-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VoGoFDHM7IIZsTxkTKCNicnX+2KCUCdbDFL4G10+Fd/JfTQZHWhtmlkfb7XM+GFD cDQxtnPCNY/gfmm2P78hnw== 0000912057-96-019713.txt : 19960910 0000912057-96-019713.hdr.sgml : 19960910 ACCESSION NUMBER: 0000912057-96-019713 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960906 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CG VARIABLE LIFE INSURANCE SEPARATE ACCOUNT I CENTRAL INDEX KEY: 0000930597 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08780 FILM NUMBER: 96626562 BUSINESS ADDRESS: STREET 1: 900 COTTAGE GROVE RD CITY: BLOOMFIELD STATE: CT ZIP: 06002 BUSINESS PHONE: 2037266000 MAIL ADDRESS: STREET 1: 900 COTTAGE GROVE RD CITY: HARTFORD STATE: CT ZIP: 06152-2251 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CG VARIABLE ANNUITY SEPARATE ACCOUNT II CENTRAL INDEX KEY: 0000928718 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08714 FILM NUMBER: 96626563 BUSINESS ADDRESS: STREET 1: 900 COTTAGE GROVE RD CITY: BLOOMFIELD STATE: CT ZIP: 06002 MAIL ADDRESS: STREET 1: 900 COTTAGE GROVE RD CITY: HARTFORD STATE: CT ZIP: 06152-2251 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIGNA VARIABLE ANNUITY SEPARATE ACCOUNT I CENTRAL INDEX KEY: 0000943724 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 060303370 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 033-90984 FILM NUMBER: 96626564 BUSINESS ADDRESS: STREET 1: 900 COTTAGE GROVE RD CITY: HARTFORD STATE: CT ZIP: 06152-2251 BUSINESS PHONE: 2037262920 MAIL ADDRESS: STREET 1: 900 COTTAGE GROVE ROAD CITY: HARTFORD STATE: CT ZIP: 06152-2251 N-30D 1 N-30D CIGNA ACCRU SEMI-ANNUAL REPORT JUNE 30, 1996 [LOGO] TABLE OF CONTENTS PRESIDENT'S LETTER ECONOMIC REVIEW AND OUTLOOK SCHEDULE OF CHANGES IN UNIT VALUES FUND REPORTS: THE ALGER AMERICAN FUND SEMI-ANNUAL REPORT ALGER AMERICAN GROWTH PORTFOLIO ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO ALGER AMERICAN MIDCAP GROWTH PORTFOLIO ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND SEMI-ANNUAL REPORT* MONEY MARKET PORTFOLIO HIGH INCOME PORTFOLIO EQUITY-INCOME PORTFOLIO OVERSEAS PORFOLIO VARIABLE INSURANCE PRODUCTS FUND II SEMI-ANNUAL REPORT* INVESTMENT GRADE BOND PORTFOLIO ASSET MANAGER PORTFOLIO MFS-REGISTERED TRADEMARK- VARIABLE INSURANCE TRUST-SM- SEMI-ANNUAL REPORTS MFS TOTAL RETURN SERIES MFS UTILITIES SERIES MFS WORLD GOVERNMENTS SERIES NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST SEMI-ANNUAL REPORTS BALANCED PORTFOLIO LIMITED MATURITY BOND PORTFOLIO PARTNERS PORTFOLIO OCC ACCUMULATION TRUST SEMI-ANNUAL REPORT GLOBAL EQUITY PORTFOLIO MANAGED PORTFOLIO SMALL CAP PORTFOLIO * PLEASE NOTE THAT THE FIDELITY MONEY MARKET PORTFOLIO, HIGH INCOME PORTFOLIO AND OVERSEAS PORTFOLIO ARE USED IN CONNECTION WITH ACCRU VARIABLE ANNUITY CONTRACTS, BUT NOT ACCRU VARIABLE LIFE INSURANCE CONTRACTS. IN ADDITION, THE FIDELITY MATERIALS CONTAINED IN THIS SEMI-ANNUAL REPORT DISCUSS FUNDS NOT AVAILABLE TO FUND THESE CONTRACTS. [LOGO] [PHOTO] [LOGO] THOMAS C. JONES President 900 Cottage Grove Road Routing S-249 Hartford, CT 06152-2249 Dear Client: We are pleased to provide you with this report on the performance of the ACCRU Variable Annuity and the ACCRU Variable Universal Life Insurance products for the six-month period ended June 30, 1996. In addition to a summary of sub-account performances for the past six months, we've also included reports for each of the portfolio options in the ACCRU product line, and we've provided a wide-ranging interview with Edward Guay, CIGNA's chief economist. The interview discusses significant national and international economic trends affecting key financial markets, and I encourage you to take the time to read it carefully. Like the report itself, the interview reflects our commitment to meet your expectations and needs -- a commitment we feel is especially important in today's environment of continuous and rapid change. Through your ownership of an ACCRU variable product, you've shown great confidence in our organization. We plan to honor that confidence by keeping you fully informed about your purchase and by maintaining our focus on key priorities designed to find superior solutions to today's complex financial planning problems. As an organization, we're dedicated to: - Providing COMPETITIVELY SUPERIOR PRODUCTS that will deliver outstanding value and help assure our clients' long-term financial well-being. - Adhering to the highest standards of ethical and professional conduct by supplying COMPREHENSIVE PRODUCT DISCLOSURE that helps clients fully understand their insurance and investment purchases and allows them to intelligently evaluate the performance of our products. - Providing CONSISTENTLY SUPERIOR SERVICE from the time of sale through the life of the contract, making it as easy as possible to do business with us. - And committing ourselves to helping you achieve FINANCIAL SECURITY -- which has been a CIGNA tradition for more than 125 years. These core priorities create a sense of common purpose and direction for our organization, allowing us to concentrate our resources and efforts to effectively and efficiently meet your long-term financial planning needs. We appreciate your business and will continue to do our best to maintain your loyalty and trust. If you have any questions or comments about this report -- or if our client services representatives can assist you in any way -- please feel free to call our Annuity and Variable Life Services Center at 1.800.552.9898, Monday through Friday, 8AM to 7PM Eastern time. Thank you again for choosing CIGNA as your financial planning partner. Sincerely, [SIG] Thomas C. Jones ECONOMIC REVIEW AND OUTLOOK AN INTERVIEW WITH EDWARD GUAY, CHIEF ECONOMIST, CIGNA CORPORATION WHAT MAJOR DEVELOPMENTS CHARACTERIZED THE U.S. ECONOMY IN THE FIRST HALF OF 1996? One key development was that the broad inventory correction that weakened economic activity during 1995 appears to have ended for most industries during the first half of this year. That is, having previously cut production below normal levels in order to work off excess inventory, the majority of industries raised production back to normal levels by mid-1996. This contributed to total economic growth of slightly over 3% for the half, which was somewhat stronger than we had been expecting and considerably stronger than the consensus view. In addition, there was a reversal of the consumer slowdown that contributed to weakened economic activity last year. Consumer and housing activity were strong enough during the first half to lift production, employment and incomes. There was a strong rebound in residential construction activity and auto sales, accompanied by a similar rebound in general merchandise retailing. There were signs of renewed labor market tightness, renewed food and energy inflation, and a return of above-trend economic strength. HOW DID THESE TRENDS TEND TO AFFECT FINANCIAL MARKETS? As sentiment about real economic activity improved, inflation fears also returned, as did concerns about an impending shift in Federal Reserve policy. Between December and March, the change in market sentiment produced a large and abrupt change in the fixed income markets. The yield curve steepened significantly, meaning that long-term rates increased more than short-term rates. Long Treasury bond yields rose from 6% last December to levels above 7% by early June, which tended to drive down bond prices. DID THE SITUATION IN FIXED INCOME MARKETS HAVE AN IMPACT ON EQUITY MARKETS? Yes, which explains why equity market performance weakened as the first half came to a conclusion. Following the trend of the past decade, equity markets tended to move in concert with fixed income markets rather than being driven by corporate profits. Rising interest rate concerns during the second quarter limited equity market advances and increased fears of an impending market correction. The Standard & Poor's Composite 500 Index appreciated by 3.9% during the second quarter, while the Dow Jones Industrials rose by only 1.2%. Although the performance of the NASDAQ Index was much more choppy because of technology stock corrections, it managed a 7.6% gain during the quarter. WHAT WERE SOME OF THE KEY DEVELOPMENTS ON THE INTERNATIONAL SCENE? Foreign markets were somewhat variable because of certain technical factors and concerns about policy shifts. The equity market in the United Kingdom was flat in local currency while the Japanese and German equity markets were up slightly. In dollar terms, the major foreign stock markets generally produced returns in line with the S&P 500 and the Dow Jones Industrial Average. There are still concerns about the strength of the economic recoveries in Japan and Europe. The strengthening of these major foreign economies is important to the U.S. because it can help boost our export sales, which have become an increasingly significant component of U.S. economic growth in recent years. IN GENERAL, HOW WOULD YOU DESCRIBE THE ECONOMIC SITUATION AT THE CLOSE OF THE FIRST HALF? Although there was some turmoil in financial markets as the first half ended, the range of economic and financial data was consistent with the "soft landing" view. This means that the economy appears to be slowing from a growth rate that is too high to a stable long-term growth rate without actually falling into a recession. This is one of the few occasions in post-war history, along with 1962 and 1984, when the Federal Reserve apparently has been able to slow the economy effectively without triggering a recession. On many other occasions, authorities responded belatedly to inflation, to speculation and to other excesses in the economy, and then responded in a very heavy-handed way so that the economy shifted dramatically from boom to recession. SINCE THE ECONOMY APPARENTLY HAS ACHIEVED A SOFT LANDING, DOES THIS MEAN THAT THERE IS CLEAR SAILING AHEAD FOR FINANCIAL MARKETS IN THE SECOND HALF? The outlook is generally positive, but the Fed and the financial markets still face some significant challenges. The economy appears to be operating near potential with respect to both capacity and skilled labor. Thus, "shocks" in significant segments of the economy and foreign demands are more likely to move the Fed to tighten policy somewhat -- that is, to raise interest rates rather than to lower them. A potential agricultural shock is developing because of adverse weather conditions in parts of the country, and energy shocks are also possible during the coming year as world economic and trade growth accelerate and stimulate world demand for refined product. A key concern at the Fed is that food and energy price increases could translate into wage increases in a tight labor market. Unlike food and energy price increases, which tend to be temporary in nature, wage increases tend to be permanent and become a base for further increases in succeeding years. The Fed does not want to take the risk of supporting an excessively strong economy for too long, because if wage inflation becomes a serious problem it's very difficult to control and could lead to widespread inflation, which is bad for almost everyone. WHAT RATE OF GROWTH DO YOU FORESEE FOR THE U.S. ECONOMY IN THE SECOND HALF OF 1996 AND INTO 1997, AND HOW ARE THE FINANCIAL MARKETS LIKELY TO BE AFFECTED? Growth is likely to slow somewhat in the second half, possibly holding at about 3% in the third quarter and then dropping to 2.75% or 2.5% in the fourth quarter. Assuming that only modest changes occur in major "background" issues such as food, energy, foreign growth, political shifts, and monetary policy in Japan and Europe, the U.S. should experience at least another 12 to 18 months of moderate economic growth with contained inflation. That should permit U.S. financial markets to operate within a wide, but acceptable, trading range. But it's important to note that the markets are likely to react with considerable volatility to significant negative developments in any of the above background issues. ACCRU VARIABLE PRODUCTS SCHEDULE OF CHANGES IN UNIT VALUES PERIOD ENDED JUNE 30, 1996 (UNAUDITED) - -------------------------------------------------------------------------------- CONNECTICUT GENERAL ACCRU VARIABLE ANNUITY (INCLUDING NEW YORK CONTRACTS ISSUED BEFORE MAY 1, 1996)
DATE INITIALLY FUNDED 12/31/95 6/30/96 (INCEPTION ACCUMULATION ACCUMULATION SUB-ACCOUNT DATE) UNIT VALUE UNIT VALUE % CHANGE - ----------------------------------------------------------------------------------------------------------------- Alger American Growth Portfolio 4/12/95 12.385784 13.102971 5.8 Alger American Leveraged AllCap Portfolio 6/2/95 13.895178 15.387074 10.7 Alger American MidCap Growth Portfolio 4/10/95 13.106537 14.120258 7.7 Alger American Small Capitalization Portfolio 4/10/95 13.092181 14.021514 7.1 - ----------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio 4/10/95 12.128673 12.755984 5.2 Fidelity VIP Money Market Portfolio 6/8/95 10.245402 10.447088 2.0 Fidelity VIP High Income Portfolio 5/3/96 10.000000* 10.231844 2.3 Fidelity VIP Overseas Portfolio 5/9/96 10.000000* 10.140911 1.4 Fidelity VIP II: Asset Manager Portfolio 4/12/95 11.280365 11.857526 5.1 Fidelity VIP II: Investment Grade Bond Portfolio 7/18/95 10.541110 10.311878 -2.2 - ----------------------------------------------------------------------------------------------------------------- MFS Total Return Series 7/7/95 11.003903 11.503525 4.5 MFS Utilities Series 7/27/95 11.365171 11.776328 3.6 MFS World Government Series 7/7/95 10.277969 10.140843 -1.3 - ----------------------------------------------------------------------------------------------------------------- AMT Balanced Portfolio 7/18/95 10.269633 10.514915 2.4 AMT Limited Maturity Bond Portfolio 5/3/95 10.547360 10.509881 -0.4 AMT Partners Portfolio 4/12/95 12.122020 13.530823 11.6 - ----------------------------------------------------------------------------------------------------------------- OCC Global Equity Portfolio 4/10/95 11.758951 12.583843 7.0 OCC Managed Portfolio 6/19/95 11.143831 12.053756 8.2 OCC Small Cap Portfolio 6/27/95 10.855343 11.699621 7.8 - -----------------------------------------------------------------------------------------------------------------
* Accumulation Unit Value as of Inception Date, which was later than 12/31/95 - -------------------------------------------------------------------------------- ACCRU VARIABLE UNIVERSAL LIFE
DATE INITIALLY FUNDED 12/31/95 6/30/96 (INCEPTION ACCUMULATION ACCUMULATION SUB-ACCOUNT DATE) UNIT VALUE UNIT VALUE % CHANGE - ----------------------------------------------------------------------------------------------------------------- Alger American Growth Portfolio 5/5/95 12.175146 12.935436 6.2 Alger American Leveraged AllCap Portfolio 5/5/95 14.765068 16.420542 11.2 Alger American MidCap Growth Portfolio 5/5/95 12.966604 14.029473 8.2 Alger American Small Capitalization Portfolio 5/5/95 12.845183 13.816040 7.6 - ----------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio 5/5/95 11.970125 12.643275 5.6 Fidelity VIP II: Asset Manager Portfolio 11/16/95 10.493126 11.077363 5.6 Fidelity VIP II: Investment Grade Bond Portfolio 11/16/95 10.215729 10.036505 -1.8 - ----------------------------------------------------------------------------------------------------------------- MFS Total Return Series 10/10/95 10.618988 11.148796 5.0 MFS Utilities Series 12/26/95 10.070410 10.479542 4.1 MFS World Government Series 5/5/95 10.417540 10.322700 -0.9 - ----------------------------------------------------------------------------------------------------------------- AMT Balanced Portfolio 9/12/95 9.807578 10.084950 2.8 AMT Limited Maturity Bond Portfolio * * * * AMT Partners Portfolio 5/5/95 12.079554 13.541281 12.1 - ----------------------------------------------------------------------------------------------------------------- OCC Global Equity Portfolio 9/12/95 10.050817 10.802054 7.5 OCC Managed Portfolio 5/5/95 12.250674 13.307838 8.6 OCC Small Cap Portfolio 9/26/95 10.235194 11.078596 8.2 - -----------------------------------------------------------------------------------------------------------------
* As of 6/30/96, no premium payments had yet been allocated to this fund. Accumulation Unit Values are net of charges against the assets of the Variable Accounts for the assumption of mortality and expense risks and for administrative expenses. ACCRU VARIABLE PRODUCTS SCHEDULE OF CHANGES IN UNIT VALUES PERIOD ENDED JUNE 30, 1996 (UNAUDITED) - -------------------------------------------------------------------------------- CIGNA LIFE ACCRU VARIABLE ANNUITY
DATE INITIALLY FUNDED ACCUMULATION 6/30/96 % CHANGE (INCEPTION UNIT VALUE ACCUMULATION SINCE SUB-ACCOUNT DATE) AT INCEPTION UNIT VALUE INCEPTION - ----------------------------------------------------------------------------------------------------------------- Alger American Growth Portfolio 2/23/96 10.000000 9.593503 -4.1 Alger American Leveraged AllCap Portfolio 2/9/96 10.000000 10.522845 5.2 Alger American MidCap Growth Portfolio 1/19/96 10.000000 11.042891 10.4 Alger American Small Capitalization Portfolio 2/9/96 10.000000 10.279910 2.8 - ----------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio 2/20/96 10.000000 10.270211 2.7 Fidelity VIP Money Market Portfolio 2/22/96 10.000000 10.134190 1.3 Fidelity VIP High Income Portfolio 5/17/96 10.000000 10.096380 1.0 Fidelity VIP Overseas Portfolio 5/13/96 10.000000 10.165470 1.7 Fidelity VIP II: Asset Manager Portfolio 3/1/96 10.000000 10.327474 3.3 Fidelity VIP II: Investment Grade Bond Portfolio 3/1/96 10.000000 9.872902 -1.3 - ----------------------------------------------------------------------------------------------------------------- MFS Total Return Series 2/22/96 10.000000 10.127436 1.3 MFS Utilities Series 3/15/96 10.000000 10.524387 5.2 MFS World Government Series 2/20/96 10.000000 10.053414 0.5 - ----------------------------------------------------------------------------------------------------------------- AMT Balanced Portfolio 2/22/96 10.000000 9.897492 -1.0 AMT Limited Maturity Bond Portfolio 2/20/96 10.000000 9.949603 -0.5 AMT Partners Portfolio 2/20/96 10.000000 10.629037 6.3 - ----------------------------------------------------------------------------------------------------------------- OCC Global Equity Portfolio 2/9/96 10.000000 10.412668 4.1 OCC Managed Portfolio 2/20/96 10.000000 10.333091 3.3 OCC Small Cap Portfolio 3/1/96 10.000000 10.463932 4.6 - -----------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- CONNECTICUT GENERAL ACCRU VARIABLE ANNUITY -- NEW YORK CONTRACTS ISSUEDMAY 1, 1996 AND LATER
DATE INITIALLY FUNDED ACCUMULATION 6/30/96 % CHANGE (INCEPTION UNIT VALUE ACCUMULATION SINCE SUB-ACCOUNT DATE) AT INCEPTION UNIT VALUE* INCEPTION - ----------------------------------------------------------------------------------------------------------------- Alger American Growth Portfolio 5/2/96 10.000000 10.082105 0.8 Alger American Leveraged AllCap Portfolio 5/2/96 10.000000 9.972470 -0.3 Alger American MidCap Growth Portfolio 5/2/96 10.000000 9.793241 -2.1 Alger American Small Capitalization Portfolio 5/2/96 10.000000 9.763585 -2.4 - ----------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio 5/2/96 10.000000 10.124325 1.2 Fidelity VIP Money Market Portfolio 6/3/96 10.000000 10.025922 0.3 Fidelity VIP High Income Portfolio 5/22/96 10.000000 10.045929 0.5 Fidelity VIP Overseas Portfolio 5/20/96 10.000000 10.069978 0.7 Fidelity VIP II: Asset Manager Portfolio 5/28/96 10.000000 10.039853 0.4 Fidelity VIP II: Investment Grade Bond Portfolio 6/3/96 10.000000 10.120676 1.2 - ----------------------------------------------------------------------------------------------------------------- MFS Total Return Series 5/2/96 10.000000 10.208476 2.1 MFS Utilities Series 5/24/96 10.000000 10.102560 1.0 MFS World Government Series 5/20/96 10.000000 10.035173 0.4 - ----------------------------------------------------------------------------------------------------------------- AMT Balanced Portfolio 5/22/96 10.000000 9.695658 -3.0 AMT Limited Maturity Bond Portfolio 6/3/96 10.000000 10.050960 0.5 AMT Partners Portfolio 5/2/96 10.000000 10.056207 0.6 - ----------------------------------------------------------------------------------------------------------------- OCC Global Equity Portfolio 5/2/96 10.000000 10.174148 1.7 OCC Managed Portfolio 5/2/96 10.000000 10.210946 2.1 OCC Small Cap Portfolio 5/20/96 10.000000 9.726533 -2.7 - -----------------------------------------------------------------------------------------------------------------
* Variable Annuity unit values reflect the Company's reduction of its mortality and expense risk charges for the period from 5/1/96 to 6/30/96 to a rate of 1.20% per year instead of 1.25% per year. Had these charges been imposed, ending accumulation unit values would have been lower for the funds during that period. Accumulation Unit Values are net of charges against the assets of the Variable Accounts for the assumption of mortality and expense risks and for administrative expenses. The mutual fund semiannual reports are incorporated herein by reference. Each of them has been electronically filed with the Securities and Exchange Commission in connection with the named entity's status as a registered investment company under the Investment Company Act of 1940: 1. The Alger American Fund SemiAnnual Report, June 30, 1996, consisting of 26 partially numbered pages. Filed: August 29, 1996, Form Type N-30D, Registration Statement 811-5550 2. Variable Insurance Products Fund SemiAnnual Report, June 30, 1996, consisting of 50 partially numbered pages. Filed: August 29, 1996, Form Type N- 30D, Registration Statement 311-3329 and Variable Insurance Products Fund II SemiAnnual Report, June 30, 1996, consisting of 62 partially numbered pages. Filed August 29, 1996, Form Type N-30D, Registration Statement 811-5511 3. MFS-Registered Trademark-Variable Insurance Trust 3(a)MFS-Registered Trademark-Total Return Series SemiAnnual Report, June 30, 1996, consisting of 19 partially numbered pages 3(b)MFS-Registered Trademark-Utilities Series SemiAnnual Report, June 30, 1996, consisting of 16 partially numbered pages 3(c)MFS-Registered Trademark-World Governments Series SemiAnnual Report, June 30, 1996, consisting of 18 partially numbered pages Filed August 29, 1996, Form Type N-30D, Registration Statement 811- 8326 4. Neuberger&Berman Advisers Management Trust 4(a)Balanced Portfolio SemiAnnual Report, June 30, 1996, consisting of 25 partially numbered pages 4(b)Maturity Bond Portfolio SemiAnnual Report, June 30, 1996, consisting of 21 partially numbered pages 4(c)Partners Portfolio SemiAnnual Report, June 30, 1996, consisting of 21 partially numbered pages Filed August 26, 1996, Form Type N-30D, Registration Statement 811- 4255 5. OCC Accumulation Trust SemiAnnual Report, June 30, 1996, consisting of 40 unnumbered pages. Filed September 3, 1996, Form Type N-30D, Registration Statement 811-8512 This report may be distributed only to current contract holders or to persons who have received a current ACCRU Variable Annuity or Variable Life Prospectus. [LOGO] National Distributor: CIGNA Financial Advisors 900 Cottage Grove Road Bloomfield, CT 06002 CIGNA Individual Insurance is a division of CIGNA Corporation #556566 6/96 -----END PRIVACY-ENHANCED MESSAGE-----