Annuity ("VA"), Advantage, and Signature Contracts. Wells Fargo ING Contracts included Opportunities Contracts and Landmark Contracts. The Account discontinued offering DVA 80 Contracts in May 1991 and discontinued registering DVA and DVA Series 100 Contracts for sale to the public as of May 1, 2000. 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. 112 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- At September 30, 2003, the Account had 166 investment divisions (the "Divisions"), 49 of which invest in independently managed mutual funds and 117 of which invest in mutual funds managed by affiliates, either Direct Services, Inc., ING Investments, LLC, or ING Life Insurance and Annuity Company. The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio" or "Fund") of various investment trusts (the "Trusts"). Investment Divisions at September 30, 2002 and related Trusts are as follows:
AIM Variable Insurance Funds: ING Investors Trust (continued): AIM V.I. Capital Appreciation Fund (Class II)* ING Van Kampen Equity Growth Portfolio (Service Class)* AIM V.I. Core Equity Fund (Class II)* ING Van Kampen Equity Growth Portfolio (Advisor Class)* AIM V.I. Dent Demographic Trends Fund (Class II) ING Van Kampen Global Franchise Portfolio (Service Class)* AIM V.I. Growth Fund (Class II) ING Van Kampen Global Franchise Portfolio (Advisor Class)* AIM V.I. Premier Equity Fund (Class II)* ING Van Kampen Growth and Income Portfolio (Service Class) AllianceBernstein Variable Products Series Fund, Inc.: ING Van Kampen Growth and Income Portfolio (Advisor Class)* AllianceBernstein Growth and Income Portfolio (Class B) ING Van Kampen Real Estate Portfolio (Service Class) AllianceBernstein Premier Growth Portfolio (Class B) ING Van Kampen Real Estate Portfolio (Advisor Class)* AllianceBernstein Value Portfolio (Class B) ING Partners, Inc.: Fidelity Variable Insurance Products Fund: ING Alger Aggressive Growth Portfolio (Service Class)** Fidelity(R) VIP Contrafund(R) Portfolio (Class S2) ING Alger Growth Portfolio (Service Class)* Fidelity(R) VIP Equity-Income Portfolio (Class S2) ING American Century Small Cap Value Portfolio (Service Class)* Fidelity(R) VIP Growth Portfolio (Class S2) ING Baron Small Cap Growth Portfolio (Service Class)** Fidelity(R) VIP Overseas Portfolio (Class S2)* ING JPMorgan Fleming International Portfolio (Service Class)* Franklin Templeton Variable Insurance Products Trust: ING JPMorgan Mid Cap Value Portfolio (Service Class)* Franklin Small Cap Value Securities Fund (Class 2)* ING MFS(R) Capital Opportunities Portfolio (Initial Class) Greenwich Street Series Fund: ING MFS(R) Capital Opportunities Portfolio (Service Class)* Greenwich Appreciation Portfolio ING MFS(R) Global Growth Portfolio (Service Class)* The Galaxy VIP Fund: ING MFS(R) Research Equity Portfolio (Service Class)** Galaxy VIP Asset Allocation Fund ING OpCap Balanced Value Portfolio (Service Class)* Galaxy VIP Growth and Income Fund ING PIMCO Total Return Portfolio (Service Class)* Galaxy VIP High Quality Bond Fund ING Salomon Brothers Aggressive Growth Portfolio (Service Class)** Galaxy VIP Small Company Growth Fund ING Salomon Brothers Fundamental Value Portfolio (Service Class)* Galaxy VIP Small Company Growth Fund ING Salomon Brothers Investors Value Portfolio (Service Class)* ING GET Fund: ING T. Rowe Price Growth Equity Portfolio (Service Class)* ING GET Fund - Series N ING UBS Tactical Asset Allocation Portfolio (Service Class)* ING GET Fund - Series P ING Van Kampen Comstock Fund (Service Class)* ING GET Fund - Series Q ING Variable Insurance Trust: ING GET Fund - Series R* ING VIT Worldwide Growth ING GET Fund - Series S* ING GET Fund - Series T* ING GET Fund - Series U* ING GET Fund - Series V ING GET U.S. Core Portfolio - Series 1** ING GET U.S. Core Portfolio - Series 2 (Guaranteed)**
113 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
ING Investors Trust: ING Variable Portfolios, Inc.: ING AIM Mid-Cap Growth Portfolio (Service Class) ING VP Balanced Portfolio (Service Class)** ING AIM Mid-Cap Growth Portfolio (Advisor Class)* ING VP Bond Portfolio (Service Class)* ING Alliance Mid-Cap Growth Portfolio (Service Class) ING VP Growth Portfolio (Service Class)* ING Alliance Mid-Cap Growth Portfolio (Advisor Class)* ING VP Index Plus LargeCap Portfolio (Service Class) ING American Funds Growth Portfolio (Service Class)** ING VP Index Plus MidCap Portfolio (Service Class) ING American Funds Growth-Income Portfolio (Service Class)** ING VP Index Plus SmallCap Portfolio (Service Class) ING American Funds International Portfolio (Service Class)** ING VP International Equity Portfolio (Service Class)** ING Capital Guardian Large Cap Value Portfolio (Service Class) ING VP Small Company Portfolio (Service Class)* ING Capital Guardian Large Cap Value Portfolio (Advisor Class)* ING VP Value Opportunity Portfolio (Service Class) ING Capital Guardian Managed Global Portfolio (Service Class) ING Variable Products Trust: ING Capital Guardian Managed Global Portfolio (Advisor Class)* ING VP Convertible Portfolio (Service Class) ING Capital Guardian Small Cap Portfolio (Service Class) ING VP Growth and Income Portfolio (Service Class)** ING Capital Guardian Small Cap Portfolio (Advisor Class)* ING VP Growth Opportunities Portfolio (Service Class) ING Developing World Portfolio (Service Class) ING VP International Value Portfolio (Service Class)* ING Developing World Portfolio (Advisor Class)* ING VP Large Company Value Portfolio (Service Class) ING Eagle Asset Value Equity Portfolio (Service Class) ING VP LargeCap Growth Portfolio (Service Class) ING Eagle Asset Value Equity Portfolio (Advisor Class)* ING VP MagnaCap Portfolio (Service Class) ING FMR Diversified Mid-Cap Portfolio (Service Class) ING VP MidCap Opportunities Portfolio (Service Class)* ING FMR Diversified Mid-Cap Portfolio (Advisor Class)* ING VP SmallCap Opportunities Portfolio (Service Class) ING Goldman Sachs Internet Tollkeeper Portfolio (Service Class) INVESCO Variable Investment Funds, Inc.: ING Goldman Sachs Internet Tollkeeper Portfolio (Advisor Class)* INVESCO VIF - Financial Services Fund ING Hard Assets Portfolio (Service Class) INVESCO VIF - Health Sciences Fund ING Hard Assets Portfolio (Advisor Class)* INVESCO VIF - Leisure Fund* ING International Portfolio (Service Class) INVESCO VIF - Utilities Fund ING International Portfolio (Advisor Class)* Janus Aspen Series: ING Janus Growth and Income Portfolio (Service Class) Janus Aspen Series Balanced Portfolio (Class S)* ING Janus Growth and Income Portfolio (Advisor Class)* Janus Aspen Series Flexible Income Portfolio (Class S)* ING Janus Special Equity Portfolio (Service Class) Janus Aspen Series Growth Portfolio (Class S)* ING Janus Special Equity Portfolio (Advisor Class)* Janus Aspen Series Worldwide Growth Portfolio (Class S) ING Jennison Equity Opportunities Portfolio (Service Class) Liberty Variable Insurance Trust: ING Jennison Equity Opportunities Portfolio (Advisor Class)* Colonial Small Cap Value Fund (Class B)** ING JPMorgan Fleming Small Cap Equity Portfolio (Service Class)* Liberty Variable Series: ING JPMorgan Fleming Small Cap Equity Portfolio (Advisor Class)* Liberty Asset Allocation Fund Variable Series (Class A)** ING Julius Baer Foreign Portfolio (Service Class)* Liberty Equity Fund Variable Series (Class A) ING Julius Baer Foreign Portfolio (Advisor Class)* Liberty Federal Securities Fund Variable Series (Class A)** ING Limited Maturity Bond Portfolio (Service Class) Liberty Small Company Growth Fund Variable ING Liquid Assets Portfolio (Service Class) Series (Class A)** ING Liquid Assets Portfolio (Advisor Class)* Oppenheimer Variable Accounts Fund: ING Marisco Growth Portfolio (Service Class) Oppenheimer Global Securities Fund/VA (Class S)* ING Marisco Growth Portfolio (Advisor Class)* Oppenheimer Strategic Bond Fund/VA (Class S)* ING Mercury Focus Value Portfolio (Service Class)* PIMCO Variable Insurance Trust: ING Mercury Focus Value Portfolio (Advisor Class)* PIMCO High Yield Portfolio ING Mercury Fundamental Growth Portfolio (Service Class)* PIMCO StocksPLUS Growth and Income Portfolio ING Mercury Fundamental Growth Portfolio (Advisor Class)* Pioneer Variable Contracts Trust: ING MFS(R) Mid-Cap Growth Portfolio (Service Class) Pioneer Equity-Income VCT Portfolio (Class II)* ING MFS(R) Mid-Cap Growth Portfolio (Advisor Class)* Pioneer Fund VCT Portfolio (Class II) Pioneer Mid-Cap Value VCT Pioneer Small Company VCT Portfolio (Class II)
114 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
ING Investors Trust: ING MFS(R) Research Portfolio (Service Class) ProFunds VP: ING MFS(R) Research Portfolio (Advisor Class)* ProFund VP Bull ING MFS(R) Total Return Portfolio (Service Class) ProFund VP Europe 30 ING MFS(R) Total Return Portfolio (Advisor Class)* ProFund VP Rising Rates Opportunity ** ING PIMCO Core Bond Portfolio (Service Class) ProFund VP Small Cap ING PIMCO Core Bond Portfolio (Advisor Class)* Prudential Series Fund, Inc.: ING Salomon Brothers All Cap Portfolio (Service Class) Prudential Jennison Portfolio (Class II) ING Salomon Brothers All Cap Portfolio (Advisor Class)* SP Jennison International Growth Portfolio (Class II) ING Salomon Brothers Investors Portfolio (Service Class) Putnam Variable Trust: ING Salomon Brothers Investors Portfolio (Advisor Class)* Putnam VT Discovery Growth Fund (Class IB) ING T. Rowe Price Capital Appreciation Portfolio (Service Class) Putnam VT Growth and Income (Class IB) ING T. Rowe Price Capital Appreciation Portfolio (Advisor Class)* Putnam VT International Growth and Income (Class IB) ING T. Rowe Price Equity Income Portfolio (Service Class) Travelers Series Fund Inc.: ING T. Rowe Price Equity Income Portfolio (Advisor Class)* Smith Barney High Income ING UBS U.S. Balanced Portfolio (Service Class) Smith Barney International All Cap Growth ING UBS U.S. Balanced Portfolio (Advisor Class)** Smith Barney Large Cap Value Smith Barney Money Market * Division added in 2002. UBS Series Trust: ** Division added in 2003. UBS Tactical Allocation Portfolio (Class I)
115 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- The names of certain Divisions were changed during 2003. The following is a summary of current and former names for those Divisions:
Current Name Former Name ---------------------------------------------------------- -------------------------------------------------- ING Investors Trust (continued): The GCG Trust (continued): ING AIM Mid-Cap Growth Strategic Equity ING AIM Mid-Cap Growth Advisor Strategic Equity Advisor ING Alliance Mid-Cap Growth Capital Growth ING Alliance Mid-Cap Growth Advisor Capital Growth Advisor ING Capital Guardian Large Cap Value Large Cap Value ING Capital Guardian Large Cap Value Advisor Large Cap Value Advisor ING Capital Guardian Managed Global Managed Global ING Capital Guardian Managed Global Advisor Managed Global Advisor ING Capital Guardian Small Cap Capital Guardian Small Cap ING Capital Guardian Small Cap Advisor Capital Guardian Small Cap Advisor ING Developing World Developing World ING Developing World Advisor Developing World Advisor ING Eagle Asset Value Equity Value Equity ING Eagle Asset Value Equity Advisor Value Equity Advisor ING FMR Diversified Mid-Cap Diversified Mid-Cap ING FMR Diversified Mid-Cap Advisor Diversified Mid-Cap Advisor ING Goldman Sachs Internet Tollkeeper Internet Tollkeeper ING Goldman Sachs Internet Tollkeeper Advisor Internet Tollkeeper Advisor ING Hard Assets Hard Assets ING Hard Assets Advisor Hard Assets Advisor ING International International Equity ING International Advisor International Equity Advisor ING Janus Growth and Income Janus Growth and Income ING Janus Growth and Income Advisor Janus Growth and Income Advisor ING Janus Special Equity Special Situations ING Janus Special Equity Advisor Special Situations Advisor ING Jennison Equity Opportunities Equity Opportunity ING Jennison Equity Opportunities Advisor Equity Opportunity Advisor ING JPMorgan Fleming Small Cap Equity JPMorgan Fleming Small Cap Equity ING JPMorgan Fleming Small Cap Equity Advisor JPMorgan Fleming Small Cap Equity Advisor ING Julius Baer Foreign International Enhanced EAFE ING Julius Baer Foreign Advisor International Enhanced EAFE Advisor ING Limited Maturity Bond Limited Maturity Bond ING Liquid Assets Liquid Assets ING Liquid Assets Advisor Liquid Assets Advisor ING Marisco Growth Growth ING Marisco Growth Advisor Growth Advisor
116 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Current Name Former Name --------------------------------------------------- ------------------------------------ ING Investors Trust: The GCG Trust: ING Marisco Growth Advisor Growth Advisor ING Mercury Focus Value Focus Value ING Mercury Focus Value Advisor Focus Value Advisor ING Mercury Fundamental Growth Fundamental Growth Focus ING Mercury Fundamental Growth Advisor Fundamental Growth Focus Advisor ING MFS Mid-Cap Growth Mid-Cap Growth ING MFS Mid-Cap Growth Advisor Mid-Cap Growth Advisor ING MFS Research Research ING MFS Research Advisor Research Advisor ING MFS Total Return Total Return ING MFS Total Return Advisor Total Return Advisor ING PIMCO Core Bond Core Bond ING PIMCO Core Bond Advisor Core Bond Advisor ING Salomon Brothers All Cap All Cap ING Salomon Brothers All Cap Advisor All Cap Advisor ING Salomon Brothers Investors Investors ING Salomon Brothers Investors Advisor Investors Advisor ING T. Rowe Price Capital Appreciation Fully Managed ING T. Rowe Price Capital Appreciation Advisor Fully Managed Advisor ING T. Rowe Price Equity Income Equity Income ING T. Rowe Price Equity Income Advisor Equity Income Advisor ING UBS U.S. Balanced Asset Allocation Growth ING Van Kampen Equity Growth Equity Growth ING Van Kampen Equity Growth Advisor Equity Growth Advisor ING Van Kampen Global Franchise Global Franchise ING Van Kampen Global Franchise Advisor Global Franchise Advisor ING Van Kampen Growth and Income Van Kampen Growth and Income ING Van Kampen Growth and Income Advisor Van Kampen Growth and Income Advisor ING Van Kampen Real Estate Real Estate ING Van Kampen Real Estate Advisor Real Estate Advisor ING Partners, Inc.: ING Partners, Inc.: ING JPMorgan Fleming International ING Scudder International Growth ING Salomon Brothers Fundamental Value ING Salomon Bros. Capital Liberty Variable Series: The Galaxy VIP Fund: Liberty Equity Galaxy VIP Equity Putnam Variable Trust: Putnam Variable Trust: Putnam VT Discovery Growth Putnam Voyager
117 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 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 accounting principles generally accepted in the United States 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 recorded at fair value, determined by 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. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments. 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. Transfers Transfers between the Account and Golden American relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by Golden American, Contractowner transfers between the general account and the Divisions, and other Contractowner activity, including Contract deposits and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to Golden American Life Insurance Company on the Statement of Assets and Liabilities. 118 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 3. Charges and Fees Prior to February 1, 2000, DVA Plus, Access, and Premium Plus Contracts 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. In the state of Washington, the 5.5% Solution is offered instead of the 7% Solution and Max 5.5 is offered instead of Max 7 after February 1, 2000. ES II, Generations, Landmark and Opportunities contracts each have four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. In the state of Washington, the 5.5% Solution is offered instead of the 7% Solution and Max 5.5 is offered instead of Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. Under the terms of all Contracts, 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 2000) 5.5% Solution 1.30 DVA Plus (post January 2000) Annual Ratchet 1.30 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
119 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Series Annual Rates --------------------------------------------------------- ------------ 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 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% 1.40 ES II (post 2000) Annual Ratchet 1.50 ES II (post 2000) Max 5.5 1.55
120 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Series Annual Rates --------------------------------------------------------- ------------ 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 Advantage Option I 2.05 Advantage Option II 2.25 Advantage Option III 2.40 Rollover Choice Option I 0.60 Rollover Choice Option II 0.80 Rollover Choice Option III 0.95 Opportunities-Standard 1.25 Opportunities-5.5% Solution 1.40 Opportunities-Annual Ratchet 1.50 Opportunities-7% Solution 1.60 Opportunities-Max 5.5 1.55 Opportunities-Max 7 1.70 Signature Option I 1.10 Signature Option II 1.30 Signature Option III 1.45 Focus VA Option I 0.60 Focus VA Option II 0.80
121 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- Asset Based Administrative Charges A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA 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, VA, Advantage, Rollover Choice, Focus VA, and Opportunities 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, VA, Advantage, and Rollover Choice Contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts, the charge is $0. 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. 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 each Contract on its anniversary date. Contingent Deferred Sales Charges Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite, Landmark, VA, Advantage, Rollover Choice, Focus VA, and Opportunities 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 Granite Years Elapsed PrimElite Opportunities, Since Premium DVA 80 & DVA Premium ES II & Signature Rollover Payment & DVA Plus Plus Generations Value Advantage Landmark & VA Choice Focus VA --------------- -------- --------- ------- -------------- ------- --------- -------- --------- -------- -------- 0 6% 7% 8% 8% 6% 6% 6% 7% 7% 3% 1 5 7 8 7 6 5 5 7 6 2 2 4 6 8 6 6 4 4 6 5 1 3 3 5 8 5 5 - 3 6 4 - 4 2 4 7 4 4 - - 5 3 - 5 1 3 6 3 3 - - 4 2 - 6 - 1 5 2 1 - - 3 1 - 7 - - 3 1 - - - - - - 8 - - 1 - - - - - - - 9+ - - - - - - - - - -
122 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- Other Contract Charges Under DVA 80, DVA, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contractowners taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA Contracts, annual distribution fees are deducted from the Contracts' 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 Contracts, although the sales load is chargeable to each premium when Golden American receives it, 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 depends on the Contractowner'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. 123 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- Net Assets Retained in the Account by Golden American Life Insurance Company 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, 2002 -------------------- Dollars In Thousands Balance at beginning of year $ 135 Sales load advanced 9 Amortization of deferred sales load and premium tax (144) --------------------- Balance at end of year $ - =====================
4. Related Party Transactions During the nine months ended September 30, 2003, management and service fees were paid indirectly to Directed Services, Inc., an affiliate of the Company, in its capacity as investment manager to the ING Investors Trust. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.23% to 0.96% of the average net assets of each respective Series. In addition, management and service fees were paid to ING Investments, LLC, in its capacity as investment adviser to the ING GET Fund, the ING Variable Insurance Trust, ING VP Bond Portfolio, ING Variable Portfolios, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement provided for fees at annual rates ranging from 0.25% to 1.00% of the average net assets of each respective Portfolio. Management and service fees were paid to ING Life Insurance and Annuity Company, an affiliate of the Company, in its capacity as investment adviser to ING Partners, Inc. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.50% to 1.00% of the average net assets of each respective Portfolio. 124 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 5. Purchases and Sale of Investment Securities The aggregate cost of purchases and proceeds from sales of investments follows:
Nine months ended Year ended September 30, 2003 December 31, 2002 ----------------------- ----------------------- Purchases Sales Purchases Sales --------- --------- --------- --------- (Dollars In Thousands) AIM Variable Insurance Funds: AIM V.I. Capital Appreciation $ 55 $ 24 $ 34 $ - AIM V.I. Core Equity 100 - 44 - AIM V.I. Dent Demographic Trends 27,532 2,674 16,368 5,241 AIM V.I. Growth 1,150 414 987 372 AIM V.I. Premier Equity 61 17 87 - AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income 2,985 606 4,785 619 AllianceBernstein Premier Growth 2,519 1,699 3,175 1,593 AllianceBernstein Value 2,918 880 2,631 257 Fidelity Variable Insurance Products Fund: Fidelity(R)VIP Contrafund(R) 8,029 354 4,406 783 Fidelity(R) VIP Equity-Income 73,303 15,385 62,498 39,048 Fidelity(R) VIP Growth 128,940 38,433 48,243 23,758 Fidelity(R) VIP Overseas 104 87 9 - Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 179 2 20 - Greenwich Street Series Fund: Greenwich Appreciation 29 78 81 74 The Galaxy VIP Fund: Galaxy VIP Asset Allocation - 638 33 431 Galaxy VIP Growth and Income - 118 - 32 Galaxy VIP High Quality Bond - 129 32 58 Galaxy VIP Small Company Growth - 53 13 11 ING GET Fund: ING GET Fund - Series N 719 3,949 733 2,401 ING GET Fund - Series P 3,277 27,241 6,579 18,769 ING GET Fund - Series Q 143 37,023 182,185 15,241 ING GET Fund - Series R 311 36,809 184,803 15,647 ING GET Fund - Series S 210 54,724 227,944 9,645 ING GET Fund - Series T 841 76,774 237,424 1,768 ING GET Fund - Series U 260,019 94,563 1,047 - ING GET Fund - Series V 385,427 15,003 - - ING GET U.S. Core Portfolio - Series 1 238,564 1,963 - - ING GET U.S. Core Portfolio - Series 2 (Guaranteed) 2,191 - - - ING Investors Trust: ING AIM Mid-Cap Growth 120,273 113,766 403,752 448,147 ING AIM Mid-Cap Growth Advisor 1,589 40 79 - ING Alliance Mid-Cap Growth 150,440 122,192 271,861 306,181 ING Alliance Mid-Cap Growth Advisor 2,082 46 154 -
125 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 ----------------------- ----------------------- Purchases Sales Purchases Sales --------- --------- --------- --------- (Dollars In Thousands) ING Investors Trust (continued): ING American Funds Growth $ 15,642 $ - $ - $ - ING American Funds Growth-Income 12,794 - - - ING American Funds International 4,944 519 - - ING Capital Guardian Large Cap Value 109,851 15,476 137,118 37,870 ING Capital Guardian Large Cap Value Advisor 4,487 552 347 - ING Capital Guardian Managed Global 56,978 31,573 439,191 413,705 ING Capital Guardian Managed Global Advisor 955 103 51 - ING Capital Guardian Small Cap 151,175 122,740 830,463 842,708 ING Capital Guardian Small Cap Advisor 1,786 4 320 - ING Developing World 43,795 39,181 256,419 261,252 ING Developing World Advisor 837 11 81 - ING Eagle Asset Value Equity 25,766 32,279 102,513 90,027 ING Eagle Asset Value Equity Advisor 708 109 110 - ING FMR Diversified Mid-Cap 30,845 3,994 58,638 6,680 ING FMR Diversified Mid-Cap Advisor 2,312 109 224 - ING Goldman Sachs Internet Tollkeeper 24,629 4,645 16,754 6,112 ING Goldman Sachs Internet Tollkeeper Advisor 1,388 60 57 - ING Hard Assets 55,787 44,580 102,835 64,011 ING Hard Assets Advisor 1,326 29 95 - ING International 268,990 265,470 684,796 688,451 ING International Advisor 2,436 14 254 - ING Janus Growth and Income 58,733 2,898 77,366 13,632 ING Janus Growth and Income Advisor 5,163 592 602 - ING Janus Special Equity 15,481 2,371 11,468 6,198 ING Janus Special Equity Advisor 385 38 56 - ING Jennison Equity Opportunities 41,691 70,559 147,404 177,811 ING Jennison Equity Opportunities Advisor 987 9 34 - ING JPMorgan Fleming Small Cap Equity 28,542 1,080 10,549 557 ING JPMorgan Fleming Small Cap Equity Advisor 5,591 77 520 - ING Julius Baer Foreign 26,426 14,189 18,536 13,290 ING Julius Baer Foreign Advisor 1,286 27 166 - ING Limited Maturity Bond 112,283 115,308 289,313 109,521 ING Liquid Assets 1,477,808 1,573,265 6,067,854 6,116,068 ING Liquid Assets Advisor 11,460 4,878 3,353 1,553 ING Marisco Growth I 104,462 88,910 922,370 1,085,634 ING Marisco Growth Advisor 5,010 17 97 - ING Mercury Focus Value 11,202 1,016 6,954 731 ING Mercury Focus Value Advisor 451 25 50 - ING Mercury Fundamental Growth 6,528 560 3,288 415
126 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 ----------------------- ----------------------- Purchases Sales Purchases Sales --------- --------- --------- --------- (Dollars In Thousands) ING Investors Trust (continued): ING Mercury Fundamental Growth Advisor $ 468 $ 8 $ 113 $ - ING MFS Mid-Cap Growth 206,055 184,173 672,311 703,631 ING MFS Mid-Cap Growth Advisor 4,974 180 558 - ING MFS Research 98,619 114,830 171,313 231,552 ING MFS Research Advisor 1,169 82 329 - ING MFS Total Return 37,914 268,590 141,319 ING MFS Total Return Advisor 10,302 143 1,034 51 ING PIMCO Core Bond 178,450 110,156 332,380 34,599 ING PIMCO Core Bond Advisor 13,468 1,356 995 - ING Salomon Brothers All Cap 77,091 29,540 99,898 62,269 ING Salomon Brothers All Cap Advisor 3,171 13 177 - ING Salomon Brothers Investors 19,336 9,569 37,278 9,900 ING Salomon Brothers Investors Advisor 440 4 297 - ING T. Rowe Price Capital Appreciation 142,504 35,525 383,713 62,233 ING T. Rowe Price Capital Appreciation Advisor 11,521 420 946 34 ING T. Rowe Price Equity Income 94,679 25,701 166,618 101,344 ING T. Rowe Price Equity Income Advisor 6,673 548 673 13 ING UBS U.S. Balanced 10,675 5,558 18,227 10,179 ING UBS U.S. Balanced Advisor 323 5 - - ING Van Kampen Equity Growth 15,356 432 5,244 623 ING Van Kampen Equity Growth Advisor 3,669 11 480 - ING Van Kampen Global Franchise 28,237 5,474 19,859 4,824 ING Van Kampen Global Franchise Advisor 8,419 142 744 42 ING Van Kampen Growth and Income 46,476 51,637 60,273 127,038 ING Van Kampen Growth and Income Advisor 14,393 905 1,031 31 ING Van Kampen Real Estate 76,810 37,581 137,466 62,909 ING Van Kampen Real Estate Advisor 3,543 7 278 - ING Partners, Inc.: ING Alger Aggressive Growth 323 1 - - ING Alger Growth 66 - 43 - ING American Century Small Cap Value 111 - 2 - ING Baron Small Cap Growth 493 1 - - ING JPMorgan Fleming International 3,666 1,560 8 - ING JPMorgan Mid Cap Value 2,478 66 357 60 ING MFS(R)Capital Opportunities (Initial Class) 720 320 1,163 193 ING MFS(R)Capital Opportunities (Service Class) 192 1 85 - ING MFS(R)Global Growth 577 132 76 1 ING MFS Research Equity 80 - - - ING OpCap Balanced Value 172 1 131 -
127 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 ----------------------- ----------------------- Purchases Sales Purchases Sales --------- --------- --------- --------- (Dollars In Thousands) ING Partners, Inc. (continued): ING PIMCO Total Return $ 1,034 $ 207 $ 627 $ 29 ING Salomon Brothers Aggressive Growth 3,195 665 - - ING Salomon Brothers Fundamental Value 407 1 9 - ING Salomon Brothers Investors Value 285 - 4 - ING T. Rowe Price Growth Equity 1,471 16 162 - ING UBS Tactical Asset Allocation 43 2 2 - ING Van Kampen Comstock 21,713 1,244 1,785 55 ING Variable Insurance Trust: ING VIT Worldwide Growth 15,209 6,047 24,169 9,196 ING Variable Portfolios, Inc.: ING VP Balanced 679 3 - - ING VP Bond 72,380 51,680 63,496 13,839 ING VP Growth 238 31 51 1 ING VP Index Plus LargeCap 37,879 7,870 7,078 2,691 ING VP Index Plus MidCap 9,576 5,078 9,240 3,466 ING VP Index Plus SmallCap 6,926 3,693 8,715 4,883 ING VP International Equity 56 6 - - ING VP Small Company 434 19 251 37 ING VP Value Opportunity 590 63 1,251 169 ING Variable Products Trust: ING VP Convertible 2,207 221 1,096 187 ING VP Growth and Income 1,423 68 - - ING VP Growth Opportunities 8,930 1,184 10,173 2,384 ING VP International Value 295 14 53 1 ING VP Large Company Value 951 366 1,376 372 ING VP LargeCap Growth 1,194 563 1,869 1,053 ING VP MagnaCap 6,105 1,032 13,443 3,846 ING VP MidCap Opportunities 222 1 16 - ING VP SmallCap Opportunities 27,616 1,293 31,124 1,969 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 48,336 28,866 63,673 40,543 INVESCO VIF - Health Sciences 66,192 35,307 83,757 58,204 INVESCO VIF - Leisure 16,173 1,218 7,516 1,277 INVESCO VIF - Utilities 14,298 2,610 8,167 944 Janus Aspen Series: Janus Aspen Series Balanced 3,688 21 565 37 Janus Aspen Series Flexible Income 1,642 204 276 3 Janus Aspen Series Growth 662 71 225 1 Janus Aspen Series Worldwide Growth 19,533 17,244 104,529 101,442
128 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 ----------------------- ----------------------- Purchases Sales Purchases Sales --------- --------- --------- --------- (Dollars In Thousands) Liberty Variable Insurance Trust: Colonial Small Cap Value $ 11,186 $ 510 $ - $ - Liberty Variable Series: Liberty Asset Allocation 575 78 - - Liberty Equity 97 69 - - Liberty Federal Securities 124 39 - - Liberty Small Company Growth 63 16 - - Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 1,415 13 274 24 Oppenheimer Strategic Bond 290 86 53 36 PIMCO Variable Insurance Trust: PIMCO High Yield 330,420 136,643 217,839 126,620 PIMCO StocksPLUS Growth and Income 25,819 56,160 92,182 97,761 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 657 3 200 1 Pioneer Fund VCT 30,095 6,194 27,454 6,810 Pioneer Mid-Cap Value VCT 57,719 1,478 69,537 13,624 Pioneer Small Company VCT 1,471 570 3,491 398 ProFunds VP: ProFund VP Bull 155,875 145,333 114,057 95,299 ProFund VP Europe 30 97,186 100,429 318,634 307,100 ProFund VP Rising Rates Opportunity 13,727 179 - - ProFund VP Small Cap 195,851 154,096 321,292 294,784 Prudential Series Fund, Inc.: Prudential Jennison 16,284 8,796 223,318 215,947 SP Jennison International Growth 51,686 29,449 44,084 36,323 Putnam Variable Trust: Putnam VT Discovery Growth 961 219 1,601 94 Putnam VT Growth and Income 1,183 246 1,662 172 Putnam VT International Growth and Income 1,106 1,132 3,063 261 Travelers Series Fund Inc.: Smith Barney High Income 3 78 82 38 Smith Barney International All Cap Growth 7 32 4 26 Smith Barney Large Cap Value 25 68 19 54 Smith Barney Money Market 30 89 2 80 UBS Series Trust: UBS Tactical Allocation 1,721 246 1,316 240
129 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 6. Changes in Units The changes in units outstanding for the nine months ended September 30, 2003 and the year ended December 31, 2002 are shown in the following table. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA Contract. Updates to DVA Contracts resulted in both a redemption (surrender of the old Contract) and an issue (acquisition of the new Contract).
Nine months ended Year ended September 30, 2003 December 31, 2002 --------------------------------------- ------------------------------------------ Net Net Units Units Increase Units Units Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ------------ ------------ ----------- ------------ ------------- ------------- AIM Variable Insurance Funds: AIM V.I. Capital Appreciation 6,285 3,184 3,101 3,701 - 3,701 AIM V.I. Core Equity 11,781 3 11,778 4,961 - 4,961 AIM V.I. Dent Demographic Trends 4,480,794 1,498,586 2,982,208 2,175,335 948,298 1,227,037 AIM V.I. Growth 178,082 83,723 94,359 129,633 51,493 78,140 AIM V.I. Premier Equity 8,192 3,834 4,358 11,714 - 11,714 AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income 445,783 162,550 283,233 585,752 114,322 471,430 AllianceBernstein Premier Growth 403,971 282,829 121,142 467,717 260,296 207,421 AllianceBernstein Value 393,284 168,869 224,415 298,200 42,183 256,017 Fidelity Variable Insurance Products Fund: Fidelity(R) VIP Contrafund(R) 1,067,328 231,751 835,577 540,071 148,494 391,577 Fidelity(R) VIP Equity-Income 11,859,284 4,946,893 6,912,391 8,251,501 5,400,874 2,850,627 Fidelity(R) VIP Growth 27,171,779 14,349,940 12,821,839 8,076,321 4,495,778 3,580,543 Fidelity(R) VIP Overseas 12,374 10,343 2,031 1,171 - 1,171 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 18,140 141 17,999 1,965 25 1,940 Greenwich Street Series Fund: Greenwich Appreciation 2,047 5,363 (3,316) 4,624 4,584 40 The Galaxy VIP Fund: Galaxy VIP Asset Allocation 21 77,732 (77,711) 1,789 52,447 (50,658) Galaxy VIP Growth and Income 9 16,214 (16,205) 561 3,752 (3,191) Galaxy VIP High Quality Bond - 10,297 (10,297) 2,096 4,759 (2,663) Galaxy VIP Small Company Growth 1,243 7,800 (6,557) 1,172 1,052 120 ING GET Fund: ING GET Fund - Series N 2,799 349,479 (346,680) 43,042 189,804 (146,762) ING GET Fund - Series P 339,039 2,832,048 (2,493,009) 772,618 1,720,085 (947,467) ING GET Fund - Series Q 526,654 3,886,909 (3,360,255) 18,122,750 1,458,265 16,664,485 ING GET Fund - Series R 503,415 3,793,434 (3,290,019) 18,803,947 1,893,348 16,910,599 ING GET Fund - Series S 609,463 5,613,162 (5,003,699) 22,953,264 1,085,776 21,867,488 ING GET Fund - Series T 1,030,418 8,099,407 (7,068,989) 23,875,059 232,370 23,642,689 ING GET Fund - Series U 27,282,617 10,032,236 17,250,381 104,774 - 104,774 ING GET Fund - Series V 39,278,413 1,946,876 37,331,537 - - ING GET U.S. Core Portfolio - Series 1 24,156,457 381,372 23,775,085 - - ING GET U.S. Core Portfolio - Series 2 (Guaranteed) 222,709 3,478 219,231 - -
130 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 --------------------------------------- ------------------------------------------ Net Net Units Units Increase Units Units Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ------------ ------------ ----------- ------------ ------------- ------------- ING Investors Trust: ING AIM Mid-Cap Growth 16,605,320 15,972,934 632,386 39,062,471 42,593,565 (3,531,094) ING AIM Mid-Cap Growth Advisor 147,828 9,727 138,101 8,044 - 8,044 ING Alliance Mid-Cap Growth 23,786,698 21,507,080 2,279,618 2,673,641 14,350,360 (1,676,719) ING Alliance Mid-Cap Growth Advisor 164,626 13,059 151,567 3,459 - 3,459 ING American Funds Growth 1,650,487 80,020 1,570,467 - - - ING American Funds Growth-Income 1,310,570 35,798 1,274,772 - - - ING American Funds International 577,554 148,306 429,248 - - - ING Capital Guardian Large Cap Value 23,010,603 11,562,415 11,448,188 22,131,127 10,157,539 11,973,588 ING Capital Guardian Large Cap Value Advisor 509,093 155,331 353,762 32,499 - 32,499 ING Capital Guardian Managed Global 7,285,832 5,368,149 1,917,683 29,219,248 27,211,114 2,008,134 ING Capital Guardian Managed Global Advisor 85,621 9,259 76,362 4,848 - 4,848 ING Capital Guardian Small Cap 18,489,811 16,391,539 2,098,272 31,167,383 33,693,558 (2,526,175) ING Capital Guardian Small Cap Advisor 167,838 6,826 161,012 14,125 - 14,125 ING Developing World 9,582,349 8,904,817 677,532 31,632,928 7,268,250 24,364,678 ING Developing World Advisor 81,137 2,612 78,525 96,894 124 96,770 ING Eagle Asset Value Equity 4,341,601 4,674,309 (332,708) 8,835,743 8,086,769 748,974 ING Eagle Asset Value Equity Advisor 75,053 14,064 60,989 12,051 923 11,128 ING FMR Diversified Mid-Cap 7,077,189 3,471,402 3,605,787 38,357,135 38,795,832 (438,697) ING FMR Diversified Mid-Cap Advisor 243,143 25,008 218,135 8,162 3 8,159 ING Goldman Sachs Internet Tollkeeper 6,209,456 2,478,113 3,731,343 3,969,315 1,909,841 2,059,474 ING Goldman Sachs Internet Tollkeeper Advisor 114,304 6,91 107,388 5,119 - 5,119 ING Hard Assets 6,305,469 5,525,444 780,025 8,767,576 6,176,025 2,591,551 ING Hard Assets Advisor 130,437 7,480 122,957 9,841 - 9,841 ING Internationa 41,748,746 41,016,359 732,387 88,470,226 88,235,675 234,551 ING International Advisor 255,821 9,522 246,299 25,956 3 25,953 ING Janus Growth and Income 12,743,212 4,946,182 7,797,030 11,879,305 3,750,330 8,128,975 ING Janus Growth and Income Advisor 554,089 99,965 454,124 60,374 - 60,374 ING Janus Special Equity 3,143,482 1,368,318 1,775,164 2,057,335 1,380,067 677,268 ING Janus Special Equity Advisor 33,409 3,548 29,861 5,773 - 5,773 ING Jennison Equity Opportunities 5,824,429 7,522,114 (1,697,685) 10,707,624 7,860,701 2,846,923 ING Jennison Equity Opportunities Advisor 99,170 3,086 96,084 68,680 3,462 65,218 ING JPMorgan Fleming Small Cap Equity 4,253,313 979,140 3,274,173 1,450,310 238,479 1,211,831 ING JPMorgan Fleming Small Cap Equity Advisor 581,023 35,458 545,565 53,904 3 53,901 ING Julius Baer Foreign 3,802,644 2,355,823 1,446,821 2,304,452 1,696,647 607,805 ING Julius Baer Foreign Advisor 138,342 12,916 125,426 16,921 29 16,892 ING Limited Maturity Bond 17,774,730 17,474,829 299,901 19,089,421 10,093,155 8,996,266 ING Liquid Assets 211,271,053 217,182,906 (5,911,853) 432,718,159 435,462,419 (2,744,260) ING Liquid Assets Advisor 1,390,395 723,917 666,478 376,779 196,446 180,333 ING Marisco Growth 20,247,265 18,673,218 1,574,047 88,418,811 101,385,523 (12,966,712) ING Marisco Growth Advisor 494,656 33,905 460,751 9,416 - 9,416 ING Mercury Focus Value 1,535,444 429,097 1,106,347 927,802 217,748 710,054 ING Mercury Focus Value Advisor 41,946 3,082 38,864 4,735 - 4,735 ING Mercury Fundamental Growth 969,276 243,736 725,540 412,537 67,974 344,563
131 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 --------------------------------------- ------------------------------------------ Net Net Units Units Increase Units Units Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ------------ ------------ ----------- ------------ ------------- ------------- ING Investors Trust (continued): ING Mercury Fundamental Growth Advisor 51,327 4,280 47,047 11,445 7 11,438 ING MFS Mid-Cap Growth 21,323,749 19,911,353 1,412,396 37,536,301 39,509,334 (1,973,033) ING MFS Mid-Cap Growth Advisor 479,402 49,645 429,757 56,277 2 56,275 ING MFS Research 11,459,043 12,210,625 (751,582) 14,355,356 17,693,135 (3,337,779) ING MFS Research Advisor 121,672 15,708 105,964 33,623 - 33,623 ING MFS Total Return 17,088,255 11,280,277 5,807,978 17,689,754 11,652,054 6,037,700 ING MFS Total Return Advisor 1,039,750 58,115 981,635 100,210 5,006 95,204 ING PIMCO Core Bond 33,219,184 27,216,378 6,002,806 58,286,404 59,112,337 (825,933) ING PIMCO Core Bond Advisor 1,603,273 427,844 1,175,429 32,995 27 32,968 ING Salomon Brothers All Cap 16,573,184 11,400,698 5,172,486 14,295,321 10,877,332 3,417,989 ING Salomon Brothers All Cap Advisor 312,023 13,808 298,215 18,492 - 18,492 ING Salomon Brothers Investors 4,366,654 3,205,493 1,161,161 5,380,431 2,510,400 2,870,031 ING Salomon Brothers Investors Advisor 43,801 2,602 41,199 30,514 17 30,497 ING T. Rowe Price Capital Appreciation 13,543,756 9,307,321 4,236,435 16,893,498 5,743,297 11,150,201 ING T. Rowe Price Capital Appreciation Advisor 1,160,833 82,173 1,078,660 92,813 3,431 89,382 ING T. Rowe Price Equity Income 9,863,485 6,315,606 3,547,879 715,898 157,257 558,641 ING T. Rowe Price Equity Income Advisor 706,726 101,291 605,435 47,562 - 47,562 ING UBS U.S. Balanced 2,065,825 1,374,217 691,608 2,524,223 1,691,382 832,841 ING UBS U.S. Balanced Advisor 30,603 518 30,085 - - - ING Van Kampen Equity Growth 2,356,338 554,180 1,802,158 8,678,192 2,364,577 6,313,615 ING Van Kampen Equity Growth Advisor 371,341 15,747 355,594 23,763 590 23,173 ING Van Kampen Global Franchise 4,340,912 1,752,856 2,588,056 2,512,607 851,207 1,661,400 ING Van Kampen Global Franchise Advisor 961,501 94,581 866,920 78,879 4,514 74,365 ING Van Kampen Growth and Income 7,394,779 7,406,917 (12,138) 5,686,825 8 ,964,808 (3,277,983) ING Van Kampen Growth and Income Advisor 1,583,558 259,259 1,324,299 105,373 4,220 101,153 ING Van Kampen Real Estate 5,501,168 4,146,646 1,354,522 6,070,387 3,723,970 2,346,417 ING Van Kampen Real Estate Advisor 362,541 29,418 333,123 28,719 3 28,716 ING Partners, Inc.: ING Alger Aggressive Growth 38,736 - 38,736 - - - ING Alger Growth 11,033 2,782 8,251 5,956 - 5,956 ING American Century Small Cap Value 12,875 268 12,607 215 - 215 ING Baron Small Cap Growth 51,081 1,238 49,843 - - - ING JPMorgan Fleming International 413,930 207,386 206,544 1,232 - 1,232 ING JPMorgan Mid Cap Value 257,021 21,326 235,695 950 31 919 ING MFS(R)Capital Opportunities (Initial Class) 119,495 61,831 57,664 39,538 6,696 32,842 ING MFS(R)Capital Opportunities (Service Class) 25,291 1 25,290 169,917 39,170 130,747 ING MFS(R) Global Growth 67,476 17,064 50,412 10,569 - 10,569 ING MFS Research Equity 10,051 37 10,014 - - - ING OpCap Balanced Value 18,498 2 18,496 9,184 144 9,040
132 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 --------------------------------------- ------------------------------------------ Net Net Units Units Increase Units Units Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ------------ ------------ ----------- ------------ ------------- ------------- ING Partners, Inc. (continued): ING PIMCO Total Return 112,374 36,885 75,489 16,208 - 16,208 ING Salomon Brothers Aggressive Growth 364,395 112,520 251,875 - - - ING Salomon Brothers Fundamental Value 50,700 5,531 45,169 57,930 2,748 55,182 ING Salomon Brothers Investors Value 34,292 1,408 32,884 487 - 487 ING T. Rowe Price Growth Equity 188,933 15,559 173,374 19,085 - 19,085 ING UBS Tactical Asset Allocation 5,414 254 5,160 297 - 297 ING Van Kampen Comstock 2,904,637 593,257 2,311,380 218,552 8,852 209,700 ING Variable Insurance Trust: ING VIT Worldwide Growth 4,167,455 2,431,336 1,736,119 4,884,109 2,447,811 2,436,298 ING Variable Portfolios, Inc.: ING VP Balanced 65,235 305 64,930 - - - ING VP Bond 11,942,637 10,052,957 1,889,680 7,230,384 2,562,132 4,668,252 ING VP Growth 37,851 11,575 26,276 6,679 110 6,569 ING VP Index Plus LargeCap 5,656,893 1,905,775 3,751,118 989,798 442,688 547,110 ING VP Index Plus MidCap 1,301,242 825,224 476,018 1,075,901 467,221 608,680 ING VP Index Plus SmallCap 880,415 534,682 345,733 1,032,462 634,554 397,908 ING VP International Equity 8,974 2,092 6,882 - - - ING VP Small Company 56,080 7,136 48,944 27,484 6,772 20,712 ING VP Value Opportunity 101,133 25,631 75,502 162,657 30,086 132,571 ING Variable Products Trust: ING VP Convertible 224,406 36,239 188,167 111,643 22,720 88,923 ING VP Growth and Income 141,563 15,347 126,216 - - - ING VP Growth Opportunities 2,177,757 822,369 1,355,388 1,984,390 760,395 1,223,995 ING VP International Value 36,671 4,460 32,211 5,020 82 4,938 ING VP Large Company Value 135,837 66,958 68,879 151,517 46,425 105,092 ING VP LargeCap Growth 190,860 95,542 95,318 281,373 173,739 107,634 ING VP MagnaCap 1,197,768 511,020 686,748 1,873,780 706,779 1,167,001 ING VP MidCap Opportunities 26,710 1 26,709 1,700 - 1,700 ING VP SmallCap Opportunities 7,991,532 2,720,960 5,270,572 6,167,933 1,352,225 4,815,708 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 8,119,580 5,835,338 2,284,242 8,952,534 6,278,761 2,673,773 INVESCO VIF - Health Sciences 12,527,705 8,863,401 3,664,304 1,553,067 8,591,990 2,961,077 INVESCO VIF - Leisure 2,155,253 507,216 1,648,037 1,002,159 278,062 724,097 INVESCO VIF - Utilities 3,084,826 1,308,328 1,776,498 1,413,473 305,358 1,108,115 Janus Aspen Series: Janus Aspen Series Balanced 404,760 23,578 381,182 57,501 3,830 53,671 Janus Aspen Series Flexible Income 146,159 18,942 127,217 25,934 170 25,764 Janus Aspen Series Growth 86,059 14,952 71,107 26,711 20 26,691 Janus Aspen Series Worldwide Growth 3,016,609 2,674,504 342,105 13,323,220 12,946,666 376,554
133 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Nine months ended Year ended September 30, 2003 December 31, 2002 --------------------------------------- ------------------------------------------ Net Net Units Units Increase Units Units Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ------------ ------------ ----------- ------------ ------------- ------------- Liberty Variable Insurance Trust: Colonial Small Cap Value 1,123,294 219,498 903,796 - - - Liberty Variable Series: Liberty Asset Allocation 58,336 7,914 50,422 - - - Liberty Equity 17,879 11,051 6,828 2,539 15,793 (13,254) Liberty Federal Securities 12,472 3,823 8,649 - - - Liberty Small Company Growth 6,299 1,259 5,040 - - - Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 169,683 8,058 161,625 29,681 2,882 26,799 Oppenheimer Strategic Bond 25,509 7,220 18,289 5,028 3,500 1,528 PIMCO Variable Insurance Trust: PIMCO High Yield 54,787,311 38,227,882 16,559,429 27,197,895 19,409,516 7,788,379 PIMCO StocksPLUS Growth and Income 7,941,473 11,305,593 (3,364,120) 13,357,877 14,285,763 (927,886) Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 85,819 12,931 72,888 21,635 61 21,574 Pioneer Fund VCT 5,004,209 1,897,149 3,107,060 3,769,608 1,315,200 2,454,408 Pioneer Mid-Cap Value VCT 7,909,855 2,407,785 5,502,070 7,875,737 2,670,048 5,205,689 Pioneer Small Company VCT 238,833 127,674 111,159 431,876 92,472 339,404 ProFunds VP: ProFund VP Bull 30,823,336 29,119,522 1,703,814 18,816,487 16,427,269 2,389,218 ProFund VP Europe 30 19,807,740 20,386,733 (578,993) 50,746,741 48,922,218 1,824,523 ProFund VP Rising Rates Opportunity 1,449,534 43,894 1,405,640 - - - ProFund VP Small Cap 34,001,609 29,552,982 4,448,627 44,254,935 41,001,972 3,252,963 Prudential Series Fund, Inc.: Prudential Jennison 5,686,844 3,955,174 1,731,670 45,072,785 43,503,839 1,568,946 SP Jennison International Growth 14,478,997 9,582,201 4,896,796 10,464,472 8,810,383 1,654,089 Putnam Variable Trust: Putnam VT Discovery Growth 166,811 54,201 112,610 227,745 22,636 205,109 Putnam VT Growth and Income 184,654 73,770 110,884 199,811 27,845 171,966 Putnam VT International Growth and Income 158,418 164,113 (5,695) 355,859 48,525 307,334 Travelers Series Fund Inc.: Smith Barney High Income 421 6,277 (5,856) 35 3,035 (3,000) Smith Barney International All Cap Growth 996 3,566 (2,570) 80 2,233 (2,153) Smith Barney Large Cap Value 1,738 4,514 (2,776) 114 3,173 (3,059) Smith Barney Money Market 17,181 21,728 (4,547) 16 6,191 (6,175) UBS Series Trust: UBS Tactical Allocation 236,929 49,778 187,151 165,483 32,046 133,437
134 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 7. Unit Summary Accumulation unit value information for units outstanding, by Contract type, as of September 30, 2003 follows:
Division/Contract Units Unit Value Extended Value -------------------------------------------- --------------- --------------- ---------------- AIM V.I. Capital Appreciation Contracts in accumulation period: Band 35 6,102.149 $ 8.51 $ 51,929 Band 37 700.056 8.46 5,922 --------------- ---------------- 6,802.204 $ 57,851 =============== ================ AIM V.I. Core Equity Contracts in accumulation period: Band 35 15,740.942 $ 9.21 $ 144,974 Band 38 998.303 10.29 10,273 --------------- ---------------- 16,739.245 $ 155,247 =============== ================ AIM V.I. Dent Demographic Trends Contracts in accumulation period: Band 2 12,821.853 $ 9.05 $ 116,038 Band 4 9,129.347 9.00 82,164 Band 5 61,692.609 8.99 554,617 Band 6 637,232.767 8.98 5,722,350 Band 7 757,636.474 8.97 6,795,999 Band 8 143,773.718 8.95 1,286,775 Band 9 69,729.198 8.94 623,379 Band 10 263,962.936 8.93 2,357,189 Band 11 364,987.246 8.92 3,255,686 Band 12 243,906.023 8.91 2,173,203 Band 13 466,188.255 8.91 4,153,737 Band 14 698,421.013 8.89 6,208,963 Band 15 12,685.057 8.88 112,643 Band 16 31,047.946 8.86 275,085 Band 17 111,616.786 8.85 987,809 Band 18 13,360.880 8.84 118,110 Band 19 122,074.208 8.83 1,077,915 Band 20 353,281.615 8.90 3,144,206 Band 21 50,355.771 8.87 446,656 Band 25 2,766.322 9.07 25,091
135 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- AIM V.I. Dent Demographic Trends (continued) Band 26 10,984.436 $ 9.06 $ 99,519 Band 27 1,735.600 9.00 15,620 Band 28 1,088.148 8.98 9,772 Band 29 37,031.494 8.97 332,173 Band 30 9,835.826 8.91 87,637 Band 31 13,683.653 8.89 121,648 Band 32 19,831.356 8.84 175,309 Band 33 8,089.835 8.80 71,191 Band 34 3,386.922 8.77 29,703 --------------- ---------------- 4,532,337.294 $ 40,460,187 =============== ================ AIM V.I. Growth Contracts in accumulation period: Band 9 2,076.148 $ 8.16 $ 16,941 Band 13 7,597.165 8.13 61,765 Band 15 1,769.330 8.10 14,332 Band 26 37,521.850 8.26 309,930 Band 27 11,594.494 8.22 95,307 Band 28 5,829.104 8.19 47,740 Band 29 72,509.718 8.18 593,129 Band 30 26,065.141 8.13 211,910 Band 31 32,855.173 8.11 266,455 Band 32 11,986.114 8.06 96,608 Band 33 4,393.549 8.03 35,280 Band 34 1,198.332 8.01 9,599 --------------- ---------------- 215,396.119 $ 1,758,996 =============== ================ AIM V.I. Premier Equity Contracts in accumulation period: Band 35 7,417.406 $ 7.69 $ 57,040 Band 36 5,600.805 7.66 42,902 Band 39 3,053.811 10.28 31,393 --------------- ---------------- 16,072.022 $ 131,335 =============== ================ AllianceBernstein Growth and Income Contracts in accumulation period: Band 9 23,424.573 $ 8.58 $ 200,983 Band 13 15,525.412 8.54 132,587 Band 15 25,534.878 8.51 217,302 Band 26 168,873.724 8.70 1,469,201
136 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- AllianceBernstein Growth and Income (continued) Band 27 112,754.237 $ 8.65 $ 975,324 Band 28 49,639.153 8.62 427,889 Band 29 236,796.875 8.61 2,038,821 Band 30 155,044.888 8.55 1,325,634 Band 31 84,571.900 8.52 720,553 Band 32 24,651.815 8.47 208,801 Band 33 13,211.558 8.43 111,373 Band 34 17,018.120 8.40 142,952 --------------- ---------------- 927,047.133 $ 7,971,420 =============== ================ AllianceBernstein Premier Growth Contracts in accumulation period: Band 9 12,132.740 $ 7.31 $ 88,690 Band 13 10,224.481 7.28 74,434 Band 15 244.623 7.25 1,774 Band 26 61,734.876 7.42 458,073 Band 27 98,603.963 7.37 726,711 Band 28 10,929.929 7.34 80,226 Band 29 60,929.192 7.34 447,220 Band 30 93,887.437 7.29 684,439 Band 31 53,613.299 7.26 389,233 Band 32 15,640.280 7.21 112,766 Band 33 20,573.304 7.18 147,716 Band 34 4,144.160 7.16 29,672 --------------- ---------------- 442,658.160 $ 3,240,954 =============== ================ AllianceBernstein Value Contracts in accumulation period: Band 9 15,916.139 $ 9.62 $ 153,113 Band 13 7,796.245 9.58 74,688 Band 15 22,378.410 9.54 213,490 Band 26 67,410.475 9.76 657,926 Band 27 57,629.559 9.69 558,430 Band 28 11,988.835 9.66 115,812 Band 29 141,557.396 9.65 1,366,029 Band 30 129,051.279 9.59 1,237,602 Band 31 48,848.072 9.55 466,499 Band 32 18,199.931 9.49 172,717 Band 33 8,958.694 9.45 84,660 Band 34 10,169.346 9.42 95,795 --------------- ---------------- 539,904.381 $ 5,196,761 =============== ================
137 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Contrafund(R) Contracts in accumulation period: Band 9 27,919.756 $ 9.81 $ 273,873 Band 13 31,678.560 9.76 309,183 Band 15 59,016.091 9.73 574,227 Band 26 232,237.627 9.95 2,310,764 Band 27 133,082.773 9.88 1,314,858 Band 28 19,752.555 9.85 194,563 Band 29 261,900.923 9.84 2,577,105 Band 30 161,297.852 9.77 1,575,880 Band 31 52,489.684 9.74 511,250 Band 32 32,168.148 9.68 311,388 Band 33 38,377.536 9.63 369,576 Band 34 17,640.133 9.60 169,345 Band 35 219,389.799 9.99 2,191,704 Band 36 39,634.226 9.95 394,361 Band 37 8,347.475 9.92 82,807 Band 38 9,287.663 10.45 97,056 Band 39 4,131.980 10.45 43,179 Band 40 712.954 10.45 7,450 --------------- ---------------- 1,349,065.735 $ 13,308,589 =============== ================ Fidelity(R) VIP Equity-Income Contracts in accumulation period: Band 2 15,332.779 $ 8.89 $ 136,308 Band 3 1,016.004 8.82 8,961 Band 4 22,842.695 8.84 201,929 Band 5 105,759.306 8.83 933,855 Band 6 1,402,433.397 8.81 12,355,438 Band 7 1,431,354.269 8.80 12,595,918 Band 8 329,246.637 8.78 2,890,785 Band 9 124,006.863 8.77 1,087,540 Band 10 685,135.121 8.76 6,001,784 Band 11 686,393.984 8.75 6,005,947 Band 12 542,313.328 8.74 4,739,818 Band 13 818,202.511 8.73 7,142,908 Band 14 1,123,584.011 8.71 9,786,417 Band 15 30,572.327 8.70 265,979 Band 16 37,296.160 8.68 323,731 Band 17 260,663.579 8.67 2,259,953
138 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Contrafund(R) (continued) Band 18 92,074.263 $ 8.66 $ 797,363 Band 19 53,475.143 8.64 462,025 Band 20 753,417.346 8.72 6,569,799 Band 21 114,109.834 8.69 991,614 Band 25 11,881.644 8.91 105,865 Band 26 234,001.903 8.90 2,082,617 Band 27 111,622.496 8.84 986,743 Band 28 26,651.474 8.81 234,799 Band 29 265,389.402 8.80 2,335,427 Band 30 225,491.763 8.74 1,970,798 Band 31 45,040.486 8.71 392,303 Band 32 28,153.267 8.66 243,807 Band 33 26,435.916 8.62 227,878 Band 34 25,472.731 8.59 218,811 Band 35 323,421.956 8.94 2,891,392 Band 36 6,940.411 8.90 61,770 Band 37 3,417.557 8.87 30,314 Band 38 3 123.435 10.28 32,109 --------------- ---------------- 9,966,273.998 $ 13,308,589 =============== ================ Fidelity(R) VIP Growth Contracts in accumulation period: Band 1 562.275 $ 7.62 $ 4,285 Band 2 12,746.083 7.59 96,743 Band 4 29,174.656 7.55 220,269 Band 5 83,208.315 7.54 627,391 Band 6 2,376,552.941 7.52 17,871,678 Band 7 2,463,463.537 7.51 18,500,611 Band 8 524,690.519 7.50 3,935,179 Band 9 137,053.275 7.49 1,026,529 Band 10 1,019,054.515 7.48 7,622,528 Band 11 1,307,855.266 7.47 9,769,679 Band 12 720,383.865 7.46 5,374,064 Band 13 1,775,877.276 7.46 13,248,044 Band 14 2,291,682.792 7.44 17,050,120 Band 15 45,600.980 7.43 338,815 Band 16 48,815.497 7.41 361,723
139 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Growth (continued) Band 17 569,433.983 $ 7.40 $ 4,213,811 Band 18 203,382.099 7.40 1,505,028 Band 19 132,715.176 7.38 979,438 Band 20 1,392,639.517 7.45 10,375,164 Band 21 230,763.237 7.42 1,712,263 Band 25 22,974.111 7.61 174,833 Band 26 224,180.662 7.60 1,703,773 Band 27 55,521.445 7.55 419,187 Band 28 25,572.253 7.52 192,303 Band 29 254,017.340 7.51 1,907,670 Band 30 102,793.965 7.46 766,843 Band 31 80,331.200 7.44 597,664 Band 32 45,551.383 7.39 336,625 Band 33 33,391.232 7.36 245,759 Band 34 11,607.488 7.33 85,083 Band 35 235,765.427 7.63 1,798,890 Band 36 4,539.134 7.60 34,497 Band 37 2,908.747 7.57 22,019 Band 38 11,543.862 10.51 121,326 Band 39 801.576 10.51 8,425 --------------- ---------------- 16,477,155.629 $ 123,248,259 =============== ================ Fidelity(R) VIP Overseas Contracts in accumulation period: Band 35 2,036.998 $ 9.65 $ 19,657 Band 38 1,164.656 10.87 12,660 --------------- ---------------- 3,201.654 $ 32,317 Franklin Small Cap Value Securities Contracts in accumulation period: Band 35 10,983.325 $ 10.04 $ 110,273 Band 36 8,955.071 10.00 89,551 --------------- ---------------- 19,938.396 $ 199,824 =============== ================ Greenwich Appreciation Contracts in accumulation period: Band 22 405.442 $ 15.64 $ 6,341 Band 23 38,726.652 15.46 598,714 --------------- ---------------- 3,201.654 $ 605,714 =============== ================
140 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series N Band 26 346,817.187 $ 10.32 $ 3,579,153 Band 27 211,610.182 10.25 2,169,004 Band 28 115,171.648 10.21 1,175,903 Band 29 843,315.441 10.20 8,601,817 Band 30 583,646.407 10.13 5,912,338 Band 31 415,046.749 10.10 4,191,972 --------------- ---------------- 2,515,607.614 $ 25,630,187 =============== ================ ING GET Fund - Series P Contracts in accumulation period: Band 9 67,022.085 $ 10.07 $ 674,912 Band 13 10,498.431 10.03 105,299 Band 15 3,680.066 10.00 36,801 Band 26 1,444,443.916 10.20 14,733,328 Band 27 895,041.605 10.14 9,075,722 Band 28 364,222.913 10.11 3,682,294 Band 29 3,976,456.795 10.10 40,162,214 Band 30 3,097,338.583 10.04 31,097,279 Band 31 1,806,809.528 10.00 18,068,095 Band 32 108,331.070 9.95 1,077,894 Band 33 35,615.268 9.91 352,947 Band 34 25,975.879 9.88 256,642 --------------- ---------------- 11,835,436.139 $ 119,323,427 =============== ================ ING GET Fund - Series Q Contracts in accumulation period: Band 9 530,422.691 $ 10.26 $ 5,442,137 Band 13 278,911.586 10.22 2,850,476 Band 15 77,265.652 10.19 787,337 Band 26 1,672,501.554 10.38 17,360,566 Band 27 1,237,108.807 10.32 12,766,963 Band 28 370,590.740 10.29 3,813,379 Band 29 3,639,529.894 10.28 37,414,367 Band 30 2,949,071.734 10.23 30,169,004 Band 31 1,481,283.660 10.20 15,109,093
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series Q (continued) Band 32 845,265,421 $ 10.14 $ 8,570,991 Band 33 176,553.467 10.11 1,784,956 Band 34 233,700.471 10.08 2,355,701 Band 35 2,495.394 10.42 26,002 --------------- ---------------- 13,494,701.071 $ 8,570,991 =============== ================ ING GET Fund - Series R Cntracts in accumulation period: Band 9 932,004.415 $ 10.33 $ 9,627,606 Band 13 186,494.771 10.30 1,920,896 Band 15 91,729.410 10.28 924,978 Band 26 1,716,717.064 10.44 17,922,526 Band 27 857,508.447 10.39 8,909,513 Band 28 465,630.500 10.37 4,828,588 Band 29 3,354,330.139 10.36 34,750,860 Band 30 2,749,571.924 10.31 28,348,087 Band 31 1,480,789.216 10.28 15,222,513 Band 32 879,300.382 10.24 9,004,036 Band 33 404,475.846 10.21 4,129.698 Band 34 478,213.613 10.18 4,868,215 Band 35 19,649.602 10.47 205,731 Band 36 4,164.678 10.44 43,479 --------------- ---------------- 13,620,580.007 $ 140,724,726 =============== ================ ING GET Fund - Series S Cntracts in accumulation period: Band 9 924,696.578 $ 10.28 $ 9,505,881 Band 13 518,239.687 10.25 5,311,957 Band 15 232,492.941 10.23 2,378,403 Band 26 2,164,754.001 10.36 22,426,851 Band 27 824,717.764 10.32 8,511,087 Band 28 419,187.800 10.30 4,317,634 Band 29 4,475,735.876 10.29 46,055,322 Band 30 2,849,093.019 10.25 29,203,203 Band 31 1,717,590.990 10.23 17,570,956 Band 32 1,447,558.482 10.20 14,765,097
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series S (continued) Band 33 942,172.449 $ 10.17 $ 9,581.894 Band 34 312,862.610 10.15 3,175,555 Band 35 29,897.431 10.39 310,634 Band 36 4,790.846 10.36 49,633 --------------- ---------------- 13,620,580.007 $ 173,164,107 =============== ================ ING GET Fund - Series T Cntracts in accumulation period: Band 6 40,092.161 $ 10.30 $ 412,949 Band 9 1,212,216.368 10.28 12,461,584 Band 10 19,504.483 10.27 200,311 Band 12 128,545.369 10.26 1,318,875 Band 13 437,139.795 10.26 4,485,054 Band 15 292,926.997 10.24 2,999,572 Band 20 77,895.993 10.25 798,434 Band 26 1,588,532.303 10.35 16,441,309 Band 27 797,806.972 10.32 8,233,368 Band 28 301,974.858 10.30 3,110,341 Band 29 4,193,109.843 10.29 43,147,100 Band 30 2,407,533.454 10.26 24,701,293 Band 31 1,837,992.557 10.24 18,821,044 Band 32 1,637,138.643 10.21 16,715,186 Band 33 964,516.892 10.19 9,828,427 Band 34 537,286.742 10.18 5,469,579 Band 35 98,092.390 10.37 1,017,218 Band 36 1,394.438 10.35 14,432 --------------- ---------------- 13,573,700.258 $ 170,176,076 =============== ================ ING GET Fund - Series U Contracts in accumulation period: Band 6 271,431.296 $ 10.31 $ 2,798,457 Band 9 2,182,646.329 10.30 22,481,257 Band 10 6,375.860 10.29 65,608 Band 12 48,054.519 10.28 494,000 Band 13 489,895.583 10.28 5,036,127 Band 15 411,413.697 10.27 4,225,219 Band 20 205,609.379 10.28 2,113,664
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series U (continued) Band 26 1,683,861.607 $ 10.35 $ 17,427,968 Band 27 618,302.323 10.33 6,387,063 Band 28 562,644.052 10.31 5,800,860 Band 29 3,886,584.650 10.31 40,070,688 Band 30 1,982,796.441 10.28 20,383,147 Band 31 1,358,902.658 10.27 13,955,930 Band 32 1,596,799.090 10.25 16,367,191 Band 33 996,661.512 10.23 10,195,847 Band 34 743,193.342 10.22 7,595,436 Band 35 303,940.895 10.37 3,151,867 Band 36 6,041.413 10.35 62,529 --------------- ---------------- 17,355,154.646 $ 178,612,858 =============== ================ ING GET Fund - Series V Contracts in accumulation period: Band 6 377,244.314 $ 9.67 $ 3,647,953 Band 7 10,497.617 9.67 101,512 Band 9 3,428,970.733 9.66 33,123,857 Band 10 57,039.003 9.66 550,997 Band 12 78,393.283 9.65 756,495 Band 13 703,332.197 9.65 6,787,156 Band 14 15,362.651 9.64 148,096 Band 15 981,424.412 9.64 9,460,931 Band 17 109,012.095 9.63 1,049,786 Band 19 7,048.612 9.62 67,808 Band 20 102,611.756 9.65 990,203 Band 26 4,074,560.819 9.69 39,482,494 Band 27 1,110,623.526 9.68 10,750,836 Band 28 704,233.623 9.67 6,809,939 Band 29 9,900,191.789 9.67 95,734,855 Band 30 5,082,333.144 9.65 49,044,515 Band 31 3,016,197.737 9.64 29,076,146 Band 32 3,471,177.374 9.63 33,427,438 Band 33 1,464,434.784 9.62 14,087,863 Band 34 1,960,483.000 9.61 18,840,242 Band 35 637,242.621 9.70 6,181,253 Band 36 19,701.868 9.69 190,911 Band 37 19,420.185 9.69 188,182 --------------- ---------------- 37,331,537.143 $ 360,499,468 =============== ================
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 1 Contracts in accumulation period: Band 6 163,804.383 $ 10.00 $ 1,638,044 Band 7 24,798.867 10.00 247,989 Band 9 2,217,292.351 10.00 22,172,924 Band 10 56,856.117 10.00 568,561 Band 12 34,784.826 9.99 347,500 Band 13 640,734.600 9.99 6,400,939 Band 14 22,846.028 9.99 228,232 Band 15 573,376.356 9.99 5,728,030 Band 17 17,031.101 9.98 169,970 Band 20 104,149.236 9.99 1,040,451 Band 26 2,144,780.385 10.02 21,490,699 Band 27 725,261.978 10.01 7,259,872 Band 28 248,015.600 10.00 2,480,156 Band 29 7,055,188.995 10.00 70,551,890 Band 30 2,671,357.671 9.99 26,686,863 Band 31 2,438,858.879 9.99 24,364,200 Band 32 2,505,847.339 9.98 25,008,356 Band 33 798,852.736 9.97 7,964,562 Band 34 815,458.858 9.97 8,130,125 Band 35 465,345.307 10.02 4,662,760 Band 36 31,548.698 10.02 316,118 Band 38 5,140.212 10.03 51,556 Band 39 13,753.981 10.02 137,815 --------------- ---------------- 23,775,089,504 $ 237,647,612 =============== ================ ING GET U.S. Core Portfolio - Series 2 (Guaranteed) Contracts in accumulation period: Band 9 10,378.187 $ 9.99 $ 103,678 Band 26 19,311.921 10.00 193,119 Band 27 2,086.634 10.00 20,866 Band 28 4,059.487 9.99 40,554 Band 29 61,533.123 9.99 614,716 Band 30 48,432.670 9.99 483,842 Band 31 1,867.466 9.99 18,656 Band 32 7,887.951 9.99 78,801 Band 33 33,248.408 9.99 332,152 Band 35 30,425.624 10.00 304,256 --------------- ---------------- 219,231.471 $ 237,647,612 =============== ================
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING AIM Mid-Cap Growth Currently payable annuity contracts: Band 2 13,059.308 $ 12.80 $ 167,159 Contracts in accumulation period: Band 1 9,840.382 13.01 128,023 Band 2 119,877.596 12.80 1,534,433 Band 3 6,084.709 12.44 75,694 Band 4 227,055.443 12.56 2,851,816 Band 5 143,503.211 12.49 1,792,355 Band 6 2,885,504.413 12.41 35,809,110 Band 7 2,051,506.253 12.34 25,315,587 Band 8 1,829,439.986 12.26 22,428,934 Band 9 692,121.024 12.19 8,436,955 Band 10 409,298.277 12.14 4,968,881 Band 11 2,487,789.909 12.10 30,102,258 Band 12 498,769.911 12.05 6,010,177 Band 13 1,308,912.019 12.00 15,706,944 Band 14 1,612,128.921 11.90 19,184,334 Band 15 1,248.872 11.85 14,799 Band 16 28,478.999 11.76 334,913 Band 17 137,484.505 11.71 1,609,944 Band 18 47,950.035 11.66 559,097 Band 19 46,314.455 11.56 535,395 Band 20 309,293.839 11.95 3,696,061 Band 21 67,927.877 11.80 801,549 Band 25 23,073.363 12.90 297,646 --------------- --------------- 14,956,663.307 $ 182,362,064 =============== =============== ING AIM Mid-Cap Growth Advisor Contracts in accumulation period: Band 6 24,871.698 $ 12.06 $ 299,953 Band 10 18,295.428 12.03 220,094 Band 12 13,566.462 12.02 163,069 Band 20 89,411.022 12.00 1,072,932 --------------- --------------- 146,144.610 $ 1,756,048 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Alliance Mid-Cap Growth Advisor Contracts in accumulation period: Band 6 49,248.174 $ 14.80 $ 728,873 Band 10 9,370.681 14.76 138,311 Band 12 21,392.147 14.74 315,320 Band 20 85,681.019 14.72 1,261,225 --------------- --------------- 165,692.021 $ 2,443,729 =============== =============== ING Alliance Mid-Cap Growth Contracts in accumulation period: Band 1 1,223.307 $ 14.95 $ 18,288 Band 2 139,563.639 14.73 2,055,772 Band 3 6,979.559 14.34 100,087 Band 4 309,696.109 14.46 4,478,206 Band 5 199,293.211 14.40 2,869,822 Band 6 5,356,643.058 14.29 76,546,429 Band 7 2,585,435.297 14.24 36,816,599 Band 8 4,257,509.044 14.13 60,158,603 Band 9 689,087.697 14.08 9,702,355 Band 10 686,844.209 14.02 9,629,556 Band 11 6,005,659.326 13.97 83,899,061 Band 12 828,673.617 13.92 11,535,137 Band 13 2,141,749.767 13.86 29,684,652 Band 14 2,529,646.114 13.76 34,807,931 Band 16 61,159.360 13.60 831,767 Band 17 338,225.650 13.55 4,582,958 Band 18 73,822.965 13.50 996,610 Band 19 150,284.285 13.39 2,012,307 Band 20 506,582.256 13.81 6,995,901 Band 21 118,109.330 13.65 1,612,192 Band 25 70,254.019 14.84 1,042,570 --------------- --------------- 27,056,441.819 $ 380,376,803 =============== =============== ING American Funds Growth Contracts in accumulation period: Band 4 511.656 $ 9.64 $ 4,932 Band 5 11,647.877 9.64 112,286 Band 6 250,858.014 9.64 2,418,271 Band 7 278,012.499 9.64 2,680,040
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING American Funds Growth (continued) Band 8 61,693.424 $ 9.63 $ 594,108 Band 9 12,847.368 9.63 123,720 Band 10 190,686.663 9.63 1,836,313 Band 11 63,784.642 9.63 614,246 Band 12 108,577.059 9.63 1,045,597 Band 13 74,114.066 9.63 713,718 Band 14 152,892.286 9.63 1,472,353 Band 15 1,582.926 9.63 15,244 Band 16 8,744.378 9.63 84,208 Band 17 92,829.742 9.63 893,950 Band 18 198.232 9.63 1,909 Band 19 30,573.233 9.63 294,420 Band 20 90,214.302 9.63 868,764 Band 21 12,802.293 9.63 123,286 Band 26 4,124.782 9.64 39,763 Band 27 6,285.703 9.64 60,594 Band 28 126.187 9.64 1,216 Band 29 31,565.881 9.64 304,295 Band 30 29,439.564 9.63 283,503 Band 31 11,775.086 9.63 113,394 Band 32 18,286.814 9.63 176,102 Band 33 4,278.883 9.63 41,206 Band 34 22,013.665 9.63 211,992 --------------- ---------------- 1,570,467.225 $ 15,129,430 =============== ================ ING American Funds Growth-Income Contracts in accumulation period: Band 4 16,173.582 $ 9.84 $ 159,148 Band 5 4,136.087 9.84 40,699 Band 6 153,489.357 9.84 1,510,335 Band 7 175,771.494 9.84 1,729,592 Band 8 79,747.599 9.84 784,716 Band 9 12,528.422 9.84 123,280 Band 10 73,652.180 9.83 724,001 Band 11 55,906.571 9.83 549,562 Band 12 99,928.531 9.83 982,297
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING American Funds Growth-Income (continued) Band 13 91,700.925 $ 9.83 $ 901,420 Band 14 184,990.290 9.83 1,818,455 Band 16 19,884.558 9.83 195,465 Band 17 57,716.840 9.83 567,357 Band 18 1,519.920 9.83 14,941 Band 19 34,140.436 9.83 335,600 Band 20 64,013.463 9.83 629,252 Band 21 41,676.316 9.83 409,678 Band 26 11,273.354 9.84 110,930 Band 27 5,674.513 9.84 55,837 Band 28 125.205 9.84 1,232 Band 29 26,108.908 9.84 256,912 Band 30 27,168.479 9.83 267,066 Band 31 8,885.724 9.83 87,347 Band 32 18,060.392 9.83 177,534 Band 33 4,569.135 9.83 44,915 Band 34 5,929.271 9.83 58,285 --------------- --------------- 1,274,771.552 $ 12,535,856 =============== =============== ING American Funds International Contracts in accumulation period: Band 4 80.313 $ 10.19 $ 818 Band 5 3,122.207 10.19 31,815 Band 6 59,180.136 10.19 603,046 Band 7 72,869.190 10.19 742,537 Band 8 41,709.892 10.18 424,607 Band 9 6,167.805 10.18 62,788 Band 10 43,384.047 10.18 441,650 Band 11 21,598.738 10.18 219,875 Band 12 22,806.975 10.18 232,175 Band 13 33,041.817 10.18 336,366 Band 14 39,070.032 10.18 397,733 Band 16 6,260.596 10.18 63,733 Band 17 28,868.793 10.18 293,884 Band 18 298.722 10.18 3,041 Band 19 9,209.905 10.18 93,757 Band 20 23,237.821 10.18 236,561 Band 21 5,222.989 10.18 53,170 Band 26 490.214 10.19 4,995
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING American Funds International (continued) Band 27 $ 1,268.548 $ 10.19 $ 12,927 Band 28 30.491 10.19 311 Band 29 6,383.439 10.19 65,047 Band 33 4,945.019 10.18 50,340 --------------- --------------- 429,247.689 $ 4,371,176 =============== =============== ING Capital Guardian Large Cap Value Contracts in accumulation period: Band 2 $ 65,063.238 $ 9.15 $ 595,329 Band 3 2,149.696 9.04 19,433 Band 4 172,638.319 9.07 1,565,830 Band 5 754,719.743 9.05 6,830,214 Band 6 5,915,476.985 9.02 53,357,602 Band 7 8,513,563.850 9.00 76,622,075 Band 8 2,368,188.739 8.97 21,242,653 Band 9 1,385,438.608 8.95 12,399,676 Band 10 3,535,570.136 8.94 31,607,997 Band 11 4,827,305.891 8.92 43,059,569 Band 12 3,721,321.465 8.90 33,119,761 Band 13 6,284,063.923 8.89 55,865,328 Band 14 7,796,869.947 8.85 69,002,299 Band 15 3,598.536 8.84 31,811 Band 16 218,381.947 8.80 1,921,761 Band 17 1,713,068.772 8.79 15,057,875 Band 18 257,162.287 8.77 2,255,313 Band 19 531,185.924 8.74 4,642,565 Band 20 2,052,167.897 8.87 18,202,729 Band 21 779,862.118 8.82 6,878,384 Band 24 1,323.253 9.32 12,333 Band 25 150,618.045 9.19 1,384,180 --------------- --------------- 51,049,739.319 $ 455,674,717 =============== =============== ING Capital Guardian Large Cap Value Advisor Contracts in accumulation period: Band 6 166,010.657 $ 12.28 $ 2,038,611 Band 10 11,352.324 12.25 139,066
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Large Cap Value Advisor (continued) Band 11 790.458 $ 12.24 $ 9,675 Band 12 55,508.351 12.24 679,422 Band 20 152,599.697 12.22 1,864,768 ---------------- --------------- 386,261.487 $ 4,731,542 ================ =============== ING Capital Guardian Managed Global Currently payable annuity contracts: Band 2 5,958.304 $ 17.00 $ 101,291 Contracts in accumulation period: Band 1 9,467.516 17.38 164,545 Band 2 1,061,551.907 17.00 18,046,383 Band 3 15,065.699 16.37 246,625 Band 4 362,948.634 16.53 5,999,541 Band 5 319,244.897 16.42 5,242,001 Band 6 2,132,895.890 16.26 34,680,887 Band 7 2,707,959.945 16.15 43,733,553 Band 8 2,570,606.984 15.99 41,104,006 Band 9 597,992.962 15.88 9,496,128 Band 10 1,369,153.713 15.80 21,632,629 Band 11 1,288,530.770 15.71 20,242,818 Band 12 754,251.539 15.62 11,781,409 Band 13 1,826,834.406 15.53 28,370,738 Band 14 1,848,520.305 15.36 28,393,272 Band 15 139.335 15.28 2,129 Band 16 57,458.161 15.11 868,193 Band 17 360,079.105 15.02 5,408,388 Band 18 75,007.673 14.94 1,120,615 Band 19 123,020.043 14.77 1,817,006 Band 20 577,595.802 15.45 8,923,855 Band 21 180,605.628 15.19 2,743,399 Band 24 1,150.600 17.94 20,642 Band 25 130,636.017 17.16 2,241,714 ---------------- --------------- 18,376,675.835 $ 292,381,767 ================ ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Managed Global Advisor Contracts in accumulation period: Band 6 16,999.411 $ 12.05 $ 204,843 Band 7 650.253 12.05 7,836 Band 10 4,353.946 12.02 52,334 Band 12 17,951.252 12.01 215,595 Band 20 41,255.577 11.99 494,654 --------------- --------------- 81,210.439 $ 975,262 =============== =============== ING Capital Guardian Small Cap Currently payable annuity contracts: Band 2 1,882.371 $ 16.61 $ 31,266 Contracts in accumulation period: Band 1 13,599.686 16.88 229,563 Band 2 196,355.416 16.61 3,261,464 Band 3 11,301.121 16.16 182,626 Band 4 300,574.173 16.29 4,896,353 Band 5 268,785.070 16.23 4,362,382 Band 6 5,595,026.037 16.10 90,079,919 Band 7 3,547,584.641 16.04 56,903,258 Band 8 3,853,882.256 15.91 61,315,267 Band 9 940,925.635 15.85 14,913,671 Band 10 1,172,778.319 15.79 18,518,170 Band 11 4,087,382.738 15.73 64,294,530 Band 12 1,084,035.433 15.67 16,986,835 Band 13 2,641,635.704 15.61 41,235,933 Band 14 2,833,904.958 15.48 43,868,849 Band 15 1,813.334 15.42 27,962 Band 16 70,604.733 15.30 1,080,252 Band 17 574,261.523 15.24 8,751,746 Band 18 88,957.247 15.18 1,350,371 Band 19 116,568.889 15.06 1,755,527 Band 20 756,862.580 15.54 11,761,644 Band 21 174,581.887 15.36 2,681,578 Band 24 1,339.815 17.28 23,152 Band 25 103,091.450 16.74 1,725,751 --------------- --------------- 28,437,735.016 $ 450,238,069 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Small Cap Advisor Contracts in accumulation period: Band 6 50,542.704 $ 11.90 $ 601,458 Band 7 6,163.820 11.89 73,288 Band 10 11,917.101 11.87 141,456 Band 11 791.519 11.86 9,387 Band 12 14,988.280 11.85 177,611 Band 20 109,576.996 11.84 1,297,392 --------------- --------------- 193,980.420 $ 2,300,592 =============== =============== ING Developing World Currently payable annuity contracts: Band 2 8,697.737 $ 8.00 $ 69,582 Contracts in accumulation period: Band 1 13,676.360 8.09 110,642 Band 2 412,152.143 8.00 3,297,217 Band 3 13,040.590 7.84 102,238 Band 4 174,900.306 7.89 1,379,963 Band 5 147,786.757 7.87 1,163,082 Band 6 2,008,403.007 7.82 15,705,712 Band 7 1,577,302.749 7.80 12,302,961 Band 8 1,291,626.299 7.76 10,023,020 Band 9 443,237.341 7.73 3,426,225 Band 10 352,555.426 7.71 2,718,202 Band 11 1,298,676.743 7.69 9,986,824 Band 12 365,415.488 7.67 2,802,737 Band 13 768,264.480 7.65 5,877,223 Band 14 984,143.672 7.60 7,479,492 Band 15 87.811 7.58 666 Band 16 45,611.968 7.54 343,914 Band 17 138,315.121 7.52 1,040,130 Band 18 22,509.553 7.49 168,597 Band 19 37,488.078 7.45 279,286 Band 20 184,727.593 7.62 1,407,624 Band 21 47,175.028 7.56 356,643 Band 25 44,058.665 8.05 354,672 --------------- --------------- 10,379,852.915 $ 80,396,652 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Developing World Advisor Contracts in accumulation period: Band 6 16,210.243 $ 12.16 $ 197,117 Band 7 6,450.957 12.15 78,379 Band 10 15,451.432 12.12 187,271 Band 11 433.646 12.12 5,256 Band 12 17,680.743 12.11 214,114 Band 20 30,456.864 12.10 368,528 --------------- --------------- 86,683.885 $ 1,050,665 =============== =============== ING Eagle Asset Value Equity Currently payable annuity contracts: Band 1 157.636 $ 17.25 $ 2,719 Band 2 627.152 16.95 10,630 Contracts in accumulation period: Band 1 4,793.846 17.25 82,694 Band 2 220,170.566 16.95 3,731,891 Band 3 9,919.900 16.43 162,984 Band 4 215,758.228 16.60 3,581,587 Band 5 110,804.741 16.51 1,829,386 Band 6 2,121,405.334 16.38 34,748,619 Band 7 1,210,119.912 16.29 19,712,853 Band 8 1,946,183.151 16.17 31,469,782 Band 9 244,939.859 16.07 3,936,184 Band 10 336,124.854 16.00 5,377,998 Band 11 1,952,805.555 15.93 31,108,192 Band 12 386,320.463 15.86 6,127,043 Band 13 964,941.172 15.79 15,236,421 Band 14 976,133.998 15.65 15,276,497 Band 15 14,779.115 15.58 230,259 Band 16 28,973.366 15.44 447,349 Band 17 203,437.462 15.38 3,128,868 Band 18 22,158.953 15.31 339,254 Band 19 49,989.304 15.17 758,338 Band 20 222,516.295 15.72 3,497,956 Band 21 74,381.776 15.51 1,153,661 Band 25 12,260.268 17.09 209,528 Band 26 14,394.881 17.02 245,001 Band 27 8,412.051 16.58 139,472
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Eagle Asset Value Equity (continued) Band 28 562.809 $ 16.36 $ 9,208 Band 29 16,203.540 16.28 263,794 Band 30 18,110.209 15.86 287,228 Band 31 10,417.106 15.65 163,028 Band 32 7,273.792 15.25 110,925 Band 33 1,577.431 14.98 23,630 Band 34 542.149 14.78 8,013 --------------- --------------- 11,404,196.874 $ 183,410,992 =============== =============== ING Eagle Asset Value Equity Advisor Contracts in accumulation period: Band 6 13,513.832 $ 10.50 $ 141,895 Band 7 452.730 10.49 4,749 Band 10 185.578 10.47 1,943 Band 12 15,364.516 10.46 160,713 Band 20 42,600.374 10.45 445,174 --------------- --------------- 72,117.030 $ 754,474 =============== =============== ING FMR Diversified Mid-Cap Contracts in accumulation period: Band 2 13,945.244 $ 8.50 $ 118,535 Band 3 523.099 8.41 4,399 Band 4 54,374.032 8.44 458,917 Band 5 172,157.378 8.43 1,451,287 Band 6 1,910,477.013 8.40 16,048,007 Band 7 2,727,862.255 8.39 22,886,764 Band 8 476,740.483 8.36 3,985,550 Band 9 228,680.928 8.35 1,909,486 Band 10 1,162,052.038 8.34 9,691,514 Band 11 1,364,655.447 8.33 11,367,580 Band 12 1,103,887.197 8.31 9,173,303 Band 13 1,980,392.946 8.30 16,437,261 Band 14 2,852,366.265 8.27 23,589,069 Band 16 91,589.750 8.24 754,700 Band 17 667,237.063 8.22 5,484,689 Band 18 108,209.470 8.21 888,400
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING FMR Diversified Mid-Cap (continued) Band 19 207,163.010 $ 8.19 $ 1,696,665 Band 20 945,638.103 8.29 7,839,340 Band 21 189,078.804 8.25 1,559,900 Band 25 43,775.809 8.53 373,408 --------------- --------------- 16,300,806.334 $ 135,718,774 =============== =============== ING FMR Diversified Mid-Cap Advisor Contracts in accumulation period: Band 6 67,159.696 $ 11.00 $ 738,757 Band 7 778.775 10.99 8,559 Band 10 13,745.805 10.97 150,791 Band 11 912.661 10.96 10,003 Band 12 41,441.327 10.96 454,197 Band 20 117,269.796 10.95 1,284,104 --------------- --------------- 241,308.060 $ 2,646,411 =============== =============== ING Goldman Sachs Internet Tollkeeper Contracts in accumulation period: Band 2 1,884.374 $ 5.77 $ 10,873 Band 3 1,486.247 5.72 8,501 Band 4 12,852.576 5.73 73,645 Band 5 34,485.877 5.73 197,604 Band 6 801,218.627 5.71 4,574,958 Band 7 1,129,323.725 5.70 6,437,145 Band 8 219,757.673 5.69 1,250,421 Band 9 89,595.932 5.68 508,905 Band 10 417,614.918 5.68 2,372,053 Band 11 414,648.848 5.67 2,351,059 Band 12 383,871.655 5.66 2,172,714 Band 13 658,648.824 5.66 3,727,952 Band 14 1,291,421.389 5.64 7,283,617 Band 15 5,317.482 5.63 29,937 Band 16 72,351.944 5.62 406,618 Band 17 224,293.109 5.61 1,258,284
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Goldman Sachs Internet Tollkeeper (continued) Band 18 42,087.713 $ 5.61 $ 236,112 Band 19 134,615.446 5.59 752,500 Band 20 501,027.772 5.65 2,830,807 Band 21 50,151.798 5.63 282,355 Band 25 13,225.235 5.78 76,442 --------------- --------------- 6,499,881.164 $ 36,842,502 =============== =============== ING Goldman Sachs Internet Tollkeeper Advisor Contracts in accumulation period: Band 6 25,239.758 $ 12.78 $ 322,564 Band 10 3,876.500 12.74 49,387 Band 11 262.718 12.73 3,344 Band 12 26,567.779 12.73 338,208 Band 20 56,559.816 12.71 718,875 --------------- --------------- 112,506.571 $ 1,432,378 =============== =============== ING Hard Assets Currently payable annuity contracts: Band 2 1,297.101 $ 18.31 $ 23,750 Contracts in accumulation period: Band 1 36,024.246 18.86 679,417 Band 2 189,691.642 18.31 3,473,254 Band 3 10,757.846 17.38 186,971 Band 4 51,681.224 17.67 913,207 Band 5 33,739.107 17.52 591,109 Band 6 633,092.955 17.28 10,939,846 Band 7 581,103.193 17.13 9,954,298 Band 8 518,749.815 16.90 8,766,872 Band 9 68,131.427 16.75 1,141,201 Band 10 185,462.621 16.63 3,084,243 Band 11 959,828.823 16.50 15,837,176 Band 12 163,206.076 16.38 2,673,316 Band 13 335,043.911 16.26 5,447,814 Band 14 1,181,759.514 16.02 18,931,787 Band 15 43.208 15.90 687 Band 16 15,563.241 15.66 243,720
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Hard Assets (continued) Band 17 86,484.352 $ 15.55 $ 1,344,832 Band 18 16,417.477 15.43 253,322 Band 19 36,680.424 15.20 557,542 Band 20 567,291.216 16.14 9,156,080 Band 21 35,681.754 15.78 563,058 Band 25 58,561.840 18.59 1,088,665 --------------- --------------- 5,766,293.013 $ 95,852,167 =============== =============== ING Hard Assets Advisor Contracts in accumulation period: Band 6 32,859.624 $ 12.09 $ 397,273 Band 7 25.541 12.08 309 Band 10 8,708.641 12.05 104,939 Band 12 23,225.923 12.04 279,640 Band 20 67,978.337 12.03 817,779 --------------- --------------- 132,798.066 $ 1,599,940 =============== =============== ING International Contracts in accumulation period: Band 1 352.801 $ 8.53 $ 3,009 Band 2 15,851.747 8.40 133,155 Band 4 8,847.416 8.25 72,991 Band 5 95,157.102 8.21 781,240 Band 6 4,065,569.366 8.10 32,931,112 Band 7 2,197,169.480 8.12 17,841,016 Band 8 1,598,557.106 8.06 12,884,370 Band 9 600,875.329 8.03 4,825,029 Band 10 394,602.976 8.00 3,156,824 Band 11 3,857,302.603 7.97 30,742,702 Band 12 478,636.709 7.94 3,800,375 Band 13 1,524,068.123 7.91 12,055,379 Band 14 1,949,623.428 7.85 15,304,544 Band 16 16,456.503 7.76 127,702 Band 17 232,350.823 7.73 1,796,072
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING International (continued) Band 18 52,113.689 $ 7.70 $ 401,275 Band 19 49,623.640 7.64 379,125 Band 20 357,964.858 7.88 2,820,763 Band 21 156,616.232 7.79 1,220,040 Band 25 49,444.466 8.47 418,795 --------------- --------------- 17,701,184.397 $ 141,695,518 =============== =============== ING International Advisor Contracts in accumulation period: Band 6 49,543.322 $ 11.08 $ 548,940 Band 10 11,674.214 11.05 129,000 Band 12 85,626.316 11.04 945,315 Band 20 125,408.579 11.02 1,382,003 --------------- --------------- 272,252.431 $ 3,005,258 =============== =============== ING Janus Growth and Income Contracts in accumulation period: Band 2 19,929.203 $ 7.79 $ 155,248 Band 3 3,728.499 7.71 28,747 Band 4 124,655.238 7.73 963,585 Band 5 343,653.181 7.72 2,653,003 Band 6 2,753,970.127 7.69 21,178,030 Band 7 4,332,158.774 7.68 33,270,979 Band 8 800,229.447 7.66 6,129,758 Band 9 340,299.298 7.65 2,603,290 Band 10 2,011,787.445 7.64 15,370,056 Band 11 2,230,742.833 7.62 16,998,260 Band 12 2,109,228.250 7.61 16,051,227 Band 13 3,574,410.652 7.60 27,165,521 Band 14 4,091,951.885 7.58 31,016,995 Band 15 30,493.794 7.57 230,838 Band 16 158,874.351 7.54 1,197,913 Band 17 868,568.240 7.53 6,540,319 Band 18 157,138.230 7.52 1,181,679
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Janus Growth and Income (continued) Band 19 303,885.419 $ 7.50 $ 2,279,141 Band 20 1,255,462.175 7.59 9,528,958 Band 21 295,312.690 7.55 2,229,611 Band 25 59,216.905 7.81 462,484 Band 26 130,927.765 7.80 1,021,237 Band 27 58,030.174 7.73 448,573 Band 28 13,770.289 7.69 105,894 Band 29 177,671.859 7.68 1,364,520 Band 30 87,605.609 7.61 666,679 Band 31 45,946.453 7.58 348,274 Band 32 7,752.805 7.51 58,224 Band 33 20,892.002 7.46 155,854 Band 34 4,527.721 7.43 33,641 --------------- --------------- 26,412,821.313 $ 201,438,538 =============== =============== ING Janus Growth and Income Advisor Contracts in accumulation period: Band 6 121,647.622 $ 10.58 $ 1,287,032 Band 7 1,544.050 10.58 16,336 Band 10 48,712.979 10.56 514,409 Band 11 1,462.381 10.55 15,428 Band 12 141,672.216 10.54 1,493,225 Band 20 199,459.049 10.53 2,100,304 --------------- --------------- 514,498.297 $ 5,426,734 =============== =============== ING Janus Special Equity Contracts in accumulation period: Band 2 15,009.793 $ 8.00 $ 120,078 Band 4 6,411.802 7.94 50,910 Band 5 90,775.318 7.92 718,941 Band 6 838,717.863 7.90 6,625,871 Band 7 816,370.770 7.89 6,441,165 Band 8 230,813.422 7.86 1,814,193 Band 9 175,217.494 7.85 1,375,457 Band 10 331,008.310 7.84 2,595,105
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Janus Special Equity (continued) Band 11 507,165.142 $ 7.83 $ 3,971,103 Band 12 358,029.086 7.82 2,799,787 Band 13 568,297.306 7.80 4,432,719 Band 14 878,371.254 7.78 6,833,728 Band 15 1,910.811 7.77 14,847 Band 16 12,174.259 7.74 94,229 Band 17 104,779.343 7.73 809,944 Band 18 30,078.999 7.72 232,210 Band 19 61,646.237 7.70 474,676 Band 20 281,160.281 7.79 2,190,239 Band 21 65,486.704 7.76 508,177 Band 25 10,713.988 8.02 85,926 --------------- --------------- 5,384,138.182 $ 42,189,305 =============== =============== ING Janus Special Equity Advisor Contracts in accumulation period: Band 6 5,961.123 $ 12.52 $ 74,633 Band 10 262.503 12.49 3,279 Band 12 15,780.178 12.47 196,779 Band 20 13,630.616 12.46 169,837 --------------- --------------- 35,634.420 $ 444,528 =============== =============== ING Jennison Equity Opportunities Currently payable annuity contracts: Band 2 11,224.919 $ 17.78 $ 199,579 Contracts in accumulation period: Band 1 14,117.436 18.19 256,796 Band 2 1,032,279.704 17.78 18,353,933 Band 3 15,258.416 17.07 260,461 Band 4 239,764.281 17.30 4,147,922 Band 5 177,290.449 17.18 3,045,850 Band 6 2,580,239.132 17.00 43,864,065 Band 7 1,818,573.059 16.88 30,697,513 Band 8 2,587,578.629 16.71 43,238,439 Band 9 627,514.382 16.59 10,410,464
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Jennison Equity Opportunities (continued) Band 10 447,326.691 $ 16.49 $ 7,376,417 Band 11 3,112,437.620 16.40 51,043,977 Band 12 592,814.321 16.30 9,662,873 Band 13 1,510,752.234 16.21 24,489,294 Band 14 1,895,113.638 16.02 30,359,720 Band 16 41,204.669 15.75 648,974 Band 17 165,321.100 15.65 2,587,275 Band 18 37,018.933 15.56 576,015 Band 19 53,950.904 15.38 829,765 Band 20 282,994.792 16.12 4,561,876 Band 21 59,372.525 15.84 940,461 Band 25 40,054.788 17.99 720,586 --------------- --------------- 17,342,202.622 $ 288,272,255 =============== =============== ING Jennison Equity Opportunities Advisor Contracts in accumulation period: Band 6 25,694.184 $ 11.01 $ 282,893 Band 10 2,442.369 10.98 26,817 Band 11 696.576 10.97 7,641 Band 12 13,270.257 10.97 145,575 Band 20 57,440.048 10.95 628,969 --------------- --------------- 99,543.434 $ 1,091,895 =============== =============== ING JPMorgan Fleming Small Cap Equity Contracts in accumulation period: Band 2 6,116.121 $ 9.21 $ 56,329 Band 4 2,795.939 9.18 25,667 Band 5 56,210.317 9.17 515,449 Band 6 590,238.783 9.16 5,406,587 Band 7 846,344.847 9.15 7,744,055 Band 8 86,569.328 9.14 791,244 Band 9 28,858.970 9.13 263,482 Band 10 374,291.044 9.12 3,413,534 Band 11 404,500.324 9.12 3,689,043
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING JPMorgan Fleming Small Cap Equity (continued) Band 12 198,056.786 $ 9.11 $ 1,804,297 Band 13 511,410.778 9.10 4,653,838 Band 14 711,076.528 9.09 6,463,686 Band 15 12,516.686 9.08 113,652 Band 16 9,199.034 9.07 83,435 Band 17 153,726.508 9.06 1,392,762 Band 18 15,430.299 9.06 139,799 Band 19 51,576.603 9.04 466,252 Band 20 212,449.218 9.10 1,933,288 Band 21 68,036.460 9.08 617,771 Band 25 13,979.220 9.22 128,888 Band 26 23,446.979 9.21 215,947 Band 27 18,332.941 9.17 168,113 Band 28 184.774 9.16 1,693 Band 29 31,751.514 9.15 290,526 Band 30 10,924.608 9.11 99,523 Band 31 37,743.506 9.09 343,088 Band 32 2,135.875 9.05 19,330 Band 33 4,623.441 9.03 41,750 Band 34 3,477.581 9.01 31,333 --------------- --------------- 4,486,005.012 $ 40,914,361 =============== =============== ING JPMorgan Fleming Small Cap Equity Advisor Contracts in accumulation period: Band 6 206,334.661 $ 11.05 $ 2,280,009 Band 7 966.269 11.04 10,668 Band 10 49,077.269 11.02 540,832 Band 12 93,691.446 11.01 1,031,543 Band 20 249,397.284 11.00 2,743,370 --------------- --------------- 599,467.929 $ 6,606,422 =============== =============== ING Julius Baer Foreign Contracts in accumulation period: Band 2 802.475 $ 9.24 $ 7,415 Band 4 4,904.197 9.21 45,168 Band 5 21,426.998 9.20 197,128
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Julius Baer Foreign (continued) Band 6 347,808.887 $ 9.19 $ 3,196,364 Band 7 331,738.560 9.18 3,045,360 Band 8 79,675.047 9.17 730,620 Band 9 11,052.789 9.16 101,244 Band 10 183,224.944 9.16 1,678,340 Band 11 117,279.457 9.15 1,073,107 Band 12 112,736.950 9.14 1,030,416 Band 13 159,275.160 9.14 1,455,775 Band 14 379,326.085 9.12 3,459,454 Band 15 15,207.782 9.12 138,695 Band 16 3,688.505 9.10 33,565 Band 17 50,642.545 9.10 460,847 Band 18 8,146.924 9.09 74,056 Band 19 25,183.818 9.08 228,669 Band 20 68,818.036 9.13 628,309 Band 21 23,864.645 9.11 217,407 Band 25 4,904.200 9.26 45,413 Band 26 24,281.765 9.25 224,606 Band 27 25,858.165 9.21 238,154 Band 28 693.697 9.19 6,375 Band 29 22,207.701 9.18 203,867 Band 30 16,743.255 9.14 153,033 Band 31 5,028.423 9.12 45,859 Band 32 7,664.501 9.09 69,670 Band 33 408.261 9.06 3,699 Band 34 2,031.430 9.04 18,364 --------------- --------------- 2,054,625.202 $ 18,810,979 =============== =============== ING Julius Baer Foreign Advisor Contracts in accumulation period: Band 6 18,415.619 $ 10.89 $ 200,546 Band 7 8,942.346 10.88 97,293 Band 10 6,683.516 10.86 72,583 Band 12 36,366.899 10.85 394,581 Band 20 71,909.233 10.84 779,496 --------------- --------------- 142,317.613 $ 1,544,499 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Limited Maturity Bond Currently payable annuity contracts: Band 1 1,845.100 $ 22.30 $ 41,146 Band 2 4,440.581 21.65 96,139 Contracts in accumulation period: Band 1 28,149.880 22.30 627,742 Band 2 740,085.703 21.65 16,022,855 Band 3 14,057.246 20.55 288,876 Band 4 327,592.549 20.91 6,849,960 Band 5 334,748.389 20.69 6,925,944 Band 6 5,825,609.633 20.45 119,133,717 Band 7 4,299,433.878 20.24 87,020,542 Band 8 2,636,990.127 20.00 52,739,803 Band 9 524,098.573 19.79 10,371,911 Band 10 1,072,463.062 19.64 21,063,175 Band 11 3,998,003.257 19.53 78,081,004 Band 12 1,091,172.787 19.35 21,114,193 Band 13 2,963,417.148 19.21 56,927,243 Band 14 3,063,754.180 18.92 57,966,229 Band 15 957.369 18.81 18,008 Band 16 115,694.111 18.54 2,144,969 Band 17 376,664.335 18.40 6,930,624 Band 18 152,184.274 18.26 2,778,885 Band 19 176,417.212 17.99 3,173,746 Band 20 752,121.287 19.10 14,365,517 Band 21 189,663.896 18.67 3,541,025 Band 24 5,352.888 23.33 124,883 Band 25 110,641.161 21.99 2,432,999 --------------- --------------- 28,805,558.626 $ 570,781,135 =============== =============== ING Liquid Assets Currently payable annuity contracts: Band 1 2,247.063 $ 17.21 $ 38,672 Band 2 1,193.609 16.71 19,945 Contracts in accumulation period: Band 1 177,631.822 17.21 3,057,044 Band 2 607,110.736 16.71 10,144,821 Band 3 40,357.972 15.86 640,077 Band 4 604,220.928 16.12 9,740,041
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Liquid Assets (continued) Band 5 340,826.297 $ 15.93 $ 5,429,363 Band 6 10,113,688.198 15.77 159,492,863 Band 7 11,441,608.626 15.58 178,260,262 Band 8 4,627,214.055 15.42 71,351,641 Band 9 2,090,934.964 15.24 31,865,849 Band 10 1,937,763.952 15.13 29,318,369 Band 11 7,363,267.276 15.06 110,890,805 Band 12 1,553,393.850 14.90 23,145,568 Band 13 7,592,316.901 14.79 112,290,367 Band 14 6,878,603.985 14.57 100,221,260 Band 15 54,563.028 14.51 791,710 Band 16 413,119.514 14.29 5,903,478 Band 17 725,645.016 14.19 10,296,903 Band 18 145,755.901 14.08 2,052,243 Band 19 354,592.030 13.87 4,918,191 Band 20 1,335,558.179 14.73 19,672,772 Band 21 313,206.161 14.40 4,510,169 Band 24 156,356.525 17.99 2,812,854 Band 25 71,619.947 16.96 1,214,674 Band 26 212,443.032 16.83 3,575,416 Band 27 115,340.980 16.10 1,856,990 Band 28 22,142.239 15.74 348,519 Band 29 707,812.184 15.63 11,063,104 Band 30 218,129.874 14.94 3,258,860 Band 31 299,350.555 14.61 4,373,512 Band 32 206,794.688 13.99 2,893,058 Band 33 48,246.270 13.58 655,184 Band 34 52,893.588 13.28 702,427 Band 35 55,409.190 17.34 960,795 Band 36 1,753.545 16.84 29,530 Band 39 1,668.691 9.99 16,670 --------------- --------------- 60,884,781.371 $ 927,814,006 =============== =============== ING Liquid Assets Advisor Contracts in accumulation period: Band 6 156,221.697 $ 9.93 $ 1,551,281 Band 7 17,535.037 9.93 174,123
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Liquid Assets Advisor (continued) Band 10 24,034.681 $ 9.91 $ 238,184 Band 12 286,349.978 9.90 2,834,865 Band 20 362,670.806 9.88 3,583,188 --------------- --------------- 846,812.199 $ 8,381,641 =============== =============== ING Marisco Growth Contracts in accumulation period: Band 1 12,753.336 $ 13.29 $ 169,492 Band 2 327,521.752 13.09 4,287,260 Band 3 8,759.613 12.74 111,597 Band 4 521,599.198 12.84 6,697,334 Band 5 500,621.158 12.79 6,402,945 Band 6 11,824,516.615 12.70 150,171,361 Band 7 6,352,318.980 12.65 80,356,835 Band 8 7,551,140.285 12.55 94,766,811 Band 9 2,206,303.987 12.51 27,600,863 Band 10 1,667,820.910 12.46 20,781,049 Band 11 10,437,557.233 12.41 129,530,085 Band 12 1,578,482.126 12.36 19,510,039 Band 13 5,085,355.921 12.32 62,651,585 Band 14 4,934,806.870 12.22 60,303,340 Band 15 4,458.114 12.18 54,300 Band 16 132,848.319 12.08 1,604,808 Band 17 636,491.421 12.04 7,663,357 Band 18 85,203.498 11.99 1,021,590 Band 19 212,583.546 11.90 2,529,744 Band 20 1,020,361.407 12.27 12,519,834 Band 21 267,445.838 12.13 3,244,118 Band 24 808.074 13.59 10,982 Band 25 158,528.722 13.19 2,090,994 --------------- --------------- 55,528,286.923 $ 694,080,323 =============== =============== ING Marisco Growth Advisor Contracts in accumulation period: Band 6 85,406.023 $ 11.80 $ 1,007,791 Band 7 5,138.458 11.80 60,634 Band 10 27,999.682 11.77 329,556
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Marisco Growth Advisor (continued) Band 11 1,312.519 $ 11.77 $ 15,448 Band 12 97,846.195 11.76 1,150,671 Band 20 252,464.489 11.75 2,966,458 --------------- --------------- 470,167.366 $ 5,530,558 =============== =============== ING Mercury Focus Value Contracts in accumulation period: Band 2 63.224 $ 9.65 $ 610 Band 3 400.078 9.60 3,841 Band 4 5,532.336 9.62 53,221 Band 5 8,365.071 9.61 80,388 Band 6 242,290.037 9.60 2,325,984 Band 7 332,361.240 9.59 3,187,344 Band 8 62,955.082 9.58 603,110 Band 9 22,614.332 9.57 216,419 Band 10 71,071.120 9.56 679,440 Band 11 156,146.759 9.56 1,492,763 Band 12 90,729.596 9.55 866,468 Band 13 150,724.922 9.54 1,437,916 Band 14 303,331.634 9.53 2,890,750 Band 16 6,419.836 9.51 61,053 Band 17 43,351.250 9.50 411,837 Band 18 75,042.348 9.49 712,152 Band 19 33,263.115 9.48 315,334 Band 20 195,157.872 9.53 1,859,855 Band 21 13,579.926 9.51 129,145 Band 25 3,001.165 9.67 29,021 --------------- --------------- 1,816,400.943 $ 17,356,651 =============== =============== ING Mercury Focus Value Advisor Contracts in accumulation period: Band 6 7,652.739 $ 11.65 $ 89,154 Band 10 994.848 11.62 11,560 Band 11 291.356 11.62 3,386 Band 12 15,967.338 11.61 185,381 Band 20 18,693.103 11.60 216,840 --------------- --------------- 43,599.384 $ 506,321 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Mercury Fundamental Growth Contracts in accumulation period: Band 2 1,263.411 $ 9.06 $ 11,447 Band 5 10,183.159 9.02 91,852 Band 6 123,585.997 9.01 1,113,510 Band 7 204,674.143 9.00 1,842,067 Band 8 28,894.723 8.99 259,764 Band 9 2,816.423 8.98 25,291 Band 10 117,199.610 8.98 1,052,452 Band 11 99,495.016 8.97 892,470 Band 12 110,021.348 8.96 985,791 Band 13 100,393.293 8.96 899,524 Band 14 137,005.065 8.94 1,224,825 Band 16 1,085.296 8.92 9,681 Band 17 31,292.633 8.92 279,130 Band 18 2,718.156 8.91 24,219 Band 19 6,371.745 8.90 56,709 Band 20 71,764.712 8.95 642,294 Band 21 20,776.441 8.93 185,534 Band 25 562.716 9.07 5,104 --------------- --------------- 1,070,103.887 $ 9,601,664 =============== =============== ING Mercury Fundamental Growth Advisor Contracts in accumulation period: Band 6 16,833.519 $ 10.67 $ 179,614 Band 10 829.234 10.64 8,823 Band 12 22,670.277 10.63 240,985 Band 20 18,152.373 10.61 192,597 --------------- --------------- 58,485.403 $ 622,019 =============== =============== ING MFS Mid-Cap Growth Currently payable annuity contracts: Band 2 3,022.607 $ 20.74 $ 62,689 Contracts in accumulation period: Band 1 24,855.978 21.12 524,958 Band 2 598,080.853 20.74 12,404,197
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING MFS Mid-Cap Growth (continued) Band 3 9,715.076 $ 20.09 $ 195,176 Band 4 301,940.511 20.28 6,123,354 Band 5 279,203.585 20.19 5,637,120 Band 6 5,410,953.301 19.98 108,110,847 Band 7 3,659,549.507 19.91 72,861,631 Band 8 3,507,928.016 19.73 69,211,420 Band 9 1,007,865.122 19.64 19,794,471 Band 10 1,077,169.784 19.55 21,058,669 Band 11 4,460,989.091 19.47 86,855,458 Band 12 1,033,558.451 19.38 20,030,363 Band 13 2,492,714.096 19.29 48,084,455 Band 14 3,350,910.911 19.11 64,035,908 Band 15 2,227.014 19.03 42,380 Band 16 83,154.761 18.85 1,567,467 Band 17 447,057.635 18.77 8,391,272 Band 18 83,958.400 18.68 1,568,343 Band 19 147,669.952 18.51 2,733,371 Band 20 728,723.788 19.20 13,991,497 Band 21 140,752.279 18.94 2,665,848 Band 22 2,280.581 20.28 46,250 Band 23 19,219.689 19.98 384,009 Band 24 52.657 21.71 1,143 Band 25 86,727.623 20.93 1,815,209 --------------- --------------- 28,960,281.268 $ 568,197,505 =============== =============== ING MFS Mid-Cap Growth Advisor Contracts in accumulation period: Band 6 108,027.475 $ 12.14 $ 1,311,454 Band 7 6,855.126 12.14 83,221 Band 8 203.150 12.12 2,462 Band 10 20,400.121 12.11 247,045 Band 11 1,367.500 12.10 16,547 Band 12 87,318.393 12.10 1,056,553 Band 20 261,860.088 12.08 3,163,270 --------------- --------------- 486,031.853 $ 5,880,552 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING MFS Research Contracts in accumulation period: Band 1 4,184.417 $ 17.78 $ 74,399 Band 2 139,860.570 17.46 2,441,966 Band 3 12,265.930 16.91 207,417 Band 4 376,060.174 17.07 6,419,347 Band 5 202,886.731 16.99 3,447,046 Band 6 5,462,809.936 16.85 92,048,347 Band 7 2,761,071.867 16.76 46,275,564 Band 8 4,490,584.930 16.61 74,588,616 Band 9 743,711.822 16.54 12,300,994 Band 10 1,017,979.185 16.46 16,755,937 Band 11 5,439,562.921 16.39 89,154,436 Band 12 926,835.314 16.31 15,116,684 Band 13 2,097,093.878 16.24 34,056,805 Band 14 2,286,277.096 16.09 36,786,198 Band 15 11,519.397 16.02 184,541 Band 16 47,173.688 15.87 748,646 Band 17 345,777.502 15.80 5,463,285 Band 18 57,152.140 15.73 899,003 Band 19 108,264.502 15.58 1,686,761 Band 20 586,969.980 16.16 9,485,435 Band 21 156,280.126 15.94 2,491,105 Band 22 2,446.082 17.07 41,755 Band 23 25,424.986 16.85 428,411 Band 25 75,055.242 17.62 1,322,473 Band 26 16,436.229 17.54 288,291 Band 27 7,522.933 17.07 128,416 Band 28 7,121.488 16.84 119,926 Band 29 47,157.716 16.76 790,363 Band 30 34,156.846 16.31 557,098 Band 31 15,983.656 16.09 257,177 Band 32 3,979.477 15.67 62,358 Band 33 1,329.262 15.38 20,444 Band 34 22,160.163 15.17 336,170 --------------- --------------- 27,533,096.186 $ 454,985,414 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING MFS Research Advisor Contracts in accumulation period: Band 6 17,587.217 $ 10.79 $ 189,766 Band 7 2,018.087 10.79 21,775 Band 10 3,885.533 10.77 41,847 Band 12 34,041.313 10.75 365,944 Band 20 82,054.663 10.74 881,267 --------------- --------------- 139,586.813 $ 1,500,599 =============== =============== ING MFS Total Return Contracts in accumulation period: Band 1 4,498.202 $ 21.91 $ 98,556 Band 2 189,444.592 21.51 4,074,953 Band 3 4,141.631 20.84 86,312 Band 4 536,063.496 21.03 11,273,415 Band 5 495,622.910 20.94 10,378,344 Band 6 9,058,435.584 20.76 188,053,123 Band 7 6,342,841.095 20.66 131,043,097 Band 8 5,544,381.440 20.47 113,493,488 Band 9 913,690.781 20.38 18,621,018 Band 10 2,198,287.029 20.28 44,581,261 Band 11 8,560,707.646 20.19 172,840,687 Band 12 2,569,888.634 20.10 51,654,762 Band 13 4,689,951.127 20.01 93,845,922 Band 14 5,132,365.127 19.82 101,723,477 Band 15 28,171.181 19.73 555,817 Band 16 150,299.265 19.55 2,938,351 Band 17 954,589.550 19.47 18,585,859 Band 18 194,122.210 19.38 3,762,088 Band 19 317,522.096 19.20 6,096,424 Band 20 1,492,071.701 19.92 29,722,068 Band 21 486,532.569 19.64 9,555,500 Band 22 3,046.447 21.03 64,067
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING MFS Total Return (continued) Band 23 28,799.554 $ 20.76 $ 597,879 Band 24 243.729 22.51 5,486 Band 25 121,020.923 21.71 2,627,364 Band 26 169,397.713 21.61 3,660,685 Band 27 90,898.263 21.03 1,911,590 Band 28 15,815.037 20.75 328,162 Band 29 248,745.917 20.65 5,136,603 Band 30 212,783.548 20.09 4,274,821 Band 31 63,264.310 19.82 1,253,899 Band 32 44,378.970 19.30 856,514 Band 33 18,700.754 18.95 354,379 Band 34 29,149.790 18.70 545,101 Band 35 67,144.763 22.01 1,477,856 Band 36 231.279 21.61 4,998 Band 37 2,923.246 21.32 62,324 Band 38 1,737.257 10.23 17,772 --------------- --------------- 50,981,909.366 $1,036,164,022 =============== =============== ING MFS Total Return Advisor Contracts in accumulation period: Band 6 240,234.773 $ 10.81 $ 2,596,938 Band 7 81,138.645 10.81 877,109 Band 10 65,998.310 10.78 711,462 Band 11 5,360.748 10.78 57,789 Band 12 218,694.628 10.77 2,355,341 Band 20 465,411.689 10.76 5,007,830 --------------- --------------- 1,076,838.793 $ 11,606,469 =============== =============== ING PIMCO Core Bond Contracts in accumulation period: Band 1 356.113 $ 13.85 $ 4,932 Band 2 102,762.627 13.60 1,397,572 Band 3 1,887.372 13.17 24,857 Band 4 174,335.222 13.30 2,318,658 Band 5 377,918.112 13.24 5,003,636
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING PIMCO Core Bond (continued) Band 6 5,217,754.247 $ 13.12 $ 68,456,936 Band 7 5,814,186.666 13.06 75,933,278 Band 8 1,992,296.232 12.94 25,780,313 Band 9 640,910.958 12.88 8,254,933 Band 10 2,418,620.120 12.82 31,006,710 Band 11 4,552,852.299 12.76 58,094,395 Band 12 1,983,777.271 12.70 25,193,971 Band 13 4,219,184.947 12.65 53,372,690 Band 14 6,247,436.664 12.53 78,280,381 Band 15 74,901.270 12.47 934,019 Band 16 158,819.607 12.36 1,963,010 Band 17 1,145,673.809 12.30 14,091,788 Band 18 283,759.577 12.25 3,476,055 Band 19 415,260.440 12.14 5,041,262 Band 20 1,855,600.654 12.59 23,362,012 Band 21 680,383.333 12.42 8,450,361 Band 25 86,373.321 13.73 1,185,906 Band 26 312,570.467 13.66 4,269,713 Band 27 172,015.431 13.29 2,286,085 Band 28 67,976.895 13.11 891,177 Band 29 498,598.037 13.05 6,506,704 Band 30 414,074.239 12.70 5,258,743 Band 31 128,069.380 12.53 1,604,709 Band 32 74,819.723 12.20 912,801 Band 33 45,273.606 11.98 542,378 Band 34 51,384.948 11.82 607,370 Band 35 22,781.531 13.91 316,891 Band 36 4,798.957 13.66 65,554 Band 39 3,204.333 10.26 32,876 --------------- --------------- 40,240,618.408 $ 514,922,676 =============== =============== ING PIMCO Core Bond Advisor Contracts in accumulation period: Band 6 234,669.475 $ 10.58 $ 2,482,803 Band 7 52,423.008 10.58 554,635
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING PIMCO Core Bond Advisor (continued) Band 10 51,809.872 $ 10.55 $ 546,594 Band 11 1,888.854 10.55 19,927 Band 12 393,726.363 10.54 4,149,876 Band 20 537,681.288 10.53 5,661,784 --------------- --------------- 1,272,198.860 $ 13,415,619 =============== =============== ING Salomon Brothers All Cap Contracts in accumulation period: Band 2 53,903.976 $ 10.48 $ 564,914 Band 3 3,115.839 10.35 32,249 Band 4 153,664.783 10.39 1,596,577 Band 5 413,518.279 10.37 4,288,185 Band 6 4,297,387.686 10.33 44,392,015 Band 7 5,443,579.943 10.31 56,123,309 Band 8 1,655,990.866 10.27 17,007,026 Band 9 916,699.696 10.25 9,396,172 Band 10 2,031,717.232 10.23 20,784,467 Band 11 3,750,770.420 10.21 38,295,366 Band 12 1,700,836.983 10.19 17,331,529 Band 13 3,825,922.837 10.18 38,947,894 Band 14 6,491,546.809 10.14 65,824,285 Band 15 5,137.157 10.12 51,988 Band 16 187,560.900 10.08 1,890,614 Band 17 1,285,130.726 10.06 12,928,415 Band 18 153,803.896 10.04 1,544,191 Band 19 427,055.239 10.01 4,274,823 Band 20 1,157,681.418 10.16 11,762,043 Band 21 365,262.078 10.10 3,689,147 Band 25 81,973.549 10.52 862,362 Band 30 176.527 9.83 1,735 Band 31 1,942.457 9.83 19,094 --------------- --------------- 34,404,379.296 $ 351,608,400 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers All Cap Advisor Contracts in accumulation period: Band 6 58,143.884 $ 11.51 $ 669,236 Band 7 1,801.919 11.51 20,740 Band 10 30,182.493 11.48 346,495 Band 11 2,126.107 11.48 24,408 Band 12 77,632.288 11.47 890,442 Band 20 146,821.251 11.46 1,682,572 --------------- --------------- 316,707.942 $ 3,633,893 =============== =============== ING Salomon Brothers Investors Contracts in accumulation period: Band 2 6,730.549 $ 9.40 $ 63,267 Band 3 484.124 9.28 4,493 Band 4 40,966.075 9.31 381,394 Band 5 216,015.106 9.30 2,008,940 Band 6 1,462,538.132 9.26 13,543,103 Band 7 2,001,121.219 9.24 18,490,360 Band 8 556,515.018 9.21 5,125,503 Band 9 316,145.980 9.19 2,905,382 Band 10 1,069,813.673 9.18 9,820,890 Band 11 1,335,828.516 9.16 12,236,189 Band 12 638,092.439 9.14 5,832,165 Band 13 1,265,020.963 9.12 11,536,991 Band 14 2,298,381.420 9.09 20,892,287 Band 15 2,450.947 9.07 22,230 Band 16 54,691.171 9.04 494,408 Band 17 426,633.690 9.02 3,848,236 Band 18 44,795.691 9.01 403,609 Band 19 221,511.562 8.97 1,986,959 Band 20 485,621.702 9.11 4,424,014 Band 21 172,848.300 9.06 1,566,006 Band 25 60,579.939 9.43 571,269 --------------- --------------- 12,676,786.216 $ 116,157,695 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers Investors Advisor Contracts in accumulation period: Band 6 9,701.827 $ 11.19 $ 108,563 Band 7 675.241 11.19 7,556 Band 10 11,001.413 11.16 122,776 Band 12 8,196.003 11.15 91,385 Band 20 42,121.849 11.14 469,237 --------------- --------------- 71,696.333 $ 799,517 =============== =============== ING T. Rowe Price Capital Appreciation Currently payable annuity contracts: Band 1 339.639 $ 33.63 $ 11,422 Band 2 15,773.281 32.65 514,998 Contracts in accumulation period: Band 1 40,044.500 33.63 1,346,697 Band 2 991,088.413 32.65 32,359,036 Band 3 20,241.466 30.99 627,283 Band 4 393,367.478 31.50 12,391,076 Band 5 329,192.777 31.23 10,280,690 Band 6 5,831,682.748 30.81 179,674,145 Band 7 5,304,196.986 30.54 161,990,176 Band 8 3,780,823.940 30.14 113,954,034 Band 9 658,130.809 29.87 19,658,367 Band 10 1,691,253.823 29.65 50,145,676 Band 11 5,198,973.564 29.43 153,005,792 Band 12 1,961,924.834 29.21 57,307,824 Band 13 4,221,994.487 28.99 122,395,620 Band 14 4,781,606.518 28.56 136,562,682 Band 15 11,754.018 28.35 333,226 Band 16 151,335.963 27.93 4,226,813 Band 17 711,562.292 27.72 19,724,507 Band 18 233,859.891 27.51 6,433,486 Band 19 269,799.267 27.10 7,311,560 Band 20 1,721,398.149 28.78 49,541,839 Band 21 346,357.275 28.14 9,746,494 Band 25 94,464.954 33.14 3,130,569 --------------- --------------- 38,761,167.072 $ 1,152,674,012 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING T. Rowe Price Capital Appreciation Advisor Contracts in accumulation period: Band 6 54,320.789 $ 11.01 $ 1,699,072 Band 7 3,341.553 11.00 36,757 Band 10 54,940.814 10.98 603,250 Band 11 2,346.123 10.98 25,760 Band 12 425,041.375 10.97 4,662,704 Band 20 528,050.002 10.96 5,787,428 --------------- --------------- 1,168,040.656 $ 12,814,971 =============== =============== ING T. Rowe Price Equity Income Currently payable annuity contracts: Band 1 1,143.309 $ 24.50 $ 28,011 Band 2 21,353.872 23.78 507,795 Contracts in accumulation period: Band 1 106,794.214 $ 24.50 $ 2,616,458 Band 2 1,835,224.648 23.78 43,641,642 Band 3 29,022.048 22.58 655,318 Band 4 206,839.926 22.95 4,746,976 Band 5 243,597.918 22.75 5,541,853 Band 6 3,124,477.528 22.45 70,144,521 Band 7 2,914,223.375 22.25 64,841,470 Band 8 2,139,700.119 21.95 46,966,418 Band 9 373,463.725 21.76 8,126,571 Band 10 1,235,307.976 21.60 26,682,652 Band 11 3,304,785.745 21.44 70,854,606 Band 12 1,169,276.767 21.28 24,882,210 Band 13 2,194,520.081 21.12 46,348,264 Band 14 2,908,311.365 20.81 60,521,960 Band 15 197.990 20.65 4,088 Band 16 83,643.219 20.35 1,702,140 Band 17 688,901.022 20.19 13,908,912 Band 18 127,684.773 20.04 2,558,803 Band 19 156,124.429 19.74 3,081,896
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING T. Rowe Price Equity Income (continued) Band 20 900,407.360 $ 20.96 $ 18,872,538 Band 21 261,230.997 20.50 5,355,235 Band 24 875.356 25.61 22,418 Band 25 65,916.779 24.14 1,591,231 --------------- --------------- 24,093,024.541 $ 524,203,986 =============== =============== ING T. Rowe Price Equity Income Advisor Contracts in accumulation period: Band 6 131,774.532 $ 10.77 $ 1,419,212 Band 10 68,183.906 10.75 732,977 Band 11 1,731.203 10.74 18,593 Band 12 161,897.581 10.73 1,737,161 Band 20 307,066.008 10.72 3,291,748 --------------- --------------- 670,653.230 $ 7,199,691 =============== =============== ING UBS U.S. Balanced Contracts in accumulation period: Band 2 16,606.854 $ 7.96 $ 132,191 Band 4 24,497.414 7.90 193,530 Band 5 74,030.961 7.89 584,104 Band 6 752,663.077 7.86 5,915,932 Band 7 1,292,704.182 7.85 10,147,728 Band 8 195,852.089 7.83 1,533,522 Band 9 184,411.824 7.82 1,442,100 Band 10 390,002.935 7.80 3,042,023 Band 11 619,002.102 7.79 4,822,026 Band 12 474,799.888 7.78 3,693,943 Band 13 1,010,009.813 7.77 7,847,776 Band 14 1,433,689.547 7.74 11,096,757 Band 16 34,821.373 7.71 268,473 Band 17 243,014.587 7.70 1,871,212 Band 18 38,701.818 7.69 297,617 Band 19 80,115.586 7.66 613,685
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING UBS U.S. Balanced (continued) Band 20 248,344.409 $ 7.76 $ 1,927,153 Band 21 108,550.019 7.72 838,006 Band 25 21,041.507 7.98 167,911 --------------- --------------- 7,242,859.985 $ 56,435,689 =============== =============== ING UBS U.S. Balanced Advisor Contracts in accumulation period: Band 6 16,785.583 $ 10.57 $ 177,424 Band 10 518.813 10.56 5,479 Band 12 5,222.472 10.56 55,149 Band 20 7,558.186 10.55 79,739 --------------- --------------- 30,085.054 $ 317,791 =============== =============== ING Van Kampen Equity Growth Contracts in accumulation period: Band 2 8,287.096 $ 8.76 $ 72,595 Band 4 3,927.341 8.73 34,286 Band 5 26,384.853 8.72 230,076 Band 6 273,749.840 8.71 2,384,361 Band 7 474,267.195 8.70 4,126,125 Band 8 119,307.406 8.69 1,036,781 Band 9 30,421.940 8.69 264,367 Band 10 110,862.979 8.68 962,291 Band 11 221,452.774 8.67 1,919,996 Band 12 184,736.231 8.67 1,601,663 Band 13 243,271.651 8.66 2,106,732 Band 14 361,923.534 8.65 3,130,639 Band 16 3,577.784 8.63 30,876 Band 17 68,745.384 8.62 592,585 Band 18 10,575.215 8.62 91,158 Band 19 28,301.171 8.60 243,390 Band 20 135,120.215 8.65 1,168,790 Band 21 53,797.609 8.64 464,811 Band 25 2,088.398 8.77 18,315 --------------- --------------- 2,360,798.616 $ 20,479,837 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Van Kampen Equity Growth Advisor Contracts in accumulation period: Band 6 65,742.777 $ 10.73 $ 705,420 Band 10 40,294.427 10.71 431,553 Band 11 2,424.807 10.70 25,945 Band 12 58,139.186 10.69 621,508 Band 20 236,554.303 10.68 2,526,400 --------------- --------------- 403,155.500 $ 4,310,826 =============== =============== ING Van Kampen Global Franchise Contracts in accumulation period: Band 1 312.947 $ 9.65 $ 3,020 Band 2 1,343.991 9.62 12,929 Band 4 7,523.808 9.59 72,153 Band 5 53,646.848 9.58 513,937 Band 6 623,339.263 9.57 5,965,357 Band 7 710,018.571 9.56 6,787,778 Band 8 184,985.441 9.55 1,766,611 Band 9 40,210.361 9.54 383,607 Band 10 328,558.999 9.53 3,131,167 Band 11 359,206.646 9.53 3,423,239 Band 12 172,069.840 9.52 1,638,105 Band 13 388,293.756 9.51 3,692,674 Band 14 747,902.235 9.50 7,105,071 Band 16 13,751.319 9.48 130,363 Band 17 140,883.946 9.47 1,334,171 Band 18 15,172.252 9.46 143,530 Band 19 90,572.694 9.45 855,912 Band 20 294,293.808 9.51 2,798,734 Band 21 67,164.961 9.48 636,724 Band 25 10,204.560 9.64 98,372 --------------- --------------- 4,249,456.246 $ 40,493,454 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Van Kampen Global Franchise Advisor Contracts in accumulation period: Band 6 253,139.020 $ 10.28 $ 2,602,269 Band 7 4,077.726 10.28 41,919 Band 8 246.391 10.27 2,530 Band 10 68,843.084 10.26 706,330 Band 11 1,769.381 10.25 18,136 Band 12 212,187.682 10.25 2,174,924 Band 20 401,020.902 10.24 4,106,454 --------------- --------------- 941,284.186 $ 9,652,562 =============== =============== ING Van Kampen Growth and Income Currently payable annuity contracts: Band 1 347.162 $ 21.56 $ 7,485 Band 2 5,203.704 21.13 109,954 Contracts in accumulation period: Band 1 11,051.538 21.56 238,271 Band 2 1,016,034.458 21.13 21,468,808 Band 3 38,672.252 20.39 788,527 Band 4 690,104.159 20.63 14,236,849 Band 5 261,286.871 20.50 5,356,381 Band 6 5,751,754.187 20.32 116,875,645 Band 7 2,414,847.455 20.19 48,755,770 Band 8 6,322,638.582 20.02 126,579,224 Band 9 470,109.625 19.89 9,350,480 Band 10 960,026.244 19.79 18,998,919 Band 11 6,696,510.138 19.69 131,854,285 Band 12 789,238.555 19.59 15,461,183 Band 13 1,906,953.965 19.49 37,166,533 Band 14 2,292,878.779 19.29 44,229,632 Band 15 838.302 19.19 16,087 Band 16 47,174.272 19.00 896,311 Band 17 353,336.027 18.90 6,678,051 Band 18 84,081.406 18.81 1,581,571 Band 19 97,177.376 18.62 1,809,443
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Van Kampen Growth and Income (continued) Band 20 513,247.736 $ 19.39 $ 9,951,874 Band 21 204,129.884 19.10 3,898,881 Band 24 48.633 22.22 1,081 Band 25 52,531.434 21.35 1,121,546 --------------- --------------- 30,980,222.744 $ 617,432,791 =============== =============== ING Van Kampen Growth and Income Advisor Contracts in accumulation period: Band 6 320,677.417 $ 10.92 $ 3,501,797 Band 7 10,903.467 10.92 119,066 Band 10 60,768.791 10.89 661,772 Band 11 1,868.536 10.89 20,348 Band 12 311,281.332 10.88 3,386,741 Band 20 719,952.386 10.87 7,825,882 --------------- --------------- 1,425,451.929 $ 15,515,606 =============== =============== ING Van Kampen Real Estate Currently payable annuity contracts: Band 2 2,299.980 $ 37.36 $ 85,927 Contracts in accumulation period: Band 1 11,632.465 38.48 447,617 Band 2 254,493.095 37.36 9,507,862 Band 3 3,510.658 35.46 124,488 Band 4 89,574.559 36.05 3,229,163 Band 5 78,618.018 35.74 2,809,808 Band 6 1,314,857.144 35.26 46,361,863 Band 7 1,302,782.749 34.95 45,532,257 Band 8 751,956.275 34.48 25,927,452 Band 9 160,253.652 34.18 5,477,470 Band 10 323,492.583 33.92 10,972,868 Band 11 993,132.015 33.67 33,438,755 Band 12 370,862.163 33.42 12,394,213 Band 13 826,918.072 33.17 27,428,872 Band 14 1,071,373.529 32.68 35,012,487 Band 15 681.022 32.44 22,092 Band 16 34,061.118 31.96 1,088,593 Band 17 121,221.030 31.72 3,845,131 Band 18 29,883.506 31.48 940,733
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Van Kampen Real Estate (continued) Band 19 71,047.992 $ 31.01 $ 2,203,198 Band 20 359,746.361 32.93 11,846,448 Band 21 48,364.321 32.20 1,557,331 Band 24 73.330 40.23 2,950 Band 25 15,119.115 37.92 573,317 --------------- --------------- 8,235,954.752 $ 280,830,895 =============== =============== ING Van Kampen Real Estate Advisor Contracts in accumulation period: Band 6 74,823.020 $ 12.07 $ 903,114 Band 7 11,652.281 12.06 140,527 Band 10 16,095.677 12.03 193,631 Band 12 72,794.647 12.02 874,992 Band 20 186,473.565 12.01 2,239,548 --------------- --------------- 361,839.190 $ 4,351,812 =============== =============== ING Alger Aggressive Growth Contracts in accumulation period: Band 35 35,076.615 $ 8.73 $ 306,219 Band 36 1,720.680 8.70 14,970 Band 38 1,938.324 10.67 20,682 --------------- --------------- 38,735.619 $ 341,871 =============== =============== ING Alger Growth Contracts in accumulation period: Band 35 12,627.636 $ 7.82 $ 98,748 Band 38 1,579.140 10.45 16,502 --------------- --------------- 14,206.776 $ 115,250 =============== =============== ING American Century Small Cap Value Contracts in accumulation period: Band 35 11,454.494 $ 9.55 $ 109,390 Band 36 873.064 9.52 8,312 Band 39 494.749 10.36 5,126 --------------- --------------- 12,822.307 $ 122,828 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Baron Small Cap Growth Contracts in accumulation period: Band 35 35,036.053 $ 10.47 $ 366,827 Band 36 12,493.227 10.44 130,429 Band 37 500.686 10.42 5,217 Band 39 1,813.036 10.43 18,910 --------------- --------------- 49,843.002 $ 521,383 =============== =============== ING JPMorgan Fleming International Contracts in accumulation period: Band 5 978.538 $ 10.25 $ 10,030 Band 6 8,986.588 10.25 92,113 Band 7 4,118.670 10.25 42,216 Band 8 1,968.967 10.25 20,182 Band 9 601.829 10.25 6,169 Band 10 11,719.901 10.25 120,129 Band 11 3,892.502 10.25 39,898 Band 12 5,786.668 10.25 59,313 Band 13 84,036.032 10.25 861,369 Band 14 34,661.447 10.25 355,280 Band 15 1,309.564 10.25 13,423 Band 17 2,757.482 10.24 28,237 Band 18 697.659 10.24 7,144 Band 19 8,538.207 10.24 87,431 Band 20 9,185.191 10.25 94,148 Band 21 4,607.554 10.24 47,181 Band 26 659.099 10.25 6,756 Band 27 22.823 10.25 234 Band 29 289.621 10.25 2,969 Band 35 21,115.123 9.01 190,247 Band 36 740.755 8.98 6,652 Band 38 789.607 10.55 8,330 --------------- --------------- 207,463.827 $ 2,099,451 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING JPMorgan Mid Cap Value Contracts in accumulation period: Band 9 5,075.746 $ 10.57 $ 53,651 Band 13 575.654 10.54 6,067 Band 15 16,758.376 10.51 176,131 Band 26 34,265.581 10.66 365,271 Band 27 8,418.741 10.62 89,407 Band 28 3,265.250 10.60 34,612 Band 29 59,847.857 10.59 633,789 Band 30 28,653.961 10.54 302,013 Band 31 67,900.116 10.52 714,309 Band 32 6,645.438 10.48 69,644 Band 33 7,852.459 10.45 82,058 Band 34 19,365.410 10.42 201,788 Band 35 8,473.467 10.69 90,581 Band 36 1,438.732 10.66 15,337 --------------- --------------- 268,536.788 $ 2,834,658 =============== =============== ING MFS(R) Capital Opportunities (Initial Class) Contracts in accumulation period: Band 9 12,442.079 $ 7.01 $ 87,219 Band 13 6,101.487 6.98 42,588 Band 15 23,765.748 6.95 165,172 Band 26 25,371.809 7.11 180,394 Band 27 22,945.610 7.06 161,996 Band 28 16,331.519 7.04 114,974 Band 29 67,694.550 7.03 475,893 Band 30 37,970.416 6.98 265,034 Band 31 37,003.674 6.96 257,546 Band 32 11,411.253 6.91 78,852 Band 33 1,214.920 6.88 8,359 Band 34 4,468.816 6.86 30,656 --------------- --------------- 266,721.881 $ 1,868,683 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING MFS(R) Capital Opportunities (Service Class) Contracts in accumulation period: Band 35 35,858.550 $ 7.89 $ 282,924 --------------- --------------- 35,858.550 $ 282,924 =============== =============== ING MFS(R) Global Growth Contracts in accumulation period: Band 9 1,799.948 $ 9.54 $ 17,172 Band 13 1,041.328 9.51 9,903 Band 15 1.759 9.49 17 Band 26 12,865.929 9.63 123,899 Band 27 4,027.812 9.59 38,627 Band 28 1,151.193 9.57 11,017 Band 29 12,976.263 9.56 124,053 Band 30 9,148.524 9.52 87,094 Band 31 4,731.304 9.50 44,947 Band 32 3,130.453 9.46 29,614 Band 33 3,018.908 9.43 28,468 Band 34 1,074.687 9.41 10,113 Band 35 3,127.420 9.66 30,211 Band 36 1,356.723 9.63 13,065 --------------- --------------- 59,452.251 $ 568,200 =============== =============== ING MFS Research Equity Contracts in accumulation period: Band 35 7,241.889 $ 8.23 $ 59,601 Band 37 2,041.391 8.18 16,699 Band 40 730.531 10.19 7,444 --------------- --------------- 10,013.811 $ 83,744 =============== =============== ING OpCap Balanced Value Contracts in accumulation period: Band 35 34,704.124 $ 9.28 $ 322,054 --------------- --------------- 34,704.124 $ 322,054 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING PIMCO Total Return Contracts in accumulation period: Band 35 125,388.140 $ 11.11 $ 1,393,029 Band 36 1,664.912 11.08 18,447 Band 37 1,150.475 11.05 12,713 Band 39 2,470.481 10.23 25,273 --------------- --------------- 130,671.008 $ 1,449,462 =============== =============== ING Salomon Brothers Aggressive Growth Contracts in accumulation period: Band 2 678.429 $ 9.84 $ 6,676 Band 5 3,594.310 9.83 35,332 Band 6 21,638.591 9.83 212,707 Band 7 77,557.393 9.83 762,389 Band 8 868.851 9.83 8,541 Band 9 827.332 9.83 8,133 Band 10 15,612.608 9.83 153,472 Band 11 11,385.476 9.83 111,919 Band 12 10,979.497 9.83 107,928 Band 13 3,229.240 9.83 31,743 Band 14 54,619.018 9.83 536,905 Band 15 1,539.247 9.83 15,131 Band 17 22,244.664 9.83 218,665 Band 18 1,936.372 9.83 19,035 Band 19 2,756.740 9.82 27,071 Band 20 11,491.019 9.83 112,957 Band 21 162.772 9.83 1,600 Band 29 10,647.129 9.83 104,661 Band 31 106.597 9.83 1,048 --------------- --------------- 251,875.285 $ 2,475,913 =============== =============== ING Salomon Brothers Fundamental Value Contracts in accumulation period: Band 35 43,515.971 $ 9.14 $ 397,736 Band 36 128.548 9.11 1,171 Band 38 2,756.216 10.48 28,885 --------------- --------------- 46,400.735 $ 427,792 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers Investors Value Contracts in accumulation period: Band 35 32,254.542 $ 8.76 $ 282,550 Band 37 1,116.346 8.71 9,723 --------------- --------------- 33,370.888 $ 292,273 =============== =============== ING T. Rowe Price Growth Equity Contracts in accumulation period: Band 35 161,515.375 $ 8.75 $ 1,413,260 Band 36 18,613.107 8.72 162,306 Band 37 1,597.478 8.69 13,882 Band 38 10,230.089 10.34 105,779 Band 39 502.797 10.33 5,194 --------------- --------------- 192,458.846 $ 1,700,421 =============== =============== ING UBS Tactical Asset Allocation Contracts in accumulation period: Band 35 5,456.890 $ 8.52 $ 46,493 --------------- --------------- 5,456.890 46,493 =============== =============== ING Van Kampen Comstock Contracts in accumulation period: Band 6 422,385.198 $ 9.54 $ 4,029,555 Band 7 24,074.085 9.54 229,667 Band 9 10,750.766 9.51 102,240 Band 10 93,657.448 9.51 890,682 Band 11 3,598.687 9.50 34,188 Band 12 395,669.821 9.49 3,754,907 Band 13 8,599.969 9.49 81,614 Band 15 23,516.695 9.47 222,703 Band 20 1,121,196.422 9.48 10,628,942 Band 26 49,737.311 9.60 477,478 Band 27 40,714.518 9.56 389,231 Band 28 4,728.207 9.54 45,107 Band 29 89,855.351 9.53 856,321 Band 30 45,374.674 9.49 430,606
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING Van Kampen Comstock (continued) Band 31 41,963.611 $ 9.47 $ 397,395 Band 32 24,324.280 9.43 229,378 Band 33 10,300.416 9.41 96,927 Band 34 22,574.700 9.39 211,976 Band 35 79,396.597 9.63 764,589 Band 36 7,335.201 9.60 70,418 Band 39 1,325.826 10.40 13,789 --------------- --------------- 2,521,079.783 $ 23,957,713 =============== =============== ING VIT Worldwide Growth Contracts in accumulation period: Band 2 4,652.870 $ 6.08 $ 28,289 Band 4 12,313.330 6.03 74,249 Band 5 96,202.528 6.01 578,177 Band 6 696,900.127 5.99 4,174,432 Band 7 1,168,484.511 5.98 6,987,537 Band 8 130,357.817 5.96 776,933 Band 9 112,426.067 5.95 668,935 Band 10 394,398.768 5.94 2,342,729 Band 11 391,532.559 5.93 2,321,788 Band 12 516,632.718 5.92 3,058,466 Band 13 867,061.319 5.91 5,124,332 Band 14 1,389,805.290 5.89 8,185,953 Band 15 3,247.216 5.88 19,094 Band 16 38,223.542 5.86 223,990 Band 17 242,415.304 5.85 1,418,130 Band 18 58,499.398 5.84 341,636 Band 19 102,789.519 5.82 598,235 Band 20 490,353.547 5.90 2,893,086 Band 21 112,694.258 5.87 661,515 Band 25 30,333.580 6.10 185,035 Band 26 25,365.834 6.09 154,478 Band 27 21,088.921 6.02 126,955 Band 28 3,304.662 5.99 19,795 Band 29 41,934.438 5.98 250,768
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VIT Worldwide Growth (continued) Band 30 22,211.435 $ 5.92 $ 131,492 Band 31 8,440.465 5.89 49,714 Band 32 8,272.812 5.83 48,230 Band 33 42,446.263 5.79 245,764 Band 34 2,764.658 5.76 15,924 --------------- --------------- 7,035,153.756 $ 41,705,661 =============== =============== ING VP Balanced Contracts in accumulation period: Band 35 59,840.650 $ 10.58 $ 633,114 Band 37 1,226.822 10.56 12,955 Band 38 3,556.438 10.31 36,667 Band 39 305.974 10.31 3,155 --------------- --------------- 64,929.884 $ 685,891 =============== =============== ING VP Bond Contracts in accumulation period: Band 1 7,635.872 $ 11.15 $ 85,140 Band 2 13,832.569 11.11 153,680 Band 3 440.015 11.06 4,867 Band 4 15,870.389 11.07 175,685 Band 5 71,799.135 11.07 794,816 Band 6 1,087,957.738 11.05 12,021,933 Band 7 879,053.019 11.04 9,704,745 Band 8 324,900.645 11.03 3,583,654 Band 9 51,783.734 11.02 570,657 Band 10 275,808.231 11.01 3,036,649 Band 11 674,400.792 11.00 7,418,409 Band 12 262,275.244 10.99 2,882,405 Band 13 720,135.273 10.99 7,914,287 Band 14 952,412.873 10.97 10,447,969 Band 16 26,538.893 10.95 290,601 Band 17 144,411.130 10.94 1,579,858 Band 18 73,827.521 10.93 806,935 Band 19 34,086.533 10.92 372,225
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP Bond (continued) Band 20 756,373.404 $ 10.98 $ 8,304,980 Band 21 53,820.225 10.96 589,870 Band 25 10,419.411 11.13 115,968 Band 35 113,917.804 11.15 1,270,184 Band 36 3,637.195 11.12 40,446 Band 38 1,859.027 10.27 19,092 Band 40 735.167 10.27 7,550 --------------- --------------- 6,557,931.839 $ 72,192,605 =============== =============== ING VP Growth Contracts in accumulation period: Band 35 26,618.371 $ 8.15 $ 216,940 Band 37 6,226.812 8.10 50,437 --------------- --------------- 32,845.183 $ 267,377 =============== =============== ING VP Index Plus LargeCap Contracts in accumulation period: Band 4 29,434.258 $ 8.08 $ 237,829 Band 5 61,395.272 8.07 495,460 Band 6 316,190.702 8.06 2,548,497 Band 7 469,369.642 8.05 3,778,426 Band 8 64,547.227 8.03 518,314 Band 9 33,778.038 8.02 270,900 Band 10 130,428.169 8.01 1,044,730 Band 11 391,326.676 8.00 3,130,613 Band 12 65,342.363 7.99 522,085 Band 13 170,197.246 7.98 1,358,174 Band 14 455,758.437 7.96 3,627,837 Band 15 32,381.462 7.96 257,756 Band 16 8,238.395 7.94 65,413 Band 17 177,267.372 7.93 1,405,730 Band 18 13,900.472 7.92 110,092 Band 19 116,011.206 7.90 916,489
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP Index Plus LargeCap (continued) Band 20 195,114.843 $ 7.97 $ 1,555,065 Band 21 26,558.478 7.95 211,140 Band 26 263,891.043 8.14 2,148,073 Band 27 71,843.238 8.08 580,493 Band 28 34,505.587 8.05 277,770 Band 29 327,232.293 8.05 2,634,220 Band 30 75,143.991 7.99 600,400 Band 31 48,436.925 7.96 385,558 Band 32 27,977.659 7.91 221,303 Band 33 18,966.907 7.88 149,459 Band 34 19,670.564 7.85 154,414 Band 35 681,557.157 8.17 5,568,322 Band 36 30,716.272 8.14 250,030 Band 37 10,674.312 8.11 86,569 Band 38 11,395.447 10.29 117,259 Band 39 5,508.972 10.29 56,687 -------------- --------------- 4,384,760.625 $ 35,285,107 ============== =============== ING VP Index Plus MidCap Contracts in accumulation period: Band 9 33,018.35 $ 9.87 $ 325,888 Band 13 13,562.445 9.83 133,319 Band 15 33,652.890 9.80 329,798 Band 26 195,200.909 10.02 1,955,913 Band 27 95,872.102 9.95 953,927 Band 28 30,496.358 9.92 302,524 Band 29 189,864.711 9.91 1,881,559 Band 30 139,400.342 9.84 1,371,699 Band 31 82,815.651 9.81 812,422 Band 32 23,962.319 9.74 233,393 Band 33 17,134.370 9.70 166,203 Band 34 20,100.673 9.67 194,374
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP Index Plus MidCap (continued) Band 35 249,734.418 $ 10.06 $ 2,512,328 Band 36 31,981.564 10.02 320,455 Band 37 1,568.324 9.98 15,652 Band 38 6,849.479 10.56 72,330 Band 39 2,398.983 10.56 25,333 --------------- --------------- 1,167,613.573 $ 11,607,117 =============== =============== ING VP Index Plus SmallCap Contracts in accumulation period: Band 9 38,475.087 $ 10.12 $ 389,368 Band 13 10,056.812 10.07 101,272 Band 15 16,508.284 10.04 165,743 Band 26 134,891.679 10.27 1,385,338 Band 27 82,500.806 10.20 841,508 Band 28 16,076.910 10.16 163,341 Band 29 158,949.618 10.15 1,613,339 Band 30 92,121.771 10.08 928,587 Band 31 74,605.223 10.05 749,782 Band 32 21,879.509 9.98 218,357 Band 33 18,442.495 9.94 183,318 Band 34 20,899.706 9.90 206,907 Band 35 121,335.596 10.31 1,250,970 Band 36 3,167.027 10.27 32,525 Band 37 541.596 10.23 5,541 Band 39 591.526 10.54 6,235 --------------- --------------- 811,043.645 $ 8,242,131 =============== =============== ING VP International Equity Contracts in accumulation period: Band 35 6,882.143 $ 8.23 $ 56,640 --------------- --------------- 6,882.143 $ 56,640 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP Small Companu Contracts in accumulation period: Band 35 54,643.419 $ 9.33 $ 509,823 Band 36 4,206.515 9.30 39,121 Band 37 3,097.695 9.28 28,747 Band 38 5,282.323 10.70 56,521 Band 39 1,965.812 10.70 21,034 Band 40 460.540 10.70 4,928 --------------- --------------- 69,656.304 $ 660,174 =============== =============== ING VP Value Opportunity Contracts in accumulation period: Band 9 4,007.510 $ 7.16 $ 28,694 Band 13 1,596.110 7.13 11,380 Band 15 3,065.091 7.11 21,793 Band 26 44,752.397 7.27 325,350 Band 27 17,265.834 7.22 124,659 Band 28 7,107.926 7.20 51,177 Band 29 50,391.852 7.19 362,317 Band 30 30,695.307 7.14 219,164 Band 31 5,412.945 7.12 38,540 Band 32 20,856.990 7.07 147,459 Band 33 1,526.390 7.04 10,746 Band 34 16,767.905 7.01 117,543 Band 35 37,518.214 7.30 273,883 Band 36 159.067 7.27 1,156 --------------- --------------- 241,123.538 $ 1,733,861 =============== =============== ING VP Convertible Contracts in accumulation period: Band 9 7,734.491 $ 10.83 $ 83,765 Band 13 4,750.123 10.79 51,254 Band 15 5,808.591 10.75 62,442 Band 26 81,936.767 10.99 900,485 Band 27 32,816.944 10.92 358,361 Band 28 3,743.904 10.88 40,734
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP Convertible (continued) Band 29 59,168.156 $ 10.87 $ 643,162 Band 30 43,874.550 10.80 473,845 Band 31 7,544.442 10.76 81,178 Band 32 24,412.068 10.69 260,965 Band 33 20,675.578 10.64 219,988 Band 34 3,058.722 10.61 32,453 --------------- --------------- 295,524.696 $ 3,208,632 =============== =============== ING VP Growth and Income Contracts in accumulation period: Band 35 121,951.584 $ 10.77 $ 1,313,419 Band 38 4,264.117 10.26 43,750 --------------- --------------- 126,215.701 $ 1,357,169 =============== =============== ING VP Growth Opportunities Contracts in accumulation period: Band 4 3,376.443 $ 6.20 $ 20,934 Band 5 24,402.517 6.19 151,052 Band 6 286,551.077 6.18 1,770,886 Band 7 612,566.757 6.17 3,779,537 Band 8 108,386.612 6.15 666,578 Band 9 39,328.948 6.15 241,873 Band 10 211,886.112 6.14 1,300,981 Band 11 251,505.822 6.13 1,541,731 Band 12 218,657.816 6.12 1,338,186 Band 13 347,452.057 6.11 2,122,932 Band 14 575,288.993 6.10 3,509,263 Band 16 14,377.054 6.08 87,412 Band 17 118,444.665 6.07 718,959 Band 18 21,800.844 6.06 132,113 Band 19 85,336.298 6.05 516,285 Band 20 274,361.972 6.11 1,676,352 Band 21 48,469.999 6.08 294,698 Band 25 3,212.799 6.25 20,080 Band 35 5,351.655 6.27 33,555 --------------- --------------- 3,250,758.440 $ 19,923,407 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP International Value Contracts in accumulation period: Band 35 36,021.660 $ 9.70 $ 349,410 Band 36 351.025 9.67 3,394 Band 38 776.106 10.73 8,328 --------------- --------------- 37,148.791 $ 361,132 =============== =============== ING VP Large Company Value Contracts in accumulation period: Band 9 8,992.532 $ 8.91 $ 80,123 Band 13 3,392.700 8.87 30,093 Band 15 7,516.338 8.84 66,444 Band 26 30,299.533 9.04 273,908 Band 27 24,445.871 8.98 219,524 Band 28 14,120.587 8.95 126,379 Band 29 50,984.153 8.94 455,798 Band 30 19,533.804 8.88 173,460 Band 31 9,240.336 8.85 81,777 Band 32 3,933.658 8.79 34,577 Band 33 10,206.005 8.75 89,303 Band 34 6,290.373 8.72 54,852 --------------- --------------- 188,955.890 $ 1,686,238 =============== =============== ING VP LargeCap Growth Contracts in accumulation period: Band 9 5,005.227 $ 7.27 $ 36,388 Band 13 380.502 7.24 2,755 Band 15 11,810.676 7.21 85,155 Band 26 77,848.758 7.38 574,524 Band 27 35,016.031 7.33 256,668 Band 28 6,658.764 7.30 48,609 Band 29 52,351.213 7.29 381,640 Band 30 40,583.907 7.24 293,827
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP LargeCap Growth (continued) Band 31 18,946.653 $ 7.22 $ 136,795 Band 32 5,667.865 7.17 40,639 Band 33 2,317.559 7.14 16,547 Band 34 2,008.009 7.12 14,297 --------------- --------------- 258,595.164 $ 1,887,844 =============== =============== ING VP MagnaCap Contracts in accumulation period: Band 2 5,811.613 $ 8.15 $ 47,365 Band 4 4,160.013 8.10 33,696 Band 5 15,976.529 8.09 129,250 Band 6 291,116.740 8.07 2,349,312 Band 7 490,703.352 8.06 3,955,069 Band 8 42,805.122 8.04 344,153 Band 9 39,474.495 8.03 316,980 Band 10 203,558.631 8.02 1,632,540 Band 11 192,176.773 8.01 1,539,336 Band 12 132,420.577 8.00 1,059,365 Band 13 251,979.753 7.99 2,013,318 Band 14 361,923.617 7.97 2,884,531 Band 15 4,535.600 7.96 36,103 Band 16 21,885.449 7.94 173,770 Band 17 59,770.619 7.93 473,981 Band 18 12,185.579 7.92 96,510 Band 19 17,081.603 7.90 134,945 Band 20 163,711.732 7.98 1,306,420 Band 21 31,958.529 7.95 254,070 Band 25 5,401.293 8.17 44,129 Band 26 27,509.795 8.16 224,480 Band 27 3,804.833 8.10 30,819 Band 28 4,976.938 8.07 40,164 Band 29 26,644.023 8.06 214,751 Band 30 7,881.218 8.00 63,050
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ING VP MagnaCap (continued) Band 31 11,335.671 $ 7.97 $ 90,345 Band 32 1,471.448 7.92 11,654 Band 34 247.663 7.85 1,944 --------------- --------------- 2,432,509.208 $ 19,502,050 =============== =============== ING VP MidCap Opportunities Contracts in accumulation period: Band 35 28,408.570 $ 8.81 $ 250,280 --------------- --------------- 28,408.570 $ 250,280 =============== =============== ING VP SmallCap Opportunities Contracts in accumulation period: Band 2 8,630.106 $ 5.74 $ 49,537 Band 4 19,843.902 5.70 113,110 Band 5 149,148.983 5.69 848,658 Band 6 1,527,979.918 5.68 8,678,926 Band 7 2,016,405.621 5.67 11,433,020 Band 8 193,158.009 5.66 1,093,274 Band 9 67,575.406 5.65 381,801 Band 10 813,182.761 5.65 4,594,483 Band 11 870,835.009 5.64 4,911,509 Band 12 898,354.291 5.63 5,057,735 Band 13 1,341,237.679 5.63 7,551,168 Band 14 2,015,369.944 5.61 11,306,225 Band 15 4,604.837 5.60 25,787 Band 16 77,038.199 5.59 430,644 Band 17 359,413.401 5.58 2,005,527 Band 18 52,703.807 5.58 294,087 Band 19 186,607.698 5.56 1,037,539 Band 20 929,948.421 5.62 5,226,310 Band 21 206,789.718 5.60 1,158,022 Band 25 65,474.421 5.75 376,478 Band 35 19,271.623 5.77 111,197 --------------- --------------- 11,823,573.754 $ 66,685,037 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- INVESCO VIF - Financial Services Contracts in accumulation period: Band 1 532.426 $ 9.13 $ 4,861 Band 2 2,023.366 9.09 18,392 Band 3 645.750 9.02 5,825 Band 4 4,472.622 9.04 40,433 Band 5 17,781.092 9.03 160,563 Band 6 753,750.575 9.01 6,791,293 Band 7 1,070,512.140 9.00 9,634,609 Band 8 134,662.950 8.98 1,209,273 Band 9 49,075.630 8.97 440,208 Band 10 296,108.504 8.96 2,653,132 Band 11 331,044.880 8.95 2,962,852 Band 12 233,695.468 8.94 2,089,237 Band 13 553,000.343 8.93 4,938,293 Band 14 923,190.515 8.91 8,225,627 Band 15 2,626.143 8.90 23,373 Band 16 60,398.709 8.88 536,341 Band 17 94,168.793 8.87 835,277 Band 18 10,431.114 8.86 92,420 Band 19 42,699.765 8.84 377,466 Band 20 382,488.177 8.92 3,411,795 Band 21 80,590.441 8.89 716,449 Band 25 6,492.623 9.11 59,148 Band 26 35,460.168 9.10 322,688 Band 27 13,976.669 9.04 126,349 Band 28 4,770.579 9.01 42,983 Band 29 50,014.957 9.00 450,135 Band 30 32,389.326 8.94 289,561 Band 31 18,545.631 8.91 165,242 Band 32 4,197.532 8.85 37,148 Band 33 4,471.155 8.81 39,391 Band 34 722.124 8.78 6,340 --------------- --------------- 5,214,940.167 $ 46,706,704 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- INVESCO VIF - Health Sciences Contracts in accumulation period: Band 1 9,644.641 $ 8.80 $ 84,873 Band 2 1,998.517 8.76 17,507 Band 3 516.922 8.69 4,492 Band 4 12,150.611 8.71 105,832 Band 5 50,329.371 8.70 437,866 Band 6 942,364.871 8.68 8,179,727 Band 7 1,505,388.526 8.67 13,051,719 Band 8 162,106.073 8.65 1,402,218 Band 9 89,068.025 8.65 770,438 Band 10 361,657.420 8.64 3,124,720 Band 11 601,358.427 8.63 5,189,723 Band 12 415,766.447 8.62 3,583,907 Band 13 718,413.392 8.61 6,185,539 Band 14 1,288,826.915 8.59 11,071,023 Band 15 4,414.366 8.58 37,875 Band 16 53,455.023 8.56 457,575 Band 17 214,738.633 8.55 1,836,015 Band 18 51,105.490 8.54 436,441 Band 19 102,433.117 8.52 872,730 Band 20 587,929.384 8.60 5,056,193 Band 21 155,317.823 8.57 1,331,074 Band 25 14,378.652 8.78 126,245 Band 26 53,350.555 8.77 467,884 Band 27 26,696.647 8.71 232,528 Band 28 9,044.757 8.68 78,508 Band 29 85,129.653 8.67 738,074 Band 30 574,635.760 8.62 470,960 Band 31 70,505.197 8.59 605,640 Band 32 21,837.705 8.53 186,276 Band 33 8,229.246 8.49 69,866 Band 34 4,725.225 8.46 39,975 --------------- --------------- 7,677,517.391 $ 66,253,443 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- INVESCO VIF - Leisure Contracts in accumulation period: Band 4 5,819.196 $ 9.53 $ 55,457 Band 5 25,987.447 9.52 247,400 Band 6 284,755.522 9.51 2,708,025 Band 7 394,119.249 9.50 3,744,133 Band 8 71,531.704 9.49 678,836 Band 9 27,752.500 9.48 263,094 Band 10 145,409.689 9.47 1,377,030 Band 11 100,480.083 9.47 951,546 Band 12 147,916.096 9.46 1,399,286 Band 13 220,600.141 9.45 2,084,671 Band 14 411,183.143 9.44 3,881,569 Band 15 4,129.396 9.43 38,940 Band 16 15,452.862 9.42 145,566 Band 17 71,112.257 9.41 669,166 Band 18 71,477.613 9.41 672,604 Band 19 18,309.561 9.39 171,927 Band 20 262,895.761 9.45 2,484,365 Band 21 39,359.039 9.43 371,156 Band 26 2,103.900 9.57 20,134 Band 27 5,903.955 9.53 56,265 Band 28 789.266 9.51 7,506 Band 29 23,857.912 9.50 226,650 Band 30 12,342.235 9.46 116,758 Band 31 4,463.718 9.44 42,137 Band 32 1,691.283 9.40 15,898 Band 33 902.991 9.37 8,461 Band 34 1,786.338 9.35 16,702 --------------- --------------- 2,372,132.857 $ 22,455,282 =============== =============== INVESCO VIF - Utilities Contracts in accumulation period: Band 1 32.022 $ 6.92 $ 222 Band 2 415.595 6.89 2,863
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- INVESCO VIF - Utilities (continued) Band 4 3,310.954 $ 6.85 $ 22,680 Band 5 23,366.802 6.84 159,829 Band 6 302,852.759 6.83 2,068,484 Band 7 401,919.238 6.82 2,741,089 Band 8 121,161.711 6.81 825,111 Band 9 64,986.460 6.80 441,908 Band 10 151,116.697 6.79 1,026,082 Band 11 317,616.089 6.78 2,153,437 Band 12 194,793.899 6.77 1,318,755 Band 13 304,872.847 6.77 2,063,989 Band 14 472,314.362 6.75 3,188,122 Band 15 3,698.211 6.74 24,926 Band 16 9,224.814 6.73 62,083 Band 17 106,463.312 6.72 715,433 Band 18 8,771.315 6.71 58,856 Band 19 28,531.769 6.70 191,163 Band 20 283,822.945 6.76 1,918,643 Band 21 60,661.001 6.74 408,855 Band 26 26,970.885 6.90 186,099 Band 27 23,527.089 6.85 161,161 Band 28 2,158.293 6.83 14,741 Band 29 60,424.799 6.82 412,097 Band 30 17,497.643 6.77 118,459 Band 31 8,404.734 6.75 56,732 Band 32 591.114 6.71 3,966 Band 33 1,086.104 6.68 7,255 Band 34 3,098.557 6.65 20,605 --------------- --------------- 3,003,692.020 $ 20,373,645 =============== =============== Janus Aspen Series Balanced Contracts in accumulation period: Band 35 401,903.086 $ 9.80 $ 3,938,650 Band 36 22,424.549 9.76 218,864
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Janus Aspen Series Balanced (continued) Band 37 8,982.593 $ 9.73 $ 87,401 Band 38 919.456 10.24 9,415 Band 39 623.077 10.24 6,380 --------------- --------------- 434,852.761 $ 4,260,710 =============== =============== Janus Aspen Series Flexible Income Contracts in accumulation period: Band 35 143,290.209 $ 11.54 $ 1,653,569 Band 36 6,677.814 11.50 76,795 Band 37 1,105.729 11.47 12,683 Band 39 1,906.890 10.27 19,584 --------------- --------------- 152,980.642 $ 1,762,631 =============== =============== Janus Aspen Series Growth Contracts in accumulation period: Band 35 85,819.668 $ 8.31 $ 713,161 Band 37 2,288.822 8.26 18,906 Band 38 9,689.167 10.35 100,283 --------------- --------------- 97,797.657 $ 832,350 =============== =============== Janus Aspen Series Worldwide Growth Contracts in accumulation period: Band 9 6,044.312 $ 7.41 $ 44,788 Band 13 8,389.558 7.37 61,831 Band 15 11,273.494 7.35 82,860 Band 26 127,091.555 7.52 955,728 Band 27 56,832.436 7.47 424,538 Band 28 15,030.979 7.44 111,830 Band 29 161,799.680 7.43 1,202,172 Band 30 74,011.454 7.38 546,205 Band 31 63,644.864 7.36 468,426 Band 32 8,321.091 7.31 60,827 Band 33 15,663.142 7.28 114,028 Band 34 3,125.574 7.25 22,660
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Janus Aspen Series Worldwide Growth (continued) Band 35 290,769.316 $ 7.55 $ 2,195,308 Band 36 7,649.116 7.52 5,521 Band 37 4,205.522 7.49 31,499 Band 38 2,333.211 10.31 24,055 Band 39 1,136.290 10.30 11,704 --------------- --------------- 857,321.594 $ 6,415,980 =============== =============== Colonial Small Cap Value Contracts in accumulation period: Band 4 4,944.145 $ 11.99 $ 59,280 Band 5 5,854.178 11.98 70,133 Band 6 117,678.015 11.98 1,409,783 Band 7 135,331.608 11.98 1,621,273 Band 8 51,201.537 11.97 612,882 Band 9 4,315.122 11.97 51,652 Band 10 53,956.426 11.97 645,858 Band 11 73,669.089 11.96 881,082 Band 12 62,507.886 11.96 747,594 Band 13 67,951.742 11.96 812,703 Band 14 155,655.499 11.95 1,860,083 Band 16 6,249.507 11.95 74,682 Band 17 54,486.367 11.94 650,567 Band 18 2,863.967 11.94 34,196 Band 19 7,947.186 11.94 94,889 Band 20 71,398.341 11.96 853,924 Band 21 27,785.071 11.95 332,032 --------------- --------------- 903,795.686 $ 10,812,613 =============== =============== Liberty Asset Allocation Contracts in accumulation period: Band 6 10,814.425 $ 11.12 $ 120,256 Band 7 24,518.117 11.11 272,396
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Liberty Asset Allocation (continued) Band 8 3,320.146 $ 11.11 $ 36,887 Band 9 6,248.380 11.11 69,420 Band 11 2,444.038 11.10 27,129 Band 13 3,077.084 11.10 34,156 --------------- --------------- 50,422.190 $ 560,244 =============== =============== Liberty Equity Contracts in accumulation period: Band 6 11,643.369 $ 7.35 $ 85,579 Band 7 44,153.897 7.34 324,090 Band 8 8,748.408 7.31 63,951 Band 9 3,451.831 7.29 25,164 Band 11 4,229.557 7.26 30,707 Band 13 6,483.340 7.24 46,939 Band 14 2,635.756 7.21 19,004 --------------- --------------- 81,346.158 $ 595,434 =============== =============== Liberty Federal Securities Contracts in accumulation period: Band 6 4,048.806 $ 10.12 $ 40,974 Band 7 3,091.373 10.12 31,285 Band 9 1,206.535 10.11 12,198 Band 11 302.468 10.11 3,058 --------------- --------------- 8,649.182 $ 87,515 =============== =============== Liberty Small Company Growth Contracts in accumulation period: Band 6 1,432.100 $ 12.95 $ 18,546 Band 7 1,019.053 12.94 13,187 Band 8 1,232.256 12.94 15,945 Band 9 413.177 12.94 5,347 Band 13 944.299 12.92 12,200 --------------- --------------- 5,040.885 $ 65,225 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Oppenheimer Global Securities Contracts in accumulation period: Band 35 140,767.486 $ 9.32 $ 1,311,953 Band 36 26,378.362 9.29 245,055 Band 37 7,513.168 9.26 69,572 Band 38 8,998.179 10.76 96,820 Band 39 4,307.417 10.76 46,348 Band 40 459.648 10.76 4,946 --------------- --------------- 180,424.260 $ 1,774,694 =============== =============== Oppenheimer Strategic Bond Contracts in accumulation period: Band 35 16,337.789 $ 11.94 $ 195,073 Band 36 694.854 11.90 8,269 Band 38 1,829.126 10.52 19,242 Band 40 954.929 10.51 10,036 --------------- --------------- 19,816.698 $ 232,620 =============== =============== PIMCO High Yield Contracts in accumulation period: Band 1 2,423.621 $ 11.74 $ 28,453 Band 2 110,637.828 11.61 1,284,505 Band 4 397,522.184 11.45 4,551,629 Band 5 426,990.909 11.42 4,876,236 Band 6 8,132,492.462 11.36 92,385,114 Band 7 6,233,739.938 11.33 70,628,273 Band 8 3,584,426.054 11.27 40,396,482 Band 9 750,468.772 11.23 8,427,764 Band 10 2,738,980.544 11.20 30,676,582 Band 11 6,772,734.041 11.17 75,651,439 Band 12 2,062,053.764 11.14 22,971,279 Band 13 5,699,177.829 11.11 63,317,866 Band 14 5,666,718.727 11.05 62,617,242
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- PIMCO High Yield (continued) Band 15 34,766.915 $ 11.02 $ 383,131 Band 16 340,546.339 10.96 3,732,388 Band 17 1,061,076.201 10.93 11,597,563 Band 18 158,558.726 10.90 1,728,290 Band 19 374,173.354 10.84 4,056,039 Band 20 1,742,557.813 11.08 19,307,541 Band 21 481,138.013 10.99 5,287,707 Band 24 3,970.461 11.93 47,368 Band 25 133,774.939 11.68 1,562,491 Band 26 247,536.162 11.64 2,881,321 Band 27 63,736.061 11.45 729,778 Band 28 60,987.159 11.36 692,814 Band 29 266,400.293 11.33 3,018,315 Band 30 150,426.690 11.14 1,675,753 Band 31 67,524.921 11.05 746,150 Band 32 62,252.416 10.87 676,684 Band 33 58,597.207 10.76 630,506 Band 34 25,874.552 10.67 276,081 --------------- --------------- 47,912,264.895 $ 536,842,784 =============== =============== PIMCO StocksPLUS Growth and Income Contracts in accumulation period: Band 1 396.396 $ 9.58 $ 3,797 Band 2 57,929.129 9.47 548,589 Band 3 1,738.807 9.29 16,154 Band 4 132,551.288 9.34 1,238,029 Band 5 134,133.532 9.32 1,250,125 Band 6 3,856,031.365 9.27 35,745,411 Band 7 1,885,681.503 9.24 17,423,697 Band 8 2,755,180.408 9.19 25,320,108 Band 9 394,653.759 9.16 3,615,028 Band 10 698,980.908 9.14 6,388,685 Band 11 4,413,331.733 9.11 40,205,452
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- PIMCO StocksPLUS Growth and Income Band 12 818,931.359 $ 9.09 $ 7,444,086 Band 13 1,576,132.284 9.06 14,279,758 Band 14 1,796,238.839 9.01 16,184,112 Band 16 14,893.488 8.94 133,148 Band 17 268,044.348 8.92 2,390,956 Band 18 45,047.619 8.89 400,473 Band 19 124,514.358 8.84 1,100,707 Band 20 281,259.336 9.04 2,542,584 Band 21 150,385.466 8.97 1,348,958 Band 25 20,084.645 9.52 191,206 --------------- --------------- 19,426,140.570 $ 177,771,063 =============== =============== Pioneer Equity-Income VCT Contracts in accumulation period: Band 35 54,908.583 $ 9.01 $ 494,726 Band 36 27,477.565 8.98 246,749 Band 37 3,658.063 8.96 32,776 Band 38 2,083.240 10.18 21,207 Band 39 5,598.708 10.18 56,995 Band 40 735.038 10.18 7,483 --------------- --------------- 94,461.197 $ 859,936 =============== =============== Pioneer Fund VCT Contracts in accumulation period: Band 1 1,283.658 $ 8.24 $ 10,577 Band 2 617.925 8.20 5,067 Band 4 4,284.520 8.16 34,962 Band 5 77,678.873 8.15 633,083 Band 6 796,860.449 8.13 6,478,475 Band 7 674,935.126 8.12 5,480,473 Band 8 222,233.175 8.10 1,800,089 Band 9 69,056.792 8.09 558,669 Band 10 452,156.484 8.08 3,653,424
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Pioneer Fund VCT (continued) Band 11 458,947.532 $ 8.07 $ 3,703,707 Band 12 286,634.793 8.06 2,310,276 Band 13 540,741.301 8.06 4,358,375 Band 14 1,028,578.666 8.04 8,269,772 Band 15 23,777.976 8.03 190,937 Band 16 6,973.450 8.01 55,857 Band 17 261,033.624 8.00 2,088,269 Band 18 22,331.839 7.99 178,431 Band 19 32,326.763 7.97 257,644 Band 20 396,956.260 8.05 3,195,498 Band 21 97,373.428 8.02 780,935 Band 25 3,257.749 8.22 26,779 Band 26 83,110.186 8.21 682,335 Band 27 26,116.491 8.16 213,111 Band 28 13,849.126 8.13 112,593 Band 29 91,096.933 8.12 739,707 Band 30 53,062.606 8.06 427,685 Band 31 33,268.305 8.04 267,477 Band 32 14,700.177 7.98 117,307 Band 33 2,491.778 7.95 19,810 Band 34 4,970.135 7.92 39,363 Band 35 23,311.340 8.25 192,319 --------------- --------------- 5,804,017.460 $ 46,883.006 =============== =============== Pioneer Mid-Cap Value VCT Contracts in accumulation period: Band 1 265.422 $ 11.19 $ 2,970 Band 2 21,348.434 11.14 237,822 Band 4 34,869.306 11.09 386,701 Band 5 114,330.145 11.08 1,266,778 Band 6 1,628,717.000 11.06 18,013,610 Band 7 1,681,956.165 11.05 18,585,616 Band 8 547,668.705 11.03 6,040,786
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Pioneer Mid-Cap Value VCT (continued) Band 9 131,130.478 $ 11.01 $ 1,443,747 Band 10 881,936.767 11.00 9,701,304 Band 11 1,072,929.535 10.99 11,791,496 Band 12 543,935.889 10.98 5,972,416 Band 13 1,090,208.664 10.97 11,959,589 Band 14 1,686,415.917 10.95 18,466,254 Band 15 1,363.989 10.94 14,922 Band 16 44,953.742 10.92 490,895 Band 17 422,188.745 10.91 4,606,079 Band 18 63,006.192 10.90 686,767 Band 19 144,342.582 10.88 1,570,447 Band 20 843,095.029 10.96 9,240,322 Band 21 186,320.302 10.93 2,036,481 Band 25 15,131.392 11.16 168,866 Band 35 27,713.102 11.20 310,387 Band 36 1,728.835 11.15 19,277 Band 37 548.281 11.12 6,097 Band 38 1,378.255 10.43 14,375 --------------- --------------- 11,187,482.873 $ 123,034,004 =============== =============== Pioneer Small Company VCT Contracts in accumulation period: Band 9 16,499.775 $ 8.75 $ 143,507 Band 13 4,514.149 8.71 39,318 Band 15 22,230.421 8.68 192,960 Band 26 109,774.589 8.88 974,798 Band 27 40,524.175 8.82 357,423 Band 28 9,600.595 8.79 84,389 Band 29 146,522.028 8.78 1,286,463 Band 30 58,390.372 8.72 509,164 Band 31 88,553.422 8.69 769,529 Band 32 20,202.326 8.63 174,346 Band 33 9,533.057 8.59 81,889 Band 34 22,123.366 8.57 189,597 --------------- --------------- 548,369.275 $ 4,803,383 =============== ===============
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ProFund VP Bull Contracts in accumulation period: Band 2 2,237.603 $ 7.50 $ 16,782 Band 4 19,107.500 7.46 142,542 Band 5 21,256.380 7.45 158,360 Band 6 1,256,666.897 7.43 9,337,035 Band 7 1,088,697.015 7.42 8,078,132 Band 8 336,663.995 7.40 2,491,314 Band 9 72,550.838 7.39 536,151 Band 10 145,576.927 7.38 1,074,358 Band 11 441,987.906 7.37 3,257,451 Band 12 444,668.946 7.37 3,277,210 Band 13 761,284.934 7.36 5,603,057 Band 14 1,013,207.387 7.34 7,436,942 Band 15 304.024 7.33 2,228 Band 16 52,746.696 7.31 385,578 Band 17 66,719.415 7.30 487,052 Band 18 68,908.248 7.29 502,341 Band 19 54,195.905 7.28 394,546 Band 20 454,480.327 7.35 3,340,430 Band 21 81,410.458 7.32 595,925 Band 25 12,152.366 7.52 91,386 Band 26 1,317.555 7.51 9,895 Band 29 6,989.928 7.42 51,865 Band 30 4,733.596 7.36 34,839 Band 31 1,312.828 7.34 9,636 Band 32 252.220 7.29 1,839 --------------- --------------- 6,409,429.894 $ 47,316,894 =============== =============== ProFund VP Europe 30 Contracts in accumulation period: Band 2 1,421.982 $ 6.97 $ 9,911 Band 3 2,081.203 6.91 14,381 Band 4 2,995.147 6.93 20,756 Band 5 36,642.573 6.92 253,567
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ProFund VP Europe 30 (continued) Band 6 236,594.779 $ 6.90 $ 1,632,504 Band 7 463,243.548 6.89 3,191,748 Band 8 48,086.222 6.88 330,833 Band 9 24,823.364 6.87 170,537 Band 10 74,747.353 6.86 512,767 Band 11 185,294.717 6.85 1,269,269 Band 12 129,523.690 6.84 885,942 Band 13 189,021.105 6.83 1,291,014 Band 14 217,536.245 6.82 1,483,597 Band 16 134,198.331 6.79 911,207 Band 17 40,757.519 6.78 276,336 Band 18 1,278.815 6.78 8,670 Band 19 35,939.147 6.76 242,949 Band 20 154,459.956 6.83 1,054,961 Band 21 19,925.124 6.80 135,491 Band 25 203.928 6.99 1,425 Band 27 325.284 6.93 2,254 Band 29 9,501.921 6.89 65,468 Band 30 1,094.476 6.84 7,486 Band 32 119.081 6.77 806 --------------- --------------- 2,009,815.510 $ 13,773,879 =============== =============== ProFund VP Rising Rates Opportunity Contracts in accumulation period: Band 6 30,856.718 $ 9.27 $ 286,042 Band 7 30,110.722 9.27 279,126 Band 8 90,948.588 9.26 842,184 Band 9 2,193.983 9.26 20,316 Band 10 1,439.991 9.26 13,334 Band 11 312,575.897 9.26 2,894,453 Band 12 11,806.616 9.26 109,329 Band 13 10,410.068 9.26 96,397 Band 14 553,565.958 9.26 5,126,021 Band 17 5,533.064 9.26 51,236
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ProFund VP Rising Rates Opportunity (continued) Band 20 346,134.469 $ 9.26 $ 3,205,205 Band 21 1,507.758 9.26 13,962 Band 26 1,021.626 9.27 9,470 Band 27 6,608.458 9.27 61,260 Band 29 490.513 9.27 4,547 Band 30 435.333 9.26 4,031 --------------- --------------- 1,405,639.762 $ 13,016,913 =============== =============== ProFund VP Small Cap Contracts in accumulation period: Band 2 15,361.278 $ 9.02 $ 138,559 Band 4 19,507.205 8.96 174,785 Band 5 84,716.666 8.95 758,214 Band 6 2,367,571.366 8.93 21,142,412 Band 7 1,951,183.809 8.92 17,404,560 Band 8 272,093.533 8.90 2,421,632 Band 9 139,634.212 8.89 1,241,348 Band 10 475,619.284 8.88 4,223,499 Band 11 928,752.082 8.86 8,228,743 Band 12 352,833.183 8.85 3,122,574 Band 13 892,477.922 8.84 7,889,505 Band 14 1,241,576.158 8.82 10,950,702 Band 15 1,675.538 8.81 14,761 Band 16 134,739.759 8.79 1,184,362 Band 17 204,238.148 8.78 1,793,211 Band 18 36,741.294 8.77 322,221 Band 19 110,175.517 8.75 964,036 Band 20 475,812.087 8.83 4,201,421 Band 21 56,615.373 8.80 498,215 Band 25 6,912.805 9.04 62,492 Band 26 3,422.595 9.03 30,906 Band 29 15,892.574 8.92 141,762 Band 30 13,058.134 8.85 115,564
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Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- ProFund VP Small Cap (continued) Band 31 8,968.501 $ 8.82 $ 79,102 Band 32 4,685.933 8.76 41,049 Band 33 4,790.208 8.71 41,723 Band 34 1,016.195 8.68 8,821 --------------- --------------- 9,820,071.359 $ 87,196,179 =============== =============== Prudential Jennison Contracts in accumulation period: Band 2 14,166.982 $ 5.01 $ 70,977 Band 4 18,345.586 4.97 91,178 Band 5 226,725.096 4.96 1,124,556 Band 6 1,072,952.063 4.94 5,300,383 Band 7 1,611,171.438 4.94 7,959,187 Band 8 339,945.901 4.92 1,672,534 Band 9 226,057.933 4.91 1,109,944 Band 10 645,056.407 4.90 3,160,776 Band 11 956,670.227 4.89 4,678,117 Band 12 697,759.749 4.88 3,405,068 Band 13 926,297.144 4.88 4,520,330 Band 14 2,339,997.126 4.86 11,372,386 Band 15 3,604.131 4.85 17,480 Band 16 21,380.840 4.83 103,269 Band 17 405,817.036 4.83 1,960,096 Band 18 164,236.834 4.82 791,622 Band 19 149,125.978 4.80 715,805 Band 20 482,461.364 4.87 2,349,587 Band 21 126,685.286 4.84 613,157 Band 25 37,988.283 5.03 191,081 Band 26 38,301.664 5.02 192,274 Band 27 16,956.897 4.97 84,276 Band 28 2,872.561 4.94 14,190 Band 29 54,285.456 4.94 268,170 Band 30 38,124.743 4.88 186,049 Band 31 4,918.605 4.86 23,904
215 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Prudential Jennison (continued) Band 32 8,240.101 $ 4.81 $ 39,635 Band 33 2,963.522 4.78 14,166 Band 34 2,370.808 4.75 11,261 --------------- --------------- 10,635,479.761 $ 52,041,458 =============== =============== SP Jennison International Growth Contracts in accumulation period: Band 2 1,624.696 $ 5.04 $ 8,188 Band 4 18,000.086 5.00 90,000 Band 5 137,420.685 4.99 685,729 Band 6 1,224,200.448 4.98 6,096,518 Band 7 1,327,427.702 4.97 6,597,316 Band 8 145,887.173 4.95 722,142 Band 9 85,029.257 4.95 420,895 Band 10 547,165.286 4.94 2,702,997 Band 11 666,122.820 4.93 3,283,986 Band 12 544,406.729 4.92 2,678,481 Band 13 1,072,010.101 4.92 5,274,290 Band 14 1,418,736.024 4.90 6,951,807 Band 15 7,719.311 4.89 37,747 Band 16 53,287.773 4.88 260,044 Band 17 430,691.353 4.87 2,097,467 Band 18 39,878.209 4.86 193,808 Band 19 91,090.447 4.85 441,789 Band 20 429,645.231 4.91 2,109,558 Band 21 185,619.799 4.89 907,681 Band 25 60,059.676 5.05 303,301 Band 26 32,081.117 5.04 161,689 Band 27 16,004.917 5.00 80,025 Band 28 2,271.361 4.98 11,311 Band 29 47,133.900 4.97 234,255 Band 30 30,368.289 4.92 149,412 Band 31 20,535.120 4.90 100,622
216 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- SP Jennison International Growth Band 32 1,615.080 $ 4.86 $ 7,849 Band 33 3,455.304 4.83 16,689 Band 34 8,417.281 4.81 40,487 --------------- --------------- 8,647,905.175 $ 42,666,083 =============== =============== Putnam VT Discovery Growth Contracts in accumulation period: Band 9 7,420.223 $ 7.30 $ 54,168 Band 13 2,620.547 7.27 19,051 Band 15 17,083.479 7.25 123,855 Band 26 61,997.758 7.41 459,403 Band 27 33,201.127 7.36 244,360 Band 28 8,062.109 7.34 59,176 Band 29 130,293.597 7.33 955,052 Band 30 47,686.290 7.28 347,156 Band 31 21,769.088 7.26 158,044 Band 32 13,819.458 7.21 99,638 Band 33 35,342.271 7.18 253,758 Band 34 4,410.943 7.15 31,538 --------------- --------------- 383,706.890 $ 2,805,199 =============== =============== Putnam VT Growth and Income Contracts in accumulation period: Band 9 7,334.916 $ 8.21 $ 60,220 Band 13 6,442.819 8.17 52,638 Band 15 3,582.148 8.14 29,159 Band 26 92,431.050 8.50 785,664 Band 27 10,808.713 8.44 91,226 Band 28 1,020.950 8.41 8,586 Band 29 112,313.453 8.40 943,433 Band 30 53,590.675 8.35 447,482
217 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Putnam VT Growth and Income (continued) Band 31 22,582.043 $ 8.32 $ 187,883 Band 32 12,511.830 8.10 101,346 Band 33 5,690.621 8.06 45,866 Band 34 2,752.740 8.03 22,105 --------------- --------------- 331,061.958 $ 2,775,608 =============== =============== Putnam VT International Growth and Income Contracts in accumulation period: Band 9 8,951.570 $ 9.30 $ 83,250 Band 13 2,377.166 9.26 22,013 Band 15 17,829.063 9.23 164,562 Band 26 95,630.350 9.44 902,751 Band 27 23,264.749 9.37 217,991 Band 28 9,606.056 9.34 89,721 Band 29 110,681.368 9.33 1,032,657 Band 30 26,660.083 9.27 247,139 Band 31 38,563.760 9.24 356,329 Band 32 7,063.957 9.18 64,847 Band 33 3,075.694 9.14 28,112 Band 34 21,716.322 9.11 197,836 --------------- --------------- 365,420.138 $ 3,407,208 =============== =============== Smith Barney High Income Contracts in accumulation period: Band 22 3,135.294 $ 13.63 $ 42,734 Band 23 19,230.899 13.46 258,848 --------------- -------------- 22,366.193 $ 301,582 =============== ============== Smith Barney International All Cap Growth Contracts in accumulation period: Band 22 1,478.766 $ 10.09 $ 14,921 Band 23 18,681.368 9.96 186,066 --------------- -------------- 20,160.1134 $ 200,987 =============== ===============
218 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value ----------------------------------------------- --------------- --------------- --------------- Smith Barney Large Cap Value Contracts in accumulation period: Band 22 2,195.864 $ 15.83 $ 34,761 Band 23 21,341.402 15.63 333,566 --------------- --------------- 23,537.266 $ 368,327 =============== =============== Smith Barney Money Market Contracts in accumulation period: Band 23 6,764.424 $ 12.46 $ 84,285 --------------- --------------- 6,764.424 84,285 =============== =============== UBS Tactical Allocation Contracts in accumulation period: Band 9 10,183.990 $ 8.01 $ 81,574 Band 13 10,600.710 7.98 84,594 Band 15 9,221.153 7.95 73,308 Band 26 119,820.726 8.13 974,143 Band 27 35,190.184 8.07 283,985 Band 28 17,923.326 8.05 144,283 Band 29 111,400.295 8.04 895,658 Band 30 44,765.975 7.98 357,232 Band 31 27,051.718 7.96 215,332 Band 32 7,455.241 7.91 58,971 Band 33 10,395.464 7.87 81,812 Band 34 316.237 7.84 2,479 --------------- ---------------- 404,325.019 $ 3,253,371 =============== ================
219 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Bands Products ------------------- -------------------------------------------------------------------------------------- Band 1 DVA 80 Band 2 DVA Band 3 DVA Series 100 Band 4 DVA Plus - Standard (pre February 2000) Band 5 DVA Plus - Standard (post January 2000 & post 2000) Band 6 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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, Opportunities - Standard Band 7 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 Band 8 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) and 5.5% Solution (pre Feburary 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000), Opportunities - 5.5% Solution Band 9 DVA Plus - Max 5.5 (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) Band 10 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard, Opportunities - Annual Ratchet Band 11 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), Opportunities - Max 5.5 Band 12 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution, Opportunities - 7% Solution Band 13 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 Band 14 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet Band 15 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% Band 16 Access - Annual Ratchet (post April 2001) Band 17 Access - Max 5.5 (post April 2001), Landmark - Max 7 Band 18 Access - 7% Solution (post April 2001) Band 19 Access - Max 7 (post April 2001) Band 20 ES II - Max 7 (post 2000), Generations - Max 7, Opportunities - Max 7
220 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Bands Products ------------------- -------------------------------------------------------------------------------------- Band 21 Landmark - 7% Solution Band 22 Granite PrimElite - Standard Band 23 Granite PrimElite - Annual Ratchet Band 24 Access One Band 25 Value Band 26 VA Option I Band 27 VA Option II Band 28 VA Option III Band 29 VA Bonus Option I Band 30 VA Bonus Option II Band 31 VA Bonus Option III Band 32 SmartDesign Advantage Option I Band 33 SmartDesign Advantage Option II Band 34 SmartDesign Advantage Option III Band 35 Rollover Choice Option I, Focus VA Option I Band 36 Rollover Choice Option II, Focus VA Option II Band 37 Rollover Choice Option III Band 38 Signature Option I Band 39 Signature Option II Band 40 Signature Option III
221 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited -------------------------------------------------------------------------------- 8. Financial Highlights A summary of unit values and units outstanding for variable annuity Contracts, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the nine months ended September 30, 2003 and the years ended December 31, 2002 and 2001, along with unit values and units outstanding for the year ended December 31, 2000, follows:
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- AIM V.I. Capital Appreciation 2003 7 $8.46 to $8.51 $ 58 - % 0.75% to 1.10% 15.00% 2002 4 $7.40 27 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** AIM V.I. Core Equity 2003 16 $9.21 to $10.25 155 - 0.75% to 1.00% 11.50% 2002 5 $8.26 41 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** AIM V.I. Dent Demographic Trends 2003 4,532 $8.77 to $9.07 40,452 - 0.90% to 2.55% 21.13% to 22.76% 2002 1,550 $7.24 to $7.38 11,335 - 0.95% to 2.55% -34.00% to -32.91% 2001 323 $10.97 to $11.00 3,550 ** 0.95% to 2.25% ** 2000 *** *** *** ** ** ** AIM V.I. Growth 2003 215 $8.01 to $8.26 1,759 - 0.95% to 2.55% 15.75% to 17.00% 2002 121 $6.92 to $7.06 848 - 0.95% to 2.55% -32.94% to -31.79% 2001 43 $10.32 to $10.35 443 1.09 0.95% to 1.90% ** 2000 ** ** ** ** ** **
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- AIM V.I. Premier Equity 2003 16 $7.66 to $10.28 $ 131 - % 0.75% to 1.20% 12.32% to 12.43% 2002 12 $6.82 to $6.84 80 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** AllianceBernstein Growth and Income 2003 927 $8.40 to $8.70 7,970 0.79 0.95% to 2.55% 16.18% to 17.57% 2002 644 $7.23 to $7.40 4,730 3.91 0.95% to 2.55% -24.45% to -23.00% 2001 172 $9.57 to $9.61 1,653 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** Alliance Bernstein Premier Growth 2003 443 $7.16 to $7.42 3,241 - 0.95% to 2.55% 11.66% to 13.11% 2002 322 $6.41 to $6.56 2,094 - 0.95% to 2.55% -32.66% to -31.52% 2001 114 $9.52 to $9.58 1,091 ** 0.95% to 2.40% ** 2000 ** ** ** ** ** ** AllianceBernstein Value 2003 540 $9.42 to $9.76 5,196 0.81 0.95% to 2.55% 11.35% to 12.70% 2002 315 $8.46 to $8.66 2,709 0.80 0.95% to 2.55% -15.23% to -13.83% 2001 59 $9.98 to $10.05 595 ** 0.95% to 2.40% ** 2000 ** ** ** ** ** ** Fidelity(R) VIP Contrafund(R) 2003 1,349 $9.60 to $10.45 13,308 0.19 0.75% to 2.55% 12.94% to 14.43% 2002 513 $8.50 to $8.73 4,438 0.37 0.75% to 2.55% -12.19% to -10.28% 2001 122 $9.68 to $9.73 1,183 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** **
223 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Fidelity(R) Equity-Income 2003 9,966 $8.59 to $10.28 $ 87,360 0.72 % 0.75% to 2.55% 11.56% to 13.02% 2002 3,054 $7.70 to $7.91 23,851 1.09 0.75% to 2.55% -18.95% to -17.69% 2001 203 $9.55 to $9.61 1,949 ** 0.95% to 2.20% ** 2000 ** ** ** ** ** ** Fidelity(R) VIP Growth 2003 16,477 $7.33 to $10.51 123,230 0.05 0.75% to 2.55% 17.09% to 18.66% 2002 3,655 $6.26 to $6.43 23,212 0.02 0.90% to 2.55% -32.32% to 30.79% 2001 75 $9.25 to $9.29 693 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** Fidelity(R) VIP Overseas 2003 3 $9.65 to $10.87 32 - 0.75% to 1.00% 22.31% 2002 1 $7.89 9 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Franklin SmallCap Value Securities 2003 20 $10.00 to $10.04 200 - 0.75% to 0.95% 11.48% to 11.68% 2002 2 $8.97 to $8.99 17 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Greenwich Appreciation 2003 39 $15.46 to $15.64 605 - 1.25% to 1.40% 11.38% to 11.55% 2002 42 $13.88 to $14.02 589 1.50 1.25% to 1.40% -18.69% to -18.58% 2001 42 $17.07 to $17.22 723 1.15 1.25% to 1.40% -5.32% to -5.18% 2000 46 $18.03 to $18.16 831 * * *
224 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Galaxy VIP Asset Allocation 2003 - - $ - 1.27 % - - 2002 78 $8.05 to $8.15 631 2.08 1.40% to 1.80% -17.44% to -17.17% 2001 128 $9.75 to $9.84 1,260 2.29 1.40% to 1.80% -9.13% to -8.72% 2000 129 $10.73 to $10.78 1,387 * * * Galaxy VIP Growth and Income 2003 - - - - - - 2002 16 $7.44 to $7.56 122 0.09 1.40% to 1.90% -27.84% to -27.31% 2001 19 $10.31 to $10.40 201 0.15 1.40% to 1.80% -5.67% to -5.28% 2000 26 $10.93 to $10.98 284 * * * Galaxy VIP High Quality Bond 2003 - - - 3.08 - - 2002 10 $12.57 to $12.74 130 4.71 1.40% to 1.80% 8.36% to 8.89% 2001 13 $11.60 to $11.70 152 5.35 1.40% to 1.80% 5.88% to 5.89% 2000 7 $11.04 to $11.05 78 * * * Galaxy VIP Small Company Growth 2003 - - - - - - 2002 7 $8.55 to $8.69 57 - 1.40% to 1.90% -34.18% to -33.87% 2001 6 $12.99 to $13.14 84 - 1.40% to 1.90% -2.11% to -1.57% 2000 5 $13.27 to $13.35 72 * * * ING GET Fund - Series N 2003 2,516 $10.10 to $10.32 25,630 2.62 1.45% to 2.40% 1.41% to 2.18% 2002 2,862 $9.66 to $10.10 28,661 1.35 0.95% to 1.90% -2.73% to -1.75% 2001 3,009 $10.24 to $10.28 30,868 2.25 0.95% to 1.90% ** 2000 ** ** ** ** ** **
225 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING GET Fund - Series P 2003 11,835 $9.88 to $10.20 $ 119,300 2.49 % 1.45% to 3.05% 0.71% to 1.80% 2002 14,328 $9.81 to $10.02 143,846 0.07 0.75% to 2.55% -1.80% to -0.20% 2001 15,276 $9.99 to $10.04 153,045 ** 0.95% to 2.55% ** 2000 ** ** ** ** ** ** ING GET Fund - Series Q 2003 13,495 $10.08 to $10.42 138,426 - 1.25% to 3.05% 1.51% to 2.96% 2002 16,855 $9.93 to $10.12 169,029 2.51 0.75% to 2.55% -0.70% to 1.20% 2001 190 $10.00 1,904 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING GET Fund - Series R 2003 13,621 $10.18 to $10.47 140,707 0.01 1.25% to 3.05% 1.70% to 3.05% 2002 16,911 $10.01 to $10.16 170,526 *** 0.75% to 2.55% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Get Fund - Series S 2003 16,864 $10.15 to $10.39 173,155 0.09 1.25% to 3.05% 1.70% to 3.08% 2002 21,867 $9.98 to $10.08 219,270 *** 0.75% to 2.55% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING GET Fund - Series T 2003 16,574 $10.18 to $10.37 170,132 0.13 1.25% to 3.05% 1.39% to 2.67% 2002 23,643 $10.04 to $10.10 237,948 *** 0.75% to 2.55% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
226 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING GET Fund - Series U 2003 17,355 $10.22 to $10.37 $ 178,573 - % 1.25% to 3.05% 2.30% to 3.70% 2002 105 $9.99 to $10.00 1,048 *** 0.75% to 2.20% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING GET Fund - Series V 2003 37,332 $9.61 to $9.70 360,438 **** 1.25% to 3.05% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING GET U.S. Core Portfolio - Series 1 2003 23,775 $9.97 to $10.03 237,629 **** 1.25% to 3.05% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING GET U.S. Core Portfolio - Series 2 (Guaranteed) 2003 219 $9.99 to $10.00 2,191 **** 1.25% to 3.05% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING AIM Mid-Cap Growth 2003 14,957 $11.56 to $13.01 182,308 - 0.80% to 2.25% 24.43% to 25.82% 2002 14,324 $9.29 to $10.34 139,852 - 0.80% to 2.25% -33.26% to -32.24% 2001 17,855 $13.92 to $15.26 259,382 - 0.80% to 2.25% -22.66% to -21.78% 2000 19,182 $18.40 to $19.51 359,734 * * *
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING AIM Mid-Cap Growth Advisor 2003 146 $12.00 to $12.06 $ 1,756 - % 1.40% to 1.85% 24.61% to 24.97% 2002 8 $9.63 to $9.65 78 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Alliance Mid-Cap Growth 2003 27,056 $13.39 to $14.95 380,282 - 0.80% to 2.25% 40.65% to 42.11% 2002 24,777 $9.52 to $10.52 246,769 - 0.80% to 2.25% -31.66% to -30.56% 2001 27,303 $13.93 to $15.15 395,434 - 0.80% to 2.25% -15.42% to -14.46% 2000 27,139 $16.80 to $17.71 463,399 * * * ING Alliance Mid-Cap Growth Advisor 2003 166 $13.39 to $14.95 2,444 - 0.80% to 2.25% 40.86% to 41.49% 2002 14 $10.45 to $10.46 148 *** *** *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING American Funds Growth (Guaranteed) 2003 1,570 $9.63 to $9.64 15,127 **** 0.95% to 2.55% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING American Funds Growth-Income 2003 1,275 $9.83 to $9.84 12,535 **** 0.95% to 2.55% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** ****
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING American Funds International 2003 429 $10.18 to $10.19 $ 4,371 **** % 0.95% to 2.40% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING Capital Guardian Large Cap Value 2003 51,050 $8.74 to $9.32 455,590 - 0.50% to 2.25% 19.07% to 20.57% 2002 39,602 $7.34 to $7.73 295,688 0.25 0.50% to 2.25% -25.48% to -24.22% 2001 27,628 $9.85 to $10.20 275,489 0.25 0.50% to 2.25% -5.43% to -4.44% 2000 9,362 $10.50 to $10.59 98,545 * * * ING Capital Guardian Large Cap Value Advisor 2003 386 $12.22 to $12.28 4,732 - 1.40% to 1.85% 19.22% to 19.57% 2002 32 $10.25 to $10.27 333 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Capital Guardian Managed Global 2003 18,377 $14.77 to $17.94 292,324 - 0.50% to 2.25% 17.04% to 18.65% 2002 16,459 $12.62 to $15.12 223,084 0.13 0.50% to 2.25% -22.00% to -20.59% 2001 14,451 $16.18 to $19.04 250,388 0.13 0.50% to 2.25% -13.60% to -12.34% 2000 11,365 $19.34 to $21.72 228,347 * * * ING Capital Guardian Managed Global Advisor 2003 81 $11.99 to $12.05 975 - 1.40% to 1.85% 17.20% to 17.68% 2002 5 $10.23 50 *** 1.75% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Capital Guardian Small Cap 2003 28,438 $15.06 to $17.28 $ 150,125 - % 0.50% to 2.25% 21.75% to 23.43% 2002 26,339 $12.37 to $14.00 341,146 0.12 0.80% to 2.25% -27.11% to -25.80% 2001 27,165 $16.97 to $18.87 480,513 0.13 0.50% to 2.25% -3.40% to -1.97% 2000 23,107 $17.94 to $19.25 422,097 * * * ING Capital Guardian Small Cap Advisor 2003 194 $11.84 to $11.90 2,301 - 1.40% to 1.85% 21.81% to 22.30% 2002 33 $9.72 to $9.73 321 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Developing World 2003 10,380 $7.45 to $8.09 80,376 - 0.80% to 2.25% 24.58% to 26.01% 2002 9,702 $5.98 to $6.42 60,000 - 0.80% to 2.25% -12.70% to -11.45% 2001 10,141 $6.85 to $7.25 71,466 1.18 0.80% to 2.25% -7.10 to -5.97% 2000 7,211 $7.47 to $7.71 54,398 * * * ING Developing World Advisor 2003 87 $12.10 to $12.16 1,051 - 1.40% to 1.85% 24.74% to 25.23% 2002 8 $9.70 to $9.71 79 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Eagle Asset Value Equity 2003 11,407 $14.78 to $17.25 183,368 - 0.80% to 2.25% 8.28% to 9.73% 2002 11,740 $13.65 to $15.72 173,239 0.69 0.80% to 2.25% -20.82% to -17.70% 2001 10,991 $17.24 to $19.10 199,039 0.85 0.80% to 2.25% -6.21% to -5.21% 2000 9,358 $18.85 to $20.15 180,722 * * *
230 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Eagle Asset Value Equity Advisor 2003 72 $10.45 to $10.50 $ 754 - % 1.40% to 1.85% 8.73% to 9.03% 2002 11 $9.61 to $9.63 107 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING FMR Diversified Mid-Cap 2003 16,301 $8.19 to $8.53 135,693 - 0.90% to 2.25% 15.45% to 16.69% 2002 12,695 $7.09 to $7.31 91,159 0.29 0.90% to 2.25% -21.13% to -20.11% 2001 6,381 $8.99 to $9.15 59,814 0.48 0.90% to 2.25% -8.41% to -7.79% 2000 1,150 $9.87 to $9.88 11,358 * * * ING FMR Diversified Mid-Cap Advisor 2003 241 $10.95 to $11.00 2,646 - 1.40% to 1.85% 15.63% to 16.03% 2002 23 $9.47 to $9.48 220 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Goldman Sachs Internet Tollkeeper 2003 6,500 $5.59 to $5.78 36,837 - 0.90% to 2.25% 22.05% to 23.29% 2002 2,769 $4.58 to $4.69 12,802 - 0.90% to 2.25% -39.50% to -38.61% 2001 709 $7.57 to $7.64 5,389 ** 0.90% to 2.25% ** 2000 ** ** ** ** ** ** ING Goldman Sachs Internet Tollkeeper Advisor 2003 113 $12.71 to $12.78 1,432 - 1.40% to 1.85% 22.21% to 22.65% 2002 5 $10.40 to $10.42 53 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Hard Assets 2003 5,766 $15.20 to $18.86 $ 95,833 - % 0.80% to 2.25% 22.19% to 23.51% 2002 4,986 $12.44 to $15.93 67,753 0.68 0.50% to 2.25% -1.50% to 4.32% 2001 2,395 $12.63 to $15.27 33,209 - 0.80% to 2.25% -13.82% to -12.84% 2000 2,584 $15.34 to $17.52 41,509 * * * ING Hard Assets Advisor 2003 133 $12.03 to $12.09 1,600 - 1.40% to 1.85% 22.51% to 22.99% 2002 10 $9.82 to $9.83 97 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING International 2003 17,701 $7.64 to $8.53 141,663 - 0.80% to 2.25% 12.35% to 13.58% 2002 16,969 $6.80 to $7.46 120,477 0.75 0.90% to 2.25% -18.76% to -16.93% 2001 16,734 $8.37 to $8.98 144,061 - 0.90% to 2.10% -24.87% to -22.18% 2000 17,171 $11.23 to $11.73 194,618 * * * ING International Advisor 2003 272 $11.02 to $11.08 3,005 - 1.40% to 1.85% 12.56% to 13.06% 2002 26 $9.79 to $9.80 254 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Janus Growth and Income Advisor 2003 26,413 $7.43 to $7.81 201,399 - 0.90% to 2.55% 8.15% to 9.56% 2002 18,616 $6.87 to $7.13 130,345 0.45 0.90% to 2.55% -21.75% to -20.16% 2001 10,487 $8.78 to $8.93 92,720 1.02 0.90% to 2.55% -11.18% to -10.34% 2000 1,280 $9.93 to $9.96 12,726 * * *
232 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Janus Growth and Income Advisor 2003 514 $10.53 to $10.58 $ 5,426 - % 1.40% to 1.85% 8.44% to 8.85% 2002 60 $9.71 to $9.73 587 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Janus Special Equity 2003 5,384 $7.70 to $8.02 42,179 - 0.90% to 2.25% 29.19% to 30.51% 2002 3,609 $5.96 to $6.15 21,794 *** 0.90% to 2.25% -27.58% to -26.61% 2001 2,932 $8.23 to $8.38 24,325 0.37 0.90% to 2.25% -6.87% to -6.19% 2000 663 $8.88 to $8.89 5,891 * * * ING Janus Special Equity Advisor 2003 36 $12.46 to $12.52 445 - 1.40% to 1.85% 29.52% to 30.01% 2002 6 $9.62 to $9.63 56 *** 1.40% to 1.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Jennison Equity Opportunities 2003 17,342 $15.38 to $18.19 288,190 - 0.80% to 2.25% 12.10% to 13.33% 2002 19,040 $13.72 to $16.05 280,954 0.13 0.80% to 2.25% -30.85% to -29.82% 2001 20,717 $19.84 to $22.87 440,209 0.07 0.80% to 2.25% -14.67% to -13.67% 2000 19,193 $24.06 to $26.49 477,934 * * * ING Jennison Equity Opportunities Advisor 2003 100 $10.95 to $11.01 1,092 - 1.40% to 1.85% 12.42% to 12.92% 2002 3 $9.74 to $9.75 34 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
233 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING JPMorgan Fleming Small Cap Equity 2003 4,486 $9.01 to $9.22 $ 40,909 - % 0.90% to 2.55% 15.81% to 17.15% 2002 1,212 $7.79 to $7.87 9,490 *** 0.90% to 2.40% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING JPMorgan Fleming Small Cap Equity Advisor 2003 599 $11.00 to $11.05 6,605 - 1.40% to 1.85% 16.03% to 16.44% 2002 54 $9.48 to $9.49 511 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Julius Baer Foreign 2003 2,055 $9.04 to $9.26 18,808 - 0.90% to 2.55% 10.78% to 12.24% 2002 608 $8.17 to $8.25 4,990 *** 0.90% to 2.40% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Julius Baer Foreign Advisor 2003 142 $10.84 to $10.89 1,544 - 1.40% to 1.85% 11.28% to 11.58% 2002 17 $9.74 to $9.76 165 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Limited Maturity Bond 2003 28,806 $17.99 to $23.33 570,674 - 0.50% to 2.25% 0.84% to 2.15% 2002 28,506 $17.84 to $22.84 558,941 3.62 0.50% to 2.25% 4.82% to 6.68% 2001 19,509 $17.02 to $21.41 364,062 4.84 0.50% to 2.25% 6.78% to 8.30% 2000 11,438 $16.67 to $19.77 200,958 * * *
234 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Liquid Assets 2003 60,885 $9.99 to $17.99 $ 927,658 0.58 % 0.50% to 2.55% -1.34% to 0.17% 2002 66,797 $13.46 to $17.34 1,023,179 1.42 0.50% to 2.55% -1.34% to 0.96% 2001 69,541 $13.62 to $17.79 1,071,485 3.59 0.50% to 2.55% 1.86% to 3.01% 2000 44,678 $14.50 to $16.61 679,666 * * * ING Liquid Assets Advisor 2003 846 $9.88 to $9.93 8,381 0.39 1.40% to 1.85% -1.00% to -0.60% 2002 180 $9.98 to $9.99 1,800 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Marisco Growth 2003 55,528 $11.90 to $13.56 693,860 - 0.50% to 2.25% 19.96% to 21.56% 2002 53,954 $9.92 to $11.18 560,041 - 0.50% to 2.25% -31.16% to -29.91% 2001 66,921 $14.41 to $15.95 1,002,892 - 0.50% to 2.25% -31.55% to -30.59% 2000 67,525 $21.49 to $22.98 1,474,980 * * * ING Marisco Growth Advisor 2003 470 $11.75 to $11.80 5,531 - 1.40% to 1.85% 20.39% to 20.78% 2002 9 $9.76 to $9.78 92 *** 1.40% to 1.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Mercury Focus Value 2003 1,816 $9.48 to $9.67 17,534 - 0.90% to 2.25% 13.93% to 15.12% 2002 710 $8.32 to $8.40 5,931 *** 0.90% to 2.25% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
235 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Mercury Focus Value Advisor 2003 44 $11.60 to $11.65 $ 506 - % 1.40% to 1.85% 14.17% to 14.55% 2002 5 $10.16 to $10.17 48 *** 1.65% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Mercury Fundamental Growth 2003 1,070 $8.90 to $9.07 9,600 - 0.90% to 2.25% 12.23% to 13.38% 2002 345 $7.93 to $8.00 2,742 *** 0.90% to 2.15% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Mercury Fundamental Growth Advisor 2003 58 $10.61 to $10.67 622 - 1.40% to 1.85% 12.39% to 12.91% 2002 11 $9.44 to $9.45 108 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING MFS Mid-Cap Growth 2003 28,960 $18.51 to $21.71 568,032 - 0.50% to 2.25% 23.65% to 25.35% 2002 27,548 $14.97 to $17.32 435,581 - 0.50% to 2.25% -49.97% to -49.07% 2001 29,521 $29.92 to $34.01 928,290 0.37 0.50% to 2.25% -25.09% to -24.25% 2000 27,623 $40.98 to $43.92 1,158,061 * * * ING MFS Mid-Cap Growth Advisor 2003 486 $12.08 to $12.14 5,880 - 1.40% to 1.85% 23.90% to 24.26% 2002 56 $9.75 to $9.77 549 *** 1.40% to 1.80% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
236 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING MFS Research 2003 27,533 $15.17 to $17.78 $ 454,861 - % 0.80% to 2.55% 10.33% to 11.75% 2002 28,285 $13.75 to $15.91 421,035 0.41 0.80% to 2.55% -28.35% to -25.45% 2001 31,622 $19.19 to $21.34 637,711 0.12 0.80% to 2.25% -22.97% to -22.09% 2000 30,638 $25.56 to $27.39 800,528 * * * ING MFS Research Advisor 2003 140 $10.74 to $10.79 1,501 - 1.40% to 1.85% 10.71% to 11.12% 2002 34 $9.70 to $9.72 326 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING MFS Total Return 2003 50,981 $10.23 to $22.51 1,035,948 - 0.50% to 2.55% 6.98% to 8.64% 2002 45,174 $17.48 to $20.72 853,266 2.36 0.50% to 2.55% -7.51% to -5.56% 2001 39,136 $18.90 to $21.94 793,394 4.88 0.50% to 2.55% -1.44% to -0.32% 2000 29,621 $20.10 to $21.54 608,868 * * * ING MFS Total Return Advisor 2003 1,077 $10.76 to $10.81 11,605 - 1.40% to 1.85% 7.28% to 7.67% 2002 95 $10.03 to $10.04 955 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING PIMCO Core Bond 2003 40,241 $10.26 to $13.91 514,836 - 0.75% to 2.55% 2.34% to 3.75% 2002 34,238 $11.55 to $13.41 425,125 3.72 0.80% to 2.55% 3.69% to 8.23% 2001 9,873 $11.14 to $12.39 114,996 0.40 0.80% to 2.55% 0.53% to 1.64% 2000 3,438 $11.37 to $12.19 40,000 * * *
237 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING PIMCO Core Bond Advisor 2003 1,272 $10.53 to $10.58 $ 13,415 - % 1.40% to 1.85% 2.83% to 3.12% 2002 97 $10.24 to $10.26 992 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Salomon Brothers All Cap 2003 34,404 $9.83 to $10.52 351,535 - 0.90% to 2.25% 20.02% to 21.20% 2002 29,232 $8.34 to $8.68 247,740 0.22 0.90% to 2.25% -27.23% to -26.19% 2001 25,814 $11.46 to $11.76 299,314 1.47 0.90% to 2.25% 0.00% to 0.94% 2000 9,062 $11.54 to $11.65 104,883 * * * ING Salomon Brothers All Cap Advisor 2003 317 $11.46 to $11.51 3,634 - 1.40% to 1.85% 20.38% to 20.78% 2002 18 $9.52 to $9.53 176 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Salomon Brother Investors 2003 12,677 $8.97 to $9.43 116,138 - 0.90% to 2.25% 13.98% to 15.14% 2002 11,516 $7.87 to $8.19 92,136 0.81 0.90% to 2.25% -24.69% to -23.67% 2001 8,646 $10.45 to $10.73 91,400 1.30 0.90% to 2.25% -6.16% to -5.13% 2000 1,917 $11.21 to $11.31 21,558 * * * ING Salomon Brother Investors Advisor 2003 72 $11.14 to $11.19 800 - 1.40% to 1.85% 14.36% to 14.65% 2002 30 $9.74 to $9.75 297 *** 1.65% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
238 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING T. Rowe Price Capital Appreciation 2003 38,761 $27.10 to $33.63 1,152,441 - % 0.80% to 2.25% 9.49% to 10.73% 2002 34,525 $24.75 to $30.37 935,079 1.72 0.80% to 2.25% -1.79% to -0.33% 2001 23,375 $25.20 to $30.47 644,971 3.34 0.80% to 2.25% 7.85% to 9.02% 2000 13,395 $24.47 to $27.95 345,651 * * * ING T. Rowe Price Capital Appreciation Advisor 2003 1,168 $10.96 to $11.01 12,814 - 1.40% to 1.85% 9.70% to 9.99% 2002 89 $9.99 to $10.01 894 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING T. Rowe Price Equity Income 2003 24,093 $19.74 to $25.61 524,100 - 0.50% to 2.25% 9.00% to 10.48% 2002 20,545 $81.11 to $23.18 409,670 1.34 0.50% to 2.25% -15.14% to -13.64% 2001 17,698 $21.34 to $26.84 416,763 1.95 0.50% to 2.25% -0.58% to 1.46% 2000 12,207 $22.48 to $26.61 291,793 * * * ING T. Rowe Price Equity Income Advisor 2003 671 $10.72 to $10.77 7,199 - 1.40% to 1.85% 9.27% to 9.56% 2002 65 $9.81 to $9.83 640 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING UBS U.S. Balanced 2003 7,243 $7.66 to $7.98 56,424 - 0.90% to 2.25% 7.58% to 8.59% 2002 6,551 $7.12 to $7.35 47,241 1.11 0.90% to 2.25% -16.73% to -15.52% 2001 5,718 $8.55 to $8.70 49,242 1.78 0.90% to 2.25% -8.32% to -7.68% 2000 501 $9.37 to $9.38 4,696 * * *
239 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING UBS U.S. Balanced Advisor 2003 30 $10.55 to $10.57 $ 318 **** % 1.40% to 1.85% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING Van Kampen Equity Growth 2003 2,361 $8.60 to $8.77 20,477 - 0.90% to 2.25% 10.54% to 11.73% 2002 559 $7.78 to $7.85 4,362 *** 0.90% to 2.25% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Van Kampen Equity Growth Advisor 2003 403 $10.68 to $10.74 4,310 - 1.40% to 1.85% 10.90% to 11.31% 2002 48 $9.63 to $9.64 458 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Van Kampen Global Franchise 2003 4,249 $9.45 to $9.65 40,487 - 0.80% to 2.25% 7.39% to 8.67% 2002 1,661 $8.80 to $8.88 14,670 *** 0.80% to 2.25% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Van Kampen Global Franchise Advisor 2003 941 $10.24 to $10.28 9,652 - 1.40% to 1.85% 7.68% to 7.99% 2002 74 $9.51 to $9.52 708 *** 1.40% to 1.85% ***% 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
240 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Van Kampen Growth and Income 2003 30,980 $18.62 to $22.22 $ 617,278 - % 0.50% to 2.25% 11.03% to 12.45% 2002 30,992 $16.77 to $19.76 554,608 0.84 0.50% to 2.25% -16.69% to -15.19% 2001 34,270 $20.13 to $23.30 732,049 0.30 0.50% to 2.25% -13.63% to -12.68% 2000 34,836 $24.00 to $26.02 860,338 * * * ING Van Kampen Growth and Income Advisor 2003 1,425 $10.87 to $10.92 15,514 - 1.40% to 1.85% 11.15% to 1.54% 2002 101 $9.78 to $9.79 990 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Van Kampen Real Estate 2003 8,236 $31.01 to $40.23 280,771 - 0.50% to 2.25% 24.84% to 26.51% 2002 6,881 $24.84 to $31.80 187,607 3.73 0.50% to 2.25% -2.05% to 0.31% 2001 4,535 $25.36 to $31.90 126,169 4.29 0.50% to 2.25% 6.07% to 7.28% 2000 3,804 $25.04 to $28.59 100,303 * * * ING Van Kampen Real Estate Advisor 2003 362 $12.01 to $12.07 4,352 - 1.40% to 1.85% 25.10% to 25.60% 2002 29 $9.60 to $9.61 276 *** 1.40% to 1.85% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Alger Aggressive Growth 2003 39 $8.70 to $10.67 342 **** 0.75% to 1.00% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** ****
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING Alger Growth 2003 14 $7.82 to $10.45 $ 115 - % 0.75% to 1.00% 19.21% 2002 6 $6.56 39 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING American Century Small Cap Value 2003 13 $9.52 to $10.36 123 - 0.75% to 1.20% 17.53% 2002 - $8.10 2 *** 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Baron Small Cap Growth 2003 50 $10.42 to $10.47 521 **** 0.75% to 1.20% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING JPMorgan Fleming International 2003 207 $8.98 to $10.55 2,099 0.19 0.75% to 2.25% 10.46% to 10.69% 2002 1 $8.13 to $8.14 7 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING JPMorgan Mid Cap Value 2003 269 $10.42 to $10.69 2,835 - 0.75% to 2.55% 14.63% to 16.20% 2002 33 $9.09 to $9.19 301 *** 0.95% to 2.55% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING MFS(R) Capital Opportunities (Initial Class) 2003 267 $6.86 to $7.11 $ 1,869 0.19 % 0.95% to 2.55% 13.76% to 15.05% 2002 209 $6.04 to $6.18 1,280 - 0.95% to 2.40% -37.64% to -32.29% 2001 78 $8.92 to $9.91 698 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING MFS(R) Capital Opportunities (Service Class) 2003 36 $7.89 283 - 0.75% 15.18% 2002 11 $6.85 72 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING MFS Global Growth 2003 59 $9.41 to $9.66 568 - 0.75% to 2.55% 14.06% to 15.69% 2002 9 $8.27 to $8.35 75 *** 0.75% to 2.20% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING MFS Research Equity 2003 10 $8.18 to $10.19 84 **** 0.75% to 1.35% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING OpCap Balanced Value 2003 35 $9.28 322 2.68 0.75% 18.97% 2002 16 $7.80 126 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING PIMCO Total Return 2003 131 $10.23 to $11.11 $ 1,449 0.78 % 0.75% to 1.20% 3.35% 2002 55 $10.75 593 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Salomon Brothers Aggressive Growth 2003 252 $8.82 to $9.84 2,476 **** 1.00% to 2.25% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING Salomon Brothers Fundamental Value 2003 46 $9.11 to $9.48 428 2.29 0.75% to 1.10% 23.35% 2002 1 $7.41 9 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Salomon Brothers Investors Value 2003 33 $8.71 to $8.76 292 0.68 0.75% to 1.10% 15.11% 2002 - $7.61 4 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING T. Rowe Price Growth Equity 2003 192 $8.69 to $10.34 1,700 0.22 15.87% to 16.36% 0.75% to 1.20% 2002 19 $7.51 to $7.52 144 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
244 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING UBS Tactical Asset Allocation 2003 5 $8.52 $ 46 - % 0.75% 13.00% 2002 - $7.54 2 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING Van Kampen Comstock 2003 2,521 $9.39 to $10.40 23,955 - 0.75% to 2.55% 13.96% to 15.47% 2002 210 $8.24 to $8.34 1,737 *** 0.75% to 2.40% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING VIT Worldwide Growth 2003 7,035 $5.76 to $6.10 41,697 - 0.90% to 2.55% 14.06% to 15.59% 2002 5,299 $5.05 to $5.28 27,358 2.00 0.90% to 2.55% -27.02% to -25.42% 2001 2,863 $6.92 to $7.08 20,014 - 0.90% to 2.25% -20.18% to -19.36% 2000 635 $8.72 to $8.78 5,554 * * * ING VP Balanced 2003 65 $10.31 to $10.58 686 **** 0.75% to 1.20% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING VP Bond 2003 6,558 $10.27 to $11.15 72,179 2.14 0.75% to 2.25% 3.21% to 4.30% 2002 4,668 $10.58 to $10.69 49,590 *** 0.80% to 2.25% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
245 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING VP Growth 2003 33 $8.10 to $8.15 $ 267 - % 0.75% to 1.10% 17.44% 2002 7 $6.94 46 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING VP Index Plus LargeCap 2003 4,385 $7.85 to $10.29 35,281 0.79 0.75% to 2.55% 10.41% to 11.81% 2002 634 $7.11 to $7.31 4,589 0.15 0.75% to 2.55% -29.03% to -22.23% 2001 87 $9.36 to $9.40 812 2.73 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING VP Index Plus MidCap 2003 1,168 $9.67 to $10.65 11,606 0.31 0.75% to 2.55% 14.98% to 16.44% 2002 692 $8.41 to $8.64 5,909 0.31 0.75% to 2.55% -14.79% to -12.82% 2001 83 $9.87 to $9.91 820 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING VP Index Plus SmallCap 2003 811 $9.90 to $10.54 8,241 0.10 0.75% to 2.55% 16.88% to 18.51% 2002 465 $8.47 to $8.70 4,005 0.36 0.75% to 2.55% -15.89% to -13.95% 2001 67 $10.07 to $10.11 680 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING VP International Equity 2003 7 $8.23 57 **** 0.75% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** ****
246 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING VP Small Company 2003 70 $9.28 to $10.70 $ 660 0.25 % 0.75% to 1.35% 23.24% to 23.41% 2002 21 $7.54 to $7.56 156 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING VP Value Opportunity 2003 241 $7.01 to $7.30 1,734 0.71 0.75% to 2.55% 8.51% to 10.11% 2002 166 $6.46 to $6.63 1,086 0.40 0.75% to 2.55% -28.22% to -26.66% 2001 33 $9.00 to $9.04 298 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** ING VP Convertible 2003 296 $10.61 to $10.99 3,209 0.94 0.95% to 2.55% 11.92% to 13.30% 2002 107 $9.48 to $9.70 1,034 3.17 0.95% to 2.55% -9.37% to -7.79% 2001 18 $10.46 to $10.52 194 (10.36) 0.95% to 2.20% ** 2000 ** ** ** ** ** ** ING VP Growth and Income 2003 126 $10.26 to $10.77 1,357 **** 0.75% to 1.00% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** ING VP Growth Opportunities 2003 3,251 $6.05 to $6.27 19,919 - 0.75% to 2.25% 16.57% to 17.86% 2002 1,895 $5.19 to $5.32 9,918 - 0.75% to 2.25% -33.03% to -32.10% 2001 671 $7.75 to $7.82 5,219 ** 0.90% to 2.25% ** 2000 ** ** ** ** ** **
247 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING International Value 2003 37 $9.67 to $10.73 $ 361 - % 0.75% to 1.00% 14.44% to 14.52% 2002 5 $8.45 to $8.47 42 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** ING VP Large Company Value 2003 189 $8.72 to $9.04 1,686 0.15 0.95% to 2.55% 11.22% to 12.58% 2002 120 $7.84 to $8.03 958 1.28 0.95% to 2.55% -24.40% to -23.16% 2001 15 $10.37 to $10.45 156 0.92 0.95% to 2.55% ** 2000 ** ** ** ** ** ** ING VP LargeCap Growth 2003 259 $7.12 to $7.38 1,888 - 0.95% to 2.25% 17.43% to 18.84% 2002 163 $6.06 to $6.21 1,006 0.48 0.95% to 2.25% -36.68% to -35.45% 2001 56 $9.57 to $9.62 533 ** 0.95% to 2.25% ** 2000 ** ** ** ** ** ** ING VP MagnaCap 2003 2,433 $7.85 to $8.17 19,499 0.46 0.90% to 2.55% 12.63% to 14.11% 2002 1,746 $7.00 to $7.16 12,338 1.02 0.90% to 2.25% -24.73% to -23.74% 2001 579 $9.30 to $9.39 5,402 1.36 0.90% to 2.25% ** 2000 ** ** ** ** ** ** ING VP MidCap Opportunities 2003 28 $8.81 250 - 0.75% 4.01% 2002 2 $7.24 12 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
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Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ING VP SmallCap Opportunities 2003 11,824 $5.56 to $5.77 $ 66,673 - % 0.75% to 2.25% 22.10% to 23.55% 2002 6,553 $4.55 to $4.67 30,118 - 0.75% to 2.25% -45.05% to -44.14% 2001 1,737 $8.28 to $8.36 14,437 ** 0.90% to 2.25% ** 2000 ** ** ** ** ** ** INVESCO VIF - Financial Services 2003 5,215 $8.78 to $9.13 46,699 - 0.80% to 2.55% 13.58% to 15.13% 2002 2,931 $7.73 to $7.92 22,941 1.15 0.90% to 2.55% -17.15% to -15.76% 2001 256 $9.33 to $9.39 2,404 2.70 0.95% to 2.25% ** 2000 ** ** ** ** ** ** INVESCO VIF - Health Sciences 2003 7,678 $8.46 to $8.80 66,241 - 0.80% to 2.55% 12.50% to 13.99% 2002 4,013 $7.52 to $7.72 30,558 - 0.90% to 2.55% -26.42% to -24.98% 2001 1,052 $10.22 to $10.29 10,790 3.60 0.95% to 2.55% ** 2000 ** ** ** ** ** ** INVESCO VIF - Leisure 2003 2,372 $9.35 to $9.57 22,451 - 0.95% to 2.55% 11.71% to 12.99% 2002 724 $8.39 to $8.47 6,097 *** 0.95% to 2.25% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** INVESCO VIF - Utilities 2003 3,004 $6.65 to $6.92 20,371 - 0.80% to 2.55% 6.23% to 7.64% 2002 1,227 $6.26 to $6.43 7,783 1.12 0.95% to 2.55% -22.62% to -20.91% 2001 119 $8.09 to $8.13 964 3.07 0.95% to 1.90% ** 2000 ** ** ** ** ** **
249 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Janus Aspen Series Balanced 2003 435 $9.73 to $10.24 $ 4,261 0.80 % 0.75% to 1.20% 5.65% to 5.95% 2002 54 $9.21 to $9.25 496 *** 0.75% to 1.10% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Janus Aspen Series Flexible Income 2003 153 $10.27 to $11.54 1,763 0.88 0.75% to 1.20% 4.75% to 5.00% 2002 26 $10.97 to $10.99 283 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Janus Aspen Series Growth 2003 98 $8.26 to $10.35 832 - 0.75% to 1.10% 15.36% to 15.58% 2002 27 $7.19 192 *** 0.75% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Janus Aspen Series Worldwide Growth 2003 857 $7.25 to $10.31 6,415 0.62 0.75% to 2.55% 7.41% to 8.95% 2002 515 $6.75 to $6.93 3,534 0.52 0.75% to 2.55% -27.58% to 26.20% 2001 139 $9.32 to $9.39 1,298 0.33 0.95% to 2.40% ** 2000 ** ** ** ** ** ** Colonial Small Cap Value 2003 904 $11.94 to $11.99 10,812 **** 1.25% to 2.25% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** ****
250 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Liberty Asset Allocation 2003 50 $11.10 to $11.12 $ 560 **** % 1.40% to 1.80% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** LIberty Equity 2003 81 $7.21 to $7.35 595 - 1.40% to 1.90% 11.61% to 11.89% 2002 75 $6.46 to $6.57 487 0.23 1.40% to 1.90% -29.17% to -28.66% 2001 88 $9.12 to $9.21 807 - 1.40% to 1.80% -19.72% to -19.28% 2000 94 $11.36 to $11.41 1,071 * * * Liberty Federal Securities 2003 9 $10.11 to $12.95 88 **** 0.75% to 1.70% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** Liberty Small Company Growth 2003 5 $9.32 to $12.92 65 **** 0.75% to 1.80% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** **** Oppenheimer Global Securities 2003 188 $9.26 to $10.76 1,775 0.30 0.75% to 1.35% 21.20% to 21.51% 2002 27 $7.64 to $7.67 205 *** 0.75% to 1.10% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** ***
251 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Oppenheimer Strategic Bond 2003 20 $10.51 to $11.94 $ 233 1.61 % 0.75% to 1.35% 11.74% to 11.90% 2002 2 $10.65 to $10.67 16 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** PIMCO High Yield 2003 47,912 $10.67 to $11.93 536,751 5.71 0.50% to 2.55% 14.48% to 16.16% 2002 31,353 $9.32 to $10.27 305,237 8.20 0.80% to 2.55% -4.80% to -1.63% 2001 23,564 $9.79 to $10.44 236,343 7.91 0.50% to 2.25% -19.72% to -19.28% 2000 16,336 $9.88 to $10.17 162,857 * * 0.30% to 1.57% PIMCO StocksPLUS Growth and Income 2003 19,426 $8.84 to $9.58 177,728 1.17 0.80% to 2.25% 14.36% to 15.70% 2002 22,790 $7.73 to $8.28 181,637 2.69 0.80% to 2.25% -22.00% to -20.84% 2001 23,718 $9.91 to $10.46 241,065 4.22 0.80% to 2.25% -13.15% to -12.17% 2000 22,158 $11.56 to $11.91 257,484 * * * Pioneer Equity-Income VCT 2003 94 $8.96 to $10.18 860 1.35 0.75% to 1.35% 8.59% to 8.82% 2002 22 $8.27 to $8.28 179 *** 0.75% to 0.95% *** 2001 *** *** *** *** *** *** 2000 *** *** *** *** *** *** Pioneer Fund VCT 2003 5,804 $7.92 to $8.25 46,877 0.62 0.75% to 2.55% 7.76% to 9.42% 2002 2,697 $7.35 to $7.54 20,064 1.08 0.80% to 2.55% -21.47% to -19.87% 2001 243 $9.36 to $9.41 2,275 0.91 0.95% to 1.90% ** 2000 ** ** ** ** ** **
252 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Pioneer Mid-Cap Value VCT 2003 11,187 $10.43 to $11.20 $ 123,016 0.24 % 0.75% to 2.25% 17.37% to 18.77% 2002 5,685 $9.27 to $9.43 53,062 0.56 0.75% to 2.25% -13.36% to -12.03% 2001 480 $10.70 to $10.72 5,139 ** 1.25% to 2.25% ** 2000 ** ** ** ** ** ** Pioneer Small Company VCT 2003 548 $8.57 to $8.88 4,802 - 0.95% to 2.55% 11.27% to 12.55% 2002 437 $7.70 to $7.89 3,417 0.03 0.95% to 2.55% -19.29% to -17.90% 2001 98 $9.54 to $9.61 938 ** 0.95% to 2.55% ** 2000 ** ** ** ** ** ** ProFund VP Bull 2003 6,409 $7.28 to $7.52 47,306 - 0.90% to 2.25% 10.77% to 11.90% 2002 4,706 $6.57 to $6.72 31,265 - 0.90% to 2.25% -25.68% to -24.66% 2001 2,316 $8.84 to $8.92 20,583 ** 1.25% to 2.25% ** 2000 ** ** ** ** ** ** ProFund VP Europe 30 2003 2,010 $6.76 to $6.99 13,772 - 0.90% to 2.25% 13.38% to 14.59% 2002 2,589 $5.96 to $6.10 15,627 - 0.90% to 2.25% -27.49% to -26.42% 2001 764 $8.22 to $8.29 6,312 ** 0.90% to 2.25% ** 2000 ** ** ** ** ** ** ProFund VP Rising Rates Opportunity 2003 1,406 $9.26 to $9.27 13,015 **** 0.95% to 2.10% **** 2002 **** **** **** **** **** **** 2001 **** **** **** **** **** **** 2000 **** **** **** **** **** ****
253 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- ProFund VP Small Cap 2003 9,820 $8.68 to $9.04 $ 87,178 - % 0.90% to 2.55% 23.07% to 24.35% 2002 5,371 $7.11 to $7.27 38,612 - 0.90% to 2.25% -24.20% to -23.15% 2001 2,118 $9.38 to $9.46 19,968 ** 1.25% to 2.25% ** 2000 ** ** ** ** ** ** Prudential Jennison 2003 10,635 $4.75 to $5.03 52,031 - 0.90% to 2.55% 14.73% to 16.17% 2002 8,904 $4.14 to $4.33 37,748 - 0.90% to 2.55% -33.33% to -31.81% 2001 7,335 $6.21 to $6.35 45,991 - 0.90% to 2.55% -20.20% to -19.62% 2000 987 $7.82 to $7.85 7,732 * * * SP Jennison International Growth 2003 8,648 $4.81 to $5.05 42,660 - 0.90% to 2.55% 19.95% to 21.45% 2002 3,751 $4.01 to $4.16 15,341 - 0.90% to 2.55% -25.05% to -23.53% 2001 2,097 $5.35 to $5.44 11,310 0.24 0.90% to 2.25% -37.19% to -36.52% 2000 318 $8.55 to $8.57 2,720 * * ** Putnam VT Discovery Growth 2003 384 $7.15 to $7.41 2,805 - 0.95% to 2.55% 19.57% to 21.08% 2002 271 $5.98 to $6.12 1,645 - 0.95% to 2.55% -31.34% to -30.22% 2001 66 $8.71 to $8.77 577 ** 0.95% to 2.40% ** 2000 ** ** ** ** ** ** Putnam VT Growth and Income 2003 331 $8.03 to $8.50 2,776 1.53 0.95% to 2.55% 10.30% to 11.55% 2002 220 $7.28 to $7.62 1,662 1.62 0.95% to 2.55% -21.30% to -19.79% 2001 48 $9.25 to $9.50 455 ** 0.95% to 2.20% ** 2000 ** ** ** ** ** **
254 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- Putnam VT International Growth and Income 2003 365 $9.11 to $9.44 $ 3,406 1.60 % 0.95% to 2.55% 15.17% to 16.54% 2002 371 $7.91 to $8.10 2,981 0.28 0.95% to 2.55% -16.21% to -14.65% 2001 64 $9.44 to $9.49 604 ** 0.95% to 1.90% ** 2000 ** ** ** ** ** ** Smith Barney High Income 2003 22 $13.46 to $13.63 302 - 1.25% to 1.40% 19.33% to 19.46% 2002 28 $11.28 to $11.41 319 24.02 1.25% to 1.40% -4.57% to -4.44% 2001 31 $11.82 to $11.94 370 12.01 1.25% to 1.40% -5.14% to -4.94% 2000 36 $12.46 to $12.56 446 * * * Smith Barney International All Cap Growth 2003 20 $9.96 to $10.09 201 - 1.25% to 1.40% 12.93% to 13.12% 2002 23 $8.82 to $8.92 201 0.95 1.25% to 1.40% -26.74% to -26.64% 2001 25 $12.04 to $12.16 300 - 1.25% to 1.40% -32.13% to -32.03% 2000 26 $17.74 to $17.89 455 * * * Smith Barney Large Cap Value 2003 24 $15.63 to $15.83 368 - 1.25% to 1.40% 10.93% to 11.01% 2002 26 $14.09 to $14.26 371 3.74 1.25% to 1.40% -26.46% to -26.30% 2001 29 $19.16 to $19.35 563 1.39 1.25% to 1.40% -9.45% to -9.33% 2000 33 $21.16 to $21.34 692 * * * Smith Barney Money Market 2003 7 $12.46 84 0.88 1.40% -0.56% 2002 11 $12.53 to $12.68 143 1.30 1.25% to 1.40% -0.16% to -0.00% 2001 17 $12.55 to $12.68 221 3.49 1.25% to 1.40% 2.28% to 2.42% 2000 13 $12.27 to $12.38 156 * * *
255 GOLDEN AMERICAN LIFE INSURANCE COMPANY SEPARATE ACCOUNT B Notes to Financial Statements-Unaudited --------------------------------------------------------------------------------
Unit Fair Net Investment Units Value (lowest Assets Income Expense Ratio Total Return Division (000's) to highest) (000's) Ratio (lowest to highest) (lowest to highest) --------------------------------------- -------- ---------------- --------- ---------- ------------------- ------------------- UBS Tactical Allocation 2003 404 $7.84 to $8.13 $ 3,253 0.62 % 0.95% to 2.55% 11.68% to 13.07% 2002 217 $7.02 to $7.19 1,548 0.45 0.95% to 2.55% -25.08% to -23.67% 2001 84 $9.37 to $9.42 787 ** 0.95% to 2.20% ** 2000 ** ** ** ** ** **
256 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS INDEX Page ---- PART I. FINANCIAL INFORMATION (Unaudited) Item 1. Financial Statements: Condensed Consolidated Statements of Income F-1 Condensed Consolidated Balance Sheets F-2 Condensed Consolidated Statements of Changes in Shareholder's Equity F-3 Condensed Consolidated Statements of Cash Flows F-4 Notes to Condensed Consolidated Financial Statements F-5 Item 2. Management's Narrative Analysis of the Results of Operations and Financial Condition F-11 Item 4. Controls and Procedures F-20 PART II. OTHER INFORMATION Item 1. Legal Proceedings F-21 Item 6. Exhibits and Reports on Form 8-K F-21 Signatures F-22 PART I. FINANCIAL INFORMATION (UNAUDITED) Item 1. Financial Statements GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARIES (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) Condensed Consolidated Statements of Income (Unaudited) (Millions)
Three months ended September 30, Nine months ended September 30, 2003 2002 2003 2002 ---------------- ---------------- ---------------- ---------------- Revenue: Fee income $ 89.4 $ 58.2 $ 221.2 $ 167.3 Net investment income 52.7 58.0 167.8 132.3 Net realized capital gains 15.6 25.2 87.8 0.4 Other loss - - (0.1) - ---------------- ---------------- ---------------- ---------------- Total revenue 157.7 141.4 476.7 300.0 ---------------- ---------------- ---------------- ---------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 108.5 100.9 271.7 212.1 Underwriting, acquisition, and insurance expenses: General expenses 28.7 31.8 81.7 106.1 Commissions 72.4 75.9 175.2 239.8 Policy acquisition costs deferred (58.4) (86.4) (150.3) (242.9) Amortization of deferred policy acquisition costs and value of business acquired 41.7 96.5 129.9 129.2 Other: Expense and charges reimbursed under modified coinsurance agreements (37.7) (20.4) (88.8) (77.6) Interest expense 3.5 3.3 10.3 12.7 ---------------- ---------------- ---------------- ---------------- Total benefits, losses and expenses 158.7 201.6 429.7 379.4 ---------------- ---------------- ---------------- ---------------- (Loss) income before income taxes and cumulative effect of change in accounting principle (1.0) (60.2) 47.0 (79.4) Income tax (benefit) expense (7.8) (19.2) 7.3 (25.7) ---------------- --------------- ---------------- ---------------- Income (loss) before cumulative effect of change in accounting principle 6.8 (41.0) 39.7 (53.7) Cumulative effect of change in accounting principle - - - (135.3) ---------------- ---------------- ---------------- ---------------- Net income (loss) $ 6.8 $ (41.0) $ 39.7 $ (189.0) ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. F-1 GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARIES (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) Condensed Consolidated Balance Sheets (Millions, except share data)
September 30, 2003 December 31, (Unaudited) 2002 ---------------- ---------------- Assets Investments: Fixed maturities, available for sale, at fair value (amortized cost of $5,229.3 at 2003 and $4,720.1 at 2002) $ 5,458.8 $ 4,936.4 Equity securities, at fair value: Investment in mutual funds (cost of $9.9 at 2003 and $22.9 at 2002) 9.3 19.0 Mortgage loans on real estate 770.3 482.4 Policy loans 17.2 16.0 Other investments 26.6 2.2 ---------------- ---------------- Total investments 6,282.2 5,456.0 Cash and cash equivalents 55.5 148.5 Accrued investment income 64.5 61.9 Reinsurance recoverable 14.3 196.9 Receivable for securities sold 21.7 - Deferred policy acquisition costs 796.9 678.0 Value of business acquired 8.7 8.5 Other assets 16.2 5.3 Assets held in separate accounts 14,692.5 11,029.3 ---------------- ---------------- Total assets $ 21,952.5 $ 17,584.4 ================ ================ Liabilities and Shareholder's Equity Policy liabilities and accruals: Future policy benefits and claims reserves $ 5,395.9 $ 5,159.1 Notes to affiliates 170.0 170.0 Due to affiliates 9.1 - Payables for securities purchased 42.4 - Dollar roll obligations 111.0 40.0 Current income taxes 22.2 42.4 Deferred income taxes 129.3 79.8 Other liabilities 36.4 64.7 Liabilities related to separate accounts 14,692.5 11,029.3 ---------------- ---------------- Total liabilities 20,608.8 16,585.3 ---------------- ---------------- Shareholder's equity Common stock (250,000 shares authorized, issued and outstanding; $10.00 per share par value) 2.5 2.5 Additional paid-in capital 1,358.4 1,128.4 Accumulated other comprehensive income 77.0 2.1 Retained deficit (94.2) (133.9) ---------------- ---------------- Total shareholder's equity 1,343.7 999.1 ---------------- ---------------- Total liabilities and shareholder's equity $ 21,952.5 $ 17,584.4 ================ ================
The accompanying notes are an integral part of these financial statements. F-2 GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARIES (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) Condensed Consolidated Statements of Changes in Shareholder's Equity (Unaudited) (Millions)
Nine Months Ended September 30, 2003 2002 ---------------- ---------------- Shareholder's equity, beginning of period $ 999.1 $ 817.8 Comprehensive income (loss): Net income (loss) 39.7 (189.0) Other comprehensive income net of tax: unrealized gain on securities ($115.2 and $20.8, pretax year to date) 74.9 13.5 ---------------- ---------------- Total comprehensive income (loss) 114.6 (175.5) Loss on sale to affiliate - (3.0) Contribution of capital 230.0 239.7 ---------------- ---------------- Shareholder's equity, end of period $ 1,343.7 $ 879.0 ================ ================
The accompanying notes are an integral part of these financial statements. F-3 GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARIES (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) Condensed Consolidated Statements of Cash Flows (Unaudited) (Millions)
Nine months ended September 30, 2003 2002 ---------------- ---------------- Net cash provided by operating activities $ 260.0 $ 92.0 Cash Flows from Investing Activities Proceeds from the sale, maturity, or repayment of: Fixed maturities available for sale 5,696.4 5,534.2 Equity securities 11.4 - Mortgage loans on real estate 36.5 12.4 Acquisition of investments: Fixed maturities available for sale (6,126.8) (8,043.7) Equity securities - (22.8) Mortgage loans on real estate (324.4) (135.1) Other investments (24.4) (0.1) Disposal of subsidiary at book value - (31.6) Proceeds from sale of interest in subsidiary - 27.7 (Increase) decrease in policy loans (1.2) (0.9) Purchase of property and equipment (0.6) (0.4) ---------------- ---------------- Net cash used in investing activities (733.1) (2,660.3) ---------------- ---------------- Cash Flows from Financing Activities Deposits and interest credited for investment contracts 1,152.7 3,345.4 Maturities and withdrawals from insurance and investment contracts (249.0) (136.1) Transfers to separate accounts (888.1) (791.6) Repayment of notes payable - (76.4) Cash received on reinsurance recapture 134.5 - Contribution of capital from parent 230.0 245.0 ---------------- ---------------- Net cash provided by financing activities 380.1 2,586.3 ---------------- ---------------- Net (decrease) increase in cash and cash equivalents (93.0) 18.0 Cash and cash equivalents, beginning of period 148.5 195.7 ---------------- ---------------- Cash and cash equivalents, end of period $ 55.5 $ 213.7 ================ ================
The accompanying notes are an integral part of these financial statements. F-4 GOLDEN AMERICAN LIFE INSURANCE COMPANY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) Notes to Condensed Financial Statements (Unaudited) -------------------------------------------------------------------------------- 1. Basis of Presentation Golden American Life Insurance Company ("Golden American") and through April 1, 2002, its wholly-owned subsidiary, First Golden American Life Insurance Company of New York ("First Golden") (collectively the "Company") are providers of financial products and services in the United States. Golden American, a wholly-owned subsidiary of Equitable Life Insurance Company of Iowa ("Equitable Life" or the "Parent"), is a stock life insurance company organized under the laws of the State of Delaware. Golden American was originally incorporated under the laws of the State of Minnesota on January 2, 1973, in the name of St. Paul Life Insurance Company. Equitable Life is a wholly-owned subsidiary of Lion Connecticut Holding, Inc. ("Lion Connecticut") which is an indirect wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. On June 25, 2003, each Board of Directors and each sole shareholder of Equitable Life Insurance Company of Iowa, United Life & Annuity Insurance Company and USG Annuity & Life Company (the "Merger Companies") and the Board of Directors and sole shareholder of the Company approved a plan to merge the Merger Companies with and into the Company. It is anticipated that the merger will be effective on January 1, 2004 (the "merger date"), subject to certain regulatory approvals. As of the merger date, the Merger Companies will cease to exist and will be succeeded by the Company. The Merger Companies, as well as the Company, are indirect, wholly-owned subsidiaries of ING. The Company is currently a Delaware stock life insurance company. Immediately prior to the merger, it is anticipated that the Company will become an Iowa insurance company. It is also anticipated that upon the merger the Company will be renamed ING USA Annuity and Life Insurance Company. On July 21, 2003, the Insurance Division of the State of Iowa approved the Articles of Merger of Golden American with the Merger Companies. Also on July 21, 2003, the Insurance Division of the State of Iowa approved the Restated Articles of Incorporation, effectively approving the re-domestication of the Company upon merger. The condensed consolidated financial statements and notes as of September 30, 2003 and December 31, 2002 and for the three and nine-month periods ended September 30, 2003 and 2002 ("interim periods") have been prepared in accordance with accounting principles generally accepted in the United States of America and are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and related notes as presented in the Company's 2002 Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. Certain reclassifications have been made to 2002 financial information to conform to the 2003 presentation. F-5 The Company conducts its business through one operating segment, U.S. Financial Services ("USFS"), and revenue reported by the Company is predominantly derived from external customers. 2. Recently Adopted Accounting Standards Accounting for Goodwill and Other Intangible Assets During 2002, the Company adopted Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards ("FAS") No. 142, Goodwill and Other Intangible Assets ("FAS No.142"). Effective January 1, 2002, the Company applied the non-amortization provision of the new standard, therefore, the Company's net income is comparable for all periods presented. The adoption of this standard resulted in an impairment loss of $135.3 million, which was recorded by the Company in the fourth quarter of 2002. This impairment loss represented the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge was shown as a change in accounting principle on the December 31, 2002 Consolidated Income Statement. In accordance with FAS No. 142, a transitional impairment loss for goodwill should be recognized in the first interim period of the year of initial adoption, regardless of the period in which it was measured. The aggregate amount of the accounting change should be included in restated net income of the first interim period, and each subsequent period of that year should be presented on the restated basis. As such, net income for the nine months ended September 30, 2002, has been restated to reflect the January 1, 2002 impairment charge, which was recorded in the fourth quarter of 2002. 3. New Accounting Pronouncements In July 2003, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, which the Company intends to adopt on January 1, 2004. The impact on the financial statements is not known at this time. F-6 The Derivative Implementation Group ("DIG") responsible for issuing guidance on behalf of the FASB for implementation of FAS No. 133, Accounting for Derivative Instruments and Hedging Activities recently issued Statement Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Credit Worthiness of the Obligor under Those Instruments ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or total return debt index may be determined to contain embedded derivatives that are required to be bifurcated. The required date of adoption of DIG B36 for the Company is October 1, 2003. The Company has completed its evaluation of DIG B36 and determined that the Company has modified coinsurance treaties that are applicable to require implementation of the guidance. The applicable contracts, however, have been determined to generate embedded derivatives with a fair value of zero. Therefore, the guidance, while implemented, will have no impact on the Company's financial position, results of operations or cash flows. 4. Deferred Policy Acquisition Costs and Value of Business Acquired Deferred Policy Acquisition Costs ("DAC") is an asset, which represents certain costs of acquiring certain insurance business, which are deferred and amortized. These costs, all of which vary with and are primarily related to the production of new and renewal business, consist principally of commissions, certain underwriting and contract issuance expenses, and certain agency expenses. Value of business acquired ("VOBA") is an asset, which represents the present value of estimated net cash flows embedded in the Company's contracts, which existed at the time the Company was acquired by ING. DAC and VOBA are evaluated for recoverability at each balance sheet date and these assets would be reduced to the extent that gross profits are inadequate to recover the asset. The amortization methodology varies by product type based upon two accounting standards: FAS No. 60, Accounting and Reporting by Insurance Enterprises ("FAS No. 60") and FAS No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and Realized Gains and Losses from the Sale of Investments ("FAS No. 97"). Under FAS No. 60, acquisition costs for traditional life insurance products, which primarily include whole life and term life insurance contracts, are amortized over the premium payment period in proportion to the premium revenue recognition. F-7 Under FAS No. 97, acquisition costs for universal life and investment-type products, which include universal life policies and fixed and variable deferred annuities, are amortized over the life of the blocks of policies (usually 25 years) in relation to the emergence of estimated gross profits from surrender charges, investment margins, mortality and expense margins, asset-based fee income, and actual realized gains (losses) on investments. Amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. VOBA activity for the nine months ended September 30, 2003 was as follows:
(Millions) ---------- Balance at December 31, 2002 $ 8.5 Adjustment for FAS No. 115 (8.8) Interest accrued at 7% 0.4 Amortization 8.6 ---------------- Balance at Sepember 30, 2003 $ 8.7 ================
5. Investments Impairments During the three months ended September 30, 2003, the Company determined that no fixed maturities had other than temporary impairments. During the three months ended September 30, 2002, the Company determined that four fixed maturities had other than temporary impairments. As a result, for the three months ended September 30, 2002, the Company recognized a pre-tax loss of $0.3 million to reduce the carrying value of the fixed maturities to their fair value at the time of impairment. During the first nine months of 2003, the Company determined that five fixed maturities had other than temporary impairments. As a result, for the nine months ended September 30, 2003, the Company recognized a pre-tax loss of $5.7 million to reduce the carrying value of the fixed maturities to their fair value at the time of impairment. During the first nine months of 2002, the Company determined that ten fixed maturities had other than temporary impairments. As a result, for the nine months ended September 30, 2002, the Company recognized a pre-tax loss of $7.2 million to reduce the carrying value of the fixed maturities to their fair value at the time of impairment. The fair value of the remaining impaired fixed maturities at September 30, 2003 and 2002 is $1.5 million and $4.1 million, respectively. F-8 6. Severance In December 2001, ING announced its intentions to further integrate and streamline the U.S.-based operations of ING Americas (which includes the Company) in order to build a more customer-focused organization. During the first quarter 2003, the Company performed a detail analysis of its severance accrual. As part of this analysis, the Company corrected the initial planned number of people to eliminate from 252 to 228 (corrected from the 2002 Annual Report on Form 10K) and extended the date of expected completion for severance actions to June 30, 2003. Activity for the nine months ended September 30, 2003 within the severance liability and positions eliminated related to such actions were as follows:
(Millions, except positions data) Liability Positions --------------------------------- ----------------- ---------------- Balance at December 31, 2002 $ 0.8 34.0 Payments (0.8) - Positions eliminated due to internal replacement jobs - (34.0) ---------------- ----------------- Balance at September 30, 2003 $ - - ================ =================
7. Income Taxes The effective tax rates for the three months ended September 30, 2003 and September 30, 2002 were 780.0% and 31.9%, respectively. The change in the three months rate was primarily caused by an increase in the deduction allowed for dividends received combined with a decrease in pre-tax income. The Company's effective tax rates for the nine months ended September 30, 2003 and 2002 were 15.5% and 32.4%, respectively. The change in the year-to-date rate was primarily caused by an increase in the deduction allowed for dividends received. 8. Commitments and Contingent Liabilities Commitments Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans or money market instruments at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. At September 30, 2003 and December 31, 2002, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $113.6 million and $77.0 million, respectively. F-9 Litigation The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. 9. Reinsurance In March 2003, the Company amended its reinsurance agreement with Security Life of Denver International ("SLDI"), an affiliate. Under this amendment, the Company terminated the reinsurance agreement for all inforce and new business and recaptured all in force business reinsured under the reinsurance agreement between the Company and SLDI retroactive to January 1, 2003. SLDI was released from all of its liabilities under the reinsurance agreement retroactive to January 1, 2003 and the Company reduced its reinsurance recoverable related to these liabilities by $150.1 million. On March 28, 2003, SLDI transferred assets to the Company in the amount of $185.6 million. The difference in amounts transferred on March 28, 2003 and the reduction of the reinsurance recoverable as of January 1, 2003 reflects adjustments on the investment income on the assets and letter of credit costs between January 1, 2003 and the date of the asset transfer. It also encompasses the net effect of a recapture fee paid in the amount of $5.0 million offset by the receipt of a $24.1 million negative ceding commission. The net impact of which was deferred in policy acquisition costs and is being amortized over the period of estimated future profits. F-10 Item 2. Management's Narrative Analysis of the Results of Operations and Financial Condition Overview The following narrative analysis of the results of operations and financial condition presents a review of Golden American Life Insurance Company ("Golden American") and through April 1, 2002, its wholly-owned subsidiary, First Golden American Life Insurance Company of New York ("First Golden") (collectively the "Company") as of September 30, 2003 and December 31, 2002 and for the three and nine-month periods ended September 30, 2003 and 2002. This review should be read in conjunction with the condensed consolidated financial statements and other data presented herein, as well as the "Management's Narrative Analysis of the Results of Operations and Financial Condition" section contained in the Company's 2002 Annual Report on Form 10-K. On June 25, 2003, each Board of Directors and each sole shareholder of Equitable Life Insurance Company of Iowa, United Life & Annuity Insurance Company and USG Annuity & Life Company (the "Merger Companies") and the Board of Directors and sole shareholder of the Company approved a plan to merge the Merger Companies with and into the Company. It is anticipated that the merger will be effective on January 1, 2004 (the "merger date"), subject to certain regulatory approvals. As of the merger date, the Merger Companies will cease to exist and will be succeeded by the Company. The Merger Companies, as well as the Company, are indirect, wholly-owned subsidiaries of ING. The Company is currently a Delaware stock life insurance company. Immediately prior to the merger, it is anticipated that the Company will become an Iowa insurance company. It is also anticipated that upon the merger the Company will be renamed ING USA Annuity and Life Insurance Company. Nature of Business The Company offers a portfolio of variable and fixed insurance products designed to meet customer needs for tax-advantaged savings for retirement and protection from death. The Company's variable and fixed insurance products are marketed by broker/dealers, financial institutions, and insurance agents. The Company's primary customers are consumers and corporations. F-11 Recently Adopted Accounting Standards Accounting for Goodwill and Other Intangible Assets During 2002, the Company adopted Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards ("FAS") No. 142, "Goodwill and Other Intangible Assets" ("FAS No.142"). Effective January 1, 2002, the Company applied the non-amortization provision of the new standard, therefore, the Company's net income is comparable for all periods presented. The adoption of this standard resulted in an impairment loss of $135.3 million which was recorded by the Company in the fourth quarter of 2002. This impairment loss represented the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge was shown as a change in accounting principle on the December 31, 2002 Consolidated Income Statement. In accordance with FAS No. 142, a transitional impairment loss for goodwill should be recognized in the first interim period of the year of initial adoption, regardless of the period in which it was measured. The aggregate amount of the accounting change should be included in restated net income of the first interim period, and each subsequent period of that year should be presented on the restated basis. As such, net income for the nine months ended September 30, 2002, has been restated to reflect the January 1, 2002 impairment charge, which was recorded in the fourth quarter of 2002. New Accounting Pronouncements In July 2003, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, which the Company intends to adopt on January 1, 2004. The impact on the financial statements is not known at this time. The Derivative Implementation Group ("DIG") responsible for issuing guidance on behalf of the FASB for implementation of FAS No. 133, Accounting for Derivative Instruments and Hedging Activities recently issued Statement Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Credit Worthiness of the Obligor under Those Instruments ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or total return debt index may be determined to contain embedded derivatives that are required to be bifurcated. The required date of adoption of DIG B36 for the Company is October 1, 2003. The Company has completed its evaluation of DIG B36 and determined that the Company has modified coinsurance treaties that are applicable to require implementation of the guidance. The applicable contracts, however, have been determined to generate embedded derivatives with a fair value of zero. Therefore, the guidance, while implemented, will have no impact on the Company's financial position, results of operations or cash flows. F-12 Critical Accounting Policies General The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and related footnotes. These estimates and assumptions are evaluated on an on-going basis based on historical developments, market conditions, industry trends and other information that is reasonable under the circumstances. There can be no assurance that actual results will conform to estimates and assumptions, and that reported results of operations will not be affected in a materially adverse manner by the need to make future accounting adjustments to reflect changes in these estimates and assumptions from time to time. The Company has identified the following estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability. In developing these estimates management makes subjective and complex judgments that are inherently uncertain and subject to material changes as facts and circumstances develop. Although variability is inherent in these estimates, management believes the amounts provided are appropriate based upon the facts available upon compilation of the condensed consolidated financial statements. Investment Impairment Testing The Company reviews the general account investments for impairments by considering the length of the time and the extent to which the market value has been less than cost; the financial condition and near term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. Based on the facts and circumstances of each case, management uses judgment in deciding whether any calculated impairments are temporary or other than temporary. For those impairments judged to be other than temporary, the Company reduces the carrying value of those investments to the current fair value and records impairment losses for the difference. Amortization of Deferred Acquisition Costs and Value of Business Acquired Deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA") are amortized with interest over the life of the contracts (usually 25 years) in relation to the present value of estimated gross profits from projected interest margins, asset-based fees, policy administration and surrender charges less policy maintenance fees. F-13 Changes in assumptions can have a significant impact on the calculation of DAC/VOBA and its related amortization patterns. Due to the relative size of the DAC/VOBA balance and the sensitivity of the calculation to minor changes in the underlying assumptions and the related volatility that could result in the reported DAC/VOBA balance, the Company performs a quarterly analysis of DAC/VOBA. At each balance sheet date, actual historical gross profits are reflected and expected future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated profit requires that the amortization rate be revised retroactively to the date of policy or contract issuance ("unlocking"), which could be significant. The cumulative difference related to prior periods is recognized as a component of the current period's amortization, along with amortization associated with the actual gross profits of the period. In general, increases in estimated returns result in increased expected future profitability and may lower the rate of amortization, while increases in lapse/surrender and mortality assumptions or decreases in returns reduce the expected future profitability of the underlying business and may increase the rate of amortization. One of the most significant assumptions involved in the estimation of future gross profits for variable universal life and variable deferred annuity products is the assumed return associated with future separate account performance. To reflect the near-term and long-term volatility in the equity markets this assumption involves a combination of near-term expectations and a long-term assumption about market performance. The overall return generated by the separate account is dependent on several factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds as well as equity sector weightings. Forward-Looking Information/Risk Factors In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions readers regarding certain forward-looking statements contained in this report and in any other statements made by, or on behalf of, the Company, whether or not in future filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Statements using verbs such as "expect," "anticipate," "believe" or words of similar import generally involve forward-looking statements. Without limiting the foregoing, forward-looking statements include statements which represent the Company's beliefs concerning future levels of sales and redemptions of the Company's products, investment spreads and yields, or the earnings and profitability of the Company's activities. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which are subject to change. These uncertainties and contingencies could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. F-14 Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable developments. Some may be national in scope, such as general economic conditions, changes in tax law and changes in interest rates (for additional information, see the Legislative Initiatives section below). Some may relate to the insurance industry generally, such as pricing competition, regulatory developments and industry consolidation. Others may relate to the Company specifically, such as credit, volatility and other risks associated with the Company's investment portfolio. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the SEC. The Company disclaims any obligation to update forward-looking information. Results of Operations Fee income increased by $31.2 million and $53.9 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The increase is primarily due to an increase in average variable assets under management between the respective time periods. Net investment income decreased by $5.3 million for the three months ended September 30, 2003 compared to the same period in 2002, primarily due to lower yields and futures losses. Net investment income increased by $35.5 million for the nine months ended September 30, 2003 compared to the same period in 2002, primarily due to an increase in investment asset levels, partially offset by futures losses and lower yields. Net realized capital gains for the three months ended September 30, 2003 decreased by $9.6 million compared to the same period in 2002, primarily due to an increasing treasury rate during the three months ended September 30, 2003, versus a decreasing treasury rate during the same period in 2002. The 10-year treasury yield (constant maturities) decreased from 4.8% to 3.6% during the three months ended September 30, 2002 and increased from 3.5% to 3.9% during the three months ended September 30, 2003. Net realized capital gains for the nine months ended September 30, 2003 increased by $87.4 million compared to the same period in 2002 primarily due to a decrease in the year-to-date average interest rate. A year-to-date average interest rate measurement is used when interest rates do not show either a steady increase or decrease over time. In a declining rate environment, the market value of fixed maturities held in the Company's portfolio increases, assuming no credit deterioration. In a rising rate environment, the market value of fixed maturities held decreases. The fluctuations in net realized gains reflect the impact of the interest rate environment on the overall sale of fixed maturities during the respective time periods. F-15 Other income for the three and nine months ended September 30, 2003, respectively, is comparable to that for the same periods in 2002. Interest credited and other benefits to policyholders increased $7.6 million and $59.6 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The increase is primarily due to an overall increase in fixed inforce business, partially offset by a reduction in the guarantee benefits reserve associated with the recovery of the equity markets. General expenses decreased $3.1 million and $24.4 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The decrease is primarily due to a decline in fixed business sales resulting in lower general expenses. Also contributing to the decrease is a lower allocation of corporate and service charges from the Company's parent and other affiliates who provide services to the Company, as a result of increased efficiencies gained from ING's company-wide cost reduction efforts. Commissions decreased $3.5 million and $64.6 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The decrease is primarily due to lower sales resulting in less commission. Also contributing to the decrease in commissions for the nine months ended September 30, 2003 is a negative ceding commission as a part of the recapture of a reinsurance agreement that was deferred in the policy acquisition costs deferred line. Policy acquisition costs deferred decreased $28.0 million and $92.6 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The decrease was primarily due to lower sales during the respective periods as well as to the deferral of a net gain attributed to the recapture of a reinsurance agreement. Amortization of deferred policy acquisition costs and value of business acquired for the three months ended September 30, 2003, decreased by $54.8 million, compared to the same period in 2002. Amortization of long-duration products is recorded in proportion to actual and estimated future gross profits. Estimated gross profits are computed based on underlying assumptions related to the underlying contracts, including but not limited to interest margins, mortality, lapse, premium persistency, expenses, and asset growth. The decrease in the amortization of deferred policy acquisition costs and value of insurance acquired reflects the impact of these variables on the overall book of business. Amortization of deferred policy acquisition costs and value of business acquired for the nine months ended September 30, 2003, is comparable to that for the same period in 2002. Expenses and charges reimbursed under modified coinsurance ("MODCO") agreements increased $17.3 million and $11.2 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods ended September 30, 2002. The increase is primarily due to an increase in expense allowances as a result of new business written and covered by MODCO. Interest expense for the three months ended September 30, 2003 is comparable to that for the same period in 2002. The decrease of $2.4 million for the nine months ended September 30, 2003, compared to the same period in 2002, however, is primarily due to the redemption of two notes on June 28, 2002. F-16 The cumulative effect of the change in accounting principle for the nine months ended September 30, 2002 was a loss of $135.3 million. As noted in the Recently Adopted Accounting Standards section, this write down is related to FAS No. 142, which addresses the value of goodwill and other intangible assets. Net income increased by $47.9 million and $228.7 million for the three and nine months ended September 30, 2003, respectively, compared to the same periods in 2002. Higher earnings for the three months ended September 30, 2003 are primarily the result of increased fee income, reduced amortization of deferred acquisition costs and value of business acquired, partially offset by decreased policy acquisition costs deferred. Higher earnings for the nine months ended September 30, 2003, are primarily the result of increased fee income, increased net investment income, increased net realized capital gains, combined with a decrease of general expenses and commissions, partially offset by decreased policy acquisition costs deferred. In addition, the earnings for the nine months ended September 30, 2002 were reduced by $132.3 million as a result of a cumulative effect of a change in accounting principle resulting from the write off of goodwill in accordance with FAS No. 142. Financial Condition Investments Fixed Maturities At September 30, 2003 and December 31, 2002, the Company's carrying value of available for sale fixed maturities represented 86.9% and 90.5%, respectively, the total general account invested assets. Total fixed maturities reflected net unrealized capital gains of $229.5 million and $216.3 million at September 30, 2003 and December 31, 2002, respectively. It is management's objective that the portfolio of fixed maturities be of high quality and be well diversified by market sector. The fixed maturities in the Company's portfolio are generally rated by external rating agencies and, if not externally rated, are rated by the Company on a basis believed to be similar to that used by the rating agencies. The average quality rating of the Company's fixed maturities portfolio was A+ at September 30, 2003 and December 31, 2002. Fixed maturities rated BBB and below may have speculative characteristics and changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than is the case with higher rated fixed maturities. F-17 The percentage of total fixed maturities by quality rating category is as follows:
September 30, December 31, 2003 2002 ---------------- ---------------- AAA 34.6 % 34.1 % AA 4.3 9.2 A 22.8 23.4 BBB 34.9 30.2 BB 2.5 2.3 B and below 0.9 0.8 ---------------- ---------------- Total 100.0 % 100.0 % ================ ================
The percentage of total fixed maturities by market sector is as follows:
September 30, December 31, 2003 2002 ---------------- ---------------- U.S. Corporate 56.5 % 59.8 % Residential Mortgaged-backed 14.6 13.2 Commercial/Multifamily Mortgage-backed 6.5 6.0 Foreign (1) 13.2 10.7 U.S. Treasuries/Agencies 0.3 4.2 Asset-backed 8.9 6.1 ---------------- ---------------- Total 100.0 % 100.0 % ================ ================
(1) Primarily U.S. dollar denominated The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis in accordance with FAS No. 115, Accounting for Certain Investments in Debt and Equity Securities. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a fixed maturity investment will not be collected, an other than temporary impairment is considered to have occurred. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss is accounted for as a realized loss. Liquidity and Capital Resources Liquidity is the ability of the Company to generate sufficient cash flows to meet the cash requirements of operating, investing, and financing activities. The Company's principal sources of liquidity are annuity premiums and product charges, investment income, maturing investments, proceeds from debt issuance, and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest and premium credits, investment purchases, repayment of debt, as well as withdrawals and surrenders. F-18 The Company's liquidity position is managed by maintaining adequate levels of liquid assets, such as cash or cash equivalents and short-term investments. Additional sources of liquidity include borrowing facilities to meet short-term cash requirements. The Company maintains a $40.0 million revolving loan agreement with ING America Insurance Holdings, Inc. ("ING AIH"), an affiliate of the Company, and the Company has established a $75.0 million revolving note facility with a national bank. Management believes that its sources of liquidity are adequate to meet the Company's short-term cash obligations. The National Association of Insurance Commissioners' ("NAIC") risk-based capital requirements require insurance companies to calculate and report information under a risk-based capital formula. These requirements are intended to allow insurance regulators to monitor the capitalization of insurance companies based upon the type and mixture of risks inherent in a Company's operations. The formula includes components for asset risk, liability risk, interest rate exposure, and other factors. The Company has complied with the NAIC's risk-based capital reporting requirements. Amounts reported indicate that the Company has total adjusted capital above all required capital levels. During the nine months ended September 30, 2003 and during the year ended December 31, 2002, the Company received capital contributions of $230.0 million and $356.3 million, respectively. Under the MODCO agreement, Golden American received a net reimbursement of expenses and charges of $89.3 million for the nine months ended September 30, 2003 and $100.9 million for the year ended December 31, 2002. The Company had a receivable from Equitable Life of $6.0 million as of September 30, 2003 and a payable to Equitable Life of $7.1 million as of December 31, 2002, each for a remaining amount of net cash settlement for the modified coinsurance agreement. Legislative Initiatives The Jobs and Growth Tax Relief Reconciliation Act of 2003 which was enacted in the second quarter may impact the Company. The Act's provisions, which reduce the tax rates on long-term capital gains and corporate dividends, impact the relative competitiveness of the Company's products especially variable annuities. Other legislative proposals under consideration include repealing the estate tax, changing the taxation of products, changing life insurance company taxation and making changes to nonqualified deferred compensation arrangements. Some of these proposals, if enacted, could have a material effect on life insurance, annuity and other retirement savings product sales. The impact on the Company's tax position and products cannot be predicted. F-19 Item 4. Controls and Procedures a) The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)) of the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company's periodic SEC filings is made known to them in a timely manner. b) There has not been any change in the internal controls over financial reporting of the Company that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect these internal controls. F-20 PART II. OTHER INFORMATION Item 1. Legal Proceedings The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. As with many financial services companies, affiliates of the Company have received requests for information from various governmental and self-regulatory agencies in connection with investigations related to trading in investment company shares. In each case, full cooperation and responses are being provided. The Company is also reviewing its policies and procedures in this area. Item 6. Exhibits and reports on Form 8-K (a) Exhibits 31.1 Certificate of David A. Wheat pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certificate of Keith Gubbay pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certificate of David A. Wheat pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certificate of Keith Gubbay pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. A Third Amendment to Asset Management Agreement dated as of August 18, 2003, between ING Investment Management LLC and Golden American Life Insurance Company (b) Reports on Form 8-K None. F-21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GOLDEN AMERICAN LIFE INSURANCE COMPANY (Registrant) November 12, 2003 By /s/ David A. Wheat ----------------- ------------------------------------------------- (Date) David A. Wheat Senior Vice President and Chief Financial Officer F-22 Exhibit 31.1 CERTIFICATION I, David A. Wheat, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Golden American Life Insurance Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date November 12, 2003 ------------------- By /s/ David A. Wheat -------------------------------------------------------- David A. Wheat Senior Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) OTHER FINANCIAL STATEMENTS AND INFORMATION INDEX
Page ---- Item 2. Acquisition or Disposition of Assets 3 Item 5. Other Events 3 Item 7. Financial Statements and Exhibits 5 (a) Financial Statements of Business Acquired 5 (b) Pro Forma Financial Information in Accordance with Accounting Principles Generally Accepted in the United States of America 5 (c) Exhibits 14
2 Item 2. Acquisition or Disposition of Assets On January 1, 2004 (the "merger date"), Equitable Life Insurance Company of Iowa ("ELIC"), USG Annuity & Life Company ("USG"), and United Life & Annuity Insurance Company ("ULA") (the "Merger Companies"), merged with and into Golden American Life Insurance Company ("Golden"). Also on January 1, 2004, immediately after the merger, Golden changed its name to ING USA Annuity and Life Insurance Company ("ING USA" or the "Company"). As of the merger date, the Merger Companies ceased to exist and were succeeded by the Company. ING USA is domiciled in Iowa and is a wholly-owned subsidiary of Lion Connecticut Holdings Inc., which is an indirect, wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. Statement of Financial Accounting Standards No. 141, Business Combinations, excludes transfers of net assets or exchanges of shares between entities under common control, and notes that certain provisions under Accounting Principles Board Opinion No. 16, Business Combinations ("APB 16"), provide a source of guidance for such transactions. In accordance with APB 16, financial information of the combined entity is presented as if the entities had been combined for the full year, and all comparative financial statements are restated and presented as if the entities had previously been combined, in a manner similar to a pooling-of-interests. Prior to the merger date, the Merger Companies were affiliated companies of ING USA and indirect, wholly-owned subsidiaries of ING. ELIC was domiciled in Iowa and offered various insurance products, including deferred and immediate annuities, variable annuities, and interest sensitive and traditional life insurance. ULA was also domiciled in Iowa and primarily offered annuity related insurance products, as well as life and health insurance that was ceded to other insurers. USG was domiciled in Oklahoma and offered various insurance products, including deferred fixed annuities, immediate annuities, and interest-sensitive life insurance. Each Board of Directors and each sole shareholder of the Merger Companies and the Board of Directors and sole shareholder of the Company approved the merger plan on June 25, 2003 (see Exhibit 99.8). The State of Iowa Insurance Division and the Department of Insurance of the State of Oklahoma also approved the merger. Item 5. Other Events Golden was renamed from "Golden American Life Insurance Company" to "ING USA Annuity and Life Insurance Company." The name change occurred immediately after the merger of ELIC, USG, and ULA with and into Golden, with the Company remaining as the surviving corporation under the name ING USA Annuity and Life Insurance Company. 3 The Company, formerly a Delaware insurance company, changed its state of domicile from Delaware to Iowa and became an Iowa insurance company immediately prior to the merger of ELIC, USG, and ULA, with and into Golden. On July 16, 2003, the Insurance Division of the State of Iowa approved the Restated Articles of Incorporation, effectively approving the re-domestication of the Company. The re-domestication was effective on January 1, 2004. 4 Item 7. Financial Statements and Exhibits (a) Financial Statements of Businesses Acquired Included are the financial statements of ELIC (the survivor to the merger with Ameribest Life Insurance Company, an affiliate, on January 1, 2003), USG, and ULA, prepared in conformity with statutory accounting principles ("SAP") (financial statements for these entities were not historically prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP")). These statements include audited statutory basis financial statements for the years ended December 31, 2002 and 2001, as well as unaudited statutory basis financial statements for the nine months ended September 30, 2003 and September 30, 2002 (financial statements for the three months ended September 30 are not required for statutory purposes). See (c) Exhibits for financial statements. (b) Pro Forma Financial Information in Accordance with Accounting Principles Generally Accepted in the United States of America Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2003 Unaudited Pro Forma Condensed Consolidated Statements of Income for the Nine Months Ended September 30, 2003 and 2002 Unaudited Pro Forma Condensed Consolidated Statements of Income for the Years Ended December 31, 2002, 2001, and 2000 Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements as of September 30, 2003, and for the periods ended December 31, 2002, 2001, and 2000, and September 30, 2003 and 2002 The following unaudited pro forma condensed consolidated financial information is based on the historical financial statements of ING USA, ELIC, USG, and ULA, and has been prepared to illustrate the effects of the merger of ELIC, USG, and ULA, with and into Golden. The unaudited pro forma condensed consolidated financial information is presented for illustration purposes only, and is not necessarily indicative of the operating results or financial position that would have occurred if the merger had been consummated, nor is it necessarily indicative of future operating results or financial position of the consolidated company. 5 Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2003 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ------------ --------- ----------------- ------------- Assets Investments: Fixed maturities, available for sale, at fair value $ 5,458.8 $ 3,800.2 $ 6,337.5 $ 611.7 $ - $ 16,208.2 Equity securities, at fair value: Common stock - 20.5 - - - 20.5 Preferred stock - 0.4 1.3 - - 1.7 Investment in mutual funds 9.3 120.0 - - - 129.3 Investment in subsidiaries - 1,878.8 - - (1,878.8)(1) - Mortgage loans on real estate 770.3 954.3 1,501.3 38.0 - 3,263.9 Real estate - 3.0 3.7 - - 6.7 Policy loans 17.2 127.9 31.9 0.9 - 177.9 Short-term investments - 127.2 22.0 - - 149.2 Other investments 26.6 207.0 (77.3) 8.4 (135.0)(2) 29.7 ------------- ------------ ------------ --------- ----------------- ------------- Total investments 6,282.2 7,239.3 7,820.4 659.0 (2,013.8) 19,987.1 Cash and cash equivalents 55.5 22.3 570.7 2.0 - 650.5 Accrued investment income 64.5 48.5 77.8 7.0 - 197.8 Reinsurance recoverable 14.3 6.4 0.7 - - 21.4 Receivable for securities sold 21.7 37.5 58.1 14.9 - 132.2 Deferred policy acquisition costs 796.9 791.5 145.8 2.8 - 1,737.0 Value of business acquired 8.7 70.2 33.8 3.3 - 116.0 Other assets 16.2 9.4 1.4 (0.1) - 26.9 Assets held in separate accounts 14,692.5 980.4 - 60.8 - 15,733.7 ------------- ------------ ------------ --------- ----------------- ------------- Total assets $ 21,952.5 $ 9,205.5 $ 8,708.7 $ 749.7 $ (2,013.8) $ 38,602.6 ============= ============ ============ ========= ================= ============= Liabilities and Shareholder's Equity Policy liabilities and accruals: Future policy benefits and claims reserves $ 5,395.9 $ 5,449.0 $ 7,266.4 $ 577.5 $ - $ 18,688.8 Notes to affiliates 170.0 - - - (135.0)(2) 35.0 Due to affiliates 9.1 22.2 20.7 1.3 - 53.3 Payables for securities purchased 42.4 66.6 83.3 14.8 - 207.1 Borrowed money 111.0 207.8 784.6 - - 1,103.4 Current income taxes 22.2 (19.3) (22.4) (1.7) - (21.2) Deferred income taxes 129.3 (75.2) (47.8) (8.9) - (2.6) Other liabilities 36.4 99.4 88.8 1.7 - 226.3 Liabilities related to separate accounts 14,692.5 980.4 - 60.7 - 15,733.6 ------------- ------------ ------------ --------- ----------------- ------------- Total liabilities 20,608.8 6,730.9 8,173.6 645.4 (135.0) 36,023.7 ------------- ------------ ------------ --------- ----------------- ------------- Shareholder's equity Common stock 2.5 5.0 2.5 8.4 (15.9)(1)(3) 2.5 Additional paid-in capital 1,358.4 3,600.3 1,468.2 188.7 (2,815.7)(1)(3) 3,799.9 Accumulated other comprehensive income 77.0 289.7 130.6 13.6 (207.6)(1) 303.3 Retained deficit (94.2) (1,420.4) (1,066.2) (106.4) 1,160.4 (1) (1,526.8) ------------- ------------ ------------ --------- ----------------- ------------- Total shareholder's equity 1,343.7 2,474.6 535.1 104.3 (1,878.8) 2,578.9 ------------- ------------ ------------ --------- ----------------- ------------- Total liabilities and shareholder's equity $ 21,952.5 $ 9,205.5 $ 8,708.7 $ 749.7 $ (2,013.8) $ 38,602.6 ============= ============ ============ ========= ================= =============
6 Unaudited Pro Forma Condensed Consolidated Statement of Income for the 9 Months Ended September 30, 2003 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ----------- ----------- ---------------- ------------- Revenue: Premiums $ - $ 20.6 $ 0.7 $ - $ - $ 21.3 Fee income 221.2 35.6 11.2 1.8 - 269.8 Net investment income 167.8 221.1 345.9 27.3 (7.6)(2) 754.5 Net realized capital gains (losses) 87.8 (1.5) (0.6) 8.9 - 94.6 Other income (loss) (0.1) 6.3 1.0 - - 7.2 ------------- ------------ ----------- ----------- ---------------- ------------- Total revenue 476.7 282.1 358.2 38.0 (7.6) 1,147.4 ------------- ------------ ----------- ----------- ---------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 271.7 226.0 276.3 20.0 - 794.0 Underwriting, acquisition, and insurance expenses: General expenses 81.7 45.0 26.2 2.4 - 155.3 Commissions 175.2 26.6 34.1 0.4 - 236.3 Policy acquisition costs deferred (150.3) (151.3) (43.3) (0.3) - (345.2) Amortization of deferred policy acquisition costs and value of business acquired 129.9 56.1 44.5 5.7 - 236.2 Other: Expense and charges reimbursed under modified coinsurance agreements (88.8) 89.3 - - - 0.5 Interest expense 10.3 5.0 4.6 - (7.6)(2) 12.3 ------------- ------------ ----------- ----------- ---------------- ------------- Total benefits, losses and expenses 429.7 296.7 342.4 28.2 (7.6) 1,089.4 ------------- ------------ ----------- ----------- ---------------- ------------- Income (loss) before income taxes 47.0 (14.6) 15.8 9.8 - 58.0 Income tax expense (benefit) 7.3 (5.6) 5.5 3.4 - 10.6 Equity in subsidiaries - 50.0 - - (50.0)(4) - ------------- ------------ ----------- ----------- ---------------- ------------- Net income (loss) $ 39.7 $ 41.0 $ 10.3 $ 6.4 $ (50.0) $ 47.4 ============= ============ =========== =========== ================ =============
7 Unaudited Pro Forma Condensed Consolidated Statement of Income for the 9 Months Ended September 30, 2002 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ----------- ----------- ----------------- ------------- Revenue: Premiums $ - $ 23.4 $ 0.9 $ - $ - $ 24.3 Fee income 167.3 42.0 16.1 3.0 - 228.4 Net investment income 132.3 162.9 293.8 33.3 (9.6)(2) 612.7 Net realized capital gains (losses) 0.4 (34.3) (55.2) (6.9) - (96.0) Other income (loss) - 6.3 2.0 - - 8.3 ------------- ------------ ----------- ----------- ----------------- ------------- Total revenue 300.0 200.3 257.6 29.4 (9.6) 777.7 ------------- ------------ ----------- ----------- ----------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 212.1 178.3 274.2 20.3 - 684.9 Underwriting, acquisition, and insurance expenses: General expenses 106.1 36.2 24.4 1.2 - 167.9 Commissions 239.8 33.7 60.3 0.4 - 334.2 Policy acquisition costs deferred (242.9) (145.3) (66.2) - - (454.4) Amortization of deferred policy acquisition costs and value of business acquired 129.2 72.5 36.3 3.4 - 241.4 Other: Expense and charges reimbursed under modified coinsurance agreements (77.6) 74.1 - - - (3.5) Interest expense 12.7 5.1 4.6 - (9.6)(2) 12.8 ------------- ------------ ----------- ----------- ----------------- ------------- Total benefits, losses and expenses 379.4 254.6 333.6 25.3 (9.6) 983.3 ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before income taxes (79.4) (54.3) (76.0) 4.1 - (205.6) Income tax expense (benefit) (25.7) (19.5) (26.6) 1.4 - (70.4) Equity in subsidiaries - (103.1) - - 103.1(4) - ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before cumulative effect of change in accounting principle $ (53.7) $ (137.9) $ (49.4) $ 2.7 $ 103.1 $ (135.2) ============= ============ =========== =========== ================= =============
8 Unaudited Pro Forma Condensed Consolidated Statement of Income for the Year Ended December 31, 2002 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ----------- ----------- ----------------- ------------- Revenue: Premiums $ - $ 30.2 $ 1.1 $ - $ - $ 31.3 Fee income 204.0 54.0 20.0 3.7 - 281.7 Net investment income 197.7 249.7 416.6 44.1 (12.2)(2) 895.9 Net realized capital gains (losses) 4.2 (43.7) (65.7) 2.1 - (103.1) Other income (loss) 3.5 10.3 2.4 0.1 - 16.3 ------------- ------------ ----------- ----------- ----------------- ------------- Total revenue 409.4 300.5 374.4 50.0 (12.2) 1,122.1 ------------- ------------ ----------- ----------- ----------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 276.5 246.0 370.5 26.8 - 919.8 Underwriting, acquisition, and insurance expenses: General expenses 139.7 46.5 33.0 1.0 - 220.2 Commissions 288.7 41.5 71.7 0.6 - 402.5 Policy acquisition costs deferred (292.2) (186.6) (80.2) - - (559.0) Amortization of deferred policy acquisition costs and value of business acquired 127.8 126.0 44.5 3.8 - 302.1 Other: Expense and charges reimbursed under modified coinsurance agreements (104.9) 100.9 - - - (4.0) Interest expense 16.0 6.9 6.1 - (12.2)(2) 16.8 ------------- ------------ ----------- ----------- ----------------- ------------- Total benefits, losses and expenses 451.6 381.2 445.6 32.2 (12.2) 1,298.4 ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before income taxes (42.2) (80.7) (71.2) 17.8 - (176.3) Income tax expense (benefit) (12.5) (29.0) (24.9) 6.2 - (60.2) Equity in subsidiaries - (76.0) - - 76.0(4) - ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before cumulative effect of change in accounting principle $ (29.7) $ (127.7) $ (46.3) $ 11.6 $ 76.0 $ (116.1) ============= ============ =========== =========== ================= =============
9 Unaudited Pro Forma Condensed Consolidated Statement of Income for the Year Ended December 31, 2001 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ----------- ----------- ----------------- ------------- Revenue: Premiums $ - $ 33.2 $ 1.1 $ - $ - $ 34.3 Fee income 188.9 56.7 23.9 4.8 - 274.3 Net investment income 94.4 234.7 481.0 54.1 (14.3)(2) 849.9 Net realized capital gains (losses) (6.5) (32.7) (55.5) 1.3 - (93.4) Other income (loss) - 9.4 1.4 - - 10.8 ------------- ------------ ----------- ----------- ----------------- ------------- Total revenue 276.8 301.3 451.9 60.2 (14.3) 1,075.9 ------------- ------------ ----------- ----------- ----------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 209.0 179.2 356.1 38.9 - 783.2 Underwriting, acquisition, and insurance expenses: General expenses 119.9 94.7 23.3 3.3 - 241.2 Commissions C 232.4 51.0 35.4 0.7 - 319.5 Policy acquisition costs deferred (128.2) (312.6) (47.1) (0.6) - (488.5) Amortization of deferred policy acquisition costs and value of business acquired 49.6 55.6 65.3 4.4 - 174.9 Goodwill 4.2 13.0 19.1 1.1 - 37.4 Other: Expense and charges reimbursed under modified coinsurance agreements (225.6) 224.6 - - - (1.0) Interest expense 19.4 7.3 10.8 0.3 (14.3)(2) 23.5 ------------- ------------ ----------- ----------- ----------------- ------------- Total benefits, losses and expenses 280.7 312.8 462.9 48.1 (14.3) 1,090.2 ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before income taxes (3.9) (11.5) (11.0) 12.1 - (14.3) Income tax expense (benefit) 0.1 0.5 2.8 4.6 - 8.0 Equity in subsidiaries - (17.8) - - 17.8(4) - ------------- ------------ ----------- ----------- ----------------- ------------- Net income (loss) $ (4.0) $ (29.8) $ (13.8) $ 7.5 $ 17.8 $ (22.3) ============= ============ =========== =========== ================= =============
10 Unaudited Pro Forma Condensed Consolidated Statement of Income for the Year Ended December 31, 2000 --------------------------------------------------------------------------------
Pro Forma Pro Forma (Millions) ING USA ELIC USG ULA Adjustments Consolidated ------------- ------------ ----------- ----------- ----------------- ------------- Revenue: Premiums $ - $ 33.0 $ 2.3 $ - $ - $ 35.3 Fee income 167.9 68.7 42.5 7.6 - 286.7 Net investment income 64.1 198.6 506.1 60.8 (14.3)(2) 815.3 Net realized capital gains (losses) (6.6) (25.8) (84.8) (8.2) - (125.4) Other income (loss) - 10.0 1.4 - - 11.4 ------------- ------------ ----------- ----------- ----------------- ------------- Total revenue 225.4 284.5 467.5 60.2 (14.3) 1,023.3 ------------- ------------ ----------- ----------- ----------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 199.9 183.7 352.6 44.1 - 780.3 Underwriting, acquisition, and insurance expenses: General expenses 89.5 86.4 10.8 2.5 - 189.2 Commissions 213.7 70.7 41.3 3.9 - 329.6 Policy acquisition costs deferred (168.4) (303.1) (59.3) (4.1) - (534.9) Amortization of deferred policy acquisition costs and value of business acquired 60.0 31.8 18.8 2.9 - 113.5 Goodwill 4.2 13.0 19.1 1.1 - 37.4 Other: Expense and charges reimbursed under modified coinsurance agreements (225.8) 218.8 - - - (7.0) Interest expense 19.9 2.8 0.8 - (14.3)(2) 9.2 ------------- ------------ ----------- ----------- ----------------- ------------- Total benefits, losses and expenses 193.0 304.1 384.1 50.4 (14.3) 917.3 ------------- ------------ ----------- ----------- ----------------- ------------- Income (loss) before income taxes 32.4 (19.6) 83.4 9.8 - 106.0 Income tax expense (benefit) 13.2 (2.2) 35.8 3.8 - 50.6 Equity in subsidiaries - 66.8 - - (66.8)(4) - ------------- ------------ ----------- ----------- ----------------- ------------- Net income (loss) $ 19.2 $ 49.4 $ 47.6 $ 6.0 $ (66.8) $ 55.4 ============= ============ =========== =========== ================= =============
11 1. Pro Forma Consolidation Statement of Financial Accounting Standards No. 141, Business Combinations ("FAS 141"), excludes transfers of net assets or exchanges of shares between entities under common control, and notes that certain provisions under Accounting Principles Board Opinion No. 16, Business Combinations ("APB 16"), provide a source of guidance for such transactions. In accordance with APB 16, financial information of the combined entity is presented as if the entities had been combined for the full year, and all comparative financial statements are restated and presented as if the entities had previously been combined, in a manner similar to a pooling-of-interests. The unaudited pro forma condensed consolidated financial statements have been prepared in a manner similar to a pooling-of-interests, in accordance with the provisions of APB 16 in order to present the condensed financial position and results of operations of ING USA Annuity and Life Insurance Company ("ING USA"), Equitable Life Insurance Company of Iowa ("ELIC"), United Life & Annuity Insurance Company ("ULA"), and USG Annuity & Life Company ("USG"), as if the entities had previously been combined. The unaudited pro forma condensed consolidated balance sheet and income statements give effect to the consolidation transaction as if it had occurred on September 30, 2003 and January 1, 2000, respectively. Following is a description of the pro forma adjustments that have been made to the financial statements. All pro forma adjustments are elimination entries related to intercompany transactions between the entities, as required by accounting principles generally accepted in the United States of America. There were no other pro forma adjustments. (1) Prior to the merger, ING USA and USG were wholly owned subsidiaries of ELIC. The pro forma adjustment eliminates the ELIC investment in ING USA and USG subsidiaries. (2) Prior to the merger, ING USA had an outstanding surplus note payable to ELIC. The pro forma adjustment eliminates the surplus note and related interest between ING USA and ELIC. (3) All of the shares of capital stock of ELIC, USG, and ULA, will be canceled and retired, and ceased to exist, as of the merger with ING USA. (4) Prior to the merger, ING USA and USG were wholly owned subsidiaries of ELIC. The pro forma adjustment eliminates the ELIC equity in ING USA and USG income. 12 2. Accounting for Goodwill and Intangible Assets The cumulative effect of change in accounting principle for the unaudited pro forma condensed consolidated income statements for the nine months ended September 30, 2002, and the year ended December 31, 2002, reflects the adoption of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, ("FAS 142"). During 2002, ING USA and the Merger Companies adopted FAS 142. The adoption of this standard resulted in an impairment loss of $1,298.5 million in 2002. This impairment loss represented the entire carrying amount of goodwill, net of accumulated amortization, and is recorded as a change in accounting principle for the nine months ended September 30, 2002 and the year ended December 31, 2002. Effective January 1, 2002, ING USA and the Merger Companies applied the non-amortization provision (net of tax) of the new standard, which resulted in an increase in net income of $37.0 million for the twelve months ended December 31, 2002. Had ING USA and the Merger Companies been accounting for goodwill under FAS 142 for all periods presented, the Company's net income (loss) would have been as follows:
Year ended Year ended December 31, December 31, (Millions) 2001 2000 -------------- -------------- Pro forma consolidated net income (loss) $ (22.3) $ 55.4 Add back goodwill amortization, net of tax 37.0 37.0 -------------- -------------- Adjusted pro forma consolidated net income $ 14.7 $ 92.4 ============== ==============
3. Statutory Merger On January 1, 2003, Ameribest Life Insurance Company ("AMB"), an affiliated life insurance company domiciled in Georgia, was merged with ELIC. As FAS 141 excludes transfers of net assets or exchanges of shares between entities under common control, the merger was based on certain provisions under APB 16, which provide a source of guidance for such transactions. The unaudited pro forma condensed consolidated financial statements have been prepared in a manner similar to a pooling-of-interests, in accordance with the provisions of APB 16, in order to present the condensed results of operations of ELIC and AMB as if the entities had previously been combined. The pro forma condensed consolidated income statements give effect to the consolidation transaction as if it had occurred on January 1, 2000. The September 30, 2002, balances within the September 30, 2003, statutory financial statements have been restated as a result of this merger (see Exhibit 99.5). 13
(c) Exhibits Reference Number Page Exhibit Description 99.1 1-44 Audited statutory basis financial statements for the years ended December 31, 2002 and 2001, for Equitable Life Insurance Company of Iowa, including Report of Independent Auditors. 99.2 1-27 Audited statutory basis financial statements for the years ended December 31, 2002 and 2001, for Ameribest Life Insurance Company, including Report of Independent Auditors. 99.3 1-4 Unaudited statutory basis financial statements for the nine months ended September 30, 2003 and 2002, for Equitable Life Insurance Company of Iowa (including the effects of the merger with Ameribest Life Insurance Company, an affiliate). 99.4 1-35 Audited statutory basis financial statements for the years ended December 31, 2002 and 2001, for USG Annuity & Life Company, including Report of Independent Auditors. 99.5 1-4 Unaudited statutory basis financial statements for the nine months ended September 30, 2003 and 2002, for USG Annuity & Life Company. 99.6 1-34 Audited statutory basis financial statements for the years ended December 31, 2002 and 2001, for United Life & Annuity Insurance Company, including Report of Independent Auditors. 99.7 1-4 Unaudited statutory basis financial statements for the nine months ended September 30, 2003 and 2002, for United Life & Annuity Insurance Company. 99.8 1-4 Agreement and plan of merger of USG Annuity & Life Company, United Life & Annuity Insurance Company, and Equitable Life Insurance Company of Iowa into Golden American Life Insurance Company to be renamed ING USA Annuity & Life Insurance Company
14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ING USA Annuity and Life Insurance Company ------------------------------------------------- (Registrant) Date January 2, 2004 /s/ David A. Wheat --------------- ------------------------------------------------- David A. Wheat Senior Vice President and Chief Financial Officer /s/ Keith Gubbay ------------------------------------------------- Keith Gubbay President 15 Exhibit 99.1 Report of Independent Auditors Board of Directors and Stockholder Equitable Life Insurance Company of Iowa We have audited the accompanying statutory basis balance sheets of Equitable Life Insurance Company of Iowa ("the Company" and a wholly owned subsidiary of ING America Insurance Holdings, Inc.) as of December 31, 2002 and 2001, and the related statutory basis statements of operations, changes in capital and surplus, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Iowa Department of Regulatory Agencies of the State of Iowa, Iowa Insurance Division, which practices differ from accounting principles generally accepted in the United States. The variances between such practices and accounting principles generally accepted in the United States are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material. In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States, the financial position of Equitable Life Insurance Company of Iowa at December 31, 2002 and 2001 or the results of its operations or its cash flows for the years then ended. 1 However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Equitable Life Insurance Company of Iowa at December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended, in conformity with accounting practices prescribed or permitted by the Iowa Insurance Division. As discussed in Note 3 to the financial statements, in 2001 the Company changed various accounting policies to be in accordance with the revised NAIC Accounting Practices and Procedures Manual, as adopted by the Iowa Insurance Division. /s/ Ernst & Young LLP March 21, 2003 2 Equitable Life Insurance Company of Iowa Balance Sheets - Statutory Basis --------------------------------------------------------------------------------
December 31 2002 2001 --------------- --------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 2,925,958 $ 2,628,098 Preferred stocks 441 490 Common stocks 120,285 306 Subsidiaries 811,079 761,039 Mortgage loans 859,953 842,253 Real estate, less accumulated depreciation (2002 - $339; 2001- $531) 3,651 5,254 Policy loans 130,790 139,826 Other invested assets 180,117 266,358 Cash and short-term investments 25,102 67,592 --------------- --------------- Total cash and invested assets 5,057,376 4,711,216 Deferred and uncollected premiums, less loading (2002 - $785, 2001 - $751) 64,607 5,736 Accrued investment income 43,330 40,604 Reinsurance balances recoverable 785 1,020 Data processing equipment, less accumulated depreciation (2002-$5,459; 2001-$3,243) 186 373 Indebtedness from related parties 107,057 29,687 Federal income tax recoverable 50,531 34,688 Separate account assets 959,377 1,406,693 Other assets 303,168 273,482 --------------- --------------- Total admitted assets $ 6,586,417 $ 6,503,499 =============== ===============
See accompanying notes - statutory basis. 3 Equitable Life Insurance Company of Iowa Balance Sheets - Statutory Basis (continued) --------------------------------------------------------------------------------
December 31 2002 2001 --------------- --------------- (In Thousands, except share amounts) Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves $ 4,015,244 $ 3,580,706 Deposit type contracts 189,296 152,193 Policyholders' funds 310 282 Dividends payable 23,795 24,385 Unpaid claims 2,227 8,122 --------------- --------------- Total policy and contract liabilities 4,230,872 3,765,688 Accounts payable and accrued expenses 26,439 26,012 Indebtedness to related parties 66,200 21,091 Asset valuation reserve 25,738 26,060 Interest maintenance reserve 13,573 17,123 Borrowed money 148,996 135,948 Other liabilities (14,220) 66,062 Separate account liabilities 959,377 1,406,693 --------------- --------------- Total liabilities 5,456,975 5,464,677 Capital and surplus: Common stock: $1.00 par value; authorized 7,500,000 shares, issued and outstanding 5,000,300 shares 5,000 5,000 Additional paid-in capital 1,215,324 700,324 Unassigned (deficit) surplus (90,882) 333,498 --------------- --------------- Total capital and surplus 1,129,442 1,038,822 --------------- --------------- Total liabilities and capital and surplus $ 6,586,417 $ 6,503,499 =============== ===============
See accompanying notes - statutory basis. 4 Equitable Life Insurance Company of Iowa Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 1,832,175 $ 2,645,375 Policy proceeds and dividends left on deposit 1,840 1,263 Net investment income 228,150 232,779 Amortization of interest maintenance reserve (2,570) 2,299 Commissions, expense allowances and reserve adjustments on reinsurance ceded (80) 91 Other income 23,058 41,581 --------------- --------------- Total premiums and other revenues 2,082,573 2,923,388 Benefits paid or provided: Death benefits 44,630 41,922 Annuity benefits 119,150 103,305 Surrender benefits 638,053 464,583 Interest on policy or contract funds 6,192 7,043 Other benefits 7,209 6,906 Life contract withdrawals 47,009 49,110 Increase in life, annuity, and accident and health reserves 1,186,223 2,055,065 Net transfers from separate accounts (135,686) (98,628) --------------- --------------- Total benefits paid or provided 1,912,780 2,629,306 Insurance expenses: Commissions 157,842 205,363 General expenses 45,159 81,288 Insurance taxes, licenses and fees, excluding federal income taxes 3,801 9,080 --------------- --------------- Total insurance expenses 206,802 295,731 --------------- --------------- Loss from operations before policyholder dividends, (37,009) (1,649) federal income taxes and net realized capital losses
5 Equitable Life Insurance Company of Iowa Statements of Operations - Statutory Basis (continued) --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Dividends to policyholders 23,406 25,228 --------------- --------------- Loss from operations before federal income taxes and (60,415) (26,877) net realized capital losses Federal income taxes 38,715 (1,605) --------------- --------------- Loss from operations before net realized capital losses (99,130) (25,272) Net realized capital losses net of income taxes 2002 - $(10,288); 2001 - $(7,441) and excluding net transfers to the interest maintenance reserve 2002- $3,295; 2001- $3,720 (20,665) (37,807) --------------- --------------- Net loss $ (119,795) $ (63,079) =============== ===============
See accompanying notes - statutory basis. 6 Equitable Life Insurance Company of Iowa Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Common stock: Balance at beginning and end of year $ 5,000 $ 5,000 =============== ================ Paid-in and contributed surplus: Balance at beginning of year 700,324 248,743 Capital contributions 515,000 451,581 --------------- ---------------- Balance at end of year $ 1,215,324 $ 700,324 =============== ================ Unassigned deficit: Balance at beginning of year 333,498 344,924 Net loss (119,795) (63,079) Change in net unrealized capital gains or losses (307,450) 35,976 Change in nonadmitted assets (58,477) 65,659 Change in asset valuation reserve 322 12,378 Change in net deferred income tax excluding tax effect of nonadmitted assets 61,020 30,125 Change in accounting principle, net of tax - (6,073) Transfer of prepaid pension assets - (87,412) Cession of existing risks, net of tax - 1,000 --------------- ---------------- Balance at end of year $ (90,882) $ 333,498 =============== ================ Total capital and surplus $ 1,129,442 $ 1,038,822 =============== ================
See accompanying notes - statutory basis. 7 Equitable Life Insurance Company of Iowa Statements of Cash Flows - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 1,775,113 $ 2,647,810 Net investment income received 274,233 243,697 Commission and expense allowances received on reinsurance ceded (54) 91 Benefits paid (862,628) (673,320) Net transfers to separate accounts 148,848 111,689 Insurance expenses paid (199,451) (274,085) Dividends paid to policyholders (23,568) (25,413) Federal income taxes (paid) received (45,836) 71,450 Net other (expenses) revenues (697,081) 41,873 --------------- --------------- Net cash provided by operations 369,576 2,143,792 Investments Proceeds from sales, maturities, or repayments of investments: Bonds 3,559,637 2,401,946 Preferred stocks 357 11,844 Common stocks 103,451 61,428 Mortgage loans 2,241 - Other invested assets 51,647 6,951 Miscellaneous proceeds 84,561 1,989 Net tax on capital gains - (7,441) --------------- --------------- Net proceeds from sales, maturities, or repayments of investments 3,801,894 2,476,717 Cost of investments acquired: Bonds 3,938,840 2,938,801 Preferred stocks 556,492 451,581 Mortgage loans 121,122 179,837 Other invested assets 844 3,835 Miscellaneous applications 106,945 - --------------- --------------- Total cost of investments acquired 4,724,243 3,574,054 Net (decrease) increase in policy loans (9,656) 1,185 --------------- --------------- Net cash used in investment activities (912,693) (1,098,522)
8 Equitable Life Insurance Company of Iowa Statements of Cash Flows - Statutory Basis (continued) --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Financing and miscellaneous activities Cash provided: Capital and surplus paid-in 506,300 446,508 Borrowed money 13,008 13,660 Premium and other deposit type funds 20,799 (21,565) Other uses (39,480) (1,699,700) --------------- --------------- Net cash provided by (used in) financing and miscellaneous activities 500,627 (1,261,097) --------------- --------------- Net decrease in cash and short-term investments (42,490) (215,827) Cash and short-term investments: Beginning of year 67,592 283,419 --------------- --------------- End of year $ 25,102 $ 67,592 =============== ===============
See accompanying notes - statutory basis. 9 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies Equitable Life Insurance Company of Iowa (the Company) is domiciled in Iowa and is a wholly owned subsidiary of ING America Insurance Holdings, Inc. ("ING AIH"). The Company offers various insurance products including deferred and immediate annuities, variable annuities, and interest sensitive and traditional life insurance. These products are marketed by the Company's career agency force, independent insurance agents, broker/dealers, and financial institutions. The Company's primary customers are individuals. The Company is presently licensed in 49 states, the District of Columbia and Puerto Rico. The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Basis of Presentation The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the State of Iowa (Iowa Insurance Division), which practices differ from accounting principles generally accepted in the United States ("GAAP"). The most significant variances from GAAP are as follows: Investments: Investments in bonds and mandatorily redeemable preferred stocks are reported at amortized cost or market value based on the National Association of Insurance Commissioners ("NAIC") rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized capital gains and losses reported in operations for those designated as trading and as a separate component of other comprehensive income in stockholder's equity for those designated as available-for-sale. For structured securities, when a negative yield results from a revaluation based on new prepayment assumptions (i.e., undiscounted cash flows are less than current book value), an other than temporary impairment is considered to have occurred and the asset is written down to the value of the undiscounted cash flows. For GAAP, assets are re-evaluated based on the discounted cash flows using a current market rate. Impairments are recognized when there has been an adverse change in cash flows and the fair value is less than book. The asset is then written down to fair value. 10 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Investments in real estate are reported net of related obligations rather than on a gross basis. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses include rent for the Company's occupancy of those properties. Changes between depreciated cost and admitted asset investment amounts are credited or charged directly to unassigned surplus rather than income as would be required under GAAP. Derivative instruments that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of shareholders' equity rather than to income as required for fair value hedges. In addition, the Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. Valuation Reserves: The asset valuation reserve ("AVR") is determined by an NAIC-prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed-income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. 11 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Realized gains and losses on investments are reported in operations net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pretax basis in the period that the asset giving rise to the gain or loss is sold and valuation allowances are provided when there has been a decline in value deemed other than temporary, in which case the provision for such declines is charged to income. Valuation allowances, if necessary, are established for mortgage loans based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan's effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral. The initial valuation allowance and subsequent changes in the allowance for mortgage loans as a result of a temporary impairment are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP. Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance, to the extent recoverable from future policy revenues, are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, acquisition costs are amortized generally in proportion to the present value of expected gross margins from surrender charges and investment, mortality, and expense margins. Premiums: Life premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting. 12 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Under GAAP, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance policies, are recognized as revenue when due. Group insurance premiums are recognized as premium revenue over the time period to which the premiums relate. Revenues for universal life, annuities and guaranteed interest contracts consist of policy charges for the cost of insurance, policy administration charges, amortization of policy initiation fees and surrender charges assessed during the period. Benefit and Contract Reserves: Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium and Commissioners' Reserve Valuation methods using statutory rates for mortality and interest. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing reasonably conservative estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest-sensitive products, the GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads. Reinsurance: For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Statutory income recognized on certain reinsurance treaties representing financing arrangements is not recognized on a GAAP basis. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as required under GAAP. Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP. Subsidiaries: The accounts and operations of the Company's subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP. 13 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Nonadmitted Assets: Certain assets designated as "nonadmitted," principally deferred federal income tax assets, disallowed interest maintenance reserves, non-operating software, past-due agents' balances, furniture and equipment, intangible assets, and other assets not specifically identified as an admitted asset within the Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet. Employee Benefits: For purposes of calculating the Company's postretirement benefit obligation, only vested participants and current retirees are included in the valuation. Under GAAP, active participants not currently vested are also included. Universal Life and Annuity Policies: Revenues for universal life and annuity policies consist of the entire premium received and benefits incurred represent the total of death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values. Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies. Deferred Income Taxes: Deferred tax assets are provided for and admitted to an amount determined under a standard formula. This formula considers the amount of differences that will reverse in the subsequent year, taxes paid in prior years that could be recovered through carrybacks, surplus limits and the amount of deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are non-admitted. Deferred taxes do not include any amounts for state taxes. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets that are expected to be realized in future years and a valuation allowance is established for the portion that is not realizable. Surplus Notes: Surplus notes are reported as a component of surplus. Under statutory accounting practices, no interest is recorded on the surplus notes until payment has been approved by the Iowa Division of Insurance. Under GAAP, surplus notes are reported as liabilities and the related interest is reported as a charge to earnings over the term of the note. Statements of Cash Flows: Cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. 14 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Under GAAP, the corresponding caption of cash and cash equivalents include cash balances and investments with initial maturities of three months or less. Reconciliation to GAAP The effects of the preceding variances from GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material. Other significant accounting practices are as follows: Investments Bonds, preferred stocks, common stocks, short-term investments and derivative instruments are stated at values prescribed by the NAIC, as follows: Bonds not backed by other loans are principally stated at amortized cost using the interest method. Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except for higher-risk asset backed securities, which are valued using the prospective method. Redeemable preferred stocks rated as high quality or better are reported at cost or amortized cost. All other redeemable preferred stocks are reported at the lower of cost, amortized cost, or market value. Nonredeemable preferred stocks are reported at market value or the lower of cost or market value as determined by the Securities Valuation Office of the NAIC ("SVO"). Common stocks are reported at market value as determined by the SVO and the related unrealized capital gains/(losses) are reported in unassigned surplus along with adjustment for federal income taxes. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. 15 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) The Company uses interest rate swaps, caps and floors, options and certain other derivatives as part of its overall interest rate risk management strategy for certain life insurance and annuity products. As the Company only uses derivatives for hedging purposes, the Company values all derivative instruments on a consistent basis with the hedged item. Upon termination, gains and losses on those instruments are included in the carrying values of the underlying hedged items and are amortized over the remaining lives of the hedged items as adjustments to investment income or benefits from the hedged items. Any unamortized gains or losses are recognized when the underlying hedged items are sold. Interest rate swap contracts are used to convert the interest rate characteristics (fixed or variable) of certain investments to match those of the related insurance liabilities that the investments are supporting. The net interest effect of such swap transactions is reported as an adjustment of interest income from the hedged items as incurred. Interest rate caps and floors are used to limit the effects of changing interest rates on yields of variable rate or short-term assets or liabilities. The initial cost of any such agreement is amortized to net investment income over the life of the agreement. Periodic payments that are receivable as a result of the agreements are accrued as an adjustment of interest income or benefits from the hedged items. The derivatives are reported in a manner that is consistent with the hedged asset or liability. All derivatives are reported at amortized cost with the exception of the S&P Options. The S&P Options are reported at fair value since the liabilities that are being hedged are reported at fair value. The unrealized gains or losses from the S&P Options are reported in investment income. Upon termination of a derivative that qualified for hedge accounting, the gain or loss is deferred in IMR or adjusts the basis of the hedged item. The Company's insurance subsidiaries are reported at their underlying statutory basis net assets plus the admitted portion of goodwill. Dividends from subsidiaries are included in net investment income. The remaining net change in the subsidiaries' equity is included in the change in net unrealized capital gains or losses. Mortgage loans are reported at amortized cost, less allowance for impairments. Policy loans are reported at unpaid principal balances. 16 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) Land is reported at cost. Real estate occupied by the company is reported at depreciated cost; other real estate is reported at the lower of depreciated cost or fair value. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. For reverse repurchase agreements, Company policies require a minimum of 102% of the fair value of securities purchased under reverse repurchase agreements to be maintained as collateral. Cash collateral received is invested in short-term investments and the offsetting collateral liability is included in miscellaneous liabilities. Rollover dollar repurchase agreements are accounted for as collateral borrowings, where the amount borrowed is equal to the sales price of the underlying securities. Short-term investments are reported at amortized cost. Short-term investments include investments with maturities of less than one year at the date of acquisition. Other invested assets are reported at amortized cost using the effective interest method. Other invested assets primarily consist of residual collateralized mortgage obligations and partnership interests. Realized capital gains and losses are determined using the specific identification basis. Aggregate Reserve for Life Policies and Contracts Life, annuity, and accident and health reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash value or the amounts required by law. Interest rates range from 2.25% to 10%. The Company waives the deduction of deferred fractional premiums upon the death of the insured. It is the Company's practice to return a pro rata portion of any premium paid beyond the policy month of death, although it is not contractually required to do so for certain issues. 17 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Aggregate Reserve for Life Policies and Contracts (continued) The methods used in valuation of substandard policies are as follows: For life, endowment and term policies issued substandard, the standard reserve during the premium-paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts. For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating. For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra. The amount of insurance in force for which the gross premiums are less than the net premiums, according to the standard of valuation required by the State of Iowa is $246,911,000 at December 31, 2002. The amount of reserves for policies on which gross premiums are less than the net premiums deficiency reserves is $1,617,000 at December 31, 2002. The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance classified as group Section 79. The tabular interest of funds not involving life contingencies is calculated as the current year reserves, plus payments, less prior year reserves, less funds added. Guaranteed Minimum Death Benefits Guaranteed minimum death benefits ("GMDB") are features offered with a variable annuity contract that provide a minimum level of proceeds, regardless of account balance, in the event of the policyholder's death. The GMDB can either remain constant or increase, depending on the underlying guarantee. The GMDB features of many companies' variable annuity contracts contain a "dollar-for-dollar" withdrawal provision, which provides for a reduction in the GMDB on a dollar-for-dollar basis when a partial withdrawal occurs. 18 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Guaranteed Minimum Death Benefits (continued) As a result of the equity market performance over the past several years, a number of variable annuity policies could have account values that are less than the GMDB. A policy holder with a sizeable minimum death benefit and a policy with a dollar-for-dollar withdrawal provision could withdraw all but a required minimal account value or transfer a portion of their variable annuity contract to another carrier, while maintaining a significant GMDB. For Statutory reserves, Actuarial Guideline 33, "Determining CARVM Reserves for Annuity Contract with Elective Benefits" (AG 33), defines the methodology and assumptions that are to be used to determine the minimum statutory reserves for annuity contracts. The purpose of Actuarial Guideline 34, "Variable Annuity Minimum Guaranteed Death Benefit Reserves" (AG 34) is "to interpret the standards for the valuation of reserves for Minimum Guaranteed Death Benefits included in variable annuity contracts." There is currently discussion whether AG 34 supersedes AG 33 when calculating the GMDB reserves or whether AG 33 and AG 34 should be applied jointly. Given the inherent ambiguity and controversy as to whether AG 34 supersedes AG 33 or whether AG 33 and AG 34 both apply in determining the appropriate reserves, and given the heightened interest of rating agencies regarding this issue, the Company has performed an initial assessment of its potential exposure related to GMDB's under the dollar-for-dollar features of its variable annuity products. The difference in interpretation as to the appropriate integration of AG 33 and AG 34 computational guidance could result in higher statutory reserve balances of approximately $35,000,000 as of December 31, 2002. The company has a wholly owned insurance subsidiary in which the difference in interpretation could result in higher reserve balances of approximately $85,000,000 as of December 31, 2002. Reinsurance Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contract and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. 19 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Electronic Data Processing Equipment Electronic data processing equipment is carried at cost less accumulated depreciation. Depreciation for major classes of assets is calculated on a straight-line basis over the estimated useful lives of the assets. Participating Insurance Participating business approximates less than 11% of the Company's ordinary life insurance in force and 2% of premium income. The amount of dividends to be paid is determined annually by the Board of Directors. Amounts allocable to participating policyholders are based on published dividend projections or expected dividend scales. Dividends of $23,406,000 and $25,228,000 were incurred 2002 and 2001, respectively. Pension Plans The Company provides noncontributory retirement plans for substantially all employees and certain agents. Pension costs are charged to operations as contributions are made to the plan. The Company also provides a contributory retirement plan for substantially all employees. Nonadmitted Assets Nonadmitted assets are summarized as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Deferred federal income taxes $ 157,392 $ 94,807 Agents' debit balances 253 705 Furniture and equipment 4,337 6,411 Leasehold improvements 1,033 - Deferred and uncollected premium 426 372 Commuted commission 1,108 - Suspense debts 3,586 5,135 Other 231 2,459 --------------- -------------- Total nonadmitted assets $ 168,366 $ 109,889 =============== ==============
Changes in nonadmitted assets are generally reported directly in surplus as an increase or decrease in nonadmitted assets. Certain changes are reported directly in surplus as a change in unrealized capital gains or losses. 20 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Cash Flow Information Cash and short-term investments include cash on hand, demand deposits and short-term fixed maturity instruments (with a maturity of less than one year at date of acquisition). The Company borrowed $1,253,710,000 and repaid $1,253,710,000 in 2002, and borrowed $784,500,000 and repaid $784,500,000 during, 2001. These borrowings were on a short-term basis, at an interest rate that approximated current money market rates and exclude borrowings from reverse dollar repurchase transactions. Interest paid on borrowed money was $204,000 and $1,646,000 during 2002 and 2001, respectively. Separate Accounts Separate account assets and liabilities held by the Company represent funds held for the benefit of the Company's variable life and annuity policy and contract holders who bear all of the investment risk associated with the policies. Such policies are of a non-guaranteed nature. All net investment experience, positive or negative, is attributed to the policy and contract holders' account values. The assets and liabilities of these accounts are carried at fair value. Reserves related to the Company's mortality risk associated with these policies are included in life and annuity reserves. The operations of the separate accounts are not included in the accompanying statements of operations. Reclassifications Certain prior year amounts in the Company's statutory basis financial statements have been reclassified to conform to the 2002 financial statement presentation. 21 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 2. Permitted Statutory Basis Accounting Practices The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the State of Iowa. The Iowa State Insurance Division recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency in under the Iowa Insurance Laws. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the state of Iowa. The Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices. The Company is required to identify those significant accounting practices that are permitted, and obtain written approval of the practices from the Iowa Division of Insurance. As of December 31, 2002 and 2001, the Company had no such permitted accounting practices. 3. Accounting Changes The Company prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Iowa. Effective January 1, 2001, the State of Iowa required that insurance companies domiciled in the State of Iowa prepare their statutory basis financial statements in accordance with the NAIC Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the State of Iowa insurance commissioner. Accounting changes adopted to conform to the provisions of the NAIC Accounting Practices and Procedures Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods. As a result of these changes, the Company reported a change of accounting principle, as an adjustment that decreased unassigned funds surplus, by $6,073,000 as of January 1, 2001. Included in this total adjustment is a reduction in unassigned funds of approximately $12,670,000 related to guaranty funds, post retirement benefits and other assessments and an increase in unassigned funds of approximately $6,597,000 related to mortgage loans and bonds. 22 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments The amortized cost and fair value of bonds and equity securities are as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value --------------- --------------- --------------- --------------- (In Thousands) At December 31, 2002: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 6,605 $ 643 $ - $ 7,248 States, municipalities, and political subdivisions 248 11 - 259 Foreign government 172,130 12,466 4,538 180,058 Public utilities securities 185,449 8,495 3,681 190,263 Corporate securities 1,324,320 85,202 12,026 1,397,496 Mortgage-backed securities 874,791 38,253 20,820 892,224 Other structured securities 363,055 22,346 19,667 365,734 --------------- --------------- --------------- --------------- Total fixed maturities 2,926,598 167,416 60,732 3,033,282 Preferred stocks 441 - - 441 Common stocks 120,051 234 - 120,285 --------------- --------------- --------------- --------------- Total equity securities 120,492 234 - 120,726 --------------- --------------- --------------- --------------- Total $ 3,047,090 $ 167,650 $ 60,732 $ 3,154,008 =============== =============== =============== =============== At December 31, 2001: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 35,463 $ 306 $ 730 $ 35,039 States, municipalities, and political subdivisions 248 - 1 247 Foreign government 111,157 3,952 3,077 112,032 Public utilities securities 103,304 1,839 4,541 100,602 Corporate securities 1,130,256 37,173 22,792 1,144,637 Mortgage-backed securities 873,372 27,484 17,543 883,313 Other structured securities 374,298 13,007 20,626 366,679 --------------- ---------------- --------------- ---------------- Total fixed maturities 2,628,098 83,761 69,310 2,642,549 Preferred stocks 490 - - 490 Common stocks 306 - - 306 --------------- ---------------- --------------- ---------------- Total equity securities 796 - - 796 --------------- ---------------- --------------- ---------------- Total $ 2,628,894 $ 83,761 $ 69,310 $ 2,643,345 =============== ================ =============== ================
23 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) The amortized cost and fair value of investments in bonds at December 31, 2002, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized Fair Cost Value --------------- --------------- (In Thousands) December 31, 2002 Maturity: Due in 1 year or less $ 16,683 $ 16,833 Due after 1 year through 5 years 499,720 530,636 Due after 5 years through 10 years 863,485 909,340 Due after 10 years 308,864 318,514 --------------- --------------- 1,688,752 1,775,323 Mortgage-backed securities 874,791 892,225 Other structured securities 363,055 365,734 --------------- --------------- Total $ 2,926,598 $ 3,033,282 =============== ===============
At December 31, 2002, investments in certificates of deposit and bonds, with an admitted asset value of $3,809,000, were on deposit with state insurance departments to satisfy regulatory requirements. Reconciliation of bonds from amortized cost to carrying value as of December 31, 2002 and 2001 is as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Amortized cost $ 2,926,598 $ 2,628,098 Less nonadmitted bonds (640) - --------------- -------------- Carrying value $ 2,925,958 $ 2,628,098 =============== ==============
Proceeds from the sales of investments in bonds and other fixed maturity interest securities were $1,740,357,000 and $797,331,000 in 2002 and 2001, respectively. Gross gains of $37,919,000 and $22,517,000 and gross losses of $36,614,000 and $10,345,000 during 2002 and 2001, respectively, were realized on those sales. A portion of the gains realized in 2002 and 2001 has been deferred to future periods in the interest maintenance reserve. 24 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) Major categories of net investment income are summarized as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Equity securities - affiliated $ 35 $ 351 Equity securities - unaffiliated - 26,000 Bonds 230,384 205,052 Mortgage loans 65,648 62,637 Contract loans 7,840 7,844 Real estate 757 362 Other (58,410) (51,849) --------------- -------------- Total investment income 246,254 250,397 Investment expenses (18,104) (17,618) --------------- -------------- Net investment income $ 228,150 $ 232,779 =============== ==============
As part of its overall investment strategy, the Company has entered into agreements to purchase securities as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Investment purchase commitments $ 47,317 $ 14,909
The Company entered into reverse dollar repurchase transactions to increase its return on investments and improve liquidity. Reverse dollar repurchases involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. The reverse dollar repurchases are accounted for as short term collateralized financing and the repurchase obligation is reported in borrowed money. The repurchase obligation totaled $95,801,000 at December 31, 2002. The securities underlying these agreements are mortgage-backed securities with a book value and fair value of $95,936,000 at December 31, 2002. The securities have a weighted average coupon of 5.6% and have maturities ranging from December 2017 through December 2032. The primary risk associated with short-term collateralized borrowings is that the counterparty may be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, which was not material at December 31, 2002. The Company believes the counterparties to the reverse dollar repurchase agreements are financially responsible and that the counterparty risk is minimal. 25 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) The Company participates in reverse repurchase transactions. Such transactions include the sale of corporate securities to a major securities dealer and a simultaneous agreement to repurchase the same security in the near term. The proceeds are invested in new securities of intermediate durations. The terms of the reverse repurchase agreements call for payment of interest at a rate of 1.4%. The agreements mature prior to the end of January 2003. At December 31, 2002 the amount due on these agreements included in borrowed money is $3,000,000. The securities underlying these agreements are mortgage-backed securities with a book value and fair value of $3,176,000. The securities have a weighted average coupon of 6.0% and have a maturity of November 2032. The maximum and minimum lending rates for long-term mortgage loans during 2002 were 7.7% and 3.0%. Fire insurance is required on all properties covered by mortgage loans and must at least equal the excess of the loan over the maximum loan which would be permitted by law on the land without the buildings. The maximum percentage of any loan to the value of collateral at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages, was 81.9% on commercial properties. As of December 31, 2002, the Company held no mortgages with interest more than 180 days overdue. Total interest due on mortgages as of December 31, 2002 is $23,000. 5. Derivative Financial Instruments Held for Purposes Other than Trading The Company enters into interest rate and currency contracts, including swaps, caps, floors, and options, to reduce and manage risks, which include the risk of a change in the value, yield, price, cash flows, exchange rates or quantity of, or a degree of exposure with respect to, assets, liabilities, or future cash flows, which the Company has acquired or incurred. Hedge accounting practices are supported by cash flow matching, scenario testing and duration matching. The Company uses interest rate swaps to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities. Interest rate swap agreements generally involve the exchange of fixed and floating interest payments over the life of the agreement without an exchange of the underlying principal amount. Currency swap agreements generally involve the exchange of local and foreign currency payments over the life of the agreements without an exchange of the underlying principal amount. Interest rate cap and interest rate floor agreements owned entitle the Company to receive payments to the extent reference interest rates exceed or fall below strike levels in the contracts based on the notional amounts. 26 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 5. Derivative Financial Instruments Held for Purposes Other than Trading (continued) Premiums paid for the purchase of interest rate contracts are included in other invested assets and are being amortized to interest expense over the remaining terms of the contracts or in a manner consistent with the financial instruments being hedged. Amounts paid or received, if any, from such contracts are included in interest expense or income. Accrued amounts payable to or receivable from counterparties are included in other liabilities or other invested assets. Gains or losses realized as a result of early terminations of interest rate contracts are amortized to investment income over the remaining term of the items being hedged to the extent the hedge is considered to be effective; otherwise, they are recognized upon termination. Interest rate contracts that are matched or otherwise designated to be associated with other financial instruments are recorded at fair value if the related financial instruments mature, are sold, or are otherwise terminated or if the interest rate contracts cease to be effective hedges. Changes in the fair value of derivatives are recorded as investment income. The Company manages the potential credit exposure from interest rate contracts through careful evaluation of the counterparties' credit standing, collateral agreements, and master netting agreements. The Company is exposed to credit loss in the event of nonperformance by counterparties on interest rate contracts; however, the Company does not anticipate nonperformance by any of these counterparties. The amount of such exposure is generally the unrealized gains in such contracts. The table below summarizes the Company's interest rate contracts included in other invested assets at December 31, 2002 and 2001:
December 31, 2002 ------------------------------------------------- Notional Carrying Fair Amount Value Value --------------- ------------- ------------ (In Thousands) Interest rate contracts: Swaps $ 266,098 $ - $ (4,428) Caps owned 743,000 2,508 908 Options owned 856,438 30,325 30,325 --------------- ------------ ------------ Total derivatives $ 1,865,536 $ 32,833 $ 26,805 =============== ============ ============
27 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 5. Derivative Financial Instruments Held for Purposes Other than Trading (continued)
December 31, 2001 ------------------------------------------------- Notional Carrying Fair Amount Value Value --------------- ------------- ------------ (In Thousands) Interest rate contracts: Swaps $ 50,000 $ 69 $ 2 Caps owned 1,115,000 2,547 2,256 Options owned 762,920 60,495 45,720 --------------- ------------ ------------ Total derivatives $ 1,927,920 $ 63,111 $ 47,978 =============== ============ ============
6. Concentrations of Credit Risk The Company held less-than-investment-grade corporate bonds with an aggregate book value of $215,727,000 and $251,252,000 and with an aggregate market value of $200,968,000 and $236,887,000 at December 31, 2002 and 2001, respectively. Those holdings amounted to 7.4% of the Company's investments in bonds and 3.37% of total admitted assets at December 31, 2002. The holdings of less-than-investment-grade bonds are widely diversified and of satisfactory quality based on the Company's investment policies and credit standards. The Company held unrated bonds of $68,548,000 and $196,630,000 with an aggregate NAIC market value of $73,861,000 and $199,043,000 at December 31, 2002 and 2001, respectively. The carrying value of these holdings amounted to 2.3% of the Company's investment in bonds and 1.0% of the Company's total admitted assets at December 31, 2002. At December 31, 2002, the Company's commercial mortgages involved a concentration of properties located in California (17.7%) and Texas (8%). The remaining commercial mortgages relate to properties located in 38 other states. The portfolio is well diversified; covering many different types of income-producing properties on which the Company has first mortgage liens. The maximum mortgage outstanding on any individual property is $17,353,000. 28 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 7. Annuity Reserves At December 31, 2002 and 2001, the Company's annuity reserves, including those held in separate accounts and deposit fund liabilities that are subject to discretionary withdrawal with adjustment, subject to discretionary withdrawal without adjustment, and not subject to discretionary withdrawal provisions are summarized as follows:
December 31, 2002 Amount Percent --------------- --------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 1,538,465 34% At book value less surrender charge 846,121 18 At fair value 1,079,649 23 --------------- --------------- Subtotal 3,464,235 75 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 447,961 10 Not subject to discretionary withdrawal 664,896 15 --------------- --------------- Total annuity reserves and deposit fund liabilities before reinsurance 4,577,092 100% =============== Less reinsurance ceded 559,044 --------------- Net annuity reserves and deposit fund liabilities $ 4,018,048 ===============
December 31, 2001 Amount Percent --------------- --------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 1,329,562 30% At book value less surrender charge 718,764 16 At fair value 1,365,750 30 --------------- --------------- Subtotal 3,414,076 76 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 452,336 10 Not subject to discretionary withdrawal 653,795 14 --------------- --------------- Total annuity reserves and deposit fund liabilities before reinsurance 4,520,207 100% =============== Less reinsurance ceded 542,676 --------------- Net annuity reserves and deposit fund liabilities $ 3,977,531 ===============
29 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Employee Benefit Plans Pension Plan and Postretirement Benefits Effective December 31, 2001, the qualified noncontributory defined benefit retirement plans of the Company, along with certain other US subsidiaries of ING AIH, were merged into one plan which is recognized in ING AIH's financial statements. As a result of this plan merger, the Company transferred its qualified pension asset to ING North America Insurance Corporation, an affiliate. In addition, the Company maintains a nonqualified unfunded Supplemental Employees Retirement Plan ("SERP"). The Company also provides certain health care and life insurance benefits for retired employees.
Pension Benefits Other Benefits 2002 2001 2002 2001 ---------- ---------- ---------- ---------- (In Thousands) Change in plan assets Fair value of plan assets at beginning of year $ - $ 151,069 $ - $ - Actual return on plan assets - (7,383) - - Employer contribution 301 199 471 383 Plan participants' contributions - - 376 234 Benefits paid (301) (5,086) (847) (617) Business combinations, divestitures and settlements - (138,799) - - ---------- ---------- ---------- ---------- Fair value of plan assets at end of year $ - $ - $ - $ - ========== ========== ========== ========== Funded status Unamortized prior service credit $ 318 $ 346 $ 746 $ 844 Unrecognized net (gain) or loss 3,715 (2,539) (2,566) 885 Remaining net obligation at initial date of application (31) (33) - (3,341) Accrued liabilities (12,117) (10,789) (4,874) (3,771) ---------- ---------- ---------- ---------- Net liability recorded $ (8,115) $ (13,015) $ (6,694) $ (5,383) ========== ========== ========== ==========
30 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Employee Benefit Plans (continued) Pension Plan and Postretirement Benefits (continued) A summary of assets, obligations and assumptions of the Pension and Other Postretirement Benefits Plans are as follows:
Pension Benefits Other Benefits 2002 2001 2002 2001 ---------- ---------- ---------- ---------- (In Thousands) Change in benefit obligation Benefit obligation at beginning of year $ 13,015 $ 73,510 $ 5,383 $ 7,452 Service cost 546 1,820 210 211 Interest cost 1,008 5,643 400 564 Contribution by plan participants - - 376 234 Actuarial gain (loss) (6,153) 5,767 373 (2,811) Benefits paid (301) (5,085) (847) (618) Plan amendments - (114) 799 - Business combinations, divestitures, curtailments, settlements and special termination benefits - (68,526) - 351 ---------- ---------- ---------- ---------- Benefit obligation at end of year $ 8,115 $ 13,015 $ 6,694 $ 5,383 ========== ========== ========== ========== Components of net periodic benefit cost Service cost $ 546 $ 1,820 $ 210 $ 212 Interest cost 1,008 5,643 400 565 Expected return on plan assets - (13,750) - - Amortization of recognized transition obligation or transition asset 2 (2,452) 304 304 Amount of recognized gains and losses 100 - (42) 109 Amount of prior service cost recognized (28) - 701 (98) Amount of gain or loss recognized due to a settlement or curtailment - - - 351 ---------- ---------- ---------- ---------- Total net periodic benefit cost $ 1,628 $ (8,739) $ 1,573 $ 1,443 ========== ========== ========== ==========
31 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Employee Benefit Plans (continued) Pension Plan and Postretirement Benefits (continued) In addition, the Company has a pension benefit obligation and another benefits obligation for non-vested employees as of December 31, 2002 and 2001 in the amount of $682,000 and $842,000, and $2,633,000 and $1,708,000 (OPEB obligation), respectively. Assumptions used in determining the accounting for the defined benefit plans and other post-retirement benefit plans as of December 31, 2002 and 2001 were as follows:
2002 2001 --------------- --------------- Weighted-average discount rate 6.75% 7.50% Rate of increase in compensation level 3.75% 4.50% Expected long-term rate of return on assets 9.00% 9.25%
The annual assumed rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) for the medical plan is 10% graded to 5.0% thereafter. The health care cost trend rate assumption has a significant effect on the amounts reported. For example, increasing the assumed health care cost trend rates by one percentage point in each year would increase the accumulated postretirement benefit obligation for the medical plan as of December 31, 2002 by $1,159,000. Decreasing the assumed health care cost trend rates by one percentage point in each year would decrease the accumulated postretirement benefit obligation for the medical plan as of December 31, 2002 by $1,139,000. 401(k) Plan The Savings Plan is a defined contribution plan, which is available to substantially all employees. Participants may make contributions to the plan through salary reductions up to a maximum of $11,000 for 2002 and $10,500 for 2001. Such contributions are not currently taxable to the participants. The Company matches up to 6% of pre-tax eligible pay at 100%. Company matching contributions were $681,000 and $522,000 for 2002 and 2001, respectively. 32 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 9. Separate Accounts Separate account assets and liabilities represent funds segregated by the Company for the benefit of certain policy and contract holders who bear the investment risk. All such policies are of a nonguaranteed return nature. Revenues and expenses on the separate account assets and related liabilities equal the benefits paid to the separate account policy and contract holders. A reconciliation of the amounts transferred to and from the separate accounts is presented below:
December 31, 2002 2001 --------------- --------------- (In Thousands) Transfers as reported in the summary of operations of the Separate Accounts Statement: Transfers to separate accounts $ 33,970 $ 52,388 Transfers from separate accounts 169,689 151,018 --------------- --------------- Net transfers from separate accounts (135,719) (98,630) Reconciling adjustments: Miscellaneous transfers 33 2 --------------- --------------- Transfers as reported in the Statement of Operations $ (135,686) $ (98,628) =============== =============== December 31, 2002 2001 --------------- --------------- (In Thousands) Reserves for separate accounts by withdrawal characteristics: Subject to discretionary withdrawal: With market value adjustment $ - $ - At book value without market value adjustment less current surrender charge of 5% or more 931,533 1,365,751 At market value - - At book value without market value adjustment less current surrender charge of less than 5% - - Subtotal - - Not subject to discretionary withdrawal - - --------------- -------------- Total separate account reserves $ 931,533 $ 1,365,751 =============== ==============
33 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 10. Reinsurance The Company is involved in both ceded and assumed reinsurance with other companies for the purpose of diversifying risk and limiting exposure on larger risks. As of December 31, 2002, the Company's retention limit for acceptance of risk on life insurance policies had been set at various levels up to $500,000. To the extent that the assuming companies become unable to meet their obligations under these treaties, the Company remains contingently liable to its policyholders for the portion reinsured. To minimize its exposure to significant losses from retrocessionaire insolvencies, the Company evaluates the financial condition of the retrocessionaire and monitors concentrations of credit risk. Assumed premiums amounted to $1,299,151,000 and $2,113,275,000 for the years ended December 31, 2002 and 2001, respectively. The Company's ceded reinsurance arrangements reduced certain items in the accompanying financial statements by the following amounts:
December 31, 2002 2001 --------------- --------------- (In Thousands) Premiums $ 4,833 $ 4,080 Benefits paid or provided 7,821 8,023 Policy and contract liabilities at year end 586,918 592,643
During 2002 and 2001, the Company had ceded blocks of insurance under reinsurance treaties to provide funds for financing and other purposes. These reinsurance transactions, generally known as "financial reinsurance," represent financing arrangements. Financial reinsurance has the effect of increasing current statutory surplus while reducing future statutory surplus as the reinsurers recapture amounts. 34 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 11. Federal Income Taxes The Company files a consolidated federal income tax return with its subsidiaries. The method of tax allocation is governed by a written tax sharing agreement. The tax sharing agreement provides that each member of the consolidated return shall reimburse the Company for its respective share of the consolidated federal income tax liability and shall receive a benefit for its losses at the statutory rate. The components of the net deferred tax asset/(liability) at December 31 are as follows:
December 31, 2002 2001 --------------- --------------- (In Thousands) Total gross deferred tax assets $ 162,399 $ 102,914 Total deferred tax liabilities (5,007) (6,542) --------------- --------------- Net deferred tax asset 157,392 96,372 Deferred tax asset nonadmitted (157,392) (94,807) --------------- --------------- Net admitted deferred tax asset - 1,565 =============== =============== (Increase) in nonadmitted asset $ (62,585) $ (28,560) =============== ===============
Current income taxes incurred consist of the following major components:
December 31, 2002 2001 --------------- --------------- (In Thousands) Federal taxes on stand alone operations $ (17,296) $ (1,605) Federal taxes paid to affiliates under tax sharing agreement 67,278 - Consolidated operations loss carryback utilized (11,267) - --------------- --------------- Total taxes on operations 38,715 (1,605) Federal taxes on capital gains (1,559) 7,441 Federal taxes paid to affiliates under tax sharing agreement 3,896 - Consolidated capital loss carrybacks utilized (12,625) - --------------- ---------------- Total current taxes incurred $ 28,427 $ 5,836 ================ ================
35 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 11. Federal Income Taxes (continued) The main components of deferred tax assets and deferred tax liabilities are as follows:
December 31, 2002 2001 --------------- --------------- (In Thousands) Deferred tax assets resulting from book/tax differences in: Operations loss carryforwards $ 72,725 $ - Deferred acquisition costs 30,319 23,779 Investments 19,753 24,545 Insurance reserves 19,428 36,376 Policyholder dividends 8,328 8,535 Nonadmitted assets 3,709 4,886 Unrealized loss on investments 704 288 Other 7,433 4,505 --------------- -------------- Total deferred tax assets 162,399 102,914 Deferred tax assets nonadmitted (157,392) (94,807) --------------- -------------- Admitted deferred tax assets $ 5,007 $ 8,107 =============== ============== Deferred tax liabilities resulting from book/tax differences in: Due & deferred premiums $ 2,488 $ 2,410 Fixed assets 2,164 3,516 Other 355 616 --------------- -------------- Total deferred tax liabilities 5,007 6,542 --------------- -------------- Net admitted deferred tax asset $ - $ 1,565 =============== ==============
The change in net deferred income taxes is comprised of the following:
December 31, 2002 2001 Change --------------- --------------- ---------- (In Thousands) Total deferred tax assets $ 162,399 $ 102,914 $ 59,485 Total deferred tax liabilities 5,007 6,542 (1,535) --------------- --------------- --------- Net deferred tax asset $ 157,392 $ 96,372 61,020 =============== =============== Tax effect of items in surplus: Unrealized gains (losses) (416) Change in non-admitted assets 1,191 --------- Change in net deferred income tax $ 61,795 =========
36 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 11. Federal Income Taxes (continued) The provision for federal income tax expense and change in deferred taxes differs from the amount obtained applying the statutory Federal income tax rate to income (including capital losses) before income taxes for the following reasons:
Year Ended December 31, 2002 --------------- (In Thousands) Ordinary income $ (60,415) Capital gains (losses) (37,073) --------------- Total pre-tax book income $ (97,488) =============== Provision computed at statutory rate $ (34,121) Interest maintenance reserve 900 Other (147) --------------- Total $ (33,368) =============== Federal income taxes incurred $ 28,427 Change in net deferred income taxes (61,795) --------------- Total statutory income taxes $ (33,368) ===============
The amount of federal income taxes incurred that will be available for recoupment in event of future net losses is $12,514,000 from 2001. The Company has operations loss carryforwards of $207,784,000, which expire in 2017. The Company has a receivable from United States Treasury of $52,531,000 and $34,688,000 for federal income taxes as of December 31, 2002 and 2001, respectively. Prior to 1984, the Company was allowed certain special deductions for federal income tax reporting purposes that were required to be accumulated in a "policyholders' surplus account" (PSA). In the event those amounts are distributed to shareholders, or the balance of the account exceeds certain limitations prescribed by the Internal Revenue Code, the excess amounts would be subject to income tax at current rates. Income taxes also would be payable at current rates if the Company ceases to qualify as a life insurance company for tax reporting purposes, or if the income tax deferral status of the PSA is modified by future tax legislation. Management does not intend to take any actions nor does management expect any events to occur that would cause income taxes to become payable on the PSA balance. Accordingly, the Company has not accrued income taxes on the PSA balance of $14,388,000 at December 31, 2002. However, if such taxes were assessed, the amount of the taxes payable would be $5,036,000. No deferred tax liabilities are recognized related to the PSA. 37 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 12. Investment in and Advances to Subsidiaries Amounts invested in and advanced to the Company's subsidiaries are summarized as follows:
December 31, 2002 2001 --------------- --------------- (In Thousands) Common stock $ 811,079 $ 761,038 (Payable) receivable from subsidiaries 2,102 2,445
Summarized financial information for these subsidiaries is as follows:
December 31, 2002 2001 --------------- --------------- (In Thousands) Revenue s $ 7,929,991 $ 5,911,580 Income before net realized gains on investments (235,729) (75,842) Net loss (277,136) (126,933) Admitted assets 24,301,380 20,556,877 Liabilities 23,490,301 19,795,838
13. Capital and Surplus Under Iowa insurance regulations, the Company is required to maintain a minimum total capital and surplus which is the lower of $5,000,000 or risk based capital. Additionally, the amount of dividends which can be paid by the Company to its stockholder without prior approval of the Iowa Division of Insurance is limited to the greater of 10% of statutory surplus or the statutory net gain from operations. 38 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 14. Fair Values of Financial Instruments Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. The carrying amounts and fair values of the Company's financial instruments are summarized as follows:
December 31 2002 2001 ------------------------------------ ------------------------------------- ------------------ ----------------- ------------------ ------------------ Carrying Fair Carrying Fair Amount Value Amount Value ------------------ ----------------- ------------------ ------------------ (In Thousands) Assets: Bonds $ 2,925,958 $ 3,033,282 $ 2,628,098 $ 2,642,549 Preferred stocks 441 441 490 490 Unaffiliated common stocks 285 285 306 306 Mortgage loans 859,953 943,421 842,243 875,493 Policy loans 130,790 130,790 139,826 139,826 Derivative securities 32,833 26,805 63,111 47,978 Short-term investments 19,971 19,971 53,000 53,000 Cash 5,131 5,131 14,592 14,592 Investment in surplus notes 135,000 191,228 185,000 268,149 Indebtedness from related parties 107,057 107,056 29,867 29,867 Separate account assets 959,377 959,377 1,406,693 1,406,693 Receivable for securities 207 207 3,950 3,950 Liabilities: Individual and group annuities 2,852,482 2,794,933 2,611,782 2,439,374 Deposit type contract 189,296 190,706 152,194 152,194 Policyholder funds 26,333 26,333 26,893 26,893 Indebtedness to related parties 66,200 66,200 21,091 21,091 Separate account liabilities 959,377 959,377 1,406,693 1,406,693 Payable for securities - - 56,485 56,485
39 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 14. Fair Values of Financial Instruments (continued) The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Cash and short-term investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Fixed maturities and equity securities: The fair values for bonds, preferred stocks and common stocks, reported herein, are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placements, collateralized mortgage obligations and other mortgage derivative investments, are estimated by discounting the expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality, and maturity, which fall within a range between 2% and 15% over the total portfolio. Fair values determined on this basis can differ from values published by the NAIC Securities Valuation Office. Fair value as determined by the NAIC as of December 31, 2002 and 2001 is $3,945,966,000 and $3,402,211,000 respectively. Mortgage loans: Estimated fair values for commercial real estate loans were generated using a discounted cash flow approach. Loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on new loans with similar characteristics. The amortizing features of all loans are incorporated in the valuation. Where data on option features is available, option values are determined using a binomial valuation method, and are incorporated into the mortgage valuation. Restructured loans are valued in the same manner; however, these loans were discounted at a greater spread to reflect increased risk. All residential loans are valued at their outstanding principal balances, which approximate their fair values. Derivative financial instruments: Fair values for on-balance-sheet derivative financial instruments (caps, options and floors) and off-balance-sheet derivative financial instruments (swaps) are based on broker/dealer valuations or on internal discounted cash flow pricing models taking into account current cash flow assumptions and the counterparties' credit standing. Investment in surplus notes: Estimated fair values for investment in surplus notes are generated using a discounted cash flow approach. Cash flows were discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on surplus notes with similar characteristics. 40 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 14. Fair Values of Financial Instruments (continued) Guaranteed investment contracts: The fair values of the Company's guaranteed investment contracts are estimated using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. Other investment-type insurance contracts: The fair values of the Company's deferred annuity contracts are estimated based on the cash surrender values. The carrying values of other policyholder liabilities, including immediate annuities, dividend accumulations, supplementary contracts without life contingencies, and premium deposits, approximate their fair values. The carrying value of all other financial instruments approximates their fair value. 15. Commitments and Contingencies The Company leases its home office space and certain other equipment under operating leases that expire through 2017. During the years ended December 31, 2002 and 2001, rent expense totaled $4,951,000 and $3,254,000, respectively. At December 31, 2002 minimum rental payments due under all non-cancelable operating leases are: 2003- $5,268,000, 2004 - $5,324,000, 2005 - $5,324,000, 2006 - $5,324,000, 2007 - $5,135,000 and $47,414,000 thereafter. Litigation The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of pending lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. 41 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 16. Financing Agreements The Company maintains a revolving loan agreement with SunTrust Bank, Atlanta (the "Bank"). Under this agreement, which expires July 31, 2003, the Company can borrow up to $100,000,000 from the Bank. Interest on any borrowing accrues at an annual rate equal to the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $171,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. The Company also maintains a revolving loan agreement with Bank of New York, New York (the "Bank"). Under this agreement, the Company can borrow up to $100,000,000 from the Bank. Interest on any of the Company borrowing accrues at an annual rate equal to the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $16,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. 17. Related Party Transactions Affiliates Management and service contracts and all cost sharing arrangements with other affiliated ING US life insurance companies are allocated among companies in accordance with normal, generally accepted expense and cost allocation methods. Investment Management: The Company has entered into an investment advisory agreement and an administrative services agreement with ING Investment Management, LLC ("IIM") under which IIM provides the Company with investment management and asset liability management services. Total fees under the agreement were approximately $10,395,000 and $9,730,000 for the year ended December 31, 2002 and 2001, respectfully. Inter-insurer Services Agreement: The Company has entered into a services agreement with certain of its affiliated insurance companies in the United States ("affiliated insurers") whereby the affiliated insurers provide certain administrative, management, professional, advisory, consulting and other services to each other. Net amounts received (paid) under these agreements were $3,292,000 and $16,610,000 for the year ended December 31, 2002 and 2001, respectfully. 42 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 17. Related Party Transactions (continued) Affiliates (continued) Reciprocal Loan Agreement: The Company has entered into a reciprocal or revolving loan agreement with ING AIH, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which expires December 31, 2007, the Company and ING AIH can borrow up to $104,000,000 from one another. Interest on any borrowing 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, the Company incurred interest expense of $170,000 and interest income of $615,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to ING AIH and $0 receivable from ING AIH. Tax Sharing Agreements: The Company has entered into federal tax sharing agreements with members of an affiliated group as defined in Section 1504 of the Internal Revenue Code of 1986, as amended. The agreement provides for the manner of calculation and the amounts/timing of the payments between the parties as well as other related matters in connection with the filing of consolidated federal income tax returns. The Company has also entered into a state tax sharing agreement with ING AIH and each of the specific subsidiaries that are parties to the agreement. The state tax agreement applies to situations in which ING AIH and all or some of the subsidiaries join in the filing of a state or local franchise, income tax or other tax return on a consolidated, combined or unitary basis. Service Agreement with ING Financial Adviser, LLC: The Company has entered into a services agreement with ING Financial Advisors, LLC ("ING FA") to provide certain administrative, management, professional advisory, consulting and other services to the Company for the benefit of its customers. Charges for these services are to be determined in accordance with fair and reasonable standards with neither party realizing a profit nor incurring a loss as a result of the services provided to the Company. The Company will reimburse ING FA for direct and indirect costs incurred on behalf of the Company. Subsidiaries The Company owns, as of December 31, 2002, the capital stock of, valued on the equity basis, USG Annuity and Life Insurance Company (an Oklahoma domestic insurer) and Golden American Life Insurance Company (a Delaware domestic insurer). 43 Equitable Life Insurance Company of Iowa Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 18. Guaranty Fund Assessments Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premiums companies collect in that state. The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and the amount of premiums written in each state. The Company reduces the accrual by credits allowed in some states to reduce future premium taxes by a portion of assessments in that state. The Company has estimated this liability to be $3,465,000 and $3,759,000 as of December 31, 2002 and 2001, respectively and has recorded a reserve. The Company has also recorded an asset of $473,000 and $771,000 as of December 31, 2002 and 2001, respectively, for future credits to premium taxes for assessments already paid. 19. Regulatory Risk-Based Capital Life and health insurance companies are subject to certain Risk-Based Capital ("RBC") requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2002, the Company met the RBC requirements. 44 EXHIBIT 99.2 Report of Independent Auditors Board of Directors and Stockholder Equitable Life Insurance Company of Iowa We have audited the accompanying statutory basis balance sheets of Ameribest Life Insurance Company ("the Company," which, effective January 1, 2003, merged into an affiliate, Equitable Life Insurance Company of Iowa, a wholly owned subsidiary of ING America Insurance Holdings, Inc.) as of December 31, 2002 and 2001, and the related statutory basis statements of operations, changes in capital and surplus, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Office of Commissioner of Insurance of the State of Georgia (Georgia Insurance Department), which practices differ from accounting principles generally accepted in the United States. The variances between such practices and accounting principles generally accepted in the United States are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material. In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States, the financial position of Ameribest Life Insurance Company at December 31, 2002 and 2001 or the results of its operations or its cash flows for the years then ended. 1 However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ameribest Life Insurance Company at December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended, in conformity with accounting practices prescribed or permitted by the Georgia Insurance Department. As discussed in Note 3 to the financial statements, in 2001 the Company changed various accounting policies to be in accordance with the revised NAIC Accounting Practices and Procedures Manual, as adopted by the Georgia Insurance Department. /s/ Ernst & Young LLP April 25, 2003 2 Ameribest Life Insurance Company Balance Sheets - Statutory Basis --------------------------------------------------------------------------------
December 31 2002 2001 --------------- -------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 281,391 $ 259,073 Mortgage loans 4,644 4,761 Policy loans - 10 Other invested assets 3 87 Cash and short-term investments ,900 17,812 --------------- --------------- Total cash and invested assets 288,938 281,743 Accrued investment income 3,677 3,561 Indebtedness from related parties 1,263 105 Federal income tax including net admitted deferred tax asset for 2002 - $571; 2001 - $409 3,381 572 Other assets - 28 --------------- --------------- Total admitted assets $ 297,259 $ 286,009 =============== ===============
3 Ameribest Life Insurance Company Balance Sheets - Statutory Basis (continued) --------------------------------------------------------------------------------
December 31 2002 2001 --------------- --------------- (In Thousands, except share amounts) Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves $ 279,079 $ 264,158 Deposit type contracts 905 121 --------------- --------------- Total policy and contract liabilities 279,984 264,279 Interest maintenance reserve 1,899 2,400 Accounts payable and accrued expenses 146 1,324 Indebtedness to related parties 65 367 Asset valuation reserve 385 733 Other liabilities 12 - --------------- --------------- Total liabilities 282,491 269,103 Capital and surplus: Common stock: authorized - 3,000,000 shares of $1.50 par value; 1,666,667 shares issued and outstanding 2,500 2,500 Additional paid-in capital 18,808 18,808 Unassigned deficit (6,540) (4,402) --------------- --------------- Total capital and surplus 14,768 16,906 --------------- --------------- Total liabilities and capital and surplus $ 297,259 $ 286,009 =============== ===============
See accompanying notes - statutory basis. 4 Ameribest Life Insurance Company Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 7,643 $ 72,077 Net investment income 19,043 19,930 Amortization of interest maintenance reserve 640 206 Commissions, expense allowances and reserve adjustments on reinsurance ceded 259 1,757 --------------- --------------- Total premiums and other revenues 27,585 93,970 Benefits paid or provided: Annuity benefits 5,440 3,452 Surrender benefits 7,880 6,391 Interest on policy or contract funds (18) (3) Increase in life, annuity, and accident and health reserves 14,921 76,332 --------------- --------------- Total benefits paid or provided 28,223 86,172 Insurance expenses: Commissions 691 3,738 General expenses 348 2,038 Insurance taxes, licenses and fees, excluding federal income taxes 23 183 --------------- --------------- Total insurance expenses 1,062 5,959 --------------- --------------- (Loss) gain from operations before federal income taxes and net realized capital losses (1,700) 1,839 Federal income tax benefit (905) - --------------- --------------- (Loss) gain from operations before net realized capital losses (795) 1,839 Net realized capital (losses) gains net of income taxes 2002 - $(258); 2001 - $ (729) and excluding net transfers to the interest maintenance reserve 2002- $(138); 2001- $(2,925) (1,856) 846 --------------- --------------- Net income $ (2,651) $ 2,685 =============== ===============
See accompanying notes - statutory basis. 5 Ameribest Life Insurance Company Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Common stock: Balance at beginning and end of year $ 2,500 $ 2,500 --------------- --------------- Paid-in and contributed surplus: Balance at beginning and end of year 18,808 18,808 --------------- --------------- Unassigned deficit: Balance at beginning of year (4,402) (7,421) Net income (2,651) 2,685 Change in nonadmitted assets (419) 2,630 Change in asset valuation reserve 348 (459) Change in net deferred income tax 584 (1,418) Change in accounting principle, net of tax - 215 Other - (634) --------------- --------------- Balance at end of year (6,540) (4,402) --------------- --------------- Total capital and surplus $ 14,768 $ 16,906 =============== ===============
See accompanying notes - statutory basis. 6 Ameribest Life Insurance Company Statements of Cash Flows - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 7,643 $ 72,076 Net investment income received 19,205 19,249 Commission and expense allowances received on reinsurance ceded 260 1,757 Benefits paid (12,488) (9,843) Insurance expenses paid (1,131) (5,995) Federal income taxes paid (2,000) (163) Other revenues in excess of (expenses) other 28 (28) --------------- --------------- Net cash provided by operations 11,517 77,053 Investments Proceeds from sales, maturities, or repayments of investments: Bonds 154,954 223,743 Mortgage Loans 116 994 Miscellaneous proceeds 87 (47) Net tax on capital gains - (729) --------------- --------------- Net proceeds from sales, maturities, or repayments of investments 155,157 223,961 Cost of investments acquired: Bonds 179,003 280,372 Mortgage loans - 5,754 Miscellaneous applications (receipts) 32 - --------------- --------------- Total cost of investments acquired 179,035 286,126 Net decrease (increase) in policy loans 10 (10) --------------- --------------- Net cash used in investment activities (23,868) (62,175)
7 Ameribest Life Insurance Company Statements of Cash Flows - Statutory Basis (continued) --------------------------------------------------------------------------------
Year ended December 31 2002 2001 --------------- --------------- (In Thousands) Financing and miscellaneous activities Cash provided: Capital and surplus paid-in $ - $ 215 Borrowed money 817 124 Other sources (3,378) (11,210) --------------- --------------- Net cash used in financing and miscellaneous activities (2,561) (10,871) --------------- --------------- Net (decrease) increase in cash and short-term investments (14,912) 4,007 Cash and short-term investments: Beginning of year 17,812 13,805 --------------- --------------- End of year $ 2,900 $ 17,812 =============== ===============
See accompanying notes - statutory basis. 8 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies Ameribest Life Insurance Company (the Company) is domiciled in Georgia. Effective January 1, 2003, the Company merged into an affiliate, Equitable Life Insurance Company of Iowa, a wholly owned subsidiary of ING America Insurance Holdings, Inc. ("ING AIH"). The Company offers fixed annuity products. Operations are conducted in the United States and the Company is presently licensed in 46 states. The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Basis of Presentation The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Office of Commissioner of Insurance of the State of Georgia (Georgia Insurance Department), which practices differ from accounting principles generally accepted in the United States ("GAAP"). The most significant variances from GAAP are as follows: Investments: Investments in bonds are reported at amortized cost or market value based on the National Association of Insurance Commissioners ("NAIC") rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized capital gains and losses reported in operations for those designated as trading and as a separate component of other comprehensive income in stockholder's equity for those designated as available-for-sale. The Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For structured securities, when a negative yield results from a revaluation based on new prepayment assumptions (i.e. undiscounted cash flows are less than current book value), an other than temporary impairment is considered to have occurred and the asset is written down to the value of the undiscounted cash flows. For GAAP, assets are reevaluated based on the discounted cash flows using a current market rate. Impairments are recognized when there has been an adverse change in cash flows and the fair value is less than book. The asset is then written down to fair value. 9 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Valuation Reserves: The asset valuation reserve ("AVR") is determined by an NAIC-prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed-income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. The net deferral is reported as the interest maintenance reserve ("IMR") in the accompanying balance sheets. Realized gains and losses on investments are reported in operations net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pretax basis in the period that the asset giving rise to the gain or loss is sold and valuation allowances are provided when there has been a decline in value deemed other than temporary, in which case the provision for such declines is charged to income. Valuation allowances, if necessary, are established for mortgage loans based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan's effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral. The initial valuation allowance and subsequent changes in the allowance for mortgage loans as a result of a temporary impairment are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP. Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance, to the extent recoverable from future policy revenues, are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, acquisition costs are amortized generally in proportion to the present value of expected gross margins from surrender charges and investment, mortality, and expense margins. 10 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Premiums: Life premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting. Under GAAP, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance policies, are recognized as revenue when due. Group insurance premiums are recognized as premium revenue over the time period to which the premiums relate. Revenues for universal life, annuities and guaranteed interest contracts consist of policy charges for the cost of insurance, policy administration charges, amortization of policy initiation fees and surrender charges assessed during the period. Benefit and Contract Reserves: Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium and Commissioners' Reserve Valuation methods using statutory rates for mortality and interest. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing reasonably conservative estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest-sensitive products, the GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads. Reinsurance: For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Statutory income recognized on certain reinsurance treaties representing financing arrangements is not recognized on a GAAP basis. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as required under GAAP. Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP. 11 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Nonadmitted Assets: Certain assets designated as "nonadmitted," principally deferred federal income tax assets, disallowed interest maintenance reserves, non-operating software, past-due agents' balances, furniture and equipment, intangible assets, and other assets not specifically identified as an admitted asset within the Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet. Universal Life and Annuity Policies: Revenues for universal life and annuity policies consist of the entire premium received and benefits incurred represent the total of death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values. Deferred Income Taxes Deferred tax assets are provided for and admitted to an amount determined under a standard formula. This formula considers the amount of differences that will reverse in the subsequent year, taxes paid in prior years that could be recovered through carrybacks, surplus limits and the amount of deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are non-admitted. Deferred taxes do not include any amounts for state taxes. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets that are expected to be realized in future years and a valuation allowance is established for the portion that is not realizable. Statements of Cash Flows: Cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents include cash balances and investments with initial maturities of three months or less. The effects of the preceding variances from GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material. Other significant accounting practices are as follows: Investments Bonds, preferred stocks, common stocks, short-term investments and derivative instruments are stated at values prescribed by the NAIC, as follows: 12 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) Bonds not backed by other loans are principally stated at amortized cost using the interest method. Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except for higher-risk asset backed securities, which are valued using the prospective method. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amount due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. In addition, the Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss accounted for as a realized loss. Mortgage loans are reported at amortized cost, less allowance for impairments. Policy loans are reported at unpaid principal balances. Short-term investments are reported at amortized cost. Short-term investments include investments with maturities of less than one year at the date of acquisition. Realized capital gains and losses are determined using the specific identification basis. 13 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Aggregate Reserve for Life Policies and Contracts Life, annuity, and accident and health reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash value or the amounts required by law. Interest rates range from 3.00% to 7.50%. The Company waives the deduction of deferred fractional premiums upon the death of the insured. It is the Company's practice to return a pro rata portion of any premium paid beyond the policy month of death, although it is not contractually required to do so for certain issues. The methods used in valuation of substandard policies are as follows: For life, endowment and term policies issued substandard, the standard reserve during the premium-paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts. For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating. For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra. The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance classified as group Section 79. The tabular interest of funds not involving life contingencies is calculated as the current year reserves, plus payments, less prior year reserves, less funds added. Reinsurance Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contract and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. 14 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Nonadmitted Assets Nonadmitted assets are summarized as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Deferred federal income taxes $ 3,098 $ 2,676 Agents' debit balances 14 17 --------------- --------------- Total nonadmitted assets $ 3,112 $ 2,693 =============== ===============
Changes in nonadmitted assets are generally reported directly in surplus as an increase or decrease in nonadmitted assets. Certain changes are reported directly in surplus as a change in unrealized capital gains or losses. Claims and Claims Adjustment Expenses Claims expenses represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2002. The Company does not discount claims and claims adjustment expense reserves. Such estimates are based on actuarial projections applied to historical claims payment data. Such liabilities are considered to be reasonable and adequate to discharge the Company's obligations for claims incurred but unpaid as of December 31, 2002. Cash Flow Information Cash and short-term investments include cash on hand, demand deposits and short-term fixed maturity instruments (with a maturity of less than one year at date of acquisition). The Company borrowed $13,825,000 and repaid $13,825,000 in 2002, borrowed $27,000,000 and repaid $27,000,000 during 2001. These borrowings were on a short-term basis, at an interest rate that approximated current money market rates and exclude borrowings from reverse dollar repurchase transactions. Interest paid on borrowed money was $2,000 and $8,000 during 2002 and 2001, respectively. Reclassifications Certain prior year amounts in the Company's statutory basis financial statements have been reclassified to conform to the 2002 financial statement presentation. 15 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 2. Permitted Statutory Basis Accounting Practices The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the Georgia Insurance Department. The Georgia Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of Georgia for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency in under the Georgia Insurance Laws. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the state of Georgia. The Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices. The Company is required to identify those significant accounting practices that are permitted, and obtain written approval of the practices from the Georgia Department of Insurance. As of December 31, 2002 and 2001, the Company had no such permitted accounting practices. 3. Accounting Changes The Company prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Georgia. Effective January 1, 2001, the Georgia Insurance Department required that insurance companies domiciled in the State of Georgia prepare their statutory basis financial statements in accordance with the NAIC Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the State of Georgia insurance commissioner. Accounting changes adopted to conform to the provisions of the NAIC Accounting Practices and Procedures Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned deficit in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods. As a result of these changes, the Company reported a change of accounting principle, as an adjustment that decreased unassigned deficit, by $215,000 as of January 1, 2001. 16 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments The amortized cost and fair value of bonds and equity securities are as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value ---------- ---------- ---------- ---------- (In Thousands) At December 31, 2002: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 16,917 $ 974 $ - $ 17,891 Public utilities securities 28,304 1,532 41 29,795 Corporate securities 184,124 12,389 380 196,133 Other structured securities 15,468 767 - 16,235 Commercial mortgage-backed securities 36,578 3,386 - 39,964 ---------- ---------- ---------- ---------- Total fixed maturities $ 281,391 $ 19,048 $ 421 $ 300,018 ========== ========== ========== ========== At December 31, 2001: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 11,087 $ 456 $ 70 $ 11,473 Public utilities securities 10,289 621 - 10,910 Corporate securities 188,501 5,664 2,305 191,860 Other structured securities 23,980 800 - 24,780 Commercial mortgage-backed securities 25,216 1,054 - 26,270 ---------- ---------- ---------- ---------- Total fixed maturities $ 259,073 $ 8,595 $ 2,375 $ 265,293 ========== ========== ========== ==========
17 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) The amortized cost and fair value of investments in bonds at December 31, 2002, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized Fair Cost Value --------------- --------------- (In Thousands) December 31, 2002 Maturity: Due in 1 year or less $ - $ - Due after 1 year through 5 years 118,229 125,133 Due after 5 years through 10 years 96,562 102,989 Due after 10 years 14,554 15,697 --------------- --------------- 229,345 243,819 Mortgage-backed securities - - Other structured securities 15,468 16,235 Commercial mortgage-backed securities 36,578 39,964 --------------- --------------- Total $ 281,391 $ 300,018 =============== ===============
At December 31, 2002, investments in certificates of deposit and bonds, with an admitted asset value of $6,802,000 were on deposit with state insurance departments to satisfy regulatory requirements. Proceeds from the sales of investments in bonds and other fixed maturity interest securities were $140,855,000 and $205,473,000 in 2002 and 2001, respectively. Gross gains of $2,693,000 and $6,015,000 and gross losses of $3,959,000 and $1,515,000 during 2002 and 2001, respectively, were realized on those sales. A portion of the gains realized in 2002 and 2001 has been deferred to future periods in the interest maintenance reserve. Major categories of net investment income are summarized as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Income: Bonds $ 19,304 $ 19,813 Mortgage loans 356 409 Other 119 378 --------------- -------------- Total investment income 19,779 20,600 Investment expenses (736) (670) --------------- -------------- Net investment income $ 19,043 $ 19,930 =============== ==============
18 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) As part of its overall investment strategy, the Company has entered into agreements to purchase securities as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Investment Purchase Commitments $ - $ 10,000
There were no new loans during 2002. Fire insurance is required on all properties covered by mortgage loans and must at least equal the excess of the loan over the maximum loan which would be permitted by law on the land without the buildings. As of December 31, 2002, the Company held no mortgages with interest more than 180 days overdue. 5. Concentrations of Credit Risk The Company held less-than-investment-grade bonds with an aggregate book value of $240,000 and $11,537,000 and with an aggregate market value of $240,000 and $11,432,000 at December 31, 2002 and 2001, respectively. Those holdings amounted to 0.1% of the Company's investments in bonds and 0.1% of total admitted assets at December 31, 2002. The holdings of less-than-investment-grade bonds are widely diversified and of satisfactory quality based on the Company's investment policies and credit standards. The Company held unrated bonds of $5,000,000 and $17,903,000 with an aggregate NAIC market value of $5,195,000 and $17,782,000 at December 31, 2002 and 2001, respectively. The carrying value of these holdings amounted to 1.8% of the Company's investment in bonds and 1.7% of the Company's total admitted assets at December 31, 2002. At December 31, 2002, the Company's commercial mortgages involved a concentration of properties located in California (59.4%) and Arizona (40.6%). The portfolio is well diversified; covering many different types of income-producing properties on which the Company has first mortgage liens. The maximum mortgage outstanding on any individual property is $1,887,000. 19 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 6. Annuity Reserves At December 31, 2002 and 2001, the Company's annuity reserves, including deposit fund liabilities that are subject to discretionary withdrawal with adjustment, subject to discretionary withdrawal without adjustment, and not subject to discretionary withdrawal provisions are summarized as follows:
December 31, 2002 Amount Percent --------------- --------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 275,105 92.4% At book value less surrender charge 17,936 6.0 --------------- --------------- Subtotal 293,041 98.4 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment - - Not subject to discretionary withdrawal 4,879 1.6 --------------- --------------- Total annuity reserves and deposit fund liabilities before reinsurance 297,920 100.0% =============== Less reinsurance ceded 17,936 --------------- Net annuity reserves and deposit fund liabilities $ 279,984 ===============
December 31, 2001 Amount Percent --------------- --------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 261,524 92.4% At book value less surrender charge 18,699 6.6 --------------- --------------- Subtotal $ 280,223 99.0 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment - - Not subject to discretionary withdrawal 2,755 1.0 --------------- --------------- Total annuity reserves and deposit fund liabilities before reinsurance 282,978 100.0% =============== Less reinsurance ceded 18,699 --------------- Net annuity reserves and deposit fund liabilities $ 264,279 ===============
20 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 7. Reinsurance The Company is involved in ceded reinsurance with other companies for the purpose of diversifying risk and limiting exposure on larger risks. The Company remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations. The Company's ceded reinsurance arrangements reduced certain items in the accompanying financial statements by the following amounts:
December 31, 2002 Amount Percent --------------- --------------- (In Thousands) Premiums $ 390 $ 11,440 Benefits paid or provided 660 192 Policy and contract liabilities at year end 17,943 18,705
8. Federal Income Taxes The Company files a separate federal income tax return. The components of the net deferred tax asset (liability) at December 31 are as follows:
2002 2001 --------------- --------------- (In Thousands) Total gross deferred tax assets $ 3,801 $ 3,085 Total deferred tax liabilities (132) - --------------- --------------- Net deferred tax asset 3,669 3,085 Deferred tax asset nonadmitted (3,098) (2,676) --------------- --------------- Net admitted deferred tax asset $ 571 $ 409 =============== =============== (Increase) decrease in nonadmitted asset $ (422) $ (1,827) =============== ===============
Significant components of income taxes incurred as of December 31 are:
2002 2001 --------------- --------------- (In Thousands) Current income taxes incurred consist of the following major components: Federal taxes on operations $ (905) $ 810 Operations loss carryovers utilized - (810) Federal tax on capital gains 258 1,575 Capital loss carryovers utilized - (846) --------------- --------------- Total current taxes incurred $ (647) $ 729 =============== ===============
21 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Federal Income Taxes (continued) The main components of deferred tax assets and deferred tax liabilities are as follows:
December 31 2002 2001 --------------- --------------- (In Thousands) Deferred tax assets resulting from book/tax differences in: Deferred acquisition costs $ 919 $ 963 Insurance reserves 1,822 1,161 Goodwill 880 961 Operations loss carry forward 165 - Other 15 - --------------- --------------- Total deferred tax assets 3,801 3,085 Deferred tax assets nonadmitted (3,098) (2,676) --------------- --------------- Admitted deferred tax assets $ 703 $ 409 --------------- --------------- Deferred tax liabilities resulting from book/tax differences in: Other $ 132 $ - --------------- --------------- Total deferred tax liabilities 132 - --------------- --------------- Net admitted deferred tax asset $ 571 $ 409 =============== ===============
The change in net deferred income taxes is comprised of the following:
December 31 2002 2001 Change --------------- --------------- --------------- (In Thousands) Total deferred tax assets $ 3,801 $ 3,085 $ 716 Total deferred tax liabilities (132) - (132) --------------- --------------- --------------- Net deferred tax asset (liability) $ 3,669 $ 3,085 $ 584 =============== =============== Tax effect of items in surplus: Nonadmitted assets (5) --------------- Change in net deferred income tax $ 579 ===============
22 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Federal Income Taxes (continued) The provision for federal income taxes expense and change in deferred taxes differs from the amount obtained by applying the statutory Federal income tax rate to income (including capital losses) before income taxes for the following reasons:
Year Ended December 31, 2002 ----------------- (In Thousands) Ordinary income $ (1,700) Capital gains (losses) (1,460) ----------------- Total pre-tax book income $ (3,160) ================= Provisions computed at statutory rate $ (1,106) Interest maintenance reserve (224) Nondeductible general expense 82 Other 22 ----------------- Total $ (1,226) ================= Federal income taxes incurred $ (647) Change in net deferred income taxes (579) ----------------- Total statutory income taxes $ (1,226) =================
The Company has a recoverable of $2,810,000 at December 31, 2002 and $163,000 at December 31, 2001 from the United States Treasury for federal income taxes. The Company has operating loss carryforwards of $473,000 that expire in 2017. 9. Capital and Surplus Under Georgia insurance regulations, the Company is required to maintain a minimum total capital and surplus of $3,000,000. Additionally, the amount of dividends that can be paid by the Company to its stockholder without prior approval of the Georgia Insurance Department is limited to the greater of 10% of statutory surplus or statutory net gain from operations. 23 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 10. Fair Values of Financial Instruments In cases where quoted market prices are not available, 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. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the financial instrument. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying value of the Company. Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. The carrying amounts and fair values of the Company's financial instruments are summarized as follows:
December 31 2002 2001 ------------------------ ------------------------ Carrying Fair Carrying Fair Amount Value Amount Value ----------- ----------- ----------- ----------- (In Thousands) Assets: Bonds $ 281,391 $ 300,018 $ 259,073 $ 265,293 Mortgage loans 4,644 5,329 4,761 4,950 Policy loans - - 10 10 Short-term investments 2,850 2,850 - - Cash 50 50 17,812 17,812 Indebtedness from related parties 1,263 1,263 105 105 Receivable for securities 3 3 87 87 Liabilities: Individual and group annuities 279,079 257,978 264,158 243,639 Deposit type contract 905 971 121 130 Indebtedness to related parties 65 65 367 367
24 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 10. Fair Values of Financial Instruments (continued) The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Cash and short-term investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Fixed maturities and equity securities: The fair values for bonds, preferred stocks and common stocks, reported herein, are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placements, collateralized mortgage obligations and other mortgage derivative investments, are estimated by discounting the expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality, and maturity, which fall within a range between 0% and 15% over the total portfolio. Fair values determined on this basis can differ from values published by the NAIC Securities Valuation Office. Market value as determined by the NAIC as of December 31, 2002 and 2001 is $286,211,000 and $264,074,000 respectively. Mortgage loans: Estimated market values for commercial real estate loans were generated using a discounted cash flow approach. Loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on new loans with similar characteristics. The amortizing features of all loans are incorporated in the valuation. Where data on option features is available, option values are determined using a binomial valuation method, and are incorporated into the mortgage valuation. Restructured loans are valued in the same manner; however, these loans were discounted at a greater spread to reflect increased risk. All residential loans are valued at their outstanding principal balances, which approximate their fair values. Other investment-type insurance contracts: The fair values of the Company's deferred annuity contracts are estimated based on the cash surrender values. The carrying values of other policyholder liabilities, including immediate annuities, dividend accumulations, supplementary contracts without life contingencies, and premium deposits, approximate their fair values. The carrying value of all other financial instruments approximates their fair value. 25 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 11. Commitments and Contingencies The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of pending lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. 12. Financing Agreements The Company maintains a revolving loan agreement with SunTrust Bank, Atlanta (the "Bank"). Under this agreement, which expires July 31, 2003, the Company can borrow up to $10,000,000 from the Bank. Interest on any borrowing accrues at an annual rate equal to the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $677 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. The Company also maintains a revolving loan agreement with Bank of New York, New York (the "Bank"). Under this agreement, the Company can borrow up to $5,000,000 from the Bank. Interest on any of the Company borrowing accrues at an annual rate equal to the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $0 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. 13. Related Party Transactions Affiliates Management and service contracts and all cost sharing arrangements with other affiliated ING US life insurance companies are allocated among companies in accordance with normal, generally accepted expense and cost allocation methods. Investment Management: The Company has entered into an investment advisory agreement and an administrative services agreement with ING Investment Management, LLC ("IIM") under which IIM provides the Company with investment management and asset liability management services. Total fees under the agreement were approximately $723,000 and $643,000 for the year ended December 2002 and 2001, respectively. 26 Ameribest Life Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 13. Related Party Transactions (continued) Affiliates (continued) Inter-insurer Services Agreement: The Company has entered into a services agreement with certain of its affiliated insurance companies in the United States ("affiliated insurers") whereby the affiliated insurers provide certain administrative, management, professional, advisory, consulting and other services to each other. Net amounts received (paid) under these agreements were ($263,000) and $1,807,000 for the year ended December 31, 2002 and 2001, respectively. Reciprocal Loan Agreement: The Company has entered into a reciprocal or revolving loan agreement with ING AIH, a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which expires December 31, 2008, the Company can borrow up to $1,400,000 from ING AIH. Interest on any borrowing is charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Under this agreement, the company incurred interest expense of $1,274 for the year ended December 31, 2002. At December 31, 2002, the company had $0 payable to ING AIH. 14. Guaranty Fund Assessments Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premiums companies collect in that state. The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and the amount of premiums written in each state. The Company reduces the accrual by credits allowed in some states to reduce future premium taxes by a portion of assessments in that state. The Company has estimated this liability to be $29,000 and $100,000 as of December 31, 2002 and 2001, respectively and has recorded a reserve. The Company has also recorded an asset of $0 and $28,000 as of December 31, 2002 and 2001, respectively, for future credits to premium taxes for assessments already paid. 15. Regulatory Risk-Based Capital Life and health insurance companies are subject to certain Risk-Based Capital ("RBC") requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2002, the Company meets the RBC requirements. 27 Exhibit 99.3 Equitable Life Insurance Company of Iowa Balance Sheet - Statutory Basis --------------------------------------------------------------------------------
September 30, 2003 -------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 3,658,954 Preferred stocks 441 Common stocks 1,232,540 Mortgage loans 950,456 Real Estate 2,968 Policy loans 127,934 Other invested assets 251,805 Cash and short-term investments 149,468 -------------- Total cash and invested assets 6,374,566 Deferred and uncollected premiums 4,954 Accrued investment income 48,458 Reinsurance balances recoverable 5,797 Data processing equipment 92 Indebtedness from related parties 34,330 Federal income tax recoverable 19,328 Separate account assets 980,432 Other assets 376,094 -------------- Total admitted assets $ 7,844,051 ============== Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves 4,639,169 Deposit type contracts 620,616 Policyholders' funds 301 Dividend payable 16,935 Unpaid claims 3,445 -------------- Total policy and contract liabilities 5,280,466 Accounts payable and accrued expenses 28,110 Indebtedness to related parties 50,703 Interest maintenance reserve 25,466 Asset valuation reserve 33,398 Borrowed money 207,767 Other liabilities 65,941 Separate account liabilities 980,432 -------------- Total liabilities 6,672,283 Capital and surplus: Common stock 5,000 Additional paid-in capital 1,236,632 Unassigned surplus (69,864) Total capital and surplus 1,171,768 -------------- Total liabilities and capital and surplus $ 7,844,051 ==============
1 Equitable Life Insurance Company of Iowa Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 1,465,594 $ 1,459,082 Policy proceeds and dividends left on deposit 1,615 1,528 Net investment income 219,545 159,853 Amortization of interest maintenance reserve (1,996) (1,694) Commissions, expense allowances and reserve adjustments on reinsurance ceded 56 393 Other income 13,255 24,526 -------------- -------------- Total premiums and other revenues 1,698,069 1,643,688 Benefits paid or provided: Death benefits 33,945 33,338 Annuity benefits 85,821 100,014 Surrender benefits 512,112 500,073 Interest on policy or contract funds 7,410 4,897 Other benefits 121 1,469 Life contract withdrawals 4,608 4,625 Change in life, annuity, and accident and health reserves 344,825 410,507 Net transfers to separate accounts (95,353) (100,078) -------------- -------------- Total benefits paid or provided 893,489 954,845 Insurance expenses: Commissions 128,805 118,638 General expenses 41,281 36,435 Insurance taxes, licenses and fees, excluding federal income taxes 1,933 3,201 Other 629,060 598,866 -------------- -------------- Total insurance expenses 801,079 757,140 -------------- -------------- Gain (loss) from operations before policyholder dividends, federal income taxes and net realized capital losses 3,501 (68,298) Dividends to policyholders 9,272 17,618 -------------- -------------- Gain (loss) from operations before federal income taxes and net realized capital losses (5,771) (85,916) Federal income taxes (2,842) 27,581 -------------- -------------- Gain from operations before net realized capital losses (2,929) (113,497) Net realized capital gains or (losses), net of income taxes 2003 - $3,633; 2002 - $(6,927) and excluding net transfers to the interest maintenance reserve 2003- $4,307; 2002- $1,856 (17,564) (19,005) -------------- -------------- Net income (loss) $ (20,493) $ (132,502) ============== ==============
2 Equitable Life Insurance Company of Iowa Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Common stock: Balance at beginning and end of year $ 5,000 $ 5,000 Paid-in and contributed surplus: Balance at beginning of year 1,236,632 721,632 Capital contributions - 195,000 -------------- -------------- Balance at end of year 1,236,632 916,632 Unassigned surplus: Balance at beginning of year (97,422) 329,096 Net income (20,493) (132,502) Change in net unrealized capital gains or losses 54,643 (297,737) Change in nonadmitted assets (12,433) 20,696 Change in asset valuation reserve (7,274) 4,783 Change in net deferred income tax 13,115 (10,971) -------------- -------------- Balance at end of year (69,864) (86,635) Total capital and surplus $ 1,171,768 $ 834,997 ============== ==============
3 Equitable Life Insurance Company of Iowa Statements of Cash Flows - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 1,462,703 $ 1,450,381 Net investment income received 263,891 254,823 Commission and expense allowances received on reinsurance ceded - 393 Benefits paid (729,890) (643,942) Net transfers to separate accounts 98,088 114,056 Insurance expenses paid (778,614) (151,228) Dividends paid to policyholders (15,966) (17,942) Federal income taxes (paid) received 28,915 (57,692) Net other (expenses) revenues 14,300 (573,936) -------------- -------------- Net cash provided by operations 343,427 374,913 Investments Proceeds from sales, maturities, or repayments of investments: Bonds 3,039,822 2,688,381 Stocks - 357 Mortgage loans 132,417 66,595 Real estate 750 491 Other invested assets 828 52,576 Miscellaneous proceeds 66,555 (20,336) Net gains or (losses) on cash and short-term investments (169) - Net tax on capital gains - 6,927 -------------- -------------- Net proceeds from sales, maturities, or repayments of investments 3,240,203 2,794,991 Cost of investments acquired: Bonds 3,535,481 3,147,911 Preferred stocks 246,024 245,192 Mortgage loans 218,253 51,840 Other invested assets 460 804 Miscellaneous applications 73,382 28,163 -------------- -------------- Total cost of investments acquired 4,073,600 3,473,910 Net increase (decrease) in policy loans 2,857 (9,373) -------------- -------------- Net cash used in investment activities (830,540) (669,546) Financing and miscellaneous activities Cash provided (used): Capital and surplus paid-in - 195,000 Borrowed money 58,771 48,416 Net deposits on deposit-type contract funds 430,415 (822) Other sources 119,393 12,406 -------------- -------------- Net cash provided by financing and miscellaneous activities 608,579 255,000 Net change in cash and short-term investments 121,466 (39,633) Cash and short-term investments: Beginning of year 28,002 85,403 -------------- -------------- End of year $ 149,468 $ 45,770 ============== ==============
4 EXHIBIT 99.4 Report of Independent Auditors Board of Directors and Stockholder USG Annuity & Life Company We have audited the accompanying statutory basis balance sheets of USG Annuity & Life Company ("the Company" and a wholly owned subsidiary of ING America Insurance Holdings, Inc.) as of December 31, 2002 and 2001, and the related statutory basis statements of operations, changes in capital and surplus, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Commissioner of Insurance of the State of Oklahoma (Oklahoma Insurance Department), which practices differ from accounting principles generally accepted in the United States. The variances between such practices and accounting principles generally accepted in the United States are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material. In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States, the financial position of USG Annuity & Life Company at December 31, 2002 and 2001 or the results of its operations or its cash flows for the years then ended. 1 However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of USG Annuity & Life Company at December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended, in conformity with accounting practices prescribed or permitted by the Oklahoma Insurance Department. As discussed in Note 3 to the financial statements, in 2001 the Company changed various accounting policies to be in accordance with the revised NAIC Accounting Practices and Procedures Manual, as adopted by the Oklahoma Insurance Department. /s/ Ernst & Young LLP April 25, 2003 2 USG Annuity & Life Company Balance Sheets - Statutory Basis --------------------------------------------------------------------------------
December 31 2002 2001 -------------- -------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 6,116,495 $ 5,285,956 Preferred stocks 1,088 134 Common stocks - 22 Mortgage loans 1,483,855 1,659,518 Real estate, less accumulated depreciation (2002- $304, 2001-$242) 1,477 2,964 Policy loans 32,454 32,732 Other invested assets 47,704 40,847 Cash and short-term investments 9,116 102,848 -------------- -------------- Total cash and invested assets 7,692,189 7,125,021 Deferred and uncollected premiums, less loading (2002- ($58), 2001- $49) 386 1,304 Accrued investment income 77,674 72,706 Reinsurance balances recoverable 335 90 Indebtedness from related parties 25 3,945 Federal income tax recoverable, including a deferred tax asset (2002 - $15,601, 2001 - $6,976) 22,163 6,976 Other assets 2,451 5,484 -------------- -------------- Total admitted assets $ 7,795,223 $ 7,215,526 ============== ==============
3 USG Annuity & Life Company Balance Sheets - Statutory Basis (continued) --------------------------------------------------------------------------------
December 31 2002 2001 -------------- -------------- (In Thousands) except share amounts) Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves $ 6,859,914 $ 6,211,216 Deposit type contracts 246,501 232,745 Policyholders' funds 53 33 Unpaid claims 3,622 3,930 -------------- -------------- Total policy and contract liabilities 7,110,090 6,447,924 Interest maintenance reserve 11,799 4,992 Accounts payable and accrued expenses 27,197 69,739 Indebtedness to related parties 22,147 6,548 Contingency reserve 876 1,907 Asset valuation reserve 50,634 71,621 Borrowed money 184,450 183,094 Other liabilities 1,844 120,244 -------------- -------------- Total liabilities 7,409,037 6,906,069 Capital and surplus: Common stock: authorized - 1,000 shares of $3,000 par value; 833 issued and outstanding 2,500 2,500 Additional paid-in capital 316,963 286,963 Unassigned surplus 66,723 19,994 -------------- -------------- Total capital and surplus 386,186 309,457 -------------- -------------- Total liabilities and capital and surplus $ 7,795,223 $ 7,215,526 ============== ==============
See accompanying notes - statutory basis. 4 USG Annuity & Life Company Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
2002 2001 -------------- -------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 1,285,640 $ 833,347 Policy proceeds and dividends left on deposit 9,267 11,396 Net investment income 536,206 520,614 Amortization of interest maintenance reserve (7,446) 2,383 Commissions, expense allowances and reserve adjustments on reinsurance ceded 14,159 23,933 Other income 1,619 17,445 -------------- -------------- Total premiums and other revenues 1,839,445 1,409,118 Benefits paid or provided: Death benefits 112,299 141,633 Annuity benefits 250,411 274,447 Surrender benefits 582,708 739,979 Interest on policy or contract funds 8,033 11,409 Other benefits: Life contract withdrawals 8,968 6,081 Increase in life, annuity, and accident and health reserves 648,698 25,124 -------------- -------------- Total benefits paid or provided 1,611,117 1,198,673 Insurance expenses: Commissions 86,074 59,252 General expenses 33,272 22,962 Insurance taxes, licenses and fees, excluding federal income taxes (231) (1,827) Other 856 (291) -------------- -------------- Total insurance expenses 119,971 80,096
5 USG Annuity & Life Company Statements of Operations - Statutory Basis (continued) --------------------------------------------------------------------------------
2002 2001 -------------- -------------- (In Thousands) Gain from operations before federal income taxes and net realized capital losses 108,357 130,349 Federal income taxes 41,015 49,747 -------------- -------------- Gain from operations before net realized capital losses 67,342 80,602 Net realized capital losses net of income taxes 2002 - $6,049; 2001 - $ (7,981) and excluding net transfers to the interest maintenance reserve 2002- $638; 2001- $(13,377) (41,467) (51,090) -------------- -------------- Net income $ 25,875 $ 29,512 ============== ==============
See accompanying notes - statutory basis. 6 USG Annuity & Life Company Statements of Changes in Capital and Surplus--Statutory Basis --------------------------------------------------------------------------------
2002 2001 -------------- -------------- (In Thousands) Common stock: Balance at beginning and end of year $ 2,500 $ 2,500 -------------- -------------- Paid-in and contributed surplus: Balance at beginning and end of year 286,963 286,963 Capital contributions 30,000 - -------------- -------------- Balance at end of year 316,963 286,963 Unassigned surplus (deficit): Balance at beginning of year 19,994 (16,701) Net income 25,875 29,512 Change in net unrealized capital losses (7,240) (1,001) Change in non-admitted assets 3,284 (15,515) Change in asset valuation reserve 20,987 18,143 Change in net deferred income tax 3,480 26,376 Change in accounting principle, net of tax - 5,180 Dividends to stockholder - (26,000) Other 343 - -------------- -------------- Balance at end of year 66,723 19,994 -------------- -------------- Total capital and surplus $ 386,186 $ 309,457 ============== ==============
See accompanying notes - statutory basis. 7 USG Annuity & Life Company Statements of Cash Flows--Statutory Basis --------------------------------------------------------------------------------
2002 2001 -------------- -------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 1,295,738 $ 844,992 Net investment income received 647,957 565,770 Commission and expense allowances received on reinsurance ceded 14,159 23,933 Benefits paid (998,100) (1,195,459) Insurance expenses paid (122,791) (70,176) Federal income taxes paid (58,643) (41,271) Net other revenue 89 10,907 -------------- -------------- Net cash provided by operations 778,409 138,696 -------------- -------------- Investments Proceeds from sales, maturities, or repayments of investments: Bonds 8,709,883 5,845,574 Preferred stocks 133 961 Common stocks 224 46,233 Mortgage loans 275,949 170,155 Other invested assets 6,856 7,254 Net loss on cash and short term investment - (75) Net tax on capital gains 4,947 3,874 -------------- -------------- Net proceeds from sales, maturities, or repayments of investments 8,997,992 6,073,976 Cost of investments acquired: Bonds 9,713,052 6,229,459 Preferred stocks 17,047 2,085 Common stocks (15,817) (2,085) Mortgage loans 100,251 93,125 Other invested assets 14,594 19,254 -------------- -------------- Total cost of investments acquired 9,829,127 6,341,838 Net decrease (increase) in policy loans 279 (938) -------------- -------------- Net cash used in investment activities (830,856) (268,800)
8 USG Annuity & Life Company Statements of Cash Flows--Statutory Basis (continued) --------------------------------------------------------------------------------
2002 2001 -------------- -------------- (In Thousands) Financing and miscellaneous activities Cash provided: Capital and surplus paid-in 30,000 - Borrowed money 1,356 135,270 Net deposits on deposit-type contract funds (8) (38,422) Interest paid on indebtedness (254) - Other (uses) sources (72,379) 124,461 Dividends to stockholder - (26,000) -------------- -------------- Net cash (used in) provided by financing and miscellaneous activities (41,285) 195,309 Net (decrease) increase in cash and short-term investments (93,732) 65,205 Cash and short-term investments: Beginning of year 102,848 37,643 -------------- --------------- End of year $ 9,116 $ 102,848 ============== ===============
See accompanying notes - statutory basis. 9 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies USG Annuity & Life Company (the "Company") is domiciled in Oklahoma and is a wholly owned subsidiary of Equitable Life Insurance Company of Iowa ("Equitable"), an Iowa domiciled insurance company. Equitable, in turn, is a wholly owned subsidiary of ING America Insurance Holdings, Inc. ("ING AIH"). The Company offers various insurance products including deferred fixed annuities, immediate annuities, and interest-sensitive life insurance. These products are primarily marketed to individuals by independent insurance broker/dealers, financial institutions, and the career agency force. The Company is licensed in 48 states and the District of Columbia. The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Basis of Presentation The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Commissioner of Insurance of the State of Oklahoma (Oklahoma Insurance Department), which practices differ from accounting principles generally accepted in the United States ("GAAP"). The most significant variances from GAAP are as follows: Investments: Investments in bonds and mandatorily redeemable preferred stocks are reported at amortized cost or market value based on the National Association of Insurance Commissioners ("NAIC") rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized capital gains and losses reported in operations for those designated as trading and as a component of other comprehensive income in stockholder's equity for those designated as available-for-sale. 10 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Investments in real estate are reported net of related obligations rather than on a gross basis. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses include rent for the Company's occupancy of those properties. Changes between depreciated cost and admitted asset investment amounts are credited or charged directly to unassigned surplus rather than income as would be required under GAAP. Derivative instruments that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of shareholders' equity rather than to income as required for fair value hedges. The Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. For structured securities, when a negative yield results from a revaluation based on new prepayment assumptions (i.e., undiscounted cash flows are less than current book value), an other than temporary impairment is considered to have occurred and the asset is written down to the value of the undiscounted cash flows. For GAAP, assets are re-evaluated based on the discounted cash flows using a current market rate. Impairments are recognized when there has been an adverse change in cash flows and the fair value is less than book. The asset is then written down to fair value. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss accounted for as a realized loss. Valuation Reserves: The asset valuation reserve ("AVR") is determined by an NAIC-prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. 11 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed-income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized gains and losses on investments are reported in operations net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pretax basis in the period that the asset giving rise to the gain or loss is sold and valuation allowances are provided when there has been a decline in value deemed other than temporary, in which case the provision for such declines is charged to income. Valuation allowances, if necessary, are established for mortgage loans based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan's effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral. The initial valuation allowance and subsequent changes in the allowance for mortgage loans as a result of a temporary impairment are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP. Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance, to the extent recoverable from future policy revenues, are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, acquisition costs are amortized generally in proportion to the present value of expected gross margins from surrender charges and investment, mortality, and expense margins. Premiums: Life premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting. 12 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Under GAAP, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance policies, are recognized as revenue when due. Group insurance premiums are recognized as premium revenue over the time period to which the premiums relate. Revenues for universal life, annuities and guaranteed interest contracts consist of policy charges for the cost of insurance, policy administration charges, amortization of policy initiation fees and surrender charges assessed during the period. Benefit and Contract Reserves: Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium and Commissioners' Reserve Valuation methods using statutory rates for mortality and interest. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing reasonably conservative estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest-sensitive products, the GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads. Reinsurance: For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Statutory income recognized on certain reinsurance treaties representing financing arrangements is not recognized on a GAAP basis. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as required under GAAP. Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP. Nonadmitted Assets: Certain assets designated as "nonadmitted," principally deferred federal income tax assets, disallowed interest maintenance reserves, non-operating software, past-due agents' balances, furniture and equipment, intangible assets, and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet. 13 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Universal Life and Annuity Policies: Revenues for universal life and annuity policies consist of the entire premium received and benefits incurred represent the total of death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values. Deferred Income Taxes: Deferred tax assets are provided for and admitted to an amount determined under a standard formula. This formula considers the amount of differences that will reverse in the subsequent year, taxes paid in prior years that could be recovered through carrybacks, surplus limits and the amount of deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are non-admitted. Deferred taxes do not include any amounts for state taxes. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets that are expected to be realized in future years and a valuation allowance is established for the portion that is not realizable. Statements of Cash Flows: Cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents include cash balances and investments with initial maturities of three months or less. Reconciliation to GAAP The effects of the preceding variances from GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material. Other significant accounting practices are as follows: Investments Bonds, preferred stocks, common stocks, short-term investments and derivative instruments are stated at values prescribed by the NAIC, as follows: Bonds not backed by other loans are principally stated at amortized cost using the interest method. 14 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except for higher-risk asset backed securities, which are valued using the prospective method. Redeemable preferred stocks rated as high quality or better are reported at cost or amortized cost. All other redeemable preferred stocks are reported at the lower of cost, amortized cost, or market value and nonredeemable preferred stocks are reported at market value or the lower of cost or market value as determined by the Securities Valuation Office of the NAIC ("SVO"). Common stocks are reported at market value as determined by the SVO and the related unrealized capital gains/(losses) are reported in unassigned surplus along with adjustment for federal income taxes. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. In addition, the Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss accounted for as a realized loss. 15 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) The Company uses interest rate swaps, caps and floors, options and certain other derivatives as part of its overall interest rate risk management strategy for certain life insurance and annuity products. As the Company only uses derivatives for hedging purposes, the Company values all derivative instruments on a consistent basis with the hedged item. Upon termination, gains and losses on those instruments are included in the carrying values of the underlying hedged items and are amortized over the remaining lives of the hedged items as adjustments to investment income or benefits from the hedged items. Any unamortized gains or losses are recognized when the underlying hedged items are sold. Interest rate swap contracts are used to convert the interest rate characteristics (fixed or variable) of certain investments to match those of the related insurance liabilities that the investments are supporting. The net interest effect of such swap transactions is reported as an adjustment of interest income from the hedged items as incurred. Interest rate caps and floors are used to limit the effects of changing interest rates on yields of variable rate or short-term assets or liabilities. The initial cost of any such agreement is amortized to net investment income over the life of the agreement. Periodic payments that are receivable as a result of the agreements are accrued as an adjustment of interest income or benefits from the hedged items. Mortgage loans are reported at amortized cost, less allowance for impairments. Policy loans are reported at unpaid principal balances. Land is reported at cost. Real estate occupied by the company is reported at depreciated cost; other real estate is reported at the lower of depreciated cost or fair value. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. For reverse repurchase agreements, Company policies require a minimum of 102% of the fair value of securities purchased under reverse repurchase agreements to be maintained as collateral. Cash collateral received is invested in short-term investments and the offsetting collateral liability is included in miscellaneous liabilities. Reverse dollar repurchase agreements are accounted for as collateral borrowings, where the amount borrowed is equal to the sales price of the underlying securities. 16 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) The Company engages in securities lending whereby certain domestic bonds from its portfolio are loaned to other institutions for short periods of time. Collateral, primarily cash, which is in excess of the market value of the loaned securities, is deposited by the borrower with a lending agent, and retained and invested by the lending agent to generate additional income for the Company. The Company does not have access to the collateral. The Company's policy requires a minimum of 102% of the fair value of securities loaned to be maintained as collateral. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value fluctuates. At December 31, 2002 and 2001, the Company had loaned securities (which are reflected as invested assets on the Balance Sheets) with a market value of approximately $32,662,000 and $62,905,000, respectively. Short-term investments are reported at amortized cost. Short-term investments include investments with maturities of less than one year at the date of acquisition. Other invested assets are reported at amortized cost using the effective interest method. Other invested assets primarily consist of residual collateralized mortgage obligations and partnership interests. Realized capital gains and losses are determined using the specific identification basis. Aggregate Reserve for Life Policies and Contracts Life, annuity, and accident and health reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash value or the amounts required by law. Interest rates range from 4.00% to 8.75%. The Company waives the deduction of deferred fractional premiums upon the death of the insured. It is the Company's practice to return a pro rata portion of any premium paid beyond the policy month of death, although it is not contractually required to do so for certain issues. 17 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Aggregate Reserve for Life Policies and Contracts (continued) The methods used in valuation of substandard policies are as follows: For life, endowment and term policies issued substandard, the standard reserve during the premium-paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts. For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating. For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra. The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance classified as group Section 79. The tabular interest of funds not involving life contingencies is calculated as the current year reserves, plus payments, less prior year reserves, less funds added. Reinsurance Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contract and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. 18 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Nonadmitted Assets Nonadmitted assets are summarized as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Deferred federal income taxes $ 54,496 $ 55,833 Agents' debit balances 519 255 Deferred and uncollected premium 119 120 Other 885 3,095 -------------- -------------- Total nonadmitted assets $ 56,019 $ 59,303 ============== ==============
Changes in nonadmitted assets are generally reported directly in surplus as an increase or decrease in nonadmitted assets. Certain changes are reported directly in surplus as a change in unrealized capital gains or losses. Claims and Claims Adjustment Expenses Claims expenses represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2002. The Company does not discount claims and claims adjustment expense reserves. Such estimates are based on actuarial projections applied to historical claims payment data. Such liabilities are considered to be reasonable and adequate to discharge the Company's obligations for claims incurred but unpaid as of December 31, 2002. Cash Flow Information Cash and short-term investments include cash on hand, demand deposits and short-term fixed maturity instruments (with a maturity of less than one year at date of acquisition). The Company borrowed $1,021,035,000 and repaid $1,021,035,000 in 2002 and borrowed $880,600,000 and repaid $928,400,000 during 2001. These borrowings were on a short-term basis, at an interest rate that approximated current money market rates and exclude borrowings from reverse dollar repurchase transactions. Interest paid on borrowed money was $109,000 and $645,000 during 2002 and 2001, respectively. Reclassifications Certain prior year amounts in the Company's statutory basis financial statements have been reclassified to conform to the 2002 financial statement presentation. 19 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 2. Permitted Statutory Basis Accounting Practices The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the Oklahoma Insurance Department. The Oklahoma Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of Oklahoma for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the Oklahoma Insurance Laws. NAIC Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the state of Oklahoma. The Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices. The Company is required to identify those significant accounting practices that are permitted, and obtain written approval of the practices from the Oklahoma Insurance Department. As of December 31, 2002 and 2001, the Company had no such permitted accounting practices. 3. Accounting Changes The Company prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Oklahoma. Effective January 1, 2001, the State of Oklahoma required that insurance companies domiciled in the State of Oklahoma prepare their statutory basis financial statements in accordance with the NAIC Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the State of Oklahoma insurance commissioner. Accounting changes adopted to conform to the provisions of the NAIC Accounting Practices and Procedures Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods. As a result of these changes, the Company reported a change of accounting principle, as an adjustment that increased unassigned surplus, by $5,180,000 as of January 1, 2001. These changes are primarily attributed to an increase in unassigned surplus of approximately $5,911,000 related to deferred tax assets, $15,384,000 related to prepayment penalties on bonds and mortgage loans released from the IMR liability. Offsetting this increase is a reduction of approximately $15,988,000 to guaranty fund assessment and $127,000 to cost of collection of premiums. 20 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments The amortized cost and fair value of bonds and equity securities are as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value ----------- ----------- ----------- ----------- (In Thousands) At December 31, 2002: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 285,347 $ 4,998 $ 36 $ 290,309 States, municipalities, and political subdivisions - - - - Foreign government 120,649 4,200 2,385 122,464 Public utilities securities 270,390 14,526 4,008 280,908 Corporate securities 3,244,826 182,420 34,973 3,392,273 Mortgage-backed securities 1,668,901 90,300 46,006 1,713,195 Other structured securities 320,274 9,786 28,080 301,980 Commercial mortgage-backed securities 217,028 18,254 76 235,206 ----------- ----------- ----------- ----------- Total fixed maturities 6,127,415 324,484 115,564 6,336,335 Preferred stocks 1,088 - - 1,088 ----------- ----------- ----------- ----------- Total equity securities 1,088 - - 1,088 ----------- ----------- ----------- ----------- Total $6,128,503 $ 324,484 $ 115,564 $6,337,423 =========== =========== =========== =========== At December 31, 2001: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 38,620 $ 244 $ 82 $ 38,782 Public utilities securities 136,285 3,665 4,478 135,472 Corporate securities 2,785,911 97,406 68,734 2,814,583 Mortgage-backed securities 1,700,989 163,964 118,566 1,746,387 Other structured securities 463,485 12,125 27,898 447,712 Commercial mortgage-backed securities 161,939 6,507 1,499 166,947 ----------- ----------- ----------- ----------- Total fixed maturities 5,287,229 283,911 221,257 5,349,883 Preferred stocks 134 - - 134 Common stocks 22 - - 22 ----------- ----------- ----------- ----------- Total equity securities 156 - - 156 ----------- ----------- ----------- ----------- Total $5,287,385 $ 283,911 $ 221,257 $5,350,039 =========== =========== =========== ===========
21 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) The amortized cost and fair value of investments in bonds at December 31, 2002, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized Fair Cost Value -------------- -------------- December 31, 2002 (In Thousands) Maturity: Due in 1 year or less $ 44,173 $ 45,096 Due after 1 year through 5 years 1,118,169 1,177,925 Due after 5 years through 10 years 1,886,593 1,962,788 Due after 10 years 872,277 900,145 -------------- -------------- Total Maturity 3,921,212 4,085,954 Mortgage-backed securities 1,668,901 1,713,195 Other structured securities 320,274 301,980 Commercial mortgage-backed securities 217,028 235,206 -------------- -------------- Total $ 6,127,415 $ 6,336,335 ============== ==============
At December 31, 2002, investments in certificates of deposit and bonds, with an admitted asset value of $3,285,000, were on deposit with state insurance departments to satisfy regulatory requirements. Reconciliation of bonds from amortized cost to carrying value as of December 31, 2002 and 2001 is as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Amortized cost $ 6,127,415 $ 5,287,229 Less nonadmitted bonds 10,920 1,273 -------------- -------------- Carrying value $ 6,116,495 $ 5,285,956 ============== ==============
Proceeds from the sales of investments in bonds and other fixed maturity interest securities were $4,334,623,000 and $1,852,588,000 in 2002 and 2001, respectively. Gross gains of $109,772,000 and $49,178,000 and gross losses of $97,962,000 and $34,222,000 during 2002 and 2001, respectively, were realized on those sales. A portion of the gains realized in 2002 and 2001 has been deferred to future periods in the interest maintenance reserve. 22 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) Major categories of net investment income are summarized as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Income: Bonds $ 459,813 $ 415,872 Mortgage loans 128,230 137,032 Policy loans 1,091 1,199 Company-occupied property 376 204 Other (26,548) (4,625) -------------- -------------- Total investment income 562,962 549,682 Investment expenses 26,756 29,068 -------------- -------------- Net investment income $ 536,206 $ 520,614 ============== ==============
As part of its overall investment strategy, the Company has entered into agreements to purchase securities as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Investment purchase commitments $ 87,963 $ 55,776 ============== ==============
The Company entered into reverse dollar repurchase transactions to increase its return on investments and improve liquidity. Reverse dollar repurchases involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. The reverse dollar repurchases are accounted for as short term collateralized financing and the repurchase obligation is reported in borrowed money. The repurchase obligation totaled $173,189,000 and $177,558,000 at December 31, 2002 and 2001, respectively. The securities underlying these agreements are mortgage-backed securities with a book value and fair value of $173,245,000 at December 31, 2002. The securities have a weighted average coupon of 5.99% and have maturities ranging from December 2017 through December 2032. The primary risk associated with short-term collateralized borrowings is that the counterparty may be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, which was not material at December 31, 2002. The Company believes the counterparties to the reverse dollar repurchase agreements are financially responsible and that the counterparty risk is minimal. 23 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 4. Investments (continued) The Company participates in reverse repurchase transactions. Such transactions include the sale of corporate securities to a major securities dealer and a simultaneous agreement to repurchase the same security in the near term. The proceeds are invested in new securities of intermediate durations. The terms of the reverse repurchase agreements call for payment of interest at a rate of 1.4%. The agreements mature prior to the end of January 2003. The amount due on these agreements included in borrowed money is $11,000,000. The securities underlying these agreements are mortgage-backed securities with a book value and fair value of $12,687,000. The securities have a weighted average coupon of 6.5% and have a maturity of August 2032. The maximum and minimum lending rates for long-term mortgage loans during 2002 were 7.66% and 2.99%. Fire insurance is required on all properties covered by mortgage loans and must at least equal the excess of the loan over the maximum loan which would be permitted by law on the land without the buildings. The maximum percentage of any loan to the value of collateral at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages, was 66.7% on commercial properties. As of December 31, 2002, the Company held no mortgages with interest more than 180 days overdue. Total interest due, as of December 31, 2002 is $0. 5. Derivative Financial Instruments Held for Purposes Other than Trading The Company enters into interest rate and currency contracts, including swaps, caps, floors, and options, to reduce and manage risks, which include the risk of a change in the value, yield, price, cash flows, exchange rates or quantity of, or a degree of exposure with respect to, assets, liabilities, or future cash flows, which the Company has acquired or incurred. Hedge accounting practices are supported by cash flow matching, scenario testing and duration matching. The Company uses interest rate swaps to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities. Interest rate swap agreements generally involve the exchange of fixed and floating interest payments over the life of the agreement without an exchange of the underlying principal amount. Currency swap agreements generally involve the exchange of local and foreign currency payments over the life of the agreements without an exchange of the underlying principal amount. Interest rate cap and interest rate floor agreements owned entitle the Company to receive payments to the extent reference interest rates exceed or fall below strike levels in the contracts based on the notional amounts. 24 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 5. Derivative Financial Instruments Held for Purposes Other than Trading (continued) Premiums paid for the purchase of interest rate contracts are included in other invested assets and are being amortized to interest expense over the remaining terms of the contracts or in a manner consistent with the financial instruments being hedged. Amounts paid or received, if any, from such contracts are included in interest expense or income. Accrued amounts payable to or receivable from counterparties are included in other liabilities or other invested assets. Gains or losses realized as a result of early terminations of interest rate contracts are amortized to investment income over the remaining term of the items being hedged to the extent the hedge is considered to be effective; otherwise, they are recognized upon termination. Interest rate contracts that are matched or otherwise designated to be associated with other financial instruments are recorded at fair value if the related financial instruments mature, are sold, or are otherwise terminated or if the interest rate contracts cease to be effective hedges. Changes in the fair value of derivatives are recorded as investment income. The Company manages the potential credit exposure from interest rate contracts through careful evaluation of the counterparties' credit standing, collateral agreements, and master netting agreements. The Company is exposed to credit loss in the event of nonperformance by counterparties on interest rate contracts; however, the Company does not anticipate nonperformance by any of these counterparties. The amount of such exposure is generally the unrealized gains in such contracts. 25 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 5. Derivative Financial Instruments Held for Purposes Other than Trading (continued) The table below summarizes the Company's interest rate contracts included in other invested assets at December 31, 2002 and 2001:
Notional Amount Carrying Value Fair Value --------------- --------------- --------------- (In Thousands) December 31, 2002 Interest rate contracts Swaps $ 1,146,498 $ - $ (138,473) Caps and floors 548,465 3,393 1,296 --------------- --------------- --------------- Total derivatives $ 1,694,963 $ 3,393 $ (137,177) =============== =============== =============== Notional Amount Carrying Value Fair Value --------------- --------------- --------------- (In Thousands) December 31, 2001 Interest rate contracts: Swaps $ 921,000 $ 936 $ (56,090) Caps and floors 298,465 547 2,302 --------------- --------------- --------------- Total derivatives $ 1,219,465 $ 1,483 $ (53,788) =============== =============== ===============
6. Concentrations of Credit Risk The Company held less-than-investment-grade bonds with an aggregate book value of $435,061,000 and $520,834,000 and with an aggregate market value of $413,437,000 and $477,494,000 at December 31, 2002 and 2001, respectively. Those holdings amounted to 7.1% of the Company's investments in bonds and 5.6% of total admitted assets at December 31, 2002. The holdings of less-than-investment-grade bonds are widely diversified and of satisfactory quality based on the Company's investment policies and credit standards. The Company held unrated bonds of $204,268,000 and $357,815,000 with an aggregate NAIC market value of $208,297,000 and $356,506,000 at December 31, 2002 and 2001, respectively. The carrying value of these holdings amounted to 3.3% of the Company's investment in bonds and 2.6% of the Company's total admitted assets at December 31, 2002. At December 31, 2002, the Company's commercial mortgages involved a concentration of properties located in California (11.6%) and Pennsylvania (9.9%). The remaining commercial mortgages relate to properties located in 37 other states. The portfolio is well diversified; covering many different types of income-producing properties on which the Company has first mortgage liens. The maximum mortgage outstanding on any individual property is $23,935,000. 26 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 7. Annuity Reserves At December 31, 2002 and 2001, the Company's annuity reserves, including those held in separate accounts and deposit fund liabilities that are subject to discretionary withdrawal with adjustment, subject to discretionary withdrawal without adjustment, and not subject to discretionary withdrawal provisions are summarized as follows:
December 31, 2002 Amount Percent -------------- -------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 4,447,295 56% At book value less surrender charge 1,635,038 21 -------------- -------------- Subtotal 6,082,333 77 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 1,194,281 15 Not subject to discretionary withdrawal 641,496 8 -------------- -------------- Total annuity reserves and deposit fund liabilities before reinsurance 7,918,110 100% ============== Less reinsurance ceded 895,734 -------------- Net annuity reserves and deposit fund liabilities $ 7,022,376 ==============
December 31, 2001 Amount Percent -------------- -------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 3,927,063 55% At book value less surrender charge 1,568,029 22 -------------- -------------- Subtotal 5,495,092 77 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 1,030,501 15 Not subject to discretionary withdrawal 588,714 8 -------------- -------------- Total annuity reserves and deposit fund liabilities before reinsurance 7,114,307 100% ============== Less reinsurance ceded 744,333 -------------- Net annuity reserves and deposit fund liabilities $ 6,369,974 ==============
27 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 8. Reinsurance The Company is involved in both ceded and assumed reinsurance with other companies for the purpose of diversifying risk and limiting exposure on larger risks. As of December 31, 2002, the Company's retention limit for acceptance of risk on life insurance policies had been set at various levels up to $500,000. To the extent that the assuming companies become unable to meet their obligations under these treaties, the Company remains contingently liable to its policyholders for the portion reinsured. To minimize its exposure to significant losses from retrocessionaire insolvencies, the Company evaluates the financial condition of the retrocessionaire and monitors concentrations of credit risk. Assumed premiums amounted to $136,400,000 and $147,163,000 for the years ended December 31, 2002 and 2001, respectively. The Company's ceded reinsurance arrangements reduced certain items in the accompanying financial statements by the following amounts:
December 31 2002 2001 -------------- -------------- (In Thousands) Premiums $ 260,544 $ 234,110 Benefits paid or provided 9,447 6,950 Policy and contract liabilities at year end $ 896,762 $ 775,452
9. Federal Income Taxes The Company joins in filing a consolidated federal income tax return with its parent, Equitable, and other affiliates. The method of tax allocation is governed by a written tax sharing agreement. The tax sharing agreement provides that each member of the consolidated return shall reimburse Equitable for its respective share of the consolidated federal income tax liability and shall receive a benefit for its losses at the statutory rate. Significant components of income taxes incurred as of December 31 are:
December 31 2002 2001 -------------- -------------- (In Thousands) Current income taxes incurred consist of the following major components: Federal taxes on operations $ 41,015 $ 49,747 Federal taxes on capital gains (6,049) 7,981 -------------- -------------- Total current taxes incurred $ 34,966 $ 57,728 ============== ==============
28 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 9. Federal Income Taxes (continued) The components of the net deferred tax asset/(liability) at December 31 are as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Total gross deferred tax assets $ 70,328 $ 63,290 Total deferred tax liabilities (231) (481) -------------- -------------- Net deferred tax asset 70,097 62,809 Deferred tax asset non-admitted (54,496) (55,833) -------------- -------------- Net admitted deferred tax asset 15,601 6,976 ============== ============== Decrease (increase) in non-admitted asset $ 1,337 $ (25,312) ============== ==============
The main components of deferred tax assets and deferred tax liabilities are as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Deferred tax assets resulting from book/tax differences in: Investments $ 32,290 $ 17,875 Deferred acquisition costs 23,431 26,735 Guaranty assessments 4,339 5,596 Insurance reserves 8,423 8,957 Unrealized loss on investments 499 3,309 Other 1,346 818 -------------- -------------- Total deferred tax assets 70,328 63,290 Deferred tax assets non-admitted (54,496) (55,833) -------------- -------------- Admitted deferred tax assets 15,832 7,457 Deferred tax liabilities resulting from book/tax differences in: Due and deferred premiums 231 481 -------------- -------------- Total deferred tax liabilities 231 481 -------------- -------------- Net admitted deferred tax asset $ 15,601 $ 6,976 ============== ==============
29 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 9. Federal Income Taxes (continued) The change in net deferred income taxes in comprised of the following:
December 31 2002 2001 Change -------------- -------------- -------------- (In Thousands) Total deferred tax assets $ 70,328 $ 63,290 $ 7,038 Total deferred tax liabilities 231 481 (250) -------------- -------------- -------------- Net deferred tax asset $ 70,097 $ 62,809 7,288 ============== ============== Tax effect of items in surplus: Unrealized gains (losses) 2,278 -------------- Change in net deferred income tax $ 9,566 ==============
The provision for federal income taxes expense and change in deferred taxes differs from the amount obtained applying the statutory federal income tax rate to income (including capital losses) before income taxes for the following reasons:
Year ended December 31, 2002 -------------- (In Thousands) Ordinary income $ 108,357 Capital losses (48,154) -------------- Total pre-tax book income $ 60,203 ============== Provision computed at statutory rate $ 21,071 Audit settlement not provided for 5,185 Interest maintenance reserve 2,606 Nondeductible general expenses 22 Refinement of deferred tax balances (3,488) Other 4 --------------- Total $ 25,400 =============== Federal income taxes incurred $ 34,966 Change in net deferred income taxes (9,566) --------------- Total statutory income taxes $ 25,400 ===============
The amount of federal income taxes incurred that will be available for recoupment in the event of future net losses is $0 and $6,791,473 from 2002 and 2001, respectively. The Company has a recoverable of $6,561,673 at December 31, 2002 and had a payable of $17,114,498 at December 31, 2001 for federal income taxes under the intercompany tax sharing agreement. 30 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 10. Capital and Surplus Under Oklahoma insurance regulations, the Company is required to maintain a minimum total capital and surplus of $750,000. Additionally, the amount of dividends which can be paid by the Company to its stockholder without prior approval of the Oklahoma Insurance Department is limited to the greater of 10% of statutory surplus or the statutory net gain from operations. 11. Fair Values of Financial Instruments Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. The carrying amounts and fair values of the Company's financial instruments are summarized as follows:
December 31, 2002 December 31, 2001 -------------------------------------------------- Carrying Fair Carrying Fair Amount Value Amount Value ----------- ----------- ----------- ----------- (In Thousands) Assets: Bonds $6,116,495 $6,336,335 $5,285,956 $5,349,883 Preferred stocks 1,088 1,088 134 134 Unaffiliated common stocks - - 22 22 Mortgage loans 1,483,855 1,632,720 1,659,518 1,738,458 Policy loans 32,454 32,454 32,732 32,732 Derivative securities 3,393 (137,177) 1,483 (53,788) Short-term investments 5,650 5,650 84,678 84,678 Cash 3,466 3,466 18,170 18,170 Indebtedness from related parties 25 25 3,945 3,945 Receivable for securities 2,873 2,873 4,268 4,268 Liabilities: Individual and group annuities 6,775,875 6,621,753 6,339,976 6,218,709 Deposit type contract 246,501 258,945 232,745 247,377 Indebtedness to related parties 22,147 22,147 6,548 6,548 Payable for securities - - 101,206 101,206
The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: 31 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 11. Fair Values of Financial Instruments (continued) Cash and short-term investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Fixed maturities and equity securities: The fair values for bonds, preferred stocks and common stocks, reported herein, are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placements, collateralized mortgage obligations and other mortgage derivative investments, are estimated by discounting the expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality, and maturity, which fall within a range between 0% and 15% over the total portfolio. Fair values determined on this basis can differ from values published by the NAIC Securities Valuation Office. Market value as determined by the NAIC as of December 31, 2002 and 2001 is $6,154,770,000 and $5,317,444,000, respectively. Mortgage loans: Estimated market values for commercial real estate loans were generated using a discounted cash flow approach. Loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on new loans with similar characteristics. The amortizing features of all loans are incorporated in the valuation. Where data on option features is available, option values are determined using a binomial valuation method, and are incorporated into the mortgage valuation. Restructured loans are valued in the same manner; however, these loans were discounted at a greater spread to reflect increased risk. All residential loans are valued at their outstanding principal balances, which approximate their fair values. Derivative financial instruments: Fair values for on-balance-sheet derivative financial instruments (caps, options and floors) and off-balance-sheet derivative financial instruments (swaps) are based on broker/dealer valuations or on internal discounted cash flow pricing models taking into account current cash flow assumptions and the counterparties' credit standing. Other investment-type insurance contracts: The fair values of the Company's deferred annuity contracts are estimated based on the cash surrender values. The carrying values of other policyholder liabilities, including immediate annuities, dividend accumulations, supplementary contracts without life contingencies, and premium deposits, approximate their fair values. The carrying value of all other financial instruments approximates their fair value. 32 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 12. Commitments and Contingencies The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of pending lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. The Company has committed to provide additional capital contributions of $42,012,000 in partnership investments at December 31, 2002. 13. Financing Agreements The Company maintains a revolving loan agreement with SunTrust Bank, Atlanta (the "Bank"). Under this agreement, which expires July 31, 2003, the Company can borrow up to $75,000,000 from the Bank. Interest on any borrowing accrues at an annual rate equal to: the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $20,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. The Company also maintains a revolving loan agreement with Bank of New York, New York (the "Bank"). Under this agreement, the Company can borrow up to $100,000,000 from the Bank. Interest on any of the Company borrowing accrues at an annual rate equal to: the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $31,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. 33 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 14. Related Party Transactions Affiliates Management and service contracts and all cost sharing arrangements with other affiliated ING US life insurance companies are allocated among companies in accordance with normal, generally accepted expense and cost allocation methods. Investment Management: The Company has entered into an investment advisory agreement and an administrative services agreement with ING Investment Management, LLC ("IIM") under which IIM provides the Company with investment management and asset liability management services. Total fees under the agreement were approximately $19,698,000 and $17,852,000 for the year ended December 31, 2002 and 2001, respectively. Inter-insurer Services Agreement: The Company has entered into a services agreement with certain of its affiliated insurance companies in the United States ("affiliated insurers") whereby the affiliated insurers provide certain administrative, management, professional, advisory, consulting and other services to each other. Net amounts received under these agreements were $31,437,000 and $19,154,000 for the year ended December 31, 2002 and 2001, respectively. Tax Sharing Agreements: The Company has entered into federal tax sharing agreements with members of an affiliated group as defined in Section 1504 of the Internal Revenue Code of 1986, as amended. The agreement provides for the manner of calculation and the amounts/timing of the payments between the parties as well as other related matters in connection with the filing of consolidated federal income tax returns. The Company has also entered into a state tax sharing agreement with ING AIH and each of the specific subsidiaries that are parties to the agreement. The state tax agreement applies to situations in which ING AIH and all or some of the subsidiaries join in the filing of a state or local franchise, income tax or other tax return on a consolidated, combined or unitary basis. 34 USG Annuity & Life Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 15. Guaranty Fund Assessments Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premiums companies collect in that state. The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and the amount of premiums written in each state. The Company reduces the accrual by credits allowed in some states to reduce future premium taxes by a portion of assessments in that state. The Company has estimated this liability to be $12,397,000 and 15,988,000 as of December 31, 2002 and 2001, respectively and has recorded a reserve. The Company has also recorded an asset of $2,451,000 and $5,447,000 as of December 31, 2002 and 2001, respectively, for future credits to premium taxes for assessments already paid. 16. Regulatory Risk-Based Capital Life and health insurance companies are subject to certain Risk-Based Capital ("RBC") requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2002, USG Annuity & Life Company meets the RBC requirements. 35 EXHIBIT 99.5 USG Annuity & Life Company Balance Sheet - Statutory Basis --------------------------------------------------------------------------------
September 30, 2003 (In Thousands) -------------- Admitted assets Cash and invested assets: Bonds $ 6,118,513 Preferred stocks 1,273 Mortgage loans 1,494,360 Real estate 3,743 Policy loans 31,921 Other invested assets 102,237 Cash and short-term investments 38,475 ------------- Total cash and invested assets 7,790,522 Deferred and uncollected premiums 360 Accrued investment income 77,796 Reinsurance balances recoverable 597 Indebtedness from related parties 384 Federal income tax recoverable 39,903 Other assets 1,576 ------------- Total admitted assets $ 7,911,138 ============= Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves 6,863,230 Deposit type contracts 230,684 Policyholders' funds 43 Unpaid claims 957 ------------- Total policy and contract liabilities 7,094,914 Accounts payable and accrued expenses 41,931 Indebtedness to related parties 21,035 Interest maintenance reserve 33,230 Contingency reserve 75 Asset valuation reserve 53,269 Borrowed money 230,447 Payable for securities 83,330 ------------- Total liabilities 7,558,231 Capital and surplus: Common stock 2,500 Additional paid-in capital 316,963 Unassigned surplus 33,444 ------------- Total capital and surplus 352,907 ------------- Total liabilities and capital and surplus $ 7,911,138 =============
1 USG Annuity & Life Company Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 279,075 $ 1,151,696 Policy proceeds and dividends left on deposit 5,877 6,694 Net investment income 346,810 411,994 Amortization of interest maintenance reserve (3,298) (6,073) Commissions, expense allowances and reserve adjustments on reinsurance ceded 16,395 10,725 Other income 203 9,108 -------------- -------------- Total premiums and other revenues 645,062 1,584,144 Benefits paid or provided: Death benefits 3,933 110,810 Annuity benefits 191,961 194,775 Surrender benefits 389,140 435,457 Interest on policy or contract funds 4,541 5,111 Other benefits 3 8 Life contract withdrawals 5,200 4,698 Change in life, annuity, and accident and health reserves 3,316 653,995 -------------- -------------- Total benefits paid or provided 598,094 1,404,854 Insurance expenses: Commissions 50,487 71,220 General expenses 24,408 23,635 Insurance taxes, licenses and fees, excluding federal income taxes 1,782 767 Other (36) 933 -------------- -------------- Total insurance expenses 76,641 96,555 -------------- -------------- Gain (loss) from operations before federal income taxes and net realized capital losses (29,673) 82,735 Federal income taxes (21,514) 35,765 -------------- -------------- Gain from operations before net realized capital losses (8,159) 46,970 Net realized capital gains or (losses), net of income taxes 2003 - $14,234; 2002 - $0 and excluding net transfers to the interest maintenance reserve 2003 - $(9,764); 2002 - $0 (29,176) (29,856) -------------- -------------- Net income (loss) $ (37,335) $ 17,114 ============== ==============
2 USG Annuity & Life Company Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Common stock: Balance at beginning and end of year $ 2,500 $ 2,500 Paid-in and contributed surplus: Balance at beginning and end of year 316,963 286,963 Unassigned surplus: Balance at beginning of year 66,723 19,994 Net income (37,335) 17,114 Change in net unrealized capital gains or losses 3,085 (8,420) Change in nonadmitted assets 3,844 (7,012) Change in asset valuation reserve (2,635) 13,348 Change in net deferred income tax (238) 8,456 Other adjustments - 344 -------------- -------------- Balance at end of year 33,444 43,824 Total capital and surplus $ 352,907 $ 333,287 ============== ==============
3 USG Annuity & Life Company Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 279,055 $ 1,158,497 Net investment income received 453,000 470,113 Commission and expense allowances received on reinsurance ceded (76,234) 10,725 Benefits paid (597,706) (766,933) Insurance expenses paid - (87,379) Federal income taxes (paid) received (7,368) (41,719) Net other (expenses) revenues 23,350 7,774 -------------- -------------- Net cash provided by operations 74,097 751,078 Investments Proceeds from sales, maturities, or repayments of investments: Bonds 6,410,635 6,569,984 Stocks - 357 Mortgage loans 239,479 180,517 Other invested assets 2,643 6,190 Miscellaneous proceeds 86,405 - Net tax on capital gains - 2,375 -------------- -------------- Net proceeds from sales, maturities, or repayments of investments 6,739,162 6,759,423 Cost of investments acquired: Bonds 6,509,956 7,668,436 Preferred stocks 185 142 Mortgage loans 249,957 23,347 Real estate 2,708 - Other invested assets 5,599 11,911 Miscellaneous applications 56,243 - -------------- -------------- Total cost of investments acquired 6,824,648 7,703,836 Net increase (decrease) in policy loans (1,309) 441 -------------- -------------- Net cash used in investment activities 86,876 (944,854) Financing and miscellaneous activities Cash provided (used): Borrowed money 45,998 147,060 Net deposits on deposit-type contract funds (15,814) (28,233) Other sources 11,954 (11,699) -------------- -------------- Net cash provided by financing and miscellaneous activities 42,138 107,128 Net change in cash and short-term investments 29,359 (86,648) Cash and short-term investments: Beginning of year 9,116 102,848 -------------- -------------- End of year $ 38,475 $ 16,200 ============== ==============
4 EXHIBIT 99.6 Report of Independent Auditors Board of Directors and Stockholder United Life & Annuity Insurance Company We have audited the accompanying statutory basis balance sheets of United Life & Annuity Insurance Company ("the Company" and a wholly owned subsidiary of ING America Insurance Holdings, Inc.) as of December 31, 2002 and 2001, and the related statutory basis statements of operations, changes in capital and surplus, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Insurance Department of the State of Iowa (Iowa Insurance Department), which practices differ from accounting principles generally accepted in the United States. The variances between such practices and accounting principles generally accepted in the United States are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material. In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States, the financial position of United Life & Annuity Insurance Company at December 31, 2002 and 2001 or the results of its operations or its cash flows for the years then ended. 1 However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United Life & Annuity Insurance Company at December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended, in conformity with accounting practices prescribed or permitted by the Iowa Insurance Department. As discussed in Note 3 to the financial statements, in 2001 the Company changed various accounting policies to be in accordance with the revised NAIC Accounting Practices and Procedures Manual, as adopted by the Iowa Insurance Department. /s/ Ernst & Young LLP April 25, 2003 2 United Life & Annuity Insurance Company Balance Sheets - Statutory Basis --------------------------------------------------------------------------------
December 31 2002 2001 -------------- -------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 608,870 $ 673,753 Common stocks 10 145 Subsidiary 25 25 Mortgage loans 34,829 31,004 Real estate, properties held for sale - 37 Policy loans 933 1,028 Other invested assets 13,908 8,323 Cash and short-term investments 14,741 18,299 -------------- -------------- Total cash and invested assets 673,316 732,614 Deferred and uncollected premiums (30) - Accrued investment income 8,523 10,002 Reinsurance balances recoverable 112 - Indebtedness from related parties - 19 Federal income tax recoverable, including a deferred tax asset of $5,385 6,791 4,761 Separate account assets 64,410 103,520 Other assets 375 117 -------------- -------------- Total admitted assets $ 753,497 $ 851,033 ============== ==============
3 United Life & Annuity Insurance Company Balance Sheets - Statutory Basis (continued) --------------------------------------------------------------------------------
December 31 2002 2001 -------------- -------------- (In Thousands) except share amounts) Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves $ 586,755 $ 655,796 Deposit type contracts 14,926 16,982 Unpaid claims 25 - -------------- -------------- Total policy and contract liabilities 601,706 672,778 Interest maintenance reserve 188 - Accounts payable and accrued expenses 1,485 2,369 Indebtedness to related parties 1,634 926 Asset valuation reserve 5,743 8,652 Other liabilities (2,875) (3,851) Separate account liabilities 64,410 103,520 -------------- -------------- Total liabilities 672,291 784,394 Capital and surplus: Common stock: authorized - 4,200,528 shares of $2.00 par value, 4,200,528 issued and outstanding 8,401 8,401 Additional paid-in capital 41,241 41,241 Unassigned surplus 31,564 16,997 -------------- -------------- Total capital and surplus 81,206 66,639 -------------- -------------- Total liabilities and capital and surplus $ 753,497 $ 851,033 ============== ==============
See accompanying notes - statutory basis. 4 United Life & Annuity Insurance Company Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 -------------- -------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 1,228 $ 2,205 Policy proceeds and dividends left on deposit 205 217 Net investment income 44,256 55,342 Amortization of interest maintenance reserve 1,656 922 Commissions, expense allowances and reserve adjustments on reinsurance ceded 502 643 Other income 1,598 4,052 -------------- -------------- Total premiums and other revenues $ 49,445 $ 63,381 --------------- -------------- Benefits paid or provided: Annuity benefits 20,309 25,765 Surrender benefits 100,443 150,071 Interest on policy or contract funds 598 (2,997) Other benefits 25 - Life contract withdrawals 1,170 596 Decrease in life, annuity, and accident and health reserves (69,041) (112,483) Net transfers from separate accounts (17,382) (18,868) -------------- -------------- Total benefits paid or provided 36,122 42,084 Insurance expenses: Commissions 611 695 General expenses 1,877 3,649 Insurance taxes, licenses and fees, excluding federal income taxes (536) 231 Other 4 655 -------------- -------------- Total insurance expenses 1,956 5,230 -------------- -------------- 38,078 47,314 -------------- --------------
5 United Life & Annuity Insurance Company Statements of Operations - Statutory Basis (continued) --------------------------------------------------------------------------------
Year ended December 31 2002 2001 -------------- -------------- (In Thousands) Gain from operations before federal income taxes and net realized capital (losses) gains $ 11,367 $ 16,067 Federal income taxes (5,786) 3,039 -------------- -------------- Gain from operations before net realized capital (losses) gains 17,153 13,028 Net realized capital (losses) gains net of income taxes 2002 - ($3,926), 2001 - $0 and excluding net transfers to the interest maintenance reserve 2002- ($2,310); 2001- ($5,545) (5,602) 333 -------------- -------------- Net income $ 11,551 $ 13,361 ============== ==============
See accompanying notes - statutory basis. 6 United Life & Annuity Insurance Company Statements of Changes in Capital and Surplus-Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 -------------- -------------- (In Thousands) Common stock: Balance at beginning and end of year $ 8,401 $ 8,401 -------------- -------------- Additional paid-in capital: Balance at beginning and end of year 41,241 41,241 -------------- -------------- Unassigned surplus: Balance at beginning of year 16,997 (226) Net income 11,551 13,361 Change in net unrealized capital gains or losses (1,396) 1,927 Change in nonadmitted assets (5,406) 7,268 Change in asset valuation reserve 2,909 (1,277) Change in net deferred income tax 7,388 (505) Change in accounting principle, net of tax - 1,528 Other adjustments (479) (5,079) -------------- -------------- Balance at end of year 31,564 16,997 -------------- -------------- Total capital and surplus $ 81,206 $ 66,639 ============== ==============
See accompanying notes - statutory basis. 7 United Life & Annuity Insurance Company Statements of Cash Flows - Statutory Basis --------------------------------------------------------------------------------
Year ended December 31 2002 2001 -------------- -------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 1,424 $ 715 Net investment income received 47,009 55,810 Commission and expense allowances received on reinsurance ceded 27 643 Benefits paid (125,136) (173,108) Net transfers from separate accounts 19,650 21,767 Insurance expenses paid (2,613) (4,891) Federal income taxes received (paid) 1,697 (6,898) Other revenues in excess of expenses 1,252 1,593 -------------- -------------- Net cash used in operations (56,690) (104,369) Investments Proceeds from sales, maturities, or repayments of investments: Bonds 697,696 509,231 Common stocks - 121 Mortgage loans 3,117 10,319 Real estate 53 - Other invested assets 82 139 Net losses on cash & short term investments (262) (150) Miscellaneous proceeds 607 (296) -------------- -------------- Net proceeds from sales, maturities, or repayment of investments 701,293 519,364 Cost of investments acquired: Bonds 632,726 407,492 Mortgage loans 7,078 13,140 Real estate - 280 Other invested assets 229 528 Miscellaneous applications 9,273 - -------------- -------------- Total cost of investments acquired 649,306 421,440 Net decrease in policy loans 95 734 -------------- -------------- Net cash provided by investment activities $ 52,082 $ 98,658
8 United Life & Annuity Insurance Company Statements of Cash Flows - Statutory Basis (continued) --------------------------------------------------------------------------------
Year ended December 31 2002 2001 -------------- -------------- (In Thousands) Financing and miscellaneous activities Cash provided: Capital and surplus paid-in $ - $ 1,528 Borrowed money - 4 Net deposits on deposit-type contract funds (2,938) (5,592) Other sources 3,988 16,762 -------------- -------------- Net cash provided by financing and miscellaneous activities 1,050 12,702 -------------- -------------- Net (decrease) increase in cash and short-term investments (3,558) 6,991 Cash and short-term investments: Beginning of year 18,299 11,308 -------------- -------------- End of year $ 14,741 $ 18,299 ============== ==============
See accompanying notes - statutory basis. 9 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies United Life & Annuity Insurance Company (the Company) is domiciled in Iowa and is a wholly owned subsidiary of ING America Insurance Holdings, Inc. ("ING AIH"). The primary insurance products offered by the Company are annuity related. The Company also offers life and health insurance products, however all life and health business is ceded to other insurers. The Company is presently licensed in 47 states, the District of Columbia and Puerto Rico. The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Basis of Presentation The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Department of the State of Iowa (Iowa Insurance Department), which practices differ from accounting principles generally accepted in the United States ("GAAP"). The most significant variances from GAAP are as follows: Investments: Investments in bonds and mandatorily redeemable preferred stocks are reported at amortized cost or market value based on the National Association of Insurance Commissioners ("NAIC") rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized capital gains and losses reported in operations for those designated as trading and as a separate component of other comprehensive income in stockholder's equity for those designated as available-for-sale. Investments in real estate are reported net of related obligations rather than on a gross basis as under GAAP. Changes between depreciated cost and admitted asset investment amounts are credited or charged directly to unassigned surplus rather than income as would be required under GAAP. 10 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) The Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. For structured securities, when a negative yield results from a revaluation based on new prepayment assumptions (i.e., undiscounted cash flows are less than current book value), an other than temporary impairment is considered to have occurred and the asset is written down to the value of the undiscounted cash flows. For GAAP, assets are re-evaluated based on the discounted cash flows using a current market rate. Impairments are recognized when there has been an adverse change in cash flows and the fair value is less than book. The asset is then written down to fair value. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss accounted for as a realized loss. Valuation Reserves: The asset valuation reserve ("AVR") is determined by an NAIC-prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed-income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized gains and losses on investments are reported in operations net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pretax basis in the period that the asset giving rise to the gain or loss is sold and valuation allowances are provided when there has been a decline in value deemed other than temporary, in which case the provision for such declines is charged to income. Valuation allowances, if necessary, are established for mortgage loans based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan's effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral. 11 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) The initial valuation allowance and subsequent changes in the allowance for mortgage loans as a result of a temporary impairment are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP. Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance, to the extent recoverable from future policy revenues, are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, acquisition costs are amortized generally in proportion to the present value of expected gross margins from surrender charges and investment, mortality, and expense margins. Premiums: Life premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting. Under GAAP, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance policies, are recognized as revenue when due. Group insurance premiums are recognized as premium revenue over the time period to which the premiums relate. Revenues for universal life, annuities and guaranteed interest contracts consist of policy charges for the cost of insurance, policy administration charges, amortization of policy initiation fees and surrender charges assessed during the period. Benefit and Contract Reserves: Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium and Commissioners' Reserve Valuation methods using statutory rates for mortality and interest. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing reasonably conservative estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest-sensitive products, the GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads. 12 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Reinsurance: For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Statutory income recognized on certain reinsurance treaties representing financing arrangements is not recognized on a GAAP basis. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as required under GAAP. Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP. Subsidiary: The accounts and operations of the Company's subsidiary are not consolidated with the accounts and operations of the Company as would be required under GAAP. Nonadmitted Assets: Certain assets designated as "nonadmitted," principally deferred federal income tax assets, disallowed interest maintenance reserves, non-operating software, past-due agents' balances, furniture and equipment, intangible assets, and other assets not specifically identified as an admitted asset within the Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet. Universal Life and Annuity Policies: Revenues for universal life and annuity policies consist of the entire premium received and benefits incurred represent the total of death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values. 13 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Basis of Presentation (continued) Deferred Income Taxes Deferred tax assets are provided for and admitted to an amount determined under a standard formula. This formula considers the amount of differences that will reverse in the subsequent year, taxes paid in prior years that could be recovered through carrybacks, surplus limits and the amount of deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are non-admitted. Deferred taxes do not include any amounts for state taxes. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets that are expected to be realized in future years and a valuation allowance is established for the portion that is not realizable. Statements of Cash Flows: Cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents include cash balances and investments with initial maturities of three months or less. Reconciliation to GAAP The effects of the preceding variances from GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material. Other significant accounting practices are as follows: Investments Bonds, preferred stocks, common stocks, short-term investments and derivative instruments are stated at values prescribed by the NAIC, as follows: Bonds not backed by other loans are principally stated at amortized cost using the interest method. Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except for higher-risk asset backed securities, which are valued using the prospective method. Common stocks are reported at market value as determined by the SVO and the related unrealized capital gains/(losses) are reported in unassigned surplus along with adjustment for federal income taxes. 14 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Investments (continued) The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amount due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. In addition, the Company invests in structured securities including mortgage-backed securities/collateralized mortgage obligations, asset-backed securities, collateralized debt obligations, and commercial mortgage-backed securities. For these structured securities, management compares the undiscounted cash flows to the carrying value. An other than temporary impairment is considered to have occurred when the undiscounted cash flows are less than the carrying value. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss accounted for as a realized loss. The Company's noninsurance subsidiary is carried at cost. Mortgage loans are reported at amortized cost, less allowance for impairments. Policy loans are reported at unpaid principal balances. Real estate is reported at depreciated cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. Short-term investments are reported at amortized cost. Short-term investments include investments with maturities of less than one year at the date of acquisition. Other invested assets are reported at amortized cost using the effective interest method. Other invested assets primarily consist of joint ventures and partnership interests. Realized capital gains and losses are determined using the specific identification basis. 15 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Aggregate Reserve for Life Policies and Contracts Life, annuity, and accident and health reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash value or the amounts required by law. Interest rates range from 3.00% to 10.00%. The Company waives the deduction of deferred fractional premiums upon the death of the insured. It is the Company's practice to return a pro rata portion of any premium paid beyond the policy month of death, although it is not contractually required to do so for certain issues. The methods used in valuation of substandard policies are as follows: For life, endowment and term policies issued substandard, the standard reserve during the premium-paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts. For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating. For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra. The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance classified as group Section 79. The tabular interest of funds not involving life contingencies is calculated as the current year reserves, plus payments, less prior year reserves, less funds added. Reinsurance Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contract and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. 16 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Nonadmitted Assets Nonadmitted assets are summarized as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) except share amounts) Deferred federal income taxes $ 12,176 $ 5,639 Agents' debit balances 22 37 Disallowed Interest Maintenance Reserves - 466 Other 180 830 -------------- -------------- Total nonadmitted assets $ 12,378 $ 6,972 ============== ==============
Changes in nonadmitted assets are generally reported directly in surplus as an increase or decrease in nonadmitted assets. Certain changes are reported directly in surplus as a change in unrealized capital gains or losses. Claims and Claims Adjustment Expenses Claims expenses represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2002. The Company does not discount claims and claims adjustment expense reserves. Such estimates are based on actuarial projections applied to historical claims payment data. Such liabilities are considered to be reasonable and adequate to discharge the Company's obligations for claims incurred but unpaid as of December 31, 2002. Cash Flow Information Cash and short-term investments include cash on hand, demand deposits and short-term fixed maturity instruments (with a maturity of less than one year at date of acquisition). The Company borrowed $91,220,000 and repaid $91,220,000 in 2002 and borrowed $28,650,000 and repaid $28,650,000 during 2001. These borrowings were on a short-term basis, at an interest rate that approximated current money market rates and exclude borrowings from reverse dollar repurchase transactions. Interest paid on borrowed money was $13,000 and $14,000 during 2002 and 2001, respectively. 17 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 1. Nature of Operations and Significant Accounting Policies (continued) Separate Accounts Separate account assets and liabilities held by the Company represent funds held for the benefit of the Company's variable annuity policy and contract holders who bear all of the investment risk associated with the policies. Such policies are of a non-guaranteed nature. All net investment experience, positive or negative, is attributed to the policy and contract holders' account values. The assets and liabilities of these accounts are carried at fair value. Reserves related to the Company's mortality risk associated with these policies are included in annuity reserves. The operations of the separate accounts are not included in the accompanying statements of operations. Reclassifications Certain prior year amounts in the Company's statutory basis financial statements have been reclassified to conform to the 2002 financial statement presentation. 2. Permitted Statutory Basis Accounting Practices The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the Iowa Insurance Department. The Iowa Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the Iowa Insurance Laws. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the State of Iowa . The Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices. The Company is required to identify those significant accounting practices that are permitted, and obtain written approval of the practices from the Iowa Department of Insurance. As of December 31, 2002 and 2001, the Company had no such permitted accounting practices. 18 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 3. Accounting Changes and Corrections of Errors The Company prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Iowa. Effective January 1, 2001, the State of Iowa required that insurance companies domiciled in the State of Iowa prepare their statutory basis financial statements in accordance with the NAIC Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the State of Iowa insurance commissioner. Accounting changes adopted to conform to the provisions of the NAIC Accounting Practices and Procedures Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods. As a result of these changes, the Company reported a change of accounting principle, as an adjustment that increased unassigned surplus, by $1,528,000 as of January 1, 2001. 19 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 4. Investments The amortized cost and fair value of bonds and equity securities are as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value ---------- ---------- ---------- ---------- (In Thousands) At December 31, 2002: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 112,154 $ 3,593 $ - $ 115,747 States, municipalities, and political subdivisions 452 39 - 491 Public utilities securities 22,776 853 780 22,849 Corporate securities 288,160 12,781 1,452 299,489 Mortgage-backed securities 128,750 6,063 1,149 133,664 Other structured securities 32,357 330 6,202 26,485 Commercial mortgage-backed securities 24,221 1,465 62 25,624 ---------- ---------- ---------- ---------- Total fixed maturities 608,870 25,124 9,645 624,349 Common stocks 20 8 18 10 ---------- ---------- ---------- ---------- Total equity securities 20 8 18 10 ---------- ---------- ---------- ---------- Total $ 608,890 $ 25,132 $ 9,663 $ 624,359 ========== ========== ========== ==========
At December 31, 2001: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 83,712 $ 1,013 $ 662 $ 84,063 States, municipalities, and political subdivisions 430 22 - 452 Public utilities securities 1,392 58 - 1,450 Corporate securities 336,745 10,010 4,478 342,277 Mortgage-backed securities 184,916 6,257 2,031 189,142 Other structured securities 43,242 370 6,608 37,004 Commercial mortgage-backed securities 23,381 211 1,815 21,777 ---------- ---------- ---------- ---------- Total fixed maturities 673,818 17,941 15,594 676,165 Common stocks 67 120 42 145 ---------- ---------- ---------- ---------- Total equity securities 67 120 42 145 ---------- ---------- ---------- ---------- Total $ 673,885 $ 18,061 $ 15,636 $ 676,310 ========== ========== ========== ==========
20 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 4. Investments (continued) The amortized cost and fair value of investments in bonds at December 31, 2002, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized Fair Cost Value -------------- -------------- (In Thousands) December 31, 2002 Maturity: Due in 1 year or less $ 45,649 $ 46,347 Due after 1 year through 5 years 176,154 184,182 Due after 5 years through 10 years 138,555 143,770 Due after 10 years 63,184 64,277 -------------- -------------- 423,542 438,576 Mortgage-backed securities 128,750 133,664 Other structured securities 32,357 26,485 Commercial mortgage-backed securities 24,221 25,624 -------------- -------------- Total $ 608,870 $ 624,349 ============== ==============
At December 31, 2002, investments in certificates of deposit and bonds, with an admitted asset value of $23,570,000, were on deposit with state insurance departments to satisfy regulatory requirements. Reconciliation of bonds from amortized cost to carrying value as of December 31, 2002 and 2001 is as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Amortized cost $ 608,870 $ 673,818 Less nonadmitted bonds - 65 -------------- -------------- Carrying value $ 608,870 $ 673,753 ============== ==============
Proceeds from the sales of investments in bonds and other fixed maturity interest securities were $578,426,000 and $340,168,000 in 2002 and 2001, respectively. Gross gains of $14,407,000 and $9,174,000 and gross losses of $12,961,000 and $4,778,000 during 2002 and 2001, respectively, were realized on those sales. A portion of the gains realized in 2002 and 2001 has been deferred to future periods in the interest maintenance reserve. 21 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 4. Investments (continued) Major categories of net investment income are summarized as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Income: Bonds $ 42,754 $ 53,574 Mortgage loans 2,617 2,683 Policy loans 27 7 Company-occupied property - 40 Other 635 979 -------------- -------------- Total investment income 46,033 57,283 Investment expenses 1,777 1,941 -------------- -------------- Net investment income $ 44,256 $ 55,342 ============== ==============
As part of its overall investment strategy, the Company has entered into agreements to purchase securities as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Investment purchase commitments $ 558 $ 3,182 ============== ==============
The maximum and minimum lending rates for long-term mortgage loans during 2002 were 7.13% and 3.04%. Fire insurance is required on all properties covered by mortgage loans and must at least equal the excess of the loan over the maximum loan which would be permitted by law on the land without the buildings. The maximum percentage of any loan to the value of collateral at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages, was 57.0% on commercial properties. As of December 31, 2002, the Company held no mortgages with interest more than 180 days overdue. 22 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 5. Concentrations of Credit Risk The Company held less-than-investment-grade bonds with an aggregate book value of $40,723,000 and $65,103,000 and with an aggregate market value of $40,582,000 and $60,181,000 at December 31, 2002 and 2001, respectively. Those holdings amounted to 6.69% of the Company's investments in bonds and 5.40% of total admitted assets at December 31, 2002. The holdings of less-than-investment-grade bonds are widely diversified and of satisfactory quality based on the Company's investment policies and credit standards. The Company held unrated bonds of $17,624,000 and $17,683,000 with an aggregate NAIC market value of $17,726,000 and $17,206,000 at December 31, 2002 and 2001, respectively. The carrying value of these holdings amounted to 2.89% of the Company's investment in bonds and 2.34% of the Company's total admitted assets at December 31, 2002. At December 31, 2002, the Company's commercial mortgages involved a concentration of properties located in California (50%) and Pennsylvania (14%). The remaining commercial mortgages relate to properties located in 10 other states. The portfolio is well diversified; covering many different types of income-producing properties on which the Company has first mortgage liens. The maximum mortgage outstanding on any individual property is $6,430,000. 23 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 6. Annuity Reserves At December 31, 2002 and 2001, the Company's annuity reserves, including those held in separate accounts and deposit fund liabilities that are subject to discretionary withdrawal with adjustment, subject to discretionary withdrawal without adjustment, and not subject to discretionary withdrawal provisions are summarized as follows:
December 31, 2002 Amount Percent -------------- -------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 890 - % At book value less surrender charge 94,326 14 At fair value 61,499 9 -------------- -------------- Subtotal 156,715 23 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 482,267 73 Not subject to discretionary withdrawal 25,543 4 -------------- -------------- Total annuity reserves and deposit fund liabilities before reinsurance 664,525 100 % ============== Less reinsurance ceded 1,925 -------------- Net annuity reserves and deposit fund liabilities $ 662,600 ==============
December 31, 2001 Amount Percent -------------- -------------- (In Thousands) Subject to discretionary withdrawal (with adjustment): With market value adjustment $ 701 - % At book value less surrender charge 130,812 17 At fair value 98,449 13 -------------- -------------- Subtotal 229,962 30 Subject to discretionary withdrawal (without adjustment) at book value with minimal or no charge or adjustment 515,134 66 Not subject to discretionary withdrawal 28,311 4 -------------- -------------- Total annuity reserves and deposit fund liabilities before reinsurance 773,407 100 % ============== Less reinsurance ceded 2,391 -------------- Net annuity reserves and deposit fund liabilities $ 771,016 ==============
24 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 7. Separate Accounts Most separate account assets and liabilities held by the Company represent funds held for the benefit of the Company's variable life and annuity policy and contract holders who bear all the investment risk associated with the policies. Such policies are of a non-guaranteed nature. All net investment experience, positive or negative, is attributed to the policy and contract holders' account values. The assets of these accounts are carried at fair value. Premiums, deposits, and other considerations received for the years ended December 31, 2002 and 2001 were $408,000 and $1,022,000, respectively. A reconciliation of the amounts transferred to and from the separate accounts is presented below:
December 31 2002 2001 -------------- -------------- (In Thousands) Transfers as reported in the summary of operations of the Separate Accounts Statement: Transfers to separate accounts $ 408 $ 1,022 Transfers from separate accounts 17,790 19,908 -------------- -------------- Net transfers from separate accounts (17,382) (18,886) Reconciling adjustments: Miscellaneous transfers - 18 -------------- -------------- Transfers as reported in the Statement of Operations $ (17,382) $ (18,868) ============== ============== Reserves for separate accounts by withdrawal characteristics: Subject to discretionary withdrawal: With market value adjustment $ - $ - At book value without market value adjustment less current surrender charge of 5% or more - - At market value 61,500 98,450 At book value without market value adjustment less current surrender charge of less than 5% - - -------------- -------------- Subtotal 61,500 98,450 Not subject to discretionary withdrawal - - -------------- -------------- Total separate account liabilities $ 61,500 $ 98,450 ============== ==============
25 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 8. Reinsurance The Company is involved in ceded reinsurance with other companies for the purpose of diversifying risk and limiting exposure on larger risks. To the extent that the assuming companies become unable to meet their obligations under these treaties, the Company remains contingently liable to its policyholders for the portion reinsured. To minimize its exposure to significant losses from retrocessionaire insolvencies, the Company evaluates the financial condition of the retrocessionaire and monitors concentrations of credit risk. The Company's ceded reinsurance arrangements reduced certain items in the accompanying financial statements by the following amounts:
December 31 2002 2001 -------------- -------------- (In Thousands) Premiums $ 2,832 $ 3,090 Benefits paid or provided 6,101 6,440 Policy and contract liabilities at year end 91,095 92,451
9. Federal Income Taxes The Company files a separate Federal income tax return. Significant components of income taxes incurred as of December 31 are:
December 31 2002 2001 -------------- -------------- (In Thousands) Current income taxes incurred for the year ended December 31, consist of the following major components: Federal tax on operations $ (5,786) $ 3,039 Federal tax on capital gains 3,926 - Capital loss on carryovers utilized (675) - -------------- -------------- Total current taxes incurred $ (2,535) $ 3,039 ============== ==============
26 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 9. Federal Income Taxes (continued) The components of deferred tax assets and deferred tax liabilities as of December 31 are as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Deferred tax assets resulting from book/tax differences in: Deferred acquisition costs $ 1,096 $ 1,304 Insurance reserves 113 1,324 Investments 3,270 - Capital loss carry forward 3,445 6,282 Present value of insurance in force 8,751 - Unrealized loss on investments 1,019 5 Other 725 538 -------------- -------------- Total deferred tax assets 18,419 9,453 Deferred tax assets nonadmitted 12,175 5,640 -------------- -------------- Admitted deferred tax assets $ 6,244 $ 3,813 ============== ============== Deferred tax liabilities resulting from book/tax differences in: Investments $ 725 $ 295 Other 134 - -------------- -------------- Total deferred tax liabilities 859 295 -------------- -------------- Net admitted deferred tax asset $ 5,385 $ 3,518 ============== ==============
The change in net deferred income taxes is comprised of the following:
December 31 2002 2001 Change -------------- -------------- -------------- (In Thousands) Total deferred tax assets $ 18,419 $ 9,453 $ 8,966 Total deferred tax liabilities 859 295 564 -------------- -------------- -------------- Net deferred tax asset $ 17,560 $ 9,158 8,402 ============== ============== Tax effect of items in surplus: Nonadmitted assets 241 Unrealized losses (1,014) -------------- Change in net deferred income tax $ 7,629 ==============
27 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 9. Federal Income Taxes (continued) The provision for federal income taxes expense and change in deferred taxes differs from the amount obtained by applying the statutory Federal income tax rate to income (including capital losses) before income taxes for the following reasons:
Year ended December 31, 2002 -------------- Ordinary income $ 11,367 Capital gains 634 -------------- Total pre-tax book income $ 12,001 ============== Provision computed at statutory rate $ 4,200 Refinement of deferred tax balances (14,813) Interest maintenance reserve (579) Other 1,028 -------------- Total $ (10,164) ============== Federal income taxes incurred $ (2,535) Change in net deferred income taxes (7,629) -------------- Total statutory income taxes $ (10,164) ==============
The amount of federal income taxes incurred that will be available for recoupment in the event of future net losses is $1,285,000 and $1,366,000 from 2002 and 2001 respectively. The Company has a recoverable of $1,406,000 at December 31, 2002 and $3,976,000 at December 31, 2001 from the United States Treasury for federal income taxes. The Company has capital loss carry forwards, which expire as follows: Expiration Year Amount --------------- ---------------- 2005 $ 9,844,000 28 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 10. Investment in and Advances to Subsidiaries The Company has one wholly owned noninsurance subsidiary at December 31, 2002, United Variable Services, Inc. Amounts invested in and advanced to the Company's subsidiary is summarized as follows:
December 31 2002 2001 -------------- -------------- (In Thousands) Common stock (cost-$25,000 in 2002 and 2001) $ 25 $ 25 (Payable) receivable from subsidiary - -
11. Capital and Surplus Under Iowa insurance regulations, the Company is required to maintain a minimum total capital and surplus of $7,806,000. Additionally, the amount of dividends which can be paid by the Company to its stockholder without prior approval of the Iowa Insurance Department is limited to the greater of 10% of statutory surplus or the statutory net gain from operations. 29 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 12. Fair Values of Financial Instruments Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. The carrying amounts and fair values of the Company's financial instruments are summarized as follows:
December 31 2002 2001 ----------------------- ----------------------- Carrying Fair Carrying Fair Amount Value Amount Value ---------- ---------- ---------- ---------- (In Thousands) Assets: Bonds $ 608,870 $ 624,349 $ 673,753 $ 676,101 Unaffiliated common stocks 10 10 145 145 Mortgage loans 34,829 39,729 31,004 29,900 Policy loans 933 933 1,028 1,028 Short-term investments 14,450 14,450 4,000 4,000 Cash 291 291 14,299 14,299 Indebtedness from related parties - - 19 19 Separate account assets 64,410 64,410 103,520 103,520 Receivable for securities 8,308 8,308 476 476 Liabilities: Individual and group annuities 578,170 575,913 646,841 675,314 Deposit type contract 14,926 14,939 16,982 17,907 Indebtedness to related parties 1,634 1,634 926 926 Separate account liabilities 64,410 64,410 103,520 103,520 Payable for securities - - 1,000 1,000
The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Cash and short-term investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. 30 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 12. Fair Values of Financial Instruments (continued) Fixed maturities and equity securities: The fair values for bonds and common stocks, reported herein, are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placements, collateralized mortgage obligations and other mortgage derivative investments, are estimated by discounting the expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality, and maturity, which fall within a range between 2% and 15% over the total portfolio. Fair values determined on this basis can differ from values published by the NAIC Securities Valuation Office. Market value as determined by the NAIC as of December 31, 2002 and 2001 is $611,948,000 and $676,788,000, respectively. Mortgage loans: Estimated market values for commercial real estate loans were generated using a discounted cash flow approach. Loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on new loans with similar characteristics. The amortizing features of all loans are incorporated in the valuation. Where data on option features is available, option values are determined using a binomial valuation method, and are incorporated into the mortgage valuation. Restructured loans are valued in the same manner; however, these loans were discounted at a greater spread to reflect increased risk. All residential loans are valued at their outstanding principal balances, which approximate their fair values. Other investment-type insurance contracts: The fair values of the Company's deferred annuity contracts are estimated based on the cash surrender values. The carrying values of other policyholder liabilities, including immediate annuities, dividend accumulations, supplementary contracts without life contingencies, and premium deposits, approximate their fair values. The carrying value of all other financial instruments approximates their fair value. 13. Commitments and Contingencies The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of pending lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. 31 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 14. Financing Agreements The Company maintains a revolving loan agreement with SunTrust Bank, Atlanta (the "Bank"). Under this agreement, which expires July 31, 2003, the Company can borrow up to $75,000,000 from the Bank. Interest on any borrowing accrues at an annual rate equal to the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred interest expense of $3,000 for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. The Company also maintains a revolving loan agreement with Bank of New York, New York (the "Bank"). Under this agreement, the Company can borrow up to $50,000,000 from the Bank. Interest on any of the Company borrowing accrues at an annual rate equal to: the cost of funds for the Bank for the period applicable for the advance plus 0.225% or a rate quoted by the Bank to the Company for the borrowing. Under this agreement, the Company incurred no interest expense for the year ended December 31, 2002. At December 31, 2002, the Company had $0 payable to the Bank. 15. Related Party Transactions Affiliates Management and service contracts and all cost sharing arrangements with other affiliated ING US life insurance companies are allocated among companies in accordance with normal, generally accepted expense and cost allocation methods. Investment Management: The Company has entered into an investment advisory agreement and an administrative services agreement with ING Investment Management, LLC ("IIM") under which IIM provides the Company with investment management and asset liability management services. Total fees under this agreement were approximately $1,617,000 and $1,287,000 for the year ended December 31, 2002 and 2001, respectively. Inter-insurer Services Agreement: The Company has entered into a services agreement with certain of its affiliated insurance companies in the United States ("affiliated insurers") whereby the affiliated insurers provide certain administrative, management, professional, advisory, consulting and other services to each other. Net amounts paid under these agreements were $384,000 and $816,000 for the year ended December 31, 2002 and 2001, respectively. 32 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 15. Related Party Transactions (continued) Reciprocal Loan Agreement: The Company has entered into a reciprocal or revolving 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 expires April 1, 2011, the Company and ING AIH can borrow up to $22,400,000 from one another. Interest on any borrowing 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 the rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under this agreement, the company incurred interest expense of $10,000 and interest income of $40,000 for the year ended December 31, 2002. At December 31, 2002, the company had $0 payable to ING AIH and $0 receivable from ING AIH. 16. Guaranty Fund Assessments Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premiums companies collect in that state. The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and the amount of premiums written in each state. The Company reduces the accrual by credits allowed in some states to reduce future premium taxes by a portion of assessments in that state. The Company has estimated this liability to be $474,000 and $474,000 as of December 31, 2002 and 2001, respectively and has recorded a reserve. The Company has also recorded an asset of $351,000 and $95,000 as of December 31, 2002 and 2001, respectively, for future credits to premium taxes for assessments already paid. 17. Regulatory Risk-Based Capital Life and health insurance companies are subject to certain Risk-Based Capital ("RBC") requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2002, the Company meets the RBC requirements. 33 United Life & Annuity Insurance Company Notes to Financial Statements - Statutory Basis (continued) -------------------------------------------------------------------------------- 18. Reconciliation to the Annual Statement Subsequent to the filing of the 2001 Annual Statement, the Company discovered adjustments that were recorded in the 2001 audited financial statement but not the 2001 Annual Statement. During 2002, the Company corrected these adjustments in its Summary of Operations in the 2002 Annual Statement. As a result, the differences below exist between the 2002 Annual Statement and the accompanying statutory basis financial statements:
Capital and Net Income Surplus -------------- -------------- (In Thousands) Amounts as reported in the 2002 Annual Statement $ 8,817 $ 82,852 Capital gains tax (1,935) - Mortgage loan income 198 - Federal income taxes 4,471 - Asset valuation reserve - (1,646) -------------- -------------- $ 11,551 $ 81,206 ============== ==============
At December 31, 2001, differences in amounts reported in the 2001 Annual Statement, as revised, and amounts in the accompanying statutory-basis financial statements are due to the following:
Capital and Net Income Surplus -------------- -------------- (In Thousands) Amounts as reported in the 2001 Annual Statement $ 11,058 $ 67,443 Capital gains tax benefit 1,935 1,935 Mortgage loan income 368 (198) Deferred tax asset - 1,930 Federal income tax recoverable - (4,471) -------------- -------------- $ 13,361 $ 66,639 ============== ==============
34 Exhibit 99.7 United Life & Annuity Insurance Company Balance Sheet - Statutory Basis --------------------------------------------------------------------------------
September 30, 2003 -------------- (In Thousands) Admitted assets Cash and invested assets: Bonds $ 595,547 Common stocks 2 Subsidiaries 25 Mortgage loans 38,032 Policy loans 930 Other invested assets 20,530 Cash and short-term investments 1,944 -------------- Total cash and invested assets 657,010 Deferred and uncollected premiums (27) Accrued investment income 7,021 Reinsurance balances recoverable 53 Federal income tax recoverable 1,709 Net deferred tax asset 2,805 Separate account assets 60,745 Other assets 90 -------------- Total admitted assets $ 729,406 ============== Liabilities and capital and surplus Liabilities: Policy and contract liabilities: Life and annuity reserves 556,238 Deposit type contracts 13,959 -------------- Total policy and contract liabilities 570,197 Accounts payable and accrued expenses 1,434 Indebtedness to related parties 1,219 Interest maintenance reserve 5,262 Asset valuation reserve 5,018 Other liabilities 11,344 Separate account liabilities 60,745 -------------- Total liabilities 655,219 Capital and surplus: Common stock 8,401 Additional paid-in capital 41,241 Unassigned surplus 24,545 -------------- Total capital and surplus 74,187 -------------- Total liabilities and capital and surplus $ 729,406 ==============
1 United Life & Annuity Insurance Company Statements of Operations - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Premiums and other revenues: Life, annuity, and accident and health premiums $ 1,469 $ 1,027 Policy proceeds and dividends left on deposit 462 179 Net investment income 26,962 33,648 Amortization of interest maintenance reserve 1,498 990 Commissions, expense allowances and reserve adjustments on reinsurance ceded 286 374 Other income 887 2,064 -------------- -------------- Total premiums and other revenues 31,564 38,282 Benefits paid or provided: Annuity benefits 15,542 16,562 Surrender benefits 49,821 82,125 Interest on policy or contract funds 55 497 Other benefits (25) - Life contract withdrawals 877 887 Change in life, annuity, and accident and health reserves (30,518) (57,279) Net transfers to separate accounts (10,229) (13,329) -------------- -------------- Total benefits paid or provided 25,523 29,463 Insurance expenses: Commissions 426 443 General expenses 1,940 1,556 Insurance taxes, licenses and fees, excluding federal income taxes 337 43 -------------- -------------- Total insurance expenses 2,703 2,042 -------------- -------------- Gain (loss) from operations before federal income taxes and net realized capital losses 3,338 6,777 Federal income taxes (1,298) (1,873) -------------- -------------- Gain from operations before net realized capital losses 4,636 8,650 Net realized capital gains or (losses), net of income taxes 2003 - $0; 2002 - $1,992 and excluding net transfers to the interest maintenance reserve 2003 - $0; 2002 - $3,003 2,862 (6,482) -------------- -------------- Net income (loss) $ 7,498 $ 2,168 ============== ==============
2 United Life & Annuity Insurance Company Statements of Changes in Capital and Surplus - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Common stock: Balance at beginning and end of year $ 8,401 $ 8,401 Additional paid-in capital: Balance at beginning and end of year 41,241 41,241 Unassigned surplus: Balance at beginning and end of year 33,210 17,800 Net income 7,498 2,168 Change in net unrealized capital gains or losses 78 (2,178) Change in nonadmitted assets 1,030 (9,847) Change in asset valuation reserve (921) 4,529 Change in net deferred income tax (3,680) 12,811 Dividends to stockholders (12,400) - Other adjustments (270) (356) -------------- -------------- Balance at end of year 24,545 24,927 Total capital and surplus $ 74,187 $ 74,569 ============== ==============
3 United Life & Annuity Insurance Company Statements of Cash Flows - Statutory Basis --------------------------------------------------------------------------------
Nine months ended September 30, 2003 2002 -------------- -------------- (In Thousands) Operations Premiums, policy proceeds, and other considerations received, net of reinsurance paid $ 1,469 $ 1,198 Net investment income received 28,981 36,526 Commission and expense allowances received on reinsurance ceded (2,802) 374 Benefits paid (67,204) (84,529) Net transfers to separate accounts 9,675 15,206 Insurance expenses paid - (2,164) Federal income taxes (paid) received 995 4,590 Net other (expenses) revenues 1,594 2,158 -------------- -------------- Net cash used in operations (27,292) (26,641) Investments Proceeds from sales, maturities, or repayments of investments: Bonds 816,936 433,061 Mortgage loans 1,277 1,789 Real estate - 54 Other invested assets 64 81 Net gain or (losses) on cash and short-term investments - (264) Miscellaneous proceeds 14,659 (4,722) Net tax on capital gains - (1,992) -------------- -------------- Net proceeds from sales, maturities, or repayments of investments 832,936 428,007 Cost of investments acquired: Bonds 794,630 388,217 Mortgage loans 4,480 7,106 Other invested assets - 99 Miscellaneous applications 6,582 - -------------- -------------- Total cost of investments acquired 805,692 395,422 Net increase (decrease) in policy loans (6) (68) -------------- -------------- Net cash used in investment activities 27,238 32,653 Financing and miscellaneous activities Cash provided (used): Net deposits on deposit-type contract funds (967) - Dividends to stockholders (12,400) - Other sources 624 (19,537) -------------- -------------- Net cash used in financing and miscellaneous activities (12,743) (19,537) Net change in cash and short-term investments (12,797) (13,525) Cash and short-term investments: Beginning of year 14,741 18,299 -------------- -------------- End of year $ 1,944 $ 4,774 ============== ==============
4 Exhibit 99.8 AGREEMENT AND PLAN OF MERGER OF USG ANNUITY & LIFE COMPANY UNITED LIFE & ANNUITY INSURANCE COMPANY AND EQUITABLE LIFE INSURANCE COMPANY OF IOWA INTO GOLDEN AMERICAN LIFE INSURANCE COMPANY TO BE RENAMED ING USA ANNUITY AND LIFE INSURANCE COMPANY AGREEMENT AND PLAN OF MERGER, dated as of June 25, 2003 (the "Agreement"), by and between USG Annuity & Life Company ("USG"), an Oklahoma stock life insurance company, United Life & Annuity Insurance Company ("ULA"), an Iowa stock life insurance company, Equitable Life Insurance Company of Iowa ("ELIC"), an Iowa stock life insurance company, and Golden American Life Insurance Company ("GALIC"), a Delaware stock life insurance company, each having its primary office for books and records at 909 Locust Street, Des Moines, Iowa 50309; WHEREAS, each of USG, ULA, ELIC and GALIC is a wholly owned subsidiary of Lion Connecticut Holdings Inc.; and WHEREAS, on the date of the Merger but prior to the Effective Time (as hereinafter defined), GALIC shall have been duly redomesticated to Iowa in accordance with the applicable provisions of the laws of the State of Delaware and the State of Iowa (the "Redomestication"); NOW, THEREFORE, in consideration of the mutual agreements, covenants and provisions contained herein, the parties hereto agree as follows: 1 ARTICLE I THE MERGER Section 1.1. The Merger. At the Effective Time (as hereinafter defined) USG, pursuant to Title 18, Oklahoma Statutes, and ULA and ELIC, pursuant to Chapter 490, Code of Iowa, will be statutorily merged with and into GALIC and the separate corporate existence of USG, ULA and ELIC shall cease. GALIC as it exists from and after the Effective Time is sometimes referred to as the "Surviving Corporation." Section 1.2. Effective Time of the Merger. Subject to the terms and conditions of this Agreement, Articles of Merger shall be duly prepared, executed and acknowledged by USG, ULA, ELIC and GALIC and shall be filed with the Commissioner of the Iowa Insurance Division and a Certificate of Merger, as prescribed by Oklahoma law, shall be duly prepared, executed and acknowledged by GALIC and shall be filed with the Insurance Commissioner for the State of Oklahoma. The merger described in Section 1.1 (the "Merger") shall become effective upon the last to occur of (a) 12:02 a.m., January 1, 2004, (b) 12:02 a.m. on the date on which the Articles of Merger are filed with the Iowa Secretary of State, or (c) 12:02 a.m. on the date on which the Certificate of Merger is filed with the Oklahoma Secretary of State, provided the Articles of Merger have been approved by the Commissioner of the Iowa Insurance Division and the Certificate of Merger has been approved be the Insurance Commissioner for the State of Oklahoma and, provided further, that the Redomestication shall have been duly effected pursuant to Section 508.12 Code of Iowa and Delaware Code Title 18 Section 4946. The date and time when the Merger shall become effective is hereinafter referred to as the "Effective Time." Section 1.3. Effects of the Merger. The Merger shall have the effects as follows: 1. The parties to this Agreement shall be one insurance corporation which shall be GALIC, the Surviving Corporation, which by virtue of the Redomestication, shall be an Iowa stock life insurance company. 2. The separate existence of USG, ULA and ELIC shall cease. 3. The title to real estate and other property owned by each of USG, ULA and ELIC is vested in GALIC without reversion or impairment. 4. GALIC has all liabilities of each corporation party to the Merger. 5. A proceeding pending against any of USG, ULA or ELIC may be continued as if the merger did not occur or the Surviving Corporation may be substituted in the proceeding for USG, ULA or ELIC, respectively. 2 ARTICLE II THE SURVIVING CORPORATION Section 2.1. Articles of Incorporation. The Articles of Incorporation of GALIC as in effect at the Effective Time shall be and remain the Articles of Incorporation of the Surviving Corporation and the name of the Surviving Corporation shall be ING USA Annuity and Life Insurance Company. Section 2.2. Bylaws. The Bylaws of GALIC in effect at the Effective Time shall be and remain the Bylaws of the Surviving Corporation until altered, amended or repealed in accordance with their terms and as provided by the Articles of Incorporation of the Surviving Corporation. Section 2.3. Directors and Officers. The directors and officers of GALIC in office at the Effective Time shall continue in office and shall constitute the directors and officers of the Surviving Corporation for the terms for which such persons have been elected and until their respective successors shall be elected or appointed and qualified. ARTICLE III CAPITALIZATION All of the shares of capital stock of USG, ULA and ELIC which are issued and outstanding immediately prior to the Effective Time, by virtue of the Merger and by operation of law and without any action on the part of the holder thereof, shall no longer be outstanding, shall be canceled and retired, and cease to exist, and each holder of a certificate representing any such shares of capital stock of USG, ULA and ELIC shall thereafter cease to have any rights with respect to such shares of capital stock thereof. ARTICLE IV MISCELLANEOUS Section 4.1. Cooperation. Each of USG, ULA, ELIC and GALIC shall take, or cause to be taken, all action or do or cause to be done, all things necessary, proper or advisable under the laws of the State of Oklahoma and the State of Iowa to consummate and effectuate the Merger, subject, however, to the appropriate vote or consent of the Board of Directors of each of USG, ULA, ELIC and GALIC in accordance with the requirements of the applicable provisions of the laws of the State of Oklahoma and the State of Iowa. Section 4.2. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Section 4.3. Governing Law. This Agreement shall be governed by and construed under the laws of the State of Iowa, without regard to the conflict of laws principles thereof. 3 IN WITNESS WHEREOF, each of USG, ULA, ELIC and GALIC have executed this Agreement as of the date first written above.
USG Annuity & Life Company By: /s/ Keith Gubbay Name: Keith Gubbay Its: President United Life & Annuity Insurance Company By: /s/ Keith Gubbay Name: Keith Gubbay Its: President Equitable Life Insurance Company of Iowa By: /s/ Keith Gubbay Name: Keith Gubbay Its: President Golden American Life Insurance Company By: /s/ Keith Gubbay Name: Keith Gubbay Its: President
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page ------------ Report of Independent Auditors .................................... F-2 Consolidated Financial Statements: Consolidated Income Statements for the years ended December 31, 2002, 2001, and 2000............................................. F-3 Consolidated Balance Sheets as of December 31, 2002 and 2001..... F-4 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001, and 2000................ F-5 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001, and 2000................................................... F-6 Notes to Consolidated Financial Statements....................... F-7 F-1 REPORT OF INDEPENDENT AUDITORS The Board of Directors Golden American Life Insurance Company We have audited the accompanying consolidated balance sheets of Golden American Life Insurance Company and Subsidiary as of December 31, 2002 and 2001, and the related income statements, statements of changes in shareholder's equity, and statements of cash flows for each of the three years in the period ended December 31, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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, 2002 and 2001, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. As discussed in Note 1 to the financial statements, the Company changed the accounting principle for goodwill and other intangible assets effective January 1, 2002. /s/ Ernst & Young LLP Atlanta, Georgia March 21, 2003 F-2
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED INCOME STATEMENTS (Millions) For the Years Ended December 31, ------------------------------------------------ 2002 2001 2000 ------------- -------------- ------------- Revenues: Fee income $ 204.0 $ 188.9 $ 167.9 Net investment income 197.7 94.4 64.1 Net realized capital gains (losses) 4.2 (6.5) (6.6) Other income 3.5 - - ------------- -------------- ------------- Total revenue 409.4 276.8 225.4 ------------- -------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 276.5 209.0 199.9 Underwriting, acquisition, and insurance expenses: General expenses 139.7 119.9 89.5 Commissions 288.7 232.4 213.7 Policy acquisition costs deferred (292.2) (128.2) (168.4) Amortization: Deferred policy acquisition costs and value of business acquired 127.8 49.6 60.0 Goodwill - 4.2 4.2 Other: Expense and charges reimbursed under modified coinsurance agreements (104.9) (225.6) (225.8) Interest expense 16.0 19.4 19.9 ------------- -------------- ------------- Total benefits, losses and expenses 451.6 280.7 193.0 ------------- -------------- ------------- Income (loss) before income taxes (42.2) (3.9) 32.4 Income tax expense (benefit) (12.5) 0.1 13.2 ------------- -------------- ------------- Income (loss) before cumulative effect of change in accounting principle (29.7) (4.0) 19.2 Cumulative effect of change in accounting principle (135.3) - - ------------- -------------- ------------- Net income (loss) $ (165.0) $ (4.0) $ 19.2 ============= ============== ============= See Notes to Consolidated Financial Statements F-3
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED BALANCE SHEETS (Millions, except share data) As of December 31, ------------------------------------- Assets 2002 2001 ------ ----------------- ---------------- Investments: Fixed maturities, available for sale, at fair value (amortized cost of $4,720.1 at 2002 and $1,982.5 at 2001) $ 4,936.4 $1,994.9 Equity securities, at fair value: Investment in mutual funds (cost of $22.9 at 2002) 19.0 - Mortgage loans on real estate 482.4 213.9 Policy loans 16.0 14.8 Short-term investments 2.2 10.1 ----------------- ---------------- Total investments 5,456.0 2,233.7 Cash and cash equivalents 148.5 195.7 Accrued investment income 61.9 22.8 Reinsurance recoverable 196.9 56.0 Deferred policy acquisition costs 678.0 709.0 Value of business acquired 8.5 20.2 Goodwill (net of accumulated amortization of $17.6 at 2001) - 151.3 Other assets 5.3 23.7 Assets held in separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total assets $ 17,584.4 $14,370.6 ================= ================ Liabilities and Shareholder's Equity ------------------------------------ Policy liabilities and accruals: Future policy benefits and claims reserves $ 5,159.1 $2,185.3 ----------------- ---------------- Total policy liabilities and accruals 5,159.1 2,185.3 Surplus notes 170.0 245.0 Due to affiliates - 25.1 Payables for securities purchased - 36.4 Current income taxes 42.4 - Deferred income taxes 79.8 12.6 Dollar roll obligations 40.0 3.9 Other borrowed money - 1.4 Other liabilities 64.7 84.9 Liabilities related to separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total liabilities 16,585.3 13,552.8 ----------------- ---------------- Shareholder's equity: Common stock (250,000 shares authorized, issued and outstanding; $10.00 per share par value) 2.5 2.5 Additional paid-in capital 1,128.4 780.4 Accumulated other comprehensive income 2.1 3.8 Retained earnings (deficit) (133.9) 31.1 ----------------- ---------------- Total shareholder's equity 999.1 817.8 ----------------- ---------------- Total liabilities and shareholder's equity $ 17,584.4 $ 14,370.6 ================= ================ See Notes to Consolidated Financial Statements F-4
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Millions) Accumulated Total Additional Other Retained Share- Common Paid-in- Comprehensive Earnings holder's Stock Paid-in-Capit Income (loss) (Deficit) Equity ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 1999 $ 2.5 $ 468.6 $ (9.2) $ 15.9 $ 477.8 Contribution of capital 115.0 115.0 Comprehensive income: Net income - - - 19.2 19.2 Other comprehensive income net of tax: Unrealized gain on securities ($9.8 pretax) - - 5.1 - 5.1 ------------ Comprehensive income 24.3 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2000 2.5 583.6 (4.1) 35.1 617.1 Contribution of capital 196.8 196.8 Comprehensive income: Net (loss) - - - (4.0) (4.0) Other comprehensive income net of tax: Unrealized gain on securities ($12.2 pretax) - - 7.9 - 7.9 ------------ Comprehensive income 3.9 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2001 2.5 780.4 3.8 31.1 817.8 Contribution of capital 356.3 356.3 Other (8.3) (8.3) Comprehensive income: Net (loss) - - - (165.0) (165.0) Other comprehensive income net of tax: Unrealized (loss) on securities ($(2.6) pretax) - - (1.7) - (1.7) ------------ Comprehensive (loss) (166.7) ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2002 $ 2.5 $ 1,128.4 $ 2.1 $ (133.9) $ 999.1 ============ ============= ================== =========== ============ See Notes to Consolidated Financial Statements F-5
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions) For the years Ended December 31, 2002 2001 2000 ---------------- ------------- --------------- Cash Flows from Operating Activities: Net income (loss) $ (165.0) $ (4.0) $ 19.2 Adjustments to reconcile net income to net cash provided by operating activities: Interest credited and charges on interest sensitive products 282.2 191.0 183.1 Net realized capital (gains) losses (4.2) 6.5 6.6 Accrued investment income (39.5) (13.2) 1.6 Increase in guaranteed benefits reserve 107.1 28.2 26.7 Acquisition costs deferred (292.2) (128.2) (168.4) Amortization of deferred policy acquisition costs 121.2 45.2 55.2 Amortization of value of business acquired 6.6 4.4 4.8 Impairment of Goodwill 151.3 - - Change in other assets and liabilities 21.3 110.6 (69.4) Provision for deferred income taxes (85.7) (0.6) 13.3 ---------------- ------------- --------------- Net cash provided by operating activities 103.1 239.9 72.7 Cash Flows from Investing Activities: Proceeds from the sale of: Fixed maturities available for sale 7,297.1 880.7 205.1 Equity securities 7.8 6.9 6.1 Mortgages 285.0 136.0 12.7 Acquisition of investments: Fixed maturities available for sale (10,068.3) (2,070.8) (154.0) Equity securities (22.8) - - Short-term investments - (4.7) (5.3) Mortgages (553.7) (250.3) (12.9) Increase (decrease) in policy loans (1.2) (1.5) 0.8 Increase (decrease) in property and equipment 1.1 1.2 (3.2) Proceeds from sale of interest in subsidiary 27.7 - - Loss on valuation of interest in subsidiary 3.0 - - Other 0.6 - - ---------------- ------------- --------------- Net cash (used for) provided by investing activities (3,023.7) (1,302.5) 49.3 Cash Flows from Financing Activities: Deposits and interest credited for investment contracts 3,818.5 1,933.1 801.8 Maturities and withdrawals from insurance contracts (171.2) (134.8) (141.5) Transfers from (to) separate accounts (1,053.8) (902.9) (825.8) Proceeds of notes payable - 3.1 67.2 Repayment of notes payable (1.4) (1.7) (68.6) Proceeds from reciprocal loan agreement borrowings - 69.3 178.9 Repayment of reciprocal loan agreement borrowings (75.0) (69.3) (178.9) Contributions of capital by parent 356.3 196.8 115.0 ---------------- ------------- --------------- Net cash provided by (used for) financing activities 2,873.4 1,093.6 (51.9) ---------------- ------------- --------------- Net increase (decrease) in cash and cash equivalents (47.2) 31.0 70.1 Cash and cash equivalents, beginning of period 195.7 164.7 94.6 ---------------- ------------- --------------- Cash and cash equivalents, end of period $ 148.5 $ 195.7 $ 164.7 ================ ============= =============== See Notes to Consolidated Financial Statements F-6
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A WHOLLY-OWNED SUBSIDIARY OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION Golden American Life Insurance Company ("Golden American"), a wholly-owned subsidiary of Equitable Life Insurance Company of Iowa ("Equitable Life" or the "Parent"), is a stock life insurance company organized under the laws of the State of Delaware. Golden American was originally incorporated under the laws of the State of Minnesota on January 2, 1973, in the name of St. Paul Life Insurance Company. Equitable Life is a wholly-owned subsidiary of Lion Connecticut Holding Inc. ("Lion Connecticut") which is an indirect wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. Golden American is authorized to do business in the District of Columbia and all states except New York. Golden American's wholly-owned life insurance subsidiary, First Golden American Life Insurance Company of New York ("First Golden,") and collectively with Golden American, the ("Company"), is licensed as a life insurance company under the laws of the States of New York and Delaware. There is no public trading market for the Registrant's of common stock. Formerly, from October 24, 1997, until December 30, 2001, Equitable of Iowa Company, Inc. ("EIC" or "Former Holding Company"), directly owned 100% of Golden American's stock. On December 3, 2001, the Board of Directors of the Former Holding Company approved a plan to contribute its holding of stock of Golden American to another wholly-owned subsidiary, Equitable Life. The contribution of stock occurred on December 31, 2001, following approval granted by the Insurance Department of the State of Delaware. There is no public trading market for the Registrant's common stock. As of April 1, 2002, Golden American sold First Golden to its sister company, ReliaStar Life Insurance Company ("ReliaStar"). ReliaStar Life, the parent of Security-Connecticut Life Insurance Company ("Security-Connecticut") which in turn is the parent of ReliaStar Life Insurance Company of New York ("RLNY"), merged the First Golden business into RLNY operations and dissolved First Golden at book value for $27.7 million in cash and a receivable totaling $0.2 million from RLNY. The receivable from RLNY was assumed by Equitable Life, and ultimately by ING. The consideration was based on First Golden's statutory-basis book value. RLNY's payable to the Company was assumed by ING and subsequently forgiven. Golden American realized a loss of $3.0 million related to the sale of First Golden, which was recorded as a capital transaction. Approval for the merger was obtained from the Insurance Departments of the States of New York and Delaware. Statement of Financial Accounting Standards ("FAS") No. 141 "Business Combinations" excludes transfers of net assets or exchanges of shares between entities under common control and is therefore covered by Accounting Principles Board ("APB") Opinion No. 16 "Business Combinations." Since RLNY presented combined results of operations including First Golden activity as of the beginning of the period ending December 31, 2002. The first three months of First Golden activity is not reflected in the Golden statement of financial position or other financial information for the period ended December 31, 2002, as the amounts were not material. F-7 DESCRIPTION OF BUSINESS The Company offers a portfolio of variable and fixed insurance products designed to meet customer needs for a tax-advantaged saving for retirement and protection from death. The Company's variable and fixed insurance products are marketed by broker/dealers, financial institutions, and insurance agents. The Company's primary customers are consumers and corporations. NEW ACCOUNTING STANDARDS ACCOUNTING FOR GOODWILL AND INTANGIBLE ASSETS In June 2001, the Financial Accounting Standards Board ("FASB") issued FAS No. 142, "Goodwill and Other Intangible Assets," effective for fiscal years beginning after December 15, 2001. Under FAS No. 142, goodwill and intangible assets deemed to have indefinite lives will no longer be amortized but will be subject to annual impairment tests. Other intangible assets are still amortized over their estimated useful lives. The Company adopted the new standard effective January 1, 2002. As required under FAS No. 142, the Company completed the first of the required impairment tests as of January 1, 2002. Step one of the impairment test was a screen for potential impairment, while step two measured the amount of the impairment. All of the Company's operations fall under one reporting unit, USFS, due to the consolidated nature of the Company's operations. Step one of the impairment test required the Company to estimate the fair value of the reporting unit and compare the estimated fair value to its carrying value. The Company determined the estimated fair value utilizing a discounted cash flow approach and applying a discount rate equivalent to the Company's weighted average cost of capital. Fair value was determined to be less than carrying value which required the Company to complete step two of the test. In step two, the Company allocated the fair value of the reporting unit determined in step one to the assets and liabilities of the reporting unit resulting in an implied fair value of goodwill of zero. The comparison of the fair value amount allocated to goodwill and the carrying value of goodwill resulted in an impairment loss of $135.3 million net of taxes, which represents the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge is shown as a change in accounting principle on the Consolidated Statements of Income. Application of the nonamortization provision (net of tax) of the new standard resulted in an increase in net income of $3.8 million for the twelve months ended December 31, 2002. Had the Company been accounting for goodwill under FAS No. 142 for all periods presented, the Company's net (loss) income would have been as follows: (Millions) Year ended Year ended December 31, 2001 December 31, 2001 ------------------------------------------------------------------------ Reported net income (loss) $ (4.0) $ 19.2 Add back goodwill amortization, net of tax 3.8 3.8 ------------------------------------------------------------------------ Adjusted net income $ (0.2) $ 23.0 ======================================================================== F-8 ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In June 1998, the FASB issued 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 133, FAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities - an Amendment of FASB 133, and certain FAS 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. FAS No. 133 was effective for the Company's financial statements beginning January 1, 2001. Adoption of FAS No. 133 did not have a material effect on the Company's financial position or results of operations given the Company's limited derivative and embedded derivative holdings. The Company occasionally purchases a financial instrument that contains a derivative that is "embedded" in the instrument. In addition, the Company's insurance products are reviewed to determine whether they contain an embedded derivative. The Company assesses whether the economic characteristics of the 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. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current period earnings or the Company is unable to reliably identify and measure the embedded derivative for separation from its host contracts, the entire contract is carried on the balance sheet at fair value and is not designated as a hedging instrument. The Company did not have embedded derivatives at December 31, 2002. GUARANTEES In November 2002, the FASB issued Interpretation No.45 ("FIN 45"), "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others," to clarify accounting and disclosure requirements relating to a guarantor's issuance of certain types of guarantees, or groups of similar guarantees, even if the likelihood of the guarantor's having to make any payments under the guarantee is remote. The disclosure provisions are effective for financial statements for fiscal years ended after December 15, 2002. For certain guarantees, the interpretation also requires that guarantors recognize a liability equal to the fair value of the guarantee upon its issuance. This initial recognition and measurement provision is to be applied only on a prospective basis to guarantees issued or modified after December 31, 2002. The Company has performed an assessment of its guarantees and believes that all of its guarantees are excluded from the scope of this interpretation. In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"), Consolidation of Variable Interest Entities ("VIE"), an interpretation of Accounting Research Bulletin ("ARB") No. 51. This Interpretation addresses consolidation by business F-9 enterprises of variable interest entities, which have one or both of the following characteristics: a) insufficient equity investment at risk, or b) insufficient control by equity investors. This guidance is effective for VIEs created after January 31, 2003 and for existing VIEs as of July 1, 2003. An entity with variable interests in VIEs created before February 1, 2003 shall apply the guidance no later than the beginning of the first interim or annual reporting period beginning after June 15, 2003. In conjunction with the issuance of this guidance, the Company conducted a review of its involvement with VIEs and does not believe it has any significant investments or ownership in VIEs. FUTURE ACCOUNTING STANDARDS EMBEDDED DERIVATIVES The FASB issued FAS No.133, "Accounting for Derivative Instruments and Hedging Activities" ("FAS 133") in 1998 and continues to issue guidance for implementation through its Derivative Implementation Group ("DIG"). DIG recently released a draft of FASB Statement 133 Implementation Issue B36 "Embedded Derivatives: Bifurcation of a Debt Instrument That Incorporates Both Interest Rate Risk and Credit Risk Exposures That are Unrelated or Only Partially Related to the Creditworthiness of the Issuer of That Instrument" ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or total return debt index may be determined to contain bifurcatable embedded derivatives. The required date of adoption of DIG B36 has not been determined. If the guidance is finalized in its current form, the Company has determined that certain of its existing reinsurance receivables (payables), investments or insurance products contain embedded derivatives that may require bifurcation. The Company has not yet completed its evaluation of the potential impact, if any, on its consolidated financial positions, results of operations, or cash flows. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year classifications. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, money market instruments and other debt issues with a maturity of 90 days or less when purchased. F-10 INVESTMENTS All of the Company's fixed maturity and equity securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized gains and losses on these securities are included directly in shareholder's equity, after adjustment for related charges in deferred policy acquisition costs, value of business acquired, and deferred income taxes. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis in accordance with FAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities." Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss is accounted for as a realized loss. Realized capital gains and losses on all other investments are reflected in the Company's results of operations. Unrealized capital gains and losses on all other investments are reflected in shareholder's equity, net of related income taxes. Purchases and sales of fixed maturities and equity securities (excluding private placements) are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Fair values for fixed maturity securities are obtained from independent pricing services or broker/dealer quotations. Fair values for privately placed bonds are determined using a matrix-based model. The matrix-based model considers the level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. The fair values for equity securities are based on quoted market prices. For equity securities not actively traded, estimated fair values are based upon values of issues of comparable yield and quality or conversion value where applicable. F-11 The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company's guidelines to generate additional income. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. Reverse dollar repurchase agreement and reverse repurchase agreement transactions are accounted for as collateralized borrowings, where the amount borrowed is equal to the sales price of the underlying securities. The investment in mutual funds represents an investment in mutual funds managed by the Company, and is carried at fair value. Mortgage loans on real estate are reported at amortized cost less impairment writedowns. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable the Company 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 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 the impaired loans is reduced by establishing a permanent writedown charged to realized loss. Policy loans are carried at unpaid principal balances, net of impairment reserves. Short-term investments, consisting primarily of money market instruments and other fixed maturity securities issues purchased with an original maturity of 91 days to one year, are considered available for sale and are carried at fair value, which approximates amortized cost. On occasion, the Company sells call options written on underlying securities that are carried at fair value. Changes in fair value of these options are recorded in net realized capital gains or losses. DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED Deferred Policy Acquisition Costs ("DAC") is an asset, which represents certain costs of acquiring certain insurance business, which are deferred and amortized. These costs, all of which vary with and are primarily related to the production of new and renewal business, consist principally of commissions, certain underwriting and contract issuance expenses, and certain agency expenses. Value of Business Acquired ("VOBA") is an asset, which represents the present value of estimated net cash flows embedded in the Company's contracts, which existed at the time the Company was acquired by ING. DAC and VOBA are evaluated for recoverability at each balance sheet date and these assets would be reduced to the extent that gross profits are inadequate to recover the asset. F-12 The amortization methodology varies by product type based upon two accounting standards: FAS No. 60, "Accounting and Reporting by Insurance Enterprises" ("FAS No. 60") and FAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and Realized Gains and Losses from the Sale of Investments" ("FAS No. 97"). Under FAS No. 60, acquisition costs for traditional life insurance products, which primarily include whole life and term life insurance contracts, are amortized over the premium payment period in proportion to the premium revenue recognition. Under FAS No. 97, acquisition costs for universal life and investment-type products, which include universal life policies and fixed and variable deferred annuities, are amortized over the life of the blocks of policies (usually 25 years) in relation to the emergence of estimated gross profits from surrender charges, investment margins, mortality and expense margins, asset-based fee income, and actual realized gains (losses) on investments. Amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. Activity for the year-ended December 31, 2002 within VOBA was as follows: (Millions) ------------------------------------------------------------------- Balance at December 31,2001 $ 20.2 Adjustment for FAS No. 115 (5.1) Additions (3.3) Interest accrued at 7% 1.3 Amortization (4.6) ------------------------------------------------------------------- Balance at December 31,2002 $ 8.5 =================================================================== The estimated amount of VOBA to be amortized, net of interest, over the next five years is $3.0 million, $2.0 million, $1.5 million, $1.5 million and $1.1 million and $1.0 million for the years 2003, 2004, 2005, 2006 and 2007, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results. As part of the regular analysis of DAC/VOBA, at the end of third quarter 2002, the Company unlocked its assumptions by resetting its near term and long-term assumptions for the separate account returns to 9% (gross before fund management fees and mortality and expense and other policy charges), reflecting a blended return of equity and other sub-accounts. This unlocking adjustment was primarily driven by the sustained downturn in the equity markets and revised expectations for future returns. For the year ended December 31, 2002, the Company recorded an acceleration of DAC/VOBA amortization totaling $91.5 million before tax, or $59.5 million, net of $32.0 million of federal income tax benefit. POLICY LIABILITIES AND ACCRUALS Reserves for immediate annuities with life contingent payout contracts are computed on the basis of assumed investment yield, mortality, and expenses, including a margin for adverse deviations. Such assumptions generally vary by plan, year of issue and policy duration. Reserve interest rates range from 3.0% to 3.5% for all years presented. Investment yield is based on the Company's experience. F-13 Mortality and withdrawal rate assumptions are based on relevant Company experience and are periodically reviewed against both industry standards and experience. Other policyholders' funds include reserves for deferred annuity investment contracts and immediate annuities without life contingent payouts. Reserves on such contracts are equal to cumulative deposits less charges and withdrawals plus credited interest thereon (rates range from 2.4% to 11.0% for all years presented) net of adjustments for investment experience that the Company is entitled to reflect in future credited interest. REVENUE RECOGNITION For certain annuity contracts, charges assessed against policyholders' funds for the cost of insurance, surrender, expenses, actuarial margin and other fees are recorded as revenue as charges are assessed against policyholders. Other amounts received for these contracts are reflected as deposits and are not recorded as revenue. Related policy benefits are recorded in relation to the associated premiums or gross profit so that profits are recognized over the expected lives of the contracts. When annuity payments with life contingencies begin under contracts that were initially investment contracts, the accumulated balance in the account is treated as a single premium for the purchase of an annuity and reflected as an offsetting amount in both premiums and current and future benefits in the Consolidated Income Statement. SEPARATE ACCOUNTS Separate Account assets and liabilities generally represent funds maintained to meet specific investment objectives of contractholders who bear the investment risk, subject, in some cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contractholders. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate Account assets supporting variable options under universal life and annuity contracts are invested, as designated by the contractholder or participant under a contract (who bears the investment risk subject, in limited cases, to minimum guaranteed rates) in shares of mutual funds which are managed by the Company, or other selected mutual funds not managed by the Company. Separate Account assets are carried at fair value. At December 31, 2002 and 2001, unrealized gains of $133.4 million and of $6.9 million, respectively, after taxes, on assets supporting a guaranteed interest option are reflected in shareholder's equity. Separate Account liabilities are carried at fair value, except for those relating to the guaranteed interest option. Reserves relating to the guaranteed interest option are maintained at fund value and reflect interest credited at rates ranging from 2.4% to 11.0% in 2002 and 2.4% to 14.0% in 2001. F-14 Separate Account assets and liabilities are shown as separate captions in the Consolidated Balance Sheets. Deposits, investment income and net realized and unrealized capital gains and losses of the Separate Accounts are not reflected in the Consolidated Financial Statements (with the exception of realized and unrealized capital gains and losses on the assets supporting the guaranteed interest option). The Consolidated Statements of Cash Flows do not reflect investment activity of the Separate Accounts. REINSURANCE The Company utilizes indemnity reinsurance agreements to reduce its exposure to large losses in all aspects of its insurance business. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. The Company evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Balance Sheets. INCOME TAXES The Company is taxed at regular corporate rates after adjusting income reported for financial statement purposes for certain items. Deferred income tax expenses/benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. F-15
2. INVESTMENTS Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2002 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 207.3 $ 2.3 $ 0.1 $ 209.5 U.S. corporate securities: Public utilities 335.7 15.5 1.9 349.3 Other corporate securities 3,012.0 178.7 7.8 3,182.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 3,347.7 194.2 9.7 3,532.2 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 64.8 2.9 - 67.7 Other 163.8 12.2 1.2 174.8 ----------------------------------------------------------------------------------------------------------- Total foreign securities 228.6 15.1 1.2 242.5 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 641.7 12.0 0.2 653.5 Other asset-backed securities 294.8 7.0 3.1 298.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 4,720.1 230.6 14.3 4,936.4 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $4,720.1 $ 230.6 $ 14.3 $ 4,936.4 =========================================================================================================== F-16
Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2001 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 132.1 $ 0.5 $ 3.4 $ 129.2 U.S. corporate securities: Public utilities 39.8 0.3 1.4 38.7 Other corporate securities 1,111.8 15.2 10.1 1,116.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 1,151.6 15.5 11.5 1,155.6 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Total foreign securities 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 167.0 3.6 0.9 169.7 Other asset-backed securities 388.2 7.2 1.7 393.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 1,982.5 30.1 17.7 1,994.9 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $1,982.5 $ 30.1 $ 17.7 $ 1,994.9 ===========================================================================================================
The amortized cost and fair value of total fixed maturities for the year-ended December 31, 2002 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called, or prepaid. (Millions) Amortized Cost Fair Value ------------------------------------------------------------------------ Due to mature: One year or less $ - $ - After one year through five years 401.0 419.7 After five years through ten years 1,681.3 1,773.1 After ten years 1,701.3 1,791.4 Mortgage-backed securities 641.7 653.5 Other asset-backed securities 294.8 298.7 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Fixed maturities $4,720.1 $4,936.4 ======================================================================== At December 31, 2002 and 2001, fixed maturities with carrying values of $6.5 million and $6.9 million, respectively, were on deposit as required by regulatory authorities. The Company did not have any investments in a single issuer, other than obligations of the U.S. government, with a carrying value in excess of 10% of the Company's shareholder's equity at December 31, 2002. F-17 Beginning in April 2001, the Company entered into reverse dollar repurchase agreement and reverse repurchase agreement transactions to increase its return on investments and improve liquidity. These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. The dollar rolls and reverse repurchase agreements are accounted for as short-term collateralized financings and the repurchase obligation is reported on the Consolidated Balance Sheets. The repurchase obligation totaled $40.0 and $3.9 million at December 31, 2002 and 2001, respectively. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was not material at December 31, 2001. The Company believes the counterparties to the dollar roll and reverse repurchase agreements are financially responsible and that the counterparty risk is immaterial. During 2002, the Company determined that thirteen fixed maturities had other than temporary impairments. As a result, at December 31, 2002, the Company recognized a pre-tax loss of $8.9 million to reduce the carrying value of the fixed maturities to their combined fair value of $123.5 million. During 2001, the Company determined that ten fixed maturities had other than temporary impairments. As a result, at December 31, 2001, the Company recognized a pre-tax loss of $0.7 million to reduce the carrying value of the fixed maturities to their fair value of $0.07 million. 3. FINANCIAL INSTRUMENTS ESTIMATED FAIR VALUE The following disclosures are made in accordance with the requirements of FAS No. 107, "Disclosures about Fair Value of Financial Instruments." FAS No. 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, 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. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. FAS No. 107 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. F-18 The following valuation methods and assumptions were used by the Company in estimating the fair value of the above financial instruments: FIXED MATURITIES SECURITIES: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices. The fair values for marketable bonds without an active market are obtained through several commercial pricing services which provide the estimated fair values. Fair values of privately placed bonds are determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Fair values for privately placed bonds are determined through consideration of factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in their relevant market. EQUITY SECURITIES: Fair values of these securities are based upon quoted market value. MORTGAGE LOANS ON REAL ESTATE: The fair values for mortgage loans on real estate are estimated using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS: The carrying amounts for these assets approximate the assets' fair values. ASSETS HELD IN SEPARATE ACCOUNTS: Assets held in separate accounts are reported at the quoted fair values of the individual securities in the separate accounts. SURPLUS NOTES: Estimated fair value of the Company's surplus notes were based upon discounted future cash flows using a discount rate approximating the current market value. INVESTMENT CONTRACT LIABILITIES (INCLUDED IN FUTURE POLICY BENEFITS AND CLAIMS RESERVES): SUPPLEMENTARY CONTRACTS AND IMMEDIATE ANNUITIES: Estimated fair values of the Company's 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 Company would incur to extinguish the liability. LIABILITIES RELATED TO SEPARATE ACCOUNTS: Liabilities related to separate accounts are reported at full account value in the Company's historical balance sheet. Estimated fair values of separate account liabilities are equal to their carrying amount. F-19 The carrying values and estimated fair values of certain of the Company's financial instruments at December 31, 2002 and 2001 were as follows:
2002 2001 -------------------------------------------------------------------------------------------------------- Carrying Fair Carrying Fair (Millions) Value Value Value Value -------------------------------------------------------------------------------------------------------- Assets: Fixed maturities $ 4,936.4 $4,936.4 $ 1,994.9 $ 1,994.9 Equity securities 19.0 19.0 - - Mortgage loans on real estate 482.4 522.2 213.9 219.2 Policy loans 16.0 16.0 14.8 14.8 Cash and short-term investments 150.7 150.7 205.8 205.8 Assets held in separate accounts 11,029.3 11,029.3 10,958.2 10,958.2 Liabilities: Surplus notes (170.0) (260.0) (245.0) (358.1) Investment contract liabilities: Deferred annuities (5,128.0) (4,802.9) (2,155.3) (1,976.7) Supplementary contracts and immediate annuities (8.0) (8.0) (7.1) (7.1) Liabilities related to separate accounts (11,029.3) (11,029.3) (10,958.2) (10,958.2) --------------------------------------------------------------------------------------------------------
Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. F-20 4. NET INVESTMENT INCOME Sources of net investment income were as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------- Fixed maturities $ 185.6 $ 83.7 $ 55.3 Mortgage loans 19.6 11.2 7.8 Policy loans 0.6 0.8 0.5 Short term investments and cash equivalents 2.6 2.6 2.3 Other 0.4 0.6 0.7 ------------------------------------------------------------------------- Gross investment income 208.8 98.9 66.6 Less: investment expenses 11.1 4.5 2.5 ------------------------------------------------------------------------- Net investment income $ 197.7 $ 94.4 $ 64.1 ========================================================================= 5. DIVIDEND RESTRICTIONS AND SHAREHOLDER'S EQUITY The ability of Golden American to pay dividends to the Parent is restricted. Prior approval of insurance regulatory authorities is required for payment of dividends to the stockholder which exceed an annual limit. During 2002, Golden American cannot pay dividends to Equitable Life without prior approval of statutory authorities. Golden American did not pay common stock dividends during 2002, 2001, or 2000. The Department recognizes as net income and capital and surplus those amounts determined in conformity with statutory accounting practices prescribed or permitted by the Department, which differ in certain respects from accounting principles generally accepted in the United States. Statutory net (loss) income was $(303.0) million, $(156.4) million and $(71.1) million for the years ended December 31, 2002, 2001, and 2000, respectively. Statutory capital and surplus was $424.9 million and $451.6 million as of December 31, 2002 and 2001, respectively. As of December 31, 2002, the Company does not utilize any statutory accounting practices, which are not prescribed by state regulatory authorities that, individually or in the aggregate, materially affect statutory capital and surplus. For 2001, the Company was required to implement statutory accounting changes ("Codification") ratified by the National Association of Insurance Commissioners ("NAIC") and state insurance departments. The cumulative effect of Codification to the Company's statutory surplus as of January 1, 2001 was a decrease of $5.9 million. The Company maintains a $40.0 million reciprocal loan agreement with ING AIH (refer to Note 10), a perpetual $75.0 million revolving note facility with Bank of New York and a $75.0 million revolving note facility with SunTrust Bank which expires on July 31, 2003. 6. CAPITAL GAINS AND LOSSES ON INVESTMENT OPERATIONS Realized capital gains or losses are the difference between the carrying value and sale proceeds of specific investments sold. Net realized capital (losses) gains on investments were as follows: F-21
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 -------------------------------------------------------------------------------------- Fixed maturities $ 4.2 $ (4.9) $ (6.3) Equity securities - (1.6) (0.2) Mortgage loans on real estate - - (0.1) -------------------------------------------------------------------------------------- Pretax realized capital gains (losses) $ 4.2 $ (6.5) $ (6.6) ====================================================================================== After-tax realized capital gains (losses) $ 2.7 $ (4.2) $ (4.3) ======================================================================================
Proceeds from the sale of total fixed maturities and the related gross gains and losses were as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Proceeds on sales $ 7,297.1 $ 880.7 $ 205.1 Gross gains 76.8 6.9 0.2 Gross losses 72.6 11.8 6.5 Changes in shareholder's equity related to changes in accumulated other comprehensive income were as follows: (Millions) 2002 2001 2000 -------------------------------------------------------------------------- Fixed maturities $ 204.0 $18.4 $12.4 Equity securities (3.9) - - DAC/VOBA (202.8) (8.4) (10.4) -------------------------------------------------------------------------- (2.7) 10.0 2.0 Increase (decrease) in deferred income taxes (1.0) 2.1 (3.1) -------------------------------------------------------------------------- Net changes in accumulated other comprehensive income (loss) $ (1.7) $ 7.9 $ 5.1 -------------------------------------------------------------------------- F-22 Shareholder's equity included the following accumulated other comprehensive income (loss), at December 31: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Net unrealized capital gains (losses): Fixed maturities $ 216.3 $ 12.3 $ (6.1) Equity securities (3.9) - - DAC/VOBA (209.2) (6.4) 2.0 --------------------------------------------------------------------------- 3.2 5.9 (4.1) Deferred income taxes 1.1 2.1 - --------------------------------------------------------------------------- Net accumulated other comprehensive income (loss) $ 2.1 $ 3.8 $ (4.1) =========================================================================== Changes in accumulated other comprehensive income related to changes in unrealized gains (losses) on securities, were as follows: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Unrealized holding gains (losses) arising $ (8.7) $ 11.1 $ 6.9 the year (1) Less: reclassification adjustment for gains (losses) and other items included in net income (2) 7.0 (3.2) (1.8) --------------------------------------------------------------------------- Net unrealized gains (losses) on securities $ (1.7) $ 7.9 $ 5.1 =========================================================================== (1) Pretax unrealized holding gains (losses) arising during the year were $13.4 million, $17.1 million and $10.6 million for the years ended December 31, 2002, 2001 and 2000, respectively. (2) Pretax reclassification adjustments for gains (losses) and other items included in net income were $10.8 million, $(4.9) million and $(2.8) million for the years ended December 31, 2002, 2001 and 2000, respectively. F-23 7. SEVERANCE In December 2001, ING announced its intentions to further integrate and streamline the U.S. based operations of ING Americas, (which includes the Company), in order to build a more customer-focused organization. In connection with these actions, the Company recorded a charge of $4.9 million pretax. The severance portion of this charge ($4.8 million pretax) is based on a plan to eliminate 260 positions (primarily operations, information technology and other administrative/staff support personnel). Severance actions are expected to be substantially complete by March 31, 2003. The facilities portion ($.1 million pretax) of the charge represents the amount to be incurred by the Company to terminate a contractual lease obligation. Activity for the year ended December 31, 2002 within the severance liability and positions eliminated related to such actions were as follows: (Millions) Severance Liability Positions --------------------------------------------------------------------- Balance at December 31, 2001 $ 4.8 252 Actions taken (3.4) (194) --------------------------------------------------------------------- Balance at December 31, 2002 $ 1.4 58 ===================================================================== 8. INCOME TAXES Starting in 2002, Golden American Life Insurance Company joins in the filing of a consolidated federal income tax return with its parent, Equitable Life and other affiliates. The Company has a tax allocation agreement with Equitable Life whereby the Company is charged for taxes it would have incurred were it not a member of the consolidated group and is credited for losses at the statutory tax rate. Prior to joining the Equitable Life consolidated group, the Company was the parent of a different consolidated group. At December 31, 2002, the Company has net operating loss carryforwards of approximately $369.2 million for federal income tax purposes which are available to offset future taxable income. If not used, these carryforwards will expire between 2011 and 2016. Income tax expense (benefit) from continuing operations included in the consolidated financial statements are as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Current taxes (benefits): Federal $ (98.2) $ 0.6 $ (0.1) --------------------------------------------------------------------------- Total current taxes (benefits) (98.2) 0.6 (0.1) --------------------------------------------------------------------------- Deferred taxes (benefits): Federal 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total deferred taxes (benefits) 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total $ (12.5) $ 0.1 $ 13.2 ============================================================================ F-24 Income taxes were different from the amount computed by applying the federal income tax rate to income from continuing operations before income taxes for the following reasons:
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------------------ Income before income taxes $ (42.2) $ (3.9) $ 32.4 Tax rate 35% 35% 35% ------------------------------------------------------------------------------------ Income tax at federal statutory rate (14.8) (1.4) 11.3 Tax effect of: Goodwill amortization - 1.0 1.0 Meals and entertainment 0.6 0.5 0.3 Other 1.7 - 0.6 ------------------------------------------------------------------------------------ Income tax expense (benefit) $ (12.5) $ 0.1 $ 13.2 ------------------------------------------------------------------------------------
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are presented below:
(Millions) 2002 2001 ------------------------------------------------------------------------------------ Deferred tax assets: Operations and capital loss carryforwards $ 125.6 $ 121.7 Future policy benefits 214.1 176.3 Goodwill 11.1 - Investments 0.2 0.1 ------------------------------------------------------------------------------------ 351.0 298.1 Deferred tax liabilities: Goodwill - (3.5) Unrealized gains on investments (1.1) (2.1) Deferred policy acquisition cost (254.8) (222.8) Value of purchased insurance in force (5.0) (6.9) Other (169.9) (75.4) ------------------------------------------------------------------------------------ Deferred tax liability before allowance (430.8) (310.7) ------------------------------------------------------------------------------------ Valuation allowance - - ------------------------------------------------------------------------------------ Net deferred income tax liability $ (79.8) $ (12.6) ====================================================================================
The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. F-25 9. BENEFIT PLANS DEFINED BENEFIT PLANS Prior to December 31, 2001, the Company's employees were covered by the ING Retirement Plan for Employees of Equitable Life ("Equitable Plan"), a qualified, defined contribution pension plan. The Company was allocated its share of the pension liability associated with employees. As of December 31, 2001, the qualified pension benefit plans of certain United States subsidiaries of ING North America Insurance Corporation ("ING North America"), including Equitable Life, were merged into the ING Americas Retirement Plan. The Company transferred its pension liabilities to the Parent at that date. In exchange for these liabilities, the Company received a capital contribution, net of taxes, from the Parent. The costs allocated to the Company for its members' participation in the ING Pension Plan were $3.0 million for 2002. The following tables summarize the benefit obligations and the funded status for pension benefits related to the Equitable Plan for the two-year period ended December 31, 2001: (Millions) 2001 ------------------------------------------------------------------------------ Change in benefit obligation: Benefit obligation at January 1 $ 7.9 Service cost 2.0 Interest cost 0.8 Actuarial (gain) loss (2.7) Plan Amendments (0.2) Transfer of benefit obligation to the Parent (7.8) ---------------------- Benefit obligation at December 31 $ - ====================== Funded status: Funded status at December 31 prior to the transfer of the benefit obligation to the Parent $ (7.8) Unrecognized past service cost (1.1) Unrecognized net loss - Transfer of the funded status to the Parent 8.9 ---------------------- Net amount recognized $ - ====================== Prior to the merger of the qualified benefit plans of ING's U.S. subsidiaries at December 31, 2001, Equitable Life, held the plan assets. The weighted-average assumptions used in the measurement of the Company's' December 31, 2001 benefit obligation, prior to the merger of the qualified benefit plans of ING, follows: 2001 ------------------------------------------------------------------------------ Discount rate 7.50% Expected return on plan assets 9.25 Rate of compensation increase 4.50 F-26 The following table provides the net periodic benefit cost for the fiscal years 2001 and 2000: Year Ended December 31, 2001 2000 ------------------------------------------------------------------------ (MILLIONS) Service cost $ 2.0 $ 1.6 Interest cost 0.8 0.5 Unrecognized past service cost - - ------------------------------------ Net periodic benefit cost $ 2.8 $ 2.1 ==================================== There were no gains or losses resulting from curtailments or settlements during 2001 or 2000. 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 $0 as of December 31, 2001. 10. RELATED PARTY TRANSACTIONS OPERATING AGREEMENTS: The Company has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: o Resources and services are provided to Security Life of Denver Insurance Company ("SLDIC) and Southland Life Insurance Company ("SLIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, were $4.2 million, $0.3 million and $0.3 million, respectively for SLDIC and $1.0 million, $0.1 million and $0.1 million, respectively for SLIC. o Underwriting and distribution agreement with Directed Services, Inc. ("DSI"), for the variable insurance products issued by the Company. DSI is authorized to enter into agreements with broker/dealers to distribute the Company's' variable products and appoint representatives of the broker/dealers as agents. For the years ended December 31, 2002, 2001 and 2000 commission expenses were incurred in the amounts of $282.9 million, $229.7 million, and $208.9 million, respectively. o Asset management agreement with ING Investment Management LLC ("IIM"), in which IIM provides asset management and accounting services. The Company records a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $11.0 million, $4.4 million, and $2.5 million, respectively. o Service agreement with Equitable Life in which administrative and financial related services are provided. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $0.6 million, $0.3 million, and $1.3 million, respectively. Golden American has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. F-27 The agreements are as follows: o 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, 2002, 2001, and 2000 revenue for these services was $23.7 million, $23.1 million, and $21.3 million, respectively. o Advisory, computer, and other resources and services are provided to Equitable Life and United Life & Annuity Insurance Company ("ULAIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, totaled $9.8 million, $8.2 million, and $6.2 million, respectively for Equitable Life and $0.3 million, $0.4 million and $0.6 million, respectively for ULAIC. o Expense sharing agreements with ING America Insurance Holdings, Inc. ("ING AIH") for administrative, management, financial, and information technology services, which were approved in 2001. For the years ended December 31, 2002 and 2001, Golden American incurred expenses of $41.0 million and $23.2 million, respectively. o Guaranty agreement with Equitable Life. In consideration of an annual fee, payable June 30, Equitable Life guarantees that it will make funds available, if needed, 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. No amounts were payable under this agreement as of December 31, 2002, 2001 and 2000. REINSURANCE AGREEMENTS: Golden American participates in a modified coinsurance agreement with Equitable Life, 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 $100.9 million, $224.5 million and $218.8 million for the years ended December 31, 2002, 2001, and 2000, respectively. This was offset by a decrease in policy acquisition costs deferred of $143.5 million, $257.5 million and $223.7 million, respectively, for the same periods. As at December 31, 2002, 2001 and 2000, Golden American also had a payable to Equitable Life of $7.1 million, $22.6 million and $16.3 million, respectively, due to the overpayment by Equitable Life of the cash settlement for the modified coinsurance agreement. Golden American entered into a reinsurance agreement with Security Life of Denver International, Ltd., an affiliate, covering variable annuity minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. Golden American also obtained an irrevocable letter of credit in the amount of $25 million related to this agreement. In addition, the Company obtained a standby letter of credit in the amount of $75 million. F-28 RECIPROCAL LOAN AGREEMENT: Golden American maintains a reciprocal loan agreement with ING AIH, a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which expires December 31, 2007, Golden American and ING AIH can borrow up to $40.0 million 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 $33,000, $26,000, and $481,000 for the years ended December 31, 2002, 2001 and 2000, respectively. At December 31, 2002, 2001, and 2000, Golden American did not have any borrowings or receivables from ING AIH under this agreement. SURPLUS NOTES: Golden American issued multiple 30-year surplus notes (see below table). Payment of the notes 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. Interest expense for the years ended December 31:
(Millions) ----------------------------------------------------------------------------------------------------------------------- Surplus Maturity Note Amount Affiliate Date 2002 2001 2000 ----------------------------------------------------------------------------------------------------------------------- 8.2% 50.0 *Equitable Life 12/29/29 2.0 4.1 4.1 8.0 35.0 Security Life of Denver 12/07/29 2.8 2.8 3.0 7.8 75.0 Equitable Life 09/29/29 5.8 5.8 5.8 7.3 60.0 Equitable Life 12/29/28 4.4 4.4 4.4 8.3 25.0 *Equitable Life 12/17/26 1.0 2.1 2.1 -----------------------------------------------------------------------------------------------------------------------
*Surplus notes redeemed June 28, 2002. STOCKHOLDER'S EQUITY: During 2002, 2001, and 2000, Golden American received capital contributions of $356.3 million, $196.8 million, and $115.0 million respectively. F-29 11. REINSURANCE At December 31, 2002, Golden American had reinsurance treaties with four 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 its reinsurers do not meet their obligations under the reinsurance agreements. Reinsurance ceded in force for life mortality risks were $90.7 million and $94.8 million at December 31, 2002 and 2001, respectively. At December 31, 2002 and 2001, the Company had net receivables of $196.9 million and $56.0 million, respectively for reinsurance claims, reserve credits, or other receivables from these reinsurers. At December 31, 2002 and 2001, respectively, these net receivables were comprised of the following: $36.7 and $7.8 million for claims recoverable from reinsurers; $6.3 and $3.4 million for payable for reinsurance premiums; $137.2 million and $28.8 million for reserve credits; and $24.0 million and $22.7 million for reinsured surrenders and allowances due from an unaffiliated reinsurer. Included in the accompanying consolidated financial statements, excluding the modified coinsurance agreements, are net considerations to reinsurers of $50.8 million, $30.3 million and $21.7 million and net policy benefits recoveries of $49.5 million, $21.8 million and $8.9 million for the years ended December 21, 2002, 2001 and 2000, respectively. Golden participates in a modified coinsurance agreement with an unaffiliated reinsurer. The accompanying consolidated financial statements are presented net of the effects of the treaty which increased (decreased) income by $(2.9) million, $(0.5) million and $1.7 million for the years ended December 31, 2002, 2001 and 2000, respectively. 12. COMMITMENTS AND CONTINGENT LIABILITIES LEASES For the year ended December 31, 2002 rent expense for leases was $4.6 million. The future net minimum payments under noncancelable leases for the years ended December 31, 2003 through 2007 are estimated to be $2.3 million, $2.3 million, $2.4 million, $2.4 million and $2.4 million, respectively, and $2.4 million, thereafter. The Company pays substantially all expenses associated with its leased and subleased office properties. Expenses not paid directly by the Company are paid for by an affiliate and allocated back to the Company. COMMITMENTS Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans or money market instruments at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. At December 31, 2002 and 2001, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $39.0 million and $25.2 million, respectively. The Company makes investments in limited partnerships on a subscription basis. At December 31, 2002 and 2001, the Company had to fund the subscriptions of $38.0 million and $0.0 million, respectively. F-30 LITIGATION The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. F-31
QUARTERLY DATA (UNAUDITED) 2002 (Millions) First Second Third Fourth ------------------------------------------------------------------------------------------------------ Total Revenue $ 69.4 $ 89.2 $ 141.4 $ 109.4 ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes (3.2) (16.0) (60.2) 37.2 Income taxes (benefit) (1.0) (5.5) (19.2) 13.2 ------------------------------------------------------------------------------------------------------ Income (loss) before cumulative effect of change in accounting principal (2.2) (10.5) (41.0) 24.0 Cumulative effect of change in accounting principle - - - (135.3) ------------------------------------------------------------------------------------------------------ Net income (loss) $ (2.2) $ (10.5) $ (41.0) $ (111.3) ====================================================================================================== 2001 (Millions) First Second Third Fourth ------------------------------------------------------------------------------------------------------ Total Revenue $ 72.1 $ 65.4 $ 70.1 $ 69.2 ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes 14.2 5.6 (14.3) (9.4) Income taxes 5.3 2.4 (5.6) (2.0) ------------------------------------------------------------------------------------------------------ Net income (loss) $ 8.9 $ 3.2 $ (8.7) $ (7.4) ====================================================================================================== F-32
FINANCIAL STATEMENTS Golden American Life Insurance Company Separate Account B YEAR ENDED DECEMBER 31, 2002 WITH REPORT OF INDEPENDENT AUDITORS Golden American Life Insurance Company Separate Account B Financial Statements Year ended December 31, 2002 CONTENTS Report of Independent Auditors.............................................1 Audited Financial Statements Statement of Assets and Liabilities........................................4 Statement of Operations...................................................32 Statements of Changes in Net Assets.......................................60 Notes to Financial Statements.............................................88 Report of Independent Auditors The Board of Directors and Participants Golden American Life Insurance Company We have audited the accompanying statement of assets and liabilities of Golden American Life Insurance Company Separate Account B (the "Account") as of December 31, 2002, 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. The Account is comprised of the following Divisions: The GCG Trust: The GCG Trust (continued): All Cap Internet Tollkeeper Advisor All Cap Advisor Investors Asset Allocation Growth Investors Advisor Capital Growth J.P. Morgan Fleming Small Cap Equity Capital Growth Advisor J.P. Morgan Fleming Small Cap Advisor Capital Guardian Small Cap Janus Growth and Income Capital Guardian Small Cap Advisor Janus Growth and Income Advisor Core Bond Large Cap Value Core Bond Advisor Large Cap Value Advisor Developing World Limited Maturity Bond Developing World Advisor Liquid Asset Diversified Mid-Cap Liquid Asset Advisor Diversified Mid-Cap Advisor Managed Global Emerging Markets Managed Global Advisor Equity Growth Market Manager Equity Growth Advisor Mid-Cap Growth Equity Income Mid-Cap Growth Advisor Equity Income Advisor Real Estate Equity Opportunity Real Estate Advisor Equity Opportunity Advisor Research Focus Value Research Advisor Focus Value Advisor Special Situations Fully Managed Special Situations Advisor Fully Managed Advisor Strategic Equity Fundamental Growth Focus Strategic Equity Advisor Fundamental Growth Advisor Total Return Global Franchise Total Return Advisor Global Franchise Advisor Value Equity Growth Value Equity Advisor Growth Advisor Van Kampen Growth and Income Hard Assets Van Kampen Growth and Income Advisor Hard Assets Advisor AIM Variable Insurance Funds: International Enhanced EAFE AIM V.I. Dent Demographic Trends International Enhanced EAFE Advisor AIM V.I. Growth International Equity AIM V.I. Capital Appreciation International Equity Advisor AIM V.I. Core Equity Internet Tollkeeper AIM V.I. Premier Equity
1 Alliance Variable Products Series Fund, Inc.: ING Variable Portfolios, Inc. (continued): Alliance Bernstein Value ING VP Small Company Alliance Growth and Income ING VP Value Opportunity Alliance Premier Growth ING Variable Products Trust: Fidelity(R) Variable Insurance Products Fund: ING VP Convertible Fidelity(R) VIP Growth ING VP Growth Opportunities Fidelity(R) VIP Equity-Income ING VP International Value Fidelity(R) VIP Contrafund(R) ING VP Large Company Value Fidelity(R) VIP Overseas ING VP LargeCap Growth Franklin Templeton Variable Insurance Products Trust: ING VP MagnaCap Franklin Small Cap Value Securities ING VP MidCap Opportunities Greenwich Street Series Fund: ING VP SmallCap Opportunities Greenwich Appreciation INVESCO Variable Investment Funds, Inc.: The Galaxy VIP Fund: INVESCO VIF - Financial Services Galaxy VIP Asset Allocation INVESCO VIF - Health Sciences Galaxy VIP Equity INVESCO VIF - Leisure Galaxy VIP Growth and Income INVESCO VIF - Utilities Galaxy VIP High Quality Bond Janus Aspen Series: Galaxy VIP Small Company Growth Janus Aspen Series Balanced ING GET Fund: Janus Aspen Series Flexible Income ING GET Fund - Series N Janus Aspen Series Growth ING GET Fund - Series P Janus Aspen Series Worldwide Growth ING GET Fund - Series Q Oppenheimer Variable Accounts Fund: ING GET Fund - Series R Oppenheimer Global Securities ING GET Fund - Series S Oppenheimer Strategic Bond ING GET Fund - Series T PIMCO Variable Insurance Trust: ING GET Fund - Series U PIMCO High Yield ING Partners, Inc.: PIMCO StocksPLUS Growth and Income ING Alger Growth Pioneer Variable Contracts Trust: ING American Century Small Cap Value Pioneer Equity-Income VCT ING J.P. Morgan Mid Cap Value Pioneer Fund VCT ING MFS(R)Capital Opportunities (Initial Class) Pioneer Mid-Cap Value VCT ING MFS(R)Capital Opportunities (Service Class) Pioneer Small Company VCT ING MFS(R)Global Growth ProFunds VP: ING OpCap Balanced Value ProFund VP Bull ING PIMCO Total Return ProFund VP Europe 30 ING Salomon Bros. Capital ProFund VP Small-Cap ING Salomon Bros. Investors Value Prudential Series Fund, Inc.: ING Scudder International Growth Prudential Jennison ING T. Rowe Price Growth Equity Prudential SP Jennison International Growth ING UBS Tactical Asset Allocation Putnam Variable Trust: ING Van Kampen Comstock Putnam VT Growth and Income ING Variable Insurance Trust: Putnam VT International Growth and Income ING VP Worldwide Growth Putnam VT Voyager II
2 ING VP Bond Portfolio: Travelers Series Fund Inc.: ING VP Bond Smith Barney High Income ING Variable Portfolios, Inc.: Smith Barney International All Cap Growth ING VP Growth Smith Barney Large Cap Value ING VP Index Plus LargeCap Smith Barney Money Market ING VP Index Plus MidCap UBS Series Trust: ING VP Index Plus SmallCap UBS Tactical Allocation
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, 2002, by correspondence with the 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 each of the Divisions comprising the Golden American Life Insurance Company Separate Account B at December 31, 2002, and the results of their operations and changes in their net assets for the periods disclosed in the financial statements, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP Atlanta, Georgia March 14, 2003 3 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $247,786 $176 $47,253 $246,763 $148 $341,173 --------------------------------------------------------------------------------- Total assets 247,786 176 47,253 246,763 148 341,173 LIABILITIES Payable to Golden American Life Insurance Company 46 - 12 (6) - 27 --------------------------------------------------------------------------------- Total liabilities 46 - 12 (6) - 27 --------------------------------------------------------------------------------- NET ASSETS $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= NET ASSETS Accumulation units $247,740 $176 $47,241 $246,769 $148 $341,115 Contracts in payout (annuitization) period - - - - - 31 --------------------------------------------------------------------------------- Total net assets $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= Total number of mutual fund shares 28,947,007 20,551 6,446,580 27,663,981 16,548 43,516,942 ================================================================================= Cost of mutual fund shares $326,290 $177 $55,931 $245,271 $154 $365,212 ================================================================================= SEE ACCOMPANYING NOTES.
4 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $321 $425,187 $992 $60,010 $79 $91,178 --------------------------------------------------------------------------------- Total assets 321 425,187 992 60,010 79 91,178 LIABILITIES Payable to Golden American Life Insurance Company - 62 - 10 - 19 --------------------------------------------------------------------------------- Total liabilities - 62 - 10 - 19 --------------------------------------------------------------------------------- NET ASSETS $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= NET ASSETS Accumulation units $321 $425,125 $992 $59,922 $79 $91,159 Contracts in payout (annuitization) period - - - 78 - - --------------------------------------------------------------------------------- Total net assets $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= Total number of mutual fund shares 40,778 40,927,570 95,384 9,463,043 12,488 12,304,724 ================================================================================= Cost of mutual fund shares $320 $413,399 $995 $66,565 $81 $107,329 ================================================================================= SEE ACCOMPANYING NOTES.
5 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $220 $4,363 $458 $409,709 $640 $280,956 --------------------------------------------------------------------------------- Total assets 220 4,363 458 409,709 640 280,956 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 39 - 2 --------------------------------------------------------------------------------- Total liabilities - 1 - 39 - 2 --------------------------------------------------------------------------------- NET ASSETS $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= NET ASSETS Accumulation units $220 $4,362 $458 $409,087 $640 $280,954 Contracts in payout (annuitization) period - - - 583 - - --------------------------------------------------------------------------------- Total net assets $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= Total number of mutual fund shares 29,088 553,027 58,036 42,151,267 65,893 28,011,556 ================================================================================= Cost of mutual fund shares $224 $4,533 $480 $478,993 $660 $375,266 ================================================================================= SEE ACCOMPANYING NOTES.
6 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED GROWTH ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR FOCUS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $34 $5,932 $48 $935,237 $894 $2,742 --------------------------------------------------------------------------------- Total assets 34 5,932 48 935,237 894 2,742 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 158 - - --------------------------------------------------------------------------------- Total liabilities - 1 - 158 - - --------------------------------------------------------------------------------- NET ASSETS $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= NET ASSETS Accumulation units $34 $5,931 $48 $934,553 $894 $2,742 Contracts in payout (annuitization) period - - - 526 - - --------------------------------------------------------------------------------- Total net assets $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= Total number of mutual fund shares 3,356 702,000 5,700 54,596,475 52,102 340,663 ================================================================================= Cost of mutual fund shares $34 $6,022 $50 $951,332 $913 $2,856 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $108 $14,672 $708 $559,968 $92 $67,762 --------------------------------------------------------------------------------- Total assets 108 14,672 708 559,968 92 67,762 LIABILITIES Payable to Golden American Life Insurance Company - 2 - (73) - 9 --------------------------------------------------------------------------------- Total liabilities - 2 - (73) - 9 --------------------------------------------------------------------------------- NET ASSETS $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= NET ASSETS Accumulation units $108 $14,670 $708 $560,041 $92 $67,731 Contracts in payout (annuitization) period - - - - - 22 --------------------------------------------------------------------------------- Total net assets $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= Total number of mutual fund shares 13,419 1,643,031 78,863 57,609,909 9,474 6,907,479 ================================================================================= Cost of mutual fund shares $113 $14,881 $702 $588,641 $97 $72,704 ================================================================================= SEE ACCOMPANYING NOTES.
7 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $97 $4,990 $165 $120,479 $254 $12,805 --------------------------------------------------------------------------------- Total assets 97 4,990 165 120,479 254 12,805 LIABILITIES Payable to Golden American Life Insurance Company - - - 2 - 3 --------------------------------------------------------------------------------- Total liabilities - - - 2 - 3 --------------------------------------------------------------------------------- NET ASSETS $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= NET ASSETS Accumulation units $97 $4,990 $165 $120,477 $254 $12,802 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= Total number of mutual fund shares 9,842 602,666 19,839 17,486,179 36,824 2,690,088 ================================================================================= Cost of mutual fund shares $95 $4,961 $166 $117,316 $254 $12,773 ================================================================================= SEE ACCOMPANYING NOTES.
8 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $53 $92,152 $297 $9,491 $511 $130,375 --------------------------------------------------------------------------------- Total assets 53 92,152 297 9,491 511 130,375 LIABILITIES Payable to Golden American Life Insurance Company - 16 - 1 - 30 --------------------------------------------------------------------------------- Total liabilities - 16 - 1 - 30 --------------------------------------------------------------------------------- NET ASSETS $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= NET ASSETS Accumulation units $53 $92,136 $297 $9,490 $511 $130,345 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= Total number of mutual fund shares 11,189 11,490,287 37,008 1,198,388 64,524 18,107,685 ================================================================================= Cost of mutual fund shares $57 $119,320 $297 $9,902 $520 $156,213 ================================================================================= SEE ACCOMPANYING NOTES.
9 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST JANUS GROWTH GCG TRUST GCG TRUST LIMITED LIQUID AND INCOME LARGE CAP LARGE CAP MATURITY GCG TRUST ASSET ADVISOR VALUE VALUE ADVISOR BOND LIQUID ASSET ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $587 $295,742 $333 $559,019 $1,023,271 $1,800 --------------------------------------------------------------------------------- Total assets 587 295,742 333 559,019 1,023,271 1,800 LIABILITIES Payable to Golden American Life Insurance Company - 54 - 78 92 - --------------------------------------------------------------------------------- Total liabilities - 54 - 78 92 - --------------------------------------------------------------------------------- NET ASSETS $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= NET ASSETS Accumulation units $587 $295,688 $333 $558,749 $1,023,108 $1,800 Contracts in payout (annuitization) period - - - 192 71 - --------------------------------------------------------------------------------- Total net assets $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= Total number of mutual fund shares 81,270 38,209,569 42,967 48,864,682 1,023,271,242 1,799,891 ================================================================================= Cost of mutual fund shares $602 $364,544 $347 $550,029 $1,023,271 $1,800 ================================================================================= SEE ACCOMPANYING NOTES.
10 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $223,101 $50 $435,524 $549 $187,637 $276 --------------------------------------------------------------------------------- Total assets 223,101 50 435,524 549 187,637 276 LIABILITIES Payable to Golden American Life Insurance Company 17 - (57) - 30 - --------------------------------------------------------------------------------- Total liabilities 17 - (57) - 30 - --------------------------------------------------------------------------------- NET ASSETS $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= NET ASSETS Accumulation units $222,985 $50 $435,520 $549 $187,529 $276 Contracts in payout (annuitization) period 99 - 61 - 78 - --------------------------------------------------------------------------------- Total net assets $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= Total number of mutual fund shares 26,911,933 5,981 59,989,440 75,620 12,534,302 18,400 ================================================================================= Cost of mutual fund shares $265,330 $51 $536,584 $558 $203,069 $278 ================================================================================= SEE ACCOMPANYING NOTES.
11 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $421,026 $326 $21,800 $56 $139,837 $78 --------------------------------------------------------------------------------- Total assets 421,026 326 21,800 56 139,837 78 LIABILITIES Payable to Golden American Life Insurance Company (9) - 6 - (15) - --------------------------------------------------------------------------------- Total liabilities (9) - 6 - (15) - --------------------------------------------------------------------------------- NET ASSETS $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= NET ASSETS Accumulation units $421,035 $326 $21,794 $56 $139,689 $78 Contracts in payout (annuitization) period - - - - 163 - --------------------------------------------------------------------------------- Total net assets $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= Total number of mutual fund shares 35,202,892 27,238 3,488,059 8,892 15,554,763 8,627 ================================================================================= Cost of mutual fund shares $624,498 $329 $29,152 $56 $139,701 $79 ================================================================================= SEE ACCOMPANYING NOTES.
12 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND GCG TRUST RETURN VALUE EQUITY GROWTH AND INCOME TOTAL RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $853,368 $955 $173,253 $107 $554,615 $990 --------------------------------------------------------------------------------- Total assets 853,368 955 173,253 107 554,615 990 LIABILITIES Payable to Golden American Life Insurance Company 102 - 14 - 7 - --------------------------------------------------------------------------------- Total liabilities 102 - 14 - 7 - --------------------------------------------------------------------------------- NET ASSETS $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= NET ASSETS Accumulation units $853,266 $955 $173,226 $107 $554,483 $990 Contracts in payout (annuitization) period - - 13 - 125 - --------------------------------------------------------------------------------- Total net assets $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= Total number of mutual fund shares 57,621,059 64,473 13,535,386 8,350 32,188,897 57,364 ================================================================================= Cost of mutual fund shares $940,003 $984 $206,816 $110 $733,160 $1,001 ================================================================================= SEE ACCOMPANYING NOTES.
13 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $11,338 $848 $27 $41 $80 $2,709 --------------------------------------------------------------------------------- Total assets 11,338 848 27 41 80 2,709 LIABILITIES Payable to Golden American Life Insurance Company 3 - - - - - --------------------------------------------------------------------------------- Total liabilities 3 - - - - - --------------------------------------------------------------------------------- NET ASSETS $11,335 $848 $27 $41 $80 $2,709 ================================================================================= NET ASSETS Accumulation units $11,335 $848 $27 $41 $80 $2,709 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $11,335 $848 $27 $41 $80 $2,709 ================================================================================= Total number of mutual fund shares 2,999,480 75,286 1,672 2,417 4,947 309,651 ================================================================================= Cost of mutual fund shares $13,467 $932 $34 $44 $87 $2,932 ================================================================================= SEE ACCOMPANYING NOTES.
14 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER FIDELITY(R) VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $4,731 $2,094 $23,216 $23,855 $4,439 $9 --------------------------------------------------------------------------------- Total assets 4,731 2,094 23,216 23,855 4,439 9 LIABILITIES Payable to Golden American Life Insurance Company 1 - 4 4 1 - --------------------------------------------------------------------------------- Total liabilities 1 - 4 4 1 - --------------------------------------------------------------------------------- NET ASSETS $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= NET ASSETS Accumulation units $4,730 $2,094 $23,212 $23,851 $4,438 $9 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= Total number of mutual fund shares 286,931 121,132 1,000,254 1,325,264 247,315 848 ================================================================================= Cost of mutual fund shares $5,706 $2,199 $24,417 $23,730 $4,720 $9 ================================================================================= SEE ACCOMPANYING NOTES.
15 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
FRANKLIN GALAXY VIP SMALL CAP GALAXY VIP GALAXY VIP HIGH VALUE GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY SECURITIES APPRECIATION ALLOCATION EQUITY INCOME BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $17 $589 $631 $487 $122 $130 --------------------------------------------------------------------------------- Total assets 17 589 631 487 122 130 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $17 $589 $631 $487 $122 $130 ================================================================================= NET ASSETS Accumulation units $17 $589 $631 $487 $122 $130 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $17 $589 $631 $487 $122 $130 ================================================================================= Total number of mutual fund shares 1,814 33,520 52,433 43,112 15,339 11,785 ================================================================================= Cost of mutual fund shares $20 $704 $875 $907 $171 $124 ================================================================================= SEE ACCOMPANYING NOTES.
16 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $57 $28,663 $142,429 $169,061 $170,561 $219,297 --------------------------------------------------------------------------------- Total assets 57 28,663 142,429 169,061 170,561 219,297 LIABILITIES Payable to Golden American Life Insurance Company - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- Total liabilities - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- NET ASSETS $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= NET ASSETS Accumulation units $57 $28,661 $143,846 $169,029 $170,526 $219,270 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= Total number of mutual fund shares 7,252 2,832,289 13,991,036 16,838,766 16,887,183 21,777,267 ================================================================================= Cost of mutual fund shares $90 $28,540 $140,492 $168,845 $169,204 $218,284 ================================================================================= SEE ACCOMPANYING NOTES.
17 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $237,964 $1,048 $39 $2 $301 $1,280 --------------------------------------------------------------------------------- Total assets 237,964 1,048 39 2 301 1,280 LIABILITIES Payable to Golden American Life Insurance Company 16 - - - - - --------------------------------------------------------------------------------- Total liabilities 16 - - - - - --------------------------------------------------------------------------------- NET ASSETS $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= NET ASSETS Accumulation units $237,948 $1,048 $39 $2 $301 $1,280 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= Total number of mutual fund shares 23,514,212 104,710 5,928 214 32,577 67,567 ================================================================================= Cost of mutual fund shares $235,664 $1,047 $43 $2 $293 $1,561 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $72 $75 $126 $593 $9 $4 --------------------------------------------------------------------------------- Total assets 72 75 126 593 9 4 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $72 $75 $126 $593 $9 $4 ================================================================================= NET ASSETS Accumulation units $72 $75 $126 $593 $9 $4 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $72 $75 $126 $593 $9 $4 ================================================================================= Total number of mutual fund shares 3,834 8,956 13,107 56,245 762 373 ================================================================================= Cost of mutual fund shares $85 $75 $131 $599 $9 $4 ================================================================================= SEE ACCOMPANYING NOTES.
18 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $7 $144 $2 $1,737 $27,365 $49,597 --------------------------------------------------------------------------------- Total assets 7 144 2 1,737 27,365 49,597 LIABILITIES Payable to Golden American Life Insurance Company - - - - 7 7 --------------------------------------------------------------------------------- Total liabilities - - - - 7 7 --------------------------------------------------------------------------------- NET ASSETS $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= NET ASSETS Accumulation units $7 $144 $2 $1,737 $27,358 $49,590 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= Total number of mutual fund shares 918 4,150 94 208,228 5,077,001 3,665,695 ================================================================================= Cost of mutual fund shares $8 $162 $2 $1,730 $32,839 $49,791 ================================================================================= SEE ACCOMPANYING NOTES.
19 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP PLUS MIDCAP SMALLCAP COMPANY OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $46 $4,590 $5,910 $4,006 $156 $1,086 --------------------------------------------------------------------------------- Total assets 46 4,590 5,910 4,006 156 1,086 LIABILITIES Payable to Golden American Life Insurance Company - 1 1 1 - - --------------------------------------------------------------------------------- Total liabilities - 1 1 1 - - --------------------------------------------------------------------------------- NET ASSETS $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= NET ASSETS Accumulation units $46 $4,589 $5,909 $4,005 $156 $1,086 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= Total number of mutual fund shares 6,680 423,812 499,540 403,834 13,756 111,346 ================================================================================= Cost of mutual fund shares $50 $4,673 $6,054 $4,041 $209 $1,335 ================================================================================= SEE ACCOMPANYING NOTES.
20 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $1,034 $9,921 $42 $958 $1,006 $12,340 --------------------------------------------------------------------------------- Total assets 1,034 9,921 42 958 1,006 12,340 LIABILITIES Payable to Golden American Life Insurance Company - 3 - - - 2 --------------------------------------------------------------------------------- Total liabilities - 3 - - - 2 --------------------------------------------------------------------------------- NET ASSETS $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= NET ASSETS Accumulation units $1,034 $9,918 $42 $958 $1,006 $12,338 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= Total number of mutual fund shares 109,462 2,638,582 4,816 120,960 160,390 1,801,417 ================================================================================= Cost of mutual fund shares $1,086 $12,343 $52 $1,116 $1,054 $14,542 ================================================================================= SEE ACCOMPANYING NOTES.
21 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $12 $30,125 $22,946 $30,564 $6,098 $7,784 --------------------------------------------------------------------------------- Total assets 12 30,125 22,946 30,564 6,098 7,784 LIABILITIES Payable to Golden American Life Insurance Company - 7 5 6 1 1 --------------------------------------------------------------------------------- Total liabilities - 7 5 6 1 1 --------------------------------------------------------------------------------- NET ASSETS $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= NET ASSETS Accumulation units $12 $30,118 $22,941 $30,558 $6,097 $7,783 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= Total number of mutual fund shares 2,752 2,840,607 2,185,295 2,222,861 715,754 697,486 ================================================================================= Cost of mutual fund shares $16 $42,110 $23,502 $32,262 $6,082 $7,988 ================================================================================= SEE ACCOMPANYING NOTES.
22 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $496 $283 $192 $3,535 $205 $16 --------------------------------------------------------------------------------- Total assets 496 283 192 3,535 205 16 LIABILITIES Payable to Golden American Life Insurance Company - - - 1 - - --------------------------------------------------------------------------------- Total liabilities - - - 1 - - --------------------------------------------------------------------------------- NET ASSETS $496 $283 $192 $3,534 $205 $16 ================================================================================= NET ASSETS Accumulation units $496 $283 $192 $3,534 $205 $16 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $496 $283 $192 $3,534 $205 $16 ================================================================================= Total number of mutual fund shares 23,270 22,071 13,244 168,746 11,665 3,487 ================================================================================= Cost of mutual fund shares $525 $273 $224 $3,639 $244 $16 ================================================================================= SEE ACCOMPANYING NOTES.
23 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO PIMCO STOCKSPLUS PIONEER PIONEER PIONEER HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $305,275 $181,641 $179 $20,067 $53,073 $3,418 --------------------------------------------------------------------------------- Total assets 305,275 181,641 179 20,067 53,073 3,418 LIABILITIES Payable to Golden American Life Insurance Company 38 4 - 3 11 1 --------------------------------------------------------------------------------- Total liabilities 38 4 - 3 11 1 --------------------------------------------------------------------------------- NET ASSETS $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= NET ASSETS Accumulation units $305,237 $181,637 $179 $20,064 $53,062 $3,417 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= Total number of mutual fund shares 42,576,723 25,044,953 11,764 1,315,882 3,571,539 376,869 ================================================================================= Cost of mutual fund shares $319,995 $240,989 $199 $21,406 $59,944 $3,947 ================================================================================= SEE ACCOMPANYING NOTES.
24 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $31,273 $15,629 $38,620 $37,756 $15,344 $1,662 --------------------------------------------------------------------------------- Total assets 31,273 15,629 38,620 37,756 15,344 1,662 LIABILITIES Payable to Golden American Life Insurance Company 8 2 8 8 3 - --------------------------------------------------------------------------------- Total liabilities 8 2 8 8 3 - --------------------------------------------------------------------------------- NET ASSETS $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= NET ASSETS Accumulation units $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= Total number of mutual fund shares 1,527,025 867,774 1,743,448 2,972,899 3,661,627 89,142 ================================================================================= Cost of mutual fund shares $32,082 $15,970 $40,061 $39,753 $15,921 $1,902 ================================================================================= SEE ACCOMPANYING NOTES.
25 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT SMITH BARNEY ALL CAP LARGE CAP MONEY INCOME VOYAGER II HIGH INCOME GROWTH VALUE MARKET --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $2,981 $1,645 $319 $201 $371 $143 --------------------------------------------------------------------------------- Total assets 2,981 1,645 319 201 371 143 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $2,981 $1,645 $319 $201 $371 $143 ================================================================================= NET ASSETS Accumulation units $2,981 $1,645 $319 $201 $371 $143 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $2,981 $1,645 $319 $201 $371 $143 ================================================================================= Total number of mutual fund shares 357,012 470,066 50,922 22,831 28,077 142,697 ================================================================================= Cost of mutual fund shares $3,378 $2,030 $533 $365 $563 $143 ================================================================================= SEE ACCOMPANYING NOTES.
26 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- ASSETS Investments in mutual funds at fair value $1,548 -------------- Total assets 1,548 LIABILITIES Payable to Golden American Life Insurance Company - -------------- Total liabilities - -------------- NET ASSETS $1,548 ============== NET ASSETS Accumulation units $1,548 Contracts in payout (annuitization) period - -------------- Total net assets $1,548 ============== Total number of mutual fund shares 159,134 ============== Cost of mutual fund shares $1,802 ============== SEE ACCOMPANYING NOTES.
27 This page is intentionally left blank. 28 This page is intentionally left blank. 29 This page is intentionally left blank. 30 This page is intentionally left blank. 31 Golden American Life Insurance Company Separate Account B Statement of Operations For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $632 $- $602 $- $- $523 ------------------------------------------------------------------------------- Total investment income 632 - 602 - - 523 Expenses: Mortality and expense risk and other charges 4,742 - 929 4,657 - 6,716 Annual administrative charges 161 - 32 159 - 248 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 286 - 32 520 - 523 Other contract charges 481 - 120 154 - 368 Amortization of deferred charges related to: Deferred sales load - - - 1 - 3 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,670 - 1,113 5,491 - 7,858 ------------------------------------------------------------------------------- Net investment income (loss) (5,038) - (511) (5,491) - (7,335) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (14,269) - (2,018) (211,562) - (87,705) Capital gains distributions 2 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(94,192) $(1) $(10,548) $(119,842) $(6) $(134,430) =============================================================================== SEE ACCOMPANYING NOTES.
32 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $9,185 $16 $- $- $228 ------------------------------------------------------------------------------- Total investment income - 9,185 16 - - 228 Expenses: Mortality and expense risk and other charges - 4,101 1 1,144 - 1,361 Annual administrative charges - 124 - 50 - 43 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 185 - 93 - 62 Other contract charges - 376 - 68 - 167 Amortization of deferred charges related to: Deferred sales load - 1 - 1 - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 4,787 1 1,356 - 1,633 ------------------------------------------------------------------------------- Net investment income (loss) - 4,398 15 (1,356) - (1,405) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - 1,692 - 1,932 - (1,645) Capital gains distributions - 545 1 - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $17,352 $13 $(7,980) $(2) $(19,999) =============================================================================== SEE ACCOMPANYING NOTES.
33 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $3 $- $5,698 $7 $437 ------------------------------------------------------------------------------- Total investment income - 3 - 5,698 7 437 Expenses: Mortality and expense risk and other charges - 19 1 6,536 1 5,459 Annual administrative charges - 1 - 217 - 191 Minimum death benefit guarantee charges - - - 3 - - Contingent deferred sales charges - - - 413 - 459 Other contract charges - 2 - 399 - 287 Amortization of deferred charges related to: Deferred sales load - - - 18 - 12 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 22 1 7,586 1 6,408 ------------------------------------------------------------------------------- Net investment income (loss) - (19) (1) (1,888) 6 (5,971) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (88) - (15,791) - (150,767) Capital gains distributions - - - 1,935 3 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (88) - (13,856) 3 (150,767) Net unrealized appreciation (depreciation) of investments (4) (170) (22) (56,537) (20) 21,921 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(277) $(23) $(72,281) $(11) $(134,817) =============================================================================== SEE ACCOMPANYING NOTES.
34 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY FOCUS FOCUS VALUE FULLY MANAGED GROWTH ADVISOR VALUE ADVISOR MANAGED ADVISOR FOCUS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14,219 $10 $- ------------------------------------------------------------------------------- Total investment income - - - 14,219 10 - Expenses: Mortality and expense risk and other charges - 33 - 13,275 1 11 Annual administrative charges - 1 - 486 - - Minimum death benefit guarantee charges - - - 1 - - Contingent deferred sales charges - 1 - 905 - - Other contract charges - 4 - 881 - 1 Amortization of deferred charges related to: Deferred sales load - - - 15 - - Premium taxes - - - 1 - - ------------------------------------------------------------------------------- Total expenses - 39 - 15,564 1 12 ------------------------------------------------------------------------------- Net investment income (loss) - (39) - (1,345) 9 (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (201) - 3,703 1 (17) Capital gains distributions - - - 10,018 8 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (201) - 13,721 9 (17) Net unrealized appreciation (depreciation) of investments - (90) (2) (34,916) (20) (114) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(330) $(2) $(22,540) $(2) $(143) =============================================================================== SEE ACCOMPANYING NOTES.
35 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $386 ------------------------------------------------------------------------------- Total investment income - - - - - 386 Expenses: Mortality and expense risk and other charges - 70 1 11,796 - 912 Annual administrative charges - 3 - 421 - 33 Minimum death benefit guarantee charges - - - - - 1 Contingent deferred sales charges - 2 - 1,183 - 39 Other contract charges - 9 - 545 - 42 Amortization of deferred charges related to: Deferred sales load - - - 5 - 1 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 84 1 13,950 - 1,028 ------------------------------------------------------------------------------- Net investment income (loss) - (84) (1) (13,950) - (642) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (154) - (524,085) - (2,333) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (154) - (524,085) - (2,333) Net unrealized appreciation (depreciation) of investments (5) (208) 6 244,425 (5) (1,937) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(446) $5 $(293,610) $(5) $(4,912) =============================================================================== SEE ACCOMPANYING NOTES.
36 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $13 $- $1,039 $2 $- ------------------------------------------------------------------------------- Total investment income - 13 - 1,039 2 - Expenses: Mortality and expense risk and other charges - 31 - 2,195 1 142 Annual administrative charges - 1 - 68 - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 205 - 3 Other contract charges - 5 - 81 - 19 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 37 - 2,549 1 169 ------------------------------------------------------------------------------- Net investment income (loss) - (24) - (1,510) 1 (169) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (285) - (18,218) - (3,259) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (285) - (18,218) - (3,259) Net unrealized appreciation (depreciation) of investments 1 29 (1) (1,709) - 32 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $(280) $(1) $(21,437) $1 $(3,396) =============================================================================== SEE ACCOMPANYING NOTES.
37 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $771 $1 $- $- $527 ------------------------------------------------------------------------------- Total investment income - 771 1 - - 527 Expenses: Mortality and expense risk and other charges - 1,619 - 47 1 1,971 Annual administrative charges - 45 - 2 - 69 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 98 - 1 - 130 Other contract charges - 165 - 6 - 226 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 1,927 - 56 1 2,396 ------------------------------------------------------------------------------- Net investment income (loss) - (1,156) 1 (56) (1) (1,869) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (2,693) - (90) - (4,040) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (2,693) - (90) - (4,040) Net unrealized appreciation (depreciation) of investments (4) (23,933) - (411) (9) (22,039) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(27,782) $1 $(557) $(10) $(27,948) =============================================================================== SEE ACCOMPANYING NOTES.
38 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST JANUS GCG TRUST GCG TRUST GCG TRUST GROWTH AND GCG TRUST LARGE CAP LIMITED LIQUID INCOME LARGE CAP VALUE MATURITY GCG TRUST ASSET ADVISOR VALUE ADVISOR BOND LIQUID ASSET ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $1 $695 $- $16,692 $14,926 $2 ------------------------------------------------------------------------------- Total investment income 1 695 - 16,692 14,926 2 Expenses: Mortality and expense risk and other charges 1 4,710 1 7,274 16,952 4 Annual administrative charges - 154 - 236 607 - Minimum death benefit guarantee charges - - - 1 4 - Contingent deferred sales charges - 343 - 650 31,673 - Other contract charges - 473 - 352 686 - Amortization of deferred charges related to: Deferred sales load - - - 7 20 - Premium taxes - - - 1 7 - ------------------------------------------------------------------------------- Total expenses 1 5,680 1 8,521 49,949 4 ------------------------------------------------------------------------------- Net investment income (loss) - (4,985) (1) 8,171 (35,023) (2) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (12,529) - 5,336 - - Capital gains distributions - - - 1,065 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (12,529) - 6,401 - - Net unrealized appreciation (depreciation) of investments (15) (66,466) (14) 9,830 - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(15) $(83,980) $(15) $24,402 $(35,023) $(2) =============================================================================== SEE ACCOMPANYING NOTES.
39 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $306 $- $- $- $6,320 $7 ------------------------------------------------------------------------------- Total investment income 306 - - - 6,320 7 Expenses: Mortality and expense risk and other charges 3,679 - 9,857 - 2,682 - Annual administrative charges 115 - 303 - 104 - Minimum death benefit guarantee charges - - 1 - - - Contingent deferred sales charges 215 - 836 - 181 - Other contract charges 267 - 578 - 184 - Amortization of deferred charges related to: Deferred sales load 7 - 6 - 5 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 4,283 - 11,581 - 3,156 - ------------------------------------------------------------------------------- Net investment income (loss) (3,977) - (11,581) - 3,164 7 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (2,654) - (502,998) - 3,631 - Capital gains distributions - - - - 1,891 2 ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (2,654) - (502,998) - 5,522 2 Net unrealized appreciation (depreciation) of investments (50,119) (2) 41,552 (9) (16,719) (2) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56,750) $(2) $(473,027) $(9) $(8,033) $7 =============================================================================== SEE ACCOMPANYING NOTES.
40 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $2,140 $- $- $- $- $- ------------------------------------------------------------------------------- Total investment income 2,140 - - - - - Expenses: Mortality and expense risk and other charges 8,315 - 411 - 3,062 - Annual administrative charges 274 - 17 - 104 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 895 - 23 - 320 - Other contract charges 398 - 53 - 184 - Amortization of deferred charges related to: Deferred sales load 1 - - - 2 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 9,883 - 504 - 3,672 - ------------------------------------------------------------------------------- Net investment income (loss) (7,743) - (504) - (3,672) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (159,946) - (1,565) - (113,239) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (159,946) - (1,565) - (113,239) - Net unrealized appreciation (depreciation) of investments 3,501 (3) (6,229) (1) 38,088 (1) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(164,188) $(3) $(8,298) $(1) $(78,823) $(1) =============================================================================== SEE ACCOMPANYING NOTES.
41 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN GCG TRUST TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND TOTAL RETURN VALUE EQUITY GROWTH AND INCOME RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $19,811 $18 $1,325 $1 $5,457 $6 ------------------------------------------------------------------------------- Total investment income 19,811 18 1,325 1 5,457 6 Expenses: Mortality and expense risk and other charges 13,476 1 3,024 - 10,153 1 Annual administrative charges 457 - 102 - 334 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 1,115 - 279 - 1,058 - Other contract charges 705 - 150 - 323 - Amortization of deferred charges related to: Deferred sales load 5 - 3 - 18 - Premium taxes 1 - - - 1 - ------------------------------------------------------------------------------- Total expenses 15,759 1 3,558 - 11,887 1 ------------------------------------------------------------------------------- Net investment income (loss) 4,052 17 (2,233) 1 (6,430) 5 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 295 1 (11,165) - (9,833) 1 Capital gains distributions 409 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 704 1 (11,165) - (9,833) 1 Net unrealized appreciation (depreciation) of investments (67,592) (29) (27,107) (3) (100,836) (12) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(62,836) $(11) $(40,505) $(2) $(117,099) $(6) =============================================================================== SEE ACCOMPANYING NOTES.
42 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $3 ------------------------------------------------------------------------------- Total investment income - - - - - 3 Expenses: Mortality and expense risk and other charges 140 11 - - - 26 Annual administrative charges 5 - - - - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges 11 - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 159 11 - - - 27 ------------------------------------------------------------------------------- Net investment income (loss) (159) (11) - - - (24) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (1,222) (108) - - - (19) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (1,222) (108) - - - (19) Net unrealized appreciation (depreciation) of investments (2,117) (102) (7) (3) (7) (241) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3,498) $(221) $(7) $(3) $(7) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
43 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $144 $- $1 $102 $11 $- ------------------------------------------------------------------------------- Total investment income 144 - 1 102 11 - Expenses: Mortality and expense risk and other charges 54 25 114 140 44 - Annual administrative charges 1 1 5 5 1 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - 4 4 1 - Other contract charges - - 8 6 - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 58 26 131 155 46 - ------------------------------------------------------------------------------- Net investment income (loss) 86 (26) (130) (53) (35) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (72) (413) (725) (1,606) (35) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (72) (413) (725) (1,606) (35) - Net unrealized appreciation (depreciation) of investments (1,016) (166) (1,237) 62 (331) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(1,002) $(605) $(2,092) $(1,597) $(401) $- =============================================================================== SEE ACCOMPANYING NOTES.
44 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP FRANKLIN GALAXY VIP GALAXY VIP HIGH SMALL CAP GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY VALUE APPRECIATION ALLOCATION EQUITY INCOME BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $10 $20 $1 $- $6 ------------------------------------------------------------------------------- Total investment income - 10 20 1 - 6 Expenses: Mortality and expense risk and other charges - 9 15 10 2 2 Annual administrative charges - 1 1 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 10 16 12 2 2 ------------------------------------------------------------------------------- Net investment income (loss) - - 4 (11) (2) 4 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (11) (192) (84) (5) 2 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (11) (192) (84) (5) 2 Net unrealized appreciation (depreciation) of investments (3) (130) (40) (126) (42) 3 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3) $(141) $(228) $(221) $(49) $9 =============================================================================== SEE ACCOMPANYING NOTES.
45 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $396 $109 $3,320 $2,458 $1,400 ------------------------------------------------------------------------------- Total investment income - 396 109 3,320 2,458 1,400 Expenses: Mortality and expense risk and other charges 1 597 3,008 2,883 2,050 1,464 Annual administrative charges - 8 (1,381) 42 36 28 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 16 95 60 52 40 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 1 621 1,722 2,985 2,138 1,532 ------------------------------------------------------------------------------- Net investment income (loss) (1) (225) (1,613) 335 320 (132) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7) 1 (70) (3) 48 (15) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7) 1 (70) (3) 48 (15) Net unrealized appreciation (depreciation) of investments (23) (538) 1,644 217 1,356 1,013 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(31) $(762) $(39) $549 $1,724 $866 =============================================================================== SEE ACCOMPANYING NOTES.
46 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $26 $- $- $- $1 $- ------------------------------------------------------------------------------- Total investment income 26 - - - 1 - Expenses: Mortality and expense risk and other charges 304 - - - 1 17 Annual administrative charges 17 - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 324 - - - 1 17 ------------------------------------------------------------------------------- Net investment income (loss) (298) - - - - (17) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 8 - - - (4) (59) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 8 - - - (4) (59) Net unrealized appreciation (depreciation) of investments 2,300 - (4) - 7 (329) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $2,010 $- $(4) $- $3 $(405) =============================================================================== SEE ACCOMPANYING NOTES.
47 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14 $- $- ------------------------------------------------------------------------------- Total investment income - - - 14 - - Expenses: Mortality and expense risk and other charges - - - 1 - - Annual administrative charges - - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 1 - - ------------------------------------------------------------------------------- Net investment income (loss) - - - 13 - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - 1 - - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - 1 - - Net unrealized appreciation (depreciation) of investments (13) - (5) (5) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(13) $- $(5) $9 $- $- =============================================================================== SEE ACCOMPANYING NOTES.
48 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $7 $4 $1,391 ------------------------------------------------------------------------------- Total investment income - - - 7 4 1,391 Expenses: Mortality and expense risk and other charges - - - 4 443 220 Annual administrative charges - - - - 16 11 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 16 33 Other contract charges - - - - 65 21 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 5 540 285 ------------------------------------------------------------------------------- Net investment income (loss) - - - 2 (536) 1,106 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - - (2,830) 134 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - - (2,830) 134 Net unrealized appreciation (depreciation) of investments - (19) - 7 (4,792) (195) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(19) $- $9 $(8,158) $1,045 =============================================================================== SEE ACCOMPANYING NOTES.
49 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX PLUS INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP MIDCAP SMALLCAP COMPANY OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $4 $11 $10 $1 $3 ------------------------------------------------------------------------------- Total investment income - 4 11 10 1 3 Expenses: Mortality and expense risk and other charges - 34 57 40 1 14 Annual administrative charges - 1 1 1 - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - 1 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 35 59 42 1 15 ------------------------------------------------------------------------------- Net investment income (loss) - (31) (48) (32) - (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (505) (505) (416) (5) (45) Capital gains distributions - - - 22 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (505) (505) (394) (5) (45) Net unrealized appreciation (depreciation) of investments (5) (104) (180) (90) (53) (250) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(640) $(733) $(516) $(58) $(307) =============================================================================== SEE ACCOMPANYING NOTES.
50 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $23 $- $- $9 $4 $99 ------------------------------------------------------------------------------- Total investment income 23 - - 9 4 99 Expenses: Mortality and expense risk and other charges 11 141 - 10 13 166 Annual administrative charges - 5 - - - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 4 - - - 8 Other contract charges - 20 - - - 16 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 11 170 - 10 13 195 ------------------------------------------------------------------------------- Net investment income (loss) 12 (170) - (1) (9) (96) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) (662) - (40) (292) (437) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (15) (662) - (40) (292) (437) Net unrealized appreciation (depreciation) of investments (53) (2,425) (10) (163) (52) (2,222) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56) $(3,257) $(10) $(204) $(353) $(2,755) =============================================================================== SEE ACCOMPANYING NOTES.
51 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $148 $- $- $40 ------------------------------------------------------------------------------- Total investment income - - 148 - - 40 Expenses: Mortality and expense risk and other charges - 408 211 389 33 58 Annual administrative charges - 12 8 12 1 2 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 8 7 10 1 2 Other contract charges - 65 18 23 5 6 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 493 244 434 40 68 ------------------------------------------------------------------------------- Net investment income (loss) - (493) (96) (434) (40) (28) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (1,185) (1,999) (4,162) (157) (205) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (1,185) (1,999) (4,162) (157) (205) Net unrealized appreciation (depreciation) of investments (4) (12,282) (590) (1,617) 16 (198) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(13,960) $(2,685) $(6,213) $(181) $(431) =============================================================================== SEE ACCOMPANYING NOTES.
52 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS JANUS ASPEN ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $8 $6 $- $21 $- $- ------------------------------------------------------------------------------- Total investment income 8 6 - 21 - - Expenses: Mortality and expense risk and other charges 2 1 1 60 1 - Annual administrative charges - - - 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 2 1 1 61 1 - ------------------------------------------------------------------------------- Net investment income (loss) 6 5 (1) (40) (1) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (3) - - (682) (6) (1) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (3) - - (682) (6) (1) Net unrealized appreciation (depreciation) of investments (29) 10 (32) (169) (38) 1 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(26) $15 $(33) $(891) $(45) $- =============================================================================== SEE ACCOMPANYING NOTES.
53 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO STOCKSPLUS PIONEER PIONEER PIONEER PIMCO HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $21,664 $5,561 $3 $124 $195 $1 ------------------------------------------------------------------------------- Total investment income 21,664 5,561 3 124 195 1 Expenses: Mortality and expense risk and other charges 4,283 3,303 1 191 584 39 Annual administrative charges 133 96 - 5 23 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 340 374 - 3 18 - Other contract charges 248 151 - 23 48 - Amortization of deferred charges related to: Deferred sales load 1 1 - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,005 3,925 1 222 673 40 ------------------------------------------------------------------------------- Net investment income (loss) 16,659 1,636 2 (98) (478) (39) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (18,706) (63,970) - (1,493) (1,011) (35) Capital gains distributions - - - - 1,087 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (18,706) (63,970) - (1,493) 76 (35) Net unrealized appreciation (depreciation) of investments (3,581) 10,124 (21) (1,359) (6,968) (577) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5,628) $(52,210) $(19) $(2,950) $(7,370) $(651) =============================================================================== SEE ACCOMPANYING NOTES.
54 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $19 ------------------------------------------------------------------------------- Total investment income - - - - - 19 Expenses: Mortality and expense risk and other charges 422 151 516 691 251 19 Annual administrative charges 19 3 17 20 8 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 20 31 58 28 12 - Other contract charges 27 6 37 82 26 - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 488 191 628 821 297 19 ------------------------------------------------------------------------------- Net investment income (loss) (488) (191) (628) (821) (297) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7,045) (1,793) (6,274) (12,816) (2,827) (30) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7,045) (1,793) (6,274) (12,816) (2,827) (30) Net unrealized appreciation (depreciation) of investments (1,022) (425) (1,582) (2,790) (897) (254) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(8,555) $(2,409) $(8,484) $(16,427) $(4,021) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
55 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL SMITH INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT BARNEY HIGH ALL CAP LARGE CAP MONEY INCOME VOYAGER II INCOME GROWTH VALUE MARKET ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $6 $- $82 $2 $18 $2 ------------------------------------------------------------------------------- Total investment income 6 - 82 2 18 2 Expenses: Mortality and expense risk and other charges 34 19 5 3 7 2 Annual administrative charges 1 1 - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - 8 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 35 20 5 3 7 10 ------------------------------------------------------------------------------- Net investment income (loss) (29) (20) 77 (1) 11 (8) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (12) (8) (33) (9) (24) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (12) (8) (33) (9) (24) - Net unrealized appreciation (depreciation) of investments (412) (431) (62) (67) (133) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(453) $(459) $(18) $(77) $(146) $(8) =============================================================================== SEE ACCOMPANYING NOTES.
56 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $5 -------------- Total investment income 5 Expenses: Mortality and expense risk and other charges 17 Annual administrative charges - Minimum death benefit guarantee charges - Contingent deferred sales charges - Other contract charges - Amortization of deferred charges related to: Deferred sales load - Premium taxes - -------------- Total expenses 17 -------------- Net investment income (loss) (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) Capital gains distributions - -------------- Net realized gain (loss) on investments and capital gains distributions (15) Net unrealized appreciation (depreciation) of investments (299) -------------- Net increase (decrease) in net assets resulting from operations $(326) ============== SEE ACCOMPANYING NOTES.
57 This page is intentionally left blank. 58 This page is intentionally left blank. 59 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $104,883 $- $4,696 $463,399 $- $422,097 Increase (decrease) in net assets: Operations: Net investment income (loss) (818) - (27) (7,708) - (7,294) Net realized gain (loss) on investments and capital gains distributions (209) - (61) (21,430) - (283,317) Net unrealized appreciation (depreciation) of investments (2,272) - (644) (46,715) - 276,874 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3,299) - (732) (75,853) - (13,737) Changes from principal transactions: Purchase payments 110,856 - 30,995 40,288 - 72,626 Contract distributions and terminations (9,054) - (753) (22,815) - (19,753) Transfer payments from (to) other Divisions (including the fixed accounts), net 95,928 - 15,035 (9,586) - 19,278 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 1 - 2 --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 197,730 - 45,278 7,888 - 72,153 --------------------------------------------------------------------------- Total increase (decrease) 194,431 - 44,546 (67,965) - 58,416 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 299,314 - 49,242 395,434 - 480,513 Increase (decrease) in net assets: Operations: Net investment income (loss) (5,038) - (511) (5,491) - (7,335) Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (94,192) (1) (10,548) (119,842) (6) (134,430) Changes from principal transactions: Purchase payments 83,489 136 11,948 22,649 150 64,429 Contract distributions and terminations (12,299) - (2,730) (16,524) - (23,540) Transfer payments from (to) other Divisions (including the fixed accounts), net (28,572) 41 (671) (34,948) 4 (45,826) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 42,618 177 8,547 (28,823) 154 (4,937) --------------------------------------------------------------------------- Total increase (decrease) (51,574) 176 (2,001) (148,665) 148 (139,367) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $247,740 $176 $47,241 $246,769 $148 $341,146 =========================================================================== SEE ACCOMPANYING NOTES.
60 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GCG TRUST GUARDIAN GCG TRUST GCG TRUST DEVELOPING GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING WORLD DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $40,000 $- $54,398 $- $11,358 Increase (decrease) in net assets: Operations: Net investment income (loss) - (857) - (422) - (408) Net realized gain (loss) on investments and capital gains distributions - (1,057) - (8,712) - (602) Net unrealized appreciation (depreciation) of investments - 2,969 - 4,320 - 668 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 1,055 - (4,814) - (342) Changes from principal transactions: Purchase payments - 45,161 - 11,440 - 33,892 Contract distributions and terminations - (3,062) - (3,183) - (956) Transfer payments from (to) other Divisions (including the fixed accounts), net - 31,839 - 13,624 - 13,862 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 73,941 - 21,882 - 46,798 ------------------------------------------------------------------------------- Total increase (decrease) - 74,996 - 17,068 - 46,456 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 114,996 - 71,466 - 57,814 Increase (decrease) in net assets: Operations: Net investment income (loss) - 4,398 15 (1,356) - (1,405) Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 17,352 13 (7,980) (2) (19,999) Changes from principal transactions: Purchase payments 85 135,019 872 11,601 81 38,230 Contract distributions and terminations - (11,442) - (4,659) - (3,572) Transfer payments from (to) other Divisions (including the fixed accounts), net 235 169,200 107 (10,428) - 18,686 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 320 292,777 979 (3,486) 81 53,344 ------------------------------------------------------------------------------- Total increase (decrease) 321 310,129 992 (11,466) 79 33,345 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $321 $425,125 $992 $60,000 $79 $91,159 =============================================================================== SEE ACCOMPANYING NOTES.
61 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST GCG TRUST EQUITY GCG TRUST EQUITY MID-CAP EMERGING EQUITY GROWTH EQUITY INCOME ADVISOR MARKETS GROWTH ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $19,953 $- $- $ 291,793 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (46) - - 814 - Net realized gain (loss) on investments and capital gains distributions - (1,106) - - (1,482) - Net unrealized appreciation (depreciation) of investments - 898 - - (822) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (254) - - (1,490) - Changes from principal transactions: - - 78,113 - Purchase payments - 305 - - (19,657) - Contract distributions and terminations - (580) - - 68,000 - Transfer payments from (to) other Divisions (including the fixed accounts), net - (19,424) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 4 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,699) - - 126,460 - ------------------------------------------------------------------------------- Total increase (decrease) - (19,953) - - 124,970 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 416,763 - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (19) (1) (1,888) 6 Net realized gain (loss) on investments and capital gains distributions - - (88) - (13,856) 3 Net unrealized appreciation (depreciation) of investments (4) - (170) (22) (56,537) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (4) - (277) (23) (72,281) (11) Changes from principal transactions: Purchase payments 136 - 2,518 468 85,631 591 Contract distributions and terminations - - (48) - (20,848) - Transfer payments from (to) other Divisions (including the fixed accounts), net 88 - 2,169 13 403 60 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 2 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 224 - 4,639 481 65,188 651 ------------------------------------------------------------------------------- Total increase (decrease) 220 - 4,362 458 (7,093) 640 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $220 $- $4,362 $458 $409,670 $640 =============================================================================== SEE ACCOMPANYING NOTES.
62 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY EQUITY OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED OPPORTUNITY ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $477,934 $- $- $- $345,651 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (7,700) - - - 7,691 - Net realized gain (loss) on investments and capital gains distributions (15,294) - - - 21,548 - Net unrealized appreciation (depreciation) of investments (50,801) - - - 1,318 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (73,795) - - - 30,557 - Changes from principal transactions: Purchase payments 75,117 - - - 146,482 - Contract distributions and terminations (21,611) - - - (26,120) - Transfer payments from (to) other Divisions (including the fixed accounts), net (17,438) - - - 148,392 - Additions to assets retained in the Account by Golden American Life Insurance Company 2 - - - 9 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 36,070 - - - 268,763 - ------------------------------------------------------------------------------- Total increase (decrease) (37,725) - - - 299,320 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 440,209 - - - 644,971 - Increase (decrease) in net assets: Operations: Net investment income (loss) (5,971) - (39) - (1,345) 9 Net realized gain (loss) on investments and capital gains distributions (150,767) - (201) - 13,721 9 Net unrealized appreciation (depreciation) of investments 21,921 - (90) (2) (34,916) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (134,817) - (330) (2) (22,540) (2) Changes from principal transactions: Purchase payments 34,448 32 3,044 23 223,105 900 Contract distributions and terminations (17,174) - (96) - (43,624) - Transfer payments from (to) other Divisions (including the fixed accounts), net (41,715) 2 3,313 27 133,166 (4) Additions to assets retained in the Account by Golden American Life Insurance Company 3 - - - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (24,438) 34 6,261 50 312,648 896 ------------------------------------------------------------------------------- Total increase (decrease) (159,255) 34 5,931 48 290,108 894 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $280,954 $34 $5,931 $48 $935,079 $894 =============================================================================== SEE ACCOMPANYING NOTES.
63 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST FUNDAMENTAL GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GROWTH FOCUS ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $1,474,980 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - (21,671) - Net realized gain (loss) on investments and capital gains distributions - - - - (652,014) - Net unrealized appreciation (depreciation) of investments - - - - 196,709 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - (476,976) - Changes from principal transactions: Purchase payments - - - - 150,918 - Contract distributions and terminations - - - - (53,998) - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - (92,035) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 3 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - 4,888 - ------------------------------------------------------------------------------- Total increase (decrease) - - - - (472,088) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 1,002,892 - Increase (decrease) in net assets: Operations: Net investment income (loss) (12) - (84) (1) (13,950) - Net realized gain (loss) on investments and capital gains distributions (17) - (154) - (524,085) - Net unrealized appreciation (depreciation) of investments (114) (5) (208) 6 244,425 (5) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (143) (5) (446) 5 (293,610) (5) Changes from principal transactions: Purchase payments 1,709 99 7,816 690 56,919 68 Contract distributions and terminations (21) - (161) - (35,962) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,197 14 7,461 13 (170,198) 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,885 113 15,116 703 (149,241) 97 ------------------------------------------------------------------------------- Total increase (decrease) 2,742 108 14,670 708 (442,851) 92 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2,742 $108 $14,670 $708 $560,041 $92 =============================================================================== SEE ACCOMPANYING NOTES.
64 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST GROWTH GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL ADVISOR HARD ASSETS ADVISOR EAFE EAFE ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $41,509 $- $- $- $194,618 Increase (decrease) in net assets: Operations: Net investment income (loss) - (662) - - - (3,180) Net realized gain (loss) on investments and capital gains distributions - (1,681) - - - (66,811) Net unrealized appreciation (depreciation) of investments - (3,365) - - - 30,006 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (5,708) - - - (39,985) Changes from principal transactions: Purchase payments - 6,781 - - - 21,029 Contract distributions and terminations - (1,927) - - - (7,978) Transfer payments from (to) other Divisions (including the fixed accounts), net - (7,446) - - - (23,623) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (2,592) - - - (10,572) ------------------------------------------------------------------------------- Total increase (decrease) - (8,300) - - - (50,557) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 33,209 - - - 144,061 Increase (decrease) in net assets: Operations: Net investment income (loss) - (642) - (24) - (1,510) Net realized gain (loss) on investments and capital gains distributions - (2,333) - (285) - (18,218) Net unrealized appreciation (depreciation) of investments (5) (1,937) 1 29 (1) (1,709) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (5) (4,912) 1 (280) (1) (21,437) Changes from principal transactions: Purchase payments 68 10,388 63 2,749 166 15,966 Contract distributions and terminations - (2,996) - (61) - (6,869) Transfer payments from (to) other Divisions (including the fixed accounts), net 29 32,064 33 2,582 - (11,244) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 97 39,456 96 5,270 166 (2,147) ------------------------------------------------------------------------------- Total increase (decrease) 92 34,544 97 4,990 165 (23,584) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $92 $67,753 $97 $4,990 $165 $120,477 =============================================================================== SEE ACCOMPANYING NOTES.
65 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST J.P. MORGAN INTERNATIONAL GCG TRUST INTERNET GCG TRUST FLEMING EQUITY INTERNET TOLLKEEPER GCG TRUST INVESTORS SMALL CAP ADVISOR TOLLKEEPER ADVISOR INVESTORS ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $21,558 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (27) - (325) - - Net realized gain (loss) on investments and capital gains distributions - (152) - (368) - - Net unrealized appreciation (depreciation) of investments - (1) - (3,000) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (180) - (3,693) - - Changes from principal transactions: Purchase payments - 3,417 - 41,981 - - Contract distributions and terminations - (36) - (2,329) - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 2,188 - 33,883 - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 5,569 - 73,535 - - ------------------------------------------------------------------------------- Total increase (decrease) - 5,389 - 69,842 - - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 5,389 - 91,400 - - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (169) - (1,156) 1 (56) Net realized gain (loss) on investments and capital gains distributions - (3,259) - (2,693) - (90) Net unrealized appreciation (depreciation) of investments - 32 (4) (23,933) - (411) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 (3,396) (4) (27,782) 1 (557) Changes from principal transactions: Purchase payments 218 7,425 42 33,925 267 5,453 Contract distributions and terminations - (281) - (3,916) - (116) Transfer payments from (to) other Divisions (including the fixed accounts), net 35 3,665 15 (1,491) 29 4,710 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 253 10,809 57 28,518 296 10,047 ------------------------------------------------------------------------------- Total increase (decrease) 254 7,413 53 736 297 9,490 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $254 $12,802 $53 $92,136 $297 $9,490 =============================================================================== SEE ACCOMPANYING NOTES.
66 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST J.P GCG TRUST MORGAN GCG TRUST JANUS GCG TRUST GCG TRUST FLEMING JANUS GROWTH AND GCG TRUST LARGE CAP LIMITED SMALL CAP GROWTH AND INCOME LARGE CAP VALUE MATURITY ADVISOR INCOME ADVISOR VALUE ADVISOR BOND ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $12,726 $- $98,545 $- $200,958 Increase (decrease) in net assets: Operations: Net investment income (loss) - (420) - (2,813) - 8,924 Net realized gain (loss) on investments and capital gains distributions - (175) - (343) - 4,818 Net unrealized appreciation (depreciation) of investments - (3,724) - (1,637) - 3,378 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (4,319) - (4,793) - 17,120 Changes from principal transactions: Purchase payments - 56,119 - 114,157 - 94,671 Contract distributions and terminations - (1,615) - (6,489) - (16,054) Transfer payments from (to) other Divisions (including the fixed accounts), net - 29,809 - 74,069 - 67,367 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 84,313 - 181,737 - 145,984 ------------------------------------------------------------------------------- Total increase (decrease) - 79,994 - 176,944 - 163,104 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 92,720 - 275,489 - 364,062 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (1,869) - (4,985) (1) 8,171 Net realized gain (loss) on investments and capital gains distributions - (4,040) - (12,529) - 6,401 Net unrealized appreciation (depreciation) of investments (9) (22,039) (15) (66,466) (14) 9,830 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from (10) (27,948) (15) (83,980) (15) 24,402 operations Changes from principal transactions: Purchase payments 462 55,155 541 90,790 307 96,571 Contract distributions and terminations - (4,880) - (11,843) - (30,028) Transfer payments from (to) other Divisions (including the fixed accounts), net 59 15,298 61 25,232 41 103,934 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 521 65,573 602 104,179 348 170,477 ------------------------------------------------------------------------------- Total increase (decrease) 511 37,625 587 20,199 333 194,879 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $511 $130,345 $587 $295,688 $333 $558,941 =============================================================================== SEE ACCOMPANYING NOTES.
67 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST LIQUID GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST ASSET MANAGED GLOBAL MID-CAP GROWTH LIQUID ASSET ADVISOR GLOBAL ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $679,666 $- $228,347 $- $1,158,061 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1,253) - (3,832) - (14,522) - Net realized gain (loss) on investments and capital gains distributions - - (98,932) - (607,476) - Net unrealized appreciation (depreciation) of investments - - 72,788 - 312,790 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1,253) - (29,976) - (309,208) - Changes from principal transactions: Purchase payments 591,523 - 58,076 - 180,227 - Contract distributions and terminations (449,815) - (10,294) - (45,653) - Transfer payments from (to) other Divisions (including the fixed accounts), net 251,363 - 4,232 - (55,138) - Additions to assets retained in the Account by Golden American Life Insurance Company 1 - 3 - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 393,072 - 52,017 - 79,437 - ------------------------------------------------------------------------------- Total increase (decrease) 391,819 - 22,041 - (229,771) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,071,485 - 250,388 - 928,290 - Increase (decrease) in net assets: Operations: Net investment income (loss) (35,023) (2) (3,977) - (11,581) - Net realized gain (loss) on investments and capital gains distributions - - (2,654) - (502,998) - Net unrealized appreciation (depreciation) of investments - - (50,119) (2) 41,552 (9) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (35,023) (2) (56,750) (2) (473,027) (9) Changes from principal transactions: Purchase payments 454,243 3,191 48,234 31 86,280 231 Contract distributions and terminations (594,093) - (12,917) - (30,288) - Transfer payments from (to) other Divisions (including the fixed accounts), net 126,567 (1,389) (5,872) 21 (75,674) 327 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (13,283) 1,802 29,446 52 (19,682) 558 ------------------------------------------------------------------------------- Total increase (decrease) (48,306) 1,800 (27,304) 50 (492,709) 549 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,023,179 $1,800 $223,084 $50 $435,581 $549 =============================================================================== SEE ACCOMPANYING NOTES.
68 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST MARKET GCG TRUST REAL ESTATE GCG TRUST RESEARCH SPECIAL MANAGER REAL ESTATE ADVISOR RESEARCH ADVISOR SITUATIONS ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $6,619 $100,303 $- $800,528 $- $5,891 Increase (decrease) in net assets: Operations: Net investment income (loss) (545) 2,682 - (11,613) - (241) Net realized gain (loss) on investments and capital gains distributions 3,429 6,128 - 2,768 - (359) Net unrealized appreciation (depreciation) of investments (3,695) (3,608) - (178,581) - (769) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (811) 5,202 - (187,426) - (1,369) Changes from principal transactions: Purchase payments (168) 23,104 - 98,910 - 12,758 Contract distributions and terminations (10) (4,974) - (32,070) - (535) Transfer payments from (to) other Divisions (including the fixed accounts), net (5,630) 2,531 - (42,232) - 7,580 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (5,808) 20,664 - 24,609 - 19,803 ------------------------------------------------------------------------------- Total increase (decrease) (6,619) 25,866 - (162,817) - 18,434 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 126,169 - 637,711 - 24,325 Increase (decrease) in net assets: Operations: Net investment income (loss) - 3,164 7 (7,743) - (504) Net realized gain (loss) on investments and capital gains distributions - 5,522 2 (159,946) - (1,565) Net unrealized appreciation (depreciation) of investments - (16,719) (2) 3,501 (3) (6,229) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (8,033) 7 (164,188) (3) (8,298) Changes from principal transactions: Purchase payments - 44,924 243 51,406 254 6,311 Contract distributions and terminations - (8,734) - (28,260) - (834) Transfer payments from (to) other Divisions (including the fixed accounts), net - 33,281 26 (75,634) 75 290 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 69,471 269 (52,488) 329 5,767 ------------------------------------------------------------------------------- Total increase (decrease) - 61,438 276 (216,676) 326 (2,531) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $- $187,607 $276 $421,035 $326 $21,794 =============================================================================== SEE ACCOMPANYING NOTES.
69 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST TOTAL GCG TRUST SITUATIONS STRATEGIC EQUITY TOTAL RETURN VALUE ADVISOR EQUITY ADVISOR RETURN ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $359,734 $- $608,868 $- $180,722 Increase (decrease) in net assets: Operations: Net investment income (loss) - (5,301) - 21,062 - (1,768) Net realized gain (loss) on investments and capital gains distributions - (127,454) - 17,228 - 265 Net unrealized appreciation (depreciation) of investments - 52,004 - (46,531) - (14,146) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (80,751) - (8,241) - (15,649) Changes from principal transactions: Purchase payments - 38,833 - 174,830 - 32,137 Contract distributions and terminations - (13,819) - (38,220) - (9,292) Transfer payments from (to) other Divisions (including the fixed accounts), net - (44,615) - 56,153 - 11,120 Additions to assets retained in the Account by Golden American Life Insurance Company - - - 4 - 1 ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,601) - 192,767 - 33,966 ------------------------------------------------------------------------------- Total increase (decrease) - (100,352) - 184,526 - 18,317 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 259,382 - 793,394 - 199,039 Increase (decrease) in net assets: Operations: Net investment income (loss) - (3,672) - 4,052 17 (2,233) Net realized gain (loss) on investments and capital gains distributions - (113,239) - 704 1 (11,165) Net unrealized appreciation (depreciation) of investments (1) 38,088 (1) (67,592) (29) (27,107) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1) (78,823) (1) (62,836) (11) (40,505) Changes from principal transactions: Purchase payments 36 15,000 61 155,432 976 24,266 Contract distributions and terminations - (9,725) - (47,311) - (9,725) Transfer payments from (to) other Divisions (including the fixed accounts), net 21 (45,983) 18 14,587 (10) 164 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 57 (40,707) 79 122,708 966 14,705 ------------------------------------------------------------------------------- Total increase (decrease) 56 (119,530) 78 59,872 955 (25,800) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $56 $139,852 $78 $853,266 $955 $173,239 =============================================================================== SEE ACCOMPANYING NOTES.
70 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST VAN KAMPEN AIM V.I. GCG TRUST VAN KAMPEN GROWTH & DENT AIM V.I. VALUE EQUITY GROWTH AND INCOME DEMOGRAPHIC AIM V.I. CAPITAL ADVISOR INCOME ADVISOR TRENDS GROWTH APPRECIATION ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $860,338 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (11,298) - (3) - - Net realized gain (loss) on investments and capital gains distributions - 30,166 - 3 - - Net unrealized appreciation (depreciation) of investments - (137,786) - (12) 18 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (118,918) - (12) 18 - Changes from principal transactions: Purchase payments - 70,829 - 404 137 - Contract distributions and terminations - (39,067) - (5) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net - (41,139) - 3,163 289 - Additions to assets retained in the Account by Golden American Life Insurance Company - 6 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (9,371) - 3,562 425 - ------------------------------------------------------------------------------- Total increase (decrease) - (128,289) - 3,550 443 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 732,049 - 3,550 443 - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (6,430) 5 (159) (11) - Net realized gain (loss) on investments and capital gains distributions - (9,833) 1 (1,222) (108) - Net unrealized appreciation (depreciation) of investments (3) (100,836) (12) (2,117) (102) (7) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2) (117,099) (6) (3,498) (221) (7) Changes from principal transactions: Purchase payments 62 44,218 960 9,229 663 24 Contract distributions and terminations - (36,216) - (233) (18) - Transfer payments from (to) other Divisions (including the fixed accounts), net 47 (68,345) 36 2,287 (19) 10 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from 109 (60,342) 996 11,283 626 34 principal transactions ------------------------------------------------------------------------------- Total increase (decrease) 107 (177,441) 990 7,785 405 27 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $107 $554,608 $990 $11,335 $848 $27 =============================================================================== SEE ACCOMPANYING NOTES.
71 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
AIM V.I. ALLIANCE ALLIANCE ALLIANCE FIDELITY(R) AIM V.I. PREMIER BERNSTEIN GROWTH AND PREMIER VIP CORE EQUITY EQUITY VALUE INCOME GROWTH GROWTH ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) (4) (3) (2) Net realized gain (loss) on investments and capital gains distributions - - (5) (3) (6) (4) Net unrealized appreciation (depreciation) of investments - - 18 41 61 36 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 11 34 52 30 Changes from principal transactions: Purchase payments - - 463 1,467 921 578 Contract distributions and terminations - - (1) (3) (1) (12) Transfer payments from (to) other Divisions (including the fixed accounts), net - - 122 155 119 97 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 584 1,619 1,039 663 ------------------------------------------------------------------------------- Total increase (decrease) - - 595 1,653 1,091 693 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 595 1,653 1,091 693 Increase (decrease) in net assets: Operations: Net investment income (loss) - - (24) 86 (26) (130) Net realized gain (loss) on investments and capital gains distributions - - (19) (72) (413) (725) Net unrealized appreciation (depreciation) of investments (3) (7) (241) (1,016) (166) (1,237) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3) (7) (284) (1,002) (605) (2,092) Changes from principal transactions: Purchase payments 41 69 1,019 3,457 942 13,555 Contract distributions and terminations - - (44) (100) (74) (197) Transfer payments from (to) other Divisions (including the fixed accounts), net 3 18 1,423 722 740 11,253 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 44 87 2,398 4,079 1,608 24,611 ------------------------------------------------------------------------------- Total increase (decrease) 41 80 2,114 3,077 1,003 22,519 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $41 $80 $2,709 $4,730 $2,094 $23,212 =============================================================================== SEE ACCOMPANYING NOTES.
72 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
FRANKLIN FIDELITY(R) FIDELITY(R) FIDELITY(R) SMALL CAP GALAXY VIP VIP VIP VIP VALUE GREENWICH ASSET EQUITY-INCOME CONTRAFUND(R) OVERSEAS SECURITIES APPRECIATION ALLOCATION ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $831 $1,387 Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (3) - - (7) 5 Net realized gain (loss) on investments and capital gains distributions (4) - - - 1 (14) Net unrealized appreciation (depreciation) of investments 63 51 - - (46) (136) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 54 48 - - (52) (145) Changes from principal transactions: Purchase payments 1,658 1,001 - - 5 105 Contract distributions and terminations (10) (2) - - (44) (76) Transfer payments from (to) other Divisions (including the fixed accounts), net 247 136 - - (17) (11) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 1,895 1,135 - - (56) 18 ------------------------------------------------------------------------------ Total increase (decrease) 1,949 1,183 - - (108) (127) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 1,949 1,183 - - 723 1,260 Increase (decrease) in net assets: Operations: Net investment income (loss) (53) (35) - - - 4 Net realized gain (loss) on investments and capital gains distributions (1,606) (35) - - (11) (192) Net unrealized appreciation (depreciation) of investments 62 (331) - (3) (130) (40) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (1,597) (401) - (3) (141) (228) Changes from principal transactions: Purchase payments 12,283 3,038 9 20 15 1 Contract distributions and terminations (287) (57) - - (5) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 11,503 675 - - (3) (377) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 23,499 3,656 9 20 7 (401) ------------------------------------------------------------------------------ Total increase (decrease) 21,902 3,255 9 17 (134) (629) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $23,851 $4,438 $9 $17 $589 $631 ============================================================================== SEE ACCOMPANYING NOTES.
73 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GALAXY VIP GALAXY VIP GALAXY VIP HIGH SMALL ING GET ING GET GALAXY VIP GROWTH AND QUALITY COMPANY FUND - FUND - EQUITY INCOME BOND GROWTH SERIES N SERIES P ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $1,071 $ 284 $78 $72 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (20) (4) 5 (1) 28 (79) Net realized gain (loss) on investments and capital gains distributions (45) (9) 1 (1) 72 - Net unrealized appreciation (depreciation) of investments (162) (14) 1 1 661 293 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (227) (27) 7 (1) 761 214 Changes from principal transactions: Purchase payments 87 48 33 9 1,687 6,196 Contract distributions and terminations (87) (11) (4) - (135) (202) Transfer payments from (to) other Divisions (including the fixed accounts), net (37) (93) 38 4 28,555 146,837 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (37) (56) 67 13 30,107 152,831 ------------------------------------------------------------------------------ Total increase (decrease) (264) (83) 74 12 30,868 153,045 ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 807 201 152 84 30,868 153,045 Increase (decrease) in net assets: Operations: Net investment income (loss) (11) (2) 4 (1) (225) (1,613) Net realized gain (loss) on investments and capital gains distributions (84) (5) 2 (7) 1 (70) Net unrealized appreciation (depreciation) of investments (126) (42) 3 (23) (538) 1,644 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (221) (49) 9 (31) (762) (39) Changes from principal transactions: Purchase payments 15 4 - 12 (8) (437) Contract distributions and terminations (33) (14) (4) (5) (792) (3,496) Transfer payments from (to) other Divisions (including the fixed accounts), net (81) (20) (27) (3) (645) (5,227) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (99) (30) (31) 4 (1,445) (9,160) ------------------------------------------------------------------------------ Total increase (decrease) (320) (79) (22) (27) (2,207) (9,199) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $487 $122 $130 $57 $28,661 $143,846 ============================================================================== SEE ACCOMPANYING NOTES.
74 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING GET ING GET ING GET ING GET ING GET FUND - FUND - FUND - FUND - FUND - ING ALGER SERIES Q SERIES R SERIES S SERIES T SERIES U GROWTH ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,904 - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,904 - - - - - ----------------------------------------------------------------------------- Total increase (decrease) 1,904 - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,904 - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 335 320 (132) (298) - - Net realized gain (loss) on investments and capital gains distributions (3) 48 (15) 8 - - Net unrealized appreciation (depreciation) of investments 217 1,356 1,013 2,300 - (4) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 549 1,724 866 2,010 - (4) Changes from principal transactions: Purchase payments 2,717 2,413 3,067 6,518 466 43 Contract distributions and terminations (2,304) (2,081) (1,591) (152) - - Transfer payments from (to) other Divisions (including the fixed accounts), net 166,163 168,470 216,928 229,572 582 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 166,576 168,802 218,404 235,938 1,048 43 ----------------------------------------------------------------------------- Total increase (decrease) 167,125 170,526 219,270 237,948 1,048 39 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $169,029 $170,526 $219,270 $237,948 $1,048 $39 ============================================================================= SEE ACCOMPANYING NOTES.
75 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING MFS(R) ING MFS(R) AMERICAN CAPITAL CAPITAL CENTURY ING J.P. OPPORTUNITIES OPPORTUNITIES ING MFS(R) ING OPCAP SMALL CAP MORGAN MID (INITIAL (SERVICE GLOBAL BALANCED VALUE CAP VALUE CLASS) CLASS) GROWTH VALUE ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) - - - Net realized gain (loss) on investments and capital gains distributions - - (2) - - - Net unrealized appreciation (depreciation) of investments - - 48 - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 44 - - - Changes from principal transactions: Purchase payments - - 625 - - - Contract distributions and terminations - - (3) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - 32 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 654 - - - ----------------------------------------------------------------------------- Total increase (decrease) - - 698 - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 698 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (17) - - - Net realized gain (loss) on investments and capital gains distributions - (4) (59) - - - Net unrealized appreciation (depreciation) of investments - 7 (329) (13) - (5) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 3 (405) (13) - (5) Changes from principal transactions: Purchase payments 2 140 717 85 66 131 Contract distributions and terminations - - (25) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 158 295 - 9 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2 298 987 85 75 131 ----------------------------------------------------------------------------- Total increase (decrease) 2 301 582 72 75 126 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2 $301 $1,280 $72 $75 $126 ============================================================================= SEE ACCOMPANYING NOTES.
76 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING SALOMON ING T. ROWE ING UBS ING PIMCO SALOMON BROS. ING SCUDDER PRICE TACTICAL TOTAL BROS. INVESTORS INTERNATIONAL GROWTH ASSET RETURN CAPITAL VALUE GROWTH EQUITY ALLOCATION ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - - - ----------------------------------------------------------------------------- Total increase (decrease) - - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 13 - - - - - Net realized gain (loss) on investments and capital gains distributions 1 - - - - - Net unrealized appreciation (depreciation) of investments (5) - - - (19) - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 - - - (19) - Changes from principal transactions: Purchase payments 585 9 4 7 163 - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net (1) - - - - 2 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 584 9 4 7 163 2 ----------------------------------------------------------------------------- Total increase (decrease) 593 9 4 7 144 2 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $593 $9 $4 $7 $144 $2 ============================================================================= SEE ACCOMPANYING NOTES.
77 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VAN ING VP ING VP ING VP KAMPEN WORLDWIDE ING VP ING VP INDEX PLUS INDEX PLUS COMSTOCK GROWTH BOND GROWTH LARGECAP MIDCAP ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $ 5,554 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (237) - - 2 (2) Net realized gain (loss) on investments and capital gains distributions - (1,558) - - (4) (5) Net unrealized appreciation (depreciation) of investments - (466) - - 21 35 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (2,261) - - 19 28 Changes from principal transactions: Purchase payments - 12,903 - - 834 684 Contract distributions and terminations - (485) - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 4,303 - - (41) 108 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 16,721 - - 793 792 ---------------------------------------------------------------------------- Total increase (decrease) - 14,460 - - 812 820 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 20,014 - - 812 820 Increase (decrease) in net assets: Operations: Net investment income (loss) 2 (536) 1,106 - (31) (48) Net realized gain (loss) on investments and capital gains distributions - (2,830) 134 - (505) (505) Net unrealized appreciation (depreciation) of investments 7 (4,792) (195) (5) (104) (180) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 (8,158) 1,045 (5) (640) (733) Changes from principal transactions: Purchase payments 1,591 15,820 11,426 51 3,070 4,161 Contract distributions and terminations (13) (673) (720) - (85) (74) Transfer payments from (to) other Divisions (including the fixed accounts), net 150 355 37,839 - 1,432 1,735 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,728 15,502 48,545 51 4,417 5,822 ---------------------------------------------------------------------------- Total increase (decrease) 1,737 7,344 49,590 46 3,777 5,089 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,737 $27,358 $49,590 $46 $4,589 $5,909 ============================================================================ SEE ACCOMPANYING NOTES.
78 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS SMALL VALUE ING VP GROWTH INTERNATIONAL SMALLCAP COMPANY OPPORTUNITY CONVERTIBLE OPPORTUNITIES VALUE ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - (1) (4) (27) - Net realized gain (loss) on investments and capital gains distributions (2) - (1) 5 (189) - Net unrealized appreciation (depreciation) of investments 55 - - 2 3 - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 51 - (2) 3 (213) - Changes from principal transactions: Purchase payments 489 - 289 146 3,287 - Contract distributions and terminations - - - - (61) - Transfer payments from (to) other Divisions (including the fixed accounts), net 140 - 11 45 2,206 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 629 - 300 191 5,432 - ---------------------------------------------------------------------------- Total increase (decrease) 680 - 298 194 5,219 - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 680 - 298 194 5,219 - Increase (decrease) in net assets: Operations: Net investment income (loss) (32) - (12) 12 (170) - Net realized gain (loss) on investments and capital gains distributions (394) (5) (45) (15) (662) - Net unrealized appreciation (depreciation) of investments (90) (53) (250) (53) (2,425) (10) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (516) (58) (307) (56) (3,257) (10) Changes from principal transactions: Purchase payments 3,269 237 981 673 6,716 52 Contract distributions and terminations (43) - (24) (11) (246) - Transfer payments from (to) other Divisions (including the fixed accounts), net 615 (23) 138 234 1,486 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,841 214 1,095 896 7,956 52 ---------------------------------------------------------------------------- Total increase (decrease) 3,325 156 788 840 4,699 42 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $4,005 $156 $1,086 $1,034 $9,918 $42 ============================================================================ SEE ACCOMPANYING NOTES.
79 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP LARGE ING VP ING VP ING VP INVESCO VIF COMPANY LARGECAP ING VP MIDCAP SMALLCAP - FINANCIAL VALUE GROWTH MAGNACAP OPPORTUNITIES OPPORTUNITIES SERVICES ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (2) (6) - (80) 5 Net realized gain (loss) on investments and capital gains distributions 2 - (8) - (918) 25 Net unrealized appreciation (depreciation) of investments 4 3 20 - 297 33 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 5 1 6 - (701) 63 Changes from principal transactions: Purchase payments 343 488 3,746 - 8,651 822 Contract distributions and terminations (1) - (117) - (133) (4) Transfer payments from (to) other Divisions (including the fixed accounts), net (191) 44 1,767 - 6,620 1,523 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 151 532 5,396 - 15,138 2,341 ---------------------------------------------------------------------------- Total increase (decrease) 156 533 5,402 - 14,437 2,404 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 156 533 5,402 - 14,437 2,404 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (9) (96) - (493) (96) Net realized gain (loss) on investments and capital gains distributions (40) (292) (437) - (1,185) (1,999) Net unrealized appreciation (depreciation) of investments (163) (52) (2,222) (4) (12,282) (590) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (204) (353) (2,755) (4) (13,960) (2,685) Changes from principal transactions: Purchase payments 575 719 7,453 16 24,037 11,708 Contract distributions and terminations (15) (40) (335) - (584) (419) Transfer payments from (to) other Divisions (including the fixed accounts), net 446 147 2,573 - 6,188 11,933 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,006 826 9,691 16 29,641 23,222 ---------------------------------------------------------------------------- Total increase (decrease) 802 473 6,936 12 15,681 20,537 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $958 $1,006 $12,338 $12 $30,118 $22,941 ============================================================================ SEE ACCOMPANYING NOTES.
80 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS INVESCO VIF INVESCO JANUS ASPEN SERIES ASPEN - HEALTH VIF - INVESCO VIF SERIES FLEXIBLE SERIES SCIENCES LEISURE - UTILITIES BALANCED INCOME GROWTH ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) 22 - 3 - - - Net realized gain (loss) on investments and capital gains distributions 16 - 4 - - - Net unrealized appreciation (depreciation) of investments (81) - (6) - - - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (43) - 1 - - - Changes from principal transactions: Purchase payments 1,234 - 325 - - - Contract distributions and terminations (55) - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 9,654 - 638 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 10,833 - 963 - - - ---------------------------------------------------------------------------- Total increase (decrease) 10,790 - 964 - - - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 10,790 - 964 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) (434) (40) (28) 6 5 (1) Net realized gain (loss) on investments and capital gains distributions (4,162) (157) (205) (3) - - Net unrealized appreciation (depreciation) of investments (1,617) 16 (198) (29) 10 (32) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (6,213) (181) (431) (26) 15 (33) Changes from principal transactions: Purchase payments 14,819 4,483 2,753 548 270 225 Contract distributions and terminations (1,044) (74) (128) (2) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net 12,206 1,869 4,625 (24) (1) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 25,981 6,278 7,250 522 268 225 ---------------------------------------------------------------------------- Total increase (decrease) 19,768 6,097 6,819 496 283 192 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $30,558 $6,097 $7,783 $496 $283 $192 ============================================================================ SEE ACCOMPANYING NOTES.
81 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN PIMCO SERIES OPPENHEIMER OPPENHEIMER STOCKSPLUS PIONEER WORLDWIDE GLOBAL STRATEGIC PIMCO HIGH GROWTH AND EQUITY-INCOME GROWTH SECURITIES BOND YIELD INCOME VCT --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $162,857 $258,484 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - - 12,879 5,699 - Net realized gain (loss) on investments and capital gains distributions (4) - - (12,967) (21,014) - Net unrealized appreciation (depreciation) of investments 64 - - 448 (20,466) - --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 58 - - 360 (35,781) - Changes from principal transactions: Purchase payments 1,166 - - 56,951 34,841 - Contract distributions and terminations (7) - - (12,056) (11,973) - Transfer payments from (to) other Divisions (including the fixed accounts), net 81 - - 28,231 (4,506) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,240 - - 73,126 18,362 - --------------------------------------------------------------------------- Total increase (decrease) 1,298 - - 73,486 (17,419) - --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,298 - - 236,343 241,065 - Increase (decrease) in net assets: Operations: Net investment income (loss) (40) (1) - 16,659 1,636 2 Net realized gain (loss) on investments and capital gains distributions (682) (6) (1) (18,706) (63,970) - Net unrealized appreciation (depreciation) of investments (169) (38) 1 (3,581) 10,124 (21) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (891) (45) - (5,628) (52,210) (19) Changes from principal transactions: Purchase payments 3,277 273 51 55,612 25,548 198 Contract distributions and terminations (141) (3) - (15,056) (10,918) - Transfer payments from (to) other Divisions (including the fixed accounts), net (9) (20) (35) 33,966 (21,848) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,127 250 16 74,522 (7,218) 198 --------------------------------------------------------------------------- Total increase (decrease) 2,236 205 16 68,894 (59,428) 179 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $3,534 $205 $16 $305,237 $181,637 $179 =========================================================================== SEE ACCOMPANYING NOTES.
82 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PIONEER PIONEER PIONEER MID-CAP SMALL PROFUND VP PROFUND VP PROFUND VP FUND VCT VALUE VCT COMPANY VCT BULL EUROPE 30 SMALL-CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (4) (3) (82) (88) (94) Net realized gain (loss) on investments and capital gains distributions 3 - (7) (640) (4,198) (1,538) Net unrealized appreciation (depreciation) of investments 20 97 49 214 83 141 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 23 93 39 (508) (4,203) (1,491) Changes from principal transactions: Purchase payments 1,074 620 857 3,580 1,157 2,754 Contract distributions and terminations (6) (6) - (153) (293) (281) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,184 4,432 42 17,664 9,651 18,986 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,252 5,046 899 21,091 10,515 21,459 --------------------------------------------------------------------------- Total increase (decrease) 2,275 5,139 938 20,583 6,312 19,968 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 2,275 5,139 938 20,583 6,312 19,968 Increase (decrease) in net assets: Operations: Net investment income (loss) (98) (478) (39) (488) (191) (628) Net realized gain (loss) on investments and capital gains distributions (1,493) 76 (35) (7,045) (1,793) (6,274) Net unrealized appreciation (depreciation) of investments (1,359) (6,968) (577) (1,022) (425) (1,582) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,950) (7,370) (651) (8,555) (2,409) (8,484) Changes from principal transactions: Purchase payments 10,991 22,661 2,180 5,734 2,797 11,484 Contract distributions and terminations (339) (1,418) (56) (1,352) (941) (4,103) Transfer payments from (to) other Divisions (including the fixed accounts), net 10,087 34,050 1,006 14,855 9,868 19,747 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 20,739 55,293 3,130 19,237 11,724 27,128 --------------------------------------------------------------------------- Total increase (decrease) 17,789 47,923 2,479 10,682 9,315 18,644 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $20,064 $53,062 $3,417 $31,265 $15,627 $38,612 =========================================================================== SEE ACCOMPANYING NOTES.
83 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PRUDENTIAL PUTNAM VT SMITH SP JENNISON PUTNAM VT INTERNATIONAL BARNEY PRUDENTIAL INTERNATIONAL GROWTH AND GROWTH AND PUTNAM VT HIGH JENNISON GROWTH INCOME INCOME VOYAGER II INCOME --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $ 7,732 $ 2,720 $- $- $- $ 446 Increase (decrease) in net assets: Operations: Net investment income (loss) (407) (126) (1) (2) (1) 44 Net realized gain (loss) on investments and capital gains distributions (5,401) (3,123) (1) (4) - (32) Net unrealized appreciation (depreciation) of investments 2,985 418 13 16 46 (32) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,823) (2,831) 11 10 45 (20) Changes from principal transactions: Purchase payments 16,595 7,856 450 488 456 - Contract distributions and terminations (945) (448) - - (1) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 25,432 4,013 (6) 106 77 (31) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 41,082 11,421 444 594 532 (56) --------------------------------------------------------------------------- Total increase (decrease) 38,259 8,590 455 604 577 (76) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 45,991 11,310 455 604 577 370 Increase (decrease) in net assets: Operations: Net investment income (loss) (821) (297) - (29) (20) 77 Net realized gain (loss) on investments and capital gains distributions (12,816) (2,827) (30) (12) (8) (33) Net unrealized appreciation (depreciation) of investments (2,790) (897) (254) (412) (431) (62) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (16,427) (4,021) (284) (453) (459) (18) Changes from principal transactions: Purchase payments 16,384 7,906 1,270 2,192 1,233 - Contract distributions and terminations (2,130) (550) (94) (25) (19) (17) Transfer payments from (to) other Divisions (including the fixed accounts), net (6,070) 696 315 663 313 (16) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 8,184 8,052 1,491 2,830 1,527 (33) --------------------------------------------------------------------------- Total increase (decrease) (8,243) 4,031 1,207 2,377 1,068 (51) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $37,748 $15,341 $1,662 $2,981 $1,645 $319 =========================================================================== SEE ACCOMPANYING NOTES.
84 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
SMITH BARNEY SMITH SMITH INTERNATIONAL BARNEY BARNEY UBS ALL CAP LARGE CAP MONEY TACTICAL GROWTH VALUE MARKET ALLOCATION -------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $455 $ 692 $156 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (1) (12) (2) Net realized gain (loss) on investments and capital gains distributions 1 13 - (4) Net unrealized appreciation (depreciation) of investments (142) (79) - 46 -------------------------------------------------- Net increase (decrease) in net assets from operations (146) (67) (12) 40 Changes from principal transactions: Purchase payments - - - 718 Contract distributions and terminations (4) (15) (241) - Transfer payments from (to) other Divisions (including the fixed accounts), net (5) (47) 318 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (9) (62) 77 747 -------------------------------------------------- Total increase (decrease) (155) (129) 65 787 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 300 563 221 787 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) 11 (8) (12) Net realized gain (loss) on investments and capital gains distributions (9) (24) - (15) Net unrealized appreciation (depreciation) of investments (67) (133) - (299) -------------------------------------------------- Net increase (decrease) in net assets from operations (77) (146) (8) (326) Changes from principal transactions: Purchase payments - - - 768 Contract distributions and terminations (3) (9) (174) (87) Transfer payments from (to) other Divisions (including the fixed accounts), net (19) (37) 104 406 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (22) (46) (70) 1,087 -------------------------------------------------- Total increase (decrease) (99) (192) (78) 761 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $201 $371 $143 $1,548 ================================================== SEE ACCOMPANYING NOTES.
85 This page is intentionally left blank. 86 This page is intentionally left blank. 87 Golden American Life Insurance Company Separate Account B Notes To Financial Statements December 31, 2002 1. ORGANIZATION Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American" or the "Company") to support the operations of variable annuity contracts ("Contracts"). The Company is an indirect wholly owned subsidiary of ING Groep, N.V., a global financial services holding company based in The Netherlands. 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 charged 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 2002, the Account had GoldenSelect Contracts, Granite PrimElite Contracts, SmartDesign Contracts, and ING Rollover Choice Contracts. GoldenSelect Contracts sold by Golden American during 2002 included DVA Plus, Access, Premium Plus, ESII, Value, Access One, Landmark, and Generations Contracts. SmartDesign Contracts included Variable Annuity ("VA") and Advantage Contracts. The Account discontinued offering DVA 80 Contracts in May 1991 and discontinued registering DVA and DVA Series 100 Contracts for sale to the public as of May 1, 2000. 88 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) 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. At December 31, 2002, the Account had 151 investment divisions (the "Divisions") 44 of which invest in independently managed mutual funds and 107 of which invest in mutual funds managed by affiliates, either Direct Services, Inc., ING Investments, LLC, or ING Life Insurance and Annuity Company. The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio" or "Fund") of various investment trusts (the "Trusts"). Investment Divisions at December 31, 2002 and related Trusts are as follows: The GCG Trust: The GCG Trust (continued): All Cap Series Global Franchise Series (S Class) ** All Cap Advisor Series ** Global Franchise Advisor Series ** Asset Allocation Growth Series Growth Series Capital Growth Series Growth Advisor Series ** Capital Growth Advisor Series ** Hard Assets Series Capital Guardian Small Cap Series Hard Assets Advisor Series ** Capital Guardian Small Cap Advisor Series ** International Enhanced EAFE Series (S Class) ** Core Bond Series International Enhanced EAFE Advisor Series ** Core Bond Advisor Series ** International Equity Series Developing World Series International Equity Advisor Series ** Developing World Advisor Series ** Internet Tollkeeper Series Diversified Mid-Cap Series Internet Tollkeeper Advisor Series ** Diversified Mid-Cap Advisor Series ** Investors Series Equity Growth Series (S Class) ** Investors Advisor Series ** Equity Growth Series Advisor Series ** J.P. Morgan Fleming Small Cap Equity Series (S Class) ** Equity Income Series J.P. Morgan Fleming Small Cap Equity Advisor Series ** Equity Income Advisor Series ** Janus Growth and Income Series Equity Opportunity Series Janus Growth and Income Advisor Series ** Equity Opportunity Series Advisor Series ** Large Cap Value Series Focus Value Series (S Class) ** Large Cap Value Advisor Series ** Focus Value Series Advisor Series ** Limited Maturity Bond Series Fully Managed Series Liquid Asset Series Fully Managed Advisor Series ** Liquid Asset Advisor Series ** Fundamental Growth Focus Series (S Class) ** Managed Global Series Fundamental Growth Advisor Series ** Managed Global Advisor Series **
89 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) The GCG Trust (continued): ING GET Fund: Mid-Cap Growth Series ING GET Fund - Series N * Mid-Cap Growth Advisor Series ** ING GET Fund - Series P * Real Estate Series ING GET Fund - Series Q ** Real Estate Advisor Series ** ING GET Fund - Series R ** Research Series ING GET Fund - Series S ** Research Advisor Series ** ING GET Fund - Series T ** Special Situations Series ING GET Fund - Series U ** Special Situations Advisor Series ** ING Partners, Inc.: Strategic Equity Series ING Alger Growth Portfolio (Service Class) ** Strategic Equity Advisor Series ** ING American Century Small Cap Value Portfolio (Service Class) ** Total Return Series ING J.P. Morgan Mid Cap Value Portfolio (Service Class) ** Total Return Advisor Series ** ING MFS(R)Capital Opportunities Portfolio (Initial Class) * Value Equity Series ING MFS(R)Capital Opportunities Portfolio (Service Class) ** Value Equity Advisor Series ** ING MFS(R)Global Growth Portfolio (Service Class) ** Van Kampen Growth and Income Series ING OpCap Balanced Value Portfolio (Service Class) ** Van Kampen Growth & Income Advisor Series ** ING PIMCO Total Return Portfolio (Service Class) ** AIM Variable Insurance Funds: ING Salomon Bros. Capital Portfolio (Service Class) ** AIM V.I. Dent Demographic Trends Fund (Class II Shares) * ING Salomon Bros. Investors Value Portfolio (Service Class) ** AIM V.I. Growth Fund (Series II) * ING Scudder International Growth Portfolio (Service Class) ** AIM V.I. Capital Appreciation Fund (Series II) ** ING T. Rowe Price Growth Equity Portfolio (Service Class) ** AIM V.I. Core Equity Fund (Series II) ** ING UBS Tactical Asset Allocation Portfolio (Service Class) ** AIM V.I. Premier Equity Fund (Series II) ** ING Van Kampen Comstock Portfolio (Service Class) ** Alliance Variable Products Series Fund, Inc.: ING Variable Insurance Trust: Alliance Bernstein Value Portfolio (Class B) * ING VP Worldwide Growth Portfolio (Service Shares) Alliance Growth and Income Portfolio (Class B) * ING VP Bond Portfolio: Alliance Premier Growth Portfolio (Class B) * ING VP Bond Portfolio (Class S Shares) ** Fidelity(R)Variable Insurance Products Fund: ING Variable Portfolios, Inc.: Fidelity(R) VIP Growth Portfolio (Service Class 2) * ING VP Growth Portfolio (S Class) ** Fidelity(R) VIP Equity-Income Portfolio (Service Class 2) * ING VP Index Plus LargeCap Portfolio (Class S) * Fidelity(R) VIP Contrafund(R)Portfolio (Service Class 2) * ING VP Index Plus MidCap Portfolio (Class S) * Fidelity(R) VIP Overseas Portfolio (Service Class 2) ** ING VP Index Plus SmallCap Portfolio (Class S) * Franklin Templeton Variable Insurance Products Trust: ING VP Small Company Portfolio (Class S) ** Franklin Small Cap Value Securities Fund (Class 2) ** ING VP Value Opportunity Portfolio (Class S) * Greenwich Street Series Fund: ING Variable Products Trust: Greenwich Appreciation Portfolio ING VP Convertible Portfolio (Class S) * The Galaxy VIP Fund: ING VP Growth Opportunities Portfolio (Service Shares) * Galaxy VIP Asset Allocation Fund ING VP International Value Portfolio (Class S) ** Galaxy VIP Equity Fund ING VP Large Company Value Portfolio (Class S) * Galaxy VIP Growth and Income Fund ING VP LargeCap Growth Portfolio (Class S) * Galaxy VIP High Quality Bond Fund ING VP MagnaCap Portfolio (Service Shares) * Galaxy VIP Small Company Growth Fund ING VP MidCap Opportunities Portfolio (Class S) **
90 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) ING Variable Products Trust (continued): ProFunds VP: ING VP SmallCap Opportunities Portfolio (Service Shares) * ProFund VP Bull * INVESCO Variable Investment Funds, Inc.: ProFund VP Europe 30 * INVESCO VIF - Financial Services Fund * ProFund VP Small-Cap * INVESCO VIF - Health Sciences Fund * Prudential Series Fund, Inc.: INVESCO VIF - Leisure Fund ** Prudential Jennison Portfolio (Class II Shares) INVESCO VIF - Utilities Fund* Prudential SP Jennison International Growth Janus Aspen Series: Portfolio (Class II Shares) Janus Aspen Series Balanced Portfolio (Service Class) ** Putnam Variable Trust: Janus Aspen Series Flexible Income Portfolio (Service Class) ** Putnam VT Growth and Income (Class IB) * Janus Aspen Series Growth Portfolio (Service Class) ** Putnam VT International Growth and Income (Class IB) * Janus Aspen Series Worldwide Growth Portfolio (Service Class) * Putnam VT Voyager Fund II (Class IB) * Oppenheimer Variable Accounts Fund: Travelers Series Fund Inc.: Oppenheimer Global Securities Fund/VA (Service Class) ** Smith Barney High Income Portfolio Oppenheimer Strategic Bond Fund/VA (Service Class) ** Smith Barney International All Cap Growth Portfolio PIMCO Variable Insurance Trust: Smith Barney Large Cap Value Portfolio PIMCO High Yield Portfolio Smith Barney Money Market Portfolio PIMCO StocksPLUS Growth and Income Portfolio UBS Series Trust: Pioneer Variable Contracts Trust: UBS Tactical Allocation Portfolio (Class I) * Pioneer Equity-Income VCT Portfolio (Class II) ** Pioneer Fund VCT Portfolio (Class II Shares) * Pioneer Mid-Cap Value VCT Portfolio (Class II Shares) * Pioneer Small Company VCT Portfolio (Class II) * * Division was new in 2001. ** Division was new in 2002.
The GCG Trust 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 March 6, 2001, all remaining proceeds in the Market Manager Division were liquidated and Contractowner holdings were reallocated to the Liquid Asset Division as described in the Contract prospectus. On April 27, 2001, following approval by it shareholders, all remaining proceeds in the GCG Trust Emerging Markets Division were liquidated and Contractowner holdings were reallocated to the GCG Trust Developing World Division as described in the Contract prospectus. 91 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) On December 14, 2001, the consolidation of the Warburg Pincus International Equity Portfolio into the GCG Trust International Equity Series took place at no cost to Contractowners. Shares of GCG Trust International Equity Series were substituted for shares of Warburg Pincus International Equity Portfolio. The names of certain Divisions were changed during 2002. The following is a summary of current and former names for those Divisions: CURRENT NAME FORMER NAME -------------------------------------------------------------------------------- ING MFS(R)Capital Opportunities PPI MFS Capital Opportunities ING VP Worldwide Growth Pilgrim Worldwide Growth ING VP Index Plus LargeCap Aetna Index Plus LargeCap ING VP Index Plus MidCap Aetna Index Plus MidCap ING VP Index Plus SmallCap Aetna Index Plus SmallCap ING VP Value Opportunity Aetna Value Opportunity ING VP Convertible Pilgrim Convertible ING VP Growth Opportunities Pilgrim Growth Opportunities ING VP Large Company Value Pilgrim Growth and Income ING VP LargeCap Growth Pilgrim LargeCap Growth ING VP MagnaCap Pilgrim MagnaCap ING VP SmallCap Opportunities Pilgrim SmallCap Opportunities 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 accounting principles generally accepted in the United States 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. 92 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) INVESTMENTS Investments are made in shares of a Series or Portfolio of the Trusts and are recorded at fair value, determined by 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. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments. 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. TRANSFERS Transfers between the Account and Golden American relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by Golden American, Contractowner transfers between the general account and the Divisions, and other Contractowner activity including contract deposits and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to Golden American Life Insurance Company on the Statement of Assets and Liabilities. 93 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES Prior to February 1, 2000, DVA Plus, Access, and Premium Plus Contracts 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 all Contracts, 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 2000) - 5.5% Solution 1.30 DVA Plus (post January 2000) - Annual Ratchet 1.30 DVA Plus (pre February 2000) - 7% Solution 1.40 94 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- 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 95 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES --------------- 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 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 96 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- 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 Advantage Option I 2.05 Advantage Option II 2.25 Advantage Option III 2.30 Rollover Choice Option I 0.60 Rollover Choice Option II 0.80 Rollover Choice Option III 0.95 ASSET BASED ADMINISTRATIVE CHARGES A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA 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, VA, Advantage, and Rollover Choice Contracts. 97 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) 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, VA, Advantage, and Rollover Choice 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. 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 each Contract on its anniversary date. CONTINGENT DEFERRED SALES CHARGES Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite, Landmark, VA, Advantage, and Rollover Choice 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 GRANITE ELAPSED SINCE DVA PRIMELITE PREMIUM PAYMENT 80 & PREMIUM ES II & ROLLOVER & DVA DVA PLUS PLUS GENERATIONS VALUE ADVANTAGE LANDMARK VA CHOICE -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ---------- 0 6% 7% 8% 8% 6% 6% 6% 7% 6% 1 5 7 8 7 6 5 5 7 6 2 4 6 8 6 6 4 4 6 5 3 3 5 8 5 5 - 3 6 4 4 2 4 7 4 4 - - 5 3 5 1 3 6 3 3 - - 4 2 6 - 1 5 2 1 - - 3 1 7 - - 3 1 - - - - - 8 - - 1 - - - - - - 9+ - - - - - - - - - -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ----------
98 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) OTHER CONTRACT CHARGES Under DVA 80, DVA, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contractowners taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA Contracts, annual distribution fees are deducted from the Contracts' 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 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 depends on the Contractowner's state of residence and currently ranges up to 3.5% of premiums. 99 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) 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. NET ASSETS RETAINED IN THE ACCOUNT BY GOLDEN AMERICAN LIFE INSURANCE COMPANY 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 ----------------------------- 2002 2001 --------------- ------------- (DOLLARS IN THOUSANDS) Balance at beginning of year $ 135 $ 813 Sales load advanced 9 46 Amortization of deferred sales load and premium tax (144) (724) --------------- ------------- Balance at end of year $ - $ 135 =============== ============= 4. RELATED PARTY TRANSACTIONS During the year ended December 31, 2002, management and service fees were paid indirectly to Directed Services, Inc., an affiliate of the Company, in its capacity as investment manager to the GCG Trust. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.53% to 1.85% of the average net assets of each respective Series. In addition, management and service fees were paid to ING Investments, LLC, in its capacity as investment adviser to the ING GET Fund, the ING Variable Insurance Trust, ING VP Bond Portfolio, ING Variable Portfolios, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement provided for fees at annual rates ranging from 0.35% to 1.00% of the average net assets of each respective Portfolio. Management and service fees were paid to ING Life Insurance and Annuity Company, an affiliate of the Company, in its capacity as investment adviser to ING Partners, Inc. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.50% to 1.00% of the average net assets of each respective Portfolio. 100 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments follows:
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust: All Cap $99,898 $62,269 $215,529 $18,161 All Cap Advisor 177 - - - Asset Allocation Growth 18,227 10,179 46,049 798 Capital Growth 271,861 306,181 150,331 150,151 Capital Growth Advisor 154 - - - Capital Guardian Small Cap 830,463 842,708 474,975 410,116 Capital Guardian Small Cap Advisor 320 - - - Core Bond 332,380 34,599 96,443 23,096 Core Bond Advisor 995 - - - Developing World 256,419 261,252 514,464 492,886 Developing World Advisor 81 - - - Diversified Mid-Cap 58,638 6,680 51,740 5,350 Diversified Mid-Cap Advisor 224 - - - Emerging Markets - - 49,902 69,646 Equity Growth 5,244 623 - - Equity Growth Advisor 480 - - - Equity Income 166,618 101,344 216,341 81,506 Equity Income Advisor 673 13 - - Equity Opportunity 147,404 177,811 142,512 114,142 Equity Opportunity Advisor 34 - - - Focus Value 6,954 731 - - Focus Value Advisor 50 - - - Fully Managed 383,713 62,233 377,005 90,177 Fully Managed Advisor 946 34 - - Fundamental Growth Focus 3,288 415 - - Fundamental Growth Advisor 113 - - - Global Franchise 19,859 4,824 - - Global Franchise Advisor 744 42 - - Growth 922,370 1,085,634 838,003 854,786 Growth Advisor 97 - - - Hard Assets 102,835 64,011 15,759 19,014 Hard Assets Advisor 95 - - - International Enhanced EAFE 18,536 13,290 - - International Enhanced EAFE Advisor 166 - - - International Equity 684,796 688,451 1,288,757 1,304,170
101 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED) Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust (continued): International Equity Advisor $ 254 $- $ - $ - Internet Tollkeeper 16,754 6,112 5,934 392 Internet Tollkeeper Advisor 57 - - - Investors 37,278 9,900 79,313 6,102 Investors Advisor 297 - - - J.P. Morgan Fleming Small Cap Equity 10,549 557 - - J.P. Morgan Fleming Small Cap Advisor 520 - - - Janus Growth and Income 77,366 13,632 85,909 2,016 Janus Growth and Income Advisor 602 - - - Large Cap Value 137,118 37,870 192,419 13,495 Large Cap Value Advisor 347 - - - Limited Maturity Bond 289,313 109,521 320,388 165,480 Liquid Asset 6,067,854 6,116,068 5,778,907 5,387,088 Liquid Asset Advisor 3,353 1,553 - - Managed Global Series 439,191 413,705 994,534 946,349 Managed Global Advisor 51 - - - Market Manager - - 3,388 8,410 Mid-Cap Growth 672,311 703,631 813,977 747,789 Mid-Cap Growth Advisor 558 - - - Real Estate 137,466 62,909 71,207 46,270 Real Estate Advisor 278 - - - Research 171,313 231,552 208,240 178,793 Research Advisor 329 - - - Special Situations 11,468 6,198 21,339 1,778 Special Situations Advisor 56 - - - Strategic Equity 403,752 448,147 199,079 223,594 Strategic Equity Advisor 79 - - - Total Return 268,590 141,319 303,584 73,267 Total Return Advisor 1,034 51 - - Value Equity 102,513 90,027 109,345 74,755 Value Equity Advisor 110 - - - Van Kampen Growth and Income 60,273 127,038 60,251 72,471 Van Kampen Growth and Income Advisor 1,031 31 - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 16,368 5,241 3,649 90 AIM V.I. Growth 987 372 427 2 AIM V.I. Capital Appreciation 34 - - - AIM V.I. Core Equity 44 - - - AIM V.I. Premier Equity 87 - - -
102 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Alliance Variable Products Series Fund, Inc.: Alliance Bernstein Value $ 2,631 $ 257 $ 648 $ 66 Alliance Growth and Income 4,785 619 1,659 44 Alliance Premier Growth 3,175 1,593 1,115 79 Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 48,243 23,758 705 44 Fidelity(R)VIP Equity-Income 62,498 39,048 1,945 55 Fidelity(R)VIP Contrafund(R) 4,406 783 1,568 436 Fidelity(R)VIP Overseas 9 - - - Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 20 - - - Greenwich Street Series Fund: Greenwich Appreciation 81 74 54 116 The Galaxy VIP Fund: Galaxy VIP Asset Allocation 33 431 214 191 Galaxy VIP Equity 22 132 130 187 Galaxy VIP Growth and Income - 32 59 119 Galaxy VIP High Quality Bond 32 58 90 18 Galaxy VIP Small Company Growth 13 11 19 6 ING GET Fund: ING GET Fund - Series N 733 2,401 33,144 3,009 ING GET Fund - Series P 6,579 18,769 152,998 246 ING GET Fund - Series Q 182,185 15,241 1,904 - ING GET Fund - Series R 184,803 15,647 - - ING GET Fund - Series S 227,944 9,645 - - ING GET Fund - Series T 237,424 1,768 - - ING GET Fund - Series U 1,047 - - - ING Partners, Inc.: ING Alger Growth 43 - - - ING American Century Small Cap Value 2 - - - ING J.P. Morgan Mid Cap Value 357 60 - - ING MFS(R)Capital Opportunities 1,163 193 661 9 ING MFS(R)Capital Opportunities 85 - - - ING MFS(R)Global Growth 76 1 - - ING OpCap Balanced Value 131 - - - ING PIMCO Total Return 627 29 - - ING Salomon Bros. Capital 9 - - -
103 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) ING Partners, Inc. (continued): ING Salomon Bros. Investors Value $ 4 $ - $- $ - ING Scudder International Growth 8 - - - ING T. Rowe Price Growth Equity 162 - - - ING UBS Tactical Asset Allocation 2 - - - ING Van Kampen Comstock 1,785 55 - - ING Variable Insurance Trust: ING VP Worldwide Growth 24,169 9,196 24,855 8,371 ING VP Bond Portfolio: ING VP Bond 63,496 13,839 - - ING Variable Portfolios, Inc.: ING VP Growth 51 1 - - ING VP Index Plus LargeCap 7,078 2,691 896 101 ING VP Index Plus MidCap 9,240 3,466 852 62 ING VP Index Plus SmallCap 8,715 4,883 854 227 ING VP Small Company 251 37 - - ING VP Value Opportunity 1,251 169 314 15 ING Variable Products Trust: ING VP Convertible 1,096 187 195 3 ING VP Growth Opportunities 10,173 2,384 7,080 1,675 ING VP International Value 53 1 - - ING VP Large Company Value 1,376 372 442 291 ING VP LargeCap Growth 1,869 1,053 538 8 ING VP MagnaCap 13,443 3,846 5,521 131 ING VP MidCap Opportunities 16 - - - ING VP SmallCap Opportunities 31,124 1,969 20,495 5,437 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 63,673 40,543 3,684 1,338 INVESCO VIF - Health Sciences 83,757 58,204 13,606 2,751 INVESCO VIF - Leisure 7,516 1,277 - - INVESCO VIF - Utilities 8,167 944 1,085 117 Janus Aspen Series: Janus Aspen Series Balanced 565 37 - - Janus Aspen Series Flexible Income 276 3 - - Janus Aspen Series Growth 225 1 - - Janus Aspen Series Worldwide Growth 104,529 101,442 1,300 62
104 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities $ 274 $24 $ - $ - Oppenheimer Strategic Bond 53 36 - - PIMCO Variable Insurance Trust: PIMCO High Yield 217,839 126,620 187,456 101,450 PIMCO StocksPLUS Growth and Income 92,182 97,761 78,983 54,922 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 200 1 - - Pioneer Fund VCT 27,454 6,810 2,403 151 Pioneer Mid-Cap Value VCT 69,537 13,624 5,058 16 Pioneer Small Company VCT 3,491 398 978 82 ProFunds VP: ProFund VP Bull 114,057 95,299 41,559 20,550 ProFund VP Europe 30 318,634 307,100 179,473 169,046 ProFund VP Small-Cap 321,292 294,784 202,340 180,975 Prudential Series Fund, Inc.: Prudential Jennison 223,318 215,947 161,864 120,999 Prudential SP Jennison International Growth 44,081 36,323 72,009 60,714 Putnam Variable Trust: Putnam VT Growth and Income 1,662 172 456 13 Putnam VT International Growth and Income 3,063 261 625 33 Putnam VT Voyager II 1,601 94 539 8 Travelers Series Fund Inc.: Smith Barney High Income 82 38 51 62 Smith Barney International All Cap Growth 4 26 4 19 Smith Barney Large Cap Value 19 54 30 71 Smith Barney Money Market 2 80 194 129 UBS Series Trust: UBS Tactical Allocation 1,316 240 794 49
105 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS The changes in units outstanding for the years ended December 31, 2002 and 2001 are shown in the following table. 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 redemption (surrender of the old Contract) and an issue (acquisition of the new Contract). All of the units issued for the GCG Trust Market Manager Division resulted from such updates.
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust: All Cap 14,295,321 10,877,332 3,417,989 20,782,291 4,029,958 16,752,333 All Cap Advisor 18,492 - 18,492 - - - Asset Allocation Growth 2,524,223 1,691,382 832,841 5,576,656 359,275 5,217,381 Capital Growth 12,673,641 14,350,360 (1,676,719) 9,170,101 7,646,399 1,523,702 Capital Growth Advisor 3,459 - 3,459 - - - Capital Guardian Small Cap 31,167,383 33,693,558 (2,526,175) 12,516,724 12,352,679 164,045 Capital Guardian Small Cap Advisor 14,125 - 14,125 - - - Core Bond 58,286,404 59,112,337 (825,933) 32,782,567 28,723,840 4,058,727 Core Bond Advisor 32,995 27 32,968 - - - Developing World 31,632,928 7,268,250 24,364,678 9,464,453 3,028,846 6,435,607 Developing World Advisor 96,894 124 96,770 - - - Diversified Mid-Cap 38,357,135 38,795,832 (438,697) 77,143,940 74,214,198 2,929,742 Diversified Mid-Cap Advisor 8,162 3 8,159 - - - Emerging Markets 8,678,192 2,364,577 6,313,615 6,501,025 1,269,887 5,231,138 Equity Growth 23,763 590 23,173 - - - Equity Growth Advisor - - - 7,053,917 9,615,850 (2,561,933) Equity Income 715,898 157,257 558,641 - - - Equity Income Advisor 47,562 - 47,562 - - - Equity Opportunity 10,707,624 7,860,701 2,846,923 11,244,435 5,753,173 5,491,262 Equity Opportunity Advisor 68,680 3,462 65,218 - - - Focus Value 927,802 217,748 710,054 - - - Focus Value Advisor 4,735 - 4,735 - - - Fully Managed 16,893,498 5,743,297 11,150,201 15,753,519 5,774,203 9,979,316 Fully Managed Advisor 92,813 3,431 89,382 - - - Fundamental Growth Focus 412,537 67,974 344,563 - - - Fundamental Growth Advisor 11,445 7 11,438 - - - Global Franchise 2,512,607 851,207 1,661,400 - - - Global Franchise Advisor 78,879 4,514 74,365 - - - Growth 88,418,811 101,385,523 (12,966,712) 56,738,599 57,342,210 (603,611) Growth Advisor 9,416 - 9,416 - - - Hard Assets 8,767,576 6,176,025 2,591,551 1,479,521 1,669,257 (189,736) Hard Assets Advisor 9,841 - 9,841 - - - International Enhanced EAFE 2,304,452 1,696,647 607,805 - - -
106 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust (continued): International Enhanced EAFE Advisor 16,921 29 16,892 - - - International Equity 88,470,226 88,235,675 234,551 140,797,564 141,233,941 (436,377) International Equity Advisor 25,956 3 25,953 - - - Internet Tollkeeper 3,969,315 1,909,841 2,059,474 867,730 158,666 709,064 Internet Tollkeeper Advisor 5,119 - 5,119 - - - Investors 5,380,431 2,510,400 2,870,031 8,174,409 1,445,937 6,728,472 Investors Advisor 30,514 17 30,497 - - - J.P. Morgan Fleming Small Cap Equity 1,450,310 238,479 1,211,831 - - - J.P. Morgan Fleming Small Cap Advisor 53,904 3 53,901 - - - Janus Growth and Income 11,879,305 3,750,330 8,128,975 10,214,159 1,007,740 9,206,419 Janus Growth and Income Advisor 60,374 - 60,374 - - - Large Cap Value 22,131,127 10,157,539 11,973,588 21,298,417 3,032,221 18,266,196 Large Cap Value Advisor 32,499 - 32,499 - - - Limited Maturity Bond 19,089,421 10,093,155 8,996,266 21,094,466 13,022,965 8,071,501 Liquid Asset 432,718,159 435,462,419 (2,744,260) 406,837,337 381,974,408 24,862,929 Liquid Asset Advisor 376,779 196,446 180,333 - - - Managed Global 29,219,248 27,211,114 2,008,134 57,913,358 54,827,286 3,086,072 Managed Global Advisor 4,848 - 4,848 - - - Market Manager - - - - 238,516 (238,516) Mid-Cap Growth 37,536,301 39,509,334 (1,973,033) 26,837,412 24,939,789 1,897,623 Mid-Cap Growth Advisor 56,277 2 56,275 - - - Real Estate 6,070,387 3,723,970 2,346,417 3,276,661 2,545,459 731,202 Real Estate Advisor 28,719 3 28,716 - - - Research 14,355,356 17,693,135 (3,337,779) 11,109,168 10,124,605 984,563 Research Advisor 33,623 - 33,623 - - - Special Situations 2,057,335 1,380,067 677,268 3,020,279 751,676 2,268,603 Special Situations Advisor 5,773 - 5,773 - - - Strategic Equity 39,062,471 42,593,565 (3,531,094) 18,048,284 19,375,073 (1,326,789) Strategic Equity Advisor 8,044 - 8,044 - - - Total Return 17,689,754 11,652,054 6,037,700 16,341,446 6,826,503 9,514,943 Total Return Advisor 100,210 5,006 95,204 - - - Value Equity 8,835,743 8,086,769 748,974 7,284,108 5,650,995 1,633,113 Value Equity Advisor 12,051 923 11,128 - - - Van Kampen Growth and Income 5,686,825 8,964,808 (3,277,983) 5,403,189 5,969,298 (566,109) Van Kampen Growth and Income Advisor 105,373 4,220 101,153 - - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 2,175,335 948,298 1,227,037 339,548 16,457 323,091 AIM V.I. Growth 129,633 51,493 78,140 42,954 57 42,897 AIM V.I. Capital Appreciation 3,701 - 3,701 - - - AIM V.I. Core Equity 4,961 - 4,961 - - - AIM V.I. Premier Equity 11,714 - 11,714 - - - Alliance Variable Products Series Fund, Inc. Alliance Bernstein Value 298,200 42,183 256,017 71,653 12,180 59,473 Alliance Growth and Income 585,752 114,322 471,430 181,005 8,620 172,385 Alliance Premier Growth 467,717 260,296 207,421 123,347 9,253 114,094
107 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 8,076,321 4,495,778 3,580,543 80,283 5,508 74,775 Fidelity(R)VIP Equity-Income 8,251,501 5,400,874 2,850,627 214,691 11,435 203,256 Fidelity(R)VIP Contrafund(R) 540,071 148,494 391,577 171,166 49,255 121,911 Fidelity(R)VIP Overseas 1,171 - 1,171 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 1,965 25 1,940 - - - Greenwich Street Series Fund: Greenwich Appreciation 4,624 4,584 40 2,637 6,303 (3,666) The Galaxy VIP Fund: Galaxy VIP Asset Allocation 1,789 52,447 (50,658) 19,007 19,492 (485) Galaxy VIP Equity 2,539 15,793 (13,254) 11,685 17,902 (6,217) Galaxy VIP Growth and Income 561 3,752 (3,191) 5,606 12,104 (6,498) Galaxy VIP High Quality Bond 2,096 4,759 (2,663) 7,406 1,490 5,916 Galaxy VIP Small Company Growth 1,172 1,052 120 1,341 329 1,012 ING GET Fund: ING GET Fund - Series N 43,042 189,804 (146,762) 3,305,373 296,325 3,009,048 ING GET Fund - Series P 772,618 1,720,085 (947,467) 15,403,642 127,730 15,275,912 ING GET Fund - Series Q 18,122,750 1,458,265 16,664,485 190,471 - 190,471 ING GET Fund - Series R 18,803,947 1,893,348 16,910,599 - - - ING GET Fund - Series S 22,953,264 1,085,776 21,867,488 - - - ING GET Fund - Series T 23,875,059 232,370 23,642,689 - - - ING GET Fund - Series U 104,774 - 104,774 - - - ING Partners, Inc.: ING Alger Growth 5,956 - 5,956 - - - ING American Century Small Cap Value 215 - 215 - - - ING J.P. Morgan Mid Cap Value 950 31 919 - - - ING MFS(R)Capital Opportunities (Initial Class) 39,538 6,696 32,842 - - - ING MFS(R)Capital Opportunities (Service Class) 169,917 39,170 130,747 79,584 1,274 78,310 ING MFS(R)Global Growth 10,569 - 10,569 - - - ING OpCap Balanced Value 9,184 144 9,040 - - - ING PIMCO Total Return 16,208 - 16,208 - - - ING Salomon Bros. Capital 57,930 2,748 55,182 - - - ING Salomon Bros. Investors Value 487 - 487 - - - ING Scudder International Growth 1,232 - 1,232 - - - ING T. Rowe Price Growth Equity 19,085 - 19,085 - - - ING UBS Tactical Asset Allocation 297 - 297 - - - ING Van Kampen Comstock 218,552 8,852 209,700 - - - ING Variable Insurance Trust: ING VP Worldwide Growth 4,884,109 2,447,811 2,436,298 3,791,068 1,563,623 2,227,445 ING VP Bond Portfolio: ING VP Bond 7,230,384 2,562,132 4,668,252 - - - ING Variable Portfolios, Inc.: ING VP Growth 6,679 110 6,569 - - - ING VP Index Plus LargeCap 989,798 442,688 547,110 99,176 12,643 86,533 ING VP Index Plus MidCap 1,075,901 467,221 608,680 90,604 7,688 82,916
108 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- ING Variable Portfolios, Inc. (continued): ING VP Index Plus SmallCap 1,032,462 634,554 397,908 96,255 28,852 67,403 ING VP Small Company 27,484 6,772 20,712 - - - ING VP Value Opportunity 162,657 30,086 132,571 34,696 1,645 33,051 ING Variable Products Trust: ING VP Convertible 111,643 22,720 88,923 18,782 347 18,435 ING VP Growth Opportunities 1,984,390 760,395 1,223,995 931,175 259,800 671,375 ING VP International Value 5,020 82 4,938 - - - ING VP Large Company Value 151,517 46,425 105,092 45,138 30,153 14,985 ING VP LargeCap Growth 281,373 173,739 107,634 56,377 733 55,644 ING VP MagnaCap 1,873,780 706,779 1,167,001 632,349 53,590 578,759 ING VP MidCap Opportunities 1,700 - 1,700 - - - ING VP SmallCap Opportunities 6,167,933 1,352,225 4,815,708 2,548,996 811,701 1,737,295 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 8,952,534 6,278,761 2,673,773 434,280 177,355 256,925 INVESCO VIF - Health Sciences 11,553,067 8,591,990 2,961,077 1,421,950 369,814 1,052,136 INVESCO VIF - Leisure 1,002,159 278,062 724,097 - - - INVESCO VIF - Utilities 1,413,473 305,358 1,108,115 141,238 22,159 119,079 Janus Aspen Series: Janus Aspen Series Balanced 57,501 3,830 53,671 - - - Janus Aspen Series Flexible Income 25,934 170 25,764 - - - Janus Aspen Series Growth 26,711 20 26,691 - - - Janus Aspen Series Worldwide Growth 13,323,220 12,946,666 376,554 146,938 8,275 138,663 Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 29,681 2,882 26,799 - - - Oppenheimer Strategic Bond 5,028 3,500 1,528 - - - PIMCO Variable Insurance Trust: PIMCO High Yield 27,197,895 19,409,516 7,788,379 21,217,537 13,988,901 7,228,636 PIMCO StocksPLUS Growth and Income 13,357,877 14,285,763 (927,886) 8,925,373 7,365,612 1,559,761 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 21,635 61 21,574 - - - Pioneer Fund VCT 3,769,608 1,315,200 2,454,408 268,899 26,350 242,549 Pioneer Mid-Cap Value VCT 7,875,737 2,670,048 5,205,689 576,552 96,828 479,724 Pioneer Small Company VCT 431,876 92,472 339,404 107,907 10,101 97,806 ProFunds VP: ProFund VP Bull 18,816,487 16,427,269 2,389,218 4,686,896 2,370,498 2,316,398 ProFund VP Europe 30 50,746,741 48,922,218 1,824,523 23,135,968 22,371,682 764,286 ProFund VP Small-Cap 44,254,935 41,001,972 3,252,963 21,972,144 19,853,663 2,118,481 Prudential Series Fund, Inc.: Prudential Jennison 45,072,785 43,503,839 1,568,946 26,252,187 19,904,133 6,348,054 Prudential SP Jennison International Growth 10,464,472 8,810,383 1,654,089 12,383,699 10,604,474 1,779,225 Putnam Variable Trust: Putnam VT Growth and Income 199,811 27,845 171,966 50,302 2,090 48,212 Putnam VT International Growth and Income 355,859 48,525 307,334 70,513 6,733 63,780 Putnam VT Voyager II 227,745 22,636 205,109 68,823 2,835 65,988 109
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Travelers Series Fund Inc.: Smith Barney High Income 35 3,035 (3,000) 93 4,626 (4,533) Smith Barney International All Cap Growth 80 2,233 (2,153) 277 1,051 (774) Smith Barney Large Cap Value 114 3,173 (3,059) 6 3,282 (3,276) Smith Barney Money Market 16 6,191 (6,175) 15,005 10,129 4,876 UBS Series Trust: UBS Tactical Allocation 165,483 32,046 133,437 89,352 5,615 83,737 110
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY Accumulation unit value information for units outstanding, by Contract type, as of December 31, 2002 follows:
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP Contracts in accumulation period: DVA 41,458.754 $8.65 $358,618 DVA Series 100 3,137.705 8.56 26,859 DVA Plus - Standard (pre February 2000) 94,490.061 8.59 811,670 DVA Plus - Standard (post January 2000 & post 2000) 355,697.642 8.57 3,048,329 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 3,519,149.243 8.55 30,088,726 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 4,205,675.709 8.54 35,916,471 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,646,986.989 8.51 14,015,859 DVA Plus - Max 5.5 (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) 957,911.527 8.50 8,142,248 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,505,988.275 8.49 12,785,840 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) 3,652,427.624 8.47 30,936,062 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,438,659.230 8.46 12,171,057 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 3,308,447.252 8.45 27,956,379 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,615,264.398 8.42 47,280,526 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,104.907 8.41 26,112 Access - Annual Ratchet (post April 2001) 186,268.904 8.39 1,562,796 Access - Max 5.5 (post April 2001), Landmark - Max 7 892,250.465 8.37 7,468,136 111
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP (CONTINUED) Access - 7% Solution (post April 2001) 142,957.557 $8.36 $1,195,125 Access - Max 7 (post April 2001) 381,029.823 8.34 3,177,789 ES II - Max 7 (post 2000), Generations - Max 7 915,050.379 8.44 7,723,025 Landmark - 7% Solution 294,227.794 8.40 2,471,513 Value 71,708.265 8.68 622,428 ----------------- ----------------- 29,231,892.503 $247,785,568 ================= ================= GCG TRUST ALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 3,130.121 $9.53 $29,830 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 75.548 9.53 720 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,247.033 9.53 21,414 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 8,123.878 9.52 77,339 ES II - Max 7 (post 2000), Generations - Max 7 4,915.691 9.52 46,797 ----------------- ----------------- 18,492.271 $176,100 ================= ================= GCG TRUST ASSET ALLOCATION GROWTH Contracts in accumulation period: DVA 2,027.410 $7.33 $14,861 DVA Plus - Standard (pre February 2000) 26,126.263 7.29 190,460 DVA Plus - Standard (post January 2000 & post 2000) 70,920.996 7.28 516,305 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 660,455.843 7.26 4,794,909 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 1,194,266.289 7.25 8,658,431 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 169,483.674 7.24 1,227,062 112
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ASSET ALLOCATION GROWTH (CONTINUED) DVA Plus - Max 5.5 (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) 187,063.134 $7.23 $1,352,466 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 337,704.673 7.22 2,438,228 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) 501,198.187 7.21 3,613,639 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 446,755.295 7.20 3,216,638 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 987,291.899 7.20 7,108,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,284,001.843 7.18 9,219,133 Access - Annual Ratchet (post April 2001) 51,903.335 7.16 371,628 Access - Max 5.5 (post April 2001), Landmark - Max 7 224,828.378 7.15 1,607,523 Access - 7% Solution (post April 2001) 31,656.908 7.14 226,030 Access - Max 7 (post April 2001) 69,349.514 7.12 493,769 ES II - Max 7 (post 2000), Generations - Max 7 241,486.345 7.19 1,736,287 Landmark - 7% Solution 48,142.273 7.16 344,699 Value 16,589.694 7.35 121,934 ----------------- ----------------- 6,551,251.953 $47,252,504 ================= ================= GCG TRUST CAPITAL GROWTH Contracts in accumulation period: DVA 80 1,607.870 $10.52 $16,915 DVA 153,146.430 10.37 1,588,128 DVA Series 100 8,227.787 10.13 83,347 DVA Plus - Standard (pre February 2000) 380,316.760 10.20 3,879,231 DVA Plus - Standard (post January 2000 & post 2000) 142,766.855 10.17 1,451,939 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,368,760.600 10.10 54,224,482 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 1,918,853.410 10.06 19,303,665 113
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH (CONTINUED) 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,478,808.490 $9.99 $44,743,297 DVA Plus - Max 5.5 (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) 749,731.689 9.96 7,467,328 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 481,010.436 9.92 4,771,624 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) 6,139,683.548 9.89 60,721,470 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,585.888 9.86 6,079,537 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 1,761,535.292 9.82 17,298,277 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,863,527.950 9.76 18,188,033 Access - Annual Ratchet (post April 2001) 30,974.973 9.66 299,218 Access - Max 5.5 (post April 2001), Landmark - Max 7 184,178.500 9.62 1,771,797 Access - 7% Solution (post April 2001) 58,702.850 9.59 562,960 Access - Max 7 (post April 2001) 67,393.152 9.52 641,583 ES II - Max 7 (post 2000), Generations - Max 7 249,302.116 9.79 2,440,668 Landmark - 7% Solution 56,387.454 9.69 546,394 Value 65,321.974 10.45 682,615 ----------------- ----------------- 24,776,824.024 $246,762,508 ================= ================= GCG TRUST CAPITAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,843.350 $10.46 $19,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 341.182 10.45 3,565 114
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,840.247 $10.45 $71,481 ES II - Max 7 (post 2000), Generations - Max 7 5,100.584 10.45 53,301 ----------------- ----------------- 14,125.363 $147,628 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP Currently payable annuity products: DVA 2,297.593 $13.52 $31,063 Contracts in accumulation period: DVA 80 14,858.695 13.71 203,713 DVA 214,874.378 13.52 2,905,102 DVA Series 100 13,572.305 13.18 178,883 DVA Plus - Standard (pre February 2000) 343,421.977 13.28 4,560,644 DVA Plus - Standard (post January 2000 & post 2000) 235,631.961 13.23 3,117,411 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,592,780.344 13.14 73,489,134 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 2,987,430.595 13.09 39,105,466 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,048,976.100 13.00 52,636,689 DVA Plus - Max 5.5 (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) 1,000,666.713 12.95 12,958,634 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 874,016.460 12.91 11,283,552 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) 4,163,677.792 12.86 53,544,896 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 857,077.537 12.82 10,987,734 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 2,319,409.725 12.77 29,618,862 115
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GUARDIAN SMALL CAP (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,389,035.932 $12.68 $30,292,976 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,453.358 12.64 18,370 Access - Annual Ratchet (post April 2001) 61,290.156 12.55 769,191 Access - Max 5.5 (post April 2001), Landmark - Max 7 350,648.747 12.50 4,383,109 Access - 7% Solution (post April 2001) 54,701.732 12.46 681,584 Access - Max 7 (post April 2001) 69,007.571 12.37 853,624 ES II - Max 7 (post 2000), Generations - Max 7 518,748.741 12.73 6,603,671 Landmark - 7% Solution 123,957.985 12.59 1,560,631 Access One 1,141.000 14.00 15,974 Value 100,785.890 13.61 1,371,696 ----------------- ----------------- 26,339,463.287 $341,172,609 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,340.969 $9.73 $51,968 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,152.595 9.72 11,203 ES II - Max 7 (post 2000), Generations - Max 7 26,474.859 9.72 257,336 ----------------- ----------------- 32,968.423 $320,507 ================= ================= GCG TRUST CORE BOND Contracts in accumulation period: DVA 80 753.424 $13.35 $10,058 DVA 90,062.736 13.13 1,182,524 DVA Series 100 738.171 12.76 9,419 DVA Plus - Standard (pre February 2000) 223,688.583 12.87 2,878,872 DVA Plus - Standard (post January 2000 & post 2000) 284,926.081 12.81 3,649,903 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,410,374.581 12.71 56,055,861 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 4,516,489.676 12.65 57,133,594 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,142,594.793 12.55 26,889,565 116
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND (CONTINUED) DVA Plus - Max 5.5 (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) 689,474.728 $12.49 $8,611,539 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,936,105.724 12.44 24,085,155 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) 4,423,425.565 12.39 54,806,243 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,446,384.844 12.34 17,848,389 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 3,457,226.108 12.29 42,489,309 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,600,336.870 12.19 68,268,106 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 32,107.716 12.13 389,467 Access - Annual Ratchet (post April 2001) 134,069.579 12.03 1,612,857 Access - Max 5.5 (post April 2001), Landmark - Max 7 836,450.736 11.98 10,020,680 Access - 7% Solution (post April 2001) 299,610.090 11.93 3,574,348 Access - Max 7 (post April 2001) 390,105.072 11.83 4,614,943 ES II - Max 7 (post 2000), Generations - Max 7 1,325,734.470 12.24 16,226,990 Landmark - 7% Solution 529,439.956 12.08 6,395,635 Value 71,442.238 13.24 945,895 VA Option I 161,643.514 13.19 2,132,078 VA Option II 104,350.003 12.86 1,341,941 VA Option III 78,978.140 12.70 1,003,022 VA Bonus Option I 410,566.626 12.65 5,193,668 VA Bonus Option II 238,795.640 12.34 2,946,738 VA Bonus Option III 280,007.129 12.18 3,410,487 SmartDesign Advantage Option I 41,826.052 11.89 497,312 SmartDesign Advantage Option II 33,654.867 11.69 393,425 SmartDesign Advantage Option III 27,833.585 11.55 321,478 Rollover Choice Option I 11,209.365 13.41 150,318 Rollover Choice Option II 7,405.249 13.19 97,675 --------------- ---------------- 34,237,811.911 $425,187,494 =============== ================ GCG TRUST CORE BOND ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 27,862.818 $10.26 $285,873 117
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND ADVISOR (CONTINUED) 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 4,219.045 $10.26 $43,287 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,367.528 10.25 65,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 48,272.777 10.25 494,796 ES II - Max 7 (post 2000), Generations - Max 7 10,048.284 10.24 102,894 --------------- --------------- 96,770.452 $992,117 =============== =============== GCG TRUST DEVELOPING WORLD Currently payable annuity products: DVA 12,255.773 $6.36 $77,947 Contracts in accumulation period: DVA 80 14,178.783 6.42 91,028 DVA 475,932.987 6.36 3,026,934 DVA Series 100 18,313.765 6.25 114,461 DVA Plus - Standard (pre February 2000) 207,165.986 6.28 1,301,002 DVA Plus - Standard (post January 2000 & post 2000) 144,724.137 6.26 905,973 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,925,891.221 6.23 11,998,302 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 1,365,017.451 6.22 8,490,409 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,372,716.295 6.19 8,497,114 DVA Plus - Max 5.5 (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) 474,427.290 6.17 2,927,216 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 249,735.938 6.16 1,538,373 118
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DEVELOPING WORLD (CONTINUED) 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) 1,283,289.404 $6.14 $7,879,397 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 256,922.106 6.13 1,574,933 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 690,414.368 6.11 4,218,432 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 847,173.047 6.08 5,150,812 Access - Annual Ratchet (post April 2001) 45,608.548 6.04 275,476 Access - Max 5.5 (post April 2001), Landmark - Max 7 87,622.124 6.02 527,485 Access - 7% Solution (post April 2001) 14,127.458 6.01 84,906 Access - Max 7 (post April 2001) 39,283.433 5.98 234,915 ES II - Max 7 (post 2000), Generations - Max 7 89,889.364 6.10 548,325 Landmark - 7% Solution 40,885.379 6.05 247,357 Value 46,745.779 6.39 298,706 --------------- --------------- 9,702,320.636 $60,009,503 =============== =============== GCG TRUST DEVELOPING WORLD ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 520.886 $9.71 $5,058 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,949.670 9.70 57,712 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 504.135 9.70 4,890 ES II - Max 7 (post 2000), Generations - Max 7 1,184.808 9.70 11,493 --------------- --------------- 8,159.499 $79,153 =============== =============== GCG TRUST DIVERSIFIED MID-CAP Contracts in accumulation period: DVA 14,377.938 $7.30 $104,959 DVA Series 100 547.871 7.24 3,967 DVA Plus - Standard (pre February 2000) 52,084.982 7.26 378,137 DVA Plus - Standard (post January 2000 & post 2000) 107,226.771 7.25 777,394 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,436,693.678 7.23 10,387,295 119
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP (CONTINUED) 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 1,947,601.094 $7.22 $14,061,680 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 504,098.037 7.21 3,634,547 DVA Plus - Max 5.5 (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) 239,616.364 7.20 1,725,238 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 877,091.558 7.19 6,306,288 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) 1,210,498.995 7.18 8,691,383 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 839,243.527 7.17 6,017,376 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 1,611,467.331 7.17 11,554,221 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,302,130.917 7.15 16,460,236 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,418.819 7.14 10,130 Access - Annual Ratchet (post April 2001) 78,293.863 7.12 557,452 Access - Max 5.5 (post April 2001), Landmark - Max 7 492,026.422 7.12 3,503,228 Access - 7% Solution (post April 2001) 74,631.497 7.11 530,630 Access - Max 7 (post April 2001) 181,302.263 7.09 1,285,433 ES II - Max 7 (post 2000), Generations - Max 7 532,775.028 7.16 3,814,669 Landmark - 7% Solution 163,816.671 7.13 1,168,013 Value 28,075.151 7.31 205,229 --------------- --------------- 12,695,018.777 $91,177,505 =============== =============== GCG TRUST DIVERSIFIED MID-CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,407.942 $9.48 $51,267 120
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP ADVISOR (CONTINUED) 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 432.092 $9.48 $4,096 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243.004 9.47 2,301 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,952.240 9.47 122,658 ES II - Max 7 (post 2000), Generations - Max 7 4,137.894 9.47 39,186 --------------- --------------- 23,173.172 $219,508 =============== =============== GCG TRUST EQUITY GROWTH Contracts in accumulation period: DVA 3,698.022 $7.84 $28,992 DVA Plus - Standard (pre February 2000) 2,799.601 7.83 21,921 DVA Plus - Standard (post January 2000 & post 2000) 10,978.003 7.83 85,958 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 124,180.866 7.82 971,094 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 115,969.157 7.82 906,879 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 36,456.517 7.81 284,725 DVA Plus - Max 5.5 (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) 16,317.558 7.81 127,440 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 28,455.347 7.81 222,236 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) 62,875.801 7.81 491,060 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,987.840 7.80 163,705 121
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY GROWTH (CONTINUED) 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 37,951.928 $7.80 $296,025 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 67,606.323 7.79 526,653 Access - Max 5.5 (post April 2001), Landmark - Max 7 10,421.530 7.78 81,080 Access - Max 7 (post April 2001) 852.028 7.78 6,629 ES II - Max 7 (post 2000), Generations - Max 7 10,170.532 7.80 79,330 Landmark - 7% Solution 8,348.943 7.79 65,038 Value 571.100 7.85 4,483 --------------- --------------- 558,641.096 $4,363,248 =============== =============== GCG TRUST EQUITY GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 500.893 $9.64 $4,829 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 15,788.036 9.63 152,039 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,058.799 9.63 19,826 ES II - Max 7 (post 2000), Generations - Max 7 29,214.728 9.63 281,338 --------------- --------------- 47,562.456 $458,032 =============== =============== GCG TRUST EQUITY INCOME Currently payable annuity products: DVA 80 1,348.359 $22.22 $29,661 DVA 25,612.255 21.61 553,481 Contracts in accumulation period: DVA 80 121,213.832 22.22 2,693,671 DVA 2,051,786.851 21.61 44,339,114 DVA Series 100 32,304.604 20.57 664,506 DVA Plus - Standard (pre February 2000) 255,606.846 20.89 5,339,627 DVA Plus - Standard (post January 2000 & post 2000) 159,632.560 20.72 3,307,587 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,796,771.768 20.45 57,193,983 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 2,137,260.309 20.28 43,343,639 122
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME (CONTINUED) 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,226,227.787 $20.03 $44,591,343 DVA Plus - Max 5.5 (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) 375,190.550 19.86 7,451,284 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 814,591.599 19.72 16,063,746 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) 3,360,009.304 19.58 65,788,982 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 773,224.228 19.44 15,031,479 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 1,769,553.969 19.30 34,152,392 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,273,204.350 19.03 43,259,079 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 192.692 18.90 3,642 Access - Annual Ratchet (post April 2001) 69,736.079 18.63 1,299,183 Access - Max 5.5 (post April 2001), Landmark - Max 7 425,111.213 18.50 7,864,557 Access - 7% Solution (post April 2001) 90,035.804 18.37 1,653,958 Access - Max 7 (post April 2001) 94,236.389 18.11 1,706,621 ES II - Max 7 (post 2000), Generations - Max 7 479,847.384 19.17 9,198,674 Landmark - 7% Solution 151,475.992 18.76 2,841,690 Access One 875.000 23.18 20,283 Value 60,096.515 21.92 1,317,316 --------------- --------------- 20,545,146.239 $409,709,498 =============== =============== GCG TRUST EQUITY INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 14,864.732 $9.83 $146,120 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 18,285.717 9.82 179,566 123
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 21,139.474 $9.82 $207,590 ES II - Max 7 (post 2000), Generations - Max 7 10,928.226 9.81 107,206 --------------- --------------- 65,218.149 $640,482 =============== =============== GCG TRUST EQUITY OPPORTUNITY Currently payable annuity products: DVA 14,478.487 $15.71 $227,457 Contracts in accumulation period: DVA 80 15,404.039 16.05 247,235 DVA 1,154,948.305 15.71 18,144,238 DVA Series 100 16,405.052 15.12 248,044 DVA Plus - Standard (pre February 2000) 284,899.727 15.31 4,361,815 DVA Plus - Standard (post January 2000 & post 2000) 184,671.967 15.21 2,808,861 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,929,610.455 15.06 44,119,933 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 1,951,375.489 14.96 29,192,577 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,915,535.853 14.82 43,208,241 DVA Plus - Max 5.5 (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) 692,996.783 14.72 10,200,913 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 479,670.392 14.64 7,022,375 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) 3,453,225.380 14.56 50,278,962 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 577,200.232 14.48 8,357,859 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 1,643,361.524 14.41 23,680,840 124
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY OPPORTUNITY (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,091,212.810 $14.25 $29,799,783 Access - Annual Ratchet (post April 2001) 41,941.988 14.02 588,027 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,555.663 13.94 1,847,826 Access - 7% Solution (post April 2001) 34,165.539 13.87 473,876 Access - Max 7 (post April 2001) 61,196.435 13.72 839,615 ES II - Max 7 (post 2000), Generations - Max 7 263,932.617 14.33 3,782,154 Landmark - 7% Solution 44,959.241 14.10 633,925 Value 56,140.426 15.88 891,510 ----------------- --------------- 19,039,888.404 $280,956,066 ================= =============== GCG TRUST EQUITY OPPORTUNITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 169.464 $9.75 $1,652 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,428.703 9.74 23,656 ES II - Max 7 (post 2000), Generations - Max 7 860.908 9.74 8,385 ----------------- --------------- 3,459.075 $33,693 ================= =============== GCG TRUST FOCUS VALUE Contracts in accumulation period: DVA Series 100 403.111 $8.37 $3,374 DVA Plus - Standard (post January 2000 & post 2000) 88.979 8.38 746 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 93,267.838 8.37 780,652 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 91,570.714 8.37 766,447 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 69,302.448 8.36 579,368 DVA Plus - Max 5.5 (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) 22,197.693 8.36 185,573 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 36,243.979 8.36 303,000 125
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FOCUS VALUE (CONTINUED) 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) 94,260.227 $8.35 $787,073 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,518.844 8.35 137,932 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 53,879.191 8.35 449,891 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 94,082.902 8.34 784,651 Access - Annual Ratchet (post April 2001) 5,396.319 8.33 44,951 Access - Max 5.5 (post April 2001), Landmark - Max 7 15,877.599 8.33 132,260 Access - 7% Solution (post April 2001) 20,649.316 8.33 172,009 Access - Max 7 (post April 2001) 8,470.384 8.32 70,474 ES II - Max 7 (post 2000), Generations - Max 7 84,874.579 8.35 708,703 Landmark - 7% Solution 1,398.706 8.34 11,665 Value 1,571.082 8.40 13,197 --------------- --------------- 710,053.911 $5,931,966 =============== =============== GCG TRUST FOCUS VALUE ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 222.890 $10.17 $2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,252.965 10.16 12,730 ES II - Max 7 (post 2000), Generations - Max 7 3,259.390 10.16 33,115 --------------- --------------- 4,735.245 $48,112 =============== =============== GCG TRUST FULLY MANAGED Currently payable annuity products: DVA 80 476.959 $30.37 $14,885 DVA 17,327.473 29.53 511,680 Contracts in accumulation period: DVA 80 46,348.529 30.37 1,407,205 DVA 1,134,176.173 29.53 33,492,223 DVA Series 100 21,165.295 28.11 594,956 DVA Plus - Standard (pre February 2000) 435,649.731 28.55 12,437,800 DVA Plus - Standard (post January 2000 & post 2000) 281,689.371 28.32 7,977,443 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,326,018.141 27.96 148,915,467 126
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED (CONTINUED) 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 4,380,116.820 $27.72 $121,416,838 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,093,955.209 27.37 112,051,554 DVA Plus - Max 5.5 (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) 639,976.992 27.14 17,368,976 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,232,631.081 26.95 33,219,408 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) 5,387,390.525 26.76 144,166,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,345,841.222 26.57 35,759,001 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 3,716,909.826 26.38 98,052,081 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,927,374.682 26.01 102,151,015 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 12,094.796 25.83 312,409 Access - Annual Ratchet (post April 2001) 122,475.644 25.46 3,118,230 Access - Max 5.5 (post April 2001), Landmark - Max 7 442,656.923 25.28 11,190,367 Access - 7% Solution (post April 2001) 164,221.185 25.10 4,121,952 Access - Max 7 (post April 2001) 217,796.256 24.75 5,390,457 ES II - Max 7 (post 2000), Generations - Max 7 1,256,046.260 26.20 32,908,412 Landmark - 7% Solution 232,111.293 25.65 5,953,655 Value 90,281.116 29.95 2,703,919 ----------------- ---------------- 34,524,731.502 $935,236,503 ================= ================ GCG TRUST FULLY MANAGED ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 8,749.639 $10.01 $87,584 127
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED ADVISOR (CONTINUED) 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 1,656.240 $10.01 $16,579 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,784.255 10.00 117,843 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 51,407.699 10.00 514,077 ES II - Max 7 (post 2000), Generations - Max 7 15,783.663 9.99 157,679 ---------------- --------------- 89,381.496 $893,762 ================ =============== GCG TRUST FUNDAMENTAL GROWTH FOCUS Contracts in accumulation period: DVA Plus - Standard (post January 2000 & post 2000) 4,821.861 $7.98 $38,478 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 44,772.613 7.97 356,838 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 27,663.603 7.97 220,479 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 18,057.041 7.97 143,915 DVA Plus - Max 5.5 (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) 754.698 7.96 6,007 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 60,486.886 7.96 481,476 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) 44,257.084 7.96 352,286 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,838.025 7.96 134,031 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 27,465.089 7.95 218,347 128
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FUNDAMENTAL GROWTH FOCUS (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 62,915.346 $7.95 $500,177 Access - Max 5.5 (post April 2001), Landmark - Max 7 8,896.164 7.94 70,636 Access - 7% Solution (post April 2001) 297.033 7.93 2,355 ES II - Max 7 (post 2000), Generations - Max 7 26,080.260 7.95 207,338 Landmark - 7% Solution 1,011.739 7.94 8,033 Value 246.288 8.00 1,970 ---------------- ------------- 344,563.730 $2,742,366 ================ ============= GCG TRUST FUNDAMENTAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,049.598 $9.45 $38,269 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,209.274 9.44 58,616 ES II - Max 7 (post 2000), Generations - Max 7 1,178.801 9.44 11,128 ---------------- ------------- 11,437.673 $108,013 ================ ============= GCG TRUST GLOBAL FRANCHISE Contracts in accumulation period: DVA 80 1,187.427 $8.88 $10,544 DVA 640.174 8.87 5,678 DVA Plus - Standard (pre February 2000) 11,623.141 8.86 102,981 DVA Plus - Standard (post January 2000 & post 2000) 23,085.952 8.85 204,311 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 220,958.044 8.85 1,955,479 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 255,200.584 8.84 2,255,973 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 135,600.201 8.84 1,198,706 DVA Plus - Max 5.5 (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) 27,705.332 8.83 244,638 129
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GLOBAL FRANCHISE (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 136,897.046 $8.83 $1,208,801 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) 222,557.194 8.83 1,965,180 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 53,322.828 8.83 470,841 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 133,793.649 8.82 1,180,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 201,785.907 8.82 1,779,752 Access - Annual Ratchet (post April 2001) 5,968.492 8.81 52,582 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,257.987 8.80 354,270 Access - 7% Solution (post April 2001) 1,758.151 8.80 15,472 Access - Max 7 (post April 2001) 34,645.719 8.80 304,882 ES II - Max 7 (post 2000), Generations - Max 7 130,191.636 8.82 1,148,290 Landmark - 7% Solution 14,613.060 8.81 128,741 Value 9,607.419 8.88 85,314 ----------------- --------------- 1,661,399.943 $14,672,495 ================= =============== GCG TRUST GLOBAL FRANCHISE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 29,031.188 $9.52 $276,377 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 412.034 9.52 3,923 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,167.197 9.51 11,100 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 26,238.388 9.51 249,527 ES II - Max 7 (post 2000), Generations - Max 7 17,515.525 9.51 166,573 ----------------- --------------- 74,364.332 $707,500 ================= =============== 130
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH Contracts in accumulation period: DVA 80 12,857.714 $10.95 $140,792 DVA 368,583.831 10.81 3,984,391 DVA Series 100 10,762.408 10.55 113,543 DVA Plus - Standard (pre February 2000) 566,759.980 10.62 6,018,991 DVA Plus - Standard (post January 2000 & post 2000) 445,014.880 10.59 4,712,708 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 12,372,394.796 10.52 130,157,593 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 5,599,656.965 10.48 58,684,405 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 8,151,063.532 10.41 84,852,571 DVA Plus - Max 5.5 (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) 2,302,846.613 10.37 23,880,519 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,434,608.045 10.34 14,833,847 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) 11,094,010.020 10.30 114,268,303 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,379,115.515 10.27 14,163,516 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 4,731,610.364 10.23 48,404,374 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,149,073.607 10.16 42,154,588 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,801.069 10.13 18,245 Access - Annual Ratchet (post April 2001) 60,336.832 10.06 606,989 Access - Max 5.5 (post April 2001), Landmark - Max 7 311,442.281 10.02 3,120,652 Access - 7% Solution (post April 2001) 62,459.653 9.99 623,972 Access - Max 7 (post April 2001) 134,109.863 9.92 1,330,370 ES II - Max 7 (post 2000), Generations - Max 7 464,260.700 10.20 4,735,459 131
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH (CONTINUED) Landmark - 7% Solution 149,093.481 $10.09 $1,504,353 Access One 808.000 11.18 9,033 Value 151,569.894 10.88 1,649,080 ----------------- --------------- 53,954,240.043 $559,968,294 ================= =============== GCG TRUST GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,337.665 $9.78 $42,422 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,872.645 9.77 28,066 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,205.411 9.76 21,525 ----------------- --------------- 9,415.721 $92,013 ================= =============== GCG TRUST HARD ASSETS Currently payable annuity products: DVA 1,451.663 $14.85 $21,557 Contracts in accumulation period: DVA 80 35,342.359 15.27 539,678 DVA 217,667.924 14.85 3,232,369 DVA Series 100 11,963.287 14.13 169,041 DVA Plus - Standard (pre February 2000) 64,493.201 14.35 925,477 DVA Plus - Standard (post January 2000 & post 2000) 36,131.929 14.23 514,157 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 575,255.091 14.05 8,082,334 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 436,184.996 13.94 6,080,419 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 561,649.827 13.76 7,728,302 DVA Plus - Max 5.5 (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) 62,770.602 13.64 856,191 132
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST HARD ASSETS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 108,459.704 $13.55 $1,469,629 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) 968,858.495 13.45 13,031,147 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 120,307.849 13.36 1,607,313 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 302,601.665 13.26 4,012,498 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 932,326.908 13.08 12,194,836 Access - Annual Ratchet (post April 2001) 23,531.967 12.80 301,209 Access - Max 5.5 (post April 2001), Landmark - Max 7 43,248.118 12.71 549,684 Access - 7% Solution (post April 2001) 11,014.885 12.62 139,008 Access - Max 7 (post April 2001) 23,773.123 12.44 295,738 ES II - Max 7 (post 2000), Generations - Max 7 389,188.424 13.17 5,125,612 Landmark - 7% Solution 14,039.187 12.89 180,965 Access One 14,311.339 15.93 227,980 Value 31,695.351 15.06 477,332 ----------------- -------------- 4,986,267.894 $67,762,476 ================= ============== GCG TRUST HARD ASSETS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,119.434 $9.83 $11,004 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 25.690 9.83 253 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 239.543 9.82 2,352 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,945.259 9.82 78,022 ES II - Max 7 (post 2000), Generations - Max 7 511.225 9.82 5,020 ----------------- -------------- 9,841.151 $96,651 ================= ============== 133
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE Contracts in accumulation period: DVA 2,423.918 $8.25 $19,997 DVA Plus - Standard (pre February 2000) 4,118.741 8.23 33,897 DVA Plus - Standard (post January 2000 & post 2000) 2,548.665 8.23 20,976 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 72,897.915 8.22 599,221 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 106,211.466 8.22 873,058 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 33,208.173 8.22 272,971 DVA Plus - Max 5.5 (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) 4,278.309 8.21 35,125 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 81,976.969 8.21 673,031 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) 52,606.310 8.21 431,898 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,890.018 8.21 81,197 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 51,442.150 8.20 421,826 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 138,594.248 8.20 1,136,473 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 466.576 8.19 3,821 Access - Annual Ratchet (post April 2001) 1,612.722 8.19 13,208 Access - Max 5.5 (post April 2001), Landmark - Max 7 6,369.326 8.19 52,165 Access - 7% Solution (post April 2001) 4,136.609 8.18 33,837 Access - Max 7 (post April 2001) 3,184.248 8.18 26,047 ES II - Max 7 (post 2000), Generations - Max 7 12,518.879 8.20 102,655 Landmark - 7% Solution 8,531.245 8.19 69,871 Value 1,514.364 8.25 12,494 VA Option I 3,925.552 8.25 32,386 VA Option II 42.615 8.23 351 134
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE (CONTINUED) VA Bonus Option I 1,123.321 $8.22 $9,234 VA Bonus Option II 806.164 8.21 6,619 VA Bonus Option III 2,716.806 8.20 22,278 SmartDesign Advantage Option I 71.304 8.18 583 SmartDesign Advantage Option II 587.775 8.17 4,802 ---------------- -------------- 607,804.388 $4,990,021 ================ ============== GCG TRUST INTERNATIONAL ENHANCED EAFE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 3,935.485 $9.76 $38,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,208.703 9.75 89,785 ES II - Max 7 (post 2000), Generations - Max 7 3,747.359 9.74 36,499 ---------------- -------------- 16,891.547 $164,694 ================ ============== GCG TRUST INTERNATIONAL EQUITY Contracts in accumulation period: DVA 14,806.091 $7.41 $109,713 DVA Plus - Standard (pre February 2000) 5,838.470 7.29 42,562 DVA Plus - Standard (post January 2000 & post 2000) 41,512.023 7.26 301,377 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,449,069.007 7.16 31,855,334 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 1,834,152.254 7.19 13,187,555 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,745,092.452 7.14 12,459,960 DVA Plus - Max 5.5 (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) 700,469.554 7.11 4,980,339 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 244,423.432 7.09 1,732,962 135
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL EQUITY (CONTINUED) 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) 4,107,916.003 $7.07 $29,042,966 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 261,177.037 7.04 1,838,686 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 1,565,174.958 7.02 10,987,528 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,470,429.332 6.97 10,248,892 Access - Annual Ratchet (post April 2001) 8,794.725 6.90 60,684 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,382.931 6.87 909,471 Access - 7% Solution (post April 2001) 28,442.290 6.85 194,830 Access - Max 7 (post April 2001) 28,306.916 6.80 192,487 ES II - Max 7 (post 2000), Generations - Max 7 221,112.964 6.99 1,545,580 Landmark - 7% Solution 55,117.980 6.92 381,416 Value 54,578.332 7.46 407,154 ----------------- ---------------- 16,968,796.751 $120,479,496 ================= ================ GCG TRUST INTERNATIONAL EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,275.003 $9.80 $22,295 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,027.611 9.79 68,800 ES II - Max 7 (post 2000), Generations - Max 7 16,649.992 9.79 163,003 ----------------- ---------------- 25,952.606 $254,098 ================= ================ GCG TRUST INTERNET TOLLKEEPER Contracts in accumulation period: DVA 2,033.594 $4.68 $9,517 DVA Series 100 1,507.485 4.65 7,010 DVA Plus - Standard (pre February 2000) 3,020.064 4.66 14,073 DVA Plus - Standard (post January 2000 & post 2000) 9,099.556 4.66 42,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 387,485.791 4.65 1,801,809 136
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER (CONTINUED) 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 519,243.692 $4.64 $2,409,291 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 109,776.291 4.64 509,362 DVA Plus - Max 5.5 (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) 18,672.457 4.63 86,453 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 240,376.369 4.63 1,112,943 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) 151,985.088 4.63 703,691 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 181,314.866 4.62 837,675 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 220,934.965 4.62 1,020,720 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 447,885.199 4.61 2,064,751 Access - Annual Ratchet (post April 2001) 41,859.479 4.60 192,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 141,022.746 4.59 647,294 Access - 7% Solution (post April 2001) 23,045.661 4.59 105,780 Access - Max 7 (post April 2001) 80,239.506 4.58 367,497 ES II - Max 7 (post 2000), Generations - Max 7 161,332.193 4.61 743,741 Landmark - 7% Solution 22,077.083 4.60 101,555 Value 5,625.439 4.69 26,383 ----------------- --------------- 2,768,537.524 $12,804,503 ================= =============== GCG TRUST INTERNET TOLLKEEPER ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 335.041 $10.42 $3,491 137
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER ADVISOR (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,329.443 $10.41 $13,840 ES II - Max 7 (post 2000), Generations - Max 7 3,454.704 10.40 35,929 ----------------- -------------- 5,119.188 $53,260 ================= ============== GCG TRUST INVESTORS Contracts in accumulation period: DVA 5,944.138 $8.17 $48,564 DVA Plus - Standard (pre February 2000) 37,817.102 8.11 306,697 DVA Plus - Standard (post January 2000 & post 2000) 169,038.915 8.09 1,367,525 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,177,891.614 8.07 9,505,585 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 1,674,081.360 8.06 13,493,096 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 590,391.269 8.04 4,746,746 DVA Plus - Max 5.5 (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) 330,087.985 8.02 2,647,306 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,030,210.891 8.01 8,251,989 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) 1,371,276.985 8.00 10,970,216 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 534,292.847 7.99 4,269,000 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 1,333,386.702 7.98 10,640,426 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,079,376.721 7.95 16,531,045 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,596.183 7.94 20,614 138
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INVESTORS (CONTINUED) Access - Annual Ratchet (post April 2001) 88,534.000 $7.92 $701,189 Access - Max 5.5 (post April 2001), Landmark - Max 7 294,204.803 7.91 2,327,160 Access - 7% Solution (post April 2001) 33,193.925 7.89 261,900 Access - Max 7 (post April 2001) 215,194.574 7.87 1,693,581 ES II - Max 7 (post 2000), Generations - Max 7 336,121.073 7.96 2,675,524 Landmark - 7% Solution 160,813.629 7.93 1,275,252 Value 51,170.187 8.19 419,084 ----------------- --------------- 11,515,624.903 $92,152,499 ================= =============== GCG TRUST INVESTORS ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,609.111 $9.75 $54,689 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,588.611 9.75 25,239 ES II - Max 7 (post 2000), Generations - Max 7 22,298.988 9.74 217,192 ----------------- --------------- 30,496.710 $297,120 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY Contracts in accumulation period: DVA 3,893.026 $7.87 $30,638 DVA Plus - Standard (pre February 2000) 6,459.288 7.85 50,705 DVA Plus - Standard (post January 2000 & post 2000) 13,266.013 7.85 104,138 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 169,670.331 7.85 1,331,912 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 209,858.323 7.84 1,645,289 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 31,083.841 7.84 243,697 DVA Plus - Max 5.5 (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) 14,675.334 7.83 114,908 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 114,379.561 7.83 895,592 139
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY (CONTINUED) 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) 166,809.449 $7.83 $1,306,118 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 72,176.099 7.83 565,139 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 95,249.109 7.82 744,848 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 155,619.727 7.82 1,216,946 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,107.867 7.82 16,484 Access - Annual Ratchet (post April 2001) 5,346.492 7.81 41,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 37,673.562 7.81 294,231 Access - 7% Solution (post April 2001) 47.133 7.81 368 Access - Max 7 (post April 2001) 8,558.644 7.80 66,757 ES II - Max 7 (post 2000), Generations - Max 7 54,217.816 7.82 423,983 Landmark - 7% Solution 18,981.527 7.81 148,246 Value 9,884.594 7.87 77,792 VA Option I 2,395.075 7.87 18,849 VA Option II 202.769 7.85 1,592 VA Option III 74.699 7.85 586 VA Bonus Option I 11,543.916 7.84 90,504 VA Bonus Option II 2,705.468 7.83 21,184 VA Bonus Option III 2,734.971 7.82 21,387 SmartDesign Advantage Option I 277.276 7.80 2,163 SmartDesign Advantage Option II 1,939.734 7.79 15,111 ----------------- --------------- 1,211,831.644 $9,490,923 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 12,546.872 $9.49 $119,070 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 51.434 9.49 488 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,332.630 9.48 107,433 140
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,802.704 $9.48 $121,370 ES II - Max 7 (post 2000), Generations - Max 7 17,168.053 9.48 162,753 ----------------- --------------- 53,901.693 $511,114 ================= =============== GCG TRUST JANUS GROWTH AND INCOME Contracts in accumulation period: DVA 19,775.056 $7.11 $140,601 DVA Series 100 3,746.840 7.06 26,453 DVA Plus - Standard (pre February 2000) 78,084.441 7.07 552,057 DVA Plus - Standard (post January 2000 & post 2000) 257,195.925 7.07 1,818,375 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,676,922.509 7.05 11,822,304 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 2,831,574.297 7.04 19,934,283 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 719,851.323 7.03 5,060,555 DVA Plus - Max 5.5 (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) 315,169.992 7.02 2,212,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,160,151.753 7.01 8,132,664 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) 1,909,356.758 7.00 13,365,497 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,307,255.573 6.99 9,137,716 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 2,513,591.776 6.99 17,570,007 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,186,621.478 6.97 22,210,752 141
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST JANUS GROWTH AND INCOME (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,288.195 $6.96 $36,806 Access - Annual Ratchet (post April 2001) 132,023.878 6.95 917,566 Access - Max 5.5 (post April 2001), Landmark - Max 7 584,691.147 6.94 4,057,757 Access - 7% Solution (post April 2001) 103,609.107 6.93 718,011 Access - Max 7 (post April 2001) 255,764.423 6.91 1,767,332 ES II - Max 7 (post 2000), Generations - Max 7 803,023.067 6.98 5,605,101 Landmark - 7% Solution 184,660.669 6.95 1,283,392 Value 54,814.567 7.13 390,828 VA Option I 150,753.831 7.12 1,073,367 VA Option II 48,439.217 7.07 342,465 VA Option III 17,896.151 7.05 126,168 VA Bonus Option I 167,273.116 7.04 1,177,603 VA Bonus Option II 75,159.946 6.99 525,368 VA Bonus Option III 38,566.865 6.97 268,811 SmartDesign Advantage Option I 4,647.962 6.92 32,164 SmartDesign Advantage Option II 7,683.653 6.89 52,940 SmartDesign Advantage Option III 2,197.487 6.87 15,097 ----------------- ---------------- 18,615,791.002 $130,374,533 ================= ================ GCG TRUST JANUS GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 20,265.683 $9.73 $197,185 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,270.030 9.72 60,945 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 24,716.980 9.72 240,249 ES II - Max 7 (post 2000), Generations - Max 7 9,121.503 9.71 88,570 ----------------- ---------------- 60,374.196 $586,949 ================= ================ GCG TRUST LARGE CAP VALUE Contracts in accumulation period: DVA 45,296.402 $7.62 $345,159 DVA Series 100 2,185.539 7.54 16,479 DVA Plus - Standard (pre February 2000) 154,789.655 7.56 1,170,210 DVA Plus - Standard (post January 2000 & post 2000) 533,166.943 7.55 4,025,410 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,513,819.120 7.53 33,989,058 142
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE (CONTINUED) 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 6,465,372.229 $7.52 $48,619,599 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,128,387.026 7.50 15,962,903 DVA Plus - Max 5.5 (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) 1,328,528.910 7.48 9,937,396 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,660,134.746 7.47 19,871,207 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) 4,117,976.668 7.46 30,720,106 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,719,020.902 7.45 20,256,706 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 5,103,820.816 7.44 37,972,427 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 6,279,536.964 7.42 46,594,164 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 685.718 7.41 5,081 Access - Annual Ratchet (post April 2001) 153,495.420 7.39 1,134,331 Access - Max 5.5 (post April 2001), Landmark - Max 7 916,295.246 7.37 6,753,096 Access - 7% Solution (post April 2001) 190,461.403 7.36 1,401,796 Access - Max 7 (post April 2001) 486,302.358 7.34 3,569,459 ES II - Max 7 (post 2000), Generations - Max 7 1,216,648.520 7.43 9,039,699 Landmark - 7% Solution 483,293.216 7.40 3,576,370 Access One 185.000 7.73 1,430 Value 102,148.307 7.64 780,413 ----------------- ---------------- 39,601,551.108 $295,742,499 ================= ================ 143
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 8,771.780 $10.27 $90,086 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 220.967 10.26 2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,363.630 10.26 96,071 ES II - Max 7 (post 2000), Generations - Max 7 14,142.339 10.25 144,959 ----------------- --------------- 32,498.716 $333,383 ================= =============== GCG TRUST LIMITED MATURITY BOND Currently payable annuity products: DVA 80 2,359.019 $21.88 $51,615 DVA 6,619.882 21.27 140,805 Contracts in accumulation period: DVA 80 34,224.282 21.88 748,828 DVA 846,602.221 21.27 18,007,229 DVA Series 100 12,011.152 20.25 243,226 DVA Plus - Standard (pre February 2000) 431,757.457 20.58 8,885,568 DVA Plus - Standard (post January 2000 & post 2000) 325,166.054 20.38 6,626,884 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 6,261,694.220 20.16 126,235,755 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 3,840,532.602 19.95 76,618,625 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,063,485.056 19.73 60,442,560 DVA Plus - Max 5.5 (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) 629,610.846 19.53 12,296,300 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 917,937.051 19.40 17,807,979 144
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIMITED MATURITY BOND (CONTINUED) 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) 4,436,722.906 $19.29 $85,584,385 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,001,052.596 19.12 19,140,126 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 2,793,640.320 18.99 53,051,230 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,647,004.840 18.72 49,551,931 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,404.724 18.62 119,256 Access - Annual Ratchet (post April 2001) 115,924.795 18.36 2,128,379 Access - Max 5.5 (post April 2001), Landmark - Max 7 187,662.150 18.23 3,421,081 Access - 7% Solution (post April 2001) 102,237.878 18.10 1,850,506 Access - Max 7 (post April 2001) 117,719.660 17.84 2,100,119 ES II - Max 7 (post 2000), Generations - Max 7 457,642.573 18.89 8,644,868 Landmark - 7% Solution 148,372.597 18.49 2,743,409 Access One 1,261.000 22.84 28,801 Value 118,011.620 21.60 2,549,051 ----------------- ---------------- 28,505,657.501 $559,018,516 ================= ================ GCG TRUST LIQUID ASSET Currently payable annuity products: DVA 80 2,612.969 $17.21 $44,969 DVA 1,526.708 16.74 25,557 Contracts in accumulation period: DVA 80 149,703.142 17.21 2,576,391 DVA 679,365.487 16.74 11,372,578 DVA Series 100 44,784.895 15.93 713,423 DVA Plus - Standard (pre February 2000) 695,808.213 16.18 11,258,177 DVA Plus - Standard (post January 2000 & post 2000) 337,508.715 16.00 5,400,139 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 12,089,343.159 15.84 191,495,196 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 10,877,062.661 15.66 170,334,801 145
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET (CONTINUED) 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,577,965.813 $15.51 $86,514,250 DVA Plus - Max 5.5 (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) 2,297,033.266 15.33 35,213,520 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,599,933.376 15.23 24,366,985 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) 8,964,021.189 15.17 135,984,201 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,590,575.818 15.01 23,874,543 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 10,613,767.944 14.91 158,251,280 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 7,015,870.143 14.70 103,133,291 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,321.100 14.64 282,861 Access - Annual Ratchet (post April 2001) 327,508.915 14.43 4,725,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 514,408.939 14.33 7,371,480 Access - 7% Solution (post April 2001) 102,402.302 14.23 1,457,185 Access - Max 7 (post April 2001) 300,237.886 14.03 4,212,338 ES II - Max 7 (post 2000), Generations - Max 7 749,575.552 14.85 11,131,197 Landmark - 7% Solution 246,747.572 14.54 3,587,710 Value 117,368.795 16.98 1,992,922 VA Option I 125,681.154 16.86 2,118,984 VA Option II 65,629.633 16.16 1,060,575 VA Option III 17,951.798 15.82 283,997 VA Bonus Option I 379,646.273 15.71 5,964,243 VA Bonus Option II 116,033.602 15.05 1,746,306 VA Bonus Option III 130,082.443 14.74 1,917,415 SmartDesign Advantage Option I 948,016.951 14.15 13,414,440 SmartDesign Advantage Option II 44,327.639 13.75 609,505 SmartDesign Advantage Option III 29,720.969 13.46 400,044 Rollover Choice Option I 25,088.627 17.34 435,037 ----------------- ----------------- 66,796,633.647 $1,023,271,494 ================= ================= 146
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 28,048.150 $9.99 $280,201 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 14,084.319 9.99 140,702 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 14,647.450 9.98 146,182 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 65,111.528 9.98 649,813 ES II - Max 7 (post 2000), Generations - Max 7 58,442.123 9.98 583,252 ----------------- ---------------- 180,333.570 $1,800,150 ================= ================ GCG TRUST MANAGED GLOBAL Currently payable annuity products: DVA 6,904.811 $14.39 $99,360 Contracts in accumulation period: DVA 80 12,796.817 14.69 187,985 DVA 1,163,854.594 14.39 16,747,868 DVA Series 100 19,801.323 13.89 275,040 DVA Plus - Standard (pre February 2000) 392,630.543 14.02 5,504,680 DVA Plus - Standard (post January 2000 & post 2000) 262,335.765 13.93 3,654,337 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,965,665.844 13.80 27,126,189 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 2,246,689.590 13.71 30,802,114 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,796,757.957 13.59 38,007,941 DVA Plus - Max 5.5 (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) 629,167.687 13.50 8,493,764 147
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MANAGED GLOBAL (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,121,603.349 $13.43 $15,063,133 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) 1,143,491.481 13.36 15,277,046 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 592,153.300 13.29 7,869,717 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 1,564,387.791 13.23 20,696,850 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,515,103.147 13.09 19,832,700 Access - Annual Ratchet (post April 2001) 44,003.244 12.89 567,202 Access - Max 5.5 (post April 2001), Landmark - Max 7 210,410.956 12.82 2,697,468 Access - 7% Solution (post April 2001) 59,805.081 12.75 762,515 Access - Max 7 (post April 2001) 102,390.142 12.62 1,292,164 ES II - Max 7 (post 2000), Generations - Max 7 367,449.857 13.16 4,835,640 Landmark - 7% Solution 127,169.390 12.95 1,646,844 Access One 953.000 15.12 14,409 Value 113,467.340 14.51 1,646,411 ----------------- ---------------- 16,458,993.009 $223,101,377 ================= ================ GCG TRUST MANAGED GLOBAL ADVISOR Contracts in accumulation period: Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,121.056 $10.23 $31,928 ES II - Max 7 (post 2000), Generations - Max 7 1,726.583 10.23 17,663 ----------------- ---------------- 4,847.639 $49,591 ================= ================ GCG TRUST MID-CAP GROWTH Currenlty payable annuity products: DVA 3,693.891 $16.62 $61,392 Contracts in accumulation period: DVA 80 24,281.313 16.90 410,354 DVA 658,498.563 16.62 10,944,247 DVA Series 100 11,781.116 16.14 190,147 DVA Plus - Standard (pre February 2000) 356,065.245 16.28 5,796,742 DVA Plus - Standard (post January 2000 & post 2000) 262,443.098 16.21 4,254,203 148
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,485,147.242 $16.05 $88,036,613 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 3,084,371.759 16.01 49,380,792 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,781,797.316 15.88 60,054,941 DVA Plus - Max 5.5 (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) 1,067,107.577 15.81 16,870,971 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 844,739.953 15.74 13,296,207 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) 4,651,809.596 15.68 72,940,374 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 911,394.113 15.61 14,226,862 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 2,356,960.176 15.55 36,650,731 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,751,560.359 15.42 42,429,061 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,307.595 15.35 20,072 Access - Annual Ratchet (post April 2001) 59,471.114 15.22 905,150 Access - Max 5.5 (post April 2001), Landmark - Max 7 309,800.690 15.16 4,696,578 Access - 7% Solution (post April 2001) 60,108.378 15.10 907,637 Access - Max 7 (post April 2001) 106,351.561 14.97 1,592,083 ES II - Max 7 (post 2000), Generations - Max 7 511,368.087 15.48 7,915,978 Landmark - 7% Solution 130,301.492 15.29 1,992,310 Granite PrimElite - Standard 2,558.699 16.28 41,656 Granite PrimElite - Annual Ratchet 24,641.442 16.05 395,495 Access One 53.000 17.32 918 Value 90,271.530 16.76 1,512,951 ----------------- ---------------- 27,547,884.905 $435,524,465 ================= ================ 149
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,630.831 $9.77 $25,703 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,465.638 9.76 14,305 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 11,583.092 9.76 113,051 ES II - Max 7 (post 2000), Generations - Max 7 40,595.693 9.75 395,808 ----------------- --------------- 56,275.254 $548,867 ================= =============== GCG TRUST REAL ESTATE Currently payable annuity products: DVA 2,632.724 $29.64 $78,034 Contracts in accumulation period: DVA 80 14,372.816 30.48 438,083 DVA 294,492.593 29.64 8,728,760 DVA Series 100 6,317.688 28.21 178,222 DVA Plus - Standard (pre February 2000) 99,481.407 28.65 2,850,142 DVA Plus - Standard (post January 2000 & post 2000) 71,426.257 28.42 2,029,934 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,167,126.261 28.06 32,749,563 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 947,489.751 27.82 26,359,165 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 784,788.188 27.47 21,558,132 DVA Plus - Max 5.5 (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) 149,145.345 27.24 4,062,719 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 242,782.471 27.05 6,567,266 150
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST REAL ESTATE (CONTINUED) 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) 977,817.612 $26.86 $26,264,181 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,008.977 26.67 7,227,809 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 639,503.760 26.48 16,934,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 768,502.886 26.11 20,065,610 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 695.890 25.92 18,037 Access - Annual Ratchet (post April 2001) 28,955.148 25.56 740,094 Access - Max 5.5 (post April 2001), Landmark - Max 7 77,757.492 25.38 1,973,485 Access - 7% Solution (post April 2001) 17,947.437 25.20 452,275 Access - Max 7 (post April 2001) 48,340.758 24.84 1,200,784 ES II - Max 7 (post 2000), Generations - Max 7 222,334.059 26.29 5,845,162 Landmark - 7% Solution 33,005.212 25.74 849,554 Access One 74.000 31.80 2,353 Value 15,433.848 30.06 463,941 ----------------- ---------------- 6,881,432.580 $187,637,365 ================= ================ GCG TRUST REAL ESTATE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 12,247.451 $9.61 $117,698 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,275.170 9.60 21,842 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,555.238 9.60 91,730 ES II - Max 7 (post 2000), Generations - Max 7 4,638.384 9.60 44,528 ----------------- ---------------- 28,716.243 $275,798 ================= ================ GCG TRUST RESEARCH Contracts in accumulation period: DVA 80 3,627.670 $15.91 $57,716 DVA 162,961.471 15.64 2,548,717 DVA Series 100 13,646.311 15.19 207,287 DVA Plus - Standard (pre February 2000) 440,910.844 15.32 6,754,754 DVA Plus - Standard (post January 2000 & post 2000) 171,543.554 15.26 2,617,755 151
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 5,913,309.306 $15.14 $89,527,503 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 2,475,752.225 15.07 37,309,586 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,975,285.355 14.95 74,380,516 DVA Plus - Max 5.5 (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) 838,520.000 14.88 12,477,178 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 921,348.789 14.82 13,654,389 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) 6,171,512.045 14.76 91,091,518 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 792,215.685 14.70 11,645,571 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 2,132,959.006 14.64 31,226,520 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,110,644.796 14.51 30,625,456 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,027.237 14.45 14,844 Access - Annual Ratchet (post April 2001) 52,293.527 14.33 749,366 Access - Max 5.5 (post April 2001), Landmark - Max 7 215,282.859 14.27 3,072,086 Access - 7% Solution (post April 2001) 58,224.072 14.21 827,364 Access - Max 7 (post April 2001) 87,204.903 14.09 1,228,717 ES II - Max 7 (post 2000), Generations - Max 7 377,645.580 14.58 5,506,073 Landmark - 7% Solution 131,250.673 14.39 1,888,697 Granite PrimElite - Standard 2,602.459 15.32 39,870 Granite PrimElite - Annual Ratchet 29,978.465 15.14 453,874 Value 78,969.334 15.78 1,246,136 VA Option I 12,098.531 15.71 190,068 VA Option II 8,360.616 15.32 128,085 152
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) VA Option III 6,455.986 $15.13 $97,679 VA Bonus Option I 45,514.654 15.07 685,906 VA Bonus Option II 25,547.390 14.69 375,291 VA Bonus Option III 15,015.861 14.51 217,880 SmartDesign Advantage Option I 3,982.031 14.16 56,386 SmartDesign Advantage Option II 743.776 13.93 10,361 SmartDesign Advantage Option III 8,243.250 13.75 113,345 ----------------- ---------------- 28,284,678.261 $421,026,494 ================= ================ GCG TRUST RESEARCH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 3,274.243 $9.72 $31,826 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,960.691 9.71 28,748 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 5,729.442 9.71 55,633 ES II - Max 7 (post 2000), Generations - Max 7 21,658.874 9.70 210,091 ----------------- ---------------- 33,623.250 $326,298 ================= ================ GCG TRUST SPECIAL SITUATIONS Contracts in accumulation period: DVA 2,870.905 $6.13 $17,599 DVA Plus - Standard (pre February 2000) 6,734.067 6.10 41,078 DVA Plus - Standard (post January 2000 & post 2000) 65,939.323 6.09 401,570 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 464,522.134 6.08 2,824,295 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 610,059.047 6.07 3,703,058 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 162,394.418 6.06 984,110 DVA Plus - Max 5.5 (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) 123,276.130 6.05 745,821 153
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST SPECIAL SITUATIONS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 246,923.594 $6.04 $1,491,419 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) 327,689.607 6.04 1,979,245 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 292,321.465 6.03 1,762,698 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 401,444.438 6.02 2,416,696 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520,898.404 6.01 3,130,599 Access - Annual Ratchet (post April 2001) 13,630.437 5.99 81,646 Access - Max 5.5 (post April 2001), Landmark - Max 7 96,354.913 5.98 576,202 Access - 7% Solution (post April 2001) 7,583.310 5.97 45,272 Access - Max 7 (post April 2001) 19,023.473 5.96 113,380 ES II - Max 7 (post 2000), Generations - Max 7 170,016.196 6.01 1,021,797 Landmark - 7% Solution 70,820.281 5.99 424,213 Value 6,471.533 6.15 39,800 ----------------- --------------- 3,608,973.675 $21,800,498 ================= =============== GCG TRUST SPECIAL SITUATIONS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,145.777 $9.63 $20,664 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,627.415 9.62 34,896 ----------------- --------------- 5,773.192 $55,560 ================= =============== GCG TRUST STRATEGIC EQUITY Currently payable annuity products: DVA 16,012.956 $10.19 $163,172 Contracts in accumulation period: DVA 80 11,734.623 10.34 121,336 DVA 134,063.017 10.19 1,366,102 DVA Series 100 6,136.461 9.93 60,935 154
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY (CONTINUED) DVA Plus - Standard (pre February 2000) 275,485.690 $10.01 $2,757,612 DVA Plus - Standard (post January 2000 & post 2000) 126,033.889 9.97 1,256,558 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,906,118.345 9.91 28,799,633 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 1,870,964.685 9.86 18,447,712 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,999,021.919 9.80 19,590,415 DVA Plus - Max 5.5 (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) 748,019.466 9.75 7,293,190 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 335,993.421 9.71 3,262,496 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) 2,578,304.124 9.68 24,957,984 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 398,841.111 9.64 3,844,828 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 1,196,567.061 9.61 11,499,009 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,357,779.373 9.54 12,953,215 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 430.560 9.50 4,090 Access - Annual Ratchet (post April 2001) 22,031.797 9.43 207,760 Access - Max 5.5 (post April 2001), Landmark - Max 7 63,802.164 9.40 599,740 Access - 7% Solution (post April 2001) 20,218.871 9.36 189,249 Access - Max 7 (post April 2001) 28,983.967 9.29 269,261 ES II - Max 7 (post 2000), Generations - Max 7 179,597.574 9.57 1,718,749 Landmark - 7% Solution 24,833.591 9.47 235,174 Value 23,302.730 10.26 239,086 ---------------- ---------------- 14,324,277.395 $139,837,306 ================ ================ 155
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,899.546 $9.65 $47,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,511.374 9.64 14,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,318.982 9.63 12,702 ES II - Max 7 (post 2000), Generations - Max 7 314.201 9.63 3,026 ---------------- ---------------- 8,044.103 $77,579 ================ ================ GCG TRUST TOTAL RETURN Contracts in accumulation period: DVA 80 16,067.433 $20.21 $324,723 DVA 206,393.471 19.88 4,103,102 DVA Series 100 3,973.499 19.31 76,728 DVA Plus - Standard (pre February 2000) 631,444.743 19.47 12,294,229 DVA Plus - Standard (post January 2000 & post 2000) 447,612.150 19.39 8,679,200 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 9,138,044.633 19.23 175,724,598 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 4,962,122.568 19.15 95,024,647 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,740,869.851 18.99 109,019,118 DVA Plus - Max 5.5 (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) 859,681.681 18.91 16,256,581 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,672,476.623 18.83 31,492,735 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) 8,722,390.414 18.75 163,544,820 156
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST TOTAL RETURN (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,806,440.987 $18.68 $33,744,318 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 3,921,172.749 18.60 72,933,813 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,012,552.154 18.44 73,991,462 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,957.847 18.37 366,626 Access - Annual Ratchet (post April 2001) 108,560.173 18.21 1,976,881 Access - Max 5.5 (post April 2001), Landmark - Max 7 687,305.380 18.14 12,467,720 Access - 7% Solution (post April 2001) 123,964.300 18.06 2,238,795 Access - Max 7 (post April 2001) 192,906.695 17.91 3,454,959 ES II - Max 7 (post 2000), Generations - Max 7 865,414.745 18.52 16,027,481 Landmark - 7% Solution 311,823.735 18.29 5,703,256 Granite PrimElite - Standard 3,436.014 19.47 66,899 Granite PrimElite - Annual Ratchet 24,501.483 19.23 471,164 Access One 243.000 20.72 5,035 Value 124,189.496 20.05 2,489,999 VA Option I 100,966.989 19.96 2,015,301 VA Option II 58,151.220 19.47 1,132,204 VA Option III 20,971.311 19.23 403,278 VA Bonus Option I 129,465.341 19.15 2,479,261 VA Bonus Option II 136,882.391 18.67 2,555,594 VA Bonus Option III 58,555.225 18.44 1,079,758 SmartDesign Advantage Option I 19,792.659 18.00 356,268 SmartDesign Advantage Option II 7,434.941 17.70 131,598 SmartDesign Advantage Option III 13,605.955 17.48 237,832 Rollover Choice Option I 24,144.989 20.30 490,143 Rollover Choice Option II 414.379 19.96 8,271 ---------------- ----------------- 45,173,931.224 $853,368,397 ================ ================= GCG TRUST TOTAL RETURN ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 14,499.387 $10.04 $145,574 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 19,781.090 10.04 198,602 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 42,679.276 10.03 428,073 ES II - Max 7 (post 2000), Generations - Max 7 18,244.240 10.03 182,990 ---------------- ----------------- 95,203.993 $955,239 ================ ================= 157
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY Currently payable annuity products: DVA 80 196.196 $15.72 $3,084 DVA 625.357 15.47 9,674 Contracts in accumulation period: DVA 80 14,757.269 15.72 231,984 DVA 255,627.944 15.47 3,954,565 DVA Series 100 10,613.579 15.04 159,628 DVA Plus - Standard (pre February 2000) 263,973.651 15.18 4,007,120 DVA Plus - Standard (post January 2000 & post 2000) 87,727.524 15.10 1,324,686 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 2,314,069.828 15.00 34,711,047 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 1,201,589.403 14.92 17,927,714 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,133,007.485 14.82 31,611,171 DVA Plus - Max 5.5 (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) 259,140.361 14.74 3,819,729 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 318,879.888 14.68 4,681,157 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) 2,165,514.354 14.61 31,638,165 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 307,027.413 14.56 4,470,319 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 923,702.340 14.50 13,393,684 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 983,702.944 14.38 14,145,648 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,517.456 14.32 79,010 Access - Annual Ratchet (post April 2001) 20,452.084 14.21 290,624 Access - Max 5.5 (post April 2001), Landmark - Max 7 131,098.668 14.15 1,855,046 158
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY (CONTINUED) Access - 7% Solution (post April 2001) 19,840.272 $14.09 $279,549 Access - Max 7 (post April 2001) 48,682.166 13.98 680,577 ES II - Max 7 (post 2000), Generations - Max 7 160,511.984 14.44 2,317,793 Landmark - 7% Solution 56,537.908 14.27 806,796 Value 12,716.963 15.59 198,257 VA Option I 5,697.794 15.53 88,487 VA Option II 6,030.913 15.16 91,429 VA Option III 701.727 14.97 10,505 VA Bonus Option I 13,323.533 14.91 198,654 VA Bonus Option II 7,148.366 14.56 104,080 VA Bonus Option III 7,163.305 14.38 103,008 SmartDesign Advantage Option I 2,513.045 14.05 35,308 SmartDesign Advantage Option II 1,441.150 13.82 19,917 SmartDesign Advantage Option III 372.008 13.65 5,078 ----------------- ---------------- 11,739,904.878 $173,253,493 ================= ================ GCG TRUST VALUE EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,330.312 $9.63 $41,701 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 4,121.280 9.62 39,647 ES II - Max 7 (post 2000), Generations - Max 7 2,676.572 9.61 25,722 ----------------- ---------------- 11,128.164 $107,070 ================= ================ GCG TRUST VAN KAMPEN GROWTH AND INCOME Currently payable annuity products: DVA 80 487.525 $19.21 $9,365 DVA 6,153.091 18.86 116,047 Contracts in accumulation period: DVA 80 12,569.800 19.21 241,466 DVA 1,174,899.843 18.86 22,158,611 DVA Series 100 41,044.682 18.25 749,065 DVA Plus - Standard (pre February 2000) 802,103.676 18.45 14,798,813 DVA Plus - Standard (post January 2000 & post 2000) 212,478.908 18.34 3,896,863 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 6,183,620.626 18.19 112,480,059 159
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME (CONTINUED) 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 1,951,606.925 $18.08 $35,285,053 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 6,933,408.861 17.94 124,385,355 DVA Plus - Max 5.5 (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) 478,279.632 17.83 8,527,726 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 835,107.303 17.75 14,823,155 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) 7,350,027.957 17.67 129,874,994 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,372.946 17.58 10,835,836 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 1,678,850.979 17.50 29,379,892 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,920,555.207 17.34 33,302,427 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 834.783 17.26 14,408 Access - Annual Ratchet (post April 2001) 40,928.330 17.09 699,465 Access - Max 5.5 (post April 2001), Landmark - Max 7 180,352.195 17.01 3,067,791 Access - 7% Solution (post April 2001) 38,925.362 16.93 659,006 Access - Max 7 (post April 2001) 69,527.951 16.77 1,165,984 ES II - Max 7 (post 2000), Generations - Max 7 274,359.681 17.42 4,779,346 Landmark - 7% Solution 134,276.152 17.17 2,305,522 Access One 48.000 19.76 948 Value 55,540.097 19.04 1,057,483 ----------------- ---------------- 30,992,360.512 $554,614,680 ================= ================ 160
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 42,614.234 $9.79 $417,193 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 1,609.802 9.79 15,760 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 10,565.924 9.78 103,335 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,751.329 9.78 202,948 ES II - Max 7 (post 2000), Generations - Max 7 25,611.638 9.78 250,482 ----------------- --------------- 101,152.927 $989,718 ================= =============== AIM V.I. DENT DEMOGRAPHIC TRENDS Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 1,885.585 $7.36 $13,878 DVA Plus - Standard (post January 2000 & post 2000) 25,365.346 7.35 186,435 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 218,093.842 7.34 1,600,809 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 226,139.250 7.34 1,659,862 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 43,073.626 7.33 315,730 DVA Plus - Max 5.5 (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) 25,792.732 7.32 188,803 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 95,004.921 7.32 695,436 161
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- AIM V.I. DENT DEMOGRAPHIC TRENDS (CONTINUED) 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) 94,533.265 $7.32 $691,983 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 76,298.756 7.31 557,744 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 144,579.250 7.31 1,056,874 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 237,697.824 7.30 1,735,194 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,380.753 7.29 17,356 Access - Annual Ratchet (post April 2001) 36,436.265 7.28 265,256 Access - Max 5.5 (post April 2001), Landmark - Max 7 11,617.804 7.28 84,578 Access - 7% Solution (post April 2001) 8,919.249 7.27 64,843 Access - Max 7 (post April 2001) 109,981.346 7.27 799,564 ES II - Max 7 (post 2000), Generations - Max 7 132,570.005 7.30 967,761 Landmark - 7% Solution 20,619.001 7.29 150,313 VA Option I 2,751.497 7.38 20,306 VA Option II 1,639.386 7.36 12,066 VA Bonus Option I 10,729.473 7.34 78,754 VA Bonus Option II 4,182.723 7.31 30,576 VA Bonus Option III 7,735.578 7.30 56,470 SmartDesign Advantage Option I 9,033.164 7.27 65,671 SmartDesign Advantage Option II 2,133.782 7.25 15,470 SmartDesign Advantage Option III 934.452 7.24 6,765 ----------------- -------------- 1,550,128.875 $11,338,497 ================= ============== AIM V.I. GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,399.031 $7.00 $9,793 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 6,965.519 6.98 48,619 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 984.776 6.97 6,864 VA Option I 26,221.846 7.06 185,126 VA Option II 20,010.222 7.03 140,672 VA Option III 1,160.532 7.02 8,147 VA Bonus Option I 15,898.460 7.02 111,607 VA Bonus Option II 34,050.283 6.99 238,011 162
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH (CONTINUED) VA Bonus Option III 797.868 $6.98 $5,569 SmartDesign Advantage Option I 9,991.085 6.95 69,438 SmartDesign Advantage Option II 3,408.679 6.93 23,622 SmartDesign Advantage Option III 148.669 6.92 1,029 ----------------- -------------- 121,036.970 $848,497 ================= ============== AIM V.I. CAPITAL APPRECIATION Contracts in accumulation period: Rollover Choice Option I 3,701.273 $7.40 $27,389 ----------------- -------------- 3,701.273 $27,389 ================= ============== AIM V.I. CORE EQUITY Contracts in accumulation period: Rollover Choice Option I 4,960.602 $8.26 $40,975 ----------------- -------------- 4,960.602 $40,975 ================= ============== AIM V.I. PREMIER EQUITY Contracts in accumulation period: Rollover Choice Option I 6,113.296 $6.84 $41,815 Rollover Choice Option II 5,600.805 6.82 38,197 ----------------- -------------- 11,714.101 $80,012 ================= ============== ALLIANCE BERNSTEIN VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (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) 5,317.948 $8.58 $45,628 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 8,584.788 8.55 73,400 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,498.975 8.53 46,906 VA Option I 53,589.426 8.66 464,084 VA Option II 41,567.535 8.62 358,312 VA Option III 16,435.620 8.60 141,346 VA Bonus Option I 69,917.676 8.60 601,292 VA Bonus Option II 71,475.693 8.56 611,832 VA Bonus Option III 17,783.469 8.54 151,871 SmartDesign Advantage Option I 12,252.266 8.50 104,144 SmartDesign Advantage Option II 6,907.718 8.48 58,577 SmartDesign Advantage Option III 6,158.098 8.46 52,098 ----------------- -------------- 315,489.212 $2,709,490 ================= ============== 163
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (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) 11,011.021 $7.33 $80,711 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 5,073.118 7.31 37,084 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,048.890 7.29 14,936 VA Option I 111,625.699 7.40 826,030 VA Option II 107,568.702 7.37 792,781 VA Option III 37,970.848 7.35 279,086 VA Bonus Option I 187,892.497 7.35 1,381,010 VA Bonus Option II 110,199.338 7.32 806,659 VA Bonus Option III 49,729.010 7.30 363,022 SmartDesign Advantage Option I 7,581.492 7.27 55,117 SmartDesign Advantage Option II 11,489.341 7.25 83,298 SmartDesign Advantage Option III 1,624.503 7.23 11,745 ---------------- ------------- 643,814.459 $4,731,479 ================ ============= ALLIANCE PREMIER GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (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) 18,699.611 $6.50 $121,547 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 4,096.233 6.48 26,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 242.415 6.47 1,568 VA Option I 41,282.713 6.56 270,815 VA Option II 87,298.365 6.54 570,931 VA Option III 21,482.259 6.52 140,064 VA Bonus Option I 48,076.653 6.52 313,460 VA Bonus Option II 63,675.099 6.49 413,251 VA Bonus Option III 13,118.794 6.47 84,879 SmartDesign Advantage Option I 10,347.731 6.44 66,639 SmartDesign Advantage Option II 10,463.152 6.43 67,278 SmartDesign Advantage Option III 2,733.252 6.41 17,520 ---------------- ------------- 321,516.277 $2,094,496 ================ ============= 164
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH Contracts in accumulation period: DVA 6,391.315 $6.41 $40,968 DVA Plus - Standard (pre February 2000) 9,787.230 6.39 62,540 DVA Plus - Standard (post January 2000 & post 2000) 14,326.050 6.38 91,400 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 523,176.282 6.37 3,332,633 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 534,217.197 6.37 3,402,964 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 219,814.733 6.36 1,398,022 DVA Plus - Max 5.5 (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) 69,147.668 6.35 439,088 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 202,568.992 6.35 1,286,313 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) 256,320.522 6.34 1,625,072 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 138,234.806 6.34 876,409 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 244,585.622 6.33 1,548,227 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 473,546.962 6.33 2,997,552 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 7,612.918 6.32 48,114 Access - Annual Ratchet (post April 2001) 4,842.214 6.31 30,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 107,164.703 6.31 676,209 Access - 7% Solution (post April 2001) 72,400.853 6.30 456,125 Access - Max 7 (post April 2001) 13,477.384 6.29 84,773 ES II - Max 7 (post 2000), Generations - Max 7 147,714.687 6.33 935,034 Landmark - 7% Solution 72,837.366 6.32 460,332 Value 16,144.991 6.42 103,651 VA Option I 117,835.906 6.42 756,507 165
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH (CONTINUED) VA Option II 41,737.349 $6.39 $266,702 VA Option III 15,098.206 6.37 96,176 VA Bonus Option I 156,999.146 6.37 1,000,085 VA Bonus Option II 74,614.341 6.34 473,055 VA Bonus Option III 53,634.764 6.32 338,972 SmartDesign Advantage Option I 14,612.297 6.30 92,057 SmartDesign Advantage Option II 8,816.847 6.28 55,370 SmartDesign Advantage Option III 2,814.395 6.26 17,618 Rollover Choice Option I 30,532.901 6.43 196,327 Rollover Choice Option II 3,701.211 6.42 23,762 Rollover Choice Option III 607.274 6.40 3,887 ---------------- --------------- 3,655,317.132 $23,216,498 ================ =============== FIDELITY(R) VIP EQUITY-INCOME Contracts in accumulation period: DVA 4,246.161 $7.88 $33,460 DVA Series 100 525.907 7.84 4,123 DVA Plus - Standard (pre February 2000) 5,651.143 7.85 44,361 DVA Plus - Standard (post January 2000 & post 2000) 37,470.212 7.85 294,141 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 478,394.663 7.83 3,745,830 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 321,871.933 7.83 2,520,257 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 185,664.648 7.82 1,451,898 DVA Plus - Max 5.5 (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) 70,101.597 7.81 547,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 177,882.505 7.80 1,387,484 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) 338,456.229 7.80 2,639,959 166
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP EQUITY-INCOME (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 139,297.067 $7.79 $1,085,124 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 178,751.984 7.79 1,392,478 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 250,947.059 7.78 1,952,368 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,459.360 7.77 73,499 Access - Annual Ratchet (post April 2001) 18,935.799 7.76 146,942 Access - Max 5.5 (post April 2001), Landmark - Max 7 54,903.954 7.75 425,506 Access - 7% Solution (post April 2001) 46,318.279 7.75 358,967 Access - Max 7 (post April 2001) 7,498.006 7.74 58,035 ES II - Max 7 (post 2000), Generations - Max 7 70,753.511 7.78 550,462 Landmark - 7% Solution 19,711.625 7.76 152,962 Value 3,346.119 7.89 26,401 VA Option I 137,710.507 7.89 1,086,536 VA Option II 67,873.888 7.85 532,810 VA Option III 26,357.099 7.83 206,376 VA Bonus Option I 178,215.219 7.83 1,395,425 VA Bonus Option II 140,603.473 7.79 1,095,301 VA Bonus Option III 24,656.472 7.78 191,827 SmartDesign Advantage Option I 15,527.727 7.74 120,185 SmartDesign Advantage Option II 10,722.407 7.72 82,777 SmartDesign Advantage Option III 7,831.391 7.70 60,302 Rollover Choice Option I 21,033.949 7.91 166,379 Rollover Choice Option II 2,414.475 7.89 19,050 Rollover Choice Option III 748.840 7.87 5,893 ---------------- --------------- 3,053,883.208 $23,854,611 ================ =============== FIDELITY(R) VIP CONTRAFUND(R) Contracts in accumulation period: DVA Plus - Max 5.5 (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) 10,193.484 $8.63 $87,970 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 8,870.371 8.60 76,285 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,392.267 8.58 166,386 VA Option I 86,387.123 8.71 752,432 VA Option II 77,060.412 8.67 668,114 VA Option III 17,280.541 8.65 149,477 VA Bonus Option I 141,706.160 8.64 1,224,341 VA Bonus Option II 80,927.058 8.61 696,782 167
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) (CONTINUED) VA Bonus Option III 26,329.715 $8.59 $226,172 SmartDesign Advantage Option I 5,170.226 8.55 44,205 SmartDesign Advantage Option II 11,635.946 8.52 99,138 SmartDesign Advantage Option III 5,478.254 8.50 46,565 Rollover Choice Option I 18,394.766 8.73 160,586 Rollover Choice Option II 4,124.316 8.71 35,923 Rollover Choice Option III 537.961 8.69 4,675 --------------- -------------- 513,488.600 $4,439,051 =============== ============== FIDELITY(R) VIP OVERSEAS Contracts in accumulation period: Rollover Choice Option I 1,171.175 $7.89 $9,241 --------------- -------------- 1,171.175 $9,241 =============== ============== FRANKLIN SMALL CAP VALUE SECURITIES Contracts in accumulation period: Rollover Choice Option I 1,802.105 $8.99 $16,201 Rollover Choice Option II 137.390 8.97 1,232 --------------- -------------- 1,939.495 $17,433 =============== ============== GREENWICH APPRECIATION Contracts in accumulation period: Granite PrimElite - Standard 410.469 $14.02 $5,755 Granite PrimElite - Annual Ratchet 42,037.067 13.88 583,474 --------------- -------------- 42,447.536 $589,229 =============== ============== GALAXY VIP ASSET ALLOCATION Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 14,470.820 $8.15 $117,937 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 41,973.587 8.14 341,665 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,092.860 8.11 33,193 168
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP ASSET ALLOCATION (CONTINUED) DVA Plus - Max 5.5 (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) 7,686.299 $8.10 $62,259 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) 3,094.826 8.07 24,975 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 6,392.631 8.05 51,461 ---------------- --------------- 77,711.023 $631,490 ================ =============== GALAXY VIP EQUITY Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 6,146.836 $6.57 $40,385 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 41,997.580 6.56 275,504 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 9,438.274 6.54 61,726 DVA Plus - Max 5.5 (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) 2,533.499 6.53 16,544 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) 2,842.961 6.50 18,479 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 9,491.052 6.48 61,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,067.330 6.46 13,355 ---------------- --------------- 74,517.532 $487,495 ================ =============== 169
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,973.536 $7.56 $37,600 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 6,935.812 7.55 52,365 DVA Plus - Max 5.5 (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) 941.925 7.51 7,074 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) 2,055.178 7.49 15,393 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 778.183 7.46 5,805 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520.260 7.44 3,871 ---------------- --------------- 16,204.894 $122,108 ================ =============== GALAXY VIP HIGH QUALITY BOND Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 3,333.820 $12.74 $42,473 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 2,441.177 12.72 31,052 DVA Plus - Max 5.5 (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) 1,264.887 12.65 16,001 170
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP HIGH QUALITY BOND (CONTINUED) 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) 261.886 $12.61 $3,302 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 2,995.152 12.57 37,649 ---------------- --------------- 10,296.922 $130,477 ================ =============== GALAXY VIP SMALL COMPANY GROWTH Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,744.000 $8.69 $15,155 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 1,318.134 8.67 11,428 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,508.000 8.65 13,044 DVA Plus - Max 5.5 (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) 506.975 8.63 4,375 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 1,382.134 8.57 11,845 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 98.104 8.55 839 ---------------- --------------- 6,557.347 $56,686 ================ =============== ING GET FUND - SERIES N Contracts in accumulation period: VA Option I 390,804.171 $10.10 $3,947,122 VA Option II 213,031.411 10.05 2,140,966 VA Option III 117,577.827 10.03 1,179,306 VA Bonus Option I 972,908.364 10.02 9,748,542 VA Bonus Option II 682,003.499 9.98 6,806,395 VA Bonus Option III 485,961.261 9.96 4,840,174 ---------------- --------------- 2,862,286.533 $28,662,505 ================ =============== 171
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES P Contracts in accumulation period: DVA Plus - Max 5.5 (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) 67,854.231 $9.93 $673,793 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 10,497.941 9.91 104,035 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,684.163 9.89 36,436 VA Option I 1,705,435.036 10.02 17,088,459 VA Option II 972,549.749 9.98 9,706,046 VA Option III 401,541.204 9.96 3,999,350 VA Bonus Option I 5,315,976.104 9.95 52,893,962 VA Bonus Option II 3,474,689.314 9.91 34,434,171 VA Bonus Option III 2,205,103.224 9.89 21,808,471 SmartDesign Advantage Option I 108,591.586 9.86 1,070,713 SmartDesign Advantage Option II 35,661.831 9.83 350,556 SmartDesign Advantage Option III 26,860.854 9.81 263,505 ----------------- ---------------- 14,328,445.237 $142,429,497 ================= ================ ING GET FUND - SERIES Q Contracts in accumulation period: DVA Plus - Max 5.5 (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) 562,383.289 $10.03 $5,640,704 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 284,409.580 10.01 2,846,940 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 83,909.189 9.99 838,253 VA Option I 1,999,208.942 10.10 20,192,010 VA Option II 1,409,733.467 10.07 14,196,016 VA Option III 491,168.651 10.05 4,936,245 VA Bonus Option I 4,783,644.544 10.04 48,027,791 VA Bonus Option II 3,845,316.589 10.01 38,491,619 VA Bonus Option III 1,887,729.911 10.00 18,877,299 SmartDesign Advantage Option I 1,028,249.267 9.97 10,251,645 SmartDesign Advantage Option II 217,938.548 9.94 2,166,309 SmartDesign Advantage Option III 253,781.731 9.93 2,520,053 Rollover Choice Option I 2,541.246 10.12 25,717 Rollover Choice Option II 4,941.125 10.10 49,905 ----------------- ---------------- 16,854,956.079 $169,060,506 ================= ================ 172
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES R Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,074,925.572 $10.09 $10,845,999 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 257,403.873 10.07 2,592,057 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 115,167.896 10.06 1,158,589 VA Option I 2,104,589.356 10.14 21,340,536 VA Option II 988,297.070 10.12 10,001,566 VA Option III 506,820.458 10.10 5,118,887 VA Bonus Option I 4,259,757.948 10.10 43,023,555 VA Bonus Option II 3,262,756.657 10.08 32,888,587 VA Bonus Option III 1,891,866.395 10.06 19,032,176 SmartDesign Advantage Option I 1,141,597.398 10.04 11,461,638 SmartDesign Advantage Option II 716,661.831 10.02 7,180,952 SmartDesign Advantage Option III 566,849.087 10.01 5,674,159 Rollover Choice Option I 19,740.797 10.16 200,566 Rollover Choice Option II 4,164.678 10.14 42,230 ----------------- ---------------- 16,910,599.016 $170,561,497 ================= ================ ING GET FUND - SERIES S Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,272,002.001 $10.03 $12,758,180 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 714,136.233 10.02 7,155,645 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 253,670.431 10.01 2,539,241 VA Option I 2,645,718.489 10.07 26,642,385 VA Option II 1,006,108.528 10.05 10,111,391 VA Option III 531,316.937 10.04 5,334,422 VA Bonus Option I 5,903,407.361 10.04 59,270,210 VA Bonus Option II 3,536,752.857 10.02 35,438,264 VA Bonus Option III 2,276,351.650 10.01 22,786,280 SmartDesign Advantage Option I 1,993,960.945 10.00 19,939,609 SmartDesign Advantage Option II 1,229,819.186 9.99 12,285,894 SmartDesign Advantage Option III 467,734.302 9.98 4,667,988 Rollover Choice Option I 31,718.983 10.08 319,727 Rollover Choice Option II 4,790.846 10.07 48,244 ----------------- ---------------- 21,867,488.749 $219,297,480 ================= ================ 173
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES T Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 50,400.668 $10.08 $508,039 DVA Plus - Max 5.5 (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) 1,558,991.778 10.07 15,699,047 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 19,504.482 10.07 196,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 171,909.156 10.06 1,729,406 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 508,430.836 10.06 5,114,814 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 402,293.548 10.06 4,047,073 ES II - Max 7 (post 2000), Generations - Max 7 95,839.486 10.06 964,145 VA Option I 2,265,324.445 10.09 22,857,124 VA Option II 986,184.393 10.08 9,940,739 VA Option III 395,886.131 10.08 3,990,532 VA Bonus Option I 6,903,091.797 10.07 69,514,134 VA Bonus Option II 3,462,362.180 10.06 34,831,364 VA Bonus Option III 2,223,311.868 10.06 22,366,517 SmartDesign Advantage Option I 2,313,192.394 10.05 23,247,584 SmartDesign Advantage Option II 1,164,309.907 10.04 11,689,671 SmartDesign Advantage Option III 1,014,350.218 10.04 10,184,076 Rollover Choice Option I 105,907.907 10.10 1,069,670 Rollover Choice Option II 1,397.340 10.09 14,099 ----------------- ---------------- 23,642,688.533 $237,964,444 ================= ================ ING GET FUND - SERIES U Contracts in accumulation period: 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 1,187.025 $10.00 $11,870 VA Option I 1,571.485 10.00 15,715 VA Option II 6,507.823 10.00 65,078 VA Option III 1,409.047 10.00 14,090 VA Bonus Option I 36,166.923 10.00 361,669 VA Bonus Option II 8,169.053 10.00 81,691 SmartDesign Advantage Option I 3,233.024 9.99 32,298 Rollover Choice Option I 46,529.254 10.00 465,293 ----------------- ---------------- 104,773.634 $1,047,704 ================= ================ 174
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING ALGER GROWTH Contracts in accumulation period: Rollover Choice Option I 5,955.720 $6.56 $39,070 ----------------- --------------- 5,955.720 $39,070 ================= =============== ING AMERICAN CENTURY SMALL CAP VALUE Contracts in accumulation period: Rollover Choice Option II 215.415 $8.10 $1,745 ----------------- --------------- 215.415 $1,745 ================= =============== ING J.P. MORGAN MID CAP VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,313.035 $9.15 $12,014 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 105.865 9.14 968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 279.120 9.13 2,548 VA Option I 7,703.109 9.19 70,792 VA Option II 325.073 9.17 2,981 VA Option III 871.507 9.16 7,983 VA Bonus Option I 12,516.020 9.16 114,647 VA Bonus Option II 6,147.437 9.14 56,188 VA Bonus Option III 2,029.335 9.13 18,528 SmartDesign Advantage Option I 525.395 9.11 4,786 SmartDesign Advantage Option II 500.283 9.10 4,553 SmartDesign Advantage Option III 525.629 9.09 4,778 ----------------- --------------- 32,841.808 $300,766 ================= =============== ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) Contracts in accumulation period: DVA Plus - Max 5.5 (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) 9,202.920 $6.12 $56,322 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 1,495.904 6.10 9,125 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,820.488 6.08 41,469 VA Option I 24,402.739 6.18 150,809 VA Option II 24,352.603 6.15 149,769 VA Option III 9,183.824 6.13 56,297 VA Bonus Option I 51,742.510 6.13 317,182 175
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) (CONTINUED) VA Bonus Option II 45,652.230 $6.10 $278,479 VA Bonus Option III 27,827.914 6.09 169,472 SmartDesign Advantage Option I 7,426.711 6.06 45,006 SmartDesign Advantage Option II 949.187 6.04 5,733 --------------- -------------- 209,057.030 $1,279,663 =============== ============== ING MFS(R) CAPITAL OPPORTUNITIES (SERVICE CLASS) Contracts in accumulation period: Rollover Choice Option I 10,569.482 $6.85 $72,401 --------------- -------------- 10,569.482 $72,401 =============== ============== ING MFS(R) GLOBAL GROWTH Contracts in accumulation period: 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 110.304 $8.29 $914 VA Option I 1,482.246 8.34 12,362 VA Option II 1,343.372 8.32 11,177 VA Bonus Option I 4,797.670 8.31 39,869 VA Bonus Option II 295.240 8.29 2,448 VA Bonus Option III 192.981 8.28 1,598 SmartDesign Advantage Option I 595.582 8.27 4,925 Rollover Choice Option I 222.879 8.35 1,861 --------------- -------------- 9,040.274 $75,154 =============== ============== ING OPCAP BALANCED VALUE Contracts in accumulation period: Rollover Choice Option I 16,208.427 $7.80 $126,426 --------------- -------------- 16,208.427 $126,426 =============== ============== ING PIMCO TOTAL RETURN Contracts in accumulation period: Rollover Choice Option I 55,182.425 $10.75 $593,211 --------------- -------------- 55,182.425 $593,211 =============== ============== ING SALOMON BROS. CAPITAL Contracts in accumulation period: Rollover Choice Option I 1,231.608 $7.41 $9,126 --------------- -------------- 1,231.608 $9,126 =============== ============== ING SALOMON BROS. INVESTORS VALUE Contracts in accumulation period: Rollover Choice Option I 487.219 $7.61 $3,708 --------------- -------------- 487.219 $3,708 =============== ============== 176
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING SCUDDER INTERNATIONAL GROWTH Contracts in accumulation period: Rollover Choice Option I 534.407 $8.14 $4,350 Rollover Choice Option II 385.164 8.13 3,131 --------------- ---------------- 919.571 $7,481 =============== ================ ING T. ROWE PRICE GROWTH EQUITY Rollover Choice Option I 18,694.132 $7.52 $140,580 Rollover Choice Option II 390.902 7.51 2,936 --------------- ---------------- 19,085.034 $143,516 =============== ================ ING UBS TACTICAL ASSET ALLOCATION Contracts in accumulation period: Rollover Choice Option I 297.448 $7.54 $2,243 --------------- ---------------- 297.448 $2,243 =============== ================ ING VAN KAMPEN COMSTOCK Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 28,765.909 $8.30 $238,757 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 2,563.257 8.30 21,275 DVA Plus - Max 5.5 (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) 4,117.380 8.29 34,133 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 283.320 8.29 2,349 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 29,823.131 8.28 246,936 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 1,649.302 8.28 13,656 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,188.813 8.27 34,641 ES II - Max 7 (post 2000), Generations - Max 7 105,532.227 8.27 872,752 VA Option I 6,159.801 8.32 51,250 VA Option II 4,430.488 8.31 36,817 VA Option III 109.415 8.30 908 VA Bonus Option I 5,134.250 8.30 42,614 VA Bonus Option II 6,396.200 8.28 52,961 VA Bonus Option III 2,101.826 8.27 17,382 177
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN COMSTOCK (CONTINUED) SmartDesign Advantage Option I 1,514.971 $8.25 $12,499 SmartDesign Advantage Option II 2,191.557 8.24 18,058 Rollover Choice Option I 4,737.926 8.34 39,514 ----------------- --------------- 209,699.773 $1,736,502 ================= =============== ING VP WORLDWIDE GROWTH Contracts in accumulation period: DVA 5,517.312 $5.26 $29,021 DVA Plus - Standard (pre February 2000) 12,358.456 5.23 64,635 DVA Plus - Standard (post January 2000 & post 2000) 49,480.801 5.22 258,290 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 467,246.705 5.21 2,434,355 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 859,281.375 5.20 4,468,263 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 142,057.864 5.19 737,280 DVA Plus - Max 5.5 (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) 116,508.310 5.18 603,513 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 322,466.194 5.17 1,667,150 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) 361,646.549 5.16 1,866,096 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 349,870.710 5.16 1,805,333 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 598,427.686 5.15 3,081,903 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,083,707.075 5.14 5,570,254 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,003.284 5.13 5,147 Access - Annual Ratchet (post April 2001) 39,020.638 5.12 199,786 178
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP WORLDWIDE GROWTH (CONTINUED) Access - Max 5.5 (post April 2001), Landmark - Max 7 138,853.238 $5.11 $709,540 Access - 7% Solution (post April 2001) 57,393.340 5.10 292,706 Access - Max 7 (post April 2001) 78,477.936 5.09 399,453 ES II - Max 7 (post 2000), Generations - Max 7 382,518.737 5.14 1,966,146 Landmark - 7% Solution 100,549.031 5.12 514,811 Value 31,341.713 5.28 165,484 VA Option I 13,906.179 5.27 73,286 VA Option II 22,034.369 5.23 115,240 VA Option III 3,808.449 5.21 19,842 VA Bonus Option I 25,910.251 5.20 134,733 VA Bonus Option II 20,896.200 5.16 107,824 VA Bonus Option III 6,582.348 5.14 33,833 SmartDesign Advantage Option I 5,942.421 5.10 30,306 SmartDesign Advantage Option II 819.595 5.07 4,155 SmartDesign Advantage Option III 1,408.659 5.05 7,114 ----------------- --------------- 5,299,035.425 $27,365,499 ================= =============== ING VP BOND Contracts in accumulation period: DVA 80 5,835.705 $10.69 $62,384 DVA 1,384.830 10.67 14,776 DVA Series 100 460.852 10.65 4,908 DVA Plus - Standard (pre February 2000) 13,699.520 10.65 145,900 DVA Plus - Standard (post January 2000 & post 2000) 65,448.385 10.65 697,025 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 719,278.721 10.64 7,653,126 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 665,314.190 10.64 7,078,943 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 290,354.137 10.63 3,086,464 DVA Plus - Max 5.5 (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) 48,128.304 10.63 511,604 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 88,274.683 10.63 938,360 179
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP BOND (CONTINUED) 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) 707,083.140 $10.62 $7,509,223 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,866.859 10.62 2,324,366 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 616,916.853 10.62 6,551,657 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 456,890.838 10.61 4,847,612 Access - Annual Ratchet (post April 2001) 9,276.800 10.60 98,334 Access - Max 5.5 (post April 2001), Landmark - Max 7 20,543.142 10.59 217,552 Access - 7% Solution (post April 2001) 45,161.920 10.59 478,265 Access - Max 7 (post April 2001) 93,174.370 10.58 985,785 ES II - Max 7 (post 2000), Generations - Max 7 564,471.057 10.61 5,989,038 Landmark - 7% Solution 16,610.577 10.60 176,072 Value 21,077.526 10.68 225,108 ---------------- -------------- 4,668,252.409 $49,596,502 ================ ============== ING VP GROWTH Contracts in accumulation period: Rollover Choice Option I 6,569.234 $6.94 $45,590 ---------------- -------------- 6,569.234 $45,590 ================ ============== ING VP INDEX PLUS LARGECAP Contracts in accumulation period: DVA Plus - Max 5.5 (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) 12,557.733 $7.21 $90,541 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 6,179.958 7.19 44,434 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,963.889 7.18 28,461 VA Option I 141,983.350 7.28 1,033,639 VA Option II 46,368.062 7.25 336,168 VA Option III 34,433.300 7.24 249,297 VA Bonus Option I 224,198.353 7.23 1,620,954 VA Bonus Option II 35,518.020 7.20 255,730 VA Bonus Option III 26,792.477 7.18 192,370 SmartDesign Advantage Option I 10,195.872 7.15 72,900 SmartDesign Advantage Option II 8,441.439 7.13 60,187 180
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS LARGECAP (CONTINUED) SmartDesign Advantage Option III 8,987.585 $7.11 $63,902 Rollover Choice Option I 71,089.664 7.31 519,665 Rollover Choice Option II 2,369.346 7.28 17,249 Rollover Choice Option III 564.067 7.27 4,101 ---------------- -------------- 633,643.115 $4,589,598 ================ ============== ING VP INDEX PLUS MIDCAP Contracts in accumulation period: DVA Plus - Max 5.5 (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) 13,930.296 $8.53 $118,825 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 7,367.210 8.51 62,695 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,361.288 8.49 164,377 VA Option I 133,786.073 8.61 1,151,898 VA Option II 61,372.138 8.58 526,573 VA Option III 19,210.554 8.56 164,442 VA Bonus Option I 177,302.397 8.55 1,515,935 VA Bonus Option II 94,503.966 8.51 804,229 VA Bonus Option III 97,939.999 8.49 831,511 SmartDesign Advantage Option I 11,177.803 8.46 94,564 SmartDesign Advantage Option II 10,167.267 8.43 85,710 SmartDesign Advantage Option III 17,384.130 8.41 146,201 Rollover Choice Option I 22,538.459 8.64 194,732 Rollover Choice Option II 5,073.425 8.61 43,682 Rollover Choice Option III 480.800 8.59 4,130 ---------------- -------------- 691,595.805 $5,909,504 ================ ============== ING VP INDEX PLUS SMALLCAP Contracts in accumulation period: DVA Plus - Max 5.5 (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) 24,464.385 $8.59 $210,149 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 3,622.813 8.57 31,048 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,254.460 8.55 27,826 VA Option I 97,303.653 8.67 843,623 VA Option II 45,701.551 8.64 394,861 VA Option III 8,401.252 8.62 72,419 VA Bonus Option I 119,426.433 8.61 1,028,262 VA Bonus Option II 50,587.854 8.57 433,538 181
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS SMALLCAP (CONTINUED) VA Bonus Option III 69,820.561 $8.55 $596,966 SmartDesign Advantage Option I 5,086.437 8.52 43,336 SmartDesign Advantage Option II 9,017.544 8.49 76,559 SmartDesign Advantage Option III 9,049.582 8.47 76,650 Rollover Choice Option I 18,191.748 8.70 158,268 Rollover Choice Option II 1,382.428 8.68 11,999 ---------------- -------------- 465,310.701 $4,005,504 ================ ============== ING VP SMALL COMPANY Contracts in accumulation period: Rollover Choice Option I 16,504.399 $7.56 $124,773 Rollover Choice Option II 4,207.514 7.54 31,725 ---------------- -------------- 20,711.913 $156,498 ================ ============== ING VP VALUE OPPORTUNITY Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,312.844 $6.55 $8,599 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 1,588.561 6.53 10,373 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,346.537 6.52 15,299 VA Option I 31,204.909 6.62 206,576 VA Option II 13,742.756 6.59 90,565 VA Option III 4,227.538 6.57 27,775 VA Bonus Option I 32,953.774 6.57 216,506 VA Bonus Option II 28,741.641 6.54 187,970 VA Bonus Option III 7,083.223 6.52 46,183 SmartDesign Advantage Option I 17,731.744 6.49 115,079 SmartDesign Advantage Option II 1,235.020 6.47 7,991 SmartDesign Advantage Option III 14,687.082 6.46 94,879 Rollover Choice Option I 8,766.617 6.63 58,123 ---------------- -------------- 165,622.247 $1,085,918 ================ ============== ING VP CONVERTIBLE Contracts in accumulation period: DVA Plus - Max 5.5 (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) 1,417.757 $9.61 $13,625 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 571.190 9.58 5,472 182
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP CONVERTIBLE (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,962.680 $9.56 $28,323 VA Option I 27,864.868 9.70 270,289 VA Option II 23,212.677 9.66 224,234 VA Bonus Option I 24,891.586 9.63 239,706 VA Bonus Option II 16,097.635 9.59 154,376 VA Bonus Option III 1,293.425 9.57 12,378 SmartDesign Advantage Option I 3,125.116 9.52 29,751 SmartDesign Advantage Option II 5,397.937 9.50 51,280 SmartDesign Advantage Option III 522.665 9.48 4,955 ----------------- -------------- 107,357.536 $1,034,389 ================= ============== ING VP GROWTH OPPORTUNITIES Contracts in accumulation period: DVA 508.000 $5.30 $2,692 DVA Plus - Standard (pre February 2000) 589.526 5.27 3,107 DVA Plus - Standard (post January 2000 & post 2000) 11,903.518 5.27 62,732 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 143,306.638 5.26 753,793 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 297,926.064 5.26 1,567,091 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 134,511.899 5.25 706,187 DVA Plus - Max 5.5 (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) 30,250.239 5.24 158,511 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 157,970.166 5.24 827,764 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) 151,542.584 5.23 792,568 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 149,494.282 5.23 781,855 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 178,992.222 5.23 936,129 183
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP GROWTH OPPORTUNITIES (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 355,700.276 $5.22 $1,856,755 Access - Annual Ratchet (post April 2001) 4,918.441 5.20 25,576 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,490.561 5.20 356,151 Access - 7% Solution (post April 2001) 11,587.039 5.19 60,137 Access - Max 7 (post April 2001) 49,552.666 5.19 257,178 ES II - Max 7 (post 2000), Generations - Max 7 109,759.285 5.22 572,943 Landmark - 7% Solution 34,246.496 5.21 178,424 Value 1,365.563 5.31 7,251 Rollover Choice Option I 2,754.175 5.32 14,652 ---------------- -------------- 1,895,369.640 $9,921,496 ================ ============== ING VP INTERNATIONAL VALUE Contracts in accumulation period: Rollover Choice Option I 4,649.081 $8.47 $39,378 Rollover Choice Option II 288.667 8.45 2,439 ---------------- -------------- 4,937.748 $41,817 ================ ============== ING VP LARGE COMPANY VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (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) 6,796.009 $7.95 $54,028 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 888.555 7.93 7,046 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,895.920 7.91 22,907 VA Option I 31,277.430 8.03 251,158 VA Option II 18,070.271 7.99 144,381 VA Option III 14,141.043 7.98 112,846 VA Bonus Option I 26,066.797 7.97 207,752 VA Bonus Option II 10,660.289 7.93 84,536 VA Bonus Option III 4,544.920 7.92 35,996 SmartDesign Advantage Option I 3,927.934 7.88 30,952 SmartDesign Advantage Option II 80.251 7.86 631 SmartDesign Advantage Option III 727.650 7.84 5,705 ---------------- -------------- 120,077.069 $957,938 ================ ============== ING VP LARGECAP GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (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) 4,324.788 $6.15 $26,597 184
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP LARGECAP GROWTH (CONTINUED) 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 148.376 $6.13 $910 VA Option I 17,334.479 6.21 107,647 VA Option II 31,441.028 6.18 194,306 VA Option III 7,410.080 6.17 45,720 VA Bonus Option I 41,753.715 6.16 257,203 VA Bonus Option II 42,851.444 6.14 263,108 VA Bonus Option III 11,187.257 6.12 68,466 SmartDesign Advantage Option I 4,073.044 6.10 24,846 SmartDesign Advantage Option II 1,059.501 6.08 6,442 SmartDesign Advantage Option III 1,693.678 6.06 10,264 ---------------- -------------- 163,277.390 $1,005,509 ================ ============== ING VP MAGNACAP Contracts in accumulation period: DVA 6,555.686 $7.15 $46,873 DVA Plus - Standard (pre February 2000) 6,549.431 7.12 46,632 DVA Plus - Standard (post January 2000 & post 2000) 10,551.443 7.11 75,021 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 211,733.236 7.10 1,503,306 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 307,643.277 7.10 2,184,267 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 20,061.852 7.08 142,038 DVA Plus - Max 5.5 (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) 17,210.413 7.08 121,850 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 153,013.266 7.07 1,081,804 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) 125,575.174 7.07 887,816 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 102,496.200 7.06 723,623 185
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP MAGNACAP (CONTINUED) 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 190,988.256 $7.05 $1,346,467 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 295,511.233 7.04 2,080,399 Access - Annual Ratchet (post April 2001) 18,131.585 7.02 127,284 Access - Max 5.5 (post April 2001), Landmark - Max 7 41,228.581 7.02 289,425 Access - 7% Solution (post April 2001) 12,375.694 7.01 86,754 Access - Max 7 (post April 2001) 27,970.406 7.00 195,793 ES II - Max 7 (post 2000), Generations - Max 7 108,901.970 7.05 767,759 Landmark - 7% Solution 31,708.981 7.03 222,914 Value 4,070.367 7.16 29,144 VA Option I 20,708.864 7.16 148,275 VA Option II 284.124 7.12 2,023 VA Option III 630.457 7.10 4,476 VA Bonus Option I 19,500.998 7.10 138,457 VA Bonus Option II 6,930.236 7.06 48,927 VA Bonus Option III 3,957.580 7.04 27,861 SmartDesign Advantage Option I 1,471.448 7.01 10,315 ----------------- --------------- 1,745,760.759 $12,339,503 ================= =============== ING VP MIDCAP OPPORTUNITIES Contracts in accumulation period: Rollover Choice Option I 1,699.815 $7.24 $12,307 ----------------- --------------- 1,699.815 $12,307 ================= =============== ING VP SMALLCAP OPPORTUNITIES Contracts in accumulation period: DVA 7,081.683 $4.65 $32,930 DVA Plus - Standard (pre February 2000) 4,958.507 4.63 22,958 DVA Plus - Standard (post January 2000 & post 2000) 59,275.642 4.63 274,446 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 774,556.649 4.62 3,578,452 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 1,042,745.581 4.62 4,817,485 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 139,362.310 4.61 642,460 186
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- ING VP SMALLCAP OPPORTUNITIES (CONTINUED) DVA Plus - Max 5.5 (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) 48,062.812 $4.61 $221,570 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 563,708.902 4.60 2,593,061 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) 483,572.111 4.60 2,224,432 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 454,391.883 4.59 2,085,659 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 696,664.441 4.59 3,197,690 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,196,796.823 4.58 5,481,329 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 345.077 4.58 1,580 Access - Annual Ratchet (post April 2001) 54,432.709 4.57 248,757 Access - Max 5.5 (post April 2001), Landmark - Max 7 249,713.741 4.57 1,141,192 Access - 7% Solution (post April 2001) 46,045.780 4.56 209,969 Access - Max 7 (post April 2001) 177,134.824 4.55 805,963 ES II - Max 7 (post 2000), Generations - Max 7 374,677.088 4.59 1,719,768 Landmark - 7% Solution 117,675.900 4.57 537,779 Value 58,728.870 4.66 273,677 Rollover Choice Option I 3,071.070 4.67 14,342 ----------------- --------------- 6,553,002.403 $30,125,499 ================= =============== INVESCO VIF - FINANCIAL SERVICES Contracts in accumulation period: DVA 406.061 $7.90 $3,208 DVA Series 100 670.845 7.86 5,273 DVA Plus - Standard (pre February 2000) 5,407.333 7.88 42,610 DVA Plus - Standard (post January 2000 & post 2000) 19,155.514 7.87 150,754 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 584,089.237 7.86 4,590,941 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 491,868.834 7.85 3,861,170 187
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - FINANCIAL SERVICES (CONTINUED) 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 117,511.348 $7.84 $921,289 DVA Plus - Max 5.5 (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) 44,675.520 7.83 349,809 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 200,145.811 7.83 1,567,142 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) 182,155.631 7.82 1,424,457 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 110,702.021 7.82 865,690 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 284,060.139 7.81 2,218,510 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 407,036.399 7.80 3,174,884 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 667.125 7.79 5,197 Access - Annual Ratchet (post April 2001) 36,848.113 7.78 286,678 Access - Max 5.5 (post April 2001), Landmark - Max 7 84,291.461 7.78 655,788 Access - 7% Solution (post April 2001) 8,073.622 7.77 62,732 Access - Max 7 (post April 2001) 32,860.169 7.76 254,995 ES II - Max 7 (post 2000), Generations - Max 7 91,597.737 7.81 715,378 Landmark - 7% Solution 47,920.623 7.79 373,302 Value 5,012.313 7.92 39,698 VA Option I 28,312.555 7.91 223,952 VA Option II 17,476.529 7.88 137,715 VA Option III 2,929.158 7.86 23,023 VA Bonus Option I 40,079.602 7.85 314,625 VA Bonus Option II 39,578.360 7.82 309,503 VA Bonus Option III 41,939.098 7.80 327,125 SmartDesign Advantage Option I 786.478 7.77 6,111 SmartDesign Advantage Option II 3,904.827 7.74 30,223 SmartDesign Advantage Option III 535.466 7.73 4,139 ----------------- --------------- 2,930,697.929 $22,945,921 ================= =============== INVESCO VIF - HEALTH SCIENCES Contracts in accumulation period: DVA 80 9,089.241 $7.72 $70,169 188
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) DVA 540.527 $7.70 $4,162 DVA Series 100 541.402 7.66 4,147 DVA Plus - Standard (pre February 2000) 14,310.616 7.67 109,762 DVA Plus - Standard (post January 2000 & post 2000) 22,197.466 7.66 170,033 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 351,424.377 7.65 2,688,396 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 481,392.756 7.65 3,682,655 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 166,542.609 7.63 1,270,720 DVA Plus - Max 5.5 (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) 35,809.566 7.63 273,227 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 183,978.442 7.62 1,401,916 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) 493,957.606 7.62 3,763,957 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,523.360 7.61 2,066,293 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 375,101.966 7.61 2,854,526 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 736,095.750 7.59 5,586,967 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,088.348 7.59 15,851 Access - Annual Ratchet (post April 2001) 15,338.008 7.58 116,262 Access - Max 5.5 (post April 2001), Landmark - Max 7 151,076.855 7.57 1,143,652 Access - 7% Solution (post April 2001) 9,189.497 7.57 69,564 Access - Max 7 (post April 2001) 45,837.467 7.56 346,531 ES II - Max 7 (post 2000), Generations - Max 7 306,734.060 7.60 2,331,179 Landmark - 7% Solution 94,313.253 7.58 714,894 Value 10,080.927 7.71 77,724 VA Option I 33,864.629 7.70 260,758 VA Option II 24,596.088 7.67 188,652 189
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) VA Option III 9,104.697 $7.65 $69,651 VA Bonus Option I 44,853.153 7.65 343,127 VA Bonus Option II 46,036.519 7.61 350,338 VA Bonus Option III 66,227.851 7.59 502,669 SmartDesign Advantage Option I 4,098.527 7.56 30,985 SmartDesign Advantage Option II 4,279.783 7.54 32,270 SmartDesign Advantage Option III 2,987.645 7.52 22,467 ----------------- --------------- 4,013,212.991 $30,563,504 ================= =============== INVESCO VIF - LEISURE Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 2,494.057 $8.45 $21,075 DVA Plus - Standard (post January 2000 & post 2000) 1,919.924 8.45 16,223 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 69,606.717 8.44 587,481 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 132,018.982 8.44 1,114,240 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 28,020.116 8.43 236,210 DVA Plus - Max 5.5 (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) 1,463.630 8.43 12,338 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 65,381.973 8.43 551,170 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) 30,006.613 8.42 252,656 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 41,607.549 8.42 350,336 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 54,250.341 8.42 456,788 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 100,698.931 8.41 846,878 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 757.891 8.41 6,374 190
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - LEISURE (CONTINUED) Access - Annual Ratchet (post April 2001) 3,611.911 $8.40 $30,340 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,591.830 8.40 340,971 Access - 7% Solution (post April 2001) 17,360.124 8.40 145,825 Access - Max 7 (post April 2001) 7,579.148 8.39 63,589 ES II - Max 7 (post 2000), Generations - Max 7 94,573.834 8.41 795,366 Landmark - 7% Solution 24,347.114 8.41 204,759 VA Option I 749.048 8.47 6,344 VA Option II 695.822 8.45 5,880 VA Option III 767.220 8.44 6,475 VA Bonus Option I 4,265.438 8.44 36,000 VA Bonus Option II 1,327.969 8.42 11,181 ----------------- ---------------- 724,096.182 $6,098,499 ================= ================ INVESCO VIF - UTILITIES Contracts in accumulation period: DVA 80 1,587.040 $6.43 $10,205 DVA Plus - Standard (pre February 2000) 63.189 6.38 403 DVA Plus - Standard (post January 2000 & post 2000) 11,472.225 6.38 73,193 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 127,144.822 6.37 809,913 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 152,797.244 6.37 973,318 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 86,524.213 6.36 550,294 DVA Plus - Max 5.5 (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) 18,051.925 6.35 114,630 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 51,660.421 6.35 328,044 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) 103,373.775 6.34 655,390 191
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - UTILITIES (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 94,265.565 $6.34 $597,644 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 167,758.159 6.33 1,061,909 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 173,345.603 6.32 1,095,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,187.610 6.32 13,826 Access - Annual Ratchet (post April 2001) 814.005 6.31 5,136 Access - Max 5.5 (post April 2001), Landmark - Max 7 52,670.628 6.30 331,825 Access - 7% Solution (post April 2001) 24,927.137 6.30 157,041 Access - Max 7 (post April 2001) 2,946.473 6.29 18,533 ES II - Max 7 (post 2000), Generations - Max 7 34,605.984 6.33 219,056 Landmark - 7% Solution 30,198.224 6.31 190,551 VA Option I 14,992.194 6.41 96,100 VA Option II 18,841.260 6.38 120,207 VA Option III 1,930.007 6.37 12,294 VA Bonus Option I 33,452.942 6.36 212,761 VA Bonus Option II 8,961.746 6.34 56,817 VA Bonus Option III 11,546.075 6.32 72,971 SmartDesign Advantage Option I 523.745 6.29 3,294 SmartDesign Advantage Option II 133.928 6.28 841 SmartDesign Advantage Option III 417.793 6.26 2,615 ----------------- --------------- 1,227,193.932 $7,784,355 ================= =============== JANUS ASPEN SERIES BALANCED Contracts in accumulation period: Rollover Choice Option I 47,037.671 $9.25 $435,098 Rollover Choice Option II 6,041.602 9.23 55,764 Rollover Choice Option III 591.682 9.21 5,449 ----------------- --------------- 53,670.955 $496,311 ================= =============== JANUS ASPEN SERIES FLEXIBLE INCOME Contracts in accumulation period: Rollover Choice Option I 19,824.232 $10.99 $217,868 Rollover Choice Option II 5,939.558 10.97 65,157 ----------------- --------------- 25,763.790 $283,025 ================= =============== JANUS ASPEN SERIES GROWTH Contracts in accumulation period: Rollover Choice Option I 26,690.842 $7.19 $191,907 ----------------- --------------- 26,690.842 $191,907 ================= =============== 192
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES WORLDWIDE GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (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) 3,936.633 $6.84 $26,927 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 2,893.741 6.82 19,735 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,871.582 6.81 39,985 VA Option I 105,069.103 6.91 726,028 VA Option II 53,631.991 6.88 368,988 VA Option III 14,254.337 6.86 97,785 VA Bonus Option I 150,684.827 6.86 1,033,698 VA Bonus Option II 65,555.286 6.83 447,743 VA Bonus Option III 58,756.313 6.81 400,130 SmartDesign Advantage Option I 7,229.106 6.78 49,013 SmartDesign Advantage Option II 11,630.857 6.76 78,625 SmartDesign Advantage Option III 3,174.425 6.75 21,427 Rollover Choice Option I 31,947.524 6.93 221,396 Rollover Choice Option II 581.133 6.91 4,016 ----------------- --------------- 515,216.858 $3,535,496 ================= =============== OPPENHEIMER GLOBAL SECURITIES Contracts in accumulation period: Rollover Choice Option I 23,286.992 $7.67 $178,611 Rollover Choice Option II 2,448.302 7.65 18,730 Rollover Choice Option III 1,064.000 7.64 8,129 ----------------- --------------- 26,799.294 $205,470 ================= =============== OPPENHEIMER STRATEGIC BOND Contracts in accumulation period: Rollover Choice Option I 832.001 $10.67 $8,877 Rollover Choice Option II 696.170 10.65 7,414 ----------------- --------------- 1,528.171 $16,291 ================= =============== PIMCO HIGH YIELD Contracts in accumulation period: DVA 80 2,477.364 $10.12 $25,071 DVA 102,400.716 10.03 1,027,079 DVA Series 100 940.098 9.87 9,279 DVA Plus - Standard (pre February 2000) 281,240.079 9.91 2,787,089 DVA Plus - Standard (post January 2000 & post 2000) 278,564.887 9.89 2,755,007 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 6,193,058.219 9.84 60,939,693 193
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) 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 3,925,319.594 $9.82 $38,546,638 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,053,445.935 9.77 29,832,167 DVA Plus - Max 5.5 (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) 657,117.954 9.75 6,406,900 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,388,956.102 9.73 13,514,543 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) 5,428,136.230 9.70 52,652,921 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,004,329.863 9.68 9,721,913 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 3,639,544.850 9.66 35,158,003 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,093,339.354 9.61 29,726,991 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,447.208 9.59 42,649 Access - Annual Ratchet (post April 2001) 186,395.537 9.54 1,778,213 Access - Max 5.5 (post April 2001), Landmark - Max 7 423,832.352 9.52 4,034,884 Access - 7% Solution (post April 2001) 64,823.416 9.50 615,822 Access - Max 7 (post April 2001) 218,537.943 9.45 2,065,184 ES II - Max 7 (post 2000), Generations - Max 7 624,871.926 9.63 6,017,517 Landmark - 7% Solution 272,347.815 9.57 2,606,369 Access One 3,970.224 10.27 40,774 Value 114,778.115 10.08 1,156,963 VA Option I 78,297.774 10.05 786,893 VA Option II 31,300.139 9.91 310,184 VA Option III 15,357.631 9.84 151,119 VA Bonus Option I 113,201.558 9.82 1,111,639 VA Bonus Option II 71,352.805 9.68 690,695 VA Bonus Option III 27,719.473 9.61 266,384 194
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) SmartDesign Advantage Option I 16,988.722 $9.48 $161,053 SmartDesign Advantage Option II 25,014.302 9.39 234,884 SmartDesign Advantage Option III 10,727.585 9.32 99,981 ----------------- ---------------- 31,352,835.770 $305,274,501 ================= ================ PIMCO STOCKSPLUS GROWTH AND INCOME Contracts in accumulation period: DVA 80 396.590 $8.28 $3,284 DVA 68,010.499 8.20 557,686 DVA Series 100 1,768.555 8.07 14,272 DVA Plus - Standard (pre February 2000) 154,632.792 8.11 1,254,072 DVA Plus - Standard (post January 2000 & post 2000) 146,940.984 8.09 1,188,753 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 4,911,148.898 8.05 39,534,749 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 2,241,995.580 8.03 18,003,225 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,392,261.204 7.99 27,104,167 DVA Plus - Max 5.5 (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) 562,721.076 7.97 4,484,887 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 745,489.553 7.95 5,926,642 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) 5,327,507.941 7.94 42,300,413 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 777,891.760 7.92 6,160,903 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 1,932,333.312 7.90 15,265,433 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,702,074.897 7.86 13,378,309 195
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIMCO STOCKSPLUS GROWTH AND INCOME (CONTINUED) Access - Annual Ratchet (post April 2001) 24,968.654 $7.80 $194,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 218,962.411 7.79 1,705,717 Access - 7% Solution (post April 2001) 59,533.277 7.77 462,574 Access - Max 7 (post April 2001) 103,647.174 7.73 801,193 ES II - Max 7 (post 2000), Generations - Max 7 312,246.133 7.88 2,460,500 Landmark - 7% Solution 76,765.128 7.82 600,303 Value 28,964.179 8.24 238,665 ----------------- ---------------- 22,790,260.597 $181,640,503 ================= ================ PIONEER EQUITY-INCOME VCT Contracts in accumulation period: Rollover Choice Option I 15,836.215 $8.28 $131,124 Rollover Choice Option II 5,737.063 8.27 47,446 ----------------- ---------------- 21,573.278 178,570 ================= ================ PIONEER FUND VCT Contracts in accumulation period: DVA 80 1,285.499 $7.54 $9,693 DVA Plus - Standard (pre February 2000) 1,732.586 7.49 12,977 DVA Plus - Standard (post January 2000 & post 2000) 10,928.441 7.48 81,745 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 291,460.540 7.47 2,177,210 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 295,687.608 7.47 2,208,786 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 144,234.289 7.46 1,075,988 DVA Plus - Max 5.5 (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) 62,576.065 7.45 466,192 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 184,118.536 7.44 1,369,842 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) 297,004.743 7.44 2,209,715 196
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIONEER FUND VCT (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 135,708.029 $7.43 $1,008,311 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 229,508.353 7.43 1,705,247 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 562,117.242 7.42 4,170,910 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,686.900 7.41 49,550 Access - Annual Ratchet (post April 2001) 8,140.811 7.40 60,242 Access - Max 5.5 (post April 2001), Landmark - Max 7 57,294.293 7.39 423,405 Access - 7% Solution (post April 2001) 19,166.357 7.39 141,639 Access - Max 7 (post April 2001) 21,066.987 7.38 155,474 ES II - Max 7 (post 2000), Generations - Max 7 79,240.223 7.42 587,962 Landmark - 7% Solution 91,407.752 7.41 677,331 Value 1,654.898 7.53 12,461 VA Option I 38,807.073 7.52 291,829 VA Option II 19,828.989 7.49 148,519 VA Option III 6,500.233 7.47 48,557 VA Bonus Option I 47,948.431 7.47 358,175 VA Bonus Option II 50,245.101 7.43 373,321 VA Bonus Option III 19,852.051 7.42 147,302 SmartDesign Advantage Option I 4,167.994 7.38 30,760 SmartDesign Advantage Option II 2,168.327 7.36 15,959 SmartDesign Advantage Option III 857.708 7.35 6,304 Rollover Choice Option I 5,561.288 7.54 41,932 ----------------- --------------- 2,696,957.347 $20,067,338 ================= =============== PIONEER MID-CAP VALUE VCT Contracts in accumulation period: DVA 17,509.307 $9.41 $164,763 DVA Plus - Standard (pre February 2000) 29,446.556 9.38 276,209 DVA Plus - Standard (post January 2000 & post 2000) 45,975.704 9.37 430,792 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 983,243.301 9.36 9,203,157 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 728,410.430 9.36 6,817,922 197
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIONEER MID-CAP VALUE VCT (CONTINUED) 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 509,210.033 $9.35 $4,761,114 DVA Plus - Max 5.5 (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) 113,225.368 9.34 1,057,525 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 338,219.386 9.34 3,158,969 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) 796,390.778 9.33 7,430,326 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,154.631 9.32 2,033,201 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 503,891.718 9.32 4,696,271 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 740,866.746 9.31 6,897,469 Access - Annual Ratchet (post April 2001) 28,194.228 9.29 261,924 Access - Max 5.5 (post April 2001), Landmark - Max 7 145,462.672 9.29 1,351,348 Access - 7% Solution (post April 2001) 25,874.832 9.28 240,118 Access - Max 7 (post April 2001) 74,644.120 9.27 691,951 ES II - Max 7 (post 2000), Generations - Max 7 245,270.337 9.31 2,283,467 Landmark - 7% Solution 127,116.070 9.30 1,182,179 Value 11,515.180 9.42 108,473 Rollover Choice Option I 2,421.894 9.43 22,838 Rollover Choice Option II 369.982 9.41 3,482 ----------------- --------------- 5,685,413.273 $53,073,498 ================= =============== PIONEER SMALL COMPANY VCT Contracts in accumulation period: DVA Plus - Max 5.5 (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) 13,596.414 $7.81 $106,188 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 11,749.693 7.79 91,530 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 16,355.281 7.77 127,081 198
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PIONEER SMALL COMPANY VCT (CONTINUED) VA Option I 80,077.498 $7.89 $631,811 VA Option II 34,919.722 7.85 274,120 VA Option III 9,445.248 7.84 74,051 VA Bonus Option I 122,885.683 7.83 962,195 VA Bonus Option II 57,105.530 7.80 445,423 VA Bonus Option III 50,553.725 7.78 393,308 SmartDesign Advantage Option I 8,317.144 7.74 64,375 SmartDesign Advantage Option II 8,192.585 7.72 63,247 SmartDesign Advantage Option III 24,011.644 7.70 184,890 ----------------- --------------- 437,210.167 $3,418,219 ================= =============== PROFUND VP BULL Contracts in accumulation period: DVA 1,672.331 $6.71 $11,221 DVA Plus - Standard (pre February 2000) 8,556.341 6.68 57,156 DVA Plus - Standard (post January 2000 & post 2000) 18,623.407 6.68 124,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,231,932.938 6.67 8,216,993 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 1,271,888.411 6.66 8,470,777 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 194,394.055 6.65 1,292,720 DVA Plus - Max 5.5 (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) 117,319.332 6.64 779,000 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 127,499.175 6.64 846,595 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) 342,069.817 6.63 2,267,923 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 185,752.318 6.63 1,231,538 199
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PROFUND VP BULL (CONTINUED) 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 475,784.662 $6.62 $3,149,694 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 491,041.711 6.61 3,245,786 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 304.523 6.61 2,013 Access - Annual Ratchet (post April 2001) 29,583.240 6.59 194,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 23,782.886 6.59 156,729 Access - 7% Solution (post April 2001) 32,743.236 6.58 215,450 Access - Max 7 (post April 2001) 19,326.241 6.57 126,973 ES II - Max 7 (post 2000), Generations - Max 7 114,753.182 6.62 759,666 Landmark - 7% Solution 16,668.657 6.60 110,013 Value 1,919.612 6.72 12,900 ----------------- --------------- 4,705,616.075 $31,272,505 ================= =============== PROFUND VP EUROPE 30 Contracts in accumulation period: DVA Series 100 2,091.440 $6.06 $12,674 DVA Plus - Standard (pre February 2000) 2,703.205 6.07 16,408 DVA Plus - Standard (post January 2000 & post 2000) 11,286.811 6.06 68,398 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 257,910.120 6.05 1,560,356 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 1,365,500.420 6.05 8,261,278 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 156,756.190 6.04 946,807 DVA Plus - Max 5.5 (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) 42,457.449 6.03 256,018 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 64,316.959 6.03 387,831 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) 181,952.664 6.02 1,095,355 200
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PROFUND VP EUROPE 30 (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 105,639.573 $6.02 $635,950 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 103,963.433 6.01 624,820 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 218,082.990 6.00 1,308,498 Access - Annual Ratchet (post April 2001) 8,143.705 5.98 48,699 Access - Max 5.5 (post April 2001), Landmark - Max 7 17,650.043 5.98 105,547 Access - 7% Solution (post April 2001) 1,104.440 5.97 6,594 Access - Max 7 (post April 2001) 30,091.610 5.96 179,346 ES II - Max 7 (post 2000), Generations - Max 7 13,789.452 6.00 82,737 Landmark - 7% Solution 5,164.325 5.99 30,934 Value 204.139 6.10 1,245 ----------------- --------------- 2,588,808.968 $15,629,495 ================= =============== PROFUND VP SMALL CAP Contracts in accumulation period: DVA 2,329.512 $7.26 $16,912 DVA Plus - Standard (pre February 2000) 41,515.869 7.23 300,160 DVA Plus - Standard (post January 2000 & post 2000) 31,843.836 7.22 229,912 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,755,935.865 7.21 12,660,298 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 1,133,338.695 7.21 8,171,372 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 269,439.892 7.19 1,937,273 DVA Plus - Max 5.5 (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) 72,216.551 7.19 519,237 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 236,885.358 7.18 1,700,837 201
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PROFUND VP SMALL CAP (CONTINUED) 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) 499,605.632 $7.17 $3,582,172 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 182,535.627 7.17 1,308,780 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 420,431.165 7.16 3,010,287 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 374,257.847 7.15 2,675,944 Access - Annual Ratchet (post April 2001) 7,373.061 7.13 52,570 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,579.360 7.13 488,971 Access - 7% Solution (post April 2001) 12,461.032 7.12 88,723 Access - Max 7 (post April 2001) 83,442.202 7.11 593,274 ES II - Max 7 (post 2000), Generations - Max 7 114,433.002 7.16 819,340 Landmark - 7% Solution 59,952.995 7.14 428,064 Value 4,866.239 7.27 35,378 ----------------- --------------- 5,371,443.740 $38,619,504 ================= =============== PRUDENTIAL JENNISON Contracts in accumulation period: DVA 11,366.432 $4.32 $49,103 DVA Plus - Standard (pre February 2000) 23,359.674 4.29 100,213 DVA Plus - Standard (post January 2000 & post 2000) 171,751.231 4.28 735,095 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 1,009,407.882 4.27 4,310,172 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 1,366,873.798 4.27 5,836,551 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 322,010.407 4.26 1,371,764 202
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL JENNISON (CONTINUED) DVA Plus - Max 5.5 (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) 222,330.396 $4.25 $944,904 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 522,739.562 4.24 2,216,416 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) 840,344.480 4.24 3,563,061 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 565,738.494 4.23 2,393,074 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 934,116.055 4.23 3,951,311 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,916,839.330 4.22 8,089,062 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,385.239 4.21 22,672 Access - Annual Ratchet (post April 2001) 22,367.313 4.20 93,943 Access - Max 5.5 (post April 2001), Landmark - Max 7 265,343.797 4.19 1,111,791 Access - 7% Solution (post April 2001) 78,263.500 4.19 327,924 Access - Max 7 (post April 2001) 158,536.137 4.18 662,681 ES II - Max 7 (post 2000), Generations - Max 7 259,117.120 4.22 1,093,474 Landmark - 7% Solution 69,926.920 4.20 293,693 Value 30,964.333 4.33 134,076 VA Option I 8,151.859 4.33 35,298 VA Option II 15,799.358 4.29 67,779 VA Bonus Option I 35,940.756 4.27 153,467 VA Bonus Option II 37,135.007 4.23 157,081 VA Bonus Option III 4,306.427 4.22 18,173 SmartDesign Advantage Option I 2,115.980 4.18 8,845 SmartDesign Advantage Option II 2,970.195 4.16 12,356 SmartDesign Advantage Option III 608.533 4.14 2,519 ----------------- --------------- 8,903,810.215 $37,756,498 ================= =============== PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH Contracts in accumulation period: DVA 1,624.864 $4.15 $6,743 DVA Plus - Standard (pre February 2000) 15,070.093 4.13 62,239 DVA Plus - Standard (post January 2000 & post 2000) 88,237.466 4.13 364,421 203
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and 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 535,933.282 $4.12 $2,208,045 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 519,699.551 4.11 2,135,965 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) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 120,333.463 4.10 493,367 DVA Plus - Max 5.5 (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) 46,748.068 4.10 191,667 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243,443.935 4.09 995,686 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) 393,653.448 4.09 1,610,043 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 235,551.818 4.08 961,051 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 360,088.600 4.08 1,469,161 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 636,058.487 4.07 2,588,758 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,559.403 4.06 14,451 Access - Annual Ratchet (post April 2001) 34,976.884 4.05 141,656 Access - Max 5.5 (post April 2001), Landmark - Max 7 156,993.562 4.05 635,824 Access - 7% Solution (post April 2001) 16,084.015 4.05 65,140 Access - Max 7 (post April 2001) 39,549.231 4.04 159,779 ES II - Max 7 (post 2000), Generations - Max 7 98,449.075 4.07 400,688 Landmark - 7% Solution 89,981.934 4.06 365,327 Value 54,114.150 4.16 225,115 VA Option I 5,285.109 4.16 21,986 VA Option II 12,259.907 4.13 50,633 VA Bonus Option I 13,713.568 4.11 56,363 204
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) VA Bonus Option II 4,728.844 $4.08 $19,294 VA Bonus Option III 15,437.133 4.07 62,829 SmartDesign Advantage Option I 1,182.895 4.04 4,779 SmartDesign Advantage Option II 356.962 4.02 1,435 SmartDesign Advantage Option III 7,993.599 4.01 32,054 ----------------- --------------- 3,751,109.346 $15,344,499 ================= =============== PUTNAM VT GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (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) 613.560 $7.40 $4,540 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 3,518.706 7.38 25,968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,355.145 7.36 9,974 VA Option I 47,269.102 7.62 360,191 VA Option II 9,757.789 7.59 74,062 VA Option III 1,001.492 7.57 7,581 VA Bonus Option I 71,543.199 7.56 540,867 VA Bonus Option II 50,353.513 7.53 379,162 VA Bonus Option III 24,513.938 7.51 184,100 SmartDesign Advantage Option I 8,057.360 7.33 59,060 SmartDesign Advantage Option II 1,505.661 7.30 10,991 SmartDesign Advantage Option III 688.406 7.28 5,012 ----------------- --------------- 220,177.871 $1,661,508 ================= =============== PUTNAM VT INTERNATIONAL GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (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) 7,080.219 $8.03 $56,854 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 743.400 8.00 5,947 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,603.594 7.98 36,737 VA Option I 88,504.950 8.10 716,890 VA Option II 18,195.578 8.07 146,838 VA Option III 7,142.668 8.05 57,498 VA Bonus Option I 94,100.599 8.04 756,569 VA Bonus Option II 24,314.533 8.01 194,759 VA Bonus Option III 101,982.647 7.99 814,841 205
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL GROWTH AND INCOME (CONTINUED) SmartDesign Advantage Option I 6,043.072 $7.95 $48,042 SmartDesign Advantage Option II 2,280.679 7.93 18,086 SmartDesign Advantage Option III 16,122.611 7.91 127,530 ----------------- --------------- 371,114.550 $2,980,591 ================= =============== PUTNAM VT VOYAGER II Contracts in accumulation period: DVA Plus - Max 5.5 (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) 5,242.644 $6.06 $31,770 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 2,365.637 6.04 14,288 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,579.319 6.03 21,583 VA Option I 44,148.219 6.12 270,187 VA Option II 33,313.466 6.09 202,879 VA Option III 4,631.701 6.08 28,161 VA Bonus Option I 96,271.677 6.07 584,369 VA Bonus Option II 38,339.846 6.05 231,956 VA Bonus Option III 21,456.980 6.03 129,386 SmartDesign Advantage Option I 8,448.608 6.01 50,776 SmartDesign Advantage Option II 12,435.747 5.99 74,490 SmartDesign Advantage Option III 863.315 5.98 5,163 ----------------- --------------- 271,097.159 $1,645,008 ================= =============== SMITH BARNEY HIGH INCOME Contracts in accumulation period: Granite PrimElite - Standard 3,602.132 $11.41 $41,100 Granite PrimElite - Annual Ratchet 24,619.405 11.28 277,707 ----------------- --------------- 28,221.537 $318,807 ================= =============== SMITH BARNEY INTERNATIONAL ALL CAP GROWTH Contracts in accumulation period: Granite PrimElite - Standard 1,685.183 $8.92 $15,032 Granite PrimElite - Annual Ratchet 21,044.795 8.82 185,615 ----------------- --------------- 22,729.978 $200,647 ================= =============== SMITH BARNEY LARGE CAP VALUE Contracts in accumulation period: Granite PrimElite - Standard 2,504.960 $14.26 $35,721 Granite PrimElite - Annual Ratchet 23,808.210 14.09 335,458 ----------------- --------------- 26,313.170 $371,179 ================= =============== 206
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- SMITH BARNEY MONEY MARKET Contracts in accumulation period: Granite PrimElite - Standard 6,864.600 $12.68 $87,043 Granite PrimElite - Annual Ratchet 4,446.085 12.53 55,709 ----------------- --------------- 11,310.685 $142,752 ================= =============== UBS TACTICAL ALLOCATION DVA Plus - Max 5.5 (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) 4,476.111 $7.12 $31,870 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,383.635 7.08 66,436 VA Option I 46,001.622 7.19 330,752 VA Option II 16,031.679 7.16 114,787 VA Option III 7,474.126 7.14 53,365 VA Bonus Option I 58,942.255 7.14 420,848 VA Bonus Option II 38,953.675 7.10 276,571 VA Bonus Option III 18,471.861 7.09 130,965 SmartDesign Advantage Option I 6,768.805 7.06 47,788 SmartDesign Advantage Option II 10,343.837 7.04 72,821 SmartDesign Advantage Option III 326.855 7.02 2,295 ----------------- --------------- 217,174.461 $1,548,498 ================= ===============
207 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS A summary of unit values and units outstanding for variable annuity Contracts, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the years ended December, 31, 2002 and 2001, along with unit values and units outstanding for the year ended December 31, 2000, follows:
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST: All Cap 2002 29,232 $8.34 to $8.68 $ 247,740 2001 25,814 $11.46 to $11.76 299,314 2000 9,062 $11.54 to $11.65 104,883 All Cap Advisor 2002 18 $9.52 to $9.53 176 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 6,551 $7.12 to $7.35 47,241 2001 5,718 $8.55 to $8.70 49,242 2000 501 $9.37 to $9.38 4,696 Capital Growth 2002 24,777 $9.52 to $10.52 246,769 2001 27,303 $13.93 to $15.15 395,434 2000 27,139 $16.80 to $17.71 463,399 Capital Growth Advisor 2002 14 $10.45 to $10.46 148 2001 *** *** *** 2000 *** *** ***
208 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 26,339 $12.37 to $14.00 $ 341,146 2001 27,165 $16.97 to $18.87 480,513 2000 23,107 $17.94 to $19.25 422,097 Capital Guardian Small Cap Advisor 2002 33 $9.72 to $9.73 321 2001 *** *** *** 2000 *** *** *** Core Bond 2002 34,238 $11.55 to $13.41 425,125 2001 9,873 $11.14 to $12.39 114,996 2000 3,438 $11.37 to $12.19 40,000 Core Bond Advisor 2002 97 $10.24 to $10.26 992 2001 *** *** *** 2000 *** *** *** Developing World 2002 9,702 $5.98 to $6.42 60,000 2001 10,141 $6.85 to $7.25 71,466 2000 7,211 $7.47 to $7.71 54,398 Developing World Advisor 2002 8 $9.70 to $9.71 79 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 12,695 $7.09 to $7.31 91,159 2001 6,381 $8.99 to $9.15 57,814 2000 1,150 $9.87 to $9.88 11,358
209 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 23 $9.47 to $9.48 $ 220 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 559 $7.78 to $7.85 4,362 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 48 $9.63 to $9.64 458 2001 *** *** *** 2000 *** *** *** Equity Income 2002 20,545 $18.11 to $23.18 409,670 2001 17,698 $21.34 to $26.84 416,763 2000 12,207 $22.48 to $26.61 291,793 Equity Income Advisor 2002 65 $9.81 to $9.83 640 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 19,040 $13.72 to $16.05 280,954 2001 20,717 $19.84 to $22.87 440,209 2000 19,193 $24.06 to $26.49 477,934 Equity Opportunity Advisor 2002 3 $9.74 to $9.75 34 2001 *** *** *** 2000 *** *** ***
210 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 710 $8.32 to $8.40 $ 5,931 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 5 $10.16 to $10.17 48 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 34,525 $24.75 to $30.37 935,079 2001 23,375 $25.20 to $30.47 644,971 2000 13,395 $24.47 to $27.95 345,651 Fully Managed Advisor 2002 89 $9.99 to $10.01 894 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 345 $7.93 to $8.00 2,742 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 11 $9.44 to $9.45 108 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 1,661 $8.80 to $8.88 14,670 2001 *** *** *** 2000 *** *** ***
211 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 74 $9.51 to $9.52 $ 708 2001 *** *** *** 2000 *** *** *** Growth 2002 53,954 $9.92 to $11.18 560,041 2001 66,921 $14.41 to $15.95 1,002,892 2000 67,525 $21.49 to $22.98 1,474,980 Growth Advisor 2002 9 $9.76 to $9.78 92 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 4,986 $12.44 to $15.93 67,753 2001 2,395 $12.63 to $15.27 33,209 2000 2,584 $15.34 to $17.52 41,509 Hard Assets Advisor 2002 10 $9.82 to $9.83 97 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 608 $8.17 to $8.25 4,990 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 17 $9.74 to $9.76 165 2001 *** *** *** 2000 *** *** ***
212 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): International Equity 2002 16,969 $6.80 to $7.46 $ 120,477 2001 16,734 $8.37 to $8.98 144,061 2000 17,171 $11.23 to $11.73 194,618 International Equity Advisor 2002 26 $9.79 to $9.80 254 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 2,769 $4.58 to $4.69 12,802 2001 709 $7.57 to $7.64 5,389 2000 ** ** ** Internet Tollkeeper Advisor 2002 5 $10.40 to $10.42 53 2001 *** *** *** 2000 *** *** *** Investors 2002 11,516 $7.87 to $8.19 92,136 2001 8,646 $10.45 to $10.73 91,400 2000 1,917 $11.21 to $11.31 21,558 Investors Advisor 2002 30 $9.74 to $9.75 297 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 1,212 $7.79 to $7.87 9,490 2001 *** *** *** 2000 *** *** ***
213 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 54 $9.48 to $9.49 $ 511 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 18,616 $6.87 to $7.13 130,345 2001 10,487 $8.78 to $8.93 92,720 2000 1,280 $9.93 to $9.96 12,726 Janus Growth and Income Advisor 2002 60 $9.71 to $9.73 587 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 39,602 $7.34 to $7.73 295,688 2001 27,628 $9.85 to $10.20 275,489 2000 9,362 $10.50 to $10.59 98,545 Large Cap Value Advisor 2002 32 $10.25 to $10.27 333 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 28,506 $17.84 to $22.84 558,941 2001 19,509 $17.02 to $21.41 364,062 2000 11,438 $16.67 to $19.77 200,958 Liquid Asset 2002 66,797 $13.46 to $17.34 1,023,179 2001 69,541 $13.62 to $17.79 1,071,485 2000 44,678 $14.50 to $16.61 679,666
214 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 180 $9.98 to $9.99 $ 1,800 2001 *** *** *** 2000 *** *** *** Managed Global 2002 16,459 $12.62 to $15.12 223,084 2001 14,451 $16.18 to $19.04 250,388 2000 11,365 $19.34 to $21.72 228,347 Managed Global Advisor 2002 5 $10.23 50 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 27,548 $14.97 to $17.32 435,581 2001 29,521 $29.92 to $34.01 928,290 2000 27,623 $40.98 to $43.92 1,158,061 Mid-Cap Growth Advisor 2002 56 $9.75 to $9.77 549 2001 *** *** *** 2000 *** *** *** Real Estate 2002 6,881 $24.84 to $31.80 187,607 2001 4,535 $25.36 to $31.90 126,169 2000 3,804 $25.04 to $28.59 100,303 Real Estate Advisor 2002 29 $9.60 to $9.61 276 2001 *** *** *** 2000 *** *** ***
215 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Research 2002 28,285 $13.75 to $15.91 $ 421,035 2001 31,622 $19.19 to $21.34 637,711 2000 30,638 $25.56 to $27.39 800,528 Research Advisor 2002 34 $9.70 to $9.72 326 2001 *** *** *** 2000 *** *** *** Special Situations 2002 3,609 $5.96 to $6.15 21,794 2001 2,932 $8.23 to $8.38 24,325 2000 663 $8.88 to $8.89 5,891 Special Situations Advisor 2002 6 $9.62 to $9.63 56 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 14,324 $9.29 to $10.34 139,852 2001 17,855 $13.92 to $15.26 259,382 2000 19,182 $18.40 to $19.51 359,734 Strategic Equity Advisor 2002 8 $9.63 to $9.65 78 2001 *** *** *** 2000 *** *** *** Total Return 2002 45,174 $17.48 to $20.72 853,266 2001 39,136 $18.90 to $21.94 793,394 2000 29,621 $20.10 to $21.54 608,868
216 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 95 10.03 to $10.04 $ 955 2001 *** *** *** 2000 *** *** *** Value Equity 2002 11,740 $13.65 to $15.72 173,239 2001 10,991 $17.24 to $19.10 199,039 2000 9,358 $18.85 to $20.15 180,722 Value Equity Advisor 2002 11 $9.61 to $9.63 107 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 30,992 $16.77 to $19.76 554,608 2001 34,270 $20.13 to $23.30 732,049 2000 34,836 $24.00 to $26.02 860,338 Van Kampen Growth and Income Advisor 2002 101 $9.78 to $9.79 990 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 1,550 $7.24 to $7.38 11,335 2001 323 $10.97 to $11.00 3,550 2000 ** ** **
217 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 121 $6.92 to $7.06 $ 848 2001 43 $10.32 to $10.35 443 2000 ** ** ** AIM V.I. Capital Appreciation 2002 4 $7.40 27 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 5 $8.26 41 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 12 $6.82 to $6.84 80 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 315 $8.46 to $8.66 2,709 2001 59 $9.98 to $10.05 595 2000 ** ** ** Alliance Growth and Income 2002 644 $7.23 to $7.40 4,730 2001 172 $9.57 to $9.61 1,653 2000 ** ** ** Alliance Premier Growth 2002 322 $6.41 to $6.56 2,094 2001 114 $9.52 to $9.58 1,091 2000 ** ** **
218 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 3,655 $6.26 to $6.43 $ 23,212 2001 75 $9.25 to $9.29 693 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 3,054 $7.70 to $7.91 23,851 2001 203 $9.55 to $9.61 1,949 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 513 $8.50 to $8.73 4,438 2001 122 $9.68 to $9.73 1,183 2000 ** ** ** Fidelity(R) VIP Overseas 2002 1 $7.89 9 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 2 $8.97 to $8.99 17 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 42 $13.88 to $14.02 589 2001 42 $17.07 to $17.22 723 2000 46 $18.03 to $18.16 831
219 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 78 $8.05 to $8.15 $ 631 2001 128 $9.75 to $9.84 1,260 2000 129 $10.73 to $10.78 1,387 Galaxy VIP Equity 2002 75 $6.46 to $6.57 487 2001 88 $9.12 to $9.21 807 2000 94 $11.36 to $11.41 1,071 Galaxy VIP Growth and Income 2002 16 $7.44 to $7.56 122 2001 19 $10.31 to $10.40 201 2000 26 $10.93 to $10.98 284 Galaxy VIP High Quality Bond 2002 10 $12.57 to $12.74 130 2001 13 $11.60 to $11.70 152 2000 7 $11.04 to $11.05 78 Galaxy VIP Small Company Growth 2002 7 $8.55 to $8.69 57 2001 6 $12.99 to $13.14 84 2000 5 $13.27 to $13.35 72 ING GET FUND: ING GET Fund - Series N 2002 2,862 $9.96 to $10.10 28,661 2001 3,009 $10.24 to $10.28 30,868 2000 ** ** **
220 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 14,328 $9.81 to $10.02 $ 143,846 2001 15,276 $9.99 to $10.04 153,045 2000 ** ** ** ING GET Fund - Series Q 2002 16,855 $9.93 to $10.12 169,029 2001 190 $10.00 1,904 2000 ** ** ** ING GET Fund - Series R 2002 16,911 $10.01 to $10.16 170,526 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 21,867 $9.98 to $10.08 219,270 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 23,643 $10.04 to $10.10 237,948 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 105 $9.99 to $10.00 1,048 2001 *** *** *** 2000 *** *** ***
221 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC.: ING Alger Growth 2002 6 $6.56 $ 39 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 - $8.10 2 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 33 $9.09 to $9.19 301 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 209 $6.04 to $6.18 1,280 2001 78 $8.92 to $9.91 698 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 11 $6.85 72 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 9 $8.27 to $8.35 75 2001 *** *** *** 2000 *** *** ***
222 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 16 $7.80 $ 126 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 55 $10.75 593 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 1 $7.41 9 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 - $7.61 4 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 1 $8.13 to $8.14 7 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 19 $7.51 to $7.52 144 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 - $7.54 2 2001 *** *** *** 2000 *** *** ***
223 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 210 $8.24 to $8.34 $ 1,737 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 5,299 $5.05 to $5.28 27,358 2001 2,863 $6.92 to $7.08 20,014 2000 635 $8.72 to $8.78 5,554 ING VP BOND PORTFOLIO: ING VP Bond 2002 4,668 $10.58 to $10.69 49,590 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 7 $6.94 46 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 634 $7.11 to $7.31 4,589 2001 87 $9.36 to $9.40 812 2000 ** ** ** ING VP Index Plus MidCap 2002 692 $8.41 to $8.64 5,909 2001 83 $9.87 to $9.91 820 2000 ** ** **
224 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 465 $8.47 to $8.70 $ 4,005 2001 67 $10.07 to $10.11 680 2000 ** ** ** ING VP Small Company 2002 21 $7.54 to $7.56 156 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 166 $6.46 to $6.63 1,086 2001 33 $9.00 to $9.04 298 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 107 $9.48 to $9.70 1,034 2001 18 $10.46 to $10.52 194 2000 ** ** ** ING VP Growth Opportunities 2002 1,895 $5.19 to $5.32 9,918 2001 671 $7.75 to $7.82 5,219 2000 ** ** ** ING VP International Value 2002 5 $8.45 to $8.47 42 2001 *** *** *** 2000 *** *** ***
225 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 120 $7.84 to $8.03 $ 958 2001 15 $10.37 to $10.45 156 2000 ** ** ** ING VP LargeCap Growth 2002 163 $6.06 to $6.21 1,006 2001 56 $9.57 to $9.62 533 2000 ** ** ** ING VP MagnaCap 2002 1,746 $7.00 to $7.16 12,338 2001 579 $9.30 to $9.39 5,402 2000 ** ** ** ING VP MidCap Opportunities 2002 2 $7.24 12 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 6,553 $4.55 to $4.67 30,118 2001 1,737 $8.28 to $8.36 14,437 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 2,931 $7.73 to $7.92 22,941 2001 256 $9.33 to $9.39 2,404 2000 ** ** **
226 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 4,013 $7.52 to $7.72 $ 30,558 2001 1,052 $10.22 to $10.29 10,790 2000 ** ** ** INVESCO VIF - Leisure 2002 724 $8.39 to $8.47 6,097 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1,227 $6.26 to $6.43 7,783 2001 119 $8.09 to $8.13 964 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 54 $9.21 to $9.25 496 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 26 $10.97 to $10.99 283 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 27 $7.19 192 2001 *** *** *** 2000 *** *** ***
227 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 515 $6.75 to $6.93 $ 3,534 2001 139 $9.32 to $9.39 1,298 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 27 $7.64 to $7.67 205 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 2 $10.65 to $10.67 16 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 31,353 $9.32 to $10.27 305,237 2001 23,564 $9.79 to $10.44 236,343 2000 16,336 $9.88 to $10.17 162,857 PIMCO StocksPLUS Growth and Income 2002 22,790 $7.73 to $8.28 181,637 2001 23,718 $9.91 to $10.46 241,065 2000 22,158 $11.56 to $11.91 258,484 PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 22 $8.27 to $8.28 179 2001 *** *** *** 2000 *** *** ***
228 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 2,697 $7.35 to $7.54 $ 20,064 2001 243 $9.36 to $9.41 2,275 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 5,685 $9.27 to $9.43 53,062 2001 480 $10.70 to $10.72 5,139 2000 ** ** ** Pioneer Small Company VCT 2002 437 $7.70 to $7.89 3,417 2001 98 $9.54 to $9.61 938 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 4,706 $6.57 to $6.72 31,265 2001 2,316 $8.84 to $8.92 20,583 2000 ** ** ** ProFund VP Europe 30 2002 2,589 $5.96 to $6.10 15,627 2001 764 $8.22 to $8.29 6,312 2000 ** ** ** ProFund VP Small-Cap 2002 5,371 $7.11 to $7.27 38,612 2001 2,118 $9.38 to $9.46 19,968 2000 ** ** **
229 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 8,904 $4.14 to $4.33 $ 37,748 2001 7,335 $6.21 to $6.35 45,991 2000 987 $7.82 to $7.85 7,732 Prudential SP Jennison International Growth 2002 3,751 $4.01 to $4.16 15,341 2001 2,097 $5.35 to $5.44 11,310 2000 318 $8.55 to $8.57 2,720 PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 220 $7.28 to $7.62 1,662 2001 48 $9.25 to $9.50 455 2000 ** ** ** Putnam VT International Growth and Income 2002 371 $7.91 to $8.10 2,981 2001 64 $9.44 to $9.49 604 2000 ** ** ** Putnam VT Voyager Fund II 2002 271 $5.98 to $6.12 1,645 2001 66 $8.71 to $8.77 577 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 28 $11.28 to $11.41 319 2001 31 $11.82 to $11.94 370 2000 36 $12.46 to $12.56 446
230 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 23 $8.82 to $8.92 $ 201 2001 25 $12.04 to $12.16 300 2000 26 $17.74 to $17.89 455 Smith Barney Large Cap Value 2002 26 $14.09 to $14.26 371 2001 29 $19.16 to $19.35 563 2000 33 $21.16 to $21.34 692 Smith Barney Money Market 2002 11 $12.53 to $12.68 143 2001 17 $12.55 to $12.68 221 2000 13 $12.27 to $12.38 156 UBS SERIES TRUST: UBS Tactical Allocation 2002 217 $7.02 to $7.19 1,548 2001 84 $9.37 to $9.42 787 2000 ** ** **
Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST: All Cap 2002 0.22% 0.90% to 2.25% -27.23% to -26.19% 2001 1.47% 0.90% to 2.25% 0.00% to 0.94% 2000 * * * All Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 1.11% 0.90% to 2.25% -16.73% to -15.52% 2001 1.78% 0.90% to 2.25% -8.32% to -7.68% 2000 * * * Capital Growth 2002 - 0.80% to 2.25% -31.66% to -30.56% 2001 - 0.80% to 2.25% -15.42% to -14.46% 2000 * * * Capital Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 0.12% 0.80% to 2.25% -27.11% to -25.80% 2001 0.13% 0.50% to 2.25% -3.40% to -1.97% 2000 * * * Capital Guardian Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Core Bond 2002 3.72% 0.80% to 2.55% 3.69% to 8.23% 2001 0.40% 0.80% to 2.25% 0.53% to 1.64% 2000 * * * Core Bond Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Developing World 2002 - 0.80% to 2.25% -12.70% to -11.45% 2001 1.18% 0.80% to 2.25% -7.10% to -5.97% 2000 * * * Developing World Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 0.29% 0.90% to 2.25% -21.13% to -20.11% 2001 0.48% 0.90% to 2.25% -8.41% to -7.79% 2000 * * *
231a Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Income 2002 1.34% 0.50% to 2.25% -15.14% to -13.64% 2001 1.95% 0.50% to 2.25% -0.58% to 1.46% 2000 * * * Equity Income Advisor 2002 *** 1.40% to 1..85% *** 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 0.13% 0.80% to 2.25% -30.85% to -29.82% 2001 0.07% 0.80% to 2.25% -14.67% to -13.67% 2000 * * * Equity Opportunity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231b Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 1.72% 0.80% to 2.25% -1.79% to -0.33% 2001 3.34% 0.80% to 2.25% 7.85% to 9.02% 2000 * * * Fully Managed Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 *** 0.90% to 2.15% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** ***
213c Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Growth 2002 - 0.50% to 2.25% -31.16% to -29.91% 2001 - 0.50% to 2.25% -31.55% to -30.59% 2000 * * * Growth Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 0.68% 0.50% to 2.25% -1.50% to 4.32% 2001 - 0.80% to 2.25% -13.82% to -12.84% 2000 * * * Hard Assets Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231d Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): International Equity 2002 0.75% 0.90% to 2.25% -18.76% to -16.93% 2001 - 0.90% to 2.10% -24.87% to -22.18% 2000 * * * International Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 - 0.90% to 2.25% -39.50% to -38.61% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** Internet Tollkeeper Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Investors 2002 0.81% 0.90% to 2.25% -24.69% to -23.67% 2001 1.30% 0.90% to 2.25% -6.16% to -5.13% 2000 * * * Investors Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** ***
231e Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 0.45% 0.90% to 2.55% -21.75% to -20.16% 2001 1.02% 0.90% to 2.25% -11.18% to -10.34% 2000 * * * Janus Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 0.25% 0.50% to 2.25% -25.48% to -24.22% 2001 0.25% 0.50% to 2.25% -5.43% to -4.44% 2000 * * * Large Cap Value Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 3.62% 0.50% to 2.25% 4.82% to 6.68% 2001 4.84% 0.50% to 2.25% 6.78% to 8.30% 2000 * * * Liquid Asset 2002 1.42% 0.50% to 2.55% -1.17% to 0.96% 2001 3.59% 0.50% to 2.55% 1.86% to 3.01% 2000 * * *
231f Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Managed Global 2002 0.13% 0.50% to 2.25% -22.00% to -20.59% 2001 0.13% 0.50% to 2.25% -13.60% to -12.34% 2000 * * * Managed Global Advisor 2002 *** 1.75% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 - 0.50% to 2.25% -49.97% to -49.07% 2001 0.37% 0.50% to 2.25% -25.09% to -24.25% 2000 * * * Mid-Cap Growth Advisor 2002 *** 1.40% to 1.80% *** 2001 *** *** *** 2000 *** *** *** Real Estate 2002 3.73% 0.50% to 2.25% -2.05% to 0.31% 2001 4.29% 0.50% to 2.25% 6.07% to 7.28% 2000 * * * Real Estate Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231g Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Research 2002 0.41% 0.80% to 2.55% -28.35% to -25.45% 2001 0.12% 0.80% to 2.25% -22.97% to -22.09% 2000 * * * Research Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Special Situations 2002 - 0.90% to 2.25% -27.58% to -26.61% 2001 0.37% 0.90% to 2.25% -6.87% to -6.19% 2000 * * * Special Situations Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 - 0.80% to 2.25% -33.26% to -32.24% 2001 - 0.80% to 2.25% -22.66% to -21.78% 2000 * * * Strategic Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Total Return 2002 2.36% 0.50% to 2.55% -7.51% to -5.56% 2001 4.88% 0.50% to 2.55% -1.44% to -0.32% 2000 * * *
231h Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Value Equity 2002 0.69% 0.80% to 2.55% -20.82% to -17.70% 2001 0.85% 0.80% to 2.25% -6.21% to -5.21% 2000 * * * Value Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 0.84% 0.50% to 2.25% -16.69% to -15.19% 2001 0.30% 0.50% to 2.25% -13.63% to -12.68% 2000 * * * Van Kampen Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 0.00% 0.95% to 2.55% -34.00% to -32.91% 2001 ** 0.95% to 2.25% ** 2000 ** ** **
231i Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 - 0.95% to 2.55% -32.94% to -31.79% 2001 1.09% 0.95% to 1.90% ** 2000 ** ** ** AIM V.I. Capital Appreciation 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 *** 0.75 % to 0.95% *** 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 0.17% 0.95% to 2.55% -15.23% to -13.83% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** Alliance Growth and Income 2002 3.91% 0.95% to 2.55% -24.45% to -23.00% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Alliance Premier Growth 2002 - 0.95% to 2.55% -32.66% to -31.52% 2001 ** 0.95% to 2.40% ** 2000 ** ** **
231j Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 0.02% 0.90% to 2.55% -32.32% to -30.79% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 1.09% 0.75% to 2.55% -18.95% to -17.69% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 0.37% 0.75% to 2.55% -12.19% to -10.28% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Overseas 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 1.50% 1.25% to 1.40% -18.69% to -18.58% 2001 1.15% 1.25% to 1.40% -5.32% to -5.18% 2000 * * *
231k Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 2.08% 1.40% to 1.80% -17.44% to -17.17% 2001 2.29% 1.40% to 1.80% -9.13% to -8.72% 2000 * * * Galaxy VIP Equity 2002 0.23% 1.40% to 1.90% -29.17% to -28.66% 2001 - 1.40% to 1.80% '-19.72% to -19.28% 2000 * * * Galaxy VIP Growth and Income 2002 0.09% 1.40% to 1.90% -27.84% to -27.31% 2001 0.15% 1.40% to 1.80% -5.67% to -5.28% 2000 * * * Galaxy VIP High Quality Bond 2002 4.71% 1.40% to 1.80% 8.36% to 8.89% 2001 5.35% 1.40% to 1.80% 5.88% to 5.89% 2000 * * * Galaxy VIP Small Company Growth 2002 - 1.40% to 1.90% -34.18% to -33.87% 2001 - 1.40% to 1.90% -2.11% to -1.57% 2000 * * * ING GET FUND: ING GET Fund - Series N 2002 1.35% 0.95% to 1.90% -2.73% to -1.75% 2001 2.25% 0.95% to 1.90% ** 2000 ** ** **
231l Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 0.07% 0.75% to 2.55% -1.80% to -0.20% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** ING GET Fund - Series Q 2002 2.51% 0.75% to 2.55% -0.70% to 1.20% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING GET Fund - Series R 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231m Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC.: ING Alger Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 *** 0.95% *** 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 *** 0.95% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 - 0.95% to 2.40% -37.64% to -32.29% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231n Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231o Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 *** 0.75% to 2.40% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 0.02% 0.90% to 2.55% -27.02% to -25.42% 2001 - 0.90% to 2.25% -20.18% to -19.36% 2000 * * * ING VP BOND PORTFOLIO: ING VP Bond 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 0.15% 0.75% to 2.55% -29.03% to -22.23% 2001 2.73% 0.95% to 1.90% ** 2000 ** ** ** ING VP Index Plus MidCap 2002 0.31% 0.75% to 2.55% -14.79 to -12.82% 2001 ** 0.95% to 1.90% ** 2000 ** ** **
231p Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 0.36% 0.75% to 2.55% -15.89% to -13.95% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP Small Company 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 0.40% 0.75% to 2.55% -28.22% to -26.66% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 3.17% 0.95% to 2.55% -9.37% to -7.79% 2001 -10.36% 0.95% to 2.20% ** 2000 ** ** ** ING VP Growth Opportunities 2002 - 0.75% to 2.25% -33.03% to -32.10% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ING VP International Value 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231q Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 1.28% 0.95% to 2.55% -24.40% to -23.16% 2001 0.92% 0.95% to 2.55% ** 2000 ** ** ** ING VP LargeCap Growth 2002 0.48% 0.95% to 2.25% -36.68% to -35.45% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP MagnaCap 2002 1.02% 0.90% to 2.25% -24.73% to -23.74% 2001 1.36% 0.90% to 2.25% ** 2000 ** ** ** ING VP MidCap Opportunities 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 0.00% 0.75% to 2.25% -45.05% to -44.14% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 1.15% 0.90% to 2.55% -17.15% to -15.76% 2001 2.70% 0.95% to 2.25% ** 2000 ** ** **
231r Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 - 0.90% to 2.55% -26.42% to -24.98% 2001 3.60% 0.95% to 2.55% ** 2000 ** ** ** INVESCO VIF - Leisure 2002 *** 0.95% to 2.25% *** 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1.12% 0.95% to 2.55% -22.62% to -20.91% 2001 3.07% 0.95% to 1.90% ** 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231s Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 0.52% 0.75% to 2.55% -27.58% to 26.20% 2001 0.33% 0.95% to 2.40% ** 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 8.20% 0.80% to 2.55% -4.80% to -1.63% 2001 7.91% 0.50% to 2.25% 0.30% to 1.57% 2000 * * * PIMCO StocksPLUS Growth and Income 2002 2.69% 0.80% to 2.25% -22.00% to -20.84% 2001 4.22% 0.80% to 2.25% -13.15% to -12.17% 2000 * * * PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231t Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 1.08% 0.80% to 2.55% -21.47% to -19.87% 2001 0.91% 0.95% to 1.90% ** 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 0.56% 0.75% to 2.25% -13.36% to -12.03% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** Pioneer Small Company VCT 2002 0.03% 0.95% to 2.55% -19.29% to -17.90% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 - 0.90% to 2.25% -25.68% to -24.66% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** ProFund VP Europe 30 2002 - 0.90% to 2.25% -27.49% to -26.42% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ProFund VP Small-Cap 2002 - 0.90% to 2.25% -24.20% to -23.15% 2001 ** 1.25% to 2.25% ** 2000 ** ** **
231u Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 - 0.90% to 2.55% -33.33% to -31.81% 2001 - 0.90% to 2.25% -20.20% to -19.62% 2000 * * * Prudential SP Jennison International Growth 2002 - 0.90% to 2.55% -25.05% to -23.53% 2001 0.24% 0.90% to 2.25% -37.19% to -36.52% 2000 * * * PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 1.62% 0.95% to 2.55% -21.30% to -19.79% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Putnam VT International Growth and Income 2002 0.28% 0.95% to 2.55% -16.21% to -14.65% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Putnam VT Voyager Fund II 2002 0.00% 0.95% to 2.55% -31.34% to -30.22% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 24.02% 1.25% to 1.40% -4.57% to -4.44% 2001 12.01% 1.25% to 1.40% -5.14% to -4.94% 2000 * * *
231v Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 0.95% 1.25% to 1.40% -26.74% to -26.64% 2001 - 1.25% to 1.40% -32.13% to -32.03% 2000 * * * Smith Barney Large Cap Value 2002 3.74% 1.25% to 1.40% -26.46% to -26.30% 2001 1.39% 1.25% to 1.40% -9.45% to -9.33% 2000 * * * Smith Barney Money Market 2002 1.30% 1.25% to 1.40% -0.16% to 0.00% 2001 3.49% 1.25% to 1.40% 2.28% to 2.42% 2000 * * * UBS SERIES TRUST: UBS Tactical Allocation 2002 0.45% 0.95% to 2.55% -25.08% to -23.67% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** * Not provided for 2000. ** As this Division is new in 2001, this data is not meaningful and is therefore not presented. *** As this Division is new in 2002, this data is not meaningful and is therefore not presented
231w PART C - OTHER INFORMATION ITEM 24: FINANCIAL STATEMENTS AND EXHIBITS FINANCIAL STATEMENTS (a) (1) All financial statements are included in the Prospectus or the Statement of Additional Information as indicated therein (2) Schedules I 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 Affiliates As of December 31, 2002 (Millions) Amount shown on Balance Type of Investment Cost Value* Sheet ----------------------------------------------------------------------------------------------------------- Fixed maturities: U.S. government and government agencies and authorities $ 207.3 $ 209.5 $ 209.5 Public Utilities Securities 335.7 349.3 349.3 U.S. corporate securities 3,012.0 3,182.9 3,182.9 Foreign securities (1) 228.6 242.5 242.5 Mortgage-backed securities 641.7 653.5 653.5 Other asset-backed securities 294.8 298.7 298.7 Less: Fixed maturities pledged to creditors - - - ---------------------------------------------- Total fixed maturities $ 4,720.1 $ 4,936.4 $ 4,936.4 ---------------------------------------------- Equity securities: ---------------------------------------------- Total equity securities 22.9 19.0 19.0 ---------------------------------------------- Short term investments 2.2 2.2 2.2 Mortgage loans 482.4 482.4 482.4 Policy loans 16.0 16.0 16.0 ---------------------------------------------- Total other investments $ 500.6 $ 500.6 $ 500.6 =========================================================================================================== * See Notes 2 and 3 of Notes to Consolidated Financial Statements. (1) The term "foreign" includes foreign governments, foreign political subdivisions, foreign public utilities and all other bonds of foreign issuers. Substantially all of the Company's foreign securities are denominated in U.S. dollars.
SCHEDULE IV Reinsurance Information As of and for the years ended December 31, 2002, 2001 and 2000 (Millions) (Millions) Ceded to Assumed Percentage of Gross Other from Other Net Amount assumed Amount Companies Companies Amount to net --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- AT DECEMBER 31, 2002 Life insurance in Force $ 158.7 $ 90.7 $ - $ 68.0 0.0% AT DECEMBER 31, 2001 Life insurance in Force $ 169.3 $ 94.8 $ - $ 74.5 0.0% AT DECEMBER 31, 2000 Life insurance in Force $ 196.3 $ 105.3 $ - $ 91.0 0.0%
(b) EXHIBITS (1) Resolution of the board of directors of Depositor authorizing the establishment of the Registrant (1) (2) N/A (3)(a) Distribution Agreement between the Depositor and Directed Services, Inc. (1) (b) Dealers Agreement. (1) (c) Organizational Agreement (1) (d) Assignment Agreement for Organizational Agreement. (1) (4)(a) Individual Deferred Combination Variable and Fixed Annuity Contract. (3) (b) Group Deferred Combination Variable and Fixed Annuity Contract. (3) (c) Individual Deferred Variable Annuity Contract. (3) (d) Individual Retirement Annuity Rider. (12) (e) ROTH Individual Retirement Annuity Rider. (12) (f) Minimum Guaranteed Accumulation Benefit Rider (REV). (8) (g) Minimum Guaranteed Income Benefit Rider (REV). (11) (h) Minimum Guaranteed Withdrawal Benefit Rider (REV). (8) (i) Minimum Guaranteed Withdrawal Benefit Rider. (j) Minimum Guaranteed Withdrawal Benefit with Reset and Step Up Option. (k) Living Benefit Rider Endorsement (Inforce Riders). (8) (l) Death Benefit Endorsement No.1 (REV)(7% Solution Enhanced). (8) (m) Death Benefit Endorsement No.2 (Ratchet Enhanced). (n) Death Benefit Endorsement No.3 (REV)(Standard). (8) (o) Death Benefit Endorsement No.4 (Max 7 Enhanced). (p) Death Benefit Endorsement No.5 (Base Death Benefit). (8) (q) Death Benefit Endorsement No.6 (Inforce Contracts). (8) (r) Earnings Enhancement Death Benefit Rider. (7) (s) Simple Retirement Annuity Rider. (12) (t) 403(b) Retirement Annuity Rider. (12) (u) Company Address and Name Change Endorsement. (5)(a) Individual Deferred Combination Variable and Fixed Annuity Application. (15) (b) Group Deferred Combination Variable and Fixed Annuity Enrollment Form.(4) (6)(a) Amended and Restated Articles of Incorporation of ING USA Annuity and Life Insurance Company, dated (01/01/04). (b) Amended and Restated By-Laws of ING USA annuity and Life Insurance Company, dated (01/01/04). (c) Resolution of the board of directors for Powers of Attorney, dated (04/23/99) (3) (d) Articles of Merger and Agreement and Plan of Merger of USGALC, ULAIC, ELICI into GALIC and renamed ING USA Annuity and Life Insurance Company, dated (06/25/03). (7) Not applicable (8)(a) Participation Agreement between Golden American and The PIMCO Variable Insurance Trust. (3) (b) Administrative Services Agreement between Golden American and Equitable Life Insurance Company of Iowa. (2) (c) Service Agreement between Golden American and Directed Services, Inc. (2) (d) Participation Agreement between Golden American and The Prudential Series Fund, Inc. (5) (e) Amendment to the Participation Agreement between Golden American and The Prudential Series Fund, Inc. (6) (f) Form of Participation Agreement between Golden American and ProFunds. (8) (g) Form of Services Agreement among Golden American Life Insurance Company and ING affiliated Insurance Companies. (9) (h) Form of Services Agreement between Golden American Life Insurance Company and ING North American Insurance Corporation, Inc. (9) (i) Form of Shared Services Center Agreement among ING North American Insurance Corporation, Inc. and ING affiliated Insurance Companies. (9) (j) Participation Agreement between Golden American and ING Variable Products Trust. (10) (k) Participation Agreement between Golden American and ING Variable Insurance Trust. (10) (l) Participation Agreement between Golden American and AIM Variable Insurance Funds, Inc. (10) (m) Participation Agreement between Golden American and INVESCO Variable Investment Funds, Inc. (10) (n) Participation Agreement between Golden American and Pioneer Variable Contracts Trust. (10) (o) Participation Agreement between Golden American and Fidelity Distributors Corporation. (10) (p) Form of Participation Agreement between Golden American, American Funds Insurance Series and Capital Research and Management Company. (14) (9) Opinion and Consent of Kimberly J. Smith. (10)(a) Consent of Ernst & Young LLP, Independent Auditors. (b) Consent of Kimberly J. Smith, incorporated in Item 9 of this Part C, together with the Opinion of Kimberly J. Smith. (11) Not applicable (12) Not applicable (13) Schedule of Performance Data. (8) (14) Not applicable (15) Powers of Attorney. (13) 1) Incorporated herein by reference to Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on September 24, 1997 (File Nos. 333-28769, 811-5626). 2) Incorporated herein to Post-Effective Amendment No. 2 to a Registration Statement on Form N-4 for on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 30, 1998 (File Nos. 333-28769, 811-5626). 3) Incorporated herein by reference to Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 23, 1999 (File Nos. 333-28769, 811-5626). 4) Incorporated herein by reference to Post-Effective Amendment No. 4 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on December 3, 1999 (File Nos. 333-28769, 811-5626). 5) Incorporated herein by reference to Post-Effective Amendment No. 6 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 26, 2000 (File Nos. 333-28769, 811-5626). 6) Incorporated herein by reference to Post-Effective Amendment No. 10 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on December 15, 2000 (File Nos. 333-28769, 811-5626). 7) Incorporated herein by reference to Post-Effective Amendment No. 11 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on February 23, 2001 (File Nos. 333-28769, 811-5626). 8) Incorporated herein by reference to Post-Effective Amendment No. 12 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 23, 2001 (File Nos. 333-28769, 811-5626). 9) Incorporated herein by reference to Post-Effective Amendment No. 14 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on December 14, 2001 (File Nos. 333-28769, 811-5626). 10) Incorporated herein by reference to Post-Effective Amendment No. 32 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 29, 2002 (File Nos. 033-23351, 811-5626). 11) Incorporated herein by reference to Post-Effective Amendment No. 20 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on October 28, 2002 (File Nos. 333-28769, 811-5626). 12) Incorporated herein by reference to Post-Effective Amendment No. 34 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 15, 2003 (File Nos. 033-23351, 811-5626). 13) Incorporated herein by reference to Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on June 5, 2003 (File Nos. 333-70600, 811-5626). 14) Incorporated herein by Reference to Pre-Effective Amendment No. 1 to a Registration Statement on Form N-6, for ReliaStar Life Insurance Company Select * Life Variable Account filed with the Securities and Exchange Commission on July 17, 2003 (File Number 333-105319). 15) Incorporated herein by reference to Post-Effective Amendment No. 24 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on November 12, 2003 (File Nos. 333-28769, 811-5626). ITEM 25: DIRECTORS AND OFFICERS OF THE DEPOSITOR Principal Position(s) Name Business Address with Depositor ---- ---------------- -------------- Keith Gubbay ING Insurance Operations Director and President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Boyd G. Combs ING Insurance Operations Senior Vice President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Jacques de Vaucleroy ING Insurance Operations Director and Senior 5780 Powers Ferry Road Vice President Atlanta, GA 30327-4390 Shaun P. Mathews ING Financial Services Senior Vice President 151 Farmington Avenue Hartford, CT 06156 James R. Gelder ReliaStar Life Insurance Co. Senior Vice President 20 Washington Avenue South Minneapolis, MN 55402 James R. McInnis ING USA Annuity & Life Ins. Co. Senior Vice President 1475 Dunwoody Drive West Chester, PA 19380 Stephen J. Preston ING USA Annuity & Life Ins. Co. Senior Vice President 1475 Dunwoody Drive West Chester, PA 19380 Kathleen A. Murphy ING Insurance Operations Director 5780 Powers Ferry Road Atlanta, GA 30327-4390 Thomas J. McInerney ING Insurance Operations Director and CEO 5780 Powers Ferry Road Atlanta, GA 30327-4390 David A. Wheat ING Insurance Operations Chief Financial Officer 5780 Powers Ferry Road Director Atlanta, GA 30327-4390 David L. Jacobson ING USA Annuity & Life Ins. Co. Vice President, Chief 1475 Dunwoody Drive Compliance Officer and West Chester, PA 19380 Assistant Secretary David S. Pendergrass ING Insurance Operations Vice President and 5780 Powers Ferry Road Treasurer Atlanta, GA 30327-4390 Paula Cludray-Engelke ReliaStar Life Insurance Co. Secretary 20 Washington Avenue South Minneapolis, MN 55402 ITEM 26: PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT 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 Depositor is under common control with a New York company, ReliaStar Life Insurance Company of New York ("RLNY"). The primary purpose of RLNY is to offer variable products in the state of New York. 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. Subsidiaries of ING Groep N.V. incorporated herein by reference to Item 26 in Post-Effective Amendment No. 28 to Registration Statement on Form N-4 (File No. 33-75988), as filed on April 10, 2003 for Variable Annuity Account C of ING Life Insurance and Annuity Company. ITEM 27: NUMBER OF CONTRACT OWNERS As of January 30, 2004, there are 167,188 qualified contract owners and 171,692 non-qualified contract owners in ING USA's Separate Account B. ITEM 28: INDEMNIFICATION ING USA 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 ING USA 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. ING USA may also, to the extent permitted by law, indemnify any other person who is or was serving ING USA 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. ING USA 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, serves as principal underwriter for all contracts issued by ING USA Annuity and Life Insurance Company. DSI is the principal underwriter for Separate Account A, Separate Account B, Separate Account EQ (formerly known as Equitable Life Insurance Company of Iowa Separate Account A), ReliaStar Life Insurance Company of New York Separate Account NY-B, Alger Separate Account A of ING USA and the ING Investors 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 Director and President Alan G. Hoden Director Stephen J. Preston Director David S. Pendergrass Vice President and Treasurer ING Insurance Operations 5780 Powers Ferry Road Atlanta, GA 30327-4390 David L. Jacobson Senior Vice President Kimberly J. Smith Secretary (c) 2002 Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commissions Redemption Commissions Compensation ----------- ------------ ------------- ----------- ------------ DSI $287,208,066 $0 $0 $0 ITEM 30: LOCATION OF ACCOUNTS AND RECORDS Accounts and records are maintained by ING USA Annuity and Life Insurance Company at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478, 909 Locust Street, Des Moines, Iowa 50309, and at ING Americas at 5780 Powers Ferry Road, N.W., Atlanta, GA 30327-4390. 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 than 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 the definition of a "separate account" under federal securities laws. 2. ING USA Annuity and 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 certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this Post-Effective Amendment to its Registration Statement on Form N-4 and has caused this Post-Effective Amendment to be signed on its behalf in the City of West Chester and Commonwealth of Pennsylvania on this 13th day of February, 2004. SEPARATE ACCOUNT B (Registrant) By: ING USA ANNUITY AND LIFE INSURANCE COMPANY (Depositor) By: -------------------- Keith Gubbay* President and Director Attest: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor As required by the Securities Act of 1933, this Amendment to Registration Statement has been signed by the following persons in the capacities indicated on February 13, 2004. Signature Title --------- ----- President and Director -------------------- Keith Gubbay* DIRECTORS OF DEPOSITOR ---------------------- David A. Wheat* ---------------------- Thomas J. McInerney* ---------------------- Kathleen A. Murphy ---------------------- Jacques de Vaucleroy Attest: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor *Executed by Linda E. Senker on behalf of those indicated pursuant to Power of Attorney. EXHIBIT INDEX ITEM EXHIBIT PAGE # ---- ------- ------ 4(i) Minimum Guaranteed Withdrawal Benefit Rider EX-99.B4I 4(j) Minimum Guaranteed Withdrawal Benefit with Reset and Step Up Option EX-99.B4J 4(m) Death Benefit Endorsement No.2 (Ratchet Enhanced) EX-99.B4M 4(o) Death Benefit Endorsement No.4 (Max 7 Enhanced) EX-99.B4O 4(u) Company Address and Name Change Endorsement EX-99.B4U 6(a) Amended and Restated Articles of Incorporation EX-99.B6A 6(b) Amended and Restated By-Laws EX-99.B6B 6(d) Articles of Merger and Agreement and Plan of Merger EX-99.B6D 9 Opinion and Consent of Kimberly J. Smith EX-99.B9 10(a) Consent of Ernst & Young LLP, Independent Auditors EX-99.B10A